SM Investments Corporation · PSE:SM
SM Investments — Q3 2009 Earnings Presentation
15 slides from SM Investments's earnings presentation, Nov 16, 2009
Slide 1: Third Quarter 2009 Analyst and Media Briefing
Third Quarter 2009 Analyst and Media Briefing 16 November 2009 Website: www.sminvestments.com Retail Malls Banking Property Hotel and Entertainment (100%) (51%) (45%) (67%) (100%) SM Prime SM Retail, Inc. Holdings, Inc. BDO SM Land, Inc. SM Hotels and SM Department (20%) Entertainment Stores (85%)1
Slide 2: Profitable Operation
Largest banking Largest retail chain network with with 111 stores interests in BDO and nationwide. China Bank Retail Property Banking and Development Financial Services Largest mall Hotel and Among the developer: Mall Operations Entertainment fastest growing 35 Malls with in residential, GFA of 4.4
Slide 3: Strong Financial Position
Strong and Diversified Revenue Streams Revenue by Segment Net Income by Segment 3Q09 3Q09 Malls Others 11% Retail 27% Real 34% Estate / Tourism Retail 5% Real 81% Estate/ Others Tourism 3% Malls 12% 27% Real Estate / Others FY08 Tourism FY08 Real Others 1% 3% Estate/ 16% Malls Tourism 11% 8% Retail
Slide 4: Retail Operations: Overview of Retail Merchandising
Retail Operations Overview of Retail Merchandising SM Department SM SM Stores Makro Supermarkets Hypermarkets 35 Department 44 Stores 16 Hypermarkets 12 Wholesale Stores 18 SaveMore outlets 26 Supermarkets Revenues Revenues Revenues Revenues Php 35.2bn +9% Php 29.5bn +8.5% Php 13.7bn +18% Php 6.2bn
Slide 5: Overall Retail Results
Overall Retail Results Margin improvement Jan-Sept Jan-Sept % chg across all store 2009 2008 formats due to Sales (Php bn) 84.6 79.1 7% economies of scale, Net Income (Php bn) 3.1 2.2 37% cost reduction Net Margins 3.6% 2.8% -- measures, and increased stock ROE (annualized) 31% 27% -- turnover Total
Slide 6: Mall Operations
Phil. Mall Stats SM Supermalls 35 malls nationwide GFA of 4.4 million sqm. 4 successful malls listed among the world’s largest Over 10,374 tenants Largest network of cinemas numbering over 201 with 125,382 seats Average Foot traffic: Over 2.5 million per day 900 million per annum Financial Highlight
Slide 7: 2009 and 2010 Expansion
2009 Expansion Gross Floor Area (s.q.m.) SM Naga 64,870 SM Rosario 52,142 SM Naga SM Pamplona SM Center Las Pinas 32,387 SM Fairview Expansion 28,600 SM City Rosales Expansion SM Rosales Expansion 17,000 SM North Edsa Sky Garden 31,000 225,999 Number of Malls by end-2009 36 GFA by end-2009 (in sq. m
Slide 8: Banking Operations Rankings
Banking Operations Rankings Rank/Bank Assets % share (Q2 2009) (Php billion) 1 BDO 793.5 14.6 2 Metrobank 767.7 14.1 3 BPI 696.0 12.8 4 Landbank 471.0 8.6 5 PNB 274.6 5.0 6 DBP 260.4 4.8 7 RCBC 258.2 4.7 8 Union Bank 215.2 4.0 9 China Bank 210.8 3.9 10 Citibank 194.8 3.6 Source: BDO’s Highlights of
Slide 9: BDO Unibank
Rankings Total Deposits Net Loans and Receivables 2Q09 2Q08 Inc/ 2Q08 Rank/Bank 2Q09 2Q08 Inc/ 2Q08 Rank/Bank (Pbn) (Pbn) (Dec) Rank (Pbn) (Pbn) (Dec) Rank 1 BDO 625.2 497.5 26% 3 1 BDO 455.5 333.4 37% 3 2 BPI 567.2 510.6 11% 2 2 Metrobank 400.1 361.7 11% 1 3 Metrobank 555.7 535.1 4% 1 3 BPI 367.2 3
Slide 10: China Bank
China Bank Growth Financial Highlights Jan-Sept ‘09 (y/y) Key Business Strategy for 2009 Net Interest Income 6.0 30% Focus on sound balance Other Income 3.1 68% sheet and loan quality Net Income* 3.2 41% Set clear risk limits for Assets 214.4 11% loan portfolios Capital* 29.3 16% Network expansion D
Slide 11: Property Operations: Emerging Business
SM Land Inc. Residential Commercial Leisure 44% 67% 94% SM Mall of Asia Development Costa del Hamilo Complex Corp. 31% Build-to-Suit Highlands Prime Projects * Prospective organization chart of SM Land. Emerging Business An emerging Jan-Sept ’09 Jan-Sept ’08 % business for SM. (Php bn) (Php bn) Chg
Slide 12: Property Group
Property Group Profiles as of Jan-Sept 2009 Sales Profile Net Income Profile Commer- Commer- cial, 16% cial , 26% Tourism, 11% Residen- Residen- tial, 73% tial, 69% Tourism, 5% Property Development Residential Development Commercial Properties Sports Arena SMX Convention Center Mall of Asia OneE-com
Slide 13: Resort Development
Resort Development Hamilo’s Pico de Loro As of Sales % % Units for sale 30 Sept 2009 (P mn) Sold Complete Jacana 935 246 92% 91% Myna 957 246 90% 57% Carola 158 248 16% -- Miranda 565 248 43% -- Beach Club is in Club Shares 258 4,000 15% operation; Country Club is 79% complete Hotel and Entertainmen
Slide 14: Hotels and Entertainment; Group Capex for 2010
Hotels and Entertainment Newest core business that aims to further broaden SM’s range of tourism-related products and services Further strengthen Group synergies and added value within SM businesses by providing additional foot traffic to SM malls and stores, harnessing value of existing land assets
Slide 15: Third Quarter 2009 Investor Presentation
Third Quarter 2009 Investor Presentation 16 November 2009 Except for historical financial and operating data and other information in respect of historical matters, the statements contained herein are “forward-looking statements”. Any such forward-looking statement is not a guarantee of future perfo