| Type | Announcement |
| Subject | ANNOUNCEMENT OF HEADLINE KEY PERFORMANCE INDICATORS (KPIs) |
| Contents | In an effort to enhance greater transparency to the public, Telekom Malaysia Berhad (“TM”) wishes to announce its headline Key Performance Indicator (“KPIs”) for FY2009 and FY2011. These headline KPIs have been set and agreed by the Board of Directors and management of TM as part of the broader KPI framework that TM has in place, as prescribed under the Government Linked Company (“GLC”) Transformation programme, and is disclosed on a voluntary basis. |
The headline KPIs represent the main corporate targets set by TM for FY2009 and FY2011. The headline KPIs should not be construed as being forecasts. In this respect please note the following:
FY 2009 and FY 2011 Headline KPIs TM will see further growth in broadband and data in view of the current low household penetration rate. Greater consumer awareness and demand for higher speed Internet and data connectivity will further stimulate the growth in this segment.
The roll out of new services enabled by HSBB e.g. IPTV are expected to create more business opportunities related to broadband and data.
The plan for TM in the next 3 years is to become Malaysia’s leading new generation communication provider and broadband champion, embracing customer needs through innovation and execution excellence We will continue to drive our business towards value creation for stakeholders. These will be done through our Performance Improvement Programme (PIP 2.0) and business rationalisation exercise. TM’s PIP centres on four main thrusts:
- These headline KPIs are targets or aspirations set by the company as a transparent performance management practice. These headlines shall not be construed as forecast, projection or estimates of the company or representations of any future performance, occurrence or matter as the headlines are merely a set of target/aspiration of future performance aligned to the company’s strategy and which have been derived on the assumption that the Group shall operate under the current business environment.
- TM faces increasing competitions within the industry landscapes. Major challenges will include the continued decline in Voice usage in line with global trend where Mobile continues to substitute Fixed. The discounted call services remain a threat. In addition, the roll out of wireless broadband technologies (HSDPA, WiMAX, WiFi) is expected to have an impact on fixed broadband.
- TM expects to face series of challenges as a result of global financial crisis and slowing economic growth. This poses further threats to our growth and earnings. Nevertheless, the Group is ready and believes through the continuous improvements and proper executions of strategies and plans, the impact of the above challenges is anticipated to be lowered down.
FY 2009 and FY 2011 Headline KPIs TM will see further growth in broadband and data in view of the current low household penetration rate. Greater consumer awareness and demand for higher speed Internet and data connectivity will further stimulate the growth in this segment.
The roll out of new services enabled by HSBB e.g. IPTV are expected to create more business opportunities related to broadband and data.
| Headline KPIs |
2009 Target
|
2011 Target
|
| Financial Perspective |  |
|
| Revenue growth |
1% - 2.5%
|
2%-3%
|
| EBITDA margin |
Low to mid 30s%
|
Low to mid 30s%
|
|
|
|
| Customer Centricity Perspective | Committed to spend at least 3% of revenue per annum for improvement in quality of customer experience | |
-
- Revenue growth
We expect revenue growth to gradually pick up over the next 3 years driven by our retail and wholesale business. On the retail front, growth will be driven by new services enabled by HSBB in the consumer segment and ICT services from both enterprise and government segments. While on the wholesale front, growth will be driven by bandwidth for infrastructure build by mobile and wireless operators. - EBITDA margin
EBITDA margin is expected to be between low to mid-30s% in 2009 and 2011 due to higher business cost primarily direct cost such as HSBB enabled services like IPTV (content and set-up boxes), business process outsourcing (BPO) expansion to the region e.g call centre in Indonesia, and ICT expansion into domestic enterprise and government segment. - Customer centricity
TM is committed to change the way we serve customers by addressing overall customer experience. This includes customer handling, installation, restoration and re-connection, network quality for key services i.e. voice, broadband and data services.
- Revenue growth
The plan for TM in the next 3 years is to become Malaysia’s leading new generation communication provider and broadband champion, embracing customer needs through innovation and execution excellence We will continue to drive our business towards value creation for stakeholders. These will be done through our Performance Improvement Programme (PIP 2.0) and business rationalisation exercise. TM’s PIP centres on four main thrusts:
- Customer centricity and quality improvements – focus on quality of customer experience and create continuous improvement mechanisms
- Leadership through innovation and commercial excellence – optimizing product portfolio, channel and sales force improvement
- Operational excellence and capital productivity – structural cost optimization and process improvements, and increase working capital efficiency in particular credit management and direct costs
- One company mindset with execution orientation – improve talent management and execution capacity, mindset change. This means that everybody at TM will move together as a team with one target in mind, that is, customer satisfaction.
Announcement Info
| Company Name | TELEKOM MALAYSIA BERHAD |
| Stock Name | TM |
| Date Announced | 11 Nov 2008 |
| Category | General Announcement |
| Reference No | TM-081111-55454 |