Telekom Malaysia : Unaudited Consolidated Result for the 1st Quarter FY2025 Ended

About this update from Telekom Malaysia Bhd.

‌TELEKOM MALAYSIA BERHAD Reg. No.: 198401016183 (128740-P) (Incorporated in Malaysia) The Board of Directors of Telekom Malaysia Berhad is pleased to announce the following unaudited results of the Group for the financial period ended 31 March 2025. UNAUDITED CONSOLIDATED INCOME STATEMENT 1ST QUARTER ENDED FINANCIAL PERIOD ENDED 31/03/2025 31/03/2024 31/03/2025 31/03/2024 RM Million RM Million RM Million RM Million OPERATING REVENUE 2,851.5 2,837.0 2,851.5 2,837.0 OPERATING COSTS - depreciation, impairment and amortisation (538.9) (538.3) (538.9) (538.3) - net reversal of impairment/(impairment loss) on financial and contract assets 6.8 (2.7) 6.8 (2.7) - other operating costs (1,797.9) (1,671.6) (1,797.9) (1,671.6) OTHER OPERATING INCOME (net) 28.8 26.5 28.8 26.5 OPERATING PROFIT BEFORE OTHER GAINS AND FINANCE COST 550.3 650.9 550.3 650.9 OTHER GAINS (net) 2.5 0.5 2.5 0.5 OPERATING PROFIT BEFORE FINANCE COST 552.8 651.4 552.8 651.4 FINANCE INCOME 32.2 31.1 32.2 31.1 FINANCE COST (62.1) (79.0) (62.1) (79.0) FOREIGN EXCHANGE GAINS/(LOSSES) ON 10.5 (33.7) 10.5 (33.7) BORROWINGS NET FINANCE COST (19.4) (81.6) (19.4) (81.6) ASSOCIATE/JOINTLY CONTROLLED ENTITY - share of results (net of tax) 0.6 2.3 0.6 2.3 PROFIT BEFORE TAX AND ZAKAT 534.0 572.1 534.0 572.1 TAX AND ZAKAT (part B, note 5) (131.2) (144.3) (131.2) (144.3) PROFIT FOR THE FINANCIAL PERIOD 402.8 427.8 402.8 427.8 ATTRIBUTABLE TO: - equity holders of the Company 401.2 424.8 401.2 424.8 - non-controlling interests 1.6 3.0 1.6 3.0 PROFIT FOR THE FINANCIAL PERIOD 402.8 427.8 402.8 427.8 EARNINGS PER SHARE (sen) (part B, note 11) - basic 10.5 11.1 10.5 11.1 - diluted 10.5 11.1 10.5 11.1 (The above unaudited consolidated income statement should be read in conjunction with the audited financial statements for the financial year ended 31 December 2024) UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1ST QUARTER ENDED FINANCIAL PERIOD ENDED 31/03/2025 31/03/2024 31/03/2025 31/03/2024 RM Million RM Million RM Million RM Million PROFIT FOR THE FINANCIAL PERIOD 402.8 427.8 402.8 427.8 OTHER COMPREHENSIVE INCOME Items that may be reclassified subsequently to income statement: (decrease)/increase in fair value of investments at fair value through other comprehensive income (FVOCI) (0.1) 0.1 (0.1) 0.1 reclassification adjustments relating to FVOCI investments disposed 0.3 0.3 0.3 0.3 (decrease)/increase in fair value of receivables at FVOCI (0.1) 0.2 (0.1) 0.2 cash flow hedge: (decrease)/increase in fair value of cash flow hedge (1.8) 12.2 (1.8) 12.2 change in fair value of currency basis (2.4) (1.9) (2.4) (1.9) reclassification of foreign exchange gains/(losses) on borrowings 4.4 (12.6) 4.4 (12.6) currency translation differences - subsidiaries (2.2) 17.8 (2.2) 17.8 - associate # (0.2) # (0.2) Other comprehensive (loss)/income for the financial period (1.9) 15.9 (1.9) 15.9 TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD 400.9 443.7 400.9 443.7 ATTRIBUTABLE TO: equity holders of the Company 399.3 440.7 399.3 440.7 non-controlling interests 1.6 3.0 1.6 3.0 TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD 400.9 443.7 400.9 443.7 # Amount less than RM0.1 million (The above unaudited consolidated statement of comprehensive income should be read in conjunction with the audited financial statements for the financial year ended 31 December 2024) CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited) (Audited) AS AT AS AT 31/03/2025 RM Million 31/12/2024 RM Million SHARE CAPITAL 4,070.9 4,070.7 OTHER RESERVES 122.0 135.7 RETAINED PROFITS 5,596.1 5,893.3 TOTAL CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY NON-CONTROLLING INTERESTS 9,789.0 167.8 10,099.7 166.2 TOTAL EQUITY 9,956.8 10,265.9 Borrowings Lease liabilities Deferred tax liabilities Trade and other payables 1,883.5 1,377.5 936.9 132.6 2,109.9 1,441.5 920.9 139.0 NON-CURRENT LIABILITIES 4,330.5 4,611.3 14,287.3 14,877.2 Property, plant and equipment Intangible assets Right-of-use assets Associate and jointly controlled entity Equity investments at fair value through other comprehensive income (FVOCI) Investments at fair value through profit or loss (FVTPL) Receivables at FVOCI Other non-current receivables/assets Deferred tax assets 11,272.6 799.8 1,166.7 261.4 138.8 113.7 58.5 299.6 19.4 11,429.3 839.5 1,182.9 109.8 138.8 111.1 58.1 332.7 22.8 NON-CURRENT ASSETS 14,130.5 14,225.0 Inventories Trade and other receivables Contract assets Contract cost assets Receivables at FVOCI Investments at fair value through other comprehensive income (FVOCI) Investments at fair value through profit or loss (FVTPL) Financial assets at fair value through profit or loss (FVTPL) Derivative financial instruments Cash and bank balances 195.9 2,668.5 690.3 250.8 3.0 75.6 0.7 2.0 132.3 2,160.2 201.7 2,518.0 643.9 262.6 3.0 72.9 0.2 2.5 136.5 3,096.2 CURRENT ASSETS 6,179.3 6,937.5 Trade and other payables Contract liabilities Customer deposits Borrowings Lease liabilities Tax and zakat 2,778.9 1,190.4 90.2 1,592.6 259.1 111.3 3,270.4 1,231.8 96.5 1,381.0 258.4 47.2 CURRENT LIABILITIES 6,022.5 6,285.3 NET CURRENT ASSETS 156.8 652.2 14,287.3 14,877.2 NET ASSETS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANY (sen) 255.1 263.2 (The above unaudited consolidated statement of financial position should be read in conjunction with the audited financial statements for the financial year ended 31 December 2024) UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2025 Currency Translation Differences RM Million 28.8 - - - - - - - (2.2) # (2.2) - - - - - Non-controlling Interests RM Million 166.2 1.6 - - - - - - - - 1.6 - - - - - Attributable to equity holders of the Company Long Term Cost of Incentive Share FVOCI Hedging Hedging Plan Retained Total Capital Reserve Reserve Reserve Reserve Profits Equity RM Million RM Million RM Million RM Million RM Million RM Million RM Million At 1 January 2025 4,070.7 92.7 (1.3) 3.7 11.8 5,893.3 10,265.9 Profit for the financial period - - - - - 401.2 402.8 Items that may be reclassified subsequently to income statement: - decrease in fair value of investments at fair value through other comprehensive income (FVOCI) - (0.1) - - - - (0.1) - reclassification adjustments relating to FVOCI investments disposed - 0.3 - - - - 0.3 - decrease in fair value of receivables at FVOCI - (0.1) - - - - (0.1) - cash flow hedge: - decrease in fair value of cash flow hedge - - (1.8) - - - (1.8) - change in fair value of currency basis - - - (2.4) - - (2.4) - reclassification of foreign exchange gain on borrowings - - 4.4 - - - 4.4 - currency translation differences - subsidiaries - - - - - - (2.2) - associate - - - - - - # Total comprehensive income/(loss) for the financial period - 0.1 2.6 (2.4) - 401.2 400.9 Transactions with owners: - 2nd interim single-tier dividend paid for the financial year ended 31 December 2024 (part A, note 6) - - - - - (479.7) (479.7) - special single-tier dividend paid for the financial year ended 31 December 2024 (part A, note 6) - - - - - (230.3) (230.3) - Long Term Incentive Plan (LTIP): - transfer from LTIP reserve upon issuance of shares on vesting (part A, note 5(a))^ 0.2 - - - (0.2) - - - transfer from LTIP reserve* - - - - (11.6) 11.6 - Total transactions with owners 0.2 - - - (11.8) (698.4) (710.0) At 31 March 2025 4,070.9 92.8 1.3 1.3 - 26.6 5,596.1 167.8 9,956.8 # Amount less than RM0.1 million ^ Issuance of shares pursuant to the Group's LTIP RS. * Transfer from LTIP reserve to retained profits, as no further grants are being made under the existing LTIP scheme. (The above unaudited consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the financial year ended 31 December 2024) UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY At 1 January 2024 Profit for the financial period Items that may be reclassified subsequently to income statement: increase in fair value of investments at fair value through other comprehensive income (FVOCI) reclassification adjustments relating to FVOCI investments disposed increase in fair value of receivables at FVOCI cash flow hedge: increase in fair value of cash flow hedge change in fair value of currency basis reclassification of foreign exchange loss on borrowings currency translation differences subsidiaries associate Total comprehensive income/(loss) for the financial period Transactions with owners: 2nd interim single-tier dividend paid for the financial year ended 31 December 2023 final single-tier dividend paid for the financial year ended 31 December 2023 Total transactions with owners FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2024 - 0.6 (0.4) (1.9) - 17.6 424.8 3.0 443.7 At 31 March 2024 4,070.2 90.1 (8.9) 9.0 12.3 55.3 4,780.9 162.6 9,171.5 Attributable to equity holders of the Company Long Term Cost of Incentive Currency Non- Share FVOCI Hedging Hedging Plan Translation Retained controlling Total Capital Reserve Reserve Reserve Reserve Differences Profits Interests Equity RM Million RM Million RM Million RM Million RM Million RM Million RM Million RM Million RM Million 4,070.2 89.5 (8.5) 10.9 12.3 37.7 4,950.9 159.6 9,322.6 - - - - - - 424.8 3.0 427.8 - 0.1 - - - - - - 0.1 - 0.3 - - - - - - 0.3 - 0.2 - - - - - - 0.2 - - 12.2 - - - - - 12.2 - - - (1.9) - - - - (1.9) - - (12.6) - - - - - (12.6) - - - - - 17.8 - - 17.8 - - - - - (0.2) - - (0.2) - - - - - - (402.9) - (402.9) - - - - - - (191.9) - (191.9) - - - - - - (594.8) - (594.8) (The above unaudited consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the financial year ended 31 December 2024) UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS FINANCIAL PERIOD ENDED 31/03/2025 31/03/2024 RM Million RM Million Receipts from customers 2,540.0 2,367.2 Payments to suppliers and employees (2,316.4) (1,725.1) Payments to suppliers for short-term lease and leases of low-value assets (9.5) (5.1) Payments of finance cost (49.9) (58.5) Payments of income taxes and zakat (net) (51.2) (9.9) CASH FLOWS FROM OPERATING ACTIVITIES 113.0 568.6 Contribution from Government grant for purchase of property, plant and equipment 122.1 - Disposal of property, plant and equipment 0.5 2.3 Purchase of property, plant and equipment and intangible assets (208.6) (233.9) Investment in a jointly controlled entity (151.0) - Disposal/Maturity of current investments at fair value through other comprehensive income 8.0 7.2 Purchase of current investments at fair value through other comprehensive income (10.4) (8.5) Purchase of investments at fair value through profit or loss (0.4) (0.4) Long term deposits (8.3) (8.3) Deposit with maturity exceeding 3 months 0.3 0.8 Repayments of loans by employees 4.7 4.0 Loans to employees (4.9) (6.6) Interest/Profit received 30.0 25.9 CASH FLOWS USED IN INVESTING ACTIVITIES (218.0) (217.5) Repayments of borrowings - (300.0) Repayments of lease liabilities (134.1) (132.6) Dividend paid to shareholders (part A, note 6) (710.0) (402.9) CASH FLOWS USED IN FINANCING ACTIVITIES (844.1) (835.5) NET DECREASE IN CASH AND CASH EQUIVALENTS (949.1) (484.4) EFFECT OF EXCHANGE RATE CHANGES 8.2 22.4 CASH AND CASH EQUIVALENTS AT BEGINNING OF THE FINANCIAL PERIOD 2,973.1 2,697.9 CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL PERIOD 2,032.2 2,235.9 (The above unaudited consolidated statement of cash flows should be read in conjunction with the audited financial statements for the financial year ended 31 December 2024) ‌Basis of Preparation The unaudited interim financial statements for the 1st quarter and financial period ended 31 March 2025 of the Group have been prepared in accordance with Malaysian Financial Reporting Standards (MFRS Accounting Standards) 134 "Interim Financial Reporting" issued by Malaysian Accounting Standards Board (MASB), paragraph 9.22 and Appendix 9B of the Bursa Malaysia Securities Berhad Main Market Listing Requirements, and should be read in conjunction with the Group's audited financial statements for the financial year ended 31 December 2024. The accounting policies, method of computation and basis of consolidation applied in the unaudited interim financial statements are consistent with those used in the preparation of the 2024 audited financial statements, except for the changes arising from the adoption of the amendments to MFRS Accounting Standards issued by MASB that are effective for the Group's financial year beginning on 1 January 2025. The amendments to published standards that are effective and applicable for the Group's financial year beginning on 1 January 2025 The amendments to published standards issued by MASB that are effective and applicable for the Group's financial year beginning on 1 January 2025 are as follows: Amendments to MFRS 121 Lack of Exchangeability The adoption of the above applicable amendments to published standards has not led to any material impact on the Group's financial result, position or disclosure for the current or previous periods, nor any of the Group's material accounting policies. New standards and amendments to published standards that have been issued but not yet effective and have not been adopted The new standards and amendments to published standards that have been issued but are not yet effective and have not been adopted early by the Group are as follows: Effective for annual periods beginning on or after 1 January 2026 Amendments to MFRS 9 and MFRS 7 Amendments to the Classification and Measurement of Financial Instruments Contracts Referencing Nature-dependent Electricity Basis of Preparation (continued) (b) New standards and amendments to published standards that have been issued but not yet effective and have not been adopted (continued) The new standards and amendments to published standards that have been issued but are not yet effective and have not been adopted early by the Group are as follows: Effective for annual periods beginning on or after 1 January 2026 (continued) Annual Improvements to MFRS Accounting Standards -Volume 11 Method) Amendments to MFRS 7 Financial Instruments: Disclosures (Gain or loss on derecognition) Amendments to MFRS 9 Financial Instruments (Derecognition of lease liabilities & Transaction price) Amendments to MFRS 10 Consolidated Financial Statements (Determination of a 'de facto agent') Amendments to MFRS 107 Statement of Cash Flows (Cost Effective for annual periods beginning on or after 1 January 2027 MFRS 18 Presentation and Disclosure in Financial Statements MFRS 19 Subsidiaries without Public Accountability: Disclosures Effective for annual periods to be announced by MASB Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The adoption of the applicable new standards and amendments to published standards is not expected to have a material impact on the financial statements of the Group. The Group is currently in the process of assessing the potential impact of MFRS 18 on related disclosures and notes to the Group's financial statements. Seasonal or Cyclical Factors The operations of the Group were not materially affected by any seasonal or cyclical factors. Unusual Items Affecting Assets, Liabilities, Equity, Net Income or Cash Flows There were no unusual items affecting assets, liabilities, equity, net income or cash flows due to their nature, size or incidence for the 1st quarter and financial period ended 31 March 2025. Material Changes in Estimates There were no material changes in estimates reported in the prior financial year that may have given rise to a material impact on the financials reported by the Group for the 1st quarter and financial period ended 31 March 2025. Issuances, Repurchases and Repayments of Debt and Equity Securities Long Term Incentive Plan (LTIP) During the current financial period, the Company issued 33,800 new ordinary shares amounting to RM0.2 million pursuant to the vesting of shares from the Restricted Shares and Performance Shares under the LTIP granted to employees as described in note 14 to the audited financial statements for the financial year ended 31 December 2024. The new ordinary shares were listed and allotted on the Main Market of Bursa Securities on 27 March 2025. There has been no further grant of new LTIP tranches during the current financial period. Dividends Paid The 2nd interim single-tier cash dividend of 12.5 sen per share amounting to RM479.7 million and a special single-tier dividend of 6.0 sen per share amounting to RM230.3 million in respect of the financial year ended 31 December 2024, were declared on 25 February 2025 and paid on 28 March 2025. Customer Segment Information Customer segment revenue information for the Group are as follows: 1st Quarter and Financial Period Ended 31/03/2025 31/03/2024 RM Million RM Million Business-to-Consumer (B2C) 1,386.4 1,396.2 Business-to-Business (B2B) 668.7 673.0 Carrier-to-Carrier (C2C) 760.9 742.8 Others/Shared Services 74.3 65.1 Inter-segment (38.8) (40.1) Total 2,851.5 2,837.0 Material Events Subsequent to the End of the Quarter There are no material events subsequent to the reporting date that require disclosure or adjustment to the unaudited interim financial statements. Effects of Changes in the Composition of the Group There are no changes in the composition of the Group for the 1st quarter and financial period ended 31 March 2025. Changes in Contingent Liabilities Since the Last Annual Balance Sheet Date There were no other material contingent liabilities since the audited financial statements of the Group for the financial period ended 31 March 2025. Capital Commitments Group As at 31/03/2025 As at 31/12/2024 RM Million RM Million (a) Property, plant and equipment: Commitments in respect of expenditures approved and contracted for (excluding commitments with approved Government grants) 1,969.3 2,249.3 (b) The Group's remaining capital commitment in a technology investment fund (disclosed as part of the Group's Non-current Investments at FVTPL) 11.5 11.6 Refer to note 41(b) to the audited financial statements of the Group for the financial year ended 31 December 2024. (c) The Group's remaining committed equity funding in a jointly controlled entity, ST Dynamo DC Sdn. Bhd. 434.9 585.9 Refer to note 41(d) to the audited financial statements of the Group for the financial year ended 31 December 2024. Related Party Transactions Khazanah Nasional Berhad (Khazanah) is a major shareholder with 20.10% equity interest as at 31 March 2025 and is a related party of the Group. Khazanah is a wholly-owned entity of MOF Inc, which is in turn owned by the Ministry of Finance, a ministry of the Federal Government of Malaysia. Therefore, the Government of Malaysia and bodies controlled or jointly controlled by the Government of Malaysia are also related parties to the Group. The individually significant transactions that the Group entered into with identified related parties and their corresponding balances for the provision of telecommunications-related services as of the respective reporting dates are as follows: Total amount of individually significant transactions for the financial period ended Corresponding outstanding balances as at 31/03/2025 31/03/2024 31/03/2025 31/12/2024 RM Million RM Million RM Million RM Million Sales and Receivables 185.0 178.4 99.2 53.9 The Group also has individually significant contracts with other Government-related entities where the Group was provided funding for projects of which the amortisation of grants to the income statement in the current financial period was RM7.3 million (YTD March 2024: RM6.7 million) with corresponding receivables of nil (31 December 2024: RM118.7 million). The Group also has transactions with other Government-related entities for the provision of telecommunication services and procurement of related equipment. These transactions are not individually significant but are collectively important and occur in the normal course of business. TELEKOM MALAYSIA BERHAD Reg. No.: 198401016183 (128740-P) (Incorporated in Malaysia) PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134 Fair Value The disclosure should be read in conjunction with note 44 of the Group's audited financial statements for the financial year ended 31 December 2024. Financial Instruments Carried at Fair Value The following table presents the Group's financial assets that are measured at fair value as at the respective reporting date. There were no liabilities measured at fair value at the end of the period ended and comparative year. As at 31/03/2025 As at 31/12/2024 Level 1 RM Level 2 RM Level 3 RM Total RM Level 1 RM Level 2 RM Level 3 RM Total RM Assets Financial assets at fair value through profit or loss - quoted securities 2.0 - - 2.0 2.5 - - 2.5 Derivatives accounted for under hedge accounting - 132.3 - 132.3 - 136.5 - 136.5 Investments at fair value through OCI - 75.6 - 75.6 - 72.9 - 72.9 Investments at fair value through profit or loss - 92.9 21.5 114.4 - 92.4 18.9 111.3 Equity investments at fair value through OCI - - 138.8 138.8 - - 138.8 138.8 Receivables at fair value through OCI - - 61.5 61.5 - - 61.1 61.1 Total 2.0 300.8 221.8 524.6 2.5 301.8 218.8 523.1 There have not been any changes to the valuation techniques applied for the different financial instruments since 31 December 2024 and there were no transfers of any instruments between level 1, 2 and 3 of the fair valuation hierarchy during the financial period. PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134 13. Fair Value (continued) Financial Instruments Other Than Those Carried at Fair Value There have not been any significant changes in the differences between the carrying amount and fair value of financial instruments carried at other than fair value from the disclosures in note 44(b) of the Group's audited financial statements for the financial year ended 31 December 2024, other than below: As at 31/03/2025 As at 31/12/2024 Carrying amount RM Million Net fair value RM Million Carrying amount RM Million Net fair value RM Million Liabilities Borrowings 3,476.1 3,558.3 3,490.9 3,555.5 Review of Performance 1st Quarter 2025 vs 1st Quarter 2024 Group Performance The Group's operating revenue for the current quarter stood at RM2,851.5 million, a 0.5% (RM14.5 million) increase from RM2,837.0 million recorded in 1st quarter last year. This was primarily attributable to higher revenue from data, other telecommunication services and education segment. The Group recorded an operating profit before other gains and finance cost of RM550.3 million for the quarter, compared to RM650.9 million in the corresponding quarter last year. The year-on-year variance was mainly due to the shift in recognition of 5G access costs, higher device costs in line with stronger device revenue and unfavourable foreign exchange movements. Consequently, the Group's Profit After Tax and Non-Controlling Interests (PATAMI) for the quarter was RM401.2 million, a 5.6% (RM23.6 million) decrease from RM424.8 million in the first quarter of 2024. Revenue by Customer Segments Business-to-Consumer (B2C) B2C reported operating revenue of RM1,386.4 million in the current quarter, a 0.7% (RM9.8 million) decrease from RM1,396.2 million in the same quarter last year. The softer performance was primarily due to a decline in Internet revenue amid an increasingly competitive market landscape. However, this was partially offset by growth in device revenue during the quarter, reflecting resilience in B2C's broader portfolio. Business-to-Business (B2B) B2B recorded an operating revenue of RM668.7 million for the current quarter, a 0.6% (RM4.3 million) decline from RM673.0 million in the corresponding quarter last year. The Group gained a positive traction of 8.7% (RM19.7 million) growth of Beyond Connectivity revenue, driven by stronger performance in customer projects, outsourcing business, ICT services including cloud and cybersecurity. Carrier-to-Carrier (C2C) C2C's operating revenue increased by 2.4% (RM18.1 million) from RM742.8 million in the same quarter last year to RM760.9 million, primarily driven by higher revenue from international data and growing demand for data centre services. Comparison with Preceding Quarter's Results The Group's operating revenue for the current quarter stood at RM2,851.5 million, a 6.5% (RM198.9 million) decrease from RM3,050.4 million in the preceding quarter, primarily attributed to lower data, Internet and other telecommunication services. Operating profit before other gains and finance cost improved to RM550.3 million, a 7.4% increase (RM37.9 million) from RM512.4 million in the previous quarter from lower operating costs compared to 4th quarter 2024. The Group's PATAMI for the quarter was RM401.2 million, 45.1% (RM329.4 million) lower than the preceding quarter, mainly due to the absence of a one-off tax credit. Current performance reflects the normal profit trajectory under the standard corporate tax rate. Prospects for the Current Financial Year Economic Outlook The Malaysian economy expanded by 4.4% 1 in the first quarter of 2025, supported by strong domestic demand and a healthy labour market. However, this may be revised downward amid uncertainty from recent U.S. tariff actions. Headline inflation was 1.5% in Q1 2025, with the OPR held steady at 3.0%, reflecting stable and manageable conditions. Business Outlook TM entered 2025 from a position of strength, built on a strong foundation, a resilient business model, and a clear commitment to long-term value creation. Despite the challenging landscape marked by rising competition and shifting cost dynamics, the Group continues to demonstrate operational discipline and strategic clarity. First-quarter revenue grew as expected, within the projected low single-digit range. Growth in B2B digital solutions and sustained C2C demand helped offset softer B2C performance. TM remains focused on strengthening its core, scaling enterprise and digital services, and enhancing cost efficiency, ensuring we remain on track to deliver our 2025 commitments. Each business segment plays a vital role in driving this ambition: B2C continues to advance digital convergence for homes and MSMEs, leveraging its position as Malaysia's only quad-play provider. Through integrated broadband, mobile, content, and voice services, we are enhancing customer experience with AI-driven predictive maintenance and personalised support. Prospects for the Current Financial Year (continued) Business Outlook (continued) B2B sustains its momentum in the enterprise and public sector with enterprise-grade connectivity, private 5G, cybersecurity, and smart services. As the National Cloud Provider, TM is driving digital transformation through secure, sovereign, and scalable cloud infrastructure. C2C continues to strengthen Malaysia's position as a regional digital hub through AI-ready data centres, edge facilities, and submarine cables. Our GPU-as-a-Service is gaining momentum, while C2C supports licensed service providers with robust 5G and fibre backhaul. The recent announcement on signing with U Mobile Sdn Bhd related to 5G mobile backhaul reflects TM's commitment to the Government's 5G Dual Network initiative. TM supports both networks and remains committed to delivering seamless, reliable 5G services through its nationwide fibre infrastructure. This marks a phased and positive development, reinforcing TM's role in advancing national 5G ambitions. Despite near-term headwinds, TM maintains a confident outlook driven by disciplined execution, strategic investment, and a forward-looking approach to value creation. 1 Bank Negara Malaysia (BNM) Quarterly Bulletin 1Q 2025 dated 16 May 2025 Variance of Actual Profit from Forecast Profit/Profit Guarantee The Group has not provided any profit forecast or profit guarantee in any public document in respect of the 1st quarter and financial period ended 31 March 2025. Tax The tax charge for the Group comprises: 1st Quarter and Financial Period Ended 31/03/2025 31/03/2024 RM Million RM Million Income Tax: Current year (110.7) (10.6) Prior year - (3.1) Deferred tax (net) (19.4) (128.6) Taxation (130.1) (142.3) Zakat (1.1) (2.0) Taxation and Zakat (131.2) (144.3) Status of Corporate Proposals There are no corporate proposals announced and not completed as at the date of this announcement. Group Borrowings and Debt Securities Analysis of the Group's borrowings and debt securities is as follows: As at 31/03/2025 As at 31/12/2024 Short Term Borrowings RM Million Long Term Borrowings RM Million Short Term Borrowings RM Million Long Term Borrowings RM Million Total Unsecured 1,592.6 1,883.5 1,381.0 2,109.9 Foreign currency borrowings and debt securities are as follows: Foreign Currency As at 31/03/2025 RM Million As at 31/12/2024 RM Million US Dollar 1,621.9 1,636.7 Canadian Dollar 1.6 1.6 Total 1,623.5 1,638.3 Group Borrowings and Debt Securities (continued) There have not been any significant changes in the Group's borrowings since the end of the previous financial year (as disclosed in note 17 of the Group's audited financial statements for financial year ended 31 December 2024) except for the impact of foreign exchange translation for the financial year ended. Derivative Financial Instruments Analysis of the Group's Derivative Financial Instruments is as follows: Fair value as at 31/03/2025 Fair value as at 31/12/2024 Derivatives (by maturity) Contract or notional amount RM Million Assets RM Million Assets RM Million Cross Currency Interest Rate Swaps (CCIRS) - less than 1 year 310.5 132.3 136.5 Total 310.5 132.3 136.5 Financial Risk Management Objectives and Policies There have been no changes since the end of the previous financial year in respect of the following: The types of derivative financial contracts entered into and the rationale for entering into such contracts, as well as the expected benefits accruing from these contracts; and The risk management policies are in place for mitigating and controlling the risks associated with these derivative financial instrument contracts. The details on the above, the valuation and the financial effects of derivative financial instruments that the Group has entered into are discussed in notes 4, 19 and 43 to 46 to the Group's audited financial statements for the financial year ended 31 December 2024. Related Accounting Policies The related accounting policies of the Group in respect of derivative financial instruments and hedge accounting are disclosed in note 2 to the Group's audited financial statements for the financial year ended 31 December 2024. Derivative Financial Instruments (continued) Losses Arising from Fair Value Changes of Financial Instruments The amount of losses arising from fair value changes of derivative financial instruments for the current quarter ended 31 March 2025 are as follows: Derivatives (by maturity) Contract or notional value RM Million Fair value RM Million Losses arising from fair value changes for the quarter RM Million Financial Assets Cross Currency Interest Rate Swaps (CCIRS) * - less than 1 year 310.5 132.3 (4.2) Total 310.5 132.3 (4.2) * Cash flow hedges accounted for under hedge accounting. The fair values of existing Interest Rate Swaps (IRS) arise from the changes in present value of their respective future cash flows against the prevailing market interest rates. The fair values of existing forward foreign exchange components of the contracts are determined by comparing forward exchange market rates at the balance sheet date against prevailing foreign exchange rates. The Mark to Market (MTM) on the IRS is positive when the expectation of relevant future interest rates increases and vice versa. The MTM on a forward contract is positive when the expectation of USD against RM currency is strengthened and vice versa. The MTM on the CCIRS is positive when the expectation of the relevant foreign currency against RM strengthens or the expectation of future RM interest rate increases and vice versa. Additional Disclosures The Consolidated Income Statement for the 1st quarter and financial period ended 31 March 2025 also includes the following: 1st Quarter and Financial Period Ended 31/03/2025 31/03/2024 RM Million RM Million Inventory (charges)/reversal for write off and obsolescence (5.5) 0.8 (Losses)/Gains on disposal of fixed income securities (0.1) 0.3 (Losses)/Gains on foreign exchange on settlements and placements (7.8) 26.4 Material Litigation TM Group is pleased to inform that neither TM nor its subsidiaries are engaged in any material litigation. Earnings per Share (EPS) 1st Quarter and Financial Period Ended 31/03/2025 31/03/2024 (a) Basic earnings per share Profit attributable to equity holders of the Company (RM million) 401.2 424.8 Weighted average number of ordinary shares (million) 3,837.7 3,837.6 Basic earnings per share (sen) attributable to equity holders of the Company 10.5 11.1 Basic earnings per share was calculated by dividing the net profit attributable to equity holders of the Company by the weighted average number of issued and paid-up ordinary shares during the financial period. Earnings per Share (EPS) (continued) 1st Quarter and Financial Period Ended 31/03/2025 31/03/2024 (b) Diluted earnings per share Profit attributable to equity holders of the Company (RM million) 401.2 424.8 Weighted average number of ordinary shares (million) 3,837.7 3,837.6 Adjustment for dilutive effect of Long Term Incentive Plan (million) 0.1 0.5 Adjusted weighted average number of ordinary shares (million) 3,837.8 3,838.1 Diluted earnings per share (sen) attributable to equity holders of the Company 10.5 11.1 Diluted earnings per share for the current quarter and financial period ended were calculated by dividing the net profit attributable to equity holders of the Company by the weighted average number of issued and paid-up ordinary shares adjusted for potential conversion of all dilutive ordinary shares from shares granted to employees under the Group's LTIP, as disclosed in note 14 to the Group's audited financial statements for financial year ended 31 December 2024. Qualification of Preceding Audited Financial Statements The audited financial statements for the financial year ended 31 December 2024 were not subject to any qualification. Dividends No dividend is recommended during the 1st quarter ended 31 March 2025 in respect of the financial year. By Order of the Board Hamizah Abidin (LS0007096) (SSM PC No. 201908001071) Group Company Secretary Kuala Lumpur 28 May 2025

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