Malls
INVESTOR KIT 2019
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Malls INVESTOR KIT 2019 This presentation is available online through www.smprime.com Disclaimer This presentation does not constitute a prospectus or other offering memorandum in whole or in part. This presentation does not constitute an offer
Malls
This presentation is available online through www.smprime.com
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 jurisdiction in which such offer, solicitation or sale would be unlawful prior to any qualification under the securities laws of such state or jurisdiction. This presentation has not been and will not be reviewed or approved by any statutory or regulatory authority or any stock exchange in the Philippines or elsewhere. Prospective investors should undertake their own assessment with regard to their investment and they should obtain independent advice on any such investment’s suitability, inherent risks and merits and any tax, legal and accounting implications which it may have for them. This presentation contains statements about future events and expectations that constitute “forward-looking statements.” These forward-looking statements include words or phrases such as the Company or its management “believes”, “expects”, “anticipates”, “intends”, “may”, “plans”, “foresees”, “targets”, “aims” “would”, “could” or
forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Such forward-looking statements are made based on management’s current expectations or beliefs as well as assumptions made by, and information currently available to, management. These forward-looking statements speak only as at the date of this presentation and nothing contained in this presentation is or should be relied upon as a promise or representation as to the future. This presentation and the contents hereof are for the exclusive use of the intended recipient(s). This presentation and the contents hereof should not be (i) forwarded or delivered or transmitted in any manner whatsoever, to any other person other than the intended recipient(s); or (ii) reproduced in any manner whatsoever. Any forwarding, distribution or reproduction of this presentation in whole or in part is unauthorized. This presentation must not be distributed to the press or any media
presentation. Neither the Company nor its advisor, nor any of their respective affiliates, shareholders, directors, employees, agents or advisers makes any expressed or implied representations or warranties as to the accuracy and completeness of the information contained herein or any other information (whether communicated in written or oral form) and each of the foregoing parties expressly disclaims any and all responsibility and liability of any kind (including any contractual, non-contractual, or third party liability) for any loss or damage, whether or not arising from any error or omission in compiling such information or as a result of any party’s reliance or use of such
notice, and no obligation is assumed by the Company nor its advisor, nor any of their respective affiliates, shareholders, directors, employees, agents or advisers to provide the recipient(s) with access to any additional information or to update this presentation or to correct any inaccuracies in it which may become apparent. Investor Kit 2019 2
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PSE Stock Symbol SMPH Market Capitalization PHP1,071bn Outstanding Shares 28,879mn Last Traded Price (June 28, 2019) Php37.10/share Average Daily Turnover (YTD) US$9.40mn
► SM Supermalls ► SM Lifestyle, Inc. ► Family
Entertainment Center Inc.
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► SM Development
Subsidiaries
► Highlands Prime Inc. ► Costa Del Hamilo
Inc.
► Offices and
Warehouses
► Mall of Asia
Complex
► Seaside City Cebu
Complex
► Radisson Blu ► Taal Vista ► Pico Sands ► Park Inn ► Conrad Manila ► SMX Convention
Centers
Hotels and Convention Centers
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0M 2M 4M 6M 8M 10M 2013 2014 2015 2016 2017 2018
China Philippines Malls (GFA in sqm)
0.8M 0.8M 0.9M 1.3M 1.3M 1.3M 6.2M 6.5M 7.3M 7.7M 8.0M 8.2M 7.0M 7.3M 8.2M 9.0M 9.3M 9.5M
CAGR = 5.22%
0K 2K 4K 6K 8K 10K 12K 14K 16K 18K 20K 22K 24K 2013 2014 2015 2016 2017 2018
Residences (Units Sales)
6.0K 8.0K 9.5K 13.5K 16.2K 16.6K
CAGR = 23.23%
0K 100K 200K 300K 400K 500K 600K 700K 2013 2014 2015 2016 2017 2018
Offices (GFA in sqm)
147K 189K 318K 383K 456K 642K
CAGR = 27.85%
0.0K 0.2K 0.4K 0.6K 0.8K 1.0K 1.2K 1.4K 1.6K 1.8K 2013 2014 2015 2016 2017 2018
Hotels (Rooms)
1,015
CAGR = 6.99%
1,075 1,229 1,510 1,510 1,522
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MALLS 1H2019 Operating Highlights
► Total Revenues reached PHP31.07 billion, up by
8%from PHP28.71 billion
► Operating Income grew by 9% to PHP17.28 billion
from PHP15.90 billion
► Total Investment Properties of PHP270.89 billion
1H2019 Operating Highlights
► Total Revenues increased by 26%
to PHP21.43 billion from PHP17.05 billion
► Operating Income went up by 43% to PHP8.10 billion
from PHP5.67 billion
► Total Assets amounted to PHP204.65 billion
RESIDENCES OFFICES HOTELS AND CONVENTION CENTERS 1H2019 Operating Highlights
► Total Revenues increased by 31% to PHP2.18 billion
from PHP1.66 billion
► Operating Income went up by 29% to PHP1.82 billion
from PHP1.41 billion
► Total Investment Properties amounted to PHP40.21
billion 1H2019 Operating Highlights
► Total Revenues is flat at PHP2.45 billion ► Operating Income went down by 9% to PHP525
million from PHP579 million
► Total Investment Properties of PHP11.07 billion
Revenue
Operating Income
Gross Floor Area
Malls
(as of 1H2019)
Malls
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PHILIPPINES
CHINA
Malls Total GFA Tenants Average Daily Pedestrian Count Cinema Screens Parking Slots
Malls
Malls Total GFA Tenants Average Daily Pedestrian Count Cinema Screens Parking Slots
Malls
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Malls
Philippine Population: 101M Luzon: 38 Malls Visayas: 6 Malls Mindanao: 5 Malls NCR: 23 Malls
Malls
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SMPH malls covered almost all of the key cities in Metro Manila and adjoining towns and municipalities, accounting for 42%
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SMPH mall expansion is geared towards the provinces. The focus is to cover most of Northern Luzon, Visayas and the progressive cities in Mindanao.
Caloocan (North) Quezon City (5 Malls)
Valenzuela (1 Mall)
Marikina (1 Mall) Caloocan (1 Mall) Malabon Navotas Manila (2 Malls) San Juan Mandaluyong (2 Malls) Pasig (2 Malls) Pateros Makati Pasay (2 Malls) Parañaque (3 Malls) Las Piñas (2 Malls) Muntinlupa (1 Mall)
Existing Sites Future Sites Untapped Area NCR: 13M People Philippine Population: 101M Luzon: 45M People Visayas: 19M People Mindanao: 24M People
Taguig (1 Mall)
Malls
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SM Xiamen Lifestyle SM City Tianjin SM City Suzhou Investor Kit 2019 12
Malls
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This year, SM Prime’s mall launches will all be in the provinces, and these will add more than 300,000 sqm of GFA.
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Available landbank of almost 200 hectares which is good for over the next 5 to 7 years Name GFA SM Center Dagupan 23,000 SM City Olongapo Central 72,000 SM City Butuan 48,000 SM Mindpro (Zamboanga) 36,000 SM City Baguio (expansion) +32,000 SM City Fairview (expansion) +116,000
Name GFA SM Center Imus 13,000 SM City Urdaneta Central 59,000 SM City Telabastagan 55,000 SM City Legazpi 87,000 SM Center Ormoc 33,000
SM City Olongapo Central SM City Legazpi Investor Kit 2019 13
Malls
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SM Prime is building the first IKEA store in the Philippines, to be launched at the end of 2020.
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This project will occupy 157,000 sqm of GFA in the Mall of Asia Complex in Pasay City.
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IKEA will occupy 65,000 sqm of the GFA to house a two-level shop area, a large warehouse, an e-commerce facility and an integrated call center - making it the world’s largest IKEA store.
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Revenue
Operating Income
Reservation Sales
(as of 1H2019)
(since 2003)
Residences
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Lane Residences Pool Area Red Residences Lobby Park Residences Central Park
Residences
Lush Residences, Makati City
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Residences
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The Estate is a joint venture between SMDC and Federal Land.
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Dubbed as an ultra luxury residential project, The Estate is designed by international architectural firm, Foster + Partners.
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This is located along Ayala Avenue in Makati City. The Estate
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Residences
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SMPH fairly covered Metro Manila with high-rise condominium projects with majority of its residential projects located in the cities of Quezon, Pasay, Paranaque and Makati.
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As of 1H2019, 37 out of the 47 SMDC projects in the country are located in Metro Manila.
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Existing Sites Future Sites Untapped Area
Caloocan (North) Quezon City (12 Projects)
Valenzuela
Marikina Caloocan Malabon Navotas Manila (1 Project) San Juan Mandaluyong (2 Projects) Pasig (1 Project) Pateros Makati (8 Projects) Pasay (7 Projects) Parañaque (4 Projects) Las Piñas (1 Project) Muntinlupa Taguig (1 Project)
Residences
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Freia at Pico de Loro Cove Horizon Terraces Garden Villas Woodlands Point Community at Tagaytay Highlands
Residences
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Horizon Terraces Vireya
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Horizon Terraces is the first integrated development within Tagaytay Highlands featuring a 3.2-hectare Asian contemporary residences comprised 114 units occupying eight buildings of low-rise Garden Suites and Garden Villas.
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Vireya, on the other hand, offers a modern, tropical-themed community located at the heart of Tagaytay Highlands. This developments spread over 20.8 hectares of land and offers exclusive, gated community. This community, which is composed of 301 available lots, is the closest to the Midland Golf Club
Residences
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Freia
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Freia is the latest and most prime beachfront condominium development in Hamilo Coast.
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This contemporary tropical architectural development offers 223 units offering a mix of 2-BR units and 3-BR Penthouses.
Revenue
Operating Income
Gross Floor Area
(as of 1H2019)
Offices
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TwoE-comCenter FiveE-comCenter ThreeE-comCenter
Offices
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SM Prime will launch NU Tower this 3Q with 41,000 sqm of GFA.
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While the three-tower FourE-Com Center will be launched in 2020 with 192,000 sqm of GFA.
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Both are located in Mall of Asia Complex, Pasay City. NU Tower
FourE-Com Center
Revenue
Operating Income
(as of 1H2019)
Hotels & Convention Centers
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Radisson Blu Hotel Pico Sands Hotel Park Inn by Radisson - Davao Park Inn by Radisson - Clark Conrad Manila SMX Convention Center
Hotels & Convention Centers
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Park Inn by Radisson - Iloilo SMX Clark
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Park Inn by Radisson Iloilo, situated right next to SM City Iloilo in Mandurriao, was just launched last 1H2019 offering 200 rooms.
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Park Inn by Radisson North EDSA, which is right next to SM City North EDSA, was launched last July 31, 2019 and offers 239 vibrant rooms. Park Inn by Radisson – North EDSA
Landbank
2019 CAPEX
(as of 1H2019)
Key Strategies
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Key Strategies
Area (in hectares) % of Total Area by Region (in hectares) Metro Manila Provincial
38 185 12% 19 166 94 761 49% 91 669 3 521 34%
14 73 5% 5 68 Total 149 1,539 100% 115 1,424
Malls Primary Homes Commercial Leisure Homes ▶
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Key Strategies
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57% 65% 55% 41% 32% 39% 37% 28% 33% 51% 62% 48% 6% 7% 12% 8% 6% 13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2014A 2015A 2016A 2017A 2018A 2019E
Malls Residences Others
PHP91bn PHP58bn PHP44bn PHP59bn PHP54bn
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PHP80bn
Key Strategies
68% 62% 63% 64% 60% 60% 32% 38% 37% 36% 40% 40%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2014 2015 2016 2017 2018 1H2019
Net debt to Equity**
Equity Debt Net Debt
*Total interest-bearing liabilities
Total equity attributable to equity holders of the parent + Total interest-bearing liabilities
**Total interest-bearing liabilities- cash & cash equivalents
and investment securities Total equity attributable to equity holders of the parent + Total interest-bearing liabilities- cash & cash equivalents and investment securities
61% 58% 58% 57% 55% 55% 39% 42% 42% 43% 45% 45%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2014 2015 2016 2017 2018 1H2019
Debt to Equity*
Equity Debt Debt to Equity
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Consolidated Net Income Consolidated Revenue
Consolidated Operating Income
(as of 1H2019)
Financial Highlights
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61% 62% 61% 58% 57% 55% 34% 32% 32% 33% 35% 38% 5% 6% 7% 9% 8% 7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2014 2015 2016 2017 2018 1H2019 Malls Residences Other Businesses
Financial Highlights
74% 72% 67% 65% 62% 60% 25% 24% 24% 25% 29% 30% 1% 4% 9% 10% 10% 10%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2014 2015 2016 2017 2018 1H2019 Malls Residences Other Businesses
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Financial Highlights
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Financial Highlights
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Financial Highlights
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Financial Highlights
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Financial Highlights
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Financial Highlights
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(In PHP Million (except % data) 1H2019 % to Assets 2018 % to Assets
Assets Cash and cash equivalents 40,558 6% 38,766 6% Financial assets at fair value through other comprehensive income 24,308 4% 23,532 4% Receivables & Contract Assets 42,784 7% 35,229 6% Investment Properties 322,448 47% 293,575 49% Land and development 81,359 13% 79,331 13% Condominium and residential units for sale 8,063 1% 8,088 1% Other Assets 125,432 22% 125,613 21% Total Assets 644,952 100% 604,134 100% Liabilities and Stockholders’ Equity Interest bearing debt 232,336 36% 222,811 37% Accounts payable and others 124,867 19% 102,245 17% Total Liabilities 357,203 55% 325,056 54% Total Equity 287,749 45% 279,078 46%
Financial Highlights
(In PHP millions) 1H2019 2018 2017 2016 2015 2014 Cash Flows from Operating Activities Operating Income before Working Capital Changes 32,181 54,149 53,385 37,678 36,362 33,568 Net Cash provided by operations 28,849 45,964 45,777 31,491 31,938 6,751 Net Cash flows used in Investing Activities (23,076) (64,078) (41,012) (27,080) (55,230) (29,389) Net Cash Flows provided by (used in) Financing Activities (3,862) 12,633 14,176 (5,604) 14,015 30,750 Net Increase (Decrease) Cash and Cash Equivalents 1,792 5,605 19,171 (669) (9,375) 8,104 Cash and Cash Equivalents at Beginning
38,766 44,371 25,201 25,870 35,245 27,142 Cash and Cash Equivalents at End of Year 40,558 38,766 44,372 25,201 25,870 35,245 ▶
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Hotels & Convention Centers
SM Prime recognizes the valuable contributions
employees to the Company’s success. Hence, the Company puts great importance to their professional growth and well- being. The Company invests through developmental programs to improve the employee’s knowledge and skills. SM Prime institutionalized programs on health and wellness. Employee volunteerism is highly encouraged as it helps develop and strengthen relationships internally and with the communities served by the Company and its people. SM Prime’s property development brings about significant ripple effect to the communities where it has situated its businesses. Cognizant of this opportunity to serve millions of customers daily, the Company ensures that its facilities foster inclusivity and accommodate the needs of its stakeholders. The Company creates strong relationship not only with its local communities but also with the LGUs, NGOs, International Organizations and other interest groups. The communities are then transformed and grow with SM Prime.
SM Prime acknowledges that it plays a significant role as a catalyst of economic growth in the Philippine
include the enhancement of shareholder value of its investors. Integral in maximizing the shareholders’ return
adherence to good corporate governance. Further, SM Prime’s businesses create multiplier effect in the communities where it
improvement in the lives of its customers and stakeholders. SM Prime as a key player in the Philippine property development industry is aware that it needs to build and manage lifestyle cities sustainably. Thus, various innovations and technological advancements for the protection of natural capital have been adapted by the Company. It has also entered into partnerships with local and international environmental and disaster risk resilient organizations as a sign of its serious commitment to being environmentally responsible and resilient across all aspects of its operations.
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Sustainability
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Sustainability *Data as of December 31, 2018
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2018 Annual Report 2018 Sustainability Report
Financial Highlights
This presentation is available online through www.smprime.com