Telekom Malaysia Bhd. · MYX:TM

Telekom Malaysia Bhd — Investor Presentation (June 2017)

32 slides from Telekom Malaysia Bhd's investor presentation, Jun 19, 2017

  1. Slide 1: Telekom Malaysia Berhad

    TELEKOM MALAYSIA BERHAD 1

  2. Slide 2: Welcome to Life in the Era of Convergence

    “Everything | need is at the touch of a button.” WELCOME TO LIFE IN THE ERA OF converGence" Life Made Easier” 2

  3. Slide 3: Disclaimer

    Disclaimer This presentation is not and does not constitute an offer, invitation, solicitation or recommendation to subscribe for, or purchase, any securities and neither this presentation nor anything contained in it shall form the basis of, or be relied on in connection with any contract or commit

  4. Slide 4: Company Updates

    “Where we are able to go beyond our boundaries and stay on top of everything.” ‘Gal Company Updates Life Made Easier” 4

  5. Slide 5: Leadership Line-Up to Cement Our Position as Malaysia's Convergence Champion

    Leadership Line-Up to Cement Our Position as Malaysia’s Convergence Champion Board of Directors Board Audit Committee Managing Director / Group Chief Executive Officer Dato’ Sri Shazalli Ramly Chief Internal Auditor Group Company Secretary Hazimi Kassim Hamizah Abidin Chief Procurement Officer Group

  6. Slide 6: webe: Malaysia's first fully digital mobile company

    • Manifests TM’s Convergence Champion aspiration • Malaysia’s first fully digital mobile company • Service launched 30th September 2016 • April 2017, launched new webe products to cater SME’s broadband needs (webemobile biz and webebroadband biz) • Close to 2,300 LTE sites operational; more than 64%

  7. Slide 7: Our digital transformation supported by Convergence

    Our digital transformation supported by Convergence Fixed Mobile WiFi Superfast & seamless internet connection, everywhere and anytime Relevant lifestyle and business services on all your devices Delivered to you through an easy and enjoyable experience 7

  8. Slide 8: TM 360° Convergence Champion

    TM 360˚  CONVERGENCE CHAMPION  2.37mn broadband customers  >2.59mn HSBB ports nationwide  webe at 4.2% penetration of TM Households  >27,700 Warga Keluarga TM  RM2.96bn revenue as at 1Q2017  RM229.8mn Normalised PATAMI as at 1Q2017  >410% Total Shareholder Return since demerger*  RM808mn to

  9. Slide 9: Latest Developments

    Latest Developments Life Made Easier” 9

  10. Slide 10: Broadband Improvement Plan 2017

    Broadband Improvement Plan 2017 • Thank You Surprise! progressing well and will benefit 641,000 UniFi customers • >450,000 eligible customers have been upgraded • Expected completion of upgrades over the next few months *Subject to technical availability 10

  11. Slide 11: Enterprise and public sector developments

    • webemobile biz and webebroadband biz to cater to SME’s broadband needs • Held inaugural PROGRAMME for the Enterprise and Public Sector segments • Deployment of Smart C-RAN for Smart Putrajaya project • VADS’ Twin Core Data Centres, in Iskandar Puteri, Johor will be operational this year • Collabor

  12. Slide 12: Moving Forward

    “Where young minds are inspired to find new solutions to old challenges.” Moving Forward Life Made Easier” 12

  13. Slide 13: Convergence 2.0: Moving TM to deliver Life in the Era of Convergence

    Convergence 2.0: Moving TM to deliver Life in the Era of Convergence 13

  14. Slide 14: 1Q2017 Financial & Operational Highlights

    1Q2017 Financial & Operational Highlights 14

  15. Slide 15: Key 1Q2017 Highlights

    Key 1Q2017 Highlights Revenue +3.8% RM mn -8.4% 2,965 3,237 2,855 Revenue 1Q17 4Q16 1Q16 EBIT +8.5% (Normalised 0.0%) RM mn +6.3% (Normalised +3.9%) Reported EBIT 304 312 312 300 Normalised EBIT 286 280 1Q17 4Q16 1Q16 PATAMI RM mn -28.5% (Normalised +13.2%) +49.3% (Normalised -14.9%) 322 Reported PA

  16. Slide 16: Group Total Revenue by Product

    Group Total Revenue by Product Voice Data 1Q17 RM mn RM mn -5.3% +3.3% -6.2% -10.2% Others *18% Voice 732 27% 857 Data 849 804 657 636 22% Internet 33% RM2,965mn 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 Internet Others* 1Q16 RM mn RM mn +8.4% +12.4% Others* +1.9% -23.2% 17% Voice 697 30% 969 Data 951 535 22% 4

  17. Slide 17: Group Total Revenue by Customer Clusters

    Group Total Revenue by Customer Clusters Mass Market Managed Accounts 1Q17 RM mn RM mn +4.1% +2.3% Others* -0.2% -11.5% Global & 5% Wholesale 15% Mass Market 44% Managed 1,309 1,307 1205 Accounts 36% 1043 1067 1,255 RM2,965mn 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 Global & Wholesale Others* 1Q16 RM mn RM mn

  18. Slide 18: Physical Highlights: Healthy UniFi growth and stable ARPU

    Physical Highlights Healthy UniFi growth and stable ARPU Broadband 197 201 201 ARPU (RM) 192 194 89 89 90 92 90  UniFi customer base close to 979,000 customers; 81% on +0.3% packages 10Mbps & above 0.0% Customers (In thousand) 2,364 2,365 2,369 2,370 2,370  Contribution from upselling and content

  19. Slide 19: 1Q2017 OPEX & CAPEX

    1Q2017 OPEX & CAPEX Cost % of Revenue1 Group Capital Expenditure RM mn RM mn 2,616.9 2,980.4 2,698.8 318 352 90.3% 91.2% 89.9% 11.1% 11.9% 1.0 0.4 0.1 3.3 3.5 3.1 6.0 9.1 6.5 83 5.9 6.2 6.1 11.7 11.8 97 10.4 21.4 22.6 21.7 188 162 18.8 18.0 19.0 22.2 21.0 21.5 81 59 1Q16 4Q16 1Q17 1Q16 1Q17 Deprecia

  20. Slide 20: Group Cash Flow

    Group Cash Flow RM mn 1Q17 1Q16 Cash & cash equivalent at start 2,925.2 3,510.8 Cash flows from operating activities 391.7 528.3 Cash flows used in investing activities (673.0) (769.9) CAPEX 351.5 317.6 Cash flows used in financing activities (599.6) (77.8) Effect of exchange rate changes (12.2) (0.

  21. Slide 21: TM Group Debt Profile

    TM Group Debt Profile TM Group Debt Maturity Profile as at 31 March 2016 JPY denominated RM denominated Debt Currency Mix 1,626 USD denominated CDN denominated 1,200 925 850 908 Others 800 593 729 574 0.04% USD 20.19% 9 3 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2034 • Total debt as at end

  22. Slide 22: Group Balance Sheet

    Group Balance Sheet As at As at RM mn 31 Mar 2017 31 Dec 2016 Shareholders’ Funds 7,466.9 7,692.3 Non-Controlling Interests 94.2 140.2 Deferred & Long Term Liabilities 11,139.0 11,194.4 Long Term Borrowings 7,633.4 7,662.6 Derivative financial instruments 309.9 301.9 Deferred tax liabilities 1,541.8

  23. Slide 23: Thank you!

    Thank you! Investor Relations Level 11 (South Wing), Menara TM Jalan Pantai Baharu 50672 Kuala Lumpur Malaysia Tel: (603) 2240 4848/ 7366 / 7388 www.tm.com.my/investor [email protected]

  24. Slide 24: Appendix

    Appendix TM Life Made Easier” 24

  25. Slide 25: About TM

    About TM Credit Rating Capital Structure Moody’s • A3 • Authorised Capital: RM3,528,003,015.00 • Issued and Paid-up Capital: RM2,630,554,376.00 S&P • A- • Date of Incorporation: 12 October 1984 • Date of Listing: 7 November 1990 RAM • AAA Total Return To Shareholders 26% 32% FBMKLCI1 91.39% TM1 410.

  26. Slide 26: 2017 and Mid-term Headline KPI

    2017 and Mid-term Headline KPI 2017 Mid Term Revenue Growth1 3.5 – 4% 3.5% - 4% Maintain EBIT Growth1 2016 RM 3.5 – 4% level Customer Satisfaction 73* 73 Measure2 1 These KPIs are for TM including Webe. 2 This KPI excludes Webe for 2017. 2 Using TRiM index measuring end to end customer experience at

  27. Slide 27: Group Results: 3-Year Performance

    Group Results: 3-Year Performance Revenue EBIT RM mn RM mn +4.3% +2.9% -2.9% (Normalised -10.6%) -8.2% (Normalised -4.4%) 12,061 11,722 1,294 1,387 1,257 1,240 1,154 1,185 11,235 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 Revenue EBIT Normalised EBIT EBITDA PATAMI RM mn RM mn +1.6% (Normalised -1.3%)

  28. Slide 28: 3-Year Performance: Revenue by Product

    3-Year Performance: Revenue by Product Internet Data Voice Others* RM mn RM mn RM mn RM mn +12.4% +8.9% +2.5% +2.8% +1.1% -5.1% +0.6% +6.4% 3,367 3,668 2,745 2,317 2,995 3,469 3,507 2,670 2,606 2,165 2,178 3,330 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 *”Ot

  29. Slide 29: 3-Year Performance: OPEX & CAPEX

    3-Year Performance: OPEX & CAPEX Cost % of Revenue1 RM mn Total CAPEX RM mn 10,095.1 10,588.2 11.037.3 1,836 2,506 3,315 88.6% 89.4% 90.5% 16.3% 21.4% 27.5% 0.3% 2.0% 1.4% 3.6% 670 3.2% 3.3% 7.2% 6.9% 7.4% 6.0% 7.4% 6.6% 11.3% Bad debt 10.0% 533 11.0% Marketing Expenses Supplies & materials 1449 21.

  30. Slide 30: Reiteration of Dividend Policy

    Reiteration of Dividend Policy Telekom Malaysia Berhad ("the Company" or "TM") issues a statement to reiterate its stand on the Company's dividend policy. The Company’s dividend policy as announced at the time of the demerger between TM and TM International Berhad (TMI) remains valid. The policy sta

  31. Slide 31: Shareholder Returns (2009-2016)

    Shareholder Returns (2009-2016) Dividend Payout Policy of RM700mn or up to 90.0% of Payout Normalised PATAMI whichever is higher Ratio3 (%) 150.9% 124.2% 110.5% 89.9% 90.5% 88.9% 95.3% 79.6% Net 6.5% Dividend 5.6% Yield2 (%) 4.7% 4.0% 3.6% 3.2% 3.3% 3.2% 1,037.4 1,073.2 1,038.5 RM mn 993.7 941.2 881

  32. Slide 32: Thank you!

    Thank you! Investor Relations Level 11 (South Wing), Menara TM Jalan Pantai Baharu 50672 Kuala Lumpur Malaysia Tel: (603) 2240 4848/ 7366 / 7388 www.tm.com.my/investor [email protected]

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