SM Investments Corporation · PSE:SM
SM Investments — H1 2021 Earnings Presentation
27 slides from SM Investments's earnings presentation, Aug 4, 2021
Slide 1: 1H 2021 Earnings Report
1H 2021 Earnings Report 4 August 2021, 2PM
Slide 2: SMIC 1H 2021 Consolidated Results
SMIC 1H 2021 Consolidated Results = Resilient performance in all core businesses = 1H financial improvement largely driven by Banks = Conservative gearing maintained Net Income Mix SM Investments 1H 2021 Chg Revenues 193.5 4% Earnings 20.1 183% 28% Assets 12526 2% 58% Net Debt:Total Equity 39:61 @ F
Slide 3: Retail
Retail = 17.8% growth in Non-Food Revenues = Additional cost efficiencies identified across all formats in Q2 = New channels represent 13.1% of total Non-Food sales SM Retail Revenue Chg NI Chg Total Retail 138.2 -1% 36 598% SM Store 244 (7% -06 57% Specialty 29.1 22% 1.5 1,067% Food Group 92.9 -7%
Slide 4: Banking - BDO
Banking - BDO BDO Banking 1H 2021 Chg Net Income 21.4 400% Net Interest Inc. 64.4 -3% Other Income 29.7 9% Loans 2,250.9 0% Deposits 2,681.2 3% NIM 41% NPL 3.1% CET 1 13.9% CAR 15.0% Figures in PHP B except percentages Net income growth driven by strong sustainable earnings streams and normalized pr
Slide 5: Banking - China Bank
Banking - China Bank CHIB Banking 1H 2021 Chg . . Net | 73. 39% = Net income growth driven by 52% lower erincome ; ° interest expense and strong growth in Net Interest Inc. 18.6 14% other income Other Income 6.3 32% «= CASA growth of 27% raised CASA ratio Gross Loans 595.5 1% to 68% Deposits 827.0 7
Slide 6: Property
Property SM Prime 1H 2021 YoY Total Revenues 411 -6% Philippine Malls 10.7 -26% China Malls (in RMB M) 3.0 48% Residential 24.5 3% Other Businesses 3.1 - Reservation Sales 55.1 30% Earnings 11.6 12% Figures in PHP B except percentages Earnings improvement driven by strong Residential sales growth Ph
Slide 7: Non-food Sales via Online Channels and Instapay Market Share
Non-food Sales via Market Share in 13% 12% Online Channels Instapay Transactions or ow ap J — i a |)
Slide 8: Expanding Footprint
Slide 9: 2GO Group
2GO Group 2Gi0 SPECIAL CONTAINERS. of Oo : -_— 2G,0 DISTRIBUTION Ownership Update =" Completed the acquisition of additional shares in 2GO, becoming the majority shareholder with 52.85% stake = New minority shareholder, Archipelago Capital Partners SM Investments Corporation 8
Slide 10: 2GO Group SMIC Investor and Analysts' Briefing
2GiO GROUP, INC. SMIC Investor and Analysts’ Briefing August 4, 2021
Slide 11: 2GO Group is the largest integrated logistics and transportation provider
2GO Group is the largest integrated logistics and transportation provider in the Philippines with annual revenues of PHP 18B in 2020 a P6.7 Billion Revenue Profile Sea Transportation P6.0 Billion Distribution Business P2.3 Billion Express Services P1.7 Billion Special Container Services g S P1.3 Bil
Slide 12: 2GO Group is the broadest, largest logistics and transportation provider
2GO Group is the broadest, largest logistics and transportation provide Our core services cover the entire value chain from Production, Inbound to DC and outbound B2B and B2C { “6 toy ean | 4 Se = international Goods RM/PM Consolidation | Storage & Domestic Regional * X Border Receipt Materials Put-
Slide 13: We participate significantly in areas we operate through our BUs
We participate significantly in areas we operate through our BU’s 2G0 2Gi0 2Gi0 2Gi0 2G0 SEA SOLUTIONS SPECIAL CONTAINERS EXPRESS Logistics DISTRIBUTION A broad network of strategically located warehouses and hubs for optimal inventory National Selling and Merchandising Infrastructure Leading freigh
Slide 14: Fleet and equipment
Vessels ISO Tank Reefer Reefer Ambient Motorcycles Other Containers Containers Trucks Trucks Utility in TEUs 10 160Reefer Truck 600 23 10W295 800 358 24 37 AUV Preparation Other Utility 6W118 200 4W 358 FB 140 110 MOTORCYCLE 800
Slide 15: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 16: Year plan for Sustainable Growth
3 Year plan for Sustainable Growth Strategy Development * Vision * Focus * Verticals Core Services Financial Targets March to October 2019 Rationalization and Optimization * Vessel/Asset Rationalization * Network/Route Optimization * Technology Architecture * Organization Synergies * Headcount Ratio
Slide 17: Vessel types
• o o • o o • o o • o o o o o o Large ROPAX Medium ROPAX Freighter Fast Craft
Slide 18: Logistics: Objective is to transform to a specialized provider for our customers
Logistics: Objective is to transform to a specialized provider for our customers WBE wes Vertical Specialist 4 End of 2018 2GO Loaistics . j=. Generalist} LogiCore « LF voaistics qst Qtr 2022 Specialization Auto SCHENKER Retail/Lifestyle 2GO0 Pharma Lootstics FMCG Strategic Shift “Under Way” Mid 202
Slide 19: Rapidly modernizing 2GO with leading technology
Rapidly modernizing 2GO with leading technology Efficiency | Competitiveness | Customer Experience SEA SOLUTIONS - Softship - 4 QTR 2020 Track and Trace, Planning, Order taking to Delivery LOGISTICS - Infor WMS - 4th QTR 2020 From Manual processes and controls to technology guided WHS operations = F
Slide 20: Automated Sortation Machines at 2GO
Automated Sortation Machines at 2GO. Increasing velocity, scale and lowering cost to serve Brand new, modern sortation machine: * Enables high volume sortation operations sustainably without adding manpower up to « 714 Primary and Secondary Sorts, * Cost per unit improves from * Multiple configurati
Slide 21: Deploying FarEye, an internationally recognized Express TMS
Deploying FarEye, an internationally recognized Express TMS * Significantly improves delivery performance now at 95% * Provides Real Time Track and Trace, enhancing customer experience * Increases number of drops per rider, lowers costs to serve x Details 0117052M. & Print Control Tower Basic Detail
Slide 22: 2GO is well positioned to capture the Philippine Growth Story
is well positioned to capture and facilitate the Philippine Growth Story * Successful company-wide transformation focusing on strategic cost rationalization, right-sizing and product differentiation * Robust and comprehensive strategy is in place supported by shareholders « Largest integrated servic
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Slide 25: 1H Results Key Messages
1H Results Key Messages All businesses remain resilient, with improved earnings performance driven by Banking and Residential property Retail earnings growth driven by strong Non-Food revenues and further cost efficiencies across all formats Banking delivered strong broad-based earnings growth, with
Slide 26: 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 27: 1H 2021 Earnings Report
1H 2021 Earnings Report 4 August 2021, 2PM