2/25/2026

speaker
Delano
Investor Relations Team

Assalamualaikum and a very good evening, everyone. Welcome to TM's Financial Year 2025 Analyst Briefing, hosted by our Managing Director and Group CEO, Encik Ahmad Huzaimi, together with our Group CFO, Encik Ahmad Fairuz. I'm Delano from TM's Investor Relations Team, and if you are in our distribution list, you would have received a copy of our analyst briefing presentation by email earlier. The slides are also available on our IR website under quarterly results and will be shown during this session. But before we begin, I would like to kindly remind everyone to keep your microphones muted. We will only open the floor for Q&A session after the presentation. Without further ado, I would like to hand over the briefing to Encik Ammar. Over to you, Chief.

speaker
Ahmad Huzaimi
Managing Director and Group CEO

Thanks, Zainal. Assalamualaikum and a very good evening. Thank you everyone for making time to attend the briefing today. As usual, I will begin with our highlights before providing a brief overview of our overall 2025 financial year performance. Filus will then elaborate on the operational and financial details, and I will be back at the end of the presentation with some concluding remarks before we proceed to the Q&A session. Let me begin with our recent highlights, including the latest update on our products, collaborations, as well as the award we received during the quarter. In the B2C segment, Unify continued to strengthen its convergence leadership to enhance Unify Universe campaign and integrated digital experience with attractive connectivity, including mobile, alongside enriched content and smart home offerings. The launch of our UniFi TV 2.0 in the second half of the year have seen encouraging adoption with 1 million Malaysian downloading the new apps in less than a month. UniFi Business continue to empower MSMEs with customizable and reliable digital solutions to grow their revenue and improve productivity. This execution was further recognized through PC.com Leaders' Choice and Industry Choice Award received during the year, reflecting our strong customer and industry validation across Unify and Unify Business. In the B2B segment, TM1 continues to drive digital transformation for government and enterprises. Our participation in MyCityExpo 2025 provides a platform for us to showcase our AI-powered city management with digital solution capabilities, enhancing visibility and engagement with key stakeholders. Last quarter, we were also entrusted by Bintulu Port Holdings to an MOU to support their long-term digitalization roadmap, reflecting confidence in TM's mission-critical solution for large-scale infrastructure operators. We are also named ASEAN Partner of the Year by Cisco, showcasing solid execution and growing traction across connectivity, cloud, data center, and cybersecurity solutions. In the C2C segment, TM Global made solid progress in strengthening regional digital infrastructure and data center capabilities. The completion of our KVDC and IPDC Block 2 expansion has increased total power capacity, supporting growing hyperscaleless demand, and AI-driven workloads. This execution has translated into differentiated product capabilities, including the scaling of GPU as a service, And our TM Nexera has recently secured 280 MW of power, paving the way for the upcoming hyper-connected AI-ready data center campus in Johor. TM global industry leadership continues to be recognized with dual wins at the Asian Telecom Awards 2025, proving our capabilities in advancing digital infrastructure. Overall, momentum remains but will continue with steady progress in translating strategy into delivery as we advance our aspiration to become early to powerhouse by 2030. Before I go into the numbers, let me start with the fundamentals. For year 2025, where the underlying business remains strong, we delivered strong revenue growth, maintained healthy cash flow generation, and strengthened momentum across all customer segments, particularly in the second half of the year. STM accelerates its transition towards a more digital and technology-driven business. We remain attentive to the evolving aspiration of our workforce. During the year, we receive a significant number of voluntary separation requests from employees seeking early retirement or career transition. As a responsible employer, we have accommodated this request with a fair and attractive transition package. This is a win-win for both parties in the long run. Employees can comfortably transition to the next phase of their life while enabling TM to progressively align towards our future digitalization priorities. This underscores the group commitment in ensuring responsible workforce management and upholding the social pillar of our sustainability framework. This has resulted in moderated reported EBIT year-on-year. However, excluding this one-off impact, our underlying earning remains resilient, supported by 8.9% quarter-on-quarter revenue growth. Reflecting the strength of our core operations. With healthy cash flow generation, the board declared a total dividend of $0.31 per share comprising of $0.27 dividend and a special dividend of $0.04. Together with special dividend, total dividend payout stood at circa 70% of reported Patami. The highest payout ratio since we first revised our policy in 2018. We are confident of keeping this momentum to ensure continued commitment and value creation to the shareholders. CapEx for year 2025 is approximately $1.9 billion or 16.1% of our revenue. As we continue to support key growth initiatives, CapEx spending remains within guidance. Looking ahead, TM will continue to deliver sustainable dividends, maintain disciplined capex and further strengthening its balance sheet to support long-term earning growth. With that, I will now hand over to Firuz to walk you through the financial and operation highlights in greater detail.

speaker
Delano
Investor Relations Team

Thank you, Chief.

Disclaimer

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Investor presentation