SM Investments Corporation · PSE:SM

SM Investments — H1 2019 Earnings Presentation

8 slides from SM Investments's earnings presentation, Aug 7, 2019

  1. Slide 1: Investor and Analysts' Briefing 1H 2019 Results

    INVESTMENTS CORPORATION Investor and Analysts’ Briefing 1H 2019 Results 07 Aug 2019 \\.. Forbes2018 SS, Forbes20 ae 4 )/ 3000) |

  2. Slide 2: SMIC 1H 2019 Consolidated Results

    SMIC 1H 2019 Consolidated Results • SM Investments continued to deliver strong top and bottom line growth in 1H • Adjusted for impact of PFRS 16 SM Investments 1H 2019 Chg Revenues 233.7 14% w/o Alfamart 227.6 11% Earnings 23.0 27% w/o PFRS 16 23.5 30% Assets* 1,117.1 5% Net D:E 44:56 Figures in PHP

  3. Slide 3: Net Income Mix

    Net Income Mix • Banking continues to be particularly strong YTD 40% 41% 19% Property Retail Banking SMIC 1H 2019 Earnings Briefing 2

  4. Slide 4: BDO

    BDO • BDO benefitted from strong growth in its core business and in normalized non-interest income BDO Banking 1H 2019 Chg Net Income 20.2 53% Net Interest Inc. 56.9 24% Other Income 29.5 29% Loans 2,043.1 7% Deposits 2,399.6 3% NIM 4.0% NPL 1.2% CET 1 12.6% CAR 14.2% Figures in PHP B except percent

  5. Slide 5: Property

    Property • SM Prime delivered consistent revenue and earnings growth, driven by rental income and robust residential sales SM Prime 1H 2019 Chg Revenues 57.0 15% Earnings 19.3 16% Mall Revenue 31.1 8% Same Mall Rental Growth 7.0% - Residential Reservation Sales 41.5 20% Figures in PHP B except perce

  6. Slide 6: Retail

    Retail • Retail revenue continues to be strong • Excluding impact of PFRS 16, net income +10% NIAT w/o SM Retail Revenue Chg NIAT Chg PFRS 16 Total Retail 169.8 13% 5.7 0% 10% SM Store 52.2 7% 1.4 15% 15% Specialty 42.6 15% 2.9 11% 18% Food Group 86.9 16% 1.8 -20% 3% NIAT w/o w/o Alfamart Revenue Ch

  7. Slide 7: Retail Footprint Expansion

    Retail Footprint Expansion • Store expansion on track • GSA increased 9% vs. 1H last year, driven by Specialty and Alfamart • Added fewer large formats SM Retail GSA Chg Stores YTD Total Retail 2,934.6 9% 2,600 +176 SM Store 795.9 2% 63 0 Specialty 626.8 12% 1,548 +66 Food Group 1,511.9 11% 989 +110

  8. Slide 8: Key Messages

    Key Messages • Strong top and bottom line growth in 1H • BDO a significant driver of earnings growth • Property continued good growth, especially in Residential • Retail revenues strong • Retail earnings adjusted for PFRS 16 impact • Footprint growth driven by Specialty and Alfamart • Continued posi

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