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I. The Company

Company Profile

Key Business Units

Malls

Residential

Commercial

Hotels and Convention Centers

Key Strategies

Roadmap

Capex Program

II. Financial Highlights

9M2015 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$12.61bnMarket

Capitalization

PSE Stock Symbol SMPH

Market Capitalization PHP602bn

Outstanding Shares 28,879mn

Last Traded Price (3 February 2016)

Php20.85/share

► SM Supermalls

► SM Lifestyle and

Entertainment Inc.

► Family Entertainment

Center Inc.

Malls

► SM 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

► 56 Malls in the Philippines

► 6 Malls in China

► 8.3 million sqm total Gross Floor

Area

9M2015 Operating

Highlights

► Total Revenues of PHP30.9

billion grew by 9.5% from

9M2014

► Net Income of PHP10.8 billion

grew by 11.1% from 9M2014

► Total Investment Properties

amounted to PHP198.7 billion

Fast Facts

► 27 Condominium Projects

► 80,751 Condominium Units

(since 2003)

9M2015 Operating

Highlights

► Total Real Estate Revenues

of PHP16.6 billion grew by

4.1% from 9M2014

► Net Income of PHP3.8 billion

grew by 15.3% from 9M2014

► Total Assets amounted to

PHP107.8 billion

Fast Facts

► 5 Office Buildings

► 317,568 sqm total Gross

Floor Area

9M2015 Operating

Highlights

► Total Revenues of PHP2.5

billion increased by 18.8%

from 9M2014

► Net Income amounted to

PHP0.8 billion grew by 49.9%

from 9M2014

► Total Investment Properties

amounted to PHP26.4 billion

Fast Facts

► 5 Hotels

► 1,167 Hotel Rooms

► 4 Convention Centers and

2 Trade Halls

9M2015 Operating

Highlights

► Total Revenues of PHP1.7

billion grew by 24.8%

from 9M2014

► Net Income amounted to

PHP0.2 billion grew by 234.1%.

► Total Investment Properties

amounted to PHP8.7 billion

SM Prime is the largest mall operator/developer in the Philippines

Almost 50% of our mall space is in Metro

Manila followed by Luzon (34%),

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 94%

Serve as anchor for Lifestyle City

developments

Operating in China since 2001. It became part

of SM Prime in 2007

Contribute around 6% of the group’s revenue

and income

Continue to demonstrate consistent growth in

both revenues and net income

Combined GFA is almost 945,000 sqm, 12%

of the group’s 8.2m sqm GFA

Focuses on 2nd and 3rd tier city locations

Opening GFA (sqm)

2Q2016 SM Trece Martires81,218

2Q2016 SM San Jose Del Monte102,571

3Q2016 SM Cherry Congressional 12,056

4Q2016 SM East Ortigas 58,958

4Q2016 SM Cherry Antipolo 19,321

Expansions

2H2016 SM Calamba 49,936

2H2016 SM Naga 11,186

Total 335,246

Projection

End of 2016 Total Malls 61

GFA 7.6 mn sqm

Opening GFA (sqm)

2016 SMTianjin 540,000

Total 540,000

Projection

End of 2016 Total Malls 7

GFA 1.5 mn sqm

Data as of Feb 2016

Air Residences, Makati City

Cool Suites, Tagaytay City

Air Residences, Makati city

Operates under SMDC, a leading

condominium developer in Metro Manila

Accounts for 30% of the group’s revenue

11 projects (3 new projects; expansion of 8

existing projects) was launched this 2015

Have a land bank of 348.9 hectares, some of

which can be converted into mixed-use

developments

Projects Overview

Ready-for-Occupancy (RFO) Units 9M2015 4,109

Ongoing Construction (Unsold Units) 9M2015 13,465

Total Units Made Available since 2003 80,751

Planned launched in 2016 11,000-15000 units (est.)

Reservation Sales (value) 9M2015 PHP28.4 bn

Reservation Sales (units) 9M2015 10,297

2016 CAPEX PHP22.8 bn

Project PHP15.9 bn

Landbanking PHP6.9 bn

Landbank (Hectares) 9M2015

Metro Manila 52.7

Outside Metro Manila 296.3

Land for Future Projects 348.9

Air Residences, Makati 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

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

Have access to enlarged land bank and

balance sheet to accelerate growth

Have an available land bank of 529,000 sqm

TwoE-comCenter FiveE-comCenter

On-going Project

FourE-comCenter

Planned Project

ThreeE-comCenter

Is a state of the art and ultra 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

Radisson Blu Hotel Lobby

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 last December

2015

The 347-rooms Conrad Hotel in MOA

Complex to open in 1H2015

Pico Sands Hotel Park inn by Radisson

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 intend to double our income by 2018 to PHP32bn, based on our 5 year

roadmap

The growth will be driven by malls and residential units

A

A

E

(2013-2018)

(2013-2018)

We will spend almost PHP220bn over 3 years to achieve our goal to double the income

by 2018

We will maintain a very conservative gearing ratio despite the massive CAPEX program

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018

54.8% 51.8% 52.3%42.9% 46.4%

38.2%37.0% 36.6%

38.6%

45.0%

4.8%5.6% 6.9%

14.7%

6.5%

2.2% 5.7% 4.2% 3.8% 2.0%

Malls Residences Commercial Hotels and Convention Centers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 9M2015

69% 65% 61% 61% 58%

31% 35% 39% 39% 42%

Debt to Equity*

Equity Debt

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 9M2015

78%72% 68% 69%

62%

22%28% 32% 31%

38%

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

almost 60% of SMPH’s

revenue, while residential

revenue is 33%

Rent from commercial office

spaces make up 5% while

Hotels and Convention

centers take up the rest

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 9M2015

53% 57% 59% 59%

40% 35% 34% 33%

4% 5% 4% 5%

2% 3% 3% 3%

Malls Residences Commercial Hotels and Conventions

Revenue Segment Contribution

Almost 75% 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 9M2015

64%70% 69% 70%

31%25% 25% 24%

5% 5% 4% 5%1% 1%

Malls Residences Commercial Hotels and Conventions

Philippine Malls revenue (91% of total malls) grew by almost 10% to PHP27.9bn in

9M15, mostly driven by the 7% growth in same-store-sales and additional shopping

space of 652,000 sqm (GFA) in the past 2 years

Margins remain stable at 68% and 56% for EBITDA and Operating Income, respectively

Average mall occupancy of 94%, inclusive of new malls open in the past 2 years

(In PHP billion) 9M2015 9M2014 % Chg

Revenues 27.9 25.5 9.5%

- Rent Income 22.9 20.8 10.1%

- Cinema Ticket Sales and Others 5.0 4.7 7.2%

EBITDA 19.1 17.3 10.7%

Operating Income 15.8 14.2 11.5%

China Malls revenue (9% of total malls) grew by almost 10% to PHP2,932mn 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) 9M2015 9M2014 % Chg

Revenues 2,932 2,672 9.7%

- Rent Income 2,843 2,622 8.4%

- Others 89 50 78.9%

EBITDA 2,049 1,870 9.5%

Operating Income 1,428 1,202 18.8%

Residential revenue (33% of consolidated revenue) continue to show improvements,

following the 6.2% year-on-year growth

Reservation sales grew by 19% year-on-year to 10,297 units in the 9M2015 reflecting

a 22% increase in value worth PHP28.4 billion

Gross profit margin improved to 47% from 43% while net income margin increase to

17% from 12%

(In PHP billion) 9M2015 9M2014 % Chg

Revenues 17.2 16.2 6.2%

EBITDA 5.0 4.2 20.1%

Operating Income 4.8 4.0 21.0%

Commercial Properties Group revenue (5% of consolidated revenue) up by almost

19% from PHP2.1bn to PHP2.5bn, driven by the new office buildings – Cyber West

and FiveE-comCenter

Commercial Property Group has recently ground break ThreeE-com which is expected

to be completed in 2017

Aiming to reach almost 500k sqm of office space by 2018

(In PHP billion) 9M2015 9M2014 % Chg

Revenues 2.5 2.1 18.8%

EBITDA 1.5 1.2 28.1%

Operating Income 1.1 0.7 51.7%

Hotels and Convention Centers revenue (3% of SM Prime’s consolidated revenue),

increased by 24.8% from PHP1,750mn to PHP1,402mn, attributed to higher

occupancy level

For 2015 SM Prime will launch Park Inn by Radisson Clark in Pampanga and Conrad

Hotel Manila will be launched early next year

(In PHP million) 9M2015 9M2014 % Chg

Revenues 1,750 1,402 24.8%

EBITDA 531 332 60.0%

Operating Income 298 88 238.0%

(In PHP Million (except % data)As of September 2015

Sept 2015 % to Assets Dec 2014 % to Assets

Assets

Cash and cash equivalents 21,894 5% 35,245 10%

Available-for-sale investments 20,721 5% 29,672 8%

Receivables 30,348 7% 30,687 8%

Investment Properties 231,080 55% 202,181 52%

Land and development 41,803 10% 42,458 11%

Condominium and residential units for sale 10,326 2% 7,579 2%

Other Assets 61,433 15% 41,018 10%

Total Assets 417,725 100% 388,840 100%

Liabilities and Stockholders’ Equity

Interest bearing debt 147,704 70% 129,283 33%

Accounts payable and others 62,629 30% 60,469 16%

Total Liabilities 210,334 50% 189,752 49%

Equity Attribute to Parent 207,392 50% 199,088 51%

Cash is 5% of total assets, lower compared to 10% as of Dec 2014. The decline on

cash is attributed to the cash payment for Ortigas investment

Total assets grew by 7% in 9M15 from end 2014

Bulk of cash flow came from Malls and Residential units

Net gearing is equivalent to 38:62 in 9M2015, well within the management target of

keeping 50:50 net debt to equity ratio

(In PHP millions) 9M2015 2014 2013 2012

Cash Flows from Operating Activities

Operating Income before Working Capital changes 27,822 33,872 30,020 26,865

Cash Generated from Operations 26,371 11,950 28,030 10,233

Cash flows from Investing Activities (42,084) (29,693) (30,715) (20,528)

Cash Flows from Financing Activities 6,336 30,797 12,709 17,907

Net Cash and Cash Equivalents (13,351) 8,104 5,843 3,954

Cash and Cash Equivalents at Beginning of Year 35,245 27,142 21,299 17,345

Cash and Cash Equivalents at End of Year 21,894 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