Telekom Malaysia : 38th Annual General Meeting Pre-AGM Live Questions

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.

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			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.

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			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.

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			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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