Sm Prime Holdings, Inc. · PSE:SMPH

Sm Prime — Investor Presentation (November 2022)

49 slides from Sm Prime's investor presentation, November 2022

  1. Slide 1: Investor Kit 2022

    Investor Kit 2022 This presentation is available online through www.smprime.com

  2. 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

  3. Slide 3: Outline

    Outline I. Company Profile II. 9M2022 Financial Highlights III. COVID-19 Response IV. Sustainability • Sustainability Council • SM Prime’s Path to Sustainable Development • Four Sustainability Pillars • Sustainability in Our Business Units V. The Company • Key Business Units • At A Glance • Malls •

  4. Slide 4: Company Profile

    Company Profile Market Capitalization US$17.13bn • One of the leading integrated property developers in Southeast Asia PSE Stock Symbol SMPH • One of the largest listed real estate developers on Market Capitalization PHP1,002bn (November 04, 2022) the PSE by market capitalization and net income Outs

  5. Slide 5: 9M2022 Financial Highlights

    9M2022 Financial Highlights • Consolidated net income of PHP22.01 billion in 9M2022, up by 41% from PHP15.62 billion in 9M2021 • Consolidated revenues of PHP73.67 billion in 9M2022, 30% higher from PHP56.84 billion in the same period last year. • Revenue Contribution: Malls Business accounts for 52%

  6. Slide 6: COVID-19 Response

    COVID-19 Response 2022 • SM Supermalls continues partnering with various LGUs nationwide to be the venue for their COVID-19 vaccination program for adults and kids age 5-11 years old. 2021 • SM Mall of Asia Arena continues to serve as Mega Swabbing Facility. • SM Supermalls partnered with Philippine

  7. Slide 7: COVID-19 Response

    COVID-19 Response 2020 • Through SM Foundation: Donated PHP300* million worth of PPEs, medical equipment, and facilities to meet the needs of some 150 hospitals and health facilities nationwide • Donated seven emergency quarantine facilities (EQFs) built by SM EDD (SM Engineering, Design, and Develo

  8. Slide 8: COVID-19 Response

    COVID-19 Response 2020 • Launched “Trace Together,” a generic mobile tracing tool for all our properties complementing the tracing program of the national government. • Introduced alternative delivery/fulfillment options for mall tenants to serve its customers. • Streamlined organizational structure

  9. Slide 9: Sustainability

    Sustainability TASK FORCE on CLIMATE-RELATED FINANCIAL © TCFD| o FTSE4Good

  10. Slide 10: Sustainability Council

    Sustainability Council 10

  11. Slide 11: Sustainability Maturity Path

    Sustainability Maturity Path Disaster resilience, social inclusion, and the prudent use of natural resources. All these advocacies have been integral to SM Prime’s core business strategy since 2013. The diagram below presents some of the significant milestones of our Company’s ongoing journey toward

  12. Slide 12: Sustainability Framework

    Sustainability Framework SM Prime drives change by building and managing properties that spur commercial activity and local economic growth. However, given the scale of our operations and leading position in what remains a developing nation, we also recognize our broader responsibility to operate in

  13. Slide 13: Value Creation at SM Prime

    Value Creation at SM Prime At SM Prime, we create value through investments in real estate that are essential to the country’s socio-economic growth. We raise various forms of capital, deploy various forms of resources, and strengthen our relationships to develop communities and estates that bring w

  14. Slide 14: Key Business Unit

    Key Business Unit Hotels and Convention Malls Residences Commercial Centers • SM Supermalls • SM Development • Offices and • Radisson Blu Corporation and Warehouses SM Lifestyle, Inc. • Taal Vista • Subsidiaries • Mall of Asia Complex • Pico Sands • Family Entertainment • Highlands Prime Inc. • Seas

  15. Slide 15: At a Glance

    At a Glance MALLS RESIDENCES 9M2022 Operating Highlights 9M2022 Operating Highlights • Total Revenues is PHP38.32 billion, increased by 89% from • Total Revenues is PHP28.28 billion, 12% lower from last PHP20.27 billion year’s PHP32.08 billion • Operating Income is PHP20.39 billion, 209% higher from

  16. Slide 16: At a Glance: Lifestyle Cities in Metro Manila

    At a Glance Novaliches, Quezon City Mall Residential Lifestyle Cities in Metro Manila Caloocan (North) Fairview, Quezon City Mall Offices North EDSA, Quezon City Mall Residential Office Hotel Valenzuela Quezon City Sta. Mesa, Quezon City Mall Residential • SM Prime has ten (10) integrated Navotas Ma

  17. Slide 17: At a Glance: Lifestyle Cities in the Provinces

    At a Glance Olongapo, Zambales Mall Convention Center Clark, Pampanga Mall Offices Hotel Convention Center Lifestyle Cities in the Provinces Marilao, Bulacan Mall Residential Zambales Pampanga Taytay, Rizal Mall Residential Office Bulacan Rizal Trece Martires, Cavite Mall Residential Cavite Laguna S

  18. Slide 18: Malls

    Malls (As of 9M2022) Revenue PHP38.32bn Operating Income PHP20.39bn Gross Floor Area 10.2m sqm Malls 79 in PH & 7 in CH

  19. Slide 19: Key Business Units: Malls

    Key Business Units Malls CHINA PHILIPPINES 79 Malls 7 Malls 8.9M sqm Total GFA 1.3M sqm Total GFA 18,348 Tenants 1,827 Tenants Average Daily Average Daily 2.6M Pedestrian Count 0.2M Pedestrian Count 367 Cinema Screens 58 Cinema Screens 84,635 Car Park Slots 15,221 Car Park Slots SM Prime is the larg

  20. Slide 20: Key Business Units: Philippines Malls

    Key Business Units Philippine Population: 110M Philippines Malls LUZON: 41 Malls • In terms of GFA, Metro Manila malls account for 42%, Luzon (ex NCR) is 37%, Visayas is NCR: 13% and Mindanao is 8% 24 Malls • Average mature mall contracts is 92% in terms of lease awarded. VISAYAS: 7 Malls • Accounts

  21. Slide 21: Mall Coverage in PH

    Key Business Units Mall Coverage in PH Philippine Population: 110M Caloocan (North) • SMPH malls covered almost all Luzon: Valenzuela 51M People of the key cities in Metro Manila, (1 Mall) Quezon City Navotas (5 Malls) Malabon accounting for 42% of the Caloocan (2 Mall) Marikina (1 Mall) company’s t

  22. Slide 22: Key Business Units: China Malls

    SM City Xiamen & SM Key Business Units Lifestyle Center China Malls • Operating in China since 2001 and became part of SM Prime in 2007 • Operates 7 malls with a total GFA of 1.3m sqm • Construction for the expansion of SM Xiamen and the new SM Yangzhou is on-going. Yangzhou SM City Tianjin SM City

  23. Slide 23: Malls' Expansion Program

    Key Business Units Malls’ Expansion Program 2022 New 2022 Malls Malls Name GFA Expansion Name GFA SM City Roxas 41,000 SM City Urdaneta Central 12,000 (Opened April 8, 2022) SM City Sta. Rosa 51,000 SM City Tanza 60,000 (Opened October 14, 2022) SM City Cagayan de Oro 12,000 SM City Sorsogon 40,000

  24. Slide 24: Residences

    Residences (As of 9M2022) Revenue PHP28.28bn Operating Income PHP11.24bn Reservation Sales PHP83.93bn Residential Units Launched (since 2003) PHP679bn / 174,442 units

  25. Slide 25: Key Business Units: Primary Residences

    Gold Residences, Paranaque Key Business Units City Primary Residences Light 2 Residences, Mandaluyo ng City • A leading residential developer of high-rise buildings (HRBs), mid-rise buildings (MRBs) and single-detached house and lots • Accounts for 38% of the consolidated revenues • Reservation sale

  26. Slide 26: Primary Residences Projects Overview

    Key Business Units Primary Residences Projects Overview (as of 9M2022) Ready-for-Occupancy (RFO) 5,159 (Unsold Units) Ongoing Construction (Unsold Units) 23,112 Estimated Inventory Value PHP170.27bn 9M2022 Reservation Sales (Value) PHP83.93bn 9M2022 CAPEX PHP30.10bn Landbank (hectares) Metro Manila

  27. Slide 27: Residential Coverage: Metro Manila

    Residential Coverage Caloocan (North) Primary Residences in Metro Manila Valenzuela Quezon City Navotas (13 Projects) Malabon Caloocan Marikina • As of September 2022, 46 out of the 63 SMDC projects are located in Metro Manila. Manila (2 Projects) San Juan Mandaluyong Pasig • Majority are located in

  28. Slide 28: Residential Coverage: Provinces

    Residential Coverage Pampanga Mabalacat (2 H&L) Angeles (1) Primary Residences in the Provinces Bulacan Marilao (1) Baliuag (1) Rizal Cainta (1) • As of September 2022, SMDC has Pampanga seventeen (17) residential developments in Bulacan Rizal Cavite Dasmarinas (1) Trece Martires (1) Tagaytay (2) ke

  29. Slide 29: Key Business Units: Leisure Homes

    Woodlands Point Community Key Business Units at Tagaytay Highlands 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

  30. Slide 30: Offices

    Offices (As of 9M2022) Revenue PHP4.42bn Operating Income PHP3.16bn Gross Floor Area 1.5m sqm Office Buildings 18 SMPH Investor Kits 2022

  31. Slide 31: Key Business Units: Offices

    FiveE- Com Key Business Units Center Offices FourE- Com • Have 18 office buildings with a combined GFA of Center almost 1.5m sqm • Five of these 18 offices are located in the Mall of Asia Complex in Pasay City, with a combined GFA of almost 627,000 sqm. ThreeE- • Have an available landbank of 105 he

  32. Slide 32: Hotels & Convention Centers

    Hotels & Convention Centers (As of 9M2022) Revenue PHP2.82bn Operating Income PHP0.25bn Hotels 9 Convention Centers & Trade Halls 8

  33. Slide 33: Key Business Units: Hotels & Convention Centers

    Conrad Manila Key Business Units Hotels & Convention Centers Radisson Blu Cebu • Operating 9 hotels with over 2,200 rooms; 6 Convention Centers, and 2 Trade Halls with almost 49,000 sqm of leasable space as of 9M2022. • Conrad Manila and SMX Manila are both located in Mall of Asia Complex, Pasay Cit

  34. Slide 34: Key Strategies

    Key Strategies (As of 9M2022) Landbank 2,357ha 2022 CAPEX PHP80bn Net Debt To Equity 47:53

  35. Slide 35: Landbank

    Landbank Area by Region (in hectares) Area Metro No. of Sites (in hectares) % of Total Manila Provincial • SM Prime’s landbank is good for 58 343 15% 21 322 the next 5 to 7 years, located in Malls emerging progressive cities across the country Primary 93 1,380 59% 94 1,286 Residences • Leisure proje

  36. Slide 36: CAPEX Program

    CAPEX Program 100% 8% 6% 14% 8% 17% 15% 90% 80% • SM Prime has allotted PHP80 billion capital expenditures for 2022. This will be used for 70% 51% 52% 42% various property developments as well as 60% 62% 41% strategic landbanking activities with due 56% consideration to the challenges brought about

  37. Slide 37: Maintain Conservative Balance Sheet

    Maintain Conservative Balance Sheet Interest Coverage Ratio* Net Debt to Equity** 10.00 100% 8.96 9.00 90% 80% 36% 40% 40% 8.00 7.59 7.56 44% 45% 47% 7.00 70% 6.10 6.00 60% 4.57 4.61 50% 5.00 4.00 40% 30% 64% 60% 60% 3.00 56% 55% 53% 2.00 20% 1.00 10% 0.00 0% 2017 2018 2019 2020 2021 9M2022 2017 201

  38. Slide 38: Financial Highlights

    F i n ancial H i g h ligh ts (As of 9M2022) Consolidated Net Income PHP22.01bn Consolidated Revenue PHP73.67bn Consolidated Operating Income PHP34.63bn

  39. Slide 39: Consolidated Financials: Revenue Segment Contribution

    Consolidated Financials Revenue Segment Contribution 100% 9% 8% 8% 8% 8% 10% • Malls Business accounts for 52% of SM Prime’s 90% consolidated revenues. 80% 33% 35% 38% 70% 38% • Residential Business accounts for 38%. 58% 56% 60% • Other Business Segments cover the rest. 50% 40% 30% 58% 57% 54% 52% 2

  40. Slide 40: Consolidated Financials: Net Income Segment Contribution

    Consolidated Financials Net Income Segment Contribution 100% • Malls and Residences contributed the most 10% 9% 7% 11% 5% 10% 90% among key business units. 80% 25% 29% 33% 25% 70% 60% 70% 50% 77% 40% 65% 62% 65% 30% 60% 20% 25% 10% 12% 0% 2017 2018 2019 2020 2021 9M2022 Malls Residences Other Busine

  41. Slide 41: Consolidated Financials

    Consolidated Financials • Net income increased by 41% to PHP22.01bn in (In PHP Billion) 9M2022 9M2021 % Chg 9M2022 from PHP15.62bn, while operating income went up by 61% to PHP34.63bn from Revenue 73.67 56.84 30% PHP21.57bn. Consolidated revenues grew by 30% to PHP73.67bn from PHP56.84bn. EBITDA 43.

  42. Slide 42: Financials: Philippine Malls

    Financials Philippine Malls (In PHP Billion) 9M2022 9M2021 % Chg • Rental Income is PHP30.36bn, 100% higher from PHP15.21bn in the previous year. Revenues 33.85 15.82 114% • Other revenues such as cinema and event ticket - Rent Income 30.36 15.21 100% sales and others surge by 468% to PHP3.50bn from

  43. Slide 43: Financials: China Malls

    Financials China Malls (In RMB Billion) 9M2022 9M2021 % Chg • SM Prime’s China mall business posted a 18% decline in operating income at RMB0.24bn Revenues 0.55 0.59 -7% from RMB0.30bn • China malls revenues reached RMB0.55bn in - Rent Income 0.53 0.56 -7% 9M2022, 7% lower from RMB0.59bn in 9M2021.

  44. Slide 44: Financials: Residences

    Financials Residences • SM Prime’s residential business posted (In PHP Billion) 9M2022 9M2021 % Chg PHP28.28bn revenue in 9M2022, 12% lower from last year’s PHP32.08bn. • SMDC’s reservation sales recorded PHP59.42bn Revenues 28.28 32.08 -12% in 1H2022, 8% higher from last year’s PHP55.06bn. EBITDA 1

  45. Slide 45: Financials: Other Businesses

    Financials Other Businesses • Commercial Properties Group and Hotels and (In PHP Billion) 9M2022 9M2021 % Chg Convention Centers revenues cover 10% of the overall consolidated revenues. • The Company’s office business segment Revenues 7.24 4.64 56% reported PHP4.42bn revenues in 9M2022, 17% increase

  46. Slide 46: Consolidated Balance Sheet

    Consolidated Balance Sheet (In PHP Million (except % data) 9M2022 % to Assets 2021 % to Assets Assets Cash and cash equivalents 59,661 7% 39,776 5% Equity instruments at fair value through other comprehensive income 15,427 2% 17,947 2% Receivables & Contract Assets 82,162 9% 73,020 9% Investment Pro

  47. Slide 47: Cash Flow

    Cash Flow (In PHP Million (except % data) 9M2022 2021 2020 2019 2018 2017 Cash Flows from Operating Activities Operating Income before Working Capital Changes 42,693 44,520 39,455 65,791 56,592 48,058 Net Cash provided by operations 19,584 30,667 17,190 51,728 45,964 45,777 (44,114) Net Cash used in

  48. Slide 48: 2021 Integrated Report

    SMPRIME SMPRIME 2021 Integrated Report Together, We Rise 2021 Integrated Report @

  49. Slide 49: Investor Kit 2022

    Investor Kit 2022 This presentation is available online through www.smprime.com

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