25 th August 2020 2019 AT A GLANCE Sustained Revenue and Profit - PowerPoint PPT Presentation

25 th August 2020

2019 AT A GLANCE Sustained Revenue and Profit Growth Sustained Group revenue growth YoY at 13% to surpass the RM1 billion mark at RM1,114 million. All core customer groups Continued Network Expansion recorded revenue growth in FY2019 – Growing our domestic fibre network further to close the gap to the Group’s target Retail grew by 27%, Wholesale grew by 13% and Enterprise grew by 7% of 1 million premises passed by end of 2020 Returned Value to Shareholders Planting Seeds for Data Centre Declared interim ordinary and special Expansion interim (single tier) dividend of 9.95 sen The Group expanded its total data centre and 19.08 sen per ordinary share for floor space at Menara AIMS and FY2019 which was paid out on 31 March commenced construction of its new data 2020 centre in Cyberjaya Strong Financial Position Expanded its presence into Thailand to Strong balance sheet with 11% higher capture growing regional demand for data total assets amounting to RM3.5 billion, centre services - expected to commence and net cash after borrowings balance of data centre operations within the next RM393.6 million quarter Note : 1. YoY variances to the previous year is done excluding the impact of MFRS16 for better comparability. 2 2. Adjusted EBITDA and Adjusted PBT excludes forex impact, PPE written off, impairment of investment and other one off adjustments.

BUSINESS PILLARS TIME dotCom Berhad ASEAN Domestic Network Global Network Data Centre 100% fibre optic-based International bandwidth Carrier-neutral data Strategic acquisitions/ domestic fixed-line provider with a centre operator with joint ventures/ telecommunications global footprint world-class data storage partnerships with service provider facilities and ancillary telecommunications services providers and data centre businesses in ASEAN 3

BUSINESS REVIEW

DOMESTIC NETWORK • Continued to innovate and deliver market- oriented and cost-competitive products catering to market needs and demands • Launched Malaysia’s first retail broadband service with no lock-in contract option • Maintained position as the brand providing the fastest and most competitively priced fibre home broadband service in the country • Premises passed grew by 30% YoY in FY2019 to further close the gap to the Group’s target of 1 million premises passed by the end of year 2020 • Revenue growth was seen across all core customer segments 5

GLOBAL NETWORK • Extensive reach of its subsea cable systems to continue delivering strong business and operational performance • Strong value proposition of its combined cable systems has enabled improved revenue in the face of increasing competition and a general decrease in global bandwidth rates 6

DATA CENTRE • Recognized as Malaysia’s Cloud Infrastructure Provider of the Year by Frost & Sullivan in 2019 • Total data centre space increased by 6% to 78,215 sq ft Data Centres Location (Net Lettable Area in Sq Ft) Menara AIMS, Kuala Lumpur 56,945 Cyberjaya 18,700 Others 2,570 Total 78,215 • The Group is also able to access up to 47,645 sq ft of additional data centre space through our associates in Thailand and Vietnam • Commenced construction of new data centre in Cyberjaya 7

ASEAN RM ’ million VIETNAM THAILAND FY2019 45.3% 49.00% 46.8% Revenue 293.4 17.4 176.7 As reported by investee Profit/ (Loss) After Tax 26.2 (2.3) N1 6.1 & Other comprehensive Income TIME’s shares in Share of Profit Proportion to it’s 11.8 - 2.9 on Investment N1 interest of Associates Total Share of Profit on 14.7 investment of Associates • Total share of profit in FY2019 grew more than 24% against FY2018 8 Note : 1. The Group no longer shares losses from KIRZ since Q2 2018 when the investment value was fully impaired

FINANCIAL REVIEW

2019 PERFORMANCE SUMMARY FY2019 Financial Performance As reported MFRS 16 FY2019 FY2018 N2 YoY% In RM ’million under MFRS adjustments Pre-MFRS16 Pre-MFRS16 16 Revenue 1,113.9 0.0 1,113.9 983.4 +13% EBITDA 479.8 (23.9) 455.9 427.4 +7% N1 Adjusted EBITDA 510.0 (23.9) 486.1 419.8 +16% Adjusted EBITDA 46% 44% 43% +1 pps Margin Profit Before Taxation 328.1 0.4 328.5 304.8 +8% N1 Adjusted PBT 358.3 0.4 358.7 297.2 +21% Adjusted PBT 32% 32% 30% +2 pps Margin 10 10 Note : 1. Adjusted EBITDA and Adjusted PBT excludes forex impact, impairment of investment, and other one off adjustments. 2. YTD variances are done excluding the impact of MFRS16 for better comparability.

REVENUE:TIME GROUP YOY+13% 1,113.9 983.4 6.7 10.4 295.3 CR+14% 3.7 274.8 278.2 3.0 262.5 973.0 1,107.2 274.8 291.6 Q1-19 Q2-19 Q3-19 Q4-19 FY2018 FY2019 One-off non-recurring contracts Data, Data Centre, Voice and Others CR: Core revenues 11 11 Note : Numbers are in RM ‘million.

REVENUE:BY PRODUCT DATA DATA CENTRE VOICE YoY +17%, CR +17% YoY -2%, CR +2% YoY +5% 132.5 130.0 6.0 0.5 907.2 777.4 6.2 4.4 68.7 773.0 901.0 126.5 129.5 72.2 FY2019 FY2018 FY2019 FY2018 FY2018 FY2019 One-off non-recurring contracts Data, Data Centre, Voice and Others CR: Core revenues 12 12 Note : Numbers are in RM ‘million.

REVENUE:BY CUSTOMER GROUP WHOLESALE ENTERPRISE RETAIL YoY +13%, CR +13% YoY +7% CR +7% YoY +27% 6.0 68.7 72.2 FY2019 FY2018 FY 2018 FY 2019 FY 2018 FY 2019 One-off non-recurring contracts Data, Data Centre, Voice and Others CR: Core revenues 13 13 Note : Numbers are in RM ‘million.

CAPITAL EXPENDITURE Breakdown of Telco Assets Acquired 276.2 267.1 41.1 19.6 12.0 I 8.8% 23.5 0.3 I 0.2% 110.9 43.1 I 20.4% 95.4 I 45.1% 11.1 I 5.2% FY2018 FY2019 124.3 I 91.0% 62.0 I 29.3% 211.6 136.6 FY2018 FY2019 Submarine Cable Telco Assets Non -Telco Assets HPOE Card Upgrade Regional Telecommunication Network Other Telco Assets Data Centre • 51% capital expenditure was spent on telco assets, with particular focus on upgrading TIME’s existing network infrastructure and expanding domestic network coverage • Non-telco asset additions during the year includes the purchase of Menara AIMS in downtown KL at a cost of RM95.8 million 14 14

MOVING FORWARD

2020 AND BEYOND COVID-19: Medium term priorities Uncertain times ahead • Domestic • The Group expects • Focus on supporting the government to achieve challenges to continue national telecommunications objectives; intensify domestically and regionally coverage footprint expansion for the remainder of 2020 due • The Group will work to increase market share by to the COVID-19 pandemic delivering fast, reliable and unparalleled quality network • TIME has remained resilient, experience at competitive prices as well as providing but it is still too early to meaningful solutions and services to all our customers quantify the full impact • Regional • Immediate priority for the • Continue to work with ASEAN partners to tap into safety of our employees increasing demand for cross-border connectivity and to remains while minimizing create a seamless ASEAN telecommunications network disruption to operations to which will connect Indochina to Malaysia and ensure 100% network Singapore, and establish TIME as a key regional data availability and stability centre player 16 16

MSWG STRATEGY AND FINANCIAL MATTERS

QUESTION 1 With consumers expressing greater price sensitivity and reduced brand loyalty, TIME launched Malaysia’s first no lock-in contract option for the retail market. This was a game-changer for the industry and marked a change towards providing contract flexibility and greater adaptability to market forces. (Page 7 of Annual Report – AR) How has the no lock-in contract option for the retail market improved TIME’s performance? a) Please provide comparable details before and after the launch. b) How many other competitors have launched similar options? The new and attractive option for our retail customers has yielded a positive response, whereby the product has contributed to the sustained growth in our retail revenue, which grew by 29% in the first six months of 2020. Whilst the standard 24-month contract with no up-front fees retains the lion’s share of new sign-ups, the no lock-in contract option has proved particularly popular with customers who are not always able to commit up-front, such as students, young professionals and renters in general. Following our pioneering move of introducing a no-lock-in-contract option into the market, we believe that there has been at least one other provider who has launched a similar offering. 18 18