Investor Presentation

September 2016 Table of Contents

• The Philippine Economy 3 • About SM Investments 5 • SM Retail 13 • Banking 17 • SM Prime 18 • Land Bank 32 • Portfolio Investments 35 • Financials 38

2 : Strong Macroeconomic Fundamentals

Young Workforce with Rising Incomes Opportunities Strong GDP Growth Consumption Driven • Job creation and inclusive growth 6.9% 70% of GDP • Regional growth – Visayas, Mindanao Per Capita GDP Per Capita GNI • Infrastructure development USD2,932 (+1.8%) USD3,558 (+2.2%) • Agriculture, Tourism, Manufacturing Median Age Population 23 101M (+1.7%) • Foreign Investment

Improving Costs of Doing Business Net External Inflows and ICT Exports 60 • Avg. Inflation rate: 1.3% (Jan-Jun 2016) 52.4 50 • Avg. Real lending rate: 4.33% (Jan-Jun 2016) 42.1 17.7 40 • Stable Currency: -0.44% (YE2015 vs End-Jun 2016) 7.2 8.6

30 23.8 USD USD bn 17.8 19.0 Healthy Fiscal and Monetary System 20 11.6 28.4 8.6 9.6 1.6 26.3 10 • Debt/GDP: 43.6% Current Credit Ratings 5.7 10.6 9.2 6.2 • CAR: 16.4% S&P BBB Stable 0 3.7 • NPLs: 1.7% Moody's Baa2 Positive Viet Thai (2014) Mal Indo (2014) Phil (2014) • Net lender to the IMF Fitch BBB- Positive Net FDI Inflows Remittances ICT Export Source: The World Bank Notes: Source: BSP Selected Economic and Financial Indicators • Vietnam: FDI (2014), Remit (2011), ICT Services Export No Data Release as of July 29, 2016 • Malaysia: FDI, and Remit (2014) and ICT Services Export (2013)

3 Current Administration’s 10-point Socio-economic Agenda

Maintain current macroeconomic policies, including fiscal, monetary, Effective land management and trade policies

Invest in human capital Progressive tax management development

Promote science, technology, and Pursue investment friendly reforms the creative arts to enhance innovation and creative capacity

Accelerate infrastructure Improve social protection programs development for greater social inclusion

Increase agricultural and rural Strengthen implementation of the enterprise productivity and rural Responsible Parenthood and tourism Reproductive Health Law

Images from PhilStar.com

4 About SM Investments

Strong proxy for the continuing breakout of the Philippine Economy . Consumer-centric businesses . Large cap and diversified market play . Core businesses remain market leaders

Strong business model and excellent management . Prudent financial management . Tightly managed to leverage strengths and extract synergies across the Group . Ongoing focus on good corporate governance and shareholder value creation

Aggressive expansion plans ensure long-term growth . Aggressive expansion plans in all core businesses . China and Portfolio Investments provide additional upside . Funding options available for both organic and acquisition-led expansion

5 Our Investments

Portfolio Core Investments Investments

Retail Banking Property 28% BELLE CORP

29% 77.3% 44% 20% 50% ATLAS CHINA CONSOLIDATED BANCO SM RETAIL INC. BANKING SM PRIME HOLDINGS, INC. MINING DE ORO CORP. 90%

NET GROUP FOOD

MALLS 34% HOTELS & HOTELS

RESIDENTIAL CITYMALL

COMMERCIAL

THE THE STORE SM CONVENTIONS

JOINT JOINT VENTURES COMMERCIAL LEISURE LEISURE TOURISM & SPECIALTY RETAILERS SPECIALTY CENTERS

6 SM Group Companies’ Rankings

Philippine Conglos Philippine Retailers Philippine Banks Property Developers Market Cap ($bn) Total Sales ($mn) Total Resources ($bn) Market Cap ($bn)

SMIC 17.8 FY 2015 BDO 45.1 SMPH 18.1 JG Summit 12.8 SM Retail 4,482 36.1 12.5 Ayala Corp 11.6 2,060 BPI 33.2 Megaworld 3.5 Aboitiz Equity 9.3 Robinsons* 1,927 Landbank 27.9 Robinsons Land 2.8 GT Capital 5.8 *Includes all retail formats PNB 14.5 Double Dragon 2.7 Source: Company Information Metro Pacific 4.5 China Bank 11.7 Vistaland 1.7 SMC 4.2 Philippine Retailers 11.2 Filinvest 1.0 DMCI 3.7 Total Stores RCBC 10.6 LT Group 3.6 DBP 10.5 FY 2015 3.6 UBP 9.0 SM Retail 294 Puregold 281 Robinsons* 166

Source: Bloomberg; *Supermarkets and Department Stores only Source: Bloomberg; Figures as of July 29, 2016 Source: Company Information Source: Company Information, 1Q 2016 Figures as of July 29, 2016

7 Our Business Footprint

Metro Total Population: 101M Luzon 16 Cities 1 Municipality 38 Provinces 55 Cities Retail Stores GSA Retail Stores GSA Total 113 830,326 Total 163 800,437 Food 91 469,824 Food 140 553,636 Non-food 22 360,503 Non-food 23 246,801 Property Buildings GFA Property Buildings GFA Malls 20 3,297,272 Malls 29 2,683,723 Residential 24 Residential 2 Office Bldgs 5 330,247 Hotels 2 32,326 Exhibit Halls 3 Banking Branches Banking Branches BDO 290 BDO 459 China Bank 174 China Bank 238

Visayas Mindanao 16 Provinces 43 Cities 27 Provinces 33 Cities Retail Stores GSA Retail Stores GSA Total 37 218,259 Total 15 104,764 Food 31 138,191 Food 11 62,413 Non-food 6 80,068 Non-food 4 42,351 Property Buildings GFA Property Buildings GFA Malls 5 1,088,157 42% Metro Manila 44% Malls 4 491,254 Hotels 1 35,630 Luzon 41% Luzon 35% Hotels 1 11,013 Exhibit Halls 2 Visayas 11% Visayas 14% Exhibit Hall 1 Banking Branches Banking Branches Mindanao 5% Mindanao 6% BDO 112 BDO 167 China Bank 64 Retail GSA 1,953,786 Mall GFA 7,560,406 China Bank 41

8 Our ESG Programs

“SM continues to find ways to provide Filipinos with various opportunities for growth. Equally important is our impact on the environment and the company’s thrust to becoming a progressive leader in sustainable business practices in the country.” - Harley T. Sy

Environmental Corporate Social Inclusion Sustainability Governance

Sustainable Cities Food security through sustainable Corporate and Communities agriculture and backyard farming Governance Policies & Code of Ethics Access to health and medical care Disclosure and Sustainable Transparency Operations Access to inclusive and equitable Annual ESG Report education ASEAN Corporate Awareness Programs Governance Harnessing Human Potential Scorecard Conservation and Enterprise Risk Preservation Social Programs for persons Management with special needs Disaster Risk Disaster Response, Relief and Board & Reduction Rehabilitation Management Note: All of SM’s ESG programs are aligned with the Sustainable Development Goals

9 Strong Leadership

Board of Directors

From L to R: TOMASA H. LIPANA, Independent Director • HENRY T. SY, JR., Vice Chairperson • TERESITA SY- COSON, Vice Chairperson • , SR., Chairman • HARLEY T. SY, Director and President • JOSE T. SIO, Director, Executive Vice President and Chief Finance Officer • JOSEPH R. HIGDON, Independent Director • AH DOO LIM, Independent Director Business Leadership Retail Banking Property

Food Non-Food BDO China Bank SM Prime

Herbert Teresita Harley Teresita Hans Henry Jr. Hans Elizabeth

10 10-Year Performance since PSE Listing

Assets grew at 16.3% p.a.

Market Cap grew 18.5% p.a.

Revenue grew at 18.6% p.a.

Net Income grew at 13.5% p.a.

11 Summary of SMIC Recent Performance

Figures in PHP billion except percentages Recent Events SM Investments 1H 2016 1H 2015 Change FY 2015 Retail Revenues 151.1 139.2 8.5% 295.9 • Completed merger of retail affiliates Net Income* 15.0 13.5 11.1% 28.4 • Ecommerce agreement with Lazada Net Margin 9.9% 9.7% - 9.6% • Opened 19 stores in 1H, 11 outside Manila ROE 10.5% 10.3% - 10.3% • Alfamart operating 146 stores Net Debt:Equity 39:61 38:62 - 36:64 Banking *Recurring Earnings growth of 8% • TPG invested in ONB to develop microlending • Joint investment in PCIB Securities with Nomura SM Retail 1H 2016 1H 2015 Change FY 2015 • BDO took full control of its JV with BDO Life. Revenues 106.9 98.4 8.7% 211.4 • China Bank forms China Bank Securities Net Income 3.5 3.1 13.5% 6.8 Corporation to service equities-related transactions Net Margin 3.4% 3.2% - 3.2% Property • Formed an agreement with the local government BDO 1H 2016 1H 2015 Change FY 2015 to reclaim 1,500 hectares in Cordova, Cebu Net Interest Income 31.7 27.1 17.2% 57.0 • Formed a JV with ALI and acquired 26 hectares in Non Interest Income 22.1 16.4 34.6% 31.9 South Road Project (SRP) in Cebu Net Income 13.2 11.7 12.9% 25.0 • Opened Conrad Manila and S’Maison in the MOA Complex SM Prime 1H 2016 1H 2015 Change FY 2015 • Launched FiveE-Com Center, started construction Revenues 39.2 35.9 9.4% 71.5 of Three and FourE-com Centers Normalized Net Income 12.6 11.2* 12.0% 20.9* Net Margin 32.1% 31.4% - 28.0% Portfolio Investments *Adjusted for gain on sale of AFS • Atlas Mining announced restructuring plan • Belle delivered record recurring net income

12 SM Retail: Footprint Expansion Opportunity

Philippine Population: 101M SM Retail Footprint 1H 2016 (Pre-Merger) Luzon Per Region Stores GSA (sqm) % of Total 45M Metro Manila (NCR) 113 830,326 42% people Luzon (ex-NCR) 163 800,437 41% NCR Visayas 37 218,259 11% 13M people Mindanao 15 104,764 5% Total 328 1,953,786 Visayas 19M Per Format Stores GSA (sqm) Average people The SM Store 55 729,722 13,268 SM Supermarket 47 327,731 6,973 Mindanao SM Hypermarket 45 346,788 7,706 24M people SaveMore 147 447,409 3,044 Waltermart 34 102,135 3,004 Retail Strategy Alfamart 140 29,280 209 • Expand nationwide footprint outside Metro Manila • Deliver excellent customer service Total* 328 1,953,786 • Work with partners to provide best in class modern retail *Alfamart not consolidated

13 SM Retail: Merger of Related Businesses

• Merger – SM Retail Inc. surviving entity • Strategic Fit  Discretionary retailing  Scale and diversity  Strong mall synergies • Alignment of Structure and Ownership • Earnings Accretive – higher growth and margins • Greater footprint • Local market leadership

14 Merger Impact

Increased Presence in Increased Scale Discretionary Retailing

In PHP Billion Revenue Net Income* Outlets Specialty Store Outlets SM Retail Pre-Merger 215 7.2 310 Ace Hardware 123 SM Retail Post-Merger 253 TBD 1,700+ Homeworld 76 SM Appliance 65 and 136 Higher Margins and Revenue Growth Pet Express Watsons 459 Net Margin* Revenue Growth Baby Company 79 Total Specialty 6.3% 8.3% Kultura 39 SM Retail (Pre-Merger) 3.4% 7.3% Sports Central 81 Others 371 Total 1,429 *Before minority interest Note: Includes outlets in other SM Note: All figures using year-end 2015 data Retail formats

15 SM Retail: Post-Merger Structure

SMIC 77.3%

SM Retail

Food Non-Food

Supermarkets Joint SM Store Specialty Hypermarkets Ventures

Savemore • Forever 21 • Ace Hardware WalterMart • Uniqlo • Baby Company • Sfera • Homeworld Alfamart • Bata • Kultura • Uno de 50 • Our Home • Body Shop • SM Appliances • L’ Indochine • Sports Central • Joseph • Toy Kingdom • Crate & Barrel • Watsons • Crocs • Others

16 Banking

BDO China Bank

Business Strategy Business Strategy • Diversified and sustainable earning stream • Accelerate Expansion • Client acquisition through branch expansion • Grow Revenue Lines • Drive provincial lending and deposit taking initiatives • Solidify presence in corporate market • Expand fee income • Defend market share for commercial/middle market/SMEs • Operating leverage • Expand menu of consumer products • Set up operating platform to support future growth • Continue diversification of fee-based businesses • Implement digital strategy • Intensify branding and differentiation • Prudent balance sheet management • Conservative provisioning for risk assets • Complement current funding with long term • Ensure sufficient capital to support growth

17 About SM Prime

• Developer of large scale, mixed-use “Lifestyle cities” anchored on world-class malls Malls • The largest integrated property developer in Southeast Asia by market capitalization

• High recurring income Commercial

• Extensive landbank

• Consistently cited for excellence in corporate governance, property development, environmental consciousness and service Residential Leisure

18 SM Prime’s 5-Year Roadmap

Residences Hotels & Convention Malls Commercial Primary Homes Leisure Homes Centers

(20132018-2018) GFA: 10.6 Million sqm Launched Units: 139,628 Launched Units: 2,500 GFA: 0.46 Million sqm Rooms: 2,187 (85% Phil + 15% China) Projects: 41 Projects: 16 No of Towers: 7 Projects: 10

(2013-2018) E +28% +69% +23% +44% +87% in GFA in units in units in GFA in rooms

2015 Act GFA: 8.3 Million sqm Launched Units: 82,841 Launched Units: 2,035 GFA: 0.32 Million sqm Rooms: 1,167 (89% Phil + 11% China) Projects: 27 Projects: 12 No of Towers: 5 Projects: 5

+19% +30% 0% +113% +15% in GFA in units in units in GFA in rooms

A GFA: 7.0 Million sqm Launched Units: 63,892 Launched Units: 2,035 GFA: 0.15 Million sqm Rooms: 1,015 2013 Act (89% Phil + 11% China) Projects: 21 Projects: 12 No of Towers: 3 Projects: 4

A • Doubling revenues and profits by 2018 to PHP32 billion • Growth will be driven by malls and residential units

19 SM Prime vs Peers

Most defensive and least cyclical among Philippine property conglomerates

63%

*Excludes Hotels and Resorts

7.7M

2.0M 1.0M 1.4M

Source: Latest Available Company Information 20 The Mall of Asia Complex: A Lifestyle City Development

Mall of Asia Sea Residences • Commercial, entertainment Arena and residential hub Shell Residences SMX Convention Center • 60 hectares of reclaimed

Shore Residences land fronting • Existing structures: Mall of Asia Five E-com Center • Mall of Asia • SMX Convention Center

Four E-com Center Conrad Hotel • SM Arena • Conrad Manila • OneE-Com Center, TwoE- One E-com Center Com Center, FiveE-Com Two E-com Center Center Galeon Museum • Shell, Sea Residences Three E-com Center • Under construction: • ThreeE-Com Center, FourE-Com Center Existing • Shore Residences Upcoming • Galeon Museum

21 SM Seaside Cebu: A Lifestyle City Development

Chapel of San Observation Tower Pedro Calungsod

• 30 hectares mixed use

SM-ALI JV development on reclaimed land in Cebu • Integrated development • Site of Cebu’s largest mall

SM Seaside City and the fourth largest SM mall in the country with a GFA of 430,000 sqm • Adjacent to 26 hectares co-owned with Ayala Land Existing

Upcoming

22 SM Malls: Overview

Largest mall operator/developer in the Philippines

23 SM Malls: Philippines

Area Malls GFA (sqm) % of Total Philippine Population: 101M Metro Manila (NCR) 20 3,297,272 44%

Luzon (ex-NCR) 29 2,683,723 35% Luzon 45M Visayas 5 1,088,157 14% people

Mindanao 4 491,254 6% NCR 13M Total 58 7,560,406 100% people

SM Seaside City, Cebu Visayas 19M people

Mindanao 24M people

24 SM Malls: Philippines Expansion Plans

New Opening GFA (sqm) SM San Jose Del Monte April 2016 114,186 SM Trece Martires May 2016 83,783 SM Cherry Congressional Nov 2016 13,273 SM East Ortigas 2H 2016 80,127

Expansion SM San Pablo 2H2016 13,359 SM Molino 2H2016 39,674 Total 344,402 Projection Total Malls 60 End-2016 Total GFA 7.7 mn sqm

25 SM Malls: China

SM Zibo

SM Tianjin

Existing Date Opened GFA (sqm) SM Xiamen 2001 December 238,125 Jinjiang 2005 November 167,830 Chengdu 2006 October 166,665 Suzhou 2011 September 72,552 Chongqing 2012 December 149,429 Zibo 2015 September 150,600 Total 945,200

Upcoming Target GFA (sqm) Tianjin (partial) 2016 540,000

26 SM Residences

Projects Overview 1H 2016 Total Launched since 2003 88,861 Total Units Sold since 2003 71,438 % Sold to date 80%

Planned Launched in 2016 (units) 11,000-14,000 Reservation Sales (value) PHP22.6B Reservation Sales (units) 8,078 SMDC Fame SMDC Air 2016 CAPEX PHP16.3B SMDC Shore Amenities Project PHP10.5B Land banking PHP5.8B Landbank (Hectares) Metro Manila 61.9 Outside Metro Manila 187.0 Land for Future Projects 248.9

27 SM Residences Example – Shore Residences

One Bedroom with Balcony Two Bedroom with Balcony

Approx. 27.7 to 29.5 sqm Approx. 58.5 sqm

28 SM Commercial Properties

Completed Opened GFA (sqm)

SM Cyber Makati One 2008 22,055

SM Cyber Makati Two 2008 16,725

TwoE-com Center 2012 107,682

SM Aura Tower 2013 53,117

SM Cyber West 2014 41,799

FiveE-com Center 2015 129,307

Total 370,685

Under Construction Opening GFA (sqm)

ThreeE-com Center TBA 114,204

FourE-com Center TBA TBA

29 SM Hotels and Convention Centers

• Growing tourism market opportunity • SM Hotel expansions complement existing mall, commercial and residential developments • Iloilo • SM North Edsa • San Fernando, Pampanga • SM Seaside City, Cebu

Conrad Manila SMX Convention Center

30 SM Hotels and Convention Centers

Conrad Manila Lobby Hotel Opened Rooms Taal Vista, Tagaytay 2003 260 Radisson Blu, Cebu 2010 396 Pico Sands, Hamilo Coast 2011 151 Park Inn, Davao 2013 202 Park Inn, Clark 2015 154 Conrad Manila, 2016 347 Total 1,510

Conrad Manila Diplomatic Suite: Bedroom Venue Location GLA (sqm) SMX Manila MOA Complex 17,306 SMX Davao SM Lanang 5,200 SMX Aura Premier SM Aura 3,136 SMX Bacolod Bacolod 4,269 Megatrade Hall Megamall 4,214 Cebu Trade Hall Cebu 1,498 Mall of Asia Arena MOA Complex 20,000 seats Total 35,623

31 Land Bank

Companies Land Bank (sqm)

SM Prime 11,405,415 Coastal Malls 1,770,793 Zone Inland 1,580 Has Mountain Zone Residences 3,153,539 4,200 Has

Commercial 883,252

Leisure Homes 5,597,831

SMIC 57,801,502

Total 69,206,917

32 Land Bank in Batangas: Hamilo Coast

• Hamilo Coast asset is owned directly by SMIC • 5,780 hectares • 31 km of coastline • 13 coves • Pristine environment • 1½ - 2 hours from Manila

33 2016 SM Group CAPEX

Businesses PHP bn Allocation/Projects Retail 5.2 New stores / Renovations Banks 7.5 Branch expansion, IT enhancements Property 60.2 New SM malls and expansions in Malls 32.2 Philippines and China Residential 20.7 Condominiums and HPI projects Commercial 4.5 ThreeE-com and FourE-Com Hotels and Convention Centers 2.7 Conrad Manila Parent and Others 0.4 Total 73.3

34 Portfolio Investments: Belle Corporation

• 28% ownership; publicly listed • Developer of high-end (In PHP mn) 1Q 2016 1Q 2015 % Chg entertainment and leisure properties Revenues 1,494.6 1,344.8 11.1% • Subsidiary, Premium Leisure Corp., holds 1 of 4 gaming licenses in Operating Costs and -638.8 -607.3 5.2% complex in Manila Bay Expenses

• US$1.3bn , Net Operating Income 855.8 737.5 16.0% operated by Melco Crown • Total gross floor area: 300,000 sqm Net Income 412.8 377.7 9.3% • Gaming floor area: up to c.22,000 sqm • 372 gaming tables Net Margin 27.6% 28.1% -- • 1,680 slot machines ROE 6.5% 5.6% -- • 1,680 electronic table games Net Debt (Cash) to • Three hotel brands with 950 keys: 0.16 : 1.00 0.01 : 1.00 -- Crown, Nobu, Hyatt Equity Ratio

35 Portfolio Investments: Atlas Consolidated Mining

• 29% ownership; publicly listed • Copper mine with 20+ years mine life, over 400m tonnes of proved and probable (In PHP mn) 1H 2016 1H 2015 % Chg reserves Revenues 6,130 5,262 16.5% • Average cut-off grade of 0.30% Cu • Excellent environmental and social record Total Cash Cost 4,515 4,464 1.1% • Supportive shareholders and other stakeholders EBITDA 1,674 981 70.6% • Announced restructuring plan to optimize Net Income -325 -611 -46.8% cash position during copper price downturn • Optimal 40k tonnes/day production Core Income* -558 -888 -37.2% volumes *Net income after tax adjusted for non-recurring items • Reduce pre-stripping CAPEX for 2016 such as foreign exchange and mark-to-market and 2017 adjustments. • Cost reduction and operating efficiency programme

36 Portfolio Investments: CityMalls Commercial Corp.

• 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 malls • 100 CityMalls by 2020 - 30 targeted by YE2016

37 Financials

38 Financials: SMIC

1H 2016 Consolidated Results Revenues +8.5% to PHP151.1bn In PHP Billion 1H 2016 1H 2015 FY2015 FY2014 FY2013 FY2012 5% Revenue 151.1 139.3 295.9 276.6 253.3 223.9 Reported Net Income* 15.0 13.5 28.4 28.4 27.5 24.7 24% Net Margin 9.9% 9.7% 9.6% 10.3% 10.8% 11.0% Dividends n/a n/a 8.52 8.2 7.4 6.4 Return on Equity 10.5% 10.3% 10.3% 12.0% 13.0% 14.3% 71% *Recurring Earnings growth of 8% in 1H 2016

Total Capital 1H 2016 1H 2015 FY2015 FY2014 FY2013 FY2012 Cash Equivalents & Short 96.0 100.9 122.6 130.5 111.2 126.6 Banking business not consolidated Term Investments Net Debt 183.5 165.0 158.5 131.2 126.5 93.6 Equity 292.3 270.3 284.5 257.0 219.4 188.1 Net Debt:Equity 39 : 61 38 : 62 36 : 64 34 : 66 37 : 63 33 : 67 Reported Earnings +11% (Recurring Earnings +8%) SMIC Parent Debt Net Debt to Equity 31 : 69 Average Cost of Debt 5.03% Peso-Foreign Currency Mix46 : 54 Average Debt Tenure 4.13 years 36% Recent Bond Offerings 43% Issued Amount Currency Due Date Coupon Rate June 10, 2014 USD350 mn US Dollar June 2024 4.88% May 19, 2014 PHP15 bn Philippine Peso May 2021/May 2024 5.2958%/5.6125% July 16, 2012 PHP15 bn Philippine Peso Jul 2019/Jul 2022 6.0%/6.9442% 21% October 17, 2012 USD500 mn US Dollar October 2019 4.25% October 13, 2010 USD400 mn US Dollar (Exchange Bonds) October 2017 5.50% Property Retail Banking

39 Financials: BDO

Financial Highlights 1H 2016 1H 2015 Change FY 2015 (In PHP Bn) Net Interest Income 31.7 27.1 17.2% 57.0 Other Income 22.1 16.4 34.6% 31.9 1 Net Income 13.2 11.7 12.9% 25.0 Assets 2,155.6 1,873.2 15.1% 2,031.3 Deposits 1,771.6 1,520.4 16.5% 1,663.9 2 Gross Customer Loans 1,368.2 1,126.6 21.4% 1,279.4

Net Interest Margin 3.2% 3.1% -- 3.2% Cost to Income Ratio 64.9% 61.4% -- 62.0% Notes: 1. Excludes net income attributable to 3 Return on Common Equity 13.1% 13.2% -- 13.6% minority interest 2. For BDO press releases, gross Gross Loans to Deposits Ratio 77.2% 74.1% -- 76.9% customer loans is the figure quoted 3. Return on Ave. Common Equity, Gross NPL to Gross Customer Loans 1.1% 1.3% -- 1.2% defined as NI to parent Total CAR4 -- shareholders less preferred 13.1% 13.6% 13.3% dividends / ave. common equity Tier 1 Ratio 11.6% 11.9% -- 11.7% (excluding preferred shares and minority interests) CET1 11.3% 11.5% -- 11.3% 4. Per BSP, as seen in the published statements of condition Tier 2 Ratio 1.6% 1.7% -- 1.6%

40 Financials: BDO

Loan and Deposit Growth

Loan Growth Deposit Growth 3,000 CASA Time Deposits BDO Industry 2,500 1,772 2,000 1,664

21% Bn 1,345 1,492 20% 1,500 19% 526 541 17% 932 533 15% 1,000 PHP 570 20% 339 18% 500 959 1,138 1,230 16% 16% 592 775 14% - 2012 2013 2014 2015 2Q 2016 CASA YoY∆ 31% 24% 19% 23% 2012 2013 2014 2015 2Q 2016 CASA Ratio 58% 64% 68% 69%

Improving Asset Quality Consistent Growth in Sustainable Sources

Asset Quality Operating Income Net Int Inc Fees Trading/FX Others NPL Allow. for Impairment NPL Ratio 100 88.9 80.7 90 75.0 60.0 2.8% 4.0% 80 7.2 3.0% 70 60.6 50.0 1.6% 1.3% 1.3% 7.1 1.2% 2.0% 19.4 53.8 60 12.8 86%

40.0 Bn 18 86% 1.0% 50 8.2 Bn 15.5 2.9 30.0 0.0% 78% 40 13.4 PHP PHP 82% 10.6 -1.0% 30 20.0 PHP PHP 51.2 57 79% -2.0% 20 43.2 10.0 26.7 25.2 26.8 26.2 26.3 36.2 31.7 21.3 14.8 14.2 15.8 17.2 -3.0% 10

0.0 -4.0% 0 2012 2013 2014 2015 2Q 2016 2012 2013 2014 2015 1H 2016 YoY∆ Total 24% 8% 10% 24% NPL Cover 171% 188% 166% 153% YoY∆ NII & Fees 18% 18% 10% 17%

41 Financials: China Bank

Financial Highlights 1H 2016 1H 2015 Change FY 2015 (In PHP Bn) Net Interest Income 8.0 7.4 7.1% 15.1 Non-Interest Income 2.9 2.1 41.5% 4.6 Net Income 3.3 2.5 30.3% 5.6 Assets 555.6 479.0 16.0% 527.0 Deposits 462.6 399.2 15.9% 438.7 Gross Customer Loans 329.5 294.5 11.9% 317.5 Net Interest Margin 3.2% 3.4% -- 3.4% Cost to Income Ratio 61.4% 63.5% -- 62.8% 1 Return on Equity 10.7% 8.7% -- 9.6% Gross Loans to Deposits Ratio 71.2% 73.8% -- 70.7% Gross NPL Ratio 2.6% 2.5% -- 2.6% 1. Net Income/Average Equity 2 Total CAR 13.2% 14.5% -- 13.5% 2. Per BSP, as seen in the published statements of Tier 1/CET 1 12.3% 13.6% -- 12.6% condition

42 Financials: China Bank

Loan and Deposit Growth

Gross Loans (PHP bn) Funding (PHP bn)

Corporate Commercial Consumer CASA High Cost FCDU LDR 316 329 67% 70% 73% 71% 73% 71% 350 298 296 550 62%

66%

300 464 48 50 450 439 228 43 43 407 46% 250 199 354 399 67 68 350 73 77 26% 200 30 128 142 145 272 71 174 23 133 160 6% 250 216 150 89 54 147 148 82 146 -14% 100 48 150 128 86 -34% 50 109 127 126 120 134 179 212 182 222 94 50 137 82 90 -54% -

(50) -74% 2012 2013 2014 2015 1H 2015 1H 2016 2011 2012 2013 2014 2015 2Q 2015 2Q 2016

Steady Asset Quality Stabilizing Cost Income Ratio

Asset Quality Cost to Income Ratio

64.0% 63.5% NPA Ratio NPL Ratio Loan Loss Coverage Ratio 63.0% 62.2% 62.3%

10.0% 180.0% 146.6% 62.0% 61.4% 9.0% 134.9% 160.0%

61.0% 8.0% 140.0%

7.0%

101.3% 120.0% 60.0% 6.0% 88.7% 59.2% 59.0% 80.5% 100.0%

5.0% 3.7% 59.0% 80.0%

4.0% 3.0% 2.9% 2.9%

60.0% 2.2% 58.0% 3.0%

40.0% 2.0%

57.0%

20.0% 1.0% 2.6% 2.5% 2.6% 0.0% 2.0% 2.2% 0.0% 56.0% 2012 2013 2014 2015 1H 2016 2012 2013 2014 2015 1H 2015 1H 2016

43 Financials: SM Prime 1H 2016 Results In PHP Billions

Consolidated 1H 2016 1H 2015 % Chg Revenue 39.2 35.9 9.4% Normalized Earnings 12.6 11.2 12.0% Net Margin 32.1% 31.4% - Return on Equity 11.7% 11.2% -

Malls Group 1H 2016 1H 2015 % Chg Revenues 23.6 21.7 9.1% Operating Income 13.2 12.0 9.4% EBITDA 16.2 14.7 9.9% EBITDA margin 68.5% 67.9% - Net Income 8.4 7.7 9.6% Malls Residences Others Net margin 35.6% 35.4% - Philippine Malls 1H 2016 1H 2015 % Chg Residences 1H 2016 1H 2015 % Chg Revenues 21.5 19.7 9.2% Revenues 13.2 12.5 6.1% Operating Income 12.1 11.1 9.3% Operating Income 3.9 3.7 4.8% EBITDA 14.7 13.3 9.9% EBITDA 4.0 3.8 4.5% EBITDA margin 68.1% 67.1% - EBITDA margin 30.2% 30.7% - Net Income 8.1 7.1 13.5% Net Income 3.2 3.0 6.9% Net margin 37.5% 36.1% - Net margin 23.8% 23.6% - China Malls 1H 2016 1H 2015 % Chg Commercial 1H 2016 1H 2015 % Chg Revenues 2.1 1.9 7.9% Revenues 1.1 0.7 50.8% Operating Income 1.1 1.0 10.6% Operating Income 0.8 0.4 111.4% EBITDA 1.5 1.4 10.1% EBITDA 1.0 0.5 86.4% EBITDA margin 72.1% 70.6% - EBITDA margin 84.5% 68.3% - Net Income 0.3 0.5 -40.0% Net Income 0.6 0.3 127.9% Net margin 15.7% 28.3% - Net margin 53.4% 35.4% -

44 Contact Information and Disclaimer

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Office Number: +63 2 857-0100 Email Address: [email protected] SM Official Website: www.sminvestments.com Official Facebook Account: www.facebook.com/sminvestments.ir Official Twitter Account: @SM_INVESTMENTS

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Disclaimer Except for historical financial and operating data and other information in respect of historical matters, the statements contained herein are “forward- looking statements”. Any such forward-looking statement is not a guarantee of future performance and involves a number of known and unknown risks, uncertainties, and other factors that could cause the actual performance, financial condition or results of operation of SM and its subsidiaries to be materially different from any future performance, financial condition or results of operation implied by such forward-looking statement.

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