ATTACHMENT 1
LIST OF QUESTIONS AND RESPONSES AT THE 38TH ANNUAL GENERAL MEETING (AGM) OF TELEKOM MALAYSIA BERHAD
(TM) HELD ON 25 MAY 2023
PRE-AGM | Total: 26 | ||
Category: Door Gift | Total: 1 | ||
No. | Question | From | Answer |
1. | Q1. Is the company giving any door gift to | 1. Teo Cher Ming | We acknowledged and thank you for your queries and feedback on |
shareholders attending this AGM? | 2. Lee Chew Foong | the provision of gift for shareholders attending the virtual 38th AGM. | |
3. Shamzumi bin Yusof | |||
Q2. This is the 4th year company is not | 4. Tian Wee Yean | The Company continues to believe that the most equitable way to | |
providing gift because of virtual AGM. Please | 5. Yong Joon Fah | reward shareholders is in the form of dividends to be declared yearly | |
reconsider as door gift can be in the form of free | and TM has always been committed to the announced Dividend | ||
unifitv subscription which acts as marketing tool | Policy. | ||
as well. | |||
We further hope for your continuous support as we build on from the | |||
TM Transformation Programme to become a growth-oriented | |||
company, investing in the future for long term sustainable returns to | |||
our shareholders. | |||
Category: Business Strategy & Outlook | Total: 13 | ||
1. | What is the impact of the latest 5G DWN model | Institutional Investor | We are actively involved in discussions with the Government and the |
announcement on TM's plans? | industry, on the implementation and plans for Phase 1 and Phase 2, | ||
through the Task Force chaired by the Government. | |||
In the meantime, TM customers of Unifi Mobile and TM One will | |||
continue to enjoy 5G services and solutions, as the 5G Access | |||
Agreement remains in place. | |||
2. | If there is a 2nd 5G network provider, how does | Husshaini bin Hamid | TM supports the Government's decision to implement Malaysia's 5G |
Telekom respond to this? Is Telekom willing to | over two phases - Phase 1 (80% 5G service coverage by DNB) and | ||
invest in this 2nd 5G network provider? | Phase 2 (shift to two 5G networks) - as announced by the Government | ||
Or Telekom is consider to take up more | on 3 May 2023. | ||
stake/equity in DNB? | |||
TM looks forward to continue playing an active role in the 5G network | |||
implementation, leveraging our nationwide fibre infrastructure, | |||
extensive digital platforms (data centres, edge nodes) and rollout | |||
experience. | |||
1
ATTACHMENT 1 | |||
PRE-AGM | Total: 26 | ||
No. | Question | From | Answer |
3. | With the announcement of DWN for 5G, does | Teo Cher Ming | The existing fibre contract with DNB shall be part of the transition |
the company see any risk/financial impact to | discussions, with 'sanctity of contract' being a key consideration as | ||
the RM 2 billion 10-year deal with DNB and | emphasized by the Government. | ||
what is the capex guidance for DWN if any | |||
While it is too early to determine any direct impact on the RM 2 billion | |||
10-year deal with DNB, we remain positive about our fiberisation | |||
position and our contribution to the Phase 1 (single network) and | |||
Phase 2 (dual network) roll out, leveraging our nationwide fiber | |||
infrastructure and rollout experience. | |||
As for the dual network capex guidance, it is too early to tell. | |||
4. | How much TM pay for the 20% equity stake in | Lew Vooi Hon | On 10 May 2023, TM filed a Bursa Announcement stating that the |
DNB? | longstop date to fulfil the conditions precedent in the Share | ||
Subscription Agreement (SSA) for the subscription of a 20% equity | |||
stake in Digital Nasional Berhad (DNB) had lapsed. As a result, TM | |||
issued a termination notice to DNB, effectively withdrawing its | |||
participation in the equity stake. | |||
5. | Are there any details available regarding | Institutional Investor | There was no payment made to DNB prior to the SSA termination. |
payments made by TM to DNB, if any prior to | |||
the termination of the SSA for DNB? | |||
6. | Based on Access Agreement (AA) with DNB, | Lew Vooi Hon | The Access Agreement between TM and DNB is based on the |
what is the agreed rate (in RM) for 1Gbps or | Reference Access Offering (RAO) document publicly published by | ||
1GB to use 5G service from DNB? | DNB. It is equal and non-discriminatory for all access seekers, | ||
including TM. | |||
Rate for 1Gbps is RM30k per month. | |||
7. | What steps is TM taking to ensure its network | Institutional Investor | Leveraging our nationwide fibre infrastructure and rollout experience, |
infrastructure is ready to support the rollout of | we are successfully delivering the fibre infrastructure for the 5G | ||
5G services, and what partnerships is TM | network rollout (59.5% built-up as at 30 April 2023. Source: MCMC). | ||
forming to enable the development and | To support the launched Unifi Mobile 5G service, we already have in | ||
deployment of innovative 5G use cases that will | place a 5G core network. We continue to invest in network | ||
benefit customers and drive growth for the | modernisation and simplification to improve latency for better | ||
company? | customer experience coupled with slicing capabilities. |
2
ATTACHMENT 1 | |||
PRE-AGM | Total: 26 | ||
No. | Question | From | Answer |
TM has launched the TM One 5G Sphere Partnership Program in Oct | |||
2022 to collaborate and co-create with 90 technology and smart | |||
solution partners the next 5G use cases from ideation to realisation. | |||
8. | Can TM provide any updates on the outcome of | Institutional Investor | We trust the outcome were shared at the '2022 Review' presentation |
the "New TM" Transformation Program as it | earlier - record-high revenue results since the 2008 demerger, notable | ||
approaches the end of its final year in 2023? | double-digit profitability growth for EBIT and PATAMI, highest dividend | ||
distribution since the revision of our dividend policy in 2018. | |||
In 2023, we do expect strong regulatory headwinds (MSAP review) but | |||
remain hopeful that the growth momentum and tailwind of the past 24 | |||
months are able to offset this. | |||
Beyond strengthening the core business (current Transformation | |||
Program), TM shall explore and pursue new growth areas across the | |||
major lines of business - Unifi, TM One, TM Global. This will be the | |||
next wave of Transformation Program for TM. | |||
9. | In telecommunications, quadruple play or quad | Tan Kwong Meng | Today, TM is the leading convergence telco in Malaysia, bringing a |
play is a marketing term combining the triple | quadruple play of telephone, broadband, mobile and content services | ||
play service of broadband Internet access, | to households. Convergence is our key customer proposition and this | ||
Television/Video and Telephone with wireless | can be seen by the growth in Average Revenue Per Customer (ARPC) | ||
service provisions. All successful telcos have | to approximately RM117 per month. | ||
adopted what is termed as "The Fantastic Four" | |||
strategy. However, from industry feedback, TM | Unifi TV today has evolved since its launch, bringing to households 71 | ||
venture into its own OTT/IPTV which is branded | channels and 18 streaming apps (the largest in Malaysia) to serve the | ||
Unifi TV is not gaining traction and is a drag on | changing viewing habits of Malaysians. Following this, number of Unifi | ||
the company's Income statement. Could the | TV active viewers have grown by 20%+ over the last 12 months. | ||
BOD and Management succinctly explain the | |||
following: | TM shall continue to bring compelling content and invest in next-gen | ||
platform to enhance the Unifi TV customer experience through better | |||
a) What is the strategy that the | personalization and seamless viewing of content. | ||
BOD/Management plans to adopt to | |||
turnaround this worrisome situation since | |||
UNIFI TV has already been in operation | |||
since 2010? | |||
b) What are TM philosophies and the | |||
strategic plans of TM moving forward? |
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ATTACHMENT 1 | |||||||
PRE-AGM | Total: 26 | ||||||
No. | Question | From | Answer | ||||
In that context, what is the rationale of | |||||||
behind the BOD's/Management's strategic | |||||||
intent? | |||||||
c) | Can the BOD/Management provide the | ||||||
Operational Analysis of Unifi TV now and | |||||||
the projected operation over the next 3 | |||||||
years? | |||||||
10. | TM's Technology Think Tank and matters | Tan Kwong Meng | A fundamental change in TM's shift from a Converged Telco to a | ||||
related | to | Enterprise | Technology | Human-Centred TechCo is the greater emphasis on collaboration and | |||
partnership. | |||||||
First and foremost, as a shareholder, I have | |||||||
feedback from the industry that TM is | TM One, our Enterprise and Public Sector business arm is actively | ||||||
impervious to the opinions of industry experts | seeking commercial arrangements and deeper collaborations with | ||||||
and solution providers who are keen to | strategic technology and solution providers. TM One has launched 5G | ||||||
expound and share on the latest technology | Sphere in Oct 2022 to collaborate and co-create with 90 technology | ||||||
trend and innovation which is vital to TM | and smart solution partners the next 5G use cases from ideation to | ||||||
retaining its competitive advantage and | realisation. | ||||||
leadership in the industry. Please enlighten on | |||||||
the following: | Other business units, Unifi and TM Global, are similarly pursuing | ||||||
collaboration and partnership in their respective areas of growth: | |||||||
a) | Can the BOD and Management identify | ||||||
the technology acquisition structure and | • Unifi: content, smart home, SME digital solutions | ||||||
the division responsible for it? | • TM Global: platform-based solutions | ||||||
b) | Please identify the key personnel | ||||||
responsible for the said purpose including | |||||||
the salient touch points with the industry | |||||||
technology/solution provider. | |||||||
11. | Any update on the impact to TM on the revised | Institutional Investor | With the 2023 revision of MSAP (Malaysian Standard Access Pricing), | ||||
MSAP as announced by government in early | it will present a financial impact to TM. However, we are hopeful that | ||||||
March? | the tailwind of growth from other parts of the business can offset this | ||||||
impact. | |||||||
4
ATTACHMENT 1 | |||
PRE-AGM | Total: 26 | ||
No. | Question | From | Answer |
12. | Page 15 IAR mentioned challenges on 2023 | Teo Cher Ming | While the MSAP will create a challenging market environment, TM is |
revision on MSAP. Any numbers that can be | in ongoing discussions with the regulators to finalise the wholesale | ||
shared on this and company comment on the | service prices or Reference Access Offering (RAO). Once the RAO is | ||
2023 MSAP outcome | published, negotiations on Access Agreements (AA) with access | ||
seekers will commence. | |||
13. | How is the business with Petronas? What is the | Husshaini bin Hamid | Petronas is currently embarking on their digitisation program and have |
percentage of contribution to Telekom's | signed a Memorandum of Understanding with TM in 2021 to enable | ||
revenue? | this endeavor. Oil and gas is one of the key verticals for TM and | ||
therefore Petronas is one of our major customers that we provide | |||
What is the percentage of broadband service | comprehensive connectivity, communications and business solutions, | ||
(fibre & Unifi mobile) Telekom provided in | including broadband and cloud services. | ||
Petronas compared to other competitors? Also | |||
on the cloud services? | With these solutions, Petronas was able to maintain communication | ||
among its employees during the Covid-19 lockdown by rolling out | |||
collaboration tools as provided by TM's cloud services. This | |||
borderless connectivity between Petronas' teams allowed them to | |||
consistently deliver the required business outcomes without | |||
disruption. | |||
Category: Financial Performance | Total: 5 | ||
1. | Could TM provide an update on the current | Institutional Investor | More than 25% of the existing Unifi Mobile customer is subscribing to |
demand and performance of Unifi Mobile's 5G | 5G services. Moving forward, Unifi Mobile is planning new and | ||
services since its initial launch in late October | exciting packages, particularly family plans, 5G upgrades, and device | ||
2022? | bundles. | ||
We are driving continuous improvements at all levels aiming to provide | |||
an enhanced experience for our mobile and convergence customers. | |||
2. | Can TM provide any guidance on the Capex | Institutional Investor | In 2022, TM had a capex of RM2.43 billion, driven by investments in |
trend moving forward, will it increase | fiberisation, customer acquisition, international connectivity, | ||
considering the rollout of the 2nd network? | technology (IT and network) and customer experience enhancement. | ||
3. | 2022 capex about 2.4 billion seems elevated | Teo Cher Ming | For 2023, TM expects capex to be within the range of 14% to 18% of |
compared to 2021. Do company expect 2023 | revenue, similar to previous years. The actual capex for 2023 will also | ||
capex to stay elevated in view of DWN model | be influenced by the pace of Phase 1 5G rollout (80% coverage by | ||
for 5G | DNB) and any additional customer projects undertaken during the | ||
year. |
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TM - Telekom Malaysia Berhad published this content on 30 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2023 06:45:08 UTC.