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© 2023. Proprietary & Confidential. All Rights Reserved. © 2024. Proprietary & Confidential. All Rights Reserved. Axiata 5*5 Strategy: Progressing to the Next Vivek Sood Axiata Group CEO & Managing Director
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Disclaimer The following presentation contain statements about future events and expectations that are forward-looking statements by the management of Axiata Group Berhad (“Axiata”) (“Company”), relating to financial trends for future periods, compared to the results for previous periods, characterised by the use of words and phrases such as “might”, “forecast”, “anticipated”, “project”, “may”, “believe”, “predict”, “expect”, “continue”, “will”, “estimate”, “target” and other similar expressions. Forward looking information is based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. Our business operates in an ever-changing macro environment. As such, any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause Axiata actual results, performance and achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. “RM” shall mean Ringgit Malaysia being the lawful currency of Malaysia. Any discrepancies between individual amounts and totals are due to rounding.
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Business StrategyCorporate Strategy Financial Outcome Operational Excellence Reinventing Operating Model Winning Culture Journey to Telco-Techco Portfolio Optimisation & Value Illumination DPS 10sen p.a. High single digit total shareholder return p.a. Net debt / EBITDA of 2.5x by end-26 ^ Ongoing transformation of Link Net a Digital Telco to FibreCo Infrastructure play 3 (Progressively increase) Recap of Strategy presented in Axiata Analyst & Investor Day 2023
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The journey continues in 2025 as per our Game Plan to improve Balance Sheet, dividend capacity and portfolio transformation for long term sustainability and value creation. Indonesia Disadvantaged against larger players. Frontier Markets High market risk. Infrastructure Limited funding headroom for growth. Digital Axiata is not the natural owner. Challenges: 2024 2025 – 2026 • Sustainable dividends • Sustainable balance sheet Outcome by 2026 Re-position OpCos for right to win Cash for 10 sen DPS Pare down debt Grow DPS capacity Monetize Infrastructure & Digital Business 4 Axiata HoldCo High debt and HoldCo discount. 2023 • Repayment of USD100m debt • HoldCo transformation • Clean exit of Ncell • Proposed market consolidation of Dialog- Airtel • Resilience in Dialog and Robi • Ongoing fundraising process for EDOTCO • Monetisation of ADA • Structural transformation of XL and Link Net Pare down debt Recap of Game Plan as discussed in Axiata Analyst & Investor Day 2023 Axiata HoldCo: • Lowered debt by RM2.7B to RM8.4B • Restructured with headcount reduction of 130 Axiata Group: • Lowered debt by RM2.6B to RM22.2B • Net debt/EBITDA down from 3.36X to 2.59X • AOFCF of RM 1.9B
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Definitive Agreement signed on 10/12/2024 to merge XL Axiata with Smartfren. Transaction to close in 2Q25, with commitment to annual cost savings of USD 300 – 400M post completion of integration. 5 Merger Rationale Post-merger shareholding structure 34.8% 30.4% Minority shareholders5 34.8%4 XLSmart • XL Axiata will be the surviving entity and remain listed in IDX while issuing new shares to Smartfren shareholders as per merger ratio • As part of merger, Sinar Mas will receive 21.7% stake in XLSmart while Axiata stake will be 47.9% • Concurrent to merger, Sinar Mas would acquire an additional 13.1% stake in XLSmart from Axiata at a cash consideration of: – USD 400m at completion of the Proposed Merger – USD 75m on the first anniversary of the Proposed Merger subject to satisfaction of certain conditions • Axiata and Sinar Mas will each own 34.8% stake in XLSmart and will remain joint controlling shareholders with equal influence over XLSmart’s strategic direction • XL Axiata as surviving entity • Smartfren and Smart Telecom to be dissolved 1. Axiata Group Berhad owns a 100% stake in Axiata Investments (Labuan) Limited which in turn owns a 100% stake in Axiata Investments (Indonesia) Sdn Bhd; 2. Sinar Mas’s 77.5% stake is held through four corporate entities, namely PT Bali Media Telekomunikasi (41.2%), PT Global Nusa Data (16.7%), PT Wahana Inti Nusantara (10.2%), PT Gerbangmas Tunggal Sejahtera (9.4%); 3. PT Industri Telekomunikasi Indonesia (Persero) ("PTT INTI") holds a minority stake of 0.003% in Smart Telecom; 4. Post merger, Sinar Mas’s 35% stake in the XLSmart will be held through four corporate entities, namely PT Bali Media Telekomunikasi (24.6%), PT Global Nusa Data (4.7%), PT Wahana Inti Nusantara (2.8%), PT Gerbangmas Tunggal Sejahtera (2.6%); 5. Includes stake held by PT INTI; Note: Numbers excludes treasury shares; Shareholding may not sum to 100% due to rounding MergeCo has greater scale (27% CMS, comparable spectrum holding) to be competitive Annual run-rate pre-tax synergies of USD300 – 400M post completion of integration Axiata and Sinar Mas provide in- depth Regional telco experience and Local market expertise to XLSmart Financial resilience and improved returns from higher ARPU and ability to capture growth
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Merger results in a stronger Mobile operator and transforms the Indonesian Mobile sector into a 3-player market. 6 Standalone (LTM Q3 '24) Pro-forma (LTM Q3 '24) XLSmart Mobile subscribers ~58.6m ~35.9m ~94.5m Pre XL-FREN merger (%) Post XL-FREN merger (%) Customer Market share (LTM Q3 '24) Telco ATelco B XL Smartfren 45% 28% 17% 10% Telco A Telco B XLSmart 45% 28% 27% Note: Numbers may not add up to 100% due to rounding. All financials as of LTM September 2024; Assumed FX (USD / IDR) of 16,000; Financials presented are pre-synergies; EBITDA values denote revenue less operating expenses plus depreciation / amortization Source: Omdia; Company disclosure; Company quarterly report; Team analysis Revenue (IDR tr) 33.8 11.6 45.4 (USD 2.8b) EBITDA (IDR tr) 51.5% 17.4 5.0 43.1% 49.4% 22.4 Margin (%) (USD 1.4b)
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Structural transformation in Indonesia expected to drive long-term value creation for Axiata. 7 ✓ ✓ ✓ ✓ ✓ XL – Smartfren Merger Link Net Delayering • Carve-out ServeCo to XL • Transform Link Net into FibreCo • Build-to-suit FTTH deployment by Link Net for XL Organic Initiatives • ARPU increase • Direct distribution • Over 1/3 Revenue from digital channels • Improved site profitability ✓✓ ✓
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• Market repair / price hardening at Dialog and Smart • Zero-Base Cost approach helped to move towards cost excellence across all • Strong operational performance (YTD 3Q24) − Robi +2.2% Revenue, +14.4% EBITDA − Dialog +1.3% EBITDA (despite merger) − Smart +9.8% Revenue, +19.9% EBITDA • Net Debt / EBITDA (3Q24) − Robi: 1.1x − Dialog: 1.1x − Smart: Net cash • USD Debt reduction (3Q24 vs. 4Q23) − Robi: from USD 76M to 35M − Dialog: USD 156M to 145M (including Airtel debt) − Smart: Net cash • Further market repair / price hardening • Advance in cost excellence • Network collaboration • Improve capital productivity • Further reduce USD debt exposure • Strengthening fundamentals in Sri Lanka • Reforms in Bangladesh should help a quick recovery after short term shock 8 Wins Opportunities Frontier Markets: Enhanced resilience while delivering high EBITDA growth at Robi and Smart.
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• Completed Link Net ServeCo carveout in Sep. 2024 • EDOTCO performance (YTD 3Q24): ‒ Revenue +7.8% ‒ EBITDA +15.3% ‒ PATAMI turnaround to RM210m • MY: Increased Colo to 2.34x, CDB contract closure with extension to 2035, Won 30% share of DNB order • BD: Increased Colo to 1.65x with 795towers addition • PH: Increased Colo to 1.06x with c3,000 towers • Linknet: Cost optimization with segmental efficiency, Maximize asset utilization introducing 2nd tenant and Enterprise growth • EDOTCO: Further improve position ‒ MY: Capture demand from 5G; extension of contract with CDB by 10 years ‒ BD: Improve Colo and tower consolidation ‒ PH: Capture accelerating demand and improve cost structure ‒ Deleverage balance sheet by external fund raise 9 Wins Opportunities Infrastructure: Completed ServeCo carveout at Link Net to become a focused FiberCo. High EBITDA growth at EDOTCO.
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• ADA: Value Illumination ‒ Revenue +18.8% ‒ Alpha completed: USD 58M proceeds • BHSB: Digital bank launched ‒ Revenue +8.3% ‒ Close to securing a new investor • ADL: Secured internal revenue and made progress in growing external revenue • ADA: Data Transformation and AI driven opportunities especially in Developed geographies • BHSB: Strong cost focus to reduce cash burn for Bank and cash positive for ecosystem • ADL: External revenue growth. Resource efficiency 10 Wins Opportunities Digital: Strong foundation to enable further monetization / value illumination.
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Effective execution of our Strategy leads to the Group transforming into Converged Connectivity Group with focus on growing yields through better Cashflows and Net Income. 11 ADL Smart Dialog RobiCDB (joint control) XL+ (joint control) (merged with FREN) EDOTCO ADA Link Net BHSB • Operational excellence • Market Repair • Consolidation in markets and consequently improved ROIC • Be either No. 1 or Strong No. 2 with at least 25%+ market share • Effective results of consolidation. Control not necessary, but at least Joint-Control a must • Pivot into primarily a yield play • Value illumination and path to monetization, resulting in: − Long term sustainability of their businesses by inviting new capital − Proceeds from monetization to reduce corporate debt and fund new profitable growth opportunities − Scaled down Corporate Center Portfolio Category Long term Strategic Medium term – value illuminator and monetizable Portfolio Objective • Top priority is to improve cashflow and yield • Shift in Axiata’s priority and focus: − Connectivity & Convergence as the main business − Investments will be in Malaysia and Emerging Markets • Consolidation in Indonesia a key step under this pivot
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Role of HoldCo will evolve to strengthen management of Joint-Control entities, as overall number of subsidiaries has reduced. 12 Focus Areas of HoldCo VALUE CREATION MANDATORY FOR LISTED CO INVESTMENT MANAGEMENT Portfolio value creation, capital allocation, strategic planning Hygiene/ required functions for a listed entity to function SHAREHOLDER PROTECTION Functions to ensure shareholders best interests are protected Oversight and monitoring of portfolio performance Key Action Simplify Simplify Maintain Strengthen
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© 2024. Proprietary & Confidential. All Rights Reserved. Axiata Sustainability Framework: Deepening our commitment to ESG as we drive forward our Vision of Advancing Asia. Prioritised UN SDGs Advancing Green Economy Driving Governance and Risk Advancing Digital Societies Advancing Our People and Communities Enable all to thrive in a digitally connected world with a focus to improve the lives of people through technology whilst ensuring digital inclusion ~19 million lives impacted across areas of healthcare, education and financial inclusion Target: To impact the lives of around 23 million people between 2022 and 2025 Create positive social impact on our people (talent) and society. Internally this links to our agenda for Fair, Diverse & Inclusive Employment Ranked 22 out of 200 World Benchmarking Alliance on Digital Inclusion benchmark Promote climate action and circular economy across our markets to our commitment to the journey to become Net-zero no later than 2050 Axiata’s Near-Term and Net-Zero targets have been validated and approved by SBTi Target: To become net-zero no later than 2050 Top 30% in the ASEAN region on the NIST maturity industry benchmark Target: To rank among the top 25% by 2025 Adopt responsible and fair practices across our value chain to build long-term digital trust and enhance cyber security and data protection
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Today’s agenda is curated to shed further light on our progress and opportunities in 2025. 14 Strategic Portfolio: Asia Connectivity Leader Value Illumination & Path to Monetization CDB: Delivering the Merger Synergies Axiata.AI Capital Management Overview of Key Discussion • Path to profitability • Built-in Resilience Agenda for today: Governing the Portfolio • Progress against synergy targets • Opportunities & risks ahead • Execution progress • Outlook for 2025 • Priority internal & external AI use cases for Axiata • Execution progress in the new operating model • Financial outcome • New governance model • Governance framework and structure
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Summary of achievements from executing the Game Plan shared in Axiata Analyst & Investor Day 2023. Pared down debt Group Net Debt / EBITDA down from 3.36xto 2.59x Reduced HoldCo Cost by ~18% YoY Reduced USD debt exposure in Frontier Markets (3Q24 vs. 4Q23): • Robi: USD 76M to 35M • Dialog: USD 156M to 145M • Smart: Net cash Market Repair >10% ARPU increase at XL, Robi, Dialog, Smart since 2022 Link Net transfer of customers New shareholder to fund growth (Teaser to investors released)
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© 2024. Proprietary & Confidential. All Rights Reserved. Thank You
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© 2024. Proprietary & Confidential. All Rights Reserved. Strategic Portfolio: Asia Connectivity Leader Vivek Sood Axiata Group CEO & Managing Director
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Disclaimer The following presentation contain statements about future events and expectations that are forward-looking statements by the management of Axiata Group Berhad (“Axiata”) (“Company”), relating to financial trends for future periods, compared to the results for previous periods, characterised by the use of words and phrases such as “might”, “forecast”, “anticipated”, “project”, “may”, “believe”, “predict”, “expect”, “continue”, “will”, “estimate”, “target” and other similar expressions. Forward looking information is based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. Our business operates in an ever-changing macro environment. As such, any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause Axiata actual results, performance and achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. “RM” shall mean Ringgit Malaysia being the lawful currency of Malaysia. Any discrepancies between individual amounts and totals are due to rounding.
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© 2024. Proprietary & Confidential. All Rights Reserved. Recap: Guidance from last year was focused on 6 key pillars to improve our portfolio and unlock trapped value. Accelerate (Profitable) Growth Structural Transformation & Asset Light OpModel Optimum Capital Structure Market Repair Operational Excellence De-Layering & One : Many Economics Convergence & TechCo Agility Offensive Growth & Dividends Defensive Resilience & Sustainability Strategic Thrusts Key Focus Areas Key Actions Key Impacts • ARPU Uplift • Zero-based budgeting • Efficient capex rollout • Link Net customer transfer • Axentec • Link Net delayering • Improvement of tenancy ratios in EDOTCO • Reduce USD exposure • Proactive debt management • PAT & AOFCF protection Revenue Cost Higher EV / EBITDA Net Debt / EBITDA PAT & AOFCF Growth Axiata’s North Star R O I C > W A C C
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© 2024. Proprietary & Confidential. All Rights Reserved. To drive returns, we have guided for market repair via ARPU uplift as well as focus on operating efficiency to drive EBITDA improvements. Accelerate (Profitable) Growth Structural Transformation & Asset Light OpModel Optimum Capital Structure Market Repair Operational Excellence De-Layering & One : Many Economics Convergence & TechCo Agility Offensive Growth & Dividends Defensive Resilience & Sustainability Strategic Thrusts Key Focus Areas Key Actions Key Impacts Revenue Cost Higher EV / EBITDA Net Debt / EBITDA PAT & AOFCF Growth Axiata’s North Star R O I C > W A C C • ARPU Uplift • Zero-based budgeting • Efficient capex rollout • Link Net customer transfer • Axentec • Link Net delayering • Improvement of tenancy ratios in EDOTCO • Reduce USD exposure • Proactive debt management • PAT & AOFCF protection
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© 2024. Proprietary & Confidential. All Rights Reserved. Driving step-changes in revenue… In tandem with zero-based budgeting driving EBITDA growth… While more efficient capital rollout has led to improved capex / EBITDA… FY21 FY22 FY23 FY24*FY21 FY22 FY23 FY24* FY21 FY22 FY23 FY24* Revenue ex-Dev EBITDA Capex / EBITDA Combination of ARPU uplift with operating and capex efficiency delivering strong growth in profitability and returns. 26,766 29,172 32,341 33,825 80,693 85,637 99,367 101,238 140,758 177,458 186,209 165,775 346 370 375 405 13,287 14,235 15,885 17,729 33,082 38,543 45,990 50,445 58,772 51,595 61,512 60,130 187 188 202 238 *FY24 is an annualised figure from YTD 3Q24 0.75 0.64 0.45 0.42 0.57 0.40 0.41 0.32 0.54 1.01 0.41 0.32 Market Repair leading to increase in ARPU… FY21 FY22 FY23 FY24* Blended ARPU 36 39 41 43 124 127 142 140 367 382 380 444
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© 2024. Proprietary & Confidential. All Rights Reserved. 6 1 Figures are extracted from Companies’ own websites on actual reported figures available as of 25 November 2024. Updated the Axiata Group and subsidiaries based on current growth. No Company EBITDA YoY Increase/Decline 1 JTOWER Inc 54.3% 2 Advance Info Services 20.0% 3 Taiwan Mobile 20.0% 4 True Corp 16.5% 5 Axiata 14.6% 6 Robi Axiata 14.4% 7 KT Corp 13.4% 8 Maxis 12.8% 9 Sarana Menara Nusantara 12.4% 10 Far Eastone Tel 12.2% 12 XL Axiata 10.6% 15 Bharti Airtel 10.2% 17 SingTel 9.0% 18 Comsys Holdings 8.9% 19 Vodaphone Idea 6.2% 20 SK Telecom 3.6% 21 LG Uplus 2.4% 22 Dialog 1.2% 23 KDDI 1.0% 24 Nippon Telegraph 0.7% 25 China Mobile -2.0% 26 Telkom Indonesia -4.1% 27 Link Net -6.5% 28 CDB -6.7% No Company PATAMI YoY Increase/Decline 1 Axiata >100% 2 Robi Axiata >100% 3 True Corp 50% 4 Taiwan Mobile 42.0% 5 XL Axiata 38.4% 6 KT Corp 32.9% 7 Maxis 27.5% 8 Advance Info Services 17.0% 9 Intouch Holdings PCL 15.1% 10 Comsys Holdings 13.8% 11 SK Telecom 11.2% 13 Far Eastone Tel 10.5% 16 Vodaphone Idea 9.5% 18 SingTel 9.0% 19 CDB 8.5% 20 China Mobile 5.1% 21 JTOWER Inc 0.0% 22 Sarana Menara Nusantara -2.8% 23 KDDI -4.7% 24 Telkom Indonesia -9.4% 25 Bharti Airtel -10.5% 26 LG Uplus -13.9% 27 Nippon Telegraph -17.3% 28 Dialog -62.0% 29 Link Net -100.0% No Company EBIT YoY Increase/Decline 1 KT Corp 45.3% 2 Robi Axiata 39.1% 3 Vodaphone Idea 38.3% 4 Axiata 37.7% 5 SingTel 27.0% 6 Taiwan Mobile 20.0% 7 XL Axiata 18.6% 8 Intouch Holdings PCL 14.9% 9 Comsys Holdings 14.7% 10 Sarana Menara Nusantara 13.1% 11 SK Telecom 12.3% 13 Maxis 11.6% 16 Bharti Airtel 11.5% 18 Advance Info Services 7.9% 19 Far Eastone Tel 7.7% 20 CDB 5.8% 21 China Mobile 3.4% 22 LG Uplus 1.0% 23 KDDI 0.8% 24 Nippon Telegraph -3.2% 25 Telkom Indonesia -5.1% 26 Dialog -16.3% 27 JTOWER Inc -43.7% 28 True Corp -50.0% 29 Link Net -100.0% Strong EBITDA, EBIT and PATAMI growth in 3Q24 has placed Axiata in the top 5 among Asian peers.
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© 2024. Proprietary & Confidential. All Rights Reserved. Proactive debt management as well as cashflow improvements to improve capital structure. Accelerate (Profitable) Growth Structural Transformation & Asset Light OpModel Optimum Capital Structure Market Repair Operational Excellence De-Layering & One : Many Economics Convergence & TechCo Agility Offensive Growth & Dividends Defensive Resilience & Sustainability Strategic Thrusts Key Focus Areas Key Actions Key Impacts Revenue Cost Higher EV / EBITDA Net Debt / EBITDA PAT & AOFCF Growth Axiata’s North Star R O I C > W A C C • ARPU Uplift • Zero-based budgeting • Efficient capex rollout • Link Net customer transfer • Axentec • Link Net delayering • Improvement of tenancy ratios in EDOTCO • Reduce USD exposure • Proactive debt management • PAT & AOFCF protection
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© 2024. Proprietary & Confidential. All Rights Reserved. Proactive debt management and improving cashflow have lowered leverage and helped improve returns. Performance improvements driving UPAT… With PAT improvements and proactive financing management improving cashflows… Net debt / EBITDA in line with market risk… FY22 FY23 FY24*FY21 FY22 FY23 FY24* FY21 FY22 FY23 FY24* PATAMI AOFCF Net Debt / EBITDA 1,288 1,109 1,256 1,756 1,803 1,827 3,210 5,371 17,061 -33,388 20,124 7,587 72 53 93 120 *FY24 is an annualised figure from YTD 3Q24 -2,325 643 1,508 11,181 10,589 14,556 -8,117 23,510 24,904 2.48 2.72 2.83 2.53 1.59 1.39 1.24 1.11 0.47 1.39 1.33 1.16 Net cash position for all years
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© 2024. Proprietary & Confidential. All Rights Reserved. Transformation initiatives group wide via delayering has allowed operating companies to capture growth and realise “trapped” value. Accelerate (Profitable) Growth Structural Transformation & Asset Light OpModel Optimum Capital Structure Market Repair Operational Excellence De-Layering & One : Many Economics Convergence & TechCo Agility Offensive Growth & Dividends Defensive Resilience & Sustainability Strategic Thrusts Key Focus Areas Key Actions Key Impacts Revenue Cost Higher EV / EBITDA Net Debt / EBITDA PAT & AOFCF Growth Axiata’s North Star R O I C > W A C C • ARPU Uplift • Zero-based budgeting • Efficient capex rollout • Link Net customer transfer • Axentec • Link Net delayering • Improvement of tenancy ratios in EDOTCO • Reduce USD exposure • Proactive debt management • PAT & AOFCF protection
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© 2024. Proprietary & Confidential. All Rights Reserved. As part of our structural transformation in Indonesia, 750k Link Net subscribers have moved to XL Axiata. …with >1mn FBB subs. …with access to a network of more than 6mn HP in >127 cities. …enhancing XL’s value proposition as a strong triple play provider. Turning XL into Indonesia’s No. 2 ISP… ...with 4 million Home Passes. …with >10 years experience rolling out across East, Central and West Java as well as North Sumatra. …with extensive knowledge on local and national regulatory frameworks. Link Net into the 2nd largest FibreCo… Positioning Axiata better to capture the increasing broadband opportunity in Indonesia at a consumer and infrastructure level.
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© 2024. Proprietary & Confidential. All Rights Reserved. Delayering Axentec has better positioned Axiata to capture Bangladesh’s growing ICT solutions market. Market Size of ICT Solutions in Bangladesh Post-delayering, Axentec has won deals in multiple industries Key Adoption Drivers Oracle Cloud for N Mohammed Plastics to ensure business continuity EGCB opting for AI-based fault detection system Digital HR Transformation Solutions for IDCOL Radisson Blu opt for Wifi 6 technology for guest experience Cloud solutions for AB Bank Launch of Cypher, first prefabricated certified Tier-IV Data Center
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© 2024. Proprietary & Confidential. All Rights Reserved. Building on previous year’s success, we continue to drive towards our North Star with key initiatives. Accelerate (Profitable) Growth Structural Transformation Optimum Capital Structure Market Repair Operational Excellence [New] Value Illumination / Monetisation Convergence & TechCo Agility Offensive Growth & Dividends Defensive Resilience & Sustainability Strategic Thrusts Key Focus Areas 2025 Key Actions • ARPU Uplift • [New] Gross adds engine improvements • Maintain zero-based budgeting and efficient capex rollout • [New] Evolution of 5G FWA • [New] Open gateway • [New] Commercialisation of Cyberfusion Centre • Increasing tenancy ratios for InfraCos (to be covered separately) • [New] Successful completion of XLSmart and synergy realisation (to be covered separately) • Continuous proactive debt management Axiata’s North Star R O I C > W A C C
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© 2018. Proprietary & Confidential. All Rights Reserved. In line with our TechCo & Convergence ambitions, 3 key initiatives to be pursued group-wide in 2025. Sources: *Analysys Mason; **IDC 2023, STL Partners 2024; ***Gartner, Industry Reports Evolution of 5G FWA Commercialisation of Cyberfusion Centre Adoption Drivers Leveraging existing mobile licenses, as well as extensive coverage across our footprint Lower cost and time to rollout compared to FTTH Realise untapped demand for FTTH 1 2 3 BD: 6.4% SL: 1.6% KH: 13.3% 2023-29 Revenue CAGR* Growth Opportunity Key Enablers CFC is one of the largest SOCs in the region operating from two geo- locations CREST and FiRST accredited SOC facility Highly skilled team available 24/7 1 2 3 Cybersecurity market growth at 10% CAGR 2023-2028 across our footprint*** Growth Opportunity 1 2 Cyber Security Bill released in Malaysia in 2024 will will drive demand for Cybersecurity services In-house R&D for new products e.g. HELIOS 4 High Potential Network API Use Cases Open Gateway APIs 2024-33 Global Network API Target Addressable Market CAGR of 36%** Growth Opportunity Focus Areas Commercially launched multiple Open Gateway APIs using own developed API platform “Axonect” 1 Country gateway operations in Sri Lanka with API federation with all other SL operators with a focus on Identity & Fraud management 2 Winner of GSMA 2024 GLOMO Award for Open Gateway use cases3 Identity & Security Location Quality on Demand
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© 2024. Proprietary & Confidential. All Rights Reserved. Thank You
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© 2023. Proprietary & Confidential. All Rights Reserved. © 2024. Proprietary & Confidential. All Rights Reserved. ADA: Value illumination and path to monetisation Srinivas Gattamneni ADA CEO
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Disclaimer The following presentation contain statements about future events and expectations that are forward-looking statements by the management of Axiata Group Berhad (“Axiata”) (“Company”), relating to financial trends for future periods, compared to the results for previous periods, characterised by the use of words and phrases such as “might”, “forecast”, “anticipated”, “project”, “may”, “believe”, “predict”, “expect”, “continue”, “will”, “estimate”, “target” and other similar expressions. Forward looking information is based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. Our business operates in an ever-changing macro environment. As such, any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause Axiata actual results, performance and achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. “RM” shall mean Ringgit Malaysia being the lawful currency of Malaysia. Any discrepancies between individual amounts and totals are due to rounding.
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ADA at a glance We transform businesses using data, AI and technology Our Shareholders 1,500 Data, AI & Digital Talents 12 Markets 1,500+ Clients India Bangladesh Thailand Vietnam Cambodia Japan South Korea Philippines Malaysia (HQ) Singapore (HQ) Indonesia Sri Lanka $210m Gross Revenue (USD) $18m EBITDA (USD) $80m Cash in Hand (USD) Financials based on Q3 2024 YTD annualised
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Connecting Enterprises to Digital Consumers Key Market Tailwinds Driving Growth in Data, Marketing, Digital Commerce, and Customer Engagement Enterprise Digital Consumer Data & AI Marketing Digital Commerce Customer Engagement Favourable Market Drivers Enterprise investments in Data/AI platforms Personalisation at scale Seamless and personalised interactions Ecommerce acceleration
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CoPilot for CoPilot for CoPilot for CoPilot for full-funnel marketing ecommerce conversational AI customer data segments Our AI CoPilot Suite further enhance our data and digital operations
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8 INTERNAL ONLY ADA growth blue print driving global impact with Data & AI Building blocks of our profit and gross profit opportunity towards a profitable unicorn EBITDA (USD) $ 18m $ 29m $ 40m $ 93m $163m GROSS PROFIT (USD) $130m $ 50m • Proprietary IP & AI CoPilots • Geographic mix of developed markets • Integrated solutionsCurrent FY2024F Organic growth Tuck in M&A Aggressive Global Expansion $200m Establishing Data & AI Moat in every Client Driving global expansion into USA and MENA beyond Asia 1 2
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Journey to US$1B profitable unicorn Growth Driven by Organic Expansion, Strategic M&A, and Global Market Penetration $550m $260m $110m $160m $180m $110m $1B 2018 2021 2024 Organic growth Tuck-in M&A Global Expansion ADA Valuation Growth (US$)
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© 2024. Proprietary & Confidential. All Rights Reserved. Thank You
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© 2024. Proprietary & Confidential. All Rights Reserved. Boost: Value illumination and path to monetisation Sheyantha Abeykoon Boost CEO
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© 2024. Proprietary & Confidential. All Rights Reserved. Disclaimer The following presentation contain statements about future events and expectations that are forward-looking statements by the management of Axiata Group Berhad (“Axiata”) (“Company”), relating to financial trends for future periods, compared to the results for previous periods, characterised by the use of words and phrases such as “might”, “forecast”, “anticipated”, “project”, “may”, “believe”, “predict”, “expect”, “continue”, “will”, “estimate”, “target” and other similar expressions. Forward looking information is based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. Our business operates in an ever-changing macro environment. As such, any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause Axiata actual results, performance and achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. “RM” shall mean Ringgit Malaysia being the lawful currency of Malaysia. Any discrepancies between individual amounts and totals are due to rounding.
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3 Boost started in the payments sector, developed credentials as a lender and has now completed the journey becoming a Digital Bank Steady growth of Boost payment products… … have developed a successful platform for Boost Bank 2020 2021 2022 2023 2024 ~6x 11.1 Mn+ e-Wallet Customers 660k+ e-Wallet MSME touchpoints ~RM 700 Mn Deposits received within 6 months of launching the bank 200k+ Digital Banking Customers 80% through the embedded banking proposition ~70% Utlization of Capital Budget Achieving Y1 targets whilst remaining within the spend envelope 1st Embedded Banking proposition within an e-Wallet app in Malaysia Loan Book Growth RM 5 Bn+ GTV Per Anum on our Payment platforms Established track record as a Digital lender
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4 Boost portfolio products each play a significant part in value creation Product Portfolio Deposits Consumer Lending MSME Lending Open Loop Payment system e.g., Payment Gateway Investment Products offered via Boost Bank & Boost Wallet platforms Closed Loop Payment system Boost e-Wallet & Banking ecosystem Value Drivers Key Enablers Non-exhaustive
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Mobilised US$ 158+ Mn through investors & partners in our journey Funding mobilised to date & strategic partnerships 13.0 8.092.3 44.9 202.7 TBA 44.5 All units in USD Mn *Planned or committed investment to date • Existing base of customers • Digital underwriting capability in key markets • Payments rails & use cases • Embedded payments • Expertise across markets • Ecosystem of Digital companies • Core banking knowledge • Expertise in risk, control & compliance (JV with Boost Bank) Investor to be announced soon Strategic investor propositions • Large consumer ecosystem • Synergistic business models Q1 2025 announcement on the horizon
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Strategic ecosystem partners have formed the bedrock for Boost’s growth Partnerships to date have created significant value… … with an exciting pipeline for 2025 Embedded Banking & BNPL • Retail Partners: Savings jars with essential discount items targeted at B40 & undeserved • Telco Partners: Savings Jars with discounted phone bills Merchants & MSME’s • Payment Networks: Expediting rollout & usage of DuitNow QR through payment terminal partnerships Banking as a Service: • Loan channelling in Indonesia with a push for Boost to leverage partner’s full banking license services Axiata Family Partnership • Telco Financing: Leveraging Axiata ecosystem and partnering with XL Axiata (Indonesia) and SMART (Cambodia) Large global consumer brands • Food delivery platform: Savings jar & premium offers to Boost & partner ecosystem • Large global E – commerce brand: Loans disbursement via Boost Bank Large Local Co-operative • Banking-as-a-service: Differentiated loan offers via Boost Bank with premium savings status • SME development: aiding & growing the underbanked & unbanked MSME customers
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Boost started in the payments sector but swiftly built up the necessary components for the foundation of a digital bank Path to Profitability Cost maintenance while driving revenue growth • EBITDA positive by 2026 • Key to maintain profitability of Boost Connect while driving e-Wallet to self sufficiency Established track record as a lender Balance between growth & quality of assets • Malaysia: Driving new products through Boost Bank (e.g., Consumer & Corporate Loans) & continual growth of PayFlex • Indonesia: MSME proposition focus Regional Expansion Scaling footprint & lending proposition across SEA • Indonesia : Build in success in MSME loans with Consumer financing • Cambodia: Partnership within the Axiata family; consumer lending propositions Plans to become a unicorn… (US$ Mn) … driven by 3 key levers 300 – 350 1,000 ~3x 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 ~21x
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© 2024. Proprietary & Confidential. All Rights Reserved. Thank You
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© 2024. Proprietary & Confidential. All Rights Reserved. Link Net: Value illumination and path to monetisation Kanishka Wickrama Link Net CEO
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© 2024. Proprietary & Confidential. All Rights Reserved. Disclaimer The following presentation contain statements about future events and expectations that are forward-looking statements by the management of Axiata Group Berhad (“Axiata”) (“Company”), relating to financial trends for future periods, compared to the results for previous periods, characterised by the use of words and phrases such as “might”, “forecast”, “anticipated”, “project”, “may”, “believe”, “predict”, “expect”, “continue”, “will”, “estimate”, “target” and other similar expressions. Forward looking information is based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. Our business operates in an ever-changing macro environment. As such, any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause Axiata actual results, performance and achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. “RM” shall mean Ringgit Malaysia being the lawful currency of Malaysia. Any discrepancies between individual amounts and totals are due to rounding.
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www.linknet.co.id Recap: Linknet has successfully completed the carve-out and transfer of ServeCo to XL as per the plan and has moved to further delayer the BUs ServeCo Being carved out and transferred to XL, subject to finalising the required approvals BU focusing on providing enterprise solutions BU focusing on rolling out fibre, with the target to achieve 8.4m home passes by 2027 BU focusing on the media/content products FibreCo EnterpriseCo MediaCo 3 Internally separated with independent P&L, clear cost structure, dedicated management, distinct customer segments and inter-BU transfer pricing agreements with clear rate cards at arms- length Now part of XL Axiata’s fixed broadband services to residential customers
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www.linknet.co.id Progress through 2024: Key highlights and milestones on the path to transformation towards a full-fledged FiberCo 4 Completed deployment of over 0.6m new home-passes (HPs), surpassing 4m total HPs across Indonesia Completed the carve- out and transfer of ServeCo (residential business) to XL June Sep Signed MSA1 with XL to lease over 3m HPs (~750K active customers) for 10+5 years Signed CRA1 with XL for XL to resell pay-TV exclusively from Linknet 1. MSA = Master Services Agreement, CRA = Content Reseller Agreement Dec Extended B2S contract with XL from the initial 1m B2S to 3m B2S HPs Nov Secured commitment for over 0.6m B2S HPs from multiple other ISPs Moved to open access by signing the first landmark MoU with Surge, contract in final negotiation stage FiberCo growth XL as anchor tenant
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www.linknet.co.id Linknet is now composed of three highly complementary business segments FibreCo EntCo MediaCo ▪ No. 1 wholesale FTTH position (after Telkom) ▪ ~7m homes passed (4m already deployed, 3m pipeline) ▪ Long-term contracts with minimum guarantee & escalation ▪ 10+5-year contract with XL, others in pipeline2 ▪ Carrier neutral wholesale model ▪ Open access MoU signed with Surge, contract in negotiation ▪ 100% fibre by end of 2028 ▪ Ahead of schedule HFC to FTTH migration1 ▪ Large, blue-chip customer base ▪ 2.6k+ enterprise customers3 ▪ Satisfied & highly sticky customer base ▪ 130%+ net revenue retention rate for top 50 customers4 ▪ Proven ability to continually grow ARPC ▪ 20%+ ARPC growth5 ▪ Long-tenured customer relationships ▪ 5.5 years average tenure3 Range of connectivity, ICT & cybersecurity solutions for enterprise customers ▪ Deeply entrenched with low churn ▪ ~500k PayTV end subscribers3 ▪ Strong ties with top content providers ▪ 16+ years content provider relationships ▪ Top-tier and unique content portfolio ▪ HBO Max rights – 1 of only 2 providers6 in Indonesia ▪ Exclusive pay TV content service provider to XL ▪ 5+5-year contract Provide content offerings on a wholesale basis Note: 1. Migration commenced in 2021 2. More BTS being signed up with other ISPs 3. As of November 2024 4. Top 50 customers (~40% revenue contribution to EntCo) in FY20, compared against LTM Nov-24 revenues from the same set of customers 5. 2020-2023 ARPC CAGR for customers contributing 80% of recurring revenue in each year. Recurring revenue as of Dec considered for each year 6. The other provider is Telkom, which is the incumbent Lease FTTH infrastructure to telcos/ISPs via long-term contracts
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www.linknet.co.id FibreCo has accelerated the Fiber Factory model by securing multiple B2S contracts and rolling out at 2x capacity compared to historical average at optimal cost Increased contracted B2S with XL to 3m HPs including 1m already contracted in 2023 Secured contracts for additional B2S HPs from 3rd parties beyond XL Rollout of 2024 significantly higher compared to prior years Network rollout Cost improvements 2020 2021 2022 2023 2024 HFC FTTH Downward trend of installation cost per HP Reduction in cost of maintenance per HP Monthly average HP rollout (in thousands)1 Reduction in deployment cost per HP2 2020 2021 2022 2023 2024 2025 2026 2027 Note: 2. Higher cost in 2023 because off scattered area and not fully utilized backbone Note: 1. 2024 shows rollout pace in H1, as there was no new rollout in H2 2024, apart from minor extensions in existing areas, due to focus on ServeCo transaction 2020 2021 2022 2023 2024 2025 2026 2027 Over 15% reduction compared to 2022 ~40% reduction compared to 2022 2020 2021 2022 2023 2024 2025 2026 2027 Over 2x ~4x 30% reduction compared to 2022
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www.linknet.co.id Value creation in FiberCo will be driven by both managing cashflow from existing business as well as future growth fuelled by strategic funding Existing business Future growth Linknet is exploring various options to secure additional funding for the above growth ambition Revenue growth • Open access on existing 4m HP footprint • Provide infrastructure to EntCo for enterprise services Cost management • Optimisation of maintenance cost across the existing network • Reduction of installation cost per home connect Build-to-Suit (BTS) rollout • 2.4m HP rollout commitment from XL • Additional commitments from other ISPs in discussion (~0.6m secured already) • Ambition to reach 8.4m total HP by 2027 Fiber Factory • Reduced cost of rollout monetising existing network and using new methodologies • Multi-vendor turnkey and semi-turnkey approach for faster rollout Linknet has already signed a landmark MoU with Surge for open access
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www.linknet.co.id FiberCo has a well-defined GTM strategy for value creation Offer Open Access on existing footprint and any new B2S to multiple ISPs at the end of exclusivity period Selective Open Access rollout such as new capital city in Kalimantan End-to-end open access solutions 3 Existing network – long-term contract (10+5) in place with XL; high penetration already achieved Build-to-suit – backed by contracted minimum guarantee with anchor tenant 1 Anchor tenant for every new build (any ISP or MNO) Strategic partnerships Open access 1 2 3 Target primarily upper-and middle-class segments Develop strategic partnerships with ISPs and real estate developers Optimise deployment costs with strict area selection criteria 2
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www.linknet.co.id EntCo is diversifying its services, moving beyond connectivity, offering E2E ICT solutions while maintaining and serving key clients Connectivity Connectivity services via dedicated infra: dark fibre, leased line, etc. Internet connectivity for businesses via shared networks End-to-end solutions bundling equipment (along with connectivity products and managed services) VSAT or voice-related services, professional services (installation, relocation), and wireless connectivity (dedicated internet, P2P, etc.) Networking services provided by service providers, includes SD-WAN and VPN Cybersecurity-related managed solutions, managed security IaaS cloud services, DC co-location and managed equipments, IT infra ICT & cyber security solutions Revenue contribution (% of total) Overview of enterprise customer segments Government Financial services Hospitality & media Telecom operators Others 65% 49% 30% 47% 2023 2034F Connectivity ICT & cyber security Corporate TV Increasing contribution of ICT Corporate TV IPTV and CATV for corporate and hospitality customers such as hotels, hospitals, retailers and serviced apartments
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www.linknet.co.id MediaCo has, on one side, moved from B2C to B2B, while on the other hand, it has transformed to provide E2E media solutions Residential customers XL Axiata Other ISPs Corporate customers LN EntCo Retail B2C Wholesale B2B MediaCo NOW Residential customers Corporate customers Link Net (pre MediaCo) Retail B2C BEFORE Residential customers Corporate customers Pay TV via XL Pay TV via other ISPs OTT Wholesale rights for XL to provide all channels to customers (150+ channels) Wholesale rights for other ISPs to provide over 30 channels to customers, more rights being negotiated OTT rights for over 60 channels including being one of only 2 providers to have access to HBO Max Hospitality content offering Media sales Move from Retail to Wholesale E2E future-ready media solutions Serving major hospitality clients including major hotel chains (JW Marriott, Fairmont, Pullman, Mulia), hospitals (Siloam, National Hospital, Adi Husada, Mayapada), retail and government bodies Offer on screen (TVC) as well as off screen (booting ads, welcome screen scrollers etc), manage premium ad-inventory and offer digital campaigns and sponsorships
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© 2024. Proprietary & Confidential. All Rights Reserved. Thank You
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© 2024. Proprietary & Confidential. All Rights Reserved. EDOTCO: Value illumination and path to monetisation Adlan Tajudin EDOTCO Group CEO
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© 2024. Proprietary & Confidential. All Rights Reserved. Disclaimer The following presentation contain statements about future events and expectations that are forward-looking statements by the management of Axiata Group Berhad (“Axiata”) (“Company”), relating to financial trends for future periods, compared to the results for previous periods, characterised by the use of words and phrases such as “might”, “forecast”, “anticipated”, “project”, “may”, “believe”, “predict”, “expect”, “continue”, “will”, “estimate”, “target” and other similar expressions. Forward looking information is based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. Our business operates in an ever-changing macro environment. As such, any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause Axiata actual results, performance and achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. “RM” shall mean Ringgit Malaysia being the lawful currency of Malaysia. Any discrepancies between individual amounts and totals are due to rounding.
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EDOTCO Internal A. EDOTCO Group’s Journey transitioning to a balanced growth B. Strategic initiatives to drive value creation in the past three years C. Portfolio optimisation and monetisation D. Mitigation actions to address identified risks E. Key value drivers for Malaysia F. Key Takeaways 3
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2024 Myanmar • Pakistan • Sri Lanka • Malaysia • Bangladesh • Cambodia • Pakistan • Sri Lanka • Myanmar • Philippines • Indonesia EDOTCO’s Journey – Transitioning to balanced growth in the next phase Ready for value creation & monetization on the back of positive sustainable historical growth Sources: Audited FS; Axiata / EDOTCO Data Financials; Constant FX = 4.5 Notes: 1. Data for Y2023-Y2024 exclude Myanmar; 2. Annualised revenue & EBITDA contribution for Y2024 based on first 9 months 4 EDOTCO 1.0 EDOTCO 2.0 EDOTCO 3.0 Portfolio Expansion into South Asia / Frontier Carveout from Axiata Portfolio rebalancing towards Southeast Asia Value Creation & Monetisation >> EDOTCO 4.0 2020 2015 15.3 17.5 20.4 25.3 27.5 29.8 31.8 33.6 45.0 58.1 55.5 56.2 1.30 1.32 1.37 1.44 1.57 1.62 1.61 1.58 1.42 1.51 1.65 1.66 0% 50% 100%-15.0 35.0 Thousands 39% 43% 52% 49% 46% 38% 36% 35% 38% 37% 37% 38% 61% 57% 48% 51% 54% 62% 64% 65% 62% 63% 63% 62% 0% 50% 100% 150% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 9M2024 Southeast Asia South Asia CAGR/Changes (‘13-’24) +13% +29pp 157 181 238 308 344 341 402 418 440 551 550 575 64 68 105 147 152 152 247 243 275 366 355 402 0% 100%-400 600 Market Portfolio Revenue, US$ mn EBITDA, US$ mn EBITDA Margin, % Timeline 2013-2026 Owned and Managed Towers, # (‘000) Colo Ratio , x Rev. contribution, Southeast Asia vs. South Asia, % +18% +13% +0.36x 1. Groupwide Focus for EDOTCO 4.0: • Enhancing yield and maximising dividend for core markets • Growth in new markets • Monetisation of non-core assets • AI, analytics- driven initiatives to drive operational excellence 2. Colo ratio continuously increased from 1.30x to 1.66x 3. EBITDA Margin has increased from 41% to 70% 4. Portfolio rebalancing towards Southeast Asia Annualised based on 9M2024 Without MM EDOTCO Information use only for Axiata Analyst & Investor Day 2025 4 41% 37% 44% 48% 44% 45% 62% 58% 63% 66% 64% 70%
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Portfolio optimisation & rebalancing • Rebalancing portfolio – expansion in Southeast Asia i.e. PH & ID • Win-win CD merger resolution (MY) • Strategic acquisition to strengthen leadership in Malaysia – Touch Mindscape & D’Harmoni’s towers • Myanmar exit strategy – signed SPA Yield focus • Biggest TowerCo partner for 5G rollout in Malaysia • PAT turnaround for all NTCs except PH achieved positive PAT by Q3 ‘24 • Deliver highest incremental colocation in the region +0.24x through proactive marketing • Dynamic repricing program across NTCs • Selective build in Frontier Markets AI-driven initiatives & operational excellence • Data-driven analytics to drive cost efficiency • Digital Twin Creation of the Tower Network • Energy Analytics with AI- integrated platform • Uberisation: Mobile connected work force • Next-Gen NaPA+: Gen AI capability to proactively plan new sites EDOTCO Information use only for Axiata Analyst & Investor Day 2025 55 Strategic initiatives to drive value creation in the past three years, 2021-2024
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Ready for Monetisation Pakistan Sri Lanka Philippines Indonesia Growth Markets Myanmar ▶ Growing faster than market ▶ Driving operational excellence ▶ Drive towerco in-market consolidation ▶ Opportunistically scale up via future transformation deals (ID) ▶ Complete the sale process in Myanmar ▶ Self-sustaining and profitable operations ▶ Continue yield enhancement and operational excellence Core Markets Bangladesh Cambodia Malaysia ▶ Consolidate market leadership position while managing industry impacts (e.g. merger and capitalizing on key industry developments (e.g. 5G play) ▶ Enhancing yield and maximising dividend ▶ Exploring new business/operating/pricing models Emerging Market Focus Frontier Market Focus A Balanced Growth and Yield Play in the Focused Portfolio Portfolio Optimisation & Monetisation EDOTCO Group’s portfolio categorisation for growth, core, and monetisation-ready 66 EDOTCO Information use only for Axiata Analyst & Investor Day 2025
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Risk parameters Specific mitigation strategies Portfolio Frontier vs Emerging Markets Exposure i. Portfolio pivot towards Growth market in lower risk premium regions – Philippines and Indonesia ii. Monetisation strategy to exit for selected frontier markets iii. Self-sustaining, selective expansion, & yield enhancement strategies for retained frontier market exposure Industry CelcomDigi merger impact i. Successful closure of settlement arrangement with counter-party to foster a long-term partnership. (further details in subsequent slide) Country Myanmar exit i. Share Sale Agreement signed in April 2024 ii. Completion pending regulatory approval Business Yield & Balance Sheet Management i. Target to improve liquidity, effective management of capex, and maintain a healthy gearing level by: ii. Focusing on high-yielding revenue, namely colo with selective build iii. Intensify repricing efforts on both tower and power specifically for frontier markets iv. Hygiene efficiency to reduce working capital requirements Financial FX and Interest Rate volatility i. Borrow against matching cashflow profile to avoid interest & liquidity shock ii. Balanced mix between fixed and floating rate financing iii. Self sustaining NTCs including borrowing in local currency (LCY) iv. Prioritise LCY procurement contract & negotiate medium-term procurement contract with fixed FX for foreign currency (FCY) suppliers v. Hedging mechanism Mitigation actions to address identified risks and sustain balanced growth EDOTCO Information use only for Axiata Analyst & Investor Day 2025 77
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Key Value Drivers in Malaysia #1 TowerCo Partner for 5G Strategic IBS deployment Capturing red states National TowerCo Celcom-Digi merger • EDOTCO provides c. 2k sites for Digital Nasional, as of ’24 (~30%) • DNB’s capacity expansion under Phase 3 • Second 5G network Cornerstone Grid • ~470 Total IBS sites c. 10% revenue • ~75 new IBS sites in ’24 • High potential from demand of increasing data usage indoors and to convert existing portfolio to 5G Largest IBS portfolio • Largest tower coverage: Colo ratio of 2.34x • Major role in shaping industry policy • Main partner in supporting USP project and key gov’t connectivity initiatives i.e. JENDELA, NFCP, CB19 Driving national agenda • Extending portfolio life for long-term value: +7 years to the retained sites, and 12 years tenure for new sites • Cashflow net neutrality with sites swap & LD waiver Win-win resolution • Tapping into the 7 red states via partnership model • >40% of the future B2S demand from 5G will be in the red states Entering new market • Malaysia will remain as the biggest value contributor to the Group, >40% revenue • Malaysia is well- positioned to remain as the #1 TowerCo partner for 5G • High potential for IBS driven by growing indoor data demand and 5G • Increasing market share from red states • Malaysia to continuously support national agenda as National TowerCo • The CelcomDigi merger benefits both sides in a win-win dealCapturing more market share in MY 88
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EDOTCO is ready for the next stage of value creation & monetisation - Transitioning to balanced growth in the next phase: • Enhancing yield & maximising dividend in core markets; • Delivering growth in new markets; • Monetising non-core assets 2 Delivered stellar performance over the last 3 years, with 15% CAGR for Revenue and 22% CAGR for EBITDA. As of Q3 ’24: • All NTCs, except PH, are now self-sustaining and PAT positive; • Group tenancy ratio achieved 1.66x; Malaysia 2.34x 1 3 EDOTCO is strategically mitigating risks and sustaining balanced growth through portfolio optimisation, financial management, and partnerships, navigating challenges like the CelcomDigi merger and Myanmar exit while focusing on high-yielding revenue streams Key takeaways Sustaining Growth market and unlocking potential in new growth areas/businesses will be supported by new capital and/or managed level of debt funding 5 4 Malaysia will remain the highest value driver to the Group; leveraging on its market leadership in 5G, extensive portfolio coverage, cornerstone grid, and strong operational excellence 99
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© 2024. Proprietary & Confidential. All Rights Reserved. Thank You
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© 2024. Proprietary & Confidential. All Rights Reserved. CelcomDigi: Delivering the merger synergies Datuk Idham Nawawi CelcomDigi CEO
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2 Disclaimer This presentation and the following discussion by CelcomDigi Berhad (“CelcomDigi”) may contain forward- looking statements related to financial trends for future periods, compared to the results for previous periods characterised by the use of words and phrases such as “might”, “forecast”, “anticipated”, “project”, “may”, “believe”, “predict”, “expect”, “continue”, “will”, “estimate”, “target” and other similar expressions. Forward-looking statements are based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. It involves known and unknown risks, uncertainties and other factors which may cause actual performance, outcomes and results to differ materially from those expressed or implied in such forward-looking statements. Such forward-looking statements are not a guarantee of future performance. This presentation does not constitute an offer or invitation or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its completeness, accuracy or fairness. None of CelcomDigi nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.
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3 Private & Confidential Our Vision & Strategy Shape Assets for Future Growth Invest smartly in new platforms Build New Core Build new capabilities for sustainable, long-term growth Win in the Core Extend Market Leadership position Accelerate integration, synergies & operational excellence To unlock scale and efficiencies to deliver shareholder value & invest for growth1 2 3 4 Succeed with Talents Employer of choice by building talent and high-performance culture5 Vision Malaysia’s Top Telco-Tech Company in 5 years Our Strategic Pillars Advancing and Inspiring Society Inclusive and sustainable digital society
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4 Accelerate integration, synergies & operational excellence 2 years into merger, integration slightly ahead, scale and efficiencies unlocked • 75% of network modernisation completed • 20 IT systems completed, 19 ongoing • Expected ~RM1.2bn CAPEX avoidance over 5 years • 48 new stores transformed, ahead of target • Improved sales productivity by 1.2x • ~3,500 inspired talents with Top 400 leaders placement • Organisation refresh ~RM800mil steady-state OPEX savings post-2027 Tech integration on track Next-Gen Retail Transformation Successful People Integration
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5 Network IT People 902 8 - 1,200 60 - 2023 + 9M2024 Expected 5-year savings Capex Savings & Avoidance Others 39 30 59 4 31 150 140 160 2023 + 9M2024 263 350 Gross Synergy 949 1,290 357 ~800 Integration Cost (80) (950) (279) Net Synergy 869 340 78 RM’m P&L >> Synergy on track ~RM800mil OPEX savings expected in steady-state post 2027 Value creation providing capacity to invest and foster partnerships Expected savings @ steady-state 2027
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6 Win In the Core Prioritising Long Term Profitable Growth vs Short Term Gain Maintain leadership in mobile market 20.2 million subscribers as at Sep’24, SIM consolidation effects overcame Consumer postpaid revenue grew (+0.7% Q-Q Q3 2024) Increase in ARPU / ARPA, improved subs retention (+92K & +377K subs Q-Q, Y-Y) Prepaid revenue stabilizing (-1.4% Q-Q Q3 2024) Lessened impact from SIM consolidation & reduced reliance on one-time SIM Elevating customer experience Significant improvement in signal quality & throughput, 5G subs leadership New retail and digital experience 48 new stores led to improved sales productivity by 1.2x Brand and portfolio refreshed >50 products campaigns including unified CelcomDigi 5G offerings
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7 Build New Core Encouraging Growth in Home & Fibre and Enterprise solutions Home & Fibre ICT solutions Innovation Continued double-digit revenue growth (+18.2% Q-Q) – highest since merger, outpaced competitors • 5 Core Areas: Cybersecurity, Cloud, Fiber DC connectivity, 5G/AI, IOT • More than 150 projects in pipeline with existing & new customers Launched state-of-the-art AI Experience Centre (AiX), 15 pilot projects gone live
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8 Build New Core Accelerating AI and Gen AI adoption across the organisation Growing Use Case Library: Marketing & Products, Network Analytics Employee RAE AI Assistant for EB Sales Reduce EB sales cycle lengths by 20-30% and saves 14 hours a week on research and non-sales related tasks AIDA for Everyone Introduction to AI Course 30% of CDzens completed SOPHIA Automation Bot & AI Assistant >200 process automated in Business & IT Operations TIA Tech Intelligent Agents Driving next-gen OE with Intelligent Document (IDA), Test Engineering & Smart Automation (TESA), Test Data Specialist (TDS)
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9 Expanding CD Ecosystem Universities & Institutions Potential investors *List not exhaustive Innovative Solutions Innovation Centre Nation Building Experience Centre …and many more! Shape Assets for Future Growth Invest smartly in new platforms through partnerships
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10 Succeed with Talents Employer of choice by building talent and high-performance culture • Employee engagement index improved 12% • Leadership forums for Top 400 leaders, provide guidance and alignment of company priorities • A winning CelcomDigi culture achieved through various activities
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11 Advancing and Inspiring Society Pushing ahead on ESG agenda 1 INCLUSIVE & SAFE DIGITAL ACCESS SUSTAINABLE VALUE CHAIN 2 GOVERNANCE & PERFORMANCE CULTURE 3 ENVIRONMENTAL IMPACT & ACTION 4 >60,0000 Students & teachers engaged in future skills learning >Empowering scam awareness via Content Creators & Radio DJs Committed to company-wide emission reductions in line with the SBTi >100% Completion of Cybersecurity, Health & Safety, and OneCompliance modules >First company in M’sia certified with ISO 45003: Psychological Health & Safety >26,000 Supplier training hours Maintained constituency in the FTSE4Good Bursa Malaysia Index Achieved medium risk rating score of 23.7 4-star rating 2024 ESG RATINGS Outperformed industry average scores
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13 Continue to win in the core, prioritising long term growth over short term gain Delivering merger integration thesis with savings realisation and increased productivity Building new core and innovate focusing on 5G, AI and ICT solutions 1 2 3
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© 2024. Proprietary & Confidential. All Rights Reserved. Thank You
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© 2024. Proprietary & Confidential. All Rights Reserved. Axiata.AI Thomas Hundt Axiata Group Chief Strategy & Technology Officer
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Disclaimer The following presentation contain statements about future events and expectations that are forward-looking statements by the management of Axiata Group Berhad (“Axiata”) (“Company”), relating to financial trends for future periods, compared to the results for previous periods, characterised by the use of words and phrases such as “might”, “forecast”, “anticipated”, “project”, “may”, “believe”, “predict”, “expect”, “continue”, “will”, “estimate”, “target” and other similar expressions. Forward looking information is based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. Our business operates in an ever-changing macro environment. As such, any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause Axiata actual results, performance and achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. “RM” shall mean Ringgit Malaysia being the lawful currency of Malaysia. Any discrepancies between individual amounts and totals are due to rounding.
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Axiata.AI Transforming Potential of AI into Value Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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Our Vision on AI Transform to an AI powered TelcoTechco to deliver sustainable returns Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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Transformation powered by Axiata.AI – Organization wide AI transformation program AI Powered TelcoTechco AI products and ServicesIntelligent Digital Assets From Digital Telco → AI-powered TelcoTechco From Infrastructure Business → Intelligent Digital Assets From Digital Business → AI Business Transformation Outcome ▪ Network Intelligence ▪ Customer Intelligence ▪ Service Intelligence ▪ Energy Intelligence ▪ Tower Intelligence ▪ Digital Asset Intelligence ▪ AI powered Financial Services ▪ Intelligent Mar-Tech Solutions ▪ AI and API Products/Solutions Key Features Triple Core Axiata.AI driving AI Transformation across all Opcos Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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Our Journey from Analytics to Classical AI and GenAI Pre 2021 Analytics 2021 Launch of AI programme H2, 2022 AI Factory operations 2023 GenAI Introduction H1, 2022 AI Factory implementation 2022-23 People and AI skill development 2024 Launch of group wide AI transformation program Axiata.AI 2025 onwards AI@scale to deliver value Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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Axiata.AI launched in 2024 – Establishing Capabilities for AI execution Establish a culture that has the courage to change and a mindset of experimentation. Standard Data and AI Architecture Blueprint completed. Implementation of standard architecture in progress. Data and Architecture People Basic AI training for all employees. Customized AI training for all senior leaders. Hands on gamified AI program for employees. Governance and Risk Axiata Data/AI Governance Policy formalization. Minimum base guideline to be ensured by all Opcos. Board approved execution plan and monitoring. Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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Progress in 2024 Scale up AI Factory for classical AI use cases – 50% increase of use cases in production in 2024. More than 35 instances of GenAI use cases across group with focus on productivity and operational excellence. AI Opportunity Radar – Use Case Lens Game- Changing AI Internal Operation Everyday AI Classical AI Value Based Planning Next Best Offer Churn Management Upsell/Cross-Sell, Site monetization GenAI Marketing Image Gen. Customer Service Front Office Functions Back Office Operations High Impact Use Cases In 2024, we have scaled up Classical AI and implemented GenAI use cases Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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…While we are continuing to scale up Classical AI use cases… Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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…We have started implementing GenAI use cases across all Opcos Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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Use Case Demo – GenAI based Marketing Image Generation Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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Use Case Demo – GenAI based Marketing Video Generation Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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Use Case Demo – Customer Problem Resolution using GenAI Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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Leveraging on our API journey to maximize impact of AI External API Play 70,000+ Developers Internal API Play 6000+ APIs Among top 3 Telcos to run TM Forum Open Digital Architecture TMF Diamond Certification for APIs @ scale Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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Consistency and clarity in approach with agility as key Ⓒ 2024. Proprietary & Confidential. All Rights Reserved.
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© 2024. Proprietary & Confidential. All Rights Reserved. Thank You
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© 2024. Proprietary & Confidential. All Rights Reserved. Capital management: Strengthening balance sheet Nik Rizal Kamil Axiata Group Chief Financial Officer
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© 2024. Proprietary & Confidential. All Rights Reserved. Disclaimer The following presentation contain statements about future events and expectations that are forward-looking statements by the management of Axiata Group Berhad (“Axiata”) (“Company”), relating to financial trends for future periods, compared to the results for previous periods, characterised by the use of words and phrases such as “might”, “forecast”, “anticipated”, “project”, “may”, “believe”, “predict”, “expect”, “continue”, “will”, “estimate”, “target” and other similar expressions. Forward looking information is based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. Our business operates in an ever-changing macro environment. As such, any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause Axiata actual results, performance and achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. “RM” shall mean Ringgit Malaysia being the lawful currency of Malaysia. Any discrepancies between individual amounts and totals are due to rounding.
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Operational Excellence: Financials 3 Capital allocation framework 2.0 Capital allocation Cost excellence Balance sheet optimisation 1 2 4 Step change in capital productivity Financial guardrails & dividend upstream HoldCo cost reduction 3 New governance model Recap from AAID23
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© 2024. Proprietary & Confidential. All Rights Reserved. Operational Excellence: Operating model successfully re-invented in 2024 Operational Excellence at Axiata has been enhanced with a new operating model to govern and manage subsidiaries and joint-control entities in the Group. Shareholders Board of Directors Axiata Corporate Centre Management Team OpCo Boards and Committees Operating Companies Management Team OpCo Organisation OpCos : Subsidiaries and joint-control entities • Group Executive Council • Group Talent Council • Risk and Compliance Management Committee • Chief Technology Officer Council • Chief Information Officer Council • Axiata AI Group Council • Mergers and Acquisitions Committee • Capital Allocation Council Compliance Guidelines Main LR of Bursa Securities & Companies Act 2016 MCCG 2021 Axiata’s Corporate Governance Framework Board Audit Committee (BAC) Board Risk and Compliance Committee (BRCC) Board Investment Committee (BIC) Board Sustainability Committee (BSC) Board Nomination and Remuneration Committee (BNRC) AXIATA GOVERNANCE STRUCTURE Group Cooperation and Coordination
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© 2024. Proprietary & Confidential. All Rights Reserved. Operational Excellence: Capital management in the new operating model There is a capital management process of planning, monitor and controlling the Group’s financial resources to ensure optimal use of capital, maintain liquidity and achieve our business objectives, whilst maximising returns to shareholders. This is governed and executed with various board and management committees. Capital allocation framework 2.0 Capital allocation Cost excellence Balance sheet optimisation 1 2 4 Step change in capital productivity Financial guardrails & dividend upstream HoldCo cost reduction 3 New governance model Governed at Axiata Board Investment Committee (ABIC) , supported by Capital Allocation Council (CAC) and Mergers & Acquisitions Committee (MAC). OpCo capital investment goes through stringent stage gating process at OpCo Board Investment Committee (OBIC). The role of Axiata HoldCo is re-defined, and productivity enhanced with digital platforms and AI tools. Governed at Axiata Board Audit Committee (ABAC), supported by Axiata Treasury Management Committee (ATMC).
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© 2024. Proprietary & Confidential. All Rights Reserved. 1. Capital allocation: Key corporate activities in 2023 & 2024 We are radically re-positioning the footprint to focus on emerging markets, where we are exploring options and investment opportunities for long term strategic assets to create growth and yield. For other assets in the portfolio, Axiata will look to illuminate value and monetise to pare down Holdco debt, and fund investments in new growth opportunities. Edotco exit from Myanmar * Exit from Nepal, with Ncell sale Delayering in Indonesia In country consolidation in Sri Lanka 6 Value illumination of ADA In-country consolidation in Indonesia * * Pending regulatory approval
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© 2024. Proprietary & Confidential. All Rights Reserved. 1. Capital allocation: Governed at board and management investment committees Axiata Board Investment Committee (ABIC) ensures that investment activities of the Group generates value to shareholders, in terms of cash generation, return on investment, distributable profits and/or enterprise value creation. This board committee is supported and guided by management investment committees, ie Capital Allocation Council (CAC) and Merger & Acquisition Committee (MAC). Scope of responsibilities for BICScope of responsibilities for ABIC Investment considerations for MAC:Terms of reference for CAC: To manage Axiata’s capital allocation in relation to: a) OpCo investments, dividend upstream and financial guardrails b) Mergers and acquisitions c) Holdco cashflow a) Capex and ROU additions b) Mergers and acquisitions c) Post investment reviews a) Valuation of target b) Foreign mergers and acquisitions c) Significant change in business direction d) General offers and waivers e) Regulatory approvals
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© 2024. Proprietary & Confidential. All Rights Reserved. 2. Cost excellence: Continuously improving capital productivity ratio Axiata is likely to deliver capex below guidance of RM6.1bn in 2024, as stringent stage gating investment process for site rollout (for mobile coverage and capacity), build-to-suit towers, and homes passed rollout, was able to continuously improve OpCo’s capital productivity ratio. Exceptions are Link Net and Dialog, which experienced transformation and merger, respectively in 2024. FY21A FY22A FY23A FY24F FY25F FY26F FY27F Capital Productivity (%) FY21A FY22A FY23A FY24F FY25F FY26F FY27F Capital Productivity (%) FY21A FY22A FY23A FY24F FY25F FY26F FY27F Capital Productivity (%) FY21A FY22A FY23A FY24F FY25F FY26F FY27F Capital Productivity (%) FY22A FY23A FY24F FY25F FY26F FY27F Capital Productivity (%) FY21A FY22A FY23A FY24F FY25F FY26F FY27F Capital Productivity (%) AAID23 AAID24 Sites renewal contract Delayering of Link Net into fibreco in 3Q24 Dialog-Airtel merger in 2Q24 Capital Productivity = (Capex + ROU Addition) / EBITDA
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© 2024. Proprietary & Confidential. All Rights Reserved. 2. Cost excellence: Governed at OpCo board investment committee In 2024, we set up Board Investment Committees (OBIC) across most OpCos. The empowerment of OpCos, and the close collaboration with CTO Council and CIO Council, has been a key success factor for Axiata in optimizing capex spend and cashflow. Terms of reference for OBIC: a) Capex and ROU additions: annual budget, budgeted quarterly release and unbudgeted. b) Quarterly performance review and post investment review. c) Opex: major vendor awards. d) Commercial: major revenue share contracts. e) M&A and strategic alliances. Chief Technology Officer (CTO) Council Chief Information Officer (CIO) Council
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© 2024. Proprietary & Confidential. All Rights Reserved. 3. HoldCo cost reduction The Axiata HoldCo role has evolved and strengthened to govern subsidiaries and joint-control entities ie CDB and XLSmart (upon completion of proposed merger). In addition to headcount reduction, the use of digital platforms and AI tools is reducing Axiata HoldCo cost by ~15-20% p.a. FY21 - FY23 (Average) FY24F FY25F ~-19% ~-17%
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© 2024. Proprietary & Confidential. All Rights Reserved. 4. Balance sheet optimisation: Strengthening the balance sheet In 2024, Axiata has reduced Net Debt/EBITDA ratio to <3.0, where at end-Q324 it is at 2.59x. Since 2022, total Group debt has been reduced from RM25.4bn to RM22.2bn, whilst HoldCo debt from RM13.0bn to RM8.4bn. USD debt exposure is also mitigated, where USD debt of total Group is now at 52% and aligned with Axiata Capital Structure policy of 50:50 foreign-local currency debt. ❖ Total debt reduction by RM3.2bn, including efforts to optimise Axiata HoldCo balance sheet: o Liability Management by buying back 2050 Euro Medium Term Notes at a discount ie USD73.5 for every USD100.0 outstanding. o Further debt prepayment of USD150m at HoldCo. ❖ Net debt/EBITDA ratio drops back to below 3x in Q324 is driven by: o EBITDA growth of 10.0% in 2023 and another 14.6% in Q324 o Continuous effort to optimize balance sheet. ❖ Frontier market exposure to foreign exchange risk was mitigated with refinancing via local borrowings and internally generated funds. ❖ In Q3 2024, USD debt represented 52% of total debt for Axiata. 3.25 3.18 2.80 FY22A FY23A Q3 24 Axiata Net Debt/EBITDA ratio (x)Axiata & Holdco debt (RM’bn) Axiata debt Holdco debt 13.0 11.1 8.4 25.4 24.8 22.2 FY22A FY23A Q3 24 USD debt (USD’bn) 2.29 3.36 2.59 FY22A FY23A Q324
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© 2024. Proprietary & Confidential. All Rights Reserved. 4. Balance sheet optimisation: Governed at board and management committees With the support of Axiata Treasury Management Committee (ATMC) for both Axiata Board Audit Committee (ABAC) and OpCo Board Audit Committee (OBAC), the Group is able to reduce debt, as well as USD debt exposure amidst uncertain macro conditions in frontier markets. Terms of reference for ATMC As service center in managing treasury and corporate finance activities: a) Fund raising exercises to support business b) Optimise capital structure c) Increase efficiency of cash bank balance d) Manage treasury risk exposure incl. forex, interest and counter party risks Scope of responsibility of ABAC: Independent review of: a) Financial statements b) Financial reporting process c) Audit process d) Internal controls, risk management & governance e) Compliance with law & regulations Scope of responsibility of OBAC: Independent review of: a) Financial statements b) Financial reporting process c) Audit process d) Internal controls, risk management & governance e) Compliance with law & regulations
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© 2024. Proprietary & Confidential. All Rights Reserved. Financial outcome Axiata is on track to deliver our financial aspirations committed during AAID23. DPS 10sen p.a. High single digit total shareholder return p.a. Net debt / EBITDA of <2.5x by end-26 Progressively increase
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© 2024. Proprietary & Confidential. All Rights Reserved. Thank You
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© 2024. Proprietary & Confidential. All Rights Reserved. Governing The Portfolio Vivek Sood Axiata Group CEO & Managing Director
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Disclaimer The following presentation contain statements about future events and expectations that are forward-looking statements by the management of Axiata Group Berhad (“Axiata”) (“Company”), relating to financial trends for future periods, compared to the results for previous periods, characterised by the use of words and phrases such as “might”, “forecast”, “anticipated”, “project”, “may”, “believe”, “predict”, “expect”, “continue”, “will”, “estimate”, “target” and other similar expressions. Forward looking information is based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. Our business operates in an ever-changing macro environment. As such, any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause Axiata actual results, performance and achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. “RM” shall mean Ringgit Malaysia being the lawful currency of Malaysia. Any discrepancies between individual amounts and totals are due to rounding.
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© 2024. Proprietary & Confidential. All Rights Reserved. 3 Nominees 33.1% shares held 3 Nominees 33.1% shares held 6 out of 10 seats are from Principals Principals share joint control of the Board and the Company Axiata, along with its Investment Partners, maintains high degree of influence on its Associates. XL and Smartfren merger will be governed in a similar fashion with Axiata and Sinarmas holding 35% shares each.
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© 2024. Proprietary & Confidential. All Rights Reserved. AGMAnnual Board of Directors Quarterly Deliberate on strategic matters and provide guidance/approvals with alignment with partners Monthly Engagements with Management Regular touchpoints with management covering various topics such as Technology, Financial Performance, Risk Management, and People Ad Hoc Special Projects and Knowledge Sharing Principals tap into their respective pool of experts from their footprints to share best practices on select topics and assist Associates’ on Special Projects such as 5G Board Committees Quarterly Principals appoint observers to apprise nominee directors of pertinent strategic discussions Axiata Nominee Directors (NDs) Axiata NDs Axiata NDs and CXOs Axiata Investment Managers Axiata’s touchpoints with Associates are very similar to our existing engagements with Majority Owned Operating Companies. Frequency Axiata’s Representation Ad Hoc
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© 2024. Proprietary & Confidential. All Rights Reserved. Axiata and Investment Partner engage regularly to ensure strong alignment on key matters to deliver common objectives. Strategy, Business Planning, and Performance Management Financial targets Strategic investments and dividends Risk and Compliance, and Financial Controls Representation at BRCC Representation at BAC People and Remuneration Company scorecards Key management appointments Network and Technology Network and IT strategy Procurement CelcomDigi Governance approach to be followed for XL Smart in Indonesia
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© 2024. Proprietary & Confidential. All Rights Reserved. Thank You