Source: Annual Report 2010

2010 also marked the end of a decade when SM Prime transformed itself into a dominant player in mall development. It was a time when your company saw an increase in momentum as we grew the number of SM malls from just 10 at the start of 2001 to 43 malls by the end of the decade. Your Company drew its strength from a focused vision, a progressive organization, and a much improved economic environment that benefitted a broader spectrum of Philippine society.

We welcome this new decade with greater optimism. All indications point to a decade that will allow your company to scale new heights, fulfill bigger dreams, and reach out to bigger untapped markets.

In the Philippines, our path leads us to provincial areas where aspirations are high and the existing capacity is low for quality malls. This direction stems from the need for better retail facilities and services in cities and municipalities that are fast emerging from greater economic stability and the continued support that is largely provided by overseas workers.

As we open new avenues from growth, we are also committed to continually upgrade our existing malls by keeping them fresh with new concepts and the environment. We deem it our duty to meet the aspirations of all our patrons who deserve nothing less.

In China, SM Prime has entered a large playing field where countless opportunities await those who have a strong business model to contribute, particularly in the growth cities where populations are enormous amid rapidly rising incomes. Already, we are developing four more malls, of which one will become our largest. Located in the industrial city of Tianjin, the mall will have a total gross floor area of 530,000sqm.upon full completion. SM will also be in cities like Suzhou in 2011, Chongqing in 2012, and Zibo, also in 2013.

The success of SM’s existing malls in Xiamen, Jinjiang and Chengdu has generated greater interest from other city governments in China. As such, SM Prime has been receiving invitations from them likewise put up malls in their vicinities. The promise, therefore, of expansion in Asia’s economic powerhouse has become even brighter. There simply is no better platform for SM Prime’s growth than China, now and in decades to come.

Our continuing business expansion finds balance in our commitment to become a model corporate citizen by further institutionalizing good governance and social responsibility programs, support and empower our communities through SM Foundations’ college scholarship, health and wellness programs, mall outreach and livelihood projects.

As it is, the SM malls serve as the main anchor for SM’s other businesses because it creates venues for business activities and opens doors for new opportunities. And when SM Prime scales new heights, so does the rest of SM. And so do you, our loyal stakeholders.

Thank you for keeping the faith, and for being with us in this uplifting journey.