Dear Fellow Shareholders, 

SM Investments Corporation (SMIC) had a good year in 2019. Our core businesses continued to grow and establish nationwide footprints even as the group maintained its leadership position in its core markets.  We benefitted from economic factors that favored our consumer-led economy and delivered good financial performance.  The PHP44.6 billion consolidated net income we earned on the back of PHP501.7 billion in consolidated revenues were 20% higher than in 2018.  Meanwhile we continued to invest, particularly in new digital capabilities and preparedness.

Our strong performance this year is also aligned with our objective of creating shared value.  We created employment opportunities, supported thousands of micro, small and medium enterprises (MSMEs) and provided investments into communities that contribute to national development priorities.

This year, our core businesses performed remarkably, generating strong revenue and profit growth.  We expanded our presence in Metro Manila and widened our extensive network of retail and banking businesses while also launching more integrated property developments across the country.

Our strong performance this year is aligned with our objective of creating shared value.

Our retail portfolio, especially food and specialty stores, delivered good growth and profitability.  We paid attention to changing consumption patterns and refined our services and offerings to suit customer needs and adopted innovation and technology to bring more value to our customers.

The property group delivered sustainable growth brought about by the outstanding performance of malls and strong take up of residential products.  Focus was given to improving the top line through strategic expansion and integrating developments while ensuring efficient cost management.

The group continued to innovate to provide products and services that give the best value and convenience to the communities we serve.

Through our banks, we supported private investment and government projects by helping fund infrastructure as well as improve financial inclusion through our MSME initiatives.  We likewise continued to invest in our market coverage by deploying more branches and enhancing our digital infrastructure.  We balanced these initiatives with prudent risk management and environmental sustainability.

We continue to place significant attention on responsible growth by enhancing our environmental, social and governance (ESG) culture across the group.  Our core activities help drive economic development and are complemented by targeted social investments in education and health and wellness.  Good corporate governance practices further drive our holistic approach to business and ensure that we protect our minority shareholder and other stakeholder interests.

Our progress this year is also the result of the continuing collaboration of our dedicated employees, management team, business partners and customers that helps sustain our success.  We are pleased with the continued recognition of SMIC as being at the forefront of sustainability and good governance.  The numerous awards received reflect the trust and credibility of the businesses we operate.  The various units of the company are working together to drive sustainability further in our operations to ensure our long-term success.

We remain committed to being a catalyst for development in the communities we serve and to creating sustainable value for our shareholders.  On behalf of the Board of Directors, we thank you for your continued support and confidence.