Telekom Malaysia Bhd. · MYX:TM

Telekom Malaysia Bhd — FY2009 Earnings Presentation

24 slides from Telekom Malaysia Bhd's earnings presentation, Feb 22, 2010

  1. Slide 1: 4Q & FY 2009 Results (TM Group – continuing operations only)

    4Q & FY 2009 RESULTS (TM Group – continuing operations only)* 22 February 2010 * Results of TM Group post demerger

  2. Slide 2: Overview 2009

    Overview 2009  Economy improved better than expected reflected through quarterly GDP  Broadband industry grow rapidly, penetration rate up from 21.1% to 31.7% in Dec 2009  More player in broadband space heats up competition but good for consumers  Non-voice has surpassed Voice as major revenue 

  3. Slide 3: Key 4Q 2009 Highlights

    TM Group – continuing operations only OPERATING REVENUE Key 4Q 2009 Highlights RM mn QoQ 2,273 YoY 8,675 8,608 46 235 94 2,109 2,129 2,227 8,440 8,514 2,101 Revenue up 8.2% QoQ due to higher 3Q09 4Q09 MERS999 revenue FY 08 FY 09 contribution from Non-Voice product YoY 9.3% and services 16.0% 8.8% 0.

  4. Slide 4: Performance Highlights

    TM Group – continuing operations only Performance Highlights Challenging environment to sustain voice revenue pushed efforts to better manage cost resulting in better EBITDA achievement Reported RMmn Growth Growth Growth FY09 4Q09 4Q08 3Q09 FY 09 FY 08 YoY QoQ vs FY08 Revenue 2,272.6 2,497.8 -9.0% 2

  5. Slide 5: Total Revenue by Line of Business

    TM Group – continuing operations only Encouraging growth from Wholesale & Global but Retail remains Total Revenue by Line Of Business the significant contributor RM mn -0.8% FY 09 10000 Others 8,608 Wholesale 8 ,675 3% 251 277 9% 8000 690 786 835 885 Others Global 6000 10% Wholesale 4000 Global 6,89

  6. Slide 6: Total Revenue by Product

    TM Group – continuing operations only Total Revenue by Product Continue to see strong demand for Data & Internet services RM mn -0.8% FY 09 10,000 8,675 8,608 8,000 1,476* 1,481* Others 1,477 17% 6,000 1,607 Others 1,309 Internet Voice 1,519 46% 4,000 Internet Data 19% Voice 2,000 4,412 4,001 Data 1

  7. Slide 7: Physical Highlights

    TM Group – continuing operations only PHYSICAL HIGHLIGHTS Super Upgrade Deals promotion and increasing Hotspot zones are among our efforts to grow broadband customers Broadband* Customers Growth Hotspot Zones +11.8% +62.9% In thousand +2.4% 2500 +53.3% 2,000 2,069 2000 1,500 1,398 1,431 724 1,280 1,

  8. Slide 8: Cost % of Revenue

    TM Group – continuing operations only Proactive efforts to manage cost & capital result in Cost % of Revenue Cost % Of Revenuesignificant improvement in most cost ratios RM mn RM8,035.4 RM7,709.4 RM2,228.4 RM1,908.9 RM2,065.4 92.6% 89.6% 89.2% 90.9% 90.9% 2.3 0.5 4.3 1.9 2.0 4.2 2.8 3.6 6.2 4.9 3.7

  9. Slide 9: Group Capital Expenditure

    TM Group – continuing operations only Prioritization of projects execution results in optimum GROUP CAPITAL EXPENDITURE BAU & HSBB Capex spend BAU Capex RM mn RM mn 500 2000 409 400 380 1,448 86 1500 302 1,211 300 122 282 274 51 Support System 1 227 218 50 155 1000 55 68 437 Core Network 200 40 387

  10. Slide 10: Group Balance Sheet & Key Financial Ratios

    TM Group – continuing operations only Strong balance sheet position resulting from effective Group Balance Sheet & Key Financial Ratios management of invested capital & debt As at 31 Dec 2009 As at 31 Dec 2008 RM Million Payment from Axiata of RM4.025bn Shareholders’ Funds 6,987.5 10,248.1 Net proce

  11. Slide 11: Key Takeaways

    TM Group – continuing operations only Key Takeaways Revenue Improvements Balance Sheet Management • Effective accounts tracking & lower AR days improved cash • Non-voice contributed 54% of revenue with Retail segment collection from operations continue to be the main contributor • US$75mn bond buyba

  12. Slide 12: Outlook 2010

    Outlook 2010  Exciting phase with triple offering  BAU Capex over revenue not exceeding RM1.4bn  Aggressive efforts to arrest Voice decline  Internet & Data continue to be key drivers for growth  Dividend Policy unchanged  Key KPI 2010 2012 Revenue growth 2.0 3.0 – 3.5 (%) EBITDA Margin (%) 33

  13. Slide 13: Thank You

    Thank You

  14. Slide 14: Appendix

    Appendix

  15. Slide 15: Retail: Total Revenue by Products

    TM Group – continuing operations only Total Revenue RETAIL By Products Revenue by Product Revenue by Business Unit RM mn -3.5% FY 09 7,500 6,899 6,660 1,173 1,194 6,000 Government 17% 1,477 Consumer 4,500 1,598 Others 35% 694 Internet 735 3,000 Data Enterprise 22% Voice 3,581 3,212 SME 1,500 26% 0 F

  16. Slide 16: Wholesale

    TM Group – continuing operations only Wholesale Revenue by Product Revenue by Customer Segment RM mn +13.9% FY 09 1000 786 690 67 800 ASP 63 19% 600 Others 498 393 Data 400 Voice DC 81% 200 309 327 0 FY08 FY09 RM mn +7.8% FY 08 +9.6% 300 228 250 22 193 ASP 179 189 19% 176 19 200 17 12 14 Others 139

  17. Slide 17: Global: Sustain voice & grow data revenue

    TM Group – continuing operations only GLOBAL Sustain voice & grow data revenue Revenue by Product Revenue by Region RM mn +6.0% 1200 FY 09 885 Others Africa & 1000 835 23 11% Middle East 15 Oceania 8% 800 America 372 462 6% 14% Others 600 Data North Asia 400 12% Europe Voice 524 7% 200 469 0 South A

  18. Slide 18: Cost % of Revenue

    Cost % Of Revenue 4Q 2009 3Q 2009 4Q 2008 FY09 FY08 Revenue (RM mil) 2,272.6 2,101.0 2,497.8 8,608.0 8,674.9 Direct Costs % 19.9 23.9 21.8 21.0 21.7 RM mil. 451.2 502.6 545.3 1,809.5 1,879.9 Manpower % 17.0 18.8 13.5 18.1 17.6 RM mil. 387.3 395.3 337.4 1,554.7 1,527.8 Supplies & Materials % 6.8 4.1

  19. Slide 19: Normalised EBITDA

    TM Group – continuing operations only Normalised EBITDA In RMmn 1Q09 2Q09 3Q09 4Q09 4Q08 FY 09 FY 08 Reported EBITDA 816.2 824.1 705.0 757.7 822.0 3,102.9 2,917.0 Non Operational ESOS Cost 4.5 7.4 9.3 (9.9) (28.9) 11.3 81.6 (Appreciation)/ Diminution in value of (6.2) (20.4) (9.8) (19.7) 7.4 (56.3)

  20. Slide 20: Normalised PATAMI

    TM Group – continuing operations only Normalised PATAMI In RM mn 1Q09 2Q09 3Q09 4Q09 4Q08 FY 09 FY 08 Reported PATAMI 27.7 266.0 179.1 170.2 166.0 643.0 229.3 Non Operational ESOS Cost 4.5 7.4 9.3 (9.9) (28.9) 11.3 81.6 (Appreciation)/ Diminution in value of (6.2) (20.4) (9.8) (19.7) 7.4 (56.3) 84.8

  21. Slide 21: TM – Voice Promotions

    TM – Voice Promotions Business Let’s Talk 10 Residential 21

  22. Slide 22: TM – Broadband Promotions

    TM - Broadband Promotions Business Residential 22

  23. Slide 23: 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

  24. Slide 24: The End

    THE END Any queries please email to : investor@tm.com.my •Investor Relations• Level 11 (North Wing)• Menara TM •Jln Pantai Bharu •50672 Kuala Lumpur, Malaysia • Tel (603) 2240 4848/ 7366 / 7388

Telekom Malaysia Berhad — FY2009 Earnings Presentation on 6ix