Chairman & MD Statement

Dear readers,

We are delighted to share our analysis regarding TMH’s performance in FY23/24. Before going into the details, we think it is important to remember the context in which we operate because it certainly impacts our business.

The World Bank recently published a report about the economic situation in Myanmar in June 2024. They estimate that Myanmar’s GDP remains 10% below pre-pandemic levels, something unique in ASEAN. Furthermore, it says that the economy is very much impacted by inflation and a significant depreciation of the Myanmar kyat: the report says it lost 28% against the dollar between June 2023 and May 2024.

If we look at the stock market’s performance, it is also anaemic. Between April 2023 and March 2024, the Myanpix index lost 1%, with the performance of listed companies ranging from a 35% contraction to an 8% increase. What about us? During the same period, the value of our shares remained the same. However, this single indicator does not fully reflect what we have accomplished, as we now perceive the first benefits of the transformation we initiated three years ago. This, combined with a very cautious and all the challenges, TMH managed to generate MMK 183 million in profit. This demonstrates the quality of our management and our ability to safeguard shareholder value.

Our ability to remain profitable is one of many achievements. The significant growth of our income reflects the relevance of our strategic decision to task a specific team to explore new market opportunities. This year, this team managed to secure MMK 4,511 million of income, when TMH’s overall income in FY22/23 was MMK 4,298 million. As a result, our total revenue reached MMK 7,251 million in FY23/24, a 69% increase on a yearly basis.

Furthermore, the cash flow from our activities became positive again in FY23/24, reaching MMK 1,120 million, compared to MMK -1,714 million in FY22/23. Our Company has the financial means to finance its growth and invest in its future. This should give us some confidence that TMH’s foundations are solid and healthy. But we also need to remain humble and prudent.

We operate in areas severely impacted by multiple conflicts. We are very mindful of the risks to our people, and we always prioritise the safety and security of our employees. For instance, we temporarily suspended our operations in northern Shan State after October 2023. But we also know that our work enables hundreds of thousands of people to communicate. For instance, according to the data published by the Posts and Telecommunications Department, there are 1,948 towers in Kayin, Mon and Tanintharyi, which means that we maintain 46% of the towers in these regions. At TMH, our work impacts, therefore, the daily lives of millions of people. This creates an obligation upon us, and this is something that we are all proud to live up to.

The ongoing conflicts across the country have also impacted our clientele. And we lost some business customers for our fibre activities for the very first time last year.

Unfortunately, last year we also recorded a severe accident that impacted one of our staff permanently, as he fell from a tower and broke his spine. TMH stood by his side, supported all the medical expenses for many months, and decided to provide him with an allowance. We hired a new HSE manager and expect to reinforce our security and safety protocols, as no one should come to harm at work.

Likewise, thanks to the control environment that we have implemented, our internal audit and finances teams detected a case of fraud in the northern Shan State, where some of our staff embezzled a significant amount of money. Again, we analysed the root cause and adjusted our standard operating procedures to strengthen our management approach.

We acknowledge the contribution of the people who are building TMH every day. We would not be able to operate without the commitment of our 250 employees. Their dedication and professionalism power our Company. To reward them, we have set clear goals because if we can develop our activities, our people should also harvest the fruits of their hard work. We are pleased to report that TMH spent a total of MMK 601 million on its HR costs in FY23/24, a 10% increase compared to FY22/23.

Finally, we are also grateful for the time and expertise of our Board, especially for the support provided by our three independent non-executive directors. Their guidance helps us build a more robust TMH, and we encourage you to read their statement in our Annual Report. We will continue to enhance the quality of our corporate governance framework and disclosure. We are happy to share that we have decided to publish our Board Policy and Code of Conduct on our website; this reflects our commitment to transparency and responsible business conduct.

More than ever, we know that our customers and team members opt for companies that are driven by a clear sense of purpose. This report aims to provide accurate data on our financial and non-financial performance. To build a stronger TMH, we rely on your trust. Therefore, we welcome your comments or questions about our report: please get in touch with our company secretary, who is also in charge of our compliance and sustainability efforts, by email at [email protected].

Your sincerely,