th annual general meeting - time agm slide.pdf · aae-1 cable (under construction) with the...

17th Annual General Meeting5th June 2014

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2013 At a Glance2014 ExpectationsMSWG Questions

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2013Performance

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Performance Indicators

3Note:* Adjusted to excludes realisation of fair value gain from available-for-sale reserve for comparison purposes.

* * *

Revenue by Product

+34%Change

YoY -4%Growth YoY

4Note:Data includes revenue from Global Transit Companies.The comparative revenue by product segment has been reclassified to be consistent with the current yearpresentation.

DataData

Centre

Voice

+75%Growth YoY

2013 at a glance

LANDING OF

APG Cable

>130,000 FIBERISEDPREMISES

NEW

Global PoPs

Menara Aik Hua is now

MENARA AIMS

FIRST-EVER

DIVIDENDPOLICY

NETWORKENHANCEMENTS

REGIONALADVANCEMENTS

DATACENTREEXPANDEDCAPACITY

PEOPLEDEVELOPMENT

SHARES

DistributedDIVIDEND-IN-SPECIE

June 2013

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Domestic Network Enhancements

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Our 100% fibre optic network nowreaches over 130,000 premises

Received the highly-respected InformationSecurity ManagementSystems (ISMS) ISO/IEC27001:2005 certification

Built our 3rd route to Kuantanin our effort to positionKuantan as our Easterngateway

Constructed afull-fledged cablelanding stationin Kuantan

Regional Advancements

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KTN

Landmark landing of APG Cable in Kuantan,completing our Malaysia to USA connectivity

USAJPN

Added new Point of Presence (PoPs) inLondon, Frankfurt, Amsterdam, Cambodia andHong Kong, expanding global connectivity(Asia-World-Asia strategy)

Data Centre Growth

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Expanded data centre capacity atMenara AIMS by an additional6,000 square feet

Renamed Menara Aik Hua toMenara AIMS, cementing long-termpresence in KL

2014 Expectations

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2014 Another Year of Continuing Growth

Strengthening fibre optic networkacross Malaysia

Continuing Demandexpected from mobile operators for their

network modernisation andLTE network rollouts

Going Regional•Expanding data centre businesses•Establish more international PoPs•To capture Indochina increasing bandwidthdemand via APG cable system•Expand network to Europe via investment inAAE-1 cable system

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France

Greece

EgyptSaudiArabia

Djibouti

UAE

YemenOman

Pakistan

India

ThailandMalaysia

Singapore

Cambodia

Vietnam

Hong Kong

Qatar

Japan

Los Angeles

Palo AltoSouth Korea

China

Taiwan

TIME GLOBAL NETWORK

San JoseUnity Cable

APG Cable(under construction)

AAE-1 Cable(under construction)

With the inclusion of the AAE-1 cable system, our network footprint and customer basehas expanded from a pure Malaysian presence to include US, Asia, Middle East, Africaand Europe. A major step for TIME’s Asia-World-Asia strategy.

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MSWG Questions

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Strategic & FinancialMatters

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Q1)

In the Chairman’s Statement, it was stated thatsales from the Group’s data grew 34% toRM411.6 million during the financial year onthe back of improved revenues fromWholesale, Enterprise and SME & Consumersegments, which climbed 43%, 21% and 16%respectively.

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Q1) (i)Which segment was the main contributor to the Groupin 2013?A. Wholesale and enterprise segments were the

main contributors to the Group in 2013.

Q1) (ii)Which segment would remain the key driver forrevenue in 2014?

A. The Group expects that the wholesale andenterprise segments would continue to drivegrowth in 2014.

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Q1) (iii)What would be the expected CAPEX for FY2014?

A. The Group CAPEX for 2014 is estimated atRM270 million. A large portion of the said CAPEXwill be incurred for the Group’s new submarinecable investments, Asia Pacific Gateway (APG)and Asia-Africa-Europe-1 (AAE-1) cable systems.

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Q2)

It was stated in the Review of Operations thatstiff competition and price erosion havebecome a concern due to new entrants andlandscape changes in the wholesaletelecommunications space.

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Q2) (i)Who are these competitors and new entrants?

A. Our competitors include all licensed fixed-lineoperators and global service providers whoprovide similar products and services as us. Newentrants in recent years have been smaller localtelecommunication companies which have beengranted license to operate in the country.

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Q2) (ii)How has the price erosion affected the overall industry and theGroup?

A. The Group and the industry as a whole has had to refocusits energies and double its efforts to improve execution,efficiency and effectiveness and provide more value addedand superior services in order to differentiate themselveswith each other in the marketplace. The Group is alsomanaging this by taking on a more integrated view of thetelecommunication’s value chain to expand its marketreach and open up new potential avenues for growth.

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Q2) (iii)Could the Board elaborate on the landscape changes asmentioned in the Review of Operations?

A. The traditional telecommunication’s wholesale marketboundaries have begun to blur with the emergence oftechnologies that provide cheaper alternative access to theinternet which may lead to cannibalisation of traditionalwholesale offerings. This has to a large extent acceleratedprice erosion in the wholesale telecommunication space.To counter this, the Group offers competitive pricing, goodpre- and post- sales support, as well as improved qualityand network reliability to enable continued growth in thewholesale segment.

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Q3)

It was also stated in the Review of Operationsthat the SME and Consumer segmentexperienced respectable growth for 2013.

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Q3) (i)What was the subscriber growth rate and what wasthe churn rate compared to the previous year?

A. SME and consumer segments recorded a 16%growth rate in 2013 whilst the churn recorded is inline with the increase in revenue.

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Q3) (ii)Given that there are other operators offering high-speedbroadband packages, how does the company differentiatethemselves from these competitors?

A. The Group continues to compete on all fronts by continuingto deliver innovative products and service offerings via its100% fibre optic network while adopting competitive pricingpolicies to increase market share. As mentioned earlier,

the Group is also taking on a more integrated view of thetelecommunication’s value chain to expand its marketreach in an effort to open new potential avenues for growthand stay competitive.

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Corporate Governance(CG)

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Q1)

We would like to encourage the Board topublish the Minutes or the Summary of Minutesof the AGM on the Company’s website to be inline with the spirit of transparency and goodCorporate Governance practices based on theASEAN CG Scorecard which is being used toassess the level of CG standards of PLCs inMalaysia by MSWG.

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A. The outcome of general meetings is announced to BursaMalaysia Securities Berhad on the same day after theconclusion of the general meetings as required by theListing Requirements of Bursa Malaysia Securities Berhad.This includes whether or not the resolutions were carriedand if the resolution is decided on a poll, the announcementwill include the total number of votes cast on the poll andthe percentage in favour of and against the resolution.

Shareholders of the Company have the right to receivenotice and attend the Company’s general meetings and tospeak and vote thereat. Pursuant thereto, shareholdershave the right to inspect the minutes of general meetingsand may request in writing for a copy of the minutes of thegeneral meetings at a nominal sum.

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Thank you

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