Sm Investments Corporation · PSE:SM
Sm Investments — FY2022 Earnings Presentation
20 slides from Sm Investments's earnings presentation, Feb 28, 2023
Slide 1: FY 2022 Earnings Briefing
FY 2022 Earnings Briefing Feb 28, 2023
Slide 2: SMIC FY 2022 Consolidated Results
SMIC FY 2022 Consolidated Results ▪ Strong pandemic recovery, led by economic reopening and consumer activity ▪ All businesses contributed to growth ▪ Portfolio Investments positively contributing to earnings Portfolio Investments SM Investments FY 2022 Chg 11% Revenues 553.8 28% Retail Earnings 61.
Slide 3: Banking – BDO
Banking – BDO BDO FY 2022 Chg ▪ Sustained momentum driven by Net Income 57.1 33% robust growth across its core businesses Net Interest Inc. 149.2 14% Other Income 71.5 17% ▪ Full-year ROE at 13% with 4Q ROE Gross Loans 2,613.8 9% further improving to 15.3% Deposits 3,220.9 14% ▪ Comfortable capital
Slide 4: Banking – China Bank
Banking – China Bank China Bank FY 2022 Chg Net Income 19.1 27% ▪ Growth driven by net interest income and Net Interest Inc. 45.6 17% core fee income growth Other Income 10.1 5% ▪ Above industry NPL of 2.3% and NPL Gross Loans 716.5 15% coverage at 123% Deposits 1,065.9 24% ▪ Cost-to-income ratio im
Slide 5: Property
Property ▪ Topline driven by robust consumer demand ▪ Philippine mall rental income up 92% as SM Prime FY 2022 Chg foot traffic returned to pre-pandemic levels, Total Revenues 105.8 29% exceeding on weekends Philippine Malls 49.8 107% ▪ Cinemas, event ticket sales and other Residential 40.1 -13% rev
Slide 6: Retail
Retail SM Retail Revenue Chg NI Chg Total Retail 378.2 24% 17.9 86% SM Store 98.8 61% 4.5 895% Specialty 85.2 30% 7.2 51% Food Group 219.6 12% 8.4 19% Figures in PHP B except percentages ▪ Economic reopening, pent up consumer demand and strong last quarter, drove revenues ▪ Net income grew by 86% dr
Slide 7: SM Retail
SM Retail 6
Slide 8: SM Retail Consolidated
SM Retail Consolidated Financials 2022 2021 Chg Revenue 378.2 303.9 24% SSSG 22.2% -1.1% EBIT Margin 7.6% 5.6% Net Income 17.9 9.6 86% Figures in PHP B except percentages 7
Slide 9: Operating Highlights
Operating Highlights FY 2022 FY 2021 Change Store Count 3,512 3,215 9% GFA in sqm 3.25mn 3.08mn 5% 8
Slide 10: Realizing Structural Operating Efficiencies
Realizing Structural Operating Efficiencies EBIT Margin 7.60% 6.30% 6.00% 5.60% 3.30% 2018 2019 2020 2021 2022 9
Slide 11: Retail has surpassed pre-pandemic levels
Retail has surpassed pre-pandemic levels FY Revenues FY Net Income 367B 378B 18B 297B 304B 12B 10B 4B 2019 2020 2021 2022 2019 2020 2021 2022 10
Slide 12: We will continue to expand our retail footprint in 2023
We will continue to expand our retail footprint in 2023, adding: SM Store Food Group Specialty 3 ~300 ~100 11
Slide 13: 2GO Tender Offer
2GO Tender Offer SMIC, as the majority shareholder, will undertake a tender offer to take the company private ▪ To provide SMIC with greater exposure to the long-term growth and financial success of 2GO ▪ SMIC will engage BPI Capital to issue an Independent Valuation Report ▪ Price of the offer to b
Slide 14: SMIC Awards
SMIC Awards Among the highest ratings for governance and sustainability in the region and globally 13
Slide 15: FY 2022 Results Key Messages
FY 2022 Results Key Messages ▪ FY growth across all businesses – strong recovery ▪ Retail driven by non-food sales and strong Q4 consumer activity ▪ Bank growth robust across core businesses, lower NPLs and strong balance sheets ▪ Property benefitted from return to full rental fees and robust consum
Slide 16: Annex
Annex 15
Slide 17: SM Retail Consolidated
SM Retail Consolidated ▪ Economic reopening, pent up Financials 2022 2021 Chg consumer demand and strong Revenue 378.2 303.9 24% mall foot traffic, drove revenues SSSG 22.2% -1.1% ▪ Net income grew by 86% driven EBIT Margin 7.6% 5.6% by Non-Food sales Net Income 17.9 9.6 86% Figures in PHP B except
Slide 18: SM Retail – The SM Store
SM Retail – The SM Store Financials 2022 2021 Chg ▪ Fashion led growth in Revenue 98.8 61.5 61% department stores as students SSSG 59.9% 10.9% returned to school and workers EBIT Margin 6.6% -0.5% reported to offices Net Income 4.5 -0.6 896% ▪ Net income and margins Figures in PHP B except percentag
Slide 19: SM Retail – Food Group
SM Retail – Food Group Revenue by Format Financials 2022 2021 Chg Revenue 219.6 196.2 12% Alfamart 11% SSSG 9.4% -6.7% SM Supermarket EBIT Margin 5.0% 4.9% Waltermart 28% Net Income 8.4 7.1 19% 16% Figures in PHP B except percentages SM Hypermarket Profile 18% Store Count 1,829 1,608 14% Savemore Se
Slide 20: SM Retail – Specialty
SM Retail – Specialty Financials 2022 2021 Chg Revenue 85.2 65.4 30% SSSG 26.0% 7.3% ▪ Healthy growth across specialty EBIT Margin 11.2% 9.8% brands Net Income 7.2 4.7 51% Figures in PHP B except percentages ▪ Net income grew by 51% Profile Store Count 1,611 1,539 5% Selling Area 0.7 0.6 4% Gross Se