SM Investments Corporation · PSE:SM

SM Investments — Q1 2014 Earnings Presentation

13 slides from SM Investments's earnings presentation, May 15, 2014

  1. Slide 1: First Quarter 2014 Investor and Analyst Briefing: Profitability

    5/15/2014 First Quarter 2014 Investor and Analyst Briefing May 2014 Profitability REVENUES NET INCOME 300.0 25.0% 30.0 25.0% 22.8% 20.0% 16.3% 250.0 25.0 15.1% 20.0% 15.0% 11.3% 200.0 20.0 10.0% 14.6% PHP billion PHP billion 15.0% 13.0% 13.1% 5.0% 12.0% 150.0 15.0 0.0% 10.0% From Extraordinary 100.0

  2. Slide 2: Profitability and Financial Resources

    5/15/2014 Profitability NET INCOME PROFILE NET MARGIN 100 14.0% 90 13.1% 13.0% 80 12.0% From 70 Trading 11.0% Gains 60 11.0% 10.8% 10.6% In Percent 10.4%* 10.3% 50 10.0% 40 30 9.0% 20 8.0% 10 7.0% 0 2011 2012 2013 Q1 2013 Q1 2014 Banks 31.2 34.4 43.1 59.4 41.6 6.0% Property 38.5 37.5 35.5 26.0 39.7

  3. Slide 3: Retail Operations and Overall Retail Results

    5/15/2014 Retail Operations Q1 2014 revenues rose 16% to PHP42.2 billion Net income rose 4% to PHP1.2 billion 245 stores nationwide 5 Investor Presentation Overall Retail Results % Q1 2014 Q1 2013 Change Sales (PHP billion) 42.2 36.2 16% Net Income (PHP billion) 1.2 1.2 4% Net Margin 3.0% 3.3% -- Re

  4. Slide 4: Food Retail Strategy

    5/15/2014 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

  5. Slide 5: BDO Unibank Financial Highlights and Business Strategy

    5/15/2014 BDO Unibank Q1 ’14 Q1 ’13 % Business Strategy Financial Highlights (PHP bn) (PHP bn) Change Diversified and sustainable Net Interest Income 12.2 9.6 27% earning stream Non Interest Income 7.0 13.3 -47% • Focused loan growth and branch expansion Net Income 5.5 10.0 -46% • Steady stream of r

  6. Slide 6: SM Prime Holdings, Inc. Q1 2014 Consolidated Results

    5/15/2014 SM Prime Holdings, Inc. Revenues grew 3% to PHP15.35 billion Net income up 11% to PHP4.58 billion SM Prime Holdings, Inc. Q1 2014 Consolidated Results ASSETS REVENUES NET INCOME PHP340.93bn PHP15.35bn PHP4.58bn +1.6% YoY +3% YoY +11% YoY 2% 3% 5% 9% 5% 21% 28% 32% 61% 60% 74% Malls Residen

  7. Slide 7: SM Prime's Roadmap

    5/15/2014 SM Prime Holdings, Inc. Net Gearing Ratio 2014 Capex PHP 70.5BN 100 80 32% 32% 7% 10% Malls 60 40 Residential 68% 68% 55% 20 28% Commercial 0 Hotels and 2013 Q1 2014 Convention Centers Equity Debt 13 Investor Presentation SM Prime’s Roadmap Project Portfolio as at end Dec 2013 Project Port

  8. Slide 8: Mall Operations

    5/15/2014 Mall Operations Revenues grew 17% to PHP9.2 billion Net income increased by 20% to PHP3.4 billion Total of 53 malls with 48 in the Philippines and five in China 2014 Expansion Program: Philippines Opening GFA (sqm) Q2 2014 SM Cauayan 94,386 Q3 2014 SM Angono 33,094 Expansion SM Megamall Q1

  9. Slide 9: SM China and Expansion Program

    5/15/2014 SM China SM Prime’s emerging % business in China (In PHP million) Q1 2014 Q1 2013 Change translates to strong growth both in revenues Revenues 918 687 33.6% and net income Operating Expenses 404 310 30.4% SM Prime plans to open one mall per year in Income from 514 377 36.3% second and thir

  10. Slide 10: Residential

    5/15/2014 Residential SMDC Net income of PHP0.9 billion in Q1 2014 from PHP1.4 billion in Q1 2013 for a net margin of 18.8% 16 ongoing residential condominium projects predominantly in Metro Manila Sold close to 3,000 units as of end March 2014 Six projects launched in 2013 Projects and Landbank Pro

  11. Slide 11: Commercial and Group Capex for 2014

    5/15/2014 Commercial One, Two, and FiveE-Com 7 office buildings primarily catering to the burgeoning BPO industry ThreeE-Com Access to enlarged landbank and balance sheet to accelerate growth Available landbank for 7-10 years GFA by end 2014: 299,589 sqm FourE-Com 21 Investor Presentation Group Cape

  12. Slide 12: Our Investments and Key Messages

    5/15/2014 OUR INVESTMENTS Core Investments Portfolio Investments Retail Banking Property 28% BELLE CORP 100% 47% 20% CHINA 52% 29% ATLAS CONSOLIDATED SM RETAIL INC. BANCO BANKING SM PRIME HOLDINGS, INC. MINING DE ORO CORP. 90% NET GROUP 85% 100% 100% 100% 52% 52% 52% 52% 52% SM SM SM SM MALLS RESI-

  13. Slide 13: First Quarter 2014 Investor and Analyst Briefing

    5/15/2014 First Quarter 2014 Investor and Analyst Briefing May 2014 13

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