Golden Arrows and Golden Standards: SM Investments Corporation's Triumph in Corporate Governance

Let's dive into the glittering success story of SM Investments Corporation, a name synonymous with excellence in the Philippines. This year, they clinched the prestigious 5 Golden Arrow Award, a recognition bestowed by the Institute of Corporate Directors (ICD). It's the highest accolade at the ASEAN Corporate Governance Scorecard (ACGS) 2024 Golden Arrow Awards. And guess what? Only five companies achieved this honor, and four of them are SM entities! Talk about dominating the scene!

The 5 Golden Arrow Award isn't just a pretty trophy to put on the shelf. It signifies a company's commitment to upholding the highest standards of corporate governance. For SM Investments, this isn't just a one-off achievement; it's a reflection of their ongoing commitment to excellence. From the boardroom to the break room, every team member plays a part in maintaining these standards. Chairman Amando M. Tetangco, Jr. couldn't have said it better, attributing the accolade to the hard work and dedication of their entire organization.

SM Investments Corporation's journey to this prestigious recognition is deeply rooted in its philosophy of good corporate governance. They believe that adopting and upholding the highest standards isn't just about ticking boxes; it's about ensuring long-term growth and sustainability for the company. And in the bustling hub of PASAY CITY, Philippines, where business is always booming, they've set the gold standard.

The recognition from the ICD is like a feather in their cap, but also a reminder of their responsibility. As the company continues to grow, they're committed to maintaining transparency, accountability, and integrity in all their dealings. Whether it's with investors, customers, or employees, SM Investments ensures that fairness and stakeholder engagement remain at the forefront of their operations.

In today's business world, just meeting compliance requirements isn't enough. Companies need to go above and beyond, and that's precisely what SM Investments does. Executive Vice President and Chief Risk and Compliance Officer Elizabeth Anne "Lizanne" C. Uychaco emphasizes the company’s commitment to integrating fairness, integrity, and accountability into every aspect of their operations. It's not just about following rules; it's about setting new ones.

SM Investments recognizes the growing global focus on corporate governance and sustainability, and they've made it a core part of their business strategy. From ensuring equitable treatment of shareholders to engaging with different stakeholders, their approach is holistic and forward-thinking. The ICD's assessment, based on publicly available disclosures, highlights how SM Investments not only meets but exceeds expectations in these areas.

While the 5 Golden Arrow Award is a significant milestone, it's not the end of the road for SM Investments. They're committed to continuous improvement and innovation. As the business landscape evolves, so do their strategies and practices. The company believes in the power of strategic guidance and management monitoring to ensure accountability to shareholders and stakeholders alike.

In the competitive world of corporate governance, winning the award is one thing, but maintaining that level of excellence is another. SM Investments is not resting on their laurels; they're keeping their eyes on the future, ready to adapt and grow as needed. Whether it's through adopting new technologies or enhancing stakeholder engagement, they're prepared for whatever comes next.

SM Investments Corporation's success story is a testament to their dedication to excellence in corporate governance. Their journey is an inspiration, not just for other companies in PASAY CITY, Philippines, but for businesses worldwide. As they continue to set the bar high, we can only watch and learn from their impeccable standards and unwavering commitment to growth and sustainability. Cheers to the golden arrows pointing towards a bright future!

Celebrating Success: SM Investments Corporation Shines in the First Half of 2024

COURTESY: SM Investments Corporation

Pasay City, Philippines, is buzzing with excitement as SM Investments Corporation (SM Investments) has reported remarkable financial performance for the first half of 2024. With a 10% increase in consolidated net income, SM Investments has demonstrated its resilience and adaptability in a dynamic economic environment. The company’s net income soared to PHP40.2 billion, up from PHP36.5 billion in the same period last year. This impressive growth is a testament to the strategic vision and execution capabilities of SM Investments.

The second quarter of 2024 was particularly noteworthy for SM Investments. The company achieved a 13% growth in net income, reaching PHP21.8 billion. This robust performance was driven by improved discretionary spending, which significantly boosted retail sales. The company’s consolidated revenues for the first half of 2024 rose by 5% to PHP301.4 billion, up from PHP286.7 billion year-on-year. In the second quarter alone, revenues grew by 6% to PHP157.7 billion.

Breaking down the contributions to the total net earnings, the banking sector accounted for the largest share at 50%. Property contributed 27%, while retail accounted for 14%, and portfolio investments made up 9%. This diversified revenue stream underscores the strength and balanced growth of SM Investments across various sectors.

Frederic C. DyBuncio, President and Chief Executive Officer of SM Investments, expressed cautious optimism for the remainder of the year. He highlighted the positive environment for the company’s businesses and the improved discretionary spending that lifted retail sales in the second quarter. Mr. DyBuncio’s insights reflect a strategic approach to navigating the economic landscape, ensuring sustained growth and profitability.

One of the highlights of the first half of 2024 was the successful issuance of Euro Medium-Term Notes (EMTN). On July 18, SM Investments priced a USD500 million drawdown from its USD3 billion EMTN program, now listed on the Singapore Exchange Securities Trading Limited. This issuance, which was 3.2 times oversubscribed with final demand reaching USD1.6 billion, marked SM Investments' largest offshore bond issuance since 2014. Mr. DyBuncio expressed satisfaction with the demand and positive feedback on the issuance, highlighting the quality of SM Investments' financials and the investability of strong Filipino companies.

The banking sector, a significant contributor to SM Investments' net earnings, showed strong performance in the first half of 2024. BDO Unibank, Inc. (BDO) posted net earnings of PHP39.4 billion, a 12% increase year-on-year. This growth was driven by stronger momentum from its core intermediation and fee-based service businesses. Similarly, China Banking Corporation reported a record net income of PHP11.4 billion, up 6% compared to the same period last year, fueled by stronger core lending and deposit-taking activities.

SM Retail experienced a slight dip in net income, standing at PHP7.6 billion in the first half of 2024, down from PHP8.4 billion last year. This decline was due to a high base effect from the lifting of mobility restrictions on consumption in 2023. However, retail revenues grew by 4% to PHP196.9 billion from PHP188.5 billion. The second quarter reflected higher growth with a 6% increase in retail revenues and a 2% rise in net income, indicative of spending on discretionary items such as appliances, beauty, and fashion. Specialty retail revenues increased by 5%, and food retail revenues grew by 7%.

SM Prime Holdings, Inc., the property arm of SM Investments, reported a 13% increase in consolidated net income, reaching PHP22.1 billion in the first half of 2024, up from PHP19.4 billion in the same period last year. This growth was driven by the strong performance of its real estate ventures and continued demand for residential and commercial spaces.

SM Investments Corporation's stellar performance in the first half of 2024 is a testament to its strategic vision, diversified revenue streams, and robust execution capabilities. With the leadership of Frederic C. DyBuncio and the company's cautious optimism, SM Investments is well-positioned to navigate the challenges and opportunities that lie ahead. As Pasay City continues to thrive, SM Investments remains a beacon of growth, resilience, and success in the Philippines.

Sustainable Health: Why Investing in Community Health is the Key to Long-Term Wellness

COURTESY: SM Investments Corporation

Investing in healthcare has never been more important than now with the tough lessons of the recent pandemic. One of these lessons revealed the vulnerability of health systems buckling under the strain of huge medical demands at the height of COVID-19. While both the public and private sectors needed to step up, there is an even bigger need to anticipate, more than just respond to, any future health crisis.

This brings to light the importance of access and what the private sector has been doing in helping bridge the healthcare socio-economic gap. For SM and its foundations, this means better community access to quality primary healthcare in partnership with national and local governments.

Medical missions allow access, especially for remote or economically disadvantaged communities, to medical care, education, and support. SM Foundation’s (SMFI) medical missions provide free consultations, basic laboratory tests, dental check-ups, and proper dosage of appropriate medicine. SM Foundation reached an important milestone by conducting more than 1,600 medical missions, benefiting nearly 1.3 million patients year-to-date.

“Patients who once endured long queues at crowded healthcare facilities now find relief as we bring healthcare services to remote barangays or provide them conveniently at our malls and properties,” Connie Angeles, SM Foundation Executive Director for Health and Medical Programs said.

While health facilities offer a venue for the conduct of medical services, fixing them up through thoughtful and meaningful design could do more for the community than just provide space. Rural health centers are considered lifelines, offering a comprehensive range of health services at a minimal cost or even free to the most vulnerable.

“These opportunities to rebuild health centers do more for human well-being. The refurbishment of public healthcare facilities not only enhances their capabilities by way of improvements and new equipment but also makes these facilities more responsive and conducive to the health needs and recovery of those they serve,” Ms. Angeles said.

Furthermore, the renovation allows public health centers to meet PhilHealth Accreditation standards, resulting in an increase in PhilHealth utilization and helping decongest city hospitals and minimizing the spread of communicable diseases.

Through these accredited health centers, patients could avail themselves of PhilHealth benefits such as primary care, maternity care, and pharmacy needs at the barangay level. These efforts also result in increased capitalization for local governments. Many sectors also benefit from these renovations including the Armed Forces of the Philippines, the Philippine National Police, terminally ill patients, and women and children to name a few.

SM Foundation’s 200th rural health center in Laguna is a classic example. “Marami kaming programa na hindi namin malagyan ng lugar kasi kulang ang space kaya’t naghahagilap kami kung saan ito ipu-pwesto,” said Dr. Elmira Montesa who leads the Santa Cruz Rural Health Unit (SCRHU). [We have many programs that we can’t accommodate because there is not enough space and we are scrambling for places for these.]

Following the Department of Health’s (DOH) guidelines, SM Foundation elevated the SCRHU. The rehabilitation transformed the center into a welcoming space, featuring comfortable waiting areas, a reception area for health workers, and designated facilities for breastfeeding mothers, the elderly, and persons with disabilities. It has a mobile play cabinet for children coping with illnesses. SM also included a rainwater catchment system to the renovated facility to contribute to water conservation.

In 2023, SM Foundation breathed new life into UP-PGH’s post-COVID & PulmoCare hub. Prior to the rehabilitation, UP-PGH Division of Pulmonary Medicine chief Dr. Lenora Fernandez recalled that the facility struggled to expand its services to meet the growing needs of the community.

The newly refurbished facility now has a new lobby to receive patients and spacious rooms with dedicated areas for rehabilitation, ultrasound, cardiopulmonary exercise testing, and virtual consultation. Dr. Fernandez expressed optimism about the future of the hub and sees the number of patients served growing every year.

The birthing facility in Brgy. Irawan, Palawan was given a new lease on life with the improvements done by SM Foundation, enabling the facility to secure necessary licenses to resume operations. “Kahit ilang kilometro ang layo nito sa mga kapwa ko katutubo, ito ang pinakamalapit na birthing facility dito sa aming lugar. Noong kami ay nahinto, may mga pagkakataon na may nanganganak na sa loob ng sasakyan,” midwife Narcisa Jagmis, a member of the Tagbanua tribe, and who leads the birthing facility said.

[Even though it is several kilometers away from my fellow natives, this is the closest birthing facility here in our area. When we were stopped, there were times when someone was giving birth inside the car.]

SM Foundation supported the community by revamping the birthing facility in 2023, enabling it to obtain the required licenses to resume operations. Dedicated rooms and spaces for storage, scrub-up, breastfeeding, consultations, birthing, clean-up, and sterilization, as well as labor and recovery wards were added. It also introduced a rainwater harvesting system and installed energy-efficient lighting fixtures and appliances.

Another SM affiliate, BDO Foundation, also achieved a major milestone as it rehabilitated its 160th rural health unit (RHU) in 2023. This involved renovating exteriors, layout and interior design, lobbies and waiting areas, offices, birthing clinics, consultation rooms, treatment rooms, and pharmacies as well as installing breastfeeding stations for nursing mothers, play areas for children, and waiting lounges for senior citizens.

BDO Foundation also installed new signages, furniture, and fixtures to help health workers accommodate more patients in environments conducive to good health and well-being. The improvement of facilities empowers doctors, nurses, and midwives to provide quality primary healthcare services more often and more efficiently to their constituents. The initiative also benefits mothers, infants and children, persons with disabilities, senior citizens, and indigenous peoples living in remote areas.

BDO Unibank and BDO Network Bank officers also recommended health centers in need of assistance. The DOH, local government leaders, and health officers backed the initiative by providing guidance on the renovation of RHUs. Through the rehabilitation program, BDO Foundation helped health centers receive high assessment scores in healthcare delivery from the DOH and accreditation from PhilHealth. These improve the healthcare delivery system in line with the goals under the Philippine Health Agenda.

Combined, SM Foundation and BDO Foundation have refurbished and built a total of 364 health centers and medical facilities. As the group reaches out to more communities, it aims to effectively contribute to Sustainable Development Goal 3 (Good Health & Wellbeing) by consistently providing equitable access to quality basic services towards a better and healthier tomorrow.