Investor Kit 2018
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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 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 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 2019 Outline I. The Company ▶ Company Profile ▶ Key Business Units ▶ Malls ▶ Residences ▶ Offices ▶ Hotels and Convention Centers ▶ Key Strategies ▶ Landbank ▶ Capex Program II. Key Strategies III. Financial Highlights ▶ FY2018 Results IV. Investment Highlights Company Profile ▶ One of the largest integrated Market Capitalization property developers in Southeast Asia by market capitalization US$21.57bn ▶ One of the largest listed real estate developers on the PSE by market PSE Stock Symbol SMPH capitalization and net income Market Capitalization PHP1,123bn ▶ Consistently cited for excellence in corporate governance, property Outstanding Shares 28,879mn development, environmental Last Traded Price Php38.50/share consciousness, and investor (February 21, 2019) relations programs Average Daily US$6.63mn Turnover (YTD) 4 Investor Kit 2019 Key Business Units Hotels and Malls Residences Offices Convention Centers ► SM Supermalls ► SM Development ► Offices and ► Radisson Blu Corp. and its warehouses ► SM Lifestyle Inc. ► Taal Vista subsidiaries ► Mall of Asia Complex ► Family Entertainment ► Pico Sands ► Highlands Prime Inc. Center Inc. ► Seaside City Cebu ► Park Inn ► Costa Del Hamilo Inc. Complex ► Conrad Manila ► SMX Convention Centers 5 Investor Kit 2019 Key Achievements Malls Residences (GFA in sqm) (Units Sales) CAGR = 5.22% 10M 9.3M 9.5M CAGR = 18.48% 9.0M 18K 16.2K 16.6K 8.2M 16K 13.5K 8M 7.0M 7.3M 14K 12K 6M 9.5K 8.2M 10K 8.0K 6.2M 7.3M 7.7M 8.0M 4M 6.5M 8K 6.0K 6K 2M 4K 2K 0.9M 1.3M 1.3M 1.3 0 0.8M 0.8M 0K 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 China Philippines Offices Hotels (GFA in sqm) (Rooms) 700K CAGR = 7.75% 623K 1.8K 1,510 1,588 600K CAGR = 27.21% 1.6K 1,510 500K 456K 1.4K 1,229 1.2K 1,015 1,075 400K 383K 318K 1.0K 300K 0.8K 200K 147K 189K 0.6K 0.4K 100K 0.2K 0K 0.0K0 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 6 Investor Kit 2019 At a Glance FY2018 Operating FY2018 Operating FY2018 Operating FY2018 Operating Highlights Highlights Highlights Highlights ► Total Revenues reached ► Total Real Estate ► Total Revenues ► Total Revenues jumped PHP59.3 billion, up by 11% Revenues expanded by increased by 17% by 1% to PHP4.9 from PHP53.2 billion 22% to PHP35.9 billion to PHP3.6 billion billion from PHP4.8 billion ► Operating Income grew from PHP29.4 billion from PHP3.1 billion ► Operating Income went by 13% to PHP32.2 billion ► Operating Income rose ► Operating Income went down by 3% to PHP1,078 from PHP28.4 billion by 39% to PHP12.3 up by 17% to PHP2.9 million from PHP1,116 ► Total Investment billion from PHP8.9 billion billion from PHP2.5 million Properties of PHP243.7 ► Total Assets amounted to billion ► Total Investment billion PHP186.1 billion ► Total Investment Properties of PHP10.3 Properties amounted billion to PHP39.5 billion 7 Investor Kit 2019 (as of FY2018) REVENUE PHP59.3bn OPERATING INCOME PHP32.2bn GROSS FLOOR AREA 9.5M sqm MALLS 72 in PH & 7 in CH Key Business Units Malls PHILIPPINES CHINA 72 Malls Malls 7 8.3M sqm Total GFA Total GFA 1.3M sqm 18,567 Tenants Tenants 1,936 Average Daily Average Daily 3.6M Pedestrian Count Pedestrian Count 0.2M 340 Cinema Screens Cinema Screens 58 88,702 Parking Slots Parking Slots 15,534 SM Prime is the largest mall operator/developer in the Philippines. 9 Investor Kit 2019 Key Business Units Malls Philippine Population: 101M Philippine Malls ▶ In terms of GFA, Metro Manila malls account for 41%, Luzon is Luzon: 37%, Visayas is 14% and 45M People Mindanao is 8% NCR: 13M People ▶ Average mature mall Visayas: occupancy rate is 96% 19M People ▶ Same-Mall-Sales-Growth (SMSG) is 8% year-on-year (YoY) Mindanao: 24M People 10 Investor Kit 2019 Key Business Units Malls Mall Coverage in PH Caloocan (North) Existing Sites Future Sites Valenzuela (1 mall) Navotas Quezon City Untapped Area Malabon (5 malls) Caloocan Marikina (1 mall) (1 mall) Manila (2 malls) San Juan Mandaluyong Pasig (2 malls) (2 malls) Makati Pasay Pateros (2 malls) Taguig (1 mall) Parañaque (3 malls) Las Piñas (2 malls) Muntinlupa (1 mall) ▶ SMPH malls covered almost all of the key cities in Metro Manila and adjoining towns and municipalities, accounting for 41% 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. 13 Investor Kit 2019 Key Business Units Malls China Malls ▶ Operating in China since 2001 and became part of SM Prime in 2007 SM Xiamen Lifestyle ▶ Contributed 6% of the overall revenues and 5% of consolidated operating income ▶ Operates 7 malls with a total GFA of 1.3m sqm ▶ Future expansions will focus in Fujian SM City Tianjin province SM City Suzhou 12 Investor Kit 2019 Key Business Units Malls Malls’ Expansion Program 2018 2019 New Malls New Malls SM City Legazpi SM City Olongapo Central Name GFA Name GFA SM Center Imus 13,000 SM Center Dagupan 23,000 SM City Urdaneta Central 59,000 SM City Olongapo Central 72,000 SM City Telabastagan 55,000 SM City Butuan 48,000 SM City Legazpi 87,000 SM Mindpro Citimall 53,000 SM Center Ormoc 33,000 SM City Baguio (expansion) +32,000 SM City Fairview (expansion) +46,000 ▶ This year, SM Prime’s mall launches will all be in the provinces. ▶ Available landbank of almost 198 hectares which is good for over the next 5 to 7 years 13 Investor Kit 2019 Key Business Units Malls Latest Project: First IKEA Store in the Philippines ▶ SM Prime is building the first IKEA store in the Philippines and this will be launched at the end of 2020. ▶ This project will occupy 121,000 sqm of GFA in the Mall of Asia Complex in Pasay City. ▶ 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.