Slide 1: 25th August 2020
25th August 2020
Slide 2: 2019 At a Glance
2019 AT A GLANCE Sustained Revenue and Profit Growth Sustained Group revenue growth YoY at 13% to surpass the RM1 billion mark at Continued Network Expansion RM1,114 million. All core customer groups Growing our domestic fibre network recorded revenue growth in FY2019 – further to close the gap to t
Slide 3: Business Pillars
BUSINESS PILLARS TIME dotCom Berhad Domestic Network Global Network Data Centre ASEAN 100% fibre optic-based International bandwidth Carrier-neutral data Strategic acquisitions/ domestic fixed-line provider with a centre operator with joint ventures/ telecommunications global footprint world-class d
Slide 4: Business Review
BUSINESS REVIEW
Slide 5: Domestic Network
DOMESTIC NETWORK • Continued to innovate and deliver market- oriented and cost-competitive products catering to market needs and demands • Launched Malaysia’s first retail broadband service with no lock-in contract option • Maintained position as the brand providing the fastest and most competitivel
Slide 6: Global Network
GLOBAL NETWORK • Extensive reach of its subsea cable systems to continue delivering strong business and operational performance • Strong value proposition of its combined cable systems has enabled improved revenue in the face of increasing competition and a general decrease in global bandwidth rates
Slide 7: Data Centre
DATA CENTRE • Recognized as Malaysia’s Cloud Infrastructure Provider of the Year by Frost & Sullivan in 2019 • Total data centre space increased by 6% to 78,215 sq ft Data Centres Location (Net Lettable Area in Sq Ft) Menara AIMS, Kuala Lumpur 56,945 Cyberjaya 18,700 Others 2,570 Total 78,215 • The
Slide 8: ASEAN
ASEAN RM ’million VIETNAM THAILAND FY2019 45.3% 49.00% 46.8% Revenue 293.4 17.4 176.7 As reported by investee Profit/ (Loss) After Tax & Other comprehensive 26.2 (2.3) N1 6.1 Income TIME’s shares in Share of Profit Proportion to it’s on Investment 11.8 - N1 2.9 interest of Associates Total Share of
Slide 9: Financial Review
FINANCIAL REVIEW
Slide 10: 2019 Performance Summary
2019 PERFORMANCE SUMMARY FY2019 Financial Performance As reported MFRS 16 FY2019 FY2018 N2 YoY% In RM ’million under MFRS adjustments Pre-MFRS16 Pre-MFRS16 16 Revenue 1,113.9 0.0 1,113.9 983.4 +13% EBITDA 479.8 (23.9) 455.9 427.4 +7% N1 Adjusted EBITDA 510.0 (23.9) 486.1 419.8 +16% Adjusted EBITDA 4
Slide 11: Revenue: TIME Group
REVENUE:TIME GROUP YOY+13% 1,113.9 983.4 6.7 10.4 295.3 CR+14% 3.7 274.8 278.2 3.0 262.5 274.8 291.6 973.0 1,107.2 Q1-19 Q2-19 Q3-19 Q4-19 FY2018 FY2019 One-off non-recurring contracts Data, Data Centre, Voice and Others CR: Core revenues 11 Note : Numbers are in RM ‘million.
Slide 12: Revenue: By Product
REVENUE:BY PRODUCT DATA DATA CENTRE VOICE YoY +17%, CR +17% YoY -2%, CR +2% YoY +5% 132.5 130.0 6.0 0.5 907.2 777.4 6.2 4.4 773.0 901.0 126.5 129.5 68.7 72.2 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 One-off non-recurring contracts Data, Data Centre, Voice and Others CR: Core revenues 12 Note : Numb
Slide 13: Revenue: By Customer Group
REVENUE:BY CUSTOMER GROUP WHOLESALE ENTERPRISE RETAIL YoY +13%, CR +13% YoY +7% CR +7% YoY +27% 6.0 68.7 72.2 FY2018 FY2019 FY 2018 FY 2019 FY 2018 FY 2019 One-off non-recurring contracts Data, Data Centre, Voice and Others CR: Core revenues 13 Note : Numbers are in RM ‘million.
Slide 14: Capital Expenditure
CAPITAL EXPENDITURE Breakdown of Telco Assets Acquired 276.2 267.1 41.1 19.6 23.5 12.0 I 8.8% 110.9 43.1 I 20.4% 0.3 I 0.2% 95.4 I 45.1% FY2018 11.1 I 5.2% FY2019 124.3 I 91.0% 211.6 136.6 62.0 I 29.3% FY2018 FY2019 Telco Assets Non -Telco Assets Submarine Cable HPOE Card Upgrade Data Centre Regiona
Slide 15: Moving Forward
MOVING FORWARD
Slide 16: 2020 and Beyond
2020 AND BEYOND COVID-19: Medium term priorities Uncertain times ahead • Domestic • The Group expects • Focus on supporting the government to achieve challenges to continue national telecommunications objectives; intensify domestically and regionally coverage footprint expansion for the remainder of
Slide 17: MSWG: Strategy and Financial Matters
MSWG STRATEGY AND FINANCIAL MATTERS
Slide 18: Question 1
QUESTION 1 With consumers expressing greater price sensitivity and reduced brand loyalty, TIME launched Malaysia’s first no lock-in contract option for the retail market. This was a game-changer for the industry and marked a change towards providing contract flexibility and greater adaptability to m
Slide 19: Question 2
QUESTION 2 2019 was also the year the Group expanded its data centre business by establishing AIMS Data Centre (Thailand) Limited. This reflects the growing potential of data centre operations given the rapid adoption of big data analytics and other technological trends that require data warehousing
Slide 20: Question 3
QUESTION 3 In Malaysia, the Group concentrated its efforts on strengthening and improving its domestic fibre network infrastructure while expanding coverage footprint. This has enabled the Group to grow its market share and customer base despite the emergence of new players in the industry. (Page 9
Slide 21: Question 4
QUESTION 4 In view of its desire to reduce reliance on a single market, the Group has continued to expand its presence on the regional front. Increasing demand for cross-border connectivity across Southeast Asia provides opportunities to penetrate new high-growth markets and remains an area that the
Slide 22: Question 4 (Cont'd)
QUESTION 4 (CONT’D) TIME will continue to work with our partners in Thailand and Vietnam to focus on tapping the increasing demand for cross border connectivity across the region while looking to create a seamless ASEAN telecommunications network which will connect Indochina to Malaysia and Singapor
Slide 23: Question 5
QUESTION 5 The Group’s earnings and profit were impacted by provisions made for doubtful debts for shareholder loans given to an associate amounting to RM6.5 million (FY2018: RM7.2 million) and a provision for financial guarantees of RM16.1 million to secure banking facilities of the said associate
Slide 24: Question 6
QUESTION 6 Other income decreased significantly from RM24.437 million in FY2018 to RM0.515 million in FY2019 while other expenses increased substantially from RM0.968 million to RM24.469 million. (Page 77 of AR) What were the reasons for such significant changes? What is the outlook for other income
Slide 25: Question 6 (Cont'd)
QUESTION 6 (CONT’D) The main reasons for the changes in higher Other Expenses in FY2019 were due to: (i) a net loss on foreign exchange of RM1.888 million; (ii) provision for financial guarantees of RM16.081 million; and (iii) higher write off of Property, Plant and Equipment at RM6.500 million (FY2
Slide 26: Question 7
QUESTION 7 Revenue from Data Centre (external customers) declined from RM132.458 million in FY2018 to RM130.006 million in FY2019. (Page 140 of AR) (a) What were the reasons for the decline given the rapid adoption of big data analytics and other technological trends that require data warehousing ca
Slide 27: Question 7 (Cont'd)
QUESTION 7 (CONT’D) We anticipate demand for our data centre offerings to continue growing in both the short and medium terms. In line with this expectation, the Group has invested in a new data centre in Thailand (built in partnership with its associate - Symphony Communications Public Company Limi
Slide 28: MSWG: Corporate Governance Matters
MSWG CORPORATE GOVERNANCE MATTERS
Slide 29: Question 1
QUESTION 1 Under the Malaysian Code on Corporate Governance (MCCG), Practice 4.2 states, among others, that if the board intends to retain an independent director beyond nine years, it should justify and seek annual shareholders’ approval. TIME’s response: Applied - Two Tier Voting MSWG’s response:
Slide 30: Question 1 (Cont'd)
QUESTION 1 (CONT’D) Encik Abdul Kadir Md Kassim was appointed as Non-Independent Non-Executive Director of TIME on 22 October 2001. He was appointed as the Non-Independent Non-Executive Chairman of TIME on 15 January 2010. From June 2010 to May 2017, Encik Abdul Kadir Md Kassim was annually re-elect
Slide 31: Thank You
THANK YOU Should you have any queries, please contact: investor.relations@time.com.my TIME dotCom Berhad No.14, Jalan Majistret U1/26, Hicom Glenmarie Industrial Park, 40150 Shah Alam, Selangor, MALAYSIA Tel: +603-5032 6000 I Fax: +603-5032 6100 I www.time.com.my 32
Slide 32: Disclaimer
DISCLAIMER This presentation and the discussion following may contain forward looking statements by TIME dotCom Berhad (“TIME”) related to financial, market or industry trends for future period. These forward looking statements involve known and unknown risks and uncertainties which may cause the ac
Slide 33: You Get the Rocket, We Do the Science
YOU GET THE ROCKET WE DO THE SCIENCE