Sm Investments Corporation · PSE:SM
Sm Investments — H1 2022 Earnings Presentation
18 slides from Sm Investments's earnings presentation, Aug 3, 2022
Slide 1: 1H 2022 Earnings Briefing
1H 2022 Earnings Briefing Aug 3, 2022
Slide 2: SMIC 1H 2022 Consolidated Results
SMIC 1H 2022 Consolidated Results ▪ Strong consumer spending momentum in Retail and Malls ▪ Banks continued to drive earnings ▪ Portfolio Investments contributed 6% of earnings SM Investments 1H 2022 Chg Portfolio Investments Revenues 238.5 23% 6% Retail Earnings 25.5 27% 20% Assets 1,399.8 4% Net I
Slide 3: Banking – BDO
Banking – BDO BDO 1H 2022 Chg Net Income 23.9 12% ▪ Sustained momentum driven by Net Interest Inc. 69.4 8% strong core business Other Income 34.3 15% ▪ CASA ratio at 85% on 11% growth Loans 2,458.4 9% in CASA deposits Deposits 2,954.8 10% ▪ NPL ratio improved and NPL NIM 4.0% coverage increased to 1
Slide 4: Banking – China Bank
Banking – China Bank China Bank 1H 2022 Chg ▪ Growth driven by net interest income and Net Income 10.1 39% core fee income growth, lower provisions Net Interest Inc. 22.0 16% ▪ Above industry loan growth Other Income 3.2 -46% ▪ NPL ratio improved 120bps and NPL Loans 655.0 14% coverage at 128% Depos
Slide 5: Property
Property ▪ Strong domestic demand momentum SM Prime 1H 2022 Chg ▪ Philippine mall rental income up 80% Total Revenues 46.3 13% ▪ Cinemas, event ticket sales and other Philippine Malls 20.6 92% revenues up 349% China Malls (in RMB B) 0.4 -3% ▪ Residential revenues impacted by cancelations due to expi
Slide 6: Retail
Retail SM Retail Revenue Chg NI Chg Total Retail 163.7 18% 7.0 91% SM Store 38.0 56% 0.9 240% Specialty 36.3 25% 2.7 77% Food Group 100.2 8% 4.3 32% Figures in PHP B except percentages ▪ Strong consumer spending momentum across all formats ▪ Retail at 96% of pre-pandemic revenues ▪ Net income above
Slide 7: SM Retail is Back
SM Retail is Back 6
Slide 8: Demand Driven Recovery
Demand Driven Recovery External ▪ Relaxed mobility restrictions ▪ Pent-up demand and revenge spending Internal ▪ Brand and broad selection of products ▪ Best value offering ▪ Customer Experience 7
Slide 9: Foot Traffic Recovery
Foot Traffic Recovery Mall Foot Traffic (thousands) 100,000 Alert Level 2 (Nov 2021) Alert Level 1 102% 90,000 (Mar 2022) of pre-pandemic 80,000 Alert Level 3 levels during (Oct 2021) weekends 70,000 60,000 50,000 Alert Level 2 Re-opening Omicron Surge (Feb 2022) of malls 40,000 (Jan 2022) (May 2020
Slide 10: Calibrated Footprint Expansion Paying Off
Calibrated Footprint Expansion Paying Off 1H 2022 FY 2019 Change Store Count 3,336 2,799 19.2% GFA in sqm 3.2mn 2.8mn 6.5% 9
Slide 11: Furthering our Omnichannel Strategy
Furthering our Omnichannel Strategy Browse, Ship from Chat, Call & Supplier or 10% Shop Warehouse of non-food retail sales Pick Up or Offer Ship Items Not From Store In Store 10
Slide 12: Coming out of the pandemic stronger than ever
Coming out of the pandemic stronger than ever YTD Revenues YTD Net Income 170B 7.0B 164B 139B 138B 5.7B 3.6B 0.5B 2019 2020 2021 2022 2019 2020 2021 2022 11
Slide 13: SM Investments received approval to acquire PGPC
SM Investments received approval to acquire PGPC $99.4mn Revenues in 2021 ▪ Total consideration paid for 81% of Allfirst, parent of PGPC, is P15.76bn ▪ Issuance of 17.4 million new shares, equivalent to 1.4% of shares outstanding in SMIC ▪ In 2021, PGPC revenues were $48.8mn Net Income in 2021 equiv
Slide 14: 1H 2022 Results Key Messages
1H 2022 Results Key Messages ▪ SM H1 performance a bright spot in the Philippines and region ▪ Strong momentum in consumer spending – Filipino shoppers are back ▪ Retail benefited from strong consumer sentiment across all categories and formats, especially in fashion-related items and in department
Slide 15: SM Retail Consolidated
SM Retail Consolidated Financials 2022 2021 Chg Revenue 163.7 138.2 18% SSSG 16.0% -3.5% ▪ Strong consumer spending Net Income 7.0 3.6 91% momentum in 1H 2022 Net Margin 4.7% 3.3% Figures in PHP B except percentages ▪ Net income grew by 91% driven by sustained Non-Food sales Profile ▪ New channels r
Slide 16: SM Retail – SM Store
SM Retail – SM Store Financials 2022 2021 Chg Revenue 38.0 24.4 56% SSSG 55.8% 4.3% Net Income 0.9 -0.6 240% ▪ Improved sales in fashion items Net Margin 2.5% -2.9% Figures in PHP B except percentages ▪ Better margin products improving mix Profile ▪ Cost efficiencies Store Count 69 66 5% Selling Are
Slide 17: SM Retail – Food Group
SM Retail – Food Group Financials 2022 2021 Chg Revenue by Format Revenue 100.2 92.9 8% SSSG 4.7% -11.0% Alfamart Net Income 4.3 3.3 32% 11% Net Margin 4.4% 3.6% SM Supermarket Figures in PHP B except percentages Waltermart 28% 15% Profile Store Count 1,724 1,493 15% SM Hypermarket 18% Selling Area
Slide 18: SM Retail – Specialty
SM Retail – Specialty Financials 2022 2021 Chg Revenue 36.3 29.1 25% SSSG 20.4% 21.7% Net Income 2.7 1.5 77% ▪ Improved sales in more Net Margin 7.7% 5.3% Figures in PHP B except percentages discretionary items ▪ Margin improvement due to Profile better mix and cost efficiencies Store Count 1,543 1,