Sm Prime Holdings, Inc. · PSE:SMPH
Sm Prime — Investor Presentation (August 2023)
45 slides from Sm Prime's investor presentation, August 2023
Slide 1: Investor Kit 2023
Investor Kit 2023 This presentation is available online through www.smprime.com
Slide 2: Disclaimer
Disclaimer This presentation does not constitute a prospectus or other offering memorandum in whole or in part. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company. There shall be no sale of these securities in any state or juri
Slide 3: Outline
Outline I. Company Profile V. Key Strategies Key Strategies II. 1H2023 Financial Highlights Landbank III. Sustainability CAPEX Program • Sustainability Council VI. Financial Highlights • SM Prime’s Path to Sustainable Development • Four Sustainability Pillars • Sustainability in Our Business Units I
Slide 4: Company Profile
Company Profile Market Capitalization US$17.73bn • One of the leading integrated property developers in Southeast Asia PSE Stock Symbol SMPH • One of the largest listed real estate developers on the PSE by market capitalization and net income Market Capitalization PHP982bn (August 04, 2023) • Consis
Slide 5: 1H 2023 Financial Highlights
1H 2023 Financial Highlights • Consolidated net income went up by 38% to PHP19.44 billion in 1H2023 from PHP14.11 billion in 1H2022. • Consolidated revenues reached PHP59.85 billion, 29% increase from PHP46.34 billion in the same period being reviewed. • Revenue Contribution: Malls Business accounts
Slide 6: Sustainability
TASK FORCE on CLIMATE-RELATED Sustainability ® ICFD DISCLOSURES FTSE4Good
Slide 7: Sustainability Council
Sustainability Council STEERING COMMITTEE CHAIRMAN Mr. Jeffrey C. Lim e ADVISORY GROUP Head office divisions that provide recommendations on the Steering Committee based on their expertise e e SUSTAINABILITY SECRETARIAT The department that coordinates with the members of the Advisory Group and busin
Slide 8: Net-Zero Ambition Action Plan
Net-Zero Ambition Action Plan
Slide 9: Sustainability Framework
Sustainability Framework In 2020, our Board established a Sustainability Council with the understanding that the country’s economic growth and our business growth has increased our exposure and vulnerability to global warming, global supply chain disruptions, and socio-economic forces that may under
Slide 10: SM Prime's Value Creation
SM Prime’s Value Creation *Data as of FY2022
Slide 11: Key Business Unit
Key Business Unit Hotels & Malls Residences Offices Convention Centers • SM Supermalls • SM Development • Office and Warehouses • Radisson Blu • SM Lifestyle, Inc. Corporation and • Mall of Asia Complex • Taal Vista • Family Entertainment Subsidiaries • Seaside City Cebu • Pico Sands Center, Inc. •
Slide 12: At a Glance
At a Glance Malls Residences 1H2023 Operating Highlights 1H2023 Operating Highlights • Total Revenues is PHP34.61 billion, 46% higher than • Total Revenues is PHP19.02 billion, 4% higher than last year’s PHP23.67 billion PHP18.23 billion • Operating Income is PHP18.63 billion, grew by 52% from • Ope
Slide 13: At a Glance: Lifestyle Cities in Metro Manila
At a Glance Lifestyle Cities in Metro Manila Novaliches, Quezon City Mall Residential Caloocan (North) Fairview, Quezon City Mall Offices Caloocan (North) • SM Prime has ten (11) integrated North EDSA, Quezon City Mall Residential Office Hotel property developments in Metro Manila Valenzuela Valenzu
Slide 14: At a Glance: Lifestyle Cities in the Provinces
At a Glance Lifestyle Cities in the Provinces Olongapo, Zambales Mall Convention Center • SM Prime has eleven (11) integrated Clark, Pampanga Mall Offices Hotel Convention Center property developments in key provincial Marilao, Bulacan Mall Residential cities in the Philippines. Zambales Pampanga Ta
Slide 15: Malls
Malls (As of 1H2023) Revenue PHP34.61bn Operating Income PHP18.63bn Gross Floor Area 10.5M sqm Malls 83 in PH and 7 in CH
Slide 16: Key Business Units: Malls
Key Business Units Malls PHILIPPINES CHINA 83 Malls 7 Malls 9.1M sqm Total GFA 1.4M sqm Total GFA 19,919 Tenants 1,952 Tenants Average Daily 3.4M Pedestrian Count Average Daily 0.3M Pedestrian Count 384 Cinema Screens 63 Cinema Screens 88,053 Car Park Slots 16,264 Car Park Slots SM Prime is the larg
Slide 17: Key Business Units: Philippine Malls
Key Business Units Philippine Population: 111M Philippine Malls GDP: PHP22Trillion* LUZON: • In terms of GFA, Metro Manila malls account for 42%, 45 malls Luzon (ex NCR) is 38%, Visayas is 12% and GFA: 3.4M sqm GDP: PHP8 Trillion* Mindanao is 8% NCR: • Average mall contracts is 93% in terms of lease
Slide 18: Key Business Units: China Mall
Key Business Units China Mall • Operating in China since 2001 and became part of SM Prime in 2007 • Operates 7 malls with a total GFA of 1.4m sqm: • SM City Xiamen SM City Xiamen • SM City Jinjiang • SM City Chengdu • SM City Suzhou • SM City Chongqing • SM City Zibo • SM City Tianjin SM City Tianji
Slide 19: Malls' Expansion Program
Key Business Units Malls’ Expansion Program 2023 New Malls 2023 Malls Expansion Name GFA (sqm) Name GFA (sqm) SM City Bataan 46,000 (Opened May 2023) SM City Baliwag 5,000 SM Center San Pedro 23,000 SM City Bacolod 6,000 SM City Sto. Tomas 58,000 SM City Iloilo 2,000 • This 2023, SM Prime targets to
Slide 20: Residences
Residences (As of 1H2023) Revenue PHP19.02bn Operating Income PHP7.70bn Reservation Sales PHP68.51bn Residential Units Launched (since 2013) PHP699bn / 179,623 units
Slide 21: Primary Residences
Key Business Units Primary Residences • A leading residential developer of high-rise buildings (HRBs), mid-rise buildings (MRBs) and single-detached house and lots • Accounts for 29% of the consolidated revenues Jade Residences, Makati City • In 1H2023, 53% of buyers are Overseas Filipinos, 32% are
Slide 22: Primary Residences Projects Overview
Key Business Units Primary Residences Projects Overview (as of 1H2023) Ready-for-Occupancy (RFO) 4,557 (Unsold Units) Ongoing Construction (Unsold Units) 15,390 Estimated Inventory Value PHP135.28bn 1H2023 Reservation Sales (Value) PHP68.51bn 1H2023 CAPEX PHP8.04bn Landbank (hectares) Metro Manila 3
Slide 23: Primary Residences in Metro Manila
Key Business Units Primary Residences in Metro Manila Caloocan (North) • As of June 2023, SMDC has forty-seven (47) residential developments in Metro Manila Valenzuela • Majority of SMDC’s residential developments in Navotas Malabon Quezon City (13 Projects) Metro Manila are High-Rise Buildings (HRB
Slide 24: Primary Residences in Provinces
Key Business Units Primary Residences in Provinces Pampanga Mabalacat (2 H&L) Angeles (1) • As of June 2023, SMDC has eighteen (18) Bulacan Marilao (1) Baliuag (1) residential developments in key provincial cities Pampanga Rizal Cainta (1) • 89% of these are mid-rise buildings (MRB), while Bulacan R
Slide 25: Leisure Homes
Key Business Units Leisure Homes • Include 2 large-scale tourism projects – Tagaytay Highlands and Pico de Loro • Tagaytay Highlands is an exclusive mountain resort, golf club and residential complex, covering some areas of Cavite, Laguna and Batangas Trealva at Tagaytay Highlands • The 40-hectare P
Slide 26: Offices
Offices (As of 1H2023) Revenue 3.25bn Operating Income PHP2.17bn Gross Floor Area 1.5M sqm Office Buildings 18
Slide 27: Key Business Units: Offices
Key Business Units Offices • Have 18 office buildings with a combined GFA of almost 1.5m sqm • Five of these 18 offices are located in the Mall of Asia Complex in Pasay City, with a combined ThreeE-Com Center GFA of almost 657,000 sqm. • Have an available landbank of 97 hectares for future developme
Slide 28: Hotels & Convention Centers
Hotels & Convention Centers (As of 1H2023) Revenue PHP2.98bn Operating Income PHP0.74bn Hotels 9 Convention Centers 8
Slide 29: Hotels & Convention Centers
Key Business Units Hotels & Convention Centers • Operating 9 hotels with over 2,200 rooms; 6 Convention Centers, and 2 Trade Halls with almost 42,000 sqm of leasable space as of June 2023. Conrad Manila • Conrad Manila and SMX Manila are both located in Mall of Asia Complex, Pasay City. • SM Prime i
Slide 30: Key Strategies
Key Strategies (As of 1H2023) Landbank 2,379ha 1H2023 CAPEX PHP44bn Net Debt to Equity 47:53
Slide 31: Landbank
Landbank Area by Region (in hectares) Area No. of (in % of Metro • SM Prime’s extensive landbank is good for the Sites hectares) Total Manila Provincial next 5 to 7 years, and mostly located in emerging progressive cities across the country Malls 61 349 15% 24 325 • Leisure projects are for medium-t
Slide 32: CAPEX Program
CAPEX Program PHP58B PHP91B PHP69B PHP60B PHP65B PHP75B PHP44B 100% 8% 6% 8% 17% 14% 18% • SM Prime has set PHP80 billion as CAPEX for 90% 29% 2023. This will be used in various property 80% developments as well as strategic landbanking 70% activities 51% 62% 41% 42% 52% 18% 60% 47% • Furthermore, t
Slide 33: Maintain Conservative Balance Sheet
Maintain Conservative Balance Sheet Interest Coverage Ratio* Net Debt to Equity** 8.00 7.59 7.56 100% 7.00 6.73 90% 6.00 80% 40% 40% 44% 45% 46% 5.33 47% 4.61 70% 5.00 4.57 60% 4.00 50% 3.00 40% 2.00 30% 60% 60% 56% 55% 54% 53% 1.00 20% 10% 0.00 2018 2019 2020 2021 2022 1H23 0% 2018 2019 2020 2021 2
Slide 34: Financial Highlights
Financial Highlights (As of 1H2023) Consolidated Net Income PHP19.44bn Consolidated Revenue PHP59.85bn Consolidated Operating Income PHP28.95bn EBITDA PHP35.22bn
Slide 35: Consolidated Financials: Revenue Segment Contribution
Consolidated Financials Revenue Segment Contribution 100% • Malls Business accounts for 58% of SM Prime’s 8% 8% 8% 8% 10% 10% consolidated revenues. 90% 80% • Residential Business accounts for 32%. 35% 38% 32% 70% 38% • Other Business Segments cover the rest. 60% 58% 56% 50% 40% 30% 57% 58% 54% 52%
Slide 36: Consolidated Financials: Net Income Segment Contribution
Consolidated Financials Net Income Segment Contribution • Malls and Residences contributed the most 100% 9% 7% 11% 7% 11% 13% among key business units. 90% 80% 29% 33% 23% 30% 70% 60% 70% 50% 77% 40% 62% 64% 30% 60% 59% 20% 10% 23% 12% 0% 2018 2019 2020 2021 2022 1H23 Malls Residences Other Business
Slide 37: Consolidated Financials
Consolidated Financials • Net income increased by 38% to PHP19.44 billion (In PHP Billion) 1H23 1H22 % Chg from PHP14.11 billion • Operating income went up by 36% to Revenue 59.85 46.34 29% PHP28.95 billion from PHP21.36 billion. • Consolidated revenue reached PHP59.85 billion, EBITDA 35.22 26.96 31
Slide 38: Financials: Philippine Malls
Financials Philippine Malls • Rental Income increased by 42% to (In PHP Billion) 1H23 1H22 % Chg PHP26.33 billion from PHP18.56 billion Revenues 31.52 20.59 53% • Cinema, ticket sales, and other revenues went up by 156% to PHP5.19 billion from PHP2.03 billion - Rent Income 26.33 18.56 42% • Operatin
Slide 39: Financials: China Malls
Financials China Malls • SM Prime’s China mall business operating income (In RMB Billion) 1H23 1H22 % Chg decreased to RMB0.18 billion from RMB0.19 billion. Revenues 0.40 0.39 3% • China malls revenues increased by 3% to RMB0.40 billion from RMB0.39 billion - Rent Income 0.39 0.37 4% - Others 0.012
Slide 40: Financials: Residences
Financials Residences • SM Prime’s residential business posted (In PHP Billion) 1H23 1H22 % Chg PHP19.02 billion revenues, 4% higher than PHP18.23 billion. • SMDC’s reservation sales reached PHP68.51 Revenues 19.02 18.23 4% billion, 15% higher than PHP59.42 billion. EBITDA 7.76 7.27 7% Operating Inc
Slide 41: Financials: Other Businesses
Financials Other Businesses • Commercial Properties Group and Hotels and Convention Centers revenues cover 10% of the (In PHP Billion) 1H23 1H22 % Chg overall consolidated revenues. • The Company’s office business segment reported Revenues 6.23 4.45 40% PHP3.25 billion revenues, 17% higher than PHP2
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet In PHP Million (except % data) 1H2023 % to Assets 2022 % to Assets Assets Cash and cash equivalents 41,074 4% 42,060 5% Equity instruments at fair value through other comprehensive income 20,560 2% 17,612 2% Receivables & Contract Assets 82,527 9% 82,560 9% Investment Prop
Slide 43: Cash Flow
Cash Flow In PHP Million (except % data) 1H23 2022 2021 2020 2019 2018 Cash Flows from Operating Activities Operating Income before Working Capital 34,484 60,104 44,520 39,455 65,791 56,592 Changes Net Cash provided by operations 26,365 34,933 30,667 17,190 51,728 45,964 Net Cash used in Investing A
Slide 44: 2022 Integrated Report
SM ae 2022 Integrated Report
Slide 45: Investor Kit 2023
Investor Kit 2023 This presentation is available online through www.smprime.com
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