Telekom Malaysia : Unaudited Consolidated Result for the 1st Quarter FY2024 Ended

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 financial period ended 31 March 2024. The Group has restated the comparative figures in our financial statements due to a change in the presentation of Government grants. Details are provided in part A, note 14, in accordance with the relevant financial reporting standards.

UNAUDITED CONSOLIDATED INCOME STATEMENT

1ST QUARTER ENDED

FINANCIAL PERIOD ENDED

OPERATING REVENUE

OPERATING COSTS

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

OTHER OPERATING INCOME (net)

OPERATING PROFIT BEFORE OTHER GAINS AND FINANCE COST

OTHER GAINS (net)

OPERATING PROFIT BEFORE FINANCE COST FINANCE INCOME

FINANCE COST

FOREIGN EXCHANGE (LOSSES)/GAINS 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

31/03/2024 RM Million

2,837.0

(538.3)

(2.7)

(1,671.6)

26.5

650.9

0.5

651.4

31.1

(79.0)

(33.7)

(81.6)

2.3

572.1

(144.3)

427.8

31/03/2023 RM Million (RESTATED)

2,785.9

(669.3)

(2.9)

(1,660.2)

19.8

473.3

0.6

473.9

20.3

(79.0)

3.0

(55.7)

2.8

421.0

(89.6)

331.4

31/03/2024 RM Million

2,837.0

(538.3)

(2.7)

(1,671.6)

26.5

650.9

0.5

651.4

31.1

(79.0)

(33.7)

(81.6)

2.3

572.1

(144.3)

427.8

31/03/2023 RM Million (RESTATED)

2,785.9

(669.3)

(2.9)

(1,660.2)

19.8

473.3

0.6

473.9

20.3

(79.0)

3.0

(55.7)

2.8

421.0

(89.6)

331.4

ATTRIBUTABLE TO:
- equity holders of the Company	424.8	330.1
- non-controlling interests	3.0		1.3
PROFIT FOR THE FINANCIAL PERIOD	427.8	331.4
EARNINGS PER SHARE (sen) (part B, note 11)

424.8

3.0

427.8

330.1

1.3

331.4

- basic	11.1	8.6
- diluted	11.1	8.6

11.1	8.6
11.1	8.6

(The above unaudited consolidated income statement should be read in conjunction with the audited financial statements for the financial year ended 31 December 2023)

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
	1ST QUARTER ENDED	FINANCIAL PERIOD ENDED
	31/03/2024	31/03/2023			31/03/2024	31/03/2023
	RM Million		RM Million	RM Million		RM Million
PROFIT FOR THE FINANCIAL PERIOD	427.8	331.4			427.8	331.4
OTHER COMPREHENSIVE INCOME
Items that may be reclassified
subsequently to income statement:
- increase in fair value of investments
at fair value through other comprehensive
income (FVOCI)	0.1	0.8			0.1	0.8
- reclassification adjustments relating to FVOCI
investments disposed	0.3	#			0.3	#
- increase in fair value of receivables
at FVOCI	0.2	4.2			0.2	4.2
- cash flow hedge:
- increase in fair value of cash flow
hedge	12.2	3.4			12.2	3.4
- change in fair value of currency basis	(1.9)	(4.6)			(1.9)	(4.6)
- reclassification of foreign exchange losses
on borrowings	(12.6)	(0.1)			(12.6)	(0.1)
- currency translation differences
- subsidiaries	17.8	(11.9)			17.8	(11.9)
- associate	(0.2)	(0.1)			(0.2)	(0.1)
Other comprehensive income/(loss) for the financial
period	15.9	(8.3)			15.9	(8.3)
TOTAL COMPREHENSIVE INCOME
FOR THE FINANCIAL PERIOD	443.7	323.1			443.7	323.1
ATTRIBUTABLE TO:
- equity holders of the Company	440.7	321.8			440.7	321.8
- non-controlling interests	3.0	1.3			3.0	1.3
TOTAL COMPREHENSIVE INCOME
FOR THE FINANCIAL PERIOD	443.7		323.1			443.7		323.1

# 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 2023)

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
	AS AT	AS AT
	31/03/2024	31/12/2023
	RM Million	RM Million
		(RESTATED)
SHARE CAPITAL	4,070.2	4,070.2
OTHER RESERVES	157.8	141.9
RETAINED PROFITS	4,780.9	4,950.9
TOTAL CAPITAL AND RESERVES ATTRIBUTABLE TO
EQUITY HOLDERS OF THE COMPANY	9,008.9	9,163.0
NON-CONTROLLING INTERESTS	162.6	159.6
TOTAL EQUITY	9,171.5	9,322.6
Borrowings	3,583.1	3,536.8
Lease liabilities	1,559.1	1,634.5
Deferred tax liabilities	1,255.7	1,127.0
Trade and other payables	168.6	192.8
NON-CURRENT LIABILITIES	6,566.5	6,491.1
	15,738.0	15,813.7
Property, plant and equipment	11,585.6	11,796.8
Intangible assets	878.2	896.3
Right-of-use assets	1,233.7	1,263.6
Associate	102.5	100.1
Equity investments at fair value through other comprehensive income (FVOCI)	136.5	136.5
Investments at fair value through profit or loss (FVTPL)	152.7	150.1
Receivables at FVOCI	51.7	49.7
Other non-current receivables/assets	630.1	610.9
Derivative financial instruments	160.1	149.8
Deferred tax assets	19.1	19.1
NON-CURRENT ASSETS	14,950.2	15,172.9
Inventories	196.8	204.6
Trade and other receivables	2,672.6	2,275.0
Contract assets	635.4	644.3
Contract cost assets	341.0	357.3
Receivables at FVOCI	3.1	2.6
Investments at fair value through other comprehensive income (FVOCI)	72.1	70.4
Investments at fair value through profit or loss (FVTPL)	3.7	3.3
Financial assets at fair value through profit or loss (FVTPL)	2.2	2.3
Cash and bank balances	2,419.8	2,955.2
CURRENT ASSETS	6,346.7	6,515.0
Trade and other payables	2,805.5	3,033.3
Contract liabilities	1,270.1	1,247.9
Customer deposits	125.8	135.5
Borrowings	926.7	1,226.4
Lease liabilities	223.1	223.1
Tax and zakat	15.8	8.0
Dividends payable	191.9	-
CURRENT LIABILITIES	5,558.9	5,874.2
NET CURRENT ASSETS	787.8	640.8
	15,738.0	15,813.7
NET ASSETS PER SHARE ATTRIBUTABLE TO ORDINARY
EQUITY HOLDERS OF THE COMPANY (sen)	234.8	238.8

(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 2023)

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2024

		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 2024	4,070.2	89.5	(8.5)	10.9	12.3	37.7	4,950.9	159.6	9,322.6
Profit for the financial period	-	-	-	-	-	-	424.8	3.0	427.8
Other comprehensive income
Items that may be reclassified subsequently to income statement:
- increase in fair value of investments at fair value through other comprehensive
income (FVOCI)	-	0.1	-	-	-	-	-	-	0.1
- reclassification adjustments relating to FVOCI investments disposed	-	0.3	-	-	-	-	-	-	0.3
- increase in fair value of receivables at FVOCI	-	0.2	-	-	-	-	-	-	0.2
- cash flow hedge:
- increase in fair value of cash flow hedge	-	-	12.2	-	-	-	-	-	12.2
- change in fair value of currency basis	-	-	-	(1.9)	-	-	-	-	(1.9)
- reclassification of foreign exchange loss on borrowings	-	-	(12.6)	-	-	-	-	-	(12.6)
- currency translation differences
- subsidiaries	-	-	-	-	-	17.8	-	-	17.8
- associate	-	-	-	-	-	(0.2)	-	-	(0.2)
Total comprehensive income/(loss) for the financial period	-	0.6	(0.4)	(1.9)	-	17.6	424.8	3.0	443.7
Transactions with owners:

• 2nd interim single-tier dividend paid for the financial year ended 31 December 2023 (part A, note 6)
• final single-tier dividend for the financial year ended 31 December 2023 (part A, note 6)

-	-	-	-	-	-	(402.9)	-	(402.9)
-	-	-	-	-	-	(191.9)	-	(191.9)

Total transactions with owners	-	-	-	-	-	-	(594.8)	-	(594.8)
At 31 March 2024	4,070.2	90.1	(8.9)	9.0	12.3	55.3	4,780.9	162.6	9,171.5

(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 2023)

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL PERIOD ENDED 31 MARCH 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	-	-	-	-	-	-	330.1	1.3	331.4
Other comprehensive income
Items that may be reclassified subsequently to income statement:
- increase in fair value of investments at fair value through other comprehensive
income (FVOCI)	-	0.8	-	-	-	-	-	-	0.8
- reclassification adjustments relating to FVOCI investments disposed	-	#	-	-	-	-	-	-	#
- increase in fair value of receivables at FVOCI	-	4.2	-	-	-	-	-	-	4.2
- cash flow hedge:
- increase in fair value of cash flow hedge	-	-	3.4	-	-	-	-	-	3.4
- change in fair value of currency basis	-	-	-	(4.6)	-	-	-	-	(4.6)
- reclassification of foreign exchange loss on borrowings	-	-	(0.1)	-	-	-	-	-	(0.1)
- currency translation differences
- subsidiaries	-	-	-	-	-	(11.9)	-	-	(11.9)
- associate	-	-	-	-	-	(0.1)	-	-	(0.1)
Total comprehensive income/(loss) for the financial period	-	5.0	3.3	(4.6)	-	(12.0)	330.1	1.3	323.1
Transactions with owners:
- final interim dividend paid for the financial year ended 31 December 2022	-	-	-	-	-	-	(286.6)	-	(286.6)
- Long Term Incentive Plan (LTIP):
- ordinary shares granted*	-	-	-	-	5.7	-	-	-	5.7
- transfer from LTIP reserve upon issuance of shares on vesting^	5.0	-	-	-	(5.0)	-	-	-	-
Total transactions with owners
5.0	-	-	-	0.7	-	(286.6)	-	(280.9)
At 31 March 2023	3,991.5	104.1	(9.9)	12.2	82.6	23.4	3,773.5	153.9	8,131.3

# 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 2023)

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
		FINANCIAL PERIOD ENDED
		31/03/2024	31/03/2023
		RM Million		RM Million
Receipts from customers	2,367.2	2,426.5
Payments to suppliers and employees	(1,725.1)	(1,567.7)
Payments to suppliers for short term lease and leases of low value assets	(5.1)	(9.9)
Payments of finance cost	(58.5)	(73.3)
Payments of income taxes and zakat (net)	(9.9)	(104.7)
CASH FLOWS FROM OPERATING ACTIVITIES		568.6		670.9
Contribution for purchase of property, plant and equipment	-	22.3
Disposal of property, plant and equipment	2.3	2.1
Purchase of property, plant and equipment and intangible assets	(233.9)	(649.1)
Maturity of current investments at fair value through other comprehensive income	7.2	3.0
Purchase of current investments at fair value through other comprehensive income	(8.5)	(2.6)
Purchase of investments at fair value through profit or loss	(0.4)	(0.2)
Long term deposits	(8.3)	(8.3)
Deposit with maturity exceeding 3 months	0.8	-
Repayments of loans by employees	4.0	5.5
Loans to employees	(6.6)	(5.0)
Disposal of housing loan	-	127.6
Interests received	25.9	19.0
CASH FLOWS USED IN INVESTING ACTIVITIES		(217.5)		(485.7)
Proceeds from borrowings	-	30.0
Repayments of borrowings	(300.0)	(31.3)
Repayments of lease liabilities	(132.6)	(158.5)
Dividend paid to shareholders (part A, note 6)	(402.9)	(286.6)
CASH FLOWS USED IN FINANCING ACTIVITIES		(835.5)		(446.4)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(484.4)	(261.2)
EFFECT OF EXCHANGE RATE CHANGES	22.4	(19.9)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE FINANCIAL PERIOD	2,697.9	2,344.3
CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL PERIOD	2,235.9	2,063.2

(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 2023)

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 1st quarter and financial period ended 31 March 2024 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 2023. 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 2023 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 2024.

1. The amendments to published standards that are effective and applicable for the
   Group's financial year beginning on 1 January 2024
   The amendments to published standards issued by MASB that are effective and applicable for the Group's financial year beginning on 1 January 2024 are as follows:

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

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.

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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 early by the Group are as follows:

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 1st quarter and financial period ended 31 March 2024.
3. 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 1st quarter and financial period ended 31 March 2024.
4. Issuances, Repurchases and Repayments of Debt and Equity Securities
5. 1. Repayment of Islamic Medium-Term Notes (IMTN)
      On 20 March 2024, the Group repaid in full, at its nominal value, the RM300.0 million IMTN at 4.82% 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 2023.

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TELEKOM MALAYSIA BERHAD

Reg. No.: 198401016183 (128740-P)

(Incorporated in Malaysia)

PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134

1. Dividends Paid
2. 1. The 2nd interim single-tier dividend of 10.5 sen per share amounting to RM402.9 million in respect of the financial year ended 31 December 2023 declared on 23 February 2024 was paid on 29 March 2024.
   2. The final single-tier dividend of 5.0 sen per share amounting to RM191.9 million in respect of the financial year ended 31 December 2023 declared on 23 February 2024 was paid on 19 April 2024.
3. Segmental Information
   Segmental information for the Group are as follows:

	1st Quarter Ended
	31/03/2024	31/03/2023
	RM Million	RM Million
		(RESTATED)
Unifi	1,396.2	1,435.5
TM One	673.0	678.1
TM Global	742.8	662.4
Others/Shared Services	65.1	104.4
Eliminations	(40.1)	(94.5)
Total	2,837.0	2,785.9

The prior year comparatives have been restated for better comparability with current year's disclosures.

1. Material Events Subsequent to the End of the Quarter
   There are no material events subsequent to the reporting date that require disclosure or adjustment to the unaudited interim financial statements.
2. Effects of Changes in the Composition of the Group
   There are no changes in the composition of the Group for the 1st quarter ended 31 March 2024.
3. Changes in Contingent Liabilities Since the Last Annual Balance Sheet Date
   Other than the material litigation disclosed in part B, note 10 of this announcement, there were no other material changes in contingent liabilities since the audited financial statements of the Group for the financial period ended 31 March 2024.

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TELEKOM MALAYSIA BERHAD

Reg. No.: 198401016183 (128740-P)

(Incorporated in Malaysia)

PART A: EXPLANATORY NOTES PURSUANT TO MFRS 134

11. Capital Commitments
(a)	Group
As at 31/03/2024 As at 31/12/2023
RM Million	RM Million
	(RESTATED)

Property, plant and equipment:

Commitments in respect of expenditures2,124.02,328.0 approved and contracted for

(excluding commitments with approved Government grants)

(b)		Group
	As at 31/03/2024 As at 31/12/2023
	RM Million	RM Million
The Group's remaining capital commitment
in a Technology Investment Fund (disclosed	15.2	14.8
as part of the Group's Non-Current

Investments at FVTPL)

Refer to note 30(c) of the audited financial statements of the Group for the financial year ended 31 December 2023.

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