Telekom Malaysia Bhd. · MYX:TM

Telekom Malaysia Bhd — Q1 2012 Earnings Presentation

24 slides from Telekom Malaysia Bhd's earnings presentation, May 30, 2012

  1. Slide 1: 1Q 2012 Results Analyst Briefing

    1Q 2012 RESULTS ANALYST BRIEFING 30 May 2012

  2. 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

  3. Slide 3: Performance Overview

    Performance Overview Financial review Operating highlights  Concluding remarks 3

  4. Slide 4: Key Highlights 1Q 2012

    Key Highlights 1Q 2012 1Q12 vs 1Q11 Financial Performance • Operating revenue increased by 11.0% YoY to RM2,383.8mn • EBITDA grew by 7.1% YoY to RM782.6mn; Normalised EBITDA increased by 7.6% YoY to RM784.6mn • PATAMI grew by 53.5% YoY to RM 250.6mn; Normalised PATAMI grew by 50.0% YoY to RM183.3mn

  5. Slide 5: Financial review

     Performance Overview Financial review Operating highlights  Concluding remarks 5

  6. Slide 6: Group Results 1Q2012

    Group Results 1Q2012 Reported Comments RMmn (1Q12 vs. 1Q11) 1Q12 4Q11 % Change QoQ 1Q11 % Change YoY Revenue 2,383.8 2,447.2 -2.6 2,148.2 +11.0 Positive growth by all key products Other Operating 26.6 37.0 -28.1 21.3 +24.9 - Income EBITDA 782.6 796.1 -1.7 730.9 +7.1 - EBITDA margin 32.5% 32.0% +0.5p

  7. Slide 7: Normalised EBITDA

    Normalised EBITDA In RM mn 1Q12 4Q11 1Q11 Reported EBITDA 782.6 796.1 730.9 Non Operational Loss on Sale of Assets - 0.3 0.4 FX (Gain)/Loss on International trade settlement 2.0 12.9 (2.3) Impairment of AFS – Receivables - (1.2) - Normalised EBITDA 784.6 808.1 729.0 Normalised EBITDA Margin 32.6% 32

  8. Slide 8: Normalised PBT & PATAMI

    Normalised PBT & PATAMI In RM mn 1Q12 4Q11 1Q11 Reported PBT 299.3 229.6 227.3 Non Operational Loss on Sale of Assets - 0.3 0.4 FX (Gain)/Loss on International trade settlement 2.0 12.9 (2.3) Other (Gain)/Losses** (1.4) (5.5) (0.7) Unrealised FX (Gain)/Loss on Long Term loans (67.9) (14.5) (38.5) Im

  9. Slide 9: Cost % of Revenue

    Cost % of Revenue1 Continued improvement of cost/revenue ratio RM mn RM1,938.6 RM2,138.4 89.4% 88.7% 1.7 1Q2012 vs. 1Q2011 2.2 4.5 3.9 5.0 6.1 •Higher Direct cost due to higher 5.0 7.5 international outpayment and content 11.9 % of Revenue cost Bad Debt 10.2 Marketing Expenses •Higher Maintenance co

  10. Slide 10: Group Capital Expenditure

    Group Capital Expenditure Higher HSBB capex spend in line with expansion BAU Capex 4.7 4.1 120 101 98 Total Capex 100 17 22 80 27 60 23 RM mn 40 57 53 9.7 12.0 20 350 0 287 1Q11 1Q12 300 Access Core Network Support System* Note : BAU – Business As Usual 250 58 209 HSBB Capex** 200 17 60 49 5.0 7.9 1

  11. Slide 11: Group Cash Flow & Key Financial Ratios

    Strong Balance Sheet to support future Group Cash Flow & Key Financial Ratios business requirements RM mn 1Q12 1Q11 Cash & cash equivalent at start 4,212.6 3,488.0 Cashflows from operating activities 242.8 455.9 Cashflows used-in investing activities (541.4) (412.2) Capex 287.0 209.0 Cashflows from

  12. Slide 12: Operating highlights

     Performance Overview Financial review Operating highlights  Concluding remarks 12

  13. Slide 13: Group Total Revenue by Product

    Group Total Revenue by Product Positive YoY growth for all products Voice Internet RM mn 1Q12 RM2,384mn RM mn +2.6% RM mn +24.3% +3.4% +4.1% Others 15% Voice 40% Internet 924 917 948 541 563 453 24% Data 21% 1Q11 4Q11 1Q12 1Q11 4Q11 1Q12 Data Others* 1Q11 RM2,148mn RM mn RM mn +10.5% RM mn +17.3% -5

  14. Slide 14: Group Total Revenue by Line of Business

    YoY revenue growth in Retail and Global Lines Group Total Revenue by Line of Business of Business 1Q12 RM2,384mn Retail Wholesale Others RM mn RM mn Wholesale 7% +11.3% -4.2% +0.2% -9.5% 8% 1,796 1,800 1,617 Global 417 415 9% 328 258 266 267 474 463 190 201 440 182 Retail 591 639 655 76% 1Q11 4Q11 1

  15. Slide 15: Physical Highlights

    Physical Highlights Broadband continues to grow, ARPUs stable Broadband Customer Growth UniFi In thousand +11.4% +396.9% +2.7% +33.5% 1,974 315,745 1,830 1,871 1,923 236,501 1,772 46,436 64 109 164 237 316 164,375 291 296 314 109,019 34,659 312 302 24,479 63,541 15,912 +72 +79 +58 +41 8,385 +55 +52

  16. Slide 16: Concluding remarks

     Performance Overview  Financial review  Operating highlights Concluding remarks 16

  17. Slide 17: Key Takeaways

    Key Takeaways • Operating revenue grew by 11.0% YoY Financial Performance • EBITDA grew by 7.1% YoY • PATAMI grew by 53.5% YoY • Internet & Multimedia revenue grew by 24.3% YoY • Streamyx and UniFi customers cumulatively grew Broadband Champion 11.4% YoY to 1.97mn • 2mn total broadband customers to

  18. Slide 18: Appendices

    Appendices

  19. Slide 19: Cost % of Revenue

    Cost % of Revenue 1Q12 4Q11 1Q11 1Q2012 vs. 1Q2011 Operating Revenue (RM mil) 2,383.8 2,447.2 2,148.2 - Other Operating Income 26.6 37.0 21.3 - (RM mil) Direct Costs % 18.2 15.3 17.1 Higher international outpayment and content RM mil. 438.9 379.8 370.2 cost Manpower % 19.3 19.6 21.2 Lower due to low

  20. Slide 20: Group Balance Sheet

    Group Balance Sheet RM Million As at 31 Mar 2012 As at 31 Dec 2011* Shareholders’ Funds 7,726.9 7,477.5 Non-Controlling Interests 170.9 162.9 Deferred & Long Term Liabilities 10,086.8 10,053.9 Long Term Borrowings 6,308.3 6,402.7 Deferred Tax 1,577.0 1,559.6 Deferred Income 2,178.5 2,072.7 Derivativ

  21. Slide 21: Retail

    RETAIL Revenue by Product Revenue by Business Unit 1Q12 RM1,800mn RM mn +11.3% Government RM mn 23% +0.2% Consumer 36% 2000 Enterprise 1,796 1,800 15% 1,617 171 223 138 SME 1500 26% 536 558 448 Others 1000 270 293 318 Internet Data 500 Voice 1Q11 RM1,617mn RM mn 769 752 758 0 Government 1Q11 4Q11 1Q

  22. Slide 22: Wholesale

    WHOLESALE Revenue by Product Revenue by Customer Segment 1Q12 ASP 17% -4.2% RM mn -9.5% MC 250 190 201 83% 182 21 23 200 19 150 149 155 145 Others 1Q11 100 Data Voice ASP 50 16% 55 54 50 0 1Q11 4Q11 1Q12 MC 84% MC : Malaysian Carrier Tier ASP : Application Service Provider Note: Pure TM Wholesale cu

  23. Slide 23: Global

    GLOBAL Revenue by Product Revenue by Region 1Q12 Others 11% America 14% Europe & +23.6% AFME RM mn -12.1% 15% 350 South Asia 300 256 34% 2 Oceania & 225 North Asia 250 104 3 26% 182 Others 200 2 92 Data 150 87 56 IRU Sales (Data) 1Q11 100 Voice Others America 126 143 12% 7% 50 102 Europe & AFME 0 17

  24. Slide 24: Thank You

    THANK YOU Any queries please email to : investor@tm.com.my •Investor Relations• Level 11 (South Wing) •Menara TM •JlnPantaiBharu •50672 Kuala Lumpur, Malaysia • Tel (603) 2240 4848/ 7366 / 7388

Telekom Malaysia Berhad — Q1 2012 Earnings Presentation on 6ix