SM GROUP OF COMPANIES

[History, Good Governance and Social

Responsibility]

Presented by:

Pinky C. Condes
Shienna Marie L. Dequito
Marjorie S. Rufino
Kass Mari D. Sarte
Ashlea A. Salicula

December 19, 2022

FOUNDER

Henry Tan Chi Sieng Sy Sr.

Also known as the "father of

modern Philippine retail” was a
Filipino businessman and investor.
Born in Fujian, on December 25,
1924.

He moved with his family to the

Philippines at age 12. While his
family returned to China, he stayed
behind and founded ShoeMart, a
small Manila shoe store, in 1958.

HISTORY

The SM story began in

1958 when founder Henry
Sy, Sr. opened the first
Shoemart store in downtown
Manila.

At that time, Mr. Sy, he

thought that if he could sell a
pair of shoes to every Filipino,
he could be a successful man.

In the 1960s, Shoemart expanded its shoe store chain, and became one of
the pioneers in the new urban centers in Makati and Cubao.

In 1972, Shoemart turned into a full-line department store. In 1985, the

company ventured into the supermarket and home appliance store business.
It opened the first "Supermall" in the same year named SM North EDSA in
Quezon City.

As years goes by, SM was getting bigger, making plenty of companies under
its name. SM Prime, SM Retail, SM Land, SM Investments, Banco de Oro,
2GO Group, Goldilocks, China Bank, and even holds many Crescent Park
properties.

Today, SM has close to a thousand retail stores and 70 malls in the

Philippines, and 7 malls in China.
GOOD GOVERNANCE

SM Group of Companies remains committed to the values and principles of

good corporate governance. Through its B.O.D and Management, the
Company has established corporate governance practices that deliver
financial sustainability in a manner that upholds the governance principles of
fairness, accountability and transparency.

1. Annual Corporate Governance Report

- The Annual Corporate Governance Report (ACGR) highlights the

company’s corporate governance practices and provides detailed information
on SMs Board of Directors and Management and policies and programs.

2. Code of Ethics

- States the principles that guide SM’s Directors, officers and employees
in the performance of their duties and responsibilities, and in their transactions
with investors, creditors, customers, contractors, suppliers, regulators and the
general public.

3. Employee’s Welfare

- In line with its mission and vision, SMIC strives to be an employer of

choice and provides for the health, safety and welfare of its employees. The
Company has established policies and programs that promote a safe and
healthy work environment that caters to all cultures and creeds and
encourages employee development and growth.

4. Orientations and Training

- Remains committed to providing its directors, officers and employees

opportunities for growth and development through its various training and
orientation activities.

5. Enterprise Risk Management

- Implements a program of risk management through the identification,

analysis, management and monitoring of risks which can most impact the
Company’s ability to pursue its approved strategy.
SOCIAL RESPONSBILITY

SM Foundation, Inc. is the corporate social

responsibility arm of the SM Group of
Companies.

The SM Group of Companies has been able to help the less fortunate in the
communities it serves by supporting their needs

These are the services that SM Foundation provides;

1. EDUCATION

SM Foundation established the SM College Scholarship Program in

1993 to support bright, underprivileged public high school students in securing
higher education.

It also offers short courses under its Technical-Vocational Scholarship

Program and donates school buildings through the SM Foundation School
Building Program.

2. HEALTH

Conducts health and wellness programs to the marginalized members

of society. SM Foundation provides free, comprehensive, accessible and
quality medical and dental care to target beneficiaries nationwide.

3. COMMUNITY DEVELOPMENT

Various livelihood trainings for farmers, greening projects, spiritual

development and immediate disaster response/initiatives.

4. CARE FOR PERSONS WITH SPECIAL NEEDS

Those with disabilities, children, nursing mothers, the elderly, and the
overseas Filipino workers, among others.
On the other hand, SM Cares, , a division of SM Foundation, is the Corporate
Social Responsibility of SM Supermalls, with programs to support
communities, promote social inclusion and care for the environment.

These are the programs that SM Cares offer:

 Program on Children and Youth

Children from both public and private schools are invited to the malls
for a day of book reading and storytelling. The children also get to bring home
their own books donated by SM Foundation and event partners.

 Program on Nursing Mothers

All SM Supermalls encourage the interaction of mothers and their

children by allowing nursing activities located in every SM mall fitted for their
privacy and extra comfort.

 Program on Overseas Filipino Workers (OFW)

SM partnered with various government agencies and private

institutions to benefit the OFWs and their families, including NGOs that give
seminars on how to manage their money and start a business.

 Share-Your-Extras

In partnership with the DSWD, the Share-Your-Extras Program

encourages shoppers to donate excess clothes, toys, household and other
basic commodities to the less fortunate.

 Donate-A-Book

This was created to promote a passion for reading among the youth.
This yearly initiative aims to improve literacy and enhance comprehension
and creative skills through books.