26 May 2022
TM aspires towards a human-centred technology company in delivering digital Malaysia following successful 37th AGM
2021 a milestone first-year of the New TM Transformation
Telekom Malaysia Berhad ("TM" or "the Group") today successfully concluded its 37th Annual General Meeting, with all 13 Ordinary Resolutions and one Special Resolution tabled duly approved by its shareholders.
The Meeting was conducted online for a third consecutive year to allow maximum flexibility for engagement with shareholders. The event saw over 1,000 shareholders attending virtually.
Hosting the proceedings for the first time, Tan Sri Mohammed Azlan Hashim, Chairman of TM's Board of Directors said, "2021 has been a milestone first-year in our New TM Transformation, with the Group setting a solid foundation as a growth-oriented PLC investing for optimum long-term returns for its shareholders, while also continuing its nation-building efforts to realise a truly Digital Malaysia."
Alongside the Board of Directors, key senior leaders including Imri Mokhtar, Managing Director and Group Chief Executive Officer; and Razidan Ghazalli, Group Chief Financial Officer were also in attendance to offer insights into the 2021 Audited Financial Statements and the Group's moving forward business priorities.
"In 2022, we aim to continue growing our operating revenue by strengthening our core business momentum to improve profitability, enabling us to invest for future growth. Our first quarter of 2022 recorded steady revenue growth at RM2.89 billion, an increase of 2.9% from this same period last year, despite heightened competition. We also ramped up our transformation initiatives and delivered profit after tax and non-controlling interests (PATAMI) at RM339.9 million, or 4.4% higher. We will continue to optimise cost and improve productivity in our effort to raise EBIT to more than RM1.8 billion," Imri explained.
He added: "We are intensifying our efforts in the remaining seven months to deliver the next chapter of our Transformation. We will look at a total CAPEX spend between 14-18 per cent of revenue, with spending primarily focused on network expansion and modernisation together with enhancing customer experience."
unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC) proposition, enriched with TV and streaming content. This reflects its commitment to improve its FMC customer experience with better and seamless service. unifi will also grow its SME digital platform as a one-stop service centre for solutions catering especially to SMEs nationwide.
TM Wholesale will continue to enable industry broadband and 4G network via its fibre infrastructure, with the ongoing 5G rollout further strengthening that role. On the international front, it will further serve other OTTs and hyperscalers with connectivity and data centres, moving towards establishing Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions, and edge computing.
TM One, as the sole home-based cloud service provider will also offer end-to-end managed services with robust connectivity and infrastructure. In addition to ensuring data sovereignty and security for the MyGovCloud initiative, TM One will be ramping up its data centres to support the nation's Cloud First agenda.
Recognising that the future is digital, TM has also invested in strengthening its digital services through Credence, a new arm that will focus on expanding the capabilities of enterprises in their digital transformation journey. Helmed by senior leaders from the technology sector, this new business will serve existing TM customers as an end-to-end Cloud and Services solution partner, offering services from tech infrastructure to business insights, IT landscape migration, SaaS, managed services as well as analytics.
While improving connectivity and digitisation solutions to enable a better Malaysia, the human factor remains the true centre of TM's growth agenda.
Imri concluded: "Our aspiration is to evolve towards becoming a human-centred technology company. From our beginnings as just a fixed telco, we are now a converged telco providing voice, internet and data through both fixed and mobile technology, which further delivers content, data centre and cloud services. The next step is to evolve from delivering converged connectivity into a human-centred technology company – delivering lifestyle and business solutions for our customers with innovative digital technology and applications.
"In a market where telcos and other digital players now have a play in almost every solution, customer experience will be the true differentiator in attracting and retaining customers."
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TM supports 5G deployment in Langkawi with its Integrated Operations Command Centre
Deployed the Region’s First Stand Alone (SA) Dedicated 5G network Telekom Malaysia Berhad (TM) is fully supportive of the 5G Demonstration Project (5GDP) currently undertaken by Malaysia Communications and Multimedia Commission (MCMC). The Company has already embarked on a total of 11 use cases in Langkawi and deployed the operations of an Integrated Operations Command Centre (IOCC) which is at the heart of 5G implementation in Langkawi. The IOCC, or also known as 5G Command Centre (5GCC), which is equipped with state-of-the-art technology, is an integrated command centre where the data feed and dashboard monitoring of TM 5G network and use cases in Langkawi are centralised. This 5GDP is recording a number of firsts for TM and the country: The first Telco to deploy SA dedicated 5G network in the country and in the region. The first telco in the region to update our Radio Access Network (RAN) and devices with SA dedicated 5G network. The first Telco in the country to achieve 1.5Gbps for 5G speed tests conducted within its 5G use cases sites. Langkawi is the first Smart Tourism Island in the world equipped with 5G Dato’ Noor Kamarul Anuar Nuruddin, Group Chief Executive Officer, TM said: “We fully support MCMC’s 5GDP and we are currently testing the implementation of a converged 5G core network which allows co-existence of Non-Stand Alone (NSA) (5G enabled on current 4G network) and Stand Alone (SA) dedicated 5G network in Langkawi. SA is the future of the 5G network deployment and this demonstration is crucial to fast track 5G implementation in the country. With the implementation of the SA network in Langkawi for the 5GDP, TM is the first Telco that has deployed the first SA dedicated 5G network in the country and in the region. We are also proud to note that 5G speed tests conducted within TM’s 5G use cases sites have achieved up to 1.5Gbps. I’m also pleased to update that TM is the first telco in the region to update our Radio Access Network (RAN) and devices with SA dedicated 5G network.” “For 5GDP in Langkawi, we have deployed the highest number of 5G use cases among the participating telcos and all the 5G network and use cases sites can be monitored via the dashboard at the 5GCC, where our expert, qualified technical team works 24/7 to monitor the operations. It is also linked to the local authorities and emergency response services which allow for the communities as well as tourists to experience a smarter, safer living. In addition, we open the 5GCC for all other Service Providers to deploy their monitoring dashboards so all relevant data can be centralised for collective insights.” Currently, the 5GCC houses the dashboard for the following use cases: Smart Traffic Light Smart Parking Smart Safety and Security Solutions Langkawi Smart Tourism Dashboard (Smart Tourism App and UNESCO 8K VR) Gerbang Langkawi Platform (for Smart Water Management System, Smart Vehicle System, Smart Retail Analytics, Smart Safety Helmet and Geolocation People Safety Solutions) Backed up by analytics, Artificial Intelligence (AI), Internet of Things (IoT) and data-driven insights, the 5GCC is furnished with advanced integrated security features to serve as a security monitoring centre through closed-circuit television (CCTV) cameras being installed at hotspots on the island. It is also equipped with face and vehicle recognition system that will assist authorities in public safety and surveillance as well as with criminal investigation, crime prevention and citizen protection. It also monitors weather sensors, tsunami alarms, wind speed systems that have been installed at TM’s designated 5G use cases sites in Kuah and Cenang. The control centre empowers local agencies in promoting tourism safety and attractions effectively, unravelling businesses growth opportunities for the local and providing a safer and smarter crowd control for tourists that will help drive forward Langkawi as a Smart Tourism Island. The monitoring dashboards provides real-time data and consolidated information from all the use cases, for example traffic, parking and security conditions of the 5G use cases areas in Kuah and Pantai Cenang, water consumption level, retail footfall and customer emotions data, number of incidents and alerts, among others. In addition, the authorities can receive alerts and notifications, such as distress calls and response via a panic button from the closed circuit television (CCTV) poles deployed with the smart safety and security solution, or alerts during emergencies e.g. accidents at the workplace, missing individuals, detection of unhappy customers at retail outlets and detection of dangerous driving. These alerts enable the authorities to mobilise resources swiftly during any undesirable incidents or emergency situations, thereby improving their ability to react and respond to the Rakyat's needs in a timely manner for any emergencies. “As the national telecommunications infrastructure provider of Malaysia’s Digital Nation aspirations, we are honoured to be given the opportunity to establish this 5GCC which demonstrates our expertise and capabilities in delivering 5G services to Malaysians nationwide. We aspire to not only enable the ecosystem but also plans to be a neutral partner for industry players and collaboration partners towards enabling Malaysia’s Digital Economy. This signifies our support for MCMC’s aspiration in progressing humanity towards improving the quality of lives of the Rakyat. TM, via our innovative and comprehensive products and solutions will continue to work closely with the Government and MCMC to lay the foundation for Industrial Revolution 4.0 (IR4.0) and rolling out 5G nationwide to serve a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government,” he added.
TM's addresses data breach of Unifi mobile customers contact information
Telekom Malaysia (“TM” or “the Group”) has been made aware of a data breach (specific to contact information only) on 28 December involving a limited amount of Unifi Mobile customers’ information. After investigations, TM has found 250,248 Unifi Mobile customers to be affected in this data breach, constituting both individual customers as well as SMEs. The type of data that was breached involved customer names, phone numbers and emails. No other information was breached. TM confirms that the breach has been contained and have taken steps to minimise the potential impact to these 250,248 customers. The specific customers affected have been notified. Customers who have not received any notification are not impacted. TM has also reported this matter to the relevant authorities (National Cyber Coordination & Command Centre (NC4); Department of Privacy & Data Protection (JPDP); and the Malaysian Communications & Multimedia Commission (MCMC)). While additional security measures have been put in place to isolate the risk and protect our customers, we wish to inform that our customers did not experience any service disruptions in this incident. TM is closely monitoring the situation and is conducting additional assessments. We advise customers to take extra precautions when receiving communications from unknown parties, as well as to secure their online information at all times. The privacy and security of TM’s customers remain our highest priority and we take such matters seriously. We will continue to strengthen and ensure our data security framework, policies, systems and processes are continuously benchmarked against Bank Negara Malaysia's Risk Management in Technology (RMiT) standard and ISO27001, as well as other global standards to prevent such occurrences.
TM DELIVERS LANDMARK 2022 PERFORMANCE (FY2022) Revenue up 5.1% at RM12.12 billion; EBIT up 22.2% at RM2.09 billion; PATAMI up 27.7% at RM1.14 billion
FY2022 Key Highlights (vs FY2021) · Operating Revenue grew 5.1% from RM11.53 billion to RM12.12 billion, with growth across all customer segments and product lines · EBIT grew 22.2% from RM1.71 billion to RM2.09 billion, driven by strong revenue growth and improved cost efficiency · PATAMI grew 27.7% from RM0.90 billion to RM1.14 billion, contributed by lower financing cost · CAPEX investment at 20.0% of revenue or RM2.43 billion, highest in 5 years primarily on growth in fibre service and network expansion · Final interim dividend at 7.5 sen per share declared amounting to RM286.6 million, with total dividend of 16.5 sen per share amounting to RM627.5 million for 2022 · ESG rating upgraded, FTSE Russell rated 3.6 from 3.1 in 2021; CDP rated ‘B’ from ‘C’ in 2021. Both above industry average · FY2022 overall performance showed strong results with good trajectory and operational excellence across all lines of business The financial year 2022 (FY2022) performance, ended 31 December 2022, represents Telekom Malaysia Berhad’s (TM) progress of its 3-year transformation programme (2021-2023). Moving into the final year of this transformation phase, TM remains committed to its focus in delivering value to its stakeholders. Operating revenue grew by 5.1% to RM12.12 billion, from RM11.53 billion in 2021, fuelled by demand in connectivity, solutions and infrastructure. TM continued to strengthen its core businesses across Unifi, TM One and TM Global amidst intensified competition in the market. Through revenue growth and improved cost efficiency, TM’s Earnings Before Interest and Tax (EBIT) grew by 22.2% to RM2.09 billion, from RM1.71 billion last year. Profit After Tax and Minority Interest (PATAMI) rose to RM1.14 billion from RM0.90 billion, up 27.7% through higher operating profit and lower financing cost. Capital Expenditure (CAPEX) stood at 20.0% of overall revenue, amounting to RM2.43 billion invested to deliver growth in fibre services, network modernisation and upgrades. Unifi’s continuous growth momentum Unifi continues its leadership in converged solutions of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording a revenue growth of 7.5% from RM5.22 billion to RM5.61 billion contributed by increased number of home and MSME customers. Unifi fixed broadband customers grew by 9.3% and exceeded the 3 million mark in 2022. To celebrate this milestone, customers were rewarded with free viewing of all 72 Unifi TV channels for one month, as well as pay-per-view movie discounts in appreciation for their trust and loyalty. Unifi launched its 5G services in November 2022, offering Uni5G plans to Unifi Mobile postpaid and prepaid customers. 5G will reinforce TM’s converged leadership to provide the widest and fastest all-in-one solution for fixed broadband, mobile service and digital content. Unifi Business’ digital solutions continue to boost and support MSME’s digitalisation needs from cloud storage, eCommerce hub, cybersecurity and digital marketing, serving critical needs from connectivity to digital solutions, accelerating their business growth. TM One drives enterprise-grade innovative solutions TM One reported a 0.5% growth in revenue from RM3.32 billion to RM3.34 billion in 2022, after several years of revenue decline amidst changing market dynamics and competitive landscape. This is attributed to higher recurring revenue and bespoke solutions deployment, as a trusted technology partner for large enterprises and the Government. Utilisation of data centre space and power have also increased in 2022. The twin-core data centre of KVDC and IPDC have obtained Green Electricity Tariff (GET) from TNB as well as Green Building Index (GBI) and Leadership in Energy Environmental Design (LEED) certifications. To strengthen its partner ecosystem, TM One launched ‘5G Sphere’ in October 2022 and today counts on over 70 leading technology and smart solution partners to accelerate the co-creation of 5G use-cases. On the other hand, Credence is advancing enterprise’s ‘cloud-first strategy’ as well as developing technologically-skilled professionals to accelerate cloud adoption in Malaysia. TM Global positions Malaysia forward as a digital hub in the region TM Global (rebranded from TM Wholesale) delivered a strong performance which made a significant contribution to the overall 2022 performance. TM Global’s revenue grew 7.8% from RM2.58 billion to RM2.78 billion, on the back of higher domestic data and international digital demand. Domestically, TM Global is the preferred partner for High-Speed Broadband Access (HSBA) with the highest new installation in 4Q 2022. Advancing the country’s 5G rollout, almost 4,000 fiberisation sites were completed for the year. Internationally, TM Global closed deals from US-based hyperscalers and Asia-Pacific carriers for its wholesale data centre solutions and international data services, elevating Malaysia as a trusted digital hub for the ASEAN region. Commentary and Outlook from Dato’ Imri Mokhtar, TM Group Chief Executive Officer “2022 was a milestone year for TM, tracking well in our transformation with growth across our business segments – Unifi, TM One and TM Global, and cost efficiency improvement. The stronger financial position places TM in a position to deliver better value and benefits for our stakeholders – customers, shareholders, partner ecosystem and community. “TM is committed to continuously invest in shaping a Digital Malaysia through technology that empowers communities, businesses and Government – not just in our core business, but also in new, adjacent growth areas such as cloud, data centre, cybersecurity and platform-services. “Sustainability will also be a domain we strive to make continuous progress. We have seen improvements in TM’s ESG ratings, for example the FTSE Russell ESG score rising from 3.1 to 3.6 in 2022 and also the CDP rating upgrade to ‘B’ from ‘C’ last year, both above the industry average. On governance, TM upholds transparency, disclosure and zero-tolerance to all forms of corruption, receiving the Gold Category in the recent Integrity, Governance and Anti-Corruption Award (AIGA) 2022. “As part of TM’s next transformation to become a human-centred TechCo, we announced a reorganisation in December 2022 to streamline our core businesses and subsidiaries under a new entity named TM Technology Services Sdn Bhd (TM Tech). TM Tech is set to become the main operating entity of the Group with effect from 1 March 2023. This new corporate structure will be the catalyst for the next phase of TM’s transformation to reinforce its fixed-mobile convergence leadership, further improve operational efficiencies and deliver a more seamless customer experience. “On the back of our current business momentum, there are new opportunities in the adjacent growth areas but also industry headwinds in terms of regulatory policy and higher technology costs. We are continuously assessing the impact of industry developments and will work closely with key stakeholders towards providing technology that is accessible to all in this digital era.”
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