Sm Prime Holdings, Inc. · PSE:SMPH
Sm Prime — Investor Presentation (November 2023)
45 slides from Sm Prime's investor presentation, November 2023
Slide 1: Investor Kit 2023
Investor Kit 2023 This presentation is available online through www.smprime.com
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
Slide 3: Outline
Outline I. Company Profile V. Key Strategies Key Strategies II. 9M2023 Financial Highlights Landbank III. Sustainability CAPEX Program • Sustainability Council VI. Financial Highlights • SM Prime’s Path to Sustainable Development • Four Sustainability Pillars • Sustainability in Our Business Units I
Slide 4: Company Profile
Company Profile Market Capitalization US$15.92bn • One of the leading integrated property developers in Southeast Asia PSE Stock Symbol SMPH • One of the largest listed real estate developers on the PSE by market capitalization and net income Market Capitalization PHP895bn (November 06, 2023) • Cons
Slide 5: 9M2023 Financial Highlights
9M2023 Financial Highlights • Consolidated net income went up by 37% to PHP30.13 billion in 9M2023 from PHP22.01 billion in 9M2022. • Consolidated revenues reached PHP92.60 billion, 26% increase from PHP73.67 billion in the same period being reviewed. • Revenue Contribution: Malls Business accounts
Slide 6: Sustainability
TASK FORCE on CLIMATE-RELATED Sustainability ® ICFD DISCLOSURES FTSE4Good
Slide 7: Sustainability Council
Sustainability Council STEERING COMMITTEE CHAIRMAN Mr. Jeffrey C. Lim e ADVISORY GROUP Head office divisions that provide recommendations on the Steering Committee based on their expertise e e SUSTAINABILITY SECRETARIAT The department that coordinates with the members of the Advisory Group and busin
Slide 8: Net-Zero Ambition Action Plan
Net-Zero Ambition Action Plan
Slide 9: Sustainability Framework
Sustainability Framework In 2020, our Board established a Sustainability Council with the understanding that the country’s economic growth and our business growth has increased our exposure and vulnerability to global warming, global supply chain disruptions, and socio-economic forces that may under
Slide 10: SM Prime's Value Creation
SM Prime’s Value Creation *Data as of FY2022
Slide 11: Key Business Unit
Key Business Unit Hotels & Malls Residences Offices Convention Centers • SM Supermalls • SM Development • Office and Warehouses • Radisson Blu • SM Lifestyle, Inc. Corporation and • Mall of Asia Complex • Taal Vista • Family Entertainment Subsidiaries • Seaside City Cebu • Pico Sands Center, Inc. •
Slide 12: At a Glance
At a Glance Malls Residences 9M2023 Operating Highlights 9M2023 Operating Highlights • Total Revenues is PHP52.49 billion, 37% higher than • Total Revenues is PHP30.58 billion, 8% up form last year’s PHP38.24 billion PHP28.28 billion • Operating Income is PHP28.06 billion, 38% up from PHP20.39 • Ope
Slide 13: At a Glance: Lifestyle Cities in Metro Manila
At a Glance Lifestyle Cities in Metro Manila Novaliches, Quezon City Mall Residential Caloocan (North) Fairview, Quezon City Mall Offices Caloocan (North) • SM Prime has eleven (11) integrated North EDSA, Quezon City Mall Residential Office Hotel property developments in Metro Manila Valenzuela Vale
Slide 14: At a Glance: Lifestyle Cities in the Provinces
At a Glance Lifestyle Cities in the Provinces Olongapo, Zambales Mall Convention Center • SM Prime has eleven (11) integrated Clark, Pampanga Mall Offices Hotel Convention Center property developments in key provincial Marilao, Bulacan Mall Residential cities in the Philippines. Zambales Pampanga Ta
Slide 15: Malls
Malls (As of 9M2023) Revenue PHP52.49bn Operating Income PHP28.06bn Gross Floor Area 10.8M* sqm Malls 85* in PH and 8 in CH *As of October 31, 2023
Slide 16: Key Business Units: Malls
Key Business Units Malls PHILIPPINES CHINA 85* Malls 8 Malls 9.2M* sqm Total GFA 1.6M sqm Total GFA 20,029 Tenants 2,165 Tenants Average Daily 3.5M Pedestrian Count Average Daily 0.3M Pedestrian Count 382 Cinema Screens 69 Cinema Screens 88,043 Car Park Slots 18,114 Car Park Slots SM Prime is the la
Slide 17: Key Business Units: Philippine Malls
Key Business Units Philippine Population: 111M Philippine Malls GDP: PHP22Trillion* LUZON: • In terms of GFA, Metro Manila malls account for 42%, 47 malls** Luzon (ex NCR) is 38%, Visayas is 12% and GFA: 3.6M sqm** GDP: PHP8 Trillion* Mindanao is 8% NCR: • Average mall contracts is 94% in terms of l
Slide 18: Key Business Units: China Mall
Key Business Units China Mall • Operating in China since 2001 and became part of SM Prime in 2007 • Opened SM City Yangzhou last September 2023 SM City Xiamen • Operates 8 malls with a total GFA of 1.6m sqm: • SM City Xiamen • SM City Jinjiang • SM City Chengdu • SM City Suzhou • SM City Chongqing •
Slide 19: Malls' Expansion Program
Key Business Units Malls’ Expansion Program 2023 New Malls 2023 Malls Expansion Name GFA (sqm) Name GFA (sqm) SM City Bataan 46,000 (Opened May 2023) SM City Bacolod 6,000 SM Center San Pedro 31,000 SM City Iloilo 2,000 (Opened October 2023) SM City Sto. Tomas 110,000 (Opened October 2023) • This 20
Slide 20: Residences
Residences (As of 9M2023) Revenue PHP30.58bn Operating Income PHP12.49bn Reservation Sales PHP89.27bn Residential Units Launched (since 2013) PHP708bn / 181,669 units
Slide 21: Primary Residences
Key Business Units Primary Residences • A leading residential developer of high-rise buildings (HRBs), mid-rise buildings (MRBs) and single-detached house and lots • Accounts for 31% of the consolidated revenues Jade Residences, Makati City • In 9M2023, 47% of buyers are Overseas Filipinos, 38% are
Slide 22: Primary Residences Projects Overview
Key Business Units Primary Residences Projects Overview (as of 9M2023) Ready-for-Occupancy (RFO) 4,256 (Unsold Units) Ongoing Construction (Unsold Units) 17,473 Estimated Inventory Value PHP141.94bn 9M2023 Reservation Sales (Value) PHP89.27bn 9M2023 CAPEX PHP20.80bn Landbank (hectares) Metro Manila
Slide 23: Primary Residences in Metro Manila
Key Business Units Primary Residences in Metro Manila Caloocan (North) • As of September 2023, SMDC has forty-seven (47) residential developments in Metro Manila Valenzuela • Majority of SMDC’s residential developments in Navotas Quezon City (13 Projects) Malabon Metro Manila are High-Rise Buildings
Slide 24: Primary Residences in Provinces
Key Business Units Primary Residences in Provinces Pampanga Mabalacat (2 H&L) Angeles (1) • As of September 2023, SMDC has eighteen (18) Bulacan Marilao (1) Baliuag (1) residential developments in key provincial cities Pampanga Rizal Cainta (1) • 89% of these are mid-rise buildings (MRB), while Bula
Slide 25: Leisure Homes
Key Business Units 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 Trealva in Tagaytay Highlands • The 40-hectare P
Slide 26: Offices
Offices (As of 9M2023) Revenue PHP4.94bn Operating Income PHP3.31bn Gross Floor Area 1.5M sqm Office Buildings 18
Slide 27: Key Business Units: Offices
Key Business Units Offices • Have 18 office buildings with a combined GFA of almost 1.5m sqm • Five of these 18 offices are located in the Mall of Asia Complex in Pasay City, with a combined ThreeE-Com Center GFA of almost 657,000 sqm. • Have an available landbank of 105 hectares for future developm
Slide 28: Hotels & Convention Centers
Hotels & Convention Centers (As of 9M2023) Revenue PHP4.60bn Operating Income PHP1.14bn Hotels 9 Convention Centers 8
Slide 29: Hotels & Convention Centers
Key Business Units Hotels & Convention Centers • Operating 9 hotels with over 2,200 rooms; 6 Convention Centers, and 2 Trade Halls with almost 42,000 sqm of leasable space as of September 2023. Conrad Manila • Conrad Manila and SMX Manila are both located in Mall of Asia Complex, Pasay City. • SM Pr
Slide 30: Key Strategies
Key Strategies (As of 9M2023) Landbank 2,385ha 9M2023 CAPEX PHP72bn Net Debt to Equity 46:54
Slide 31: Landbank
Landbank Area by Region (in hectares) Area No. of (in % of Metro • SM Prime’s extensive landbank is good for the Sites hectares) Total Manila Provincial next 5 to 7 years, and mostly located in emerging progressive cities across the country Malls 60 350 15% 24 326 • Leisure projects are for medium-t
Slide 32: CAPEX Program
CAPEX Program PHP58B PHP91B PHP69B PHP60B PHP65B PHP75B PHP72B 100% 8% 6% 8% 17% 14% 18% • SM Prime has set PHP80 billion as CAPEX for 90% 27% 2023. This will be used in various property 80% developments as well as strategic landbanking 70% activities 51% 62% 41% 42% 52% 60% 47% 30% • Furthermore, t
Slide 33: Maintain Conservative Balance Sheet
Maintain Conservative Balance Sheet Interest Coverage Ratio* Net Debt to Equity** 8.00 7.59 7.56 100% 7.00 90% 6.06 6.00 80% 40% 40% 44% 45% 46% 46% 5.33 4.61 70% 5.00 4.57 60% 4.00 50% 3.00 40% 2.00 30% 60% 60% 56% 55% 54% 54% 1.00 20% 10% 0.00 2018 2019 2020 2021 2022 9M23 0% 2018 2019 2020 2021 2
Slide 34: Financial Highlights
Financial Highlights (As of 9M2023) Consolidated Net Income PHP30.13bn Consolidated Revenue PHP92.60bn Consolidated Operating Income PHP44.52bn EBITDA PHP53.93bn
Slide 35: Consolidated Financials: Revenue Segment Contribution
Consolidated Financials Revenue Segment Contribution 100% • Malls Business accounts for 57% of SM Prime’s 8% 8% 8% 8% 10% 10% consolidated revenues. 90% 80% • Residential Business accounts for 33%. 35% 38% 33% 70% 38% • Other Business Segments cover the rest. 60% 58% 56% 50% 40% 30% 57% 57% 54% 52%
Slide 36: Consolidated Financials: Net Income Segment Contribution
Consolidated Financials Net Income Segment Contribution • Malls and Residences contributed the most 100% 9% 7% 11% 5% 11% 12% among key business units. 90% 80% 29% 33% 26% 30% 70% 60% 70% 50% 77% 40% 30% 62% 60% 59% 62% 20% 25% 10% 12% 0% 2018 2019 2020 2021 2022 9M23 Malls Residences Other Business
Slide 37: Consolidated Financials
Consolidated Financials • Net income increased by 37% to PHP30.13 billion (In PHP Billion) 9M23 9M22 % Chg from PHP22.01 billion • Operating income went up by 29% to Revenue 92.60 73.67 26% PHP44.52 billion from PHP34.63 billion. • Consolidated revenue reached PHP92.60 billion, EBITDA 53.93 43.12 25
Slide 38: Financials: Philippine Malls
Financials Philippine Malls • Rental Income grew by 32% to PHP40.20 billion (In PHP Billion) 9M23 9M22 % Chg from PHP30.36 billion Revenues 47.85 33.85 41% • Cinema, ticket sales, and other revenues went up by 119% to PHP7.65 billion from PHP3.50 billion - Rent Income 40.20 30.36 32% • Operating inc
Slide 39: Financials: China Malls
Financials China Malls • SM Prime’s China mall business operating income (In RMB Billion) 9M23 9M22 % Chg grew by 7% to RMB0.26 billion from RMB0.24 billion. Revenues 0.61 0.55 11% • China malls revenues went up by 11% to RMB0.61 billion from RMB0.55 billion - Rent Income 0.59 0.53 11% - Others 0.01
Slide 40: Financials: Residences
Financials Residences • SM Prime’s residential business reported (In PHP Billion) 9M23 9M22 % Chg PHP30.58 billion in revenues, 8% higher than PHP28.28 billion. • SMDC’s reservation sales reached PHP89.27 Revenues 30.58 28.28 8% billion, 6% higher than PHP83.93 billion. EBITDA 12.57 11.33 11% Operat
Slide 41: Financials: Other Businesses
Financials Other Businesses • Commercial Properties Group and Hotels and Convention Centers revenues cover 10% of the (In PHP Billion) 9M23 9M22 % Chg overall consolidated revenues. • The Company’s office business segment reported Revenues 9.54 7.16 33% PHP4.94 billion revenues, 14% higher than PHP4
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet In PHP Million (except % data) 9M2023 % to Assets 2022 % to Assets Assets Cash and cash equivalents 35,929 4% 42,060 5% Equity instruments at fair value through other comprehensive income 21,096 2% 17,612 2% Receivables & Contract Assets 78,290 8% 82,560 9% Investment Prop
Slide 43: Cash Flow
Cash Flow In PHP Million 9M23 2022 2021 2020 2019 2018 Cash Flows from Operating Activities Operating Income before Working Capital 53,606 60,104 44,520 39,455 65,791 56,592 Changes Net Cash provided by operations 44,899 34,933 30,667 17,190 51,728 45,964 Net Cash used in Investing Activities (51,39
Slide 44: 2022 Integrated Report
SM ae 2022 Integrated Report
Slide 45: Investor Kit 2023
Investor Kit 2023 This presentation is available online through www.smprime.com
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