Sm Investments Corporation · PSE:SM
Sm Investments — Investor Presentation (June 2022)
52 slides from Sm Investments's investor presentation, June 2022
Slide 1: Investor Presentation
Investor Presentation June 2022
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 PROPERTY 52.9% 35.0% 2GO Group Airspeed 22.5% 71.3% 74.1% China MyTown Goldilocks 49.7% Banking 34.0% SM Prime Corporation CityMall 55
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 20.0
Slide 7: Our Business Footprint
Our Business Footprint Philippines 3,278 retail outlets 79 malls GDP Population 2,207 bank branches Distribution Distribution Luzon (ex-NCR) Metro Manila (NCR) 1,933 retail outlets 932 retail outlets 41 malls 24 malls 733 bank branches 965 bank branches 2018-2019 GDP Growth NCR 8.3% Visayas Mindanao
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 orore, & % Award winner Q ES G: 8 South East Asia 2021 we & ” * mnlgset * magazine G ASEAN CORPORATE GOVERNANCE ESG ye \y INDUSTRY y vale S y TOP RATED QRPORA Y) We 4 CORPORATE a “2k ] SUSTAINALYTICS Meritt congany \ QCD ACGS% AAAA SM Investments Corporation su) INVESTMENTS COR
Slide 11: Recent Developments
Recent Developments 12 3M Financial Performance 13 Recent Events 14 Together against Climate Change 15 Together for Relief and Resilience 16 Digital Innovation 11
Slide 12: 3M Financial Performance
3M Financial Performance Figures in PHP billion except percentages SM Investments 3M 2022 3M 2021 % Chg Revenues 112.1 96.9 16% Net Income 12.0 9.5 27% Net Margin (inc-NCI) 15.0% 13.9% - ROE 9.5% 6.0% - Net Debt:Equity 38:62 38:62 - ▪ Revenue and Net Income surpassed pre-pandemic levels SM Retail 3M
Slide 13: Recent Events
Recent Events Parent/Group Property ▪ Achieved pre-pandemic performance surpassing revenue and net ▪ 72 malls being used to help LGU vaccination efforts, over 9.75 mn income of 3M 2019 jabs administered to date ▪ Group relief efforts for Typhoon Odette providing emergency ▪ SMPH committed to increas
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 ▪ 72 malls used as vaccination facilities; over 9.75mn 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% 68 THE SM Store 837 Effective Interest 1,541 Brand Affiliates 640 60 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 located WalterMart in WalterMart Malls expanding in 30k-45k 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 79 Malls in
Slide 25: SM Malls
SM Malls SM City Zibo, PHILIPPINES CHINA China 79 7 Malls 8.9mn 1.3mn Total GFA in SQM SM City Cebu 17,715 1,853 Tenants SM Grand 1.9mn 0.2mn Average Daily Central Pedestrian Count Data as of 3M2022, 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 43%, Luzon (ex NCR) is 36%, Visayas is 13% and Mindanao is 8% ▪ SMPH mall expansion is geared towards the provinces. The focus is to SM CDO cover most of Northern Luzon, Visayas Downtown and the progressive cities in Mind
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 3M2022) SMDC Projects to date 61, 46 in NCR Ready-for-Occupancy (RFO) 5,436 (Unsold Units) Ongoing Construction 23,083 (U
Slide 29: SM Commercial Properties
SM Commercial Properties Three E-com Center ▪ Have 12 office buildings with a combined GFA of almost 800,000 sqm ▪ Four of these 12 offices are located in the Mall of Asia Complex in Pasay City, which provide a combined GFA of 470,000 sqm ▪ Have an available landbank of 71 ICE Tower hectares for fut
Slide 30: SM Hotels and Convention Centers
Conrad Manila SM Hotels and Convention Centers Conrad Manila ▪ Operating 9 hotels with over 2,200 rooms; 5 Convention Centers, and 2 Trade Halls with approximately 38,000 sqm of leasable space as of 3M22 Convention GLA Hotels Rooms Centers (sqm) Taal Vista, Tagaytay 261 SMX Manila 17,170 Radisson Bl
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 1,571 PHP33.9bn Branches in the Philippines Net Interest Income 2 PHP 16.7 Foreign branches Other Income 4,511 PHP11.7bn ATMs Net Income 3
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 PHP10.8bn 636 Net Interest Income Branches PHP1.7bn 1,036 Other Income ATMs PHP
Slide 35: Portfolio Investments
Portfolio Investments AirSpeed Atlas Mining Belle Corp. CityMall Goldilocks 35% 34.1% 26.4% 34% 74% MyTown Neo Group PGPC* 2GO Group ▪ We invest in new and related sectors that help capture high growth opportunities in the Philippines ▪ We build market leaders through 34% 100% access to the synergie
Slide 36: 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 37: 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 3M 2022 Daily Milling Avg 50,796 Mahogany (In dm
Slide 38: 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 ▪ ~2,324 electronic
Slide 39: Goldilocks
Goldilocks Goldilocks is a well-loved Filipino heritage brand trusted by customers for over 55 years ▪ Extensive retail footprint of over 800 stores in the Philippines ▪ Resilient amidst the pandemic, Goldilocks pivoted to cater to changing customer needs by expanding sales channels online and throu
Slide 40: 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 41: 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 42: 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 sufficient to produce c.300MW of electricity. PGPC also has several other greenfield concession areas for geothermal Sustainable steam development geo
Slide 43: 2GO Group
2GO Group The largest and broadest logistics and transportation solutions provider integrating Shipping, Logistics and Distribution Shipping ▪ Efficient and reliable 8 vessel fleet ▪ Serving 16 ports of call covering all major cities Express and Logistics ▪ 39 warehouse facilities nationwide ▪ Sea,
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 $4,029 8.3% 23 ▪ 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
SM Investments Corporation Portfolio Investments Banking 7% 6% 3M 2022 Consolidated Results Property In PHP Billion 20% Particulars 3M 2022 3M 2021 % Chg FY 2021 FY 2020 FY 2019 Revenue Revenue 112.1 96.9 15.7% 428.1 394.2 502.0 Net Income to Parent 12.0 9.5 26.7% 38.5 23.4 44.6 Mix Net Margin (inc-
Slide 48: SM Prime
SM Prime 3M 2022 Results In PHP Billion Consolidated 3M 2022 3M 2021 %Chg Residences 3M 2022 3M 2021 % Chg Revenues 23.9 20.8 15% Revenues 12.0 11.9 1% Net Income 7.4 6.5 15% Operating Income 4.6 5.1 -9% Operating Income 10.1 8.7 17% EBITDA 4.6 5.1 -9% Return on Equity 9% 8% - EBITDA margin 38% 43%
Slide 49: BDO
Loans Growth Deposits BDO Financial Highlights 25% Industry BDO CASA Time Deposits CASA Ratio 3M 2022 3M 2021 % Chg (In PHP Bn) 3,500 1 85% 86% Net Interest Income 33.9 32.0 5.9% 20% 81% 3,000 2,818 8 Other Income 16.7 15.4 8.5% 2,821 2,610 15% 416 397 Net Income1 11.7 10.4 13.0% 2,500 486 6 (PHP Bn
Slide 50: China Bank
Loans Growth Deposits China Bank CHIB Industry CASA High Cost FCDU LDR Financial Highlights 3M 2022 3M 2021 % Chg 13% 80% (In PHP Bn) 1200 70% 75% Net Interest Income 10.8 9.3 15.3% 10% 1000 69% 72% 60% 9% Other Income 1.7 3.4 -49.8% 11% 800 161 50% 142 154 PHP Bn 1 Net Income 4.9 3.6 36.8% 9% 40% 6
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