Telekom Malaysia Bhd. · MYX:TM
Telekom Malaysia Bhd — FY2012 Earnings Presentation
27 slides from Telekom Malaysia Bhd's earnings presentation, Feb 27, 2013
Slide 1: FY 2012 Results Analyst Briefing
FY 2012 RESULTS ANALYST BRIEFING 27 February 2013
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 FY2012 Met all Headline KPIs
Key Highlights FY2012 Met all Headline KPI’s FY2012 FY2012 Headline KPI Achievement • Stronger Revenue growth 5% 9% •Normalised EBITDA Margin in line with Headline KPI 32% 32% • Higher Customer Satisfaction Index 72 > 72 •PATAMI grew by 6.1% to RM1.26bn, EBITDA by 4.7% to RM3.23bn •Positive gr
Slide 5: Key Highlights 4Q2012
Key Highlights 4Q2012 Overall improvement YoY and QoQ Financial Performance • Operating revenue increased by 14.8% YoY and 18.3% QoQ, to RM2.8bn • Normalised EBITDA increased by 5.8% YoY and 12.2% QoQ, to RM855.2mn; Reported EBITDA increased by 13.1% YoY and 19.8% QoQ, to RM900.1mn • Normalised PATA
Slide 6: Financial review
Performance Overview Financial review Operating highlights Concluding remarks 6
Slide 7: Group Results 4Q2012 & FY2012
Group Results 4Q2012 & FY2012 Reported Comments RMmn % Change % Change % Change (FY12 vs. FY11) 4Q12 3Q12 4Q11 FY12 FY11 QoQ YoY FY12 vs FY11 Positive growth in Internet, Data Revenue 2,809.3 2,375.4 +18.3 2,447.2 +14.8 9,993.5 9,150.7 +9.2 & Other Telco Services Higher to realisation of tax Other O
Slide 8: Normalised EBITDA
Normalised EBITDA EBITDA growth recorded YoY, QoQ and FY In RM mn 4Q12 3Q12 4Q11 FY12 FY11 Reported EBITDA 900.1 751.5 796.1 3,231.6 3,086.4 Non Operational Loss on Sale of Assets 0.2 - 0.3 0.5 1.3 FX (Gain)/Loss on International trade (5.1) 10.8 12.9 2.5 21.9 settlement Impairment of AFS – receivab
Slide 9: Normalised PATAMI
Normalised PATAMI Higher Normalised PATAMI due to higher revenue and lower tax expense In RM mn 4Q12 3Q12 4Q11 FY12 FY11 Reported PATAMI 363.2 301.4 598.3 1,263.7 1,191.0 Non Operational Loss on Sale of Assets 0.2 - 0.3 0.5 1.3 FX (Gain)/Loss on International trade (5.1) 10.8 12.9 2.5 21.9 settlemen
Slide 10: Cost % of Revenue
Cost % of Revenue1 Cost/revenue ratio continued to improve RM mn RM8,313.2 RM8,972.0 89.7% 88.3% FY 2012 vs. FY2011 0.8 0.6 4.5 4.2 6.5 •Higher Maintenance cost due to 6.3 6.5 customer projects, new 8.5 % of Revenue maintenance contracts at ITNT 11.7 11.6 Bad Debt Marketing Expenses •Higher Direct c
Slide 11: Group Capital Expenditure
Group Capital Expenditure Higher HSBB capex due to EGNet extension, but improved overall capex/revenue ratio BAU Capex 12.4 8.9 1,139 1200 Total Capex 1000 892 395 800 276 RM mn 600 343 278 28.0 25.5 400 200 401 338 3000 0 2,563 2,546 FY11 FY12 Access Core Network Support System* 2500 Note : BAU – B
Slide 12: Group Cash Flow & Key Financial Ratios
Group Cash Flow & Key Financial Ratios RM mn FY12 FY11 Cash & cash equivalent at start 4,212.6 3,488.0 Cashflows from operating activities 2,723.7 3,030.7 Cashflows used-in investing activities (2,227.9) (1,338.0) Capex* 2,404.0 1,808.5 Cashflows used-in financing activities (970.5) (962.5) Effect o
Slide 13: Operating highlights
Performance Overview Financial review Operating highlights Concluding remarks 13
Slide 14: Group Total Revenue by Product
Operating Revenue up 9% driven by Internet, Data Group Total Revenue by Product and Others Voice Internet RM mn FY12 RM9,994mn RM mn RM mn +15.7% -1.1% -0.7% +18.5% +0.2% +4.2% Others 17% Voice 37% 3,734 2,372 Internet 3,706 917 905 907 2,001 24% 541 601 626 Data 22% 4Q11 3Q12 4Q12 FY11 FY12 4Q11 3Q
Slide 15: Group Total Revenue by Line of Business
Group Total Revenue by Line of Business Positive growth by All FY12 RM9,994mn Retail Wholesale Others 9% RM mn RM mn Wholesale +13.3% +3.0% +0.5% 8% +13.8% +9.3% +5.1% Consumer 7,454 27% Global 6,817 9% 1,755 2,035 1,433 1,796 1,788 1,096 571 1,087 770 774 Government SME 417 372 1,911 266 275 277 1,
Slide 16: Physical Highlights: Continued growth in UniFi net adds
Physical Highlights Continued growth in UniFi net adds Broadband Customer Growth UniFi +7.4% +104.0% In thousand +13.0% +1.9% 482,513 2,011 2,028 2,066 427,136 1,871 1,923 1,974 1,772 1,830 384,024 76,504 109 164 237 316 384 427 483 315,745 67,974 64 236,501 291 296 314 312 302 297 164,375 58,467 29
Slide 17: Concluding remarks
Performance Overview Financial review Operating highlights Concluding remarks 17
Slide 18: Key Takeaways
Key Takeaways • Achieved all Headline KPI’s Financial Performance Revenue growth of 9% driven by growth in Internet, Data & Other telco services revenue Continued EBITDA growth Continued PATAMI growth • Sustained capital and cost efficiency • Improved customer experience Customer-centricity •
Slide 19: Outlook 2013
Outlook 2013 Trusted Broadband Champion - Enhanced Customer Experience - Focused product and service delivery Competition expected to intensify in the retail space, but also creates opportunities for TM Continued transformation toward Information Exchange Performance Improvement Program 3.0 (2013-20
Slide 20: Performance Improvement Program 3.0
Performance Improvement Program 3.0 Continued • Voice and broadband Growth • New opportunities • Information Exchange • Best practice cost and capital aspiration Fundamental efficiencies Productivity • Process optimisation Shift • Migration to all-IP • Changing business dynamics Improve • Accelerate
Slide 21: Appendices
Appendices
Slide 22: Cost % of Revenue
Cost % of Revenue 4Q12 3Q12 4Q11 FY12 FY11 FY2012 vs. FY2011 Operating Revenue (RM mil) 2,809.3 2,375.4 2,447.2 9,993.5 9,150.7 - Other Operating Income 74.2 20.5 37.0 165.4 120.9 - (RM mil) Direct Costs % 15.5 17.8 15.3 17.0 16.6 Higher international outpayment, USP RM mil. 447.4 425.3 380.2 1,729.
Slide 23: Group Balance Sheet
Group Balance Sheet As at 31 Dec 2012 As at 31 Dec 2011* RM Million Shareholders’ Funds 6,894.8 7,424.0 Non-Controlling Interests 165.2 162.9 Deferred & Long Term Liabilities 8,513.7 10,036.1 Long Term Borrowings 5,130.2 6,402.7 Deferred Tax 1,202.6 1,541.8 Deferred Income 2,129.4 2,072.7 Derivative
Slide 24: Retail
RETAIL Revenue by Product Revenue by Business Unit RM mn +9.3% FY12 RM7,454mn 7,454 RM mn 8,000 6,817 765 611 6,000 Government 2,359 23% 1,982 Others Consumer 4,000 1,176 1,356 Internet 36% Enterprise Data 15% 2,000 Voice 3,081 3,010 SME 26% 0 FY11 FY12 +13.3% RM mn +13.8% FY11 RM6,817mn RM mn 2500
Slide 25: Wholesale
WHOLESALE Revenue by Product Revenue by Customer Segment RM mn +0.5% FY12 1000 770 774 85 77 ASP 800 17% 600 597 642 Others 400 Data MC 200 Voice 83% 224 192 0 FY11 FY12 FY11 RM mn +3.0% +5.1% 300 207 ASP 250 201 197 17% 20 23 17 200 150 Others 155 160 185 Data MC 100 Voice 83% 50 54 52 37 0 MC1 : M
Slide 26: Global
GLOBAL Revenue by Product Revenue by Region +3.6% RM mn FY12 1200 875 Others 1000 845 America 14 11% 8 12% 800 338 377 Others Europe & AFME 600 Data 36 South Asia 16% 76 Data (IRU Sales) 32% 400 Voice Oceania & 478 527 North Asia 200 29% 0 FY11 FY12 -2.3% FY11 RM mn +32.3% 350 Others 256 America 300
Slide 27: 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
Telekom Malaysia Berhad — FY2012 Earnings Presentation on 6ix