Overall, TM was resilient amid a challenging environment ... · 2016 - 2017 2018 onwards Launch and...
Transcript of Overall, TM was resilient amid a challenging environment ... · 2016 - 2017 2018 onwards Launch and...
Analyst Briefing
3 July 2018
Telekom Malaysia Berhad
Company Update
AGENDA
2
Background
2018 Headline Key Performance Indicators (KPI)
Performance Improvement Programme 2018 (PIP 2018)
1
2
3
4 New Broadband Plans
Given evolving market dynamics and operational environment, our financial
performance as of 1Q2018 remains challenging
• Increasing % of convergence
households
• Implementation of initiatives and
studies relating to increasing
productivity, ie workforce and
sweating assets
• Continued investment for long-
term growth – cost and CAPEX in
line with expansion plans
2.96
2.85
1Q2017 1Q2018
RM
bn
Revenue-4.0%
311.9
219.7
1Q2017 1Q2018
RM
mn
Normalised EBIT
-29.6%
Twin Core
Data Centre
Vertical
Solutions
NGBH™Hub
Ecosystem
Latest Offerings 2017 - 2018 Challenges across all customer clusters
affected 1Q2018 revenue
3
1Q2018 Recap Initiatives undertaken
unifi Home unifi TV
unifi Mobile unifi Wifi
We anticipate the headwinds to persist this year, changing the landscape. Thus, we are
revising our 2018 Headline KPIs
4
1.
3.
2.
4.
Challenges
Revenue Growth (%)
- 1 to FLAT
EBIT (RM)
Approximately
RM1.0 billion
Customer Satisfaction
Measure*
72
2018 Headline KPIs
INTENSIFYING
COMPETITION
POTENTIAL
BROADBAND
PRICE REVISION
REGULATORY
CHANGES
INCREASING COSTS
Revised Capex Guidance 2018:
20-22% of Revenue
*Global average 2017: 68
How we intend to adapt: our 4th wave of Performance Improvement Programme
(PIP 2018)
5
WAVE 1.0WAVE 2.0
WAVE 3.0
2006 - 2008 2009 - 2012 2013 – 2017
2018 - 2020
WAVE 4.0
• Declining voice segment
• Moderate industry growth
outlook
• Changing business
dynamics
• Maturing of products and
customer expectations
• Continued voice decline
• Demerger challenges
• Massive HSBB undertaking
• Potential Broadband price
revision
• Intensifying competition
• Increasing Regulatory
pressures
• Sustaining profitability
• Stabilise current business
• Revenue turnaround
• Boost execution capacity
• Improve efficiency
• Transform into
Information Exchange
and embark on
Convergence strategy
• Move customers up the
value chain
• Achieve best practice
cost and capital
efficiency in key areas
• Grow the top line
• Pursue cost and capital
improvements
• Build enabling
foundations
• Segment-based
management of core
business
• Revenue uplift and
monetisation
• Protect our base with lean
cost structure
• Transforming our business
operations through Digital
• Improve employee
productivity and efficiency
Challenges
Initiatives
*incorporating Perfexe10
6
Four pillars of PIP2018 to achieve our targets
1 432
PERFORMANCE IMPROVEMENT PROGRAMME 2018
PIP 2018 GOVERNANCE
A dedicated PMO team has been established to closely track & monitor the execution
INCREASED
PRODUCTIVITY
IMPROVED
CASH FLOW
SUSTAINED
PROFITABILITY
REVENUE
UPLIFT
Today’s Offering Entry level unifi
30Mbps
@ RM179
30Mbps
@ <RM100
> 40% lower than current
price
7
Affordable entry level unifi @ 30Mbps for B40 households available for pre-booking
starting 15th July 2018 at unifi.com.my
2010 - 2015
2016 - 2017
2018 onwards
Launch and initial years of
Broadband
Improvement Plan (BIP)
New
‘turbo’ plans
10Mbps
Basic unifi TV channels
30Mbps
All unifi TV channels (3x original speed)
More than
double the
speed
RM199 RM199 RM199
RM19.90 RM6.63(67% reduction of
original unit price)
8
RMx.xx(xx% reduction of
original unit price)
unifi ‘turbo’ plans offering much more than double the speed starting 15th August 2018 for
existing customers. New customers signing up to existing unifi plans shall enjoy the upgrade
in 2019
Note: Subject to technical availability and T&C
• Broadband speed
enjoyed
• Monthly bill
• Unit price
(per Mbps)
9
The unifi ‘turbo’ plans shall catapult Malaysia beyond majority of our regional peers
Unifi new package vs Regional Peers
Philippines
Singapore
Malaysia
Thailand
Vietnam
Bandwidth Speed
Indonesia
Pri
ce P
er
Mb
ps
Brunei
Malaysia
Unifi ‘turbo’
Malaysia
Key strategic
areas
ILLUSTRATIVE
Source : TM Internal analysis and industry sources. List non-exhaustive
Key Takeaways (1/2)
10
Revenue Growth (%)
- 1 to FLAT
EBIT (RM)
Approximately
RM1.0 billion
Customer Satisfaction
Measure*
72
2018 Headline KPIs
1
43
2
INCREASED
PRODUCTIVITY
IMPROVED
CASH FLOW
SUSTAINED
PROFITABILITY
REVENUE
UPLIFT
PIP 20181 2
Revised Capex Guidance 2018:
20-22% of Revenue
*Global average 2017: 68
Key Takeaways (2/2)
11
NEW unifi plans3
unifi ‘turbo’
plans
Entry level unifi
30Mbps
@ <RM100
> 40% lower than current
price
much more
than double
Special Upgrade
for pre-unifi
Re-launching
unlimited
postpaid mobile
Starting
15th
July 2018
Starting
15th
July 2018
Starting
15th
Aug 2018
Starting
15th
July 2018
Thank you!Corporate Finance & Investor RelationsLevel 11 (North Wing), Menara TMJalan Pantai Baharu50672 Kuala LumpurMalaysiaTel: (603) 2240 4848/ 7366 / 7388www.tm.com.my/[email protected]