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TELEKOM MALAYSIA BERHAD

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at the leading edge of telecommunications in Malaysia

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DIGITAL TECHNOLOGY TRANSFORMATION

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06bn revenue as at FY2016.1 Broadband provider in Malaysia 2.9% growth 373.37mn broadband customers More than 2.43% Total Shareholder Return since demerger Commercial launch of webe mobile service in Sept 2016 • As at 31 December 2016 4 • TSR as at 29 March 2017 .23mn HSBB fiber ports RM12.TM TODAY*… MALAYSIA’S CONVERGENCE CHAMPION No. with 2.

Latest Updates TM 30th AGM 30 April 2015 .

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 .

Our digital transformation supported by Convergence 7 .

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

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 .

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 .

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

000 ports covering 86 exchange areas delivered to date • Target: 420.000 ports by end-2017 HSBB 2 • More than 280.000 ports covering 152 exchange areas delivered to date KANGAR ◘ © ALOR STAR ◘ ◘© KOTA BHARU ◘ ◘ ◘ KOTA KINABALU© PENANG KUALA TERENGGANU ◘ © ◘ ◘ ◘ IPOH ◘ ◘ © ◘ Northern ◘ Corridor ◘ Zone 3 Economic Region ◘ ◘ ◘ ◘ © KUANTAN ◘ ◘ SHAH ALAM © ◘ KUALA LUMPUR ◘ ◘ ◘ Klang ◘ Valley SEREMBAN © Zone 3 ◘ LEGEND ©◘ ◘ MELAKA Zone 1 – HSBB & HSBB2 KUCHING High economic impact areas ◘ ◘ ◘ ◘ ◘ ◘ ©◘ ◘ Industrial parks/FTZs ◘ © ◘ © State capitals/major towns JOHOR BAHRU Zone 2 – SUBB Urban/Semi-urban and rural Iskandar Zone 3 – USP Malaysia Less populated areas Areas are indicative and not to scale 12 .000 ports by end-2019 SUBB • More than 210. HSBB and SUBB Project • Target: 390.

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

376.43% AXIATA2 19. • Date of Incorporation: 12 October 1984 • Date of Listing: 7 November 1990 RAM • AAA Total Return To Shareholders 26% FBMKLCI1 81.35% 15% DIGI1 257.00 • Issued and Paid-up Capital: RM2. Credit Rating Capital Structure Moody’s • A3 • Authorised Capital: RM3.24% MAXIS3 94.54% 12% 12% Source: Bloomberg 1 For the period 22 April 2008 – 29 March 2017 2 For the period 25 April 2008 – 29 March 2017 3 For the period 18 November 2009 – 29 March 2017 • As at 29 March 2017 • Foreign Shareholding as at 28 February 2017 • EPF: Employees Provident Fund Board • Amanah Raya Berhad – for Skim Amanah Saham Bumiputra 14 .554.003.00 S&P • A. About TM.015.630.85% 35% TM1 373.528..

1%) Reported PATAMI 905 848 Normalised PATAMI 700 776 193 262 160 208 154 270 4Q15 3Q16 4Q16 FY2015 FY2016 15 Note : Unless stated otherwise all figures shall be inclusive of Webe .7% +10.237 4Q15 3Q16 4Q16 FY2015 FY2016 EBIT RM mn -8.8% (Normalised -6.2% (Normalised -4.9%) +10.257 1.061 Revenue 3.154 1.9% (Normalised -3.184 2.9% RM mn +1.3%) -3. Key FY2016 Highlights Revenue +2.3% (Normalised -14.4% (Normalised +30.240 Reported EBIT 1.7% 11.29%) 1.923 3.185 Normalised EBIT 259 350 307 310 286 300 4Q15 3Q16 4Q16 FY2015 FY2016 PATAMI RM mn -19.1%) -6.8% (Normalised +2.4%) +10.722 12.

9% -0.3% +8.6% +6.178 Data 23% Internet 31% 919 951 701 697 862 541 RM12.670 Data 23% Internet 27% 880 801 857 741 662 732 4Q15 3Q16 4Q16 FY2015 FY2016 4Q15 3Q16 4Q16 FY2015 FY2016 RM11.4% Others* Voice 3.507 22% 3. Group Total Revenue by Product FY 2015 Voice Data RM mn RM mn -2.4% +3.8% +7. MMU tuition fees.e ICT-BPO.2% +2.5% +28.317 28% 2.061mn 4Q15 3Q16 4Q16 FY2015 FY2016 4Q15 3Q16 4Q16 FY2015 FY2016 Note : Unless stated otherwise all figures shall be inclusive of Webe *Others comprise other telco and non-telco services 16 *Total revenue is after inter-co elimination.330 2.367 2.0% -1. (i.722mn Internet Others* FY 2016 RM mn RM mn +10.0% +10. customer projects) .8% Others* 3.745 28% 2.668 18% Voice 3.6% -5.

106 37% 1.095 1.8% 5% +32.722mn 4Q 15 3Q 16 4Q 16 FY2015 FY2016 4Q 15 3Q 16 4Q 16 FY2015 FY2016 Global & Wholesale Others* FY 2016 RM mn RM mn Others* +2.187 1. UTSB.205 RM11.1% +3.5% +3.6% +10. TMIM.484 Accounts 4.0% +2.7% Global & Wholesale 16% Mass Market 42% 1. MKL & Webe 17 .0% Global & Wholesale 16% Mass Market 42% Managed 4.871 1.5% 4% +3.3% +13.373 4. Note: Unless stated otherwise all figures shall be inclusive of Webe TM R&D.7% +1.264 1.309 1.2% +2.275 1. Group Total Revenue by Customer Clusters Mass Market Managed Accounts FY 2015 RM mn RM mn Others +2.0% -8.061mn *Others include revenue from Property Development.950 5.928 528 543 Managed Accounts 37% 561 573 162 149 433 131 4Q 15 3Q 16 4Q 16 FY2015 FY2016 4Q15 3Q16 4Q16 FY2015 FY2016 RM12.

266 2.340 2.370  UniFi customer base expanded to over 949.364 2.369 2.365 2.000 customers 757 782 793 839 877 900 921 949  ARPU growth due to upselling and higher buys of Premium Channels Customers (In thousand) 1509 1506 1501 1501 1487 1465 1448 1421 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Streamyx UniFi UniFi ARPU (Blended) Streamyx Net ARPU 18 .294 2.288 2.3% 0.0% 2. 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.

2% 670 7.7% 11.6% 9.4% 22.7% 6.4% 10.2% 6.3% 18.7% 59 1Q16 2Q16 3Q16 4Q16 FY2015 FY2016 1Q16 2Q16 3Q16 4Q16 FY2015 FY2016 Core Network Access Support Systems Dep & Amortisation Direct cost Manpower Other operating cost Maintenance Supplies & materials Marketing Expenses Bad debt Total Cost / Revenue (%) Capex / Revenue (%) 1 Revenue = Operating Revenue + Other Operating Income Note : Unless stated otherwise all figures shall be inclusive of Webe 19 .6% 237 21.7% 3.4% 0.3% 3.0% 6.0% 533 21.3% 3.7% 11.6% 91.5% 1.616.8% 19.2% 5.1 2.3% 21.4 10.6% 0.0% 6.4% 90.1% 7.505 3.5% 318 620 715 1.4% 3.3% 90.4% 20.5% 11.2% 21.9 2.7% 1449 22.6% 11.315 1.588.037.6% 21.3% 4.0% 20.795.6% 6.7% 10.1% 3.1% 20.3 90.5% 51.4% 11.9% 21.644.980.4% 5.0% 18.662 2.9% 89.2% 21.9 2.9% 6. FY 2016 CAPEX & OPEX Cost % of Revenue1 Group Capital Expenditure RM mn RM mn 2.7% 790 128 1188 1196 123 22.8% 18.4% 27.0% 0.3% 18.2% 89.5% 21.4% 24.6% 260 97 550 162 237 350 -0.8% 784 322 18.2 11.8% 6.

5 Cashflows from financing activities (206.510.8 2. Group Cash Flow RM mn FY 2016 FY 2015 Cash & cash equivalent at start 3.505.510.1 1.8) 142.5 2.848.314.975.5 Effect of exchange rate changes 32.5) (2.188.0 Cashflows used-in investing activities (3.549.6 2.1 1.9) Capex 3.925.2 3.0 Cashflows from operating activities 2.8 Free cash-flow (EBITDA – Capex) 474.9 20 Note : Unless stated otherwise all figures shall be inclusive of Webe .259.942.2 Cash & cash equivalent at end 2.

511.0 Short Term Borrowings 700.7 19.2 258.6 7.7 25.9 Deferred tax liabilities 1.928.194.175.926.8 1.4 10.6 Trade and Other Payables 4.9 18.1 Other Receivables 801.367.353.5 Current Assets 6.026.010.026.8 Current Liabilities 5.4 1.590.3 Others 1.780.7 5.590.103.662.9 Property Plant & Equipment 16.3 838.047.4 Derivative financial instruments 301.514.0 1.3 Net Current Assets/(Liabilities) 912.2 19.692.103.3 7.171.0 3. Group Balance Sheet As at As at RM million 31 Dec 2016 31 Dec 2015 Shareholders’ Funds 7.1 Deferred & Long Term Liabilities 11.297.887.5 1.8 1.5 Trade Receivables 2.0 Cash & Bank Balances 2.9 Other Non-Current Assets 2.9 18.357.822.661.9 321.6 Deferred income 1.551.6 Non-Controlling Interests 140.974.6 15.5 Note : Unless stated otherwise all figures shall be inclusive of Webe 21 .1 2.367.5 7.6 Others 803.186.7 Trade and other payables 3.1 594.8 Long Term Borrowings 7.711.0 4.474.7 408.

The TRI*M Index is an indicator of the status quo of a particular relationship.4% Maintain 2016 EBIT Growth1 3. measures and portrays stakeholder relationships on the basis of standardized indicators. It analyzes.g. and a company's competitive advantage. 2 This KPI excludes Webe for 2017. repeat purchasing of product/services. TRiM (Measuring. The information is based on surveys/interviews on a sample customer base. Managing and Monitoring) is a standardized indicator system. for customer loyalty: overall rating. 2 Using TRiM index measuring end to end customer experience at all touch points.5 – 4% 3.” 22 . recommendation.5% .Headline KPI 2017 Mid Term Revenue Growth1 3.5 – 4% RM level Customer Satisfaction 73* 73 Measure2 1 These KPIs are for TM including Webe. The index is made up of four points of view on the stakeholder relationship. e.

Appendix 23 .

8% (Normalised -4.8% (Normalised -6.2% (Normalised -4.3%) -15.9%) +10.3% +2.154 11.725 700 3.9% (Normalised -10.6%) -8.9% -2.694 3.636 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 EBITDA Normalised EBITDA PATAMI Normalised PATAMI 24 Note: Unless stated otherwise.722 1.061 1.235 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 Revenue EBIT Normalised EBIT EBITDA PATAMI RM mn RM mn +1.4%) 12.9%) 3.820 941 905 3.257 1.185 11. Group Results: 3-Year Performance Revenue EBIT RM mn RM mn +4.240 1.387 1.677 3.5% (Normalised +3.294 1.6% (Normalised -1. all figures shall be inclusive of Webe .789 832 848 776 3.3%) +2.

469 3.722mn RM12.668 2.1% +0.606 3.995 3.8% +1.507 2.6% +6.9% +2.178 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 *”Others” comprise other telco and non-telco services i.330 2. Yellow Pages Change in revenue mix: non-voice revenue now 79% FY2014 FY2015 FY2016 19% 22% 19% 28% 28% 31% 27% 27% 30% 23% 23% 30% RM11.4% 3.745 2.235mn RM11. all figures shall be inclusive of Webe .1% -5.367 3.061mn Internet Voice Data Others 25 Note: Unless stated otherwise.5% +2. 3-Year Performance: Revenue by product Internet Data Voice Others* RM mn RM mn RM mn RM mn +12.317 2.165 2.e ICT-BPO. MMU tuition fees.670 2. customer projects.4% +8.

1 10.2 11.836 2.315 10.0% 784 Other operating cost Manpower Direct cost 662 18.9% 7.588.6% 11.3% 18.6% 20.0% 11. moveable plants.3% 7.2% 3.6% 670 3.2% 6.037.095.0% 7.3 16.4% 27.0% 1.8% 21.6% FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 Core Network Access Support Systems Total Cost / Revenue (%) 1 Revenue = Operating Revenue + Other Operating Income Capex / Revenue (%) Note: The classification of cost is as per financial reporting 26 *Include Application.4% 3. Support System & Others (building.0% Marketing Expenses 1449 Supplies & materials 21.4% 6.7% 16.5% Dep & Amortisation 1188 1196 694 20.3% 2. land improvement.4% 90.3% 21.5% 88.5% 0.6% 21.6% 89. 3-Year Performance: Capex Capex & Opex: 3-Year & Opex Performance Total Capex Cost % of Revenue1 RM mn RM mn 1.506 3. application & other assets) .4% 6.7% Maintenance 480 21.3% Bad debt 533 10.

340 2.421 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 .9% +1.231 729 839 949 1.3% In thousand 2.370 2.502 1. 3-Year Performance: Physical Highlights Broadband +4.501 1.

webe mobile and webe broadband plans 28 .

144 billion as at 30 September 2008. The Company is currently able to meet this dividend policy.025 billion by April 2009. the Company wishes to state that its recurring cash generation ability is sufficient to meet its current 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. capital structure and methods in which excess cash beyond the dividend policy and prudent level of cash required for operations. because: • The Company has sufficient consolidated cash and bank balances of RM1. Upon completion of the Proposed Demerger. The Company’s dividend policy as announced at the time of the demerger between TM and TM International Berhad (TMI) remains valid. business prospects. and it is confident that TMI is able to meet its obligation due to TM of RM4.” This policy remains unchanged for 2009 and beyond. Given the unprecedented volatility in global markets. • TM’s retained earnings is also sufficient to support this current dividend policy in the event of unforeseen shortfalls in normalised PATAMI. TELEKOM MALAYSIA BERHAD (Bursa Malaysia Announcement Reference No TM-081113-37325) Date Announced :13/11/2008 29 . Moving forward. TM is focused on building a strong foundation for its future growth and operational excellence. The policy states as follows: “In determining the dividend payout ratio in respect of any financial year after the Proposed Demerger. the Company will continue to examine the likely impact on its business. current and expected obligations and such other matters as our Board may deem relevant. results of operations. our Company intends to adopt a progressive dividend policy which enables us to provide stable and sustainable dividends to our shareholders while maintaining an efficient capital structure and ensuring sufficiency of funding for future growth. whichever is higher. • In the event of a downturn in performance due to unforeseen circumstances. our Company intends to distribute yearly dividends of RM700 million or up to 90% of our normalised PATAMI. cashflow generation. can be efficiently distributed to our shareholders. The actual amount and timing of dividend payments will depend upon our level of cash and retained earnings. projected levels of capital expenditure and other investment plans. monetization of non-core assets. Dividends will be paid only if approved by our Board out of funds available for such distribution.

6% 3.3 701.037.7 941.7 468.8 847.0% 3.5% Dividend 5.3% 79.2 881.5 RM mn 993.5% 88.073.9% 95.9% 124.9 1 846.0 894.2 sen per share 2 Net Dividend Yield based on closing share price at year end 3 Exclused Capital Distributions/Repayment 30 .2 1.6% Yield2 (%) 4.2% 1.4 1.0 706.038.2% 110.3 sen per share and 2nd Interim Dividend of 12.5 700.5% 89.3% 3.6% Net 6.9% 90.0% of Payout Normalised PATAMI whichever is higher Ratio3 (%) 150.9 787.2 634.8 563.2% 3.0 804.3 2009 2010 2011 2012 2013 2014 2015 2016 Normalised PATAMI Ordinary Dividend Capital Repayment 1 2016 1st Interim Dividend of 9.2 808. Shareholder Returns (2009-2015) Dividend Payout Policy of RM700mn or up to 90.7% 4.

Tulip Sukuk.02 Return on Assets1 4.71 0.52 WACC 7.28%) • Forex hedged: USD200mn equivalent & ¥7.04% 20.644 1.03% 11.800mn (47% from total foreign currency MYR borrowings) 79.09 0.90% Gross Debt/Equity 1.06% (FY15: 4.36% Net Assets/Share (sen) 204.15 1.80% 5.66% Net Debt/EBITDA 1.25 1.10 1.7 207.1% from total borrowing) [Yankee Bond.90 Return on Equity2 10.17% 7.85% • Total forex unhedged: USD310mn equivalent (20.36bn • Average cost of debt: 5.97 Current Ratio3 1.0 1 Based on Normalised EBIT 2 Based on Normalised PATAMI Note : Unless stated otherwise all figures shall be inclusive of Webe 31 .69% Gross Debt to EBITDA 2.11% 9 3 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2034 • Total debt as at end Dec 2016: RM8.25 Net Debt/Equity 0. 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 1.25% 6.200 925 850 912 756 800 681 584 Others USD 0. Bank Loan & CIDA Loan]. Key Financial Ratios 31 Dec 16 31 Dec 15 31 Dec 16 31 Dec 15 Return on Invested Capital1 6. Webe’s Deutsche Loan.

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