SM Investments Corporation · PSE:SM
SM Investments — FY2020 Earnings Presentation
22 slides from SM Investments's earnings presentation, Feb 26, 2021
Slide 1: FY 2020 Earnings Report
FY 2020 Earnings Report 26 February 2021, 2PM
Slide 2: SMIC FY 2020 Consolidated Results
SMIC FY 2020 Consolidated Results ▪ Q4 revenues up 6.3% on Q3 ▪ FY earnings reflect prudent Bank provisions ▪ Conservative gearing maintained SM Investments FY 2020 Chg Revenues 394.2 -21% Earnings 23.4 -48% Assets 1,224.5 7% Net Debt:Total Equity 37 : 63 Figures in PHP B except percentages SM Inves
Slide 3: Net Income Mix
Net Income Mix ▪ Banking and Property provided majority of earnings 33% 55% 12% Property Retail Banking Note: Excludes SMIC Parent and other subsidiaries SM Investments Corporation 2
Slide 4: Banking – BDO
Banking – BDO BDO Banking FY 2020 Chg ▪ Strong core business growth Net Income 28.2 -36% ▪ P30.2 billion of prudent Net Interest Inc. 133.7 12% provisions set against Other Income 55.2 -8% potential delinquencies Loans 2,263.7 3% ▪ NPL coverage at 110% and Deposits 2,610.2 5% reserves more than suff
Slide 5: Banking – China Bank
Banking – China Bank CHIB Banking FY 2020 Chg ▪ Strong earnings growth Net Income 12.1 20% from core businesses and Net Interest Inc. 33.8 30% improved investment and Other Income 10.0 19% trading activities Gross Loans 572.0 -1% ▪ P8.9 billion of pandemic- related loan buffer Deposits 835.2 8% ▪ Co
Slide 6: Property
Property ▪ Malls continue to recover and to assist tenants ▪ Residential and Commercial businesses increased FY revenues ▪ Two malls opened in Mindanao in Q4 SM Prime FY 2020 Chg Revenues 81.9 -31% Earnings 18.0 -53% Philippine Mall Revenue 23.6 -59% Residential Revenue 46.5 6% Residential Reservati
Slide 7: Retail – FY
Retail – FY ▪ Food revenue growth and earnings expansion ▪ Non-Food revenues impacted by lockdown, lifted by Q4 ▪ New channels represents 8% of FY Non-Food sales SM Retail Revenue Chg NI Chg Total Retail 296.8 -19% 4.1 -67% SM Store 54.7 -52% -2.7 -206% Specialty 59.7 -36% 2.5 -62% Food Group 200.0
Slide 8: Retail – Q4
Retail – Q4 ▪ Q4 seasonal sales growth as expected, but moderated vs. 2019 ▪ Food revenue almost on par with Q4 2019 ▪ Non-Food recovering but not yet at 2019 levels 4Q20 vs 3Q20 4Q20 vs 4Q19 SM Retail Revenue NI Revenue NI SM Store 103% -59% -43% -177% Specialty 54% 56% -27% -39% Food Group 19% -30
Slide 9: Retail Footprint Expansion
Retail Footprint Expansion ▪ 351 stores added nationwide ▪ Alfamart continued to expand, passing its 1,000 store target in Q4 ▪ 83% of new stores outside Metro Manila SM Retail GSA (sqm) Chg Stores New Total Retail 3,079.0 5% 3,019 +351 SM Store 817.0 3% 66 +2 Specialty 635.8 2% 1,550 +62 Food Group
Slide 10: Alfamart
Alfamart ey ~~ ee °E==ZJ NOW OPEN = 1000" B=
Slide 11: Founded by Djoko Susanto in Indonesia
• Founded by Djoko Susanto in Indonesia (1999) • 17,000 stores by the end of 2020 • 32 Distribution Centers • Revenue of US$4B (first 9 months of 2020) • Revenue growth +4.2% vs LY • First store in the Philippines opened in June 2014
Slide 12: Our Customers
Our CUSTOMERS Residents of underserved communities who live far from a supermarket or grocery.
Slide 13: "Super-Minimart"
“SUPER-MINIMART” Alfamart is the community store that makes shopping for their family’s everyday needs more convenient.
Slide 14: Core Strategies
CORE STRATEGIES • Complete assortment of basic household items • Accessibility • Reasonable pricing
Slide 15: Alfamart store growth timeline 2014-2019
2014 2015 2016 2017 2018 2019 22 stores 99 stores 210 stores 348 stores 526 stores 754 stores Cavite, Laguna, Bulacan, Rizal Batangas Pampanga, NCR Nueva Ecija Opening of 1st Opening of 2nd Opening of 3rd store in Trece DC in Marilao DC in Mexico Martires, Cavite (Bulacan) (Pampanga) Opening of 1st
Slide 16: 2020 Highlights
2020 Highlights Challenges Achievements • Store closures due to municipal • Revenues: +24% ordinances • EBITDA: +39% • Shorter operating hours (curfew) • Customers’ fear of going out • Addition of 258 stores (1,012 stores by end of 2020) • Liquor ban • Decline of non-essentials • Opening of 4th DC (
Slide 17: 2020 Highlights
2020 Highlights • Job creation • Economic opportunities for lessors, contractors and tenants.
Slide 18: Ready for 2021
Ready for 2021 • Consumers will continue to prioritize in-home spending over discretionary out-of-home expenses. (b) • 75% cooked more than once a day (post-ECQ) (b) • 51% are cooking more often than before ECQ (b) • 9 out of 10 shoppers with limited mobility prefer to shop in nearby stores (c) SOUR
Slide 19: IGD Retail Analysis: leading convenience markets in Asia
SOURCE: IGD Retail Analysis, December 2020 “The leading convenience markets and retailers in Asia”
Slide 20: FY Results Key Messages
FY Results Key Messages ▪ All business continued to build momentum in Q4 ▪ Banking delivered majority of FY earnings from strong core business performance ▪ Prudent Bank provisioning taken, sufficient for potential delinquencies ▪ Property had positive growth in Residential and Commercial, with Mall
Slide 21: 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 22: FY 2020 Earnings Report
FY 2020 Earnings Report 26 February 2021, 2PM