TELEKOM MALAYSIA BERHAD

Reg. No.: 198401016183 (128740-P)

(Incorporated in Malaysia)

The Board of Directors of Telekom Malaysia Berhad is pleased to announce the following unaudited results of the Group for the 3rd quarter ended 30 September 2023.

UNAUDITED CONSOLIDATED INCOME STATEMENT

3RD QUARTER ENDED

30/09/2023

30/09/2022

RM Million

RM Million

FINANCIAL PERIOD ENDED

30/09/2023

30/09/2022

RM Million

RM Million

OPERATING REVENUE

OPERATING COSTS

  • depreciation, impairment and amortisation
  • net impairment loss on financial and contract assets
  • other operating costs

OTHER OPERATING INCOME (net)

OTHER GAINS/(LOSSES) (net)

OPERATING PROFIT BEFORE FINANCE COST

FINANCE INCOME

FINANCE COST

FOREIGN EXCHANGE LOSS ON

BORROWINGS

NET FINANCE COST

ASSOCIATE

  • share of results (net of tax)
    PROFIT BEFORE TAX AND ZAKAT TAX AND ZAKAT (part B, note 5)

PROFIT FOR THE FINANCIAL PERIOD

ATTRIBUTABLE TO:

  • equity holders of the Company
  • non-controllinginterests

PROFIT FOR THE FINANCIAL PERIOD

EARNINGS PER SHARE (sen) (part B, note 11)

  • basic
  • diluted

3,076.3

(659.6)

(21.3)

(1,874.1)

54.7

2.0

578.0

27.3

(87.5)

(16.9)

(77.1)

4.1

505.0

37.2

542.2

538.2

4.0

542.2

14.1

14.0

3,158.1

(654.1)

(5.6)

(1,946.7)

53.1

2.3

607.1

19.3

(89.0)

(79.2)

(148.9)

2.1

460.3

(195.5)

264.8

265.2

(0.4)

264.8

7.0

7.0

9,126.3

9,139.8

(2,088.1)

(1,879.3)

(44.2)

(1.7)

(5,422.2)

(5,475.5)

107.5

84.6

3.3

(9.5)

1,682.6

1,858.4

70.0

53.0

(272.4)

(287.8)

(75.3)

(160.6)

(277.7)

(395.4)

9.9

9.5

1,414.8

1,472.5

30.2

(488.7)

1,445.0

983.8

1,437.0

983.1

8.0

0.7

1,445.0

983.8

37.6

26.0

37.4

25.8

(The above unaudited consolidated income statement should be read in conjunction with the audited financial statements for the financial year ended 31 December 2022)

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

3RD QUARTER ENDED

FINANCIAL PERIOD ENDED

30/09/2023

30/09/2022

30/09/2023

30/09/2022

RM Million

RM Million

RM Million

RM Million

PROFIT FOR THE FINANCIAL PERIOD

542.2

264.8

1,445.0

983.8

OTHER COMPREHENSIVE INCOME

Items that will not be reclassified

subsequently to income statement:

  • decrease in fair value of equity investments at fair value through other

comprehensive income (FVOCI)--(8.0)-

Items that may be reclassified subsequently to income statement:

  • (decrease)/increase in fair value of investments at fair value through other comprehensive

income (FVOCI)

(0.6)

(0.1)

0.6

(4.5)

- reclassification adjustments relating to FVOCI

investments disposed

#

0.1

#

0.2

- (decrease)/increase in fair value of receivables

at FVOCI

(0.2)

1.7

2.3

2.7

- cash flow hedge:

- increase in fair value of cash flow

hedge

4.1

7.4

27.6

22.5

- change in fair value of currency basis

(1.4)

(0.9)

(4.7)

(5.1)

- reclassification of foreign exchange loss

on borrowings

(3.5)

(24.9)

(28.9)

(46.8)

- currency translation differences

- subsidiaries

0.7

9.6

5.1

19.4

- associate

#

0.1

0.1

0.2

Other comprehensive loss for the financial

period

(0.9)

(7.0)

(5.9)

(11.4)

TOTAL COMPREHENSIVE INCOME

FOR THE FINANCIAL PERIOD

541.3

257.8

1,439.1

972.4

ATTRIBUTABLE TO:

- equity holders of the Company

537.3

258.2

1,431.1

971.7

- non-controlling interests

4.0

(0.4)

8.0

0.7

TOTAL COMPREHENSIVE INCOME

FOR THE FINANCIAL PERIOD

541.3

257.8

1,439.1

972.4

# Amount less than RM0.1 million

(The above unaudited consolidated statement of comprehensive income should be read in conjunction with the audited financial statements for the financial year ended 31 December 2022)

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT

AS AT

30/09/2023

31/12/2022

RM Million

RM Million

SHARE CAPITAL

4,064.6

3,986.5

OTHER RESERVES

149.9

220.0

RETAINED PROFITS

4,517.4

3,730.0

TOTAL CAPITAL AND RESERVES ATTRIBUTABLE TO

EQUITY HOLDERS OF THE COMPANY

8,731.9

7,936.5

NON-CONTROLLING INTERESTS

153.1

152.6

TOTAL EQUITY

8,885.0

8,089.1

Borrowings

4,178.4

4,959.6

Lease liabilities

1,624.5

1,544.2

Deferred tax liabilities

1,265.3

1,425.8

Deferred income

1,480.3

1,630.7

Trade and other payables

25.2

24.6

NON-CURRENT LIABILITIES

8,573.7

9,584.9

17,458.7

17,674.0

Property, plant and equipment

13,133.6

13,547.0

Intangible assets

876.8

745.8

Right-of-use assets

1,314.3

1,153.7

Associate

96.9

94.3

Equity investments at fair value through other comprehensive income (FVOCI)

141.1

149.1

Investments at fair value through profit or loss (FVTPL)

165.0

164.6

Receivables at FVOCI

49.3

147.0

Other non-current receivables

358.6

574.3

Derivative financial instruments

154.9

132.0

Deferred tax assets

25.6

24.1

NON-CURRENT ASSETS

16,316.1

16,731.9

Inventories

256.7

305.4

Trade and other receivables

3,026.6

2,312.3

Contract assets

680.2

702.4

Contract cost assets

397.0

420.7

Receivables at FVOCI

2.5

8.4

Investments at fair value through other comprehensive income (FVOCI)

70.4

66.5

Investments at fair value through profit or loss (FVTPL)

2.7

2.1

Financial assets at fair value through profit or loss (FVTPL)

2.4

2.2

Cash and bank balances

2,204.0

2,579.4

CURRENT ASSETS

6,642.5

6,399.4

Trade and other payables

3,262.9

3,718.0

Contract liabilities

1,220.3

839.0

Customer deposits

145.8

182.6

Borrowings

629.1

309.7

Lease liabilities

199.8

230.3

Tax and zakat

42.0

177.7

CURRENT LIABILITIES

5,499.9

5,457.3

NET CURRENT ASSETS

1,142.6

942.1

17,458.7

17,674.0

NET ASSETS PER SHARE ATTRIBUTABLE TO ORDINARY

EQUITY HOLDERS OF THE COMPANY (sen)

227.6

207.7

(The above unaudited consolidated statement of financial position should be read in conjunction with the audited financial statements for the financial year ended 31 December 2022)

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL PERIOD ENDED 30 SEPTEMBER 2023

Attributable to equity holders of the Company

Long Term

Cost of

Incentive

Currency

Non-

Share

FVOCI

Hedging

Hedging

Plan

Translation

Retained

controlling

Total

Capital

Reserve

Reserve

Reserve

Reserve

Differences

Profits

Interests

Equity

RM Million

RM Million

RM Million

RM Million

RM Million

RM Million

RM Million

RM Million

RM Million

At 1 January 2023

3,986.5

99.1

(13.2)

16.8

81.9

35.4

3,730.0

152.6

8,089.1

Profit for the financial period

-

-

-

-

-

-

1,437.0

8.0

1,445.0

Other comprehensive income

Items that will not be reclassified subsequently to income statement:

- decrease in fair value of equity investments at FVOCI

-

(8.0)

-

-

-

-

-

-

(8.0)

Items that may be reclassified subsequently to income statement:

- increase in fair value of investments at fair value through other comprehensive

income (FVOCI)

-

0.6

-

-

-

-

-

-

0.6

- reclassification adjustments relating to FVOCI investments disposed

-

#

-

-

-

-

-

-

#

- increase in fair value of receivables at FVOCI

-

2.3

-

-

-

-

-

-

2.3

- cash flow hedge:

- increase in fair value of cash flow hedge

-

-

27.6

-

-

-

-

-

27.6

- change in fair value of currency basis

-

-

-

(4.7)

-

-

-

-

(4.7)

- reclassification of foreign exchange loss on borrowings

-

-

(28.9)

-

-

-

-

-

(28.9)

- currency translation differences

- subsidiaries

-

-

-

-

-

5.1

-

-

5.1

- associate

-

-

-

-

-

0.1

-

-

0.1

Total comprehensive (loss)/income for the financial period

-

(5.1)

(1.3)

(4.7)

-

5.2

1,437.0

8.0

1,439.1

Transactions with owners:

- final interim dividend paid for the financial year ended 31 December 2022 (part A, note 6(a))

-

-

-

-

-

-

(286.6)

-

(286.6)

- interim dividends paid for the financial year ending 31 December 2023 (part A, note 6(b))

-

-

-

-

-

-

(363.0)

-

(363.0)

- dividend paid to non-controlling interests

-

-

-

-

-

-

-

(7.5)

(7.5)

- Long Term Incentive Plan (LTIP):

- ordinary shares granted*

-

-

-

-

13.9

-

-

-

13.9

- transfer from LTIP reserve upon issuance of shares on vesting (part A, note 5(b))^

78.1

-

-

-

(78.1)

-

-

-

-

Total transactions with owners

78.1

-

-

-

(64.2)

-

(649.6)

(7.5)

(643.2)

At 30 September 2023

4,064.6

94.0

(14.5)

12.1

17.7

40.6

4,517.4

153.1

8,885.0

# Amount less than RM0.1 million

  • The apportionment over the vesting period of the fair value of the Group's granting of TM shares made to eligible employees of TM and its subsidiaries subject to fulfilment of relevant vesting conditions. ^ Issuance of shares pursuant to the Group's LTIP RS.

(The above unaudited consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the financial year ended 31 December 2022)

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL PERIOD ENDED 30 SEPTEMBER 2022

Attributable to equity holders of the Company

Long Term

Cost of

Incentive

Currency

Non-

Share

FVOCI

Hedging

Hedging

Plan

Translation

Retained

controlling

Total

Capital

Reserve

Reserve

Reserve

Reserve

Differences

Profits

Interests

Equity

RM Million

RM Million

RM Million

RM Million

RM Million

RM Million

RM Million

RM Million

RM Million

At 1 January 2022

3,729.0

94.0

13.5

22.7

127.9

25.1

3,490.3

(174.6)

7,327.9

Profit for the financial period

-

-

-

-

-

-

983.1

0.7

983.8

Other comprehensive income

Items that may be reclassified subsequently to income statement:

- decrease in fair value of investments at fair value through other comprehensive

income (FVOCI)

-

(4.5)

-

-

-

-

-

-

(4.5)

- reclassification adjustments relating to FVOCI investments disposed

-

0.2

-

-

-

-

-

-

0.2

- increase in fair value of receivables at FVOCI

-

2.7

-

-

-

-

-

-

2.7

- cash flow hedge:

- increase in fair value of cash flow hedge

-

-

22.5

-

-

-

-

-

22.5

- change in fair value of currency basis

-

-

-

(5.1)

-

-

-

-

(5.1)

- reclassification of foreign exchange loss on borrowings

-

-

(46.8)

-

-

-

-

-

(46.8)

- currency translation differences

- subsidiaries

-

-

-

-

-

19.4

-

-

19.4

- associate

-

-

-

-

-

0.2

-

-

0.2

Total comprehensive (loss)/income for the financial period

-

(1.6)

(24.3)

(5.1)

-

19.6

983.1

0.7

972.4

Transactions with owners:

- final interim dividend paid for the financial year ended 31 December 2021

-

-

-

-

-

-

(226.4)

-

(226.4)

- interim dividends payable for the financial year ended 31 December 2022

-

-

-

-

-

-

(340.9)

-

(340.9)

- dividends paid to non-controlling interests

-

-

-

-

-

-

-

(6.3)

(6.3)

- Long Term Incentive Plan (LTIP):

- ordinary shares granted*

-

-

-

-

26.7

-

-

-

26.7

- transfer from LTIP reserve upon issuance of shares on vesting^

77.1

-

-

-

(77.1)

-

-

-

-

Total transactions with owners

77.1

-

-

-

(50.4)

-

(567.3)

(6.3)

(546.9)

At 30 September 2022

3,806.1

92.4

(10.8)

17.6

77.5

44.7

3,906.1

(180.2)

7,753.4

  • The apportionment over the vesting period of the fair value of the Group's granting of TM shares made to eligible employees of TM and its subsidiaries subject to fulfilment of relevant vesting conditions. ^ Issuance of shares pursuant to the Group's LTIP RS.

(The above unaudited consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the financial year ended 31 December 2022)

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FINANCIAL PERIOD ENDED

30/09/2023

30/09/2022

RM Million

RM Million

Receipts from customers

8,797.3

8,142.8

Payments to suppliers and employees

(5,581.4)

(5,386.2)

Payments to suppliers for short term lease and leases of low value assets

(29.3)

(35.4)

Payments of finance cost

(221.0)

(215.8)

Payments of income taxes and zakat (net)

(371.8)

(303.4)

CASH FLOWS FROM OPERATING ACTIVITIES

2,593.8

2,202.0

Contribution for purchase of property, plant and equipment

298.8

96.0

Disposal of property, plant and equipment

0.5

7.9

Purchase of property, plant and equipment and intangible assets

(1,887.6)

(1,989.0)

Maturity of current investments at fair value through other comprehensive income

5.3

29.2

Purchase of current investments at fair value through other comprehensive income

(8.6)

(17.0)

Purchase of investments at fair value through profit or loss

(6.8)

(14.6)

Disposal of financial assets at fair value through profit or loss

14.0

161.5

Long term deposits

(16.6)

(16.6)

Maturity of deposit with maturity exceeding 3 months*

-

36.0

Repayments of loans by employees

13.6

37.8

Loans to employees

(14.9)

(23.5)

Disposal of housing loan

127.6

-

Interests received

56.7

37.8

Dividends received

6.9

-

CASH FLOWS USED IN INVESTING ACTIVITIES

(1,411.1)

(1,654.5)

Proceeds from borrowings

30.0

-

Repayments of borrowings

(597.3)

(548.1)

Repayments of lease liabilities

(385.8)

(387.9)

Dividend paid to shareholders (part A, note 6)

(649.6)

(226.4)

Dividend paid to non-controlling interests

(7.5)

(3.9)

CASH FLOWS USED IN FINANCING ACTIVITIES

(1,610.2)

(1,166.3)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(427.5)

(618.8)

EFFECT OF EXCHANGE RATE CHANGES

21.2

68.0

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE FINANCIAL PERIOD

2,344.3

1,880.0

CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL PERIOD

1,938.0

1,329.2

* Comparative disclosures have been restated

(The above unaudited consolidated statement of cash flows should be read in conjunction with the audited financial statements for the financial year ended 31 December 2022)

TELEKOM MALAYSIA BERHAD

Reg. No.: 198401016183 (128740-P)

(Incorporated in Malaysia)

PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134

1. Basis of Preparation

The unaudited interim financial statements for the 3rd quarter and financial period ended 30 September 2023 of the Group have been prepared in accordance with Malaysian

Financial Reporting Standards (MFRS) 134 "Interim Financial Reporting" issued by

Malaysian Accounting Standards Board (MASB), paragraph 9.22 and Appendix 9B of the Bursa Malaysia Securities Berhad Main Market Listing Requirements, and should be read in conjunction with the Group's audited financial statements for the financial year ended

31 December 2022. The accounting policies, method of computation and basis of consolidation applied in the unaudited interim financial statements are consistent with those used in the preparation of the 2022 audited financial statements, except for the changes arising from the adoption of the amendments to MFRS issued by MASB that are effective for the Group's financial year beginning on 1 January 2023.

  1. The amendments to published standards that are effective and applicable for the
    Group's financial year beginning on 1 January 2023
    The amendments to published standards issued by MASB that are effective and applicable for the Group's financial year beginning on 1 January 2023 are as follows:

Amendments to MFRS 101

Disclosure of Accounting Policies

Amendments to MFRS 108

Definition of Accounting Estimates

Amendments to MFRS 112

Deferred Tax related to Assets and

Liabilities arising from a Single

Transaction

International Tax Reform - Pillar Two

Model Rules

The adoption of the above applicable amendments to published standards has not led to any material impact on the Group's financial result, position or disclosure for the current or previous periods, nor any of the Group's significant accounting policies.

1

TELEKOM MALAYSIA BERHAD

Reg. No.: 198401016183 (128740-P)

(Incorporated in Malaysia)

PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134

1. Basis of Preparation (continued)

  1. The amendments to published standards that have been issued but not yet effective and have not been adopted

The amendments to published standards that have been issued but are not yet effective and have not been adopted by the Group are as follows:

Effective for annual periods beginning on or after 1 January 2024

Amendments to MFRS 16

Lease Liability in a Sale and Leaseback

Amendments to MFRS 101

Classification of Liabilities as Current or

Non-current

Amendments to MFRS 107 and

Supplier Finance Arrangements

MFRS 7

Effective for annual periods beginning on or after 1 January 2025

Amendments to MFRS 121

Lack of Exchangeability

Effective for annual periods to be announced by MASB

Amendments to MFRS 10 and

Sale or Contribution of Assets between an

MFRS 128

Investor and its Associate or Joint

Venture

The adoption of the above annual improvements and amendments to published standards are not expected to have a material impact on the financial statements of the Group.

  1. Seasonal or Cyclical Factors
    The operations of the Group were not materially affected by any seasonal or cyclical factors.
  2. Unusual Items Affecting Assets, Liabilities, Equity, Net Income or Cash Flows
    There were no unusual items affecting assets, liabilities, equity, net income or cash flows due to their nature, size or incidence for the 3rd quarter and financial period ended 30 September 2023.

2

TELEKOM MALAYSIA BERHAD

Reg. No.: 198401016183 (128740-P)

(Incorporated in Malaysia)

PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134

  1. Material Changes in Estimates
    There were no material changes in estimates reported in the prior financial year that may have given rise to a material impact on the financials reported by the Group for the 3rd quarter and financial period ended 30 September 2023.
  2. Issuances, Repurchases and Repayments of Debt and Equity Securities
    1. Repayment of Islamic Medium Term Notes (IMTN)

    On 24 August 2023, the Group repaid in full, at its nominal value, the RM250.0 million IMTN at 4.34% per annum upon its maturity date. The IMTN was issued as part of the RM3.0 billion IMTN Programme as disclosed in note 17(b) of the Group's audited financial statements for the financial year ended 31 December 2022.

    1. Long Term Incentive Plan (LTIP)

    During the current financial period, the Company issued 15,588,100 new ordinary shares amounting to RM78.1 million pursuant to the vesting of shares from the Restricted Shares and Performance Shares under the LTIP granted to employees as described in note 14 of the audited financial statements for the financial year ended 31 December 2022.

    The new ordinary shares were listed and allotted on the Main Market of Bursa Securities on 16 February 2023 and 22 September 2023. There has been no further grant of new LTIP tranches during the current financial period.

    1. Early redemption of Debentures

    On 10 August 1995, the Company issued USD300.0 million 7.875% per annum Debentures that will become due on 1 August 2025, as disclosed in the note 17(e) to the audited financial statements for the financial year ended 31 December 2022.

    On 9 May 2023, USD59.1 million of debentures were redeemed ahead of its maturity and cancelled subsequently.

  3. Dividends Paid
    1. The final interim single-tier cash dividend of 7.5 sen per share amounting to RM286.6 million in respect of the financial year ended 31 December 2022 declared on 28 February 2023 was paid on 31 March 2023.
    2. An interim single-tier cash dividend of 9.5 sen per share amounting to RM363.0 million in respect of the financial year ending 31 December 2023 declared on 25 August 2023 was paid on 29 September 2023.

3

TELEKOM MALAYSIA BERHAD

Reg. No.: 198401016183 (128740-P)

(Incorporated in Malaysia)

PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134

7. Segmental Information

Segmental information for the Group are as follows:

By Business Segment

All amounts are in RM Million

Shared Services

3rd Quarter Ended 30 September 2023

Unifi

TM One

TM Global

/Others^

Elimination

Total

Operating Revenue

Total operating revenue

1,410.2

729.5

825.1

152.5

3,117.3

Inter-segment @

#

(17.0)

(16.5)

(7.5)

(41.0)

External operating revenue

1,410.2

712.5

808.6

145.0

3,076.3

Results

Earnings before interest and taxation (EBIT)

314.2

164.9

246.8

(168.9)

19.0

576.0

Other gains (net)

2.0

Finance income

27.3

Finance cost

(87.5)

Foreign exchange loss on borrowings

(16.9)

Associate - share of results (net of tax)

4.1

Profit before tax and zakat

505.0

Tax and zakat

37.2

Profit for the financial period

542.2

# Amount less than RM0.1 million

4

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TM - Telekom Malaysia Berhad published this content on 23 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 November 2023 10:29:09 UTC.