SM Investments (SM) Investor presentation summary

Company overview and structure

• Operates as a leading conglomerate in the Philippines with core businesses in retail, property, and banking, and significant investments in logistics, energy, and other sectors.

• Holds dominant market positions: largest retailer, leading property developer, and top bank by assets.

• Maintains a nationwide footprint with thousands of retail outlets, malls, and bank branches across the country.

• Portfolio includes major stakes in BDO, Chinabank, SM Prime, and various high-growth ventures.

• Leadership team features seasoned executives with extensive industry and governance experience.

Financial performance and credit metrics

• Achieved resilient topline and earnings growth, with 2022-24 revenue CAGR of 8.8% and net income CAGR of 9.2%.

• Strong operating cash flows and prudent balance sheet support capex and debt servicing; interest coverage ratio improved to 7.5x in 2024.

• Leverage ratios on a downward trend, with net debt-to-EBITDA at 2.2x and net debt-to-equity at 0.5x by end-2024.

• Maintains robust credit metrics and a diversified debt maturity profile.

Retail, banking, and property segment highlights

• Retail: Largest footprint with 4,470 stores and PHP434.5bn revenue in 2024; over 80% of new stores outside Metro Manila.

• Banking: BDO and Chinabank lead in assets, loans, and deposits, with BDO posting PHP82bn net income and Chinabank PHP24.8bn in 2024.

• Property: SM Prime is the largest integrated property developer, with 87 malls in the Philippines, 8 in China, and a broad portfolio of residential, office, and hotel assets.