SM Investments : Integrated Report 2022

2022 INTEGRATED REPORT

Serving

Communities

Serving Communities

1

We are SM	1
How We Create Shared Value	14
Our Communities	20
Our Business	24
Our Retail Businesses	28
Our Property Business	40
Our Banking Businesses	50
Our Portfolio Investments	58
Our Valued Resources	64
Our Capitals	66
Our Reports	82
Our Corporate Governance	102
Our Financial Statements	118
Our Report Index	134
Our Report Framework	138

Our Vision and Commitment

Sustainability is at the heart of our vision-to build an ecosystem of sustainable businesses that are catalysts for responsible development in the communities we serve.

We are committed to partner with our host communities to provide a consistently high standard of service to our customers, look after the welfare of our employees and deliver sustainable returns to our shareholders, at all times upholding the highest standards of corporate governance and environmental stewardship in all our businesses.

What We Do

Our core business is in retailing, banking, and developing properties into integrated lifestyle cities to benefit millions of Filipinos nationwide. Across all its entities, the group acts as a catalyst for responsible development in communities nationwide.

Retailing is at the heart of SM. The SM Store is our anchor department store on top of more than 30 other retail brands that have a leading presence in most retail categories. SM is also a partner of choice of foreign brands that have established their presence in the Philippines.

In grocery retailing, SM operates a range of different sized formats, ranging from stand-alone hypermarkets and large supermarkets in malls, to mid-sized stores in neighborhoods and small local minimarts.

We deliver a full range of banking services to corporate enterprises and small- and medium-sized businesses. We also serve entrepreneurs, family- run businesses, and individuals. We have also dedicated ourselves to bringing financial inclusion to the majority of Filipinos who have yet to open bank accounts.

In property development, we manage and build integrated developments that consist of a mix of retail, office and entertainment buildings, condominiums, hotels, convention centers, and entertainment facilities that are centered on our network of malls.

SM also invests in key sectors in the Philippines with high growth potential, including logistics, bakeshops, urban dormitories, leisure, mining, and geothermal energy.

The businesses of SM all work together as an ecosystem with high synergies that also support its many thousands of partners.

Investments Corporation

Who We Are

In the late 1950s, our founder Henry Sy put up a small shoe store on Carriedo St., Manila. It was called Shoemart.

Today, SM is the country's leading conglomerate, a network of sustainable businesses that specializes in retail, property, and banking, impacting the lives of millions of Filipinos.

We are fueled by our passion to serve our customers better, look after our employees, deliver sustained returns to our shareholders, and practice good governance in everything we do. We take pride in helping other businesses achieve their own success as leaders.

Since our beginnings more than 60 years ago, we have remained anchored on values of drive and enthusiasm, leadership, integrity, teamwork, and entrepreneurship.

We are one of the country's largest employers with more than 140,000 people in our organization. We enjoy working with a shared sense of purpose, committed to improving the quality of life for our communities, constantly finding ways to provide opportunities for personal and social growth. In this manner, we help address the needs of millions of Filipinos, creating shared value, and driving national development.

It's not just about business. We are also aware of our impact on the planet. We strive for transparency and accountability across all areas of our business, and are focused on becoming a global leader in sustainable business practices.

As we look to the future, we envision a strong ecosystem of sustainable businesses that are catalysts for responsible development in the communities we serve.

What We Stand For

Drive and	Leadership
Enthusiasm	Integrity	Teamwork	Entrepreneurship

Our Board's Report

To our Stakeholders

At SM, we are one of the leading players in a growing, rapidly developing country with many communities to serve. We understand the important role we play in serving and helping build communities across the Philippines. As such, our businesses aim to act as catalysts for their growth.

As we grow too, we are aware of the many thousands of business partners and individuals who depend upon us for their livelihood, and the millions of Filipino customers who trust and rely on SM for access to modern retailing, banking, property and our other services. We have a responsibility to them, our stakeholders, and to the unique natural environment in which we operate.

In 2022, the pandemic was largely behind us and we were focused on serving Filipinos and helping lead responsible development across the regions as the country returned to normality.

In doing so, our businesses delivered record financial results last year. This came from a rapid return to normal economic activity, employment and spending by Filipino consumers. We also benefited from

the deliberate actions we took during the difficult times to strengthen our businesses, support our stakeholders and acquire new assets in high growth sectors. These priorities have begun to pay off. SM is a stronger, more dynamic and more responsible ecosystem today.

We would like to thank our leadership and people for their dedicated efforts, our private and public sector partners for their continued support, and our customers for their ongoing loyalty. We would also like to thank our Board members for their service and our shareholders for their confidence in us.

Jose T. Sio	Teresita T. Sy
Chairman	Vice Chairperson

2 SM Investments Corporation

Despite the continuation of global uncertainties, the Philippines remains a bright spot, and SM remains a strong player with a growth mindset and many opportunities ahead.

We look forward to serving more Filipinos in the future.

Jose T. Sio / Chairman

Teresita T. Sy / Vice Chairperson

Henry T. Sy, Jr. / Vice Chairman

Henry T. Sy, Jr.

Vice Chairman

We are a leading

player in a growing, rapidly developing country with many communities to serve

A stronger, more

dynamic and

more responsible ecosystem today

SM remains a

strong player with a growth mindset towards many opportunities ahead

Serving Communities

3