Telekom Malaysia Bhd. · MYX:TM
Telekom Malaysia Bhd — FY2010 Earnings Presentation
28 slides from Telekom Malaysia Bhd's earnings presentation, Feb 25, 2011
Slide 1: FY 2010 Results Briefing to Analyst
FY 2010 RESULTS BRIEFING TO ANALYST 25 February 2011
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 2010
Key Highlights FY 2010 Improvements across the board Achieved Headline Headline KPI KPI •Revenue growth of 2.1% YoY to RM8.8bn 2.0% • EBITDA Margin at 33.1% 33% • Spent 5.1% of revenue to improve customer experience 5% BAU Capex / Revenue improved by 1.3pp YoY to 12.8% HSBB Capex of RM1.6b low
Slide 5: Financial Highlights 4Q 2010
Encouraging revenue and profitability Financial Highlights 4Q 2010 achievement 4Q10 vs 4Q10 vs 4Q09 3Q10 Financial Performance Operating revenue increased by 2.1% YoY and 5.7% QoQ to RM2,320.6m in 4Q10 as a result of higher contribution from data services, internet & multimedia Normalised EBITDA
Slide 6: Focus on Shareholder Value Creation
Growing enterprise value through improving Focus on Shareholder Value Creation return on capital 2007 2008 2009 2010 Our capital management approach is guided by two Total Return to 17.2% 7.7% 42.9% 24.0% 1 major principles : Shareholder (TRS) Striving to 2 3 Net Dividend Yield 7.4% 6.4% 6.5% 5.6%
Slide 7: Financial Review
Performance Overview Financial review Operating highlights Concluding remarks 7
Slide 8: Group Results 4Q10 and FY2010
Group Results 4Q10 and FY2010 Reported RMmn Comments % Change % Change % Change 4Q10 3Q10 4Q09 FY 10 FY 09 QoQ YoY FY10 vs FY09 Positive growth contributed by Revenue 2,320.6 2,194.6 +5.7 2,272.6 +2.1 8,791.0 8,608.0 +2.1 Data and Internet Other Operating 52.7 39.7 +32.7 52.2 +1.0 152.9 128.8 +18.7
Slide 9: Normalised EBITDA
Normalised EBITDA Normalised EBITDA margin in 2010 better than Headline KPI In RM mn 4Q10 3Q10 4Q09* FY 10 FY 09* Reported EBITDA 758.5 759.6 738.2 2,924.3 2,983.6 Non Operational ESOS (Income) / Cost - net - (17.2) (9.9) (5.0) 9.3 Reversal of provision for legal case - - - - (20.0) Impairment of AF
Slide 10: Normalised PATAMI
Normalised PATAMI Higher PATAMI due to overall improvement in revenue and tight cost management In RM mn 4Q10 3Q10 4Q09* FY 10 FY 09* Reported PATAMI 400.7 438.5 170.2 1,206.5 643.0 Non Operational ESOS (Income) / Cost - net - (17.2) (9.9) (5.0) 9.3 Impairment of AFS (available for sales) 15.4 - - 1
Slide 11: Cost % of Revenue
Cost % of Revenue1 Improvement in Cost/revenue ratios will continue to be emphasized RM mn RM7,792.7 RM8,015.4 Lower bad debt due to reversal of previous year’s provision due to 89.2% 89.6% improved collection and assessment 0.7 of impairment on specific basis 1.9 4.3 4.2 5.1 5.7 Slight increase
Slide 12: Group Capital Expenditure
Increase in Capex due to HSBB in line with plan while Group Capital Expenditure BAU Capex is decreasing BAU Capex 12.8 14.1 1400 1,211 1,128 1200 Total Capex 227 1000 309 800 387 308 RM mn 600 400 30.8 597 511 29.6 200 3000 2,712 2,549 0 2500 FY09 FY10 574 772 Access Core Network Support System* Not
Slide 13: Group Cash Flow & Key Financial Ratios
Strong Cash Balance to support future Group Cash Flow & Key Financial Ratios business requirements RM mn FY10 FY09 Cash & cash equivalent at start 3,490.2 2,094.7 Cashflows from operating activities 2,973.4 3,056.0 Cashflows from / (used-in) investing activities (1,446.9) 2,546.4 Capex* 2,198.9 1,73
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 Voice Internet RM mn FY10 RM8,791mn RM mn RM mn -2.6% +5.9% -4.5% +12.6% Others 17% Voice 44% 1,653 Internet 4,046 1,561 3,863 19% 978 960 953 388 411 437 Data 20% 4Q09 3Q10 4Q10 FY09 FY10 4Q09 3Q10 4Q10 FY09 FY10 Data Others RM mn FY09 RM8,608mn RM mn +15.0% +15.3% RM
Slide 16: Group Total Revenue by Line of Business
Group Total Revenue by Line of Business FY10 RM8,791mn Retail Wholesale Others RM mn -0.3% RM mn +0.0% Wholesale 4% 9% +1.1% +4.3% 1,741 1,717 1,736 Global 300 352 347 10% 370 355 358 420 450 446 193 185 193 Retail 651 560 585 77% 4Q09 3Q10 4Q10 4Q09 3Q10 4Q10 Consumer SME Enterprise Government FY09
Slide 17: UniFi update – leading & shaping the future
UniFi update – leading & shaping the future Continued HSBB market leadership... UniFi update as at today… 1 delivered more than 780,000 premises passed covering 60 exchanges 2 activated close to 50,000 customers 3 a landmark agreement was signed with an access- seeker to provide HSBB (Access) servic
Slide 18: Physical Highlights
Broadband champion - with continued growth in all Physical Highlights segments Broadband Customers Growth WiFi Hotspot Zones +17.4% +430.8% In thousand +5.3% +351.6% 2,000 1,596 1,680 10,982 1,485 1,541 1,370 1,398 1,431 1,500 1,333 287 280 285 268 273 4,374 200 206 263 2,533 2,432 2,069 2,245 1,000
Slide 19: Concluding Remarks
Performance Overview Financial review Operating highlights Concluding remarks 19
Slide 20: Key Takeaways
Key Takeaways • Achievement of all 2010 Headline KPIs: Financial Performance Revenue growth of 5.7% QoQ and 2.1% YoY with data and internet as the main drivers Normalised EBITDA margin of 33.1% • Continuous focus on excellence in all areas – product profitability, focusing on upselling and reten
Slide 21: Outlook 2011
Outlook 2011 Unifi - on track to meet 1.1m premises passed covering 78 exchange areas Capitalise on growth in demand for internet and data by further enhancing our product offerings and customer service Dividend policy unchanged Headline KPIs 2011 2013 Target Target Revenue growth (%) 2.5 3.5– 4.5
Slide 22: Appendices
Appendices
Slide 23: Cost % of Revenue
Cost % of Revenue 4Q10 3Q10 4Q09 FY10 FY09 FY10 vs FY09 Operating Revenue (RM mil) 2,320.6 2,194.6 2,272.6 8,791.0 8,608.0 - Other Operating Income 52.7 39.7 52.2 152.9 128.8 - (RM mil) Direct Costs % 19.5 19.4 19.4 20.6 20.7 •Higher USP cost RM mil. 463.8 433.3 451.2 1,840.0 1,809.5 •Content cost a
Slide 24: Group Balance Sheet
Group Balance Sheet RM Million As at 31 Dec 2010 As at 31 Dec 2009 Shareholders’ Funds 7,709.4 6,987.5 Minority Interests 150.8 142.5 Deferred & Long Term Liabilities 8,630.3 8,371.5 Long Term Borrowings 5,506.0 5,796.9 Deferred Tax 1,664.2 1,588.7 Deferred Income 1,432.1 985.9 Derivative financial
Slide 25: Retail By Products Total Revenue
RETAIL By Products Total Revenue Revenue by Product RM mn Revenue by Business Unit +1.8% 8,000 6,783 FY10 RM6,783mn 7,000 6,660 RM mn 1,454 6,000 1,391 5,000 Government 1,598 1,637 Others 20% Consumer 4,000 Internet 33% 735 871 Data 3,000 Voice Enterprise 2,000 21% 3,215 3,177 SME 1,000 26% 0 FY09 F
Slide 26: Wholesale
WHOLESALE Revenue by Product Revenue by Customer Segment RM mn -3.9% 1000 FY10 786 755 67 65 800 ASP 600 498 566 16% 400 200 MC 327 256 84% 0 FY09 FY10 Voice Data Others RM mn +0.0% FY09 +4.3% 250 193 193 185 23 ASP 19 14 200 19% 150 129 146 154 100 MC 81% 50 73 58 58 0 4Q09 3Q10 4Q10 MC : Malaysian
Slide 27: Global
GLOBAL Revenue by Product RM mn Revenue by Region +3.4% 1200 FY10 Africa & 885 915 1000 Others Middle East 23 28 13% 9% 800 America 462 493 Others Oceania 7% 600 7% Data Europe 400 Voice North Asia 11% 200 469 446 15% 0 South Asia FY09 FY10 40% RM mn +0.7% FY09 +24.3% Africa & 400 Others Middle East
Slide 28: Thank You
THANK YOU Any queries please email to : [email protected] •Investor Relations• Level 11 (North Wing) •Menara TM •JlnPantaiBharu •50672 Kuala Lumpur, Malaysia • Tel (603) 2240 4848/ 7366 / 7388
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