Financial Highlights Full Year 2015 Results. Lifestyle City Projects Mall of Asia Complex Seaside City Cebu. Company Profile Key Business Units

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2 This presentation does not constitute a prospectus or other offering memorandum in whole or in part. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company. There shall be no sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to any qualification under the securities laws of such state or jurisdiction. This presentation has not been and will not be reviewed or approved by any statutory or regulatory authority or any stock exchange in the Philippines or elsewhere. Prospective investors should undertake their own assessment with regard to their investment and they should obtain independent advice on any such investment s suitability, inherent risks and merits and any tax, legal and accounting implications which it may have for them. This presentation contains statements about future events and expectations that constitute forward-looking statements. These forward-looking statements include words or phrases such as the Company or its management believes, expects, anticipates, intends, may, plans, foresees, targets, aims would, could or other words or phrases of similar import. Similarly, statements that describe the Company's objectives, plans or goals are also forward-looking statements. All such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Such forward-looking statements are made based on management s current expectations or beliefs as well as assumptions made by, and information currently available to, management. These forward-looking statements speak only as at the date of this presentation and nothing contained in this presentation is or should be relied upon as a promise or representation as to the future. This presentation and the contents hereof are for the exclusive use of the intended recipient(s). This presentation and the contents hereof should not be (i) forwarded or delivered or transmitted in any manner whatsoever, to any other person other than the intended recipient(s); or (ii) reproduced in any manner whatsoever. Any forwarding, distribution or reproduction of this presentation in whole or in part is unauthorized. This presentation must not be distributed to the press or any media organization. By accepting this presentation, the recipient agrees to keep confidential at all times information contained in or made available in connection with this presentation. Neither the Company nor its advisor, nor any of their respective affiliates, shareholders, directors, employees, agents or advisers makes any expressed or implied representations or warranties as to the accuracy and completeness of the information contained herein or any other information (whether communicated in written or oral form) and each of the foregoing parties expressly disclaims any and all responsibility and liability of any kind (including any contractual, non-contractual, or third party liability) for any loss or damage, whether or not arising from any error or omission in compiling such information or as a result of any party s reliance or use of such information. The information in this presentation has not been independently verified. The information and opinions in this presentation are subject to change without notice, and no obligation is assumed by the Company nor its advisor, nor any of their respective affiliates, shareholders, directors, employees, agents or advisers to provide the recipient(s) with access to any additional information or to update this presentation or to correct any inaccuracies in it which may become apparent.

3 I. The Company Company Profile Key Business Units II. III. Malls Residential Commercial Hotels and Convention Centers Key Strategies Roadmap Capex Program Financial Highlights Full Year 2015 Results Lifestyle City Projects Mall of Asia Complex Seaside City Cebu

4 One of the largest integrated property developer in Southeast Asia by market capitalization One of the largest listed real estate developer on the PSE by market capitalization, total assets and net income Consistently cited for excellence in corporate governance, property development, environmental consciousness, and service. Market Capitalization PSE Stock Symbol Market Capitalization Outstanding Shares Last Traded Price (3 March 2016) US$13.15bn SMPH PHP618bn 28,879mn Php21.40/share

5 Malls Residential Commercial Hotels & Convention Centers SM Supermalls SM Lifestyle and Entertainment Inc. Family Entertainment Center Inc. SM Development Corp. Highlands Prime Inc. Costa Del Hamilo Inc. Commercial Properties Group MOA Arena Radisson Blu Tall Vista Pico Sands Park Inn SMX Convention Center

6 Fast Facts Fast Facts Fast Facts Fast Facts 56 Malls in the Philippines 6 Malls in China 8.3 million sqm total Gross Floor Area 27 Condominium Projects 82,841 Condominium Units (since 2003) 5 Office Buildings 317,568 sqm total Gross Floor Area 5 Hotels 1,167 Hotel Rooms 4 Convention Centers and 2 Trade Halls FY2015 Operating Highlights FY2015 Operating Highlights FY2015 Operating Highlights FY2015 Operating Highlights Total Revenues of PHP42.7 billion grew by 10.4% from 2014 Net Income of PHP15.0 billion grew by 13.1% from 2014 Total Investment Properties amounted to PHP190.4 billion Total Real Estate Revenues of PHP22.9 billion grew by 0.9% from 2014 Net Income of PHP5.1 billion grew by 7.9% from 2014 Total Assets amounted to PHP108.8 billion Total Revenues of PHP3.5 billion increased by 19.0% from 2014 Net Income amounted to PHP1.3 billion grew by 67.3% from 2014 Total Investment Properties amounted to PHP26.6 billion Total Revenues of PHP2.4 billion grew by 22.0% from 2014 Net Income amounted to PHP0.4 billion grew by 57.9%. Total Investment Properties amounted to PHP9.5 billion

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

8 Metro Manila malls accounts for 45% of total mall space followed by Luzon (33%), Visayas (15%) and Mindanao (7%) Will continue to contribute over 50% of SM Prime s revenue and net income Have an average mature mall occupancy rate of 94% Serve as anchor for Lifestyle City developments

9 Operating in China since It became part of SM Prime in 2007 Contribute around 6% of the group s revenue and income Combined GFA is 945,000 sqm, 11% of the group s 8.3m sqm GFA The Zibo Mall opened in October Focuses on 2nd and 3rd tier city locations

10 Opening GFA (sqm) 1H2016 SM Trece Martires 81,218 1H2016 SM San Jose Del Monte 102,571 1H2016 Cherry SM Congressional 12,056 2H2016 SM East Ortigas 58,958 2H2016 Cherry SM Antipolo 19,321 Opening GFA (sqm) 2016 SMTianjin 540,000 Total 540,000 Projection End of 2016 Total Malls 7 GFA 1.5 mn sqm Expansions 2H2016 SM Calamba 49,936 2H2016 SM Naga 11,186 Total 335,246 Projection End of 2016 Total Malls 61 GFA 7.7 mn sqm

11 Operates under SMDC, a leading condominium developer in Metro Manila Accounts for 30% of the group s revenue Fame Residences, Mandaluyong City 11 projects (3 new projects; expansion of 8 existing projects) was launched this 2015 equivalent to13,357 units Cool Suites, Tagaytay City Have a land bank of hectares, some of which can be converted into mixed-use developments Air Residences, Makati city

12 Projects Overview Ready-for-Occupancy (RFO) Units 3,617 Ongoing Construction (Unsold Units) 12,651 Total Units Made Available since ,841 Planned launched in 2016 Reservation Sales (value) 11,000-14,000 units (est.) PHP39.4 bn Reservation Sales (units) 14, CAPEX PHP20.0 bn Project Landbanking PHP14..1 bn PHP5.9 bn Landbank (Hectares) Metro Manila 52.7 Outside Metro Manila Land for Future Projects Fame Residences, Mandaluyong City

13 Have 2 large-scale tourism projects Tagaytay Highlands and Pico de Loro Tagaytay Highlands is an exclusive mountain resort, golf club and residential complex 40 hectares Pico de Loro project is Phase 1 of Hamilo Coast project, a premier and sustainable leisure destination in Nasugbu, Batangas Pico de Loro at Hamilo Coast Construction of Woodridge Place s Mahogany and Linden buildings Landbank of hectares The Aspenhills Village Hall was completed November 2014

14 Completed Projects Caters primarily to the burgeoning BPO Industry Have a GFA of almost 318,000 sqm for 5 completed towers TwoE-comCenter On-going Project FiveE-comCenter Planned Project Target to increase GFA to 600,000 sqm by 2018 Have an available land bank of 889,000 sqm ThreeE-comCenter FourE-comCenter

15 Is a state of the art and modern facility that is flexible for sports and entertainment with 20,000 seating capacity SM Prime plans to build an Arena in Seaside City Cebu

16 Operates with 5 hotels with over 1,150 rooms; 4 SMX Convention Centers, and 2 Megatrade Halls with over 36,000 sqm of leasable space Radisson Blu Hotel Pico Sands Hotel Park inn by Radisson Opened Park Inn by Radisson in Clark, Pampanga with 154 rooms on December 2015 The 347-rooms Conrad Hotel to open in in MOA Complex on 2H2016 Radisson Blu Hotel Lobby SMX Convention Center

17 Increase acquisition of large-scale strategic landbank and develop more lifestyle cities Leverage on world-class malls to anchor lifestyle city strategy Optimize existing properties Offer wide range of products in the residential segment Continue the aggressive rollout of BPO office development Maintain strong balance sheet, prudent risk & capital management and good governance

18 Malls Primary Homes Residences Leisure Homes Commercial Hotels & Convention Centers 2018 ( ) GFA: 10.6 Million sqm (85% Phil + 15% China) Launched Units: 139,628 Projects: 41 Launched Units: 2,500 Projects: 16 GFA: 0.46 Million sqm No of Towers: 7 Rooms: 2,187 Projects: 10 ( ) E +28% in GFA +69% in units +23% in units +44% in GFA +87% in rooms 2015 A GFA: 8.3 Million sqm (89% Phil + 11% China) Launched Units: 82,841 Projects: 27 Launched Units: 2,035 Projects: 12 GFA: 0.32 Million sqm No of Towers: 5 Rooms: 1,167 Projects: 5 +14% in GFA +.16% in units 0% in units +68% in GFA +15% in rooms A 2014 A GFA: 7.3 Million sqm (89% Phil + 11% China) Launched Units: 69,421 Projects: 25 Launched Units: 2,035 Projects: 12 GFA: 0.19 Million sqm No of Towers: 4 Rooms: 1,015 Projects: 4 A 2013 A +4% in GFA GFA: 7.0 Million sqm (89% Phil + 11% China) +9% in units Launched Units: 63,892 Projects: 21 0% in units Launched Units: 2,035 Projects: % in GFA GFA: 0.15 Million sqm No of Towers: 3 Rooms: 1,015 Projects: 4 +0% in rooms We intend to double our income by 2018 to PHP32bn, based on our 5 year roadmap The growth will be driven by malls and residential units

19 100% 90% 2% 5% 4% 5% 3% 5% 7% 7% 12% 15% 80% 70% 38% 28% 34% 29% 29% 60% 50% 40% 30% 55% 61% 54% 51% 56% 20% 10% 0% Malls Residences Commercial Hotels and Convention Centers We will spend an average of PHP60bn annually over 3 years to achieve our goal to double the income by 2018 We will maintain a very conservative gearing ratio despite the massive CAPEX program

20 Debt to Equity* Net debt to equity** 100% 90% 80% 31% 35% 39% 39% 42% 100% 90% 80% 22% 28% 32% 32% 38% 70% 70% 60% 60% 50% 40% 30% 69% 65% 61% 61% 58% 50% 40% 30% 78% 72% 68% 68% 62% 20% 20% 10% 10% 0% % Equity Debt Equity Net Debt *Total interest-bearing liabilities Total equity attributable to equity holders of the parent + Total interest-bearing liabilities **Total interest-bearing liabilities- cash & cash equivalents and investment securities Total equity attributable to equity holders of the parent + Total interest-bearing liabilities- cash & cash equivalents and investment securities

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22 100% 90% 80% 70% 60% 50% 40% 30% Revenue Segment Contribution 2% 3% 3% 3% 4% 5% 4% 5% 40% 35% 34% 32% 53% 57% 59% 60% Revenue from Malls comprise 60% of SMPH s revenue, while residential revenue is at 32% Rent from commercial office spaces make up 5% while Hotels and Convention centers take up the rest 20% 10% 0% Malls Residences Commercial Hotels and Conventions

23 Net Income Segment Contribution 100% 90% 80% 70% 1% 2% 5% 5% 4% 6% 31% 25% 25% 23% Almost 70% of the consolidated net income are recurring while the rest comes from developmental income 60% 50% 40% 30% 20% 10% 0% 64% 70% 69% 69% Malls contribute the most among key business units The contribution from these BUs should be sustained over the medium term Malls Residences Commercial Hotels and Conventions

24 (In PHP billion) FY2015 FY2014 % Chg Revenues % - Rent Income % - Cinema Ticket Sales and Others % EBITDA % Operating Income % Philippine Malls revenue (91% of total malls) up by almost 11% to PHP38.9bn in 2015, mostly driven by the 7% growth in same-store-sales and additional shopping space of 1.2 m sqm (GFA) in the past 2 years Margins remain stable at 67% and 55% for EBITDA and Operating Income, respectively Average mall occupancy of 94%, inclusive of new malls open in the past 2 years

25 (In PHP million) FY2015 FY2014 % Chg Revenues 3,947 3, % - Rent Income 3,832 3, % - Others % EBITDA 2,587 2, % Operating Income 1,788 1, % China Malls revenue (9% of total malls) grew by almost 10% to PHP3,947mn due to rising occupancy rate of newer malls while tenants on existing malls shift to percentage of sales rental revenues Occupancy level at 93% for the 6 operating malls including SM City Zibo, opened on September 2015 with 150,600 sqm (GFA)

26 (In PHP billion) FY2015 FY2014 % Chg Revenues % EBITDA % Operating Income % Residential revenue (32% of consolidated revenue) continue to show improvements, following the 0.9% year-on-year growth Reservation sales grew by 11% year-on-year to 14,227 units in the 2015 registering a 14% increment in value worth PHP39.4 billion Gross profit margin improved to 46% from 45% while net income margin increase to 22% from 21%

27 (In PHP billion) FY2015 FY2014 % Chg Revenues % EBITDA % Operating Income % Commercial Properties Group revenue (5% of consolidated revenue) grew by 19% from PHP3.5bn to PHP2.9bn, driven by the new office buildings Cyber West and FiveE-comCenter ThreeE-Com and FourE-Com Centers are under construction and scheduled for completion in 2017 and 2019, respectively Aiming to reach almost 600k sqm of office space by 2018

28 (In PHP million) FY2015 FY2014 % Chg Revenues 2,446 2, % EBITDA % Operating Income % Hotels and Convention Centers revenue (3% of SM Prime s consolidated revenue) increased by 22% from PHP2,005mn to PHP2,446mn, attributed to higher occupancy level In 2015 SM Prime opened Park Inn by Radisson Clark in Pampanga Conrad Hotel Manila is expected to open on the second half 2016

29 (In PHP Million (except % data) As of December % to Assets 2014 % to Assets Assets Cash and cash equivalents 25,870 6% 35,245 9% Available-for-sale investments 20,332 5% 29,672 8% Receivables 31,354 7% 30,687 8% Investment Properties 230,340 53% 192,639 50% Land and development 42,920 10% 42,458 11% Condominium and residential units for sale 8,165 2% 7,579 2% Other Assets 74,847 17% 50,560 13% Total Assets 433, % 388, % Liabilities and Stockholders Equity Interest bearing debt 155,668 36% 129,283 33% Accounts payable and others 62,317 14% 60,469 16% Total Liabilities 217,986 50% 186,602 49% Equity Attribute to Parent 215,842 50% 202,238 51% Total assets grew by 11.6% in 2015 from 2014 attributed to the additional malls including Cherry Foodarama Interest bearing debt likely increased due to the PHP20 billion retail bond we raised last November

30 (In PHP millions) Cash Flows from Operating Activities Operating Income before Working Capital changes 36,362 33,872 30,020 26,865 Cash Generated from Operations 31,938 11,950 28,030 10,233 Cash flows from Investing Activities (55,230) (29,693) (30,715) (20,528) Cash Flows from Financing Activities 14,015 30,797 12,709 17,907 Net Cash and Cash Equivalents (9,375) 8,104 5,843 3,954 Cash and Cash Equivalents at Beginning of Year 35,245 27,142 21,299 17,345 Cash and Cash Equivalents at End of Year 25,870 35,245 27,142 21,299 Bulk of cash flow came from Malls and Residential units Net gearing is equivalent to 38:62 in 2015, well within the management target of keeping 50:50 net debt to equity ratio

31 Establish strong brand equity Leading integrated real estate platform with strong track record across full suite of asset classes World-class retail malls business, which will anchor future lifestyle city projects Significant growth opportunities from landbank optimization and future acquisitions Strong balance sheet supported by strong recurring income Highly experienced management team and strong corporate governance

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