TIME dotCom Bhd. · MYX:TIMECOM
TIME dotCom Bhd — Q3 2011 Earnings Presentation
29 slides from TIME dotCom Bhd's earnings presentation, Nov 29, 2011
Slide 1: TIME dotCom Berhad Analysts' Briefing
TIME dotCom Berhad Analysts’ Briefing 29 November 2011 1
Slide 2: Agenda
Agenda 1. Update on Corporate Proposals 2. Q3, 2011 Financial Results 3. Forward Plans 4. Questions & Answers 2
Slide 3: Part 1: Update on Corporate Proposals
Part 1: Update on Corporate Proposals 3
Slide 4: Transaction Summary Proposals
Transaction Summary Proposals Proposed Capital Repayment of RM0.02 per share Proposed Acquisition 100% equity stake for RM322 mil in: • Global Transit Communications (“GTC”) • Global Transit Limited (“GTL”) • Global Transit Entities • AIMS Group Proposed Capital Restructuring Proposed Exemptions fro
Slide 5: All Resolutions were approved by shareholders
All Resolutions were approved by shareholders on 22 November 2011 5
Slide 6: Data centric fixed line telco
We are: Data centric fixed line telco business and infra mainly in Malaysia >90% of our revenues come from Wholesale and Large Corporations Just under 5% Fixed-line Market Share 6
Slide 7: Proposed Acquisitions will create a platform for growth in the regional telecommunications industry
Proposed Acquisitions will create a platform for growth in the regional telecommunications industry by: Entering the International Submarine cable business Expansion of business into the region Entering into the high growth data centre and managed services business Producing a more complete range of
Slide 8: AIMS = Data Warehouse + Data Airport
AIMS = Data Warehouse + Data Airport Airline Booking Search Mobile Number Internet TV Malaysian Telcos Websites Engines Portability Provider Internet Exchange (MyIX) Companies use AIMS to: Customers pay AIMS for: 1. Connect to each other 1. Co-location (Rental income, space based) 2. Connect to the
Slide 9: Performance Trend: AIMS Group
Performance Trend: AIMS Group Revenue CAGR: 31% RM’ mil Note: Above financials are aggregated. 9
Slide 10: GTC = Data Travel Agent
GTC = Data Travel Agent (presence in Singapore, HK, USA) USA JAPAN HONG KONG THAILAND SINGAPORE Companies (mostly telcos) use Income for GTC comes from: GTC: 1. Wholesale internet access 1. To access GTC’s high quality wholesale internet 2. International bandwidth solutioning access network 3. Manag
Slide 11: Performance Trend: GTC
Performance Trend: GTC Revenue CAGR: 89% RM’ mil 11
Slide 12: GTL = Data Super Tunnel
GTL = Data Super Tunnel JAPAN USA Companies (mostly telcos) come What do they pay GTL for? to GTL because: Bandwidth across the Pacific in USD- 1. They want high capacity per-Megabit-per-month (paying for bandwidth across the pacific bandwidth) 2. GTL is neutral and does not compete with them in the
Slide 13: Performance Trend: GTL
Performance Trend: GTL RM’ mil 13
Slide 14: Proposed Acquisitions
Proposed Acquisitions Proposed Acquisition 100% equity stake in:
Slide 15: The Combined Entity
The Combined Entity USA JAPAN HONG KONG Advantages for TdC 1. Offer a more complete range of services 2. Additional income streams Advantages for our customers 3. Grow our customer base beyond Malaysia 1. Customer familiarity with at least one of us 4. Participate in high growth data centre and mana
Slide 16: Part 2: Q3, 2011 Financial Results
Part 2: Q3, 2011 Financial Results 16
Slide 17: Performance Overview
Performance Overview 9 months 2011 YoY all around improvements in profit indicators on higher non global bandwidth sales, higher profit margins, and adjustments for previously recognised expenses. YTD Sept 2011 Revenues declined 2% on lower global bandwidth sales while Comparable Revenues improved 1
Slide 18: 3Q 2011 Performance
3Q 2011 Performance Var Var RM’ mil 3Q,11 3Q,10 2Q,11 YoY QoQ Revenue 77.0 87.3 (12%) 83.6 (8%) EBITDA 45.9 21.8 >100% 28.4 62% EBITDA Margin 60% 25% 35% 34% 26% Operating Profit 32.0 10.0 >100% 15.1 >100% Operating Profit Margin 42% 11% 31% 18% 24% PBT 41.9 20.9 >100% 28.6 47% PBT Margin 54% 24% 30
Slide 19: 3Q 2011 Comparable Performance
3Q 2011 Comparable Performance Adjusted to exclude one-off adjustment to expenses recognized previously, project revenues discontinued in 2010, dividend income and Global Bandwidth Revenues. Growth Growth RM’ mil 3Q,11 3Q,10 2Q,11 YoY QoQ Revenue 77.0 66.0 17% 74.5 3% EBITDA 26.2 15.0 74% 22.2 18% E
Slide 20: YTD Sept 2011 Performance
YTD SEPT 2011 Performance RM’ mil YTD Sept,11 YTD Sept,10 Var YoY Revenue 230.7 235.6 (2%) EBITDA 96.9 62.8 54% EBITDA Margin 42% 27% 15% Operating Profit 56.6 25.2 >100% Operating Profit Margin 25% 11% 14% PBT 93.4 62.7 49% PBT Margin 40% 27% 13% November, 2011 20
Slide 21: YTD Sept 2011 Comparable Performance
YTD Sept 2011 Comparable Performance Adjusted to exclude one-off adjustment to expenses recognized previously, project revenues discontinued in 2010, dividend income and Global Bandwidth Revenues. RM’ mil YTD Sept,11 YTD Sept,10 Growth YoY Revenue 221.5 198.3 12% EBITDA 70.9 48.8 45% EBITDA Margin 3
Slide 22: Data
Comparable Revenue + 23% yoy Excluding Global Bandwidth Revenues By Products + 5% qoq Data + 15% Quarter Trend RM’ million YTD Trend RM’ million November, 2011 22
Slide 23: Voice
Comparable Revenue By Products +3% yoy Voice -2% qoq -2% yoy Quarter Trend RM’ million YTD Trend RM’ million November, 2011 23
Slide 24: Revenue by Segment Performance
REVENUE BY Segment Performance Q3, 2011 YTD Sep 2011 YoY YoY Wholesale* +21% +12% Corporate & +14% +9% Government SME & Consumer +10% +5% * Note: Wholesale revenues adjusted to exclude global bandwidth sales. August 24, 2011 24
Slide 25: Corporate Updates
Corporate Updates Corporate Exercise in relation to the Proposed Acquisitions, Proposed Capital Repayment and Proposed Capital Restructuring • Shareholders approved the Corporate Exercises at the EGM on 22 Nov 2011. • Expected completion of the proposals by February 2012. • Financing for the Corpora
Slide 26: Part 3: Forward Plans
Part 3: Forward Plans 26
Slide 27: 2012 Focus
2012 Focus Acquisitions: • Completion • Integration - network, products, sales approach Organic: • Complete deployment of ASTRO buildings • Selective coverage expansion • Focus on wholesale lease business • Explore value added services 27
Slide 28: Forward Expectations
Forward Expectations • Sustain EBITDA margins within current range • Continued wholesale and corporate growth • ASTRO to contribute in top line more meaningfully in 2012 but bottom line contribution towards 2013 • Consolidation of acquiree companies to contribute for EPS accretion in medium term 28
Slide 29: Thank You
Thank You Should you have any queries, please contact:: Karen Ding Head of Planning & Investor Relations 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 ww