EVENTS

PASAY CITY, Philippines, Nov. 8, 2023 – SM Investments Corporation (SM Investments)
reported a consolidated net income of PHP55.9 billion in the January to September period,
higher by 30% from PHP42.9 billion in the same period last year.
Consolidated revenues rose 15% to PHP440.4 billion from PHP382.0 billion in the same period
last year.
“Our ongoing healthy growth reflects buoyant consumer activity in malls and sustained spending
in discretionary retail categories,” SM Investments President and Chief Executive Officer
Frederic C. DyBuncio said. “We look forward to the fourth quarter, while continuing to monitor
the impact of food prices and interest rates on consumer wallets.”
Of total net earnings, retail accounted for 18%. Banking accounted for the largest share at 47%
while property contributed 26% and portfolio investments pitched in 9%.
Retail
SM Retail reported net income was at PHP13.7 billion, up 19% from PHP11.5 billion in the
previous period.
Retail revenues grew 12% to PHP290.6 billion from PHP258.4 billion in the previous period.
Same store sales for the department store and specialty retail businesses grew 18% and 9%
respectively, reflective of strong consumer spending in key categories, while store expansion
also buoyed growth.
Food retail performance remained positive, supported by volume growth and expansion.
Banking
BDO Unibank, Inc. (BDO) reported its net income was PHP53.9 billion compared with PHP40.0
billion in the same period last year backed by broad-based growth across its core businesses.
Net interest income increased to PHP137.4 billion with customer loans growing 7.5% year-on-
year to PHP2.7 trillion and deposits expanding 12% to PHP3.4 trillion.

Non-performing loan (NPL) ratio remained stable at 1.99% despite the higher interest rate
environment, while NPL coverage improved to 176%. The bank continues to set aside
provisions in line with its conservative credit and provisioning policies.
China Banking Corporation posted a consolidated net income of PHP16.2 billion in the first nine
months, 10% higher compared to same period last year on the back of robust growth from core
businesses and lower loan loss provisions. Net interest income grew by 16% to PHP39.2 billion
as the 44% surge in top line revenues cushioned the nearly triple increase in interest expense.
Gross loans grew by 10% year-on-year to PHP765 billion, driven by the 19% expansion in
consumer loans, particularly teachers’ loans and credit cards. Total deposits increased by 14%
to PHP1.1 trillion resulting to a 49% CASA (current account savings account) ratio as term
deposits grew year-on-year.
The bank’s level of bad loans continued to be manageable, posting a better-than-industry
average NPL ratio of 2.2%.
Property
SM Prime reported PHP30.1 billion in net income in the first nine months of 2023, 37% higher
than
PHP22.0 billion in the same period last year. Consolidated revenues grew 26% to PHP92.6
billion from last year’s PHP73.7 billion.
SM Prime’s mall business, which accounts for 57% of consolidated revenues, posted PHP52.5
billion in the nine-month period, up by 37% from PHP38.2 billion in the same period last year.
Mall rental income rose to PHP44.8 billion, 29% higher than last year’s PHP34.7 billion. SM
Prime’s cinemas, event ticket sales, and other revenues increased significantly to PHP7.7 billion
from PHP3.5 billion in the same period last year.
SM Prime’s primary residential business, led by SM Development Corp., reported PHP28.7
billion, 10% higher than PHP26.1 billion in the same period last year. SMDC’s reservation sales
reached PHP89.3 billion, 6% higher than PHP83.9 billion in the same period last year.
SM Prime’s other key businesses, which include offices, hotels, and convention centers,
generated PHP9.5 billion in revenues, up 33% from PHP7.2 billion in the same period last year.
Portfolio Investments
Portfolio investments continued to sustain growth, contributing 9% to the Group’s consolidated
net income.
Philippine Geothermal Production Company and NEO, SM Investments’ office portfolio,
contributed significantly to net income.

Balance Sheet

Total assets of SM Investments increased 4% to PHP1.5 trillion. Gearing ratio remained
conservative with 35% net debt to 65% equity.
###

About SM Investments Corporation
SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading
businesses in retail, banking, and property. It also invests in ventures that capture high growth
opportunities in the emerging Philippine economy.
SM’s retail operations are the country’s largest and most diversified, consisting of grocery stores,
department stores and specialty retail stores. 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., the country’s largest bank, and China Banking Corporation, the fourth largest private
domestic bank.
For more information, please visit www.sminvestments.com

For inquiries, please contact:
Timothy Daniels
Consultant, Investor Relations & Sustainability
SM Investments Corporation
Email: smic_corpcomm@sminvestments.com

Around the world, girls are leading the charge for change — breaking glass ceilings in various fields and professions and challenging perceptions about what is possible for them. 

Recognizing this, Beiersdorf Philippines, Watsons, and Plan International Pilipinas collaborated to string together a series of initiatives to create sustainable pathways that will allow young women to realize their full potential, unhindred by the biases and barriers that have long held girls and women back.

These initiatives are carried out in commemoration of the International Day of the Girl (IDG). Held annually on October 11, IDG is a powerful occasion to bring the world’s attention to the realities and lived experiences of girls and young women.

To mark IDG, all three organizations have joined hands for the “BraveHER, BoldHER, & StrongHER: Redefining Girls’ Power to Take Charge, Break Barriers, and Thrive” event. This event serves as a platform to foster discussions about girl’s rights and gender equality, with a particular focus on equitable and quality health services, as well as career empowerment to increase their economic resilience

Bringing together Nimisha Jain Country Manager Beiersdorf Philippines, Cathy Seco of Executive Director Plan International Pilipinas, and Sharon Decapia, AVP for Marketing, PR & Sustainability of Watsons in one panel became an opportunity to open a genuine dialogue and prompt first-hand discussions about the importance of advancing girls’ rights, including their right to equal opportunities, celebrating their achievements, and raising awareness about the challenges they face.

“We care beyond skin for an inclusive society and aim to foster social cohesion. From the get-go, our efforts are grounded in our goal of providing inclusive education, promoting protective environments, and fostering skills development in girls. Every initiative is a reflection of our commitment. And the progress of these young girls showcases the impact of our collective effort,” says Nimisha Jain.

The invaluable participation of Punlaan scholars and youth advocates from Plan International Pilipinas also provided valuable insights into what it’s like to be a girl in today’s world and their shared hopes for a gender-equal society, where they are treated as experts in their own experiences, as agents of change, and as equal partners.

But more than joining hearts and minds for a conversation, the event also provided a chance for all partners to express their commitment towards supporting girls and young women in the country.

Beiersdorf is setting their sights high with an ambitious target: to make a positive impact on the lives of 300,000 people in total by 2023 through the Empowering Girls projects. To achieve this Beiersdorf has set up programs that offer quality, inclusive education, promote protective environment and strenghten health services, an ideal environment for girls and young women to thrive. To demonstrate this commitment, Beiersdorf Philippines’ formal declaration of support for Filipina girls, aligns seamlessly with Beiersdorf’s global commitment, which kickstarted in 2020 and is set to continue until 2025.

Additionally, the company is turning over donating PhP1M to Punlaan School’s Pharmacist Scholars, providing young women and girls with a better chance to realize their dreams of becoming pharmacists. To generate the funds, Beiersdorf dedicated a portion of all NIVEA sales made at Watsons stores from July 15 to August 31, 2023.

Plan International, a development, humanitarian, child and youth-girl-centered organization working in the Philippines since 1961, adopts a lifecycle and gender-transformative approach to economic empowerment. 

“Girls and young women make up the majority of the world’s 628 million unemployed young people. They don’t have access to education or job training, preventing them from getting the skills they need to access decent work and break out of poverty,” said Ana Maria Locsin.

“This is why this event serves as a unique opportunity for us to come together and ensure that every girl can pursue the career and life she wants,” Locsin added.

The organization is currently implementing projects that provide support to girls and young women from a young age and throughout each stage of life, enabling them to make economic decisions while challenging the gender norms and societal stigmas imposed upon them.

Watsons, as the leading health, wellness and beauty retailer brand, also recognizes their influence to change lives and uplift communities. As part of Watsons’ Sustainable programs under the “People” pillar, 

Watsons’ has chosen Punlaan School, a renowned institution that caters to young women from underserved communities by providing essential training and education, to be the center for the Watsons Apprenticeship Program. Through this special 6-month program, young women are eqipped with the skills needed for a successful career path with Watsons. 

“This Apprenticeship Program with Punlaan school reflects our commitment to support and create job opportunities for young women,” shares Josefina Arriola, People Innovations Project Director  of Watsons. “Our goal is to be able to educate and equip them with the skills to be job-ready and empowered members of the community.”

It is also worth noting that this is more than just a one-day event for these organizations. BraveHER, BoldHER, & StrongHER comes in the tails of two other activities: the recent “Girls Takeover” hosted in five Watsons stores and the “Girls on the Rise” Career Workshop. 

A signature IDG event of Plan International, the Girls Takeover aims to encourage girls to occupy spaces where they are rarely seen or heard, engaging in conversations that empower them to learn, lead, decide, and thrive. On September 30, Watsons and Beiersdorf welcomed 10 girl advocates who had the opportunity to take over the positions of Beauty Ambassadors, Cashiers, and Store Managers for a day.

As a follow-through activity to the Girls Takeover, the career workshop focused on developing the girl advocates’ intrapersonal skills, which are essential for success in the job market. During this workshop, Beiersdorf and Watsons staff actively engaged with the girl advocates by conducting modules focused on personal development and personal and professional values. These modules provided valuable insights and skills that empowered the advocates and boosted their readiness for future employment opportunities.

“We believe that girls can be bigger than any barrier, bolder than any bias, and stronger than their struggles. Our collective goal is to provide them with opportunities to overcome obstacles and thrive in all aspects of their lives,” said Locsin.

To learn more about NIVEA Philippines’ ongoing commitments and initiatives in empowering the young Filipina community, visit https://www.beiersdorf.com

To know more about Plan International Pilipinas’ work in advancing children’s rights and equality for girls in the Philippines, visit: https://plan-international.org/philippines/.

To know more about Watsons Philippines sustainability initiatives and efforts to support communities, visit https://www.watsons.com.ph/sustainability and www.watsons.com.ph.

Taong 2007 ng itatag ng SM group, sa pamamagitan ng SM Foundation ang programang Kabalikat sa
Kabuhayan. Nagmula ito sa simpleng pangarap ni Henry Sy, Sr na paunlarin ang ating mga Pilipino sa
tulong ng agrikultura at siguradong may sapat na pagkain ang bawat komunidad.
Mahigit 16 taon na ang nakalipas mula noon, ngunit patuloy ang SM Foundation sa pagbibigay ng
dagdag kaalaman sa pagsasaka at pagnenegosyo.

Nito lamang, umabot na sa higit kumulang 28,550
benepisyaryo ang nakapagtapos sa nasabing programa. Isa na rito si Renato Fojas.
Pagtatanim para sa pamilya, komunidad.
Lumaki si Renato sa payak na pamumuhay. Marangal nyang itinaguyod ang kanyang pamilya sa
pamamasukan bilang karpentero.
“Mahilig akong magtanim simula pa noong bata pa ako. Pero, nagtrabaho ako bilang karpintero. Dahil
kontrata lang ito, hindi laging sigurado ang kita,” bungad niya.
Ang hilig sa pagtatanim ang nag udyok sa kanya para sumali sa KSK-SAP noong 2010. Dito, natutunan
umano ni Renato ang iba’t ibang paraan ng pagtatanim ng prutas at gulay.

Dagdag pa niya, nakakuha rin
siya ng kaalaman tungkol sa akmang pananim sa iba’t ibang uri ng lupa.
Dahil dito, nakapagpayabong siya ng isang vegetable garden sa likod ng kanyang bahay. Ito ay naging
sandalan nila, lalo na noong panahon ng pandemya.

Dr. Alfredo P. Manugas VI, the San Fernando, Cebu Municipal Health Officer and Health
Department Head checks up a young patient at the lobby of the newly refurbished Primary Health
Facility.
Healthcare facilities are essential pillars of every community, ensuring that residents
conveniently get the medical care and attention they deserve.
Dr. Alfredo P. Manugas VI, the Municipal Health Officer and Health Department Head, knows
just this. Serving at the San Fernando, Cebu Primary Healthcare Facility (SFCPHF) for roughly
15 years, he has imbibed the importance of modernizing facilities to provide better services to
his patients and safe workplace for his fellow health workers.
“This facility is close to my heart. Considering the length of my stay, this has become my second
home,” he said.
Dr. Manugas said that the collaboration of SM Foundation, local government unit of San
Fernando, Cebu and its mayor, Mytha Ann Canoy could not have come at a much better time,
especially at the heels of a global medical scare.

Globe supports Senate bills that will amend the 26-year-old Intellectual Property Code to strengthen enforcement against online content piracy, measures that will protect the Filipino creative industries and customers who face risks online.

Senators Jinggoy Estrada and Ramon “Bong” Revilla Jr. have filed separate bills to strengthen the Intellectual Property Code, a parallel measure to House Bill No. 7600 by Rep. Joey Salceda of Albay’s 2nd District in the House of Representatives which passed third reading in May 2023.

These legislative efforts are designed to update Republic Act No. 8293, also known as the Intellectual Property Code of the Philippines, which was established in 1997, well before online content piracy became prevalent.

“The Globe Group recognizes the urgent need to modernize the Intellectual Property Code, especially in the face of growing online threats such as online content piracy. It’s crucial to safeguard our creative industries, their workforce, and consumers who might unknowingly access malicious links on pirated websites, jeopardizing their personal data,” said Yoly Crisanto, Globe Chief Sustainability and Corporate Communications Officer.

Amending the Intellectual Property Code to strengthen enforcement against online content piracy will institutionalize a landmark Memorandum of Understanding that the Intellectual Property Office of the Philippines (IPOPHL) recently signed with Globe and other leading Internet Service Providers (ISPs) in the country to establish a site-blocking mechanism against pirate sites.

The MOU, the first of its kind in Asia, is a significant step forward against online content piracy as it establishes a voluntary site-blocking practice against the unauthorized distribution and sale of pirated content over the internet. The MOU also outlines the general principles and procedures for site blocking as it underscores collaboration between IPOPHL and ISPs.

Globe has consistently campaigned against online content piracy through the #PlayItRight initiative, promoting the protection of content creators in an era dominated by pirated materials.

As a member of the Video Coalition of the Philippines, established last year alongside major industry players and the Asia Video Industry Association (AVIA), Globe has been at the forefront of advocating for robust intellectual property rights in the Philippines.

The proposed bills by Estrada and Revilla, both actors who are personally familiar with the perils of film piracy, aim to empower the Intellectual Property Office of the Philippines (IPOPHL) to restrict access to copyright-infringing sites and initiate site-blocking measures, supporting the creative sectors against rampant piracy.

Estrada’s Senate Bill 2150, submitted on May 9, 2023, suggests blocking access to websites promoting copyright violations and proposes fines of up to PHP1 million. Meanwhile, Revilla’s Senate Bill No. 2385, filed on August 1, 2023, focuses on enhancing the IPOPHL’s authority and responsibilities.

Estrada highlighted the significant spike in online film piracy during the COVID-19 pandemic, with illegal online links to Filipino films, including those from the 2020 Metro Manila Film Festival, being widely shared on social media.

The IPOPHL reported a noticeable increase in online piracy and counterfeiting activities in 2020, with the number of reports and complaints exceeding the average in the previous five years.

Surveys by YouGov, commissioned by the Coalition Against Piracy (CAP), suggest that enforcing site-blocking could greatly benefit the Philippines’ P1.6-trillion creative industries, which contributed 7.3% to the country’s economy in 2022.

While 58% of consumers in the country interact with pirated content, many are willing to pay for legitimate content if not available on pirated platforms. The survey showed varied preferences for legal content consumption, with 53% opting for subscription services, 15% for pay-per-view, 28% for cinema, 13% for Blu-Ray or DVD, and 39% for ad-supported media.

Filipino consumers overwhelmingly support government action against online content piracy. The survey revealed that 45% support ISP restrictions on pirate websites, 27% are in favor of banning Android TV Boxes that access pirated content, and 39% back the prohibition of apps offering pirated content access.

To learn more about Globe, visit https://www.globe.com.ph/.