Telekom Malaysia Bhd. · MYX:TM
Telekom Malaysia Bhd — Q1 2011 Earnings Presentation
27 slides from Telekom Malaysia Bhd's earnings presentation, May 25, 2011
Slide 1: 1Q 2011 Results Briefing to Analyst
1Q 2011 RESULTS BRIEFING TO ANALYST 25 May 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 1Q 2011
Key Highlights 1Q 2011 Revenue improved by 1.1% YoY on the back of Data & Internet growth EBITDA improved 1.5% YoY Capex/Revenue ratio improved from 13.9% to 9.7% Broadband leadership: Streamyx customer base grew 15.0% YoY Strong Unifi takeup 4
Slide 5: Financial Highlights 1Q 2011
Improved YoY performance Financial Highlights 1Q 2011 1Q11 vs 1Q10 Financial Performance Operating revenue increased by 1.1% YoY to RM2,148.2mn in 1Q11 from higher contribution from data services, internet & multimedia EBITDA for 1Q11 up 1.5% YoY to RM730.9mn, Normalised EBITDA up 0.4% YoY Nor
Slide 6: Focus on Shareholder Value Creation
Growing enterprise value through improving Focus on Shareholder Value Creation return on capital 2008 2009 2010 1Q11 Our capital management approach is guided by two Total Return to 7.7% 42.9% 24.0% 14.8% 1 major principles : Shareholder (TRS) Striving to Cash Balance (RM bn) 2.1 3.5 3.5 3.6 optim
Slide 7: Financial review
Performance Overview Financial review Operating highlights Concluding remarks 7
Slide 8: Group Results 1Q11
Group Results 1Q11 Reported Comments RMmn % Change % Change (QoQ) 1Q11 4Q10 1Q10 QoQ YoY Lower due to lower data Revenue 2,148.2 2,320.6 -7.4 2,124.9 +1.1 services, voice, SchoolNet and Yellow Pages revenue Other Operating Lower due to lower sale of scrap 21.3 52.7 -59.6 30.9 -31.1 and insurance cla
Slide 9: Normalised EBITDA
Normalised EBITDA In RM mn 1Q10 4Q10 1Q11 Reported EBITDA 720.0 758.6 730.9 Non Operational ESOS (Income) / Cost - net 11.9 - - FX (Gain)/Loss on International trade (5.7) 20.9 (2.3) settlement Impairment of AFS (available for sale) - 15.4 - receivables (Gain)/Loss on sale of staff housing loans - 1
Slide 10: Normalised PATAMI
Normalised PATAMI In RM mn 1Q10 4Q10 1Q11 Reported PATAMI 242.9 400.7 163.3 Non Operational ESOS (Income) / Cost - net 11.9 - - FX (Gain)/Loss on International trade (5.7) 20.9 (2.3) settlement Impairment of AFS (available for sale) receivables - 15.4 - (Gain)/Loss on sale of staff housing loans - 1
Slide 11: Cost % of Revenue
Cost % of Revenue1 Improvement in Cost/revenue ratios will continue to be emphasized RM mn RM1,892.6 RM2,180.4 RM1,938.6 Year on Year: 87.8% 91.9% 89.4% • Higher Depreciation & 0.9 1.6 3.7 1.7 Amortisation mainly due to new 4.1 4.3 7.4 5.0 asset additions 5.2 5.1 4.7 5.1 10.6 • Lower Direct Cost mai
Slide 12: Group Capital Expenditure
Improved Capex/Revenue ratio Group Capital Expenditure BAU Capex 23.6 600 547 Total Capex 500 146 400 300 168 RM mn 5.8 4.7 200 124 54.9 101 100 31 233 17 1400 1,274 38 27 55 57 0 1200 1Q10 4Q10 1Q11 338 Access Core Network Support System* 1000 Note : BAU – Business As Usual 800 HSBB Capex** 470 600
Slide 13: Group Cash Flow & Key Financial Ratios
Strong Cash Balance to support future Group Cash Flow & Key Financial Ratios business requirements RM mn 1Q11 1Q10 Cash & cash equivalent at start 3,488.0 3,490.2 Cashflows from operating activities 445.9 577.0 Cashflows from / (used-in) investing activities (412.2) (182.2) Capex* 209.0 87.4 Cashflo
Slide 14: Operating highlights
Performance Overview Financial review Operating highlights Concluding remarks 14
Slide 15: Group Total Revenue by Product
Group Total Revenue by Product Voice Internet RM mn 1Q11 RM2,148mn RM mn RM mn -4.5% +12.7% -3.0% +3.7% Others 16% Voice Internet 43% 21% 968 953 924 437 453 402 Data 20% 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 Note: 1Q2010 revenue of RM20mn reclassified from internet to voice Data Others RM mn +6.8% RM mn 1Q
Slide 16: Group Total Revenue by Line of Business
Group Total Revenue by Line of Business Retail Wholesale 1Q11 RM2,148mn Others RM mn +1.9% RM mn +0.0% Wholesale 4% -2.2% -1.6% 9% 1,665 1,736 1,697 347 328 Global 320 8% 347 358 337 190 193 190 437 446 440 561 585 592 Retail 79% 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 Consumer SME Enterprise Government Globa
Slide 17: UniFi update – leading & shaping the future
UniFi update – leading & shaping the future Ramping-up of Unifi service and takeup UniFi update as at today*… +93.2% 63,541 1 delivered 855,000 premises passed covering 32,896 8,385 66 exchanges 4,125 13,901 Activated more than 86,000 customers 1,445 2 4,051 55,156 448 28,771 +10 12,456 +19 +31 3,60
Slide 18: Physical Highlights
Broadband champion - with continued growth in all Physical Highlights segments Streamyx Customer Growth WiFi Hotspot Zones +15.0% +490.2% In thousand +1.7% +20.7% 2,000 13,251 1,680 1,708 1,541 1,596 10,982 1,485 1,500 287 291 280 285 5,357 273 2,533 2,432 4,374 1,000 2,245 +56 +55 +84 +28 772 940 1
Slide 19: Concluding remarks
Performance Overview Financial review Operating highlights Concluding remarks 19
Slide 20: Key Takeaways
Key Takeaways • Revenue and EBITDA grew by 1.1% and 1.5% YoY. Financial Performance • Non-voice revenue continues to surpass voice • Capex / revenue ratio for total capex improved from 13.9% for Capital Management to 9.7%. • Continued monetization of non-core assets • Continued growth for broadband
Slide 21: Appendices
Appendices
Slide 22: Cost % of Revenue
Cost % of Revenue 1Q11 4Q10 1Q10 1Q11 vs 1Q10 Operating Revenue (RM mil) 2,148.2 2,320.6 2,124.9 - Other Operating Income 21.3 52.7 30.9 - (RM mil) Direct Costs % 18.6 19.4 21.3 Lower interconnect and international RM mil. 403.1 460.1 458.7 outpayment Manpower % 20.8 20.9 19.1 •New collective agreem
Slide 23: Group Balance Sheet
Group Balance Sheet As at 31 March 2011 As at 31 Dec 2010 RM Million Shareholders’ Funds 7,910.7 7,709.4 Non-Controlling Interests 162.2 150.8 Deferred & Long Term Liabilities 8,872.2 8,630.3 Long Term Borrowings 5,456.2 5,506.0 Deferred Tax 1,616.5 1,664.2 Deferred Income 1,760.3 1,432.1 Derivative
Slide 24: Retail By Products
RETAIL By Products Total Revenue Revenue by Product Revenue by Business Unit 1Q11 RM1,697mn RM mn Government RM mn +1.9% 19% Consumer -2.2% 35% 2000 Enterprise 1,736 1,697 20% 1,665 394 343 SME 333 26% 1500 399 431 448 1000 208 215 229 1Q10 RM1,665mn RM mn 500 788 787 769 Government 19% 0 Consumer 1
Slide 25: Wholesale
WHOLESALE Revenue by Product Revenue by Customer Segment 1Q11 +0.0% ASP RM mn 16% -1.6% 250 193 190 190 23 16 21 200 MC 84% 150 134 154 149 100 50 1Q10 69 58 55 0 1Q10 4Q10 1Q11 ASP 17% Voice Data Others MC 83% MC : Malaysian Carrier ASP : Application Service Provider Note: Total revenue is after in
Slide 26: Global
GLOBAL Revenue by Product Revenue by Region 1Q11 Africa & Others Middle East 12% 8% America RM mn -9.9% Oceania 7% -34.1% 8% Europe 10% 300 276 5 North Asia 202 18% South Asia 5 182 200 168 38% 2 101 87 100 1Q10 Africa & 113 111 102 Middle East Others 9% 13% America 0 6% 1Q10 4Q10 1Q11 Oceania 7% Eu
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 — Q1 2011 Earnings Presentation on 6ix