Sm Prime Holdings, Inc. · PSE:SMPH
Sm Prime — Q1 2022 Earnings Presentation
49 slides from Sm Prime's earnings presentation, Jun 1, 2022
Slide 1: Investor Kit 2022
SM Prime Holdings, Inc. Investor Kit 2022 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 II. 1Q2022 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 •
Slide 4: Company Profile
Company Profile Market Capitalization US$18.87bn • 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 PHP989bn the PSE by market capitalization and net income Outstanding Shares 28,879m
Slide 5: 1Q2022 Financial Highlights
1Q2022 Financial Highlights • Consolidated net income of PHP7.42 billion in 1Q2022, up by 15% from PHP6.48 billion in 1Q2021 • Consolidated revenues of PHP23.89 billion in 1Q2022, 15% higher from PHP20.80 of the same period last year. • Revenue Contribution: Residences accounts for 50%, Malls busine
Slide 6: COVID-19 Response
COVID-19 Response 2022 • SM Supermalls continue 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
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
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
Slide 9: Sustainability
Sustainability TASK FORCE on CLIMATE-RELATED FINANCIAL © TCFD| o FTSE4Good
Slide 10: Sustainability Council
Sustainability Council 10
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
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
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
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
Slide 15: At a Glance
At a Glance MALLS RESIDENCES 1Q2022 Operating Highlights 1Q2022 Operating Highlights • Total Revenues is PHP9.91 billion, went up by 35% from PHP7.35 • Total Revenues is PHP12.02 billion in 1Q2022, almost same billion as the previous year • Operating Income is PHP4.72 billion, 52% higher from PHP3.1
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 Residential Offices North EDSA, Quezon City Mall Residential Office Hotel Valenzuela Quezon City Sta. Mesa, Quezon City Mall Residential • SM Prime has ten (10) integrate
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 (2022) Lifestyle Cities in the Provinces Marilao, Bulacan Mall Residential Zambales Pampanga Taytay, Rizal Mall Residential Bulacan Rizal Trece Martires, Cavite Mall Residential Cavite Laguna S
Slide 18: Malls
Malls (As of 1Q2022) Revenue PHP9.91bn Operating Income PHP4.72bn Gross Floor Area 10.2*m sqm Malls 79* in PH & 7 in CH *As of April 2022
Slide 19: Key Business Units: Malls
Key Business Units Malls CHINA PHILIPPINES 79* Malls 7 Malls 8.9*M sqmTotal GFA 1.3M sqm Total GFA 17,715 Tenants 1,853 Tenants Average Daily Average Daily 1.9M Pedestrian Count 0.2M Pedestrian Count 361 Cinema Screens 58 Cinema Screens 117,121 Parking Slots 15,221 Parking Slots SM Prime is the larg
Slide 20: Key Business Units: Philippines Malls
Key Business Units Philippine Population: 110M Philippines Malls LUZON: 41 Malls NCR: 24 Malls • In terms of GFA, Metro Manila malls account VISAYAS: for 43%, Luzon (ex NCR) is 36%, Visayas is 7* Malls 13% and Mindanao is 8% • Average mature mall contracts is 92% in terms of lease awarded. • Account
Slide 21: Key Business Units: Mall Coverage in PH
Key Business Units Mall Coverage in PH Philippine Population: 110M Caloocan (North) Luzon: Valenzuela 51M People (1 Mall) Quezon City (5 Malls) Navotas Malabon Caloocan Marikina (2 Mall) (1 Mall) NCR: ▪ SMPH malls covered almost all of the key 13M People Manila (2 Malls) San Juan cities in Metro Man
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 Yangzhou • 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. SM City Tianjin SM City
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 Mall of Asia (PH5) 20,000 (Opened April 8, 2022) SM City Urdaneta Central 12,000 SM City Tuguegarao 63,000 SM City Sta. Rosa 51,000 SM City Sorsogon 40,000 SM City Cagayan de Oro
Slide 24: Residences
Residences (As of 1Q2022) Revenue PHP12.02bn Operating Income PHP4.58bn Reservation Sales PHP31.12bn Residential Units Launched (since 2003) PHP655bn / 168,023 units
Slide 25: Key Business Units: Primary Homes
Gold Residences, Paranaque Key Business Units City Primary Homes 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 48% of the consolidated revenues • Reservation sales val
Slide 26: Primary Homes Projects Overview
Key Business Units Primary Homes Projects Overview (as of 1Q2022) Ready-for-Occupancy (RFO) 5,436 (Unsold Units) Ongoing Construction (Unsold Units) 23,083 Estimated Inventory Value PHP172.23bn 1Q2022 Reservation Sales (Value) PHP31.12bn 1Q2022 CAPEX PHP4.32bn Landbank (hectares) Metro Manila 88 Out
Slide 27: 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
Slide 28: Residential Coverage
Residential Coverage Caloocan (North) Metro Manila Valenzuela Quezon City Navotas (13 Projects) Malabon Caloocan Marikina Manila (2 Projects) San Juan Mandaluyong Pasig • SMPH fairly covered Metro Manila with high-rise (3 Projects) Makati (2 Projects) condominium projects with majority of its reside
Slide 29: Residential Coverage
Residential Coverage Pampanga Mabalacat (2) Provinces Bulacan Marilao (1) Baliuag (1) Rizal Cainta (1) Pampanga • SM Prime has seventeen (17) Bulacan Cavite Dasmarinas (1) Trece Martires (1) Tagaytay (2) Tagaytay Highlands (13) SMDC residential developments Rizal Laguna Sta. Rosa (3) Cavite Laguna i
Slide 30: Offices
Offices (As of 1Q2022) Revenue PHP1.36bn Operating Income PHP1.03bn Gross Floor Area 0.8m sqm Office Buildings 12 SMPH Investor Kits 2022
Slide 31: Key Business Units: Offices
FiveE- Com Key Business Units Center Offices FourE- Com Center • Have 12 office buildings with a combined GFA of almost 800,000 sqm • Four of these 12 offices are located in the Mall of Asia Complex in Pasay City, which provide a combined GFA of 470,000 sqm ThreeE- Com • Have an available landbank o
Slide 32: Hotels & Convention Centers
Hotels & Convention Centers (As of 1Q2022) Revenue PHP0.65bn Operating Loss PHP0.32bn Hotels 9 Convention Centers & Trade Halls 7 SMPH Investor Kits 2022
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; 5 Convention Centers, and 2 Trade Halls with approximately 38,000 sqm Pico of leasable space as of 1Q2022. Sands • Conrad Manila and SMX Manila are both located in Hotel Mall of
Slide 34: Key Strategies
Key Strategies (As of 1Q2022) Landbank 2,007ha 2022 CAPEX PHP80bn Net Debt To Equity 45:55
Slide 35: Landbank
Landbank Area by Region (in hectares) Area Metro No. of Sites (in hectares) % of Total Manila Provincial 44 236 12% 19 217 Malls Primary 93 1,164 58% 88 1,076 • SM Prime’s landbank is good for Homes the next 5 to 7 years, located in emerging progressive cities across Leisure 5 536 27% - 536 the coun
Slide 36: CAPEX Program
CAPEX Program 100% 8% 6% 14% 8% 90% 17% 17% 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% 40% strategic landbanking activities with due consideration to the challenges brought about
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% 45% 7.00 6.47 70% 6.00 60% 4.57 4.61 50% 5.00 4.00 40% 30% 64% 60% 60% 3.00 56% 55% 55% 2.00 20% 1.00 10% 0.00 0% 2017 2018 2019 2020 2021 1Q2022 2017 201
Slide 38: Financial Highlights
F i n ancial H i g h ligh ts (As of 1Q2022) Consolidated Net Income PHP7.42bn Consolidated Revenue PHP23.89bn Consolidated Operating Income PHP10.14bn
Slide 39: Consolidated Financials: Revenue Segment Contribution
Consolidated Financials Revenue Segment Contribution 100% 9% 8% 8% 8% 8% 9% 90% 80% 33% 35% 38% • Residences accounts for 50% of SM Prime’s 70% 56% 50% 58% consolidated revenues. 60% 50% • Malls accounts for 41%. 40% • Other Business Segments cover the rest. 30% 58% 57% 54% 20% 36% 41% 34% 10% 0% 20
Slide 40: Consolidated Financials: Net Income Segment Contribution
Consolidated Financials Net Income Segment Contribution 100% 7% 5% 10% 9% 11% 10% 90% 80% 25% 29% 33% 70% 45% 60% 70% • Residences and Malls contributed the most 50% 77% among key business units. 40% 65% 62% 30% 60% 45% 20% 25% 10% 12% 0% 2017 2018 2019 2020 2021 1Q2022 Malls Residences Other Busine
Slide 41: Consolidated Financials
Consolidated Financials (In PHP Billion) 1Q2022 1Q2021 % Chg Revenue 23.89 20.80 15% • Net income went up by 15% to PHP7.42bn in 1QY2022 from PHP 6.48bn, while operating EBITDA 12.94 11.31 14% income is 17% higher to PHP10.1bn in from PHP8.7bn. Consolidated revenues increased by 15% to PHP23.9bn fro
Slide 42: Financials: Philippine Malls
Financials Philippine Malls (In PHP Billion) 1Q2022 1Q2021 % Chg Revenues 8.20 5.87 40% • Rental Income is PHP7.6bn, 34% higher from PHP5.6bn in the previous year. - Rent Income 7.57 5.64 34% • Other revenues such as cinema and event ticket - Cinema and Event sales and others surge by 172% to PHP0.6
Slide 43: Financials: China Malls
Financials China Malls (In RMB Billion) 1Q2022 1Q2021 % Chg • SM Prime’s China mall business posted an 1% Revenues 0.205 0.199 3% growth in operating income at RMB0.106bn from RMB0.106bn - Rent Income 0.199 0.193 3% • China malls revenues reported a 3% increase in at RMB0.205 billion in 1Q2022 from
Slide 44: Financials: Residences
Financials Residences (In PHP Billion) 1Q2022 1Q2021 % Chg • Revenues is almost the same at PHP12bn in Revenues 12.02 11.93 1% 1Q2022. • SMDC’s reservation sales registered PHP31.1 billion in the first quarter of 2022. EBITDA 4.61 5.08 -9% Operating Income 4.58 5.05 -9% 44
Slide 45: Financials: Other Businesses
Financials Other Businesses (In PHP Billion) 1Q2022 1Q2021 % Chg • Commercial Properties Group and Hotels and Convention Centers revenues cover 9% of the overall consolidated revenues. Revenues 2.02 1.55 30% • The Company’s office business segment recorded PHP1.4 billion, 11% higher from the first q
Slide 46: Consolidated Balance Sheets
Consolidated Balance Sheets (In PHP Million (except % data) 1Q2022 % to Assets 2021 % to Assets Assets Cash and cash equivalents 53,422 6% 39,776 5% Equity instruments at fair value through other comprehensive income 18,968 2% 17,947 2% Receivables & Contract Assets 70,465 9% 73,020 8% Investment Pr
Slide 47: Cash Flow
Cash Flow (In PHP Million (except % data) 1Q2022 2021 2020 2019 2018 2017 Cash Flows from Operating Activities Operating Income before Working Capital Changes 13,414 39,455 65,791 56,592 48,058 37,678 Net Cash provided by operations 8,051 17,190 51,728 45,964 45,777 31,491 Net Cash provided by (used
Slide 48: 2021 Integrated Report
SMPRIME SMPRIME 2021 Integrated Report Together, We Rise 2021 Integrated Report @
Slide 49: Investor Kit 2022
SM Prime Holdings, Inc. Investor Kit 2022 This presentation is available online through www.smprime.com