Built to protect: SM Prime’s flood mitigation strategy

SM Prime Holdings (SM Prime), a pioneer in sustainability initiatives in the Philippines, has long
been committed to environmental stewardship and building resilient structures. From its early
adoption of water recycling and innovative energy management programs to operationalizing
renewable energy and waste management, SM Prime has consistently prioritized sustainability.

This commitment was further underscored by the company's active participation in the recent
Asia Pacific Ministerial Conference on Disaster Risk Reduction, hosted by the Department of
Environment and Natural Resources and the Office of Civil Defense. At the conference, Hans
Sy, Chairman of the Executive Committee, emphasized the critical role of resilience in urban
populations and how innovation and multi-sectoral collaboration are essential for the country's
sustainable development.

The Philippines is highly vulnerable to natural hazards, especially tropical cyclones and
typhoons, making disaster risk management (DRM) and resilient infrastructure crucial. SM
Prime employs a hydrological survey approach in building locations to determine flood
susceptibility.

A strong example of such resilience lies in SM City Marikina, whose unique structure was
lauded by the United Nations Office for Disaster Risk Reduction. Built beside the Marikina River,
an area prone to flooding during severe weather events, SM City Marikina stands on 246
concrete stilts. This innovative design allows floodwaters to flow beneath the structure, leaving
the mall and its occupants safe and dry. During Typhoon Ondoy (Ketsana) in 2009, which
devastated surrounding areas, SM City Marikina remained intact, serving as a refuge for those
affected by the disaster. Similar to the stilts methodology, SM City Cabanatuan's lower ground
parking level serves as a temporary catchment basin.

Beyond these two malls, this promise of flood resilience is present in other properties. A key
innovation employed by SM Prime is the implementation of rainwater catchment basins in its
malls. These massive underground tanks, similar in size to swimming pools, collect and store
rainwater from the street level, mitigating flooding in surrounding communities. Twenty-nine SM
Supermalls across the country are equipped with these basins, boasting a combined capacity of
85,400 cubic meters - enough to fill over 34 Olympic-sized swimming pools!

These catchment basins have proven invaluable during recent typhoons. For instance, SM City
Masinag's rainwater catchment basin played a crucial role during Super Typhoon Carina
(Gaemi) last July 2024, effectively managing the increased water volume. It collected 8,652.60
cubic meters of rainwater, equivalent to 264 gallons of water. As the first SM mall equipped with
a rainwater catchment basin, SM City Masinag was strategically built in a historically flood-prone
area, serving as a catch basin for water flowing down from upper Antipolo. In the second half of
2024, SM malls prevented an estimated total of 46,405 cubic meters of rainwater-the volume of
18 Olympic-sized swimming pools-from flooding the surrounding areas.

Mr. Gareth Aboy, a resident and former officer of Vermont Phase 1 Association near SM City
Masinag, expressed his gratitude: "The residents of Vermont Park Executive Village of Antipolo
would like to extend our thanks and appreciation to SM City Masinag for always being there in
our times of need. Thank you for keeping your doors open for our immediate daily needs, your
elevated parking spaces for our vehicles, and for keeping your water catchment basin open to
help drain the water from our flood-prone village. SM City Masinag has always been and will
continue to be a treasure for the residents of Vermont Park Executive Village of Antipolo."

Sustainability and resilience are at the core of SM Prime's business strategy. The company
invests significantly in these measures, recognizing that the benefits - safer communities,
environmental protection, and enhanced business continuity - far outweigh the costs. SM Prime
remains committed to building a more resilient future for the communities it serves.