Telekom Malaysia : Unaudited Consolidated Result for the 4th Quarter FY2024 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 year ended 31 December 2024. The Group has restated the comparative figures in our financial statements due to a change in the presentation of Government grants. Details are provided in part A, note 14, in accordance with the relevant financial reporting standards. CONSOLIDATED INCOME STATEMENT 4TH QUARTER ENDED (Unaudited) FINANCIAL YEAR ENDED (Unaudited) (Audited) OPERATING REVENUE OPERATING COSTS depreciation, impairment and amortisation net impairment loss on financial and contract assets other operating costs OTHER OPERATING INCOME (net) OPERATING PROFIT BEFORE OTHER GAINS AND FINANCE COST OTHER (LOSSES)/GAINS (net) OPERATING PROFIT BEFORE FINANCE COST FINANCE INCOME FINANCE COST FOREIGN EXCHANGE (LOSSES)/GAINS ON BORROWINGS NET FINANCE COST ASSOCIATE/JOINTLY CONTROLLED ENTITY share of results (net of tax) PROFIT BEFORE TAX AND ZAKAT TAX AND ZAKAT (part B, note 5) PROFIT FOR THE FINANCIAL PERIOD/YEAR ATTRIBUTABLE TO: equity holders of the Company non-controlling interests PROFIT FOR THE FINANCIAL PERIOD/YEAR EARNINGS PER SHARE (sen) (part B, note 11) 31/12/2024 RM Million 3,050.4 (547.8) (31.6) (2,027.3) 68.7 512.4 (17.6) 494.8 36.6 (71.4) (91.9) (126.7) 3.3 371.4 371.5 742.9 730.6 12.3 742.9 31/12/2023 RM Million (RESTATED) 2,992.0 (620.2) (92.0) (1,935.2) 64.5 409.1 7.1 416.2 31.1 (83.4) 26.6 (25.7) 3.2 393.7 46.3 440.0 433.5 6.5 440.0 31/12/2024 RM Million 11,712.4 (2,149.4) (44.4) (7,385.5) 192.0 2,325.1 (15.6) 2,309.5 127.7 (304.8) 36.7 (140.4) 8.1 2,177.2 (138.3) 2,038.9 2,016.9 22.0 2,038.9 31/12/2023 RM Million (RESTATED) 11,690.2 (2,413.6) (136.2) (7,255.5) 203.5 2,088.4 10.4 2,098.8 101.1 (355.8) (48.7) (303.4) 13.1 1,808.5 76.5 1,885.0 1,870.5 14.5 1,885.0 - basic 19.0 11.3 - diluted 19.0 11.3 52.6 48.9 52.5 48.7 (The above unaudited consolidated income statement should be read in conjunction with the audited financial statements for the financial year ended 31 December 2023) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 4TH QUARTER ENDED FINANCIAL YEAR ENDED (Unaudited) (Unaudited) (Audited) 31/12/2024 31/12/2023 31/12/2024 31/12/2023 RM Million RM Million RM Million RM Million PROFIT FOR THE FINANCIAL PERIOD/YEAR 742.9 440.0 2,038.9 1,885.0 OTHER COMPREHENSIVE INCOME Items that will not be reclassified subsequently to income statement: - increase/(decrease) in fair value of equity investments at fair value through other comprehensive income (FVOCI) 2.3 (4.6) 2.3 (12.6) Items that may be reclassified subsequently to income statement: - (decrease)/increase in fair value of investments at fair value through other comprehensive income (FVOCI) (0.3) 0.7 0.2 1.3 - reclassification adjustments relating to FVOCI investments disposed 0.1 # 0.3 # - (decrease)/increase in fair value of receivables at FVOCI (0.9) (0.6) 0.4 1.7 - cash flow hedge: - increase/(decrease) in fair value of cash flow hedge 36.4 (3.9) (6.1) 23.7 - change in fair value of currency basis (1.6) (1.2) (7.2) (5.9) - reclassification of foreign exchange (losses)/gains on borrowings (35.1) 9.9 13.3 (19.0) - currency translation differences - subsidiaries 22.8 (3.0) (13.6) 2.1 - associate 0.2 0.1 4.7 0.2 Other comprehensive income/(loss) for the financial period/year 23.9 (2.6) (5.7) (8.5) TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD/YEAR 766.8 437.4 2,033.2 1,876.5 ATTRIBUTABLE TO: - equity holders of the Company 754.5 430.9 2,011.2 1,862.0 - non-controlling interests 12.3 6.5 22.0 14.5 TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD/YEAR 766.8 437.4 2,033.2 1,876.5 # 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 2023) CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited) (Audited) AS AT AS AT 31/12/2024 31/12/2023 RM Million RM Million (RESTATED) SHARE CAPITAL 4,070.7 4,070.2 OTHER RESERVES 135.7 141.9 RETAINED PROFITS 5,893.3 4,950.9 TOTAL CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY 10,099.7 9,163.0 NON-CONTROLLING INTERESTS 166.2 159.6 TOTAL EQUITY 10,265.9 9,322.6 Borrowings 2,109.9 3,536.8 Lease liabilities 1,441.5 1,634.5 Deferred tax liabilities 920.9 1,127.0 Trade and other payables 139.0 192.8 NON-CURRENT LIABILITIES 4,611.3 6,491.1 14,877.2 15,813.7 Property, plant and equipment 11,429.3 11,796.8 Intangible assets 839.5 896.3 Right-of-use assets 1,182.9 1,263.6 Associate/Jointly controlled entity 109.8 100.1 Equity investments at fair value through other comprehensive income (FVOCI) 138.8 136.5 Investments at fair value through profit or loss (FVTPL) 111.1 150.1 Receivables at FVOCI 58.1 49.7 Other non-current receivables/assets 332.7 610.9 Derivative financial instruments - 149.8 Deferred tax assets 22.8 19.1 NON-CURRENT ASSETS 14,225.0 15,172.9 Inventories 201.7 204.6 Trade and other receivables 2,518.0 2,275.0 Contract assets 643.9 644.3 Contract cost assets 262.6 357.3 Receivables at FVOCI 3.0 2.6 Investments at fair value through other comprehensive income (FVOCI) 72.9 70.4 Investments at fair value through profit or loss (FVTPL) 0.2 3.3 Financial assets at fair value through profit or loss (FVTPL) 2.5 2.3 Derivative financial instruments 136.5 - Cash and bank balances 3,096.2 2,955.2 CURRENT ASSETS 6,937.5 6,515.0 Trade and other payables 3,270.4 3,033.3 Contract liabilities 1,231.8 1,247.9 Customer deposits 96.5 135.5 Borrowings 1,381.0 1,226.4 Lease liabilities 258.4 223.1 Tax and zakat 47.2 8.0 CURRENT LIABILITIES 6,285.3 5,874.2 NET CURRENT ASSETS 652.2 640.8 14,877.2 15,813.7 NET ASSETS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANY (sen) 263.2 238.8 (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 2023) UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024 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 At 1 January 2024 4,070.2 89.5 (8.5) 10.9 12.3 37.7 4,950.9 159.6 9,322.6 Profit for the financial year - - - - - - 2,016.9 22.0 2,038.9 Other comprehensive income Items that will not be reclassified subsequently to income statement: - increase in fair value of equity investments at FVOCI - 2.3 - - - - - - 2.3 Items that may be reclassified subsequently to income statement: - increase in fair value of investments at fair value through other comprehensive income (FVOCI) - 0.2 - - - - - - 0.2 - reclassification adjustments relating to FVOCI investments disposed - 0.3 - - - - - - 0.3 - increase in fair value of receivables at FVOCI - 0.4 - - - - - - 0.4 - cash flow hedge: - decrease in fair value of cash flow hedge - - (6.1) - - - - - (6.1) - change in fair value of currency basis - - - (7.2) - - - - (7.2) - reclassification of foreign exchange gain on borrowings - - 13.3 - - - - - 13.3 - currency translation differences - subsidiaries - - - - - (13.6) - - (13.6) - associate - - - - - 4.7 - - 4.7 Total comprehensive income/(loss) for the financial year - 3.2 7.2 (7.2) - (8.9) 2,016.9 22.0 2,033.2 Transactions with owners: - 2nd interim single-tier dividend paid for the financial year ended 31 December 2023 (part A, note 6) - - - - - - (402.9) - (402.9) - final single-tier dividend paid for the financial year ended 31 December 2023 (part A, note 6) - - - - - - (191.9) - (191.9) - interim single-tier cash dividend paid for the financial year ended 31 December 2024 (part A, note 6) - - - - - - (479.7) - (479.7) - dividends paid to non-controlling interests - - - - - - - (15.4) (15.4) - Long Term Incentive Plan (LTIP): - transfer from LTIP reserve upon issuance of shares on vesting (part A, note 5(b))^ 0.5 - - - (0.5) - - - - Total transactions with owners 0.5 - - - (0.5) - (1,074.5) (15.4) (1,089.9) At 31 December 2024 4,070.7 92.7 (1.3) 3.7 11.8 28.8 5,893.3 166.2 10,265.9 ^ Issuance of shares pursuant to the Group's LTIP RS. (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 2023) AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 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 At 1 January 2023 3,986.5 99.1 (13.2) 16.8 81.9 35.4 3,730.0 152.6 8,089.1 Profit for the financial year - - - - - - 1,870.5 14.5 1,885.0 Other comprehensive income Items that will not be reclassified subsequently to income statement: - decrease in fair value of equity investments at FVOCI - (12.6) - - - - - - (12.6) Items that may be reclassified subsequently to income statement: - increase in fair value of investments at fair value through other comprehensive income (FVOCI) - 1.3 - - - - - - 1.3 - reclassification adjustments relating to FVOCI investments disposed - # - - - - - - # - increase in fair value of receivables at FVOCI - 1.7 - - - - - - 1.7 - cash flow hedge: - increase in fair value of cash flow hedge - - 23.7 - - - - - 23.7 - change in fair value of currency basis - - - (5.9) - - - - (5.9) - reclassification of foreign exchange loss on borrowings - - (19.0) - - - - - (19.0) - currency translation differences - subsidiaries - - - - - 2.1 - - 2.1 - associate - - - - - 0.2 - - 0.2 Total comprehensive (loss)/income for the financial year - (9.6) 4.7 (5.9) - 2.3 1,870.5 14.5 1,876.5 Transactions with owners: - final interim dividend paid for the financial year ended 31 December 2022 - - - - - - (286.6) - (286.6) - interim dividend paid for the financial year ended 31 December 2023 - - - - - - (363.0) - (363.0) - dividends paid to non-controlling interests - - - - - - - (7.5) (7.5) - Long Term Incentive Plan (LTIP): - ordinary shares granted* - - - - 14.1 - - - 14.1 - transfer from LTIP reserve upon issuance of shares on vesting^ 83.7 - - - (83.7) - - - - Total transactions with owners 83.7 - - - (69.6) - (649.6) (7.5) (643.0) At 31 December 2023 4,070.2 89.5 (8.5) 10.9 12.3 37.7 4,950.9 159.6 9,322.6 # Amount less than RM0.1 million The apportionment over the vesting period of the fair value of the Group's granting of TM shares made to eligible employees of TM and its subsidiaries subject to fulfilment of relevant vesting conditions. ^ Issuance of shares pursuant to the Group's LTIP RS. (The above audited consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the financial year ended 31 December 2023) CONSOLIDATED STATEMENT OF CASH FLOWS FINANCIAL YEAR ENDED (Unaudited) (Audited) 31/12/2024 31/12/2023 RM Million RM Million Receipts from customers 11,406.3 12,115.2 Payments to suppliers and employees (6,845.7) (7,705.9) Payments to suppliers for short-term lease and leases of low-value assets (34.1) (34.9) Payments of finance cost (217.5) (284.2) Payments of income taxes and zakat (net) (298.4) (404.1) CASH FLOWS FROM OPERATING ACTIVITIES 4,010.6 3,686.1 Contribution for purchase of property, plant and equipment 265.5 321.7 Disposal of property, plant and equipment 5.8 6.8 Purchase of property, plant and equipment and intangible assets (1,380.9) (2,193.1) Acquisition of jointly controlled entity (1.8) - Disposal/Maturity of current investments at fair value through other comprehensive income 24.1 8.8 Purchase of current investments at fair value through other comprehensive income (26.1) (11.6) Purchase of investments at fair value through profit or loss (2.8) (7.3) Disposal of financial assets at fair value through profit or loss 24.6 27.1 Long term deposits (16.6) (16.6) Deposit with maturity exceeding 3 months (1.5) (2.1) Repayments of loans by employees 14.7 18.6 Loans to employees (23.1) (19.4) Disposal of housing loan - 127.6 Interest/Profit received 105.9 88.7 Dividends received 10.0 6.9 CASH FLOWS USED IN INVESTING ACTIVITIES (1,002.2) (1,643.9) Proceeds from borrowings - 30.0 Repayments of borrowings (1,223.7) (605.4) Repayments of lease liabilities (394.9) (455.3) Dividend paid to shareholders (part A, note 6) (1,074.5) (649.6) Dividend paid to non-controlling interests (15.4) (7.5) CASH FLOWS USED IN FINANCING ACTIVITIES (2,708.5) (1,687.8) NET INCREASE IN CASH AND CASH EQUIVALENTS 299.9 354.4 EFFECT OF EXCHANGE RATE CHANGES (24.7) (0.8) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE FINANCIAL YEAR 2,697.9 2,344.3 CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL YEAR 2,973.1 2,697.9 (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 2023) TELEKOM MALAYSIA BERHAD Reg. No.: 198401016183 (128740-P) (Incorporated in Malaysia) PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134 1. Basis of Preparation The unaudited interim financial statements for the 4th quarter and financial year ended 31 December 2024 of the Group have been prepared in accordance with Malaysian Financial Reporting Standards (MFRS) 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 2023. 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 2023 audited financial statements, except for the changes arising from the adoption of the amendments to MFRS issued by MASB that are effective for the Group's financial year beginning on 1 January 2024. The amendments to published standards that are effective and applicable for the Group's financial year beginning on 1 January 2024 The amendments to published standards issued by MASB that are effective and applicable for the Group's financial year beginning on 1 January 2024 are as follows: Amendments to MFRS 16 Lease Liability in a Sale and Leaseback Amendments to MFRS 101 Non-current Liabilities with Covenants Amendments to MFRS 107 and Supplier Finance Arrangements MFRS 7 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 2025 Amendments to MFRS 121 Lack of Exchangeability 1 TELEKOM MALAYSIA BERHAD Reg. No.: 198401016183 (128740-P) (Incorporated in Malaysia) PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134 1. Basis of Preparation (continued) New standards and amendments to published standards that have been issued but not yet effective and have not been adopted (continued) Effective for annual periods beginning on or after 1 January 2026 Amendments to MFRS 9 and Amendments to the Classification and MFRS 7 Measurement of Financial Instruments Contracts Referencing Nature-dependent Electricity Annual Improvements to MFRS (i) Amendments to MFRS 7 Financial Accounting Standards - Volume 11 Instruments: Disclosures (Gain or loss on derecognition) (ii) Amendments to MFRS 9 Financial Instruments (Derecognition of lease liabilities & Transaction price) (iii) Amendments to MFRS 10 Consolidated Financial Statements (Determination of a 'de facto agent') (iv) Amendments to MFRS 107 Statement of Cash Flows (Cost method) 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 Sale or Contribution of Assets between an MFRS 128 Investor and its Associate or Joint Venture The adoption of the above applicable new standards and amendments to published standards are not expected to have a material impact on the financial statements of the Group. 2 TELEKOM MALAYSIA BERHAD Reg. No.: 198401016183 (128740-P) (Incorporated in Malaysia) PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134 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 4th quarter and financial year ended 31 December 2024. 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 4th quarter and financial year ended 31 December 2024. Issuances, Repurchases and Repayments of Debt and Equity Securities Repayment of Islamic Medium-Term Notes (IMTN) During the current financial year, the Group repaid the following IMTN tranches in full, at its nominal value, upon their maturity dates: Debt Date of Issue Nominal Value Rate per Maturity Date Securities (RM Million) Annum IMTN 21 March 2014 300.0 4.820% 21 March 2024 IMTN 27 June 2014 300.0 4.738% 27 June 2024 IMTN 7 October 2014 300.0 4.550% 7 October 2024 IMTN 22 December 2014 300.0 4.550% 20 December 2024 The IMTN was issued as part of the RM3.0 billion IMTN Programme, as disclosed in note 17(b) of the Group's audited financial statements for the financial year ended 31 December 2023. Long Term Incentive Plan (LTIP) During the current financial year, the Company issued 76,400 new ordinary shares amounting to RM0.5 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 of the audited financial statements for the financial year ended 31 December 2023. The new ordinary shares were listed and allotted on the Main Market of Bursa Securities on 31 May 2024. There has been no further grant of new LTIP tranches during the current financial year. 3 TELEKOM MALAYSIA BERHAD Reg. No.: 198401016183 (128740-P) (Incorporated in Malaysia) PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134 Dividends Paid The 2nd interim single-tier dividend of 10.5 sen per share amounting to RM402.9 million in respect of the financial year ended 31 December 2023, was declared on 23 February 2024 and paid on 29 March 2024. The final single-tier dividend of 5.0 sen per share amounting to RM191.9 million in respect of the financial year ended 31 December 2023, was declared on 23 February 2024 and paid on 19 April 2024. An interim single-tier cash dividend of 12.5 sen per share amounting to RM479.7 million in respect of the financial year ended 31 December 2024, was declared on 26 August 2024 and paid on 30 September 2024. Segmental Information Segmental revenue information for the Group are as follows: 4th Quarter Ended Financial Year Ended 31/12/2024 31/12/2023 31/12/2024 31/12/2023 RM Million RM Million RM Million RM Million (RESTATED) (RESTATED) Business-to-Consumer (B2C) 1,454.6 1,409.7 5,633.3 5,664.0 Business-to-Business (B2B) 781.9 803.4 2,906.2 2,885.4 Carrier-to-Carrier (C2C) 780.1 769.3 3,061.4 3,073.0 Others/Shared Services 78.7 67.5 282.6 322.6 Inter-segment (44.9) (57.9) (171.1) (254.8) Total 3,050.4 2,992.0 11,712.4 11,690.2 The prior year comparatives have been restated to enhance comparability with the current year's disclosures, including the renaming of business clusters to reflect our customer-centric approach better. B2C ( formerly Unifi ) serves the Group's retail arm, offering a comprehensive suite of telecommunications services through TM's fixed-mobile convergence and digital solutions to households, individuals, as well as micro, small and medium enterprises. B2B ( formerly TM One ) functions as the Group's enterprise and government solutions arm, providing digital services, sovereign cloud, connectivity, innovative smart solutions, and cybersecurity offerings. C2C ( formerly TM Global ) operates as the Group's wholesale infrastructure enabler, delivering a broad spectrum of telecommunications services to domestic and international carriers through the Group's networks, including data centre solutions. Others/Shared Services include shared services divisions, business enabler functions such as Group Network and Information Technology, and subsidiaries that do not fall under the above business clusters. 4

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