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I. Philippine Economic Outlook  Real GDP  BPO and OFW Remittances  Foreign Exchange and Interest Rate  Inflation Outlook II. Sector Profile  Population and Employment  Housing Supply and Demand III. SM Development Corp  Fast Facts  Financial Highlights

Real GDP Growth 2014 Real GDP Account % 8 0.4% 7 6 20.9% 5 10.2% 4 68.4% 3 2 1 0 Consumer Spending Government Spending Investment Others  Economy to get a boost from election-related spending going to 2016  Consumer spending remains the driver of growth, thanks mostly from improving income and stable domestic price of goods  GDP to grow at around 6% to 8% over the medium term

OFW Remittance (USD Billion) BPO Revenue (USD Billion) 30 25 25 20 20 15 10% CAGR 27% CAGR 15 10 10 5 5 0 0  Remittance from overseas Filipinos remain stable and have grown steadily through the years  BPO’s annual revenue to reach US$25bn in 2018 and likely to employ almost 2m workers, equivalent to 3% of total workforce

1-Year Treasury Bill Rate (%) PHP VS US$ (Spot) PHP % 58 18 56 16 54 14 52 12 50 10 48 8 46 6 44 4 42 2 40 0  Philippine Peso comparatively stable against other Asian currency due to current account surplus and high gross international reserves  This allowed domestic interest rate below historical levels

Average Inflation Rate (%) Consumer Price Index Breakdown (%) % Food and Non-alcoholic 9 Beverages Alcoholic Beverages and 8 Tobacco 7 3% Clothing and Footwear 6 2% 12% Housing and Utilities 2% 5 39% Furnishing and Household 8% 4 equipment Health 3 3% 2 Transport 23% 3% 1 Communication 2% 0 3% Recreation Education Miscellaneous  Inflation remains benign due to better yields on domestic grain products and lower price of oil globally. The Philippines import 95% of its fuel needs annually  Staple food still accounts for almost 40% of CPI

Population Age (In Millions) Unemployment Rate (%) % Age 8.5 85 and Over 80-84 8.0 70-74 7.5 60-64 7.0 50-54 6.5 40-44 30-34 6.0 20-24 5.5 10-14 5.0 Under 5 0 2 4 6 8 10 12 The Philippines has a young population with a median age of just 24 years  This suggests larger workforce to support the economy with the higher propensity to  spend on aspirational needs including their own home

Housing demand and supply profile (No. of units) Residential Permits (In Thousands) Units 92 90 88 86 84 82 80 78 76 74 72 2008 2009 2010 2011 2012 2013 2014  Government estimates that housing demand is close to 6m, bulk of the demand coming from the lower income groups and younger workers  Industry output of 200k annually is not enough to address housing demand

Operates under SMDC, a leading  condominium developer in Metro Manila Accounts for 33% of the group’s revenue  Air Residences, Makati City 8 projects (3 new projects; expansion of 5  existing projects) to be launched this year Have a land bank of 181.8 hectares, some of  which can be converted into mixed-use Cool Suites, Tagaytay City developments Air Residences, Makati city

Projects Overview Ready-for-Occupancy (RFO) Units (1H15) 3,879 Ongoing Construction (Unsold Units) 15,025 Total Units Made Available since 2003 79,741 Planned launched in 2015 12,000-15,000 units Reservation Sales for 1H15 (value) PHP19.1 bn Reservation Sales for 1H15 (units) 6,868 2015 CAPEX PHP22.4 bn Project PHP12.4 bn Landbanking PHP10.0 bn Landbank (Hectares) Metro Manila 57.9 Outside Metro Manila 123.8 Air Residences, Makati City Land for Future Projects 181.8

Units Launched VS Units Sold Launched VS Sold (PHP Millions) 18,000 40,000 16,000 35,000 14,000 30,000 12,000 25,000 10,000 20,000 8,000 15,000 6,000 10,000 4,000 5,000 2,000 - - 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2007 & 2008 2009 2010 2011 2012 2013 2014 YTD & 2015 Prior 2015 Prior Launch Sold Launch Sold  SMDC is comfortable to launch 12k to 15k units annually  Most of SMDC projects are near CBDs, schools, transport hubs and SM Malls  Management’s focus is to improve profitability through tapping new markets and areas

(In PHP billion) 1H2015 1H2014 % Chg Revenues 11.7 11.1 5.1% EBITDA 3.8 3.2 16.5% Operating Income 3.7 3.1 17.2% Residential revenue (32.6% of consolidated revenue) continue to show improvements,  following the 5.4% year-on-year growth Reservation sales grew by 24% year-on-year to 6,868 units in the 1H2015 translating to a  28% increase in value worth PHP18.8 billion Gross profit margin improved to 46% from 43% while net income margin increases to 26%  from 24%