36
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I. The Company
Company Profile
Key Business Units
Malls
Residential
Commercial
Hotels and Convention Centers
Key Strategies
Roadmap
Landbank
Capex Program
II. Financial Highlights
1Q2016 Results
III. Lifestyle City Projects
Mall of Asia Complex
Seaside City Cebu
One of the largest integrated property
developer in Southeast Asia by
market capitalization
One of the largest listed real estate
developer on the PSE by market
capitalization, total assets and net
income
Consistently cited for excellence
in corporate governance, property
development, environmental
consciousness, and service.
US$14.95bnMarket
Capitalization
PSE Stock Symbol SMPH
Market Capitalization PHP699bn
Outstanding Shares 28,879mn
Last Traded Price (20 May 2016)
Php24.20/share
► SM Supermalls
► SM Lifestyle and
Entertainment Inc.
► Family Entertainment
Center Inc.
Malls
► SM Development
Corp.
► Summerhills
Development Corp.
► Highlands Prime Inc.
► Costa Del Hamilo Inc.
Residential
► Commercial
Properties Group
► MOA Arena
Commercial
► Radisson Blu
► Tall Vista
► Pico Sands
► Park Inn
► SMX Convention
Center
Hotels & Convention
Centers
Fast Facts
► 58 Malls in the Philippines
► 6 Malls in China
► 8.5 million sqm total Gross Floor
Area
1Q2016 Operating
Highlights
► Total Revenues of PHP11.0
billion rose by 11.3% from
1Q2015
► Operating Income of PHP6.3
billion up by 12.8% from 1Q15
► Total Investment Properties
amounted to PHP190.0 billion
Fast Facts
► 38 Residential Projects
► 94,912 Residential Units
(since 2003)
1Q2016 Operating
Highlights
► Total Real Estate Revenues
of PHP5.8 billion grew by 4.6%
from 1Q2015
► Operating Income of PHP1.6
billion jumped by 0.3% from
1Q 2015
► Total Assets amounted to
PHP108.7 billion
Fast Facts
► 5 Office Buildings
► 317,848 sqm total Gross
Floor Area
► Mall of Asia Arena
1Q2016 Operating
Highlights
► Total Revenues of PHP0.9
billion increased by 15.6%
from 1Q2015
► Operating Income amounted
to PHP0.5 billion surged at
55.3% from 1Q2015
► Total Investment Properties
amounted to PHP29.9 billion
Fast Facts
► 5 Hotels
► 1,167 Hotel Rooms
► 4 Convention Centers and
2 Trade Halls
1Q2016 Operating
Highlights
► Total Revenues of PHP0.6
billion increased by 21.8%
from 1Q2015
► Operating Income amounted to
PHP0.1 billion decrease by
22.1% from 1Q2015
► Total Investment Properties
amounted to PHP10.1 billion
Data as of May 2016
SM Prime is the largest mall operator/developer in the Philippines
Data as of May 2016
Metro Manila malls accounts for 44% of total
mall space followed by Luzon (35%),
Visayas (14%) and Mindanao (7%)
Will continue to contribute over 50% of
SM Prime’s revenue and net income
Have an average mature mall occupancy rate
of 93%
Serve as anchor for Lifestyle City
developments
Data as of May 2016
Operating in China since 2001. It became part
of SM Prime in 2007
Contribute around 6% of the group’s revenue
and income
Combined GFA is 945,000 sqm, 11% of the
group’s 8.5m sqm GFA
The Zibo Mall opened in September 2015
Focuses on 2nd and 3rd tier city locations
Opening GFA (sqm)
Apr2016 SM San Jose Del Monte 101,407
May2016 SM Trece Martires 83,783
1H2016 Cherry SM Congressional 12,056
2H2016 SM East Ortigas 58,958
2H2016 Cherry SM Antipolo 19,321
Expansions
2H2016 SM Calamba 49,936
2H2016 SM Naga 11,186
Total 336,647
Projection
End of 2016 Total Malls 61
GFA 7.7 mn sqm
Fame Residences, Mandaluyong City
Jazz Residences, Makati City
Air Residences, Makati city
A leading condominium developer in Metro
Manila focus on affordable housing segment
Accounts for 32% of the group’s revenue
9 projects (7 new and 2 expansion of existing
projects) will be launched this year, equivalent
to at least 11,000 units
Have a land bank of 53 hectares in the key
cities of Metro Manila
Projects Overview
Ready-for-Occupancy (RFO) Units 3,573
Ongoing Construction (Unsold Units) 15,353
1Q2016 Reservation Sales (value) PHP8.1 bn
1Q2016 Reservation Sales (units) 2,949
2016 Planned launches 11,000-14,000 units (est.)
2016 CAPEX PHP16.3bn
Project PHP10.5 bn
Landbanking PHP5.8 bn
Landbank (Hectares)
Metro Manila 52.7
Outside Metro Manila 388.9
Land for Future Projects 441.5
Fame Residences, Mandaluyong City
Have 2 large-scale tourism projects –
Tagaytay Highlands and Pico de Loro
Tagaytay Highlands is an exclusive mountain
resort, golf club and residential complex
40 hectares Pico de Loro project is Phase 1 of
Hamilo Coast project, a premier and sustainable
leisure destination in Nasugbu, Batangas
Landbank of 559.8 hectares
Capital expenditure of PHP750 mn
Pico de Loro at Hamilo Coast
Construction of Woodridge Place’s Mahogany and Linden buildings
The Aspenhills Village Hall was completed November 2014
Completed Projects
Caters primarily to the burgeoning BPO
Industry
Have a GFA of almost 318,000 sqm for
5 completed towers
Target to increase GFA to almost 600,000
sqm by 2020
Have an available land bank of 88 hectares
TwoE-comCenter FiveE-comCenter
On-going Project
FourE-comCenter
Planned Project
ThreeE-comCenter
Is a state of the art and modern facility that is flexible for sports and
entertainment with 20,000 seating capacity
SM Prime plans to build an Arena in Seaside City Cebu
Radisson Blu Hotel
Park Inn Clark
SMX Convention Center
Operates with 5 hotels with over 1,150
rooms; 4 SMX Convention Centers, and
2 Megatrade Halls with over 36,000 sqm
of leasable space
Opened Park Inn by Radisson in Clark,
Pampanga with 154 rooms on December
2015
The 347-rooms Conrad Manila to open in
MOA Complex on June 2016
Pico Sands Hotel Park inn by Radisson
Conrad Manila
Increase acquisition of large-scale strategic landbank and develop more lifestyle cities
Leverage on world-class malls to anchor lifestyle city strategy
Optimize existing properties
Offer wide range of products in the residential segment
Continue the aggressive rollout of BPO office development
Maintain strong balance sheet, prudent risk & capital management and good governance
We are on schedule to hit our target of PHP32 bn income by 2018
The growth will be driven by malls and residential operations
A
A
E
(2013-2018)
(2013-2018)
2018
2015 A
2014 A
2013 A
MallsResidences
CommercialHotels & Convention
CentersPrimary Homes Leisure Homes
GFA: 10.6 Million sqm
(85% Phil + 15% China)
Launched Units: 139,628
Projects: 41
Launched Units: 2,500
Projects: 16
GFA: 0.46 Million sqm
No of Towers: 7
Rooms: 2,187
Projects: 10
+28%
in GFA
+69%
in units
+23%
in units
+44%
in GFA
+87%
in rooms
GFA: 8.3 Million sqm
(89% Phil + 11% China)
Launched Units: 89,065
Projects: 35
Launched Units: 2,035
Projects: 12
GFA: 0.32 Million sqm
No of Towers: 5
Rooms: 1,167
Projects: 5
+14%
in GFA
+28%
in units
0%
in units
+68%
in GFA
+15%
in rooms
GFA: 7.3 Million sqm
(89% Phil + 11% China)
Launched Units: 69,421
Projects: 25
Launched Units: 2,035
Projects: 12
GFA: 0.19 Million sqm
No of Towers: 4
Rooms: 1,015
Projects: 4
+4%
in GFA
+9%
in units
0%
in units
+27%
in GFA
+0%
in rooms
GFA: 7.0 Million sqm
(89% Phil + 11% China)
Launched Units: 63,892
Projects: 21
Launched Units: 2,035
Projects: 12
GFA: 0.15 Million sqm
No of Towers: 3
Rooms: 1,015
Projects: 4
SM Prime’s landbank is good for the next 5 to 7 years. Most of it will be for
malls and residential developments
Leisure projects are for medium term development
32
44
2
11
560
441
207
88
43%
34%
16%
7%
-
52
10
8
560
389
78
189
-
-
-
10
89 1,296 100% 70 1,216 10
We will spend an average of PHP60bn annually over 3 years to achieve our goal to
double the income by 2018
The CAPEX program will be funded by mostly borrowings and internal funds
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016 2017 2018
55%60% 57%
52%57%
38% 28% 30%
29%29%
5%7% 8%
15%12%
2% 5% 5% 5% 3%
Malls Residences Commercial Hotels and Convention Centers
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015 1Q2016
69% 65% 61% 61% 58% 59%
31% 35% 39% 39% 42% 41%
Debt to Equity*
Equity Debt Debt
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015 1Q2016
78%72% 68% 68%
62% 63%
22%28% 32% 32%
38% 37%
Net debt to equity**
Equity 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
Revenue from Malls comprise
60% of SMPH’s revenue, while
residences accounted for 32%
Rent from commercial office
spaces and MOA Arena make
up 5%
Hotels and Convention centers
take up the rest
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 1Q2016
53% 57% 59% 60% 60%
40% 35% 34% 32% 32%
4% 5% 4% 5% 5%
2% 3% 3% 3% 3%
Malls Residences Commercial Hotels and Convention Centers
Revenue Segment Contribution
More than 70% of the
consolidated net income are
recurring while the rest comes
from developmental income
Malls contribute the most
among key business units
The contribution from these
BUs should be sustained over
the medium term
Net Income Segment Contribution
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 1Q2016
64%70% 69% 69% 71%
31%25% 25% 23% 24%
5% 5% 4% 6% 5%
1% 2% 2%
Malls Residences Commercial Hotels and Conventions
Philippine Malls revenue (90% of total malls) jumped by 11% to PHP9.9bn in 1Q2015,
mostly driven by the 7% SSSg and additional shopping space of 1.2 m sqm (GFA) in the
past 2 years
Margins at 70% and 58% for EBITDA and Operating Income, respectively
Average mall occupancy of 91%
(In PHP billion) 1Q2016 1Q2015 % Chg
Revenues 9.9 8.9 11.2%
- Rent Income 8.3 7.4 12.5%
- Cinema Ticket Sales and Others 1.6 1.5 4.9%
EBITDA 6.9 6.2 11.9%
Operating Income 5.7 5.1 11.6%
China Malls revenue (10% of total malls) rose by almost 13% to PHP1,088mn due to
rising occupancy rate of newer malls while tenants on existing malls shift to
percentage of sales rental revenues
Occupancy level at 90% for the 6 operating malls including SM City Zibo
(In PHP million) 1Q2016 1Q2015 % Chg
Revenues 1,088 966 12.7%
- Rent Income 1,051 939 12.0%
- Others 37 27 38.4%
EBITDA 779 640 21.8%
Operating Income 554 436 27.1%
Residential group (32% of consolidated revenue) increased by over 4% to PHP5.8 bn
due to the higher construction accomplishments of SM Development Corporation
(SMDC) projects launched in 2013 to 2015
Gross profit margin improved to 47% from 46% while net income margin increase to
24% from 23%
(In PHP billion) 1Q2016 1Q2015 % Chg
Revenues 5.8 5.5 4.4%
EBITDA 1.7 1.7 -
Operating Income 1.6 1.6 0.3%
Commercial Properties Group revenue (5% of consolidated revenue) grew by 15%
to PHP902mn from PHP784mn, driven by the new office buildings – Cyber West
and FiveE-comCenter
ThreeE-Com and FourE-Com Centers are under construction and scheduled
for completion in 2017 and 2019, respectively
Aiming to reach almost 600k sqm of office space by 2020
(In PHP million) 1Q2016 1Q2015 % Chg
Revenues 902 784 15.0%
EBITDA 613 448 36.8%
Operating Income 474 305 55.3%
Hotels and Convention Centers revenue (3% of SM Prime’s consolidated revenue)
increased by 17% from PHP529mn to PHP618mn, attributed to higher occupancy
level
In 2015 SM Prime opened Park Inn by Radisson Clark in Pampanga
Conrad Manila is expected to open on June 2016
(In PHP million) 1Q2016 1Q2015 % Chg
Revenues 618 529 16.9%
EBITDA 162 197 -17.8%
Operating Income 91 116 -22.1%
(In PHP Million (except % data)As of December 2015
March 2016 % to Assets Dec 2015 % to Assets
Assets
Cash and cash equivalents 21,024 5% 25,870 6%
Available-for-sale investments 20,299 5% 20,332 5%
Receivables 31,841 7% 31,354 7%
Investment Properties 233,716 54% 230,340 53%
Land and development 42,906 10% 42,920 10%
Condominium and residential units for sale 7,633 2% 8,165 2%
Other Assets 76,148 18% 74,847 17%
Total Assets 433,567 100% 433,828 100%
Liabilities and Stockholders’ Equity
Interest bearing debt 150,145 35% 155,668 36%
Accounts payable and others 62,597 14% 62,317 14%
Total Liabilities 212,742 49% 217,986 50%
Equity Attribute to Parent 220,825 50% 215,842 50%
Continue to maintain a very conservative balance sheet
More than half of our assets are in the Investment properties (54%) while our interest
bearing debt accounts for only 35%
Cash flow will mostly come from malls and residential operations
Net gearing is equivalent to 37:63 in 1Q2016, well within the management target of
keeping 50:50 net debt to equity ratio
(In PHP millions) 1Q2016 2015 2014 2013 2012
Cash Flows from Operating Activities
Operating Income before Working Capital changes 10,355 36,362 33,872 30,020 26,865
Cash Generated from Operations 9,162 31,938 11,950 28,030 10,233
Cash flows from Investing Activities (7,309) (55,230) (29,693) (30,715) (20,528)
Cash Flows from Financing Activities (5,980) 14,015 30,797 12,709 17,907
Net Cash and Cash Equivalents (4,846) (9,375) 8,104 5,843 3,954
Cash and Cash Equivalents at Beginning of Year 25,870 35,245 27,142 21,299 17,345
Cash and Cash Equivalents at End of Year 21,024 25,870 35,245 27,142 21,299
Establish strong brand equity
Leading integrated real estate platform
with strong track record across full suite
of asset classes
World-class retail malls business, which
will anchor future 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
