Telekom Malaysia Bhd. · MYX:TM
Telekom Malaysia Bhd — Q3 2011 Earnings Presentation
27 slides from Telekom Malaysia Bhd's earnings presentation, Nov 24, 2011
Slide 1: 3Q 2011 Results Analyst Briefing
3Q 2011 RESULTS ANALYST BRIEFING 24 November 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 YTD Sept 2011
Key Highlights YTD Sept 2011 Operating revenue up by 3.6% to RM6,703.5mn, from RM6,470.4mn Internet & Multimedia and Data revenue continued to grow Normalised EBITDA margin improved to 33.9% Normalised PATAMI up by 21.3% to RM394.7mn, from RM325.3mn HSBB on track to reach 1.1 mn premises passed and
Slide 5: Key Highlights 3Q 2011
Continued QoQ and YoY growth Key Highlights 3Q 2011 3Q11 vs 3Q11 vs 3Q10 2Q11 Financial Performance Operating revenue grew by 3.9% QoQ and 5.8% YoY to RM2,321.7mn. Internet & Multimedia and Other revenue showed highest growth. EBITDA for 3Q11 up 8.8% QoQ and 7.0% YoY to RM812.5mn. Normalised EBI
Slide 6: Focus on Shareholder Value Creation
Growing enterprise value through improving Focus on Shareholder Value Creation return on capital 2008 2009 2010 YTD11 Our capital management approach is guided by two Total Return to 7.7% 42.9% 24.0% 31.0% 1 major principles : Shareholder (TRS) Striving to optimize capital Cash Balance (RM bn) 2.1
Slide 7: Financial Review
Performance Overview Financial review Operating highlights Concluding remarks 7
Slide 8: Group Results 3Q11
Group Results 3Q11 Reported Comments RMmn % Change (YTD11 vs YTD10) % Change % Change 3Q11 2Q11 3Q10 YTD11 YTD10 YTD11 vs QoQ YoY YTD10 Continued higher data and Revenue 2,321.7 2,233.6 +3.9 2,194.6 +5.8 6,703.5 6,470.4 +3.6 internet revenue Lower due to lower ESOS income Other Operating 27.8 34.8 -
Slide 9: Normalised EBITDA
Normalised EBITDA Improving margins due to higher operating revenue In RM mn 3Q10 2Q11 3Q11 YTD10 YTD11 Reported EBITDA 759.5 746.9 812.5 2,165.7 2,290.3 Non Operational ESOS (Income) - net (17.2) - - (5.0) - FX (Gain)/Loss on International trade (1.4) 20.7 (9.4) 0.8 9.0 Settlement Loss on sale of s
Slide 10: Normalised PATAMI
Normalised PATAMI In RM mn 3Q10 2Q11 3Q11 YTD10 YTD11 Reported PATAMI 438.5 127.2 302.2 805.8 592.7 Non Operational ESOS (Income) - net (17.2) - - (5.0) - FX (Gain)/Loss on International trade (1.4) 20.7 (9.4) 0.8 9.0 settlement Loss on sale of staff housing loans - 0.4 0.2 1.1 1.0 Other (Gain) – ne
Slide 11: Cost % of Revenue
Cost % of Revenue1 Improvement in Cost/revenue ratios will continue to be emphasized RM mn RM5,835.0 RM6,089.2 YTD Sept 2011 vs. YTD Sept 2010 88.8% 89.7% •Higher Depreciation & Amortisation mainly due to higher asset base and 0.7 0.8 4.1 new asset additions, and provision for 4.5 5.1 6.0 asset writ
Slide 12: Group Capital Expenditure
Group Capital Expenditure Capex efficiencies remain the focus BAU Capex 8.9 9.0 700 598 581 Total Capex 600 500 163 149 400 140 184 RM mn 300 200 22.2 21.2 278 265 100 1600 1,438 1,424 0 1400 YTD10 YTD11 211 Access Core Network Support System* 1200 434 Note : BAU – Business As Usual 1000 HSBB Capex*
Slide 13: Group Cash Flow & Key Financial Ratios
Strong Cash Balance to support future Group Cash Flow & Key Financial Ratios business requirements RM mn YTD10 YTD11 Cash & cash equivalent at start 3,490.2 3,488.0 Cashflows from operating activities 1,662.8 1,661.8 Cashflows from / (used-in) investing activities (673.7) (653.6) Capex* 995.0 860.7
Slide 14: Operating Highlights
Performance Overview Financial review Operating highlights Concluding remarks 14
Slide 15: Group Total Revenue by Product
Non-voice revenue now 58% of total, led by Internet Group Total Revenue by Product which grew by 26.3% YoY in 3Q11 Voice Internet RM mn YTD11 RM6,704mn RM mn RM mn -1.4% -3.2% +26.3% +20.1% +0.1% +6.4% Others 16% 2,910 2,817 1,460 Voice 960 946 947 1,216 488 519 Internet 42% 411 22% Data 3Q10 2Q11 3
Slide 16: Group Total Revenue by Line of Business
Group Total Revenue by Line of Business Consumer & Government segments showed highest Growth YTD Retail Wholesale YTD11 RM6,704mn Others RM mn RM mn Wholesale 4% +5.8% +4.9% +3.2% +1.2% 8% +2.0% 5,295 +1.6% 5,047 Global 969 1,016 9% 1,781 1,817 1,718 361 1,073 1,094 352 327 355 387 370 562 569 1,326
Slide 17: Physical Highlights
Broadband growth driven by Unifi Physical Highlights Broadband Customer Growth WiFi Hotspot Zones +16.2% +611.9% In thousand +2.2% +7.5% 1,830 1,871 17,313 2,000 1,713 1,772 16,111 1,545 1,610 64 109 164 13,251 1,600 1,485 33 4 14 287 291 296 314 10,982 7,007 280 285 6,962 273 5,357 1,200 2,245 2,53
Slide 18: UniFi – leading & shaping the future
UniFi – leading & shaping the future Unifi takeup continues to exceed expectations +1082.5% +50.8% UniFi update as at 21 November 2011 164,375 109,019 24,479 63,541 15,912 Delivered 1,096,000 premises passed 32,896 8,385 4,125 covering 77 exchanges 13,901 4,051 1,445 139,896 93,107 448 28,771 55,156
Slide 19: Concluding Remarks
Performance Overview Financial review Operating highlights Concluding remarks 19
Slide 20: Key Takeaways
Key Takeaways • TM Group revenue up by 3.6% compared to YTD Sept 2010 driven by Internet & Multimedia and Data Financial Performance Services • Normalised EBITDA margin improved to 33.9% • Normalised PATAMI up 21.3% • Capex efficiency - down to 21.2% of revenue, due to Capital Management planning ef
Slide 21: Appendices
Appendices
Slide 22: Cost % of Revenue
Cost % of Revenue 3Q10 2Q11 3Q11 YTD10 YTD11 YTD Sept 11 vs YTD Sept 10 Operating Revenue (RM mil) 2194.5 2,233.6 2,321.7 6,470.4 6,703.5 - Other Operating Income 39.7 34.8 27.8 100.2 83.9 - (RM mil) Direct Costs % 19.2 18.6 18.0 20.8 18.4 Lower Interconnect and International RM mil. 429.5 422.0 423
Slide 23: Group Balance Sheet
Group Balance Sheet RM Million As at 30 Sept 2011 As at 31 Dec 2010 Shareholders’ Funds 6,351.7 7,709.4 Non-Controlling Interests 151.7 150.8 Deferred & Long Term Liabilities 9,948.6 8,630.3 Long Term Borrowings 6,212.4 5,506.0 Deferred Tax 1,801.0 1,664.2 Deferred Income 1,919.5 1,432.1 Derivative
Slide 24: Retail By Products Total Revenue
RETAIL By Products Total Revenue Revenue by Product Revenue by Business Unit RM mn +4.9% YTD11 RM5,295mn 6,000 5,295 RM mn 5,047 5,000 1,069 1,060 Government 4,000 1,206 1,447 Others 19% Internet Consumer 3,000 34% 656 752 Data 2,000 Voice Enterprise 21% 1,000 2,390 2,329 SME 26% 0 YTD10 YTD11 +5.8%
Slide 25: Wholesale
WHOLESALE Revenue by Product Revenue by Customer Segment RM mn +1.2% 569 YTD11 700 562 42 62 600 ASP 500 17% 400 412 442 Others 300 Data 200 Voice 100 MC 198 170 83% 0 YTD10 YTD11 +3.2% RM mn +1.6% YTD10 250 191 185 188 ASP 14 19 22 17% 200 150 Others 145 142 151 Data 100 Voice MC 83% 50 58 61 54 0
Slide 26: Global
GLOBAL Revenue by Product Revenue by Region RM mn -7.8% YTD11 639 Africa & 700 Middle East 23 589 Others 7% 600 6 11% America 500 325 241 8% Oceania Others 400 9% 13 Data Europe 300 IRU Sales (Data) 11% 200 Voice 335 352 North Asia 100 17% South Asia 0 37% YTD10 YTD11 -3.2% YTD10 RM mn +12.0% Africa
Slide 27: 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 — Q3 2011 Earnings Presentation on 6ix