Sm Investments Corporation · PSE:SM
Sm Investments — Investor Presentation (January 2023)
52 slides from Sm Investments's investor presentation, January 2023
Slide 1: Investor Presentation
Investor Presentation January 2023
Slide 2: Table of Contents
Table of Contents 03 We are SM 43 Annex 44 About the Philippines 11 Recent Developments 45 SMIC 10-Year Performance 50 Our 2021 Integrated Report 18 Our Businesses 51 Contact Information 19 Retail 23 Property 32 Banking 34 Portfolio Investments 46 Financials 2
Slide 3: We are SM
We are SM Our Vision What We Stand For To build an ecosystem of sustainable businesses that are catalysts for responsible development in the communities Drive and we serve. Entrepreneurship Teamwork Enthusiasm Our Mission We will provide a consistently high standard of service to our customers, look
Slide 4: About SM Investments
About SM Investments SM Investments is a leading Philippine conglomerate that is invested in market leading businesses in retail, banking and property. It also invests in ventures that can capture high growth opportunities in the emerging Philippine economy Strong Proxy for Philippine Recovery and L
Slide 5: Our Businesses
Our Businesses RETAIL BANKING PORTFOLIO INVESTMENTS 26.6% 34.1% Belle Corp Atlas Mining 77.3% 45.3% SM Retail BDO Unibank 34.0% 95.0% Neo Associates Neo Subsidiaries 52.9% 51.0% PROPERTY 2GO Group Airspeed 71.3% 74.1% 22.5% MyTown Goldilocks China 49.7% Banking 34.0% 100.0% CityMall PGPC SM Prime Co
Slide 6: Leading Philippine Conglomerate
Leading Philippine Conglomerate Our three largest companies – SMIC, SM Prime and BDO – comprise ~30% of the value of the Philippine Index Philippine Conglos Philippine Retailers Philippine Banks Property Developers Market Cap ($ bn) Total Sales ($ mn) Total Assets ($ bn) Market Cap ($ bn) SMIC 17.8
Slide 7: Our Business Footprint
Our Business Footprint Philippines 3,379 retail outlets 82 malls GDP Population 2,244 bank branches Distribution Distribution Luzon (ex-NCR) Metro Manila (NCR) 2,014 retail outlets 938 retail outlets 41 malls 24 malls 753 bank branches 962 bank branches 2021 Regional GDP Growth NCR 4.38% Luzon 6.66%
Slide 8: Our Leadership Team
Our Leadership Team Our Leadership Team Frederic C. Jose T. Sio Teresita T. Sy Henry T. Sy, Jr. Chairman Vice Chairperson Vice Chairman DyBuncio President/CEO We are a purpose driven company with the fundamental belief that business growth and social development go together. To make this happen, we
Slide 9: How We Create Shared Value
How We Create Shared Value Our Path to Sustainable Growth Our Valued Resources What We Do We create inclusive Our Brand socioeconomic opportunities Our Connections to We develop integrated Our Customers properties centered on our malls as community centers We facilitate development Our People We cre
Slide 10: External Recognitions
External Recognitions ] SUSTAINALYTICS or? ORA "Sa, a Meringstr company S Award winner ESG 4 \, B South East Asia 2021 INDUSTRY vf TAY B INVESTOR yy ae TOP RATED Vv) NG Aa * algyet magazine Ny eee NY4 a ba "2 + LS OleD Accs ASEAN NN \. G CORPORATE SM a) Corporation ik GOVERNANCE \ ie AREA CORPORATIO
Slide 11: Recent Developments
Recent Developments 12 9M Financial Performance 13 Recent Events 14 Together against Climate Change 15 Together for Relief and Resilience 16 Digital Innovation 11
Slide 12: 9M Financial Performance
9M Financial Performance Figures in PHP billion except percentages SM Investments 9M 2022 9M 2021 % Chg Revenues 381.9 292.6 31% Net Income 42.9 28.6 50% Net Margin (inc-NCI) 15.4% 13.1% - ▪ Revenue and Net Income surpassed pre-pandemic levels ROE 12.0% 9.4% - Net Debt:Equity 38 : 62 38:62 - ▪ Stron
Slide 13: Recent Events
Recent Events Parent/Group Property ▪ Surpassed pre-pandemic top and bottomline performance ▪ Weekend foot traffic above of pre-covid level, operational occupancy at ▪ SMIC issued P15 bn fixed-rate retail bonds, 3.7x oversubscribed ~80%, SM Supermalls normalized rental rates ▪ Governance recognition
Slide 14: Together against Climate Change
Together against Leading in financing 54 renewable energy projects Climate Change Net Zero SM Prime committed to leading in renewable energy use, exceeding Philippine goals +50 Renewable % Energy by 2022 14
Slide 15: BDO's Sustainable Financing
BDO’s Sustainable Financing Installed As of 2021 Capacity (MW) Biodiesel 60 ML/Y 905,887 2,230 MW 70,550,565 Total installed Equivalent tree Equivalent passenger Bioethanol 44.1 ML/Y vehicles taken off renewable energy seedlings grown capacity in megawatts over 10 years roads yearly Solar 369 Wind 7
Slide 16: Together for Relief and Resilience
Together for Relief and Resilience Typhoon Odette Covid-19 Recovery Helping the Community ▪ Php21.6b SM Group comprehensive response in 2021 to drive recovery with the rest of the nation ▪ 75 malls used as vaccination facilities; over 10.4mn doses administered Over 38,000 Php57.4mn Kalinga packs In
Slide 17: Digital Innovations
Digital Innovations We continue to work hard to develop innovative online and offline delivery channels that are integrated into our business and enhance our customer service Retail Malls Banking Logistics Multi-channel Ordering and High Touch Service Payments Last Mile 17
Slide 18: Using Our Channels
Using Our Channels Our enhanced digital platforms complement our expansion, getting us even closer to our customers 18
Slide 19: Our Businesses
Our Businesses 19 Retail 23 Property 32 Banking 34 Portfolio Investments 19
Slide 20: SM Retail
SM Retail Our group was born out of retailing. With more than 30 brands, both food and non-food, we serve as a platform for local and international brands to be more accessible to the Filipino market Store Network GSA 77.3% 69 THE SM Store 846 Effective Interest 1,536 Brand Affiliates 636 62 SM Supe
Slide 21: Our Retail Brands
Our Retail We stand by our tagline, “We’ve got it all for you”. Our brands provide a wide selection of best local products and in-demand Brands global brands for every member of the family Department Stores Athleisure and Fashion Health, Beauty and Wellness Philippine Crafts Foot wear Food Retail Ho
Slide 22: Food Retail
Food Retail Format Description SKUs Stand-alone large format Hypermarkets destinations with 50/50 > 50k food/non-food mix Large format anchor tenant in Supermarkets 45k-50k SM malls Mid-sized format tenant 30k-45k WalterMart located in WalterMart Malls expanding in Luzon Stand-alone mid-sized format
Slide 23: Non-Food Retail
Non-Food Retail Department Stores – The SM STORE ▪ Anchor tenants in SM malls ▪ Wide range of merchandise and price points ▪ Targets all customer segments ▪ Pioneering digital shopping platforms Specialty Retailers ▪ Leading local category specialist ▪ Aspirational but affordable foreign brands ▪ Hi
Slide 24: SM Prime
SM Prime We build integrated lifestyle cities with malls serving as meeting centers, residential developments, hotels, convention centers and office spaces, helping facilitate the rapid urbanization of local communities Developments 49.7% 21 Integrated Lifestyle Cities Effective Interest 82 Malls in
Slide 25: SM Malls
SM Malls SM City Zibo, PHILIPPINES CHINA China 82 7 Malls 8.9mn 1.3mn Total GFA in SQM SM City Cebu 18,348 1,827 Tenants SM Grand 2.6mn 0.2mn Average Daily Central Pedestrian Count Data as of 9M2022, GFA (Gross Floor Area) 25 Entry Deck
Slide 26: SM Malls Philippines
SM Malls Philippines SM Aura ▪ In terms of GFA, Metro Manila malls account for 42%, Luzon (ex NCR) is 37%, Visayas is 13% and Mindanao is 8% ▪ SMPH mall expansion is geared towards the provinces. The focus is to cover most of Northern Luzon, Visayas and the SM CDO progressive cities in Mindanao Down
Slide 27: SM Malls China
SM City, Zibo SM Malls China ▪ Construction for the expansion of SM Xiamen and the new SM Yangzhou is on-going ▪ Operates 7 malls with a total GFA of 1.3m sqm SM Tianjin SM City, Zibo 27
Slide 28: SM Residences
SM Residences Park Residences A leading residential developer of high-rise buildings (HRBs), mid-rise buildings (MRBs) and single-detached house and lots Projects Overview (as of 9M2022) SMDC Projects to date 63, 46 in NCR Ready-for-Occupancy (RFO) 5,159 (Unsold Units) Ongoing Construction 23,112 (U
Slide 29: SM Commercial Properties
SM Commercial Properties Three E-com Center ▪ Have 18 office buildings with a combined GFA of almost 1.5 sqm ▪ Five of these 18 offices are located in the Mall of Asia Complex in Pasay City, which provide a combined GFA of 627,000 sqm ICE Tower ▪ Have an available landbank of 105 hectares for future
Slide 30: SM Hotels and Convention Centers
Conrad Manila SM Hotels and Convention Centers Conrad Manila ▪ Operating 9 hotels with over 2,200 rooms; 6 Convention Centers, and 2 Trade Halls with approximately 49,000 sqm of leasable space as of 9M 2022 Convention GLA Hotels Rooms Centers (sqm) Taal Vista, Tagaytay 261 SMX Manila 17,170 Radisson
Slide 31: SM Prime Integrated Lifestyle Cities
SM Prime Integrated Lifestyle Cities SM Prime has integrated property developments in Metro Manila and in key provincial cities in the Philippines Key Provincial Cities Metro Manila Novaliches, Quezon City Clark, Pampanga Marilao, Bulacan Fairview, Quezon City Olongapo, Zambales North EDSA Taytay, R
Slide 32: Pico de Loro Development, Batangas
Pico de Loro Development, Batangas ▪ Sprawling seaside sanctuary flanked by the sea on the West, mountain ranges in the East, with thirteen coves, three of which are Marine Protected Areas 32 ▪ 90 minutes from the Mall of Asia Complex
Slide 33: BDO Unibank, Inc.
BDO Unibank , Inc. BDO is a leader and investor in banking products and services, making financial services more accessible to Filipinos 45.3% Effective Interest 1,606 PHP108.1bn Branches in the Philippines Net Interest Income 2 PHP53.2bn Foreign branches Other Income 4,564 PHP40.0bn ATMs Net Income
Slide 34: China Banking Corporation
China Banking Corporation China Bank has over a hundred years of banking heritage anchored on good governance. The bank has been instrumental in building generations of enterprises in the country 22.5% Effective Interest PHP33.7bn 638 Net Interest Income Branches PHP8.3bn 1,035 Other Income ATMs PHP
Slide 35: Portfolio Investments
Portfolio Investments 2GO Group Airspeed Atlas Mining Belle Corp. Goldilocks 52.9% 51% 34.1% 26.4% 74% MyTown Neo Group PGPC ▪ We invest in new and related sectors that help capture high growth opportunities in the Philippines ▪ We build market leaders through access to the synergies and expertise 7
Slide 36: 2GO Group
2GO Group The largest and broadest logistics and transportation solutions provider integrating Shipping, Logistics and Distribution Shipping ▪ Efficient and reliable 9 vessel fleet ▪ Serving 17 ports of call covering all major cities Express and Logistics ▪ 40 warehouse facilities nationwide ▪ Sea,
Slide 37: Airspeed
Airspeed Airspeed is a reliable end-to-end logistics solutions provider aiming to provide support to help clients build and grow their businesses New warehouse In Parañaque ▪ Tailor fit services that are based on the client’s logistics needs so that their shipment will be transported without any iss
Slide 38: Atlas Consolidated Mining
Atlas Consolidated 15,760 Mining trees planted since 2006 Atlas Mining is one of the largest copper concentrate producers in the Philippines ▪ Copper mine with 22 years mine life ▪ Over 408m tonnes of proven and probable reserves Operating Information 9M 2022 Daily Milling Avg 46,134 Mahogany (In dm
Slide 39: Belle Corporation
Belle Corporation Belle Corporation is a developer of premium resort destinations and leisure properties City of Dreams Manila ▪ Award-winning integrated resort operated by partner, Melco ▪ Total gross floor area: 315,531 sqm City of Dreams ▪ Gaming floor area: 21,324 sqm Manila ▪ ~2,333 electronic
Slide 40: Goldilocks
Goldilocks Goldilocks is a well-loved Filipino heritage brand trusted by customers for over 55 years ▪ 11 manufacturing facilities serving an extensive retail footprint of over 800 company owned and franchise stores in the Philippines ▪ Resilient amidst the pandemic, Goldilocks pivoted to cater to c
Slide 41: MyTown (PULS)
MyTown (PULS) A leading developer and operator of purpose-built co-living communities providing housing solutions for young urban professionals and corporations ▪ Pioneered the concept of urban dormitories as communities with amenities ▪ Scalable solution to metro traffic and lack of affordable hous
Slide 42: NEO Buildings Net Zero
One/NEO, Bonifacio NEO Buildings Global City The NEO Buildings consist of 7 office buildings located within the largest and only PEZA certified IT park in Bonifacio Global City, Metro Manila ▪ NEO is the first commercial property portfolio in the world to be certified as Carbon Net Zero under the ED
Slide 43: Philippine Geothermal Production Company (PGPC)
Philippine Geothermal Production Company (PGPC) PGPC operates the Tiwi and Mak-Ban steam fields, in operation since 1979, generating geothermal steam Sustainable sufficient to produce c.300MW of electricity. PGPC also has geothermal steam several other greenfield concession areas for geothermal ener
Slide 44: Annex
Annex 44 About the Philippines 45 SMIC 10-Year Performance 46 Financials SM Investments SM Prime BDO China Bank 50 Our 2021 Integrated Report 51 Contact Information 44
Slide 45: Philippines: Strong Macroeconomic Fundamentals
Philippines: Strong Macroeconomic Fundamentals Young Workforce with Rising Incomes Opportunities Per Capita GDP Growth Median Age ▪ Improved Infrastructure development GDP ▪ Provincial growth – Luzon, Visayas, Mindanao $3,681 7.7% 26 ▪ Job creation and inclusive growth Per Capita Consumption Driven
Slide 46: SM Investments' 10-Year Performance
SM Investments’ Assets grew at 11.6% p.a. 10-Year Performance In PHP bn 1,342 Market Cap grew 12.3% p.a. 449 2011 2021 Revenue grew at 7.9% p.a. 1,135,922 In PHP bn 428 200 In PHP mn 2011 2021 Net Income grew at 6.1% p.a. 356,586 In PHP bn 38.5 21.2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 47: SM Investments Corporation 9M 2022 Consolidated Results
SM Investments Corporation Portfolio Investments Banking 8% 6% 9M 2022 Consolidated Results In PHP Billion 18% Property Particulars 9M 2022 9M 2021 % Chg FY 2021 FY 2020 FY 2019 Revenue Revenue 381.9 292.6 30.5% 428.1 394.2 501.7 Net Income to Parent 42.9 28.6 49.7% 38.5 23.4 44.6 Mix Net Margin (in
Slide 48: SM Prime 9M 2022 Results
SM Prime 9M 2022 Results In PHP Billion Consolidated 9M 2022 9M 2021 %Chg Residences 9M 2022 9M 2021 % Chg Revenues 73.7 56.9 30% Revenues 28.3 32.1 -12% Net Income 22.0 15.6 41% Operating Income 11.2 13.5 -17% Operating Income 34.6 21.6 61% EBITDA 11.3 13.6 -17% Return on Equity 9% 7% - EBITDA marg
Slide 49: BDO Financial Highlights
BDO Financial Highlights 15% Loans Growth Industry* BDO Deposits 9M 2022 9M 2021 % Chg CASA Time Deposits CASA Ratio (In PHP Bn) 12% 3,500 85% 100.00% Net Interest Income 108.1 97.6 10.8% 81% 82% 11% 3,036 10% 3,000 80.00% Other Income 53.2 44.5 19.6% 9% 2,610 2,821 537 10% 416 6% Net Income1 40.0 3
Slide 50: China Bank Financial Highlights
China Bank Loans Growth Deposits Financial Highlights CASA High Cost 9M 2022 9M 2021 % Chg Growth Industry (In PHP Bn) 2000 FCDU LDR 90% Net Interest Income 33.7 28.8 17.2% 80% 75% 71% Other Income 8.3 7.8 5.6% 14% 1500 69% 70% 13% 1 Net Income 14.7 11.2 31.5% 12% 60% 11% 9% 50% Assets 1,274.2 1,055
Slide 51: Our Integrated Report 2021
Our Integrated Report <IR> 2021 In 2020, SMIC adopted the Integrated Reporting Framework developed by the International Integrated Reporting Council (IIRC) Our 2021 integrated report follows the theme of “Recovering Together” and further communicates our commitments to sustainable business practices
Slide 52: 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
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