TELEKOM MALAYSIA BERHAD...This presentation has been prepared solely for use at this presentation....
Transcript of TELEKOM MALAYSIA BERHAD...This presentation has been prepared solely for use at this presentation....
TELEKOM MALAYSIA BERHADCONNECT COMMUNICATE COLLABORATE
INVEST MALAYSIA 201313-14 June 2013
Kuala Lumpur
This presentation is not and does not constitute an offer, invitation, solicitation or recommendation to subscribe for, or purchase, any securities
and neither this presentation nor anything contained in it shall form the basis of, or be relied on in connection with any contract or commitment or
investment decision.
This presentation has been prepared solely for use at this presentation. By your continued attendance at this presentation, you are deemed to
have agreed and confirmed to Telekom Malaysia Berhad (the “Company”) that: (a) you agree not to trade in any securities of the Company or its
respective affiliates until the public disclosure of the information contained herein; and (b) you agree to maintain absolute confidentiality
regarding the information disclosed in this presentation until the public disclosure of such information, or unless you have been otherwise
notified by the Company.
Reliance should not be placed on the information or opinions contained in this presentation or on its completeness. This presentation does not
take into consideration the investment objectives, financial situation or particular needs of any particular investor.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information,
opinions and conclusions contained in this presentation. None of the Company and its affiliates and related bodies corporate, and their
respective officers, directors, employees and agents disclaim any liability (including, without limitation, any liability arising from fault or
negligence) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with it.
This presentation contains projections and “forward-looking statements” relating to the Company’s business and the sectors in which the
Company operates. These forward-looking statements include statements relating to the Company’s performance. These statements reflect the
current views of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions. It is important to note
that actual results could differ materially from those anticipated in these forward looking statements. The Company does not undertake to inform
you of any matters or information which may come to light or be brought to the Company’s attention after the date hereof.
The forecasts and other forward-looking statements set out in this presentation are based on a number of estimates and assumptions that are
subject to business, economic and competitive uncertainties and contingencies, with respect to future business decisions, which are subject to
change and in many cases outside the control of the Company. The directors and officers of the Company believe that they have prepared the
forecasts with due care and attention and consider all best estimates and assumptions when taken as a whole to be reasonable at the time of
preparing the presentation. However, the Company’s forecasts presented in this presentation may vary from actual financial results, and these
variations may be material and, accordingly, neither the Company nor its directors or officers can give any assurance that the forecast
performance in the forecasts or any forward-looking statement contained in this presentation will be achieved. Details of the forecasts and the
assumptions on which they are based are set out in the presentation.
This presentation may not be copied or otherwise reproduced without the written consent of the Company.
Disclaimer
2
2
3
•Snapshot of TM
4
•TM 3-Year Performance
1 •Country & Industry Overview
3
•Awards and Recognition5
•The Road Ahead: PIP 3.06
•Unifi Updates
6,091 6,2206,605 6,675 6,744 6,725
0
2,000
4,000
6,000
8,000
2008 2009 2010 2011 2012 1Q13
Households
Households (‘000)
4
18.4 22.9 25.5 24.5 28.6 29.92.7
8.3
28.3 35.336.4 39.4
1.94.2
4.1
0
20
40
60
80
2008 2009 2010 2011 2012 1Q13
Fixed Wireless 1Malaysia Netbook***
(%)
21.1
31.2
55.662.3
66.0 66.6
Broadband Penetration Rate*/^
Source : Malaysia Communications & Multimedia Commission (MCMC)Note: *per 100 households **per 100 inhabitants
^The household penetration rate is calculated based on households and not subscriptions. A household with multiple subscription is counted as 1
Country & Industry Overview
Malaysia’s broadband champion and leading
integrated information and communication
company with over 60 years of experience
In 2008, demerged its mobile and fixed services
TM today:
Malaysia’s leading ISP with >2.1 million
broadband customers
Malaysia’s premier BPO provider
Malaysia’s largest fixed data provider with
>50% market share
Enhanced global capacity
Snapshot of TM
5
•Authorized Capital RM3,528,003,015•Issued and Paid-up Capital RM2,504,184,213•Date of Incorporation 12 October 1984•Date of Listing 7 November 1990
A3Moody’s
S&P A-
Fitch A-
CREDIT RATING
RAM AAA
Snapshot of TM
* as at 31 May 2013•Note : EPF : Employees Provident Fund
Source : TM Website (www.tm.com.my)
TM Shareholders*
800
1,000
1,200
1,400
1,600
1,800
2,000
1.00
2.00
3.00
4.00
5.00
6.00
7.00
Apr-
08
Jul-08
Oct-
08
Jan-0
9
Apr-
09
Jul-09
Oct-
09
Jan-1
0
Apr-
10
Jul-10
Oct-
10
Jan-1
1
Apr-
11
Jul-11
Oct-
11
Jan-1
2
Apr-
12
Jul-12
Oct-
12
Jan-1
3
Apr-
13
T MK Equity
FBMKLCI Equity
Source : Bloomberg Capital Distribution of 29sen per share (May 2011)Capital Repayment of 98sen per share (May 2009)
TM Share price 11 June 2013: RM5.4522 April 2008 : RM3.05
TM Share Price Performance
YTD Growth (%)TM Share Price : -9.8% FBMKLCI : +5.4%
Capital Repayment of 30sen per share (July 2012)
6
TM Provides Amongst Highest Return to Shareholders
Source: Bloomberg
Dividend payout exceeded RM700mn in 2012
7
1 For the period since demerger (22/4/2008 to 11/6/2013)
12 3
1
564 635
881
643556
383
2010 2011 2012
Operational Non-Operational
2,9593,108 3,195
2010 2011 2012
8,791 9,151 9,994
2010 2011 2012
Financial Highlights 2010-2012
+4.1%
Total Revenue
RM mn
Normalised EBITDA Margin (%)
RM mn
Normalised EBITDA
PATAMI
RM mn
33.533.1 31.6
1,1911,207 1,264
Reported PATAMI (RMmn)
TM 3-year performance
963 980
1,150
2010 2011 2012
Normalised EBIT
8
+9.2% +5.1% +2.8%
+1.8% +17.3%-1.3% +6.1%
Voice44%
Data20%
Internet19%
Others*17%
1,6532,001
2,372
2010 2011 2012
1,754 2,013 2,205
2010 2011 2012
3,863 3,734 3,706
2010 2011 2012
VoiceDataInternet
RM mnRM mn RM mn
20122011
Total Revenue by Product
+18.5%
2010
Non-voice Revenue now >60% of Group Revenue
Voice41%
Data 22%
Internet22%
Others*15%
Voice 37%
Data22%
Internet24%
Others*17%
+21.1% +9.5%+14.8% -0.7%-3.3%
9*”Others” comprise other telco and non-telco services i.e ICT-BPO, MMU tuition fees, customer projects, Yellow Pages
29202
4064
35
77
2010 2011 2012
UniFi Residential UniFi Business
4,334 4,112 3,876
33 237 483
2010 2011 2012
DEL Unifi
1,680 1,686 1,583
33 237 483
2010 2011 2012
Streamyx Unifi
Broadband and Fixed Line customers
Total Broadband Customers
In thousand
In thousand
1,713
4,367 4,349 4,359
+7.4%
1,923 2,066
Strong broadband growth led by Unifi
Fixed Line Customers
UniFi Customers
In thousand
33
237
483
+12.3%
+0.2%-0.4%
+103.8%+618.2%
10
UniFi Update
112 IPTV Channels Wider HyppTV offerings: HyppTV for Business,
Mega Pack, Platinum Pack, Ruby Pack & Sports Pack HyppTV over Broadband & HyppTV Everywhere in
3Q2013
Delivered >1.4 mn premises covering 102 exchanges Activated more than 560,000 customers todate Gross capex spent todate: RM6.4bn Smart Partnerships with property developers
11
Awards & Recognition for TM and HSBB
TM continued to receive local and international recognition
FROST & SULLIVAN MALAYSIA EXCELLENCE AWARDS (2005-2012)
• Service Provider of the Year (3-time winner)
• Broadband Service Provider of the Year
(7-time winner)
• Data Communications Service Provider
of the Year (8-time winner)
• Managed Service Provider of the Year (4-
time winner)
TV CONNECTS INDUSTRY AWARDS 2013(previously IP & TV World Awards)
• HyppTV for Best Live Online TV Service or
Solution
FROST & SULLIVAN ASIA PACIFIC ICT AWARDS 2012
• Fixed Broadband Service Provider of the Year
“Amongst the fastest fibre rollout in the world – End-to-end infra in 18 months plus IPTV service in 6 months”
McKinsey & Co
“TM’s choice of architecture … made it one of the fastest and lowest cost HSBB deployments in the world”
BT Telconsult
“Malaysia is the fastest growing FTTH market in South East Asia and is a success story for FTTH globally”
Frank JafferPresident FTTH Council AP
12
Performance Improvement Program 3.0
• Information
Exchange
aspiration
• Changing
business
dynamics
Continued Growth
Fundamental Productivity
Shift
Improve Institutional
Health Drivers
• Voice and broadband• New opportunities, ie content
and enhanced offerings
• Best practice cost and capital efficiencies
• Process optimisation• Migration to all-IP
• Accelerate transformation into a customer-centric organisation
• Increased focus on key customer segments
Underlying Principles of COOL, TWP & KRISTAL Values
13
THANK YOU
Appendix
15
16
Headline KPI
Headline KPIs
2013 2015
Revenue Growth
EBIT Growth
Customer Satisfaction Measure
6% 6%
3% 8%
72 72
1: For the period since 22 April 2008 – 11 June 2013
Source: Bloomberg
Highest Return to Shareholders
2: For the period since 18 November 2009 – 11 June 20133: For the period since 25 April 2008 – 11 June 2013
TM vs. FBM KLCI TM vs. Digi
TM vs. Maxis TM vs. Axiata
1
2
1
3
17
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 states as follows:
“In determining the dividend payout ratio in respect of any financial year after the Proposed Demerger, 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.
Upon completion of the Proposed Demerger, our Company intends to distribute yearly dividends of RM700 million or up to 90% of
our normalised PATAMI, whichever is higher.
Dividends will be paid only if approved by our Board out of funds available for such distribution. The actual amount and timing of
dividend payments will depend upon our level of cash and retained earnings, results of operations, business prospects,
monetization of non-core assets, projected levels of capital expenditure and other investment plans, current and expected
obligations and such other matters as our Board may deem relevant.”
This policy remains unchanged for 2009 and beyond. The Company is currently able to meet this dividend policy, because:
• The Company has sufficient consolidated cash and bank balances of RM1.144 billion as at 30 September 2008, and it is
confident that TMI is able to meet its obligation due to TM of RM4.025 billion by April 2009.
• In the event of a downturn in performance due to unforeseen circumstances, the Company wishes to state that its recurring cash
generation ability is sufficient to meet its current dividend policy.
• TM’s retained earnings is also sufficient to support this current dividend policy in the event of unforeseen shortfalls in normalised
PATAMI.
Given the unprecedented volatility in global markets, the Company will continue to examine the likely impact on its business,
cashflow generation, capital structure and methods in which excess cash beyond the dividend policy and prudent level of cash
required for operations, can be efficiently distributed to our shareholders.
Moving forward, TM is focused on building a strong foundation for its future growth and operational excellence.
TELEKOM MALAYSIA BERHAD (Bursa Malaysia Announcement Reference No TM-081113-37325)
Date Announced :13/11/200818
Reiteration of Dividend Policy
19
Return to Shareholders
~ RM 1.4 bn* market worth•Small players not included due to unavailability of published data
• DiGi combine WBB&MI revenue
Maxis14911%
Celcom256 18%
Digi,26519%
TM64446%
Packet1 816%
~ RM 4.5 bn* market worth* Other players not included due to unavailability of published data
Maxis 1,28329%
Digi,97822%
Celcom1,306 29%
TM87820%
Time180%
TM’s Market Share as at 1Q2013
Voice Revenue 1Q13
(RM mn)
Broadband Revenue 1Q13
(RM mn)
Data* Revenue 1H2012
(RM mn)
~ RM 0.85bn* market worthfor 1H2012
Source: MCMC, Company Financial Results; Group Regulatory & BMI Team Analysis
*Data comprises of IPVPN, Leased Line, ISDN, Metro-Ethernet, Frame Relay and ATM services
TM98%
Others2%
Fixed Line*(3.81mn customers)
*DEL only
TM67%
Others11%
AT&T1%
PaduNet6%
NTT2%
TIME5%
Maxis2%
Jaring2%
Verizon2%
Orange2%
DiGi0%
TM88%
Others 12%
Fixed Broadband* (2.4 mn customers)
*ADSL, SDSL and Fiber
20
20
183
288234
1Q12 4Q12 1Q13
Normalised PATAMI
2,3842,809
2,425
1Q12 4Q12 1Q13
274
349
300
1Q12 4Q12 1Q13
RM mn
Normalised EBITDA Margin (%)
RM mn
Normalised EBIT
PATAMIRM mn
11.4
Reported PATAMI
12.2
Revenue
21
Key 1Q2013 Highlights
12.3
251 363 213
-14.9%
-41.3%
+9.5%
-14.0%
+1.7%
-13.7%
Voice40%
Data21%
Internet24%
Others15%
Voice36%
Data24%
Internet27%
Others13%
359
630
318
1Q12 4Q12 1Q13
514646 585
1Q12 4Q12 1Q13
563 626 644
1Q12 4Q12 1Q13
948 907 878
1Q12 4Q12 1Q13
Data
RM mn
RM mn RM mn
Voice
Others*
Internet1Q13
1Q12
RM mnRM mn
RM mn
RM2,425mn
RM2,384mn
*”Others” comprise other telco and non-telco services i.e ICT-BPO, MMU tuition fees, customer projects, Yellow Pages
-7.4%
-3.2%
22
+14.4%
+2.9%
+13.8%
-9.4%
-11.4%
-49.5%
1Q2013 Highlights: Group Total Revenue by Product
Retail75%
Global & Wholesale
17%
Others7%
Retail76%
Global & Wholesale
15%
Others8%
1,800 2,035 1,854
1Q12 4Q12 1Q13
177
318
197
1Q12 4Q12 1Q13
407 457374
1Q12 4Q12 1Q13
Global & Wholesale
1Q13 1Q12RM2,425mn RM2,384mn
* Others comprise revenue from VADS, Property Development, TM R&D, TMIM, UTSB and MKL
Retail
RM mnRM mnRM mn
Others*
23
+3.0%
-8.9%
-8.1%
-18.2%
+11.3%
-38.1%
1Q2013 Highlights: Group Total Revenue by Lines of Business
4,050 3,977 3,926 3,876 3,838
316 384 427 483 532
1Q12 2Q12 3Q12 4Q12 1Q13
Fixed Line UniFi
1,658 1,627 1,601 1,583 1,577
316 384 427 483 532
1Q12 2Q12 3Q12 4Q12 1Q13
Streamyx UniFi
269 326 359 406 44847
5868
7784
1Q12 2Q12 3Q12 4Q12 1Q13
UniFi Residential UniFi BusinessNet adds (in thousand)
In thousand
In thousand
+6.8%
+2.1%
Broadband Customer Growth
Fixed Line Customer Growth
+43
4,370
2,1091,974
4,366
+0.1%
+0.3%
+10.1%
Net adds (in thousand)
+68.4%
532
316
UniFi
+37
2,011
+49
+68
384
4,361
2,028
427
+43
+17
4,353
2,066
+38 +56
483
4,359
24
*Call Usage Only ** Streamyx Net ARPU *** Blended ARPU
ARPU (RM) 1Q12 2Q12 3Q12 4Q12 1Q13
Fixed Line (DEL)* 34 35 34 32 32
Streamyx Broadband** 79 79 80 81 82
UniFi*** 181 178 181 181 178
ARPU
Physical Highlights as at 1Q2013
Strong Broadband growth led by Unifi, Stable ARPU
16%
74%
10%
Core Access Support System
189 168
1Q12 1Q13
98
68
1Q12 1Q13
16%
54%
30%
Core Access Support System
21.2 20.7
18.2 17.5
19.3 22.5
10.211.0
7.56.0
6.1 5.63.9 3.32.2 1.3
1Q12 1Q13
Bad Debt
Marketing Expenses
Supplies & material
Maintenance Cost
Other operating cost
Manpower cost
Direct cost
Dep & Amortisation
RM mn
1Q2013 Highlights: CAPEX & OPEX
Business As Usual (BAU)
HSBB*
4.1
2.8
Note: * gross CAPEX
BAU Capex / Revenue
Cost % of Revenue ¹
Total Cost / Revenue ( %)
1 Revenue = Operating Revenue + Other Operating Income
RM mn
Note: The classification of cost is as per financial reporting
1Q13
7.96.9
HSBB Capex / Revenue
1Q13
RM2,138.4
88.7%
RM2,157.3
87.9%
% of Revenue
25
6,894.8
165.2
8,513.7
5,130.2
1,202.6
2,129.4
51.5
15,573.7
6,808.8
1,740.9
466.1
3,738.7
863.1
6,622.2
3,545.5
2,010.2
1,066.5
186.6
14,637.6
749.5
15,573.7
7,098.9
174.3
8,485.8
5,139.4
1,191.6
2,082.6
72.2
15,759.0
7,151.1
2,063.5
444.0
3,759.1
884.5
6,548.0
3,025.1
2,209.2
1,313.7
603.1
14,383.8
772.1
15,759.0
As at 31 Mar 2013
Shareholders’ Funds
Non-Controlling Interests
Deferred & Long Term Liabilities
Long Term Borrowings
Deferred Tax
Deferred Income
Derivative financial liabilities
Current Assets
Trade Receivables
Other Receivables
Cash & Bank Balances
Others
Current Liabilities
Trade and Other Payables
Short Term Borrowings
Others
Net Current Assets
Property Plant & Equipment
Other Non-Current Assets
RM MillionAs at 31 Dec 2012
26
1Q2013 Highlights: Group Balance Sheet & Key Financial Ratios
31 Mar 13 31 Dec 12 31 Mar 13 31 Dec 12Return on Invested Capital 6.79% 6.67% Gross Debt to EBITDA 2.25 2.10
Return on Equity 13.38% 12.31% Net Debt/EBITDA 1.08 0.87
Return on Assets 5.39% 5.17% Gross Debt/ Equity 1.04 1.04
Current Ratio 1.09 1.03 Net Debt/ Equity 0.51 0.49
WACC 6.04% 6.10% Net Assets/Share (sen) 198.4 192.7
31 Mar 1331 Dec 12
1
Based on Normalised PATAMI2
1
31 Dec 1231 Mar 13
2
Based on Normalised EBIT1
Any queries please email to : Rohaila Mohamed Basir
Investor RelationsTelekom Malaysia Berhad
•Investor Relations• Level 11 (South Wing)• Menara TM•Jln Pantai Baharu •50672 Kuala Lumpur, Malaysia • Tel (603) 2240 4848/ 7366 / 7388