Sm Investments Corporation · PSE:SM
Sm Investments — 9M 2021 Earnings Presentation
25 slides from Sm Investments's earnings presentation, Nov 10, 2021
Slide 1: 9M 2021 Analysts' and Investors' Briefing
9M 2021 Analysts’ and Investors’ Briefing November 10, 2021
Slide 2: SMIC 9M 2021 Consolidated Results
SMIC 9M 2021 Consolidated Results ▪ Resilient performance in all core businesses ▪ Banks continued to drive earnings growth in Q3 ▪ Conservative gearing maintained Earnings Mix SM Investments 9M 2021 Chg Revenues 289.4 5% 27% Earnings 27.2 79% Assets 1,288.1 5% 60% 13% Net Debt:Total Equity 40 : 60
Slide 3: Retail
Retail ▪ 9% revenue growth in Non-Food ▪ Cost efficiencies and increased supplier activities in Food ▪ Net margin expansion ▪ New channels represent 10.9% of Non-Food sales SM Retail Revenue Chg NI Chg Total Retail 204.9 -1% 4.8 125% SM Store 35.4 7% -1.2 38% Specialty 42.4 12% 1.9 78% Food Group 13
Slide 4: Banking – BDO
Banking – BDO BDO Banking 9M 2021 Chg Net Income 32.4 95% ▪ Net income returned to pre-pandemic Net Interest Inc. 97.6 -2% levels on resilient core business and Other Income 44.5 13% normalized provisions Loans 2,310.4 5% ▪ CASA ratio at 85% on 14% growth in Deposits 2,734.9 6% CASA Deposits NIM 4.1
Slide 5: Banking – China Bank
Banking – China Bank CHIB Banking 1H 2021 Chg Net Income 11.2 35% ▪ Net income growth driven by sustained Net Interest Inc. 28.2 13% core business growth with effective cost Other Income 8.4 19% management Gross Loans 612.0 3% ▪ NPLs at 3.4% and credit buffers increased Deposits 849.5 3% to provide
Slide 6: Property
Property SM Prime 9M 20 21 YoY ▪ Online and continued Total Revenues 56.8 -6% construction in Residential Philippine Malls 15.8 -14% boosted sales take up YTD China Malls (in RMB B) 0 .6 28% ▪ Philippine malls impacted by Residential 32.1 -6% community quarantine Other Businesses 4.7 -7% restriction
Slide 7: Expanding Footprint
Expanding Footprint +199 +38 Retail Stores Bank Branches +47k sqm +8,721 Mall Gross Floor Area Residential Units All figures are additions for 2021
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Slide 9: SM Markets
SM MARKETS 60 stores SM Supermarket is the pioneer brand of SM Markets; first established in 1985. It features a wide range of offerings ranging from daily essentials to high-end, trendy, and hard-to-find merchandise. 215 stores 53 Savemore Market delivers the same SM Supermarket shopping experience
Slide 10: Savemore Express
Savemore Express • Savemore Market introduced its first Savemore Express; a smaller store format that’s more versatile in delivering basic essentials to customers. • To date, there are 9 Savemore Express stores.
Slide 11: Sales Initiatives: SM Markets Online
SALES INITIATIVES: 2020 2021 (as of Oct) % increase No. of sites 26 stores 70 stores 173% • SM Markets Online services Metro Manila, North Luzon, Cebu, Iloilo, Bacolod, Cagayan De Oro, and Davao • SM Markets Online currently offers over 5,000 SKUs • Target of 100 stores by end of 2021 to bring the s
Slide 12: Sales Initiatives: Take Home Specials
SALES INITIATIVES: Take Home Specials • SM helped food businesses survive crippling lockdowns by becoming a venue for business. helping • 22 food brands’ Ready-to-Cook businesses versions made available in 68 stores: while satisfying cravings
Slide 13: Sales Initiatives: Trends
SALES INITIATIVES: Trends The best of UK, US, and Australia • People spending more time at home brought about new hobbies which SM Markets SM Markets has already started bringing in supported. Among the most popular additions are Baking Ingredients, Live Plants, and goods from UK’s Iceland, Costco’s
Slide 14: Sales Initiatives: In Season Specials
SALES INITIATIVES: In Season Specials In-Season Specials feature produce fresh from farm to store and Savemore Light Residence SM Supermarket Bacoor sold at super low prices in 10 SM Supermarkets, and 6 Savemore stores in NCR+. Savemore Festival Mall SM Supermarket Southmall
Slide 15: Sales Initiatives: Miniso
SALES INITIATIVES: Miniso • Seven SM Markets branches serve as new homes for Miniso. – SM Supermarket Aura – Savemore Angono 2 – SM Hypermarket Bicutan – SM Hypermarket Jmall – SM Hypermarket Marilao – SM Hypermarket Mall of Asia – SM Hypermarket Taytay
Slide 16: Sales Initiatives: Christmas Mall Pop-up
SALES INITIATIVES: Christmas Mall Pop -up Pop-up displays located in high traffic areas of 31 SM Malls feature Holiday items such as SM Christmas Baskets, small appliances, and Japanese home essentials from Watts Japan.
Slide 17: Customer Safety
Customer Safety employee The DTI Safety Seal at 87% affirms that the establishment complies with all minimum public health standards. 99% of all stores have DTI Safety Seals
Slide 18: Upcoming Stores in 2022
Upcoming Stores in 2022 SM Markets opened 8 Stores in 2021 SM Markets plans to open 20 stores in 2022
Slide 19: Covid-19 Vaccination Efforts
Covid-19 Vaccination Efforts Vaccine doses Over 5m administered in 71 SM Malls Over 120k SM Employees vaccinated
Slide 20: Sustainability Advocacy
Sustainability Advocacy came 68) at LA ASEAN Sustainability @ E-Summit 2021 L @ Leaving No One Behind: Private Sector in Solidarity for Sustainable @ K / @ COVID-19 Recovery and Delivering the SDGs October 21-22, 2021 e e e@ 6 @ OFFICIAL MEDIA PARTNERS: F) ko Business MANILA®BULLETIN
Slide 21: Recent Commitments: SM Signatories
Recent Commitments SM Signatories
Slide 22: Recent Commitments
Recent Commitments NEO is the first portfolio in the world to be certified with the EDGE Zero Carbon by the International Finance Corporation.
Slide 23: Renewable Energy by 2022
Recent Commitments SM Prime committed to leading in renewable energy use, exceeding Philippine goals Renewable 50% Energy by 2022
Slide 24: 9M Results Key Messages
9M Results Key Messages ▪ All businesses remain resilient and positioned for economic recovery ▪ Topline growth in Non-food retail, margin improvements in Food ▪ Banking delivered sustained core earnings growth, NPLs within expectations and strong balance sheets ▪ Property supported by Residential s
Slide 25: 9M 2021 Analysts' and Investors' Briefing
9M 2021 Analysts’ and Investors’ Briefing November 10, 2021