SM group, composed of 7 listed companies, is one of the largest listed companies in the Philippines, established in 1958 by Mr.

Henry Sy, Sr., a Filipino of Chinese descent. SMs major businesses cover areas of mall operation, hotel, retail (supermarkets, department stores and brand stores), tourism, banking and financial services. SM Group was founded by Mr. Henry Sy, Sr. in 1958 and includes the supermarket, department store, shopping center, banking, real estate development, and tourism sectors. Shopping centers are the companys core businesses. SM Group has 52 largescale shopping centers in the Asia, with a total area of more than 6.00 million square meters and a daily customer flow of nearly 4 million. SM Group now possesses three of the worlds top ten shopping centers: SM City North EDSA is the world's third-largest shopping center, SM Mall of Asia, located in Manila Bay, is the world's fourth large shopping center, and SM Megamall is the worlds seventh largest shopping center. Since entering the Chinese market, SM Group has set up shopping centers in Xiamen, Jinjiang, Chengdu, Suzhou, Chongqing, Zibo, Tianjing cities. These projects have demonstrated the goal and impact of SM Groups strategy to build "new centers of urban life" and have improved local business facilities and quality of life. As chairman of SM Prime Holdings, Mr. Henry Sy, Sr. is acknowledged as Retail King of the Philippines. In 2005, the American magazine Times covered a story on the SM management. SM Prime Holdings was rated as One of Asias Most Admired Companies by The Wall Street Journal Asia in 2006.

History

On October 1958, Henry Sy, Sr. opened the first Shoemart store along Rizal Avenue in downtown Manila. In the 1960s, the company expanded its shoe store chain. It was one of the pioneers in the new urban centers when it opened bigger shoe outlets in the Makati Commercial Center in 1963, and in Cubao in 1967. Shoemart marked its shift from a shoe store to a full department store, in the 1970s. They were SM Quiapo in Echague (now Carlos Palanca St.) in 1972, SM Makati in 1975, SM Cubao in 1978 and the first store outside Metro Manila, SM Delgado in Iloilo City in 1979. SM positioned itself for growth in the 1980s, diversifying into the supermarket and appliance store business. Late 1985 marked the opening of a shopping mall, the SM City North EDSA. In 2011, some new existing branches of SM Department Store were renamed as "The SM Store". First used in Agana Shopping Center. SM City Masinag was the first SM Supermall to use the "SM Store" brand.

Vision
SM Prime envisions to be a leader in world-class mall development, committed to deliver the daily needs of millions by offering a total mall experience and creating a richer, better quality of life

Mission
SM Prime commits to the following mission: To constantly provide customers with a fresh and world-class mall experience through innovative and state-of-the-art facilities and services; To undertake wide-ranging corporate social responsibility initiatives that provide greater service for customers with special needs, and ensure environmental sustainability through various programs on energy, water and air conservation; To be an employer of choice, offering comprehensive opportunities for career growth and enhancement; To deliver sustainable shareholder value; and long-term growth and increasing

To uphold its role as a catalyst for economic development.

Retail Affiliates
Aside from bags, shoes and apparel, SM Department Store also features other products through the following retail affiliates: Watsons Personal Care Baby and Company Ace Express Toy Kingdom Express Homeworld Kultura Pilipino Levi's by Signature Lines Stationary Department Musicbox Snack Exchange

Subsidiaries
Retail and Malls SM Prime Holdings is the parent company of the SM Group's shopping malls. It is the largest shopping mall and retail operator in the Philippines. It was incorporated on January 6, 1994 by FilipinoChinese entrepreneur Henry Sy to develop, conduct, operate and maintain SM commercial shopping centers and all businesses related thereto, such as the lease of commercial spaces in the compound of shopping centers. It went public on July 5, 1994 and subsequently grew to become the largest company listed on the Philippine Stock Exchange in terms of revenue. The company's main sources of revenues include rental income from mall and food courts, cinema ticket sales and amusement income from bowling and ice-skating.

As of this year, SM Prime become one the largest shopping mall chains in the world with 40 supermalls with eight proposed/under construction. Its largest mall and first of all SM malls is SM City North EDSA. Alongside is the once-largest mall in the country, SM Mall of Asia and the largest mall for a 15-year period, SM Megamall. SM Prime operates the following: SM Department Store

SM Department Store is the foundation of SM and the country's leading lifestyle and fashion chain. SM Department Store has served Philippine shoppers for 50 years, becoming the only country who has more than 100 department stores. SM holds more than 50 SM Department Stores nationwide. SM Supermarket

SM Supermarket is the country's top supermarket chain. With an extensive, nationwide presence and employing state of the art retailing technology, it offers food and non-food products. SaveMore Market SM Hypermarket

SM Hypermarket is a rapidly growing retail chain, selling wet market, grocery, general merchandise, and discount products. Pilipinas Makro, Inc. (Makro)

Pilipinas Makro, Inc. (Makro) is the one-stop leading retail chain. Now it is a member of SM Group. Banking Banco De Oro is the largest bank in the Philippines in terms of assets. It is a full-service universal bank providing a wide range of corporate, commercial, retail, private banking and investment banking services through its 700 branches in key business and commercial areas nationwide. It has the largest loan portfolio as well as the largest trust of Philippine banks.

China Banking Corporation

China Banking Corporation is the Philippines' fourth largest universal bank by market capitalization. Established in 1920, it is the first privately owned commercial bank in the Philippines. It is likewise the first bank in Southeast Asia to process deposit accounts online in 1969 and the first Philippine bank to offer phone banking in 1988. China Bank is one of the strongest and most profitable banks in the Philippines today. The Bank posted a January to September 2009 net income of P3.21 billion, 40.7% higher than the P2.28 billion income recorded for the same period in 2008. This income performance translates to a 15.53% return on equity and a 2.02% return on assets, among the highest in the industry. China Bank provides a wide range of banking services through 248 branches and 388 ATMs nationwide (including China Bank Savings). The bank continues to move forward with its aggressive branch expansion plan and is on track to hitting its target of 300 branches by 2011. Real estate property SM Development Corporation is a fast-growing residential property developer focusing on the premium middle market. SMDC now operates SM Residences and MPlace. Highlands Prime, Inc.

Highlands Prime is the leading high-end residential developer in Tagaytay Highlands, an exclusive, world-class mountainside resort and residential complex. Mall of Asia Complex

The Mall of Asia Complex is an alternative business and tourism district and the home of the SM Mall of Asia, SMX Convention Center (the largest private venue in Philippines), One E-com Center and Mall of Asia Arena (one of the largest private sports venue in Philippines). The Mall of Asia Complex occupies 60 hectares of prime land along the coast of scenic Manila Bay, offering choice locations for business, tourism, retail, and leisure projects.

Hamilo Coast

Hamilo Coast is a unique large-scale ecotourism project to develop in phases 5,700 hectares of land by the sea in Nasugbu, Batangas into an innovative, integrated network of coastal resort communities. Mining Atlas Consolidated Minning and Development Corporation is engaged in gold mining operations. Hospitality and convention SM Hotels

SM Hotels and Conventions now operates Taal Vista Hotel in Tagaytay City, Radisson Hotel Cebu, Pico Sands at Pico de Loro in Nasugbu, Batangas, SMX Convention Center in Pasay City and Megatrade Hall in Mandaluyong City and Cebu. SMX

SMX is a state-of-the-art convention center located within the Mall of Asia complex hosting conventions, seminars, and conferences. SM Mall Of Asia Arena

The SM Arena is a concert venue and other big events. Gaming Belle Corporation is Henry Sy's foray in the gaming industry in the Philippines hoping to capitalize on the future of Pagcor's entertainment city.

SM Foundation is the corporate responsibility arm of the SM Group of Companies through which the SM Group helps the communities it serves. These communities are areas in the vicinity of the SM department stores and super-malls that are in need of assistance. The foundation has various areas of advocacy: education, scholarship programs, building schoolhouses, a mall-based outreach program, health care, medical missions, mobile clinics, hospital activity centers, housing and community.

SM Cares is a program born to consolidate and coordinate all of SM Prime's corporate social responsibility (CSR) initiatives. Carried out in all 40 SM malls nationwide, SM Cares' award-winning CSR projects cover environmental conservation (energy, air and water), and assistance to customers of SM malls with special needs such as the disabled, special children, the elderly and nursing mothers. SM Cares is SM Prime's commitment to be one of the country's leading CSR advocates.

EDUCATION
SM COLLEGE SCHOLARSHIP PROGRAM The SM College Scholarship Program was established by SM Foundation in 1993 to help provide quality education to bright but underprivileged public high school graduates. The program has 1200 college scholars at any time nationwide. The scholars are enrolled in 73 colleges and universities in NCR, Baguio, Batangas, Bulacan, Cavite, Laguna, Lucena, Pampanga, Pangasinan, Rizal, Tarlac, Bacolod, Cagayan de Oro, Cebu, Davao, Iloilo. To date, 1464 scholars have graduated from the program and many of them are gainfully employed with the SM Group of Companies and other companies here and abroad. SM Foundation takes pride in its scholars achievements. The 2012 batch of graduates composed of 164 scholars yielded 76 who attained Latin Honors and Academic Distinction; 3 Summa cum Laude, 13 Magna cum Laude, 45 Cum Laude, and 15 Academic Distinction.

Chairman and Founder of the SM Foundation, Mr. Henry Sy Sr. together with the SM scholars during their General Assembly held at the SM Mall of Asia.

New graduates of the SM College Scholarship Program are eager participants in a Job Offer organized by the SM Foundation and the Human Resources Department of the different SM Group of Companies. SMFIKabayan Foundation in TOPS Search In 2011, SMFI signed a MOA with Kabayan Foundation to manage the search for TOPS (Ten Outstanding Public High School Students). There are four awardees for Academic Excellence, four for Leadership Excellence and two for Special Circumstances. The winners receive full college scholarships plus monthly allowance. TECHNICAL VOCATIONAL SCHOLARSHIP PROGRAM SM Foundation also opened its scholarship program to enrolees in Technical-Vocational courses in Punlaan School and Don Bosco, Makati. There are scholars and graduates in this program.

Punlaan School

Don Bosco Technical Institute, Makati

SCHOOL BUILDING PROGRAM The school building program assists in addressing the lack of classrooms in public elementary and high schools. Since 2002, SMFI has supported the Adopt-a-School Program of the Department of Education. Its lead benefactor, SM Prime Holdings, Inc. through SM Foundation has to date donated 46 school buildings with 114 classrooms. The classroom models are single-storey, two-classroom; single-storey, four-classroom; and two-storey, four classroom. Out of 46 school buildings, 12 resulted from a partnership with Deutsche Ag Manila Branch, Gfk Consulting, Stephen CuUnjieng and Banco De Oro Foundation.

SCHOOL BUILDING SITES LUZON Rizal Manuel I. Santos Memorial N.H.S. Sitio Tapayan Elementary School Muntindilaw National High School Pangasinan Carmen Elementary School Guiling-Coliling National H.S. Batangas Batangas National H.S. NAVERA Annex Looc National High School Bulacnin National High School Quezon Padre Burgos Elementary School Ransohan Elementary School Dalahican

Baguio Josefa Cario Elementary School Bulcan Irisan National High AFG Bernardino Memorial Trade School School San Manuel Elementary Pines City National H.S. School Pinsao Annex

Pampanga Cavite Pandacaqui Bagong Bayan Resettlement Elementary School Elementary School Paliparan III San Vicente Central Elementary School School Bacoor National Mabalacat Community High School Annex High School Malinta Elementary Sapalibutad Elementary School School Assumpta Technical School NCR Llano Elementary School D. Tuazon Elementary School Dr. Artemio Natividad Elementary School AGAPP School Building Tanza Elementary School VISAYAS Iloilo City Ticud Elementary School Nabitasan Elementary School Montes Elementary School N.J. Ingore Elementary School Barrio Obrero Elementary School

Elementary School Gov. Natalio & Susana Enriquez E.S. Naga Don Manuel Abella Elementary School Tinago National High School

MINDANAO Cagayan De Oro City Consolacion Elementary School Mambuaya Elementary School Davao City Tugbok National High School Communal Elementary School

Bacolod City Alangilan National General Santos City High School GSC-SPED Vista AlegreIntegrated School Granada Relocation Banisil National High E.S. School

EDUCATIONAL TELEVISION (ETV) INFRASTRUCTURE TO PUBLIC ELEMENTARY SCHOOLS In 2005, SM Foundation partnered with ABS-CBN Foundation to help provide quality education for children enrolled in public elementary schools thru educational TV (ETV). SM Foundation donated ETV infrastructure with teacher training to 60 elementary schools in Dasmarias Cavite, Batangas City and NCR.

Grade III pupils of Lankaan Elementary School, Dasmarinas, Cavite with their teacher as facilitator, supplement their knowledge in Science by viewing the educational TV materials.

Grade VI pupils of Vicente P. Villanueva Memorial Elementary Schools watch one of 108 educational tapes from the Educational package.

HEALTH AND MEDICAL

MEDICAL MISSION PROJECT

Indigent families in areas within the vicinity of SM malls as well as disaster victims are given assistance through the foundation's medical missions. Known as Gamot Para sa Kapwa, these missions bring together the Department of Health medical volunteers, NGO's and local officials.

HOSPITAL

ACTIVITY

CENTERS

Keeping in mind the plight of sick children, SM Foundation, Inc. (SMFI) has set up SM Activity Centers in numerous pediatric wards of Government Hospitals all over the country. The center is a fully furnished recreation room that provides worthwhile activities to chronically ill patients. Wall to wall murals, toys, play equipment and educational materials are provided for. With Activity Center's childfriendly approach --- children's fear and apprehensions of hospitals and doctors are eased.

SM

HOSPICE

UNIT

While there is nothing more that can be done to cure, there is no limit to what can be done to make the patient as comfortable as possible. SM Foundation creates the appropriate atmosphere in its Hospice Care Unit. Serious and terminally ill patients benefit from the program.

When the cure of the disease is no longer possible, the focus of treatment shifts from curing to caring. This is where SM Foundation comes in... TO CARE! SM Mobile Clinic

This is a mobile medical laboratory that makes health services accessible. It was established in support of the medical missions to provide diagnostic and laboratory services. These services are: Chest X-Ray, ECG, Urinalysis, Bone Density Scanning, Fasting Blood Sugar, Random Blood Sugar and Cholesterol determination and Dental Tooth Extractions. All services are FREE of charge.

Wellness

Centers

for

the

Elderly

These centers serve as an avenue for the self and social enhancement of the senior citizens. It is a meeting place for recreation, socialization, education, information and livelihood activities. The Felicidad T. Sy Wellness Centers for the Elderly provide worthwhile activities to geriatric patients to lessen the emergence of behavioral symptoms that are associated with ageing while providing recreation and physical fitness to help maintain the Senior Citizens' functional abilities.

Outreach program
OPERATION: TULONG EXPRESS

In partnership with the Department of Social Welfare and Development, this project encourages shoppers to donate their excess clothes, household, and other basic commodities to the less fortunate.

LIVELIHOOD
KABALIKAT SA KABUHAYAN FARMERS TRAINING PROGRAM The KSK-FT is a program that provides farmers with more effective ways of producing high yielding fruits and vegetables. The program is much like backyard farming, only it is enhanced by new technology to produce better results. It is a 12-step program that teaches farmers seed culture and propagation, irrigation and fertilizer application, among other skills. The KSK-FT is a joint undertaking of SM Foundation with the private sector and government agencies.

At present, we have 37 farmers training program with 4,725 graduates

Environmental Advocacies
SM's ongoing ecological programs have four components that have been an integral part of its operations and business practices: waste management, water conservation, air quality efficiency, and energy quality efficiency. Apart from being good business practices that have a sustainable impact on the mall and the environment, these green programs ultimately benefit customers through its efforts to create more eco-awareness.

All SM malls Treatment

have

this

Sewage

SM Supermalls promoting Sustainable Architecture and Green Design on its malls.

Simultaneous Recycling Market is held every first Friday and Saturday of the month at all SM Supermalls Open Parking Area from 8AM to 2PM.

SM Supermalls Green Bag is made from durable non-woven fabric that can last for approximately two years of weekly trips to grocery.

The Waste Management Program includes Trash to Cash, a Waste Market Fair held simultaneously at all SM Supermalls every first Friday and Saturday of the month. SM has also promoted garbage segregation by installing segregated trash bins in its malls, as well as the launching of eco- friendly packaging like the SM Department Store's biodegradable bags and SM Supermarket's Green Bags. Water Conservation involves the installation of waterless urinals and faucet aerators; and most importantly, the recycling of water from its tertiary treatment plants. Air Quality Efficiency Started from prohibiting smoking inside mall premises, providing bicycle parking spaces to lessen air pollution, and creating al fresco dining spaces in most of the SM malls. For better air quality efficiency, replaced all its chillers using R11 to R123 and R134 refrigerants in compliance with the Clear Air Act. Energy Quality Efficiency is made possible through the VAC System, including the chiller VSD, a variable speed device, and BMS control. The skylights built into the designer of newer malls are not only scenic, but also held reduce the consumption of energy. To create more awareness about the environment, SM has shown the Al Gore documentary An Inconvenient Truth at selected cinemas, as well as organized a conference about Sustainability, Energy, and Green Design at the SMX Convention Center. SM Supermalls has also actively participated in various activities like the Earth Day celebration, the Earth Hour, and tree planting endeavors. As a business entity, SM is not only concerned about profit, but also in increasing efficiency and savings which can only be accomplished by tapping natural resources and addressing environmental concerns. The company believes that going green is profitable and good for business, and for its customers.

References: http://sminvestments.com http://www.smprime.com http://www.smcity.com