Telekom Malaysia Bhd. · MYX:TM

Telekom Malaysia Bhd — H1 2012 Earnings Presentation

25 slides from Telekom Malaysia Bhd's earnings presentation, Aug 29, 2012

  1. Slide 1: 1H 2012 Results Analyst Briefing

    1H 2012 RESULTS ANALYST BRIEFING 29 August 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 1H 2012 vs. 1H2011

    Key Highlights 1H 2012 vs. 1H2011 Good set of results Revenue up by 9.7% to RM4.8bn, with positive growth across all products Reported EBITDA grew by 6.9% to RM1.58bn Normalised EBITDA grew by 5.3% to RM1.577bn Reported PATAMI up by 106.2% to RM599.1mn Normalised PATAMI up by 57.8% to RM406.4 mn Imp

  5. Slide 5: Key Highlights 2Q 2012 QoQ and YoY

    Positive overall improvements Key Highlights 2Q 2012 QoQ and YoY Financial Performance 2Q12 vs 2Q12 vs 1Q12 2Q11 • Operating revenue increased by 1.7% QoQ and 8.6% YoY to RM2.425bn • EBITDA grew by 1.9% QoQ and 6.8% YoY to RM797mn; Normalised EBITDA increased by 1% QoQ and 3.2% YoY to RM792.3mn • PA

  6. Slide 6: Financial review

     Performance Overview Financial review Operating highlights  Concluding remarks 6

  7. Slide 7: Group Results 1H2012

    Group Results 1H2012 Reported Comments RMmn % Change (1H12 vs. 1H11) % Change % Change 2Q12 1Q12 2Q11 1H12 1H11 1H12 vs QoQ YoY 1H11 Positive growth by all key Revenue 2,425.0 2,383.8 +1.7 2,233.6 +8.6 4,808.8 4,381.8 +9.7 products Other Operating 44.1 26.6 +65.8 34.8 +26.7 70.7 56.1 +26.0 Higher du

  8. Slide 8: Normalised EBITDA

    Normalised EBITDA In RM mn 2Q12 1Q12 2Q11 1H12 1H11 Reported EBITDA 797.4 782.6 746.9 1,580.0 1,477.8 Non Operational Loss on Sale of Assets 0.2 0.1 0.4 0.3 0.8 FX (Gain)/Loss on International trade (5.3) 2.0 20.8 (3.3) 18.4 settlement Normalised EBITDA 792.3 784.7 768.1 1,577.0 1,497.0 Normalised E

  9. Slide 9: Normalised PATAMI

    Normalised PATAMI In RM mn 2Q12 1Q12 2Q11 1H12 1H11 Reported PATAMI 348.5 250.6 127.2 599.1 290.5 Non Operational Loss on Sale of Assets 0.2 0.1 0.4 0.3 0.8 FX (Gain)/Loss on International trade (5.3) 2.0 20.8 (3.3) 18.4 settlement Other (Gain)/Losses** 2.4 (1.4) (2.0) 1.0 (2.7) Unrealised FX (Gain)

  10. Slide 10: Cost % of Revenue

    Cost % of Revenue1 Cost/revenue ratio continues to improve RM mn RM3,971.5 RM4,308.0 89.5% 88.3% 1.0 1.3 1H2012 vs. 1H2011 3.8 4.1 6.2 5.7 •Higher Direct cost due to higher 5.6 8.6 international outpayment, USP and 12.1 % of Revenue content cost Bad Debt 10.9 Marketing Expenses •Higher Maintenance c

  11. Slide 11: Group Capital Expenditure

    Improved Capex/Revenue % ratio showing increased Group Capital Expenditure efficiency BAU Capex 7.0 5.7 350 307 300 273 Total Capex 60 250 75 200 98 RM mn 150 80 100 17.1 149 16.3 50 118 0 900 749 785 1H11 1H12 Access Core Network Support System* 800 Note : BAU – Business As Usual 700 80 134 600 HSB

  12. Slide 12: Group Cash Flow & Key Financial Ratios

    Strong Balance Sheet to support future Group Cash Flow & Key Financial Ratios business requirements RM mn 1H12 1H11 Cash & cash equivalent at start 4,212.6 3,488.0 Cashflows from operating activities 703.3 936.7 Cashflows used-in investing activities (1,077.3) (683.9) Capex 785.0 749.0 Cashflows fro

  13. Slide 13: Operating highlights

     Performance Overview Financial review Operating highlights  Concluding remarks 13

  14. Slide 14: Group Total Revenue by Product

    Positive growth across all products vs. Group Total Revenue by Product 1H2011, Internet grew >21%. Voice Internet RM mn 1H12 RM4,809mn RM mn RM mn +19.2% 0.0% +1.3% +21.7% -0.2% +3.4% Others 16% Voice 39% Internet 1,870 1,894 1,145 946 948 946 941 24% 563 582 488 Data 21% 2Q11 1Q12 2Q12 1H11 1H12 2Q

  15. Slide 15: Group Total Revenue by Line of Business

    Global, Govt & Consumer showed highest Group Total Revenue by Line of Business growth in 1H2012 1H12 RM4,809mn Retail Wholesale Others 8% RM mn RM mn Wholesale +9.0% -0.5% -2.1% 8% +1.7% +10.1% +2.7% Consumer 3,297 3,630 Global 27% 9% 1,800 1,831 655 812 1,680 544 544 327 415 397 378 370 Government

  16. Slide 16: Physical Highlights

    Broadband customer base breaches 2mn mark, Physical Highlights ARPUs continue to be stable Broadband Customer Growth UniFi In thousand +9.9% +252.2% +1.9% +21.6% 1,974 2,011 384,024 1,830 1,871 1,923 315,745 1,772 236,501 109 164 237 316 384 58,467 64 164,375 46,436 291 296 314 312 302 297 109,019 3

  17. Slide 17: Concluding remarks

     Performance Overview  Financial review  Operating highlights Concluding remarks 17

  18. Slide 18: Key Takeaways

    Key Takeaways All-round positive set of solid results • TM Group operating revenue up by 9.7% vs. 1H2011 Financial Performance • Normalised EBITDA improved by 5.3% to RM1.577bn • Normalised PATAMI grew by 57.8% to RM406.4mn • Total Capex / Revenue ratio improved to 16.3% • Total broadband customer b

  19. Slide 19: Appendices

    Appendices

  20. Slide 20: Cost % of Revenue

    Cost % of Revenue 2Q12 1Q12 2Q11 1H12 1H11 1H2012 vs. 1H2011 Operating Revenue (RM mil) 2,425.0 2,383.8 2,233.6 4,808.8 4,381.8 - Other Operating Income 44.1 26.6 34.8 70.7 56.1 - (RM mil) Direct Costs % 16.9 18.2 17.3 17.6 17.2 Higher international outpayment, USP RM mil. 418.1 438.9 393.2 857.0 76

  21. Slide 21: Group Balance Sheet

    Group Balance Sheet As at 30 June 2012 As at 31 Dec 2011* RM Million Shareholders’ Funds 7,726.2 7,477.5 Non-Controlling Interests 151.9 162.9 Deferred & Long Term Liabilities 10,212.1 10,053.9 Long Term Borrowings 6,651.2 6,402.7 Deferred Tax 1,380.8 1,559.6 Deferred Income 2,164.8 2,072.7 Derivati

  22. Slide 22: Retail

    RETAIL Revenue by Product Revenue by Business Unit RM mn +10.1% 1H12 RM3,631mn 4,000 RM mn 3,631 3,297 359 262 3,000 Government 1,135 22% 933 Consumer 2,000 Others 37% 568 625 Internet Enterprise Data 15% 1,000 Voice 1,554 1,528 SME 26% 0 1H11 1H12 +9.0% RM mn +1.7% 1H11 RM3,297mn RM mn 2000 1,831 1

  23. Slide 23: Wholesale

    WHOLESALE Revenue by Product Revenue by Customer Segment RM mn -2.1% 1H12 600 378 ASP 370 16% 40 41 400 Others 291 298 200 Data MC Voice 84% 116 102 0 1H11 1H12 1H11 RM mn 0.0% +2.7% ASP 250 187 187 17% 182 18 22 200 19 150 Others 142 145 152 MC Data 100 83% Voice 50 61 50 52 0 MC : Malaysian Carrie

  24. Slide 24: Global

    GLOBAL Revenue by Product Revenue by Region +16.8% RM mn 1H12 500 437 Others America 8 12% 14% 374 400 4 188 300 178 Others Europe & AFME 200 Data South Asia 15% 32% 273 Voice 100 209 Oceania & North Asia 27% 0 1H11 1H12 +10.4% RM mn 1H11 -5.8% Others America 12% 7% 225 212 250 3 6 192 200 2 Europe

  25. Slide 25: 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 — H1 2012 Earnings Presentation on 6ix