TIME dotCom Bhd. · MYX:TIMECOM
TIME dotCom Bhd — Shareholder Meeting (June 2019)
34 slides from TIME dotCom Bhd's shareholder meeting presentation, Jun 14, 2019
Slide 1: 22nd Annual General Meeting
22"? ANNUAL GENERAL MEETING T INAS
Slide 2: FY2018 at a Glance
FY2018 AT A GLANCE Fastest Broadband in Malaysia Strong segment growth Launched refreshed TIME Fibre Strong YoY growth across all core Home Broadband plans in Q4 2018 customer groups – Retail, Wholesale and that introduced 1Gbps speeds to Enterprise grew 61%, 13% and 10% Malaysia. respectively. Data
Slide 3: Business Pillars
BUSINESS PILLARS TIME dotCom Berhad Fixed Line Global Networks 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 data
Slide 4: Business Review
BUSINESS REVIEW 3 Tiit=
Slide 5: Fixed Line
FIXED LINE • Launched refreshed TIME Fibre Home Broadband plans in Q4 2018 where all existing subscribers were automatically upgraded without contract extensions. • Continued to provide the fastest and most competitively priced fibre home broadband service in Malaysia. • Recognised as Fastest Fixed
Slide 6: Global Networks
GLOBAL NETWORKS • Ability to link Europe, Africa and Asia all the way to the US Western seaboard via AAE-1, UNITY, FASTER and APG submarine cable systems. FASTER ASIA PACIFIC GATEWAY (APG) • Generated stronger revenues in UNITY FY2018 despite intense competition and continued pressure from reducing
Slide 7: Data Centre
DATA CENTRE 18% YoY revenue growth supported by contributions from several large Over-The-Top (OTT) 1 content providers. Expanded net lettable data centre space by 10,860 sq. ft. Total net lettable data centre space 2 available as at 31 December 2018 is as follows: DATA CENTRE LOCATION (Net Lettable
Slide 8: ASEAN
ASEAN RM’million VIETNAM THAILAND YTD DEC 2018 45.27% 46.84% 49.00% As reported by Revenue 243.5 167.4 16.6 investee Profit/(Loss) After Tax 19.0 8.1 (3.1) TIME’s shares in Share of Profit/(Loss) proportion to its on Investment of 8.6 4.0N1 (0.8)N2 interest Associates Total Share of Profit on Invest
Slide 9: Financial Review
FINANCIAL REVIEW 8 Tiit=
Slide 10: 2018 Performance Summary
2018 PERFORMANCE SUMMARY FY2018 FY2018 FY2017 RM’million YoY Variance N1 MFRS 15 Pre-MFRS 15 Pre-MFRS 15 Revenue 983.4 1,017.4 860.7 ! 18% EBITDA 427.4 442.1 297.2 ! 49% N2 Adjusted EBITDA 419.8 434.5 318.6 ! 36% PBT 304.8 325.6 193.1 ! 69% N2 Adjusted PBT 297.2 318.0 214.5 ! 48% Note: 1) YoY varian
Slide 11: Revenue: Overall
REVENUE: OVERALL Data, Data Centre, Voice and Others One-off Global Bandwidth and non-recurring contracts MFRS 15 Adjustments CR: Core Revenue Note: Numbers are in RM’millions 10
Slide 12: Revenue: By Product
REVENUE: BY PRODUCT DATA DATA CENTRE VOICE YoY +22%, CR +24% YoY +18%, CR +14% YoY -11% Data, Data Centre, Voice and Others One-off Global Bandwidth and non-recurring contracts MFRS 15 Adjustments CR: Core Revenue Note: Numbers are in RM’millions 11
Slide 13: Revenue: By Customer Group
REVENUE: BY CUSTOMER GROUP WHOLESALE ENTERPRISE RETAIL YoY 13%, CR 16% YoY +10% YoY +61% Data, Data Centre, Voice and Others One-off Global Bandwidth and non-recurring contracts MFRS 15 Adjustments CR: Core Revenue 12
Slide 14: Capital Expenditure
CAPITAL EXPENDITURE Breakdown of Telco Assets Acquired • 77% of total FY2018 capital expenditure was spent on telco assets with the main purpose to expand domestic network coverage and to upgrade TIME’s existing network infrastructure • RM62.0m or 29% of capital expenditure on telco assets was spent
Slide 15: Growth Strategies
BE GROWTH STRATEGIES 4 Tiit=
Slide 16: FY2019 and Beyond
FY2019 AND BEYOND Leverage on Extend domestic FASTER, UNITY, reach to new APG and AAE-1 territories in subsea cable Peninsular Malaysia systems to boost and East Malaysia non-Malaysian revenue To further develop Enhance network our position as a data presence and centre leader in improve customer Ma
Slide 17: MSWG Q&A: Strategy & Financial Matters
MSGW Q&A Strategy & Financial Matters 16
Slide 18: Question 1
QUESTION 1 As stated in the Chairman’s Statement on page 4 of the Annual Report 2018 (“AR 2018”), you have established an operating presence in both Cambodia and Japan. Furthermore, RM62 million was spent in financial year end (“FY2018”) to expand your regional network in Cambodia and Singapore (pag
Slide 19: Question 1
QUESTION 1 The investment in TIME dotCom Japan K.K. (“TIME Japan”), amounting to Yen100,000 or approximately RM3,700, was to ensure compliance with local Japanese regulatory requirements, i.e. to establish a licensed telecommunications company to be able to serve connectivity requirements for traffi
Slide 20: Question 1
QUESTION 1 b) What is the expected percentage of revenue contribution from Cambodia and Japan for the next 3 years? It is not a policy for the Group to provide specific revenue guidance to investors. However, as mentioned in Note 1(a) above, contributions from TIME Japan are not likely to be signifi
Slide 21: Question 2
QUESTION 2 Global bandwidth rates continued to come under pressure in FY2018 (page 7 of AR2018), does the Company expect further compression to global bandwidth rates in 2019 and going forward? Year-on-year price erosion within the telecommunications industry is normal and arises primarily due to co
Slide 22: Question 3
QUESTION 3 On page 8 of the AR2018, we note the Group seeks to replicate its success in Malaysia across other markets in ASEAN. What is the Company’s targets in relation to expansion in ASEAN? As mentioned in Note 1(b) above, the Group does not provide such specific revenue guidance to the investmen
Slide 23: Question 4
QUESTION 4 We note that there was an allowance for impairment losses on amount due from an associate amounting to RM7.2 million (2017:Nil) (Note 19, page 137 of AR2018) a) What is the nature of this debt? The impairment of RM7.2 million was made for advances provided to KIRZ Co., Ltd and KIRZ Holdin
Slide 24: Question 4
QUESTION 4 b) Is the amount recoverable? If so, what actions have been taken to recover the said amount? The Group had assessed the recoverability of the advances made and determined that based on KIRZ’s financial projections and outlook, the companies were not likely to generate sufficient cash flo
Slide 25: Question 5
QUESTION 5 Given the intense competition in the telecommunication sector amidst an increasingly mature market, what is the potential impact to the Company’s domestic “Fixed Line” business in the event, Tenaga Nasional Bhd’s (“TNB”) National Fiberisation and Connectivity Plan (NFCP) pilot project bec
Slide 26: MSWG Q&A: Corporate Governance Matters
MSGW Q&A Corporate Governance Matters 25
Slide 27: Question 1
QUESTION 1 We note the explanation provided by the Company on page 25 of the CG Report that the Independent Directors, together with the NRC, will ensure salaries of top 5 Senior Management are in line with market practices and the Company is not adopting Practice 7.2. However, please take note that
Slide 28: Question 1
QUESTION 1 The Board is of the opinion that the disclosure of the top five Senior Management’s remuneration, on an individual basis, is not in the best interest of the Company given the highly competitive industry the Company operates in. The Board is also mindful of the internal sensitivities such
Slide 29: 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 30: 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 29
Slide 31: You Get the Rocket, We Do the Science
YOU GET THE ROCKET WE DO THE SCIENCE
Slide 32: Appendix: MFRS 15
WS APPENDIX MFRS 15 Tiit=
Slide 33: MFRS 15 – Revenue from Contracts with Customers (Summarised)
MFRS 15 – REVENUE FROM CONTRACTS WITH CUSTOMERS (SUMMARISED) • MFRS 15 became effective with effect from 1 January 2018 • Under the previous revenue standard, i.e. MFRS 118, revenue was recognised upon delivery of products or when services were rendered and when risk and rewards had passed • Under t
Slide 34: MFRS 15 – FY2018 Impact to TIME (Summarised)
MFRS 15 – FY2018 IMPACT TO TIME (SUMMARISED) FY2018 Description of Impact Profit/(Loss) RM’million 1) Revenue If the performance obligation is not satisfied, any upfront collection received will be recognised as (34.0) a contract liability in Trade and Other Payables in our Statement of Financial Po