Telekom Malaysia Bhd. · MYX:TM

Telekom Malaysia Bhd — Conference Presentation (March 2017)

32 slides from Telekom Malaysia Bhd's conference presentation, Mar 29, 2017

  1. Slide 1: Telekom Malaysia Berhad

    TELEKOM MALAYSIA BERHAD

  2. Slide 2: TM Today, Latest Updates, About TM

    TM Today Latest Updates About TM 2

  3. Slide 3: At the leading edge of telecommunications in Malaysia

    at the leading edge of telecommunications in Malaysia FULL-IP DIGITAL TECHNOLOGY TRANSFORMATION ANALOG ERA 3

  4. Slide 4: TM Today: Malaysia's Convergence Champion

    TM TODAY*… MALAYSIA’S CONVERGENCE CHAMPION No.1 Broadband provider in Malaysia 2.37mn broadband customers More than 2.23mn HSBB fiber ports RM12.06bn revenue as at FY2016, with 2.9% growth 373.43% Total Shareholder Return since demerger Commercial launch of webe mobile service in Sept 2016 • As at 3

  5. Slide 5: Latest Updates

    Latest Updates TM 30th AGM 30 April 2015

  6. Slide 6: Realigning our strategy: refreshed Vision Statement

    Realigning our strategy: A refreshed Vision Statement aligned toward Delivering Convergence and Life/Business Made Easier Our Vision Our Brand Values Refocused PIP3.0 Our Guiding Values & Principles 6

  7. Slide 7: Our digital transformation supported by Convergence

    Our digital transformation supported by Convergence 7

  8. Slide 8: Delivering Convergence and Going Digital

    Delivering Convergence and Going Digital for Smarter Living, Smarter Businesses, Smarter Cities, Smarter Communities and a Smarter Nation 8

  9. Slide 9: Go Digital

    WE ARE STRATEGICALLY PLACED TO REALISE OUR CONVERGENCE AND GOING DIGITAL ASPIRATIONS AS WE MOVE BEYOND CONNECTIVITY DELIVER 1 2 3 4 5 Smarter Smarter Smarter Smarter Smarter Living Businesses Cities Communities Nation & GO DIGITAL B2B B2B2C 9

  10. Slide 10: webe: TM's Mobility Centre of Excellence

    webe: TM’s Mobility Centre of Excellence • webe’s network made commercially available to the public from 30th September 2016 • To date more than 2,000 sites operational • Drive momentum toward Convergence by expanding product portfolios and digital services 10

  11. Slide 11: Broadband Improvement Plan 2017

    Broadband Improvement Plan 2017 Implementation of speed upgrade and introduction of new packages for non-Unifi customers in phases over 2017 11

  12. Slide 12: HSBB and SUBB Project

    HSBB and SUBB Project • Target: 390,000 ports by end-2017 HSBB 2 • More than 280,000 ports covering 86 exchange areas delivered to date • Target: 420,000 ports by end-2019 SUBB • More than 210,000 ports covering 152 exchange areas delivered to date KANGAR ◘ © ALOR STAR ◘ ◘© KOTA BHARU ◘ ◘ ◘ KOTA KIN

  13. Slide 13: About TM and Performance Highlights

    About TM and Performance Highlights TM 31st AGM 28 April 2016

  14. Slide 14: About TM: Credit Rating, Capital Structure, TSR

    About TM.. Credit Rating Capital Structure Moody’s • A3 • Authorised Capital: RM3,528,003,015.00 • Issued and Paid-up Capital: RM2,630,554,376.00 S&P • A- • Date of Incorporation: 12 October 1984 • Date of Listing: 7 November 1990 RAM • AAA Total Return To Shareholders 26% FBMKLCI1 81.85% 35% TM1 37

  15. Slide 15: Key FY2016 Highlights

    Key FY2016 Highlights Revenue +2.9% RM mn +1.7% +10.7% 11,722 12,061 Revenue 3,184 2,923 3,237 4Q15 3Q16 4Q16 FY2015 FY2016 EBIT RM mn -8.2% (Normalised -4.4%) +10.3% (Normalised -14.1%) -6.9% (Normalised -3.29%) 1,257 1,240 Reported EBIT 1,154 1,185 Normalised EBIT 259 350 307 310 286 300 4Q15 3Q16

  16. Slide 16: Group Total Revenue by Product

    Group Total Revenue by Product FY 2015 Voice Data RM mn RM mn -2.6% -5.0% -1.2% +2.8% +7.0% +10.4% Others* Voice 3,507 22% 3,330 2,745 28% 2,670 Data 23% Internet 27% 880 801 857 741 662 732 4Q15 3Q16 4Q16 FY2015 FY2016 4Q15 3Q16 4Q16 FY2015 FY2016 RM11,722mn Internet Others* FY 2016 RM mn RM mn +10

  17. Slide 17: Group Total Revenue by Customer Clusters

    Group Total Revenue by Customer Clusters Mass Market Managed Accounts FY 2015 RM mn RM mn Others +2.7% +1.5% 4% +3.2% +2.5% +3.6% +10.0% Global & Wholesale 16% Mass Market 42% Managed 4,373 4,484 Accounts 4,950 5,106 37% 1,275 1,264 1,309 1,187 1,095 1,205 RM11,722mn 4Q 15 3Q 16 4Q 16 FY2015 FY2016

  18. Slide 18: Customers: Broadband and UniFi

    Physical Highlights Stronger UniFi net adds and ARPU Broadband 197 201 192 192 194 190 190 190 ARPU (RM) 90 92 89 86 87 89 89 89 +1.3% 0.0% 2,266 2,288 2,294 2,340 2,364 2,365 2,369 2,370  UniFi customer base expanded to over 949,000 customers 757 782 793 839 877 900 921 949  ARPU growth due to up

  19. Slide 19: FY 2016 CAPEX & OPEX

    FY 2016 CAPEX & OPEX Cost % of Revenue1 Group Capital Expenditure RM mn RM mn 2,616.9 2,795.9 2,644.1 2,980.4 10,588.2 11,037.3 90.3% 90.9% 89.6% 91.2% 89.4% 90.5% 11.1% 20.4% 24.5% 51.3% 21.4% 27.5% 318 620 715 1,662 2,505 3,315 1.0% 0.6% 0.4% 0.3% 3.5% 1.4% 3.3% 4.1% 3.7% 3.3% 3.6% 6.0% 6.7% 6.6%

  20. Slide 20: Group Cash Flow

    Group Cash Flow RM mn FY 2016 FY 2015 Cash & cash equivalent at start 3,510.8 2,975.0 Cashflows from operating activities 2,848.6 2,942.0 Cashflows used-in investing activities (3,259.5) (2,549.9) Capex 3,314.5 2,505.5 Cashflows from financing activities (206.8) 142.5 Effect of exchange rate changes

  21. Slide 21: Group Balance Sheet

    Group Balance Sheet As at As at RM million 31 Dec 2016 31 Dec 2015 Shareholders’ Funds 7,692.3 7,780.6 Non-Controlling Interests 140.2 258.1 Deferred & Long Term Liabilities 11,194.4 10,551.8 Long Term Borrowings 7,662.6 7,175.4 Derivative financial instruments 301.9 321.9 Deferred tax liabilities 1

  22. Slide 22: Headline KPI

    Headline KPI 2017 Mid Term Revenue Growth1 3.5 – 4% 3.5% - 4% Maintain 2016 EBIT Growth1 3.5 – 4% RM level Customer Satisfaction 73* 73 Measure2 1 These KPIs are for TM including Webe. 2 This KPI excludes Webe for 2017. 2 Using TRiM index measuring end to end customer experience at all touch points.

  23. Slide 23: Appendix

    Appendix 23

  24. Slide 24: Group Results: 3-Year Performance

    Group Results: 3-Year Performance Revenue EBIT RM mn RM mn +4.3% +2.9% -2.9% (Normalised -10.6%) -8.2% (Normalised -4.4%) 12,061 1,387 1,294 1,257 1,240 1,185 11,722 1,154 11,235 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 Revenue EBIT Normalised EBIT EBITDA PATAMI RM mn RM mn +1.6% (Normalised -1.3%)

  25. Slide 25: 3-Year Performance: Revenue by product

    3-Year Performance: Revenue by product Internet Data Voice Others* RM mn RM mn RM mn RM mn +12.4% +8.9% +2.5% +2.8% +1.1% -5.1% +0.6% +6.4% 3,367 3,668 2,745 2,317 2,995 3,469 3,507 2,670 2,606 3,330 2,165 2,178 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 *”Ot

  26. Slide 26: 3-Year Performance: Capex & Opex

    3-Year Performance: Capex Capex & Opex: 3-Year & Opex Performance Total Capex Cost % of Revenue1 RM mn RM mn 1,836 2,506 3,315 10,095.1 10,588.2 11.037.3 16.3% 21.4% 27.5% 88.6% 89.4% 90.5% 0.3% 2.0% 1.4% 3.6% 670 3.2% 3.3% 7.2% 6.9% 7.4% 6.0% 7.4% 6.6% 11.3% Bad debt 533 10.0% 11.0% Marketing Expen

  27. Slide 27: 3-Year Performance: Physical Highlights

    3-Year Performance: Physical Highlights Broadband +4.9% +1.3% In thousand 2,340 2,370 2,231 729 839 949 1,502 1,501 1,421 FY2014 FY2015 FY2016 Streamyx UniFi Evolving UniFi customer mix: more on 10Mbps or higher FY2013 FY2016 12% 21% 88% Below 10Mbps 79% 10Mbps and above 27

  28. Slide 28: webe mobile and webe broadband plans

    webe mobile and webe broadband plans 28

  29. Slide 29: Reiteration of Dividend Policy

    Reiteration of Dividend Policy Telekom Malaysia Berhad ("the Company" or "TM") issues a statement to reiterate its stand on the Company's dividend policy. The Company’s dividend policy as announced at the time of the demerger between TM and TM International Berhad (TMI) remains valid. The policy sta

  30. Slide 30: Shareholder Returns (2009-2015)

    Shareholder Returns (2009-2015) Dividend Payout Policy of RM700mn or up to 90.0% of Payout Normalised PATAMI whichever is higher Ratio3 (%) 150.9% 124.2% 110.5% 89.9% 90.5% 88.9% 95.3% 79.6% Net 6.5% Dividend 5.6% Yield2 (%) 4.7% 4.0% 3.6% 3.2% 3.3% 3.2% 1,037.4 1,073.2 1,038.5 RM mn 993.7 941.2 881

  31. Slide 31: TM Group Debt Profile and Key Financial Ratios

    TM Group Debt Profile TM Group Debt Maturity Profile as at 31 Dec 2016 JPY denominated RM denominated Debt Currency Mix RM mn USD denominated CDN denominated 1,644 1,200 925 850 912 756 800 681 584 Others USD 0.04% 20.11% 9 3 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2034 • Total debt as at

  32. Slide 32: Thank You

    THANK YOU Investor Relations Level 11 (South Wing), Menara TM Jalan Pantai Baharu 50672 Kuala Lumpur Malaysia Tel: (603) 2240 4848/ 7366 / 7388 investor@tm.com.my

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