DIGI - Annual Report 2020

Integrated Annual Report 2020
Connecting
you
to What
Matters
Most
DIGI.COM BERHAD At A Glance Message To Shareholders Strategies To Create Value How We Create Value
Inside This Report
2020 was an extraordinary year that underscored how digital connectivity has
quickly become ubiquitous and is an essential ‘lifeline’ for people to stay connected
with each other.
The cover highlights the joy, relief and support that communications, powered by
digital connectivity, bring to every segment of the society, at a time when we needed
to be physically apart. In helping Malaysians deal with the impact of Covid-19, Scan this QR Code
we remain steadfast in our responsibility and purpose to connect people to what for Integrated Annual
matters most, whilst creating long-term value for the nation. Report 2020 online
Section 1: Section 4:
At A Glance How We Create Value
1 About This Report 46 Financial Capital
2 About Digi 50 Manufactured Capital
4 The Value We Created 54 Intellectual Capital
58 Human Capital
Section 2: 62 Natural Capital
Message To 65 Social and Relationship Capital
Shareholders Section 5:
8 Our Response to Covid-19
12 Chair of the Board’s Statement Governance
15 Chief Executive Officer’s Statement 72 Board of Directors’ Profiles
18 Chief Financial Officer’s Statement 77 Management Profiles
21 5-Year Financial Summary 79 Corporate Governance Overview
Statement
Section 3: 97 Statement on Risk Management and
Strategies To Internal Control Section 7:
103 Additional Compliance Information
Create Value 104 Statement of Responsibility by
Other Information
24 Our Business Model 181 Independent Assurance Report
Directors
26 Our Operating Landscape 183 Corporate Information
29 Our Key Relationships Section 6: 184 Corporate Directory
34 Our Key Risks 185
38 Our Material Matters
Audited Financial 187
List of Properties
Disclosure of Recurrent Related
41 Our Emerging Opportunities Statements Party Transactions
42 Our Strategy 106 Directors’ Report 188 Share Price Development
110 Statement by Directors 189 Statistics on Shareholdings
110 Statutory Declaration 190 Statement of Directors’
111 Independent Auditors’ Report Shareholdings
115 Statements of Comprehensive Income 191 List of Thirty (30) Largest
116 Statements of Financial Position Shareholders
117 Statements of Changes in Equity 193 Notice of Annual General Meeting
118 Statements of Cash Flows • Form of Proxy
120 Notes to the Financial Statements
Governance Audited Financial Statements Other Information INTEGRATED ANNUAL REPORT 2020 1
About This Report
This is Digi.Com Berhad’s 2nd Integrated Reporting Suites

Annual Report (IAR) 2020, prepared in We are committed to report openly and honestly to our broad range of
accordance with the principles prescribed stakeholders. To view the full suite, visit our website at www.digi.com.my
by the International Integrated Reporting Integrated Annual Report (IAR) 2020

Council (IIRC). We strive to continuously Our report demonstrates our relationship between
interdependent elements involved in our value creation.
improve on our disclosures, guided by 1 2 3 4 5 6 7 8 9
integrated reporting practices to create
long-term value for our stakeholders.
Corporate Governance Sustainability Performance
Scope and Reporting Boundaries Report 2020 and GRI Content Index
The report covers our financial and non-financial performance from Our Corporate Governance As part of our digitalisation
1 January 2020 to 31 December 2020, unless stated otherwise. The report details out Digi’s efforts, our Sustainability
reporting scope remains largely the same as last year’s report, covering corporate governance practices. performance and GRI Content
the activities of our wholly owned subsidiary, Digi Telecommunications 2 3 5 Index are published on our
Sdn Bhd, which is the core of our business operations. website:
https://www.digi.com.my/
Assurance sustainability/reporting.html
Our audited annual financial statements are disclosed in Section 6. We 3 4 8 9

have also engaged an external auditor to provide a limited assurance for
selected non-financial indicators. The independent assurance report can
Reporting Framework & Principles
be found on pages 181 to 182 of this report.
Our reporting suites are in compliance with:
Integrated Approach and Materiality IIRC’s Integrated Reporting Malaysian Financial Reporting
1 6
<IR> Framework Standards (MFRS)
This year, our report is more concise with a holistic picture of the
interrelatedness of our six (6) capitals against risks, opportunities, International Financial
2 Companies Act 2016 7
mitigation strategies and long-term approach to deliver value to our Reporting Standards (IFRS)
stakeholders. More details on our sustainability efforts will be disclosed in
Digi’s Sustainability website.
3 Bursa Listing Requirements 8 GRI Standards (Core)
In addition, our materiality assessment processes are enhanced to
review risks and opportunities that are material to both our stakeholders Bursa Sustainability Reporting ISAE 3000 (Revised) – Limited
4 9
and the business. The revisions to the Top 13 material matters and our Guidelines & Toolkits Assurance Engagement
strategic responses to these material issues are presented throughout
Section 2 to 4. Our disclosures are aligned to the Materiality principles of Malaysian Code on Corporate
5
International <IR> Framework. We discussed the essence of the material Governance 2017
matter without specifying information that might cause the company to
lose competitive advantage.
NAVIGATION ICONS
Forward-looking Statements
Our Capitals Our Strategic Pillars
This report may contain forward-looking statements with respect to Digi’s
future performance and prospects. It is subject to uncertainties that could Financial Capital Growth
cause actual results to differ materially from our expectations.
Intellectual Capital
Modernisation
Approval by the Board
Manufactured Capital
The Board of Directors of Digi has adopted integrated thinking in
preparing and presenting Digi’s IAR 2020 as guided by the IIRC’s Responsible Business
Human Capital
Integrated Reporting <IR> Framework and GRI Standards. The report
was approved by the Board on 12 March 2021.
Natural Capital
Feedback
Your feedback is important to us and we welcome your input to Social and
enhance the quality of our reporting. Please email your feedback to Relationship Capital
[email protected]
2 DIGI.COM BERHAD At A Glance Message To Shareholders Strategies To Create Value How We Create Value
About Digi
Who we are
Digi is a leading and trusted digital connectivity and services company,
empowering societies and keeping customers connected to what matters most.
Our number one priority is to deliver connectivity in a safe, We have built solid fundamentals and expertise in future-ready
reliable and efficient way to Malaysians across the country. networks, digitalisation, customer experience, workplace and people
development, and responsible business practices – shaped by a
culture of innovation.
Connectivity is a growing, fundamental need for modern Being customer-obsessed, we are driven to continuously innovate
societies. We believe connectivity empowers everyone to and deliver personalised, engaging and safe digital products and
improve their lives, builds societies and secures a better services to enhance Malaysians’ digital lifestyles.
future for all.
We are focused on growth and creating value for the long-term, Building on these capabilities, we believe we are well positioned to
delivered through a well-defined strategy. advance customers and society through digitalisation and powering
the nation with 5G services and a future of new possibilities.
Our Values Our Way of Work

Always Explore
Customer Obsessed
We believe growth comes from learning every day.
Putting our customers at the heart of everything
We’re curious and we dare to challenge, test, fail
we do.
fast and pivot.
Create Together Innovation 360

We believe diverse teams find better solutions. We Exploring ways to do things differently and to do
seek different perspectives, share, involve, and help different things that serve to improve the lives of
each other succeed. our customers.
Keep Promises
We believe that trust is key in all our relationships.
We take ownership and pride in delivering with
precision and integrity.
Be Respectful
We believe in the unique human ability to
understand what matters for people. We meet
everyone at eye level, listen and show that we care.
About Digi
Our Purpose Our Strategy

We have a clearly defined strategy driving our purpose to
Connecting Customers connect customers to what matters most and empower
To What Matters Most societies. Anchored on Growth, Modernisation and Responsible

Business, our strategy steers us to remain a leading and trusted
digital connectivity partner.
Empowering Societies
Refer to Our Strategy on pages 42 to 43.
Connecting people, businesses and societies has been the
core of our business for the last 26 years. Today, internet
connectivity impacts nearly every part of our lives, and
we are making it more personalised and relevant than
Our Promise to Customers

ever before. To us, it is more than good business. It is
empowering societies.
Best in Internet and Value
Building on this, we want to enable participation for all, Deliver value to customers through innovative,
advance connectivity to accelerate digital future, and personalised and relevant products and services,
safeguard the planet, people and data in the digital world experienced seamlessly on quality, reliable and
and beyond. 2020 has demonstrated that our purpose is secure 4G LTE connectivity.
more relevant than ever.
Digital Customer Experience
Create innovative digital services and relevant
Delivering our purpose requires a dedicated focus on
self-serve platforms to enhance customers’ digital
transforming and modernising our organisation to enable
lifestyles.
growth and create efficiencies, while innovating on our core
services and customer experiences, and conducting our Trusted by Customers
business in a responsible manner always. This is how we Create equal opportunities for people, businesses
aim to create value for our customers and stakeholders for and societies to benefit from connectivity, in a safe
the long-term. and responsible way to establish long-term trust.
Corporate Structure
Digi.Com Berhad
[Registration No. 199701009694 (425190-X)]
100% Digi Telecommunications Sdn Bhd

100% InfraNation Sdn Bhd
[Registration No. 199001009711 (201283-M)] (Formerly known as Y3llownation Sdn Bhd)
[Registration No. 200901003326. 846253-D)]
100% Digi Services Sdn Bhd

100% Y3llowlabs Sdn Bhd
[Registration No. 199201012386 (243889-T)] [Registration No. 200001032596 (535203-H)]
The Value We Created
Financial -2.3% -7.0% +17.9% -4.1%
Performance
RM6.15 RM3.08 RM2.43 RM0.72
billion billion billion billion
Revenue EBITDA Net cash from Organic capital

operations expenditure
For our customers
Wider network population

coverage nationwide Delivered fastest and most Increased self-serve
consistent network transactions on digital channels
92% 75% 9,890 Ranked #1 in most consistent 4.4 million monthly active
4G LTE 4G LTE-A sites +16%
network* users on MyDigi application
Ranked #1 or #2 in download speed RM242.5 million of upsell

+7%
across all states* volume transacted
*measured via third-party crowdsourcing data
For our investors
Near 100%
dividend payout ratio Recorded the highest return on
equity over three years
RM1.21 billion for Big Cap companies
(RM10-40 billion market
(FY2019: RM1.42 billion)
declared in dividends to equity
shareholders
capitalisation) in Telecommunications
and Media by The Edge Billion RM253 million
Ringgit Club 2020 (FY2019: RM246 million)
paid in interest to debt funders
For our societies
Free 1GB of data daily for selected

education and productivity-related Provided digital learning contents, Raising standards by providing 2,426
sites accessible to 5 million students and total training hours for our suppliers
500,000 teachers, as part of being
Best value offers for over 45,700 130 new suppliers signed Agreement
the Ministry of Education’s (MOE)
senior citizens and 3,900 people on Business Conduct as part of the
accredited digital content partner
with disabilities under Yellow Heart mandatory requirement
More than 115,000 people engaged 511 inspections conducted in line

on online safety through Safe with our strict compliance to Health
Internet initiatives and Safety policy
The Value We Created
For our environment
5% improvement
Recorded 166,953 tonnes in total
carbon emissions
(FY2019: 175,200 tonnes)
31% improvement 27% improvement
in carbon intensity per data usage in energy usage per data terabyte
Attributed to the on-going network of 0.09 tCO2e (FY2019: 0.13 tCO2e) of 0.16 MWh (FY2019: 0.22 MWh)
modernisation and operational Reflecting our commitment to achieve lower carbon footprint and energy usage
efficiency initiatives per unit of data consumed
For our employees
Highly diverse workforce

RM242.1 million
(FY2019: RM224.6 million) 86,420 hours 50% of our employees are women
paid in staff expenses which included of total online learning hours by
bonuses, allowances and all other Digizens, 10% through a range
employment-related benefits for of online learning resources, expert 47% women in leadership position
1,473 employees courses and annual company-wide
learning days of our employees in 30-39
41%
years old bracket
Enabling
continuity amid shifts
in the way we
live, WORK, AND learn
The nation is embracing an accelerated digital transition as we adapt to
the ‘now normal’ way of virtual working, learning, and staying socially
connected with friends and families. Building on the growing need for
quality connectivity access anytime, anywhere, we continue to give our
customers more value and better experience in the form of affordable
high-speed internet plans and exciting device and digital services offers.
Our Response to Covid-19
Driving Inclusivity To Build Socio-economic Recovery

Digi’s response to the pandemic underscores our commitment and leadership in Responsible Business as we prioritise the
safety of our employees and stakeholders, whilst keeping Malaysians connected and accelerating digital transformation for
businesses. These are the six key focus areas of our response.
Key Maintaining network stability to sustain leading position on consistency

1 and quality
Continued traffic management and

network optimisation at essential sites such
as hospitals, quarantine centres, government
agencies, and residential areas
Prioritised investments on targeted new

coverage and capacity sites
to support businesses and essential
services institutions
Key Promoting safe internet and digital inclusion and accessibility for
2 underserved communities
A joint industry effort with Malaysian Communications and Multimedia

Commission (MCMC) in supporting #MYBaikHati campaign to
crowdsource used devices for distribution and loan at Pusat Internet
Komuniti (PIK) or Community Internet Centres for B40 communities
Online Future Skills webinars and training for over 20,000 teachers
and students. In partnership with MCMC, distributed micro:bit quick
start learning kits at remote and rural PIK anticipated to benefit 7,000
students
Enhanced digital platforms features to enable easier access for the

visually impaired community, including launching a best practice
digital touchpoint playbook for accessibility improvements
Continuous online Supported Tabung Cerdik,

Providing Future Skills and
Unlimited data capacity building on a government-led initiative
online safety content to
access for national scam awareness and by providing devices and
Digital Educational Learning
curriculum resources webinar series on safe affordable connectivity options
Initiative Malaysia (DELIMa)
on Jom Tuisyen internet in partnership with to B40 students for remote
by Ministry of Education
UNICEF Malaysia learning
Key
3 Keeping customers connected via special plans and digital channels
More@Home Exclusive New services on

Digi Prepaid Abadi, Campaign, Digi Postpaid Digi Store Online
first prepaid plan with free life affordable postpaid and
insurance coverage in smart bundle plans to Smart Bundle such as appointment
for frontliners and essential settings, drive-thrus and
partnership with AXA Affin help Malaysians stay
services workforce door-to-door deliveries
connected at home
Improved online billing and reload features through self-serve

1GB free data since 22 March 2020 for selected
education and productivity services to facilitate e-learning kiosks and e-wallet partnerships with
Touch ‘n Go Digital and Grab
Key
4 Helping micro businesses and SMEs digitalise for business continuity
Partnered with MDEC to drive Offered PENJANA Extended discounts

Supported over
and facilitated
Business Continuity SME Digitalisation
Digitalisation programme
Grant via Digi Business 60 small payment extensions
to support businesses in their Go Digital businesses for some NGOs

during Movement
digitalisation journey Bundles on MyDigi Bazaar
Control Order period
Key
5 Supporting humanitarian and emergency relief efforts with Covid-19 aid
Nationwide crowdfunding via MyDigi app to provide RM2 million pledged

RM50,000 worth of PPE to support relief and recovery efforts via GLC/GLIC Disaster
to hospitals Response Network (GDRN) and Mercy Malaysia
Sponsored devices and Supported government in

Zero-rated disseminating Covid-19
connectivity for video calls
calls for Hospital Kuala Lumpur and Sarawak General
related information via
to state health emergency
Hospital to enable safe, remote consultations with
daily SMS
and hotline numbers
patients and for family members to stay in touch broadcasts
Key Facilitating remote working whilst prioritising health and safety across
6 our value chain
Mandatory health and

207 virtual inspections safety e-learning
within supply chain and weekly meetings with all in-house
and Tier-1 vendor representatives or HSE officers on Digi’s for employees before returning to workplace and a suite of
Covid-19 response plans productivity and digital toolkits, coupled with access to
numerous learning resource platforms
Comprehensive Business Precautionary measures such

Improved access to connectivity
Continuity Plan (BCP) which as daily sanitisation, temperature
for employees with discounted Digi
included alternative locations for readings, demarcation lines at
home fibre plans in addition to
technology operations and customer workplace and providing masks to
existing staff benefits
service teams employees at all Digi premises
More details on how Covid-19 has impacted our business operations and performance can be found throughout Sections 3 and 4 of
this report and in Digi's Sustainability website at https://www.digi.com.my/sustainability/reporting.html
Chair of the Board’s Statement
Navigating a year of strong challenges

and deep responsibility for all
Haakon Bruaset Kjoel

Chair of the Board
Looking back on 2020, in challenging times Digi kept its promise to keep customers connected to what
matters most. This promise took on new meaning as the reality of the global pandemic took hold in
Malaysia. Along with the sector, we took on the critical responsibility of ensuring people could learn and
work from anywhere, could easily shift to online transactions for personal and business needs, and could
stay socially connected with one another, when we needed to be physically apart.
Digi reaffirmed our daily commitment in providing reliable and affordable connectivity and solutions for
each of our 10.4 million customers. Trust is central to the way Digi operates, and in these tough times
we deepened our responsible business framework, built on the tenets of good corporate governance.
This enables us to deliver services to customers credibly, and partner with a range of stakeholders with
transparency and integrity.
provision of daily free 1GB data for is anchored on our “Yellow

productivity and education, access Heart” brand aspirations: to raise
to PENJANA digitalisation grants for standards across our operations
small and medium enterprises, and and supply chain, and to partner
various Yellow Heart community with society to build required skills
Guided by the principle of initiatives to support critical relief and resilience for an accelerated
doing good by doing right, efforts. On the latter, Digi in 2020 digital future.
pledged RM2 million via the GLC
Responsible Business is a Disaster Response Network The Board is pleased to note
strategic priority for Digi (GDRN) for Covid-19, firstly to various achievements of the
help medical frontliners in the company in maintaining high
early phase of the pandemic, and standards of ethics and integrity
later as part of an industry effort in our business conduct; in
Q How did Digi deliver its through the ‘To Malaysia With Love’ safeguarding the health, safety,
commitments in the face of a campaign, aiding Mercy Malaysia’s and wellbeing of our employees
global pandemic? humanitarian efforts throughout the and supply chain; in keeping
country. to the highest human rights
A As we navigated a year like no standards in our operations; in
other, we had two main priorities The Board records its appreciation protecting the privacy of customers’
– doing everything we could to to all Digizens and partners who personal data, and the security
protect the health and safety of our stepped up to adapt to the high of our infrastructure; in being
employees and supply chain while demands of our business during environmentally responsible in
ensuring that we kept our promise this time, particularly our frontliners our practices; and in building an
to customers and businesses so who ensured that services remain organisation that cherishes the
that they could remain connected. uninterrupted for customers and value of diversity and inclusion.
businesses in all parts of the
Over the course of the year, Digi country. The Board also commends Read more about how Responsible
maintained stable and reliable the Management on its robust Business is embedded in the way
networks which were able to keep and holistic Business Continuity we create value in Section 4 pages
up with peaks of extraordinary Plan (BCP) which was activated 54 to 69 of this report.
demand. We helped empower early as the impact of Covid-19
people and businesses as well became apparent, and allowed the Q Describe how Digi values
as ensuring medical and other management team to address rising diversity as a foundation of its
public frontliners could access the risks effectively. strength.
connectivity they needed to fulfill
their essential duties. Digi’s retail Read more about our response to A Digi continues to build an inclusive
frontliners transformed themselves Covid-19 in pages 8 to 11 of this and dynamic workplace, built on
into online retail agents and shifted report. collaboration and on promoting a
to digital channels to continue culture of innovation and customer
serving customers across the nation Q Responsible Business is a core obsession. We firmly believe that
while complying with all required pillar of Digi’s strategy. How is a diverse workforce at all levels of
safety procedures. Digi leading in this area? the organisation helps us maximise
the power of different experiences.
In responding to the economic A The Board places high importance Diversity and inclusion is a central
impact of restrictions Digi worked on maintaining our responsible pillar of good governance and
with the government, supporting business leadership. Guided by the drives better decision making,
efforts to ease the burden on people principle of doing good by doing stimulates innovation, increases
and various segments of business. right, this remained a strategic organisational agility, strengthens
Initiatives included a year-long priority for Digi in the year. Digi’s resilience to disruption, and attracts
responsible business framework high-performing talent.
In this respect, the Board is deeply total payout of RM1.21 billion to nation’s recovery in the coming
proud of Digi’s inclusion in both shareholders and sustaining a near months. We share the view that our
the Bloomberg Gender-Equality 100% dividend payout ratio for immediate shared future requires
Index (GEI) 2021 and Refinitiv FY2020. Year on year, we continue a “whole-of-society” mindset, and
Global Diversity and Inclusion to exceed the company’s dividend Digi looks forward to playing our
Index 2020, which recognise policy of distributing a minimum part in stimulating the nation’s
public-listed companies for 80% of net profits, keeping to recovery and driving a brighter
bringing transparency to gender- our commitment to deliver strong future for all.
related practices and policies, and sustainable returns to our
therefore increasing the breadth of shareholders. We are confident in our ability to
environmental, social, governance continue creating value for our
(ESG) data available to investors. Read more about the value we stakeholders.
create with our financial capital in
The Board is confident we have pages 46 to 49 of this report. Notwithstanding, our strategic
the appropriate balance of focus on growth, modernisation,
knowledge, skills, experience and Q How would you describe the year our unwavering commitment to
independence to drive the company ahead for Digi? responsible business, and the
agenda and govern effectively. company’s organisational agility to
The recent appointments of Randi A Digi has rallied against uncertain always explore new possibilities
Wiese Heirung and Wenche Agerup macroeconomic and market creates a strong foundation for us
as Non-Independent Non-Executive conditions throughout 2020, driven to address any challenges that the
Directors have further strengthened by a focus on efficient operations future may bring.
the Board from a competence and and delivery of transformation
diversity perspective. We would initiatives. In the year ahead, we On behalf of the Board, I express
also like to thank Torstein Pedersen will continue to prioritise three appreciation to all Digizens for their
and Anne Kvam for their valued key areas; accelerating our collective contribution to Digi’s
contribution during in their time with digital agenda; modernising our performance in 2020. I would also
the Board, and wish them the best network and IT infrastructure to like to thank our business partners
in their next endeavours. enhance customer experience; and and stakeholders for their ongoing
partnering with other stakeholders collaboration and engagement.
Read more about the value we to support Malaysia’s recovery Lastly, the Board also thanks all
create with our human capital in and growth. The experience of shareholders for their support.
pages 58 to 61 and our governance the recent year has accelerated
focus in Section 5 of this report. the digital economy in Malaysia In view of Covid-19, we continue
and is creating a real impetus last year’s virtual shareholder
Q How did Digi deliver healthy for businesses to fast-track the engagement into 2021, to prioritise
returns to its shareholders amidst digitalisation of their operations. your safety whilst continuing our
a challenging year? dialogue with you. Please see
We are also encouraged that the details outlined in our Notice to
A In spite of operating in a hyper- Malaysian government has put the 24th Annual General Meeting
competitive market, our focused in place social and economic (AGM). We look forward to sharing
execution on business and prudent strategies – including a cohesive more on our business at the AGM
financial management have led the Covid-19 National Immunisation on 18 May 2021.
Board to declare a net dividend Programme – that will guide the
per share of 15.6 sen, returning a
Chief Executive Officer’s Statement
Stronger Q How would you describe Digi’s

performance in FY2020?
Against this backdrop, our
performance was a result of an
Together,
all-round focus on operational
excellence, the success of
A During the year, Digi like many
transformation initiatives, and
Building A companies in Malaysia faced a
challenging and uncertain market.
our signature brand of inspired
resilience. By executing well on our
Better Tomorrow Over the various Movement Control
Orders (MCO), telecommunications
growth and modernisation agenda
we were able to deliver earnings
networks experienced a huge surge
and sustain healthy returns to
in data traffic, driven by usage
shareholders, which were in line
peaks in productivity, education,
with 2020 revised guidance.
communications, video, and
2020 was a year of learning
gaming applications. Led by the
and exploration for Digi – new More details on Digi’s financial
government and the Malaysian
review by our Chief Financial Officer
ways of working and staying Communications and Multimedia
in pages 18 to 21, and how we
connected to our teams, finding Commission (MCMC), Digi and our
create value across our six capitals in
industry colleagues collaborated to
innovative means of serving our pages 46 to 69 of this report.
reshape a national plan to radically
customers, and doing things to uplift the quality of broadband and
grow closer as a team despite digital services.
being physically apart. This
was a year where we grew
as a company and explored
new growth areas, driving
efficiency and modernisation.
The experience underscored
the importance of what we do
every day – connecting you to
what matters most. Connectivity
became even more fundamental
– in keeping people, businesses,
governments, and societies
in general connected and
running. In this regard, much of
Digi’s priority during the year
was to ensure the consistent
availability of our network and
services, while taking necessary
precautions to keep everyone
under our care safe, and doing
our part to aid the nation’s
recovery.
Albern Murty
Chief Executive Officer
Optimising service channels to better meet customer’s

needs
We will focus on delivering We took up the challenge of ensuring accessibility to our

services at a time when movement and travel was limited.
our long-term strategic goals, Digital self-service channels in the form of MyDigi app and
built on robust financials, Digi Online Stores supported essential transactions, while
our Customer Care hotline, Live Chat, Kiosk and social
organisational agility, and our media platforms continued to be staffed 24/7.
trusted brand.
Timely dissemination of information to all
Since the start of MCO, we have been working with the

Q What measures did Digi take in responding to the authorities to disseminate health, emergency, and public
challenges brought on by Covid-19? interest announcements via daily SMS broadcasts to our
customers for free.
A Early in the year, we activated our comprehensive Business
Continuity Plan to mitigate the rising impact of Covid-19
on our operations and the way we serve customers. We Supporting relief efforts
were one of the first few companies to shift to having more
than 70% of our workforce working from home, and critical In addition to pledging RM2 million to the GLC/GLIC
roles were strengthened by redundant locations to be able Disaster Response Network (GDRN), we collected
to serve our customers while keeping our teams safe. RM50,000 through customer-driven crowdfunding on
MyDigi and channeled the funds to purchase personal
Maintaining the availability of network services, and protective equipment (PPE) for hospitals.
enhancing coverage at critical areas
Safeguarding health and wellbeing of people across
We mobilised our team to work 24/7 to maintain sites,
our value chain
upgrade capacity, and improve coverage. This was vital
given the surge in data traffic due to increased internet In delivering all the above and more, we took every
usage and shift in capacity from business zones to necessary measure to protect the safety and health
residential areas, and to ensure mission-critical areas of our employees, partners, and the supply chain,
such as hospitals and key government offices were given adhering strictly to the highest safety standard operating
adequate focus. procedures, as well as enhancing physical and mental
health support for our employees. .
Benefits for customers focused on learning,
connectivity, and productivity Read more about the company’s Covid-19 response in
page 8 to 11 of this report.
We gave free 1GB data to our 10.4 million customers
every day since March 2020. We enabled free access Q How will Digi continue to deliver value and growth, and
to e-learning platforms like Jom Studi, and curated lead the industry in responsible business practices in
special plans catering to customers’ current needs and the next 2-3 years?
affordability, along with business continuity boosters for
businesses to manage their operations. A In the past year, we learnt that more than ever, we
needed to be agile in a rapidly changing environment.
In the next three years, we will continue our growth by
seeking smarter ways of delivering value to customers
and society, by continuing to modernise our network and
infrastructures, and by leading in responsible business
practices.
Strategic Pillars Ambitions Targets Link to capitals
Sustainably grow 20% growth Financial

Consumer, and lead
in Postpaid and Fixed subscribers
organic B2B revenue Manufactured
growth
growth
33% growth Intellectual
in B2B revenues
Natural
Social and
Relationship
Best customer 100% touch-free Financial

experience, built on
operations on Digi’s network
channel digitalisation Manufactured
Modernisation
and automated
operations
#1 most consistent Intellectual
network experience
Human
Natural
Leader on sustainable 300k users engaged Financial

business standards
via Yellow Heart programmes on
and ESG practices in digital resilience and future skills Manufactured
Malaysia
Responsible Business #1 Malaysian telco Intellectual
for ESG performance
Human
Social and
Relationship
Legend: Financial Intellectual Social & Relationship Manufactured Natural Human
Read more about Our Strategy on pages 42 to 43 of this report.
Q What are your priorities and outlook for 2021?
A Digi will focus on delivering our long-term strategic goals, built on robust financials, organisational agility, and our trusted
brand. We will prioritise accelerating our digital agenda and modernising our network and IT infrastructure to enhance customer
experience, driving financial sustainability via cost efficiency initiatives, upholding the highest standards in responsible business
practices, and by partnering to support society’s recovery. We continue to innovate and deliver on our brand promise and
purpose of connecting customers to what matters most through our services and future enhancements of technology.
On behalf of the management team, I would like to thank our employees, our Board, and most of all our customers for their
support and loyalty during the last year. We also express our appreciation to Malaysia’s first responders, enforcement agencies,
government authorities working tirelessly to keep society safe and lead us on the path of recovery.
Chief Financial Officer’s Statement
Maintaining solid
financial momentum
driven by a resilient
operating model
We maneuvered through an unprecedented health crisis

by focusing on driving commercial recovery as the
Covid-19 pandemic challenged our growth and profitability
opportunities. In order to protect shareholder value, key
emphasis has been placed on cost optimisation and
disciplined capital and resource allocation, underpinned by
our strong Operational Efficiency mindset. As we recover,
we will remain steadfast on demonstrating effective cost
Inger Gløersen Folkeson and liquidity management, maintaining industry-leading
Chief Financial Officer
margins while continuing to invest in compelling customer
experiences and future growth.
Q The challenging backdrop and other Covid-19 related pressures had adversely impacted companies’ operating
results. How did you manage this?
A Overall, FY2020 results manifested our disciplined execution on securing growth opportunities, driving digital modernisation
efforts, and across-the-board operational resilience during the year. However, our total revenue softened by 2.3% to
RM6,152.7 million attributed to sustained pressure on consumer and business spend, while total subscriber base lowered
by 7.4% to 10.4 million, as we focus on quality acquisitions. This was mitigated by opex reduction of 1.4% led by disciplined
cost containment measures. Our immediate priorities to quickly respond to the changes impacting our business in ensuring
financial resilience were:
Building sustainable revenue mix Driving optimal cost and capex Robust working capital
controls management
• Grew active Malaysian base by • Optimised advertising and • Managed an efficient supply
5.9% to cushion impacts from promotion spend on lower on- chain management resulted in
border closures via affordable ground activities timely deliveries in equipment
and flexible bundles • Intensified credit management and supply
• Increased the availability and and collection process to deliver • Maintained sufficient stock
appeal of our digital products low provision of doubtful debts holdings through effective stock
and services to yield 9.9% ratio of 3.2%, well below industry and distribution management
growth in internet and digital level • Re-negotiated key supply
revenues • Disciplined capex prioritisation contracts and repayments
• Accelerated digital adoption for to conserve cash by prioritising
SMEs and large enterprises to modernisation initiatives
escalate our B2B subscriber and
revenue growth by 5.5% and
4.0%, respectively
To ensure we maintain solid headroom on the balance

Q Your balance sheet and capital allocation must have faced
sheet and manage our gearing and capital allocation
a lot of pressures. What were the immediate focus areas in prudently, our immediate focus areas were:
maintaining the balance sheet?
Effective risk management for trade
A We continue to closely monitor and review our balance sheet and receivables
capital requirement periodically to ensure our balance sheet is
optimised. Our credit profile remains intact and resilient throughout
Protect flexibility for easy access of
the challenging time to fund business requirements including
our infrastructure and spectrum investments, as evidenced by competitive rates
the reaffirmation of our sukuk rating on the RM5 billion Sukuk
Programmes of AAA/Stable/P1 by RAM Rating Services in Execute interest rate swap exercises to
December 2020.
hedge against interest rate risk
Together with our Profit After Tax of RM1,221.0 million, we were Competitive funding facilities at all
able to close FY2020 with a sustainable return on equity ratio and
times to support growth and short-term
return on total assets of 201.5% and 14.9%, respectively despite
disruption, if any
the overall subdued backdrop.
Clear capital allocation process that

promotes long-term growth
Q Digi has set out ambitious strategic roadmap and targets for the next three years as outlined in ‘Our Strategy’. How
can investors evaluate and measure your performance?
A To achieve our targets which are aligned with our long-term strategic ambitions, we use financial and non-financial indicators
to measure the achievements as highlighted below:
growth Modernisation Responsible Business

• Positive service revenue growth • Increase digital sales • More efficient governance structures aimed
• Positive subscriber growth for B2B and • Increase active MyDigi users at faster decision-making
Fibre-to-the-home (FTTH) • Improve network net promoter score • Increase in Health, Safety and Environment
• Improve 4G capacity (HSE) adoption in supply chain
• Reduce total costs on digitalisation,
productivity, and other efficiencies • Reduce CO2 emissions versus baseline
• 40 hours of online learning per • New Environmental, Social and Governance

employee (ESG) brand preference score
• Users engaged via Yellow Heart programmes
Q Investors are increasingly measuring a company’s performances against ESG criteria and values. What are Digi’s
efforts to improve ESG disclosure and reporting?
A Our commitment in delivering the highest standards of transparency and disclosure has always prepared us for increased
scrutiny on ESG performance from regulators, investors, and the public. We have set science-based targets to minimise our
environmental impact and aligned our reporting towards globally recognised reporting frameworks. In addition, we participate
in annual ESG rating assessments by various rating houses such as Sustainalytics, FTSE4Good and S&P RobecoSAM, which
reflects our dedication in achieving our target to become the number one telco ESG performance in Malaysia by 2023.
Our approach to provide a meaningful ESG disclosure is through continuous improvement, which is aligned to our reporting
guidelines for our stakeholders. The immediate focus areas are as follows:
Focus Areas Progress Completion Target
Conduct company-wide data integrity exercise to build a robust ESG reporting Ongoing End 2021
framework
Ensure a comprehensive alignment of ESG material issues and enterprise risks Ongoing End 2021
Drive resource prioritisation and process improvement to manage ESG Ongoing End 2021
inquiries
Increase sustainability investments particularly in energy-efficient or climate- Embarking By 2023

friendly technologies and solutions
Enhance our climate change risk monitoring, management and governance Embarking By 2023
Lastly, we truly believe that upholding high standards of corporate responsibility is key to long-term value creation and
contributes directly to improved business performance and brand integrity.
Q What do the new ambitions and targets mean to dividend payments going forward?
A We remain strongly committed to equip ourselves with the ability to pay steady dividends over time above our minimum
payout ratio of 80%. Our track record in maintaining high dividend payout ratio of above 95% demonstrates Digi’s financial
strength as a compelling stock.
In essence, I have confidence in our resilient business model to ensure our dividend distribution is in line with our strategy to
enhance free cash flow, improve the sustainability of our operations, thus delivering attractive returns to our shareholders.
5-Year Financial Summary
RM Million 2016 2017 2018 2019 2020

KEY FINANCIAL RESULTS
Revenue 6,597 6,340 6,527 6,298 6,153
Telecommunication revenue
- Service revenue 6,264 5,969 5,827 5,644 5,428
- Others 62 65 75 87 84
- Sales of device 271 306 625 567 641
Earnings before interest, taxes, depreciation and 2,956 2,886 3,033 3,311 3,080
amortisation (EBITDA)1
Earnings before interest and taxes (EBIT) 2,304 2,100 2,229 2,113 1,805
Interest cost 78 132 130 246 253
Profit before taxes 2,238 1,985 2,080 1,892 1,622
Profit after taxes 1,633 1,477 1,541 1,433 1,221
Capital expenditure (Capex) 776 1,345 818 751 720
Net cash flow from operating activities 2
1,532 2,577 2,176 2,062 2,432
KEY FINANCIAL POSITIONS
Total assets 5,498 5,834 6,206 8,149 8,187
Non-current liabilities 2,150 3,033 2,838 4,732 5,067
Total debts 2,282 2,704 2,694 5,150 5,452
- Conventional borrowing 2,257 1,292 1,293 780 555
- Islamic borrowing - 1,391 1,393 2,322 2,316
- Finance lease 25 21 8 2,048 2,581
Shareholders’ equity 519 519 673 660 606
KEY FINANCIAL RATIOS 3
Return on equity 315% 285% 229% 217% 201%

Return on total assets 30% 25% 25% 18% 15%
EBITDA margin 45% 46% 46% 53% 50%
Net debt/EBITDA (x) 0.6 0.7 0.7 1.4 1.7
Interest cover (x) 29.5 15.9 17.1 8.6 7.1
SHARE INFORMATION
Earnings per share (sen) 21.0 19.0 19.8 18.4 15.7
Dividend per share (sen) 20.9 18.8 19.6 18.2 15.6
Net assets per share (sen) 6.7 6.7 8.7 8.5 7.8
Dividend yield 4.3% 3.7% 4.4% 4.1% 3.8%4
Notes:
• 2019 and 2020 Financial Information are based on post-MFRS 16
1 EBITDA excludes the gain or loss on:

- disposal and write-off of property, plant and equipment
- disposal and write-off of intangible assets
- termination of lease
2 Refers to net cash flow from operating activities per Statements of Cash Flows
3 Key financial ratios prior to 2019 are calculated based on MFRS 15
4 Yield calculated based on the closing price of RM4.14 as at 31 December 2020
Catering
to the society’s needs
IN EXTRAORDINARY
TIMES
As a leading and trusted digital services provider, we continue to serve
Malaysians with different connectivity needs and demands. Be it small
business owners who need digital solutions to survive and thrive, or front-
liners on mission-critical work – we assume the crucial responsibility of
helping them stay connected to what matters most, with relevant aid and
value-added digital services.
Our Business Model
Our business model is anchored on long-term value creation for the success and health of our company and the best interests of our
stakeholders. We seek to actively create value through technologies and processes to ensure we deliver on our purpose to connect
customers to what matters most and empower societies. We consider the impact of our operations and relationships that are critical
to our ability to create value. In addition, we identify risks and opportunities that can affect the delivery of our strategy, whilst remain
committed in creating superior value to all stakeholders. Further details of each component in our business model and how it impacts
our capitals are available in Section 3 to 4 of this report, unless otherwise stated.
4 5
key CAPITALS
Financial
OUR PURPOSE
1
Empowering societies
Intellectual Connecting customers
to what matters most
ASSESS
operating
landscape 3
Manufactured
Identify
key risks &
OUR WAY OF WORK
emerging Customer Obsessed
2
opportunities Human Innovation 360
engage
stakeholder
needs Natural
ANCHORED BY
GOVERNANCE &
RISK MANAGEMENT
Social and Relationship PRACTICES
6
The environment in which we operate impacts our ability Key risks and opportunities we consider to execute
1 3
to create value. Refer to pages 26 to 28 on our strategies. Refer to pages 34 to 37 and 41
respectively
Top material matters and stakeholders’ concerns are Resources from our capitals that are critical to create
2 4
prioritised and addressed accordingly. Refer to pages 29 value. Refer to Section 4, pages 46 to 69
to 33, and 38 to 40 respectively
Our Business Model
8
OUR STRATEGY FRAMEWORK Creating sustainable VALUE
Steady dividend payout

and shareholder returns
Widespread high quality

network connectivity
7
Innovative core offerings
Performance
for mass market customers
& targets
and B2B segment
Safe internet usage and

future skills programmes
Diverse and inclusive

workplace
Our strong foundation enables us to set a clear direction Our ambitions are aligned to key performance indicators
5 7
to drive growth. Refer to pages 42 to 43 and targets. Refer to pages 42 to 43 and throughout
Section 4, pages 46 to 69
We are backed by Our Purpose, Way of Work and high Our ability to create value is reflected in the outcomes we
6 8
standards of Responsible Business practices. Refer to derive for all stakeholders. Refer to Section 4, pages 46
Section 5, pages 72 to 104 to 69
Our Operating Landscape
The Malaysian telecommunications market landscape continued to be challenging in 2020, with far-reaching effects of Covid-19 across
customers’ data usage, spending capability and mobility, businesses’ ability to operate, as well as intense price competition impacting
industry revenue growth. Throughout this unprecedented pandemic, Digi has demonstrated resilience and has put in place robust
internal processes to regularly review megatrends, market developments and strategies to adapt, capture new growth opportunities and
mitigate risks. For more information on how Digi demonstrated its resilience in driving continued value creation, please refer to Section 4:
How We Create Value, on pages 46 to 69 of this report.
Financial Intellectual Social and Relationship Manufactured Natural Human
Aspect Impact to business & industry Digi’s Response
• Malaysian GDP contracted by 5.6% in 2020 on • Delivered high availability and reliability in our network at
the back of ongoing global pandemic critical sites and high demand locations
• Cautious consumer sentiment, employment • Innovated and widened our offerings for various consumer
insecurity and slower domestic economic groups via segmented approach to be relevant to customers’
Macroeconomic
activities needs
Link to capitals: • National lockdowns and movement control • Accelerated customer digital touchpoints to ensure
orders led to heightened demand in network business continuity
usage from home, hospitals, government • Ensured seamless network and service deployments
agencies and other essential areas via continuous optimisation and efficient supply chain
management
• Deployed strict Business Continuity Planning measures to
preserve employee and customer safety
2021 Outlook
• Expect continued uncertainties from Covid-19 response and movement restrictions, making it difficult to predict the pace of economic
recovery
• Gradual recovery with no significant change in current industry dynamics while waiting for nationwide rollout of Covid-19 vaccinations
• Prioritise defending market share, capturing new growth opportunities and delivering industry-leading cost structure
• Heightened price competition with multi-tiered • Focused on high-speed prepaid internet plans with easy
product plans impacting industry ARPU trend entry starting at RM15, and monetisation of high-speed data
and revenue growth • Expanded presence in fixed connectivity by bundling
• Speed-tiered unlimited data plans in prepaid postpaid plans with fibre-to-the-home via More@Home
Competition
mobile introduced by large competitors since position
Link to capitals: June 2020 • Introduced best-in-value Go Digital Bundles to boost
• Increased focus on acquiring SMEs to leverage recovery and growth for SMEs as part of PENJANA
on SME Digitisation Grant under PENJANA • Further optimised cash flow and delivered disciplined
initiative operational efficiency initiatives via new technologies and
• While industry mobile penetration in Malaysia processes
has matured at 132%, fixed penetration at 48%
presents opportunities for further growth
2021 Outlook
• Intense competition as competitors fight to capture share of economic recovery
• Shift in customer behaviour driving increased need for home connectivity and digital services
• The government has announced Jalinan • Committed to invest to increase overall service coverage,
Digital Negara (JENDELA) initiative to upgrade reliability and quality to provide digital inclusion for all
Malaysia’s digital infrastructure and provide Malaysians
wider coverage and better quality of broadband • Set up internal governance with cross functional and CXOs
Emerging
experience for the rakyat, whilst preparing the involvement to ensure seamless 3G sunset and subscriber
Regulatory country for 5G technology migration to 4G
Requirements • 3G sunset and subscriber migration to 4G • Continued to adopt an open and collaborative stance
present execution challenge among mobile with the regulator and industry stakeholders to ensure
Link to capitals:
telcos to ensure no impact to customer achievement of national goals as well as spectrum access
experience • Conducted organisation-wide training on the revised MACC
• New provision of the Malaysian Anti-Corruption Act on Corporate Liability that took effect on 1 June 2020
Commission (MACC) Act 2009 regarding graft
offences and corporate liability to push greater
governance and corporate citizenship
2021 Outlook
• Accelerate Malaysia’s 4G connectivity and coverage, whilst preparing the country for 5G technology via JENDELA
• Prepare for nationwide 3G sunset
• Cloud, data and analytics, artificial intelligence, • Set up Data Hub department to consolidate expertise and
and network technologies continue to reshape deployed digital initiatives such as use of data analytics for
the telco industry improved process efficiency and develop strategic data
• Cyber-security and data privacy becoming more assets to drive personalised offerings
Technology
important for customers and enterprises • Leveraging learnings from 5G use cases and trials
Link to capitals: • The need for the right digital talent to adopt conducted nationwide while modernising our network
digital transformation strategies at a faster pace • Robust governance and processes to ensure compliance,
to meet rising demands and new opportunities privacy controls and security system to enhance data
from technology innovation protection
• Develop critical digital competencies through a plethora of
e-learning resources and cross-function job exposures
2021 Outlook
• Develop critical digital competencies in Digi to drive customer-obsessed, innovative and data-driven culture
• Expect higher demand and expectations for reliable network connectivity, digitalisation offerings, and affordable data due to continued
remote working conditions
• Prioritise capex and investment to support exponential data growth and upcoming 5G infrastructure rollout
• Increased importance of sustaining high brand • Maintained highest standards of corporate governance,
trust security and sustainability
• Clear responsible business strategies to • Delivered Yellow Heart initiatives on building digital
demonstrate stronger resilience resilience, driving digital inclusion and support for inclusive
Social
• Creating a safe working environment to protect business
Link to capitals: employees and partners from effects of • Ensured strict adherence to operational and business
Covid-19 standard operating procedures (SOPs)
• Provided Covid-19 initiatives to boost remote work
environment and continuous e-learning to all employees
and stakeholders across our value chain
2021 Outlook
• Ensure continued recognition as a leader in responsible business
• Deepen efforts to retain and expand on Yellow Heart as a brand differentiator to promote digital safety and digital inclusion
• Supporting the government’s and sectoral initiatives such as the 12th Malaysian Plan and JENDELA
• Rising global concerns over climate change has • Identified green-tech innovative solutions
compelled mobile operators to adopt climate- • Deployed efficient resource consumption
friendly and energy-efficient solutions amidst • Reduced material resources and waste
expansive roll-out of mobile networks to meet
Environment
the exponential demands for connectivity
Link to capitals:
2021 Outlook
• Energy efficiency and technical mitigation towards building a low carbon network architecture
• Refine internal ESG risk management framework to mitigate rising climate impact
• Data-integrity exercise for consistent and accurate climate data as part of non-financial reporting
Our Key Relationships
In recent years, stakeholder capitalism movement is gaining traction, spurred by increasing focus on climate action
and increasing social challenges. At Digi, we believe that it is crucial to balance the corporate purpose for the benefit
of the company and all stakeholders, society and the planet. We constantly engage with our key stakeholders to better
understand their concerns and emerging priorities.
Stakeholder Prioritisation Process
This year, we undertook a stakeholder prioritisation exercise to perform a comprehensive assessment on the priority level of each
stakeholder group identified.
As guided by the Bursa Malaysia’s Sustainability Reporting Guide (2nd Edition) and Bursa Malaysia’s Toolkit, including Toolkit on
Stakeholder Engagement and Toolkit on Materiality Assessment, the representatives from various departments within the company
deliberated on the level of influence and dependence of each stakeholder group to Digi.
The outcome of the deliberation, as represented below, has allowed us to augment a holistic view of our stakeholder groups and to
better address their expectations.
Stakeholder Prioritisation Matrix FY2020
Employees
High dependence
Shareholders
Stakeholder's dependence on Digi
Board of Directors
Union
Medium - High
dependence
Business Partners
Suppliers
Government and Regulators
Investors and Analysts
Sustainability Partners and NGO

Medium - Low
Retail Consumers
dependence
Enterprise Customers
Communities
Media
Low dependence
Low influence Medium - Low influence Medium - High influence High influence
Stakeholder’s influence on Digi

In addition to the day-to-day engagement process, during the year under review, we have performed a Stakeholder Engagement
exercise to better understand our stakeholders’ views on Digi’s sustainability management. Based on the outcome of the stakeholder
prioritisation process, we have expanded the scope of engagements to both internal and external stakeholder groups. The
engagement was conducted with guidance from an external consultant. Various engagement methods were leveraged in engaging
with the different stakeholder groups, including the participation in a qualitative and quantitative survey.
Summary of engagement with key stakeholder groups
Engagement Channel
Stakeholder Groups Issues and Expectations Digi’s Response
and Frequency
Board of • Annual General Meeting • Existing agenda on ESG • Engage on Digi’s financial
Directors • Quarterly Board meeting matters (i.e. climate change, and non-financial
Responsible as • Board effectiveness anti-corruption, compliance, performance, strategic
the company’s evaluation welfare and wellbeing of the growth plans, operational and
leadership, setting • Company events/ activities stakeholders) talent management
out strategic aims, • Review financial and non- • Ensure transparency in
reviewing the Frequency of engagement: financial performances corporate reporting and
management’s disclosures through multiple
W Q Y
performance to meet platforms
objectives • Strengthen communications
and engagements with
stakeholders
Government and • Regular reports and • Widespread digital adoption • Wider coverage and better
Regulators periodical information • Service reliability and quality quality of broadband
Access to spectrum sharing with Ministry and • Achieving Jalinan Digital experience
and operating regulators Negara (JENDELA) targets • Improve our 4G network
licenses, set regulatory • Participate in JENDELA and • Tech talent development nationwide
measures with 5G Taskforce • Climate action and • Rollout of ‘#BuatLebihL4Gi
financial implications, • Company website environmental management campaign with Digi 4G’ to
and compliance in • Annual Report and Financial • Digi’s efforts in data privacy drive adoption
accordance to national Report and protection • Foundation to prepare the
laws and aspirations • Yearly site audit and visit country for 5G technology
• Analyst briefings together with industry
• Affordable access for
education and productivity,
Frequency of engagement: digitalisation for SMEs and
W Q Y businesses and inclusive
products and offerings for
the rakyat
Frequency of engagement:
D Daily Q Quarterly
Weekly
W H Half-yearly
Monthly
M Y Yearly
Engagement Channel
and Frequency
Customers • Self-serve options via • Coverage and service • Maintain as the fastest and
Subscribers of Digi’s MyDigi App quality most consistent network in
products and services • Digi retail outlets • Bill shocks from third party Malaysia
• Website and social media content providers • Innovative and affordable
• Digi’s annual Customer • Notification during service products such as Digi
Obsessed Day lapses Prepaid Abadi, Digi Postpaid
• Customer service channels • Competitive plan and price Smart Bundle for frontliners
(online customer service points and essential workers and
and call centre) • Pace of 5G implementation Digi Prepaid SPM/STPM
and IoT pack
Frequency of engagement: • Improve digital capabilities of
self-service channels
D W M Y
Employees • Best On People Council • Career development plans • People dialogues and
Individuals employed (BOPC), led by a committee • Rewards and benefits performance based rewards
under Digi, consisting selected by employees structure • 40-hours online learning
of full-time, hires annually • Employee engagement and challenge via various digital
under contractual • Digi Telecommunications enablement learning platforms
terms, and part-time Sdn Bhd Employee Union • Covid-19 impacts on • Organisation-wide events
employees • Annual Employee Digizens such as Responsible
Effectiveness Survey • Diversity and inclusion (i.e Business Summit, Digital Day,
• Internal engagement gender balance, skills and Customer Obsessed Day,
channels capabilities, and equal Teambuilding, What’s Your
• Leadership forums opportunities for all) Next sessions
D W Q H Y
Engagement Channel
and Frequency
EMPLOYEE UNION • Meetings with union • Employee welfare and • On-going dialogues with
Participation by committee members culture Digi Management on general
employees who meet • Company events/ activities • Alignment to company employee welfare and
the eligibility in Digi • Forums and seminars direction company direction
Telecommunications • Covid-19 impacts • Renewed commitment to foster
Sdn Bhd Employees Frequency of engagement: • Climate change and green strong relations and establish
Union (DGEU) practices (i.e. recycling, go- partnerships by way of signing
Q M H
green products, renewable the Third Collective Agreement
energy)
Shareholders, • Dedicated investor relations • Business performance and • Facilitate discussions on

Analysts and office as the focal point for outlook Digi’s performances and
Investors investor updates • Sustainable shareholder outlook
Our provider of • Integrated annual reports return • Provide timely and
capitals require • Annual General Meeting • Digital transformation and comprehensive disclosures
consistent and clear • Quarterly earnings call strategy • Provide adequate access to
communication on • Non-deal roadshows and • ESG practices Digi’s management team
financial and strategic investor conferences • Corporate governance
development to build • Digi Investor Relations standards
stronger expectations website (www.digi.com.my/ • Customer data privacy and
and trust investors) protection
W M Q Y
Business • Mutual collaboration as • Connectivity options • Offer Fit-for-purpose solutions

Partners required and service offerings for to maximise broadband
Businesses having • Tenders and commercial customers connectivity
a direct contractual agreements or partnerships • Helping SMEs and B2Bs • Introduce Go Digital with
relationship with • Regular meetings recover and diversify PENJANA SME Digitalisation
Digi, to offer its own • Media through digitalisation Grant
services to Digi, or to • Conduct Business Continuity
co-develop products Frequency of engagement: Digitalisation programme
and services for Digi
W M Q D
customers
Engagement Channel
and Frequency
Suppliers • Annual Self Assessment • Health and safety in supply • Training and capacity building
Businesses having Questionnaire (SAQ) chain sessions for our contractors
a direct contractual • Site inspections and audits • Non-compliance in supply and sub-contractors to raise
relationship with • Supplier training chain standards on health and safety
Digi, to offer its own • Product presentations • Integrity due diligence and responsible business
services to support • Green solution (including practices
Digi in its operations Frequency of engagement: energy efficient • Collaboration with industry to
infrastructure, e-waste implement joint enforcements
W Y D
management) to maintain the highest
• Covid-19 impacts on the standards of safety across our
business and employees supply chain
• Achieved zero Lost Time Injury
Frequency (LTIF) score in 2020
Media • Strategic and operational • Corporate strategy • Regular media engagements

Mass communication media interviews and events • Financial performance to provide updates on
organisations • Formal and informal • Products and services business performance and
covering publication, briefings • Customer and public strategy, products and
broadcast and online • Media familiarisation visits matters of interest services, and address issues
mediums • On-demand requests of customers’ concerns
D Q Y
Community, • Engage and partner with • Leveraging mobile • Initiatives to bridge the digital
Sustainability government agencies, technologies and future gap and inequalities
Partners & Non- corporates and NGOs skills content to empower • Implementation of digital
Governmental to address issues in the local communities resilience and digital inclusion
Organisations community • Safe internet use programmes in partnership
(NGO) • Global and local • Internet access gap to the with NGO and communities
Partners who share partnerships between community
the same aspirations Telenor Group, Digi and • ESG matters (i.e.
for reducing UNICEF Contribution to Sustainable
inequalities and Development Goals, Human
bridging the digital Frequency of engagement: Rights and Climate Action)
divide in communities
M Q Y
Our Key Risks
The increasingly interdependent ecosystem of telecommunications, digitalisation and technology evolution, as well as the emerging
stakeholders’ expectations require holistic risk assessments. Digi leverages on its risk management framework to identify, measure
and monitor strategic and operational risks, giving management a clear risk oversight to enable informed decision-making.

Digi’s risk management framework is broadly based on ISO 31000 International Risk Management Standard which sets the foundation
on how risks are being managed, and the responsibilities of management team to assess significant threats and opportunities related
to the company’s goals/ambitions. Key risks identified by owners and senior leaders are aggregated to produce Digi’s top risks profile
and reported to the Board and Audit and Risk Committee (ARC) for governance oversight. Further details of our Risk Management
Framework are available in the Statement on Risk Management and Internal Control, pages 97 to 102 of this report.

During the year under review, we have considered the Covid-19 impact which has resulted in operating constraints that have a knock-
on effect on our key risks. To fully understand our risk landscape, we analysed the correlation between these key risks and the potential
impact to derive informed business continuity strategies during the Covid-19 pandemic. New risks have been added to our watchlist
while we continue to mitigate the risks arising from Covid-19.
Financial Intellectual Social and Relationship Manufactured Natural Human
Risk Definitions / Mitigation Actions for Value Risk

Key Risks Impact on Business
Description Creation Movement
Market and An externally driven risk Softer consumer and • Intensify acquisition (FY2019
competition as the effects of Covid-19 business spend and base management vs. FY2020)
pandemic is gradually efforts to capture growth
Unchanged
changing the dynamics Change in customer from digital and internet
of industry and socio- behaviour and adoption
economic recovery pace. consumption patterns • Drive digital value
Heightened competition proposition to grow B2B
and availability of near- Outlook for tourism and revenue and market
core digital offerings are influx of migrants remain shares
expected to challenge softer due to border
industry growth restrictions Impact to Capital:
Business To ensure our ability Reduced service level • Precautionary and contingency (FY2019
CONTINUITY to provide high quality and network disruption measures, segregated vs. FY2020)
and consistent network teams, and alternate sites
New risk in
experience nationwide Adverse impact on were implemented to ensure
2020
during the pandemic, it is customer experience continuity of services
imperative that Digi has a • Dynamic sourcing and supply
comprehensive business Delayed or loss of chain management to ensure
continuity plan to mitigate inventory supply or adequate and contingency
the risk of interruptions in services from vendors/ supply
these critical service areas: business partners due • Multi-vendor strategy to
to Covid-19 related diversify and minimise
• Network services restrictions dependancy on a single vendor.
• Information systems
• Contact centre services Impact to Capital:
• Retail operations
• Supply chain services
Our Key Risks

Employees’ The Covid-19 pandemic Employee’s engagement • Continuous monitoring (FY2019

health and has brought about a new concerns arising on the risk landscape of vs. FY2020)
safety norm in our way of work, from remote working Covid-19 and frequent
New risk in
changing the way we conditions communication to
2020
engage with employees employees on the
Adverse Covid-19 impact development and
on employees’ wellbeing precautions needed
and health • Practice vigilance to sustain
safe working condition for
employees while following
authorities’ standard
operating procedures and
Digi’s BCP
• Employee surveys, increased
virtual engagements and
leadership enablement
Impact to Capital:
Capital Continued investment Shift in customers’ • Optimise traffic and prioritise (FY2019
allocation in digitalisation and data usage quota and investment in competitive vs. FY2020)
and network modernisation to increased demands for network to ensure consistent
Unchanged
operational provide the best internet greater value on quality, customer experience
efficiency experience speed, and reliability of • Continue to drive execution
risk our network of operational efficiences,
Need for robust capital modernise digital channels
allocation, operational Prioritisation of network and invest in digitisation
efficiencies, and free cash traffic management from • Network Modernisation
flow management urban business centres project focused on next-
to residential areas during generation networks roll-out
the pandemic for energy efficiency and
sustainable growth
Impact to Capital:
Our Key Risks

Regulatory, Digi and business partners’ Non-compliance by Digi • Teams of subject (FY2019
legal and compliance with relevant or business partners matter experts along vs. FY2020)
compliance legislation, and applicable may result in reputational with overarching policy
Increased
risk industry regulations or damage, financial compliance framework
requirements. These penalties or suspension • Strong internal governance,
include spectrum, access of license risk assessment, and
licenses, customer functional compliance
registration, privacy, anti- monitoring programmes
corruption, and competition across our business value
chain
Failure to comply with
• Regular participation
these laws and regulations
in discussions and
could lead to reputational
consultations with
damage, financial penalties
stakeholders like regulators,
and/or suspension of
law enforcement authorities,
license to operate
and the industry
Other external risk factors • Optimise resources and
include the government’s cross functional team
ambition to promote digital collaboration
inclusion across the nation
and uplift of network quality Impact to Capital:
and coverage
Data Effective data governance Non-compliance may • Strengthen operational (FY2019

Protection is critical to fulfil heightened potentially result in loss compliance process and data vs. FY2020)
and risk expectations in consumer of customers’ trust and protection impact assessment
Increased
management data protection under the reputation, scrutiny to identify privacy related risks
new remote way of work by law enforcement • Privacy and Security teams
agencies, and financial ensure operational compliance
penalties monitoring
Impact to Capital:
Our Key Risks

Cyber As technology landscape Loss of critical data and • Dedicated security (FY2019
threats and changes, corporations service interruptions monitoring team to detect vs. FY2020)
security risk need to monitor could result to adverse potential threats, and
Unchanged
vulnerabilities to increased creditability and negative on-going enhancement of
cyber-attacks by external customer experience Digi’s defendable security
threat actors architecture to strengthen
resilience to malicious cyber
attacks
Impact to Capital:
Responsible Maintaining commitment, Adverse brand, • Sustainability framework to (FY2019

business internal ownership, reputation, and unmet drive commitment in raising vs. FY2020)
commitment and advocacy on stakeholder expectations standards on responsible
Unchanged
risk responsible business business conduct
practices throughout the Financial penalties from • Stakeholder engagement on
organisation and supply enforcement agencies material sustainability matters
chain
Impact to Capital:
Talent and Inability to effectively Overworked employees, • Strengthen Digi employer’s (FY2019
succession manage succession loss of key personnel and brand to uplift our digital vs. FY2020)
management planning, attract new increased attrition rate will presence while continuing to
Unchanged
risk talents, retain top talents impact accomplishment implement targeted retention
in competitive market, of critical goals or strategies
and adequately promote objectives • Proactive succession and
diversity and inclusion workforce planning to
identify skill gaps and talent
development needs
• Programmes to fill identified
competency gaps to address
operating model shifts
Impact to Capital:
Our Material Matters
In FY2020, we refreshed our materiality assessment to substantiate the materiality of economic, environmental, social and
governance risks (known as “sustainability matters”) that are relevant to our business and stakeholder’s expectations. Our materiality
assessment is guided by our risk management framework as well as Bursa Malaysia’s Sustainability Reporting Guide (2nd Edition)
and Bursa Malaysia’s Toolkit. To understand our stakeholders’ perspective, we engaged with a wide range of external and internal
stakeholders to further evaluate and shape our materiality matrix. Subsequently, these stakeholders’ findings are mapped against
Digi’s strategic priorities and its business environment.
Phase 1: Review material matters
• Cross-functional deliberation sessions

• Basis for review – Internal business environment, business strategy, external trends and stakeholders’ feedback
• Identification of 25 sustainability matters for further review
• Mapping of sustainability matters against Digi’s three Strategic Pillars
Phase 2: Stakeholder engagement
• Engaged with representatives from 13 stakeholder groups

• Representatives from each stakeholder group rated the sustainability matters identified based on a 4-point Likert scale
• Average scores were tabulated based on equal-weighted approach applied across all stakeholder groups
• Stakeholders’ feedback and concerns were also gathered to better understand their needs and expectations in terms of
sustainability management and reporting
Phase 3: Sustainability impact assessment
• The magnitude of each sustainability matter is assessed through our impact assessment
• Representatives from various business functions deliberated the sustainability matters scoring
• To ensure integration between our risk and materiality assessment, Digi’s enterprise risk parameters were used to guide us in
scoring the likelihood and consequence of each sustainability matter
• Each sustainability matter is assessed based on the impact on revenue, cost, regulatory, brand and reputation, as well as
health, safety and environment across a specific timeframe
Phase 4: Calibration of stakeholder engagement and impact assessment
• The findings from both exercises were tabulated and analysed

• The outcome of the analysis was presented in our materiality matrix, through which the top sustainability matters were determined
• The sustainability matters were further consolidated into 13 broad categories for discussions in this report
Phase 5: Review and approvals
• Upon finalisation of the materiality assessment, it was presented to the Board of Directors for approval
Materiality Matrix
Based on the input from both stakeholders and the business, we have developed our materiality matrix for FY2020 using the
consolidated Top 13 material matters. We have also prioritised and mapped these matters in accordance with our strategic pillars.
The matrix provides guidance for our future initiatives and sustainability planning.
digi’s materiality matrix fy2020

Influence on Stakeholder Assessments and Decisions
M2
High
M1
Medium - High
R1
R5 G1 R2
G2
R6 R3
M3
G3
R7 R4
Medium
Medium - Low
Mapped to Digi’s
Strategic Pillars
Growth (G)
Low
Modernisation (M)
Responsible Business (R)
Low Medium - Low Medium Medium - High High
Significance of Digi’s Economic, Environmental and Social Impacts
Based on the outcomes of the assessment (and in comparison, to Digi’s FY2019 assessment), the following inferences can be made.
• Customer Satisfaction, Data Privacy and Security, Service Reliability and Quality, Business Ethics and Corporate Governance,
Occupational Health and Safety and Regulatory Compliance remain the top material matters to Digi.
• Due to the Covid-19 pandemic and geopolitical risks, focus areas such as Digital Resilience and Inclusion, Crisis Management and
Response, and Occupational Health and Safety have become more material to Digi in order to maintain its business performance
and operations in the new normal. Other social related matters still remain moderately material to Digi such as Talent and Culture
and Respecting Human Rights and Freedom of Expression.
• Based on the top global risks in 2020, environmental issues are becoming more material to the business. This is in line with the
upward trajectory of climate change in terms of priority for mobile operators in general, across the world. We take a long-term
commitment in addressing climate issues and will continue adopting energy efficient solutions to mitigate rising climate impact.
• We remain steadfast to elevate best practices under our people commitment - embracing Digi’s diversity, inclusion and talent
development agenda, as well as continued efforts to maintain high ESG standards across our value chain.
Material Sustainability matters Description
Very High Importance
M1 Customer Satisfaction Employing customer-centric solutions for a differentiated user experience in our
highly competitive markets
R1 Business Ethics and Corporate Maintaining an effective governance framework and internal controls to uphold
Governance corporate values and ethical standards across our value chain
M2 Data Privacy and Security Upholding strong governance to strengthen privacy controls and to protect
stakeholders’ data and information against cyberattacks
High Importance
R2 Occupational Health and Safety Conducive environment that improves health and safety conditions for employees
and contracted workers along the supply chain
G1 Service Reliability and Quality Providing quality and consistent network experience to customers
G2 Regulatory Compliance Maintaining robust controls to meet the existing and emerging legislation and
regulation
Medium-High Importance
R3 Digital Resilience and Inclusion Enable greater access whilst providing access to safe internet to enhance digital
inclusion and resilience among stakeholders
R4 Climate Change and Environmental Protect the environment via transitioning towards a low carbon economy and
Management employing effective waste management within the business operations
R5 Respecting Human Rights and Upholding human rights by mitigating risk of potential misuse across our value chain
Freedom of Expression and access to the right information
R6 Crisis Management and Response Well-prepared for crisis with a rapid and adequate response plan, whilst maintaining
clear lines of reporting
R7 Supply Chain Management Raising standards of our supply chain to positively influence social equality and
environmental protection
G3 Business Development and Robust strategies to acquire and expand businesses and value creation to drive
Expansion growth and profitability
M3 Talent and Culture Fostering an environment that attracts and retains high-performing talent while
encouraging for continual development of digital competencies
Our Emerging Opportunities
Macroeconomic, regulatory, and technological developments have influenced the industry and consumer behaviour at a rapid
pace. By understanding our stakeholder’s expectations, coupled with thorough analysis of the operating trends and key risks, it has
presented Digi with a host of opportunities that can positively impact our business and we continue to be mindful of how we can
utilise our available assets to drive sustainable performance in the year ahead.
Financial Intellectual Social & Relationship Manufactured Natural Human
Emerging Opportunities Description Action Plans by Digi
Expanding ultra- Scale up Digi Fibre • Capture growing customer’s need for reliable home connectivity
fast and unlimited Broadband offerings • Provide customers with a bundled product proposition for a
Fibre-to-the-Home as part of end-to-end seamless in and out of home service experience
solutions product portfolio to
support postpaid growth Impact to Capital
DIGITALISATION Accelerate digitalisation • Continue to build ecosystem of partnerships and internal

OF corporates, of SMEs through competencies to leverage fast-growing digital capabilities to
small and medium development and deliver end-to-end digital solutions
enterprises (SMEs) provision of digital
solutions beyond Impact to Capital
Digi’s core connectivity
business
Deploy and monetise Drive revenue upside • Ensure network readiness for efficient 5G deployment
5G from enterprises and • Drive collaboration with potential industry and solution partners
customers by offering leveraging Telenor’s experience and expertise
innovative 5G solutions
Impact to Capital
Build sustainable Develop robust and • Offer structured learning paths in seven expert competence
talent pipeline future-ready talent areas deemed critical to Digi’s strategy for continuous learning
pipeline for the company and upskilling
and the industry as a • Select senior leaders for Strategy Execution Programme
whole organised in collaboration with Telenor and Deloitte
• Empower underserved communities with future skills training
Impact to Capital
Digital Inclusion and Ensure fair and equal • Drive digital inclusion and resilience for underprivileged
Equality access to internet for communities under Yellow Heart
all Malaysians while • Provide safe internet training for educators and schools
addressing the complex • Produce national survey findings on internet safety among
challenges related to students and children
online safety
Impact to Capital
Our Strategy
Our long-term business strategy is anchored on our purpose to connect customers to what matters most and empower societies.
In FY2020, we have reviewed and further enhanced our strategic framework into three pillars together with a three-year roadmap
in achieving our ambition to be the trusted digital connectivity partner.
Inno
vat
ts ing
men on
g
se ou
r
d
n
co
sa
re
itie
to
un
im
ort
pro
opp
ve
d by new market
custo
mer experience
Fuele
Emb k
edded wor
in our way of
RESPONSIBLE
BUSINESS
Where we MODERNISATION
will be in 2023
Leader on Best customer
sustainable business experience, built on
standards and ESG channel digitalisation and
practices in Malaysia automated operations
300,000 GROWTH #1
Users engaged via Most consistent
Yellow Heart programmes Sustainably grow Consumer network
on digital resilience and and lead organic B2B (Maintain 2020 position)
future skills revenue growth
#1 20% 33% 100%

Touch-free operations
Malaysian telco for Growth in Growth in B2B on Digi network
ESG performance Postpaid and Fixed revenue (2020: 74%)
(Maintain 2020 position) subscribers (vs. 2020 baseline)
(vs. 2020 baseline)
Our Strategy
2021
Building Foundations
2022
Advancing Customers
2023
Powering The Nation
For Growth In And Society Through With 5G Solutions And A
The New Normal Digitalisation Future Of New Possibilities
• Easy, seamless products and • Capture fair share of Fixed (FTTH & • Robust growth trajectory
solutions (mobile, fixed, digital) Fixed Wireless Access (FWA)), and 5G built on B2B and 5G
• Build position on trust and security revenue growth • Extensive B2B and 5G
for fastest SME growth • Pioneer 5G and IoT value creation in solution portfolios in target
GROWTH
• Explore new revenue streams key B2B verticals (ports, oil & gas) verticals
• Invest in new revenue streams via • Innovation partner of choice
partnerships across Telenor Asia for global technology players
• Optimised future-proof network using Artificial

• Modernise operations to deliver best customer experience Intelligence (AI), Machine Learning (ML) and touch-free
• Customer journeys made seamless and simple operations
MODERNISATION • Preferred employer for top digital talents in Malaysia
• Digi as preferred brand - known for customer obsession, • Leader in responsible business, ESG practices and
innovation and responsible business driving community impact
RESPONSIBLE
BUSINESS
how do we get there

Priorities for 2021
RESPONSIBLE
GROWTH MODERNISATION
BUSINESS
• Build core mobile and strengthen with • Improve ease of performing self-serve • Raise ESG standards and continued
FTTH across Malaysian base transactions across digital channels responsible business focus
• Explore key Malaysian segments and • Modernise enterprise IT platforms to serve B2B • Safeguard customer data by enhancing
B2B through differentiated 5G services customers efficiently privacy, data protection and security
• Leverage automation and AI/Machine Learning architecture
• Pioneer innovative solutions to
digitalise enterprises in key verticals to enhance Digi’s lean operating model • Industry leader in diversity and inclusion
(ports, oil & gas) • Build talent and competences, and strengthen • Innovator in developing digital
• Fastest SME growth via digitalisation Digi’s employer brand resilience and future skills
competencies to scale community
• Invest to deliver competitive and
impact and reduce inequalities
consistent network experience
Empowering
societies with
digital connectivity
We believe the Internet is the gateway to endless opportunities, and we are
committed to help reduce inequality by empowering every Malaysian, including
senior citizens, persons with disabilities, B40 communities and more. Through
our Yellow Heart initiatives, we continue to provide everyone easy access to the
Internet, build future-ready workforce with digital skills and nurture a digitally-
resilient community for a better, safer world tomorrow.
How We Create Value
SOCIAL &
FINANCIAL MANUFACTURED INTELLECTUAL HUMAN NATURAL
RELATIONSHIP
What financial capital means to Digi

Digi’s financial capital relates to the management of funds
within Digi which are generated from our operations or
investments as well as external funding supplied through
financial institutions. Optimal management of financial
capital aids us to maximise the value creation for all
stakeholder groups.
Key highlights and value created

 High investment grade of AAA with stable outlook Mapping against our sustainability matters
 Improved commercial momentum with wider range of
products and services G3 M1 R6
 Maintained a relatively resilient operating model
 Achieved industry leading levels of efficiency Our key initiatives linked to strategic pillars
 Focused on delivering robust balance sheet
Driving sustainable growth from the
challenges and opportunities internet and digital portfolios
 Movement restrictions and closure of borders and non-

essential business sectors throughout the year affected Growing active Malaysian subscriber
consumer affordability and livelihood base to deliver resilient service revenue
 Lowered roaming revenues and usage from migrant
segments as a result of border closures Delivering disciplined cost control and
 Increased cost awareness led to decrease in capital allocation
discretionary spending
 Fierce industry competition prevailed with low entry- Managing risks for trade receivables
level prices and unlimited data plans being introduced
to address evolving customers’ behaviors
 Ensured management of cash sources and uses in the Strengthening our focus to drive
most optimal manner became more critical than ever to efficient, profitable operations
protect liquidity level
 Important trade-offs between ensuring short-term Sustaining near 100% of dividend
financial resilience and long-term sustainable growth payout ratio
objectives challenged EBITDA and profitability profile
 Immediate shift to digital for business continuity, remote
Protecting balance sheet with solid
work and e-learning resulted in increased digital and
financial capability and sufficient fund
internet adoption
for future growth
How We Create Value
Driving sustainable growth from the internet and digital portfolios
• Led by strategic shifts undertaken to reduce reliance on traditional prepaid voice and significantly changing our
revenue and subscriber mix to be more internet centric as well as to leverage growth in internet adoption
More sustainable revenue mix Improved internet and Growing internet users
digital revenue
in RM mil
85%
10% 12%
+10%
22% 18% 4G subscribers
3,948 (FY2019: 79%)
FY2019 FY2020 3,591
68% 70% 87%

smartphone
penetration rate
(FY2019: 85%)
Postpaid, internet & digital Non-internet prepaid Devices & others FY2019 FY2020
Growing active Malaysian subscriber base to deliver resilient service revenue
• Driven by sharp focus to increase stickiness amongst Malaysian base through contracting and renewal activities
• Curated multi-tiered internet passes for various segments such as youth, elderly and mass consumers
Improved ARPU development Lower total subscribers Larger active Malaysian base
In RM
2019 2020 14%
71 6%
67
10.4 29% Y-Y to offset
declining migrant
million
base
7%*
40 41
30
31 57% Ranked #2
Postpaid operator with
Postpaid Prepaid Internet Non-internet over 3.0 million subscribers
* Conscious decision to drive quality registration

Postpaid Prepaid Blended of subscribers and maximise return on
incentives
How We Create Value
SOCIAL &
RELATIONSHIP
Delivering disciplined cost control and capital allocation
• Executed stringent cost efforts through structural and non-structural cost savings initiatives
• Continued investment in network coverage and capacity expansions nationwide, and driving stronger postpaid and
internet subscriptions
Higher costs by 3% Opex savings of 1% Optimal organic capex Sustained organic

in line with growth in device as a result of strategic as guided amid challenging capex-to-service ratio
and digital business transformation to online backdrop
channels
3,013 3,097 773
753
1,433 1,539
720
753
1,580 1,558
11%
in sales and
0 53 13%
To support growing
marketing costs FY2019 FY2020 network coverage
FY2019 FY2020
(FY2019: 13%)
Cost of good sold (RM) Organic Capex (RM)
Opex (RM) Asset retirement obligation (RM)
Managing risks for trade receivables
• Tightened our credit management and collection process to Low provision of doubtful debts ratio
manage provision of doubtful debts below industry levels reflected our ability to
• Enhanced acquisition mechanisms such as higher credit manage collection risk
3%
score eligibility and device volume
• Optimised balance sheet through exclusion of trade
receivables
(FY2019: 3%)
How We Create Value
Strengthening our focus to drive efficient,

Sustaining near 100% of dividend payout ratio
profitable operations
• Maintained industry-leading profitability margins • Continued to exceed the company’s dividend policy
despite softer topline environment of distributing a minimum 80% of net profits
• Earnings before interests, taxes, depreciation and • Kept to our commitment to deliver strong and
amortioncation (EBITDA) moderated by 7% to RM3.08 sustainable returns to our shareholders
billion amid softer topline development from Covid-19
related factors, mitigated by cost reduction efforts Shareholder returns
• Profit After Tax (PAT) totalled to RM1.22 billion from 18.4 18.2
RM1.43 billion flowed through from lower EBITDA
and higher depreciation and amortisation attributed 15.7 15.6
to MFRS 16 adjustments and recognition of Asset
Retirement Obligations
Resilient EBITDA and PAT margins

FY2019 FY2020
52.5 Earning per share (sen) Dividend per share (sen)
50.0
Approved
22.8 Dividend by Board
19.8
FY2019
EBITDA margin (%)
FY2020
PAT margin (%)
RM1,213 mil Near 100% payout ratio
Protecting balance sheet with solid financial capability and sufficient fund for future growth
• Expanded Total Assets to RM8.19 billion on enlarged right-of-use assets led by continued prioritisation on efficient asset
management
• Ensured business sustainability and positioned us for the future to deliver value to our shareholders
Total Assets Higher total borrowings Gearing and net debt level
mainly attributed to increased
19%
finance leases of 26%
10% 1.7 times
Net debt to EBITDA ratio
(FY2019: 1.6 times)
Total Borrowing
Total Assets 43%
7%
Including finance leases
RM8.19 billion RM5.45 billion
as at 31 Dec 20 as at 31 Dec 20
Conventional debt over total
81% 47% assets ratio below 33%
threshold set by the Securities
Commission
Current Asset Non-Current Assets Islamic Finance Leases Conventional (FY2019: 10%)
For more details on our financial performance, please refer to our CFO Statement, pages 18 to 20
How We Create Value
SOCIAL &
RELATIONSHIP
What manufactured capital means to Digi

Digi’s manufactured capital refers to our network
infrastructure and assets (telecommunication towers and
fibre) as well as data centres and retail touchpoints across
Malaysia. These form an integral source of competitive
advantage for us to deliver our services reliably to customers.

 Most consistent network Mapping against our sustainability matters
 #1 and #2 in download speed across all states
 Trusted service provider to 10.4 million customers G1 M1 R3
 Continued optimisation and quality management (layer
and traffic balancing) to ensure consistent service Our key initiatives linked to strategic pillars
quality
Delivering stronger coverage and
 Efficient management of our spectrum portfolio
network capacity throughout the
 Differentiated products and services for consumer and
pandemic
enterprises
 Digitalised customer facing processes to provide Ensuring consistent network experience
seamless experience for customers for customers with the fastest network
challenges and opportunities

Preparing our core mobile network to
 Maintaining consistent network experience in view
be 5G-ready
of the surge in data usage at critical sites and high
demand locations throughout the pandemic
 Maintaining quality of service and high level of resilience Developing in-house digital services
in our network amid traffic hike to address customer needs and pain
 Continuing our support for the national digitilisation points
initiatives and bridging the digital divide
Deepening digitalisation efforts to drive
online customer engagements and
overall customer satisfaction
How We Create Value
Delivering stronger coverage and network capacity throughout the pandemic
• Improved network coverage and capacity in line with our strategic goals to expand 4G mobile coverage in rural and
remote areas and enhance in-door coverage nationwide
• Executed strategic deployments which enabled us to meet targets for new and upgraded site rollouts
• Continued granular focus on improving core network stability and coverage to serve critical and high demand locations
throughout the pandemic
Robust network coverage Enlarged network sites Fulfilled JENDELA ambitions*

Sarawak
91% 92% Central 10%
28% 100% completion
Sabah in site upgrades to support
75%
72% 12% JENDELA ambitions in 2020
9,981
97% completion
9,563
3%Y-Y in new site rollouts to support
to 9,890 sites
JENDELA ambitions in 2020
Eastern
14%
FY2019 FY2020
* JENDELA was formulated collectively
Southern
by the telco industry and the government
19% Northern to improve network coverage and better
Fibre (KM) LTE (%) LTE-A (%) 17 quality of broadband experience
Ensuring consistent network experience for customers with the fastest network
• Prioritised capex and allocated resources to support growing customer demands

• Maintained secure and reliable network services throughout the pandemic
Higher data consumption growth Flat year-on-year performance in network net promoter score, whilst gaining
leadership position in becoming the fastest and most consistent network
+36% -1%
point
29.36 Mbps
download speed in 2H20*
Maintained #1 or #2
on network speed across 13 states*
Sustained #1
on consistency and throughput speeds*
FY2019 FY2020 FY2019 FY2020
* measured via third-party crowdsourcing data
How We Create Value
SOCIAL &
RELATIONSHIP
Preparing our core mobile network to be 5G-ready
• Partnered with ZTE for nationwide Radio Access Network (RAN) modernisation, to enhance our network capacity and
deliver improved user experience
• Prepared a future-ready network by upgrading Digi’s sites with the latest 5G technology progressively
• Exploring 5G use cases and verticals in a collaborative approach through 5G Demonstration Projects
5G OpenLab 5G Demonstration Projects
• 5G-powered collaborative space open for all • Real-time virtual tourism experience showcase
academics, universities, start-ups, developers, with Malaysia Airports, Panorama Langkawi,
and businesses to trial Tourism Malaysia and ZTE at Langkawi
• Continue to explore infinite possibilities with 5G International Airport
in partnership with MDEC and Cyberview • Digital healthcare (remote diagnosis on
emergency patients) showcase in Langkawi
with the Ministry of Health, CREST, and ZTE
Developing in-house digital services to address customer needs and pain points
Growth engines for retail customers Digital solutions for enterprise customers
MyDigi as a lifestyle hub Omni Hotline

Increasingly moving from a utility-based Professional virtual phone system
application to an enriched lifestyle hub in for businesses powered completely
collaboration with partners through a mobile application
iFleet
A B2C platform for gaming
Malaysia’s best fleet management
Providing gamers with the ability to
solution to help enterprises manage the
seamlessly reload and make purchases
productivity, efficiency and visibility of
on their favourite games
their fleet
Subscription management platform altHR super app for companies

One stop platform to manage all your Digital workforce management solution
entertainment, lifestyle and productivity with features enabling companies to
related subscriptions operate efficiently in the new normal
How We Create Value
Deepening digitalisation efforts to drive online customer engagements and overall customer satisfaction
• Increased self-serve transactions on digital channels, providing customers an alternative platform to manage essential
tasks during the various movement restrictions
• Enabled physical to digital shift in reloads, driving improved bill payments over digital channels
4.4mil
monthly active users
+7%
upsell transactions
over
300k
increased by 16% secure logins per day,
with improved security
infrastructure
• Sustained customer satisfaction (CSAT) scores reflected our sharp focus to pivot business strategies to connect
customers to what matters most
63% 62% 62%
88% 90% 89%
FY2018 FY2019 FY2020
Contact Centre Retail Centre

1
Data for CSAT score has been independently audited by PwC
How We Create Value
SOCIAL &
RELATIONSHIP
What intellectual capital means to Digi

Our strong brand equity and trust are strongly anchored
on our People, Culture and Governance beliefs. Digi has a
strong value proposition in Malaysia to deliver best network
experiences to our growing customer base as well as providing
a safe and secure environment for our employees and partners.
Our commitment to driving a digital company, and effectively
harnessing advanced megatrends such as 5G, AI and Big Data
will lead to new opportunities in the future.

 A strong brand with sustainable business focus Mapping against our sustainability matters
 Strong customer care and brand programmes
 Agile and smarter in deploying products and services, G3 M2 R6
as well as mobility data and analytics to support
government in pandemic control Our key initiatives linked to strategic pillars
 Leadership in driving Responsible Business
commitment Establishing a trusted brand connecting
 Improved user and workforce experience customers to what matters most
challenges and opportunities Increasing operational efficiency

 Efforts to protect Digi’s network and customers from through process optimisation
increased security threats
 Relevant, robust programmes and initiatives to enhance Maintaining our business resilience
our reputation as a responsible employer and service
provider in the industry
 Heightened urgency to advancing digital transformation Accelerating channel digitalisations
via partnerships
through affiliations and collaborations
Improving awareness and importance

of cybersecurity to Digizens and SMEs
Enhancing data protection and security

to strengthen the integrity of our
network
How We Create Value
Establishing a trusted brand connecting customers to what matters most
• Maintained high brand reputation through our focused sustainability initiatives

• Wider Socially Responsible Investments (SRIs) through the inclusion in various sustainable indices with good
Environmental, Social and Governance (ESG) ratings
Included as index constituent in ESG Preferred brand for consumers and shareholders
and Shariah indices
Bursa Malaysia Index Bursa Malaysia Hijrah 2020 Putra Brand Awards Malaysia-ASEAN Corporate
Shariah Index Governance Report
Rated 3.5 out of 4 As a shariah- Excellence Award

Winner of Platinum
compliant stock since for Long Term Value
One of the pioneer award for the industry,
2018, in line with our Creation for generating
constituents on the for the first time in 11
focus to tap into shariah highest equity return in
index since its inception years
investors 10 years
in 2014
Increasing operational efficiency

Maintaining our business resilience
through process optimisation
Pursuing new operating models Getting through the pandemic

• Increased operational efficiency • Implemented robust Business
and flexibility by migrating IT Continuity Planning (BCP)
processes to partner to establish measures to ensure people safety
Common Delivery Center for IT • Expedited rollout of digital tools
(CDC-IT) to enable remote work
Fitter for the future Constant communication with

• Optimised our internal processes Digizens
and driving efficiency to reduce • Distributed weekly HR virtual
costs toolkits
How We Create Value
SOCIAL &
RELATIONSHIP
Accelerating channel digitalisations through affiliations and collaborations
• Digitalised customer facing IT processes to provide seamless and faster execution via online channels, such as
marketing automation tool and centralised catalogue management
• Established gameplan for digitalising customer journeys which enables channel modernisation and readiness to drive
new areas of growth and to maximise efficiency and productivity in operations
• Set up dedicated teams to consistently review processes for optimisation and improvements
Real-time contactless payment Personalised messages and offers Affiliated selling platforms
Average conversion
Over of at least
20mil 125%
RM1.4bil messages higher than
Created over
payments collected
over kiosks, digital and e-wallet channels
sent per
month
traditional SMS 3,700
affiliated links for sales agents
Improving awareness and importance of cybersecurity to Digizens and SMEs
Cloud-based security protection solution for Mandatory cybersecurity awareness training sessions
SME customers for employees
Partnered with Cisco 100% completion

to offer the industry’s first cloud-based cybersecurity • Scenario-based learning on Phishing, Information
solution for businesses to enhance their network security handling, Mobile Security and Everyday Security
• Simulations conducted to assess employees’

resilience knowledge, and general awareness on
cybersecurity
How We Create Value
Enhancing data protection and security to strengthen the integrity of our network
• Boosted customer experience with wider online presence and increased security confidence with enhanced security
infrastructure
• Strengthened governance on Digi’s internal processes to safeguard data privacy and protection within the organisation
Reinforced privacy foundations with Instilled privacy as part of our Responsible

Telenor Asia Privacy Programme Business culture
• Revised Privacy Vendor • Provided training to all new

Questionnaire to improve due employees on the importance of
diligence process privacy, information management,
and data protection
• Enhanced Data Protection Impact
Assessments (DPIA), with clearer • Conducted training on topics such
privacy risk assessment and as internal privacy processes, vendor
improved turn around rates management, and data breach
handling
• Produced bite-size materials to

raise awareness on privacy and
information management
Strengthened governance through Engaged regulators on best practices

our policies and manuals for data protection
• Updated Privacy Notice for • Participated in Jabatan Perlindungan

Customers and Employees, as well Data Peribadi (JPDP) Public
as introduced a Visitor Notice at all Consultation Paper on PDPA
Digi offices Reforms
• Revised governing documents for • Adhered to Personal Data Protection

Privacy, Information Management, (PDP) Commissioner’s Advisory on
and Authority Request, as well as handling of personal data for contact
introduced a Data Breach Handling tracing purposes
Manual
For more details on our sustainability performance, visit https://www.digi.com.my/sustainability/reporting.html

How We Create Value
SOCIAL &
RELATIONSHIP
What human capital means to Digi

Digi believes in creating a sustainable workforce, supported by an
agile human capital strategy and talent value proposition, to meet
the needs of the ever-changing workforce. Our employer brand
promise ‘Freedom to Inspire the Next’ is to give employees the
freedom to always explore, supported by a collaborative culture
and working environment. This belief guides us in embracing a
culture of challenging the norm, allowing employees to unlock
their full potential. We believe this is central to deliver on Digi’s
brand promise of connecting our customers to what matters
most. As customer behaviour and expectations change, so do the
competencies required to serve them.

 Shared beliefs, values and mindsets Mapping against our sustainability matters
 A culture of continuous learning

 Health and safety of Digizens and across the value
M3 R2 R5
chain
 Diverse and Inclusive workforce Our key initiatives linked to strategic pillars
 Addressing Employee Effectiveness Survey (EES)

Faster access to critical competencies
focus areas – Leadership, Processes and Way of Work,
and talent
Collaboration and Employee Net Promoter Score
(eNPS)
Promoting collaborative employee
challenges and opportunities experience
 Ever-growing customer expectations
 Adapting to organisational changes Building an attractive employer brand
 Talent attraction
 Competency gaps
 Adaptation to Covid-19 working conditions Creating an equal, engaged and
empowered workplace for all
How We Create Value
Faster access to critical competencies and talent
Building towards an “Expert Workforce” and stepping up efforts to ‘Win on Talent’
59.8 85% 100% 175 290

*1
(vs. target 40 hours) Super learners Completion Employees Leaders & Experts
Average online learning Completed >40 • Mandatory courses Embarked on expert Embarked on
hours completed per hours learning on Compliance, journeys, covering 13 Strategy Execution
employee Privacy and critical competencies Programme (SEP) 3.0
CyberSecurity and registered >75%
* Learning hours accounted from
digital platforms, strategic completion rate
leadership and expert courses, • What’s Your
and annual company-wide Next sessions to
learning days.
internalise Digi’s
Data for average online learning
strategies and
1
hours per employee has been

independently audited by PwC ambition
Promoting collaborative employee experience
Making collaboration Annual Employee Effectiveness Survey (EES)

easy for all Digizens
98%
Response rate
71%
Effectiveness Index
100% Adoption of
Findings
 The Effectiveness Index represents the achievement of both the engagement and
enablement scores and is the primary measure of EES
Office 365  At 71%, the Effectiveness Index increased by 6% from 2019 to surpass the 57% average
Effective collaboration score* for companies within the Southeast Asian region
tool for remote * Benchmarked by Korn Ferry
working conditions
Qualitative assessments
 Solid management of safety and wellbeing of our employees
 Business continuity plan (BCP) arrangements due to Covid-19
 Significant recognition in areas of leadership, strategy, tools and eNPS - achieved through
our structured organisation-wide EES action plans and consistent communication
throughout the year
 Increased efforts on eNPS to enhance knowledge of products and services and to
promote product advocacy amongst employees
How We Create Value
SOCIAL &
RELATIONSHIP
Promoting collaborative employee experience (Continued)
Developing organisation culture – ‘Innovation 360’ and ‘Customer Obsession’
Enhancing agile mindset among our employees through leadership engagements via organisational and divisional townhalls,
supported by continuous learning on-the-job and through learning platforms.
Digital Day Customer Obsessed Day
Full day virtual event for employees to learn the latest trends
>3000 customers engaged virtually
in the technological sphere, conducted through masterclass A virtual event to engage and appreciate our
sessions led by industry experts. customers while gathering feedback for continuous
improvements.
Building an attractive employer brand
CXO Apprentice Programme
Inducted the fifth

batch of CXO
apprentices to be
mentored directly by
Digi’s Management
Team.
How We Create Value
Creating an equal, engaged and empowered workplace for all
Truly diverse and inclusive organisational demographics

Building a diverse and inclusive workforce at all levels of the organisation to maximise the power of different experiences.
Balanced gender diversity Young demographic One of three Malaysian corporates

with majority in 30 to 39 years old bracket in global indices for exemplary gender
equality and inclusion standards
40.9%
50% 50% 2020
With 100%
disclosure score,
above global and
Women in leadership positions 0.3% country average
47% 8.3%
36.0% GLOBAL DIVERSITY
AND INCLUSION
INDEX 2020
14.5%
• Ranked 37 amongst
20-29 30-39 40-49 50-59 60+ 100 global players
• The first Malaysian
company in the Top 50
Highest standards for Occupational Health And Safety

• Drive health, wellbeing, and safety activities to integrate HSE as a core aspect of Digi’s culture
• Recorded Zero Lost Time Injury Frequency (LTIF)1 score for Year 2020
(Digi keeps track of the work-related injuries and accidents, and sickness absence days for its permanent and contract
employees, in-house contractors and third party vendors)
1 Data for LTIF score (limited to permanent and contract employees) has been independently audited by PwC
Recertification for ISO 45001:2018

(Occupational Health and Safety Management System)
Completed in October 2020
Monitoring employee wellbeing Employee wellness challenge

A Pulse survey was conducted during the Movement
Control Order (MCO) to better understand employees’
needs and wellbeing
99% 84% 90%

affirmed
that they felt well-
connected virtually
had daily calls
with their
managers to stay
had the
necessary tools
to work from
152
Digizens participated in the
with their teams on top of things home/off-site #DigiWellnessChallenge

How We Create Value
SOCIAL &
RELATIONSHIP
What natural capital means to Digi

The telecommunications sector continues to be a key enabler
of growth and innovation across multiple industries, especially
when it comes to providing climate friendly solutions. In
actively managing our own exposure to natural capital risks, we
are also often seen as part of a solution as we support a larger
community of businesses to manage their risks through our
digital services and connectivity solutions.

 Telenor’s Asia businesses joint energy optimisation Mapping against our sustainability matters
initiative aimed at displacing fossil-fuel-generated
electricity with alternative energy sources towards G2 G3 R4
achieving low carbon networks
 Strategic short-term and long-term decarbonisation
Our key initiatives linked to strategic pillars
initiatives geared towards building a future-ready
network architecture
Driving network modernisation for
 Enhancing data-integrity in non-financial reporting to
sustainable growth
provide consistency and quality
 Refined internal ESG risk management framework to
mitigate rising climate impact Cultivating a “green” workplace
challenges and opportunities

 Operating large-scale mobile networks and energy
intensive data centres
 Exponential rise of demand for internet data
consumption
 Covid-19 disruption and impact on operations such as
implementation of remote-work plans and challenges to
supply chains and delivery schedules
Driving network modernisation for sustainable growth
Adopt cleaner energy innovations and solutions Transitioning towards data driven
network planning and higher
• Pilot ZTE’s R&D expertise to adopt AI/ML-based system to manage our Radio spectrum efficiencies
Access Network (RAN) energy consumption including automated power
savings during low-peak usage
• Invest to expand fibre-based backhaul and last mile solutions in our network
and service offerings (fibre networks use less energy to power the signal,
resulting in less heat being generated, and therefore less cooling required) RAN Microwave to
modernisation fibre connectivity
• Software upgrade to the RAN network to unlock new capabilities and features
towards building open and virtualised RAN architectures
How We Create Value
Driving network modernisation for sustainable growth (Continued)
Energy optimisation and decarbonisation initiatives
21 699 Switched-off Replaced

55 Usage of Reviewing
21 51 lithium iron more remote

Base station Indoor sites Fuel powered battery to off-grid sites
controllers converted off-grid sites replace diesel for feasibility to
consolidated from air-cond Ageing air-cond units in converted to powered use PV solar
and shutdown to fan/filter Technology Operation grid power generators at and hybrid
free cooling Centres (TOCs)
off-grid sites solutions as
systems
power source
Performances
In 2020, our carbon emission has decreased by 5%, attributed to the on-going network modernisation and operational
efficiency (OE) initiatives. Employee mobility has also been reduced due to travel restrictions and remote working,
attributing to improvements in Scope 1 and Scope 3. We willl continue driving low carbon solutions to achieve our joint
Group’s Science-Based target of 50% reduction by 2030. In 2021, we will embark on a climate data integrity initiative
to improve on our carbon and energy management, and reporting standards for Scopes 1, 2 and 3. Our annual GHG
emissions inventory FY2020 is in accordance to the GHG Protocol Corporate Standard.
Digi Climate Metrics/Year 2020 2019 2018

Scope 1: Direct Energy Consumption from Fuel (GWh) 43.87 43.47 48.20
Scope 1: Carbon Emissions (Tonnes) 10,737 10,677 11,738
Scope 2: Indirect Energy Consumption from Grid and Green Electricity (GWh) 236.1 250.6 220.0
Scope 2: Carbon Emissions (Tonnes) 155,471 162,870 153,769
Scope 3: Indirect Energy from Value Chain (GWh) 3 8 9
Scope 3: Carbon Emissions (Tonnes) 745 1,653 1,728
Total Energy (GWh) 283.3 302.0 287.2
Total Carbon Emissions (Tonnes) 166,953 175,200 167,235
Our Carbon Intensity per Data Usage also improved by 31%. This means that though the average customer is using more
data, we have achieved a lower carbon footprint per unit of data consumed. Our carbon intensity is measured by tonnes of
CO2 (tCO2e) per terabyte of data.
Digi Intensity Metrics/Year 2020 2019 2018

Customer Base (mil) 10.44 11.28 11.66
Energy Usage per Customer (kWh) 27.1 26.7 24.6
Carbon Intensity per Customer 0.016 0.016 0.014
Energy Usage per data terabyte (MWh) 0.16 0.22 0.31
Carbon Intensity per Data Usage (tCO2e) 0.09 0.13 0.18
How We Create Value
SOCIAL &
RELATIONSHIP
Cultivating a “green” workplace
Adoption of Green practices

international across value
standards chain
Recertification for ISO 14001:2015 (Environmental • Enhancing environmental co-creation of digital products and
Management System) completed in October 2020 services, processes and solutions with partners, suppliers and
customers
• Innovate our way of work towards greater agility and flexibility via
Efficient
teleworking to reduce travel-related carbon emissions
energy
• Reducing consumption of material resources, managing waste
consumption
and environmental degradation
Rescheduling chiller, air handling unit (AHU) and • Reducing pollution of air, earth and water in material sourcing and
lighting utilisation in Digi headquarters and TOCs manufacturing, during construction and over the life cycle of our
based on employees capacity buildings
• Reducing damage to natural systems and bio-diversity
• High quality and healthy productive spaces, utilising elements
such as natural light and responsive heating/cooling measures
• Green procurement – Environmental concerns addressed as part
of sourcing criteria
Performances
General waste E-Waste*
• Additions of recycling and food waste bins E-waste directly produced from our operations is managed under
at office public areas. Food wastes are the Environment Quality (Scheduled Wastes) Regulation 2005 and
composted and processed to fertiliser our internal guidelines.
• Stopped single use plastic – Discontinuation * Decommissioned network equipment constitutes the largest amount of e-waste generated by
tonnes. We reuse equipment, and send those that are obsolete to recycle and disposed off safely
of water bottles and single-use plastics at Digi by a licensed vendor.
eateries
Obsolete electrical and electronic waste managed in 2020
Waste managed in 2020
47 Tonnes 11 Tonnes
251 Tonnes Collected Recycled
General waste collected
170 kg Water consumption

Waste generated
per employee Water consumption in 2020
2 Tonnes 78,856 m 3
54 m 3
Waste recycled Total water consumed Water consumed

per employee
Note: General waste collected, and water consumption has reduced by 11% and 16% respectively due to low employee capacities in the office buildings

How We Create Value
SOCIAL &
RELATIONSHIP
What SOCIAL & RELATIONSHIP capital means to

Digi
Brand trust is more important than ever, as customer
expectations and competition is increasing daily, more so in this
‘digital-everywhere-world’. Our commitment to this capital is
reflected in the way we run our business to impact societies for
the greater good. We do this by integrating material issues into
business strategies and employ an agile business operations
in accordance to sustainable principles. Partnerships are key
in fostering this ambition and shaping the social context of the
environment we operate in.

 Covid-19 relief efforts (refer to pages 8 to 11) Mapping against our sustainability matters
 A culture of Integrity
 Privacy in the digital age G2 R1 R3 R5 R7
 People-First (across our value chain) approach
 Uphold Health and Safety and capacity building in the Our key initiatives linked to strategic pillars
Supply Chain
 Respecting Human Rights Sustaining brand trust through our
 Responsible to the communities and supporting Yellow Heart programmes
SDG 10 : Reduced Inequalities
Emphasising strong governance and
challenges and opportunities robust internal controls
 Sustain high brand trust
 Covid-19 disruption and impact especially for on-ground
Managing our supply chain responsibly
campaigns and activation
 Unpredictable business environment
 Inter-connected Global Economy
 Accelerating technological innovation
 Regulatory pressures
How We Create Value
SOCIAL &
RELATIONSHIP
Sustaining brand trust through our Yellow Heart programmes
Digital Inclusion
Future Skills For All (FS4A)

A multi-stakeholder driven initiative to strengthen inclusivity and equity in education by establishing a digital learning
environment, focused on making future skills learning accessible for the underserved. The project is a three year
partnership (2019 to 2021) with UNICEF Malaysia and the Malaysia Digital Economy Corporation (MDEC) in support of the
Ministry of Education (MOE).
19,816 7,000 > 2,700

1
Users enrolled Students assisted with Teachers and all Digi internet
1
Data for users enrolled in the future skills programme micro:bit quick start learning kits centre managers onboarded
has been independently audited by PwC
Segmented Offerings Access to digital learning

Curated for senior citizens, persons with disabilities Digi accredited as MOE’s digital content partner. FS4A and
(PWDs) and B40 communities digital resilience modules has been integrated into MOE’s digital
education learning platform (DELIMa)
Best value offers for
> 45,700 Digi Prepaid Potential to benefit

senior citizens Abadi > 5 million > 500,000
> 3,900 First prepaid plan with
life insurance coverage
students teachers
PWDs
Digital Resilience
Safe Internet & CyberSAFE in Schools Child Rights 2020 Webinar
> 115,000 130

People engaged on online safety Participants engaged
• Partnering MOE, Google and Cybersecurity Malaysia • Partnered with Child Rights Innovation & Betterment
to engage schools nationwide on internet risks and (CRIB Foundation) to host a webinar session to raise
digital resilience awareness on industry best practices on issues relating
to child rights
Partnership with UNICEF Scams Campaign
4 18 > 600,000
Virtual training sessions Virtual training sessions Digi customers reached
KitaConnect campaign on various Partnering #StandTogether Educating customers on common
themes on internet safety with various nationwide campaign, engaging and pervasive cyber-scams and
civils society organisations (CSO), 2,403 students and 716 teachers digital fraud such as Wangiri and
teachers and students SMS Scams
How We Create Value
Sustaining brand trust through our Yellow Heart programmes (Continued)
Inclusive Business
Accessibility improvements
to our digital touchpoints
• Allowing people with disabilities to better perceive, understand,
navigate, and interact on our platforms
• Respecting human rights to digital access by lowering the entry
barriers for visually impaired communities
• Making our business and products equally accessible to the
underserved populations
Sustainability Thought Leadership
CEO Action Network Responsible Business Summit

Digi is one of the leading members of the CEO Action An avenue for employees to internalise on our responsible
Network (CAN), established as a closed-door peer- business agenda covering topics such as governance, risk
to-peer network, governed and driven by private management, data protection and cybersecurity, social and
sector corporate leaders. The Network aspire to environmental sustainability.
influence policy-making and drive actions to accelerate
sustainable development in Malaysia and beyond.
> 1,400
employees participated
mySDGAction2030
Participated in a CEO panel session to discuss on
Responsible Business and Human Rights in advancing
towards the SDGs agenda. The event was organised by
UN Global Compact Network Malaysia.
> 7,960
learning hours clocked in by employees
Malaysian Investor Relations Association (MIRA)
Sustainability Accelerator
Training on Responsible Business principles and
practices with more than 50 corporate participants.
Other engagements :
• HSBC Amanah and Digi Sustainability workshop for young talents
• MDEC MyDigitalMaker virtual fair - Safe Internet and Privacy in the Digital Age
• HSBC Regional Telecoms ESG virtual event
• Telecoms World Asia - Securing Smart Data and Digital Footprints Post Covid-19
How We Create Value
SOCIAL &
RELATIONSHIP
Emphasising strong governance and robust internal controls
Strengthening Compliance Way of Work and Mindset

Promote strategic collaboration across all governance functions within the second line of defence in Digi with a view to
emphasizing strong governance and robust internal controls across the organisation.
• Conducting Compliance risk assessment and monitoring activities for the first line of defence
• Ongoing review and implementation of Digi’s policies and manuals
• Implementing Guidelines on Adequate Procedures issued by the Prime Minister’s Department in line with the
introduction of Section 17A of the MACC Act 2009
• Compliance case management and analytics
• Compliance capacity building for all employees through awareness and training programmes which included Speak
Up Campaign, Anti-Corruption Day, Responsible Business Summit, and targeted audience trainings
Reinforcing Business Partners Governance

Issuance of e-mail notification on Section 17A of the MACC Act 2009 which entails strict compliance of Digi’s Anti-
Corruption Policy to all business partners of Digi including awareness on Anti-Corruption Policy and Whistleblowing Policy
and conducting integrity due diligence checks on high-risk business partners.
Digi’s Anti-Corruption Day is held annually on 9 December in recognition of International Anti-Corruption Day.
Company-wide trainings and awareness were carried out to:
• Educate employees on the various forms of corruption

• Inform employees on available platforms to report incidents of corruption
• Reinforce messaging on our zero tolerance policy
For more details on Governance and Compliance, please refer to Section 5, pages 72 to 104 of this report
How We Create Value
Managing our supply chain responsibly
Enforcement of mandatory requirements and integrity due diligence (IDD)
Our commitment to raise standards of our supply chain Strict compliance to Health and Safety
as per established sanction matrix
511 48 463
Inspections Announced Unannounced
130 1,919 2,426 conducted
New suppliers Suppliers signed Total training

signed
Agreement
ABC to date hours for our
suppliers
5 194 3
Major findings Minor findings Vendors were
on Business terminated
Conduct (ABC)1
1
Data for new suppliers signing the ABC has been independently audited by PwC
Major findings involves issues concerning Health and Safety
Minor findings involves issues concerning -

2% 3%
3%
34% 9% Health and Safety

Prohibited Business Practices
10% Human Rights
Labour Rights and Working Conditions
Environment
ABC/Supply Chain Principles (SCP) requirements
Privacy, Freedom of Expression & Data Protection
17%
Relationship with applicable law
22%
Risk assessment monitoring
77 51 •
•
Monthly meeting with Tier-1 safety officers
Supplier Assessment Questionnaire (SAQ)
SAQ Findings from • Within 1 week, improvements and corrective actions to unannounced
Responses the SAQ were inspection findings were resolved
resolved

Progressing
Malaysia towards
a digital economy
nation
We are steadfast in reinforcing the backbone of Malaysia’s economy with the right
tools and technology to transform digitally. As a digital and connectivity solutions
provider, we are helping to digitalise businesses large and small, empowering them
to be future-ready and competitive in a growing digital economy. Be it through
essential digital business solutions, or more advanced technology like Artificial
Intelligence (AI), Internet of Things (IoT) or 5G network services, we are prepared
to journey with our customers to reach their fullest potential while helping Malaysia
achieve its aspiration of becoming a digitally-driven, high-income nation.
Board of Directors’ Profiles
01 02
04 05 06
01. Haakon Bruaset Kjoel 03. Vimala V.R. Menon 05. Lars Erik TELLMANN 07. Randi Wiese Heirung
Non-Independent Independent Non-Independent Non-Independent
Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director
B R N B A B B A
02. Tan Sri Saw Choo Boon 04. Yasmin Binti Aladad Khan 06. Wenche Marie Agerup
Senior Independent Independent Non-Independent
Non-Executive Director Non-Executive Director Non-Executive Director
B N A B N A R B R
03 Haakon Bruaset Kjoel Meetings attended
Non-Independent Non-Executive Director 8/8

Norwegian • Male • 49
Date of Length of Service

appointment (as at 31 March 2021)
11 July 2017 3 years 8 months
Present directorships
Listed entities Other public companies/ non-

listed
• Grameenphone Ltd, Nil
Bangladesh
• Total Access Communication
Public Company Limited,
Thailand, dtac
Area of expertise
07 Telecommunications, Strategy Development, Leadership, Legal &
Regulatory, Environmental Sustainability
Relevant experience
• 26 years of experience in Telenor Group across Europe and Asia
in the area of operational development, merger and acquisition,
public and regulatory affairs (1995-present)
• Board of Directors of several Telenor Group Companies in
Singapore, Bangladesh, Thailand, Myanmar and Malaysia (2011
-present)
• Non-executive Director of the global architect and design company
Snøhetta, headquartered in Oslo, Norway (2020-present)
• Chief Strategy and Transformation Officer at Total Access
Communication Public Company Limited, Thailand, dtac (2019-
2020)
• Senior Vice President, Partner and External Relations Asia for
Telenor Group (2018-2019)
• Acting Executive Vice President and Chief Corporate Affairs Officer
for Telenor Group (July-October 2018)
• Senior Vice President and Head of Group Public and Regulatory
Affairs for Telenor Group (2016-2018)
Academic/ professional qualification/ membership

• Master of Business Administration degree (Executive) from BI
Norwegian Business School, Oslo
Key to Committee membership:
• Studied public relations at BI Norwegian Business School, Oslo
B Board N Nomination Committee
A Audit and Risk Committee R Remunation Committee
Committee Chair
Tan Sri Saw Choo Boon Meetings attended Vimala V.R. Menon Meetings attended
Senior Independent Non-Executive Director 8/8 Independent Non-Executive Director 8/8

Malaysian • Male • 74 Malaysian • Female • 66
Date of Length of Service Date of Length of Service

appointment (as at 31 March 2021) appointment (as at 31 March 2021)
9 December 2010 10 years 3 months 1 July 2015 5 years 8 months
Present directorships Present directorships
Listed entities Other public companies/ non- Listed entities Other public companies/ non-
listed listed
• Wah Seong Corporation Nil • Jardine Cycle & Carriage Nil
Berhad Limited
Area of expertise Area of expertise

Leadership, Strategy Development, Environmental Sustainability, Leadership, Accounting & Finance, Legal & Regulatory, Strategy
Human Resource, Commercial Marketing Development
Relevant experience Relevant experience

• Independent Director of Wah Seong Corporate Berhad • Independent Director and the Board Audit Committee Chairman of
(2018-present) Jardine Cycle & Carriage Limited (2017-present)
• Chairman of MRCB Quill Management Sdn Bhd (2016-present) • Independent Director and Chairman of the Board Audit Committee
• Sits on the Board of the Social-Economic Research Centre Board of Petronas Dagangan Berhad (2011-2020)
of the Associated Chinese Chambers of Commerce and Industry • Senior Independent Director and Chairman of the Board of Audit
Malaysia (2011-present) Committee of Petronas Chemical Group Berhad (2010-2019)
• Board of Directors for some private companies (2010-present) • Board member of Prince Court Medical Centre Sdn Bhd (2011-
• Independent Director of RHB Bank Berhad (2016-2020) 2018)
• Held various positions in Shell spanning 40 years, from a Refinery • Nominee Director of Khazanah Nasional Berhad on the Board of
Technologist to Chairman (1970-2010) Destination Resorts and Hotels Sdn Bhd (2011-2015)
• Board member of Trustees of Pemandu Corporation (2014-2017)
• Director of Finance and Corporate Affairs at Proton Holdings
Berhad (2008-2009)
• Bachelor of Science Hons (Chemistry) from University of Malaya • Board member of PT Astra International Tbk (2000-2003)
• Council member of the Federation of Malaysian Manufacturers • Held various positions in EON Berhad spanning of 23 years from a
Council Manager to a Board member (1984-2007)

• Fellow of the Institute of Chartered Accountants in England and
Wales
• Member of the Malaysian Institute of Accountants (MIA)
Yasmin binti Aladad Khan Meetings attended Lars Erik Tellmann Meetings attended
Independent Non-Executive Director 8/8 Non-Independent Non-Executive Director 7/8

Malaysian • Female • 62 Norwegian • Male • 49

23 July 2013 7 years 8 months 12 July 2019 1 year 8 months
listed listed
Nil Nil • Grameenphone Ltd, Nil
Bangladesh
Area of expertise
Leadership, Commercial Marketing, Environmental Sustainability, Area of expertise
Strategy Development, Human Resource Leadership, Telecommunications, Strategy Development, Accounting
& Finance, General Management, Sustainability, Human Resource,
Relevant experience Commercial Marketing
• Director of DHL’s subsidiaries in Asia Pacific (2003-present)
• Executive Vice President, Commercial, DHL Express, Asia Pacific Relevant experience
(excluding China) (2019-present) • Board of Directors in Carousell in Singapore (2020-present)
• Executive Vice President, Area Director, Emerging Markets and
• Head of Telenor Financial Services in Singapore, Telenor Asia Ltd
Commercial, DHL Express, Asia Pacific (excluding China) (2015-
(2019-present)
2019)
• Board of Directors of several Telenor Group Telcom and FinTech
• Senior Vice President, South East Asia and South Asia for DHL
Companies in Bangladesh, Pakistan, Myanmar and Malaysia
Express (2004-2015)
(2011-present)
• Country Manager for DHL Malaysia (2001-2003)
• Country Manager in DHL Singapore (2003-2005) • Senior Vice President and Head of Business Development and
• Chief Operating Officer of GE International Inc, Thailand (1999- Portfolio Management, Telenor Asia Ltd (2018-2019)
2003) • Chief Executive Officer of Telenor Myanmar Ltd (2016-2018)
• Director, Business Development of GE International Inc, Thailand • Chief Financial Officer of Telenor Myanmar Ltd (2013-2016)
and Malaysia (1997-1998)
• Vice President, Corporate and Investment Banking at JP Morgan Academic/ professional qualification/ membership
Chase (1986-1996) • Master in Business Administration (MBA) from Heriot-Watt
• Credit Analyst, JP Morgan Chase (1983-1985) University, Edinburgh
• Master of Science in Business (M.Sc./ Siviløkonom) degree from
NORD University in Norway
• Master of Business Administration from Aston University
• Member of the Advisory Board of Singapore Management
University
Wenche Marie Agerup Meetings attended Randi Wiese Heirung Meetings attended
Non-Independent Non-Executive Director 3/3 Non-Independent Non-Executive Director 3/3

Norwegian • Female • 56 Danish • Female • 38

15 October 2020 5 months 15 October 2020 5 months
listed listed
• TGS ASA Nil Nil Nil
Area of expertise Area of expertise
Legal & Regulatory, Strategy Development, Environmental Telecommunications, Leadership, Strategy Development, Accounting
Sustainability, Human Resource, Leadership & Finance, Legal & Regulatory
Relevant experience Relevant experience
• Senior Vice President and Head of Board Governance and Support • Director of Digi Telecommunications Sdn Bhd (2020-present)
for Telenor Asia (2020-present) • Senior Business Manager in Telenor Group responsible for
• Director of Digi Telecommunications Sdn Bhd (2020-present) financial and operational follow up of Thailand and Malaysia
• Board members for several international companies listed in entities (2019-present)
Norway in the oil and energy industry (Equinor ASA 2015-2020, • Project Manager, Telenor Group spectrum acquisition (2015-2019)
TGS ASA 2015-present) • Project Manager, Norwegian telecom regulator, spectrum auctions
• Executive Vice President, Corporate Affairs and General Counsel in (2013-2015)
Telenor (2015-2018) • Head of Section, Danish telecom regulator (2010-2013)
• Various senior roles as plant manager, Head of Corporate M&A,
Project Director and Executive Vice President and General Counsel Academic/ professional qualification/ membership
in Hydro ASA, Norwegian conglomerate (1998-2015) • Master of Economics from University of Copenhagen in addition
• Legal Counsel in Hafslund Nycomed ASA (1993-1997) to specialisation within Telecommunication Economics and
Auction Theory
Academic/ professional qualification/ membership • Bachelor of Economics, University of Copenhagen
• Master of Business Administration from Babson College, USA
• Master’s degree in Law from University of Oslo
Save as disclosed, none of the Directors have any:-

1. Family relationship with any Director and/or major
shareholders of the Company;
2. Conflict of interest with the Company; and
3. Conviction for offences within the past 5 years other than
traffic offences
Management Profiles
01
Albern Murty
Malaysian | Male | 48
Chief Executive Officer

Year of appointment : 2015
Career history
• Held multiple roles in Digi, including
Product Management and Product
Development, Head of Strategy and New
Business, Chief Marketing Officer and
Chief Operating Officer
• Held business and commercial
management roles in Lucent
Technologies across the Asian region
Skills and experience

Bachelor of Science in Marketing and
Advertising Management, Portland State
University, Oregon, USA
02
Inger Gløersen Folkeson
Norwegian | Female | 39
Chief Financial Officer

Year of appointment : 2019
Career history
• Held multiple roles in Telenor Group’s
adjacent and non-telco assets globally,
namely Chief Financial Officer in Norkring
AS (part of Telenor Broadcast Holding),
Telenor Digital Businesses, and Telenor
Group Holdings
Skills and experience

Master of Science, Institute of Industrial
Economics and Technology Management,
Norwegian University of Science and
Technology, Trondheim, Norway
Full profiles of the Management Team are available at our website at www.digi.com.my/about-us/management-team
Management Profiles
03 05 07
Praveen Rajan Cheng Weng Hong Elisabeth Melander Stene
Malaysian | Male | 42 Malaysian | Male | 42 Norwegian | Female | 55
Chief Marketing Officer Chief Sales Officer Chief Human Resource Officer
Year of appointment : 2020 Year of appointment : 2020 Year of appointment : 2018
Career history Career history Career history

• Held multiple positions in Digi, including • Held multiple roles in Digi, including Head • Held the position of Chief Human
Head of Advanced Data Services, Head of Consumer Sales, Head of Retail and Resource Officer at Multiconsult, a
of Products – Internet & Services, Head Controlled Channels, and in Product Norway based engineering company
of Postpaid & Digital Services and Chief Development • Held various senior roles both at Telenor
Digital Officer • Held leadership roles at Trisilco-folec Group and Business Unit level across
• Co-founder and Chief Technology Officer, various commercial and HR functions,
LifeLogger, a social networking startup Skills and experience including serving as Chief HR Officer at
Uninor, a Telenor subsidiary in India
Bachelor of Engineering in Civil and
Skills and experience Computing, Monash University, Australia Skills and experience
Bachelor of Engineering (BEng) in
Bachelor of Science, University of Salford,
Electronics and Computing, Nottingham
England
Trent University, Nottingham, England
Master of Science, London School of
Economics and Political Science, England
04 06 08
Eugene Teh Kesavan Sivabalan Joachim Rajaram
Malaysian | Male | 46 Malaysian | Male | 52 Malaysian | Male | 44
Chief Business Officer Chief Technology Officer Chief Corporate Affairs Officer
Year of appointment : 2018 Year of appointment : 2017 Year of appointment : 2018
Career history Career history Career history

• Previously Digi’s Chief Corporate Affairs • Held multiple roles in Digi, including Chief • Held multiple roles in Digi and
Officer Network Officer and Head of Technology Telenor, including Head of Corporate
• Held the position of Director, Operations Communications in Telenor Myanmar
Performance Management and Delivery • Held the position of General Manager, and Head of Communications and
Unit (PEMANDU) at the Prime Minister’s Access Network at Vodafone Australia Sustainability at Digi
Department • Held various roles within the
• Held senior leadership roles in Arthur telecommunications industry across Asian Skills and experience
and European markets including Malaysia,
D. Little, and McKinsey & Co and a
Germany, Australia, Cambodia, Vietnam Bachelor of Laws (LLB), University of
Senior investment officer at Singapore’s
and Bangladesh, working with network London, England
Economic Development Board
vendors like Lucent and Ericsson, and
operators like Maxis and Vodafone Executive Education Programmes, London
Skills and experience Business School, England
Master of Science in Electrical Engineering Skills and experience
and Computer Science, University of Bachelor of Business, Deakin University,
California Berkeley, USA Australia
Master of Science in Enterprise Project

Management, Stevens Institute of
Technology, New York, USA
Corporate Governance Overview Statement
Overview of Our Approach to Corporate Governance
Board of Directors (the Board) sets and steers the direction of Digi Group (Digi and its subsidiaries) and brings independent, informed
and effective judgement on material decisions reserved for the Board. The Board also ensures that strategy, risk, performance and
sustainable development considerations are effectively integrated and appropriately balanced. Recognising the importance of good
corporate governance, the Board is committed to uphold high standards of business integrity and ethics and has worked with the
management to maintain these standards throughout the course of the year. For a fair view of the Board’s priorities and the Company’s
corporate governance practices in 2020, this statement is to be read together with the Corporate Governance Report (CG Report). The
CG Report elaborates on the Company’s application of each Principle of the Malaysian Code of Corporate Governance 2017 (MCCG
2017) for the financial year under review.
Summary of Corporate Governance Practices
Digi has applied all applicable Practices set out in the MCCG for the financial year ended 31 December 2020 save for:
At least half of the board comprises independent directors. For Large Companies, the board comprises a
Practice 4.1
majority independent directors.
The board discloses on a named basis the top five senior management’s remuneration component including
Practice 7.2
salary, bonus, benefits in-kind and other emoluments in bands of RM50,000.
In line with the latitude provided in the application mechanism of the MCCG and the widely held notion that there is no “one-size fits
all” modality in applying corporate governance practices, Digi has provided clear and forthcoming explanations for departures from the
Practices in the MCCG. The explanations provided on the departures are supplemented with an articulation on the alternative measures
that are in place to achieve the Intended Outcome of the departed Practices. Further details on Digi’s application of each individual
Practice of the MCCG are available on the CG Report which is available on Digi’s website as well as via the announcement on the portal
of Bursa Malaysia Securities Berhad (Bursa Securities).
Covid-19 response plan
In light of the Board’s oversight responsibilities and as a matter of good corporate governance, the Board has worked closely with
the Management to develop the Covid-19 response plan including the development of Business Continuity Plan (BCP), continuous
evaluation on the potential disruptions to operations and business relationships, sustaining an open dialogue with Management on both
the business risks and workplace health and safety issues, and reassessing long-term corporate strategy.
All Board meetings and communications are held through video conferencing during the Movement Control Order.
Statement by the Board on Corporate Governance
The Board is pleased to report to its shareholders that to the best of its knowledge, Digi has complied with and shall remain committed
to attaining the highest possible standards of corporate governance through the continuous adoption of the principles and best practices
of the MCCG 2017, and all other applicable laws. The status of the Company’s application is reported in our CG report.
Embracing Values and Principles of Good Governance
Governance Structure
STAKEHOLDERS
BOARD OF DIRECTORS
AUDIT AND RISK NOMINATION REMUNERATION

COMMITTEE COMMITTEE COMMITTEE
Delegation of Authority
CHIEF EXECUTIVE OFFICER
Responsible Business
DIGI MANAGEMENT TEAM (DMT)
Working Committee
The Board is dedicated to enhancing Digi’s corporate governance The Board believes that upholding high standards of corporate
practices which has shaped the way Digi operates. The Board ethics is key to long-term value creation and will contribute directly
believes in a structured governance to identify and manage Digi’s to improved business performance. The Board has zero tolerance
business systematically to address risks and maximise the positive for corruption and Digi Group’s corporate values and ethical
impact to the business, whilst conforming to global sustainability standards represent an important foundation for implementing our
standards. Digi’s approach is one of continuous improvement. governance framework.
Digi’s culture is defined through the Digi Way of Work, the Code Digi’s efforts have positioned the Company amongst the Top
of Conduct (the Code), Whistle Blowing Policy and Manual, ASEAN Public Listed Companies in terms of corporate governance
Anti-Corruption Policy, No Gift Policy, and Health, Safety and effectiveness, and quality of disclosure has instilled investors’
Environmental (HSE) Policy. These policies are accessible in confidence in Digi.
Digi’s website at https://www.digi.com.my/about-us/governance.
Various activities are conducted to increase awareness amongst These continuous efforts are reflected through Digi’s achievement
employees, essential to instill a compliance culture within Digi’s as the winner of the Excellence award for Long Term Value Creation
Group. Digi is committed to the highest standards of transparency for ASEAN and domestic level, a significant recognition by the
and to be accountable for the impact on the operations, products MSWG-ASEAN Corporate Governance Scorecards Award 2019.
and services, and environmental footprint of the value chain Digi
operates in.
How Sustainability is embedded in the Governance Structure Digi Sustainability Governance Framework
Sustainability matters in Digi are addressed as part of Digi’s overall Digi Board of Directors
Responsible Business (RB) strategic pillar. The RB covers material • Oversee Digi’s Responsible
issues relating to Environmental, Social and Governance (ESG); Business Focus and
Performance
Sustainability; Compliance and Labour Law; Data Protection;
Cybersecurity; Supply Chain and Health and Safety; Diversity
and Inclusion. These are governed across different leadership Quarterly Reporting
levels within the organisation – the Board, Management and key

departments and support functions. Digi’s sustainability framework Digi Management Team Responsible Business
defines the governance structure and the responsibilities of each • Responsible for sustainable Forum (RBF)
business policies and RBF is a standing quarterly
parties within. directions agenda to the Digi Board
• Oversee responsible business of Directors. Non-Financial
The key departments and functions involving Sustainability, related risks and progress of Reporting (NFR) on people,
non-financial KPIs social, and environmental
Compliance and Labour Law, Supply Chain Sustainability and • Provides quarterly updates to data is collected on a
Health, Safety and Environment (HSE), Privacy, Security, Human the Board via RBF quarterly and annual basis
Resource and Enterprise Risk Management oversee the daily by the NFR Coordinator
and signed off by the Chief
operations of RB to meet the non-financial Key Performance
Financial Officer
Indicators (KPIs) established jointly with Telenor Group. These Quarterly Reporting
material issues and KPIs are reported quarterly to the Responsible
Business Forum (RBF). Chaired by the Chief Executive Officer
Responsible Business
(CEO), the forum includes the Chief Human Resource Officer, Working Committee
Chief Technology Officer, Chief Corporate Affairs Officer and other • Comprises Heads of
Departments and senior
senior leadership members. RB agenda is also discussed at the Telenor Group
leadership
quarterly Board meetings. Sustainability
Quarterly Reporting
• Guided by sustainability
guidelines, international • Alignment to
best practices and KPIs and global
Key functions of the RBF are to: partnerships
recommendations, Digi’s Code
of Conduct, and policies and • Quarterly reporting
• Formulate RB strategies, policies and goals manuals relevant to the scope of responsible
• Monitor and facilitate adherence to the related RB policies of the committee members business KPIs
and manuals • Supports the Management • Annual non-
and Board in addressing financial reporting
• Support departments to meet RB goals responsibilities related to the
• Conduct RB awareness and engagement activities RB agenda and reporting of
• ESG and Non-Financial Reporting (NFR) performances best practices
On-going Reporting
Sustainability, Compliance,
Human Resource, Supply
Chain Sustainability and
Health & Safety, Privacy and
Security departments
• Day-to-day management
of responsible business
principles, risks and issues
• Ensure compliance of relevant
responsible business-related
policies and principles
PRINCIPLE A - BOARD Leadership and Effectiveness
Digi’s Board has the appropriate balance of knowledge, skills, experience, diversity and independence to objectively and effectively
discharge their governance role and responsibilities.
The diversity in its membership creates value by promoting better decision-making and effective governance and the Board has escalated
its efforts to establish a diverse Board with a variety of skills, experience, age, cultural background and gender. Similarly, the Board is
committed to developing a corporate culture that embraces all aspects of diversity and inclusion practices in the Group. The Board of
Digi is guided by its Board Diversity Policy and accessible in Digi’s website at https://digi.listedcompany.com/corporate_governance.html
Board Balance and Composition Female Representative Ethnic Diversity
3
15%
Independent 43%
Non-Executive Directors
14%
4 Non-Independent
57% 57% 14%
Female Male Malay Chinese

Indian Others
Age Diversity Length of Tenure Board Skill Matrix
14%
15%
Human Resources
14% 2.0 Environmental Sustainability
Finance/Accounting
Strategy Development
1.0 Commercial/Marketing
14%
29% Legal and Regulatory
Telecommunication
14%
0 Leadership
35 - 40 years 45 - 50 years <1Y 1-2Y 3-4Y 5-6Y 7-8Y >9Y
55 - 60 years 61 - 65 years 0 20 40 60 80 100
66 - 70 years 71 - 75 years
Board Roles and Responsibilities

Matters reserved for the Board
The roles of the Chair of the Board and CEO are separated and
• Review, approve and adopt Digi Group’s strategic plans and
held by different individuals. Whilst the Chair of the Board provides
annual targets
leadership of the Board, the CEO heads the Management Team for
• Overseeing and evaluating the conduct and performance of
the day-to-day management of the business. The CEO has been
overall business
delegated certain powers to execute transactions that are guided
• Declaration of dividends, approval of financial statements,
by the rules and procedures for the CEO and in accordance with
annual and quarterly reports of the Company
the authority limits as defined and formalised.
• Strategic investment, mergers and acquisition, divestment
and any corporate exercises
The following Board Committees have been established to assist
• Material acquisitions and disposition of assets not in the
the Board in its oversight function with reference to specific
ordinary course of business
responsibility areas:
• Reviewing the adequacy and integrity of the internal control
(i) Audit and Risk Committee (ARC)
system
(ii) Nomination Committee (NC)
• Changes in all policies, procedures and delegated authority
(iii) Remuneration Committee (RC)
limits
• Identifying and managing principal risks affecting the
It should however be noted that at all times, the Board has
Company
collective oversight over the Board Committees. These Board
Committees have been constituted with clear Terms of Reference
(TOR).
Key features of the Board
Overview of the roles of the Board
• Separation of roles between the Chair of the Board and CEO
Chair of the Board • The Chair of the NC and ARC are Independent Non-Executive
• Leads and manages the Board’s effectiveness with a keen Directors
focus on strategy, governance and compliance • Meets Board Diversity requirements, in particular gender
• Leads Board meetings, sets the agenda and promotes a diversity with four (4) women serving as members of the
culture of open debate between the Directors Board (57% female representation)
• Regularly engages with the CEO and the Management Team • Management do not sit on the Board
to stay informed on operational matters • The Chair of the ARC is not the Chair of the Board
• Ensures effective communication with shareholders
Board Access to Management, Company Secretary,
• Contribute to developing Digi’s strategies
Information and External Experts
• Scrutinise and constructively challenge the performance of
Management in the execution of Digi’s strategies
The Board has direct access to the Management Team to arrive
at informed decisions with unrestricted and immediate access to
Senior Independent Non-Executive Director (Sr INED)
information relating to Digi’s business affairs.
• Provides a sounding board to the Chair and appraises his
performance
The Board also has full access to the qualified Company
• Acts as intermediary for other Directors, if needed
Secretaries, who are equipped with the skills and expertise to
• Responds to shareholders’ concerns as and when other
provide comprehensive support, appropriate governance and
channels are exhausted
advice, to ensure adherence to corporate governance issues
and compliance with relevant policies and procedures, and laws
and regulatory requirements, in addition to corporate secretarial
matters.
Meeting materials are provided to the Board and Board Committees via a secured electronic Board portal at least seven (7) days prior
to the meetings to accord the Directors’ sufficient time to assess and review the proposals or information. Materials are disseminated
digitally and instantly.
Other than the aforesaid internal resources, the Board and Board Committees have at their disposal access to external information and
expert advice by engaging independent external experts at the expense of the Company, if they deem it necessary in facilitating the
performance of their duties.
Detailed description of these roles can be found on the Board Charter inclusive of the TOR of the Board Committees online at
https://digi.listedcompany.com/corporate_governance.html
Board Meetings
The Board held eight (8) meetings during the year. Members of the Management Team were invited, when appropriate to attend Board
meetings. The CEO and Chief Financial Officer attended all Board meetings.
Board Meetings
Directors
Attendance %
Haakon Bruaset Kjoel (Chair of the Board) 8/8 100.0
Tan Sri Saw Choo Boon 8/8 100.0
Yasmin Binti Aladad Khan 8/8 100.0
Vimala V.R. Menon 8/8 100.0
Lars Erik Tellmann 7/8 87.5
Wenche Marie Agerup 1
3/3 100.0
Randi Wiese Heirung 1
3/3 100.0
Anne Karin Kvam 2
4/5 80.0
Torstein Pedersen 2
5/5 100.0
Notes:
1 Appointed as Director on 15 October 2020
2 Resigned as Director on 15 October 2020
25.1 hrs 98.2% 35.6 hrs

Total hours of the Board meetings Overall % of the Board Total hours of the Board and
meetings attended by Directors Board Committee meetings
The Board is satisfied with the level of time commitment given by the Directors towards fulfilling their roles and responsibilities.
Board Activities
During the financial year 2020, the Board focused on a number of specific areas in line with Digi’s strategic goals and principal risks as
outlined below:
Strategy Financial Performance
• Reviewed and approved Digi’s Group Strategy plan, ambition • Approved the Quarterly Digi’s Group performance
and targets • Approved the Quarterly Financial Results
• Oversaw the implementation of Digi’s Group strategic and • Approved the Quarterly Interim Dividend and solvency position
business plan through quarterly updates with the CEO • Approved the Audited Financial Statements for Financial Year
• Reviewed and discussed on Group Corporate structure Ended 31 December 2019
• Reviewed and approved Digi’s Group ambitions and targets
• Reviewed and approved Digi’s Group Capital expenditure
Risk and Internal Controls Governance
• Digi’s risk assessment encompassing financial and non- • Approved the 2019 Integrated Annual Report Statements
financial aspects • Approved the CG Report to Bursa Securities
• Implementation of appropriate internal controls and mitigation • Recommended the draft Circular to shareholders in relation to
measures the Proposed Renewal Shareholders’ Mandate for Recurrent
• Received the Quarterly Enterprise Risk and Opportunities Related Party Transactions of a Revenue or Trading nature for
status update shareholders’ approval
• Risk oversight on Management’s implementation of risk • Approved Board and Board Committee restructuring
management policies and procedures • Approved the remuneration package of the CEO and renewal of
• Approved the Internal Audit Plan 2020 CEO’s contract
• Received the Audit Status Report • Established and identified the Succession Plans for
Management Team
• Analysed the Performance Evaluation for Board and Board
Committee members
• Approved Digi’s Code and implementation of Governance
Work Programme 2020 changes to Digi Policies
• Received Digi’s Anti-Corruption and compliance updates
• Approved Digi’s Board Calendar and Meeting plans 2021
• Reviewed and approved Digi’s CEO Short-Term Incentive 2019
payout and Scorecard
• Reviewed and approved the Board Committees’ TOR
• Recommended the payment of Directors’ fees and benefits
payable to Independent Non-Executive Director for
shareholders’ approval
• Approved to convene the 23rd Virtual Annual General Meeting
(AGM)
• Recommended the Directors standing for re-election at the
AGM
• Reviewed the tenure of Directors
• Recommended the retention of Sr INED for shareholders’
approval
Board Appointment Process
Digi practices a transparent and rigorous process on the appointment of new Directors. The Board composition is consistently reviewed
to identify and bridge any gap in the Board’s functional knowledge and competencies by bringing in new directors with the required
experience, knowledge and expertise to meet the current and future needs of the Company.
In designing the Board’s composition, Board diversity is considered from a number of aspects, including but not limited to gender, age,
cultural and educational background, ethnicity, professional experience, skills, knowledge and length of service. All Board appointments
are based on meritocracy, and candidates considered against objective criteria, having due regard for the benefits of diversity on the Board.
During the year under review, Digi had engaged a professional recruiting firm and considered recommendations from the Board members
to assist in the search for a new Independent Director based on the identified selection criteria approved by the NC. The NC shortlisted
several candidates for engagement sessions to review the suitability of the candidate prior to recommending to the Board for approval.
The Board appointment process is summarised in the chart below:
Identification Selection of Assessment Initial Interaction

of skills/Gaps Candidates of Candidates with Candidates
Recommendation for
Induction Board Approval Review by NC
Board Approval
Board Re-election and Re-appointment
Article 98(A) of the Company’s Memorandum and Articles of Association (M&A) provides that one-third (1/3) of the remaining Directors
are required to retire by rotation and all Directors must submit themselves for re-election at the AGM at least once in every three (3) years.
Article 98(E) of the Company’s Constitution provides that any new Director appointed by the Board during the year is required to stand
for re-election at Digi’s next AGM.
Upon the Board’s endorsement on 12 March 2021, the following Directors to be considered for re-election pursuant to Article 98(A) and
98(E) of the Company’s M&A at the Twenty-Fourth (24th) AGM and they have given their consent for re-election. The re-election of each
Director will be voted as a separate resolution during the 24th AGM.
Article 98(A) Tan Sri Saw Choo Boon | Yasmin Binti Aladad Khan
Article 98(E) Wenche Marie Agerup | Randi Wiese Heirung
As at the date of this report, none of the Independent Directors has served the Board for more than nine (9) years except for Tan Sri Saw
Choon Boon. At the last AGM held on 1 June 2020, the shareholders have approved for Tan Sri Saw Choo Boon, who has reached a
cumulative term of nine (9) years as a Senior Independent Non-Executive Director (Sr INED) of the Company, to continue in office until
the conclusion of the next AGM. However, Tan Sri Saw Choo Boon had on 10 February 2021 notified of his intention to retire and will not
seek for re-election upon the conclusion of the 24th AGM scheduled to be held on 18 May 2021.
Board Performance Evaluation Based on the 2020 Board evaluation findings, the Board is
satisfied and acknowledged that the Board has continued to
Every year, under the purview of the Nomination Committee, carry their duties well and amicably with most areas rated in the
the Board performance evaluation is undertaken to assess the range of “4” (Good/Competent) to “5” (Strong/Outstanding). The
effectiveness of the following: respective Board Committees had performed their responsibilities
diligently and efficiently. The Board evaluation also assesses the
effectiveness of the Board Committee, particularly in the elements
The Board as a Contribution of Independence on function, composition, skills & competencies, meeting
whole and the each Individual of Independent administration and conduct.
Board Committee Director Director
All Board Committees received positive response with no area of

concern indicating that the Committee members have discharged
During the year under review, the Board performance their duties and responsibilities well with professionalism to uphold
evaluation was conducted internally and the process covered the interest of Digi and other stakeholders and to meet the needs
the Board, Board Committee, Peer and Self Evaluations of of Digi Group.
the Board members. The Board performance evaluation 2020
focused on maximising the effectiveness and performance Self and Peer Evaluation are conducted to assess each Director’s
of the Board and its Committees in the best interest of Digi. professional competency, attributes and personality. Directors’
The Board performance evaluation results were compiled by Peer Evaluation overall results continued to be high in 2020.
an independent external secretarial firm to facilitate the Board
evaluation via evaluation forms.
2021 Priorities
Based on the 2020 results and moving forward, the Board continues to navigate a complex, unsettling environment following a year
of geopolitical turmoil, social unrest, economic volatility and the ongoing Covid-19 pandemic. The Board has identified the following
priorities for 2021:
• Strategically prepare for growth amid increased uncertainty

• Evolve Governance, Risk Management and Compliance processes
• Transforming the governance of risk management
• Take a continuous improvement approach to board effectiveness
• Strengthen communication and engagement with stakeholders
The Board evaluation questionnaires towards an effective Board covers the following parameters:
Responsibility and Conduct Structure and Composition Process and Administration
• Business Strategy governance and • Diversity • Board focus, agenda and frequency
implementation • Members competency of meetings
• Risk Management and Internal • Board and Committee composition • Sufficient information availability on
Control timely basis
• Company’s value creation • Relationship with Management
(1) Summary of Strengths and Challenges (2) Areas of Improvement (3) Professional Development
Board Discussion Action Plan initiatives
# More information on the Board Performance Evaluation process can be found in the Corporate Governance Report on our website at www.digi.com.my/annualreport
Induction and Continuous Professional Development
An induction programme is conducted for newly appointed Directors via a briefing session by the Management Team to provide the
necessary information and to assist them in understanding the operations of Digi Group, current issues and corporate strategies. All new
Directors have completed the Mandatory Accreditation Programme (MAP).
All Directors are encouraged to attend continuous education programmes, talks, seminars, workshops and conferences to enhance their
skills and knowledge and to ensure that they are kept abreast with the new developments in the business environment and corporate
governance.
Despite the Covid-19 pandemic, all Directors ensured continuous participation in virtual trainings and development programmes. Details
of the trainings and programmes attended by the Directors during the financial year were outlined below:
Name of Director Training Programme/Conference/Seminar

Haakon Bruaset Kjoel • Digi 3-Year Strategy Workshop (Part 1)
• Digi 3-Year Strategy Workshop (Part 2)
• Telenor Global Forum 2020
Tan Sri Saw Choo Boon • Reinventing Cybersecurity with Artificial Intelligence
• Outthink the Competition: Excelling in a Post Covid-19 World
• Rethinking Workforce Strategy: Changes to safeguard productivity
• Force Majeure & Covid-19
• Malaysia Economic Monitor – “Surviving the Storm”
• Risks: A Fresh Look from the Board’s Perspective
• Managing Virtual Banking and Insurance Businesses
• Contracting in a Digital-First Economy
• Demystifying the Future of Work
• Business Foresight Forum 2020
• Malaysia REITs: Managing the New Normal
Vimala V.R. Menon • Section 17A of the MACC Amendment Act 2018
• Future of payments – A workshop with Visa International
• Open Enrolment Programs – Tightening the Screws on Corruption Risk Management
Yasmin Binti Aladad • Insider Trading Law
Khan • Competition Compliance
• Anti-Corruption training
• Certified Data Protection
• Code of Conduct Compliance
• Certified GoGreen Specialist Foundation
• Compliance Management System Self-Assessment workshop
Wenche Marie Agerup • Mandatory Accreditation Programme
(Appointed on • Digi Induction Programme
15 October 2020) • Digi 3-Year Strategy Workshop (Part 1)
Randi Wiese Heirung • Mandatory Accreditation Programme
(Appointed on • Digi Induction Programme
15 October 2020) • Digi 3-Year Strategy Workshop (Part 1)
Lars Erik Tellmann • Digi 3-Year Strategy Workshop (Part 1)
• Telenor Global Forum 2020
NOMINATION COMMITTEE (NC) REPORT
Committee membership Meetings attended Responsibilities

Tan Sri Saw Choo Boon (Chair) 3/3 • Regularly review the structure, size and composition (including the
skills, knowledge, experience and diversity) of the Board
Yasmin Binti Aladad Khan 3/3 • Review the succession planning for Directors and Management Team
• Responsible for identifying and nominating for the approval of the
Haakon Bruaset Kjoel 3/3 Board, candidates to fill Board’s vacancies as and when they arise
The NC consists of a majority of Independent Non-Executive Directors in compliance with the requirement of the Main Market Listing
Requirements (MMLR) of Bursa Securities, which provides that the NC must comprise exclusively Non-Executive Directors, a majority
of whom must be Independent. The composition also observed the MCCG 2017 where the NC is chaired by a Senior Independent Non-
Executive Director.
Main Activities of the NC for 2020
• Annual assessment and review of composition of Board and • Assessed the independence and time commitment of each
Board Committees Independent Director
• Facilitated the 2020 Board evaluation and validated the results • Conducted annual review on the NC Terms of Reference and
thereof Board Diversity Policy
• Reviewed the tenure of Independent Directors • Reviewed Performance Planning and Key Performance
• Reviewed the Directors’ training requirements Indicators for CEO
• Reviewed the Board’s Skills and Experience Matrix • Assessed and recommended to the Board on the re-election.
• Recommended the appointment of Non-Independent Directors • Reviewed the NC Report for inclusion in the 2019 Integrated
• Conducted induction programmes for newly appointed Directors Annual Report
assisted by the Company Secretary
Key Matters Reported to the Board
The Chair of NC updated the Board on matters of major importance deliberated at the NC meetings and its recommendations. The
copies of confirmed minutes of each NC meeting were also circulated to the Board for notation. Among the key matters considered by
the NC during 2020 were the following:
Significant matters Description Outcome
Proposed Succession Reviewed the proposed The list of successors approved were considered as part of the
Planning for Management succession plan for selection process for the Management Team:
Team Management Team, taking into
consideration the criteria and • Praveen Rajan was redesignated as Chief Digital Officer to
skill sets of the successors and Chief Marketing Officer w.e.f. 14 September 2020
their readiness level
• Cheng Weng Hong was appointed as Chief Sales Officer
w.e.f. 14 September 2020
Priorities for 2021
• To undertake the necessary changes to the composition of the Board and its Committees, following retirements and resignation as
the same arises from time to time
• To review Management Team succession planning
• To monitor follow up actions based on the Board performance evaluation findings
REMUNERATION COMMITTEE (RC) REPORT
Committee membership Meetings attended Responsibilities

Haakon Bruaset Kjoel (Chair) 4/4 • Ensure the remuneration package of Non-Executive Directors are
well-structured and able to attract, retain and motivate Directors
Yasmin Binti Aladad Khan 4/4 • Implement remuneration policies and procedures
Wenche Marie Agerup 0/0

(Appointed on 15 October 2020)
Torstein Pedersen 4/4

(Resigned on 15 October 2020)
The RC comprises all Non-Executive Directors who oversee the implementation of the remuneration policy and structure, and reviews
and recommends matters relating to the remuneration for Directors and Management to the Board.
Main Activities of the RC for 2020
• Discussed the proposed fee and benefits payable for the Independent Non-Executive Directors
• Conducted annual review on Terms of Reference and Non-Executive Directors’ Remuneration Policy
• Recommended the proposed remuneration package of the CEO
• Recommended the CEO’s Short-Term Incentive 2020 payout and scorecard
Directors’ Remuneration
The Board had revised the remuneration structure in 2020, following a benchmarking exercise conducted in 2019 by AON Hewitt on the
remuneration packages including benefits payable to the Independent Non-Executive Directors.
Each of the Independent Directors abstains from deliberating and voting on his or her own remuneration. The Non-Independent Non-
Executive Directors receive their remuneration from their employing companies within the Telenor Group and do not receive any form of
remuneration from Digi.
The breakdown of the Directors’ remuneration paid in 2020 is as follows:
Directors’ Fees Benefit-

TOTAL
(RM) in-kind
(RM)
Independent Non-Executive Directors Company Subsidiaries (RM)
Tan Sri Saw Choo Boon 290,000 31,992 5,300 327,292
Vimala V.R. Menon 275,000 Nil 300 275,300
Yasmin Binti Aladad Khan 300,000 Nil 5,300 305,300
Total 865,000 31,992 10,900 907,892
The remuneration packages for Management Team are set based on industry standards, reflecting the senior management’s roles,
responsibilities, level of skills and experience, and motivates performance. The reward matrix is assessed based on the Company’s
performance indicators for all strategic pillars.
Priorities for 2021
• To review and propose fee and benefits payable for the Independent Non-Executive Directors
• To review and propose the remuneration package of the CEO
• To review and propose the CEO’s Short-Term Incentive 2021 payout and scorecard
# Please refer to our website at https://digi.listedcompany.com/corporate_governance.html for the Non-Executive Directors’ Remuneration Policy, and Remuneration Policy and
Procedure for Senior Management
Principle B - Accountability and Effective Audit and Risk Management
Audit and Risk Committee Report
Composition and Terms of Reference
In line with the requirements of Paragraph 15.09(1)(a) and (b) of the MMLR, the composition of the Audit and Risk Committee (ARC) and
attendance of each member at the ARC meetings are as follows:
Full Profile
Name Meetings attended
on page
Vimala V.R. Menon (Chair) 5/5 74
Tan Sri Saw Choo Boon 5/5 74
Yasmin Binti Aladad Khan 5/5 75
Randi Wiese Heirung 1/1 76

(Appointed on 15 October 2020)
Torstein Pedersen 4/4 n/a

(Resigned on 15 October 2020)
The ARC held five (5) meetings during the financial year ended 31 December 2020.
No alternate Directors were appointed as members of the ARC.
Vimala V.R. Menon is a Fellow of the Institute of Chartered Accountants in England and Wales, and a member of the Malaysian Institute of
Accountants. The ARC, therefore, meets the requirement of Paragraph 15.09(1)(c)(i) of the MMLR, which requires at least one (1) member
of the ARC to be a qualified accountant.
The duties and responsibilities of the ARC are set out in its Terms of Reference which is accessible in the Corporate Governance section
of Digi’s website at https://digi.listedcompany.com/corporate_governance.html
The Chief Executive Officer, Chief Financial Officer and Head of Internal Audit attend the ARC meetings as permanent invitees. The Chair
of the ARC may also invite other Board members and/or Management to participate in the meetings, when necessary.
The external auditors were invited to the ARC meetings to present their annual audit plan and discuss the quarterly unaudited financial
results and annual audited financial statements, as well as other matters deemed relevant. Both the internal and external auditors have
unfettered access to members of the ARC including the Chair of ARC, throughout the year.
All deliberations during the ARC meetings, including the issues tabled and rationale adopted for decisions were properly recorded.
Minutes of the ARC meetings were tabled for confirmation at the following ARC meeting and subsequently presented to the Board for
notation. The Chair of the ARC reported to the Board on the activities and significant matters discussed at each ARC meeting.
Summary of Activities of the ARC
The ARC carried out the following major activities during the year:
Risk Management and Internal Control
(a) Reviewed Digi’s top risk profiles and deliberated on the significant threats and opportunities on a quarterly basis, including progress
and adequacy of mitigation strategies.
(b) Discussed improvements to the Enterprise Risk Management process to ensure proactive and holistic risk identification and
monitoring of mitigation actions to reduce risk impact to an acceptable level.
(c) Evaluated the overall adequacy and effectiveness of internal Compliance Programme
controls through review of the work performed by both internal
and external auditors, other assurance providers within Digi, (a) Monitored Compliance incidents reported by the Management
and discussions with Management. and the recommended remedial actions for implementation
by the Management to the ARC.
Internal Audit (b) Reviewed the annual Compliance Risk Assessment exercise
which includes anti-corruption and the recommended
(a) Deliberated and provided input to the risk-based Internal mitigation steps and controls to be monitored for
Audit Plan to ensure adequate scope and coverage of Digi’s implementation in 2021 by the Management.
activities, prior to recommending to the Board for approval. (c) Reviewed Company policies under the Governance Work
Monitored the progress of the approved Internal Audit Plan Programme 2020 for implementation by Management.
and approved changes to the Internal Audit Plan due to (d) Reviewed and endorsed the implementation of the Adequate
changes in business and/or risk environment. procedures requirements pursuant to the Guidelines on
(b) Reviewed and deliberated on internal audit reports, audit Adequate Procedures issued by the Prime Minister’s
recommendations and adequacy of Management’s response Department. This is in line with the enforcement of Corporate
to these recommendations. Significant issues were discussed Liability in accordance with Section 17A of the Malaysian
at length with the presence of relevant Management team Anti-Corruption Commission Act 2009 (MACC Act 2009),
members to ensure satisfactory and timely remediation which took effect on 1 June 2020.
actions have been committed by Management to address (e) Reviewed the Compliance awareness plans for Digi
identified risks. employees and business partners.
(c) Monitored the implementation of action plans agreed by
Management on outstanding audit findings on a quarterly Financial Reporting
basis to ensure that all actions have been implemented in the
related areas based on the committed timelines. (a) Reviewed Digi’s unaudited quarterly financial results
(d) Provided guidance on ad hoc matters arising from on-going and audited annual financial statements, and related
internal audit activities. announcements, before recommending them for the Board’s
(e) Reviewed the effectiveness of the Internal Audit function approval, including:
through evaluation of its performance and competency, and (i) Deliberation on significant audit and accounting
monitoring the sufficiency of resources and costs, to ensure matters highlighted, comprising Management’s
that it has the required expertise to discharge its duties. judgments, estimates or assessments made and
(f) Reviewed and approved updates to the Internal Audit Charter. sufficiency of disclosures in the financial statements; and
(g) Reviewed and deliberated on investigation findings and (ii) Discussion of significant financial matters at length to
Management recommendations on remedial actions covering ensure compliance with internal accounting policies
disciplinary and/or corrective actions. Extensive discussions and Malaysian Financial Reporting Standards (MFRS),
were conducted with the Management on the root cause focusing on MFRS 16.
of the incidents and risk exposure before the said remedial
actions were endorsed. Periodic updates are furnished to External Audit
the ARC to ensure adequate and timely closure of remedial
actions. (a) Reviewed the scope of work of the external auditors
(h) The ARC reviewed the results of an independent Quality confirming their independence and objectivity.
Assurance Review carried out in October 2020 by an (b) Reviewed external auditors’ Management Letter together
external party to benchmark the Internal Audit’s activities with Management’s responses, to ensure that appropriate
against International Standards for the Professional Practice actions have been taken.
of Internal Auditing promulgated by the Institute of Internal (c) Monitored on a quarterly basis, all non-audit services and fees
Auditors. The Internal Audit achieved a ‘Generally Conform’ incurred in which the external auditors were engaged, taking
rating, the highest rating possible for the exercise indicating a into account external auditors’ independence and objectivity.
satisfactory level of compliance with the Standards. The amount incurred by Digi and on group basis in respect
of audit fees and non-audit related fees for services rendered
by the external auditors is disclosed in Note 7 to the financial
statements and in the Additional Compliance Information in
this Integrated Annual Report.
(d) Met privately with the external auditors at the ARC meetings banking and insurance; eight (8) years of project management
held on 22 January 2020 and 15 October 2020 to ensure experience and two years in a regulatory role. She holds a
there were no restrictions to the scope of their audit and to Bachelor of Business (Accountancy) degree from RMIT University
discuss significant matters that arose during the course of and is a member of the Malaysian Institute of Accountants. To
audit. further preserve the independence of the Internal Audit function,
(e) Evaluated the performance of the external auditors and made the performance of the Head of Internal Audit is appraised by the
recommendations to the Board on their re-appointment, Chair of the ARC.
subject to the approval of Digi’s shareholders at the AGM.
The Internal Audit function is guided by the provisions of its
Related Party Transactions Internal Audit Charter, which is reviewed and approved by the
ARC annually. The internal audit function’s activities conform to
(a) Reviewed the annual mandate compiled for recurrent related the Institute of Internal Auditors International Standards for the
party transactions. Professional Practice of Internal Auditing, set forth by the Institute
(b) Reviewed related party transactions as disclosed in the of Internal Auditors.
financial statements and performed quarterly monitoring
of the mandate for recurrent related party transactions to The Head of the Internal Audit, reporting directly to the ARC, is
ensure compliance with the MMLR and Digi’s policies and responsible for enhancing the quality assurance and improvement
procedures. programme of the internal audit function. Its effectiveness is
(c) Reviewed and deliberated on any new related party monitored through continuous internal and external quality
transactions to ensure that the terms and conditions of the assessments and the results are presented to the ARC. The
transactions are commercially based and at arm’s length. internal assessment is performed annually while the external
assessment by a certified body is conducted once every 5 years.
Other Activities The last external assessment was conducted in October 2020,
and was performed by a qualified, independent assessor.
(a) Reviewed and recommended to the Board; the ARC Report,
Corporate Governance Overview Statement, Corporate The Internal Audit Department executed a total of 14 reviews
Governance Report, and Statement on Risk Management during the year, including advisory services. The reviews covered
and Internal Control, for inclusion into the Integrated Annual business priority and key risk areas, focusing on the efficiency
Report. and effectiveness of governance and controls within customer
(b) Reviewed the proposed dividend payout on a quarterly basis, service operations, management of site rental and test lines,
taking into consideration the cash flow requirements before employee and contract staff claims, telco inventory management,
recommending for the Board’s approval. sourcing processes, as well as privacy compliance. The Internal
Audit Department had also conducted internal investigations into
Internal Audit Function allegations of misconduct or breach of the Code of Conduct by
employees.
The Internal Audit Department reports functionally to the ARC,
to ensure impartiality and independence in executing its role. Internal Audit staff performed an annual declaration on their
Its’ primary responsibility is to provide risk-based and objective adherence to the Code of Ethics, and that they are free from
assurance, advice and insight to the Board and Management on any relationships or conflict of interest, which could impair their
Digi’s internal control, risk management and governance system. objectivity and independence. Any non-conformance and/or
conflict of interest will be reported to either the Head of Internal
The Internal Audit Department comprises seven (7) members, Audit or to the Chair of ARC. The total costs incurred for the
led by Serena Chin, who has 14 years of experience in auditing Internal Audit Department in respect of the financial year ended 31
various industries such as property development, capital markets, December 2020 amounted to RM1.5 million (2019: RM1.8 million).
# Details of the Risk Management and Internal Control Framework are set out in the
Statement on Risk Management and Internal Control of this Integrated Annual Report

Principle C – Integrity in Corporate Reporting and The notice of the upcoming AGM, which is scheduled to be held
Meaningful Relationship with Stakeholders on 18 May 2021, has been made available to shareholders for not
less than twenty-eight (28) days prior to the meeting in order to
Our Approach accord shareholders with sufficient time to review the Company’s
financial and operational performance as well as the resolutions
As a public listed company, Digi believes in building trust-based that are to be tabled during the 24th AGM.
relationships to enable growth while fulfilling its obligation to
provide credible and timely information to all stakeholder groups. The extended notice period is also intended to enable shareholders
This is supported by Digi’s Financial Disclosure Policy and to make the necessary arrangements to attend the 24th AGM. Digi
Corporate Communication Policy which outlined a comprehensive will leverage on digital and video conferencing tools to conduct the
approach to deliver open and clear communication in line with upcoming 24th AGM virtually. These technologies will also be critical
Bursa Securities’ Market Listing Rules and Regulation. to facilitate voting in absentia and remote shareholders’ participation
given the current circumstances of pandemic Covid-19 pandemic.
Digi’s strong commitment in delivering effective stakeholder
engagement is reinforced by the stakeholder-focused mindset 2020 Investor Calendar
across the organisation as the Company recognises Digi’s success
and ability to deliver growth depends much on the support of all Digi’s engagements have become more significant than ever, amid
stakeholders. The details of all efforts can be found in the Key the ongoing health crisis as Digi is dedicated to help manage
Relationships write-up under Section 3: Strategic Review on the uncertainty and discuss the Company’s developments in
pages 29 to 33 of this report. navigating through an unprecedented time. For the year under
review, all Investor Relations activities were conducted virtually
Investor Relations while enabling the investment community sufficient access to Digi
Management Team through virtual events.
In Digi, the Investor Relations team believes it is a business
imperative to address expectations from diverse stakeholder With the utilisation of digital and video conferencing tools, the Team
groups with varying views of value creation. They actively engage successfully organised five (5) investor briefings, three (3) non-deal
with Digi’s shareholders, analysts, and investors through a wide roadshows, and over forty (40) thematic meetings. Digi has also
range of communication channels. They have also developed participated in three (3) regional investor conferences and nine (9)
a dedicated section on Digi’s corporate website for Investor expert forums. The full investor calendar was illustrated below.
Relations: https://digi.listedcompany.com/ which includes all
material information for the investment community.
22
jan 4Q 2019 Earning Call
The Investor Relations team welcome all investors’ questions/ 2020
queries which can be made via mail to the corporate office address
as stated at the back cover of this report, or via electronic mail at
[email protected] 02
mar Non-Deal Roadshow, Kuala Lumpur
2020
Conduct of General Meetings
The AGMs serve as the principal avenue for shareholders to 23

APR 1Q 2020 Earning Call
engage the Board and Management Team in a constructive two- 2020
way dialogue. Shareholders are encouraged to actively participate
during the AGMs by raising questions and providing feedbacks
20-21
to the Board and Management Team. Feedback gathered during may Citi Virtual ASEAN Conference 2020
2020
the meeting are evaluated and considered for further action by the
Board and Management Team.
01
jun 23rd AGM
2020
14
jul 2Q 2020 Earning Call
Key topics raised Our responses
2020 Market competition • Launched affordable hourly, daily,
weekly and monthly internet passes,
enriched with high-speed network
06
aug Virtual Non-Deal Roadshow with JP Morgan connectivity
2020 • Continued Digi’s focus to provide
customers with compelling product
19
aug Virtual Non-Deal Roadshow with Nomura
propositions and
customer experiences
differentiated
2020
Strategy to ensure • Strengthened sustainable revenue
26
aug Virtual Analyst Day - Update on Technology
sustained financial
growth
portfolio mix with increased internet
and digital contribution to reduce
2020
reliance from traditional revenues
• Delivered cost savings led by cost
16
oct 3Q 2020 Earning Call
optimisation efforts and efficient bad
debt risk management
2020
Our foray into • Expanded ultra-fast and unlimited

18 Global TMT Virtual Conference 2020 with fibre-to-the-
home (FTTH)
FTTH as part of bundled product
NOV JP Morgan proposition for a seamless in and out
2020
and Business-to- of home service experience
Business (B2B) • Enlarged B2B customers and organic
segments revenues driven by Digi’s flexible and
Summary of Investor Discussion
affordable digital bundle plans
In the various engagement sessions with the investment Network quality • Ensured high availability of reliable
community, key topics commonly raised were summarised as network services at critical and high
follows: demand locations
• Implemented traffic management
Key topics raised Our responses and dynamic network optimisation to
cater for rising traffic demand
Impact of Covid-19 • Ensured business continuity through • Rated as the fastest and most
adherence to strict operational consistent network nationwide
Standard of Procedures and facilitated by Ookla as a testament of Digi’s
work from home arrangements commitment to maximise best
• Demonstrated Digi’s ability to shift to internet experience
online channels
• Supported society recovery through Regulatory • Committed to deliver widespread
a range of innovative products and development with high-speed 4G mobile services,
services regards to Jendela improve in-door coverage for urban
• Discussed Digi’s recovery plans and and 5G and suburban areas
impacts on revenue generation and • Build 5G-ready network and grow
profitability 5G ecosystem via a collaborative
approach with industry players and
vertical partners
Integrity in Corporate Reporting
In Digi, we have established formal and rigorous processes to verify

and protect the integrity of the corporate reporting. This includes
the annual Directors’ Report and other reports in the Company’s
corporate reports portfolio released to the public.
Key topics raised Our responses
Financial reporting During the reporting period, the Company

and disclosure implemented additional internal controls
to ensure the integrity of corporate
reporting systems, which included the
accuracy of financial reporting
Prior to the release to public domain,

Quarterly Bursa Securities’ reports and
Management Discussion and Analysis
(MD&A) will be reviewed by the ARC and
ultimately approved by the Board
Integrated Annual Sections pertaining to Strategic Review,
Report Financial Review and Governance
Reports will go through meticulous
process of reviewing and evaluating by
our appointed Auditor, alongside the
compulsory reviews by Management
Team
This will subsequently be approved by

the Board prior to the publication to the
market. The process is crucial in ensuring
the highest standards of accuracy and
compliant in our annual reporting, thus
providing stakeholders with right set of
information to make informed decisions
Statement by the Board
The Board has reviewed, deliberated and approved this Statement

on 12 March 2021.
# More information on Digi’s principles and practices for corporate governance can
be found at the Governance section at https://digi.listedcompany.com/corporate_
governance.html
Statement on Risk Management

and Internal Control
Pursuant to Paragraph 15.26 (b) of the Main Market Listing Requirements of Bursa Malaysia
Securities Berhad (Bursa Securities), the Board of Directors of listed companies is required
to include in their annual report, a statement about the state of risk management and internal
control of the listed issuer as a group.
Digi Board of Directors (Board) is pleased to provide the following statement that has been prepared in accordance with the Statement on
Risk Management and Internal Control: Guidelines for Directors of Listed Issuers endorsed by Bursa Securities. The Statement outlines
the nature and scope of risk management and internal control within Digi during the financial year under review.
RESPONSIBILITIES AND ACCOUNTABILITIES by identifying and evaluating risks faced and monitoring the
achievement of business goals and objectives within the risk
The Board acknowledges its responsibility for the establishment appetite parameters.
as well as oversight of Digi’s risk management framework and
internal control systems. The risk management framework and RISK MANAGEMENT
internal control systems are designed to identify, assess and
manage risks that may impede the achievement of business Digi’s risk management framework provides the foundation and
objectives and strategies. The Board also acknowledges that the process on how risks are managed across Digi. Our process is
internal control systems are designed to manage and minimise, broadly based on ISO 31000:2018.
rather than eliminate, occurrences of material misstatement,
financial losses or fraud. Risk management responsibilities in Digi are defined in the framework
where Risk Management function is responsible to implement the
The Board, through the Audit and Risk Committee (ARC) enterprise risk management process.
periodically reviews the effectiveness and adequacy of the risk
management framework and internal controls by identifying, Digi’s Management Team (Management)’s key role is to identify
assessing, monitoring and reporting key business risks with the significant threats and opportunities, evaluate the risk profile and
objective to safeguard shareholders’ investments and Digi’s assets. drive mitigation strategies on a regular basis. All line managers are
required to assume responsibility for risk management within their
Management is responsible for implementing Board approved areas of responsibility and ensure that risk management is embedded
policies and procedures on risk management and internal controls in the day-to-day business and decision-making processes.
The diagram below illustrates the roles and responsibilities of risk management practices across Digi.
Roles & Responsibilities of Managing Risks:
External Assurance by
Board of Directors & Board Committee Fourth Line of Defence
• Regulators or agencies
Digi Management Team compliance checks via
independent assurance
engagements performed by
external auditors
MANAGE by First Line of Defence oversee by Second Line of Defence ASSURANCE by Third Line of Defence
• Business/function owners who • General functions oversee & • Internal audit provides independent
own & manage risks report on risks assurance
• Advisor to first line • Advisory role to improve processes
Business policy, procedures &

controls implementation Governance policy, procedures & Ensure first-tier and second-tier Highest level of oversight
controls implementation defence operate as expected
Statement on Risk Management and Internal Control
Digi’s risks are identified based on risk assessments performed relative to the organisation’s ambition and objectives from our strategic
planning process. The identified risks are assessed and deliberated by Management and mitigated through strategies which are
monitored for progress to maintain the risk exposure within acceptable level.
As part of risk governance, Management reports Digi’s top enterprise risks to ARC in a risk heat map on a quarterly basis for oversight
and mitigation status. Material risks identified are reported to the Board annually, via the ARC, to ensure the Board is updated on
significant risks and progress of mitigation actions.
To strengthen our risk management framework, we have continuously improved to enhance our risk management practices and increase
the scope across Digi.
Refer to the diagram below for an overview of the risk management framework and processes implemented in Digi:
risk management framework
• Risk Management Policy and Framework

• Risk Management Manual
Strategic Planning Process
Digi’s Objectives, Top-down Strategic

Strategy, KPIs Risk Identification and Assignment
Bottom-up Divisional/
Operational Risk Identification and
Assignment
Risk Assessment
and Mitigation Plan
Continuous Risk
Monitoring Process
Improvement Responses
Risk
Monitoring
Risks reported by Management and discussed with ARC and the Board during the financial year are summarised below. As these risks
are still relevant, mitigation responses are in place and continuously monitored to mitigate risk exposures.
Market and Competition Business Discontinuity
Risk on heightened competition level coupled with Risk of interruptions in Digi’s critical service areas
effects of Covid-19 on the economy are challenging during the pandemic outbreak
industry and revenue growth
Employee’s Health and Safety Capital Allocation and Operational Efficiency Risk
Covid related impact on employees health and Failure to optimise capital allocation and
safety, including wellbeing and engagement amidst operational efficiencies on digitisation and network
change in way of work modernisation will impede our competitiveness
Regulatory, Legal and Compliance Risk Data Protection and Risk Management
Vast amount of data is subject to numerous

Risk of non-compliance by Digi and/or our business
compliance, security, and privacy requirements.
partners to applicable industry regulations or
Effective data governance is critical to fulfil increased
requirements on spectrum, access licenses,
expectation in consumer data protection under the
registration, or responsible business ethics
new remote way of work
Cyber Threats and Security Risk Responsible Business Commitment Risk
Risk of cyber-attacks with presence of threat Risk of not fulfilling corporate social responsibility
actors and exploitation activities due to increased to support the community during Covid; and not
digitisation, high internet usage from remote working gaining consumers’ trust and expectations in carbon
during Covid emission, e-waste and climate change threats on
network infrastructure expansion and roll out
Talent and Succession Management Risk
Inability to manage sucession planning risk, attract

new talents to promote diversity and inclusion, and
retain top talents
INTERNAL CONTROL SYSTEMS Security Assurance activities performed to ensure network

security protection include conducting security awareness
The key elements of the internal control systems established by sessions, running vulnerability management and security posture
the Board that provide effective governance and oversight of assessments, and continuous security monitoring and governance
internal controls include: in security compliance audits and risk management. Digi complies
with the ISO 27001:2013 – Information Security Management
Policies and Operating Procedures System, ISO 14001: 2015 – Environmental Management System,
ISO 45001:2018 – Occupational Health and Safety Management
Policies and operating procedures are in place to ensure System and Payment Card Industry/Data Security Standard
compliance with internal controls and the prescribed laws and (PCIDSS) standards.
regulations. These policies and procedures provide guidance and
direction for proper management and governance of operations Periodic meetings are held with the Chief Technology Officer to
and business activities. The documents are reviewed annually discuss, direct and approve security initiatives, activities, policies
and published in the Compliance portal which is available to all and projects driven by the Security department.
employees.
Business Continuity Management (BCM)
Profitability Assurance
Digi recognises the importance of providing uninterrupted mission
This function minimises revenue leakage by implementing critical and time sensitive products and services to its customers.
adequate controls and processes through an optimal revenue Hence, disruptive incidents are handled and responded to
management framework. It covers the cycle of identification, effectively to ensure a structural recovery that safeguards the
assessment, mitigation and monitoring. Digi has in place interests of its stakeholders, as well as to protect the credibility
automated controls to ensure that usage and profile integrity and reputation of Digi.
between the network, mediation, rating and billing is assured
and adequately controlled. Key issues and mitigation actions The BCM practices adopted in Digi are aligned with ISO 22301:
are reported to Management monthly. The effectiveness and Business Continuity Management. The Management continuously
efficiency of processes and controls within the revenue cycle leads the drive to enhance Digi’s Business Continuity processes
are reviewed regularly. In addition to assuring minimal revenue which encompass emergency response, crisis management,
leakage, the team also works on automation and dashboards for crisis communication, business continuity and Network and IT
efficient business monitoring. disaster recovery. In addition, Digi has an annual BCM programme
which includes awareness, training, review and validation on the
Security efficiencies and effectiveness of BCM.
Digi is committed to reduce the impact of service disruptions Controls over Financial Reporting
by ensuring infrastructure is protected and services are not
interrupted, thereby enabling continuous services to its customers. The Controls over Financial Reporting (CFR) function plays an
important role in evaluating and improving effectiveness of key
The Cyber Security and Physical Security functions are responsible controls surrounding Digi’s financial reporting process. Its primary
for ensuring confidentiality, integrity and availability of information objective is to provide reasonable assurance regarding the reliability
and information processing facilities, including telecommunication of financial reporting and preparation of financial statements.
systems and infrastructure and to protect against cyber-attacks, Reviews on internal controls over financial reporting is performed
fraudulent activities, information loss and other security risks and in accordance with Digi’s Internal Control over Financial Reporting
threats arising internally and externally. Framework, which requires assessment based on materiality of
significant accounts, and testing and evaluation of the design and
The Fraud Management function manages and mitigates the risk of operational effectiveness of key controls.
relevant fraud and related losses. Some of its key activities involve
developing and designing internal fraud controls which are regularly The function adopts a continuous monitoring routine to follow
reviewed to ensure relevance and effectiveness. Fraud awareness up on unaddressed risks and non-operating controls, including
activities, measures and continuous actions are taken to ensure periodic reporting to Management and the ARC on the status of
telecommunication fraud is minimised and the requirement for controls over the financial reporting processes.
preventive controls are embedded into business processes.
• Formulates Responsible Business strategies, policies, and

Organisation Structure goals
Digi has established an organisational structure with clearly defined • Monitors and facilitates adherence to the related Responsible
lines of responsibility and accountability, proper segregation Business policies and manuals
of duties and assignment of authority to ensure effective and • Supports Departments to meet Responsible Business goals
independent stewardship. • Conducts Responsible Business awareness and engagement
activities
independent • Oversees Environmental, Social and Governance (ESG) and
Board andstewardship.
Management Committees Non-Financial Reporting (NFR) performances
The Board Committees, namely the Audit and Risk, Nomination • Responsible Business is presented to the Board quarterly
and Remuneration Committees have been established to assist the
Board in executing its governance responsibilities and oversight Assignment of Authority
function. These Board Committees have been delegated specific
responsibilities all of which are governed by clearly defined Terms The DAM provides a framework of authority and accountability and
of Reference. The Terms of Reference of these Committees are outlines approval authority for strategic, capital, and operational
accessible in the Corporate Governance section of Digi’s website expenditure. The DAM is reviewed and approved by the Board in
at https://digi.listedcompany.com/corporate_governance.html. line with changes in business needs.
Various committees comprising key Management members have Code of Conduct & Agreement of
been established to assist and support the Board Committees to Responsible Business Conduct
oversee core areas of business operations under their respective
documented mandates. These Management Committees are: The Code of Conduct (the Code) and Agreement of Responsible
Business Conduct (ABC) are a vital and integral part of Digi’s
Vendor and Investment Committee (VIC) governance regime that defines the core principles and ethical
• Governs the approval process regarding material capital standards in conducting business and engagements with all
investments, operating expenditure, vendor evaluation criteria stakeholders, and compliance with relevant laws and regulations.
and vendor selection, in accordance with Digi’s Delegation The Code and ABC apply to members of the Board, employees
Authority Matrix (DAM) and those acting on behalf of Digi. All employees and business
• Occurs bi-weekly or ad hoc sessions where necessary partners are required to confirm that they have read, understood
• Chaired by the Investment Controller with the VIC members and will adhere to the Code and ABC, respectively. The Group has
as assigned / depicted in the Investment approval manual, in established communication channels that allow concerns of non-
accordance with Digi’s DAM to ensure sufficient quorum for all adherence to the Code and ABC to be anonymously reported.
investment approvals
Compliance
Regulatory Steering Committee (RSC)
• Provides direction and makes decisions on regulatory matters The Compliance Officer supports the CEO and the Board in
and/or related topics that have a significant impact to Digi ensuring that:
• Meets monthly • The Code and ABC reflect good business practices and
• Chaired by the CEO with key Management as RSC members relevant laws, regulations and widely recognised treaties
• The Code and ABC are implemented consistently and
Risk Management Forum effectively through sharing of knowledge and measures for
• Forum members consists of Management who meets quarterly quality assurance
• Reviews and deliberates on significant risks (threats and • Compliance incidents are consistently and effectively managed
opportunities) in Digi • Reports on material breaches of the Code and ABC are made
• Makes decisions on the coordinated action plans to mitigate to the Compliance Committee (comprising members of the
risks Management), members of the Board and ARC on a quarterly
basis
Responsible Business Forum (RBF) • Capacity building for Employees, Business Partners,
• Chaired by the CEO, the forum includes the Chief Human Management and Members of the Board and ARC on the
Resource Officer, Chief Technology Officer, Chief Corporate Compliance requirements of the Group on a regular basis
Affairs Officer, and other key Management members • The effectiveness of the Compliance programme is periodically
reviewed and improved
• Compliance risk assessment is conducted annually with a accordance with the disclosures required by paragraphs 41 and
view to preventing incidents from occurring through effective 42 of the Statement on Risk Management and Internal Control:
remediation and mitigation steps Guidelines, nor is the Statement factually inaccurate.
Management and Board Meetings AAPG 3 does not require the external auditors to consider whether
the Directors’ Statement on Risk Management and Internal
Management meetings are held weekly to identify, discuss, Control covers all risks and controls, or to form an opinion on
approve and resolve strategic, operational, financial and key the adequacy and effectiveness of the Group’s risk management
management issues pertaining to Digi’s day-to-day business. and internal control system including the assessment and opinion
Significant changes in the business and the external environment by the Directors and Management thereon. The report from the
are reported by the Management to the Board on an on-going external auditor was made solely for, and directed solely to the
basis and/or during Board meetings. Board of Directors in connection with their compliance with the
listing requirements of Bursa Securities and for no other purposes.
Internal Audit The external auditors do not assume responsibility to any person
other than the Board of Directors in respect of any aspect of this
The Internal Audit function is established to undertake report.
independent review and assessment on the adequacy, efficiency
and effectiveness of risk management, internal control and CONCLUSION
governance processes implemented by Management. To maintain
its impartiality, proficiency and due professional care, the Internal The Board has received assurance from the CEO and CFO
Audit function reports functionally to the ARC and administratively that Digi’s risk management and internal control framework is
to the CEO. operating adequately and effectively, in all material aspects,
during the financial year under review and up to the date of
The annual audit plan, established using a risk-based approach, this Statement. Taking into consideration the assurance from
is reviewed and approved by the Board annually. Audit reports, Management and relevant assurance providers, the Board is of the
including the audit recommendations, Management responses view that the risk management and internal control practices and
and action plans for improvement and/or rectification are processes are operating adequately and effectively to safeguard
presented and tabled to the ARC on a quarterly basis. The status the stakeholders’ interests, shareholders’ investment, customer’s
of the implementation is monitored by the ARC to ensure that interests, and Digi’s assets.
they are addressed timely. If deemed necessary, management
representative will be required to attend ARC meeting(s) to provide
explanation and propose action plans on the significant audit
findings.
Further information on the Internal Audit department’s activities is

detailed in the Audit and Risk Committee Report of this Integrated
Annual Report.
REVIEW OF THIS STATEMENT BY EXTERNAL AUDITORS
The external auditors have performed limited assurance

procedures on this Statement on Risk Management and Internal
Control pursuant to the scope set out in Audit and Assurance
Practice Guide 3 (AAPG 3), Guidance for Auditors on Engagements
to Report on the Statement on Risk Management and Internal
Control included in the Annual Report issued by the Malaysian
Institute of Accountants (MIA) for inclusion in the Annual Report
of the Group for the financial year ended 31 December 2020, and
reported to the Board that nothing has come to their attention
that cause them to believe the statement intended to be included
in the Annual Report is not prepared, in all material respects, in
Additional Compliance Information
Other Disclosures
The following information is provided in accordance with Paragraph 9.25 of the Main Market Listing Requirements of Bursa Securities
as set out in Appendix 9C thereto.
1. Audit and Non-Audit Fees

During the financial year, the amount incurred by Digi and the Group with respect to audit fees and non-audit related fees paid to
external auditors for the financial year ended 31 December 2020 are as follows:-
Company (RM) Group (RM)

Audit Services 35,000 638,000
Non-Audit Services 62,000 464,090
Total Fees 97,000 1,102,090
The non-audit services comprised the following assignments: -

(a) Attestation of non-financial reporting
(b) Review of regulatory reporting
(c) Review of quarterly and year end reporting packages
(d) Review of the Statement on Risk Management and Internal Control
(e) Performance of agreed upon procedures
(f) Tax compliance services
2. Material Contracts Involving Directors’ and Major Shareholders’ Interests

There were no material contracts by Digi and/or its subsidiaries involving Directors’ and major shareholders’ interests either subsisting
as at 31 December 2020 or entered into since the end of the previous financial year.
3. Recurrent Related Party Transaction of a Revenue or Trading Nature

At the AGM held on 1 June 2020, Digi obtained a shareholders’ mandate to allow the Group to enter into recurrent related party
transactions of a revenue or trading nature.
The disclosure of the recurrent related party transactions conducted during the financial year ended 31 December 2020 is set out in
the Integrated Annual Report on page 187.
4. Utilisation of Proceed from Corporate Proposals

There were no proceeds raised from corporate proposals during the financial year ended 31 December 2020.
5. Material Public Sanction or Penalty

There were no material public sanctions and/or penalties imposed on the Company, Directors or Management by the relevant
regulatory bodies during the financial year ended 31 December 2020.
Statement of Responsibility by Directors

In respect of the preparation of the annual audited financial statements
The Directors are responsible for ensuring that the financial statements of the Group are drawn up in accordance with the applicable
Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016.
The Directors are also responsible for ensuring that the annual audited financial statements of the Group are prepared with reasonable
accuracy from the accounting records of the Group so as to give a true and fair view of the financial position of the Group as of 31
December 2020 and of their financial performance and cash flows for the year.
In reviewing the annual audited financial statements, the Directors have relied upon the Group’s system of internal controls to provide
reasonable grounds for the Directors to be certain of the Group’s accounting records, as well as other relevant records, have been
maintained by the Group in a manner that enables them to sufficiently conclude on the following:
a. Selected and applied the appropriate and relevant accounting policies on a consistent basis;
b. Made judgements and estimates that are reasonable and prudent; and
c. Prepared the annual audited financial statements on a going concern basis
The Directors are also responsible for taking reasonable steps to safeguard the assets of the Group to prevent and detect fraud and other
irregularities.
SECTION 6:
AUDITED FINANCIAL
STATEMENTS
106 Directors’ Report
110 Statement by Directors
110 Statutory Declaration
111 Independent Auditors’ Report
115 Statements of Comprehensive Income
116 Statements of Financial Position
117 Statements of Changes in Equity
118 Statements of Cash Flows
120 Notes to the Financial Statements
Directors’ Report
The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Company
for the financial year ended 31 December 2020.
Principal activities

The principal activity of the Company is investment holding.

The principal activities and other information relating to subsidiaries are disclosed in Note 15 to the financial statements.
Results

Group Company
RM'000 RM'000
Profit for the financial year, attributable to owners of the parent 1,220,969 1,275,791

There were no material transfers to or from reserves or provisions during the financial year, other than as disclosed in the financial
statements.
In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not
substantially affected by any item, transaction or event of a material and unusual nature.
Dividends

The dividends paid by the Company since the end of the previous financial year were as follows:
RM'000
In respect of the financial year ended 31 December 2019:

Fourth interim single-tier dividend of 4.4 sen per ordinary share, declared on 22 January 2020 and paid on
27 March 2020 342,100
In respect of the financial year ended 31 December 2020:

First interim single-tier dividend of 4.2 sen per ordinary share, declared on 23 April 2020 and paid on
26 June 2020 326,550
Second interim single-tier dividend of 3.7 sen per ordinary share, declared on 14 July 2020 and paid on
25 September 2020 287,675
Third interim single-tier dividend of 4.1 sen per ordinary share, declared on 16 October 2020 and paid on
17 December 2020 318,775

The board of directors had on 27 January 2021, declared a fourth interim single-tier dividend of 3.6 sen per ordinary share in respect of
the financial year ended 31 December 2020 amounting to RM279.9 million. The financial statements for the current financial year do not
reflect this fourth interim dividend. Such dividend will be accounted for in equity as an appropriation of retained earnings in the financial
year ending 31 December 2021.
Directors’ Report
Directors

The names of the directors of the Company in office since the beginning of the financial year to the date of this report are:
Haakon Bruaset Kjoel

Tan Sri Saw Choo Boon
Yasmin Binti Aladad Khan
Vimala A/P V.R. Menon
Lars Erik Tellmann
Randi Wiese Heirung (Appointed on 15 October 2020)
Wenche Marie Agerup (Appointed on 15 October 2020)
Torstein Pedersen (Resigned on 15 October 2020)
Anne Karin Kvam (Resigned on 15 October 2020)

The names of the directors of the subsidiaries of the Company since the beginning of the financial year to the date of this report, not
including those directors listed above are:
Albern A/L Murty

Inger Gloeersen Folkeson
Praveen Rajan A/L Nadarajan
Kesavan A/L Sivabalan (Appointed on 4 January 2021)
Eugene Teh Yee (Resigned on 1 September 2020)
Loh Keh Jiat (Resigned on 9 September 2020)

Directors’ benefits

Neither at the end of the financial year, nor at any time during that financial year, did there subsist any arrangement to which the Company
was a party, whereby the directors might acquire benefits by means of acquisition of shares in or debentures of the Company or any other
body corporate.
Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefits included
in the aggregate amount of emoluments received or due and receivable by the directors as shown below) by reason of a contract made
by the Company or a related corporation with any director or with a firm of which the director is a member, or with a company in which
the director has a substantial financial interest.
The directors’ benefits are as follows:

Group Company
RM’000 RM’000
Non-executive:
Fees 897 90
Benefits-in-kind 11 -
908 90
Directors’ Report
Indemnity and insurance for directors and officers

The Group maintains a directors’ and officers’ liability insurance for any legal liability incurred by the directors and officers in discharging
their duties while holding office for the Group and the Company. In respect of the above, the total amount of insurance premium paid
for the financial year ended 31 December 2020 was RM11,372 (2019: RM10,312). The directors and officers shall not be indemnified by
such insurance for any deliberate negligence, fraud, intentional breach of law or breach of trust proven against them.
Holding companies

The immediate and ultimate holding companies are Telenor Asia Pte Ltd and Telenor ASA, incorporated in Singapore and Norway
respectively. The ultimate holding company is listed on the Oslo Stock Exchange, Norway.
Directors’ interest

According to the register of directors’ shareholdings, the interest of directors in office at the end of the financial year in the shares of the
Company or its related corporations during the financial year were as follows:
Number of ordinary shares of NOK6 each

1 January
2020/date of 31 December
appointment Acquired Sold 2020
Ultimate holding company

Telenor ASA
Direct interest:
Haakon Bruaset Kjoel 17,022 1,662 - 18,684
Lars Erik Tellmann 24,992 8,777 - 33,769
Randi Wiese Heirung 1,448 - - 1,448
Wenche Marie Agerup 18,156 - - 18,156

None of the other directors in office at the end of the financial year had any interest in shares in the Company or its related corporations
during the financial year.
Other statutory information

(a) Before the statements of comprehensive income and statements of financial position of the Group and of the Company were made
out, the directors took reasonable steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance for
doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate allowance had been
made for doubtful debts; and
(ii) to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in
the ordinary course of business had been written down to an amount which they might be expected so to realise.
Directors’ Report
Other statutory information (CONT’D.)
(b) At the date of this report, the directors are not aware of any circumstances which would render:
(i) the amount written off for bad debts or the amount of the allowance for doubtful debts, in the financial statements of the
Group and of the Company, inadequate to any substantial extent; and
(ii) the values attributed to the current assets in the financial statements of the Group and of the Company misleading.

(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence to the
existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.
(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial
statements of the Group and of the Company which would render any amount stated in the financial statements misleading.
(e) As at the date of this report, there does not exist:

(i) any charge on the assets of the Group or of the Company which has arisen since the end of the financial year which secures
the liabilities of any other person; or
(ii) any material contingent liability of the Group or of the Company which has arisen since the end of the financial year.
(f) In the opinion of the directors:

(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months
after the end of the financial year which will or may affect the ability of the Group or of the Company to meet their obligations
as and when they fall due; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year
and the date of this report which is likely to affect substantially the results of the operations of the Group or of the Company
for the financial year in which this report is made.
Significant event

Details of significant event are disclosed in Note 34 to the financial statements.
Auditors

The auditors, Ernst & Young PLT, have expressed their willingness to continue in office.

The auditors’ remuneration for the statutory audit for the financial year ended 31 December 2020 for the Group and the Company are
RM638,000 and RM35,000 respectively.
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young PLT, as part of the terms of its audit
engagement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify
Ernst & Young PLT for the financial year ended 31 December 2020.
Signed on behalf of the board in accordance with a resolution of the directors dated 16 March 2021.

Tan Sri Saw Choo Boon Vimala A/P V.R. Menon

Director Director
Statement by Directors
Pursuant to Section 251(2) of the Companies Act 2016
We, Tan Sri Saw Choo Boon and Vimala A/P V.R. Menon, being two of the directors of Digi.Com Berhad, do hereby state that, in the
opinion of the directors, the accompanying financial statements set out on 115 to 180 are drawn up in accordance with Malaysian
Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia
so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2020 and of their financial
performance and cash flows for the financial year then ended.
Signed on behalf of the board in accordance with a resolution of the directors dated 16 March 2021.
Tan Sri Saw Choo Boon Vimala A/P V.R. Menon

Director Director
Statutory Declaration
Pursuant to Section 251(1)(b) of the Companies Act 2016
I, Ng Kim Chuan, being the officer primarily responsible for the financial management of Digi.Com Berhad, do solemnly and sincerely
declare that the accompanying financial statements set out on 115 to 180 are in my opinion correct, and I make this solemn declaration
conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by
the above-named Ng Kim Chuan at
Kuala Lumpur in Wilayah Persekutuan
on 16 March 2021 Ng Kim Chuan
(MIA 23311)
Before me,
Independent Auditors’ Report

to the members of Digi.Com Berhad (Incorporated in Malaysia)
Report on the audit of the financial statements

Opinion
We have audited the financial statements of Digi.Com Berhad, which comprise the statements of financial position as at 31 December
2020 of the Group and of the Company, and statements of comprehensive income, statements of changes in equity and statements
of cash flows of the Group and of the Company for the financial year then ended, and notes to the financial statements, including a
summary of significant accounting policies, as set out on 115 to 180.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company
as at 31 December 2020 and of their financial performance and their cash flows for the financial year then ended in accordance with
Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016
in Malaysia.
Basis for opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our
responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements
section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Independence and other ethical responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice)
of the Malaysian Institute of Accountants (“By-Laws”) and the International Code of Ethics for Professional Accountants (including
International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the
By-Laws and the IESBA Code.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements
of the Group and of the Company for the current year. We have determined that there are no key audit matters to communicate in our
report on the financial statements of the Company. The key audit matter for the audit of the financial statements of the Group is described
below. This matter was addressed in the context of our audit of the financial statements of the Group as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on this matter. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our report,
including in relation to this matter. Accordingly, our audit included the performance of procedures designed to respond to our assessment
of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed
to address the matter below, provide the basis for our audit opinion on the accompanying financial statements.
Accuracy of revenue recognition
Refer to Note 2.19.1(a) – Revenue Recognition (Telecommunication Revenue) and Note 5 – Revenue.
The Group relies on complex information technology system (including the rating module within the billing system) in accounting for its
telecommunication revenue. Such information system processes large volumes of data with a combination of different products, which
consist of individually low value transactions.
In addition, estimates and judgements were involved in allocating the transaction price between the multiple products and services sold
in bundled transactions.

Report on the audit of the financial statements (CONT’D.)
Key audit matters (cont’d.)
Accuracy of revenue recognition (cont’d.)
The above factors gave rise to higher risk of material misstatement in the timing and amount of telecommunication revenue recognised.
Accordingly, we identified revenue recognition to be an area of focus.
Our audit sought to place a high level of reliance on the Group’s information technology systems and key controls which management
relies on in recording telecommunication revenue. Our audit procedures included involving our information technology specialists to test
the operating effectiveness of automated controls over the billing system, including the rating module. We also tested the accuracy of
the data interface between the billing system and the general ledger and tested the non-automated controls in place to ensure accuracy
of revenue recognised, including timely updating of approved rate changes in the billing system.
We also performed substantive audit procedures which included amongst others, the testing of the reconciliation between the billing
system and the general ledger, including validating material manual journals processed and testing the unbilled revenue by comparing
such amount to the billings raised subsequent to the reporting period.
In respect of the allocation of transaction price between multiple products and services sold in bundled transactions, we obtained an
understanding of management’s basis of allocation in accordance with the identified performance obligations, evaluated management’s
estimate of standalone selling prices used in allocating the transaction price and tested the computation of revenue to be recognised in
respect of each product and service sold in bundled transactions.
Information other than the financial statements and auditors’ report thereon
The directors of the Company are responsible for the other information. The other information comprises the directors’ report and annual
report, but does not include the financial statements of the Group and of the Company and our auditors’ report thereon, which we
obtained prior to the date of this auditors’ report.
Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Group and of the
Company or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report, we conclude
that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial statements
The directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give
a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the
requirements of the Companies Act 2016 in Malaysia. The directors are also responsible for such internal control as the directors
determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements of the Group and of the Company, the directors are responsible for assessing the Group’s and
the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or the Company or to cease operations, or have no
realistic alternative but to do so.

Report on the audit of the financial statements (cont’d.)
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing
in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
(a) Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
(b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Company’s internal
control.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the directors.
(d) Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or
the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditors’ report to the related disclosures in the financial statements of the Group and of the Company or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditors’ report. However, future events or conditions may cause the Group or the Company to cease to continue as a going
concern.
(e) Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company, including
the disclosures, and whether the financial statements of the Group and of the Company represent the underlying transactions and
events in a manner that achieves fair presentation.
(f) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group
to express an opinion on the financial statements of the Group. We are responsible for the direction, supervision and performance
of the group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and
to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where
applicable, actions taken to eliminate threats or safeguards applied.

Report on the audit of the financial statements (CONT’D.)
Auditor’s responsibilities for the audit of the financial statements (cont’d.)
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the
financial statements of the Group and of the Company for the current financial year and are therefore the key audit matters. We describe
these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Other matters
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act 2016 in
Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.
Ernst & Young PLT Tseu Tet Khong @ Tsau Tet Khong
202006000003 (LLP0022760-LCA) & AF 0039 03374/06/2022 J
Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia
16 March 2021

Statements of Comprehensive Income

For the financial year ended 31 December 2020
Group Company
2020 2019 2020 2019
Note RM'000 RM'000 RM'000 RM'000
Revenue 5 6,152,747 6,297,358 1,275,000 1,446,000

Other income 19,048 16,304 907 1,235
Cost of materials and traffic expenses (1,538,639) (1,434,390) - -
Sales and marketing expenses (404,581) (453,961) - -
Operations and maintenance expenses (169,645) (112,623) - -
Rental expenses (21,485) (57,475) - -
Staff expenses 7(b) (242,099) (224,628) - -
Depreciation expenses (1,154,114) (1,124,874) - -
Amortisation expenses 12 (67,689) (72,425) - -
Other expenses (768,869) (727,224) (194) (1,488)
Finance costs 6 (212,547) (231,076) - -
Interest income 29,919 25,694 102 202
Operating model transition costs 7(d) - (8,359) - -
Profit before tax 7 1,622,046 1,892,321 1,275,815 1,445,949
Taxation 8 (401,077) (459,372) (24) (48)
Profit for the financial year, representing total
comprehensive income for the financial year 1,220,969 1,432,949 1,275,791 1,445,901
Attributable to:
Owners of the parent 1,220,969 1,432,949 1,275,791 1,445,901
Group
2020 2019
Earnings per share attributable to owners of the

parent (sen per share) 9 15.7 18.4
The accompanying accounting policies and explanatory information form an integral part of the financial statements.
Statements of Financial Position

As at 31 December 2020
Group Company
2020 2019 2020 2019
Note RM'000 RM'000 RM'000 RM'000
Non-current assets
Property, plant and equipment 11 2,883,143 2,852,110 - -
Intangible assets 12 248,036 305,986 - -
Right of use assets 13 3,031,878 2,595,088 - -
Investments in subsidiaries 15 - - 773,361 772,751
Other investment 16 78 78 - -
Trade and other receivables 18 344,538 427,565 - -
Contract costs 14 57,887 66,170 - -
Contract assets 5 28,886 26,661 - -
Derivative financial assets 19 61,728 18,605 - -
6,656,174 6,292,263 773,361 772,751
Current assets
Inventories 17 137,207 90,501 - -
Trade and other receivables 18 972,387 1,220,923 4 4
Contract assets 5 66,437 79,590 - -
Income tax recoverable 51,676 8,448 - -
Cash and short-term deposits 20 302,853 457,716 250 828
1,530,560 1,857,178 254 832
Total assets 8,186,734 8,149,441 773,615 773,583
Non-current liabilities
Loans and borrowings 21 4,677,523 4,461,043 - -
Deferred tax liabilities 22 268,927 217,628 - -
Other liabilities 23 120,255 53,295 - -
5,066,705 4,731,966 - -
Current liabilities
Trade and other payables 24 1,432,986 1,784,308 729 1,380
Contract liabilities 5 306,283 283,572 - -
Derivative financial liabilities 19 394 419 - -
Other liabilities 23 - 420 - -
Loans and borrowings 21 774,510 688,756 - -
Income tax payable - 13 5 13
2,514,173 2,757,488 734 1,393
Total liabilities 7,580,878 7,489,454 734 1,393
Equity
Share capital 25 769,655 769,655 769,655 769,655
(Accumulated losses)/retained earnings 27 (163,799) (109,668) 3,226 2,535
Total equity 605,856 659,987 772,881 772,190
Total equity and liabilities 8,186,734 8,149,441 773,615 773,583
Statements of Changes in Equity

Attributable to owners of the parent

Accumulated
losses/
distributable
Share retained
capital earnings Total
RM’000 RM’000 RM’000
Note (Note 27)
Group
At 1 January 2019 769,655 (96,467) 673,188
Total comprehensive income - 1,432,949 1,432,949
Transaction with owners:
Dividends on ordinary shares 10 - (1,446,150) (1,446,150)
At 31 December 2019 769,655 (109,668)1 659,987
At 31 December 2020 769,655 (163,799) 1
605,856
Company
At 1 January 2019 769,655 2,784 772,439
At 31 December 2019 769,655 2,535 772,190
At 31 December 2020 769,655 3,226 772,881
Note: 1 In the previous financial years, as part of the Group’s capital management initiatives, the Company received dividends in specie from its subsidiary, Digi
Telecommunications Sdn. Bhd. (“DTSB”), in the form of bonus issue of redeemable preference shares and capital repayment by DTSB amounting to RM509.0 million
and RM495.0 million respectively. The Company has declared part of these as special dividend to its shareholders. The deficit arose from the elimination of these intra-
group dividends at Group level.
Statements of Cash Flows

Group Company
2020 2019 2020 2019
Note RM'000 RM'000 RM'000 RM'000
Cash flows from operating activities

Profit before tax 1,622,046 1,892,321 1,275,815 1,445,949
Adjustments for:
Amortisation of intangible assets 12 67,689 72,425 - -
Depreciation
- property, plant and equipment 11 678,447 693,643 - -
- right of use assets 13 475,667 431,231 - -
Allowance for expected credit loss on trade
receivables and contract assets 31.2 81,588 77,660 - -
Amortisation of contract cost 14 87,199 103,020 - -
Inventories written down 212 3,104 - -
Dividend income - - (1,275,000) (1,446,000)
Finance costs 6 212,547 231,076 - -
Loss on disposal of property, plant and
equipment 2,604 15 - -
Gain on termination of lease (72) (57) - -
Write-off of property, plant and equipment 50,708 625 - -
Write-off of intangible assets 120 53 - -
Interest income (29,919) (25,694) (102) (202)
Reversal of provision for employee leave
entitlements 23.1 (161) (4,953) - -
Waiver of debt - - (907) (1,235)
Employee benefits
- share-based payment 1,871 367 - -
- defined benefit plan 26 93 70 - -
Fair value (gain)/loss on foreign currency forward
contracts (25) 118 - -
Unrealised foreign exchange gain (259) (1,722) - -
Operating cash flows before changes in working
capital 3,250,355 3,473,302 (194) (1,488)
Changes in working capital:
Inventories (46,918) (32,470) - -
Trade and other receivables 126,184 (358,565) - -
Contract asset 8,786 71,764 - -
Contract costs (78,916) (98,060) - -
Trade and other payables (353,193) (373,903) 256 1,544
Contract liabilities 22,711 (31,814) - -
Cash flows from operations 2,929,009 2,650,254 62 56
Advance payment for bandwidth (10,872) (57,881) - -
Interest paid (246,989) (234,311) - -
Proceeds from government grants 154,263 278,572 - -
Payments for provisions 23.1 (334) (93) - -
Taxes paid (393,019) (574,899) (32) (56)
Net cash flows from operating activities 2,432,058 2,061,642 30 -
Statements of Cash Flows

Group Company
2020 2019 2020 2019
Note RM'000 RM'000 RM'000 RM'000
Cash flows from investing activities

Purchase of property, plant and equipment (617,980) (696,708) - -
Purchase of intangible assets (102,249) (54,004) - -
Additional investment in a subsidiary - - (610) -
Dividends received from a subsidiary 5 - - 1,275,000 1,446,000
Interest received 11,617 24,781 102 202
Proceeds from disposal of property, plant and
equipment 110 612 - -
Net cash flows (used in)/from investing activities (708,502) (725,319) 1,274,492 1,446,202
Cash flows from financing activities

Repayment of loans and borrowings (375,000) (587,500) - -
Drawdown of loans and borrowings 150,000 - - -
Proceeds from issuance of Sukuk Programme - 1,000,000 - -
Payment of lease liabilities (379,422) (278,427) - -
Dividends paid 10 (1,275,100) (1,446,150) (1,275,100) (1,446,150)
Net cash flows used in financing activities (1,879,522) (1,312,077) (1,275,100) (1,446,150)
Net (decrease)/increase in cash and cash

equivalents (155,966) 24,246 (578) 52
Effect of exchange rate changes on cash and
cash equivalents 1,103 352 - -
Cash and cash equivalents at beginning of
financial year 457,716 433,118 828 776
Cash and cash equivalents at end of financial
year 20 302,853 457,716 250 828
Notes to the Financial Statements

- 31 December 2020
1. Corporate information

The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Market of
Bursa Malaysia Securities Berhad ("Bursa Securities"). The principal place of business is located at Lot 10, Jalan Delima 1/1,
Subang Hi-Tech Industrial Park, 40000 Subang Jaya, Selangor Darul Ehsan. The registered office of the Company is located at 12th
Floor, Menara Symphony, No. 5, Jalan Professor Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor.
The immediate and ultimate holding companies are Telenor Asia Pte Ltd and Telenor ASA, incorporated in Singapore and Norway
respectively. The ultimate holding company is listed on the Oslo Stock Exchange, Norway.
The principal activity of the Company is investment holding, whilst the principal activities of the subsidiaries are stated in Note 15.
There has been no significant change in the nature of the principal activities during the financial year.
Related companies refer to companies within the Telenor Asia Pte Ltd and Telenor ASA group of companies.
2. Significant accounting policies

2.1 Basis of preparation

The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial
Reporting Standards ("MFRS"), International Financial Reporting Standards and the requirements of the Companies Act
2016 in Malaysia.
The financial statements of the Group and of the Company have been prepared on the historical cost convention unless
indicated otherwise in the accounting policies below.
The financial statements are presented in Ringgit Malaysia ("RM") and all values are rounded to the nearest thousand
("RM'000") except when otherwise indicated.
2.2 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the
reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated financial statements
are prepared for the same reporting date as the Company. Consistent accounting policies are applied for like transactions
and events in similar circumstances.
The Company controls an investee if, and only if, the Company has all the following:

(i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and

(iii) The ability to use its power over the investee to affect its returns.

Subsidiaries are consolidated when the Company obtains control over the subsidiary and ceases when the Company loses
control of the subsidiary. All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-
group transactions are eliminated in full.
Losses within a subsidiary are attributed to the non-controlling interests even if that results in a deficit balance.

- 31 December 2020
2. Significant accounting policies (CONT’D.)
2.2 Basis of consolidation (cont’d.)
Business combinations

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-
controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling
interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related
costs are expensed as incurred and included in administrative expenses.
The Group determines that it has acquired a business when the acquired set of activities and assets include an input and a
substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered
substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organised workforce
with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to
continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay
in the ability to continue producing outputs.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification
and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the
acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date.
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.
Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of MFRS 9
Financial Instruments, is measured at fair value with the changes in fair value recognised in the statement of profit or loss in
accordance with MFRS 9. Other contingent consideration that is not within the scope of MFRS 9 is measured at fair value at
each reporting date with changes in fair value recognised in profit or loss.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date.
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.
Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of MFRS 9
Financial Instruments, is measured at fair value with the changes in fair value recognised in the statement of profit or loss in
accordance with MFRS 9. Other contingent consideration that is not within the scope of MFRS 9 is measured at fair value at
each reporting date with changes in fair value recognised in profit or loss.
2.3 Investment in subsidiaries

In the Company’s separate financial statements, investment in subsidiaries are accounted for at cost less impairment losses.
On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is included in
profit or loss.
2.4 Property, plant and equipment, and depreciation

All items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and equipment
is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the
Group and the cost of the item can be measured reliably.

- 31 December 2020
2.4 Property, plant and equipment, and depreciation (cont’d.)
Subsequent to recognition, property, plant and equipment, except for freehold land and capital work-in-progress, are
measured at cost less accumulated depreciation and accumulated impairment losses, if any. The cost of an item includes
expenditure that is attributable to the acquisition of the item. Subsequent costs are included in the asset's carrying amount
or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the
item will flow to the Group and the cost of the item can be measured reliably. When significant parts of property, plant and
equipment are required to be replaced in intervals, the Group recognises such parts as individual assets with specific useful
lives and depreciation, respectively. The carrying amount of the replaced part is then derecognised. Likewise, when a major
inspection is performed, its cost is recognised in the carrying amount of the asset as a replacement if the recognition criteria
are satisfied. All other repair and maintenance costs are recognised in profit and loss as incurred.
Freehold land has an unlimited useful life and is therefore not depreciated. Capital work-in-progress representing assets
under construction, is also not depreciated as these assets are not yet available for its intended use. Depreciation of other
property, plant and equipment is computed on a straight-line basis to write down the cost of each asset to its residual value
over the estimated useful life, at the following annual rates or periods:
Buildings 2.0%
Motor vehicles 20.0%
Computer systems 20.0% - 33.3%
Furniture and fittings 20.0%
Telecommunications network 3.3% - 33.3%

The residual values, useful lives and depreciation method are reviewed at each financial year end, and adjusted prospectively,
if appropriate, to ensure that the amount, method and period of depreciation are consistent with the expected pattern of
consumption of the future economic benefits embodied in the items of property, plant and equipment.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances
indicate that the carrying value may not be recoverable.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising from the difference between the net disposal proceeds, if any, and the net
carrying amount is recognised in profit and loss in the financial year the asset is derecognised.
2.5 Intangible assets

Intangible assets acquired separately are initially measured at cost. Following initial recognition, intangible assets are
measured at cost less accumulated amortisation and accumulated impairment losses, if any. The useful lives of intangible
assets are assessed to be either finite or indefinite.
Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for impairment whenever
there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method are
reviewed at least during each financial year end. Changes in the expected useful life or the expected pattern of consumption
of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as
appropriate, and are treated prospectively as changes in accounting estimates. The amortisation expense on intangible
assets with finite lives is recognised in profit and loss.
Intangible assets not yet available for use are tested for impairment annually, or more frequently if events and circumstances
indicate that the carrying value may be impaired either individually or at the cash generating unit ("CGU") level. Such intangible
assets are not amortised.

- 31 December 2020
2.5 Intangible assets (cont’d.)
Any gain or loss arising from derecognition of an intangible asset is measured as the difference between the net disposal
proceeds and the carrying amount of the asset, and is recognised in profit and loss when the asset is derecognised.
Computer software

Costs incurred to acquire computer software, that are not an integral part of the related hardware, are capitalised as intangible
assets and amortised on a straight-line basis over the estimated useful life of 5 years.

2.6 Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets to determine whether there is any
indication of impairment. If any such indication exists, impairment is measured by comparing the carrying amounts of the
assets with their recoverable amounts.

For intangible assets not yet available for use, the recoverable amount is estimated at the end of each reporting period, or
more frequently if events and circumstances indicate that the carrying value may be impaired either individually or at the cash
generating unit ("CGU") level.
An asset’s recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. For the purpose of
assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows, namely
a CGU.
In assessing value in use, the estimated future cash flows expected to be generated by the asset are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. Where the carrying amount of an asset exceeds its recoverable amount, the asset is written down to its
recoverable amount. Impairment losses recognised in respect of a CGU or groups of CGUs are allocated first to reduce the
carrying amount of any goodwill allocated to those units or groups of units, if any and then, to reduce the carrying amount of
the other assets in the unit or groups of units on a pro-rata basis.
An impairment is recognised whenever the carrying amount of an asset or CGU exceeds its recoverable amount, and the
impairment loss is recognised as an expense in profit and loss in the period in which it arises.
An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. A previously recognised impairment loss is reversed if, and only if there
has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was
recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increase cannot
exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised
previously. Such reversal is recognised in profit or loss.
2.7 Inventories

Inventories are stated at lower of cost and net realisable value. Cost is determined using the weighted average basis. The
cost of trading merchandise comprises costs of purchases and other incidental costs incurred in bringing these merchandise
to their present condition and location.

- 31 December 2020
2. Significant accounting policies (cont'd.)

2.7 Inventories (cont'd.)

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to
make the sale.
2.8 Financial assets

2.8.1 Initial recognition and measurement

Financial assets are classified, at initial recognition as, subsequently measured at amortised cost, fair value through
other comprehensive income ("OCI"), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Group’s and Company's business model for managing them. The Group and the Company
initially measure a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit
or loss, transaction costs except for trade receivables that do not contain a significant financing component. Trade
receivables that do not contain a significant financing component are measured at the transaction price determined
under MFRS 15.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give
rise to cash flows that are ‘solely payments of principal and interest ("SPPI")’ on the principal amount outstanding. This
assessment is referred to as the SPPI test and is performed at an instrument level.
The Group’s and the Company's business model for managing financial assets refer to how the financial assets are
managed in order to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or
convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group
commits to purchase or sell the asset.
2.8.2 Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:
- Financial assets at amortised cost (debt instruments)
- Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
- Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)
- Financial assets at fair value through profit or loss

- 31 December 2020
2. Significant accounting policies (cont’d.)

2.8 Financial assets (cont’d.)
2.8.2 Subsequent measurement (cont’d.)
The Group and the Company do not have any debt instruments at fair value through OCI with recycling of cumulative
gains and losses.
(a) Financial assets at amortised cost (debt instruments)

This category is the most relevant to the Group and the Company. The Group and the Company measure financial
assets at amortised cost if both of the following conditions are met:
- The financial asset is held within a business model with the objective to hold financial assets in order to
collect contractual cash flows; and
- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest ("EIR") method and are
subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified
or impaired.
The Group’s and the Company's financial assets at amortised cost includes trade and other receivables and cash
and short-term deposits.
(b) Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the definition of equity under MFRS 132 Financial
Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by
instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other
income in the profit or loss when the right of payment has been established, except when the Group benefits from
such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in
OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.
The Group elected to classify irrevocably its non-listed equity investments under this category.
(c) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to
be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Derivatives are classified as held for trading unless they are designated
as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal
and interest are classified and measured at fair value through profit or loss, irrespective of the business model.
Notwithstanding the criteria for debt instruments to be classified at amortised cost or at fair value through OCI,
as described above, debt instruments may be designated at fair value through profit or loss on initial recognition
if doing so eliminates, or significantly reduces, an accounting mismatch.


- 31 December 2020

2.8 Financial assets (cont'd.)

2.8.2 Subsequent measurement (cont'd.)

(c) Financial assets at fair value through profit or loss (cont'd.)

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value
with net changes in fair value recognised in the profit or loss.

This category includes derivative instruments such as foreign currency forward contracts and interest rate swaps.
Derivative instruments are carried as financial assets when the fair value is positive and as financial liabilities when
the fair value is negative.
2.8.3 Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e., removed from the Group’s and Company's statement of financial position) when:
- The rights to receive cash flows from the asset have expired; or
- The Group and the Company have transferred their rights to receive cash flows from the asset or have assumed
an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either (a) the Group and the Company have transferred substantially all the risks and rewards
of the asset, or (b) the Group and the Company have neither transferred nor retained substantially all the risks and
rewards of the asset, but have transferred control of the asset.
When the Group and the Company have transferred their rights to receive cash flows from an asset or have entered into
a pass-through arrangement, the Group and the Company evaluate if, and to what extent, they have retained the risks
and rewards of ownership. When they have neither transferred nor retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the Group and the Company continue to recognise the transferred asset
to the extent of its continuing involvement. In that case, the Group and the Company also recognise an associated
liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations
that the Group and the Company have retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Group and the Company
could be required to repay.
2.9 Impairment of financial assets and contract assets

The Group recognises an allowance for expected credit losses ("ECLs") for all debt instruments not held at fair value
through profit or loss and contract assets. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the
original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next
12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since
initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective
of the timing of the default (a lifetime ECL).

- 31 December 2020

2.9 Impairment of financial assets and contract assets (cont’d.)
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group
does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-
looking factors specific to the category of debtors and the economic environment.
The Group considers a financial asset in default when contractual payments are overdue for more than 60 days. However, in
certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates
that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit
enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the
contractual cash flows.
2.10 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and at banks and deposits with licensed banks with a maturity of three
months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value. These also include bank overdrafts, if any, that form an integral part of the Group's cash management.
Interest income is recognised in profit or loss by applying the effective interest rate to the gross carrying amount of the
financial assets.
2.11 Provision for liabilities

Provisions for liabilities are recognised when the Group has a present obligation as a result of a past event and it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of
the amount can be made.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer probable
that an outflow of economic resources will be required to settle the obligation, the provision is reversed. Where the effect of
the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate,
the risks specific to the liability to the present value of the expenditure expected to be required to settle the obligation. When
discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
(a) Employee leave entitlements
Employees' entitlement to annual leave are recognised when the associated services performed by employees increase
their entitlements to annual leave. A provision is made for the estimated liability for the annual leave as a result of
services rendered by employees up to the end of the reporting period netted off against annual leave utilised to date.
(b) Site decommissioning and restoration costs

Provision for site decommissioning and restoration costs is in respect of management's best estimate on the costs
necessary to be incurred to decommission the Group's telecommunications network infrastructure and restore the
previously occupied sites.
The estimated amount is determined after taking into consideration the time value of money, and the initial estimated
sum is capitalised as part of the cost of property, plant and equipment. Where discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.

- 31 December 2020
2.11 Provision for liabilities (cont’d.)
(c) Defined benefit plan

Provision for defined benefit plan for eligible employees is as disclosed in Note 2.16(c).

2.12 Financial liabilities

2.12.1 Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs.
The Group’s and the Company's financial liabilities include derivative financial instruments and other financial liabilities.
2.12.2 Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:
(a) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as financial liabilities at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. This category also includes derivative financial instruments entered into by the Group that are not
designated as hedging instruments in hedge relationships as defined by MFRS 9.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the
initial date of recognition, and only if the criteria in MFRS 9 are satisfied. This category includes derivative
instruments such as foreign currency forward contracts and interest rate swaps.
(b) Other financial liabilities

The Group's and the Company's other financial liabilities include trade and other payables, and loans and
borrowings.
After initial recognition, trade and other payables and interest-bearing loans and borrowings are subsequently
measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the
liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the profit or loss.
This category generally applies to interest-bearing loans and borrowings and trade and other payables. For
more information, refer to Note 21 and Note 24.

- 31 December 2020

2.12 Financial liabilities (cont'd.)

2.12.3 Derecogniton

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition
of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is
recognised in profit or loss.
2.12.4 Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statements of financial position
if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.
2.13 Borrowing costs

Borrowing costs are recognised in profit and loss as an expense in the period in which they are incurred.
Borrowing costs consist of interest and other costs that the Group incurred in connection with the borrowing of funds.
2.14 Share capital and share issuance expenses

An equity instrument is any contract that evidences a residual interest in the assets of the Group and of the Company after
deducting all of their liabilities. Ordinary shares are equity instruments.
The attributable incremental transaction costs of an equity transaction are accounted for as a deduction from equity, net of
tax. Dividends on ordinary shares are recognised in equity in the period in which they are declared.
2.15 Leases

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right
to control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of
low-value assets. The Group recognises lease liabilities to make lease payments and right of use ("ROU") assets representing
the right to use the underlying assets.
(a) ROU assets

The Group recognises ROU assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). ROU assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The cost of ROU assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any
lease incentives received.
The Group elected to apply the practical expedient not to separate out non-lease components from lease components
and instead account for the lease and non-lease component as a single component.

- 31 December 2020
2.15 Leases (cont’d.)
Group as a lessee (cont’d.)
(a) ROU assets (cont’d.)

ROU assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of
the assets, as follows:

Leasehold land and buildings 1% - 3%
Telecommunication network sites 10% - 33%
Transmission facilities 10% - 20%
Spectrum bandwidths 6.3% - 66.7%
Stores, office buildings and kiosks 33.3%

The ROU assets are also subject to impairment. Refer to Note 2.6 for accounting policy on impairment of non-financial
assets.
(b) Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed
payments) less any lease incentives receivable and payments of penalties for terminating the lease, if the lease term
reflects the Group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate
and are dependant on a future activity are recognised as expenses in the period in which the event or condition that
triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification or a change in the lease
term.
The Group’s lease liabilities are included in loans and borrowings. Please refer to Note 21.
(c) Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases of telecommunication network
sites, equipment and billboard spaces (i.e., those leases that have a lease term of 12 months or less from the
commencement date). It also applies the lease of low-value assets recognition exemption to leases of office equipment
and storage spaces that are considered to be low value. Lease payments on short-term leases and leases of low value
assets are recognised as an expense on a straight-line basis over the lease term.
Group as a lessor

Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are
classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is
included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and
arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the
same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

- 31 December 2020

2.16 Employee benefits

(a) Short-term benefits

Wages, salaries, bonuses and social security contributions are recognised as an expense in the period in which the
associated services are rendered by employees. Short-term accumulated compensated absences such as paid annual
leave are recognised when services are rendered by employees that increase their entitlement to future compensated
absences netted off against annual leave utilised to date, and short-term non-accumulating compensated absences
such as sick leave are recognised when the absences occur.
(b) Defined contribution plan

As required by law, companies in Malaysia make contributions to the state-defined contribution pension scheme known
as the Employee Provident Fund, and will have no legal or constructive obligation to make further contributions in the
future, over-and-above what is existingly legally required. The contributions are recognised as an expense in profit and
loss in the period which the related services are rendered by employees.
(c) Defined benefit plan

The Group operates an unfunded defined benefit plan for its eligible employees. The benefits are calculated
based on the length of service and the agreed percentages of eligible employees' salaries over the period of their
employment and are payable upon resignation after completion of the minimum employment period of ten years
or upon retirement age of sixty years. The Group's obligations under the retirement benefit scheme, calculated
using the Projected Unit Credit Method, is determined based on actuarial computations by independent
actuaries, through which the amount of benefit that employees have earned in return for their service in
the current and prior years is estimated. That benefit is discounted in order to determine its present value.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in other
comprehensive income in the period in which they occur and recorded in defined benefit reserve. Remeasurements are
not reclassified to profit and loss in subsequent periods.
Past service costs are recognised in profit and loss on the earlier of:

- The date of the plan amendment or curtailment; or

- The date that the Group recognises restructuring related costs.
Net interest and other expenses relating to defined benefit plans are calculated by applying the discount rate to the net
defined benefit liability or asset and recognised in profit and loss.
The Group amended the defined benefit plan effective 1 January 2006 to restrict new entrants into the plan, and the
benefits payable to be calculated based on the employees' length of service up to 31 December 2005.

- 31 December 2020

2.17 Income taxes

(a) Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted
by the reporting date.
Current taxes are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit
or loss, either in other comprehensive income or directly in equity.
(b) Deferred tax

Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all taxable temporary differences, and deferred tax assets are recognised for
all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences, and the carry forward
of unused tax credits and unused tax losses can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset
is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at
the reporting date.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
(c) Sales and Services Tax ("SST")

SST is recognised as part of the expense or cost of acquisition of the asset as SST is not recoverable.
Revenue is recognised net of the amount of SST billed as it is payable to the taxation authority. SST payable to the
taxation authority is included as part of payables in the statements of financial position.
2.18 Contingencies

A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of uncertain future event(s) not wholly within the control of the Group.
Contingent liabilities and assets are not recognised in the financial statements.


- 31 December 2020

2.19 Revenue recognition

2.19.1 Revenue from contracts with customers

The Group is in the business of providing telecommunication and related services.

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those
goods or services, net of indirect taxes.
The Group has generally concluded that it is the principal in its revenue arrangements because it typically controls the
goods or services before transferring them to the customer.
(a) Telecommunication revenue

Telecommunication revenue from postpaid and prepaid services provided by the Group are recognised
over time, as the benefits of telecommunication services are simultaneously received and consumed by the
customer.
Revenue from prepaid services (i.e. preloaded talk time, prepaid top-up vouchers, etc.) are recognised when
services are rendered. Consideration from the sale of prepaid sim cards and reload vouchers to customers
where services have not been rendered at the reporting date is deferred as contract liability until actual usage
or when the cards, vouchers or reloaded amounts are expired or forfeited.
Postpaid services are provided in postpaid packages which consists of various services (i.e. call minutes,
internet data, sms, etc.). These postpaid packages have been assessed to meet the definition of a series of
distinct services that are substantially the same and have the same pattern of transfer and as such the Group
treats these packages as a single performance obligation.
Postpaid packages are either sold separately or bundled together with the sale of a mobile device to a
customer. Mobile devices can also be obtained separately from other mobile device retailers and can be used
together with the postpaid packages provided by the Group. Postpaid packages and mobile devices are
capable of being distinct and separately identifiable, therefore, there are two performance obligations within a
bundled transaction. Accordingly, the Group allocates the transaction price based on the relative stand-alone
selling prices of the postpaid packages and device.
Stand-alone selling price are based on observable sales prices; however, where stand-alone selling
prices are not directly observable, estimates will be made maximising the use of observable inputs.
(b) Sale of device

Revenue from sale of device is recognised at the point in time when control of the asset is transferred to the
customer, usually on delivery and acceptance of the device.


- 31 December 2020

2.19 Revenue recognition (cont'd.)

2.19.1 Revenue from contracts with customers (cont'd.)

(b) Sale of device (cont'd.)

Payment for the transaction price of the mobile device is typically collected at the point the customer signs up
for the bundled contract, except for bundled packages that have a payment structure allowing customers to
pay for the mobile device over a period of time. For these arrangements the Group discounts the transaction
price using the rate that would be reflected in a separate financing transaction between the Group and its
customers at contract inception, to take into consideration the significant financing component.
Certain bundled contracts provide the customer with a right to return the mobile devices during a specified
time frame. The Group uses the expected value method to estimate the mobile devices that will not be returned
because this method best predicts the amount of variable consideration to which the Group will be entitled.
The requirements in MFRS 15 on constraining estimates of variable consideration are also applied in order
to determine the amount of variable consideration that can be included in the transaction price. For mobile
devices that are expected to be returned, the Group adjusts revenue and recognises a refund liability instead.
Correspondingly, costs of sales is also adjusted and a right of return asset is recognised as the right to recover
the mobile device from the customer.
(c) Contract balances

(i) Contract assets

A contract asset is the right to consideration in exchange for goods or services (i.e. mobile devices
or telecommunication services) transferred to the customer. If the Group transfers goods or services
to a customer before the customer pays consideration or before payment is due, a contract asset is
recognised for the earned consideration that is conditional.
Contract assets are subject to impairment assessment based on the ECL model.
(ii) Trade receivables

A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e.
only the passage of time is required before payment of the consideration is due). Refer to accounting
policies of financial assets in Note 2.8.
(iii) Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Group
has received consideration (or an amount of consideration is due) from the customer. If a customer
pays consideration before the Group transfers goods or services to the customer, a contract liability is
recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities
are recognised as revenue when the Group performs under the contract.
For prepaid services, a contract liability is recognised when consideration is received from a customer,
but services are yet to be performed.

- 31 December 2020

2.19 Revenue recognition (cont’d.)

2.19.1 Revenue from contracts with customers (cont’d.)

(d) Cost to obtain a contract

The Group pays sales commissions to external sales channels and employees as an incentive for each new
customer registration to the Group’s telecommunication services. Sales commissions have been determined
to be an incremental cost of obtaining a contract and are capitalised as contract costs when the Group
expects these costs to be recovered over a period of more than one year.
Contract costs are amortised on a straight-line basis over the expected customer life cycle, which is consistent
with the pattern of the related revenue. For contract costs with an amortisation period of less than one year,
the Group has elected to apply the practical expendient to recognise as an expense when incurred.

Amortisation of contract costs are included as part of operating expenses in the profit or loss, based on the
nature of commission costs, and not under amortisation expenses.
The Group recognises an impairment loss in profit or loss to the extent that the carrying amount of the
contract costs recognised exceeds the remaining amount of consideration that the Group expects to receive
in exchange for the goods or services to which the contract costs relate, less the remaining costs that relate
directly to providing those goods or services (that have not been recognised as an expense).
When there are indications of impairment, relating to the CGU to which the contract costs belong, the Group
will include the resulting carrying amount of contract costs after performing the impairment test above, in the
carrying amount of the CGU for the purpose of applying MFRS 136.
When impairment conditions no longer exist or have improved, the Group will recognise a reversal of some
or all of the impairment losses previously recognised on the contract costs. The increased carrying amount of
the contract costs should not exceed the amount that would have been determined (net of amortisation) had
no impairment loss been recognised previously.
2.19.2 Dividend income

Dividend income is recognised when the Company's right to receive payment is established, and is presented as
revenue in profit or loss, aligned with the principal activity of the Company as an investment holding entity.
2.19.3 Lease income

Lease income is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement
of profit or loss due to its operating nature. The aggregate costs of incentives provided to lessees are recognised as
a reduction of rental income over the lease term on a straight-line basis.

- 31 December 2020

2.20 Government grants

As a universal service provider ("USP"), the Group is entitled to claim certain qualified expenses from the Malaysian
Communications and Multimedia Commission ("MCMC") in relation to USP projects. These claims are treated as government
grants and recognised at their fair values where there is reasonable assurance that the grants will be received and the Group
complies with all the attached conditions.
A grant relating to the asset is recognised as income over the life of the depreciable asset by way of a reduced depreciation
charge. Grant relating to income is recognised in profit and loss by crediting directly against the related expense.
2.21 Foreign currency transactions

(a) Functional and presentation currency

The individual financial statements of each entity in the Group are measured using the currency of the primary economic
environment in which the entity operates ("the functional currency"). The consolidated financial statements of the
Group are presented in RM, which is also the functional currency of all entities in the Group.
Transactions in foreign currencies are initially converted into RM at exchange rates prevailing at the date of transaction.
At each reporting date, foreign currency monetary items are translated into RM at exchange rates prevailing at that
date. Non-monetary items initially denominated in foreign currencies, which are carried at historical cost are translated
using the historical rate as of the date of acquisition.
(b) Foreign currency transactions

Exchange differences arising on the settlement of monetary items or on translating monetary items at the reporting
date are recognised in profit or loss. Exchange differences arising on the translation of non-monetary items carried
at fair value are included in profit or loss for the period except for the differences arising on the translation of non-
monetary items in respect of which gains and losses are recognised directly in other comprehensive income. Exchange
differences arising from such non-monetary items are also recognised directly in other comprehensive income.

2.22 Fair value measurement

The Group measures financial instruments such as derivatives at fair value at each reporting date. The fair values of financial
instruments measured at amortised cost are disclosed in Note 31.6.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:
(i) In the principal market for the asset or liability; or

(ii) In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.

- 31 December 2020
2.22 Fair value measurement (cont’d.)

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as
a whole:
(i) Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
(ii) Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable
(iii) Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether
transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that
is significant to the fair value measurement as a whole) at the end of each reporting period.
2.23 Current versus non-current classification

The Group presents assets and liabilities in statements of financial position based on current/non-current classification. An
asset is current when it is:
- Expected to be realised or intended to be sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading;

- Expected to be realised within twelve months after the reporting period; or

- Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period.
All other assets are classified as non-current. A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period; or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.
The Group classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

- 31 December 2020
2.24 Segment reporting

The Group provides telecommunication and related services to customers across the country and its services and products
essentially have a similar risk profile. Business activities of the Group are not organised by product or geographical
components and its operating result is reviewed as a whole by its management. Accordingly, there is no separate segment,
as disclosed in Note 33.
3. Changes in accounting policies

3.1 Adoption of new and amended MFRSs and interpretation

The accounting policies adopted are consistent with those of the previous financial year except as follows:
On 1 January 2020, the Group and the Company adopted the following amended MFRSs mandatory for annual financial
periods beginning on or after 1 January 2020.
Effective for
annual periods
beginning
Description on or after
Amendments to MFRS 3: Definition of a Business 1 January 2020

Amendments to MFRS 101 and MFRS 108: Definition of Material 1 January 2020
Amendments to MFRS 9, MFRS 139 and MFRS 7: Interest Rate Benchmark Reform 1 January 2020
Amendments to MFRS 16: Covid-19-related rent concessions 1 June 2020

The adoption of the above standards did not have any significant effect on the financial statements of the Group and the
Company.

- 31 December 2020
3. Changes in accounting policies (cont’d.)
3.2 Standards issued but not yet effective

The standards that are issued but not yet effective up to the date of issuance of the Group's and the Company’s financial
statements are disclosed below. The Group and the Company intend to adopt these standards, if applicable, when they
become effective.
Effective for
annual periods
beginning
Description on or after
Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16: Interest Rate Benchmark Reform
- Phase 2 1 January 2021
Amendments to MFRS 1, MFRS 9 and MFRS 141: Annual Improvements to MFRS Standards 2018-2020 1 January 2022
Amendments to MFRS 3: Reference to the Conceptual Framework 1 January 2022
Amendments to MFRS 116: Property, Plant and Equipment-Proceeds before Intended Use 1 January 2022
Amendments to MFRS 137: Onerous Contracts - Cost of Fulfilling a Contract 1 January 2022
Amendments to MFRS 101: Classification of Liabilities as Current or Non-current 1 January 2023
MFRS 17: Insurance Contracts 1 January 2023
Amendments to MFRS 17: Insurance Contracts 1 January 2023
Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture Deferred

The directors expect that the adoption of the above standards will not have a material impact on the financial statements in
the period of initial application.
4. Significant accounting estimates and judgements and key sources of estimation uncertainty
There were no significant judgements made in applying the accounting policies of the Group which may have significant effects on
the amounts recognised in the financial statements.
Management makes key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year.
The following represents a summary of the critical accounting estimates and the associated key sources of estimation uncertainty.

4.1 Useful lives of property, plant and equipment and intangible assets

Depreciation and amortisation are based on management's estimates of the future estimated useful lives and residual
values of property, plant and equipment and intangible assets. Estimates may change due to technological developments,
modernisation initiatives, expected level of usage, competition, market conditions and other factors, which could potentially
impact the average useful lives and the residual values of these assets. This may result in future changes in the estimated
useful lives and in the depreciation or amortisation expenses. A 5.0% difference in the expected useful lives of these assets
from management's estimates would result in approximately 1.6% (2019: 2.7%) variance in the Group's profit for the year.
The carrying amounts of property, plant and equipment and intangible assets at the reporting date are disclosed in Note 11
and Note 12, respectively.

- 31 December 2020
4. Significant accounting estimates and judgements and key sources of estimation uncertainty (cont’d.)
4.2 Provision for expected credit losses of trade receivables and contract assets

The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
based on days past due for groupings of various customer segments that have similar loss patterns (i.e. customer type and
rating).
The provision matrix is initially based on the Group’s historical observed default rates. The Group then adjusts the historical
credit loss experience taking into consideration the forward-looking information. For example, if the Group's view of the
forecasted economic conditions (i.e. inflation rate, unemployment rate, interest rate and economic outlook for Malaysia) are
expected to significantly deteriorate over the next financial year which may lead to an increase in the unrecoverable rate of
the receivables and contract assets. At every reporting date, the historical observed default rates are updated and changes
in the forward-looking estimates are analysed.
The Group estimates the relationship between historical observed default rates, forecast economic conditions and ECL
which may not be representative of customer’s actual default in the future. The information about the provision matrix on the
Group’s trade receivables and contract assets is disclosed in Note 31.2.
If the historical observed default rates varies by 5.0% from management’s estimates, the Group’s allowance for expected
credit loss on trade receivables and contract assets will cause either a 0.2% (2019: 0.2%) increase or 0.2% (2019: 0.2%)
decrease respectively in the Group's profit for the financial year.
4.3 Deferred tax

Deferred tax implications arising from the changes in corporate income tax rates are measured with reference to the estimated
realisation and settlement of temporary differences in the future periods in which the tax rates are expected to apply, based
on the tax rates enacted or substantively enacted at the reporting date. While management's estimates on the realisation
and settlement of temporary differences are based on the available information at the reporting date, changes in business
strategy, future operating performance and other factors could potentially impact the actual timing and amount of temporary
differences realised and settled. Any difference between the actual amount and the estimated amount would be recognised
in profit and loss in the period in which actual realisation and settlement occurs. The carrying amount of deferred tax liabilities
is disclosed in Note 22.
4.4 Income taxes

Significant estimation is involved in determining the Group’s provision for income taxes as there are certain transactions and
computations for which the final tax treatment is uncertain at the reporting date.
Where the final tax treatment of these matters are different from the amounts that were initially recognised, such differences
will impact the income tax and deferred tax provisions in the period in which determination of final tax treatment is made.
4.5 Provisions for liabilities

Provision for site decommissioning and restoration costs are provided based on the present value of the estimated future
expenditure to be incurred for dismantling the inactive sites. Significant management assumption and estimation are
required in determining the discount rate and the expenditure to be incurred for dismantling each network infrastructure site.
Where expectations differ from the original estimates, the differences will impact the carrying amount of provision for site
decommissioning and restoration costs. The carrying amount of provision for site decommissioning and restoration costs at
the reporting date is disclosed in Note 23.

- 31 December 2020
4. Significant accounting estimates and judgements and key sources of estimation uncertainty (cont’d.)
4.6 Revenue recognition - determining stand-alone selling price ("SSP")

The Group has assessed that there are two performance obligations for bundled contracts where the Group needs to allocate
the transaction price between the postpaid service and mobile device based on their relative SSP.
SSP for postpaid packages and mobile devices are based on observable sales prices; however, where certain SSP are not
directly observable, estimates will be made maximising the use of observable inputs.
The estimation of SSP is a significant estimate as it will directly determine the amount of revenue to be recognised upfront
(sale of device) and amount of revenue to be recognised over time (telecommunication revenue). For example, a lower SSP
for mobile device will result in a lower amount of revenue recognised upfront and higher amount of revenue recognised over
the contract period.
The revenue recognised in the current financial year in relation to sale of device and telecommunication revenue is detailed
in Note 5.
4.7 Estimating the lease term – Group as a lessee

The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to exercise the option, or any periods covered by an option to terminate
the lease, if it is reasonably certain not to exercise the option, within the period for which the contract is enforceable.
In determining the lease term, the Group considers all facts and circumstances that create an economic incentive to exercise
an extension option, or not to exercise a termination option. For example, for leases of certain telecommunication network
sites, if the Group expects to use significant non-removable leasehold improvements beyond the date on which the lease
can be terminated, the existence of those leasehold improvements may indicate that the Group might incur a more than
insignificant penalty if it terminates the lease.
For leases of telecommunication network sites, other factors to consider in assessing the lease term include the technology
development and potential changes in business models.
The Group reassesses the lease term upon the occurrence of a significant event or change in circumstances that is within the
control of the Group and affects whether the Group is reasonably certain to exercise an option not previously included in the
determination of lease term, or not to exercise an option previously included in the determination of lease term. A revision in
lease term results in remeasurement of the lease liabilities.
Based on the assessment of these factors, the lease term for the Group's leases relating to telecommunication network sites
will normally be within a range of 3 to 10 years.
4.8 Estimating the incremental borrowing rate for leases

In measuring its lease liabilities, the Group has used its incremental borrowing rate (“IBR”) to present value the future lease
payments, as the interest rate implicit in the lease cannot be readily determined.
The IBR is the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the
funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
To determine the incremental borrowing rate for its leases, the Group makes adjustments to the existing rates received from
financial institutions, taking into consideration the lease term and leased assets. The Group also considers changes in the
financing condition since the last offered rates from the financing institutions.
The carrying amount of lease liabilities is disclosed in Note 13.


- 31 December 2020
5. Revenue

Group Company
2020 2019 2020 2019
RM'000 RM'000 RM'000 RM'000
Revenue from contracts with customers (Note 5.1) 6,068,991 6,210,845 - -

Lease income (Note 5.4) 83,756 86,513 - -
Dividend income from a subsidiary - - 1,275,000 1,446,000
6,152,747 6,297,358 1,275,000 1,446,000

5.1 Disaggregation of revenue from contracts with customers

In the following table, revenue is disaggregated by major products or service lines (which also represents the Group's defined
performance obligations).
2020 2019
Group Note RM'000 RM'000
Major products/service lines

Telecommunication revenue (a) 5,427,787 5,644,111
Sales of devices (b) 641,204 566,734
Total revenue from contracts with customers 6,068,991 6,210,845

The timing of revenue recognition for respective major products or service lines are as follows:

(a) Services transferred over time
(b) Products transferred at a point in time

5.2 Contract balances
Group
2020 2019
Note RM'000 RM'000
Non-current assets
Trade receivables 18 129,767 101,098
Contract assets 28,886 26,661
Current assets/(liabilities)
Trade receivables 18 389,000 440,797
Contract assets 66,437 79,590
Contract liabilities (306,283) (283,572)

- 31 December 2020
5. Revenue (cont'd.)

5.2 Contract balances (cont'd.)

Contract assets primarily relate to rights to consideration for mobile devices transferred to subscribers but not billed at the
reporting date. Contract assets are transferred to receivables when the rights become unconditional. As at 31 December
2020, the Group has contract assets of RM95.3 million (2019: RM106.3 million) which is net of an allowance for expected
credit losses of RM4.5 million (2019: RM2.4 million).
Contract liabilities mainly relate to advance consideration received from subscribers at inception of contracts, for which
revenue is only recognised upon rendering of telecommunication service.
All contract liabilities at the beginning of the financial year have been recognised as revenue in the current financial year.
5.3 Right of return asset and refund liabilities

Group
2020 2019
RM'000 RM'000
Right of return assets 36,740 22,189

Refund liabilities (36,740) (22,189)

5.4 Group as a lessor

The Group has entered into operating leases on certain network telecommunication sites. These leases have lease terms
between one to six years. Lease income recognised by the Group during the financial year is RM83.8 million (2019:
RM86.5 million).
The future minimum rentals receivable under non-cancellable operating leases are as follows:
2020 2019
RM'000 RM'000
Within one financial year 79,962 76,547

After one financial year but not more than five financial years 224,029 153,819
More than five financial years 21,439 2,534
325,430 232,900

- 31 December 2020
6. Finance costs

Group
2020 2019
Note RM'000 RM'000
Interest expense on:

- Loans and borrowings 104,200 129,647
- Others 7,820 3,406
Unwinding of discount:
- Lease liabilities 13 126,796 110,506
- Site decommissioning and restoration costs 23.1 14,410 2,195
Net change in fair value of derivative financial instruments:
- Interest rate swaps (40,679) (14,678)
212,547 231,076

7. Profit before tax

Profit before tax is derived after deducting/(crediting):

Group Company
2020 2019 2020 2019
Note RM'000 RM'000 RM'000 RM'000
Allowance for expected credit losses on

trade receivables and contract assets 31.2 81,588 77,660 - -
Depreciation
- property, plant and equipment 11 678,447 693,643 - -
- ROU asset 13 475,667 431,231 - -
Amortisation of contract cost 14 87,199 103,020 - -
Auditors' remuneration:
- statutory audit 638 503 35 35
- other services 7(a) 464 464 9 9
Staff expenses 7(b) 242,099 224,628 - -
Non-executive directors' remuneration
excluding benefits-in-kind 7(c) 897 882 90 88

- 31 December 2020
7. Profit before tax (CONT’d.)

Profit before tax is derived after deducting/(crediting): (cont'd.)

Group Company
2020 2019 2020 2019
Note RM'000 RM'000 RM'000 RM'000
Transmission facilities services 165,974 140,439 - -

Inventories written down 212 3,104 - -
Rental of land and buildings 2,883 43,504 - -
Rental of equipment and others 22,579 21,373 - -
Realised foreign exchange gain (2,083) (843) - -
Unrealised foreign exchange gain (259) (1,722) - -
Fair value (gain)/loss on foreign currency
forward contracts (25) 118 - -
Loss on disposal of property, plant and
equipment 2,604 15 - -
Gain on termination of lease (72) (57) - -
Write-off of property, plant and equipment 50,708 625 - -
Write-off of intangible asset 120 53 - -
Bad debts recovered (16,149) (15,708) - -
Waiver of debt - - (907) (1,235)
Interest income from deposits with licensed
banks (11,291) (18,320) (102) (202)
Unwinding of significant financing
component of revenue contracts with
deferred payment scheme (18,628) (7,374) - -

(a) Fees for other services were incurred in connection with performance of agreed upon procedures and regulatory compliance
reporting.

- 31 December 2020
7. Profit before tax (cont'd.)

(b) Staff expenses incurred by the Group net of capitalisation of employee benefits expense in property, plant and equipment
during the financial year comprise:
Group
2020 2019
Note RM'000 RM'000
Salaries and bonuses 195,223 178,360

Defined contribution plan 25,056 23,418
Defined benefit plan 26 93 70
Share-based payment 1,871 367
Reversal of provision for employee leave entitlements 23.1 (161) (4,953)
Other staff related expenses 20,017 27,366
242,099 224,628

(c) Non-executive directors' remuneration during the financial year comprises:

Group Company
2020 2019 2020 2019
RM'000 RM'000 RM'000 RM'000
Non-executive:
Fees 897 882 90 88
Benefits-in-kind 11 6 - -
Total 908 888 90 88

The number of non-executive directors of the Company whose total remuneration during the financial year falls within the
following band is analysed below:
Number of directors
Non-executive directors: 2020 2019
Nil 6 5
RM200,001 - RM300,000 3 3


- 31 December 2020
7. Profit before tax (cont'd.)

(d) In 2019, the Group collaborated with a managed services provider in establishing a Common Delivery Centre that takes over
certain parts of the Group’s Information Technology operations, and the Group incurred operating model transition costs of
RM8.4 million for this exercise.

8. Taxation

Major components of income tax expense

The major components of income tax expense for the financial years ended 31 December 2020 and 2019 are:
Group Company
2020 2019 2020 2019
RM'000 RM'000 RM'000 RM'000
Statements of comprehensive income:

Current income tax:
- Malaysian income tax 355,202 522,096 24 48
- Over provision in prior financial years (5,424) (4,289) - -
Total income tax 349,778 517,807 24 48
Deferred taxation (Note 22):
- Relating to origination and reversal of temporary
differences 44,959 (46,891) - -
- Under/(over) provision in prior financial years 6,340 (11,544) - -
Total deferred tax 51,299 (58,435) - -
Income tax expense recognised in profit or loss 401,077 459,372 24 48

- 31 December 2020
8. Taxation (cont'd.)

Reconciliations of income tax expense/rate applicable to profit before tax at the statutory income tax rate to income tax expense/
rate at the effective income tax rate of the Group and of the Company are as follows:
2020 2019
% RM'000 % RM'000
Group
Profit before tax 1,622,046 1,892,321
Taxation at Malaysian statutory tax rate 24.0 389,291 24.0 454,157
Effect of expenses not deductible for tax purposes 1.3 20,639 1.3 24,571
Effect of income not subject to tax (0.6) (9,769) (0.2) (3,523)
Over provision of income tax expense in prior financial years (0.3) (5,424) (0.2) (4,289)
Under/(over) provision of deferred tax expense in prior financial years 0.4 6,340 (0.6) (11,544)
Effective tax rate/income tax expense recognised in profit or loss 24.8 401,077 24.3 459,372
Company
Profit before tax 1,275,815 1,445,949
Taxation at Malaysian statutory tax rate 24.0 306,196 24.0 347,028
Income not subject to tax (24.0) (306,172) (24.0) (346,980)
Effective tax rate/income tax expense recognised in profit or loss 0.0 24 0.0 48

Domestic current income tax is calculated at the Malaysian statutory tax rate of 24% (2019: 24%) of the estimated taxable profit
for the financial year.
9. Earnings per ordinary share

Earnings per ordinary share is calculated by dividing profit for the financial year, net of tax, attributable to owners of the parent by
the weighted average number of ordinary shares in issue during the financial year.

Group
2020 2019
Profit attributable to owners of the parent (RM'000) 1,220,969 1,432,949

Weighted average number of ordinary shares in issue ('000) 7,775,000 7,775,000
Basic earnings per share (sen) 15.7 18.4

No diluted earnings per ordinary share was presented as the Group does not have any convertible instrument, options, warrants
and their equivalents.

- 31 December 2020
10. Dividends

Group/Company
2020 2019
RM'000 RM'000
Recognised during the financial year:

Dividends on ordinary shares:
Fourth interim single-tier dividend (2019: 4.4 sen; 2018: 4.8 sen) 342,100 373,200
First interim single-tier dividend (2020: 4.2 sen; 2019: 4.3 sen) 326,550 334,325
Second interim single-tier dividend (2020: 3.7 sen; 2019: 5.0 sen) 287,675 388,750
Third interim single-tier dividend (2020: 4.1 sen; 2019: 4.5 sen) 318,775 349,875
1,275,100 1,446,150
Interim dividend declared subsequent to the reporting date (not recognised as a

liability as at 31 December):
Dividends on ordinary shares:
Fourth interim single-tier dividend (2020: 3.6 sen; 2019: 4.4 sen) 279,900 342,100

The board of directors had on 27 January 2021, declared a fourth interim single-tier dividend of 3.6 sen per ordinary share in
respect of the financial year ended 31 December 2020 amounting to RM279.9 million. The financial statements for the current
financial year do not reflect this fourth interim dividend. Such dividend will be accounted for in equity as an appropriation of retained
earnings in the financial year ending 31 December 2021.

- 31 December 2020
11. Property, plant and equipment
Tele-
Furniture communi- Capital
Freehold Freehold Motor Computer and cations work-in-
land buildings vehicles systems fittings network progress Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group
Cost
At 1 January 2020 29,638 143,332 23,982 232,079 263,839 6,530,499 230,820 7,454,189
Additions - - 52 (56) (1,735) 79,048 593,203 670,512
Disposals - - - (9,124) (44,623) (68,845) (2,479) (125,071)
Write offs - - - (76) (224) (675,319) (2) (675,621)
Transfers - - - 38,943 4,211 608,498 (651,652) -
Reclassifications (Note 11(c)) (571) 571 (27) (33,435) (26,583) 97,910 377 38,242
Reclassification from
intangible assets (Note 12) - - - - - 92,390 - 92,390
At 31 December 2020 29,067 143,903 24,007 228,331 194,885 6,664,181 170,267 7,454,641
Accumulated depreciation
At 1 January 2020 - 29,845 20,764 187,170 209,849 4,154,451 - 4,602,079
Depreciation expenses for
the financial year - 2,821 1,351 6,717 27,051 640,507 - 678,447
Disposals - - - (9,121) (44,568) (68,668) - (122,357)
Write offs - - - (76) (183) (624,654) - (624,913)
Reclassifications (Note 11(c)) - 184 61 (8,960) (35,096) 82,053 - 38,242
At 31 December 2020 - 32,850 22,176 175,730 157,053 4,183,689 - 4,571,498
Net carrying amount

At 31 December 2020 29,067 111,053 1,831 52,601 37,832 2,480,492 170,267 2,883,143

- 31 December 2020
11. Property, plant and equipment (CONT’D.)
Tele-
Long-term Short-term Long-term Short-term Furniture communi- Capital
Freehold leasehold leasehold Freehold leasehold leasehold Motor Computer and cations work-in-
land land land buildings buildings buildings vehicles systems fittings network progress Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group (cont’d.)
Cost
At 1 January 2019 29,638 7,312 7,565 143,295 7,146 6,866 23,216 319,549 254,432 6,220,762 103,512 7,123,293
Reclassification to
right of use assets
(Note 13) - (7,312) (7,565) - (7,146) (6,866) - - - (80,188) - (109,077)
At 1 January 2019
(restated) 29,638 - - 143,295 - - 23,216 319,549 254,432 6,140,574 103,512 7,014,216
Additions - - - - - - - - - 21,542 677,325 698,867
Disposals - - - - - - (790) (1,477) (1,192) (3,372) - (6,831)
Write offs - - - - - - - (100,093) (1,351) (150,183) (436) (252,063)
Transfers - - - 37 - - 1,556 14,100 11,950 521,938 (549,581) -
At 31 December 2019 29,638 - - 143,332 - - 23,982 232,079 263,839 6,530,499 230,820 7,454,189
Accumulated
depreciation
At 1 January 2019 - 1,561 3,211 27,024 814 3,266 19,087 271,883 185,792 3,729,483 - 4,242,121
Reclassification to
right of use assets
(Note 13) - (1,561) (3,211) - (814) (3,266) - - - (67,191) - (76,043)
At 1 January 2019
(restated) - - - 27,024 - - 19,087 271,883 185,792 3,662,292 - 4,166,078
Depreciation expenses
for the financial
year - - - 2,821 - - 2,451 16,831 26,368 645,172 - 693,643
Disposals - - - - - - (774) (1,477) (960) (2,993) - (6,204)
Write offs - - - - - - - (100,067) (1,351) (150,020) - (251,438)
At 31 December 2019 - - - 29,845 - - 20,764 187,170 209,849 4,154,451 - 4,602,079
Net carrying amount

At 31 December 2019 29,638 - - 113,487 - - 3,218 44,909 53,990 2,376,048 230,820 2,852,110

- 31 December 2020
11. Property, plant and equipment (cont’d.)

(a) The Group acquired property, plant and equipment with an aggregate cost of RM670.5 million (2019: RM698.9 million)
of which RM52.5 million (2019: RM2.2 million) relates to the provision for site decommissioning and restoration costs, as
disclosed in Note 23.1.
(b) Government grants of RM34.6 million (2019: RM147.4 million) relating to additions of qualifying property, plant and equipment,
were deducted before arriving at the cost of property, plant and equipment during the financial year ended 31 December
2020.
(c) The cost and accumulated depreciation for certain categories of property, plant and equipment were adjusted during the
financial year to be consistent with the category in the asset register.
12. Intangible assets

Computer
software
RM’000
Group
Cost
At 1 January 2020 736,969
Additions 102,249
Write offs (577)
Reclassification to property, plant and equipment (Note 11) (92,390)
At 31 December 2020 746,251
Accumulated amortisation
At 1 January 2020 430,983
Amortisation expenses for the financial year 67,689
Write offs (457)
At 31 December 2020 498,215
Net carrying amount

At 31 December 2020 248,036


- 31 December 2020
12. Intangible assets (cont’d.)

Spectrum Computer
bandwidths software Licenses Total
RM’000 RM’000 RM’000 RM’000
Group
Cost
At 1 January 2019 1,430,011 683,075 1,300 2,114,386
Reclassification to right of use assets (Note 13) (1,430,011) - - (1,430,011)
At 1 January 2019 (restated) - 683,075 1,300 684,375
Additions - 54,004 - 54,004
Write offs - (110) (1,300) (1,410)
At 31 December 2019 - 736,969 - 736,969
Accumulated amortisation
At 1 January 2019 772,788 358,615 1,300 1,132,703
Reclassification to right of use assets (Note 13) (772,788) - - (772,788)
At 1 January 2019 (restated) - 358,615 1,300 359,915
Amortisation expenses for the financial year - 72,425 - 72,425
Write offs - (57) (1,300) (1,357)
At 31 December 2019 - 430,983 - 430,983
Net carrying amount

At 31 December 2019 - 305,986 - 305,986

Included in the cost of computer software are computer software not yet available for use of RM73.2 million as at 31 December
2020 (2019: RM58.6 million).


- 31 December 2020
13. Right of use assets

Group as a lessee

Tele- Stores,
Leasehold communi- Trans- Spectrum office
land and cations mission band- buildings
buildings network sites facilities widths and kiosks Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Carrying amount
At 1 January 2020 19,636 1,042,737 3,857 1,516,891 11,967 2,595,088

Additions - 561,118 5,303 14,250 10,489 591,160
Revision of lease term - 324,412 - - - 324,412
Depreciation expense for
the financial year (361) (336,794) (2,703) (124,111) (11,698) (475,667)
Termination - (3,047) (68) - - (3,115)
At 31 December 2020 19,275 1,588,426 6,389 1,407,030 10,758 3,031,878
At 1 January 2019 - - - - - -
Adjustments upon adoption
of MFRS 16:
MFRS 16 adjustments - 1,156,270 6,735 987,848 16,210 2,167,063
property, plant and
equipment (Note 11) 20,037 12,997 - - - 33,034
intangible asset
(Note 12) - - - 657,223 - 657,223
At 1 January 2019 (restated) 20,037 1,169,267 6,735 1,645,071 16,210 2,857,320
Additions - 165,993 108 - 8,011 174,112
Depreciation expense for
the financial year (401) (287,882) (2,633) (128,180) (12,135) (431,231)
Termination - (4,641) (353) - (119) (5,113)
At 31 December 2019 19,636 1,042,737 3,857 1,516,891 11,967 2,595,088

The Group’s lease arrangements are mainly in relation to telecommunication network sites, transmission facilities and spectrum
bandwidths which are used to support the Group’s telecommunication operations. The lease arrangements generally do not allow
for subleasing of the leased asset, unless there is a contractual right for the Group to sublet the lease asset to another party.
The Group also has certain leases with lease terms of 12 months or less and leases that have been determined to be low value.
The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemption for these leases.

- 31 December 2020
13. Right of use assets (CONT’D.)

Group as a lessee (cont’d.)

Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and borrowings) and the movements
during the financial year:
Group
2020 2019
Note RM’000 RM’000
At 1 January 2,047,932 8,452

Adjustments upon adoption of MFRS 16 - 2,205,960
At 1 January (restated) 2,047,932 2,214,412
Additions 591,160 174,112
Revision of lease term 324,412 -
Unwinding of discount 6 126,796 110,506
Payments (506,218) (445,928)
Termination (3,187) (5,170)
At 31 December 2,580,895 2,047,932
Analysed as:
Current 21 399,510 313,756
Non-current 21 2,181,385 1,734,176
2,580,895 2,047,932

The maturity analysis of lease liabilities are disclosed in Note 31.4
The following are amounts recognised in profit or loss:
Group
2020 2019
RM’000 RM’000
Depreciation expense of right of use assets 475,667 431,231

Interest expense on lease liabilties 126,796 110,506
Expenses included in sales and marketing expenses:
- short-term leases 3,977 7,402
Rental expenses presented separately on statement of comprehensive income:
- short-term leases 21,337 55,849
- leases of low value assets 148 1,626
627,925 606,614
The Group has total cash outflow for leases amounting to RM473.6 million (2019: RM453.7 million).

- 31 December 2020
14. Contract costs

Group
2020 2019
RM’000 RM’000
Capitalised sales commissions, net of amortisation 57,887 66,170

During the financial year, amortisation amounting to RM87.2 million (2019: RM103.0 million) was recognised as an expense in
operating expenses of the Group.
15. Investments in subsidiaries

Company
2020 2019
RM’000 RM’000
Unquoted shares at cost 773,361 772,751

During the financial year, the Company has injected RM0.6 million into InfraNation Sdn. Bhd. (formerly known as Y3llownation Sdn.
Bhd.) for working capital purposes.
Details of the subsidiaries, which are incorporated in Malaysia, are as follows:

Percentage of ownership
Name of company interest held by the Group Principal activities
2020 2019
(%) (%)
Digi Telecommunications Sdn Bhd (“DTSB”) 100 100 Establishment, maintenance and provision of
telecommunications and related services
InfraNation Sdn. Bhd. 100 100 Provision of telecommunication
(formerly known as Y3llownation Sdn. Bhd.) infrastructure services
Subsidiaries held through DTSB
Digi Services Sdn. Bhd. 100 100 Dormant

Y3llowLabs Sdn. Bhd. 100 100 Provision of e-commerce, digital services and
solutions

- 31 December 2020
16. Other investment

Group
2020 2019
RM’000 RM’000
Non-current
Financial asset at fair value through OCI
Unquoted shares 78 78

The investment was previously made in relation to a programme initiated by the Group to fund new digital start-ups in Malaysia.
17. Inventories

Group
2020 2019
RM’000 RM’000
Merchandise:
At cost 111,196 69,234
At net realisable value 26,011 21,267
137,207 90,501

During the financial year, the amount of inventories recognised as an expense in cost of materials of the Group was RM708.7 million
(2019: RM679.2 million).
18. Trade and other receivables

Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
Non-current
Trade receivables (Note 18.1) 129,767 101,098 - -
Other receivables - 77,900 - -
Deposits and prepayments (Note 18.2) 214,771 248,567 - -
344,538 427,565 - -
Current
Trade receivables (Note 18.1) 427,293 471,813 - -
Other receivables 361,503 529,534 - -
Deposits and prepayments (Note 18.2) 221,884 250,592 4 4
1,010,680 1,251,939 4 4
Allowance for expected credit loss on trade receivables
(Note 31.2) (38,293) (31,016) - -
972,387 1,220,923 4 4
Total trade and other receivables 1,316,925 1,648,488 4 4


- 31 December 2020
18. Trade and other receivables (cont’D.)
18.1 Trade receivables

The Group’s trade receivables include receivables on deferred payment schemes amounting to RM222.2 million (2019:
RM171.2 million), which allows eligible customers on bundled packages to make payment for mobile devices over a 24
month period.
Apart from the deferred payment scheme receivables, the Group’s trade receivables are non-interest bearing, and are subject
to normal trade credit terms ranging from 30 to 45 days (2019: 30 to 45 days). They are recognised at their original invoice
amounts which represent their fair value on initial recognition.
18.2 Deposits and prepayments

Included in deposits and prepayments are non-current and current prepayments which are advances to a network facility
provider (“NFP”) of RM147.5 million (2019: RM167.9 million) for provision of connectivity services for a period of 10 years and
non-current and current deposits given to local city councils of RM97.4 million (2019: RM124.3 million) for public infrastructure
works which are refundable upon completion.
18.3 Foreign currency exposures

As at 31 December 2020, the Group’s trade receivables balances included exposure to foreign currency denominated in
United States Dollar (“USD”) and Special Drawing Rights (“SDR”) amounting to RM6.9 million (2019: RM12.5 million) and
RM16.5 million (2019: RM25.6 million) respectively.
19. Derivative financial assets/(liabilities)

Group
2020 2019
RM’000 RM’000
Non-hedging derivative financial assets/(liabilities)

Non-current
- Interest rate swaps 19.1 61,728 18,605
Current
- Foreign currency forward contracts 19.2 (394) (419)

- 31 December 2020
19. Derivative financial assets/(liabilities) (cont’d.)

19.1 Interest rate swaps
Notional
value Fair value Assets
RM’000 RM’000 RM’000
Interest rate swaps:

- 2020 1,075,000 1,136,728 61,728
- 2019 1,075,000 1,093,605 18,605

Interest rate swaps are used to manage appropriate fair value change exposure within the Group. The Group entered into
interest rate swaps to hedge the fair value risk in relation to the fixed interest rates of the Islamic Medium Term Note (“IMTN”),
as disclosed in Note 21 with notional principal amounts of RM1,075.0 million (2019: RM750.0 million).
The interest rate swaps entitle the Group to receive interest semi-annually at fixed rates ranging from 4% to 5% per annum,
and in return, pays interest quarterly at Kuala Lumpur Interbank Offer Rate (“KLIBOR”) plus a spread with a weighted average
rate of 3% (2019: 4%). The swaps mature at varying dates based on the maturity of different tranches of the IMTN.
19.2 Foreign currency forward contracts

Contract
value in
foreign Notional
currency value Fair value Liabilities
USD’000 RM’000 RM’000 RM’000
Foreign currency forward contracts:

- 2020 9,500 38,639 38,245 (394)
- 2019 7,600 31,578 31,159 (419)

The Group uses foreign currency forward contracts to minimise its exposure to foreign currency risks as a result of transactions
denominated in currencies other than its functional currency, arising from the normal business activities. Foreign currency
forward contracts are used to hedge certain payables denominated in USD for which firm commitments existed at the
reporting date, extending to January, February and March 2021.
The foreign currency forward contracts and interest rate swap are not designated as cash flow hedges and are entered into for
periods consistent with foreign currency exposure and fair value changes exposure. Any gains or losses arising from changes in
the fair value of derivatives are recognised directly in profit or loss.
The method and assumptions applied in determining the fair values of the derivatives above are disclosed in Note 31.6(b).


- 31 December 2020
20. Cash and short-term deposits

Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
Cash and bank balances 87,253 72,816 250 828

Deposits with licensed banks 215,600 384,900 - -
Cash and cash equivalents 302,853 457,716 250 828

Cash and cash equivalents include cash on hand and at banks and deposits with financial institutions. For the purpose of the
statements of cash flows, cash and cash equivalents are net of outstanding bank overdrafts, if any.
The Group’s cash and cash equivalents included amounts of foreign currency denominated in USD totalling RM4.3 million (2019:
RM8.5 million) at the reporting date.
Cash at banks earns interest at floating rates based on daily bank deposit rates. The weighted average effective interest rates of
deposits at the reporting date are as follows:
Group
2020 2019
% %
Deposits with licensed banks 2 3

The deposits with licensed banks of the Group will mature within one month (2019: one month) from the end of the reporting date.
21. Loans and borrowings

Group
2020 2019
Non-current (unsecured)
Floating-rate term loans 329,859 555,162
Floating-rate term financing-i 367,776 373,486
Islamic medium term notes 21.1 1,798,503 1,798,219
Lease liabilities 13 2,181,385 1,734,176
4,677,523 4,461,043
Current (unsecured)
Floating-rate term loans 225,000 225,000
Floating-rate term financing-i 150,000 150,000
Lease liabilities 13 399,510 313,756
774,510 688,756
Total loans and borrowings 5,452,033 5,149,799

- 31 December 2020
21. Loans and borrowings (cont’d.)

The weighted average effective interest/profit rates at the reporting date for borrowings and debt securities are as follows:
Group
2020 2019
% %
Floating-rate term loans and term financing-i 3 4

Islamic medium term notes 4 4
Lease liabilities 5 5

The above borrowings and debt securities are denominated in RM.

21.1 Islamic medium term notes

The Group through its wholly-owned subsidiary, DTSB, has established an Islamic medium term note programme of up to
RM5.0 billion in nominal value (“IMTN Programme”); and an Islamic commercial papers programme of up to RM1.0 billion in
nominal value (“ICP Programme”), which have a combined limit of up to RM5.0 billion in nominal value (collectively referred
to as “Sukuk Programme”) based on the Islamic principle of Murabahah (via a Tawarruq arrangement).
The tenures of the IMTN and ICP Programme are for 15 and 7 years, respectively from the date of the first issuance.
As at 31 December 2020, the series of IMTN that the Group has in issue consists of:

Nominal
Tranche Tenure Rate Maturity date value
% RM’000
001 5 years 4 14 April 2022 300,000

002 7 years 5 12 April 2024 300,000
003 10 years 5 14 April 2027 300,000
004 7 years 4 18 September 2026 450,000
005 10 years 4 20 September 2029 450,000
Total 1,800,000

The proceeds from IMTN have been partially hedged against interest rate risk using interest rate swaps as disclosed in Note
19.


- 31 December 2020
21. Loans and borrowings (cont’d.)

The maturities of the Group’s loans and borrowings at the reporting date are as follows:

Group
2020 2019
RM’000 RM’000
Less than one financial year 774,510 688,756

Between one and two financial years 1,022,236 693,237
Between two and five financial years 1,420,845 1,825,655
More than five financial years 2,234,442 1,942,151
5,452,033 5,149,799

Reconciliation of liabilities arising from financing activities

Interest
bearing
loans and Lease
borrowings liabilities Total
RM’000 RM’000 RM’000
Group
At 1 January 2020 3,101,867 2,047,932 5,149,799
Drawdown of floating-rate term financing-i 150,000 - 150,000
Payment (375,000) (379,422) (754,422)
Non-cash changes:
Other changes (5,729) 912,385 906,656
At 31 December 2020 2,871,138 2,580,895 5,452,033
At 1 January 2019 2,694,054 - 2,694,054

Adjustments upon adoption of MFRS 16 (8,452) 2,214,412 2,205,960
At 1 January 2019 (restated) 2,685,602 2,214,412 4,900,014
Issuance of Sukuk Programme 1,000,000 - 1,000,000
Payment (587,500) (278,427) (865,927)
Non-cash changes:
Other changes 3,765 111,947 115,712
At 31 December 2019 3,101,867 2,047,932 5,149,799

Included in the other changes are transaction costs deducted against carrying amount of loans and borrowings amortised under
effective interest rate method, and accrued but not yet paid interest on interest-bearing loans and borrowings. The Group classifies
interest paid as cash flows from operating activities.

- 31 December 2020
22. Deferred tax liabilities
Group
2020 2019
RM’000 RM’000
At 1 January 217,628 276,063

Recognised in profit and loss (Note 8) 51,299 (58,435)
At 31 December 268,927 217,628

The components and movements of recognised deferred tax liabilities and assets of the Group during the financial year prior to
offsetting are as follows:

Deferred tax liabilities:
Property,
plant and
equipment
and Right of
Contract Contract intangible use
costs assets assets assets Total
RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2020 15,881 29,342 462,964 470,843 979,030
Recognised in profit and loss (1,988) (6,464) 23,780 117,332 132,660
At 31 December 2020 13,893 22,878 486,744 588,175 1,111,690
At 1 January 2019 17,071 42,168 509,641 - 568,880

Impact arising from adoption of
MFRS 16 - - - 517,537 517,537
At 1 January 2019 (restated) 17,071 42,168 509,641 517,537 1,086,417
Recognised in profit and loss (1,190) (12,826) (46,677) (46,694) (107,387)
At 31 December 2019 15,881 29,342 462,964 470,843 979,030
Deferred tax assets:

Contract Lease
liabilities liabilities Others Total
RM’000 RM’000 RM’000 RM’000
At 1 January 2020 (77,243) (489,506) (194,653) (761,402)
Recognised in profit and loss 3,746 (129,744) 44,637 (81,361)
At 31 December 2020 (73,497) (619,250) (150,016) (842,763)
At 1 January 2019 (75,693) - (217,124) (292,817)

Impact arising from adoption of
MFRS 16 - (517,537) - (517,537)
At 1 January 2019 (restated) (75,693) (517,537) (217,124) (810,354)
Recognised in profit and loss (1,550) 28,031 22,471 48,952
At 31 December 2019 (77,243) (489,506) (194,653) (761,402)

Others relate to deferred tax assets mainly arising from deductible temporary differences on provisions.

- 31 December 2020
23. Other liabilities

Group
2020 2019
RM’000 RM’000
Non-current
Provisions (Note 23.1) 120,255 53,295
Current
Provisions (Note 23.1) - 420
Total other liabilities 120,255 53,715

23.1 Provisions

Site
decommissioning Defined
and restoration benefit
costs plan Total
RM’000 RM’000 RM’000
Note (Note 26)
Group
Non-current
At 1 January 2020 53,284 11 53,295
Capitalised as property, plant and equipment 11(a) 52,532 - 52,532
Unwinding of discount 6 14,410 - 14,410
Additional provision 7 - 93 93
Paid during the financial year - (75) (75)
At 31 December 2020 120,226 29 120,255
Non-current
At 1 January 2019 48,930 34 48,964
Capitalised as property, plant and equipment 11(a) 2,159 - 2,159
Unwinding of discount 6 2,195 - 2,195
Additional provision 7 - 70 70
Paid during the financial year - (93) (93)
At 31 December 2019 53,284 11 53,295


- 31 December 2020
23. Other liabilities (cont’d.)

23.1 Provisions (cont’d.)

Employee
leave
entitlements
Note RM’000
Group
Current
At 1 January 2020 420
Reversal of provision during the financial year 7(b) (161)
Paid during the financial year (259)
At 31 December 2020 -
At 1 January 2019 5,373

Reversal of provision during the financial year 7(b) (4,953)
At 31 December 2019 420

Further details on the provisions are disclosed in Note 2.16(c).

24. Trade and other payables

Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
Trade payables 194,071 247,686 - -

Other payables 357,072 778,114 - -
Accruals and provisions 866,809 742,658 729 1,380
Customer deposits 15,034 15,850 - -
1,432,986 1,784,308 729 1,380

The Group’s trade and other payables are non-interest bearing, and are subject to normal credit terms ranging from 30 to 60 days
(2019: 30 to 60 days).
At 31 December 2020, the Group’s trade and other payables balances included exposure to foreign currency denominated in USD,
SDR and Norwegian Krone (“NOK”) amounting to RM22.0 million (2019: RM51.1 million), RM14.6 million (2019: RM32.0 million)
and RM26.5 million (2019: RM22.3 million) respectively.


- 31 December 2020
25. Share capital
Group/Company
Number of ordinary shares Amount
2020 2019 2020 2019
Units (‘000) Units (‘000) RM’000 RM’000
Issued and fully paid

As at 1 January and 31 December 7,775,000 7,775,000 769,655 769,655

The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry
one vote per share without restrictions and rank equally with regard to the Company’s residual assets.
26. Defined benefit plan

The Group operates an unfunded defined benefit plan for its eligible employees. The estimated obligations under the retirement
benefit scheme are determined based on actuarial valuation by a qualified independent actuary.

The amount recognised in the consolidated statement of financial position is determined as follows:
Group
2020 2019
Present value of unfunded obligations 23.1 29 11

The amount recognised in profit and loss, included under staff expenses, is as follows:

Group
2020 2019
Interest on obligations, representing increase in provision for defined benefit plan 7(b) 93 70

The principal actuarial assumption used in determining the retirement benefit obligation for the defined benefit plan, is as follows:
Group
2020 2019
% %
Rate per annum:

- Discount rate 5 5

Assumption regarding future mortality are based on published statistics and mortality table.

- 31 December 2020
27. Retained earnings

The Company may distribute dividends out of its entire retained earnings as at 31 December 2020 and 2019 respectively, under
the single-tier system.

28. Commitments

Capital commitments

Group
2020 2019
RM’000 RM’000
Capital expenditure in respect of property, plant and equipment and intangible assets:
Approved and contracted for 461,000 227,000
Approved but not contracted for 466,000 530,000

29. Performance guarantees

Group
2020 2019
RM’000 RM’000
Unsecured
Guarantees given to city councils for public infrastructure works 19,811 39,819
Guarantee given to MCMC on project tender 10,556 10,556
30,367 50,375

- 31 December 2020
30. Significant related party disclosures

30.1 Sales and purchases of services

Related party relationships are as follows:

(i) The immediate and ultimate holding company are as disclosed in Note 1; and
(ii) The Company’s subsidiaries are as disclosed in Note 15.

Significant transactions and balances with related parties of the Group during the financial year are as follows:

Transactions Balance due (to)/from at
2020 2019 2020 2019
Group RM’000 RM’000 RM’000 RM’000
With the ultimate holding company and fellow

subsidiaries
- Telenor ASA (8,027) (3,697)
Consultancy services received 35,186 47,166
Fees payable for licenses and trademarks 9,294 9,491
- Telenor GO Pte Ltd (367) (824)

Personnel services received 3,468 5,289
- Telenor Global Services AS (1,773) (3,067)

Sales of interconnection services on
international traffic (11,338) (9,982)
Purchases of inter-connection services on
international traffic 8,670 8,254
Purchases of global connectivity 3,449 2,678
Clearing house services received for
international roaming arrangements 389 507
- Total Access Communication Public

Company Limited (116) (433)
Sales of international roaming services (151) (680)
Purchases of international roaming services - 119
- dtac TriNet Co. Ltd 626 (2,099)

Sales of international roaming services (23) (1,824)
Purchases of international roaming services 255 957
Sales of interconnection services on
international traffic (1,466) (245)
Purchases of inter-connection services on
international traffic 648 2,086

- 31 December 2020
30. Significant related party disclosures (cont’d.)

30.1 Sales and purchases of services (cont’d.)

Transactions Balance due (to)/from at
2020 2019 2020 2019
Group RM’000 RM’000 RM’000 RM’000
With the ultimate holding company and fellow
subsidiaries (cont’d.)
- Telenor Norge AS (4,398) (2,249)

Business security strategy execution received 10,411 7,154
- Telenor Digital Services AS (1,506) (543)

Consultancy fees rendered (87) (955)
Services received on digital marketing and
distribution platform 6,147 156
Purchases of cloud based software
infrastructure services - 6,112
Technical services received - 4,637
- Telenor Global Shared Services AS (7,338) (7,742)

Services received on application operations
and basic operation for data centre 10,897 7,504
- Telenor IT Asia Sdn Bhd - (63)
- Telenor Myanmar Ltd (443) 117

Purchases of interconnection services on
international traffic - 49
Consultancy fees rendered (384) (236)
- Telenor Procurement Company (5,732) (8,018)

Managed services received 21,780 19,383
- Telenor Global Services Singapore Pte Ltd (547) 391

Lease income from bandwidth leasing (6,935) (5,569)
Lease expenses of bandwidth leasing 3,054 3,977
Purchases of IP transit 402 388
- Tapad Inc. US - (1,403)

Services received on digital marketing and
distribution platform 755 2,066

- 31 December 2020
30. Significant related party disclosures (cont’d.)

30.1 Sales and purchases of services (cont’d.)

Amounts due (to)/from related companies which are trade in nature are unsecured, non-interest bearing and are subject to
the normal credit terms for trade receivables and trade payables, respectively.
The directors are of the opinion that the above transactions are entered into in the normal course of business and at standard
commercial terms mutually agreed between both parties.
30.2 Compensation of key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the Group and of the Company, directly and indirectly, including directors of the Group and of the Company.
The remuneration of key management personnel during the financial year was as follows:

Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
Short-term employee benefits 12,650 16,421 90 88

Post-employment benefits 1,335 1,580 - -
Other employment benefits 1,587 1,267 - -
15,572 19,268 90 88

Included in remuneration of key management personnel above are non-executive directors’ remuneration as disclosed in
Note 7(c).
31. Financial instruments

31.1 Financial risk management objectives and policies

In the normal course of conducting its business activities, the Group is exposed to a variety of financial risks, which include
credit, foreign currency, liquidity and interest rate risks. The Group’s overall risk management programme seeks to minimise
potential adverse effects of these risks on the financial performance of the Group.
31.2 Credit risk

Credit risk is the risk of loss that may arise if a counterparty default on its obligations under a financial instrument or customer
contract, leading to a financial loss. The Group’s credit risk arises in the normal course of operations (primarily from trade
and other receivables, and contract assets) and from its financing activities, including deposits with approved financial
institutions. The maximum credit risk exposure is limited to the carrying amount of each financial asset and contract assets
less allowance for impairment.

- 31 December 2020
31. Financial instruments (cont’d.)

31.2 Credit risk (cont’d.)

Trade receivables and contract assets

The credit risk is managed through formalised policies on credit assessment and approvals, credit limits and monitoring
procedures. Credit quality of each new customer is assessed based on an internally developed credit scoring model using
information such as external ratings and credit agency information. Individual risk limits are set in accordance to the risk
profile established for each customer, and are reviewed periodically.
An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses.
The provision rates are based on days past due for groupings of various customer segments with similar loss patterns
(i.e., customer type and rating). The calculation reflects the probability-weighted outcome, and reasonable and supportable
information that is available at the reporting date about past events, current conditions and forecasts of future economic
conditions. The Group evaluates the concentration of risk with respect to trade receivables and contract assets as low, as its
customers base is large and diverse.
Trade receivables and contract assets are written off when there is no reasonable expectation of recovery, and are not subject
to enforcement activity. They are not secured by any collateral or credit enhancements.
Set out below is the information about the credit risk exposure on the Group’s trade receivables and contract assets using a
provision matrix:
Gross Expected Net

carrying credit carrying
amount losses amount
As at 31 December 2020 RM’000 RM’000 RM’000
Trade receivables
- Not past due 513,021 (21,960) 491,061
- 1 to 30 days past due 11,558 (2,733) 8,825
- 31 to 60 days past due 2,164 (1,230) 934
- 61 to 90 days past due 5,688 (1,464) 4,224
- 91 to 180 days past due 9,955 (2,996) 6,959
- More than 181 days past due 14,674 (7,910) 6,764
Total trade receivables 557,060 (38,293) 518,767
Contract assets 99,851 (4,528) 95,323

Total trade receivables and contract assets 656,911 (42,821) 614,090

- 31 December 2020


Trade receivables and contract assets (cont’d.)

Gross Expected Net
carrying credit carrying
amount losses amount
As at 31 December 2019 RM’000 RM’000 RM’000
Trade receivables
- Not past due 440,461 (6,936) 433,525
- 1 to 30 days past due 22,361 (4,256) 18,105
- 31 to 60 days past due 13,981 (3,379) 10,602
- 61 to 90 days past due 12,949 (2,542) 10,407
- 91 to 180 days past due 25,105 (3,750) 21,355
- More than 181 days past due 58,054 (10,153) 47,901
Total trade receivables 572,911 (31,016) 541,895
Contract assets 108,637 (2,386) 106,251

Total trade receivables and contract assets 681,548 (33,402) 648,146

Set out below is the movement in allowance for expected credit losses for trade receivables and contract assets:

Trade Contract
receivables assets Total
Note RM’000 RM’000 RM’000
At 1 January 2020 31,016 2,386 33,402

Charge for the financial year 7 79,446 2,142 81,588
Write offs (72,169) - (72,169)
At 31 December 2020 38,293 4,528 42,821
At 1 January 2019 11,574 3,659 15,233

Charge/(reversal) for the financial year 7 78,933 (1,273) 77,660
Write offs (59,491) - (59,491)
At 31 December 2019 31,016 2,386 33,402

Other receivables and cash and short-term deposits

The Group’s credit risk also arises from cash and short-term deposits and other receivables. The credit risk is managed
through monitoring procedures.
Cash and short-term deposits are placed only with reputable licensed banks and other receivables mainly consists of
amounts due from a governement regulatory body and various city councils. The Group has assessed that the credit risk
from these financial instruments are low.

- 31 December 2020


Other receivables and cash and short-term deposits (cont’d.)

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets (net of
impairment) disclosed in Note 31.7.
31.3 Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. The Group is exposed to foreign currency risk as a result of transactions denominated
in currencies other than its functional currency, arising from the normal business activities. The currencies giving rise to
this risk are primarily the USD, SDR and NOK. Although approximately 4% (2019: 9%) of the Group’s total expenses are
denominated in the above-mentioned foreign currencies, the settlements of these payables are on a net basis through
clearing house services, together with revenues earned from the same operators and partners. The Group also holds cash
and cash equivalents denominated in USD for working capital purposes. The Group’s foreign-denominated cash and cash
equivalents at the reporting date is disclosed in Note 20.
Exposure to foreign currency risk is monitored on an on-going basis and when considered necessary, the Group will consider
using effective financial instruments to hedge its foreign currency risk in accordance with its foreign currency hedging policy.
In line with the Group’s foreign currency hedging policy, hedging is only considered for firm commitments and highly probable
transactions of which hedging shall not exceed 100% of the net exposure value. Speculative activities are strictly prohibited.
The Group adopts a layered approach to hedging, where a higher percentage of hedging will be executed for closer-dated
exposures and with time, increase the hedge as the probability of the underlying exposure increases. These derivatives and
their underlying exposures will be monitored on an on-going basis. However, these contracts are not designated as cash flow
or fair value hedge.

The Group’s foreign currency forward contracts are executed only with creditworthy financial institutions in Malaysia which
are governed by appropriate policies and procedures.
Details of the Group’s outstanding foreign currency forward contracts for the purpose of hedging certain payables
denominated in USD for which firm commitments existed at the reporting date, extends to January, February and March
2021, are disclosed in Note 19. The effects of changes in the fair values of these derivative financial instruments have already
been included in the financial statements during the financial year.
Management believes that there is no reasonably possible fluctuation in the foreign exchange rate which would cause any
material effect to the Group’s profit for the financial year.

- 31 December 2020

31.4 Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds. The
Group monitors and maintains a level of cash and cash equivalents deemed adequate by management, for working capital
purposes and to mitigate the effects of fluctuations in cash flows. The Group invests only in highly liquid cash management
funds, if any.
The Group’s and the Company’s trade and other payables and non-hedging derivative liabilities at the reporting date, are
short-term in nature, and are payable either on-demand or within one financial year. Details of maturities for the Group’s loans
and borrowings are as disclosed in Note 21.
Analysis of financial instruments by remaining contractual maturities

The table below summarises the maturity profile of the Group’s and of the Company’s financial liabilities at the reporting date
based on contractual undiscounted repayment obligations.

On demand One More
or within to two Two to than
one year years five years five years Total
RM’000 RM’000 RM’000 RM’000 RM’000
Group
2020
Financial liabilities
Trade and other payables 1,106,057 - - - 1,106,057

Loans and borrowings 394,962 706,539 628,433 1,598,072 3,328,006
Lease liabilities 573,622 520,530 1,191,928 1,170,257 3,456,337
Derivative financial liabilities:
- Foreign currency forward
contracts 394 - - - 394
Total undiscounted financial
liabilities 2,075,035 1,227,069 1,820,361 2,768,329 7,890,794


- 31 December 2020

31.4 Liquidity risk (cont’d.)

Analysis of financial instruments by remaining contractual maturities (cont’d.)

The table below summarises the maturity profile of the Group’s and of the Company’s financial liabilities at the reporting date
based on contractual undiscounted repayment obligations. (cont’d.)
On demand One More

or within to two Two to than
one year years five years five years Total
RM’000 RM’000 RM’000 RM’000 RM’000
2019
Trade and other payables 1,456,976 - - - 1,456,976

Loans and borrowings 501,993 483,759 1,364,796 1,347,356 3,697,904
Lease liabilities 411,557 758,225 711,989 1,280,158 3,161,929
contracts 419 - - - 419
Total undiscounted financial
liabilities 2,370,945 1,241,984 2,076,785 2,627,514 8,317,228
31.5 Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Group’s financial instruments will fluctuate because
of changes in market interest rates.
The Group is exposed to interest rate risk primarily from floating rate financial liabilities.

The Group manages its interest rate risk by having a mixed portfolio of fixed and floating rate financial liabilities that is
consistent with the interest rates profiles acceptable to the Group. To manage this, the Group enters into interest rate swaps,
in which the Group agrees to exchange, at specified intervals, a fixed interest rate for floating rates.
The notional principal amounts of the outstanding interest rate swaps and its fair value are disclosed in Note 19.1.
The Group’s policy in dealing with interest-bearing financial liabilities is to minimise the interest expense by obtaining the
most favourable interest rates available. A difference of 20 (2019: 20) basis points in interest rates applicable for the Group’s
entire loans and borrowings (excluding lease liabilities) would result in approximately 0.34% (2019: 0.25%) variance in the
Group’s profit for the financial year.


- 31 December 2020

31.6 Fair values

The management assessed that the fair values of cash and short-term deposits, trade and other receivables and trade and
other payables approximate their carrying amounts largely due to the short-term maturities of these instruments and the
insignificant impact of discounting.
The following methods and assumptions are used to estimate the fair values of the following classes of financial instruments:
(a) Loans and borrowings

The carrying amounts of the current portion of loans and borrowings are reasonable approximations of fair values due
to the insignificant impact of discounting.
The carrying amounts of floating-rate term loan and term financing-i are reasonable approximations of fair values as
they are floating rate instruments that are re-priced to market interest rates on or near the reporting date.
The fair values of non-current portion of borrowings and debt securities are estimated by discounting expected future
cash flows at market incremental lending rate for similar types of borrowing, debt instruments or leasing arrangements
at the reporting date.
(b) Derivative financial instruments

The fair value of foreign currency forward contracts is determined using quoted forward exchange rates at the balance
sheet date.
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on
observable yield curves.
(c) Other investment

Investment in equity instrument represents ordinary shares not quoted on any market and does not have any comparable
industry peers that is listed. The investment in unquoted equity instrument is not held for trading.
The initial acquisition cost of the unquoted equity investment is an approximate estimate of its fair value as the investee’s
entity is in the start-up stage.

- 31 December 2020
31.7 Classification

The carrying amounts of financial instruments under each category, are as follows:

Group Company
2020 2019 2020 2019
Note RM’000 RM’000 RM’000 RM’000
Financial assets
Financial assets at fair value through
OCI:
- Other investments 16 78 78 - -
Financial assets at amortised cost:

- Trade receivables 18 518,767 541,895 - -
- Other receivables 18 361,503 607,434 - -
- Deposits and prepayments 18 436,655 499,159 4 4
- Cash and short-term deposits 20 302,853 457,716 250 828
1,619,778 2,106,204 254 832
Less: Prepayments (252,657) (283,403) - -
1,367,121 1,822,801 254 832
Financial assets at fair value through

profit or loss:
Derivative financial assets
- Interest rate swaps 19 61,728 18,605 - -

- 31 December 2020

31.7 Classification (cont’d.)

The carrying amounts of financial instruments under each category, are as follows: (cont’d.)
Group Company
2020 2019 2020 2019
Note RM’000 RM’000 RM’000 RM’000
Financial liabilities at fair value through

profit or loss:
Derivative financial liabilities
contracts 19 394 419 - -
Other financial liabilities:

- Floating-rate term loans 21 554,859 780,162 - -
- Islamic medium term notes 21 1,798,503 1,798,219 - -
- Floating-rate term financing-i 21 517,776 523,486 - -
- Lease liabilities 21 2,580,895 2,047,932 - -
- Trade payables 24 194,071 247,686 - -
- Other payables 24 357,072 778,114 - -
- Accruals 539,880 415,326 644 1,355
- Customer deposits 24 15,034 15,850 - -
6,558,090 6,606,775 644 1,355

- 31 December 2020

31.8 Fair value measurement

The following table provides the fair value measurement hierarchy of the Group’s financial assets and liabilities.

Quantitative disclosures fair value measurement hierarchy for financial assets/(liabilities) as at 31 December 2020:

Fair value measurement using
Quoted
prices in Significant Significant
active observable unobservable
markets inputs inputs
Total (Level 1) (Level 2) (Level 3)
Note Date of valuation RM’000 RM’000 RM’000 RM’000
Financial assets/(liabilities)
measured at fair value:
Unquoted equity investments:

- Other investment 16 31 December 2020 78 - - 78
Derivative financial assets:
- Interest rate swaps 19 31 December 2020 61,728 - 61,728 -
contracts 19 31 December 2020 (394) - (394) -
Quantitative disclosures fair value measurement hierarchy for financial assets/(liabilities) as at 31 December 2019:
Fair value measurement using

Quoted
prices in Significant Significant
active observable unobservable
markets inputs inputs
Total (Level 1) (Level 2) (Level 3)
Note Date of valuation RM’000 RM’000 RM’000 RM’000
Financial assets/(liabilities)
measured at fair value:
Unquoted equity investments:

- Other investment 16 31 December 2019 78 - - 78
Derivative financial assets:
- Interest rate swaps 19 31 December 2019 18,605 - 18,605 -
contracts 19 31 December 2019 (419) - (419) -

- 31 December 2020

31.8 Fair value measurement (cont’d.)

There have been no transfers between Level 2 and Level 3 in the current financial year and prior financial year.
The fair value of unquoted equity investment is categorised as Level 3 as cost was estimated to be an appropriate measure
of fair value. There was no indicators that cost might not be representative of fair value.
32. Capital management

The essence of the Group’s capital management strategy is to support its long-term strategic ambitions including:
(i) its commitment to long-term sustainable dividend policy;

(ii) its financial obligations while maintaining its financial flexibility; and
(iii) its ability to support its business requirements and enable future growth.

Going-forward, the Group will continue to actively manage its capital structure to enhance shareholders’ value and make
adjustments to address changes in the economic environment and its business risk characteristics. The Group had during the
financial year ended 31 December 2009, revised its minimum dividend pay-out policy to at least 80% of the Company’s profit for
the financial year, and dividend payment frequency. The dividend policy will be maintained subject to on-going assessment, and
based on the availability of distributable reserves as well as the Group’s future cash flow requirements and market conditions.
These revisions and any other revision to its allocation of capital resources are subject to the approval of the board of directors. No
changes were made in the objectives, policies or processes during the financial year ended 31 December 2020.
33. Segmental information

Segmental information is not presented as the Group is primarily engaged in the provision of mobile communication services and
its related products in Malaysia.
34. Significant event

Outbreak of Coronavirus (“Covid-19”)

On 11 March 2020, the World Health Organisation assessed the COVID-19 outbreak as a pandemic due to rapid escalation of
COVID-19 cases across the globe. The COVID-19 pandemic also resulted in travel restriction and other precautionary measures
implemented by the Government of Malaysia.
The directors have assessed the overall impact of this situation towards the Group’s and the Company’s operations, financial
performance and cash flows and concluded there is no material adverse effect on the Group’s and the Company’s financial
statements for the financial year ended 31 December 2020.
Nevertheless, the directors will closely monitor the current developments of COVID-19 pandemic and at the present the facilities
and site works activities of the Group and the Company are in normal and stable operation.
35. Authorisation of financial statements for issue

The financial statements for the financial year ended 31 December 2020 were authorised for issue in accordance with a resolution
of the directors on 16 March 2021.
Independent Assurance Report
We have been engaged by Digi Telecommunications Sdn Bhd Subject Matter

("Digi") to perform an independent limited assurance engagement
on selected Sustainability Information (hereon after referred to as The following information collectively known as Selected
"Selected Information" comprising the information set out in the Information on which we provide limited assurance consists of
Subject Matter) as reported by Digi in its Integrated Annual Report the management and reporting processes with respect to the
for the financial year ended 31 December 2020 ("Digi Integrated preparation of the following Selected Information reported and
Annual Report 2020"). marked with asterisks (*) in the Digi Integrated Annual Report 2020:
Management's Responsibility 1. Lost Time Injury Frequency Rate (“LTIFR”) for Digi’s permanent
and contract employees for the financial year ended 31
Management of Digi is responsible for the preparation of the December 2020;
Selected Information included in the Digi Integrated Annual Report 2. Percentage of customer satisfaction scores for the financial
2020 in accordance with Digi's internal sustainability reporting year ended 31 December 2020;
guidelines and procedures. 3. Employee online learning rate for the financial year ended 31
December 2020;
This responsibility includes the selection and application of 4. Number of suppliers signing Agreement of Business Conduct
appropriate methods to prepare the Selected Information reported (“ABC”) for the financial year ended 31 December 2020;
in the Digi Integrated Annual Report 2020 as well as the design, 5. Number of enrolments into Future Skills Programme for the
implementation and maintenance of processes relevant for the financial year ended 31 December 2020.
preparation. Furthermore, the responsibility includes the use of
assumptions and estimates for disclosures made by Digi which Criteria
are reasonable in the circumstances.
The selected subject matter needs to be read and understood
Our Responsibility together with the reporting criteria, which Digi is solely responsible
for selecting and applying. The absence of a significant body of
Our responsibility is to provide a conclusion on the Subject established practice on which to draw to evaluate and measure
Matter based on our limited assurance engagement performed non-financial information allows for different, but acceptable,
in accordance with the approved standard for assurance measurement techniques and can affect comparability between
engagements in Malaysia, International Standard on Assurance entities and over time.
Engagements (“ISAE”) 3000 "Assurance Engagements Other
Than Audits or Reviews of Historical Financial Information". This The reporting criteria used for the reporting of the Selected
standard requires that we comply with ethical requirements, and Information is Digi’s internal sustainability reporting guidelines
plan and perform the assurance engagement under consideration and procedures by which the Selected Information is gathered,
of materiality to express our conclusion with limited assurance. collated and aggregated internally.
The accuracy of the Selected Information is subject to inherent Main Assurance Procedures
limitations given their nature and methods for determining,
calculating and estimating such data. Our work, which involved no independent examination of any
of the underlying financial information, included the following
Our limited assurance report should therefore be read in connection procedures:
with Digi's sustainability reporting guidelines and procedures on
the reporting of its sustainability performance. • Inquiries of personnel responsible for the Selected Information
reported in Digi Integrated Annual Report 2020 regarding
In a limited assurance engagement, the evidence gathering the processes to prepare the said report and the underlying
procedures are more limited than for a reasonable assurance controls over those processes;
engagement, and therefore less assurance is obtained than in a • Inquiries of personnel responsible for data collection at the
reasonable assurance engagement. corporate, division and operation unit level for the Selected
Information;
Independent Assurance Report
• Inspection on a sample basis of internal documents, Restriction on use

contracts, reports, data capture forms and invoices to support
the Selected Information for accuracy including observation This report, including our conclusions, has been prepared
of management’s controls over the processes; solely for the Board of Directors of Digi in accordance with the
• Inquiries of personnel on the collation and reporting of the agreement between us, in connection with the performance of an
Selected Information at the corporate and operation unit level; independent limited assurance on the Selected Information in the
and Subject Matter as reported by Digi in its Integrated Annual Report
• Checking the formulas, proxies and default values used in the 2020. Accordingly, this report should not be used or relied upon
Selected Information against Digi’s sustainability reporting for any other purposes. We consent to the inclusion of this report
guidelines and procedures. in the Digi Integrated Annual Report 2020 and to be disclosed
online at www.digi.com.my, in respect of the financial year
Independence and Quality Control ended 31 December 2020, to assist the Directors in responding
to their governance responsibilities by obtaining an independent
We have complied with the independence and other ethical assurance report in connection with the Selected Information. As
requirements of the By-Laws (on Professional Ethics, Conduct and a result, we will not accept any liability or assume responsibility to
Practice) of the Malaysian Institute of Accountants (“MIA”) and the any other party to whom our report is shown or into whose hands it
International Ethics Standards Board for Accountants’ International may come. Any reliance on this report by any third party is entirely
Code of Ethics for Professional Accountants (including International at its own risk.
Independence Standards), which is founded on fundamental
principles of integrity, objectivity, professional competence and
due care, confidentiality and professional behavior.
We apply International Standard on Quality Control 1 “Quality

Control for Firms that Perform Audits and Reviews of Financial
Statements, and Other Assurance and Related Services PRICEWATERHOUSECOOPERS PLT
Engagements”, and accordingly maintain a comprehensive system LLP0014401-LCA & AF 1146
of quality control including documented policies and procedures Chartered Accountants
regarding compliance with ethical requirements, professional Kuala Lumpur
standards and applicable legal and regulatory requirements. 24 March 2021
Conclusion
Based on our limited assurance engagement, in all material

aspects, nothing has come to our attention that causes us to
believe that the Selected Information in the Subject Matter has not
been fairly stated in accordance with Digi’s internal sustainability
reporting guidelines.
Corporate Information
BOARD OF DIRECTORS
Haakon Bruaset Kjoel Yasmin Binti Aladad Khan Randi Wiese Heirung
Chair, Non-Independent Non- Independent Non-Executive Director Non-Independent Non-Executive Director
Executive Director (Appointed on 15 October 2020)
Vimala V.R. Menon
Tan Sri Saw Choo Boon Independent Non-Executive Director Wenche Marie Agerup
Senior Independent Non-Executive Non-Independent Non-Executive Director
Director Lars Erik Tellmann (Appointed on 15 October 2020)
Non-Independent Non-Executive Director
AUDIT AND RISK COMMITTEE Senior Independent Tricor’s Customer Service Centre
Non-Executive Director Unit G-3, Ground Floor
Vimala V.R. Menon
Vertical Podium, Avenue 3
Chair, Independent Non-Executive Director Tan Sri Saw Choo Boon
Bangsar South, No. 8 Jalan Kerinchi
Email: [email protected]
59200 Kuala Lumpur
Malaysia
Senior Independent Non-Executive Director SECRETARIES
Choo Mun Lai (MAICSA No. 7039980) AUDITORS
Yasmin Binti Aladad Khan
(SSM PC No. 201908001003)
Independent Non-Executive Director Messrs Ernst & Young PLT
Chartered Accountants
Tai Yit Chan (MAICSA No. 7009143)
Randi Wiese Heirung Level 23A, Menara Milenium
(SSM PC No. 202008001023)
Non-Independent Non-Executive Director Jalan Damanlela, Pusat Bandar Damansara
50490 Kuala Lumpur
DOMICILE AND COUNTRY OF
NOMINATION COMMITTEE Malaysia
INCORPORATION
Tel : 03-7495 8000
Malaysia Fax : 03-2095 5332
Chair, Senior Independent Non-Executive
Director
REGISTERED OFFICE STOCK EXCHANGE LISTING
Yasmin Binti Aladad Khan 12th Floor, Menara Symphony Main Market of Bursa Malaysia Securities
Independent Non-Executive Director No. 5, Jalan Professor Khoo Kay Kim Berhad
Seksyen 13, 46200 Petaling Jaya Listed on : 18 December 1997
Haakon Bruaset Kjoel Selangor Darul Ehsan Stock Name : DIGI
Non-Independent Non-Executive Director Malaysia Stock Code : 6947
Tel : 03-7890 4800
REMUNERATION COMMITTEE Fax : 03-7890 4650 PRINCIPAL BANKERS
E-mail : Boardroom-KL@
Haakon Bruaset Kjoel CIMB Islamic Bank Berhad
boardroomlimited.com
Chair, Non-Independent Non-Executive Sumitomo Mitsui Banking Corporation
Web : www.boardroomlimited.com
Director Malaysia Berhad
MUFG Bank (Malaysia) Berhad
SHARE REGISTRARS
Yasmin Binti Aladad Khan RHB Bank Berhad
Independent Non-Executive Director Tricor Investor & Issuing House Services Standard Chartered Bank Malaysia Berhad
Sdn Bhd OCBC Bank (Malaysia) Berhad
Wenche Marie Agerup Unit 32-01, Level 32, Tower A
Non-Independent Non-Executive Director Vertical Business Suite, Avenue 3
Bangsar South
No. 8, Jalan Kerinchi
59200 Kuala Lumpur
Malaysia
Tel : 03-2783 9299
Fax : 03-2783 9222
E-mail : [email protected]
Web : www.tricorglobal.com
Corporate Directory
PRINCIPAL PLACE OF BUSINESS DIGI STORES Sunway Pyramid Ipoh

Lot LG2.69, Lower Ground 2, C-G-02, Persiaran Greentown 3,
HEAD OFFICE Kuala Lumpur Sunway Pyramid Shopping Mall, Greentown Business Centre,
D’House, Lot 10, Jalan Delima 1/1, Bukit Bintang 3, Jalan PJS 11/15, 30450 Ipoh, Perak
Subang Hi-Tech Industrial Park, Lot 106 & 108, Bandar Sunway,
40000 Subang Jaya, Selangor Jalan Bukit Bintang, 46150 Petaling Jaya, Selangor Pahang
Tel : 03-5721 1800 55100 Kuala Lumpur Kuantan
Fax : 03-5721 1857 Melaka 91, Jalan Tun Ismail,
Bangsar Melaka 25000 Kuantan, Pahang
CENTRAL OPERATING OFFICE Lot F122, 1st Floor, 2, Plaza Merdeka,
Lot 43, Jalan Delima 1/1, Bangsar Shopping Centre, Jalan Plaza Merdeka, Kelantan
Subang Hi-Tech Industrial Park, 285, Jalan Maarof, 75000 Melaka Kota Bharu
40000 Subang Jaya, Selangor Bukit Bandaraya, S/16, PT 232,
Tel : 03-5721 1800 59000 Kuala Lumpur Negeri Sembilan Lot 1A, Jalan Hamzah,
Fax : 03-5721 1857 Seremban 15050 Kota Bharu, Kelantan
Gardens 62A, Jalan Tuanku Munawir,
REGIONAL OPERATING OFFICES S-233, 2nd Floor, Gardens Mall, 70000 Seremban, N.Sembilan Terengganu
Northern Region Mid Valley City, Lingkaran Syed Kuala Terenganu
1-03-18, E-Gate Commercial Putra, Johor Lot PT 3937, Jalan Sultan Sulaiman,
Centre, 59200 Kuala Lumpur Batu Pahat 20000 Kuala Terengganu,
Lebuh Tunku Kudin 2, 1-1D, Jalan Zabedah, Terengganu
11700 Gelugor, Penang Setapak Central Mall 83000 Batu Pahat, Johor
G49, 67, Jalan Taman Ibu Kota, Sabah
Ipoh Sales Office Taman Danau Kota, Setapak, Danga Bay 1-Borneo
C-G-02, Persiaran Greentown 3, 53300 Kuala Lumpur Block 6-G-35, Danga Walk, Lot G612, Ground Floor 1 Borneo
Greentown Business Centre, Batu 41/2, Jalan Skudai, Hypermall,
30450 Ipoh, Perak Selangor 80200 Johor Bahru, Johor Jalan Sulaman,
Alamanda 88450 Kota Kinabalu, Sabah
Southern Region Lot LG-70, 71 & 72, Ground Floor, Taman Molek
6 & 8, Jalan Molek 1/12, Alamanda Putrajaya Shopping 6 & 8, Jalan Molek 1/12, Api-Api
Taman Molek, Centre, Taman Molek, Lot 5/G3, Ground & 1st Floor,
81100 Johor Bahru, Johor Jalan Alamanda, Precinct 1, 81100 Johor Bahru, Johor Api-Api Centre,
62000 Putrajaya 88000 Kota Kinabalu, Sabah
Melaka Sales Office Penang
No 2-1 Jalan Plaza Merdeka, Ampang Bayan Baru Sarawak
Plaza Merdeka, Bandar Hilir Melaka, 86G, Lorong Mamanda 1, 1B-G-08 & 1B-G-09, Ground Floor, Kuching
75000 Melaka Ampang Point, One Precinct, Lengkok Mayang Lot 506-507, Section 6 KTLD,
68000 Selangor Pasir, Jalan Kulas Tengah,
Eastern Region 11950 Bayan Baru, Penang 93400 Kuching, Sarawak
Lot 112 & 113, Cheras
Lorong Industri Semambu 7, 3-G, Jalan C180/1, Pulau Tikus Miri
Semambu Industrial Estate, Dataran C180, 368-1-05 & 06, Bellisa Row, Lot 2037, Jalan Datuk Temenggong
25350 Kuantan, Pahang 43200 Cheras, Selangor Jalan Burmah, Oyong Lawai,
Fax : 09-508 0016 10350 Pulau Tikus, Penang Marina Square Phase 1,
D’House 98000 Miri, Sarawak
Sabah Region Lot 10, Jalan Delima 1/1, Seberang Jaya
Digi Telecommunications Sdn Bhd Subang Hi-Tech Industrial Park, 8, Ground Floor, Jalan Todak Dua, Sibu
Lot 36, Sedco Light Industrial Estate, 40000 Shah Alam, Selangor Pusat Bandar, Seberang Jaya, 17 & 19, Ground Floor,
Jln Kilang Kolombong, 13700 Prai, Penang Jalan Tong Sang,
88450 Kota Kinabalu, Sabah Klang Off Jalan Wong King Huo,
Tel : 088-438 800 Lot B-G-8, BBT One Tower, Kedah 96000 Sibu
Fax : 088-436 633 Lebuh Batu Nilam 2, Alor Setar
Bandar Bukit Tinggi, 2 & 3, Kompleks Perniagaan Pintu
Sarawak Region 41200 Klang, Selangor 10,
No. 9, Level 21, Gateway Kuching, Jalan Pintu Sepuluh,
Jalan Bukit Mata, SS2 05100 Alor Setar, Kedah
93100 Kuching, Sarawak 24, Jalan SS2/66,
Tel : 082-421 800 47300 Petaling Jaya, Selangor Perak
Fax : 082-427 597 De Gardens
DGR-1A, Ground Floor,
3, Persiaran Medan Ipoh,
Medan Ipoh,
31400 Ipoh, Perak
List of Properties
Net Book
Age of Value as at
Date of Building 31.12.2020
No. Location Tenure Description / Existing Use Acquisition Area (Years) RM’000
1 H.S. (D) No 92086 & 92087 Freehold Land with a building / 29.12.1997 22,529 sq ft 21 521
P.T. No 9 & No.10 Telecommunications Centre
Pekan Seremban Jaya
Daerah Seremban, Negeri Sembilan
2 Unit No 202-4-11 Freehold Apartment / Housing base 26.01.1995 802 sq ft 23 66
Sri Bandar Besi transceiver equipment
Jalan Sungai Besi
Sungai Besi, Kuala Lumpur
3 Unit No C16-2 Freehold Apartment / Housing base 04.02.1995 2,249 sq ft 25 350
Indera Subang UEP transceiver equipment
Jalan UEP 6/2L
UEP Subang Jaya, Petaling Jaya
Selangor
4 No 1-16.2, 16th Floor Freehold Apartment / Housing base 25.01.1995 1,249 sq ft 24 131
Union Height, Taman Yan transceiver equipment
Jalan Klang Lama, Kuala Lumpur
5 3rd Floor Freehold Apartment / Housing base 29.03.1995 1,319 sq ft 23 50
Unit Pt 4888/4786 C transceiver equipment
Block TC-14
Taman Sri Gombak
Jalan Batu Caves, Selangor
6 4572, 7th Floor Freehold Apartment / Housing base 07.02.1995 1,115 sq ft 23 102
Sri Jelatek Condominiums transceiver equipment
Section 10, Wangsa Maju
Kuala Lumpur
7 32, PLO 151 Jln Angkasa Mas Utama Leasehold Land with a building / 12.05.1995 1.58 acres 24 1,029
Kawasan Perindustrian Tebrau II 30 years lease Telecommunications Centre
81100 Johor Bahru, Johor (expiring in 2023)
8 HS (D) 77, No. P.T. PTBM/A/081 Leasehold Land with a building / 23.03.1995 1 acre 44 1,244
Mukim 1, Kawasan Perusahaan 60 years Telecommunications Centre
Perai, District Seberang Perai (expiring in 2033)
Tengah, Pulau Pinang
9 Lot 36, Sedco Light Industrial Leasehold Land with a building / 12.06.1995 0.938 acre 38 1,402
Estate, Jalan Kelombong 60 years Telecommunications Centre
Kota Kinabalu, Sabah (expiring in 2034)
10 Lot 1220, Section 66 Leasehold Land with a building / 15.08.1995 4,124 sq ft 23 1,202
Kuching Town 60 years Telecommunications Centre
Land District, Sarawak (expiring in 2036)
11 No 112, Semambu Industrial Estate Leasehold Land with a building / 07.07.1995 4 acres 36 1,364
Kuantan, Pahang 66 years Telecommunications Centre
(expiring in 2041)
12 Unit No M803 Leasehold Apartment / 22.03.1995 1,100 sq ft 27 81
8th Floor, Sunrise Park 99 years Housing base transceiver
Ampang, Kuala Lumpur (expiring in 2088) equipment
13 H.S.(D) 12776, P.T. No. 15866 Leasehold Land with a building / 07.08.1996 7.5 acres 25 4,898
Mukim Bentong 99 years Earth Station Complex
District of Bentong, Pahang (expiring in 2091)
14 Plot D-38 Leasehold Land with Fixed Line 14.11.1997 25,521 sq ft 21 331
Taman Industri Prima Kota Fasa 1 99 years switch and base transceiver
Sector 3, Bandar Indera Mahkota (expiring in 2097) station
Kuantan, Pahang
List of Properties
Net Book
Age of Value as at
Date of Building 31.12.2020
No. Location Tenure Description / Existing Use Acquisition Area (Years) RM’000
15 Ptd 1490, Mukim Of Jemaluang Leasehold Land with 17.08.1999 40,000 sq ft 19 97
District Of Mersing 99 years trunk station
Johor (expiring in 2098)
16 PN 89926, Lot 191363 Leasehold Land with a building / 15.07.1999 5,942 sq ft 19 179
Mukim Hulu Kinta 90 years Telecommunications Centre
Daerah Kinta, Perak (expiring in 2081)
17 Lot No 54, Jalan 6/2 Leasehold Land with a building / 23.05.2000 18,050 sq ft 29 1,571
Kawasan Perindustrian Seri Kembangan 99 years Telecommunications Centre
43000 Seri Kembangan, Selangor (expiring in 2091)
18 Lot 2728 Miri Concession Land District Leasehold Land with cabin container / 29.09.2000 4,937 sq m N/A 718
Lopeng, Miri, Sarawak 60 years Telecommunications Centre
(expiring in 2027)
19 Lot 10, Jalan Delima 1/1 Freehold Land with a building 19.07.2001 284,485 sq ft 13 65,860
Subang Hi-Tech Industrial Park
40000 Shah Alam, Selangor
20 No. 24, Jalan KIP 7 Freehold Land with a building / 21.08.2002 17,847 sq ft 22 2,779
Taman Perindustrian KIP Telecommunications Centre
52200 Kuala Lumpur
21 Lot 42, Jalan Delima 1/1 Freehold Parking Lot 28.04.2008 (Title 91,676 sq ft N/A 8,234
Subang Hi-Tech Industrial Park transferred date)
22 Lot 43, Jalan Delima 1/1 Freehold Land with a building / 06.04.2008 (Title 92,142 sq ft 9 61,803
Subang Hi-Tech Industrial Park Telecommunications Centre transferred date)
23 13-1st Floor Gemilang Indah Freehold Apartment unit 26.10.2009 935 sq ft 28 108
Condominium
Geran Mukim 2227/M1/2/7
Lot 295, Sek 98, Bandar KL
Wilayah Persekutuan
24 H.S.(M) 26928 PT 180 Pekan Serdang Leasehold Land with a building / 03.03.2009 1803 sq m 23 3,801
Tempat Seri Kembangan 90 years Telecommunications Centre
Daerah Petaling, Selangor (expiring in 2099)
25 Title No. PN 89925, Lot 191362 Leasehold Land with a building / 21.09.2009 358 sq m 18 636
No.4, Hala Perusahaan Kledang U5 90 years Telecommunications Centre
Kawasan Perusahaan Menglembu (expiring in 2099)
Daerah Kinta, Perak
158,555
Notes:
The Group does not adapt a revaluation policy on landed properties.
N/A denotes “Not Applicable”

Telecommunications Centre Under Rented Properties

1 Site No. 10341 - MSH Lot 30 SHT 2 Site No. 40521 - MMG Menglembu
Landlord : Ng Lee Lin Landlord : Jubli Raya Sdn Bhd
3 Site No. 10251 - MKL KL Plaza 4 Site No. 90142 - MSB Sibu
Landlord : Sinar Merdu Sdn Bhd Landlord : Lee Yau Poh
Disclosure of Recurrent Related

Party Transactions
At the AGM held on 1 June 2020, the Company obtained a shareholders’ mandate to allow the Group to enter into recurrent related
party transactions of revenue or trading nature.
In accordance with Practice Note 12 of MMLR of Bursa Securities, the details of recurrent related party transactions conducted
during the financial year ended 31 December 2020 pursuant to the shareholders’ mandate are disclosed as follows:-
Sales of
goods and Purchase of
Digi Group with Digi and/or
Nature of transaction undertaken by/ services goods and
the following its subsidiary
provided to Digi and/or its subsidiaries during the services during
related parties companies
financial year the financial year
RM’000 RM’000
Telenor Group of Companies
Telenor Group DTSB Business service costs, which include consultancy, 36,094
training programmes and advisory fees (“Business
Service Costs”)
Telenor Group DTSB Personnel services payable and professional fees 2,466 3,917
(“Professional Service”)
Telenor Group DTSB International Accounting Settlement. This refers 12,804 9,319
to an arrangement for interconnection services on
international traffic between foreign carriers
Telenor Group DTSB International Roaming 224 (428)

Telenor Group DTSB IP Transit (Internet Upstream) 402
Telenor Group DTSB Global connectivity services Telenor Business Units 3,449
(BUs) in Asia and to data centers for common services
Telenor Group DTSB Services rendered on Enterprise Resource Planning 10,926
(“ERP”) and enterprise applications
Telenor Group DTSB License and trademarks 9,294
Telenor Group DTSB Managed Services 21,250
Telenor Group DTSB Cloud based software infrastructure services 6,147
Telenor Group DTSB Digital marketing and distribution platform 755
Telenor Group DTSB Business Security cost 10,411
Telenor Group DTSB Bandwidth leasing 7,760 3,054
TOTAL 23,254 114,590
Notes:
1. Telenor Group refers to Telenor ASA and its subsidiary and related companies (including the associated companies). Telenor
ASA is the ultimate holding company of Digi.Com Berhad (Digi).
2. Digi Telecommunications Sdn Bhd (“DTSB”) is a wholly-owned subsidiary of Digi.
Share Price Development
1Q 2Q 3Q 4Q
High RM4.49 High RM4.61 High RM4.30 High RM4.21

Low RM4.10 Low RM4.24 Low RM4.02 Low RM3.87
Average RM4.33 Average RM4.42 Average RM4.18 Average RM4.08
Volume (mil) 426.5 Volume (mil) 290.3 Volume (mil) 270.0 Volume (mil) 240.9
Share Price Volume

(RM) (Mil)
4.8 18.0
4.6 16.0
4.4 14.0
4.2 12.0
4.0 10.0
3.8 8.0
3.6 6.0
3.4 4.0
3.2 2.0
3.0 0
01-Jan-20
16-Jan-20
31-Jan-20
15-Feb-20
01-Mar-20
16-Mar-20
31-Mar-20
15-Apr-20
30-Apr-20
15-May-20
30-May-20
14-Jun-20
29-Jun-20
14-Jul-20
29-Jul-20
13-Aug-20
28-Aug-20
12-Sep-20
27-Sep-20
12-Oct-20
27-Oct-20
11-Nov-20
26-Nov-20
11-Dec-20
26-Dec-20
Share Price Daily Volume (RHS)
Historical Monthly Foreign Shareholdings
Our declining foreign shareholdings in 2020 was in line with Bursa Malaysia’s Kuala Lumpur Composite Index (KLCI) as foreign investors
re-balanced their country portfolios amid Covid-19 outbreak, slower-than-expected macroeconomic recovery and prevailing political
risks in Malaysia.
11.5%
11.2%
11.0% 10.8% 10.8%
10.7% 10.8% 10.8% 10.7% 10.7%
10.6% 10.5%
Jan’20 Feb’20 Mar’20 Apr’20 May’20 Jun’20 Jul’20 Aug’20 Sep’20 Oct’20 Nov’20 Dec’20
Statistics on Shareholdings
As at 16 March 2021
Total number of Issued Shares : 7,775,000,000

Class of Shares : Ordinary shares
Voting Rights : One vote per share
Analysis by Size of Holdings as at 16 March 2021

No. of No. of
Size of Holdings Holders % Shares %
1-99 1,080 3.365 11,681 0.000

100-1,000 13,851 43.157 8,207817 0.105
1,001-10,000 13,884 43.260 54,884,145 0.705
10,001-100,000 2,558 7.970 71,372,276 0.917
100,001-388,749,999 (*) 718 2.237 2,116,128,081 27.217
388,750,000 AND ABOVE (**) 3 0.009 5,524,396,000 71.053
Total 32,094 100.000 7,775,000,000 100.000
Remark:
* Less than 5% of issued shares
** 5% And above of issued shares
Substantial Shareholders as per Register of Substantial Shareholders as at 16 March 2021
Number of Shares
Direct Deemed
Name Interest % Interest %
1. Telenor Asia Pte Ltd 3,809,750,300 49.00 - -

2. Telenor Mobile Communications AS - - 3,809,750,300 (a)
49.00
3. Telenor Mobile Holding AS - - 3,809,750,300 (b) 49.00
4. Telenor ASA - - 3,809,750,300 (c)
49.00
5. Employees Provident Fund Board 1,113,848,100 14.33 - -
6. AmanahRaya Trustees Berhad - Amanah Saham Bumiputera 600,797,600 7.73 - -
Notes:
(a)
Deemed interested by virtue of its 100% interest in Telenor Asia Pte Ltd.
(b)
Deemed interested by virtue of its 100% interest in Telenor Mobile Communications AS.
(c)
Deemed interested by virtue of its 100% interest in Telenor Mobile Holding AS.
Statement of Directors’ Shareholdings

As at 16 March 2021
Number of Ordinary Shares

The Company
Digi.Com Berhad Direct Interest % Deemed Interest %
Haakon Bruaset Kjoel - - - -

Tan Sri Saw Choo Boon - - - -
Yasmin Binti Aladad Khan - - - -
Vimala V.R.Menon - - - -
Wenche Marie Agerup - - - -
Lars Erik Tellmann - - - -
Randi Wiese Heirung - - - -
Number of Ordinary Shares of NOK6 each

Ultimate Holding Company
Telenor ASA Direct Interest % Deemed Interest %
Haakon Bruaset Kjoel 18,684 0.0013 - -

Wenche Marie Agerup 18,156 0.0013 - -
Lars Erik Tellmann 34,982 0.0025 - -
Randi Wiese Heirung 1,448 0 - -
Number of Options over Ordinary Shares of NOK6 each

Ultimate Holding Company
Telenor ASA Direct Interest % Deemed Interest %
Haakon Bruaset Kjoel - - - -

Wenche Marie Agerup - - - -
Lars Erik Tellmann - - - -
Randi Wiese Heirung - - - -
List of Thirty (30) Largest Shareholders

As at 16 March 2021
Name of Shareholders No. of Shares %
1 CITIGROUP NOMINEES (ASING) SDN BHD 3,809,750,300 49.000

TELENOR ASIA PTE LTD (DIGI)
2 CITIGROUP NOMINEES (TEMPATAN) SDN BHD 1,113,848,100 14.326

EMPLOYEES PROVIDENT FUND BOARD
3 AMANAHRAYA TRUSTEES BERHAD 600,797,600 7.727

AMANAH SAHAM BUMIPUTERA
4 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 285,260,700 3.669
5 CITIGROUP NOMINEES (TEMPATAN) SDN BHD 97,071,700 1.249

URUSHARTA JAMAAH SDN. BHD. (1)
6 LEMBAGA TABUNG HAJI 71,413,050 0.918
7 CARTABAN NOMINEES (ASING) SDN BHD 68,340,500 0.879

EXEMPT AN FOR STATE STREET BANK & TRUST COMPANY (WEST CLT OD67)

AMANAH SAHAM BUMIPUTERA 2
9 CARTABAN NOMINEES (TEMPATAN) SDN BHD 63,679,300 0.819

PAMB FOR PRULINK EQUITY FUND

AMANAH SAHAM MALAYSIA 2 - WAWASAN

AMANAH SAHAM MALAYSIA 3
12 HSBC NOMINEES (ASING) SDN BHD 51,323,533 0.660

JPMCB NA FOR VANGUARD EMERGING MARKETS STOCK INDEX FUND
13 AHMAD SEBI BIN BAKAR 50,923,830 0.655
14 MAYBANK NOMINEES (TEMPATAN) SDN BHD 48,500,000 0.624

MAYBANK TRUSTEES BERHAD FOR PUBLIC ITTIKAL FUND (N14011970240)

JPMCB NA FOR VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND

MAYBANK TRUSTEES BERHAD FOR PUBLIC REGULAR SAVINGS FUND (N14011940100)
List of Thirty (30) Largest Shareholders

As at 16 March 2021
Name of Shareholders No. of Shares %

EXEMPT AN FOR AIA BHD.

PUBLIC ITTIKAL SEQUEL FUND

GREAT EASTERN LIFE ASSURANCE (MALAYSIA) BERHAD (PAR 1)

GREAT EASTERN LIFE ASSURANCE (MALAYSIA) BERHAD (PAR 3)

AMANAH SAHAM BUMIPUTERA 3 - DIDIK
22 DB (MALAYSIA) NOMINEE (ASING) SDN BHD 20,553,100 0.264

BNYM SA/NV FOR PEOPLE'S BANK OF CHINA (SICL ASIA EM)
23 PERMODALAN NASIONAL BERHAD 18,561,900 0.239

MTRUSTEE BERHAD FOR PRINCIPAL DALI EQUITY GROWTH FUND (UT-CIMB-DALI)
(419455)

JPMCB NA FOR VANGUARD FIDUCIARY TRUST COMPANY
INSTITUTIONAL TOTAL INTERNATIONAL STOCK MARKET INDEX TRUST II

JPMCB NA FOR BLACKROCK INSTITUTIONAL TRUST COMPANY, N.A. INVESTMENT
FUNDS FOR EMPLOYEE BENEFIT TRUSTS
27 CITIGROUP NOMINEES (ASING) SDN BHD 13,624,675 0.175

CBNY FOR NORGES BANK (FI 17)

J.P. MORGAN SECURITIES PLC

PUBLIC ISLAMIC SELECT ENTERPRISES FUND

PUBLIC ISLAMIC DIVIDEND FUND
TOTAL 6,808,600,029 87.570

Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the Twenty-Fourth Annual General Meeting (“24th AGM”) of Digi.Com Berhad (“the Company”) will be
conducted on a fully virtual basis through live streaming and online voting via the Remote Participation and Electronic Voting (“RPEV”)
Facilities, for the purpose of considering and if thought fit, passing the following resolutions set out in this notice:
Meeting Platform : https://web.lumiagm.com

Day and Date : Tuesday, 18 May 2021 or any adjournment thereof
Time : 10.00 a.m.
Broadcast Venue : Studio, Digi Telecommunications Sdn Bhd
Lot 10, Jalan Delima 1/1
Subang Hi-Tech Industrial Park
40000 Subang Jaya
Selangor Darul Ehsan, Malaysia
Mode of Communication : 1) Typed text in the Meeting Platform during the 24th AGM. The messaging window facility will
be opened concurrently with the Meeting Platform, i.e. one (1) hour before the AGM, which
is from 9.00 a.m. on Tuesday, 18 May 2021.
2) E-mail questions to [email protected] or via Boardroom’s website at
https://boardroomlimited.my prior to the 24th AGM.
AGENDA
As Ordinary Business
1. To receive the Audited Financial Statements for the financial year ended 31 December 2020 and the (Please refer to Note 1 of
Reports of the Directors and Auditors thereon. the Explanatory Notes)
2. To re-elect Ms Yasmin Binti Aladad Khan who retires by rotation pursuant to Article 98(A) of the Resolution 1
Company’s Articles of Association and being eligible, has offered herself for re-election. (Please refer to Note 2 of
the Explanatory Notes)
Tan Sri Saw Choo Boon who also retires by rotation in accordance with Article 98(A) of the Company’s
Articles of Association, has expressed his intention not to seek for re-election. Hence, he will retain his
office as Director until the conclusion of the 24th AGM.
Consequently, Tan Sri Saw Choo Boon who has served the Board as a Senior Independent Non-
Executive Director of the Company for a cumulative term of more than nine (9) years since 9 December
2010 has also expressed his intention not to seek for re-election. Hence, he will retain his office as a
Senior Independent Non-Executive Director of the Company until the conclusion of the 24th AGM.
3. To re-elect the following Directors who are to retire pursuant to Article 98(E) of the Company’s Articles
of Association and being eligible, have offered themselves for re-election:
i. Ms Randi Wiese Heirung Resolution 2
ii. Ms Wenche Marie Agerup Resolution 3
4. To approve the payment of Directors’ fees of up to RM900,000.00 for the Independent Non-Executive Resolution 4
Directors and benefits payable to the Directors up to an aggregate amount of RM16,000.00 from the
date of the forthcoming 24th AGM until the next AGM of the Company.
5. To re-appoint Messrs. Ernst & Young PLT as Auditors of the Company and to authorise the Directors to Resolution 5
fix their remuneration.
As Special Business
To consider and, if deemed fit, to pass the following resolutions:-
6. Ordinary Resolution Resolution 6

- Proposed Renewal of Existing Shareholders’ Mandate for Recurrent Related Party (Please refer to Note 3 of
Transactions of a Revenue or Trading Nature, to be entered with Telenor ASA (“Telenor”) the Explanatory Notes)
and Persons Connected with Telenor (“Proposed Shareholders’ Mandate”)
That, subject to the provisions of the Main Market Listing Requirements of Bursa Malaysia Securities
Berhad, approval be and is hereby given to the Company and its subsidiaries to enter into recurrent
related party transactions of a revenue or trading nature with Telenor and persons connected with
Telenor as specified in Section 2.3 of the Circular to Shareholders dated 15 April 2021, which are
necessary for the day-to-day operations and/or in the ordinary course of business of the Company and
its subsidiaries on terms not more favourable to the related parties than those generally available to
the public and are not detrimental to the minority shareholders of the Company and that such approval
shall continue to be in force until:
(i) the conclusion of the next AGM of the Company following the forthcoming AGM at which
the Proposed Shareholders’ Mandate shall be passed, at which time it will lapse, unless by a
resolution passed at a general meeting, the authority conferred by this resolution is renewed;
(ii) the expiration of the period within which the next AGM of the Company is required to be held
pursuant to Section 340(2) of the Companies Act 2016 (but shall not extend to such extension as
may be allowed pursuant to Section 340(4) of the Companies Act 2016); or
(iii) revoked or varied by resolution passed by the shareholders at a general meeting,
whichever is earlier.
And that the Directors of the Company be and are hereby authorised to complete and do all such
acts and things (including executing all such documents as may be required) as they may consider
expedient or necessary to give effect to the Proposed Shareholders’ Mandate.”
7. Special Resolution Special Resolution

- Proposed Amendments to the Articles of Association of the Company (Please refer to Note 4 of
the Explanatory Notes)
THAT the Proposed Amendments to the existing Articles of Association of the Company, as annexed
as Appendix III in the Circular to Shareholders dated 15 April 2021, be and are hereby approved and
adopted, with immediate effect.
AND THAT the Directors of the Company be and are hereby authorised to do all acts, deeds and
things as are necessary and/or expedient in order to give full effect to the Proposed Amendments
to the existing Articles of Association of the Company with full powers to assent to any conditions,
modifications, variations and/or amendments as may be required by any relevant authorities.”
As Other Business
8. To transact any other business of which due notice has been given in accordance with the Companies Act 2016 and the Company’s
Articles of Association.
By Order of the Board
Choo Mun Lai (MAICSA No. 7039980)

(SSM PC No. 201908001003)
Tai Yit Chan (MAICSA No. 7009143)
(SSM PC No. 202008001023)
Company Secretaries
Selangor Darul Ehsan

15 April 2021
(A) NOTES
(i) Due to the on-going Movement Control Order and as part of the continuing measures to stem the spread of the Coronavirus
Disease (COVID-19), the 24th AGM of the Company will be conducted on a fully virtual basis through live streaming and
online voting using RPEV facilities at https://web.lumiagm.com The procedures for members to register, participate and vote
remotely via the RPEV facilities are provided in the Administrative Guide for the 24th AGM.
(ii) Please follow the procedures set out in the Administrative Guide for the 24th AGM which is available on the Company’s
website at www.digi.com.my/annualreport to register, attend, speak (in the form of real time submission of typed texts) and
vote (collectively, “participate”) remotely via the RPEV facilities.
(iii) The Broadcast Venue is strictly for the purpose of complying with Section 327(2) of the Companies Act 2016 which requires
the Chair of the 24th AGM of the Company to be present at the main venue in Malaysia. Shareholders/Proxies/Corporate
Representatives WILL NOT BE ALLOWED to attend the 24th AGM in person at the Broadcast Venue on the day of the
meeting. Any Shareholders or Proxies or Corporate Representatives who turn up at the Broadcast Venue would be requested
to leave the venue politely.
(iv) In respect of deposited securities, only Shareholders whose names appear on the Record of Depositors on 4 May 2021
(General Meeting Record of Depositors) shall be eligible to attend, participate, speak and/or vote at the meeting.
(v) A shareholder entitled to participate at the 24th AGM is entitled to appoint not more than two (2) proxies to participate on his/
her behalf. Where a Shareholder appoints more than one (1) proxy, the appointment shall not be valid unless he/she specifies
the proportions of his/her shareholdings to be represented by each proxy.
(vi) A proxy or attorney need not be a Shareholder of the Company. There shall be no restriction as to the qualification of the
proxy. A proxy appointed to participate at the meeting shall have the same rights as the Shareholder to speak at the Meeting.
(vii) Where a Shareholder of the Company is an Exempt Authorised Nominee which holds ordinary shares in the Company for
multiple beneficial owners in one securities account (omnibus account) as defined under the Securities Industry (Central
Depositories) Act 1991, there shall be no limit to the number of proxies which the Exempt Authorised Nominee may appoint
in respect of each omnibus account it holds.
(viii) The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing,
and in the case of a corporation, either under its common seal or under the hand of an officer or attorney duly authorised.
(ix) The instrument appointing a proxy together with the power of attorney (if any) or a certified copy thereof must be deposited
at the Poll Administrator’s Office, Boardroom Share Registrars Sdn. Bhd. at Ground Floor or 11th Floor, Menara Symphony
No. 5, Jalan Prof. Khoo Kay Kim Seksyen 13, 46200 Petaling Jaya Selangor Darul Ehsan at least forty-eight (48) hours before
the time appointed for the holding of the meeting or adjourned meeting , otherwise the instrument of proxy should not be
treated as valid. Alternatively, the Form of Proxy can be submitted electronically via https://boardroomlimited.my before the
proxy form submission cut-off time as mentioned in the above. For further information on the electronic submission of Form
of Proxy, kindly refer to the annexure of the Administrative Details.
(x) Any Notice of Termination of Authority to act as Proxy must be received by the Company at least forty-eight (48) hours before
the time appointed for the holding of the meeting or adjourned meeting, failing which, the termination of the authority of a
person to act as proxy will not affect the following in accordance with Section 338 of the Companies Act 2016:-
a. the constitution of the quorum at such meeting;

b. the validity of anything he/she did as Chair of such meeting;
c. the validity of a poll demanded by him/her at such meeting; or
d. the validity of the vote exercised by him/her at such meeting.
(xi) Pursuant to Paragraph 8.29A of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, all the resolutions
set out in the Notice of AGM will put to vote by way of poll. Poll Administrator and Independent Scrutineers will be appointed
to conduct the polling process and verify the results of the poll respectively.
(B) EXPLANATORY NOTES
1. Audited Financial Statements for the financial year ended 31 December 2020
The Audited Financial Statements under Item 1 of the Agenda are laid in accordance with Section 340(1)(a) the Companies
Act 2016 for discussion only. They do not require shareholders’ approval and hence, this agenda item will not be put forward
for voting.
2. Tan Sri Saw Choo Boon does not seek for re-election as a Director and Senior Independent Non-Executive Director
Tan Sri Saw Choo Boon had on 10 February 2021 informed of his intention not to seek for re-election as Director and Senior
Independent Non-Executive Director, after having served on the Board for a cumulative term of more than nine (9) years since
his appointment as Director of the Company on 9 December 2010.
Hence, he will retain his office as Director and Senior Independent Non-Executive Director until the conclusion of the 24th
AGM, and will retire in accordance with Article 98(A) of the Company’s Articles of Association.
3. Ordinary Resolution 6 - Proposed Shareholders’ Mandate
Ordinary Resolution 6 proposed under item 6 of the Agenda, if passed, will allow the Company and its subsidiaries (“Group”)
to enter into recurrent related party transactions, in accordance with paragraph 10.09 of the Main Market Listing Requirements
of Bursa Malaysia Securities Berhad, without the necessity to convene separate general meetings from time to time to
seek shareholders’ approval as and when such recurrent related party transactions occur. This would reduce substantial
administrative time and expenses associated with the convening of such meetings without compromising the corporate
objectives of the Group or affecting the business opportunities available to the Group. The shareholders’ mandate is subject
to renewal on an annual basis.
4. Special Resolution - Proposed Amendments to the Articles of Association of the Company
This Special Resolution proposed under item 7 of the Agenda, if passed, will allow the Company to enhance administrative
efficiency and will not have any effect on the issued share capital, substantial shareholders’ shareholdings, net assets,
gearing or earnings of the Company.
The Proposed Amendments to the Articles of Association of the Company shall take effect once it has been passed by a
majority of not less than seventy-five percent (75%) of such members of the Company who are entitled to participate in
person or by proxy at the 24th AGM.
Please refer to the Circular to Shareholders dated 15 April 2021 for further information.
Personal data privacy

By submitting an instrument appointing a proxy(ies) and/or representative(s) to attend, participate, speak and vote at the AGM and/or
any adjournment thereof, a Shareholder of the Company (i) consents to the collection, use and disclosure of the Shareholder’s personal
data by the Company (or its agents) for the purpose of processing and administration by the Company (or its agents) of proxies and
representatives appointed for the AGM (including any adjournment thereof), and the preparation and compilation of the attendance lists,
minutes and other documents relating to the AGM (including any adjournment thereof), and in order for the Company (or its agents)
to comply with any applicable laws, listing rules, regulations and/or guidelines (collectively, the “Purposes”), (ii) warrants that where
the Shareholder discloses the personal data of the Shareholder’s proxy(ies) and/or representative(s) to the Company (or its agents),
the Shareholder has obtained the prior consent of such proxy(ies) and/or representative(s) for the collection, use and disclosure by
the Company (or its agents) of the personal data of such proxy(ies) and/or representative(s) for the Purposes, and (iii) agrees that the
Shareholder will indemnify the Company in respect of any penalties, liabilities, claims, demands, losses and damages as a result of the
Shareholder’s breach of warranty.
this page has been intentionally left blank.
FORM OF PROXY DIGI.COM BERHAD
Registration No. 199701009694 (425190-X)
No. of shares held
(Incorporated in Malaysia) CDS Account No.
I/We NRIC / Passport / Registration No.*

(Name in full)
of
(Address)
with email address mobile phone no.
being a shareholder/shareholders of DIGI.COM BERHAD (“the Company”), hereby appoint:
Full Name: NRIC/Passport No.: Proportion of shareholding to be represented by the proxy/proxies:

No. of Shares %
Address:
Tel. No.: Email Address:
*And/or
Full Name: NRIC/Passport No.: Proportion of shareholding to be represented by the proxy/proxies:

No. of Shares %
Address:
Tel. No.: Email Address:
*And/or
or failing him/her, the *Chair of the Meeting as my/our proxy to vote for me/us on my/our behalf at the Twenty-Fourth Annual General Meeting (“24th AGM”) of
the Company will be conducted on a fully virtual basis through live streaming and online voting via the Remote Participation and Electronic Voting (“RPEV”)
Facilities at the Broadcast Venue Studio, Digi Telecommunications Sdn Bhd, Lot 10, Jalan Delima 1/1, Subang Hi-Tech Industrial Park, 40000 Subang Jaya,
Selangor Darul Ehsan, Malaysia on Tuesday, 18 May 2021 at 10.00 a.m. or any adjournment thereof.
*Please delete as appropriate.
This proxy is to vote on the resolutions set out in the Notice of the Meeting, as indicated with an ‘X’ in the appropriate spaces below. If no specific direction
as to voting is given, the proxy will vote or abstain from voting at his/her discretion.
Item No.Agenda
1. To receive the Audited Financial Statements for the financial year ended 31 December 2020 and the Reports of the Directors and Auditors
thereon.
Resolution For Against
2. To re-elect Puan Yasmin Binti Aladad Khan as Director who is to retire pursuant to Article 98(A) of the 1
Company’s Articles of Association.
3. i. To re-elect Ms Randi Wiese Heirung as a Director who is to retire pursuant to Article 98(E) of the 2
ii. To re-elect Ms Wenche Marie Agerup as a Director who is to retire pursuant to Article 98(E) of the 3
4. To approve the payment of Directors’ fees and benefits payable to the Independent Non-Executive 4
Directors.
5. To re-appoint Messrs. Ernst & Young PLT as Auditors of the Company and to authorise the Directors 5
to fix their remuneration.
Special Business
6. Ordinary Resolution: 6
Proposed Renewal of Existing Shareholders’ Mandate for Recurrent Related Party Transactions of a
Revenue or Trading Nature, to be entered with Telenor ASA and Persons Connected with Telenor.
7. Special Resolution: Special
The Proposed Amendments to the Articles of Association is administrative in nature and will not have Resolution
any effect on the issued share capital, substantial shareholders’ shareholdings, net assets, gearing or
earnings of the Company.
Signed this day of , 2021.
Signature of Shareholder(s) or Common Seal
Tel. No.
Notes:
(i) Due to the on-going Movement Control Order and as part of the continuing measures to stem the spread of the Coronavirus Disease (COVID-19), the 24th AGM of
the Company will be conducted on a fully virtual basis through live streaming and online voting using RPEV facilities at https://web.lumiagm.com. The procedures for
members to register, participate and vote remotely via the RPEV facilities are provided in the Administrative Guide for the 24th AGM. This is set out in the Administrative
Guide for the 24th AGM which is available on the Company’s website at www.digi.com.my/annualreport to register, attend, speak (in the form of real time submission
of typed texts) and vote (collectively, participate) remotely via the RPEV facilities.
(ii) The Broadcast Venue is strictly for the purpose of complying with Section 327(2) of the Companies Act 2016 which requires the Chair of the 24th AGM of the Company
to be present at the main venue in Malaysia. Shareholders/Proxies/Corporate Representatives WILL NOT BE ALLOWED to attend the 24th AGM in person at the
Broadcast Venue on the day of the meeting. Any Shareholders or Proxies or Corporate Representatives who turn up at the Broadcast Venue would be requested to
leave the venue politely.
(iii) In respect of deposited securities, only Shareholders whose names appear on the Record of Depositors on 4 May 2021 (General Meeting Record of Depositors) shall
be eligible to attend, participate, speak and/or vote at the meeting.
(iv) A shareholder entitled participate at the 24th AGM is entitled to appoint not more than two (2) proxies to participate on his/her behalf. Where a Shareholder appoints
more than one (1) proxy, the appointment shall not be valid unless he/she specifies the proportions of his/her shareholdings to be represented by each proxy.
(v) A proxy or attorney need not be a Shareholder of the Company. There shall be no restriction as to the qualification of the proxy. A proxy appointed to participate at the
meeting shall have the same rights as the Shareholder to speak at the Meeting.
(vi) Where a Shareholder of the Company is an Exempt Authorised Nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities
account (omnibus account) as defined under the Securities Industry (Central Depositories) Act 1991, there shall be no limit to the number of proxies which the Exempt
Authorised Nominee may appoint in respect of each omnibus account it holds.
Fold along this line (1)
Affix
Stamp
Here
Poll Administrator office,

Boardroom Share Registrars Sdn. Bhd.
Ground Floor or 11th Floor,
Menara Symphony,
No. 5, Jalan Prof. Khoo Kay Kim,
Seksyen 13, 46200 Petaling Jaya,
Selangor Darul Ehsan.
Fold along this line (2)
(vii) The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing, and in the case of a corporation, either
under its common seal or under the hand of an officer or attorney duly authorised.
(viii) The instrument appointing a proxy together with the power of attorney (if any) or a certified copy thereof must be deposited at the Poll Administrator’s Office,
Boardroom Share Registrars Sdn. Bhd. at Ground Floor or 11th Floor, Menara Symphony No. 5, Jalan Prof. Khoo Kay Kim Seksyen 13, 46200 Petaling Jaya Selangor
Darul Ehsan at least forty-eight (48) hours before the time appointed for the holding of the meeting or adjourned meeting , otherwise the instrument of proxy should
not be treated as valid. Alternatively, the Form of Proxy can be submitted electronically via https://boardroomlimited.my before the proxy form submission cut-off time
as mentioned in the above. For further information on the electronic submission of Form of Proxy, kindly refer to the annexure of the Administrative Details.
(ix) Any Notice of Termination of Authority to act as Proxy must be received by the Company at least forty-eight (48) hours before the time appointed for the holding of the
meeting or adjourned meeting, failing which, the termination of the authority of a person to act as proxy will not affect the following in accordance with Section 338 of
the Companies Act 2016:-
a. the constitution of the quorum at such meeting;
b. the validity of anything he/she did as Chair of such meeting;
c. the validity of a poll demanded by him/her at such meeting; or
d. the validity of the vote exercised by him/her at such meeting.
(x) Pursuant to Paragraph 8.29A of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, all the resolutions set out in the Notice of AGM will put to
vote by way of poll. Poll Administrator and Independent Scrutineers will be appointed to conduct the polling process and verify the results of the poll respectively.
Personal Data Privacy

By submitting an instrument appointing a proxy(ies) and/or representative(s), the shareholder accepts and agrees to the personal data privacy terms set out in the Notice of
24th AGM dated 15 April 2021.
Digi.Com Berhad
Reg. No. 199701009694 (425190-X)
Lot 10, Jalan Delima 1/1,

Subang Hi-Tech Industrial Park,
40000 Subang Jaya,
Selangor, Malaysia
Email: [email protected]
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Integrated Annual Report 2020

Inside This Report

About This Report

This is Digi.Com Berhad’s 2nd Integrated Reporting Suites

by the International Integrated Reporting Integrated Annual Report (IAR) 2020

Our audited annual financial statements are disclosed in Section 6. We 3 4 8 9

Our Values Our Way of Work

Create Together Innovation 360

Our Purpose Our Strategy

To What Matters Most societies. Anchored on Growth, Modernisation and Responsible

Our Promise to Customers

100% Digi Telecommunications Sdn Bhd

100% Digi Services Sdn Bhd

The Value We Created

Financial -2.3% -7.0% +17.9% -4.1%

Revenue EBITDA Net cash from Organic capital

Wider network population

Ranked #1 or #2 in download speed RM242.5 million of upsell

For our investors

For our societies

Free 1GB of data daily for selected

More than 115,000 people engaged 511 inspections conducted in line

The Value We Created

For our environment

For our employees

Highly diverse workforce

Our Response to Covid-19

Driving Inclusivity To Build Socio-economic Recovery

Key Maintaining network stability to sustain leading position on consistency

Continued traffic management and

Prioritised investments on targeted new

A joint industry effort with Malaysian Communications and Multimedia

Enhanced digital platforms features to enable easier access for the

Continuous online Supported Tabung Cerdik,

Our Response to Covid-19

3 Keeping customers connected via special plans and digital channels

More@Home Exclusive New services on

Improved online billing and reload features through self-serve

4 Helping micro businesses and SMEs digitalise for business continuity

Partnered with MDEC to drive Offered PENJANA Extended discounts

to support businesses in their Go Digital businesses for some NGOs

Our Response to Covid-19

5 Supporting humanitarian and emergency relief efforts with Covid-19 aid

Nationwide crowdfunding via MyDigi app to provide RM2 million pledged

Sponsored devices and Supported government in

Our Response to Covid-19

Mandatory health and

Comprehensive Business Precautionary measures such

Chair of the Board’s Statement

Navigating a year of strong challenges

Haakon Bruaset Kjoel

Chair of the Board’s Statement

provision of daily free 1GB data for is anchored on our “Yellow

Chair of the Board’s Statement

Chief Executive Officer’s Statement

Stronger Q How would you describe Digi’s

Chief Executive Officer’s Statement

Optimising service channels to better meet customer’s

We will focus on delivering We took up the challenge of ensuring accessibility to our

organisational agility, and our media platforms continued to be staffed 24/7.