INVESTOR KIT 2019 · presentation is or should be relied upon as a promise or representation as to...
Transcript of INVESTOR KIT 2019 · presentation is or should be relied upon as a promise or representation as to...
Malls
Investor Kit 2020This 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
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Investor Kit 20202
OutlineI. Company Profile
II. 1H2020 Highlights
III. COVID-19 Response
IV. Sustainability
• Four Sustainability Pillars
• SM Prime’s Path to
Sustainable Development
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 HighlightsInvestor Kit 20203
Company Profile
▶ One of the leading retail landlords in
Southeast Asia
▶ One of the largest listed real estate
developers on the PSE by market
capitalization and net income
▶ Consistently cited for excellence
in corporate governance, property
development, environmental
consciousness, and investor relations
programs
Investor Kit 20204
Market Capitalization
PSE Stock Symbol SMPH
Market Capitalization PHP880bn
Outstanding Shares 28,879mn
Last Traded Price
(July 30, 2020) Php30.00/share
Average Daily
Turnover (YTD) US$9.34mn
US$17.89bn
1H2020 Financial Highlights
Investor Kit 20205
► Consolidated net income of PHP10.4 billion, down by 46% from PHP19.3 billion in
1H2020
► Consolidated revenue is PHP43.7 billion, 23% lower than PHP57.0 of the same period
► Revenue Contribution: Mall business accounts for 38%, Residences accounts for 54%,
Other Business accounts for 8%
► Philippine malls revenues recorded PHP14.4 billion, 49% down from PHP28.1
billion of the same period last year.
► Philippine mall rental income registered PHP13.1 billion, 44% lesser from last
year’s PHP23.3 billion.
► Residential group, led by SM Development Corporation (SMDC), recorded a 11%
increase in revenue to PHP23.7 billion from PHP21.4 billion in 1H2020
► SMDC’s reservation sales amounted to PHP42.4 billion in the first half of 2020
► SM Prime’s other business segments reported a consolidated revenue of PHP3.6
billion in the first six months of the year.
►Operating income of Other Business recorded PHP1.9 billion, 21% down from
PHP2.3 billion of the same period last year.
COVID-19 Response
Investor Kit 2020
1.Through SM Foundation:
• Donated PHP300 million worth of PPEs, medical
equipment, and facilities to meet the needs of
some 150 hospitals and health facilities
nationwide.
• Donated seven emergency quarantine facilities
(EQFs) built by SM EDD (SM Engineering,
Design, and Development)
2. PHP100 million donated to poor communities
through Project Ugnayan
3. Additional PHP6.6 million assistance to hardest-hit
communities through SM Supermalls
4.Converted SM Mall of Asia Arena into a Mega
Swabbing Facility.
SM’s Donations to Health Workers
Emergency Quarantine Facilities (EQF)
Conrad Manila delivers meals to PGH’s front-liners
MEDICAL COMMUNITY: Extending a helping hand
COVID-19 Response
6
Investor Kit 2020
Deployment of Sanitary Team in SM Supermalls
While observing proper safety protocols, SM Prime
properties continued to serve its customers.
1. All 74 SM malls in the Philippines have been gradually reopened
starting May 16 to provide basic needs and essential services.
2. SM Development Corp. (SMDC) rolled out The Good 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 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
6. SM Malls extended dining areas around the mall with assigned
sanitation team ensure safety of the diners.
7. Partnered with local farmers and public transportation groups to
supply produce and transport people and goods conveniently.
8. Promoted cashless transactions through partner payment portals.
Deployment of Sanitary Teams in SMDC Residences
SM Leisure Residences front-liners
CUSTOMERS: We continue to serve
COVID-19 Response
7
Investor Kit 20208
Intensified safety protocols in SM Hotels
1. Waived PHP11 billion worth of mall
rental fees from March 16 to June 30,
2020.
2. Connected retail tenants and customers
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
completed their work obligations during
ECQ.
4. SM Hotels and Convention Centers
(SMHCC) Group increased support for
local sourcing, specially SMEs.
Continuous Operation of Essential Stores
BUSINESS PARTNERS: Their success is our success
COVID-19 Response
Social Distancing Protocols in SM Offices
Investor Kit 20209
The Good Guys Market for condo residents
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
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
• 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 entrancesRadisson Blu Cebu Front-liners
SM Life
EMPLOYEES: Our valuable asset
COVID-19 Response
* From March 16 to May 31
EnvironmentSM Prime exists with a sense of responsibility towardsthe environment and believes in the balance withnature. In order to be sustainable, the Company must
practice resilience in its systemsand operations while more publicand private partnershipsstrengthen its commitmenttowards resilient Philippines.
EconomicAs a major driver of the economy, SM Prime observesgood corporate governance to enhance shareholdersupport and remains a catalyst forwell-placed investments.The Company brings more valueto the community through itsmany businesses, which increaseeconomic activity.
Four Sustainability Pillars of SM Prime
CommunityWherever an SM Prime propertyis located, its community isenriched by the SM-institutedplans and programs. Facilities andCSR programs promote inclusivityand cooperation with allstakeholders. SM finds pride in its serviceto the community and the opportunity to improve life for all.
PeopleSM Prime promotes the dynamicgrowth and sustained wellness ofits workforce with developmentalprograms and activities. Theinvaluable contribution of theemployees extends to the
relationships within and beyond the Company. As theCompany grows, so does the employee who adheres toproper principles.
Investor Kit 2020
Environment, Social and Governance
10
Investor Kit 2020
Environment, Social and Governance
11
Key Business Units
► SM Supermalls
► SM Lifestyle, Inc.
► Family
Entertainment
Center Inc.
Investor Kit 202012
Malls
► SM Development
Corp. and
Subsidiaries
► Highlands Prime Inc.
► Costa Del Hamilo
Inc.
Residences
► Offices and
Warehouses
► Mall of Asia
Complex
► Seaside City Cebu
Complex
Commercial
► Radisson Blu
► Taal Vista
► Pico Sands
► Park Inn
► Conrad Manila
► SMX Convention
Centers
Hotels and
Convention Centers
Key Achievements
Investor Kit 202013
0M
2M
4M
6M
8M
10M
12M
2014 2015 2016 2017 2018 2019
China Philippines
Malls (GFA in sqm)
0.8M 0.9M 1.3M 1.3M 1.3M 1.3M
6.5M 7.3M 7.7M 8.0M 8.3M8.5M
7.3M
8.2M9.0M
9.3M9.5M 9.8M
CAGR = 5.03%
0K
20K
40K
60K
80K
100K
120K
140K
2014 2015 2016 2017 2018 2019
Residences (Sold Units)
47.0K
56.3K69.1K
83.7K
102.5K
123.9K
CAGR = 17.53%
0K100K200K300K400K500K600K700K800K
2014 2015 2016 2017 2018 2019
Offices (GFA in sqm)
189K
318K
383K
456K
642K
695K
CAGR = 24.24%
0.0K0.2K0.4K0.6K0.8K1.0K1.2K1.4K1.6K1.8K
2014 2015 2016 2017 2018 2019
Hotels (Rooms)
1,075
CAGR = 9.96%
1,229
1,510 1,5101,522
1,900
At a Glance
Investor Kit 202014
MALLS
1H2020 Operating Highlights
► Total Revenues is PHP16.42 billion, down by 47%
from PHP31.07 billion
► Operating Income is PHP4.98 billion, 71% lower from
PHP17.28 billion in 1H2019
► Total Investment Properties of PHP284.85 billion
1H2020 Operating Highlights
► Total Revenues increased by 11%
to PHP23.71 billion from PHP21.43 billion
► Operating Income went up by 17% to PHP9.68 billion
from PHP8.31 billion
► Total Assets amounted to PHP233.60 billion
RESIDENCES
OFFICES HOTELS AND
CONVENTION CENTERS
1H2020 Operating Highlights
► Total Revenues went up by 16% to PHP2.54 billion
from PHP2.18 billion
► Operating Income went up by 22% to PHP2.22 billion
from PHP1.82 billion
► Total Investment Properties amounted to PHP52.80
billion
1H2020 Operating Highlights
► Total Revenues went down by 55% at PHP1.09 billion
from PHP2.45 billion
► Operating Loss of PHP0.36 billion
► Total Investment Properties of PHP11.56 billion
At a GlanceLifestyle Cities in Metro Manila
Investor Kit 202015
Caloocan
(North)
Quezon City
Valenzuela
MarikinaCaloocan
MalabonNavotas
ManilaSan Juan
MandaluyongPasig
PaterosMakatiPasay
Parañaque
Las Piñas
Muntinlupa
Taguig
▶ SM Prime has ten (10) integrated property developments in Metro Manila dubbed as Lifestyle City.
▶ SM Prime’s first lifestyle city is Mall of Asia Complex in Pasay City, which spans 60 hectares of
developable area
Metro Manila
► Offices
► Malls
► Residential
► Offices
Megamall (Mandaluyong City)
► Mall
► Residential
SM Aura (Taguig City)
► Mall
► Office
Southmall (Las Pinas City)
► Mall
► Residential
METO MANILA
► Mall
► Residential
North EDSA (Quezon City)
► Mall
► Residential
Sta. Mesa (Quezon City)
► Mall
► Residential
Mall of Asia Complex (Pasay City)
Fairview (Quezon City)
► Hotel
► Convention Centers
► Arena
► Hotel
► Offices
Novaliches (Quezon City)
► Mall
► Residential
Bicutan (Paranaque City)
► Mall
► Residential
Sucat (Paranaque City)
► Mall
► Residential
► Office
► Offices
► Convention Center
► Convention Center
Investor Kit 202016
VISAYAS
Seaside (Cebu)
► Mall
► Office
Iloilo City (Iloilo)
► Mall
► Residential
► Office
► Hotel
Bacolod City (Negros Occidental)
► Mall
► Residential
► Hotel (soon)
► Convention Center
MINDANAO
Davao City (Davao)
► Mall
► Residential
► Convention Centers
Cagayan de Oro (Misamis Oriental)
► Mall
► Office
LUZON
Clark (Pampanga)
► Mall
► Office
► Hotel
► Convention Centers (soon)
Marilao (Bulacan)
Olongapo (Zambales)
► Mall
► Convention Centers (soon)
Taytay (Rizal)
► Mall
► Residential
► Office
Sta. Rosa (Laguna)
► Mall
► Office
At a GlanceLifestyle Cities in the Provinces
▶ 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.
Zambales Pampanga
Rizal
Laguna
Iloilo
BacolodCebu
Cagayan de Oro
Davao
Trece Martirez (Cavite)
► Mall
► Residential
► Mall
► Residential
Bulacan
Cavite
► Hotel
► Convention Centers
► Arena
MallsMalls
Revenue
PHP16.42bn
Operating Income
PHP4.98bn
Gross Floor Area
9.8m sqm
Malls
74 in PH & 7 in CH
(as of 1H2020)
MallsMalls
Key Business Units
Investor Kit 2020*As of end 201918
SM Prime is the largest mall operator/developer in the Philippines.
PHILIPPINES*
74
8.5M sqm
18,678
4.4M
340
91,786
CHINA*
7
1.3M sqm
1,829
0.2M
58
15,534
Malls
Total GFA
Tenants
Average Daily
Pedestrian Count
Cinema Screens
Parking Slots
Malls
Total GFA
Tenants
Average Daily
Pedestrian Count
Cinema Screens
Parking Slots
MallsMalls
Key Business Units
Philippine Malls
▶ In terms of GFA, Metro Manila
malls account for 36%, Luzon (ex
NCR) is 32%, Visayas is 11%
and Mindanao is 7%
▶ Average mature mall occupancy
rate is 95%
▶ Accounts for 50% of mall space
in the country
Investor Kit 202019
Philippine Population: 101M
LUZON:
40 Malls
VISAYAS:
6 Malls
MINDANAO
5 Malls
NCR:
23 Malls
MallsMalls
Key Business Units
Mall Coverage in PH
Investor Kit 202020
▶ 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.
Caloocan (North)
Quezon City
(5 Malls)
Valenzuela
(1 Mall)
Marikina
(1 Mall)
Caloocan
(1 Mall)
MalabonNavotas
Manila
(2 Malls) San Juan
Mandaluyong
(2 Malls) Pasig
(2 Malls)
PaterosMakati
Pasay
(2 Malls)
Parañaque
(3 Malls)
Las Piñas
(2 Malls)
Muntinlupa
(1 Mall)
Existing Sites
Future Sites
Untapped AreaNCR:
13M People
Philippine Population: 101M
Luzon:
45M People
Visayas:
19M People
Mindanao:
24M People
Taguig
(1 Mall)
MallsMalls
Tianjin
Zibo
Suzhou
Jinjiang
Xiamen
Chongqing
Chengdu
Key Business Units
China Malls
▶ Operating in China since 2001 and
became part of SM Prime
in 2007
▶ Contributed 5% of the overall revenues
and 4% of consolidated operating income
▶ Operates 7 malls with a total GFA of 1.3m
sqm
▶ SM Xiamen is scheduled for expansion
and will add 120,000 sqm., while SM
Yangzhou is set for construction and will
add 220,000 sqm.
Investor Kit 2020
Yangzhou
21
ResidencesResidences(as of 1H2020)
Revenue
PHP23.71bn
Operating Income
PHP9.68bn
Reservation Sales
PHP42.38bn
Residential Units Launched(since 2003)
144,912
Residences
Investor Kit 2020
Key Business Units
Primary Homes
▶ A leading residential developer of high-
rise buildings (HRBs) mid-rise buildings
(MRBs) and single-detached house and
lots
▶ Accounts for 54% of the consolidated
revenues
▶ Reservation sales value of PHP42.38
billion in 1H2020
▶ Unbooked Revenue amounts to
PHP180bn
▶ Total landbank: 1,204 hectares
Gold Residences, Parañaque City
Style Residences, Iloilo City
Light 2 Residences, Mandaluyong City
25
Residences
Key Business Units
Primary Homes
Glam Residences, Quezon City
Projects Overview (as of 1H2020)
Ready-for-Occupancy (RFO)
(Unsold Units)1,815
Ongoing Construction (Unsold Units) 10,433
Estimated Inventory Value
1H2020 Reservation Sales (value)
PHP91.28bn
PHP42.38bn
1H2020 CAPEX PHP13.12bn
Landbank (hectares)
Metro Manila 94
Outside Metro Manila 1,110
Investor Kit 202026
Residences
Caloocan (North)
Quezon City
(13 Projects)
Valenzuela
MarikinaCaloocan
MalabonNavotas
Manila
(1 Project) San Juan
Mandaluyong
(3 Projects)Pasig
(1 Project)
Pateros
Makati
(4 Projects)Pasay
(9 Projects)
Parañaque
(5 Projects)
Las Piñas
(1 Project)
Muntinlupa
(1 Project)
Taguig
(1 Project)
Residential Coverage
▶ 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 1H2020, 39 out of the 50 SMDC projects in the country are located in Metro Manila.
Investor Kit 2020
Existing Sites
Future Sites
Untapped Area
28
Residences
Investor Kit 2020
Key Business Units
Leisure Homes
▶ Include 2 large-scale tourism projects –
Tagaytay Highlands and Pico de Loro
▶ Tagaytay Highlands is an exclusive
mountain resort, golf club and residential
complex, covering some areas of Cavite,
Laguna and Batangas
▶ The 40-hectare Pico de Loro is the
Phase 1 of Hamilo Coast project,
a premier and sustainable leisure
destination in Nasugbu, Batangas
▶ Landbank of 524 hectares
Freia at Pico de Loro Cove
Horizon Terraces Garden Villas
Woodlands Point Community at Tagaytay Highlands
29
OfficesOffices
(as of 1H2020)
Revenue
PHP2.54bn
Operating Income
PHP2.22bn
Gross Floor Area
0.7M sqm
Office Buildings
12
Offices
Investor Kit 2020
Key Business Units
Offices
▶ Have 12 office buildings with a combined
GFA of more than 695,000 sqm
▶ 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 development
TwoE-comCenter
FiveE-comCenter
ThreeE-comCenter
33
Hotels and
Convention Centers
Hotels and
Convention Centers
(as of 1H2020)
Revenue
PHP1.09bn
Operating Loss
PHP0.36bn
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
June 2020.
▶ Conrad Manila and SMX Manila are both
located in Mall of Asia Complex, Pasay
City.
▶ SM Hotels and Conventions Corp.
(SMHCC) is set to open Lanson Place
Hotel and Serviced Suites in Mall of Asia
Radisson Blu Hotel Pico Sands Hotel Park Inn by Radisson -
Davao
Park Inn by Radisson - ClarkConrad Manila
SMX Convention Center
Investor Kit 202036
Key
Strategies
Landbank
2,010ha
2020 CAPEX
PHP80bn
Net Debt To Equity
42:58
(as of 1Q2020)
Key Strategies
Landbank
No. of Sites
Area
(in hectares) % of Total
Area by Region (in hectares)
Metro
Manila Provincial
41 203 10% 19 184
109 1,204 59% 94 1,110
4 524 27% - 524
15 80 4% 5 75
Total 169 2010 100% 118 1,893
Malls
Primary
Homes
Commercial
Leisure
Homes
▶ 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
Investor Kit 202040
Key Strategies
CAPEX Program
▶ 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.
65%
55%
41%32%
42%34%
28%
33%
51%62% 41% 56%
7%12%
8% 6%
17%10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015A 2016A 2017A 2018A 2019A 2020E
Malls Residences Others
PHP91bnPHP58bnPHP44bnPHP59bn
Investor Kit 2020
PHP69bn PHP80bn
41
Key Strategies
Maintain Conservative Balance Sheet
Investor Kit 202042
*Earnings before interest, income taxes, depreciation
and amortization (EBITDA)
Interest expense
11.19
9.64
8.96
7.59 7.56
5.86
0.00
2.00
4.00
6.00
8.00
10.00
12.00
2015 2016 2017 2018 2019 1H2020
Interest Coverage Ratio*
**Total interest-bearing liabilities- cash & cash equivalents
and investment securities
Total equity attributable to equity holders of the parent
62% 63% 64% 60% 60% 42%
38% 37% 36% 40% 40% 58%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2016 2017 2018 2019 1H2020
Net Debt to Equity**
Equity Debt Net Debt
Financial
Highlights
₱
Consolidated Net Income
Consolidated Revenue
PHP43.68bn
Consolidated
Operating Income
PHP10.43bn
(as of 1H2020)
PHP16.35bn
Financial Highlights
Consolidated FinancialsRevenue Segment Contribution
Investor Kit 2020
▶ Malls accounts for 38% of SM Prime’s consolidated revenues.
▶ Residences accounts for 54%.
▶ Other Business Segments cover the rest.
62% 61% 58% 57% 54%
38%
32% 32%33% 35% 38%
54%
6% 7% 9% 8% 8% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2016 2017 2018 2019 1H2020
Malls Residences Other Business Segments
44
Financial Highlights
Consolidated FinancialsNet Income Segment Contribution
Investor Kit 2020
▶ Residences contribute the most among key business units, followed by Malls.
72%67% 65% 62% 60%
29%
24%
24% 25% 29% 33%
60%
4%9% 10% 9% 7%
11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2016 2017 2018 2019 1H2020
Malls Residences Other Business Segments
45
Financial Highlights
▶ Net income went down by 46% to PHP10.4bn in 1H2020 from PHP19.3bn, while operating income is 40% lower
to PHP16.4bn in 1H2020 from PHP27.4bn. Consolidated revenues likewise dropped by 23% to PHP43.7bn from
PHP57.0bn.
▶ 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.
Consolidated Financials
Investor Kit 2020
(In PHP Billion) 1H2020 1H2019 % Chg
Revenues 43.68 57.05 -23%
EBITDA 21.74 32.34 -33%
Operating Income 16.35 27.43 -40%
Net Income 10.43 19.30 -46%
46
Financial Highlights
▶ Rental Income in 1H2020 is PHP13.1bn, 44% lower from PH23.3bn due to ECQ implemented in Luzon and some areas in the Philippines and management’s decision to waive rental fees in all malls from Mid-March until end of June.
▶ Operating income likewise went down by 73% to PHP4.3bn from PHP15.8bn.
FinancialsMalls: PH
Investor Kit 2020
(In PHP Billion) 1H2020 1H2019 % Chg
Revenues 14.42 28.08 -49%
- Rent Income 13.15 23.34 -44%
- Cinema and Event Ticket Sales
and others1.27 4.74 -73%
EBITDA 8.17 19.25 -58%
Operating Income 4.28 15.84 -73%
47
Financial Highlights
▶ 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 lifted.
▶ China government provided SM Prime tax breaks to cushion the impact of the pandemic in its
business activities
FinancialsMalls: CH
Investor Kit 2020
(In RMB Billion) 1H2020 1H2019 % Chg
Revenues 0.28 0.39 -29%
- Rent Income 0.26 0.37 -30%
- Others 0.013 0.014 -7%
EBITDA 0.20 0.30 -31%
Operating Income 0.10 0.19 -48%
48
Financial Highlights
▶ Revenues increased by 11% to PHP23.7bn in 1H2020 from PHP21.4bn last year due to
higher project completion.
▶ Gross profit margin improved to 54% from 53%, whereas net income margin declined to
26% from 28% of last year.
▶ SMDC’s reservation sales in the first half of 2020 amounted to PHP42.4 billion.
FinancialsResidences
Investor Kit 2020
(In PHP Billion) 1H2020 1H2019 % Chg
Revenues 23.71 21.43 11%
EBITDA 9.77 8.37 17%
Operating Income 9.68 8.31 17%
49
Financial Highlights
▶ Revenues from Commercial Properties Group and Hotels and Convention Centers cover 8% 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.
▶ Conrad Manila, Park Inn Clark, Park Inn North EDSA and Park Inn Iloilo remained operational during ECQ to cater to BPO employees and returning overseas Filipino workers/seafarers.
FinancialsOther Businesses
Investor Kit 2020
(In PHP Billion) 1H2020 1H2019 % Chg
Revenues 3.63 4.63 -22%
EBITDA 2.51 2.93 -14%
Operating Income 1.87 2.35 -21%
50
Financial Highlights
▶ 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 36%
Consolidated Balance Sheets
Investor Kit 2020
(In PHP Million (except % data) 1H2020 % to Assets 2019 % to Assets
Assets
Cash and cash equivalents 19,984 3% 34,600 5%
Equity instruments at fair value through other
comprehensive income15,497 2% 21,080 3%
Receivables & Contract Assets 65,748 10% 53, 637 8%
Investment Properties 421,468 62% 410,640 62%
Real Estate Inventories 40,989 6% 43,946 7%
Other Assets 114,270 17% 103,377 15%
Total Assets 677,956 100% 667,280 100%
Liabilities and Stockholders’ Equity
Interest bearing debt 240,951 36% 237,954 36%
Accounts payable and other 135,831 20% 126,809 19%
Total Liabilities 376,783 56% 364,763 55%
Total Equity attributable to equity holders of the
parent299,477 44% 300,916 45%
51
Financial Highlights
(In PHP millions) 1H2020 2019 2018 2017 2016 2015
Cash Flows from Operating Activities
Operating Income before Working Capital
Changes22,015 65,791 56,592 48,058 37,678 36,362
Net Cash provided by (used in) operations 9,439 51,728 45,964 45,777 31,491 31,938
Net Cash provided by (used in) Investing
Activities(24,331) (48,615) (64,078) (41,012) (27,080) (55,230)
Net Cash Flows provided by (used in) Financing
Activities281 (7,310) 12,633 14,176 (5,604) 14,015
Net Increase (Decrease) in Cash and Cash
Equivalents(14,616) 4,167 5,605 19,171 (669) (9,375)
Cash and Cash Equivalents at Beginning
of Year 34,600 38,766 44,371 25,201 25,870 35,245
Cash and Cash Equivalents at End of Year 19,984 34,600 38,766 44,372 25,201 25,870
▶ Net gearing is equivalent to 42:58 in 1H2020, below the management target of
keeping 50:50 net debt to equity ratio
Cash Flow
Investor Kit 202052
Investment Highlights
Investor Kit 2020
▶ 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
▶ Strong balance sheet supported by
strong recurring income
▶ Highly experienced management team
and strong corporate governance
2019 Annual Report
2019 Sustainability Report
53
INVESTOR KIT 2020This presentation is available online through www.smprime.comInvestor Kit 2020This presentation is available online through www.smprime.com