TIME Analysts’ Briefing29 November 2011
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dotCom Berhad
Agenda
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1. Update on Corporate Proposals
2. Q3, 2011 Financial Results
3. Forward Plans
4. Questions & Answers
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Part 1:Update on Corporate Proposals
Transaction Summary
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Proposals
Proposed Capital Repayment of RM0.02 per share
Proposed Acquisition 100% equity stake for RM322 mil in:• Global Transit Communications (“GTC”)• Global Transit Limited (“GTL”)• Global Transit Entities• AIMS Group
Proposed Capital Restructuring
Proposed Exemptions from having to undertake a mandatory general offer
Proposed Amendment to TDC’s Memorandum of Association
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All Resolutions were
approved by
shareholders
on 22 November 2011
We are:Data centric fixed line telco
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business and infra mainly in Malaysia
>90% of our revenues come from Wholesale and
Large Corporations
Just under5% Fixed-line
Market Share
Proposed Acquisitions will create a platformfor growth in the regional telecommunicationsindustry by:
Entering the International Submarine cable business
Expansion of business into the region
Entering into the high growth data centre and managed services business
Producing a more complete range of services (resulting in expansion of services)
AIMS = Data Warehouse + Data Airport
Companies use AIMS to:1. Connect to each other2. Connect to the Internet Exchange3. Connect to telcos (TM, TIME, Maxis,
Celcom, Digi)4. Host their data in a secure environment
Customers pay AIMS for:1. Co-location (Rental income, space based)2. Managed Hosting (maintaining their
equipment located at AIMS)3. Disaster Recovery (Backup equipment for
emergency, space based)4. Managed services (operating their entire
system eg online booking - services based revenue)
MalaysianInternet Exchange
(MyIX)
Airline BookingWebsites
SearchEngines
Mobile NumberPortability
Internet TVProvider
Telcos
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Performance Trend: AIMS Group
Revenue CAGR: 31%
RM’ mil
Note: Above financials are aggregated.
JAPAN
USA
GTC = Data Travel Agent(presence in Singapore, HK, USA)
Companies (mostly telcos) use GTC:1. To access GTC’s high quality wholesale internet
access network2. To utilise GTC’s network engineering team to help
them plan routes3. For end to end solutions connecting submarine
cables and land cables4. For internet access around the world
Income for GTC comes from:1. Wholesale internet access 2. International bandwidth solutioning3. Management of their international routers &
switches (people and skills based)4. Network engineering services (people and skills
based)
THAILAND
SINGAPORE
HONG KONG
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Performance Trend: GTC
Revenue CAGR: 89%
RM’ mil
GTL = Data Super Tunnel
Companies (mostly telcos) come to GTL because:1. They want high capacity
bandwidth across the pacific2. GTL is neutral and does not
compete with them in their domestic markets
What do they pay GTL for?Bandwidth across the Pacific in USD-per-Megabit-per-month (paying for bandwidth)
USAJAPAN
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Performance Trend: GTL
RM’ mil
Proposed AcquisitionsProposed Acquisition 100% equity stake in:
JAPAN
USA
The Combined Entity
Advantages for our customers1. Customer familiarity with at least one of us2. A One-Stop Shop for customers’ needs3. Obtain a single service level / guarantee across ALL
our services
Advantages for TdC1. Offer a more complete range of services2. Additional income streams3. Grow our customer base beyond Malaysia4. Participate in high growth data centre and managed
services business5. Lower cost of sales & greater sales team efficiencies6. Improved bargaining power with other cable operators
Open up a VAST Market potential in Asia Pacific
HONG KONG
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Part 2:Q3, 2011 Financial Results
9 months 2011 YoY all around improvements in profitindicators on higher non global bandwidth sales, higherprofit margins, and adjustments for previously recognisedexpenses.
Performance Overview
November, 2011 17
YTD Sept 2011 Revenues declined 2% on lower globalbandwidth sales while Comparable Revenues improved12%.
RM’ mil 3Q,11 3Q,10VarYoY
2Q,11Var
QoQ
Revenue 77.0 87.3 (12%) 83.6 (8%)
EBITDA 45.9 21.8 >100% 28.4 62%
EBITDA Margin 60% 25% 35% 34% 26%
Operating Profit 32.0 10.0 >100% 15.1 >100%
Operating Profit Margin 42% 11% 31% 18% 24%
PBT 41.9 20.9 >100% 28.6 47%
PBT Margin 54% 24% 30% 34% 20%
3Q 2011 Performance
November, 2011 18
November, 2011 19
3Q 2011 Comparable PerformanceAdjusted to exclude one-off adjustment to expenses recognized previously, project revenues discontinued in 2010, dividend income and Global Bandwidth Revenues .
RM’ mil 3Q,11 3Q,10Growth
YoY2Q,11
Growth QoQ
Revenue 77.0 66.0 17% 74.5 3%
EBITDA 26.2 15.0 74% 22.2 18%
EBITDA Margin 34% 23% 11% 30% 4%
Operating Profit 12.3 3.2 >100% 8.9 39%
Operating Profit Margin 16% 5% 11% 12% 4%
PBT 14.0 4.6 >100% 10.5 33%
PBT Margin 18% 7% 11% 14% 4%
Note: Above comparable indicators differ from prior quart er presentations on exclusion of Global Bandwidth r evenues.
YTD SEPT 2011 Performance
November, 2011 20
RM’ mil YTD Sept,11 YTD Sept,10 Var YoY
Revenue 230.7 235.6 (2%)
EBITDA 96.9 62.8 54%
EBITDA Margin 42% 27% 15%
Operating Profit 56.6 25.2 >100%
Operating Profit Margin 25% 11% 14%
PBT 93.4 62.7 49%
PBT Margin 40% 27% 13%
November, 2011 21
RM’ mil YTD Sept,11 YTD Sept,10 Growth YoY
Revenue 221.5 198.3 12%
EBITDA 70.9 48.8 45%
EBITDA Margin 32% 25% 7%
Operating Profit 30.6 11.1 >100%
Operating Profit Margin 14% 6% 8%
PBT 35.6 14.6 >100%
PBT Margin 16% 7% 9%
Note: Above comparable indicators differ from prior quart er presentations on exclusion of Global Bandwidth r evenues.
YTD Sept 2011 Comparable PerformanceAdjusted to exclude one-off adjustment to expenses recognized previously, project revenues discontinued in 2010, dividend income and Global Bandwidth Revenues.
+ 5% qoq
+ 23% yoyComparable Revenue
Data
RM’ million
Quarter Trend
RM’ millionYTD Trend
By Products
+ 15%
November, 2011 22
Excluding Global Bandwidth Revenues
November, 2011
Voice -2% qoq
+3% yoy
-2% yoy
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RM’ million
Quarter Trend
RM’ millionYTD Trend
Comparable RevenueBy Products
August 24, 2011 24
Wholesale*
Corporate & Government
SME & Consumer
YoY YoY
Q3, 2011 YTD Sep 2011
REVENUE BY Segment Performance
* Note: Wholesale revenues adjusted to exclude glob al bandwidth sales.
+12%
+9%
+5%
+21%
+14%
+10%
November, 2011 25
Corporate Exercise in relation to the Proposed Acquisition s, ProposedCapital Repayment and Proposed Capital Restructuring
• Shareholders approved the Corporate Exercises atthe EGM on 22 Nov 2011.
• Expected completion of the proposals by February2012.
• Financing for the Corporate Exercise is in place.
Corporate Updates
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Part 3:Forward Plans
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Acquisitions:
• Completion
• Integration - network, products, sales approach
2012 Focus
Organic:
• Complete deployment of ASTRO buildings
• Selective coverage expansion
• Focus on wholesale lease business
• Explore value added services
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• Sustain EBITDA margins within current range
• Continued wholesale and corporate growth
• ASTRO to contribute in top line more meaningfully in 2012 but bottom line contribution towards 2013
• Consolidation of acquiree companies to contribute for EPS accretion in medium term
Forward Expectations
Should you have any queries, please contact::Karen Ding
Head of Planning & Investor Relations [email protected]
TIME dotCom BerhadNo.14, Jalan Majistret U1/26, Hicom Glenmarie Industrial Park,
40150 Shah Alam, Selangor, MALAYSIATel: +603-5032 6000 I Fax: +603-5032 6100 I www.time.com.my
Thank You