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Axiata Sees Continued Strong Support from Shareholders at AGM 3

2012-05-23

Kuala Lumpur, 23 May 2012 - Axiata Group Berhad, ("Axiata"), announced today that its shareholders approved all the resolutions tabled at its 20th Annual General Meeting ("20th AGM"). The following resolutions were tabled and subsequently approved by shareholders:-

Audited Accounts

Shareholders resolved the receipt of the audited financial statements for the financial year ended 31 December 2011 ("FY2011") which saw the Group post strong results amidst slower market conditions and weakening currencies against the Ringgit. 2011 also saw the Group's. Group's total subscriber base expand to close to 200 million, up 25%, an average of 3.3 million per month, making the Group one of the largest telcos in the region.

Axiata ended the year in a position of strength with RM6.6 billion in cash and balance sheet significantly strengthened. Axiata Group's Gross Debt to EBITDA ratio, at 1.6 x, represents one of the healthiest balance sheets in the industry.

Re-election of Directors

Tan Sri Dato' Azman Hj. Mokhtar, Mr David Lau Nai Pek and Mr Kenneth Shen were re-elected as Directors by shareholders. Tan Sri Dato' Azman Hj. Mokhtar and Mr Kenneth Shen are both Khazanah's representatives on the Board of Axiata.

Re-appointment of Auditors

Shareholders approved the re-appointment of PricewaterhouseCoopers as the Auditors of the Company for FY2012.

Shareholders' Mandate for Recurrent Related Party Transactions

The shareholders have granted mandate for the Group to enter into recurrent related party transactions ("RRPT") of revenue, or trading, nature with the Telekom Malaysia Group of companies. The RRPT are necessary for Axiata's business and are intended to meet its business needs on the best possible terms as well as provide additional business opportunities.

Dividends

Shareholders approved the proposed final dividend of 15 sen for FY2011. The final dividend, totaling an estimated amount of RM1.2 billion, will be paid to the shareholders on 14 June 2012. Combined with the interim dividend paid by Axiata in November 2011 of 4 sen, Axiata would have paid a cumulative dividend payout of 19 sen for FY2011, equaling a 60% payout; thus, doubling Axiata's dividend payout policy of 30% of its Profit After Taxation and Minority Interest ("PATAMI"). The dividend is based on the group's normalised PATAMI.

Amendments to Articles of Association

Also approved, was the proposal on amendments to Axiata's Articles. The amendments are intended to ensure that the Articles comply with the additional requirements of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad following certain amendments which took effect in January this year as well as to enhance the efficiency of the Company's administration.

Withdrawal of Resolutions

2 resolutions, namely on amendments to Articles on Directors' Fees and determination of Directors' Fees for FY2012 and subsequent years of RM3.9 million was earlier withdrawn from being tabled at the 20th AGM. The withdrawal, lauded by Minority Shareholder Watchdog Group and minority shareholders of Axiata, reflects Axiata's transparency and openness in taking into account its stakeholders' point of view. This is in line with Axiata's staunch stance in championing high corporate governance and best practices.

Dato' Sri Jamaludin Ibrahim, President & Group Chief Executive Officer of Axiata added "We are very happy with the outcome of the AGM and I would like to thank our shareholders for the continued support they have shown us. 2011 marked another strong year for Axiata. Despite the challenges faced in the first half, such as slower than expected industry growth, investment in data and changes in revenue mix as well as the strengthening Ringgit, the Group ended the year in a position of strength. Our performance resulted in strong balance sheets, not only at Group level but all major OpCos. The continued achievements seen in 2011 have enabled us to increase our dividends at group level as well as at XL and Dialog".

 

About Axiata

Axiata is one of the largest Asian telecommunication companies. Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India and Singapore. India represents one of the fastest growing markets in the world. In addition, the Malaysian-grown holding company has a stake in mobile telecommunication operations in Thailand.

The Group's mobile subsidiaries and associates operate under the brand name, 'Celcom' in Malaysia, 'XL' in Indonesia, 'Dialog' in Sri Lanka, 'Robi' in Bangladesh, 'HELLO' in Cambodia, 'Idea' in India and 'M1' in Singapore.

The Group's, including its subsidiaries and associates, has over 190 million mobile subscribers in Asia. The Group revenue for 2011 was USD5.4 billion. The Group provides employment to over 20,000 people across Asia. Axiata's vision is to be a regional champion by 2015 by piecing together the best throughout the region in connectivity, technology and talent, uniting them towards a single goal: Advancing Asia.

Axiata was awarded the Frost & Sullivan 2009, 2010 and 2011 Asia Pacific ICT Award for Best Telecom Group and the Telecom Asia Best Regional Mobile Group 2010 and 2011 for its operations in multiple Asian markets.

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