telekom malaysia berhad · 2013-06-28 · this presentation contains projections and...

TELEKOM MALAYSIA BERHAD

3Q 2009 RESULTS

20 November 2009

(TM Group – continuing operations only)*

* Results of TM Group post demerger

2

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 commitment or

investment decision.

This presentation has been prepared solely for use at this presentation. By your continued attendance at this presentation, you are deemed to

have agreed and confirmed to Telekom Malaysia Berhad (the “Company”) that: (a) you agree not to trade in any securities of the Company or its

respective affiliates until the public disclosure of the information contained herein; and (b) you agree to maintain absolute confidentiality

regarding the information disclosed in this presentation until the public disclosure of such information, or unless you have been otherwise

notified by the Company.

Reliance should not be placed on the information or opinions contained in this presentation or on its completeness. This presentation does not

take into consideration the investment objectives, financial situation or particular needs of any particular investor.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information,

opinions and conclusions contained in this presentation. None of the Company and its affiliates and related bodies corporate, and their

respective officers, directors, employees and agents disclaim any liability (including, without limitation, any liability arising from fault or

negligence) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with it.

This presentation contains projections and “forward-looking statements” relating to the Company’s business and the sectors in which the

Company operates. These forward-looking statements include statements relating to the Company’s performance. These statements reflect the

current views of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions. It is important to note

that actual results could differ materially from those anticipated in these forward looking statements. The Company does not undertake to inform

you of any matters or information which may come to light or be brought to the Company’s attention after the date hereof.

The forecasts and other forward-looking statements set out in this presentation are based on a number of estimates and assumptions that are

subject to business, economic and competitive uncertainties and contingencies, with respect to future business decisions, which are subject to

change and in many cases outside the control of the Company. The directors and officers of the Company believe that they have prepared the

forecasts with due care and attention and consider all best estimates and assumptions when taken as a whole to be reasonable at the time of

preparing the presentation. However, the Company’s forecasts presented in this presentation may vary from actual financial results, and these

variations may be material and, accordingly, neither the Company nor its directors or officers can give any assurance that the forecast

performance in the forecasts or any forward-looking statement contained in this presentation will be achieved. Details of the forecasts and the

assumptions on which they are based are set out in the presentation.

This presentation may not be copied or otherwise reproduced without the written consent of the Company.

Disclaimer

2

16.3%8.1%

11.0% 18.2%

Voice Data Internet Others

OPERATING REVENUE

Capex

HSBB (Gross) BAU (Business As Usual)

EBITDA PATAMI

3Q08

+1.2%

697

3Q09

705

Broadband*

+13.8%

33.2

EBITDA Margin (%)

(166)

179

3Q08 3Q09

+208%

3Q08

1,229

3Q09

1,398

* Exclude hotspots

Fixed Line

3Q08

4,331

3Q 09

4,308

In thousand In thousand

34.6

Key 3Q 2009 Highlights

RM mn

RM mn

+0.5%

RM mn

3Q09 revenue up 1.9% YoY back bystrong non-voice segment

EBITDA margin in line with Headline KPI

Aggressive products bundling continue toattract new broadband customers withcontinued growth in fixed line

BAU capex being managed prudently whilst HSBB capex is in line with progress of premises passed target

TM Group – continuing operations only

YTD 08 YTD 09

+2.6%

6,1776,335

+1.9%

2,109 2,129

3Q08 3Q09

YoY

2,0622,101

793

YTD 08 YTD09

1,069

-25.0%

802

RM mn

HSBB Premises Passed Target*

11 Nov 09

90 150

1,300

Dec 09

750

Dec 10 Dec 12

In thousand

YTD

* cumulative 3

4

Performance Highlights


Note: EBITDA Margin is calculated as percentage of EBITDA against Total Revenue + Other Operating Income

* Exclude Hotspot Customers & Net of Churn

RMmn

Reported

3Q09 3Q08Growth

YoY2Q09

Growth QoQ

YTD 09 YTD 08Growth YTD

on YTD

Revenue 2,101.0 2,062.0 +1.9% 2,129.0 -1.3% 6,335.4 6,177.1 +2.6%

EBITDA 705.0 696.5 +1.2% 824.1 -14.4% 2,345.3 2,095.0 +11.9%

EBITDA margin 33.2% 34.6% -1.4pp 37.5% -4.3pp 36.4% 33.6% +2.8pp

Depreciation 489.7 529.6 -7.5% 528.5 -7.3% 1,543.4 1,555.5 -0.8%

Net Finance Cost 40.1 16.5 +143.0% 57.4 -30.1% 127.7 185.1 -31.0%

FX (Gain) Loss (45.6) 195.7 +123.3% (123.2) -63.0% 6.8 151.8 -95.5%

Profit Before Tax 217.8 (138.1) +257.7% 358.9 -39.3% 668.0 100.0 +568.0%

PATAMI 179.1 (165.8) +208.0% 266.0 -32.7% 472.8 63.3 +646.9%

Broadband*Customers ('000)

1,398 1,229 +13.7% 1,370 +2.0% 1,398 1,229 +13.7%

Fixed Line Customers ('000)

4,331 4,308 +0.5% 4,320 +0.2% 4,331 4,308 +0.5%

Current quarter revenue improved YoY due to non-voice services, however EBITDA affected by higher manpower & other operating cost

5

In RM mn 1Q09 2Q09 3Q09 3Q08 YTD Sept 09

YTD Sept 08

Reported EBITDA 816.2 824.1 705.0 696.5 2,345.3 2,095.0

Non Operational

ESOS Cost 4.5 7.4 9.3 16.9 21.2 110.5

(Appreciation)/ Diminution in value of quoted shares

(6.2) (20.4) (9.8) 19.4 (36.4) 77.4

(Gain)/ Loss on sale of Assets - (51.4) - - (51.4) (25.7)

Normalised EBITDA 814.5 759.7 704.5 732.8* 2,278.7 2,257.2*

Normalised EBITDA Margin 38.2% 34.6% 33.2% 36.4% 35.3% 36.1%

Reported EBITDA Margin 38.3% 37.5% 33.2% 34.6% 36.4% 33.6%

Normalised EBITDA


Note: *Normalised EBITDA FOR 3Q08 and YTD08 adjusted to only include non -operational items

6

Normalised PATAMI


In RM mn 1Q09 2Q09 3Q09 3Q08 YTD Sept 09

YTD Sept 08

Reported PATAMI 27.7 266.0 179.1 (165.8) 472.8 63.3

Non Operational

ESOS Cost 4.5 7.4 9.3 16.7 21.2 110.0

(Appreciation)/ Diminution in value of quoted shares

(6.2) (20.4) (9.8) 19.4 (36.4) 77.4

(Gain)/ Loss on sale of Assets - (51.4) - 88.8 (51.4) 63.1

Unrealised Forex (Gain)/ Loss on long term loans

175.5 (123.2) (45.5) 195.7 6.8 151.8

Loss on termination of financial swaps - - - - - 112.0

Refund of section 110 - - (32.6) - (32.6) (30.0)

Reversal of Excess Current / Deferred tax

(1.6) 0.6 (8.5) (28.7) (9.5) (80.6)

Normalised PATAMI 199.9 79.0 92.0 126.1* 370.9 467.0*

Note: *Normalised PATAMI FOR 3Q08 and YTD08 adjusted to only include non -operational items

1,656 1,638 1,640 1,641

180 212 185 214164 189 228 17662 66 76 70

0

500

1,000

1,500

2,000

2,500

3Q08 1Q09 2Q09 3Q09

Others

Wholesale

Global

Retail

Retail78%

Global10%

Wholesale9%

Others3%

Retail80%

Global9%

Wholesale8%

Others3%

4,944 4,919

537 611511 593185 212

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

YTD Sept 08 YTD Sept 09

Others

Wholesale

Global

Retail

7Note: Total revenue and revenue of segment is after inter-co elimination

YTD Sept 08RM mn

RM mn

+1.9%

+2.6%

Total Revenue by Line Of Business

Note: Breakdown is after inter-co elimination


7

6,3356,177

-1.3%

2,105 2,1292,062

YTD Sept 09

2,101

Positive growth from Global & Wholesale

1,078 1,034 1,001 1,002

311 367 371 354

390 385 402 417

284 319 355 328

0

500

1,000

1,500

2,000

2,500

3Q08 1Q09 2Q09 3Q09

Others

Internet

Data

Voice

3,305 3,037

939 1,092

1,085 1,204

848 1,002

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000


Others

Internet

Data

Voice

8Note: Total revenue and revenue of segment are after inter-co elimination

RM mn

RM mn

2,062 2,105 2,129

6,3356,177

+1.9%

-1.3%

+2.6%

Total Revenue by Product


8

YTD Sept 09

2,101

YTD Sept 08

Voice54%

Data15%

Internet17%

Others14%

Voice48%

Data17%

Internet19%

Others16%

Note: Breakdown is before inter-co elimination

Demand for Internet & Data set to grow further

2,880 2,832 2,816 2,796 2,784 2,792 2,797

1,492 1,484 1,492 1,501 1,506 1,528 1,534

0

1,000

2,000

3,000

4,000

5,000

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

Residential Business

907 983 1,045 1,088 1,133 1,165 1,188

160174 184 192 200 206 210

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q09

Residential Business

9

PHYSICAL HIGHLIGHTS

Fixed Customers Growth

Broadband* Customers Growth

In thousand

In thousand

+0.5%

4,316 4,308

* Exclude Hotspots

4,297 4,290 4,320


1,1571,229

1,280 1,333 1,370

+13.8%

1,398

4,331

+0.2%

1,067

4,372

+0.4%

ARPU (RM) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09Business* 78 85 79 77 74 78 73Residential* 27 25 24 23 21 21 20

Streamyx Broadband** 91 93 94 90 87 86 89

+2.0%

*Call Usage Only** Streamyx Gross ARPU only

+1.5%+0.3%+0.6%+0.5%-0.5%

+0.3%-0.4%-0.7%-0.6%-1.7%

+0.2%

Managing broadband churn will be intensified as competition heats up in the broadband space

25.4 24.4

21.6 21.4

19.3 18.4

15.914.3

5.34.5

4.53.5

2.0

2.4

YTD 08 YTD 09

Bad Debt

Marketing Expenses

Supplies & material

Other operating cost

Manpower cost

Direct cost

Depreciation

25.9 24.9 23.4

25.620.8 23.9

18.5

17.618.8

15.5

12.815.0

4.3

5.84.6

3.9

3.83.6

0.2

3.52.0

3Q08 2Q09 3Q09

Cost % Of Revenue

Total Cost / Revenue ( %)

94.0% 89.1%

Cost % of Revenue

93.9%

RM5,807.1 RM5,644.4 RM1,936.0

89.4%

RM1,902.4

RM mn


10

90.9%

RM1,908.9

536 429

382

232

152

141

793

0

200

400

600

800

1000

1200

1400

1600

1800

YTD 08 YTD 09

HSBB (Gross)

Support System

Core Network

Access

175 187 174109

184136

125145

112

68

6896

4340

69

40

5150

0

50

100

150

200

250

300

350

400

1Q08 2Q08 3Q08 1Q09 2Q09 3Q09

Access Core Network Support System

39 28 31 58

477

59

242 15115

53 156

0

100

200

300

400

500

600

4Q08 1Q09 2Q09 3Q09

Support System

Core

Access

11

GROUP CAPITAL EXPENDITURE

1,069

1

1Included Others eg: building, land, moveable plants & other assets

802

RM mn

RM mn

BAU Capex / Revenue ( %)

17.3

343 371

218

302

-25.0%

HSBB Capex

BAU Capex

RM mn

516

102

326


12.6

17.1

365

282

355

17.6 10.3 14.2 13.417.0

1,595

Capex efficiency resulted in lower spending for BAU capex

HSBB Retail Launch in Klang Valley

1

1

Note : USD 300m; USD 500m; USD 300m; Fx Rate 3.46101 2 3

USD denominated

RM denominated

2010 2013 2014 2018 2025

RM mn

1,038

2,0001,735

9251,035

1

2

3

10,248.1

226.5

8,587.3

6,965.1

1,362.0

260.2

19,061.9

9,412.4

2,127.9

763.4

4,025.0

2,095.2

400.9

3,471.3

2,812.6

34.9

623.8

5,941.1

11,772.1

1,348.7

19,061.9

6,824.4

134.4

9,298.8

6,988.2

1,489.3

821.3

16,257.6

6,154.4

2,231.3

755.2

0

2,761.8

406.1

3,211.4

2,563.1

34.5

613.8

2,943.0

11,829.7

1,484.9

16,257.6

Shareholders’ Funds

Minority Interests

Deferred & Long Term Liabilities

Long Term Borrowings

Deferred Tax

Deferred Income

Current Assets

Trade Receivables

Other Receivables

Amount due from Axiata

Cash & Bank Balances

Others

Current Liabilities

Trade and other Payables

Short Term Borrowings

Others

Net Current Assets

Property Plant & Equipment

Other Non-current Assets

RM MillionAs at 30 Sept 2009 As at 31 Dec 2008

12

1

30 Sept 09 31 Dec 08 30 Sept 09 31 Dec 08Return on Invested Capital 6.56% 4.50% Gross Debt/ Equity** 1.02 0.68

Return on Equity 5.79% 6.99% Gross Debt/ Equity*** 1.03 0.29

Return on Assets 5.09% 3.15% Net Debt/ Equity** 0.62 0.48

Current Ratio 1.91% 2.71 Net Debt/ Equity*** 0.62 0.09

Debt to EBITDA 2.24 2.45 Net Assets/Share (sen) 192.7 296.5

1

Monetisation of RM334mn staff housing loan completed in June 09

*Annualised ** Before Amount Due from Axiata ** *After Amount Due from Axiata

Group Balance Sheet & Key Financial Ratios

Paid 10sen tax exempt interim dividend (RM358mn) in September 09

31 Dec 0830 Sept 09*31 Dec 0830 Sept 09*

1 Based on Normalised PATAMI

TM Group – continuing operations onlyBalance sheet remain strong with healthy cashand reasonable gearing level

Paid RM3.8bn in IH09 of capital repayment & 2008 final dividend

•Continue to manage Capex effectively withoutcompromising quality

• Will intensify cost control initiatives

•Green efforts: Identified 4 areas of focus – waste management, energy efficiency, water efficiency and climate change•Launched teleworking•Produced inaugural Sustainability Report – accorded GRI score A+

Cost Management

Corporate Responsibility

13

• YTD Sept09 revenue up 2.6% supported by non-voice services which now contributed 52% ofrevenue•TM had spent 3.1% of YTD09 revenue to improveservice quality to customers

Revenue Improvements

• Deployment work ongoing for 44 exchangesout of 95 earmarked

• More than 4,000 staff & 50% of TM contractorstrained in HSBB

• Targeting 150,000 premises passed by year endand 1.3million by end 2012

HSBB

Key Takeaways


•RM395mn of staff housing loans has beenmonitised up to October 09

•TM hedged USD250mn from USD1,100mn debt viacross currency swaps & forward contracts

Balance Sheet Management

Thank You

www.tm.com.my

[email protected]

14

Appendix

15

887 829 822 791

170 189 172 194

390 385 398 415

211 243 254 247

0

200

400

600

800

1000

1200

1400

1600

1800

3Q08 1Q09 2Q09 3Q09

Voice Data Internet Others

Consumer34%

SME27%

Enterprise22%

Government17%

2,740 2,442

511555

1,0851,199

620 744

0

1,000

2,000

3,000

4,000

5,000

6,000


Others

Internet

Data

Voice

Total Revenue By Products

Revenue by ProductRevenue by Business Unit

RM mn

RM mn-0.5%

+0.1%

1,6401,6381,656

4,944 4,919

45% 51%

50%50%47%

55% 49%

53% 50% 50%

Note : Breakdown is before inter company elimination


16

-0.9%

YTD 09

RETAIL

1,641

48%

52%

Non Voice revenue continue to grow

Note: Total revenue is after inter-co elimination. Revenue of product is before inter-co elimination

69 77 94 83

97123

139

107

13

12

22

14

0

50

100

150

200

250

300

3Q08 1Q09 2Q09 3Q09

Voice Data Others

223 254

291

369

46

48

0

100

200

300

400

500

600

700

800


Others

Data

Voice

-22.8%

189

228

+6.7%

+16.0%

511

593

Revenue by Customer SegmentRevenue by Product

RM mn

RM mn

Wholesale

60%62%

40% 38%

61%

64%63%

39%36% 37%


165

17

YTD Sept 09

176

41%

59%

ASP19%

DC81%

Data to drive revenue growth

Note: Total revenue is after inter-co elimination. Revenue of product is before inter-co elimination

DC : Domestic CarrierASP : Application Service Provider

YTD Sept 08

ASP19%

DC81%

118 12991

127

7796

108

972

5

70

0

50

100

150

200

250

3Q08 1Q09 2Q09 3Q09

Others

Data

Voice

Africa & Middle East8%

America10%

Europe6%

South Asia45%

North Asia12%

Oceania7%

Head1%

Global Alliance11%

Global Solutions0%

343 347

239301

9

18

0

100

200

300

400

500

600

700


Others

Data

Voice

Africa & Middle East4%

America11%

Europe8%

South Asia36%

North Asia24%

Oceania6%

Head5%

Global Alliance6%

Global Solutions0%

212

185

+13.8%

537611

Revenue by RegionRevenue by Product

RM mn

RM mn

42%

58% 52%

48%

40%

60%

44%

56%

56%

44%

Others : Include internet

180


18

+18.9%

+15.7%

GLOBAL

YTD Sept 09

YTD Sept 08

214

55%

45%

Sustain voice & grow data revenue

YTD 2008 YTD 2009 3Q 2008 2Q 2009 3Q 2009

Revenue (RM mil) 6,177.1 6,335.4 2,062.0 2,129.0 2,101.0

Direct Costs % 21.6 21.4 25.6 20.8 23.9

RM mil. 1,334.6 1,358.3 527.0 442.8 502.6

Manpower % 19.3 18.4 18.5 17.6 18.8

RM mil. 1,190.4 1,167.4 382.4 375.8 395.3

Supplies & Materials % 5.3 4.5 4.3 5.8 4.6

RM mil. 324.4 287.8 89.3 124.3 86.5

Bad & Doubtful Debts % 2.0 2.4 0.2 3.5 2.0

RM mil. 125.7 155.1 4.1 74.4 41.8

Marketing Expenses % 4.5 3.5 3.9 3.8 3.6

RM mil. 278.0 223.5 80.2 81.6 75.4

Other Operating Costs % 15.9 14.3 15.5 12.8 15.0

RM mil. 984.7 908.6 319.4 272.4 314.7

Depreciation & Amortisation % 25.4 24.4 25.9 24.9 23.4

RM mil. 1,569.3 1,543.4 533.6 531.1 492.6

Total (RM mil) 5,807.1 5,644.4 1,936.0 1902.4 1,908.9

Total (% of Revenue) 94.0 89.1 93.9 89.4 90.9

19

Cost % Of Revenue

Overview of Malaysia Broadband Landscape

20

Not for distribution without express consent of TM

Note: Industrial Zones will be covered in accordance with HSBB rollout for the coverage areas, with final completion in 2012.

HSBB Coverage – Inner Klang Valley

21

Not for distribution without express consent of TM

HSBB rollout implementation in tandem with development build-up of Iskandar Malaysia, focused on Nusajaya, with final completion in 2012.Rollout implementation for coverage of industrial zones to begin in 2010 with final completion in 2012.

HSBB Coverage – Iskandar Malaysia

22

Sumber : Laporan Tahunan TM (2008). 1Pulse & 1Suara, GCC TM (Jan – Jun 2009)

Frost & Sullivan:Data Communications Service Provider

of the YearBroadband Service Provider of the Year

Malaysian Association of Risk and Insurance Management (MARIM) Award – Excellence

in Risk Management 2009

The Brand Laureate Award Conglomerate 2008 – 2009

Hewitt Associates Award –Malaysia Best Employer 2009

TM 2009 AWARDS & RECOGNITION

Platinum Award Reader’s Digest Trusted Brand

23

THE ENDInvestor Relations Unit

Group Finance

TM

24

telekom malaysia berhad · 2013-06-28 · this presentation contains projections and...

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