28 Aug 2019

TM performance for 1H2019

TM performance for 1H2019 Article Header
Financial Result

Telekom Malaysia Berhad (TM) today announced its financial results for the first half ended 30 June 2019.

Financial and Operational Highlights 1H 2019 (Year-to-Date (YTD) June 2019 vs Year-to-Date (YTD) June 2018):

  • Group Revenue of RM5.55 billion, 4.1% lower against 1H2018 – in line with market guidance- mainly due to lower contribution from all lines of products except data services.
  • Group Reported Earnings Before Interest and Tax (EBIT) for 1H2019 grew 75.0% YTD at RM777.9 million, from RM444.5 million in 1H 2018, on the back of lower operating cost, from the Group's various cost optimisation initiatives. 
  • Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 63.1% YTD to RM422.5 million compared to RM259.1 million.
  • The total capital expenditure (CAPEX) was in line with guidance at 8.1% of revenue or RM450.0 million.

 

unifi updates:

  • ​​​Increased YTD convergence penetration to 56% of TM Households
  • ​Higher net addition for unifi with more than 2.16 million broadband customer base, comprising 1.34 million unifi and 823k Streamyx customers. Completed Broadband upgrade programme in April 2019.
    • ​unifi customer base continues to grow as more customers are moving up the value chain by having triple-play services (3P).
  • ​#khabarbaik customer experience related initiatives in 1H2019:
    • Streamlined all Streamyx packages to a new unifi Lite plan at a discounted price at RM69/month for existing Streamyx customers.
    • Introduced unifi Air to elevate the internet experience of existing Streamyx customers residing in TM's LTE coverage areas
    • Launched an All-in-one app; myunifi for a hassle-free experience in managing unifi account.
    • ​​Implemented 24-hour unifi installation initiative to enable new customers to set an appointment within 24 hours after registration.

 

TM ONE updates:

  • Enabling digital transformation of industry verticals and Public Sector to be IR4.0 ready
  • Completed its Twin Core Data Centre with the launch of Klang Valley IP Core Data Centre (KVDC) in Cyberjaya.
  • Started to enable the delivery of 21st century education to schools nationwide
  • Launched Ten (10) Transformative Smart Solutions (10T) to enable a more Digital Society, Digital Business and Digital Government.
  • Established cross-industry strategic digital collaborations to facilitate partners' digital transformation journey:
    • Collaborated with the Government to accelerate awareness on Industry4WRD Readiness Assessment (RA) programme and the national initiative for Industry Revolution 4.0 (IR4.0).
    • Partnered with Petronas Dagangan Berhad (PDB) to upgrade over 1,000 Petronas stations nationwide with the next generation network infrastructure.
    • Appointed by E&P O&M Services Sdn Bhd (EPOMS), a wholly owned subsidiary of PETRONAS Carigali Sdn Bhd, as the official technology collaborator in providing end-to-end digital solutions for a more connected workforce and data management, and to digitalise its Operations and Maintenance (O&M) solutions.
    • ​Strategic Partnership with Ministry of Rural Development for Desa Pintar Programme to enhance internet coverage in rural areas towards empowering rural entrepreneurs to market their products and services via digital platforms.

 

TM GLOBAL updates:

  • TM as the National Telecommunication Infrastructure Provider continues to serve as the industry backbone, connecting Malaysia to the world via its solid infrastructure.
  • Strengthening its position as the trusted accelerator of business growth, TM GLOBAL serves more than 100 licensed operators in Malaysia including all major telcos leveraging on its extensive backhaul coverage and existing collaborations.
  • TM GLOBAL connects Malaysia to the world via more than 20 direct connectivity of its submarine cables systems - spanning over 190,000 km - to more than 60 countries.  
  • Under its regional hub's Content Localisation initiative, TM GLOBAL has brought 18 global players to localise their content in Malaysia.

 

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Dato' Noor Kamarul Anuar Nuruddin, Group Chief Executive Officer, TM, commenting on the results:

"We continued to face challenges in 1H 2019. However, our cost optimisation efforts continue to show results and we will keep the momentum on profitability going. We shall navigate the challenges on revenue through stronger focus on customers. We will also continue to serve as a strategic partner of the National Fiberisation Connectivity Plan (NFCP) backed by our solid network infrastructure."

Our CAPEX is well within guidance as we continue to optimise investment for growth and quality improvement to better serve our customers.

We will place stronger focus on our customers and this is evidenced in a number of initiatives that we have implemented thus far. We recently announced our latest #khabarbaik on the introduction of unifi Air, the new unifi Lite entry package and Streamyx repricing to reward existing customers and attract new ones onboard. We also pledged our commitment on improved service delivery, such as the implementation of 24-hour installation for new unifi sign-up, within 2-hour customer support, and a new myunifi app. The announced (copper) network upgrade is also ongoing in our commitment to enhance the overall broadband customer experience.

On TM ONE, we look forward to more collaborations with strategic partners and customers in the enterprise and public sector towards enabling digitalisation and smart solutions. This is true to our role as the enabler of Malaysia's Digital Nation aspiration in this era of IR4.0."

 

Prospects for the Financial Year Ending 31 December 2019

The Group's performance improvement initiatives and efficient cost management continue to stabilise our profitability. Our focus remains toward our customers, and to strengthen the Group's performance by investing to improve customer experience, increase customer acquisitions across all segments and grow our revenue.​

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30 May 2019
TM PIP2019-2021 on track

1Q 2019 Profit Improves with Implementation of Initiatives Telekom Malaysia Berhad (TM) today announced its financial results for the first quarter ended 31 March 2019.   Financial and Operational Highlights 1Q 2019:* Group Revenue of RM2.78 billion, 2.4% lower year-on-year (YoY) due to a decline in voice, Internet and multimedia services and non-telecommunication related services revenue. Group Reported Earnings Before Interest and Tax (EBIT) at RM504.8 million, doubled YoY from RM195.6 million in 1Q 2018, mainly due to reduction in operating costs. Stripping off some non-operational items, such as unrealised foreign exchange loss on international trade settlement, Group Normalised EBIT also more than doubled to RM513.0 million from RM206.6 million last year. Group Reported Profit After Tax and Non-controlling Interests (PATAMI) jumped 96.2% YoY from RM157.1 million in 1Q 2018 to RM308.3 million, whilst Group Normalised PATAMI more than doubled to RM296.4 million. The total capital expenditure (CAPEX) for 1Q 2019 was in line with guidance at RM151.0 million, or 5.4% of revenue. By asset type, access comprised 67.0% of total spending, followed by core network at 18.0% and 15.0% for support systems * 1Q2019 Results are after incorporation of impact from the adoption of Malaysian Financial Reporting Standard 16 Leases (MFRS 16) unifi updates: Increased Convergence penetration to 56% of TM Households 2.19 million broadband customer base comprising 1.32 million unifi and 871k Streamyx customers. Completed Broadband upgrade programme in April 2019: 973,000 unifi customers upgraded to 10 times existing speed 266,000 Streamyx customers in unifi coverage areas upgraded to unifi ​226,000 Streamyx customers in non-unifi coverage areas upgraded to 2 times existing speed where technology permits Showcased the nation's first pre-5G via Time Division Duplex (TDD) technology as part of unifi's journey towards powering the nation with 5G Customer experience related initiatives 1Q2019: ​Launched #khabarbaik movement ​Introduced simpler and more affordable broadband and mobile plans ​Initiated 24-hour unifi service installation ​​Extended the operations of selected TMpoint outlets to 7 days a week TM ONE: Expanded its digital infrastructure with the launch of Klang Valley IP Core Data Centre (KVDC) in Cyberjaya completing TM ONE's Twin Core Data Centre; certified by the Uptime Institute as Tier III in design and in constructed facility Established cross-industry strategic digital collaborations to facilitate partners' digital transformation journey TM GLOBAL: Continued to fortify the industry backbone and connecting Malaysia to the world​ ​ Imri Mokhtar, Acting Group Chief Executive Officer / Chief Operating Officer commenting on the results: "As expected, revenue challenges continued to persist into the first quarter of the year, with intensifying competition and price erosion. However, I'm pleased to report that our Performance Improvement Programme 2019-2021 (PIP2019-2021) is yielding results. We recorded improved operational efficiency and increased profitability. Our operating Expenditure (Opex)/Revenue also improved by 11.4 percentage points, whilst profit for the quarter also doubled mainly from the cost optimisation efforts undertaken to counter revenue decline. Our CAPEX spending was lower compared to 1Q2018 and within our guidance, as we continued to sweat our assets and optimise our network. We expect the industry and competitive landscape to continuously evolve. We remain focused on delivering our strategies of accelerating convergence and empowering digital to enable a Digital Malaysia; whilst we strengthen our resilience with our PIP initiatives and improve on customer experience."​   Prospects for the Financial Year Ending 31 December 2019 The market is increasingly competitive, with players exploring opportunities to sustain and grow their business. We saw the Performance Improvement Programme 2019 – 2021 (PIP2019-2021) yield improved profitability for the Group in Quarter 1, 2019. In the coming months, we will continue to focus on our strategic pillars of "Converged Services", "Simple and Digital" and "Lean and Lower Cost" in our daily operations to drive our performance and generate more value.

27 Feb 2018
TM on course to accelerate convergence and empower digital to expedite national broadband adoption; continues value creation

Key Highlights of Financial Year (FY) 2017 vs FY 2016:   Performance FY 2017vs FY 2016 o FY 2017 Group Revenue at RM12.09 billion o Group Operating Profit (Earnings Before Interest and Tax (EBIT)) at RM1.09 billion; whilst Normalised EBIT was RM1.19 billion o Group Reported Profit Before Tax (PBT) rose 14.1% to RM1.05 billion o Healthy Group Reported Net Profit (PATAMI) growth of 19.8% at RM929.7 million; Normalised PATAMI growth of 1.8% at RM863.2 million o Delivers dividend commitment - declares 2nd interim dividend of 12.1 sen per share or RM454.7 million; total dividend payout stands at 21.5 sen per share or RM808.0 million o Sustained customer satisfaction with Customer Satisfaction Measure (TRI*M index) score of more than 73, above global telco average of 66   Operational Highlights o Consolidated unifi brand for converged lifestyle services  o Achieved more than 1.1 million unifi (Home and SME) customers o Launched unifi Mobile #BEBAS and mobile@unifi app - unifi Mobile TM Household penetration at 9.8%     Telekom Malaysia Berhad Group of Companies (TM Group) today announced its results for the financial year ended 31 December 2017. The Group’s 2017 performance was mainly driven by Internet and multimedia services. Group revenue stood at RM12.09 billion on the back of higher internet revenue contribution, which rose 8.3% against FY 2016, to RM3.97 billion; contributing 33% of total revenue.   Speaking at the press conference after announcing the Company’s 2017 full-year financial results, Dato’ Sri Mohammed Shazalli Ramly, Group Chief Executive Officer, TM said: "2017 was a challenging yet transformational year for TM. We stayed focused on our Key Performance Indicators (KPI) and Key Happiness Index (KHI), driven by our Perfexe 10 aspirations. The holistic Perfexe 10 execution approach drove us to implement our high priority plans whilst accelerating convergence and empowering digitisation. Perfexe 10 simplifies and serves as a guide to all of our business operations while we closely track the progress of each plan and evaluate specific initiatives to ensure we execute in a timely manner. Although Perfexe 10 is a long term plan, we are pleased by the progress of each business thus far; where we have rebranded our business clusters, with unifi representing lifestyle offerings for homes, individuals and Small Medium Enterprises (SMEs); TM ONE offering end-to-end converged solutions to business verticals in the enterprise and public sector space; and TM GLOBAL positioned to accelerate the digital opportunities of domestic and international telecommunications.” Dato’ Sri Shazalli went on to comment, “Overall, TM was resilient in a challenging environment, delivering healthy revenue and profitability. We are pleased with the market’s response to all the initiatives that we implemented during the year. We saw strong customer traction in the home and mobile space. The recently launched unifi mobile #BEBAS, broke away from convention - where our customers are now liberated to use our mobility service relevant to their needs - and fully on digital, showed very encouraging performance.” “TM Group remains at the leading edge of enabling the country’s digital economy via our broadband deployment for the nation and in bridging the digital divide. In our unique role as protector of national interest, the Group’s achievements thus far have been numerous. Through our products and services, we have delivered countless benefits to not only our customers, but all Malaysians. We now have a converged nationwide coverage of unifi which includes broadband, mobility and wifi. As at end 2017, we recorded a total broadband customer base of more than 2.3 million customers. Our main broadband service offering, unifi for home and SMEs achieved more than 1.1 million customers, and unifi Mobile achieved 9.8% penetration of TM’s households.  We have also been fully supportive of the Government’s objective towards improving the affordability, reach and quality of broadband services. In 2017, under the implementation of the Broadband Improvement Plan (BIP), we have successfully enhanced Malaysian’s digital experience by doubling the broadband speed at the same price to approximately 1.0 million Malaysian homes and SMEs. We also launched unifi edu pack for the youth, specifically students at institutions of higher learning and unifi e-biz pack for e-entrepreneurs. Earlier this year, we launched wifi@unifi app that enables all Malaysians to access the Internet via wifi. The app locates wifi hotspots and connects users to over 9,400 hotspots across Malaysia. To further expand our reach to customers, TM ONE collaborated with a renowned restaurant chain to provide high-speed broadband services and solutions including WiFi access points to more than 1,000 of their outlets nationwide. In addition, TM GLOBAL plays the role of positioning Malaysia and TM as the ideal gateway for the world to the ASEAN region; and submarine cable expansion is a key element in achieving this. Three (3) new submarine cable systems namely Malaysia-Cambodia-Thailand (MCT), Nusantara Gateway (NuGate) and Sistem Kabel Rakyat 1Malaysia (SKR1M) have been developed and were completed last year. TM GLOBAL has also set up a new international Point of Presence (PoP) in Marseilles, France, for service providers who need connectivity to Europe. To further enhance our customers’ enjoyment of our wide array of entertainment, and in support of the development of the Malaysian football scene, we are bringing the proud moments of the national football league to all Malaysians and football fans as the title sponsor for “unifi Liga Super Malaysia” and “unifi Piala Malaysia” as well as co-sponsor for Piala FA until 2025. Our customers can now enjoy exciting football content via unifi TV and across all screens, accessible via unifi PlayTV app,” he elaborated. Group Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at RM3.58 billion, lower by 5.6% against last year primarily due to higher operating costs mainly related to mobile services. After excluding non-operational items such as foreign exchange loss on trade settlements and placements, Normalised EBITDA stood at RM3.67 billion, lower by 3.9% compared to 2016. Group EBIT for FY 2017 was at RM1.09 billion, 5.3% lower against last year from the higher operating cost despite reduction in depreciation and amortisation charges. Stripping off the foreign exchange loss on international trade settlements and placements and loss on disposal of financial assets, Group Normalised EBIT stood at RM1.19 billion, 0.2% higher than the previous year.  Group Reported Profit Before Tax (PBT) rose 14.1% to RM1.05 billion, against RM918.5 million last year. TM Group reported a healthy 19.8% growth in Group Reported Profit After Tax and Non-controlling Interest (PATAMI) against FY 2016 at RM929.7 million as compared to RM776.0 million recorded in FY 2016 primarily due to foreign exchange gain on the Group’s borrowings in FY 2017. Excluding this, Group Normalised PATAMI was 1.8% higher at RM863.2 million.  The total capital expenditure (CAPEX) for FY 2017 as a percentage of revenue was 22.8%, amounting to RM2.76 billion, which was lower than guided in 3Q2017, due to internal re-prioritisation of projects. By asset type, access comprised 42% of total spending, followed by core network at 34% and the remaining 24% was for support systems.  “At the same time, it is gratifying to see that our focus on customer experience continues to place us amongst the trusted brands in Malaysia. In 2017, sustained customer satisfaction resulted in our achieving Customer Satisfaction Measure (TRI*M index) score of more than 73, exceeding the global industry’s average of 66 for the seventh consecutive year,” added Dato’ Sri Shazalli. In line with its dividend policy, the Group is declaring a second interim single-tier cash dividend of 12.1 sen per share or RM454.7 million for the financial year ended 31 December 2017. Together with the 1st interim dividend of 9.4 sen per share amounting to RM353.2 million which was paid on 13 October 2017, the total dividend payout is 21.5 sen per share, or RM808.0 million. The second interim dividend will be paid on 13 April 2018.  Accelerating Convergence To Accelerate Convergence, the Group has consolidated its service brands into a single identity. With this strategic repositioning, unifi is now the one and only brand in Malaysia that offers truly comprehensive suite of converged services – home, mobile, wifi and TV, across all segments - fixed, mobile and nomadic - anytime, anywhere on any device; reflecting what true convergence means to the Group.  On the business front, the Group has also converged its service offerings for enterprise and public sector customers, presenting a comprehensive set of solutions to meet all their business needs. With the consolidation, TM ONE is now the one and only trusted digital partner and enabler for enterprises and the public sector to fully realise their digital opportunities. The new business cluster enables private enterprises and government agencies to enhance the way they work, with ‘Consider IT Done’ as its driving force and attitude. In 2017, TM ONE placed more emphasis on an approached termed as “verticalisation”, converging customised vertical or industry relevant solutions, to unleash their full digital potential. Top-priority verticals have been identified for immediate revenue generation. The Group foresees higher traction in its Data Centre business once its Klang Valley Core Data Centre (KVDC) is fully completed later in 2018. Together with the already running Tier III Iskandar Puteri Core Data Centre (IPDC), the inter-connected data centres form a Twin Core Data Centre solutions for high redundancy which are connected via high speed fibre optic connectivity, designed for higher fault tolerance and enhanced security. The Group also foresees potential for new growth opportunities in TM GLOBAL. TM GLOBAL’s focus moving forward is to continue accelerating its business growth by generating revenue from other than connectivity services. It also plays a vital role in expanding content localisation initiatives by bringing international content locally to minimise outbound bandwidth and improving customer experience. It enables easier access for businesses, at more competitive pricing. On the international front, we also connect the world via domestic, regional and global submarine cable development and investments with a total of twenty (20) submarine cables with fibre-route of more than 190,000 km around the globe to date. Empowering Digital Empowering Digital entails digitisation (driving productivity via digital) and digitalisation (monetisation of digital businesses), which combined, will enable TM Group to reap the full benefits of improved productivity, enhanced customer experience and monetisation of opportunities presented. In September 2017, TM Group launched unifi.com.my web portal, a single all-in-one customer service absolute portal for interaction on unifi related services, enabling customers to order or upgrade their services, check their usage, pay bills, troubleshoot online as well as chat in real-time with our agents for assistance.  Under its digital empowerment pillar, the Group also launched hub@TM, a one-stop centre for all apps developed for Warga Keluarga TM. A number of new digital applications that serve both its customers as well as employees were developed such as FLOW - an employee engagement application that facilitates better collaboration and responsiveness; GROW - an enhanced tool for employee performance evaluation and assessment; HERO – a complaint support escalation app for Warga Keluarga TM; HELO - a digital onboarding app to kick start new hires’ employment journey; TMmedic - TM Group’s healthcare benefits app; EYES – a tool for employees to alert network team on occurrences that may potentially result in service disruption.  For customers, several apps have been developed to enhance their overall unifi experience such as wifi@unifi - a unifi Wifi locator app; TM Wifi Optimiser – a tool to boost customers’ WiFi performance; mobile@unifi - a gateway to anything unifi Mobile service – from add-ons #pilihapasaja, to reloading #bayarbilabila, purchasing data, calls and SMS #kredittakmati as well as customer support; and unifi PlayTV - an app version of unifi TV for viewers to enjoy world class entertainment and award winning shows, anytime and anywhere. The introduction of these apps is in tandem with TM’s aspiration of ‘Going Digital’ as the Company moves beyond connectivity into new value added digital and smart services. It is part of the Group’s holistic approach covering customer experience, process optimisation and new business opportunities which entails building a digitally aware and smarter workforce. This is in line with its goal to accelerate the achievement of its strategic goals of Accelerating Convergence and Empowering Digital via “Perfexe 10”. 2018 and mid-term Headline Key Performance Index (KPIs) Guidance TM also announces its Headline KPIs for 2018 and the mid-term target respectively. They are revenue growth of 3.5% to 4.0% in 2018, EBIT to maintain 2017 EBIT RM and Customer Satisfaction Measure of 74. For the mid-term, the Headline KPI is revenue growth of 3.5% to 4.0%, EBIT growth of 3.5% to 4.0% and Customer Satisfaction Measure of 75.  Comparison: Quarter-on-Quarter (4Q2017 vs 3Q2017 Results) The 4Q2017 saw Group Revenue at RM3.20 billion, growth of 8.8% QoQ. Group EBITDA was higher by 1.7% at RM893.5 million QoQ on the back of the higher operating revenue. Group EBIT rose 3.4% at RM270.3 million QoQ whilst Group Reported PBT grew 30.6% at RM307.6 million. Group PATAMI increase 30.8% to RM277.0 million compared to RM211.8 million in the preceding quarter. Prospects for the Next Financial Year Ending 31 December 2018 The Group foresees sustainable performance in 2018, despite competition and challenges. This is driven by the new execution model which prioritises its plans towards delivering relevant converged digital lifestyle services and end-to-end business solutions to all its customers.

26 Feb 2019
TM transformation reinforces customer centricity

Telekom Malaysia Berhad (TM) today announced its results for the financial year ended 31 December 2018. In addition, it also introduced its Performance Improvement Programme 2019- 2021(PIP2019-2021). Key Strategic Developments / Key Focus 2019: TM continues on its strategic journey to transform into “New TM” – a customer centric organisation to enable Malaysia’s Digital Nation aspirations through Connectivity and Digital Infrastructure. TM is extending the 4 pillars of Performance Improvement Programme 2018 (PIP2018) (Revenue Preservation & Uplift, Sustained Profitability, Improved Cash Flow and Increased Productivity) through to the next phase. Over the next 3 years, TM will focus on three (3) strategic pillars - Converged Services, Simplification & Digitalisation, Lean & Lower Cost, with its integrated network infrastructure together with its digital platforms and Warga TM as the enablers.   Financial and Operational Highlights FY2018 TM was impacted by persistent headwinds in the industry and operating landscape over 2018. The Group posted a revenue of RM11.82 billion, 2.2% lower from RM12.09 billion in 2017. Internet revenue growth during the year under review was offset by lower data, voice and other services. Group Reported Earnings Before Interest and Tax (EBIT) was at RM64.6 million. During the financial year, the Group has recognised a provision of RM982.5 million for the impairment of fixed and wireless network assets following the continued pressure from challenging business, industry and economic conditions, combined. Group’s Normalised EBIT was RM1.07 billion, within 2018 guidance. PIP2018 initiatives such as cost optimisation yielded improved operating performance despite the lower revenue. Group Reported Profit After Tax and Non-controlling Interests (PATAMI) was at RM153.2 million, whilst Group Normalised PATAMI was RM632.4 million. The total capital expenditure (CAPEX) investment for 2018 was RM2.14 billion, or 18.1% of revenue; which was lower than TM’s full year capex guidance of 19-20% of revenue. By asset type, access comprised 57.4% of total spending, followed by core network at 17.8% and the remaining 24.8% was for support systems. In 2018, investments were focused on expanding connectivity via deployment of broadband ports and mobile coverage, as well as on digital infrastructure for ICT, data centre, cloud and smart solutions. Sustained customer satisfaction with Customer Satisfaction Measure (TRI*M index) score of more than 73, continuing the record of above global telco average of 66. Broadband updates: Increased Convergence penetration 53% of TM Households 2.23 million broadband customer base comprising 1.30 million unifi and 936k Streamyx customers. Updates on 2018 broadband programmes: > 911,000 unifi customers upgraded to 10 times existing speed > 239,000 Streamyx customers upgraded to unifi > 181,000 Streamyx customers upgraded to 2 times existing speed where technology permits  For those yet to be upgraded, TM will continue ongoing discussions with the Ministry and the Malaysian Communications and Multimedia Commission (MCMC) to explore specific funding options, various fit-for-purpose technologies as well as optimising existing industry mechanisms in order to deliver a better broadband experience nationwide. TM ONE: Focused on industry verticals of enterprise and public sector to enable customers’ digital aspiration  Expansion of digital infrastructure with completion of twin core data centre TM GLOBAL Continued to fortify the industry backbone and connecting Malaysia to the world Declares interim cash dividend of 2.0 sen per share or RM75.1 million; with expected pay out date on 12 April 2019. 2019 Guidance: Revenue between low to medium single digit decline, EBIT to be higher than 2018 level and Customer Satisfaction Measure of 74.   Imri Mokhtar, Acting Group Chief Executive Officer / Chief Operating Officer commenting on the results:   “2018 was undoubtedly one of the most challenging times TM has ever faced. We worked tirelessly to address the competitive landscape and industry dynamics, without losing focus on our strategies and organisational mission. We took a big hit but this has only strengthened our resolve to make good on what we need to deliver to all our stakeholders.   We are continuing on our next phase of transformation via the PIP2019-2021 to ensure our resilience and long-term sustainability towards shaping a “New TM” that reinforces customer centricity. The “New TM” does not mean that we are going to emerge as something totally “different”. The “New TM” is TM as you have always known it, in an enhanced state. All that we, as an organisation, have stood for all these years still remain the same and relevant. We have always been at the frontier of each telecommunication technology evolution in the nation. Our vast and deep experience has equipped us with the right tools, people and mindset to elevate Malaysia into a Digital Nation through connectivity & digital infrastructure. The “New TM” will remain as Malaysia’s Convergence Champion for all - consumers and businesses alike.   In transforming to become the ‘New TM” by 2021, we will incrementally and continuously improve on how we do things, in a new and simpler way, in order to serve you better. We will be here for our customers as a one-stop shop, enabling them to access our multitude of offerings and effortless support to fulfil all of their digital lifestyle needs.   Beyond just connectivity, TM ONE, our Enterprise and Public sector cluster will focus and solidify our strength in serving 7 key industry verticals – Banking and Finance, Oil and Gas, Real Estate, Health and Education, Defence and Security, Public Shared Services and Retail. TM GLOBAL, our global and wholesale arm, will continue to serve as the industry backbone, connecting Malaysia to the world via our connectivity and digital infrastructure.   Customer centricity is our true north. Our key priorities this year will be to deliver customer excellence, drive high performance whilst we continue to explore new frontiers of growth through continuous innovation that is inspired by customer insights. We will also work towards futureproofing our people through capability-building, future-skilling and new ways of working. Our philosophy of ‘customers first and simplicity’ will be at the core of everything that we do. On the customer front, we are able to serve our customers better across products from end-to-end with our converged networks of fixed and wireless; connected seamlessly with ICT infrastructure and digital platforms.   In the meantime, we will continue sweating our assets to optimise performance and achieve better focus through convergence. We will leverage on connectivity to defend and grow our core business and partnership ecosystems to explore new businesses. We will also prudently manage our costs to deliver better value for investors, shareholders and stakeholders. With these priorities, we remain committed to deliver the best of our solutions and the best of experience - towards making “Life and Business Easier for a Better Malaysia”.” ​   ​​Prospects for the Next Financial Year Ending 31 December 2019   Year 2018 has been a challenging year for the industry. TM expects the environment to remain challenging, impacting our business operations. TM will accelerate Convergence and empower Digital in line with its transformation that reinforces Customer Centricity. The transformation plan will be anchored on the Performance Improvement Program 2019-2021 and will focus on bringing a convergence digital lifestyle to all Malaysians and on enabling enterprise and public sector industry verticals to realise their full digital potential whilst being the industry backbone, connecting Malaysia to the world.

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