Axiata Group Berhad

4Q 2019 Results

21 February 2020
Tan Sri Jamaludin Ibrahim, President & Group CEO
Dato’ Izzaddin Idris, Deputy Group CEO
Vivek Sood, Group CFO

| 4Q19
Disclaimer

The following presentation contain statements about future events and expectations that are forward-looking statements
by the management of Axiata Group Berhad (“Axiata”) (“Company”), relating to financial trends for future periods,
compared to the results for previous periods, characterised by the use of words and phrases such as “might”, “forecast”,
“anticipated”, “project”, “may”, “believe”, “predict”, “expect”, “continue”, “will”, “estimate”, “target” and other similar
expressions.

Forward looking information is based on management’s current views and assumptions including, but not limited to,
prevailing economic and market conditions. Our business operates in an ever-changing macro environment. As such, any
statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves
known and unknown risks, uncertainties and other factors which may cause Axiata actual results, performance and
achievements to be materially different from any future results, performance or achievements expressed or implied by
such forward-looking statements.

This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or
purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No
reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its
completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor
any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its
contents or otherwise arising in connection therewith.

“RM” shall mean Ringgit Malaysia being the lawful currency of Malaysia. Any discrepancies between individual amounts
and totals are due to rounding.

2 | 4Q19
Axiata Group Berhad
Key Messages

| 4Q19
 Key messages for 20191
❖ ‘Shifting Gear’ yielded highest ever EBITDA of RM9.3bn: Double digit EBITDA growth of 10.9% in FY19, outpacing revenue
growth of 2.3%. Underlying PATAMI was flat due to absence of M1 contribution, higher taxes for Robi and M&A expenses.

❖ All OpCos are now profitable, as XL and Robi stepped up. Data monetisation and upselling translated into highest ever
revenue and EBITDA for XL in FY19; ROIC improved 4.1% pts to 6.7%. Despite surprise introduction of higher taxes in
Bangladesh, Robi delivered profit of BDT799m; ROIC improved 4.1% pts to 4.2%.

❖ Despite shift to focus on profit, most OpCos still gained market share. Most OpCos achieved revenue growth multiple of
≥1x, with Robi, Smart and edotco achieving double digit revenue growth.

❖ Challenging environment for Celcom and Ncell: Celcom’s revenue impacted by lower MTR2, wholesale revenue and
devices; core revenue flat. Ncell was hit by lower contribution from both core mobile and ILD. However, stringent cost
management delivered 7.8% EBITDA growth for Celcom, whilst Ncell kept EBITDA margin high at above 57%.

❖ “Operational Excellence” delivering sustainable cost structure: Cost excellence generated savings of RM1.3bn in FY19.
Opex savings of RM0.6bn kept cost flat YoY, whilst FY19 actual capex spend was RM0.6bn below budget of RM6.8bn.
EBITDA margin improvement of 3.0% pts to 37.9%.

❖ Axiata ROIC of 6.7% is highest since FY16: FY19 ROIC for Axiata and XL were both at 6.7%. Both are on track to achieve
their 2022 aspiration target to create shareholders value with ROIC>WACC.

❖ Exceeded FY19 Headline KPIs: Axiata has exceeded Headline KPIs for EBITDA growth (10.9%, vs KPI: 5-8%) and ROIC
(6.7%, vs KPI: 5.2-5.6%), but revenue growth came in below (2.3%, vs KPI: 3-4%); also exceeded internal KPI for revenue
ex-device growth (5.1%, vs target of 4.4%).

❖ FY19 DPS maintained at 9.5 sen: In addition to second interim dividend of 4.0 sen, announced special dividend of 0.5 sen
given one-off gain from disposal of M1; DPR ex-special dividend is 86% (vs 85% in FY18).
4 | 4Q19
1. Pre-MFRS 16 and at constant currency
2. Mobile termination rate
 “Shifting Gear” tactics gaining momentum in 2019
Almost all OpCos achieved double-digit growth in PATAMI and FCF, while still gaining revenue market share.

Δ 2019 vs 2018

^Adj.
DD
EBITDA SD DD DD SD DD DD

YTD #Adj.
Growth SD
PATAMI DD DD DD DD DD DD
Rate

DD
FCF DD DD DD DD DD DD

Note: Underlying figures based on Pre-MFRS 16 and at constant currency

# Adj. Robi PATAMI excludes gain on edotco sale in 2018 and higher BD taxes in 2019
^ Adj. edotco EBITDA excludes the effect of non-recurring items such as business development and M&A-related expenses and share-based payment expenses
“SD” Single Digit; “DD” Double Digit 5 | 4Q19
Axiata Group Berhad

4Q 2019 Results

| 4Q19
 FY19 reported results
FY19 revenue grew 2.9% while EBITDA grew 27.4%. FY19 PATAMI of RM1,458m lifted by one-off gains from
disposal of M1, divestment of non-core digital businesses and disposal of Idea rights.

Revenue (RMm) EBITDA (RMm) PATAMI (RMm)

+2.9% +27.4% +>100% +>100%

+85.5%
23,886 24,583 10,619 1,458
+0.0% +30.8% 8,334 179 333
+0.9%
-2.7%

6,267 6,213 6,267 2,802 2,725 -1,430

2,084

4Q18 3Q19 4Q19 FY18 FY19 4Q18 3Q19 4Q19 FY18 FY19 -4,762
4Q18 3Q19 4Q19 FY18 FY19

7 | 4Q19
 FY19 underlying performance1
“Operational Excellence” delivered double digit EBITDA growth of 10.9% in FY19, outpacing revenue growth
of 2.3%; record EBITDA of RM9.3bn. PATAMI flat due to absence of M1 contribution, higher taxes for Robi and
M&A expenses.

Revenue (RMm) EBITDA (RMm) PATAMI (RMm)

+2.3% +1.2%
-0.9% 24,446 1,022
6,209 +10.9% +74.6% 289
+12.2% 2,339 9,240

+1.1% +13.5%
6,281 23,886 24,583 293 1,010 1,025
-2.2%
2,375
8,334 9,311

6,267 6,213 6,267 258 291

2,084 2,427 2,368 165

4Q18A 3Q19A 4Q19A FY18A FY19A 4Q18A 3Q19A 4Q19A FY18A FY19A 4Q18A 3Q19A 4Q19A FY18A FY19A

• FY19 revenue growth of 2.3%, with • Double digit EBITDA growth of 10.9%, • FY19 PATAMI grew at a slower rate of
positive contribution from all OpCos, outpacing revenue growth of 2.3%. 1.2% due to:
except: • Double digit growth from XL, Robi, a. absence of M1 contribution for FY19
a. Celcom: -3.9% for service revenue, Smart and edotco. b. impact from unexpected change in
largely in line with MY mobile • Achieved cost excellence of RM1.3bn, BD minimum tax rate
industry ahead of RM1.1bn target. c. M&A expenses for proposed merger
b. Ncell: -4.3% for core mobile, • Opex saving of RM600m kept cost with Telenor Asia.
impacted by consumption levies and flat YoY and lifted EBITDA margin by • FY19 normalised PATAMI is RM960m.
intense competition from ISPs. 3.0% pts to 37.9%.
• Revenue ex-device growth of 5.1%.

1. Underlying performance – pre-MFRS 16 at constant currency

Note:
xx – pre-MFRS at actual currency xx – Underlying performance xx% – Underlying performance growth rate
8 | 4Q19
Refer to Appendix for details of Revenue, EBITDA and normalised PATAMI bridging
FY19 underlying performance1
FY19 Underlying PATAMI of RM1,022m driven by EBITDA improvement mainly in XL and Robi, offset by
absence of M1 contribution, higher taxes for Robi and M&A expenses.

235
53
114
162
891
387
RM million 1,010 1,022
34

FY18 PATAMI EBITDA Digital D&A Finance cost Share of Tax Others FY19
business asco & JV (MI, other Underlying
income) PATAMI

1,458

RM million 577
1,022
65 3
1 78

FY19 PATAMI M&A related Forex and Others MFRS Forex FY19
gains derivative translation Underlying
PATAMI
9 | 4Q19
1. Underlying performance – pre-MFRS 16 at constant currency
 Capital expenditure and cash flow
FY19 FCF jumped 2.2x to RM4.4bn; pre-MFRS 16, FCF increased 50.6% to RM3.0bn, lifted by double-digit
EBITDA growth and flat capex.

Capital expenditure (RMm) Free Cash Flow1 (RMm) Operating Free Cash Flow1 (RMm)

Capex intensity 26% 25% FCF yield 9% 18% OFCF yield 3% 7%

+1.2% +>100% +>100%

6,127 6,202 4,357 1,792

1,056 1,019
818
855 1,600 1,009
605

588
478
2,097 2,361 2,025 1,360 268 314
1,416 1,635 218
183 301
850
432 233
430 727 942 400
766 314
642 316
507 307
246 328
423 622
678 -550
994
632 1,149
269
316 515 -180 -1,250
297
252 407 -382
153 571
-58
-526 -1,226 -864
742
480 505
598
21 18
FY18 FY19 FY18 FY19 FY18 FY19

Celcom Dialog Smart edotco

XL Robi Ncell Others
Note:
FCF = EBITDA-Capex
OFCF = EBITDA- Capex- Net Interest-Tax
1. Includes spectrum fees amounting to RM182m in FY18 and RM60m in FY19
10 | 4Q19
 Operational excellence1
FY19 cost remained largely flat at RM13.8bn as higher network expansion cost mainly at XL, was offset by
savings in network/IT, sales & marketing and staff costs.

+2.1%

BAU cost growth: -0.7%

308
550 13,776
180
13,586 286
98 13,490
60
RM million

FY18 Cost Other Network/IT Sales & Marketing Staff cost Others FY19 BAU New sites cost FY19 Cost
(Ex-devices) network cost cost savings cost savings savings cost base (Ex-devices)

11 | 4Q19
1. Underlying performance – pre-MFRS 16 at constant currency
 Balance sheet
Amidst macro uncertainties ahead, balance sheet is further strengthened as gross debt/EBITDA2 is reduced
to 1.8x (2.4x post MFRS16); 67% of debt are on fixed rate and 59% in local currency.

Group Borrowings – by currency Group Borrowings – hedged/unhedged loans Group Borrowings – fixed/floating rates

In millio n Lo an currency USD Lo cal To tal (RM) Unhedged USD loans

HoldCo and Non OpCo USD 1,359 - 5,585
S ub - to tal 1 , 359 - 5, 58 5 22% Floating
OpCos USD 328 1,480 33%
RM 4,767 4,767
IDR 12,809,332 3,778
BDT 16,138 778 59%
19% Local Currencies
SLR 14,678 332 67%
Hedged USD loans
PKR 3,982 106 Fixed
S ub - to tal 328 1 1 , 241
To tal Gro up 1,687 1 6 , 8 26

Gross and net debt/EBITDA (x) Cash (RMm)

Gross debt to EBITDA Net debt to EBITDA Total cash HoldCo & Non OpCo cash
(1)
2.73 (1) (1) (1)
2.51 2.44 2.42 6,750
2.29 (1) (1) (1) (1)
2.03 1.98 1.97 2.02 5,418
5,060 4,982
1.69
4,224
3,825
(2)
2.21 2,268
(2) 1,806 1,795
(2) 1.97 (2) (2) 1,441
1.43 (2) 1.86 1.81
1.37 (2) (2)
1.32 1.35
4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19

(1) Post-MFRS 16, which includes lease liabilities 12 | 4Q19

(2) Pre-MFRS 16
 Pre-MFRS 16 basis
1 Digital Telco: Celcom
Double digit growth in FCF and PATAMI, despite challenging market environment arising from lower mobile
termination rates (MTR) and wholesale revenue.

Mobile service revenue (RMm) EBITDA (RMm)

-3.9%

6,030 150 +7.8%

176

-0.5% 211 5,793

1,904 2,051

FY18 FY19

FY18 Postpaid Prepaid Others FY19 EBITDA margin

25.9% 30.6% xx%
service rev service rev

Core (ie postpaid and prepaid) revenue flat. Overall, mobile FY19 EBITDA grew 7.8% with 4.7% pts margin improvement
service revenue declined 3.9% due to impact of lower MTR to 30.6% on the back of lower direct expenses and staff cost.
and wholesale revenue.

FCF1 (RMm) PATAMI (RMm)

+21.9% +>100% (excl. asset impairment and restructuring charge: +14.1%)

712

1,033 Asset impairment

847 813
Employee restructuring charges
301

FY18 FY19 FY18 FY19

FY19 FCF improved by 21.9%, lifted by EBITDA growth while FY19 PATAMI surged 170% largely due to absence of one-off
capex was down 3.6%. asset impairment and employee restructuring charges in
FY18.

1. FCF = EBITDA – capex 13 | 4Q19

 Pre-MFRS 16 basis
1 Digital Telco: XL
Data monetisation and upselling translated into highest ever revenue and EBITDA; returned to profit and
ROIC improved 4.1% pts to 6.7%.

Revenue (IDRbn) EBITDA (IDRbn)

+9.3%

25,150 +17.1%
23,001

Others
9,966
Non-data 8,512
+28.0%
Data
YTD
FY18 FY19
FY18 FY19
37.0% 39.6% xx% EBITDA margin
32 35 xx XL ARPU (IDR ‘000)

FY19 revenue growth of 9.3% driven by strong data growth Double digit EBITDA growth of 17.1% with 2.6% pts margin
of 28.0% as ARPU increased 9.4% to IDR35k. improvement to 39.6%; achieved highest EBITDA ever.

FCF1 (IDRbn) PATAMI (IDRbn)

+14.6% +>100%

713

1,971 -3,297
1,720

FY18 FY19
FY18 FY19
2.6% 6.7% xx% XL ROIC

FY19 FCF grew 14.6% driven by EBITDA growth of 17.1%, Returned to profit with FY19 PATAMI of IDR713bn, versus
despite capex increase of 17.7% to IDR8.0trn. losses of IDR3.3tn in FY18. ROIC rose to 6.7%.

1. FCF = EBITDA – capex 14 | 4Q19

Note: Average forex rate FY19 1 IDR = 0.000293 MYR
 Pre-MFRS 16 basis
1 Digital Telco: Robi
FCF turned positive driven by EBITDA growth of 43.9%; remained profitable despite impact of higher
Bangladesh taxes from Budget 2019.

Service revenue (BDTm) EBITDA (BDTm)

+9.7%
+43.9%

Others
Voice 23,967
16,650
Data
+28.0%
YTD FY18 FY19
FY18 FY19
24.5% 32.0% xx% EBITDA margin
119 123 xx Robi ARPU (BDT)

FY19 service revenue growth of 9.7%, driven by strong data Double digit EBITDA growth of 43.9% with 7.5% pts margin
growth of 28.0% as ARPU increased 3.4% to BDT123. improvement to 32.0%, driven by high operating leverage
and lower sales & marketing cost.

FCF1 (BDTm) PATAMI (BDTm)

-62.8% (excl. edotco gain and tax impact: +>100%)
+300%
2,978

2,147 Tax impact

9,753 799
edotco sale gain

-4,231 -3,069
FY18 FY19
FY18 FY19
0.1% 4.2% xx% Robi ROIC

FY19 FCF turned positive to BDT9.8bn, as EBITDA jumped FY19 PATAMI declined 62.8% due to absence of gain on
43.9% while capex declined 31.9%. edotco sale in 3Q18 and new BD taxes since 2Q19. ROIC rose
to 4.2%.

1. FCF = EBITDA – capex 15 | 4Q19

Note: Average forex rate FY19 1 BDT = 0.049095 MYR
 Pre-MFRS 16 basis
1 Digital Telco: Dialog
Revenue grew 7.0% and FCF grew 20.5% notwithstanding Easter Sunday incident impacts and floor rate
removal in 2018.

Revenue (SLRm) EBITDA (SLRm)

+7.0%

116,827 +17.0%
109,157 YTD +1.5%

+7.1%
YTD

43,486 44,151
+0.6%
YTD

FY18 FY19 FY18 FY19

Mobile Fixed TV Others

FY19 revenue growth of 7.0%, led by TV (+17.0%), fixed FY19 EBITDA grew at a slower rate of 1.5% due to change in
(+7.1%) and mobile (+0.6%). revenue mix.

FCF1 (SLRm) PATAMI (SLRm)

+20.5% +43.4%

15,548 10,755
12,905
7,501

FY18 FY19 FY18 FY19

FY19 FCF growth of 20.5%, driven by higher EBITDA and FY19 PATAMI rose 43.4%; excluding non-cash translational
6.5% lower capex. forex gain/loss, PATAMI declined 14.3% mainly due to higher
depreciation charges.

1. FCF = EBITDA – capex 16 | 4Q19

Note: Average forex rate FY19 1 SLR = 0.023185 MYR
 Pre-MFRS 16 basis
1 Digital Telco: Ncell and Smart
Ncell: Core mobile revenue impacted by market shrinkage due to levies and competition from ISPs; EBITDA
margin sustained above 57%.
Smart: Excellent performance with double digit growth across all metrics.
Ncell revenue (NPRm) Ncell EBITDA (NPRm)

(Core mobile: -4.3%, ILD: -10.7%) -12.2%

-5.7% 35,473
31,132
57,465 ILD
54,161
Core mobile

ILD
FY18 FY19
Core mobile
xx% EBITDA margin
FY18 FY19 61.7% 57.5%

FY19 revenue declined 5.7% driven by both core mobile EBITDA margin sustained at 57.5% despite lower ILD
(-4.3%) and ILD (-10.7%). Core revenue was impacted by contribution (-11.0%).
consumption levies and intense competition from ISPs.

Ncell PATAMI (NPRm) Smart FY19 growth (%)

-8.9%
46.7

14.8
12.0
9.7
15,280 13,916

FY18 FY19 Revenue EBITDA PATAMI FCF 1

FY19 PATAMI slipped 8.9%, margin sustained at 25.7%. Solid performance with double-digit growth across all
metrics.

1. FCF = EBITDA – capex 17 | 4Q19

Note: Average forex rate FY19 1 NPR = 0.036772 MYR
 2 Digital Businesses: Boost, ADA and Apigate
ADA delivered on its commitment to be PAT positive in FY19.

• 1.4x YoY growth in users to 5.1m. • Asia’s largest independent data- • Axiata’s homegrown application
powered digital marketing agency programme interface (API) platform.
• 2.0x YoY growth in merchants to delivered on its commitment to be
125k. PAT positive in FY19. • Connected to >140 digital merchants.

• 10.5x YTD growth in gross transaction • Notable clients secured in 2019 • 85% YTD growth in GTV, driven by
value (GTV). included FrieslandCampina, Indonesia; 72% increase in Monthly Active Users
Burger King, Thailand; Watsons, for its Payment business and 180%
• 2.8x YTD growth in GTV/user to Philippines; ClassPass, Singapore; surge in Application-to-Person (A2P)
RM323/week. Samsung, Cambodia; Taaga, traffic.
Bangladesh; and DIMO, Sri Lanka.

18 | 4Q19
 Pre-MFRS 16 basis
3 Infrastructure: edotco
Excellent performance with double digit growth across all metrics; 11.4% increase in towers whilst
sustaining a stable tenancy ratio of 1.6x.

Revenue (RMm) EBITDA (RMm)

+26.4% (excl. M&A cost and share-based payment expenses: +21.7%)

+17.9

1,809 - Malaysia 909

1,534 - Bangladesh 746

- Sri Lanka
- Cambodia 864
684
- Myanmar M&A cost and share-based payment expenses
- Pakistan
- Laos FY18 FY19

FY18 FY19 48.6% 50.2% xx% Adj. EBITDA margin

FY19 revenue growth of 17.9%, with positive contribution FY19 adjusted EBITDA growth of 21.7%; margin +1.6% pts to
across major footprints. 50.2% driven by new tenancy growth and lower maintenance
costs in 2019.

FCF1 (RMm) PATAMI (RMm)

+>600% +23.9%

273
224
181

-53
FY18 FY19 FY18 FY19

FY19 FCF turned positive to RM273m driven by the FY19 PATAMI growth of 23.9%, also driven by improvement
improvement in EBITDA and lower CAPEX spend. in EBITDA.

1. FCF = EBITDA – capex 19 | 4Q19

FY19 Headline KPIs
EBITDA growth and ROIC exceeded Headline KPI.

FY19 FY19
Headline KPIs Achievement

(pre-MFRS 16 @ constant currency)

Revenue growth 3 - 4% 2.3%

EBITDA growth 5 - 8% 10.9%

ROIC 5.2 - 5.6% 6.7%

Capex1 RM6.8bn RM6.2bn

Revenue ex-device growth1 4.4% 5.1%

Note: Constant currency is based on the FY18 average forex rate (e.g. 1 USD = RM4.034)
ROIC is defined as EBIT - tax + Share of Associates / Average Invested Capital (excluding cash)
20 | 4Q19
1. Not a Headline KPI
 Proposed dividends:
FY19 DPS maintained at 9.5sen, including special dividend of 0.5sen given one-off gain from disposal of M1.

DPS1 Normal: 10 sen 19 sen 23 sen 22 sen 22 sen 20 sen 8 sen 8.5 sen 9.5 sen 9.0 sen

Special: 12 sen 0.5 sen

84% 85% 85% 86%

75%
70%
64%
60%
50%

30%
DPR2

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1. DPS: Dividend per share 21 | 4Q19

2. DPR: Dividend payout ratio excluding special dividend
Axiata Group Berhad
Moving Forward

| 4Q19
FY20 Headline KPIs
“Operational Excellence” is expected to deliver EBITDA growth ahead of revenue growth in 2020.

FY20
Headline KPIs
@ constant currency

Revenue growth1 3.5 – 4.5%

EBITDA growth 4.0 - 5.5%

ROIC 5.5 – 6.0%

Capex2 RM6.6bn

Note: Constant currency is based on FY19 average forex rate (e.g. 1 USD = RM4.142)
ROIC is defined as EBIT - tax + Share of Associates / Average Invested Capital (excluding cash)

1. Revenue is based on Revenue excluding devices 23 | 4Q19

2. Capex is not a Headline KPI
 Key risks and opportunities

RISKS OPPORTUNITIES

• Challenging market in Malaysia and Nepal. • Continued benefits from “Operational Excellence”.

• Macro uncertainties and slower economic growth. • Sustained growth in Indonesia and Bangladesh.

• Structural cost takeout via “virtual collaboration” of

network, IT and procurement.

24 | 4Q19
 Our Vision & The Axiata 3.0 “Triple Core” Strategy
One of the largest telco groups in ASEAN & South Asia operating in 3 Core Businesses

Vision Next Generation Digital Champion by 2022

1 Digital Operators 2 Digital Businesses 3 Infrastructure

Transform from Pivot from Advance from
Aspiration Mobile-Centric Telco to Portfolio Company to Regional Champion to
Converged Digital Operators 3 Lines of Digital Businesses Global Champion

#1 / #2 in All Markets 3 “Unicorns” Top 5 in the World

Our Major
Subsidiaries

25 | 4Q19
 Introducing Axiata 5.0 (2020 – 2023): 8 Key Growth Drivers

Operational & Financial “Shifting Gear” – Focus on Profitable Growth & Cash Generation
1
Performance

2 OpCos Transformation

3 Operational Excellence as Our New Corporate DNA

Institution Building 4 New Group Engagement Model for Optimum Group Synergy
to Deliver
Sustainable
5 Digitisation & Analytics as Our Biggest Differentiator
Growth

6 New Growth Areas

7 Organisation 5.0 – Organisational Changes to Support All of the Above

Structural Changes 8 Industry Consolidation & Portfolio Optimisation

26 | 4Q19
7
 Introducing Axiata 5.0: New Group Engagement Model
“Virtual Collaboration” to unlock optimum synergy within the Group

Moving Forward

Before Today

Virtual
Collaboration
100% “Light “Right 100%
Decentralised Touch” Touch” via the Centralised
“Collective
Brain”

Value of Synergy / Degree of Complexity

27 | 4Q19
12
 New Senior Management Appointments for Axiata Group Berhad
(all effective 24th Jan 2020)

Dato’ Mohd Izzaddin Idris Thomas Hundt

Dr Hans Wijayasuriya
Executive Vice President – Tech
Deputy GCEO & GCEO-Designate Executive Vice President &
& CEO of Smart Axiata
(to take over as GCEO by end 2020) CEO of Telecom Businesses
(Cambodia)

28 | 4Q19
3
Appointment of Dato’ Mohd Izzaddin Idris as Axiata’s Deputy Group CEO
Culmination of a comprehensive succession planning process.

❖ The Board of Axiata is pleased to announce the appointment of Dato’ Mohd Izzaddin Idris as
Deputy Group CEO and Group CEO-designate with immediate effect as of 24 January 2020.
Izzaddin will succeed as Group CEO by December 2020.

❖ Tan Sri Jamaludin will continue as Group CEO to end December 2020 with focus on a smooth
and successful leadership transition.

❖ Izzaddin is no stranger to Axiata, having served on Axiata's Board since November 2016 and
assumed other responsibilities within the organisation. He is also involved in the OpCos as the
Chairman of Robi and a Board member of Dialog.

❖ Izzaddin was Group MD and CEO of UEM Group Berhad from 2009 till 2018. Prior to this, he
was CFO of Tenaga Nasional Berhad from 2004 till 2008.

❖ Izzaddin graduated with a Bachelor of Commerce degree (Finance Major, First Class Honours)
from the University of New South Wales, Australia. He is a Fellow of CPA Australia, and a
member of the Malaysian Institute of Accountants.

❖ Leadership transition concludes extensive succession planning process led by Chairman Tan
Sri Ghazzali and the Axiata Board to ensure commitment and consistency in delivering on
Axiata's digital transformation goals.

29 | 4Q19
Deputy GCEO & GCEO-Designate: 90-Day Plan
Getting to know the organisation, its people, business operations & key stakeholders
– with emphasis on selected focus areas in line with the 8 Key Growth Drivers

1 3

Management Key
& Staff 2 Focus
Engagements Areas

Key
Stakeholder
• OpCos Transformation – Selected OpCos
Engagements • Operational Excellence – Implementation
• Organisation 5.0 – Review
• Portfolio Optimisation – Review
• Others – Risk & Compliance Framework

30 | 4Q19
 Introducing Axiata 5.0: Operational Excellence as New Corporate DNA
5 “Building Blocks” to become the Lowest Cost Producer Relative to Customer Promise.

1 2 3 4 5

Optimum Sustainable Digitisation

Profitable Organisational
Customer Cost &
Growth Excellence
Satisfaction Structure Analytics

Lowest Cost Producer (Relative to Customer Promise)

31 | 4Q19
 Introducing Axiata 5.0: Industry Consolidation & Portfolio Optimisation
IPO of Robi expected to be completed by 4Q 2020.

IPO Details IPO Rationale

➢ Axiata proposes to list Robi in Bangladesh following a For Axiata:

Fixed Price method.
✓ Unlock and crystallise value in Robi.
➢ Shares are issued at a Par value of BDT10 per share.

➢ Total offering by Robi of 523,793,334 new shares

representing 10% of the enlarged issued and paid-up For Robi:
share capital; ~74% of new shares to be offered to
✓ Fund capex.
public while balance is for employees of Robi under
ESPP1. ✓ Corporate tax benefit of 5% reduction for listed
entity.
➢ Total proceeds of BDT5.2bn or RM255m2.
✓ Increase Robi’s visibility as one of the leading telcos in
➢ Axiata’s shareholding in Robi will be diluted by 6.87%
Bangladesh.
to 61.82%; no material impact to Axiata earnings and
net assets. Axiata will remain controlling shareholder ✓ Enable direct access to equity and debt capital
post-IPO. markets.
➢ IPO is expected to be completed by 4Q2020. ✓ Establish liquidity of Robi shares.

➢ Robi’s public offering will be the 4th largest in Bangladesh.

➢ Robi will be the 11th largest listed company in Bangladesh3.

1. Employee Share Purchase Plan
2. BDT100: RM4.8729 32 | 4Q19
3. Assuming market cap of BDT52.4bn for Robi i.e. share price of BDT10; peers market cap as at 18 Feb 2020
Appendix

| 4Q19
MFRS 16 impact
RM1.3bn EBITDA uplift and RM65m negative impact on PATAMI.

YTD19 YTD19
RM million MFRS 16
pre-MFRS 16 post-MFRS 16

EBITDA 9,311 1,308 10,619

Depreciation &
(6,015) (1,069) (7,084)
amortisation

Finance cost (1,406) (332) (1,738)

PBT 2,996 (124) 2,872

PATAMI 1,523 (65) 1,458

RM million
(as at 1 Jan 2019)
As reported Reclassification1 MFRS 16 As adjusted

Right-of-use
- 3,980 4,949 8,929
assets

Lease liabilities - 4,165 4,675 8,840

1. Reclassification from PPE and payables on existing finance leases 34 | 4Q19

 Group revenue: FY18 → FY19
FY19 revenue growth of 2.9% driven by better performance from all OpCos, except Celcom and Ncell.

FY19 Reported Growth: 2.9%

FY19 constant currency growth, pre-MFRS: 2.3%

203
24,583
267 24,446 137
112 125

328

23,886 191
RM million

633 623

FY18 Celcom XL Dialog Robi Smart Ncell edotco Others FY19 Forex MFRS 16 FY19
(underlying translation
performance)
Revenue
Revenue FY18 YTD Growth Rates FY19
(underlying performance)
Celcom 7,339 (633) -8.6% Celcom 6,706
XL 6,515 623 9.6% XL 7,138
Dialog 2,715 191 7.0% Dialog 2,906
Robi 3,273 328 10.0% Robi 3,601
Smart 1,160 112 9.7% Smart 1,272
Ncell 2,113 (125) -5.9% Ncell 1,988
edotco 1,531 267 17.5% edotco 1,798
Others (760) (203) -26.8% Others (963) | 4Q19
35
GROUP 23,886 560 2.3% GROUP 24,446
 Group EBITDA: FY18 → FY19
FY19 EBITDA growth of 27.4% largely due to positive MFRS 16 impact and higher contribution from all
OpCos except Ncell.

FY19 Reported Growth: 27.4%

FY19 constant currency growth; pre-MFRS: 10.9%

10,619

1,308

9,240
159 71
349 65 127 104
403
16

8,334
RM million 145

FY18 Celcom XL Dialog Robi Smart Ncell edotco Others FY19 Forex MFRS 16 FY19
(underlying translation
performance)

EBITDA
EBITDA FY18 YTD Growth Rates FY19
(underlying performance)
Celcom 1,906 145 7.6% Celcom 2,051
XL 2,527 403 15.9% XL 2,930
Dialog 1,082 16 1.5% Dialog 1,098
Robi 795 349 43.9% Robi 1,144
Smart 544 65 12.0% Smart 609
Ncell 1,301 (127) -9.8% Ncell 1,174
edotco 684 159 23.2% edotco 843
Others (505) (104) -20.7% Others (609)
36 | 4Q19
GROUP 8,334 906 10.9% GROUP 9,240
 Group normalised PATAMI : FY18 → FY19
FY19 normalised PATAMI declined 5.0% due to the absence of M1’s contribution, lower contribution from
Ncell and Dialog, M&A expenses and MFRS 16 impact.

FY19 Reported Growth: -5.0%

FY19 constant currency growth; pre-MFRS: 1.2%

13 89
138
153 16 112
77
1,010 101 131 1,022 3 65
960
RM million

FY18 Celcom XL Dialog Robi Smart Ncell edotco M1 Others FY19 (pre- Forex MFRS 16 FY19
MFRS, translation
const.
currency)

Norm PATAMI
Norm PATAMI FY18 YTD Growth Rates FY19
(underlying performance)
Celcom 712 101 14.1% Celcom 813
XL (98) 153 156.3% XL 55
Dialog 290 (77) -26.4% Dialog 213
Robi (101) 138 136.2% Robi 37
Smart 213 13 6.1% Smart 226
Ncell 567 (89) -15.7% Ncell 478
edotco 116 16 13.2% edotco 132
Others (689) (243) -35.0% Others (932)
GROUP 1,010 12 1.2% GROUP 1,022 37 | 4Q19
 Axiata 4P Sustainability Framework
Established framework, aligned to global reporting standards and rated by top ESG indices

Our 4 Sustainable Pillars

Beyond Short-Term Profits Nurturing People Process Excellence & Governance Planet & Society

Rated by top ESG Indices

Carbon Disclosure
Amongst 62 peers Project

Axiata is a founding Axiata ESG Rating: A Axiata scored 59%, rated Axiata Disclosure
constituent of the average, 47th Percentile Rating: D
FTSE4Good Bursa Malaysia
Index (since 2014)

38 | 4Q19
Thank You
www.axiata.com

Axiata Group Berhad

| 4Q19