SM Investments Corporation · PSE:SM
SM Investments — Investor Presentation (March 2015)
74 slides from SM Investments's investor presentation, March 2015
Slide 1: Investor Presentation
Investor Presentation March 2015 www.sminvestments.com
Slide 2: Table of Contents
Table of Contents Key Recent Events p.3 The Philippine Economy p.4 About SM Investments p.5 Retail Operations p.15 Banking p.22 Property p.33 Mall Operations p.39 Residential p.51 Lifestyle Cities p.55 Commercial p.58 Leisure & Tourism p.60 Landbank p.64 Portfolio Investments p.66 Corporate Social R
Slide 3: Key Recent Events
Key Recent Events Retail Banking Property Portfolio • Opened 42 stores in • SMIC sold 2% stake • Formed Ortigas Investments FY 2014 in BDO to Kazanah Holdings JV with • Opening of City of • H&M opened in Q2 • BDO acquired One Ayala Land and Dreams • Crate & Barrel Network Bank Ortigas Family • CityM
Slide 4: Strong Philippine Economic Fundamentals
Strong Philippine Economic Fundamentals Strong GDP growth Opportunities 6.1% in 2014 Jobs creation, entrepreneurship Low cost of business Infrastructure 2.4% inflation (Jan 2015) Energy, transport, water Ave. bank lending rate of 5.6% (Jan 2015) Housing backlog Strong Peso Exports and ma
Slide 5: About SM Investments
About SM Investments SM is a strong proxy for the continuing breakout of the Philippines Direct beneficiary of rising GDP and increased consumer spending Large cap and diversified market play Continued strong financial performance and healthy balance sheet SM has a strong business model and excellen
Slide 6: Our Investments
OUR INVESTMENTS Core Investments Portfolio Investments Retail Banking Property 28% BELLE CORP 100% 45% 20% 50% 29% CHINA ATLAS CONSOLIDATED SM RETAIL INC. BANCO BANKING SM PRIME HOLDINGS, INC. MINING DE ORO CORP. 90% NET GROUP SM SM SM SAVE MALLS RESI- COM- HOTELS LEISURE STORES* SUPER HYPER MORE DE
Slide 7: SM Investments Board of Directors
SM Investments Board of Directors From left to right: STEPHEN C. CU-UNJIENG Adviser to the Board HARLEY T. SY Director and President HANS T. SY Adviser to the Board JOSE T. SIO Director, Executive Vice President and VICENTE S. PEREZ, JR. Independent Director Chief Finance Officer HENRY T. SY, JR. Vi
Slide 8: Strong Leadership
Strong Leadership Retail Banking Property Non Food Stores BDO SM Prime Teresita Harley Teresita Henry Jr. Hans Elizabeth Food Stores Chinabank Herbert Hans 8 Investor Presentation
Slide 9: SM Group Companies' Rankings
SM Group Companies’ Rankings Philippine Philippine Philippine Property Philippine Banks Retailers Developers Conglomerates Total Resources ($bn) Total Sales ($mn) Market Cap ($bn) Market Cap ($bn) BDO 42.4 SM Retail 3,033 SM Prime 11.0 SMIC 14.5 Metrobank 36.0 Puregold 1,330 Ayala Land 10.7 PLDT 14.
Slide 10: Profitability
Profitability (In PHP billion) Q4 2014 % Chg FY 2014 % Chg Consolidated Revenues 82.5 11.7% 275.7 8.9% Recurring Net Income 7.6 5.6% 25.4 14.4% Net Income 10.2 15.1% 28.4 3.5% Net Margin 12.4% -- 10.3% -- 10 Investor Presentation
Slide 11: SMIC Core Businesses
SMIC Core Businesses FY 2014 Consolidated Results* REVENUES NET INCOME PHP275.7bn PHP28.4bn +8.9% YoY 3.5% YoY 4% 23% 41% 38% 73% 21% Property Retail Banking Note: *Banking business not consolidated 11 Investor Presentation
Slide 12: Yield
Yield DIVIDENDS NET MARGIN 10.0 1.6% 12.0% 1.5% 9.0 1.3% 1.3% 1.4% 11.0% 11.0% 10.8% 8.0 10.6% 1.1% 1.2% 10.3% 7.0 1.0% 10.0% 1.0% PHP bn 6.0 5.0 0.8% 9.0% 4.0 0.6% 3.0 8.0% 0.4% 2.0 0.2% 7.0% 1.0 0.0 0.0% 2010 2011 2012 2013 2014 6.0% Dividends Paid 4.8 5.5 6.4 7.4 8.2 2011 2012 2013 2014 Dividend
Slide 13: Financial Strength and Returns
Financial Strength and Returns TOTAL CAPITAL RETURN ON EQUITY 600.0 1.2 15.0% 14.3% 500.0 1 14.2% 14.0% 400.0 0.8 PHP bn 13.0% 300.0 0.6 13.0% 200.0 0.4 12.0% 12.0% 100.0 0.2 0.0 0 11.0% 2011 2012 2013 2014 Cash & NCE 100.8 126.6 111.2 128.1 Net Debt 61.33 93.61 126.5 133.6 Equity 157.7 188.1 219.4
Slide 14: SMIC Parent Debt
SMIC Parent Debt Average Debt Tenure: 5.3 Years Average Cost of Debt: 5.57% Peso/Foreign: 46 : 54 Recent Bond Offerings Issued Amount Currency Due Date Coupon Jun 10, 2014 USD350 million US Dollar Jun 2024 4.875% May 19, 2014 PHP15 billion Philippine Peso May 2021/May 2024 5.2958%/5.6125% Oct 17, 20
Slide 15: Retail
Retail (In PHP billion) Q4 2014 % Chg FY 2014 % Chg Sales 60.7 8.4% 197.1 9.0% Operating Income 3.0 2.0% 8.5 6.0% Net Income 2.1 0.4% 5.9 3.3% Net Income Margin 3.4% -- 3.0% -- 15 Investor Presentation
Slide 16: Store Statistics
Store Statistics Gross Ave. Gross Business Strategy Stores as of Store Format Selling Area Selling Area Non-Food Retail Dec 2014 (in sqm) (in sqm) • Provincial expansion SM Store 50 665,521 13,310 • Enhanced store layouts SM Supermarkets 40 294,723 7,368 • New brand introductions Savemore 113 353,74
Slide 17: SM Retail Philippines
SM Retail Philippines Number Gross % of Total Luzon Population Area of Retail Selling Area Gross Selling 41.6 million Stores (sqm) Area NCR 100 781,745 45% NCR Population 11.9 million Luzon 125 684,969 39% Visayas 29 175,816 10% Visayas Population 20.2 million Mindanao 15 104,358 6% Mindanao Total 2
Slide 18: Retail Operations
Retail Operations REVENUES NET INCOME 250.0 16.0% 8.0 40.0% 13.8% 12.0% 7.5 9.3% 9.0% 200.0 20.0% 8.0% 10.4% 7.0 7.2% 4.5% 4.0% 3.3% 6.5 Php Bn 150.0 0.0% PHP bn 0.0% 6.0 -4.0% -12.2% 100.0 -20.0% 5.5 -8.0% 5.0 -12.0% 50.0 -40.0% -16.0% 4.5 0.0 -20.0% 4.0 -60.0% 2011 2012 2013 2014 2011 2012 2013 20
Slide 19: Non-Food Retail Strategy
Non-Food Retail Strategy We aim to maintain leadership in growing the Philippines organized retail market, through broad range marketing, merchandising and synergy with SM malls Further broaden customer base to cover ABC income levels in rural and urban areas through the SM mall footprint as its anc
Slide 20: Food Retail Strategy
Food Retail Strategy We aim to maintain leadership in growing the Philippines organized retail market, using multiple formats to grow Broad customer base reflects growing market opportunity – ABC income levels in rural and urban areas and all regions, reflecting large market opportunity as the organ
Slide 21: Alfamart
Alfamart Alfamart Philippines JV with Alfamart Indonesia First mover in the minimart space Different to convenience store format • Supermarket pricing • Ready-to-cook vs. Ready-to-eat • Value-added services Currently in the testing phase with 30 branches in provincial areas south of Metro Ma
Slide 22: BDO Unibank
BDO Unibank (In PHP billion) Q4 2014 % Chg FY 2014 % Chg Net Interest Income 13.7 12.3% 51.2 18.7% Non Interest Income 7.7 28.3% 29.5 -7.4% Net Income 6.1 38.6% 22.8 0.9% 22 Investor Presentation
Slide 23: BDO Unibank
BDO Unibank FY ’14 FY ’13 % Business Strategy Financial Highlights (PHP bn) (PHP bn) Change Diversified and sustainable earning stream Assets 1,863.6 1,672.8 11.4% • Client acquisition through branch Deposits 1,492.3 1,345.3 10.9% expansion • Drive provincial lending and Gross Customer Loans 1,089.4
Slide 24: BDO Unibank – Revenue Growth
BDO Unibank – Revenue Growth Net Interest Income Fee Income 60 20.0 20% 18% 18.0 18% 16% 50 15% 51.2 16.0 16% 14.0 14% 40 43.2 12.0 12% 36.1 34.2 10.0 10% 33.6 30 10% 8.0 9% 8% 6.0 6% 20 4.0 4% 10 2.0 2% 10.4 12.3 13.4 15.5 18.0 - 0% 2010 2011 2012 2013 2014 0 2010 2011 2012 2013 2014 Fee Income Gro
Slide 25: BDO Unibank – Cost Management
BDO Unibank – Cost Management Operating Expenses Cost to Income Ratio 60.0 12.2% 68.0% 10.3% 66.9% 9.4% 8.4% 66.0% 65.6% 50.0 65.2% *63.4% 2.9% 64.0% 40.0 PHP bn 62.0% 30.0 Extraordinary 60.1% 48.5 gains 60.0% 43.3 20.0 39.5 34.8 35.8 58.0% 10.0 57.7% 56.0% 0.0 2010 2011 2012 2013 2014 54.0% Operati
Slide 26: BDO Unibank – Loan and Deposit Growth
BDO Unibank – Loan and Deposit Growth Loan Growth Deposit Growth 30% 1,600 50% 44% 45% 1,400 25% 24% 40% 1,200 533 19% 20% 35% 20% 588 1,000 16% 30% 15% 19% 15% 17% 800 25% 16% 339 15% 328 311 20% 600 10% 13% 15% 9% 400 10% 11% 10% 5% 200 9% 5% 472 531 592 757 959 0% - 0% 2010 2011 2012 2013 2014 20
Slide 27: BDO Unibank – Improving Performance
BDO Unibank – Improving Performance Return on Common Equity Asset Quality 30 16.0% 30.0 4.7% 14.3% 26.7 26.8 13.6% 25.2 14.0% 25.0 25 25.0 24.4 12.4% 24.0 23.0 11.9% 12.0% 12.0% 21.3 10.4% 20 20.0 10.0% 3.4% PHP bn 2.8% 14.8 15 8.0% 15.0 14.2 22.6 22.8 6.0% 10 10.0 1.6% 14.5 4.0% 1.3% 5 10.8 5.0 8.8
Slide 28: China Bank
China Bank (In PHP billion) Q4 2014 % Chg FY 2014 % Chg Net Interest Income 3.7 30.0% 14.1 41.8% Non Interest Income 1.7 121.1% 4.8 -7.8% Net Income 1.8 49.0% 5.1 0.2% Operating income (excluding trading gains) grew 36% 28 Investor Presentation
Slide 29: China Bank
China Bank FY ’14 FY ’13 % Business Strategy Financial Highlights (PHP bn) (PHP bn) Change Integration of Plantersbank into China Bank Family Assets 470.9 413.7 13.8% Deposits* 399.3 354.3 12.7% Sustain loans growth Gross Customer Loans** 299.0 227.7 31.4% Net Interest Margin 3.3% 3.0% -- Continue d
Slide 30: China Bank – Market Position
China Bank – Market Position Total Resources 12,000 10,000 8,000 PHP bn 6,000 4,000 2,000 0 2007 2008 2009 2010 2011 2012 2013 2014 Industry 4,814 5,360 5,858 6,563 7,027 7,754 9,691 10,889 China Bank 175 207 232 257 263 322 412 471 China Bank Market Share 3.6% 3.9% 4.0% 3.9% 3.7% 4.2% 4.2% 4.3% Ran
Slide 31: China Bank – Total Resources Growth
China Bank – Total Resources Growth Total Resources (Growth Rate) 35% 30% 25% 20% % Growth 15% 10% 5% 0% -5% 2008 2009 2010 2011 2012 2013 2014 Industry Growth Rate 11.4% 9.3% 12.0% 7.1% 10.4% 25.0% 12.4% China Bank Growth Rate 18.5% 12.1% 10.4% 2.5% 22.4% 27.8% 14.4% Source: BusinessWorld Banking R
Slide 32: Property Group
Property Group (In PHP billion) Q4 2014 % Chg FY 2014 % Chg Revenues 18.4 16.3% 66.2 10.8% Operating Income 7.6 17.3% 27.7 14.7% Net Income 4.9 16.4% 18.4 13.0% Net Margin 26.8% -- 27.8% -- 3232 Investor Presentation
Slide 33: SM Prime Holdings, Inc.
SM Prime Holdings, Inc. FY 2014 Consolidated Results REVENUES NET INCOME PHP66.2bn PHP18.4bn +10.8% YoY +13.0% YoY 2% 1% 3% 1% 4% 4% 25% 32% 59% 69% Malls Residential Commercial Hotels & Conventions Leisure 33 Investor Presentation
Slide 34: SM Prime Holdings, Inc.
SM Prime Holdings, Inc. Most defensive and least cyclical among Philippine property conglomerates 9M 2014 SMPH ALI RLC2/ MEG Total Revenue (in PHP bn) 47.80 100% 68.32 100% 13.07 100% 28.643/ 100% Rental Revenue 30.37 64% 15.38 23% 7.16 55% 5.20 18% Others 17.43 36% 52.94 77% 5.91 45% 23.44 82% Tota
Slide 35: SM Prime Holdings, Inc.
SM Prime Holdings, Inc. Net Gearing Ratio 2015 Capex PHP73.3bn 100 1% 2% Malls 31% 32% 6% 80 Residential 60 30% Commercial 40 51% 69% 68% Hotels & 20 Conventions 0 Leisure 2014 2013 Net Debt Equity 35 Investor Presentation
Slide 36: SM Prime's Roadmap
SM Prime’s Roadmap Doubling revenues and profits by 2018 Hotels & Malls Residential Commercial Convention Centers GFA: 10.96 Million sqm Launched Units: 142,128 GFA: 0.46 Million sqm Rooms: 2,187 2018 No of Malls: 85 Projects: 57 No of Towers: 7 Projects: 10 (74 Phil + 11 China) +57% +116% +207% +11
Slide 37: Key Strategies
Key Strategies Increase acquisition of large-scale strategic landbank and develop Offer wide range of products in the 1 more lifestyle cities 4 residential segment Leverage on world-class malls to Continue the aggressive rollout of 2 anchor lifestyle city strategy 5 BPO office development Maintain s
Slide 38: Mall Operations - Consolidated
Mall Operations - Consolidated (In PHP billion) Q4 2014 % Chg FY 2014 % Chg Revenues 10.4 7.9% 38.7 12.3% Operating Income 5.7 17.8% 21.0 14.3% EBITDA 6.9 13.4% 25.5 12.2% EBITDA margin 66.2% -- 65.8% -- Net Income 3.2 9.1% 12.9 10.6% Net margin 30.9% -- 33.2% -- 38 Investor Presentation
Slide 39: SM Malls Trivia
SM Malls Trivia 15,314 52,369 50 5 1,388 6,793 3.0 6.5 0.2 0.8 126,154 6,456 39 39 Investor Presentation
Slide 40: Mall Operations
Mall Operations REVENUES NET INCOME 50,000 20.0% 16,000 20.0% 15.3% 14.6% 14.1% 13.4% 12.3% 12.6% 11.8% 40,000 10.6% 10.0% 12,000 10.0% 30,000 PHP mn PHP mn 0.0% 8,000 0.0% 20,000 -10.0% 4,000 -10.0% 10,000 0 -20.0% 0 -20.0% 2011 2012 2013 2014 2011 2012 2013 2014 CHINA 2,047 2,636 3,121 3,613 CHINA
Slide 41: SM Malls Philippines
SM Malls Philippines Luzon Number GFA % of Total Population Area of Malls (sqm) GFA 41.6 million NCR 18 3,265,325 50% NCR Population 11.9 million Luzon 24 2,119,630 33% Visayas 4 616,997 10% Visayas Population 20.2 million Mindanao 4 485,229 7% Mindanao Total 50 6,487,181 100% Population 23.7 millio
Slide 42: SM Malls Philippines
SM Malls Philippines Largest shopping mall Q4 % FY % developer and operator in the (In PHP billion) 2014 Chg 2014 Chg Philippines with 50 Malls Revenues 9.5 8.9% 35.1 11.9% Strong synergies with SM Retail business Income from 5.2 11.5% 19.3 11.2% Operations Anchor for Lifestyle City EBITDA 6.5 24.7%
Slide 43: 2014 Marks SM Prime's 50th Philippine Mall
2014 Marks SM Prime’s 50th Philippine Mall SM Angono Opening Date: Nov 2014 Gross Floor Area: 41,481 sqm SM Malls in Rizal: SM Taytay, SM Masinag SM Malls Metro Manila GFA (sqm) Marikina 178,485 Molino 52,061 San Fernando 43,130 North EDSA 482,959 Las Piñas 39,788 Sta. Rosa 86,463 Cauayan 70,614 Sta
Slide 44: 2015 Expansion Program: Philippines
2015 Expansion Program: Philippines Opening GFA (sqm) 1H 2015 SM Sangandaan 35,319 2H 2015 SM SRP Cebu 460,791 2H 2015 SM San Mateo 80,043 2H 2015 SM Cabanatuan 154,020 Expanding 1H 2015 SM Iloilo 50,849 1H 2015 SM Lipa 28,212 Total 809,234 Projection Total Malls 54 End 2015 7.2 mn sqm Total GFA (+1
Slide 45: SM Seaside City
SM Seaside City Area Details Location: South Road Properties, Cebu Gross Floor Area: 460,791 sqm Mall Features 18-lane Bowling Center Ice Skating Rink 5-theater Cineplex IMAX Theater 4 Amphitheaters Roof garden Observatory Tower Schedule of opening: 2H 2015 45 Investor Presentation
Slide 46: SM China Malls
SM China Malls Existing Address Yr/Month Opened GFA (sqm) SM Xiamen Xiamen City, Fujian Province 2001 December 128,203 Xiamen Lifestyle Center Xiamen City, Fujian Province 2009 October 109,922 Jinjiang Quanzhou City, Fujian Province 2005 November 167,830 Chengdu Chengdu City, Sichuan Province 2006 O
Slide 47: SM Malls China
SM Malls China SM Prime’s emerging business Q4 % FY % in China translates to strong (In PHP million) 2014 Chg 2014 Chg growth both in revenues and net income Revenues 941 -0.9% 3,613 15.8% SM Prime plans to open one Income from mall per year in second and Operations 497 184.3% 1,699 67.0% third tier
Slide 48: 2015 & 2016 Expansion Program: China
2015 & 2016 Expansion Program: China Opening GFA (sqm) 2015 Zibo 154,913 2016 Tianjin 540,000 Total GFA 694,913 Projection SM Zibo End 2016 Total Malls 7 1.5 mn Total GFA (+57%) SM Tianjin 48 Investor Presentation
Slide 49: SM Prime's Mall Expansion in 2015
SM Prime’s Mall Expansion in 2015 No. of No. of GFA Added GFA Location Malls Malls (sqm) GFA (sqm) % Chg end 2014 end 2015 end 2014 (sqm) end 2015 Philippines 50 54 6,487,181 809,234 7,296,415 12.5% SM Sangadaan 35,319 SM SRP Cebu 460,791 SM San Mateo 80,043 SM Cabanatuan 154,020 SM Iloilo Expansion
Slide 50: Residential - SMDC
Residential - SMDC (In PHP billion) Q4 2014 % Chg FY 2014 % Chg Revenues 6.0 30.5% 20.8 4.7% Operating Income 1.6 21.1% 5.3 10.4% EBITDA 1.8 7.0% 6.1 4.5% EBITDA margin 30.8% -- 29.4% -- Net Income 1.6 65.5% 4.7 11.2% Net margin 26.3% -- 22.6% -- 50 Investor Presentation
Slide 51: Projects and Landbank Profile
Projects and Landbank Profile Projects Overview Projects Overview Total Units Available since 2005 69,414 Batangas 80.5 Units Sold 57,057 Pampanga 28.3 Units Sold (%) 82% Davao 6.2 Projects Launched (units) in 2014 5,215 Rizal 5.5 Reservation Sales for 2014 P35.9 bn Outside Metro Manila 120.5 Quezon
Slide 52: Typical Unit Layout – Shore Residences
Typical Unit Layout – Shore Residences One Bedroom Unit with Balcony Approx. 27.67 to 29.53 sqm 52 Investor Presentation
Slide 53: Typical Unit Layout – Shore Residences
Typical Unit Layout – Shore Residences Two Bedroom Unit with Balcony Approx. 58.46sqm 53 Investor Presentation
Slide 54: Lifestyle Cities
Lifestyle Cities New operating segment created post-merger Focus will be to build on the success of the 60-hectare MOA complex and roll-out more large-scale master-planned mixed-use developments throughout the country Enlarged SM Prime will access more land suitable for similar developments 54 Inves
Slide 55: Mall of Asia Complex
Mall of Asia Complex Mall of Asia Sea Residences 60 hectares of reclaimed land Arena fronting Manila Bay SMX Convention Shell Residences Center Emerging commercial Shore Residences and entertainment hub Mall of Asia Existing structures: Five E-com Center Mall of Asia Four E-com SMX Convention Ce
Slide 56: SM Seaside Lifestyle Complex
SM Seaside Lifestyle Complex Office and 30 hectares mixed use development Residential Block School and on reclaimed land in Cebu Hospital Site of Cebu’s largest mall and the fourth largest SM mall in the country with a GFA of 460,791 sqm Integrated development SMX Mall Mall High-rise residential
Slide 57: Commercial
Commercial Commercial (In PHP billion) Q4 2014 % Chg FY 2014 % Chg Revenues 0.8 -20.4% 2.9 -7.0% Operating Income 0.3 2.8% 1.1 8.2% EBITDA 0.4 6.7% 1.7 2.5% EBITDA margin 52.9% -- 57.7% -- Net Income 0.2 9.7% 0.8 5.8% Net margin 24.4% -- 27.9% -- 57 Investor Presentation
Slide 58: Office Building Portfolio
Office Building Portfolio SM Cyber Baguio OneE-com Center Harrison Rd. Baguio City MOA Complex Year completed: 2008 Pasay City GFA: 13,285 sqm Year completed: 2008 GFA: 100,035 sqm SM Cyber Makati One TwoE-com Center Sen. Gil Puyat Ave., MOA Complex Makati City Pasay City Year completed: 2008 Year c
Slide 59: Leisure & Tourism
Leisure & Tourism Four operating hotels with a total of 1,013 rooms 347-room, 5-star Conrad Hotel under construction at the Mall of Asia Complex 36,137 sqm of convention and exhibition space 40-hectare Pico de Loro project is Phase 1 of the Hamilo Coast project, a premier, sustainable leisure destin
Slide 60: SM Hotels
SM Hotels Taal Vista Hotel Location Rooms Taal Vista Tagaytay 261 Radisson Blu Cebu 396 Radisson Blu Pico Sands Hamilo Coast 154 Cebu Park Inn Davao 202 Pico Sands Conrad Hotel (Under Pasay 347 Construction) Park Inn (Under Clark 154 Construction) Total 1,514 Park Inn Davao 60 Investor Presentation
Slide 61: SM Hotels: Pico de Loro
SM Hotels: Pico de Loro Partnering with 61 Investor Presentation
Slide 62: Convention & Exhibition Halls, SM Arena
Convention & Exhibition Halls, SM Arena Leasable Venue Location Space (sqm) Mall of Asia SMX Manila 17,326 Complex SM Lanang SMX Davao 5,196 Premier SMX Taguig SM Aura 3,136 SMX Bacolod Bacolod 4,198 Megatrade Hall Megamall 4,216 Cebu Trade Hall Cebu 2,065 Total 36,137 Number Venue Location of Seats
Slide 63: SM Group Landbank
SM Group Landbank Companies Landbank (sqm) SM Prime 10,116,840 Malls 2,397,384 Residential 1,744,749 Commercial 376,876 Leisure 5,597,831 SMIC 57,801,502 Total 67,918,342 63 63 Investor Presentation
Slide 64: Landbank: Batangas Property
Landbank: Batangas Property Hamilo Coast asset is owned directly by SMIC Coastal 5,780 hectares Zone Inland 1,700 Has Mountain Zone 31 km of 4,200 Has coastline 13 coves Pristine environment 1½ - 2 hours from Manila 64
Slide 65: Portfolio Investments
Portfolio Investments Opportunistic investments that provide high yield and/or growth potential outside of SM’s core businesses, with potential future synergies for the group Participate in Philippine sectors with Strategic partners are operators with proven attractive economics track records Tour
Slide 66: Belle Corporation
Belle Corporation 28% ownership; publicly listed 9M 9M % FY Developer of high-end (In PHP mn) 2014 2013 Change 2013 entertainment and leisure properties Subsidiary, Premium Leisure Corp., holds 1 of 4 gaming licenses in Entertainment Revenues 1,615 2,117 -23.7% 2,624 City complex in Manila Bay Opera
Slide 67: Atlas Consolidated Mining
Atlas Consolidated Mining 29% ownership; publicly listed Copper mine with 20+ years mine life, over 9M 9M % FY (In PHP mn) 2014 2013 Change 2013 400m tonnes of proved and probable reserves at ave. cut-off grade of 0.34% Cu Business turnaround Revenues 12,590 10,977 15% 14,451 Declared dividends fo
Slide 68: Net Buildings in Bonifacio Global City, Taguig
Net Buildings in Bonifacio Global City, Taguig Net Plaza Net Cube Net Square Net One Net Quad Gross Leasable Area 55,661 sqm 20,000 sqm 18,687 sqm 14,358 sqm 38,767 sqm Occupancy Rate 100% 100% 100% 100% 100% 68 Investor Presentation
Slide 69: CityMall
34% ownership of a JV with outstanding local partners Rapid growth plans to develop 10k to 20k sqm strip malls in underserved markets outside Metro Manila SM has right of first refusal on supermarket space in all malls 100 CityMalls by 2020 - target 25 by end 2015 69 Investor Presentation
Slide 70: SM Foundation
SM Foundation Our Advocacies Education Over 1,900 graduates and 1,300 scholars; also donated 196 classrooms Health Over 1,000 medical missions helping over 810,000 people and built 100 wellness centers Livelihood Over 80 farmer training sessions with over 10,000 graduates, forming part of our supply
Slide 71: SM Cares Housing Project
SM Cares Housing Project SM has committed to build 1,000 homes for the survivors of Typhoon Haiyan/Yolanda in 2013 Houses being constructed and donated in Bogo, Iloilo, Tacloban, Ormoc and Samar Disaster-resilient design Community center, playground and basketball court Partnering with NGOs to provi
Slide 72: Corporate Governance
Corporate Governance SM Investments has put in place: Recent Citations Independent Directors on all listed Corporate Governance Asia company Boards Philippine Stock Exchange Governance Team Institute of Corporate Directors Proactive Investor Relations The Asset Magazine Transparent Disclosures Asia
Slide 73: SM Group Capex for 2015
SM Group Capex for 2015 Capex Projects (Pesos bn) Retail 4.7 New stores / Renovations Banks 4.0 Branch expansion, IT enhancements Property 73.3 New SM malls and expansions in Malls 41.6 Philippines and China Residential 22.0 Condominiums and HPI projects Commercial 4.0 ThreeE-com and FiveE-Com Hotel
Slide 74: Contact Details
Contact Details IR Team Corazon Pilar G. Guidote Senior Vice President, Investor Relations Timothy M. Daniels Consultant, Investor Relations Aaron Vincent C. Co Senior Manager, Investor Relations Office Number: +632 857-0100 Email Address: [email protected] SM Official Website: www.sminvestments.