Telekom Malaysia Bhd. · MYX:TM
Telekom Malaysia Bhd — FY2011 Earnings Presentation
28 slides from Telekom Malaysia Bhd's earnings presentation, Feb 24, 2012
Slide 1: FY 2011 Results Analyst Briefing
FY 2011 RESULTS ANALYST BRIEFING 24 February 2012
Slide 2: 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
Slide 3: Performance Overview
Performance Overview Financial review Operating highlights Concluding remarks 3
Slide 4: Key Highlights FY 2011
Key Highlights FY 2011 Achieved all Headline KPI’s for 2nd year FY2011 FY2011 Headline KPI Achievement • Revenue growth of 4.1% vs. FY2010 to RM9.15bn 2.5% 4.1% • Normalised EBITDA Margin at 33.5% 32% 33.5% • Customer Satisfaction Measure 70 >70 • Internet & Multimedia Revenue grew >20% in FY2
Slide 5: Key Highlights 4Q 2011
Positive growth across the board Key Highlights 4Q 2011 QoQ and YoY 4Q11 vs 4Q11 vs 4Q10 3Q11 Financial Performance Operating revenue grew by 5.4% QoQ and 5.5% YoY to RM2,447.2mn - Revenue led by Internet & Multimedia, at 4.2% growth QoQ and 23.8% growth YoY Normalised EBITDA up 0.6% QoQ and 1.5
Slide 6: Focus on Shareholder Value Creation
Growing enterprise value through improving Focus on Shareholder Value Creation return on capital 2008 2009 2010 FY2011 Our capital management approach is guided by two Total Return to 7.7% 42.9% 24.0% 60.1% 1 major principles : Shareholder (TRS) Striving to optimize capital Cash Balance (RM bn) 2.
Slide 7: Financial review
Performance Overview Financial review Operating highlights Concluding remarks 7
Slide 8: Group Results 4Q11 & FY2011
Group Results 4Q11 & FY2011 Reported Comments RMmn % Change (FY11 vs FY10) % Change % Change 4Q11 3Q11 4Q10 FY11 FY10 FY11 vs QoQ YoY FY10 Higher Internet & Multimedia Revenue 2,447.2 2,321.7 +5.4 2,320.6 +5.5 9,150.7 8,791.0 +4.1 and Others revenue Other Operating 37.0 27.8 +33.1 52.7 -29.8 120.9 1
Slide 9: Normalised EBITDA
Normalised EBITDA Improving margins due to higher operating revenue In RM mn 4Q11 3Q11 4Q10 FY11 FY10 Reported EBITDA 796.1 812.5 758.6 3,086.4 2,924.3 Non Operational ESOS (Income) - net - - - - (5.0) Loss on Sale of Assets 0.3 0.2 1.0 1.3 2.1 FX (Gain)/Loss on International trade 12.9 (9.4) 20.9 2
Slide 10: Normalised PATAMI
Normalised PATAMI In RM mn 4Q11 3Q11 4Q10 FY11 FY10 Reported PATAMI 598.3 302.2 400.7 1,191.0 1,206.5 Non Operational ESOS (Income) - net - - - - (5.0) FX (Gain)/Loss on International trade 12.9 (9.4) 20.9 21.9 21.7 settlement (Gain)/Loss on Sale of Assets and Investments* (5.2) (278.1) (214.4) (285
Slide 11: Cost % of Revenue
Cost % of Revenue1 Cost/revenue ratios maintained YoY RM mn RM8,015.4 RM8,313.2 FY 2011 vs. FY 2010 89.6% 89.7% •Higher Depreciation & Amortisation mainly due to higher asset 0.7 0.8 base, provision for asset write-off 4.3 4.4 nett of change of useful life impact 5.7 6.1 5.6 6.3 % of Revenue •Lower
Slide 12: Group Capital Expenditure
Group Capital Expenditure Capex/Revenue ratios continued to improve BAU Capex 12.8 12.4 1,128 1,139 Total Capex 1200 1000 309 395 800 RM mn 600 308 343 400 30.8 28.0 200 511 401 3,000 2,712 0 2,563 FY10 FY11 2,500 Access Core Network Support System* 772 527 Note : BAU – Business As Usual 2,000 HSBB
Slide 13: Group Cash Flow & Key Financial Ratios
Strong Balance Sheet to support future Group Cash Flow & Key Financial Ratios business requirements RM mn FY11 FY10 Cash & cash equivalent at start 3.488.0 3,490.2 Cashflows from operating activities 3,030.7 2,973.4 Cashflows from / (used-in) investing activities (1,338.0) (1,446.9) Capex* 1,808.5 2
Slide 14: Operating highlights
Performance Overview Financial review Operating highlights Concluding remarks 14
Slide 15: Group Total Revenue by Product
Group Total Revenue by Product Revenue growth driven by Internet, YoY growth >20% Voice Internet RM mn FY11 RM9,151mn RM mn RM mn -3.8% -3.3% +23.8% +21.1% -3.2% +4.2% Others 17% Voice 3,863 3,734 1,653 2,001 41% 953 947 917 541 Internet 519 437 22% Data 20% 4Q10 3Q11 4Q11 FY10 FY11 4Q10 3Q11 4Q11 F
Slide 16: Group Total Revenue by Line of Business
Group Total Revenue by Line of Business Retail contribution to group revenue increases, led by Consumer & Govt Retail Wholesale FY11 RM9,151mn Others RM mn RM mn Wholesale 4% +9.3% +6.0% +4.1% +2.0% 8% +4.4% 7,192 +5.2% 6,783 Global 1,433 9% 1,316 1,817 1,897 1,736 1,462 1,431 347 361 417 770 1,838
Slide 17: Physical Highlights
Broadband growth driven by Unifi Physical Highlights Broadband Customer Growth WiFi Hotspot Zones +12.3% +80.3% In thousand +2.8% +14.4% 2,400 1,830 1,871 1,923 2,000 1,713 1,772 1,545 1,610 109 164 237 1,485 33 64 1,600 4 14 287 291 296 314 312 280 285 273 1,200 19,799 800 +60 +65 +103 +59 +58 +41
Slide 18: UniFi – leading & shaping the future
UniFi – leading & shaping the future Unifi takeup continues to exceed expectations +618.9% UniFi update as at 22 February 2012 +43.9% 236,501 164,375 34,659 Delivered 1,179,000 premises passed 109,019 24,479 covering 79 exchanges 32,896 63,541 15,912 8,385 13,901 4,125 201,842 Activated more than 28
Slide 19: Concluding remarks
Performance Overview Financial review Operating highlights Concluding remarks 19
Slide 20: Key Takeaways
Key Takeaways Achievement of all Headline KPIs Financial Performance Revenue growth of 4.1% vs. FY2010; KPI: 2.5% growth Normalised EBITDA margin of 33.5%; KPI: 32% • Internet & Multimedia revenue as main driver • Continuous focus on profitability and cost Achievement of new Headline KPI Customer-
Slide 21: Outlook 2012
Outlook 2012 Continue to ride the broadband growth momentum -Enhance customer experience, product offering and service delivery -Maintain position as Malaysia’s Broadband Champion Transformation towards Information Exchange -Leverage on strengths and capabilities, ICT-BPO powerhouse Increased compet
Slide 22: Appendices
Appendices
Slide 23: Cost % of Revenue
Cost % of Revenue 4Q11 3Q11 4Q10 FY11 FY10 FY11 vs FY10 Operating Revenue (RM mil) 2,447.2 2,321.7 2,320.6 9,150.7 8,791.0 - Other Operating Income 37.0 27.8 52.7 120.9 152.9 - (RM mil) Direct Costs % 16.8 18.0 19.4 18.0 20.4 Lower interconnect and international RM mil. 417.3 423.4 460.1 1,665.9 1,8
Slide 24: Group Balance Sheet
Group Balance Sheet RM Million As at 31 Dec 2011 As at 31 Dec 2010 Shareholders’ Funds 6,968.8 7,709.4 Non-Controlling Interests 162.9 150.8 Deferred & Long Term Liabilities 10,053.9 8,630.3 Long Term Borrowings 6,402.7 5,506.0 Deferred Tax 1,559.6 1,664.2 Deferred Income 2,072.7 1,432.1 Derivative
Slide 25: Retail By Products
RETAIL By Products Total Revenue Revenue by Product Revenue by Business Unit RM mn +6.0% FY11 RM7,192mn 7,192 RM mn 8,000 6,783 7,000 1,589 1,454 6,000 Government 5,000 1,982 20% 1,637 Consumer 4,000 Others 871 982 34% Internet 3,000 Data Enterprise Voice 20% 2,000 3,177 3,081 SME 1,000 26% 0 FY10 F
Slide 26: Wholesale
WHOLESALE Revenue by Product Revenue by Customer Segment RM mn +2.0% 1000 770 FY11 755 65 85 800 ASP 17% 600 566 597 Others 400 Data Voice 200 MC 256 224 83% 0 FY10 FY11 +4.1% RM mn +5.2% FY10 250 193 191 201 ASP 23 22 23 16% 200 Others 150 154 Data 151 155 100 Voice MC 84% 50 58 54 54 0 MC : Malays
Slide 27: Global
GLOBAL Revenue by Product Revenue by Region RM mn -7.7% 1200 FY11 Africa & 915 1000 845 Middle East 28 Others 8 6% 10% America 800 411 344 Others Oceania 13% 600 Data 10% 82 70 IRU Sales (Data) 400 Voice Europe 10% 200 446 478 North Asia 17% South Asia 0 34% FY10 FY11 -7.2% FY10 RM mn +19.1% Africa
Slide 28: Thank You
THANK YOU Any queries please email to : [email protected] •Investor Relations• Level 11 (South Wing) •Menara TM •JlnPantaiBharu •50672 Kuala Lumpur, Malaysia • Tel (603) 2240 4848/ 7366 / 7388
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