Integrated Annual Report 2018 | Axiata Group

CHAMPIONING DIGITAL INNOVATION & TECHNOLOGY TO ADVANCE ASIA

INTEGRATED ANNUAL REPORT 2018

Globe Map
Pakistan
Pakistan
India
India
Nepal
Nepal
Bangladesh
Bangladesh
Myanmar
Myanmar
Thailand
Thailand
Cambodia
Cambodia
Sri Lanka
Sri Lanka
Malaysia
Malaysia
Singapore
Singapore
Indonesia
Indonesia
Prism Map
ADVANCING ASIA
AS A NEW GENERATION DIGITAL CHAMPION

As one of the leading telecommunications group in Asia, Axiata has transformed itself into a Triple Core Strategy driven business focusing
on Digital Telco, Digital Businesses and Infrastructure.

Today, Axiata's Digital Telco and Digital Businesses operate across 11 countries, while its global platform business has access to 3.5 billion consumers.

Indicator noteHover over each country for more

ADVANCING ASIA AS A NEW GENERATION DIGITAL CHAMPION

As one of the leading telecommunications group in Asia, Axiata has transformed itself into a Triple Core Strategy driven business focusing on Digital Telco, Digital Businesses and Infrastructure.

Today, Axiata's Digital Telco and Digital Businesses operate across 11 countries, while its global platform business has access to 3.5 billion consumers.

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Digital Telco
Celcom
Dialog
Ncell
XL axiata
Smart
Robi
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Digital Businesses
Boost
ada
apigate
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Infrastructure
edotco
OUR BUSINESS

THE AXIATA GROUP

Axiata continues to evolve its business in line with dynamically shifting industry trends and developments, capturing growth and opportunities arising from the Fourth Industrial Revolution (IR 4.0).

Our Vision: New Generation Digital Champion by 2022

Our Purpose: Advancing Asia

Our Values: Uncompromising Integrity, Exceptional Performance

Our Goals: Performance, People, Partnership, Planet & Society

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Triple Core Strategy

Digital Telco

Digital Telco

Transforming from pure-play mobile service providers to converged digital telcos

Digital Telco

Digital Telco

Digital Businesses

Digital Business

Advancing our three core digital businesses towards profitability

Digital Businesses

Digital Business

Infrastructure

infrastructure

Award-winning regional tower company poised for global growth

Infrastructure

infrastructure
STATEMENTS AND ANALYSIS

Axiata “Shifts Gear” TO REALISE DIGITAL AMBITIONS

CHAIRMAN’S STATEMENT

TAN SRI GHAZZALI SHEIKH ABDUL KHALID

TAN SRI GHAZZALI SHEIKH
ABDUL KHALID
Chairman

The year 2018 can be described as pivotal for Axiata as the Group responded to volatile macroeconomic conditions, technological and market disruptions, demand shifts and regulatory uncertainties across the region.

Read Tan Sri Ghazzali Sheikh Abdul Khalid’s full statement.

IN CONVERSATION WITH AXIATA GROUP BERHAD’S
PRESIDENT & GROUP CEO

TAN SRI JAMALUDIN IBRAHIM

TAN SRI JAMALUDIN IBRAHIM Managing Director/President & Group Chief Executive Officer

We are confident of retaining our leadership position in ASEAN and South Asia, in addition to seeing promising growth and definitive profit improvement moving into 2019.

Read our conversation with Tan Sri Jamaludin Ibrahim.

OUR STRATEGY

OUR LONG-TERM STRATEGY TOWARDS DIGITAL MARKET LEADERSHIP

In line with its vision of being a Digital Champion by 2022, Axiata is executing its Triple Core Strategy alongside its short-term “Shifting Gear” initiatives.

Long-Term Strategy (2016 – 2022)

Eight Needle-Moving Strategic Initiatives

Operational Performance and Cost Optimisation

Operational Performance and Cost Optimisation

Target by 2022: Top Performer in all Markets in all Key Metrics

New Growth Areas

New Growth Areas

Target by 2022: Triple Core: Digital Telco + Digital Businesses + Infrastructure = Collaboration/Group Synergy

Functional Superiority and Digitisation

Functional Superiority and Digitisation

Target by 2022: Digitised and Modernised functions

Distinct Competitive Differentiation and Clear New Business Model

Distinct Competitive Differentiation and Clear New Business Model

Target by 2022: Value Discipline with Clear and Distinct Customer Proposition

Industry Restructuring and Rationalisation

Industry Restructuring and Rationalisation

Target by 2022: Sustainable Market Structure

Optimum Portfolio


Optimum Portfolio

Target by 2022: Optimum Capital Allocation for Growth and Dividend

Sustainability and Stakeholder Management

Sustainability and Stakeholder Management (incorporating Regulatory, Digital Privacy and Trust, and Cyber Security)

Target by 2022: Exemplary Long-term Corporate Citizen, Holistic Focus, Regulatory Fairness

Organisational and Cultural Changes

Organisational and Cultural Changes

Target by 2022: Modern, Agile and Digital (M.A.D.) Organisation

Operational Performance and Cost Optimisation

Operational Performance and Cost Optimisation

Operational Performance and Cost Optimisation

Target by 2022: Top Performer in all Markets in all Key Metrics

New Growth Areas


New Growth Areas

New Growth Areas

Target by 2022: Triple Core: Digital Telco + Digital Businesses + Infrastructure = Collaboration/Group Synergy

Functional Superiority and Digitisation

Functional Superiority and Digitisation

Functional Superiority and Digitisation

Target by 2022: Digitised and Modernised functions

Distinct Competitive Differentiation and Clear New Business Model

Distinct Competitive Differentiation and Clear New Business Model

Distinct Competitive Differentiation and Clear New Business Model

Target by 2022: Value Discipline with Clear and Distinct Customer Proposition

Industry Restructuring and Rationalisation

Industry Restructuring and Rationalisation

Industry Restructuring and Rationalisation

Target by 2022: Sustainable Market Structure

Optimum Portfolio


Optimum Portfolio

Optimum Portfolio

Target by 2022: Optimum Capital Allocation for Growth and Dividend

Sustainability and Stakeholder Management

Sustainability and Stakeholder Management (incorporating Regulatory, Digital Privacy and Trust, and Cyber Security)

Sustainability and Stakeholder Management

Target by 2022: Exemplary Long-term Corporate Citizen, Holistic Focus, Regulatory Fairness

Organisational and Cultural Changes

Organisational and Cultural Changes

Organisational and Cultural Changes

Target by 2022: Modern, Agile and Digital (M.A.D.) Organisation

Short-Term Focus (2019 – 2020)

“Shifting Gear” Initiatives

  • Focus on profit growth relatively more than revenue market share growth
  • Spotlight on opex and capex efficiency
  • Reprioritise or re-scope some investments with long payback
  • Fund investments in new growth areas mostly through strategic partnerships or financial investors
  • Monetise existing assets to extract more value
  • Accelerate structural changes
  • Aggressive Network and IT Modernisation
  • Reflect the above in Key Performance Indicators
THE VALUE WE CREATE

LONG-TERM GROUP VALUE CREATION MODEL

Axiata requires inputs from our six capitals to create outcomes and value aligned with achieving our ambition of becoming a Digital Champion by 2022.

Value Created and Outcomes
  • Delivering Long-Term Value as a Regional and Global Player
  • Building a Modern, Agile and Digital (M.A.D) Asian Talent factory
  • Becoming a Trusted and Reliable Digital Partner
  • Supporting Governments and Communities in Our Market
  • Enabling Digitally-Connected Societies
  • Minimising Environmental Impact
RELATED KEY CAPITALS
Financial Capital
Financial Capital
Social and Relationship Capital
Social and Relationship Capital
Financial Capital
Financial Capital
Human Capital
Human Capital
Financial Capital
Financial Capital
Intellectual Capital
Intellectual Capital
Social and Relationship Capital
Social and Relationship Capital
Financial Capital
Financial Capital
Social and Relationship Capital
Social and Relationship Capital
Financial Capital
Financial Capital
Manufactured Capital
Manufactured Capital
Social and Relationship Capital
Social and Relationship Capital
Financial Capital
Financial Capital
Manufactured Capital
Manufactured Capital
Natural Capital
Natural Capital
Intellectual Capital
Intellectual Capital

Value Created and Outcomes

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Related Key Capitals

Financial Capital
Financial Capital
Social and Relationship Capital
Social and Relationship Capital
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Related Key Capitals

Financial Capital
Financial Capital
human Capital
Human Capital
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Related Key Capitals

Financial Capital
Financial Capital
Intellectual Capital
Intellectual Capital
Social and Relationship Capital
Social and Relationship Capital
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Related Key Capitals

Financial Capital
Financial Capital
Social and Relationship Capital
Social and Relationship Capital
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Related Key Capitals

Financial Capital
Financial Capital
Manufactured Capital
Manufactured Capital
Social and Relationship Capital
Social and Relationship Capital
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Related Key Capitals

Financial Capital
Financial Capital
Manufactured Capital
Manufactured Capital
Natural Capital
Natural Capital
Intellectual Capital
Intellectual Capital
OUR PERFORMANCE

FINANCIAL REVIEW

Read about our Financial Performance in 2018 and other highlights.

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Operating Revenue
(RM Billion)
Operating Revenue
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EBITDA
(RM Billion)
EBITDA
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PAT
(RM Billion)
PAT
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Normalised PATAMI
(RM Billion)
PATAMI
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ROIC
%
PATAMI
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Customers
(Million)
PATAMI
OUR GOVERNANCE

CORPORATE GOVERNANCE OVERVIEW

The Board strongly advocates and supports the principles of good corporate governance, and continually strives to strengthen Axiata’s governance systems and processes towards ensuring the highest levels of governance Group-wide.

CORPORATE GOVERNANCE PRACTICES
Principle A: Board Leadership and Effectiveness
Principle B: Effective Audit and Risk Management
Principle C: Integrity in Corporate Reporting and Meaningful Relationship with Stakeholders
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top50 asean public
top3 PLCS

MSWG-ASEAN Corporate Governance
Recognition Awards 2018

OTHER INFORMATION

NOTICE OF ANNUAL GENERAL MEETING

date

Day & Date:
Wednesday, 29 May 2019

time

Time:
10.00 a.m.

locations

Venue:
Nexus Ballroom 2 & 3, Level 3A, Connexion@Nexus,
No. 7 Jalan Kerinchi, Bangsar South City,
59200 Kuala Lumpur, Malaysia