Malls

Investor Kit 2020 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 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 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 other words or phrases of similar import. Similarly, statements that describe the Company's objectives, plans or goals are also forward-looking statements. All such 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 organization. By accepting this presentation, the recipient agrees to keep confidential at all times information contained in or made available in connection with this 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 information. The information in this presentation has not been independently verified. The information and opinions in this presentation are subject to change without 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.

2 Investor Kit 2020 Outline

I. Company Profile II. 1Q2020 Highlights III. COVID-19 Response IV. Sustainability • Four Sustainability Pillars • UN SDGs V. The Company • Key Business Units • Malls • Residences • Offices • Hotels & Convention Centers VI. Key Strategies • Key Strategies • Landbank • Capex Program VII. Financial Highlights VIII. Investment Highlights Company Profile

▶ One of the leading retail landlords in Southeast Market Capitalization ▶ One of the largest listed real estate developers on the PSE by market US$17.25bn capitalization and net income ▶ Consistently cited for excellence PSE Stock Symbol SMPH in corporate governance, property

development, environmental Market Capitalization PHP870bn consciousness, and investor relations programs Outstanding Shares 28,879mn

Last Traded Price Php30.15/share (May 29, 2020)

Average Daily US$10.15mn Turnover (YTD)

4 Investor Kit 2020 1Q2020 Financial Highlights

► Consolidated net income of PHP8.3 billion, down by 5% from PHP8.8 billion in 1Q2019 ► Consolidated revenue is PHP25.8 billion, 3% lower than PHP26.5 of the same period ► Revenue Contribution: Mall business accounts for 47%, Residences accounts for 44%, Other Business accounts for 9% ► Philippine malls revenues recorded PHP11.3 billion, 16% down from PHP13.5 billion of the same period last year. ► Mall rental income registered PHP10.1 billion, 12% lesser from last year’s PHP11.5 billion. ► Residential group, led by SM Development Corporation (SMDC), recorded a 23% increase in revenue to PHP11.4 billion from PHP9.3 billion in 1Q2019 ► SMDC’s reservation sales amounted to PHP24.8 billion in the first quarter of 2020 ► SM Prime’s other business segments reported a consolidated revenue of PHP2.2 billion in the first three months of the year. ► Operating income of Other Business recorded PHP1.1 billion, 9% down from PHP1.2 billion of the same period last year.

5 Investor Kit 2020 COVID-19 Response COVID-19 Response

MEDICAL COMMUNITY: Extending a helping hand 1.Through SM Foundation: • Donated PHP170 million to 50 hospitals nationwide in form of medical tools and equipment SM’s Donations to Health Workers • Donated seven emergency quarantine facilities (EQFs) built by SM EDD (SM Engineering, Design, and Development) 2. PHP100 million donated to poor communities Emergency Quarantine Facilities (EQF) through Project Ugnayan 3. Additional PHP6.6 million assistance to hardest-hit communities through SM Supermalls 4.Converted SM into a Mega Swabbing Facility. Conrad delivers meals to PGH’s front-liners

6 Investor Kit 2020 COVID-19 Response

CUSTOMERS: We continue to serve While observing proper safety protocols, SM Prime properties continued to serve its customers. 1. SM Supermalls remain partially open to provide basic needs and essential services. 2. SM Development Corp. (SMDC) rolled out The Good Deployment of Sanitary Team in SM Supermalls Guys Market in select developments to provide its residents convenient access to fresh produce from farmers of SM Foundation's Kabalikat Sa Kabuhayan (KSK) program. Also hosted online mental wellness Meet and Chat for the residents. 3. The SM Leisure Resort Residences (SMLRR)’ Tagaytay Highlands and Hamilo Coast kept a Deployment of Sanitary Teams in SMDC Residences skeleton workforce to ensure health and safety in the exclusive properties 4. The Commercial Property Group (CPG) operated on an optimum level serving BPO tenants 5. The Hotels and Conventions Group remained open for accommodation needs of BPO employees and returning OFWs required to observe quarantine SM Leisure Residences front-liners

7 Investor Kit 2020 COVID-19 Response

BUSINESS PARTNERS: Their success is our success

1. Waived PHP 8.8 billion worth of mall rental fees from March 16 to May 15, 2020. 2. Connected retail tenants and customers Intensified safety protocols in SM Hotels through SM Supermalls Viber Community. Introduced alternative delivery/fulfillment options for mall tenants to serve its customers. 3. Settled obligation to agency personnel partners, suppliers, and contractors, who Continuous Operation of Essential Stores completed their work obligations. 4. SM Hotels and Convention Centers (SMHCC) Group increased support for local sourcing, specially SMEs.

Social Distancing Protocols in SM Offices

8 Investor Kit 2020 COVID-19 Response EMPLOYEES: Our valuable asset

1. Ensured all employees were given their full month's salaries during the two months of lockdown, amounting to PHP996 million*

2. Extended financial assistance to those working in SM Life manpower services, amounting to PHP312 million*

3. Implemented the following for employee’s safety and welfare: • Rapid antibody testing before returning to work. • Provision of facemasks and alcohol disinfectants The Good Guys Market for condo residents • Digital platform for collaboration

4. Readied the workplace and premises for the ‘new normal’ – physical distancing marks in common areas, regular sanitization, foot bath and temperature checks at entrances Radisson Blu Cebu Front-liners

* From March 16 to May 31 9 Investor Kit 2020 Environment, Social and Governance Four Sustainability Pillars of SM Prime

SM Prime recognizes the valuable contributions of SM Prime’s property development brings about significant ripple employees to the Company’s success. Hence, the Company effect to the communities where it has situated its businesses. puts great importance to their professional growth and well- Cognizant of this opportunity to serve millions of customers being. The Company invests through developmental daily, the Company ensures that its facilities foster inclusivity programs to improve the employee’s knowledge and skills. and accommodate the needs of its stakeholders. The Company SM Prime institutionalized programs on creates strong relationship not only with health and wellness. Employee its local communities but also with the volunteerism is highly encouraged as it LGUs, NGOs, International Organizations helps develop and strengthen relationships and other interest groups. The internally and with the communities communities are then transformed and served by the Company and its people. grow with SM Prime.

SM Prime acknowledges that it plays a SM Prime as a key player in the Philippine significant role as a catalyst of property development industry is aware economic growth in the Philippine that it needs to build and manage lifestyle economy. The Company’s mission cities sustainably. Thus, various include the enhancement of shareholder innovations and technological value of its investors. Integral in advancements for the protection of maximizing the shareholders’ return natural capital have been adapted by the of investment is SM Prime’s strict Company. It has also entered into adherence to good corporate governance. Further, SM Prime’s partnerships with local and international environmental and businesses create multiplier effect in the communities where it disaster risk resilient organizations as a sign of its serious operates thereby resulting to increase economic activity and commitment to being environmentally responsible and resilient improvement in the lives of its customers and stakeholders. across all aspects of its operations.

10 Investor Kit 2020 Environment, Social and Governance Supporting the United Nations Sustainable Development Goals*

*Data as of December 31, 2018 11 Investor Kit 2020 Key Business Units

Hotels and Malls Residences Commercial Convention Centers

► SM Supermalls ► SM Development ► Offices and ► Radisson Blu Corp. and Warehouses ► SM Lifestyle, Inc. ► Taal Vista Subsidiaries ► Mall of Asia ► Family ► Pico Sands ► Highlands Prime Inc. Complex Entertainment ► Park Inn Center Inc. ► Costa Del Hamilo ► Seaside City Cebu Inc. Complex ►

► SMX Convention Centers

12 Investor Kit 2020 Key Achievements

Malls (GFA in sqm) Residences (Sold Units)

12M CAGR = 5.03% 140K 123.9K 9.5M 9.8M 120K 10M 9.0M 9.3M CAGR = 17.53% 102.5K 8.2M 100K 8M 7.3M 83.7K 8.5M 80K 69.1K 6.5M 7.3M 7.7M 8.0M 8.3M 6M 56.3K 60K 47.0K 4M 40K 2M 20K 0.8M 0.9M 1.3M 1.3M 1.3M 1.3M 0K 0M 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Philippines

Offices (GFA in sqm) Hotels (Rooms)

CAGR = 9.96% 1,900 800K 695K 1.8K 642K 1,522 700K CAGR = 24.24% 1.6K 1,510 1,510 1.4K 600K 456K 1,229 1.2K 1,075 500K 383K 1.0K 400K 318K 0.8K 300K 189K 0.6K 200K 0.4K 100K 0.2K 0K 0.0K 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019

13 Investor Kit 2020 At a Glance

MALLS RESIDENCES

1Q2020 Operating Highlights 1Q2020 Operating Highlights

► Total Revenues is PHP12.24 billion, down by 18% ► Total Revenues increased by 23% from PHP15.0 billion to PHP11.41 billion from PHP9.28 billion ► Operating Income lower by 25% to PHP6.32 billion ► Operating Income went up by 34% to PHP4.64 billion from PHP8.46 billion from PHP3.46 billion ► Total Investment Properties of PHP281.57 billion ► Total Assets amounted to PHP229.79 billion

OFFICES HOTELS AND CONVENTION CENTERS

1Q2020 Operating Highlights 1Q2020 Operating Highlights

► Total Revenues went up by 18% to PHP1.26 billion ► Total Revenues went down by 27% at PHP0.89 billion from PHP1.07 billion from PHP1.22 billion ► Operating Income went up by 20% to PHP1.07 billion ► Operating Loss of PHP0.01 billion from PHP0.89 billion ► Total Investment Properties of PHP11.63 billion ► Total Investment Properties amounted to PHP50.52 billion

14 Investor Kit 2020 At a Glance METO MANILA Mall of Asia Complex ( City) Lifestyle Cities in ► Malls Malls ► Hotel ► Residential ► Convention Centers ► Offices ► Arena (North) North EDSA ( City)

► Mall ► Hotel ► Residential ► Offices Valenzuela Fairview () Navotas Quezon City Malabon ► Mall ► Offices ► Residential Caloocan Sta. Mesa (Quezon City)

Manila ► Mall San Juan ► Residential Novaliches (Quezon City)

Makati ► Mall Pasay Pateros ► Residential Metro Manila Megamall (Mandaluyong City)

► Mall ► Offices Parañaque ► Residential ► Convention Center

Las Piñas Southmall (Las Pinas City)

► Mall ► Office ► Residential Bicutan (Paranaque City) ► Mall ► Residential

Sucat (Paranaque City)

► Mall ► Residential

SM Aura (Taguig City) ▶ SM Prime has ten (10) integrated property developments in Metro Manila dubbed as Lifestyle City. ► Mall ► Convention Center ▶ SM Prime’s first lifestyle city is Mall of Asia Complex in Pasay City, which spans 60 hectares of ► Office developable area

15 Investor Kit 2020 At a Glance Lifestyle Cities in the Provinces Seaside (Cebu) ► Mall ► Hotel ► Office ► Convention Centers ► Arena LUZON (Iloilo) Clark ()

► Mall ► Mall ► Residential ► Office ► Office ► Hotel ► Hotel ► Convention Centers (soon) Pampanga City (Negros Occidental) (Bulacan) ► Mall ► Mall ► Residential ► Residential ► Hotel (soon) (Zambales) ► Convention Center

► Mall ► Convention Centers (soon) Iloilo Cebu Bacolod Taytay (Rizal)

► Mall ► Office de Oro (Davao) Trece Martirez (Cavite) ► Mall ► Mall Davao ► Residential ► Residential ► Convention Centers

Sta. Rosa (Laguna) (Misamis Oriental) ► Mall ► Residential ► Mall ► Office ► Office

▶ SM Prime has eleven (11) integrated property developments in key provincial cities in the Philippines. ▶ SM Prime plans to expand its portfolio to other developing cities in the country with its key businesses – mall, residential, offices, hotels and convention centers.

16 Investor Kit 2020 Malls (as ofMalls 1Q2020)

Revenue PHP12.24bn

Operating Income PHP6.32bn

Gross Floor Area 9.8m sqm

Malls 74 in PH & 7 in CH Malls Key Business Units

PHILIPPINES CHINA

74 Malls 7 Malls

8.5M sqm Total GFA 1.3M sqm Total GFA

18,873 Tenants 1,867 Tenants

Average Daily Average Daily 4.4M Pedestrian Count 0.2M Pedestrian Count

344 Cinema Screens 58 Cinema Screens

91,786 Parking Slots 15,534 Parking Slots

SM Prime is the largest mall operator/developer in the Philippines.

18 Investor Kit 2020 Malls Key Business Units

Philippine Population: 101M

Philippine Malls LUZON: ▶ In terms of GFA, Metro Manila 40 Malls malls account for 42%, Luzon (ex NCR) is 37%, Visayas is 13% and Mindanao is 8% NCR: 23 Malls ▶ Average mature mall occupancy rate is 95% VISAYAS: ▶ Accounts for 50% of mall space 6 Malls in the country

MINDANAO 5 Malls

19 Investor Kit 2020 Malls Key Business Units Mall Coverage in PH

Philippine Population: 101M Caloocan (North) Existing Sites Luzon: Valenzuela Future Sites 45M People (1 Mall) Quezon City Navotas (5 Malls) Malabon

Caloocan Marikina Untapped Area (1 Mall) (1 Mall) NCR: Manila 13M People (2 Malls) San Juan

Mandaluyong (2 Malls) Pasig (2 Malls)

Makati Pasay Pateros (2 Malls)

Taguig (1 Mall)

Visayas: Parañaque (3 Malls) 19M People Las Piñas (2 Malls)

Muntinlupa Mindanao: (1 Mall) 24M People

▶ SMPH malls covered almost all of the key cities in Metro Manila and adjoining towns and municipalities, accounting for 42% of the company’s total gross floor area in the Philippines. ▶ SMPH mall expansion is geared towards the provinces. The focus is to cover most of Northern Luzon, Visayas and the progressive cities in Mindanao.

20 Investor Kit 2020 Malls Key Business Units

China Malls ▶ Operating in China since 2001 and became part of SM Prime in 2007

▶ Contributed 4% of the overall revenues and 2% of consolidated operating income Yangzhou ▶ Operates 7 malls with a total GFA of 1.3m Suzhou sqm ▶ SM is scheduled for expansion Jinjiang and will add 120,000 sqm., while SM Xiamen Yangzhou is set for construction and will add 220,000 sqm.

21 Investor Kit 2020 ResidencesResidences (as of 1Q2020)

Revenue PHP11.41bn

Operating Income PHP4.64bn

Reservation Sales PHP24.81bn

Residential Units Launched (since 2003) 143,526 Residences Key Business Units

Primary Homes ▶ A leading residential developer of high-

rise buildings (HRBs) mid-rise buildings Gold Residences, Parañaque City (MRBs) and single-detached house and lots ▶ Accounts for 44% of the consolidated revenues ▶ Reservation sales value of PHP24.81 billion in 1Q2020 Light 2 Residences, Mandaluyong City ▶ Unbooked Revenue amounts to PHP184bn ▶ Total landbank: 1,138 hectares

Style Residences, Iloilo City

25 Investor Kit 2020 Residences Key Business Units

Primary Homes

Projects Overview (as of 1Q2020) Ready-for-Occupancy (RFO) 1,978 (Unsold Units) Ongoing Construction (Unsold Units) 13,431 Estimated Inventory Value PHP98.39bn

1Q2020 Reservation Sales (value) PHP24.81bn 1Q2020 CAPEX PHP6.20bn

Landbank (hectares)

Metro Manila 94

Outside Metro Manila 1,044

Glam Residences, Quezon City

26 Investor Kit 2020 Residences Residential Coverage

Caloocan (North)

Valenzuela Quezon City Navotas (12 Projects) Existing Sites Malabon

Caloocan Marikina Future Sites Manila (2 Project) San Juan Mandaluyong Pasig (3 Projects) Untapped Area (1 Project) Makati Pasay (4 Projects) Pateros (6 Projects) Taguig (1 Project)

Parañaque (5 Projects)

Las Piñas (1 Project)

Muntinlupa (1 Project)

▶ 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. ▶ As of 1Q2020, 40 out of the 51 SMDC projects in the country are located in Metro Manila.

28 Investor Kit 2020 Residences Key Business Units

Leisure Homes ▶ Include 2 large-scale tourism projects – Tagaytay Highlands and Pico de Loro Woodlands Point Community at Tagaytay Highlands ▶ Tagaytay Highlands is an exclusive mountain resort, golf club and residential complex, covering some areas of Cavite, Laguna and ▶ The 40-hectare Pico de Loro is the Phase 1 of Hamilo Coast project, a premier and sustainable leisure Horizon Terraces Garden Villas destination in Nasugbu, Batangas ▶ Landbank of 524 hectares

Freia at Pico de Loro Cove

29 Investor Kit 2020 Offices (asOffices of 1Q2020)

Revenue PHP1.26bn

Operating Income PHP1.07bn

Gross Floor Area 0.7M sqm

Office Buildings 12 Offices Key Business Units

Offices ▶ Have 12 office buildings with a combined GFA of more than 695,000 sqm TwoE-comCenter ▶ Four of these 12 offices are located in the Mall of Asia Complex in Pasay City, which provide a combined GFA of 435,000 sqm ▶ Have an available landbank of 80 hectares for future evelopment

FiveE-comCenter

ThreeE-comCenter

33 Investor Kit 2020 Hotels and ConventionHotels Centersand Convention(as of 1Q2020) Centers

Revenue PHP0.89bn

Operating Loss PHP0.01bn

Hotels 8

Convention Centers & Trade Halls 7 Hotels and Convention Centers Key Business Units

Hotels and Convention Centers ▶ Operating 8 hotels with over 1,900 rooms; 4 SMX Convention Centers, and 3 Megatrade Halls with more

than 37,000 sqm of leasable space as of Conrad Manila Park Inn by Radisson - Clark December 2019. ▶ Conrad Manila and SMX Manila are both located in Mall of Asia Complex, Pasay City. Radisson Blu Hotel Pico Sands Hotel Park Inn by Radisson - ▶ SM Hotels and Conventions Corp. Davao (SMHCC) is set to open Lanson Place Hotel and Serviced Suites in Mall of Asia

SMX Convention Center

36 Investor Kit 2020 Key Strategies (as of 1Q2020)

Landbank 1,933ha

2020 CAPEX PHP80bn

Net Debt To Equity 41:59 Key Strategies Landbank

Area by Region (in hectares) Area Metro No. of Sites (in hectares) % of Total Manila Provincial

Malls 39 191 10% 19 172

Primary Homes 105 1,138 59% 94 1,044

Leisure Homes 4 524 27% - 524

Commercial 15 80 4% 5 75

Total 163 1,933 100% 118 1,815

▶ SM Prime’s landbank is good for the next 5 to 7 years, located in emerging progressive cities across the country ▶ Leisure projects are for medium-term development

40 Investor Kit 2020 Key Strategies CAPEX Program

PHP59bn PHP44bn PHP58bn PHP91bn PHP69bn PHP80bn 100% 7% 6% 12% 8% 17% 90% 24%

80% 28% 70% 33% 51% 62% 41% 60% 39% 50%

40% 65% 30% 55% 42% 20% 41% 37% 32% 10%

0% 2015A 2016A 2017A 2018A 2019A 2020E Malls Residences Others

▶ SM Prime will maintain its budget of PHP 80 billion capital expenditures for 2020 to focus on projects that will deliver sustainable returns in the long term. ▶ Furthermore, the Company will continue to explore opportunistic acquisitions and/or investments. ▶ The CAPEX program will be funded by the combination of local borrowings and internal funds

41 Investor Kit 2020 Key Strategies Maintain Conservative Balance Sheet

Interest Coverage Ratio* Net Debt to Equity** 12.00 11.19 100% 90% 10.00 9.64 8.96 80%

70% 59% 62% 63% 64% 60% 60% 8.00 7.59 7.56 7.36 60%

6.00 50%

40% 4.00 30%

20% 38% 40% 40% 41% 2.00 37% 36% 10%

0.00 0% 2015 2016 2017 2018 2019 1Q2020 2015 2016 2017 2018 2019 1Q2020 Net Debt Equity Debt

*Earnings before interest, income taxes, depreciation **Total interest-bearing liabilities- cash & cash equivalents and amortization (EBITDA) and investment securities Total equity attributable to equity holders of the parent + Interest expense Total interest-bearing liabilities- cash & cash equivalents and investment securities

42 Investor Kit 2020 ₱

Financial Highlights (as of 1Q2020)

Consolidated Net Income PHP8.32bn

Consolidated Revenue PHP25.78bn

Consolidated Operating Income

PHP11.88bn Financial Highlights Consolidated Financials Revenue Segment Contribution

100% 6% 7% 9% 8% 8% 9% 90%

80% 32% 32% 33% 35% 38% 70% 44%

60%

50%

40%

30% 62% 61% 58% 57% 54% 47% 20%

10%

0% 2015 2016 2017 2018 2019 1Q2020

Malls Residences Other Business Segments

▶ Malls accounts for 47% of SM Prime’s consolidated revenues. ▶ Residences accounts for 44%. ▶ Other Business Segments cover the rest.

44 Investor Kit 2020 Financial Highlights Consolidated Financials Net Income Segment Contribution

100% 4% 9% 10% 9% 7% 10% 90% 24% 80% 24% 25% 29% 33% 70% 40%

60%

50%

40% 72% 67% 65% 30% 62% 60% 50% 20%

10%

0% 2015 2016 2017 2018 2019 1Q2020

Malls Residences Other Business Segments

▶ Malls contribute the most among key business units, followed by Residences. ▶ The contribution from these Business units should be sustained over the medium term.

45 Investor Kit 2020 Financial Highlights Consolidated Financials

(In PHP Billion) 1Q2020 1Q2019 % Chg

Revenues 25.78 26.54 -3%

EBITDA 14.56 15.51 -6%

Operating Income 11.88 12.98 -9%

Net Income 8.32 8.80 -5%

▶ Net income went down by 5% to PHP8.3bn in 1Q2020 from PHP8.8bn, while operating income is 6% lower to PHP11.9bn in 1Q2020 from PHP13.0bn. Consolidated revenues likewise drop by 3% to PHP25.8bn from PHP26.5bn. ▶ The declaration of COVID-19 by the World Health Organization (WHO) as a pandemic and declaration of nationwide state of calamity and implementation of enhanced community quarantine (ECQ) measures in the areas of Luzon last March 16 have caused disruptions in the Company's business activities, and its impact continues to evolve.

46 Investor Kit 2020 Financial Highlights Financials Malls: PH

(In PHP Billion) 1Q2020 1Q2019 % Chg

Revenues 11.30 13.45 -16%

- Rent Income 10.07 11.46 -12%

- Cinema and Event Ticket Sales 1.23 1.99 -38% and others

EBITDA 7.97 9.50 -16%

Operating Income 6.06 7.69 -21%

▶ Rental Income in 1Q2020 is PHP10.1bn, 12% lower from PH11.5bn due to ECQ implemented in Luzon and some areas in the Philippines and management’s decision to waive rental fees in all malls during the quarantine period. ▶ Operating income likewise went down by 21% to PHP6.1bn from PHP7.7bn.

47 Investor Kit 2020 Financial Highlights Financials Malls: CH

(In RMB Billion) 1Q2020 1Q2019 % Chg

Revenues 0.13 0.20 -35%

- Rent Income 0.12 0.19 -36%

- Others 0.007 0.008 -5%

EBITDA 0.09 0.15 -40%

Operating Income 0.04 0.10 -64%

▶ SM Prime’s China mall business which reported closure in January 25 due to the spread of COVID-19 in the region, has now all seven malls running at 80% capacity, with foot traffic gradually going back to normal since its gradual reopening from February 10 to March 11 when lockdowns in China were being lifted. ▶ China government will provide SM Prime tax breaks to cushion the impact of the pandemic in its business activities

48 Investor Kit 2020 Financial Highlights Financials Residences

(In PHP Billion) 1Q2020 1Q2019 % Chg

Revenues 11.41 9.28 23%

EBITDA 4.70 3.49 34%

Operating Income 4.64 3.46 34%

▶ Revenues increased by 23% to PHP11.4bn in 1Q2020 from PHP9.3bn last year due to higher project completion. ▶ Gross profit margin improved to 56% from 52%, whereas net income margin also increased to 27% from 26% of last year. ▶ SMDC’s reservation sales in the first quarter of 2020 amounted to PHP24.8 billion.

49 Investor Kit 2020 Financial Highlights Financials Other Businesses

(In PHP Billion) 1Q2020 1Q2019 % Chg

Revenues 2.15 2.29 -6%

EBITDA 1.38 1.47 -6%

Operating Income 1.06 1.17 -9%

▶ Revenues from Commercial Properties Group and Hotels and Convention Centers cover 9% of the overall consolidated revenues. ▶ The Company’s office business segment continues to operate during ECQ with 90% of its tenants being business process outsourcing (BPO) offices, which were allowed by the Philippine’s Inter- Agency Task Force (IATF) to conduct business. ▶ Meanwhile, SM Prime’s hotels, reported the closure of Taal Vista Hotel in Tagaytay City last January 15 to 28 due to period of intense unrest of Taal Volcano. The Company’s hotels remain operational during ECQ, with some catering to BPO employees and returning overseas Filipino workers who are affected by the community quarantine measures in the country.

50 Investor Kit 2020 Financial Highlights Consolidated Balance Sheets

(In PHP Million (except % data) 1Q2020 % to Assets 2019 % to Assets

Assets Cash and cash equivalents 47,223 7% 34,600 5% Equity instruments at fair value through other 13,602 2% 21,080 3% comprehensive income Receivables & Contract Assets 52,949 8% 53, 637 8% Investment Properties 414,917 60% 410,640 62% Real Estate Inventories 45,170 7% 43,946 7% Other Assets 114,802 16% 103,377 15% Total Assets 688,664 100% 667,280 100%

Liabilities and Stockholders’ Equity Interest bearing debt 256,601 37% 237,954 36% Accounts payable and other 129,449 19% 126,809 19% Total Liabilities 386,049 56% 364,763 55% Total Equity attributable to equity holders of the 300,938 44% 300,916 45% parent

▶ We continue to maintain a very conservative balance sheet ▶ More than half of our assets are in the investment properties while our interest bearing debt accounts for 37%

51 Investor Kit 2020 Financial Highlights Cash Flow

(In PHP millions) 1Q2020 2019 2018 2017 2016 2015

Cash Flows from Operating Activities

Operating Income before Working Capital 14,633 65,791 56,592 48,058 37,678 36,362 Changes

Net Cash provided by (used in) operations 11,308 51,728 45,964 45,777 31,491 31,938

Net Cash provided by (used in) Investing (15,307) (48,615) (64,078) (41,012) (27,080) (55,230) Activities Net Cash Flows provided by (used in) Financing 16,622 (7,310) 12,633 14,176 (5,604) 14,015 Activities

Net Increase (Decrease) in Cash and Cash 12,623 4,167 5,605 19,171 (669) (9,375) Equivalents Cash and Cash Equivalents at Beginning 34,600 38,766 44,371 25,201 25,870 35,245 of Year

Cash and Cash Equivalents at End of Year 47,223 34,600 38,766 44,372 25,201 25,870

▶ Net gearing is equivalent to 41:59 in 1Q2020, below the management target of keeping 50:50 net debt to equity ratio ▶ Cash flow mostly come from malls, residential operations and increasing contribution from other businesses.

52 Investor Kit 2020 Investment Highlights

▶ Establish strong brand equity ▶ Leading integrated real estate platform with strong track record across full suite of asset classes ▶ World-class mall business, which will anchor future sustainable lifestyle city projects ▶ Significant growth opportunities from landbank optimization and future acquisitions 2018 Annual Report ▶ Strong balance sheet supported by strong recurring income ▶ Highly experienced management team and strong corporate governance

2018 Sustainability Report

53 Investor Kit 2020 InvestorINVESTOR Kit KIT 2020 2020 This presentation is available online through www.smprime.com This presentation is available online through www.smprime.com