Sm Investments Corporation · PSE:SM
Sm Investments — Investor Presentation (March 2021)
55 slides from Sm Investments's investor presentation, March 2021
Slide 1: Investor Presentation March 2021
Investor Presentation March 2021
Slide 2: Learn more about SM Investments
Learn more about SM Investments 2019 Annual Report 2019 Sustainability Report Scanning QR code: 1. Install a QR Code Reader app on your smartphone. 2. Open the QR Code Reader app on your smartphone and scan the QR Code. You will be redirected to where the report can be found. SMIC Investor Presentat
Slide 3: Table of Contents
Table of Contents The Philippine Economy 3 About SM Investments 4 What’s New In SM? 13 SM Retail 19 Banking 24 SM Prime 27 SM Equity Investments 38 CAPEX 46 Financials 47 SMIC Investor Presentation 2
Slide 4: Philippines: Strong Macroeconomic Fundamentals
Philippines: Strong Macroeconomic Fundamentals Young Workforce with Rising Incomes Opportunities GDP Growth Per Capita GDP Median Age Improved Infrastructure development -9.5% USD3,330 23 Provincial growth – Luzon, Visayas, Mindanao Job creation and inclusive growth Consumption Driven Per Capi
Slide 5: About SM Investments
About SM Investments SMIC is a leading Philippine company that is invested in market leading businesses in retail, banking and property. It also invests in ventures that can capture high growth opportunities in the emerging Philippine economy Strong Proxy for Philippine Growth Market leading consu
Slide 6: Our Investments
Our Investments Core Investments SM Equity Investments 26.4% BELLE CORP Retail Banking Property 34.1% ATLAS MINING 95.0% NEO SUBSIDIARIES 45.3% 22.6% 34.0% 77.3% BDO CHINA 49.7% NEO ASSOCIATES SM RETAIL INC. UNIBANK, BANKING SM PRIME HOLDINGS, INC. 34.0% INC. CORP. CITYMALL 30.5% 2GO GROUP 63.3% JOI
Slide 7: Leading Philippine Conglomerate
Leading Philippine Conglomerate Our three largest companies – SMIC, SM Prime and BDO – comprise over 30% of the value of the Philippine Index Philippine Conglos Philippine Retailers Philippine Banks Property Developers Market Cap (USD bn) Total Sales (USD mn) Total Resources (USD bn) Market Cap (USD
Slide 8: Our Business Footprint
Our Business Footprint Metro Manila (NCR) Provincial Penetration Opportunity 932 retail outlets 23 malls 962 bank branches Luzon (ex-NCR) LUZON 1,670 retail outlets P141k 40 malls 5.3% 677 bank branches METRO MANILA 47M Visayas P463k 247 retail outlets 7.2% VISAYAS 6 malls 14M 229
Slide 9: Summary of SMIC Recent Performance
Summary of SMIC Recent Performance Figures in PHP billion except percentages SM Investments FY 2020 FY 2019 % Chg FY 2018 Recent Events Revenues 394.2 502.0 -21% 449.8 Parent/Group Net Income 23.4 44.6 -48% 37.1 Obtains third Gold award in Asia Sustainability Reporting Net Margin (inc-NCI) 8.7% 13
Slide 10: Our ESG Culture
Our ESG Culture We are committed to sustainable growth and alignment with UN Sustainable Development Goals Provide inclusive economic opportunities Job creation Inclusive supply chains Innovative banking products and services Facilitate community development Public infrastructure building an
Slide 11: Supporting our Stakeholders
Supporting our Stakeholders Business growth and social development go hand-in-hand Positive community impact Construction of public health centers with birthing facilities Feeding programs and medical missions School buildings construction and scholarship programs Responsible employment practi
Slide 12: Strong Leadership
Strong Leadership Board of Directors FROM L TO R: TOMASA H. LIPANA, Independent Director • ALFREDO E. PASCUAL, Independent Director FREDERIC C. DYBUNCIO, CEO and President • JOSE T. SIO, Chairman • TERESITA T. SY-COSON, Vice Chairperson HENRY T. SY, JR., Vice Chairman • ROBERT G. VERGARA, Independen
Slide 13: 10-Year Performance
10-Year Performance Assets grew at 11.6% p.a. Market Cap grew 14.3% p.a. In PHP Billion 1,225 1,263,607 407 2010 2020 Revenue grew at 8.3% p.a. In PHP Million In PHP Billion 394 177 2010 2020 332,307 Net Income grew at 2.4% p.a. In PHP Billion 23.4 18.4 2010 2020 SMIC Investor Presentation 12
Slide 14: What’s New In SM?
What’s New In SM? SM Mall Experience made mobile Download SM Malls Online Beta to experience your favorite online shopping features in in one app. Currently available for SM Megamall, SM City North Edsa, and SM Mall of Asia, with more malls to come soon. SM Malls Online is the newest online shopping
Slide 15: Championing a gender-inclusive workplace; BDO cash withdrawals
Championing a gender-inclusive workplace During the launch of its Women at Work pop-up market, SM officially became a signatory of the UN Women’s Empowerment Principles (WEPs), making SM the largest homegrown company to sign the commitment to gender equality. Established by UN Global Compact and UN
Slide 16: COVID-19 response
COVID-19 response SM companies continue to lead in supporting employees, customers and communities with financial, medical and operational assistance and donations Employee care Core businesses Work from home arrangements Implementation of business continuity plans Full remuneration and benefi
Slide 17: Meeting the accelerated online shift
Meeting the accelerated online shift SM continues to focus on its customers, building on its nationwide presence to engage its customers where and when they choose to access our products and services Non-Food Retail Food Retail SMIC Investor Presentation 16
Slide 18: Shifting E-commerce Landscape
Shifting E-commerce Landscape Accelerated roll-out of ecommerce and new delivery channels to meet customer needs OMNI CHANNEL ASSETS* Increased preference for online retail Strengthened online fulfillment capability in SM markets NATIONWIDE FOOTPRINT and Waltermart Hastened roll out of digital p
Slide 19: Adapting to a new normal for our customers
Adapting to a new normal for our customers SM malls are supporting customer omnichannel access with multiple shopping and delivery options SMIC Investor Presentation 18
Slide 20: SM Retail: Most Diversified Retail Portfolio
SM Retail: Most Diversified Retail Portfolio Leading player in creating Philippine modern retailing Food - multiple formats from 200 to 14,000 sqm GFA Non-food - Department stores, Specialty retailing Service-led - SM is the most trusted brand in the Philippines Serving all customer segmen
Slide 21: SM Retail: Food Retailing
SM Retail: Food Retailing Large format anchor tenant in SM Supermarkets malls Stand-alone large format destinations Hypermarkets with 50/50 food/non-food mix Stand-alone mid-sized format Savemore expanding nationwide Mid-sized format tenant located in WalterMart WalterMart Malls expanding in Luzon M
Slide 22: SM Retail: Non-Food Retailing
SM Retail: Non-Food Retailing The SM STORE Specialty Retailing SM Appliance Homeworld Ace Hardware Watsons Toy Kingdom Kultura Baby Company Sports Central Our Home Pet Express Crate & Barrel Body Shop Forever 21 Uniqlo Miniso Bata Under Armour Dyson Anchor tenant in SM malls Leading local catego
Slide 23: Alfamart
Alfamart JV with Alfamart Indonesia Everyday grocery products, including fresh and frozen, plus ready-to-eat options Supermarket pricing Currently operating over 1,000 stores, located in residential areas outside Metro Manila Utilizes own distribution system, leveraging synergies with the
Slide 24: SM Retail: Footprint Expansion Opportunity
SM Retail: Footprint Expansion Opportunity Department Stores Stores GSA (sqm) Average The SM STORE 66 816,958 12,378 Food Stores GSA (sqm) Average SM Supermarket 59 364,624 6,180 SM Retail Footprint (GSA) SM Hypermarket 52 337,020 6,481 MINDANAO Savemore 209 558,608 2,673 7% WalterMart 71 184,433 2,
Slide 25: Banking: Strategic Initiatives
Banking: Strategic Initiatives BDO China Bank Diversified and sustainable earning stream Accelerate Expansion Client acquisition through branch expansion Grow Revenue Lines Drive provincial lending and deposit taking initiatives Solidify presence in corporate market Expand fee income
Slide 26: Banking: BDO
Banking: BDO Market-leading position: #1 in terms of assets, loans, deposits and assets under management Leader in investment banking, private banking, rural banking, remittances, credit cards and insurance brokerage Full-service universal bank with a complete product and service menu Focused co
Slide 27: Banking: China Bank
Banking: China Bank One of the leading private universal banks in the Philippines with total assets of P1,038 Bn (USD21.6 Bn) Strong presence in the entrepreneur, middle market and business segments Longest relationship with Chinese-Filipinos, serving this community up to the 4th generation Offers a
Slide 28: About SM Prime
About SM Prime Developer of large scale, integrated “Lifestyle cities” anchored on world-class malls The largest property developer in Southeast Asia by Malls market capitalization Core businesses include Malls, Residential, Commercial, Hotels and Conventions Centers Focus on Philippine prov
Slide 29: SM Prime: An Integrated Property Developer
SM Prime: An Integrated Property Developer The Mall of Asia Complex OneE-com TwoE-com (2008) Sea Residences (2012) (2008) Conrad Manila Shell Residences MOA Arena S Maison FiveE-com (2011) (2012) (2016) (2015) SMX Convention Mall of Asia (2006) Center, Manila (2007) Commercial, entertainment and r
Slide 30: SM Malls: Overview
SM Malls: Overview PHILIPPINES CHINA 76 Malls 7 Malls 8.7M sqm Total GFA 1.3M sqm Total GFA 17,937 Tenants 1,857 Tenants Average Daily Average Daily 1.8M Pedestrian Count 0.2M Pedestrian Count 346 Cinema Screens 58 Cinema Screens 93,142 Parking Slots 15,732 Parking Slots SM Prime is the largest mall
Slide 31: SM Malls: Philippines
SM Malls: Philippines Mall Distribution Malls GFA* % of Total Metro Manila (NCR) 23 3,570 41% Luzon (ex-NCR) 40 3,208 37% Visayas 6 1,128 13% Mindanao 7 746 9% Total 76 8,652 100% New Malls Opened GFA* SM City Baguio Expansion +32 SM City Butuan Nov 2020 48 SM Mindpro Citimall Nov 2020 38 Upcoming M
Slide 32: SM Malls: China
SM Malls: China SM Chongqing SM Zibo Existing Date Opened GFA* Xiamen 2001 December 238 Jinjiang 2005 November 168 Chengdu 2006 October 167 Suzhou 2011 September 73 Chongqing 2012 December 149 Zibo 2015 September 152 Tianjin (partial) 2016 December 338 Total 1,284 Note: Data as of FY2020 *GFA in tho
Slide 33: SM Residences
SM Residences Style Residences A leading residential developer of high-rise buildings, mid-rise buildings and single-detached house and lots Extensive amenities and SM Retail facilities Over 150,000 units launched to date National housing backlog of over 5 million homes Projects Overview FY
Slide 34: SM Residences: Affordable Modern Condo Living
SM Residences: Affordable Modern Condo Living SMIC Investor Presentation 33
Slide 35: SM Hotels and Convention Centers
SM Hotels and Convention Centers Growing tourism opportunity Mall of Asia Arena SM Hotels’ planned expansions will complement existing Mall, Commercial and Residential developments Iloilo SM North Edsa, Metro Manila San Fernando, Pampanga SM Seaside City, Cebu Conrad Manila SMX Conventio
Slide 36: SM Hotels and Convention Centers
SM Hotels and Convention Centers Conrad Manila Lobby Hotel Opened Rooms Taal Vista, Tagaytay 2003 261 Radisson Blu, Cebu 2010 400 Pico Sands, Hamilo Coast 2011 154 Park Inn, Davao 2013 204 Park Inn, Clark 2015 155 Conrad Manila, Pasay 2016 348 Park Inn, Iloilo 2019 200 Park Inn, North EDSA 2019 239
Slide 37: SM Commercial Properties
SM Commercial Properties Location GFA (sqm) ThreeE-Com Center Clark in Pampanga 67,000 Las Piñas City 27,000 Makati City 39,100 Pasay City 435,700 Quezon City 41,200 Sta. Rosa in Laguna 23,300 Taguig City 52,800 Taytay in Rizal 11,500 Total Leasable Area 697,600 NU Tower FourE-Com Center (2020) SMIC
Slide 38: Pico de Loro Development, Batangas
Pico de Loro Development, Batangas 90 minutes from the Mall of Asia Complex Sprawling seaside sanctuary flanked by the sea on the West, mountain ranges in the East, with thirteen coves, three of which are Marine Protected Areas SMIC Investor Presentation 37
Slide 39: SM Equity Investments
SM Equity Investments Investments in ventures to capture the high growth of the emerging Philippine economy Logistics Gaming & Leisure Quality Investments: Growth Sectors Market Leaders Food Manufacturing Natural Resources Synergies Attractive Returns and Cash Flows SM Partnership: Dormitori
Slide 40: Belle Corporation
Belle Corporation Belle Corporation is a developer of premium tourism and leisure destinations City of Dreams Manila • Award-winning integrated resort operated by partner, Melco • Total gross floor area: 300,100 sqm • Gaming floor area: 20,268 sqm • Approximately 2,300 slot machines, 1,200 electroni
Slide 41: Atlas Consolidated Mining
Atlas Consolidated Mining Atlas Mining is one of the largest copper concentrate producers in the Philippines • Copper mine with 22 years mine life • Over 408m tonnes of proven and probable reserves • 2020 operating results Production Daily milling average (dmt per day) 50,196 Ore grade 0.304% Copper
Slide 42: Neo Buildings
Neo Buildings The Neo Buildings consist of 7 commercial buildings located within the largest and only PEZA certified IT park in Bonifacio Global City, Metro Manila One Neo (95%) Two Neo (95%) Three Neo (95%) Buildings GFA (sqm) One Neo 14,358 Two Neo 18,687 Three Neo 20,000 Four Neo 38,767 Five Neo
Slide 43: 2GO Group
2GO Group 2GO is the largest end-to-end logistics solutions provider in the Philippines Experienced and established in the Philippine Shipping and Logistics sector Manages warehousing and inventory requirements of several multinational companies Local partner of FedEx in the Philippines Truste
Slide 44: MyTown
MyTown MyTown is a leading developer and operator of purpose-built co-living communities providing housing solutions for young urban professionals and corporations • Pioneered the concept of urban dormitories as communities with amenities • Scalable solution to metro traffic and lack of affordable h
Slide 45: Goldilocks
Goldilocks Goldilocks is a leading Filipino bakeshop heritage brand trusted by Filipino consumers for over 50 years • Opened its first store in 1966 • Extensive retail footprint of over 800 stores in the Philippines • With overseas operations in the US, Canada and Thailand • Concurrently owns & oper
Slide 46: GrabPay
GrabPay SM’s joint venture with GrabPay will focus on electronic wallet and payment development in the Philippines, building out our digital capabilities and supporting financial inclusion • Universal acceptance of GrabPay Large user base wallet at malls, stores and banks across the country Robust a
Slide 47: SM Group CAPEX
SM Group CAPEX 2020 CAPEX PHP bn Allocation/Projects Retail 5 New stores / Renovations Banks 9 – 12 Branch expansion, IT enhancements Property* 47 Integrated Lifestyle Developments Malls ~43% New SM malls and expansions in Philippines Residential ~39% High-rise, mid-rise projects, and Leisure Homes
Slide 48: Financials
Financials SMIC Investor Presentation 47
Slide 49: Financials: SMIC
Financials: SMIC Revenue Contribution FY 2020 Consolidated Results In PHP Billion 4% Particulars FY 2020 FY 2019 % Chg FY 2018 FY 2017 FY2016 Revenue 394.2 502.0 -21.5% 449.8 398.0 365.2 20% Net Income to Parent 23.4 44.6 -47.5% 37.1 32.9 31.2 Net Margin (inc-NCI) 8.7% 13.8% - 13.0% 12.9% 13.1% Retu
Slide 50: Financials: SM Prime
Financials: SM Prime FY 2020 Results In PHP Billion Consolidated FY 2020 FY 2019 % Chg FY 2018 Residences FY 2020 FY 2019 % Chg FY 2018 Revenues 81.9 118.3 -31% 104.1 Revenues 46.5 43.7 6% 36.5 Net Income 18.0 38.1 -53% 32.2 Operating Income 19.7 17.0 16% 12.3 Net Margin 22.0% 32.2% - 30.9% EBITDA 1
Slide 51: Financials: BDO
Financials: BDO Financial Highlights (In PHP Bn) FY 2020 FY 2019 % Chg FY 2018 Net Interest Income 133.7 119.9 11.5% 98.3 Other Income 55.2 60.1 -8.2% 49.7 Net Income 1 28.2 44.2 -36.1% 32.7 Assets 3,374.9 3,188.9 5.8% 3,022.2 Deposits 2,610.2 2,485.2 5.0% 2,420.0 Gross Customer Loans 2,263.7 2,208.
Slide 52: Financials: BDO
Financials: BDO Focused quality loan growth Deposit franchise: Highest CASA ratio BDO Industry 4,500 CASA Time Deposits CASA Ratio 100% 4,000 81% 73% 73% 70% 73% 68% 80% 3,500 19% 3,000 2,485 2,610 60% 17% 17% 16% 2,420 PHP Bn 2,500 2,121 40% 1,905 486 11% 2,000 1,664 734 663 18% 577 20% 16% 15% 523
Slide 53: Financials: China Bank
Financials: China Bank Financial Highlights (In PHP Bn) FY 2020 FY 2019 % Chg FY 2018 Net Interest Income 33.8 26.1 29.5% 22.9 Other Income 10.0 8.4 19.0% 5.7 Net Income 1 12.1 10.1 19.8% 8.1 Assets 1,036.0 962.2 7.7% 866.1 Deposits 835.2 775.4 7.7% 722.1 Gross Customer Loans 572.0 577.5 -1.0% 512.9
Slide 54: Financials: China Bank
Financials: China Bank Strong loan growth Strong retail funding base CHIB Industry 1,400 CASA Time Deposits LDR 1,200 73% 75% 71% 71% 71% 70% 80% 25% 1,000 835 19% 776 16% 722 800 635 PHP Bn 14% 13% 542 366 17% 16% 600 439 321 364 13% 292 11% 400 265 212 -1% 469 6% 200 343 401 412 228 276 -1% - -20%
Slide 55: Contact Information and Disclaimer
Contact Information and Disclaimer Investor Relations Office Office Number: +63 2 8857-0100 SM Official Website: Email Address: ir@sminvestments.com Official Facebook Account: www.facebook.com/sminvestments.ir Official Twitter Account: @SM_INVESTMENTS PSE Ticker SM Bloomberg Ticker SM PM Equity Reut