SM Investments : 1H 2023 Earnings Presentation

1H 2023 Earnings Briefing

August 9, 2023

SMIC 1H 2023 Consolidated Results

• Strong consumer sentiment on the back of a positive economic environment
• Conservative gearing and strong balance sheet maintained
• Portfolio investments contribute 10% of total earnings

Portfolio

Investments

SM Investments	1H 2023	Chg
Revenues	286.3	18%
Earnings	36.5	32%
Assets	1,507.8	2%
Net Debt:Total Equity	36 : 64
Figures in PHP B except percentages

10%

Retail

17%

Net Income 47%

Mix

26%Banking

Property

1

Banking - BDO

• Earnings momentum sustained
• 1H 2023 ROCE at 15.1%
• Improving asset quality
• • NPL ratio stable
  • NPL Cover at 174%
• Comfortable capital position

BDO	1H 2023	Chg
Net Income	35.2	47%
Net Interest Inc.	89.5	29%
Other Income	38.2	11%
Gross Loans	2,665.3	8%
Deposits	3,295.8	12%
NIM	4.65%
NPL Ratio	1.95%
CET 1	13.9%
CAR	15.0%
Figures in PHP B except percentages

2

Banking - China Bank

China Bank	1H 2023	Chg
Net Income	10.8	7%
Net Interest Inc.	25.5	16%
Other Income	1.7	-48%
Gross Loans	745.0	11%
Deposits	1,121.0	19%
NIM	4.23%
NPL Ratio	2.23%
CET 1	15.2%
CAR	16.1%
Figures in PHP B except percentages

• Growth driven by robust core business and maintained good asset quality ratios
• • NPL at 2.2%
  • NPL coverage at 122%
• Double digit ROE of 15.9%
• Cost-to-Incomeratio at 50.0% despite higher investments in technology and manpower
• Strong capital ratios

3

Retail

SM Retail	Revenue	Chg	NI	Chg
Total Retail	188.9	15%	8.4	21%
SM Store	48.2	27%	1.3	45%
Specialty	42.7	18%	3.4	29%
Food Group	110.3	10%	4.8	16%
Figures in PHP B except percentages

• Strong consumer demand boosted by macro environment improving inflation and record low unemployment
• Net income grew by 21% driven sales growth in Non-Food discretionary categories sales, both in SM Store and Specialty Stores
• Non-foodsales through other channels at 8.6%, led by Call-to-Deliver

4