COMPANY UPDATE & FINANCIAL HIGHLIGHTS 2011
8 May 2012
27th Annual General Meeting
1.1
4.2
12.4
60.1%
33.5%
1.11.21.4
Cash Balance (RM bn)2.1 3.5 3.5
2008
Capital Expenditure, excluding HSBB(RM bn)
Our capital management approach is guided by two major principles :
Striving to optimize capital productivity and ROIC
Creating shareholder value with strong commitment to dividend policy
1 TRS: Source Bloomberg2 After interim dividend paid in September 2011 (RM351mn), and final gross dividend 2010 & capital distribution paid in June 2011 (RM1,037.4mn)
16.7 14.1
2009 2010
12.8
Focus on Shareholder Value Creation
1Total Return to Shareholder (TRS) 7.7% 42.9% 24.0%
NormalisedEBITDA Margin 33.1%34.6% 34.0%
Capex / Revenue ratio( %)
2011
2
TM 27h AGM 8 May 2012 2
Segment Operator
Total Return to Shareholders*
1M 3M 12MSince demerger
(25th Apr 08)
Fixed
TM 3.3% 11.8% 52.7% 175.9%
China Telecom -3.1% -3.8% -12.7% -15.2%
KT -5.5% -3.2% -8.4% -15.5%
PCCW 2.5% 25.2% 1.4% 18.9%
Tata Comm 2.6% -5.1% -10.9% -52.8%
SK Bband -5.2% -1.0% -21.0% -61.8%
Median -0.3% -2.1% -9.7% -15.4%
* As at 25 April 2012
Source : Bloomberg; IR Unit Analysis
TM Provides Amongst Highest Return to Shareholders
Comparison against regional fixed operators
TM 27h AGM 8 May 2012 3
TM Provides Amongst Highest Return to Shareholders
1 For the period since demerger (25/4/2008 to 25/4/2012)
12 3
1
Source: Bloomberg
4TM 27h AGM 8 May 2012
Comparison against FMBKLCI 1
Key FY 2011 Highlights
•Revenue growth of 4.1% vs. FY2010 to RM9.15bn
• Normalised EBITDA Margin at 33.5%
• Customer Satisfaction Measure 70
2.5%
32%
4.1%
33.5%
>70
• More than 1.9mn broadband customers in total, a growth of 12.3% vs. 2010
•Activated over 200,000 customers activated in 2011, totalling 236,501•Takeup rate >20%
Achieved all Headline KPI’s for 2nd year
Maintained Broadband Leadership:
AchievementFY2011
Headline KPI
TM 27h AGM 8 May 2012
5
564 635
643 556
2010 2011
Operational Non-Operational
6
Financial Highlights
Total Revenue
RM mn
PATAMI
RM mn
8,791 9,151
2010 2011
+4.1%
+12.6%
1,207 1,191
2,924 2,9593,086 3,108
Reported EBITDA Normalised EBITDA
2010 2011
EBITDA
RM mn
+5.5% +5.0%
TM 27h AGM 8 May 2012
Positive growth across the board
Voice44%
Data20%
Internet19%
Others17%
Voice47%
Data18%
Internet18%
Others17%
1,561 1,6532,001
2009 2010 2011
1,521 1,754 1,819
2009 2010 2011
4,046 3,863 3,734
2009 2010 2011
Voice41%
Data20%
Internet22%
Others17%
VoiceDataInternetRM mnRM mn RM mn
20112010
7
Total Revenue
-7.7%
-3.3%+19.6%
+3.7%
+28.2%
+21.1%
2009
TM 27h AGM 8 May 2012
Strong growth in Internet revenue
2,06910,982
19,799
2009 2010 2011
4,321 4,334 4,112
33 237
0
1,000
2,000
3,000
4,000
5,000
2009 2010 2011
DEL UnifiNet adds (in thousand)
1,431 1,680 1,686
33 237
0
500
1,000
1,500
2,000
2,500
2009 2010 2011
Streamyx Unifi
8
Broadband and Fixed Line
WiFi Hotspot Zones
Broadband Customer Growth Fixed Customer GrowthIn thousand
In thousand
1,431
4,321 4,367 4,349
+856.9%
+80.3%
+12.3%
+34.4%
+282
1,7131,923
+210
-0.4%
+0.6%
TM 27h AGM 8 May 2012
Broadband growth driven by Unifi
- THE GAME CHANGER
1,160,000 premises, covering 77 exchanges
activated 236,501 customers
78 IPTV channels
1,198,000 premises, covering 81 exchanges
activated close to 347,000 customers
87 IPTV channels
Global success story: Received recognition, highest in SEA, Top 10 in Asia Pacific (source: FTTH Council Asia Pacific)
On track to deliver 1.3 million premises passed by end 2012 covering 95 exchanges
Gross capex spent: RM4.6bn
9TM 27h AGM 8 May 2012
as at 31 December 2011 as at today..
Run rate at >25,000 per month, 41% new customers never with TM before
HSBB Access Agreements signed with 4 access seekers; 25 agreements with property developers
Teaming With Passion Increased collaboration Talent Development initiatives Enhance capabilities & empowerment
Overall Operational Enhancements
Our People
Our Customers Project SMILE TOP Project, iCare Prime TM Point transformation TRI*M Index score of >70 Improved response times 2012 as Year of Customer Experience
Our Products Attractive product offerings across segments
Unifi as the game changer TM as Information Exchange - ICT-BPO Malaysia’s Broadband Champion
TM 27h AGM 8 May 2012
A holistic transformation of TM by improving our processes, people
and products to enhance customer experience
10
Awards & Recognition
BEST WHOLESALE ETHERNET SERVICE
APAC 2011
PIKOM 25TH ANNIVERSARY GALA DINNER & ICT LEADERSHIP AWARDS 2011•ICT Organisation Excellence Award•ICT Personality of the Year
NATIONAL ANNUAL CORPORATE REPORT AWARDS (NACRA) 2011•Most Outstanding Annual Report of the Year – Platinum Award•Industry Excellence Award for Main Board Companies in the Trading and Services Category•Best Corporate Social Responsibility Award – Silver Award•Best Annual Report In Bahasa Malaysia – Silver Award •Best Designed Annual Report – Silver Award
CIMA ENTERPRISE GOVERNANCE AWARDS 2011•Second Runner-Up in the Overall Category•Merit Award for Corporate Social Responsibility
TM 27h AGM 8 May 2012 11
Aspiration to be an ICT-BPO powerhouse for the region - encompasses data centre business, cloud computing, business process outsourcing, Telepresence Exchange
TM to be aggregator of aggregators, building the foundation and enhancement of services
ICT-BPO Powerhouse
New Media Aspiration to be Malaysia’s hub for all Content, Application and Directory Services by 2015
To deliver world-class services to the mass market customer, to multi-screen devices, to enhance their work- and lifestyle
Broadband Championship
Maintain position as Malaysia’s Broadband Champion – Streamyx & Unifi
Continue to roll out HSBB as per the PPP Agreement
TM as catalyst for everyone to connect, communicate and collaborate and
transformation into an Information Exchange.
The Road Ahead & Business Priorities 2012
Year of Customer Experience 2012
From both product and service delivery perspectives
Continue to improve our end-to-end processes - from sales to delivery to installation and service provisioning under ACE programme - “Achieving Customer Experience”.
Continue to address ‘pain points’ in service delivery while focusing on customer and network-facing improvements.
TM 27h AGM 8 May 2012 12
THANK YOU
•Investor Relations• Level 11 (South Wing)• Menara TM •Jln Pantai Bharu •50672 Kuala Lumpur, Malaysia • Tel (603) 2240 4848/ 7366 / 7388
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