Tag Archives: SM Investments Corporation

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PHILIPPINES: SM Investments Corporation announces key organizational changes

Pasay City, Philippines, 2017-Apr-27 — /EPR Retail News/ — The Board of Directors of SM Investments Corporation (SM) announced key organizational changes that will support the company’s next phase of growth.

The Board has already conferred upon Mr. Henry Sy, Sr. the role of Chairman Emeritus, in recognition of his role as the founder of SM and all of its core businesses. Mr. Sy, who is a multiawarded entrepreneur and philanthropist, opened the first ShoeMart store in 1958, a business now simply known as SM, and fostered it to become one of the largest holding companies in the country. SM has likewise evolved into a dynamic and highly synergistic group of businesses with market leading positions in retail, banking and property development as well as a growing portfolio of other investments that can capture the high growth opportunities in the emerging Philippine economy.

Board Changes

Mr. Jose T. Sio was appointed to succeed Mr. Sy as the Chairman of the Board. Mr. Sio, as SM’s Chief Financial Officer for 26 years, was highly instrumental in supporting the phenomenal growth of SM and its subsidiaries. He instilled strict financial discipline across all businesses that later helped the company achieve optimal results even as the whole group maintained a sound and stable financial position. Mr. Sio was a senior partner at Sycip Gorres Velayo & Co prior to joining SM on November 1990.

New members of the board include Mr. Frederic C. DyBuncio as Director and Mr. Alfredo Pascual as Independent Director replacing Mr. Ah Doo Lim who joined the Board in 2008 and has served the full term as an independent director.

Mr. DyBuncio brings with him a wealth of experience in banking where he spent over 20 years with JP Morgan Chase and its predecessor companies. He was assigned to various places apart from the Philippines such as New York, Seoul, Bangkok, and Hong Kong and held various executive positions where he gained substantial professional experience in the areas of credit, relationship management and origination, investment banking, capital markets, and general management.

Mr. Alfredo Pascual just completed his six-year term as President of the University of the Philippines (UP). Prior to his involvement in the academe, he worked at the Asian Development Bank (ADB) for 19 years in such positions as Director for Private Sector Operations, Director for Infrastructure Finance, and Advisor for Public-Private Partnership. Mr. Pascual was also among the pioneers in investment banking in the Philippines having held executive positions in State Investment House, Inc., First Metro Investment Corporation, Philippine Pacific Capital Corporation now known as RCBC Capital, and Bancom Development Corporation which eventually merged with Union Bank.

Management Appointment

Mr. DyBuncio will assume the role of President of SM Investments in place of Mr. Harley T. Sy who will remain as Executive Director of the Board. Mr. DyBuncio joined SM in 2011 as Senior Vice President and eventually as Executive Vice President handling the company’s portfolio investments. This portfolio has since grown to include Belle Corp., Atlas Mining, the Net Buildings, CityMalls, MyTown, and most recently, 2Go.

These changes affirm the continuing role of professionals in executing the larger vision of SM while further strengthening the group’s good governance and sustainability practices.

About SM Investments Corp.
SM is a leading Philippine company with investments in a dynamic and highly synergistic group of businesses with market leading positions in retail, banking and property development. It has a growing portfolio of complementary businesses that can potentially enhance group synergies, as well as other investments that offer stable cashflows with attractive financial returns while capturing the high growth opportunities in the emerging Philippine economy.

SM and its subsidiaries take on a progressive approach in business by promoting good corporate governance across the whole group and by effectively integrating its comprehensive sustainability programs to care for and nurture its host communities and the environment through SM Foundation, SM Cares and BDO Foundation.

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For further inquiries, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117

SOURCE: SM Investments Corporation

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Top awards for SM Investments Corporation at the 9th Annual Global Corporate Social Responsibility (CSR) Summit & Awards held in Malaysia

Pasay City, Philippines, 2017-Apr-21 — /EPR Retail News/ — SM Investments Corporation (SM) won two top awards at the 9th Annual Global Corporate Social Responsibility (CSR) Summit & Awards held in Malaysia on March 30 to 31.

SM was the only Philippine company that bagged two platinum awards for the categories Best Corporate Communications & Investor Relations and Best Governed & Most Transparent Company. This marked the second consecutive year that SM was recognized in the said categories.

The Global CSR Awards, organized by The Pinnacle Group International in Singapore, is touted as one of Asia’s most prestigious awards for Corporate Social Responsibility. The awards programme recognizes and honors companies for outstanding, innovative and world-class products, services, projects and programmes implemented in the past or present. These projects should demonstrate the company’s leadership, sincerity and on-going commitment in incorporating ethical values, compliance with legal requirements, and respect for individuals, communities and the environment in the way they do business.  The Good Governance Awards is a high profile international recognition award event held in conjunction with the Global CSR Summit to recognise companies and public institutions with the highest standards in governance, transparency and performance.

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SM Investments Corporation (SMIC) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SMIC is one of the more responsible companies in the country due to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SMIC’s retail operations enjoy a strong brand franchise consisting of THE SM STORE; a strong portfolio of leading specialty retailers including Ace Hardware, SM Appliances, Homeworld, Our Home, Toy Kingdom, Watsons and others; and its food retail chains, namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc., is one of the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SMIC’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s leading bank and in China Banking Corporation (China Bank), the sixth largest private bank. Combined, these two banks have a network of over 1,600 branches nationwide.

For more about SM, click here: www.sminvestments.com

SOURCE: SM Investments Corporation

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117

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PHILIPPINES: SM Investments Corporation acquires 34.5% stake in 2Go Group

Pasay City, Philippines, 2017-Apr-03 — /EPR Retail News/ — SM Investments Corporation (SMIC) completed the acquisition of a minority stake in 2Go Group via a 34.5% stake in its parent company. 2Go is the country’s largest integrated supply chain operator whose businesses include shipping, freight forwarding, warehousing, and express delivery services.

“We are pleased with this opportunity to invest in a fast growing, dynamic logistics business. It will benefit from, as well as contribute to the country’s economic progress especially as development spreads to the provinces” said Mr. Harley Sy, President of SMIC. Earlier this month when the company released its annual results, Mr. Sy said that the group is optimistic about broader regional growth with the government plans in infrastructure, agriculture and tourism.

About SM Investments Corporation

SM Investments Corporation (SMIC) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SMIC is one of the more responsible companies in the country due to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SMIC’s retail operations enjoy a strong brand franchise consisting of THE SM STORE; a strong portfolio of leading specialty retailers including Ace Hardware, SM Appliances, Homeworld, Our Home, Toy Kingdom, Watsons and others; and its food retail chains, namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc., is one of the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SMIC’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s leading bank and in China Banking Corporation (China Bank), the sixth largest private bank. Combined, these two banks have a network of over 1,600 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

Source: SM Investments Corporation

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PHILIPPINES: SM Investments Corporation honored with seven awards during the 12th Corporate Governance Asia Recognition Awards 2016

PHILIPPINES: SM Investments Corporation honored with seven awards during the 12th Corporate Governance Asia Recognition Awards 2016

 

Pasay City, Philippines, 2017-Mar-24 — /EPR Retail News/ — SM Investments Corporation (SM) and its subsidiaries received seven awards from Hong Kong-based publication Corporate Governance (CG) Asia during the 12th Corporate Governance Asia Recognition Awards 2016 organized by the magazine.

SM and its subsidiaries/ affiliates SM Prime Holdings, Inc. (SM Prime), BDO Unibank, Inc. (BDO) and China Banking Corporation (China Bank) were chosen as awardees from the Philippines.

CG Asia cited SM, SM Prime and BDO as “Icons on Corporate Governance” for the 11th, 6th and 12th year respectively. China Bank was named as Asia’s Outstanding Company on Corporate Governance for the second consecutive year.

The magazine also recognized SM President Harley T. Sy, BDO Chairperson Teresita T. Sy-Coson and China Bank Chairman Hans T. Sy with the “Asian Corporate Director Award”.

CG Asia seeks to recognize companies who have consistently made the honour rolls in its annual awards in the past 12 years by bestowing to them the highest accolade of Icons in Corporate Governance. This esteemed recognition belongs to the best of the best in corporate governance in Asia as they continue to uphold the best practices no matter what the business cycle is.

The Asian Corporate Director Recognition Awards acknowledge outstanding corporate directors from boards of public and private companies in Asia and have been leaders in guiding their boards and executive management in growing their companies and mantaining the ethics of their respective boards.

The multiple awards given were the following:
SMIC
Icon on Corporate Governance
Asian Corporate Director Award – Mr. Harley Sy

SM Prime
Icon on Corporate Governance

BDO
Icon on Corporate Governance
Asian Corporate Director Award – Ms. Teresita Sy-Coson

China Bank
Outstanding Company on Corporate Governance
Asian Corporate Director Award – Mr. Hans Sy
Corporate Governance Asia is now read by 14,000 of the most important companies in Asia and provides incisive editorial content with extensive coverage on the latest and current developments, legislation, case studies and various analyses relating to corporate governance practices in Asia.

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

Source: SM Investments Corporation

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PHILIPPINES: SM Investments Corporation announces an 8% growth in net income to PHP31.2 billion in 2016

Pasay City, Philippines, 2017-Mar-02 — /EPR Retail News/ — SM Investments Corporation (SM) reported an 8% growth in net income to PHP31.2 billion in 2016. Property accounted for 39% of total earnings, with banks comprising 37% and retail 24%.

“Our core businesses performed well and continue to grow in line with the country’s strong economic development. We are optimistic about continued development and that government plans for infrastructure, agriculture and tourism in particular will enable broader regional growth. SM continues to prioritize regional investment and our nationwide expansion plans are focused on effective execution,” SM President Harley T. Sy said.

SM’s consolidated revenues grew 9% to PHP362.8 billion for the period, up from PHP332.8 billion in 2015. This was driven by an 8% increase in retail revenues and a 12% growth in property revenues.

Retail

Operations under SM Retail Inc., which consist of non-food (THE SM STORE and specialty stores) and food stores (SM Markets), reported sustained growth in total revenues of 8% to PHP276.5 billion, while net income grew 7% to PHP10.6 billion from PHP9.9 billion the previous year.

Early in 2016, SM announced the merger of SM Retail with several leading specialty retail stores with over 1,400 outlets. The merger received final approval from the Securities and Exchange Commission on 7 July 2016. The specialty stores added 153 stores nationwide last year.

“Following the retail merger last year, the performance of our specialty retail has been boosted by discretionary spending, especially in areas such as home furnishings and do-it-yourself goods, tracking the strong consumption and overall growth of the economy,” Mr. Sy added.

For its part, THE SM STORE opened four stores in SM San Jose Del Monte in Bulacan, SM Trece Martires and SM Molino in Cavite and SM East Ortigas in Pasig. Total gross selling areas of all 57 department stores stood at 0.75 million square meters.

The food group, which includes SM Markets (SM Supermarket, SM Hypermarket and Savemore) and WalterMart, continued to expand mostly in provincial areas in 2016. The group added 33 new stores, most of which are stand-alone Savemore stores. SM’s food group continues to expand in various regions of the country with a multi-format growth strategy to address the lack of organized retail.

At end-December 2016, SM Retail had a total of 2,110 outlets, comprising 57 THE SM STORES, 1,556 specialty retail outlets, 48 SM Supermarkets, 44 SM Hypermarkets, and 156 Savemore, 39 WalterMart and 210 Alfamart stores.

Property

SM Prime Holdings, Inc., SM’s property holding firm, said its recurring net income grew 14% in 2016 to PHP23.8 billion. Consolidated revenues grew 12% to PHP79.8 billion in 2016.  Revenues of its mall business, which includes rentals, cinema and event ticket sales and other revenues, grew 9% to PHP48.6 billion due to added retail spaces in the last two years.

To date, SM Prime has 60 shopping malls in the Philippines (7.7 million sqm GFA) and seven in China (1.3 million sqm GFA) with the recent addition of the Tianjin mall.

The residential group, which consists of SM Development Corporation (SMDC), Highlands Prime and Costa del Hamilo among others, posted consolidated revenues of PHP25.4 billion, up 13%. The growth was largely due to higher sales take-up on ready for occupancy (RFO) units from projects such as Princeton, M Place and Mezza II in Quezon City and Jazz Residences in Makati. SMDC’s reservation sales grew 18% to PHP46.7 billion in 2016, translating to a 15% improvement in unit sales to 16,320 units.

Consolidated revenues of SM Prime’s Commercial Properties Group rose 32% to PHP2.7 billion mainly from the rental revenues from the newly opened FiveEcomCenter that is almost 100% occupied.

SM Prime’s Hotels and Convention Centers posted 32% growth in revenues to PHP3.2 billion largely due to improved occupancy rates and the opening of Park Inn Clark in December 2015 and Conrad Manila in June 2016.

Banking

BDO Unibank, Inc. posted a net income of PHP26.1 billion in 2016. Net interest income grew by 15% to PHP65.6 billion, driven by the 16% growth in gross customer loans to PHP1.5 trillion. Deposits grew 15% to PHP1.9 trillion, primarily in the form of low-cost CASA deposits. Fee-based income was up 15% to PHP22.2 billion while insurance premiums contributed P8.0 billion, compensating for the decline in trading gains to PHP4.8 billion last year.

In January 2017, the Bank successfully completed its rights offer, raising a total of PHP60 billion (USD1.2 billion) in fresh capital. This will allow the Bank to sustain its medium-term growth targets and recent strategic initiatives that include ONB’s expansion and coverage of  underserved markets, refocusing efforts on the insurance business through BDO Life, and creating an online stock trading platform to serve a fast-growing market through BDO Nomura.  The new capital will also provide a comfortable buffer over higher minimum capital requirements with the staggered implementation of the Domestic Systemically Important Bank (DSIB) surcharge.

China Banking Corporation (China Bank), meanwhile, reported net income growth of 15% to PHP6.4 bilion in 2016 on the back of sustained growth in core and fee-based businesses. Net interest income was up 11% to PHP16.7 billion while gross loans expanded 24% to PHP393.7 billion. Fee-based revenues improved 14% to PHP5.1 billion. Total deposits grew 23% to PHP541.6 billion underpinned by growth in checking and savings accounts by 21% to PHP276.4 billion.

China Bank issued the first tranche (PHP9.6 billion) of its PHP20 billion long-term negotiable certificates of time deposits (LTNCD) in 2016 to support its strategic initiatives and business expansion. Its investment house, China Banking Capital Corporation also put up a stock brokerage house, China Bank Securities Corporation and a special purpose company CBC Assets One (SPC), inc.

Balance Sheet

As of end 2016, total assets of SM grew 10% to PHP861.5 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 37% net debt to 63% equity.

In 2016, the parent firm raised PHP20 billion from its 7-year Series G retail bonds due in 2023.  The bond proceeds will be used to finance future investments and strategic acquisitions in SM’s core business segments, namely property, retail and financial services.

About SM Investments Corporation

SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM is one of the more responsible companies in the country due to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of THE SM STORE; a strong portfolio of leading specialty retailers including Ace Hardware, SM Appliances, Homeworld, Our Home, Toy Kingdom, Watsons and others; and its food retail chains, namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc., is one of the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s leading bank and in China Banking Corporation (China Bank), the sixth largest private bank. Combined, these two banks have a network of over 1,600 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

Source: SM Investments Corporation

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SM Investments Corporation reports consolidated net income growth of 11% for the first nine months of the year

Pasay City, Philippines, 2016-Nov-09 — /EPR Retail News/ — SM Investments Corporation (SM) reported an 11% growth in its consolidated net income to PHP22.0 billion for the first nine months of the year. Recurring net income, net of one-time items, grew 9%.  Consolidated revenues grew 9% to PHP252.4 billion for the period from PHP230.8 billion.

“Our core businesses are delivering solid growth in line with the investments we have made and against a background of stable economic fundamentals.  We are also encouraged by the performance of the recently merged specialty retail stores which delivered double digit topline growth.  The intention of the government program to invest heavily in nationwide infrastructure projects should help economic development and drive provincial growth outside Metro Manila which is where we are also directing our investments,” SM President Harley T. Sy said.

Earnings growth was driven by property 13%, banks 11% and retail 7%. For the first nine months, banks and property each accounted for 39% of consolidated earnings and retail 22%.

Retail
Retail operations under SM Retail Inc. reported sustained growth in total sales of 9% to PHP186.0 billion while net income grew 7% to PHP7.0 billion. Revenues from recently acquired specialty retailers grew 13%.

THE SM STORE opened two stores in SM San Jose Del Monte in Bulacan and in SM Trece Martires in Cavite. As of the nine-month period, the total gross selling areas of all 55 department stores stood at 0.7 million square meters.

The Food Retail Group pursued its aggressive expansion in both urban and rural communities nationwide, adding 15 mid-sized format Savemore stores, two SM Supermarkets, one SM Hypermarket and three WalterMart stores for a total of 277 stores. Meanwhile, Alfamart increased its number of stores to 187 stores as of end-September from 99 at the start of the year.

Early in the year, SM announced the merger of SM Retail with several leading specialty retail stores with over 1,400 outlets. The merger received final approval from the Securities and Exchange Commission on 7 July 2016. During the nine-month period, the specialty stores added 95 stores nationwide.

Banking
For the period, BDO Unibank posted a net income of PHP19.3 billion, up 10% as its lending, deposit-taking and fee-based businesses all delivered solid results. Net interest income grew by 16% to PHP48.4 billion, supported by 15% growth in customer loans to PHP1.4 trillion and 14% growth in deposits to PHP1.8 trillion. Fee-based income was up 15% to PHP16.0 billion.

China Banking Corporation reported net income growth of 31% to PHP4.8 bilion for the first nine months due to strong growth in its core and fee-based businesses. Net interest income was up 9% to PHP12.3 billion while net loans expanded 19% to PHP343.1 billion and fee-based revenues improved 42% to PHP4.2 billion.

Property
SM Prime Holdings, Inc. (SM Prime) reported recurring net income growth of 13% in the first nine months to PHP17.5 billion driven by growth in leasing and property sales. Consolidated revenues rose 11% to PHP57.8 billion.

Rental revenues grew 12% to PHP31.7 billion with mall and commercial leasing accounting for 96% of the total rental revenues.  Total mall revenues rose 9% to PHP35.2 billion with same-store growth averaging 7%. Total revenues from the commercial group registered a 44% growth to PHP1.9 billion.

SM Prime’s residential group, under SM Development Corp., recorded higher revenues by 10% to PHP18.7 billion and accounted for 32% of total revenues. Residential net income rose 15% to PHP4.3 billion.  Growth was largely driven by sales on ready for occupancy (RFO) units. SMDC’s reservation sales climbed 25% to PHP36.4 billion in sales value.

Revenues of the hotels and convention centers business grew by 23% in the first nine months of 2016 to PHP2.1 billion.

rong>Balance Sheet
As of end-September 2016, total assets of SM grew 9% to PHP813.5 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 39% net debt to 61% equity.

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM is one of the more responsible companies in the country due to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of THE SM STORE; a strong portfolio of leading specialty retailers including Ace Hardware, SM Appliances, Homeworld, Our Home, Toy Kingdom, Watsons and others; and its food retail chains, namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc., is one of the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s leading bank and in China Banking Corporation (China Bank), the sixth largest private bank. Combined, these two banks have a network of over 1,400 branches nationwide.

For more about SM, visit www.sminvestments.com

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117

Source: SM Investments Corporation

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Philippines: SM Investments Corporation announces that PhilRatings assigned a PRS Aaa rating to its proposed bond issue

Pasay City, Philippines, 2016-Sep-28 — /EPR Retail News/ — SM Investments Corporation announced that the Philippine Rating Services Corporation (PhilRatings) assigned a rating of PRS Aaa to SMIC’s proposed bond issue of P15.0 Billion, with an over subscription option of P5.0 Billion, for a maximum aggregate amount of P20.0 Billion. The bonds are part of the shelf offering of up to P50.0 Billion in bonds that SMIC plans to undertake in the next three years.

The rating for SMIC’s outstanding bonds amounting to P27.3 Billion was likewise maintained at PRS Aaa.

PhilRatings assigned a Stable outlook for the ratings for the proposed and outstanding bonds.

PRS Aaa is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong.

About SM Investments Corporation
SM Investments Corporation, founded by entrepreneur Henry Sy, Sr., is one of the country’s largest publicly listed companies with a sustainable group of businesses that thrives on synergies of its banking, property and retail operations. SM has grown into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of non-food under THE SM STORE and food under SM Markets comprising of SM Supermarket, SM Hypermarket, and Savemore and other food retail stores under Waltermart and Alfamart. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest bank and China Banking Corporation (China Bank), the seventh largest bank.

For more about SM, visit: www.sminvestments.com

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117

Source: SM Investments Corporation

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Philippines: SM Investments Corporation approved Fixed Rate Bond Program with principal amount of Php50 Billion

Pasay City, Philippines, 2016-Sep-22 — /EPR Retail News/ — SM Investments Corporation announced today (September 21, 2016) that its Board of Directors approved a Fixed Rate Bond Program with a principal amount of Php 50 Billion under the 3-year shelf registration facility of the Securities & Exchange Commission. Initial issuance under this program is expected later this year in the amount of Php 15 Billion with an over subscription option of up to Php 5 Billion.

The Board of Directors also authorized Management to negotiate and finalize the terms and conditions, including pricing, tenor and any increase in issuance amount.

About SM Investments Corporation

SM Investments Corporation, founded by entrepreneur Henry Sy, Sr., is one of the country’s largest publicly listed companies with a sustainable group of businesses that thrives on synergies of its banking, property and retail operations. SM has grown into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of non-food under THE SM STORE and food under SM Markets comprising of SM Supermarket, SM Hypermarket, and Savemore and other food retail stores under Waltermart and Alfamart. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest bank and China Banking Corporation (China Bank), the seventh largest bank.

For more about SM, visit: www.sminvestments.com

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117

Source: SM Investments Corporation

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SM Investments Corporation named one of the best managed companies by Hong Kong-based magazine Alpha Southeast Asia

SM Investments Corporation named one of the best managed companies by Hong Kong-based magazine Alpha Southeast Asia
SM Investments Corporation named one of the best managed companies by Hong Kong-based magazine Alpha Southeast Asia

 

Pasay City, Philippines, 2016-Sep-05 — /EPR Retail News/ — Hong Kong-based magazine Alpha Southeast Asia named SM Investments Corporation (SM) as one of the best managed companies in the country in a recent poll among investors and analysts in Southeast Asia.

SM bagged a total of four awards including Best Chief Finance Officer for SM Executive Vice President and CFO Jose T. Sio for the fifth consecutive year.

SM also clinched Most Organised Investor Relations for the sixth straight year and Best Senior Management IR Support for the fourth consecutive year. SM was cited for Strongest Adherence to Corporate Governance.

The awards were gathered from an annual poll conducted between February and June 2016 among 507 investors, pension funds, hedge funds, equity and fixed income brokers and analysts with investment interests in the Southeast Asia region. Listed-companies in the Philippines, Thailand, Singapore, Malaysia, and Indonesia were ranked according to investors’ perceptions of their performance in financial management, corporate governance, integrated reporting/ corporate social responsibility and investor relations’ strategy.

The awards presentation for the Philippine winners was held on September 1, 2016 at the Conrad Centennial Singapore.

Alpha Southeast Asia is a monthly magazine primarily written for institutional investors, asset and fund management companies in Hong Kong, Singapore, other parts of Asia, US, Europe and the Middle East. The magazine also has a strong following among the region’s largest local corporates.

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

Source: SM Investments Corporation

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PHILIPPINES: SM Investments Corporation records 11% consolidated net income growth for H1 2016

Pasay City, Philippines, 2016-Aug-05 — /EPR Retail News/ — SM Investments Corporation (SM) posted consolidated net income of PHP15.0 billion for the January to June period, a growth of 11% over last year.

Excluding extraordinary items, recurring income grew by 8%. Consolidated revenues rose 8.5% to PHP151.1 billion in the first half from PHP139.2 billion in the same period last year. “Our strong first half performance reflects continued economic growth, boosted in part by election spending. We continue to focus on cost efficiencies and operating margin improvements.

With the merger of our retail businesses we now cater to a much wider range of consumer needs and we look forward to benefiting from increasing consumer spending,” SM President Harley T. Sy said.

During the period, the property business contributed the most to consolidated net income at 41%. This was followed by banks with 38% and retail with 21%.

Retail
SM Retail reported sustained growth in total sales of 9% to PHP105.1 billion, while net income rose 14% to PHP3.5 billion. Net margin expanded to 3.4% from 3.2% twelve months ago. At end-June 2016, SM Retail had a total of 328 stores, comprising 55 THE SM STORES, 47 SM Supermarkets, 45 SM Hypermarkets, 147 Savemore stores and 34 WalterMart stores.

The Food Retail Group pursued its aggressive expansion in both urban and rural communities nationwide, adding 12 mid-sized format Savemore stores, two SM Supermarkets, one SM Hypermarket and two WalterMart stores. Meanwhile, Alfamart increased its number of stores to 146 as of end-June from 99 at the start of the year.

THE SM STORE opened two stores in SM San Jose Del Monte in Bulacan in April and in SM Trece Martires in Cavite in May. As of the first half, the total gross selling area of all 55 department stores stood at 729,722 sqm.

Early this year, SM announced the merger of SM Retail with Sy family-owned specialty store assets with over 1,400 outlets. The merger received final approval from the Securities and Exchange Commission on 7 July 2016. The merger is seen to create value and boost earnings given the strong competitive position of the specialty stores and their synergies with SM malls.

Property
SM Prime Holdings reported consolidated net income of PHP12.6 billion. Recurring net income increased by 12% year-on-year. Consolidated revenues reached PHP39.2 billion, an increase of 9% from PHP35.9 billion in the same period last year. Rental revenues from retail and commercial spaces accounted for 56% of consolidated revenues and grew 13% in the period to PHP22.0 billion.

During the first half, SM Prime opened SM San Jose Del Monte in Bulacan and SM Trece Martires in Cavite, bringing total Philippine operating malls to 58 with a GFA of almost 7.5 million sqm.

With an additional six malls in China, SM Prime’s total GFA is 8.5 million sqm. The company is expected to open two more malls this year, namely Cherry SM Congressional in Quezon City and SM City East Ortigas. It is also expanding SM Center Molino in Cavite and SM City San Pablo in Laguna this year.

The housing group, led by SM Development Corporation (SMDC), recorded a 6% increase in real estate sales to PHP13.0 billion. As a result, net income stood at PHP3.2 billion, up 7%.

Reservation sales rose by 18% to 8,091 units, translating to a 20% increment in sales value worth PHP22.6 billion from PHP18.8 billion. Reservation sales were largely generated from Shore 2 Residences, Coast Residences and S Residences in Pasay City.

For the rest of the year, SM Prime plans to launch additional 6,000 to 8,000 units in cities of Quezon, Pasay and Tagaytay and economic housing in the provinces of Bulacan, Cavite and Cabanatuan.

SM Prime also successfully opened the iconic Conrad Manila in the Mall of Asia Complex in June this year with 347 rooms. This brings the total hotels in the company’s portfolio to seven with a combined 1,510 rooms.

Banking
BDO Unibank, Inc. (BDO) recorded an increase by 13% in net income to PHP13.2 billion on broad-based improvement across the bank’s businesses and a one-time gain from the consolidation of BDO Life.

Net interest income grew 17% in the six-month period to PHP31.7 billion. Customer loan portfolio grew 21% to PHP1.4 trillion while CASA deposits advanced by 23%.

BDO recently secured final regulatory approval for the acquisition of full interest in Generali Pilipinas Life Assurance Corp. (renamed as BDO Life Assurance). This is part of refocusing efforts on the insurance business to solidify the bank’s presence in the middle income market.

The bank also announced an agreement with TPG Growth for the latter to acquire a 40% stake in BDO’s rural bank subsidiary One Network Bank (ONB). The collaborative partnership is seen accelerating ONB’s expansion and coverage of the underserved market segments.

China Banking Corporation reported net income growth of 30% to PHP3.3 bilion for the first half, driven by strong growth in its core and fee-based businesses.

Net interest income was up 7% to PHP8.0 billion on the back of higher volume of earning assets. Net loans expanded 12% year-on-year to PHP324.0 billion. The CASA to total deposits ratio stood at 51.7%.
>Balance Sheet As of end-June 2016, total assets of SM grew 7% to PHP770.2 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 39% net debt to 61% equity

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares. SM’s retail operations enjoy a strong brand franchise consisting of THE SM STORE and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores.

SM’s property arm, SM Prime Holdings, Inc., is among the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank). Combined, these two banks have a network of over 1,000 branches nationwide.

Contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117 www.sminvestments.com

Source: SM Investments Corporation

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SM Investments Corporation won awards from Hong Kong-based magazine Corporate Governance Asia

Pasay City, Philippines, 2016-Jun-29 — /EPR Retail News/ — SM Investments Corporation (SM) and its subsidiaries won awards from Hong Kong-based publication Corporate Governance Asia during the 6th Asian Excellence Recognition Awards 2016 organized by the magazine.

SM and its subsidiaries SM Prime Holdings, Inc. (SM Prime), BDO Unibank, Inc. and China Banking Corporation (China Bank) were chosen as awardees from the Philippines.

SM, SM Prime, BDO and China Bank were awarded Best Investor Relations Companies.  BDO Unibank Chaiperson Teresita T. Sy-Coson, SM Prime President Hans T. Sy, BDO President and Chief Executive Officer Nestor V. Tan and China Bank President and CEO Ricardo R. Chua were recipients of the Asia’s Best CEO awards.

Awards for Best CFO were given to Jose T.Sio, EVP and CFO of SM; Jeffrey Lim, EVP for SM Prime; Pedro M. Florescio III, BDO  EVP and Treasurer. Cited as Best IR Professionals were Corazon P. Guidote, Senior Vice President for Investor Relations at SM; Luis S. Reyes Jr., Senior Vice President for Investor Relations and Corporate Planning; and Alexander C. Escucha, Senior Vice President and Head of Investor and Corporate Relations.

The 6th Asian Excellence Recognition Awards recognize excellence in investor communications, business ethics, corporate social responsibility (CSR), environmental practices and financial performance. Recognition was given based on data that was submitted by companies and investors.

The awards highlighted the outstanding achievements of Chief Executive Officers or CEOs and Chief Finance Officers or CFOs in investor relations in both publicly-listed companies and in privately-owned entities, including state-owned and government-controlled enterprises in Asia.

“On behalf of SM Investments, we would like to thank Corporate Governance Asia for this recognition. This inspires us to work harder to address the needs of retail and institutional investors aligned with global corporate governance standards and a dynamic global landscape,” SM Senior Vice President for Investor Relations Corazon P. Guidote said.

The multiple awards given were the following:

SM Investments Corporation

Best Investor Relations Company (Philippines)

Asia’s Best CFO (Investor Relations)
Jose T. Sio, Executive Vice President and Chief Finance Officer

Best CSR

Best Investor Relations Professional (Philippines)
Corazon Guidote, SVP for Investor Relations

SM Prime Holdings Inc.

Best Investor Relations Company (Philippines)

Asia’s Best CEO (Investor Relations)
Hans T. Sy, President

Asia’ Best CFO (Investor Relations)
Jeffrey Lim, Executive Vice President

BDO Unibank, Inc.

Best Investor Relations Company (Philippines)

Asia’s Best CEO (Investor Relations)
Teresita T. Sy-Coson, Chairperson
Nestor V. Tan, President and CEO
Best CFO (Investor Relations)
Pedro Florescio III, EVP and Treasurer

Best Environmental Responsibility

Best Investor Relations Professional (Philippines)
Luis Reyes, Jr., SVP for Investor Relations and Corporate Planning

China Banking Corporation

Best Investor Relations Company (Philippines)

Asia’s Best CEO (Investor Relations)
Ricardo R. Chua, President and CEO
Best Investor Relations Professional (Philippines)
Alexander C. Escucha, SVP for Investor and Corporate Relations

Corporate Governance Asia is now read by 14,000 of the most important companies in Asia and provides incisive editorial content with extensive coverage on the latest and current developments, legislation’s, case studies and various analyses relating to corporate governance practices in Asia.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

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SM Investments Corporation won awards from Hong Kong-based magazine Corporate Governance Asia

SM Investments Corporation won awards from Hong Kong-based magazine Corporate Governance Asia

 

Source: SM

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PHILIPPINES: SM Investments Corporation releases its 2015 Environmental, Social and Governance Report

Pasay City, Philippines, 2016-May-02 — /EPR Retail News/ — SM Investments Corporation (SM), the country’s largest conglomerate, has reported significant progress in its sustainability practices which involves its operations, social development programs and environmental conservation efforts. These efforts are disclosed in SM’s 2015 Environmental, Social and Governance Report released on April 27 during the company’s Annual Stockholders’ Meeting.

Among its key initiatives in 2015, climate change adaptation became one of its top priorities, with the SM Group taking a leadership role in spearheading the United Nations Private Sector Alliance for Disaster Resilient Societies (UN ARISE) initiative in the country. SM and its subsidiaries signed the commitment, enjoining other Philippine companies to help raise awareness and to implement projects in disaster risk reduction. Mr. Hans T. Sy, President of property arm SM Prime Holdings, Inc. sits as the only Filipino in the 12-member board of UN Arise.

The SM group also showed progress in sustainable operations, particularly in the areas of energy efficiency, water management, waste management and greenhouse gas (GHG) emissions. In 2015 for instance, despite continued growth in its footprint to 7.3 million square meters in the Philippines, SM Supermalls consumed a monthly average of energy intensity of 41.5 MJ/sqm (megajoules per square meter), from 43.3 MJ/sqm in 2014. It also continued to recycle the water used in all SM Supermalls so 3.9 million cubic meters out of the 13.1 million cubic meters of water consumed in 2015 was reused. This is equivalent to the amount of water in over 1,500 Olympic-sized swimming pools. The SM malls also recycled and reused 38% of its solid waste materials. And given its various means to achieve energy efficiency, the malls prevented additional emissions of about 110,000 tonnes of CO2 (carbon dioxide).

Committed to social inclusion, SM works closely with communities through SM Foundation, SM Cares and BDO Foundation. The programs focus on education, healthcare, shelter, food security, disaster response and rehabilitation and care for persons with special needs. In 2015 alone, SM Foundation supported 1,500 college scholars, built eight public school buildings with 32 classrooms, conducted 114 medical missions, renovated and refurbished 14 health centers and conducted 20 farmers’ training programs.

SM Investments Corporation, for its part, turned over a nine-level building to the University of the Philippines (UP) Professional Schools at Bonifacio Global City in Taguig. The new building in the satellite campus spans a total floor area of 12,000 square meters and houses 29 classrooms three computer laboratories, learning commons, an auditorium, a moot court for your law students, a multi-purpose hall for various events, conference rooms, office spaces, and faculty lounges.

BDO Foundation, on the other hand, built nine school buildings with 32 classrooms. In addition, the foundation renovated eight health centers, built and donated 469 homes for displaced families and served 61,170 families in relief operations.

With respect to disaster rehabilitation and response, SM Cares turned over 200 homes to families that survived Typhoon Yolanda (Haiyan) in Concepcion Iloilo. This is the second SM Cares Village completed following the first village with 200 houses that was donated in Bogo, Cebu. SM Cares is nearing the completion of its target 1,000 homes for Yolanda victims with the turnover of another 400 homes in Tacloban in 2016, the area hardest hit by the typhoon. The fourth and last village in Ormoc, Leyte will also be turned over this year.

SM fosters the practices of good governance across the whole group by adhering to principles and policies that promote integrity, transparency and equal opportunity. SM has been voted one of the ten most aspired companies to work for in the country by Jobstreet in its 2015 Top Companies Report. In addition, it received various awards from both local and international award giving bodies highlighting the group’s commitment to good corporate governance.

The SM subsidiaries that have contributed to its ESG report are SM Retail Inc., SM Prime Holdings, Inc., BDO Unibank Inc. and China Banking Corporation. The said report is the company’s second group-wide ESG Report that adheres to global practices.

# # #

About SM Investments Corporation
SM Investments Corporation, founded by entrepreneur Henry Sy, Sr. is the country’s largest publicly listed holding company with a sustainable group of businesses that thrives on leadership, innovation and the synergies of its banking, property and retail operations. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of non-food under THE SM STORE and food under SM Markets consisting of SM Supermarket, SM Hypermarket, and Savemore and other food retail stores under Waltermart and Alfamart. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), one of the country’s largest private banks.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

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PHILIPPINES: SM Investments Corporation marks its 11th year of going public

Pasay City, Philippines, 2016-Mar-25 — Shares of SM Investments Corporation (SM) reached new heights, closing at PHP994.50 on Monday, March 21 and an intraday high of PHP1,006 per share as it marked its 11th year of going public. SM shares were listed on March 22, 2005 with a price of PHP183.14 per share, adusted for capital changes during the 11-year period.

“Investors acknowledge the SM growth story. It’s commitment to the Philippines is apparent with its retail, banking and property footprint constantly expanding and harnessing the opportunities and synergies across its business to deliver optimal results for the past 11 years,” Corazon P. Guidote, SM Senior Vice President for Investor Relations said.

In 2005, SM had total assets of PHP169.9 billion and a market capitalization of PHP127.2 billion. As of end 2015, SM’s assets are worth over PHP771 billion with a market capitalization of over PHP 693 billion as of March 21.

Revenues also accelerated in the last 11 years for an average growth of 17.15% per annum with net income showing an average growth of 12.49% each year.

SM recently announced the plan to merge its retail arm, SM Retail Inc. (SM Retail) with several related retail companies which operate leading local retail chains including Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company and several other specialty stores.

The combined entity will have 1,927 outlets and 2.4 million sqm of gross floor area across a diverse portfolio of food, household appliances, DIY, furniture, apparel, footwear, pharmaceuticals/cosmetics and specialty retailing stores. The portfolio will serve a wide range of Filipino consumer needs in both staple and discretionary goods categories and will continue to leverage extensive synergies across the SM group. Post-merger, SM will own 77.3% of the enlarged SM Retail Inc.

“Indeed, the story of SM has inspired and surprised many, ourselves included, as we witnessed its phenomenal growth from humble beginnings to what it has become today. SM is a story of leadership, innovation, commitment, focus and a collective effort to advance the great legacy that Mr. Henry Sy, Sr. built,” Jose T. Sio, SM Chief Finance Officer said during SM’s 10th listing anniversary last year.

# # #

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of The SM Store and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore , WalterMart and Alfamart stores. SM’s property arm, SM Prime Holdings, Inc., is among the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

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SM Investments Corporation wins two Anvil Awards for its Annual and ESG Reports

Pasay City, Philippines, 2016-Mar-04 — /EPR Retail News/ — SM Investments Corporation (SM) won two awards for its annual report and maiden Environmental Social and Governance (ESG) Reports during the Public Relations Society of the Philippines’ (PRSP) Gabi ng Parangal 51st Anvil Awards held recently.

SM’s first 2014 ESG report with the theme, “Working Together for a Sustainable Future”, earned a Gold Anvil Award for manifesting the company’s commitment to sustainability practices and for providing accurate disclosure and integrated reporting of its ESG policies. It is a group-wide report highlighting good governance, social development and environmental consciousness of SM companies such as SM Retail, SM Prime Holdings, and BDO Unibank. SM recognizes that adhering to ESG global best practices is a journey as global guidelines and the needs of SM’s stakeholders continue to evolve.

The 2014 Unified Annual Reports bagged a Silver Anvil Award for featuring inter-related themes of the company and its subsidiary on new opportunities for growth.

The 2014 Unified Annual Reports consist of the Annual Report of SM with the theme, “Pursuing New Opportunities for Growth” and that of SM Prime Holdings, Inc. that carried the theme, “Building New Opportunities for Growth”.

Dubbed as the “Oscars” of the public relations industry in the Philippines, the Anvil is presented to the outstanding public relations tools and programs that have met the high standards set for each category.  PR practitioners, industry communications specialists, academicians and business persons attended the event.

Read more about SM Investments’ 2014 Annual Report and ESG Report here: http://www.sminvestments.com/annual-reports

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com
SOURCE: SM Investments Corporation

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SM Investments Corporation wins two Anvil Awards for its Annual and ESG Reports

SM Investments Corporation wins two Anvil Awards for its Annual and ESG Reports

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SM Investments Corporation turns over new building to the University of the Philippines Professional Schools at Bonifacio Global City in Taguig

Pasay City, Philippines, 2016-Mar-02 — /EPR Retail News/ — SM Investments Corporation (SM) has turned over a nine-level building to the University of the Philippines (UP) Professional Schools at Bonifacio Global City in Taguig.

The new satellite campus spans a total floor area of 12,000 square meters  and houses 29 classrooms; three computer laboratories; a study area called a learning commons; faculty lounges; an auditorium; a moot court or a venue for simulated court proceedings for law students; a multipurpose hall; discussion rooms; conference rooms; office spaces; and an executive lounge.

“It is with great pride that we turn over today the Henry Sy Sr. Hall to the highly esteemed University of the Philippines here at BGC.  The building carries no less than my father’s name whose prime advocacy is education. He worked hard and sacrificed so much early in his life just to be able to receive formal education. He wants the same for every Filipino,” SM Prime Holdings, Inc. President Hans T. Sy said.

Post-graduate classes will be held at the new campus. The UP College of Law will offer an evening Juris Doctor program . The Cesar E. Virata School of Business will offer MBA and DBA classes starting in 2017. Other UP Diliman units that will be offering post-graduate classes at UP BGC include the College of Engineering; School of Statistics; School of Urban and Regional Planning; School of Labor and Industrial Relations; and the College of Architecture.

In 2014, SM inked a memorandum of agreement with UP for the construction of a professional schools building.

UP is SM’s long-time partner school in its nationwide college scholarship program under SM Foundation, inc. Through this program, SM has and continues to provide free college education to thousands of deserving  young people coming from financially challenged families. This program is also rooted in empowering the youth, giving them hope and honing their true potential while investing both in their future and that of the whole country.

# # #

About SM Investments
SM Investments Corporation is the country’s largest publicly listed holding company with a sustainable group of businesses that thrives on leadership, innovation and the synergistic operations in banking, property and retail.

SM steadily evolved and progressed from its humble beginnings as a modest shoe store in 1958 to one of today’s largest and most well-known Philippine corporations. It was listed on the Philippine Stock Exchange in 2005, and owns blue-chip listed firms SM Prime Holdings, BDO Unibank and China Banking Corporation.

SOURCE: SM Investments Corporation

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Henry Sy Sr. Hall at the University of the Philippines Campus in Taguig City

Henry Sy Sr. Hall at the University of the Philippines Campus in Taguig City

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Philippines: SM Investments Corporation approves merger of SM Retail Inc. with several related retail companies

Pasay City, Philippines, 2016-Feb-29 — /EPR Retail News/ — Today the Board of Directors of SM Investments Corporation (SM) approved the merger of its retail arm, SM Retail Inc. (SM Retail) with several related retail companies.

The related companies operate leading local retail chains including Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company, Sports Station and several other specialty stores. Together they operate 1,374 outlets and in 2015 delivered total revenues of PHP 53 billion.

The merger will complement the existing retail portfolio of SM Retail Inc., which includes 53 SM department stores, 44 hypermarkets and 213 supermarkets as well as majority stakes in the local operations of Alfamart, Forever21, Crate & Barrel and other specialty and apparel retailers in addition to a minority stake in Uniqlo.

The combined entity will have 1,927 outlets and 2.4 million sqm of gross floor area across a diverse portfolio of food, household appliances, DIY, furniture, apparel, footwear, pharmaceuticals/cosmetics and specialty retailing stores. The portfolio will serve a wide range of Filipino consumer needs in both staple and discretionary goods categories and will continue to leverage extensive synergies across the SM group.

Post-merger, SM will own 77.3% of the enlarged SM Retail Inc.

“The merger adds both greater diversity and a more extensive footprint to SM Retail’s portfolio and is consistent with our goal of simplifying our corporate structure. It is similar to the consolidation we undertook in 2013 to create our large-scale, mixed-use property business. As a result, SM Retail will be even better positioned to address the growing needs of Filipino consumers and we expect the merger to be accretive to SM Retail earnings in future years,” said Harley Sy, President of SM.

# # #

About SM Investments Corporation
SM Investments Corporation, founded by entrepreneur Henry Sy, Sr. is the country’s largest publicly listed holding company with a sustainable group of businesses that thrives on leadership, innovation and the synergies of its banking, property and retail operations. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of non-food under THE SM STORE and food under SM Markets consisting of SM Supermarket, SM Hypermarket, and Savemore as well as Waltermart and Alfamart stores. SM’s property arm, SM Prime Holdings, Inc., is among the largest integrated property developers in the Philippines with interests in malls, residences, offices, hotels and convention centers as well as tourism-related property development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest private bank. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

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Philippines: SM Investments Corporation report 13% growth in recurring net income in 2015

Pasay City, Philippines, 2016-Feb-29 — /EPR Retail News/ — SM Investments Corporation (SM) reported a 13% growth in recurring net income in 2015. Consolidated net income stood at PHP28.4 billion in 2015, posting the same level as last year. Consolidated revenues grew 7% to PHP295.9 billion for the period.

“Our strong underlying earnings growth in 2015 was due to favorable domestic market conditions and improved efficiencies which helped us widen our margins particularly in retail and property,” SM President Harley T. Sy said.

SM’s underlying earnings increase was driven by a 17% growth in retail earnings, 14% growth in property recurring net income and 10% growth in bank net income. For 2015, banks accounted for 40% of SM’s consolidated earnings, property 38% and retail 22%.

Retail
Retail operations under SM Retail Inc., which consist of both food (SM Markets) and non-food (THE SM STORE), reported sustained growth in total sales of 7% to PHP211.4 billion, while net income rose 17% to PHP6.8 billion.

SM Markets, which consist of the brands SM Supermarket, SM Hypermarket and Savemore, continued to expand in both urban and rural communities in various parts of Luzon, Visayas and Mindanao. The group added 31 new stores, most of which are standalone Savemore stores.

SM Markets today follows a multi-format growth strategy to address the lack of organized retail in many parts of the country, largely diversifying from its previous strategy of operating anchor stores in malls.

SM Markets also recently invested in the minimart business with Alfamart, a highly successful minimart operator in Indonesia, and forged partnerships with WalterMart and Citymalls to further facilitate its provincial growth. Acquisition of existing chains of stores is another part of its growth strategy, the latest of which was the acquisition of three stores of Cherry Foodarama.

Last year, THE SM STORE opened three stores in San Mateo, Rizal; Cabanatuan, Nueva Ecija and Seaside Mall in Cebu City. As of 2015, the total net selling area of all 53 SM STOREs stood at 471,000 sqm. In 2015, top British department store chain John Lewis opened its first shop-in-shop in SM Makati which offers a wide range of home products.  American home retailer Crate & Barrel also opened its flagship store in SM Makati last year.

At end-December 2015, SM Retail had a total of 310 stores, comprising 53 THE SM STORES, 45 SM Supermarkets, 44 SM Hypermarkets, 136 Savemore stores and 32 WalterMart stores.

Banking
BDO Unibank, Inc. (BDO) recorded net interest income growth of 11% to PHP57.0 billion in 2015, with net income up 10% to an all-time high of PHP25.0 billion.

Gross customer loans grew 17% to PHP1.3 trillion and total deposits rose by 12% to PHP1.7 trillion.

The year end results reflected the completion of BDO’s acquisition of One Network Bank, the largest rural bank in Mindanao, in July. ONB has 98 active branches. The acquisition of ONB expands the regional presence of BDO in the country, particularly in its target market in the southern Philippines and opens up business lines for BDO.

China Banking Corporation (China Bank) reported net interest grew 7% to PHP15.1 billion, with net income higher by 10% to PHP5.6 billion on the back of sustained growth in core business operations.

Property
SM Prime Holdings, Inc., SM’s property holding firm said its recurring net income grew 14% in 2015 to PHP20.9 billion. Consolidated net income increased 54% to PHP28.3 billion  which includes a PHP7.4 billion trading gain on marketable securities booked in the first quarter.

Consolidated revenues rose 8% to PHP71.5 billion last year. Rental revenues from malls and commercial spaces increased by 12% to PHP40.7 billion in the period. The housing group’s reservation sales grew by 12% to 14,390 units. For the period, the housing group’s net income increased 8% to PHP5.1 billion.

To date, SM Prime has a total of 56 Malls in the Philippines with total retail space of 7.3 million square meters. This includes SM Seaside City Cebu, SM Center Sangandaan, SM Cherry Shaw, SM City Cabanatuan, SM City San Mateo and SM Megacenter Cabanatuan. In China, SM Prime has six shopping malls with a GFA of 0.9 million sqm including the recently opened SM City Zibo. Taking into account both Philippine and China malls, SM Prime’s total retail space is at 8.3 million sqm.

SM Prime presently has 27 residential projects in the market, 25 of which are in Metro Manila and two in Tagaytay. For 2016, SM Development Corporation will launch between 11,000 to 14,000 units in Quezon City, Bicutan and Sucat in Paranaque, Las Piñas and Pasay at the Mall of Asia Complex. SM Prime is also set to launch new mixed-use developments in Bulacan, Pampanga and Cavite.

Currently, the Commercial Properties Group has five office buildings with an estimated gross floor area of 318,000 sqm. ThreeE-Com and FourE-Com Centers are under construction and scheduled for completion in 2017 and 2019, respectively. For hotels and convention centers, the 347-room Conrad Hotel Manila is expected to open in the second half 2016 which is seen to further enhance the value of the properties within the whole Mall of Asia (MoA) Complex.

Balance Sheet
As of end 2015, total assets of SM grew 8% to PHP771.2 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 36% net debt to 64% equity.

# # #

About SM Investments Corporation
SM Investments Corporation, founded by entrepreneur Henry Sy, Sr. is the country’s largest publicly listed holding company with a sustainable group of businesses that thrives on leadership, innovation and the synergies of its banking, property and retail operations. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of non-food under THE SM STORE and food under SM Markets consisting of SM Supermarket, SM Hypermarket, and Savemore as well as Waltermart and Alfamart stores. SM’s property arm, SM Prime Holdings, Inc., is among the largest integrated property developers in the Philippines with interests in malls, residences, offices, hotels and convention centers as well as tourism-related proprty development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest private bank. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

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SM Investments Corporation receives Platinum Award from Hong Kong-based magazine The Asset for the 7th Year

SM Investments Corporation receives Platinum Award from Hong Kong-based magazine The Asset for the 7th Year

SM SVP for Finance Franklin Gomez receives The Platinum Award for excellence in corporate governance, corporate social responsibility and investor relations on behalf of the company.

 

Pasay City, Philippines, 2015-12-21 — /EPR Retail News/ — SM Investments Corporation (SM) was cited anew by Hong Kong-based magazine The Asset as a winner of the Platinum Award, the highest award for excellence in corporate governance, corporate social responsibility and investor relations for seven years running. SM’s Senior Vice President for Finance Franklin Gomez received the awards on behalf of the company.

SM was also awarded as the Best Investor Relations Team, a new category this year. SM is the sole Philippine company awarded this category among only seven companies in the Asian region. SM’s Investor Relations department is headed by Senior Vice President Corazon P. Guidote. She is supported by a team of IR and communications professionals whose main goal is to address the requirements of both its major and minority shareholders through direct communications, mainstream and social media communications, domestic and international IR roadshows, conferences and forums. They reach out to as many investors as possible both equity and fixed income who have interest in the Philippines given that SM is widely considered by the investment community as an ideal proxy for investing in the country.

Attesting further to SM’s adherence to global standards across the group, its major listed subsidiaries SM Prime Holdings Inc. and BDO Unibank, Inc. likewise received the Platinum Award. BDO and SM Prime have also been excellence awardees of The Asset for the past six years.

The Asset’s Corporate Awards, which focuses on Excellence in Governance, CSR and Investor Relations, uses a rigorous research process for benchmarking the region’s listed companies. The criteria used to assess the companies include a range of metrics on financial performance, which are also a proxy for gauging management acumen. The purpose of the awards is to recognize the importance of sustainable growth where companies are also evaluated according to the quality of their corporate governance, social responsibility, environmental responsibility and investor relations. A total of 56 companies were awarded on December 15 at the Four Seasons Hotel in Hong Kong.

# # #

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

SOURCE: SM Investments Corporation

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SM Vice Chair Teresita Sy-Coson awarded for her vision and management excellence by BizNews Asia

Pasay City, Philippines, 2015-12-11 — /EPR Retail News/ — SM Investments Corporation (SM) Vice Chair Teresita Sy-Coson was awarded for her vision and management excellence by BizNews Asia, one of the country’s most influential weekly business and news magazines.

BizNews Asia’s citation for Sy-Coson stated that she led SM and BDO Unibank, Inc. into becoming “huge, profitable, market dominant and pace setting conglomerates without losing their focus on consumer welfare and the betterment of society and the environment.”

Sy-Coson is the Chair of BDO. Aside from SM and BDO, she has been been largely involved in the development of Shoemart, the retail business which her father, Henry Sy, Sr. built.

BizNewsAsia was founded in 2001 by Antonio “Tony” Lopez, one of the most senior, multi-awarded, and experienced Asian journalists.  The magazine has a pass-on circulation of 350,000 readers.

The Entrepreneurship Excellence Awardees for vision and management also included: Ramon S. Ang, president and vice chairman of San Miguel Corp.; Felipe L. Gozon, chair and CEO, GMA Network, Inc.;  Edmund Gaisano Sr., chair, Gaisano Capital; Andrew Tan, chair-CEO, Alliance Global, Inc.; Manuel B. Villar Jr., chair, Vista Land; Edgar “Injap” Sia, chair-CEO, DoubleDragon Properties, Inc.; Amable R. Aguiluz V, founder, AMA Group of Companies; and Zenaida Tantoco, chair-CEO, Stores Specialists, Inc.

Shown in the photo are former President Fidel Ramos, SM’s Mrs. Coson and BizNews founder, chairman and president Tony Lopez.

SOURCE: SM Investments Corporation

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Photo courtesy of BizNews Asia

Photo courtesy of BizNews Asia

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Philippines: SM Investments Corporation announced 7% growth in consolidated net income for the first nine months of the year

Pasay City, Philippines, 2015-11-04 — /EPR Retail News/ — SM Investments Corporation (SM) reported a 7% growth in consolidated net income to PHP19.4 billion for the first nine months of the year. Excluding extraordinary items, recurring net income grew 12%. Consolidated revenues grew 7% to PHP206.2 billion for the period.

“Our strong results year-to-date reflect our ongoing focus on delivering footprint expansion across the country and on driving cost competitiveness in all our core businesses,” SM President Harley T. Sy said.

SM’s underlying earnings expansion was driven by 21% growth in retail earnings and 15% growth in property recurring net income. For the first nine months, banks accounted for 40% of SM’s consolidated earnings, property 39% and retail 21%.

Retail
Retail operations under SM Retail Inc. reported sustained growth in total sales of 6.5% to PHP145.3 billion, while net income rose 21% to PHP4.6 billion.

The SM Food Retail Group (SM Markets) continued to expand in both urban and rural communities in various parts of Luzon, Visayas and Mindanao. The group added 20 new stores, most of which are standalone Savemore stores. From historically operating anchor stores based in malls, SM Markets today follows a multi-format growth strategy to address the lack of organized retail in many parts of the country. SM Markets also recently invested in the minimart business with Alfamart, a highly successful minimart operator in Indonesia, and forged partnerships with WalterMart and Citymalls to further facilitate its provincial growth. Acquisition of existing chains of stores is another part of its growth strategy, the latest of which was the acquisition of three stores of Cherry Foodarama.

THE SM STORE will maintain its strategy of growing as an anchor store in SM Malls which are targeting expansion in the provincial areas. THE SM STORE continues to be the leading player in the country’s department store business, enjoying a wide-reaching and loyal customer base. It competes on the basis of providing the widest assortment of products and services, complemented by well-designed stores.

At end-September 2015, SM Retail had a total of 294 stores, comprising 51 THE SM STORES, 41 SM Supermarkets, 43 SM Hypermarkets, 130 Savemore stores and 29 WalterMart stores.

As of the first nine months, the total gross selling area of all 51 SM STOREs stood at 682,997 sqm.

Banking
BDO Unibank, Inc. (BDO) recorded net interest income growth of 12% to PHP41.8 billion in the first nine months, with net income up 5% to PHP17.6 billion.

Gross customer loans grew 19% to PHP1.2 trillion and total deposits rose by 12% to PHP1.6 trillion.

The third quarter results reflect the completion of BDO’s acquisition of One Network Bank, the largest rural bank in Mindanao, in July, adding over PHP20 billion to BDO’s total loans and deposits.

Property
Consolidated net income of SM Prime Holdings, Inc. (SM Prime) increased 70% to PHP22.9 billion in the first nine months of 2015. Excluding PHP7.4 billion of one-time trading gains in the first quarter of 2015, recurring net income increased by 15% to PHP15.5 billion in the nine month period.

Consolidated revenues increased 9% to PHP52.2 billion in the period ended September 30. Rental revenues from retail and commercial spaces increased by 11% to PHP29.4 billion in the period. The housing group’s reservation sales grew by 19% to 10,297 units, reflecting a 22% increase in value to PHP28.4 billion from PHP23.3 billion in the same period last year.

Balance Sheet
As of end-September 2015, total assets of SM grew 7% to PHP735.5 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 38% net debt to 62% equity.

# # #

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of THE SM STORE and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc., is among the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest private bank. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

SOURCE: SM Investments Corporation

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Philippines: SM Investments Corporation with five awards from international magazine Alpha Southeast Asia

Pasay City, Philippines, 2015-9-3 — /EPR Retail News/ — SM Investments Corporation (SM) bagged five awards from international magazine Alpha Southeast Asia.

SM topped in three categories under the 5th Annual Southeast Asia’s Institutional Investor Awards for Corporates. These are Most Organised Investor Relations for the fifth year in a row; Best Senior Management Investor Relations Support; and Best Strategic Corporate Social Responsibility. SM was also named among the companies with the Most Consistent Dividend Policy.

SM’s Executive Vice President and Chief Financial Officer Mr. Jose T. Sio was likewise named Best Chief Finance Officer (CFO) in the Philippines for the fourth time in a row. Mr. Sio is known for his financial prudence while strongly supporting the phenomenal growth of the SM group of companies.

The awards presentation for the Philippine winners was held last September 1, 2015 at the Makati Shangri-La.

The awards is based on tallied votes among 520 investors and analysts across the region as well as the US and Europe. These included fund managers with investment interests in Southeast Asia, large institutional investors, insurance companies, pension funds, funds of hedge funds, private banks, equity and fixed income brokers as well as buy and sell-side analysts.

Alpha Southeast Asia is a monthly magazine primarily written for institutional investors, asset and fund management companies in Hong Kong, Singapore, other parts of Asia, US, Europe and the Middle East. The magazine also has a strong following among the region’s largest local corporates.

# # #

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

###

SM’s Executive Vice President and Chief Financial Officer Mr. Jose T. Sio (left) was named Best Chief Finance Officer (CFO) in the Philippines for the fourth time in a row by Alpha Southeast Asia magazine. Mr. Sio is known for his financial prudence while strongly supporting the phenomenal growth of the SM group of companies. With Mr. Sio is Siddiq Bazarwala, CEO and Publisher, Alpha Southeast Asia.

SM’s Executive Vice President and Chief Financial Officer Mr. Jose T. Sio (left) was named Best Chief Finance Officer (CFO) in the Philippines for the fourth time in a row by Alpha Southeast Asia magazine. Mr. Sio is known for his financial prudence while strongly supporting the phenomenal growth of the SM group of companies. With Mr. Sio is Siddiq Bazarwala, CEO and Publisher, Alpha Southeast Asia.

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SM Investments Corporation reported consolidated net income of PHP13.5 billion for the January to June period, 10% increase over last year

Pasay City, Philippines, 2015-8-6— /EPR Retail News/ — SM Investments Corporation (SM) reported consolidated net income of PHP13.5 billion for the January to June period, an increase of 10% over last year. Excluding extraordinary items, recurring income grew by 13% during the first half of 2015.

Consolidated revenues were up 6% to PHP138.9 billion in the first half from P130.9 billion in the same period last year.

“Our core businesses continue to deliver good revenue and earnings growth. Earnings growth in Property is now in the mid teens, in line with our medium term goals. The Retail Group maintained its pace through organic growth and store expansion despite its already significant size and intense competition. Our focus on costs across the group resulted in improved operating margins. While we are pleased with the results so far, we are keeping our eyes on the challenges ahead,” SM President Harley T. Sy said.

Property led the growth, increasing its share of consolidated net income to 42%. This was followed by the banks with 38% and retail with 20%.

Property
SM Prime Holdings, Inc. registered consolidated net income of PHP18.7 billion, up 90% compared with PHP9.8 billion in the same period last year. Excluding one-time trading gains on the sale of marketable securities, recurring net income was up 15% to PHP11.2 billion year-on-year.

Consolidated revenues reached PHP35.9 billion, an increase of 8% from PHP33.3 billion in the same period last year. Rental revenues from retail and commercial spaces accounted for 54% of consolidated revenues and grew 10% in the period to PHP19.4 billion, driven by new malls, offices and the expansion of shopping spaces in existing malls in 2013 and 2014. Same store rental stood at 7%.

In the first half of 2015, SM Prime opened SM Megacenter Cabanatuan and SM City San Mateo bringing the total Philippine operating malls to 52 with a GFA of almost 6.6 million sqm.

For the rest of the year, SM Prime is set to open one mall in Metro Manila, SM Center Sangandaan in Caloocan, and two malls outside Metro Manila, namely SM City Cabanatuan in Nueva Ecija and SM Seaside City Cebu. The company is also expanding two existing malls, SM City Lipa in Batangas and SM City Iloilo.

The housing group, led by SM Development Corporation (SMDC), recorded a 3% increase in real estate sales to PHP12.3 billion. As a result, net income stood at PHP3.0 billion, up 8%. Growth in the residential segment was largely due to higher sales take-up and construction accomplishments of projects launched in 2010 to 2013.

Consolidated costs on real estate of the housing group improved to PHP6.7 billion from PHP6.8 billion mainly on improving cost efficiencies, tighter monitoring and control of construction costs since 2012. This boosted gross profit margin on real estate sales to 46% from 43% in the first half of 2015 and net income margin to 24% from 23% for the same period.

For 2015, SMDC will launch at least five new condominiums with about 12,000-15,000 units in total.

In the commercial office space, SM Prime recently launched SM Cyberwest in Quezon City and unveiled FiveE-comCenter at the MOA Complex which is already fully occupied.

For hotels and convention centers, Conrad Manila in the Mall of Asia Complex in Pasay and Park Inn by Radisson Clark in Pampanga are expected to open in the last quarter of 2015.

Banking
BDO Unibank, Inc. (BDO) recorded net income of PHP11.7 billion on the sustained growth in the bank’s lending and deposit-taking businesses, notable gains from fee-based and treasury activities and managed operating expenses.

Net interest income grew 10% in the six-month period to PHP27.1 billion. Customer loan portfolio grew 16% to PHP1.1 trillion while CASA deposits advanced 17%.

Further strengthening its platform to serve a fast growing market, BDO signed an agreement with Nomura Holdings, Inc. for a joint investment in PCIB Securities. The joint venture will initially provide online trading services for local stocks to individual investors and eventually expand its services to include cross-border investment opportunities to a broader range of investors. The transaction is still subject to relevant regulatory approvals.

BDO has also succesfully completed its acquisition of One Network Bank, the largest rural bank in Mindanao.

China Banking Corporation reported net income growth of 14% to PHP2.5 bilion for the first half, driven by strong growth in its core businesses.

Net interest income was up 9% to PHP7.4 billion on the back of higher loans volume and lower interest expense. Net loans expanded 10% year-on-year to P289.3 billion. The CASA to total deposits ratio stood at 51%.

Retail Operations
Retail operations under SM Retail reported sustained growth in total sales of 6% to PHP96.7 billion, while net income rose 13% to PHP3.1 billion.

SM’s food retail business continued to expand in both urban and rural communities, adding 20 new stores in various parts of Luzon, Visayas and Mindanao.

At end-June 2015, SM Retail had a total of 289 stores, comprising 51 THE SM STORES, 41 SM Supermarkets, 43 SM Hypermarkets, 127 Savemore stores and 27 WalterMart stores.

SM Retail is finalizing the acquisition of three stores of Cherry Foodarama located in Mandaluyong, Quezon City, and Antipolo.

Meanwhile, Alfamart has increased its number of stores to 50 as of end-June.

For its part, THE SM STORE opened its 51st store in San Mateo Rizal. As of the first half, the total gross selling area of all 51 SM STOREs stood at over 683,000 sqm.

International retail chain Crate & Barrel, specializing in houseware and furniture, opened its flagship store at THE SM STORE Annex in Makati in July. Spanning 2,800 sqm, the new store is one of the largest in the Philippines after its stores in Mega Fashion Hall at SM Megamall in Mandaluyong City and in SM Aura in Taguig.

Balance Sheet
As of end-June 2015, total assets of SM grew 7% to PHP721 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 38% net debt to 62% equity.

# # #

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of THE SM STORE and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc., is among the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest private bank. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

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SM Investments Corporation bags five awards from Alpha Southeast Asia magazine

Pasay City, Philippines, 2015-7-23 — /EPR Retail News/ — SM Investments Corporation (SM) bagged five awards from Alpha Southeast Asia magazine based on a poll of investors.

SM topped four categories under the 5th Annual Southeast Asia’s Institutional Investor Awards for Corporates. These are Most Organised Investor Relations for the fifth year in a row; Best Senior Management Investor Relations Support; Best Strategic Corporate Social Responsibility. SM was also named among the companies with the Most Consistent Dividend Policy.

SM’s Executive Vice President and Chief Financial Officer Mr. Jose T. Sio was likewise named Best Chief Finance Officer (CFO) in the Philippines for the fourth time in a row. Mr. Sio is known for his financial prudence while strongly supporting the phenomenal growth of the SM group of companies.

Mr. Sio is a certified public accountant with a master’s degree in Business Administration from New York University. He was a senior partner at Sycip Gorres Velayo & Co. prior to joining SM in November 1990.

“We are grateful for this recognition by Alpha Southeast Asia which continues to inspire us to strive for excellence. We also thank our investors who continue to put their trust in the company,” SM EVP and CFO Jose T. Sio said.

The awards presentation for the Philippine winners will be held on September 1, 2015 at the Makati Shangri-La.

The poll is based on tallied votes among 520 investors and analysts across the region as well as the US and Europe. These included fund managers with investment interests in Southeast Asia, large institutional investors, insurance companies, pension funds, funds of hedge funds, private banks, equity and fixed income brokers as well as buy and sell-side analysts.

Alpha Southeast Asia is a monthly magazine primarily written for institutional investors, asset and fund management companies in Hong Kong, Singapore, other parts of Asia, US, Europe and the Middle East. The magazine also has a strong following among the region’s largest local corporates.

# # #

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

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SM Investments Corporation and its subsidiaries honored at Asia’s 5th Asian Excellence Recognition Awards 2015

Pasay City, Philippines, 2015-4-20 — /EPR Retail News/ — Philippine conglomerate SM Investments Corporation (SM) and its subsidiaries recently received awards from Hong Kong-based publication Corporate Governance Asia’s 5th Asian Excellence Recognition Awards 2015.

Under the CG Asian Excellence Awards, SM and its subsidiaries, SM Prime Holdings, Inc. (SM Prime), BDO Unibank, Inc. (BDO) and China Banking Corporation (Chinabank) were chosen as awardees from the Philippines. The awards recognize excellence in financial performance, investor relations and communications, business ethics, corporate social responsibility (CSR) and environmental practices.

The awards highlighted the outstanding achievements of Chief Executive Officers or CEOs and Chief Finance Officers or CFOs in investor relations in both publicly-listed companies and in privately-owned entities, including state-owned and government-controlled enterprises in Asia.

“On behalf of SM Investments, we would like to thank Corporate Governance Asia for these citations. It’s cause for us to strive harder to ensure we further meet the needs of our retail and institutional investors aligned with global corporate governance standards,” SM Senior Vice President for Investor Relations Corazon P. Guidote said.

Awarded Best Investor Relations Companies are SM, BDO, SM Prime and Chinabank. The awardees for Best CEO for Investor Relations are BDO Chairperson Teresita T. Sy-Coson and SM Prime President and CEO Hans T. Sy. Awards for Best CFO for Investor Relations were given to Jose T. Sio of SM, Jeffrey C. Lim of SM Prime and Pedro M. Florescio III of BDO. Cited as Best IR Professionals are Corazon P. Guidote of SM, Luis S. Reyes, Jr. of BDO and Alexander Escucha of Chinabank.

Investor relations play a crucial in today’s business environment. Practitioners are instrumental in providing timely updates of the latest information and business development to keep the shareholders and other stakeholders fully informed. They also represent minority investors to the company’s boards and senior management, becoming the minority’s voice.

SM and its subsidiaries have nurtured investor relations throughout the years by assembling a senior team of professionals with more mature and comprehensive perspectives that have the support of the principals and management. The awards gathered for these departments over the years are a testament to excellence in service, a pro-active relationship and a strategic and integrated approach to corporate governance through investor relations.

The multiple awards given were the following:

SM Investments Corporation
Best CSR
Best CFO (Investor Relations)-Jose T. Sio
Best IR Company (Philippines)
Best IR Professional (Philippines)-Corazon P. Guidote
Best Environmental Responsibility
Best Corporate Communications Team

BDO Unibank Inc
Best CEO (Investor Relations)-Teresita T. Sy-Coson
Best CSR
Best CFO (Investor Relations)-Pedro M. Florescio III
Best IR Company (Philippines)
Best IR Company Professional (Philippines)- Luis S. Reyes Jr
Best Environmental Responsibility
Best Corporate Communications Team

SM Prime Holdings
Best CEO (Investor Relations)-Hans T. Sy
Best CSR
Best CFO (Investor Relations)-Jeffrey C. Lim
Best IR Company (Philippines)
Best Environmental Responsibility

Chinabank
Best IR Company (Philippines)
Best IR Professional (Philippines)-Alexander Escucha

The accolades are based both on the scores from the data that was submitted by CG Asia’s readers and investors.

Corporate Governance Asia is now read by 14,000 of the most important companies in Asia and provides incisive editorial content with extensive coverage on the latest and current developments, legislation’s, case studies and various analyses relating to corporate governance practices in Asia.

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

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SM Investments Corporation and its subsidiaries honored at Asia’s 5th Asian Excellence Recognition Awards 2015

SM Senior Vice President for Investor Relations Corazon Guidote receives the award on behalf of SM from Corporate Governance Asia Director and Publisher Aldrin Monsod.

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SM Investments Corporation marked its 10th year as publicly-listed company in the Philippine Stock Exchange

Pasay City, Philippines, 2015-3-31 — /EPR Retail News/ — SM Investments Corporation (SM) today marked its 10th year as a publicly-listed company in the Philippine Stock Exchange.

SM listed on March 22, 2005 with an adjusted price of PHP 191 per share. As of March 26, SM closed at PHP888 apiece, representing a growth of 365%.

In his remarks during the anniversary ceremony, SM Chief Finance Officer Jose T. Sio said that the company’s growth has been tremendous over the last ten years.

“More compelling is how our operating companies in retail, property and banking have emerged to be market leaders in just ten years. Such leadership is backed by having one of the largest footprints in the country consisting of highly productive assets and delivering superior value, margins and returns. These assets have evolved to cater to more sophisticated lifestyles of our customers by providing a world-class look and feel, a sense of completeness and an exciting experience for every member of the family,” Mr. Sio said.

In 2005, SM had total assets of PHP153 billion and a market capitalization of PHP127 billion. Today, , SM’s assets are worth over PHP711 billion with a market capitalization of PHP732 billion. Its assets grew almost seven -fold, delivering an average annual growth of 21% over the last ten years. Market capitalization grew by 19% during the same period.

Revenues also accelerated in the last ten years for an average growth of 20.6% per annum with net income showing an average growth of 21.4 percent each year.

“Indeed, the story of SM has inspired and surprised many, ourselves included, as we witnessed its phenomenal growth from humble beginnings to what it has become today. SM is a story of leadership, innovation, commitment, focus and a collective effort to advance the great legacy that Mr. Henry Sy, Sr. built,” Mr. Sio further said.

# # #

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of The SM Store and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore , WalterMart and Alfamart stores. SM’s property arm, SM Prime Holdings, Inc., is among the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117

www.sminvestments.com

###

SM officials led by SM Executive Vice President and Chief Finance Officer Jose T. Sio (fifth from right) rang the bell on the local bourse to mark the company’s 10th year of listing as well as the opening of trades for the day. From left to right: Philippine Stock Exchange (PSE) Director Alejandro T. Yu; SM Senior Vice President (SVP) for Investor Relations Corazon P. Guidote; SM SVP for Corporate Services Elizabeth Anne C. Uychaco; SM SVP for Finance Franklin C. Gomez; SM SVP for Investments Portfolio Frederic C. DyBuncio; SM Independent Director Vicente S. Perez, Jr.; SM EVP and CFO Jose T. Sio; PSE Directors Edgardo G. Lacson, Eddie T. Gobing, Emmanuel O. Bautista and PSE Chief Operating Officer Roel A. Refran.

SM officials led by SM Executive Vice President and Chief Finance Officer Jose T. Sio (fifth from right) rang the bell on the local bourse to mark the company’s 10th year of listing as well as the opening of trades for the day. From left to right: Philippine Stock Exchange (PSE) Director Alejandro T. Yu; SM Senior Vice President (SVP) for Investor Relations Corazon P. Guidote; SM SVP for Corporate Services Elizabeth Anne C. Uychaco; SM SVP for Finance Franklin C. Gomez; SM SVP for Investments Portfolio Frederic C. DyBuncio; SM Independent Director Vicente S. Perez, Jr.; SM EVP and CFO Jose T. Sio; PSE Directors Edgardo G. Lacson, Eddie T. Gobing, Emmanuel O. Bautista and PSE Chief Operating Officer Roel A. Refran.

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SM Investments Corporation (SM) reports 14.4% increase in recurring net income

Pasay City, Philippines, 2015-3-5 — /EPR Retail News/ — SM Investments Corporation (SM) reported a record net income in 2014 of PHP28.4 billion. Excluding extraordinary items, recurring net income grew 14.4%.

SM’s underlying earnings growth was mainly driven by BDO Unibank, Inc., which posted a core income growth of 18%. Together with China Banking Corporation, banks accounted for 41% of SM’s consolidated net income in 2014. Property contributed 38% and retail 21%.

The record 2014 consolidated net income of PHP28.4 billion compares with PHP27.4 billion in 2013. These include exceptional items such as trading gains from the group’s banking businesses.

Consolidated revenues grew 9% to PHP275.7 billion in 2014 from PHP253.3 billion in 2013. This was the result of a good retail sales environment which also boosted rental revenues in SM’s property business.

The total assets of SM grew 12% in the past year to PHP711.9 billion. SM maintains a very healthy balance sheet with a conservative gearing ratio of 34% net debt to 66% equity.

SM raised PHP15 billion in May 2014 from a public offer of peso-denominated retail bonds with maturities of 7 and 10 years. The SM bonds were rated Aaa by Philippine Rating Services Corporation, the highest rating assigned by the credit rating firm.

In June 2014, SM issued a USD350 million 10-year senior unsecured bond at a fixed rate of 4.875% per annum, a landmark transaction marking the longest-dated USD bond issued by SM and the company’s fourth USD bond issuance since 2009. The issuance earned SM the Region’s Best Borrower Award from Hong Kong publication Finance Asia.

“The group’s strong underlying earnings growth of 14.4% in 2014 was the result of solid performance and ongoing expansion in all our three core businesses. During the year we raised additional capital and entered into several strong partnerships, accelerating our investments for growth and ensuring we expand in line with our continuing optimism about the economic prospects of the Philippines,” SM President Harley T. Sy said.

Banking
BDO Unibank, Inc. (BDO) recorded net income attributable to equity holders of the parent of PHP22.8 billion compared with PHP22.6 billion in 2014. BDO’s recurring income grew 18%, excluding one-off trading gains in 2013.

Net interest income grew 19% to PHP51.2 billion in 2014, mainly due to 20% growth in the bank’s customer loan business to PHP1.1 trillion. Meanwhile, total deposits registered PHP1.5 trillion, 11% higher than the previous year.

BDO’s total capital adequacy ratio (CAR) of 14.4% and common equity tier 1 (CET 1) ratio of 12.4% remain well above the Basel III regulatory minimums of 10% and 6% respectively.

BDO continues to be the largest bank in the Philippines in terms of total resources, loans and deposits and is the leader in investment and private banking.

Meanwhile, China Banking Corporation (China Bank) posted a full year consolidated net income of P5.11 billion in 2014 on the back of sustained growth in core business operations. This translates to a return on equity of 9.90% and return on assets of 1.12%.

China Bank’s net interest income grew 42% to P14.09 billion, largely due to earnings from loans and receivables. Total operating income reached P18.85 billion, up 25%.

Property
SM also drew strength from its property operations through SM Prime Holdings, Inc. which registered consolidated net income of PHP18.4 billion in 2014, up 13% on revenue growth of 11% to PHP66.2 billion.

SM Prime’s rental revenues rose 13% to PHP36.5 billion from PHP32.2 billion in 2013, mainly from new malls openings and expansions in 2013 and 2014, together with sustained same-store rental growth of 7%. SM Prime’s housing group recorded a 7% increase in real estate sales in 2014 to PHP22.2 billion, with reservation sales increasing 36.5% to PHP35.9 billion. Mall cinemas generated ticket sales of PHP4.3 billion, an increase of 14% during the period under review.

2014 marked a significant milestone as SM Prime opened its 50th mall in Angono, Rizal province, bringing its total gross floor area to 6.5 million sqm. SM Megamall became the country’s largest mall with a gross floor area of 484,373 sqm after opening its 101,005 sqm Mega Fashion Hall.

SM Prime continued its successful development of malls in China and plans to open one mall per year going forward. SM Prime’s sixth mall in China will be in Zibo, Shandong Province and its largest mall, spanning 540,000 sqm, will open in the Tianjin Binhai New Area. Currently SM Prime operates five malls in China with a total gross floor area of almost 800,000 sqm.

Retail Operations
Its retail operations under SM Retail Inc. sustained its growth with net income increasing by 3.3% to PHP5.9 billion while total sales rose 9.0% to PHP197.1 billion.

SM’s food retail business continued to expand in both urban and rural communities, adding 28 new stores in various parts of Luzon, Visayas and Mindanao. SM Retail forged strong partnerships with local and foreign players to accelerate its expansion program, growing its community mall supermarket presence through relationships with CityMalls and WalterMart and developing small format mini-marts in conjunction with Alfamart.

In the department store business, the SM Store added new locations in Cauayan, Isabela and Cabanatuan, Nueva Ecija. The SM Store continued to innovate and enhance its store layout and design and to introduce new brands to its merchandise mix. In the last few years, SM has introduced fashion brands such as Forever 21, Uniqlo, Sfera, Suite Blanco, Josef and other lifestyle brands such as Uno de 50 and Crate and Barrel.

At end 2014, SM Retail had a total of 269 stores, comprising 50 SM Stores, 40 SM Supermarkets, 42 SM Hypermarkets, 113 Savemore stores and 24 WalterMart stores.

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of The SM Store and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc., is among the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

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SM Investments Corporation Chairman Henry Sy, Sr. awarded a Lifetime Achievement Award by CNBC at the St Regis hotel in Singapore

Pasay City, Philippines, 2014-11-12— /EPR Retail News/ — Henry Sy, Sr., Chairman of SM Investments Corporation (SM) and founder of the 56-year old company was awarded by top CNBC officials a prestigious Lifetime Achievement Award at a well-attended ceremony at the St Regis hotel in Singapore.

Known as the Father of Philippine Retail, Sy successfully built SM into the industry’s most dominant player in the country by adopting a highly progressive and innovative approach in expanding the retail business. With his vision, passion and hard work, Sy transformed his company, Shoemart, from a humble shoe retailing business, into SM, now a highly recognizable brand and icon owned by one of the Philippines’ largest conglomerates with interests and presence in retail, banking, and property.

SM Vice Chairperson Teresita Sy-Coson who received the award on behalf of her father said, “We are very happy that our father was recognized beyond the Philippines. What makes him happy, makes us also very happy. On behalf of my father and the rest of the family, thank you for this award.”

CNBC pioneered the Asia Business Leaders Awards (ABLA) in 2001 to recognize regional business leaders for their commitment to excellence, and to develop best practices and innovative strategies. ABLA distinguishes and honors leaders who have contributed and shaped the Asian economy, and are visionaries behind today’s outstanding businesses.

Winners of the Awards exemplify the best in leadership. They epitomize the core values of a successful leader which include: strength, innovation, ingenuity, knowledge and foresight – values that are believed to be imperative to carve out sustainable and successful businesses in the global economy.

Past winners of CNBC’s prestigious awards include Ratan Tata of India’s Tata Sons & Tata Trusts, Khun Dhanin Chearavanont, Chairman & CEO of Thailand’s C P Group, N R Narayana Murthy, Chairman of India’s Infosys and Gordon Wu, Chairman of Hong Kong’s Hopewell Holdings.

The corporate winners are judged by an independent panel comprising CNBC’s knowledge partner, The University of Chicago Booth School of Business, our research partner Development Dimensions International and CNBC management.

# # #

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of The SM Store and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc. is among the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:

Elizabeth S. Lacson
SM Investments Corporation
E-mail: elizabeth.lacson@sminvestments.com
www.sminvestments.com

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SM Vice Chairperson Teresita Sy-Coson receives the Lifetime Achievement award from CNBC on behalf of her father, Henry Sy, Sr.

SM Vice Chairperson Teresita Sy-Coson receives the Lifetime Achievement award from CNBC on behalf of her father, Henry Sy, Sr.

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SM Investments Corporation reported PHP18.2 billion net income for the first nine months of 2014

Pasay City, Philippines, 2014-11-6— /EPR Retail News/ — SM Investments Corporation (SM) reported a net income of PHP18.2 billion for the first nine months of 2014 from PHP18.6 billion during the same period last year. Consolidated revenues grew 7.7% to PHP193.2 billion in the period ended September 30 from PHP179.4 billion in the same period last year.

On a recurring basis, consolidated net income grew 13.7% to PHP18.1 billion from PHP15.9 billion. Underlying revenues also grew 9.4% to PHP192.9 billion from PHP176.3 billion. The reported net income in 2013 included exceptional items such as the trading gains in the Group’s banking businesses which boosted earnings of a number of banks during that period, among them BDO Unibank.

“We were able to sustain solid revenue growth across our core businesses of retail, banking and property. We also saw more robust real estate sales in the quarter with the launch of new projects. Our underlying profitability was driven by strong delivery of BDO and steady property contribution. In retail, gross margins have stabilized despite the intensifying competition, and we remain committed to expanding to new formats to tap the unserved and underserved markets,” SM President Harley T. Sy said.

Net Income Profile
Banks accounted for 41.9% of SM’s consolidated net income in the first nine months and property accounted for 39.1% while retail contributed 19.0%.

Banking
BDO Unibank, Inc. (BDO) recorded a net income (attributable to equity holders of the parent) of PHP16.7 billion compared with PHP18.2 billion in the first nine months of 2013 which reflected non-recurring trading gains. BDO’s first nine months core income represents a 20% growth.

Net interest income in the first nine months grew 21% and continued to be the main earnings driver at PHP 37.5 billion. This is primarily due to the bank’s customer loan business which expanded 22% to PHP1.0 trillion. Total deposits registered PHP1.4 trillion, 18% higher than previous year.

BDO’s total capital adequacy ratio (CAR) of 14.1% and common equity tier 1 (CET 1) ratio of 12.7% under the current Basel III environment are well above the regulatory minimum of 10% and 8.5% percent respectively.

Property
SM Prime Holdings, Inc. (SM Prime) reported consolidated net income increased 11.8% to PHP13.5 billion in the first nine months from PHP12.0 billion in the same period last year. Consolidated revenues grew 8.5% to PHP47.8 billion in the January to September period from PHP44.0 billion the previous year.

Rental revenues accounted for 55% of the consolidated revenues, and grew by 11.2% to PHP26.4 billion in 2014 from PHP23.8 billion in the same period in 2013.

Same-store rental growth was at 7.0% in the first nine months.

The increase in rental revenue was primarily due to the new and expanded malls in 2013 and 2014 such as SM Aura Premier in Taguig, SM City BF Paranaque, Mega Fashion Hall in SM Megamall in Mandaluyong and SM Cauayan in Cagayan Valley with a combined 527,000 sqm. Part of the growth was from TwoE-comCenter in Mall of Asia Complex which opened in 2013 and is now fully occupied.

SM Prime recently expanded its malls in Bacolod and in Lipa, Batangas which contributed a combined 295,811 sqm to the company’s gross floor plate. In terms of commercial spaces, SM Prime topped off FiveE-ComCenter, a 15- level office building at the Mall of Asia Complex with a gross floor area of 125,716 sqm and approximately 85,000 sqm of leasable area. It also broke ground on ThreeE-comCenter, also a 15-storey building featuring semi-circular twin towers with a total GFA of 111,727 sqm.

These new office buildings will continue to establish the E-comCenters as a premier address in the Mall of Asia Complex in Pasay City given its ideal location and master-planned environment.

In the third quarter, real estate sales grew 18.1% to PHP3.4 billion, reversing the cumulative decline in the previous quarters. SM Prime’s residential development arm, SM Development Corp. (SMDC) posted a 12% increase in revenues to PHP3.7 billion in the third quarter from PHP3.3 billion a year ago. The strong performance was driven by more projects nearing completion, particularly Grace, Shell and Breeze Residences.

As of September, real estate sales comprise 33% of total revenues at PHP16.0 billion, slightly higher than the previous year’s PHP15.8 billion. SM Prime expects improved results as more condominium projects are completed. Thus far SMDC has 22 projects.

Cinema ticket sales rose 20.6% to PHP3.3 billion in the nine-month period from PHP2.7 billion in 2013 largely due to the international and local blockbuster movies shown as well as the opening of digital cinemas at the new and expanded malls.

Amusement and other revenues increased by 20% to PHP2.1 billion during the nine-month period. This was due to the strong patronage of amusement rides and additional recreational facilities in various malls.

In the third quarter, SM Prime successfully issued PHP20 billion in retail bonds with tenors of 5.5
years, seven years and 10 years. The bonds fetched fixed interest rates of 5.1000%, 5.2006% and 5.7417% respectively.

Retail Operations
For the first nine months of 2014, SM Retail’s net income grew 5.0% to PHP3.8 billion. Total sales rose 9.2% to PHP136.4 billion. SM continues to be a market leader in the Philippines. The food retail business in particular is on an aggressive expansion mode to penetrate the informal sector and both urban and rural communities. In the department store business, the SM Store continues to introduce fresh concepts and its expansion is on track in line with the completion of new SM malls.

At the end of the three quarters of 2014, SM Retail opened 16 new stores, bringing the total to 255 stores, consisting of 49 SM Stores, 40 SM Supermarkets, 41 SM Hypermarkets, 102 Savemore stores and 23 WalterMart stores. This year, the SM Store opened in Cauayan, Isabela. In terms of food retail stores, SM opened 15 new stores in various parts of Luzon, Visayas and Mindanao.

SM Balance Sheet
The total assets of SM grew 8.3% in the first nine months to PHP685.6 billion. As of end-September 2014, SM maintains a healthy balance sheet with a gearing ratio of 40% net debt to 60% equity.

SM raised PHP15 billion in May 2014 from a public offer of peso-denominated retail bonds with maturity of seven and 10 years. The SM bonds are rated PRS Aaa by Philippine Rating Services Corporation, the highest rating assigned by the credit rating firm.

In June 2014, SM issued a USD350 million 10-year senior unsecured bond at a fixed rate of 4.875% per annum, a landmark transaction marking the longest-dated USD bond issued by SM and the company’s fourth USD bond issuance since 2009. The issuance earned SM the Region’s Best Borrower Award from Hong Kong publication Finance Asia.

Recently, SM, BDO and SM Prime were awarded Asia’s Icon on Corporate Governance while China Banking Corporation was cited as one of among Asia’s Outstanding Companies on Corporate Governance by Hong Kong magazine Corporate Governance Asia. SM Vice Chairperson and BDO Chairperson Teresita T. Sy-Coson and SM Prime President Hans T. Sy were cited for the Asian Corporate Director award.

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of The SM Store and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc. is among the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

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SM GRAPH SM Investments Corporation reported PHP18.2 billion net income for the first nine months of 2014

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SM Investments Corporation presented at the recent by-invitation only Forbes Global CEO Conference in Singapore

Teresita Sy-Coson, Vice-Chairperson of SM Investments Corporation Reiterates the Case for Investing in the Philippines

Pasay City, Philippines, 2014-11-3— /EPR Retail News/ — Proudly bearing the Philippine flag last October 29, 2014 in Singapore at the recent by-invitation only Forbes Global CEO Conference, SM Investments Corporation Vice Chairperson Teresita Sy-Coson made a case for investments in the Philippines and reiterated why the timing to be in the country is now more than ever.

Together with four other speakers in a panel, Ms. Coson helped provide insights on the proposition of wealth creation and what is in the horizon for tomorrow’s growth specifically for the Philippines. The other speakers were (Ms) Chew Gek Khim (Executive Chairman of The Straits Trading Company, Ltd. – Singapore), Yoshihiko Miyauchi (Senior Chairman, ORIX Corporation – Japan), Steven Pan (Executive Chairman, Regent Hotels and Resorts – Taiwan) and Gary Rieschel (Managing Partner, Qiming Venture Partners – Shanghai, PRC).

While the speakers expressed varying views about where to look for growth, manage returns, and how to manage risks and disruption to a thriving business economy, all were united in the perceived potential for Asia.

“We have been unnoticed and undervalued for quite some time; yet, in the last five years, our GDP has been growing at an average of 5%. With our current President, we have had an improvement in governance. Our population is young (between the ages of 21 to 35) with a huge earning capacity and a large number of overseas Filipino workers that consistently send remittances to their families. This in turn helps our economy,” Ms. Coson stressed.

“The Philippines is unique and it needs to be looked at with a long term view longer than a 2-to 3-year window. Given that we are a strong service-oriented economy, the BPO industry is a natural fit. As a domestic investor, I am very optimistic. There is a lot of liquidity for our size in the Philippines. If you look back at the country’s economic history, we have had steady growth,” she added.

Mr. Rieschel and Mr. Miyauchi agreed and mentioned the undervalued potential in the Philippines. They emphasized the country’s growth opportunities in their own discourse at the panel.

Moderator, Rich Karlgaard, Publisher of Forbes Magazine led the panel discussion on “Profit for Tomorrow’s Growth” and dissected the various innovative and opportunistic investments, and wealth strategies while also asking about the effects of technology and geo-political tensions in Asia.

# # #
About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of The SM Store and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc. is among the largest integrated property developers in Southeast Asia with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest. Combined, these two banks have a network of over 1,000 branches nationwide.

All told, in just 56 years, SM has become one of the largest market capitalized companies listed on the Philippine Stock Exchange, a testament to its ability to deliver steady high earnings and asset growth, sound financial management that creates value for all its stakeholders.
For further information, please contact:

Ms. Therese Necio-Ortega
Vice President for Corporate Communications
SM Investments Corporation
Email: therese.necio@sminvestments.com
Tel.No. (632) 857-0224

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Ms. Coson, Vice-Chairperson of SM Investments Corporation (far left) at the Forbes CEO panel

Ms. Coson, Vice-Chairperson of SM Investments Corporation (far left) at the Forbes CEO panel

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SM Investments Corporation cited as the Region’s Best Borrower in the Philippines based on research poll by Hong Kong magazine Finance Asia

Pasay City, Philippines, 2014-11-3— /EPR Retail News/ — SM Investments Corporation (SM) was cited as the Region’s Best Borrower in the Philippines based on a research poll by Hong Kong magazine Finance Asia.

The award was presented during the 2014 FinanceAsia Fixed Income Poll Awards dinner on October 29 in Singapore.

“We are pleased to accept this award which affirms SM’s initiatives towards promoting vibrancy in the capital markets. We are grateful to our investors for their confidence and support,” Jose T. Sio, Chief Finance Officer of SM said.

Last June, SM issued a USD350 million 10-year senior unsecured bond at a fixed rate of 4.875% per annum, a landmark transaction marking the longest-dated USD bond issued by SM and the company’s fourth USD bond issuance since 2009.

SM also raised PHP15 billion in May 2014 from a public offer of peso-denominated retail bonds with maturity of seven and ten years. The SM bonds are rated PRS Aaa by Philippine Rating Services Corporation, the highest rating assigned by the credit rating firm.

# # #

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of The SM Store and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc. is among the largest integrated property developers in Southeast Asia with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest. Combined, these two banks have a network of over 1,000 branches nationwide.

All told, in just 56 years, SM has become one of the largest market capitalized companies listed on the Philippine Stock Exchange, a testament to its ability to deliver steady high earnings and asset growth, sound financial management that creates value for all its stakeholders.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. 857-0117

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Receiving the award on behalf of SM is SM Senior Vice President for Finance Franklin Gomez.

Receiving the award on behalf of SM is SM Senior Vice President for Finance Franklin Gomez.