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2Q 2013 Results

30 August 2013
Dato Sri Jamaludin Ibrahim, President & Group CEO James Maclaurin, Group CFO

Executive Summary: 2Q 2013


Strong QoQ growth aided by modest performance improvement at XL in 2Q 2013

Overall results showed good revenue traction but EBITDA and PAT impacted by adverse pricing and data investments at XL and forex: YTD growth QoQ growth : Revenue +5.2% ; EBITDA -3.2% ; PAT -2.2% : Revenue +3.3% ; EBITDA +4.7% ; PAT +4.7% ; EBITDA -3.9% ; PAT -8.0%

2Q YoY growth : Revenue +4.8%

Group posted stronger results @ constant currency. Most local currencies weakened against RM (except for BDT). YTD growth QoQ growth : Revenue +7.6% ; EBITDA -0.9% ; PAT -1.0% : Revenue +3.7% ; EBITDA +5.2% ; PAT +5.1% ; PAT -6.9%

2Q YoY growth : Revenue +7.1% ; EBITDA -1.7%

Annualised ROIC at 10.7% and ROCE at 8.6%. The Board of Directors has declared an interim tax exempt dividend under single tier system of 8 sen per share for the financial year ending 31st December 2013.

2Q 2013

Key Group Highlights (1/2):


1H 2013: Operating companies performed well despite challenges in data profitability Celcom announced the launch of Escape (an OTT play), for 1st September 2013. Moderate growth in revenue (4% YTD) despite loss of domestic roaming revenues in September 2012. Excluding domestic roaming, 1H2013 revenue growth would have been 7%.

XLs results improved in 2Q13 due to data growth and revenue traction from gradual price optimization strategy QoQ revenue increased 5% due to overall growth indicating a modest recovery

Growth number based on results in local currency in respective operating markets

2Q 2013

Key Group Highlights (2/2):


1H 2013: Operating companies performed well despite challenges in data profitability, with double-digit revenue growth in Dialog, Robi and Smart

Strong double-digit revenue growth at 15% (YTD) and EBITDA growth at 9% (YTD) Data revenue (excluding SMS and VAS) grew 57% while voice revenue grew 5% (YTD)

Strong progress in all aspects of business Outstanding double-digit revenue growth of 21%; EBITDA grew by 37% and PAT by >100% (YTD)

Successful integration of Smart and Hello delivering results ahead of schedule Revenue for the combined entity grew by 38% YTD and EBITDA grew at >100% YTD More than 100% growth in data revenue driven by Smart Exchange

Growth number based on results in local currency in respective operating markets

2Q 2013

Results at a glance:
QoQ shows positive traction across all metrics
Financial highlights
RM mn Revenue EBITDA EBITDA margin % PAT Normalised PAT PATAMI Normalised PATAMI Capex
% of revenue
Based on OpCo figures, as per Appendix slides

2Q 4,629 1,864 40.3% 707 742 645 663 1,000


21.6%

1H 9,111 3,644 40.0% 1,382 1,458 1,259 1,320 1,886


20.7%

2Q YoY growth 4.8% -3.9% -3.6pp -8.0% -11.1% -3.3% -7.5% -15.2%

QoQ growth 3.3% 4.7% 0.6pp 4.7% 3.6% 4.9% 0.7% 13.0%

1H growth 5.2% -3.2% -3.4pp -2.2% -9.8% 2.2% -5.9% -14.2%

OpCo local currency QoQ growth Celcom XL Dialog Robi


Revenue EBITDA EBITDA margin PAT Normalised PAT 2% 3% 0.6pp 8% 5% 5% 6% 0.3pp 12% 20% 3% 1% -0.4pp -40% 13% 7% 3% -1.6pp -2% 19%

OpCo local currency YTD growth


Revenue EBITDA EBITDA margin PAT Normalised PAT 4% 4% -0.1pp 2% 2% 1% -16% -7.9pp -54% -51% 15% 9% -1.8pp >100% -6% 21% 37% 4.5pp >100% >100%

Note: OpCos PAT, except Celcom : PATAMI

Operating Free Cash Flow* % of revenue

513
11.1%

1,075
11.8%

23.1%

-8.7%

24.6%

*OFCF= EBITDA- Capex- Net Interest-Tax

2Q 2013

5% YoY revenue driven by strong overall performance


@ Actual rate
4,629

@ Constant rate
142
4,417

4,417

21

42

81

11

74

118

17

101

102

4,629

In RM mn

Revenue Q212

Voice

SMS

PureData

VAS

Others

Revenue Q213

In RM mn

Revenue Q212

Voice

SMS

PureData

VAS

Others

Forex

Revenue Q213

Voice revenue is showing strong growth at Robi and Smart driven by higher sub base SMS business in Malaysia and Indonesia have structural industry wide headwinds. Celcom had a SMS revenue decline QoQ. However in other countries SMS business showed a growth YoY data revenue has shown strong growth in most markets driven by increasing smartphone penetration and data usage. Celcom is leading the overall data revenue growth while SMART grew most in percentage terms Others impacted by handset revenues, transmission revenue and USP

Note: Others include interconnect revenue at XL, device revenue and USP revenue at Celcom. Numbers may not add up due to rounding

2Q 2013

Group EBITDA : YTD11YTD12YTD13


EBITDA on a declining trend mainly due to lower contribution from XL

YTD11 to YTD12
EBITDA growth: +7.7% ; +RM270mn

YTD12 to YTD13
EBITDA growth: -3.2% ; -RM120mn

RM Million

119 3,494

21

18

41

10

61

3,764

82

351 91 21 47 10 3,644

Dialog

Dialog

Hello

Robi

Celcom

Celcom

Robi

Inter Elimination/ Multinet/Others

Inter Elimination/ Multinet/Others

EBITDAYTD'11

EBITDAYTD'12

YTD'11 Celcom 1,541 XL 1,691 Dialog 202 Robi 184 Hello (3) InterElim/Multinet/Others (121) GROUP 3,494

EBITDA

YTDGrowthRates

(+119) (+21) (+18) (+41) (+10) (+61) (+270)

YTD'12 +7.7% Celcom 1,660 +1.3% XL 1,712 +8.8% Dialog 220 +22.2% Robi 225 +318.2% Hello 7 +50.4% InterElim/Multinet/Others (60) +7.7% GROUP 3,764

EBITDA

YTDGrowthRates

(+82) ( 351) (+21) (+91) (+47) ( 10) ( 120)

+4.9% 20.5% +9.5% +40.6% +646.5% 16.6% 3.2%

EBITDA Celcom XL Dialog Robi Smart Inter Elim/Multinet/Others GROUP

EBITDAYTD'13

Smart

XL

XL

YTD'13 1,742 1,361 241 316 54 (70) 3,644

YTD11 to YTD12 EBITDA INCREASED BY RM270MN YTD12 to YTD13 EBITDA DECREASED BY RM120MN
Note: YTD12 EBITDA are restated figures for reclassification of Celcom device subsidy cost.

2Q 2013

Normalised Group PAT : YTD11 YTD12 YTD13


Normalised PAT on declining trend mainly caused by lower contribution from XL
Normalised YTD11 PAT Normalised YTD12 PAT
Normalised Growth: +10.3%
RM Million Underlying Operational Performance

Normalised YTD13 PAT

Normalised Growth: -9.8% 160

151

1,406

31

69

23

1,467

1,414

152

109

57

1,618

1,458

56

76

56

1,382

YTD'12

Asset impairment

Asset impairment

Operations

Acquisition of Idea

FOREX Loss

Asset impairment / write-off

Normalised YTD'11

Normalised YTD'12

Normalised YTD'13

Celcom tax incentive

Celcom tax incentive

Forex Gain

NormPAT Celcom XL Dialog Robi Hello Associates&Others GROUP

YTDGrowthRates YTD'11 888 (+79) +8.9% 509 (+49) +9.6% 63 (+22) +34.9% 23 (10) 43.5% (24) (+6) +25.0% 8 (+5) +62.5% 1,467 (+151) +10.3%

NormPAT Celcom XL Dialog Robi Hello Associates&Others GROUP

YTD'12 967 558 85 13 (18) 13 1,618

YTDGrowthRates

(+11) ( 304) (3) (+64) (+40) (+32) ( 160)

+1.1% 54.5% 3.5% +492.3% +222.2% +246.2% 9.8%

NormPAT Celcom XL Dialog Robi Smart Associates&Others GROUP

YTD'13 978 254 82 77 22 45 1,458

Forex Loss

YTD'11

YTD'13

2Q 2013

Group active subscriber base grew by 11.5% with strong growth at XL driven by renewed push on Value Positioning
Subscribers (million)
+11.5%

205.9mn

203.0mn

205.5mn

219.0mn

229.6mn
4.4 2.1 22.9 8.1

2.2 2.0 19.2 7.4

2.3 2.1 20.8 7.6

2.2 2.1 21.0 7.8

3.7 2.1 21.4 8.0

117.2

115.5

113.9

121.6

125.0

45.9 12.0 2Q 12

42.3 12.4 3Q 12 Celcom XL

45.8 12.7 4Q 12 Idea Dialog Robi

49.1 13.1 1Q 13 M1 Smart

54.2 13.0 2Q 13

*Smart figures beginning 1Q13, Hello figures for prior periods

2Q 2013

Data continues to provide growth momentum, voice & SMS still >70% of business
RM mn
Voice %ofServicerevenue SMS %ofServicerevenue VAS %ofServicerevenue Data %ofServicerevenue TotalServicerevenue Others** %ofTotalRevenue TotalRevenue***

2Q 12*
2,394 62.7% 618 16.2% 221 5.8% 586 15.3% 3,819 598 13.5% 4,417

2Q 13
2,415 62.1% 577 14.8% 232 6.0% 666 17.1% 3,890 739 16.0% 4,629

2Q 12 vs 2Q 13
+0.9% 0.6pp 6.7% 1.4pp +5.1% +0.2pp +13.8% +1.8pp +1.9% +23.7% +2.5pp +4.8%

Data revenue has grown 14% YoY, driving the core mobile service revenue increase by 2% YoY.

Note: *Revenue reclassified by Celcom and Dialog and without SMART revenue **Others include OpCos other revenue (including interconnect & roaming revenue at XL) ***Restated for XLs revenue (Net VAS revenue) 2Q 2013
10

Capex spend on target for the full year


FCF* RM mn
1,200

12% 13% 894 1,566


1600 2000

1,000

OFCF* RM mn 23% 863

25%
1200

1,758
1800

1,075
1000

900

1,000

800

761

806

864
1400

800

700

800
1200

600

562 485 417

513
600

600

1000

500

455
800 400 600

400

400
300

400

200

141

200

200

100
200

2Q12

3Q12

4Q12

1Q13

2Q13

YTD12

YTD13

2Q12

3Q12

4Q12

1Q13

2Q13

YTD12

YTD13

Capex ( RM mn ) Celcom XL Dialog Robi Hello / Smart** Others Total


* Restated figures ** 1H 12 Capex for Hello only

1H 12 279 1,688 116 85 15 16 2,198

1H 13 381 1,127 223 116 32 8 1,886

Note: Numbers may not add up due to rounding FCF=EBITDA-Capex OFCF= EBITDA- Capex- Net Interest-Tax

2Q 2013

11

Group Statements of Financial Position


Group cash balances and ratios in line with plan; 2012 final dividend (RM2.3bn) paid June 2013.

o Gross debt increased by RM785mn QoQ mainly coming from XL (RM770mn) largely due to new borrowings. o Credit rating remained unchanged - for the Group is Baa2 (Moodys) and BBB (S&P).

o Cash & bank decreased by RM1.4bn QoQ due to dividend paid to shareholders in June13 amounting to RM2.3bn.

Gross debt to EBITDA 1.80 1.58 1.70

Net debt to EBITDA 1.83 1.89


o QoQ Net Debt to EBITDA increased to 1.0x from 0.7x mainly due to reduction in 0.98 cash balance.

o Free Cash Flow (FCF) is RM1.8bn; Operating Free Cash Flow (OFCF) is RM1.1bn.

RM' Million

Cash and Bank


8,622 7,906 7,997 6,644

6,480

0.71

0.64

0.64

0.70

30-Jun-12

30-Sep-12

31-Dec-12

31-Mar-13

30-Jun-13

30 Jun12

30 Sep12

31Dec12

31Mar 13

30 Jun13
12

2Q 2013

FY2013 Headline KPIs on track


Focus on revenue growth through continued investment in data business

FY2013 Headline KPIs Revenue growth EBITDA growth ROIC (%) ROCE (%) Capex* 7.6% 0.2% 10.3% 8.3% RM4.5bn

Guidance In-line In-line In-line In-line RM4.5bn

*Capex is not a Headline KPI.

2Q 2013

13

Appendix

2Q 2013

14

Financial snapshot : 2Q 2013


Good traction on all metrics QoQ

Q o Q Performance Normalised Revenue EBITDA PAT1

1H 2013 Performance Normalised Revenue EBITDA PAT1


5% 3% 6%

Group Celcom XL Dialog Robi

3%

5%

1%

2%

3%

5%

4%

4%

2%

5%

6%

20%

1%

16%

51%

3%

1%

13%

15%

9%

6%

7%

3%

19%

21%

40%

>100%

Note: Growth number based on results in local currency in respective operating markets 1. Group and Celcom: PATAMI and others: PAT. PAT/PATAMI normalized as per appendix

2Q 2013

15

Group Financial Performance


Strong YTD Revenue, all OpCos registering growth

Revenue (RM mn)

+4.8% +3.3% +5.2%

Revenue growth contributed mainly by Celcom, Robi & Smart. At constant currency: YTD revenue growth would have been higher at +7.6% (vs +5.2%) QoQ revenue growth would have been higher at +3.7% (vs +3.3%) YoY revenue growth would have been higher at +7.1% (vs +4.8%)

8,663 9,111

4,417 4,539 4,449 4,482 4,629

2Q12

3Q12

4Q12

1Q13

2Q13

YTD12

YTD13

2Q 2013

16

Group Financial Performance


EBITDA growth contribution of 6.1% YTD across all Opcos (excluding XL). XL EBITDA contribution declined by 9.3%

EBITDA (RM mn) & Margin (%)

-3.9% +4.7% -3.2%

QoQ EBITDA growth driven by Celcom and higher data usage at XL At constant currency: YTD EBITDA decline would have been lower at -0.9% (vs -3.2%) QoQ EBITDA increase would have been higher at +5.2% (vs +4.7%) YoY EBITDA decline would have been lower at -1.7% (vs -3.9%)

3,764

3,644

1,941

1,866

1,794

1,780

1,864

43.9%
2Q12

41.1%
3Q12

40.3%
4Q12

39.7%
1Q13

40.3%
2Q13

43.4%
YTD12

40.0%
YTD13

Note: 1Q12 - 4Q12 EBITDA are restated figures for impact on XL net VAS revenue and reclassification of Celcom device subsidy cost.

2Q 2013

17

Group Financial Performance


YTD and YoY PATAMI affected by XL lower contribution, however, in 2Q XL has shown modest recovery

PATAMI (RM mn)


-3.3% +4.9% +2.2%

PATAMI growth mainly impacted by lower XL contribution At constant currency: YTD PATAMI increase would have been higher at +3.2% (vs +2.2%) QoQ PATAMI increase would have been higher at +5.3% (vs +4.9%) YoY PATAMI decrease would have been lower at -2.3% (vs -3.3%)

1,232 1,259

667

710

571

615

645

2Q12

3Q12

4Q12

1Q13

2Q13

YTD12

YTD13

2Q 2013

18

Challenges and mitigating factors


Increasing competitive intensity, continuing data network investments in Indonesia and structural challenges in SMS markets in Malaysia and Indonesia

Continuing competition in Indonesia has put profitability under pressure - XL has reacted to competitive practice by adjusting its prices and packages to regain market positioning. XL has been able to regain its subscriber base over last couple of months. However profitability remains a challenge SMS revenue continues to be under pressure in Malaysia - Industry wide SMS revenue still under pressure in Malaysia, with revenue decline in Celcom this quarter. However, apart from Celcom, SMS revenue posted growth in all other opcos QoQ. - To ensure stability of SMS revenue, both XL and Celcom are concentrating on bundled offerings. Data Prices in Sri Lanka Although Sri Lankas data market is growing rapidly, we are witnessing uncompetitive pricing by certain competition. Dialog will continue to play its market leadership role in providing good quality data experience to its customers 3G in Bangladesh - 3G Auctions in Bangladesh are expected to be conducted in the coming weeks. Industry is still discussing terms with government Capital call by Idea - Idea has recently issued a notice for a capital call for ~600m USD. Axiata has an option to subscribe to its share, which may result in a cash outflow of ~120m USD in 3Q 2013
2Q 2013
19

Local currencies weakened against RM except for BDT

OpCo Currency Vs RM, USD Avg Q213 vs Q113

OpCo Currency Vs RM, USD YTD June13 vs YTD June12 Vs. RM -6.23% -2.47% +4.55% -0.41% +1.34% -7.94% -5.59% +0.00% Vs. USD -5.84% -2.07% +4.99% +0.00% +1.76% -7.56% -5.20% +0.41%

Vs. RM

Vs. USD -0.87% +0.02% +1.50% +0.00% -0.93% -0.62% -2.89% +0.40%

IndonesiaRupiah,IDR SriLankaRupee,LKR BangladeshTaka,BDT USDollar,USD SingaporeDollar,SGD PakistanRupee,PKR IndianRupee,INR MalaysiaRinggit,RM

-1.26% -0.37% +1.10% -0.40% -1.32% -1.02% -3.27% +0.00%

Impact to translated RM revenue is: -0.4pp QoQ -2.4pp YTD

2Q 2013

20

Group Revenue : YTD12YTD13


YTD Revenue grew by +5.2%
YTD movement

YTD12 Revenue

YTD13 Revenue

Revenue growth: +5.2%


RM Million

194 8,663

159

77

182

106

48

9,111

Revenue YTD'12

Note: YTD12 Revenue are restated figures for impact on XL net VAS revenue.

Revenue Celcom XL Dialog Robi Hello InterCoElimination/Multinet GROUP

YTD'12 YTDGrowthRates +5.1% 3,796 (+194) ( 159) 4.7% 3,411 (+77) +11.4% 672 (+182) +26.2% 696 (+106) +164.6% 64 (+48) +195.3% 24 (+448) +5.2% 8,663

InterCo Elimination/ Multinet


Revenue

Celcom XL Dialog Robi Smart InterCoElimination/Multinet GROUP

REVENUE INCREASED BY RM448MN

Revenue YTD'13
YTD'13 3,990 3,252 749 878 170 72 9,111

Dialog

Celcom

Robi

Smart

XL

2Q 2013

21

Group EBITDA : YTD12YTD13


EBITDA for all Opcos excluding XL grew by 6.1% YTD but declined by -3.2% after XL inclusion
YTD12 EBITDA
YTD movement

YTD13 EBITDA

EBITDA growth: -3.2%


RM Million

+2.2%

-9.3%

3,764

82

351

+0.6%

+2.4%

+1.2%

-0.3%

21
Note: YTD12 EBITDA are restated figures for reclassification of Celcom device subsidy cost.

91

47

10

3,644

EBITDA YTD'12

EBITDA Celcom XL Dialog Robi Hello InterCoElimination/Multinet GROUP

YTD'12 1,660 1,712 220 225 7 (60) 3,764

YTDGrowth Rates

EBITDA Celcom XL Dialog Robi Smart InterCoElimination/Multinet GROUP

InterCo Elimination/ Multinet

(+82) ( 351) (+21) (+91) (+47) ( 10) ( 120)

+4.9% 20.5% +9.5% +40.6% +646.5% 16.6% 3.2%

EBITDA DECREASED BY RM120MN


2Q 2013
22

EBITDA YTD'13
YTD'13 1,742 1,361 241 316 54 (70) 3,644

Dialog

Celcom

Robi

Smart

XL

Normalised Group PATAMI : YTD12 YTD13


PATAMI growth impacted by lower contribution from XL
Normalised YTD12 PATAMI
Underlying Operational Performance

Normalised YTD13 PATAMI

YoY Growth +2.2% Normalised Growth: -5.9%


RM Million

109 119

57 1,403

83 1,320 76 56 41 1,259

1,232

YTD'12

Asset impairment

Operations

FOREX Loss

Asset impairment / write-off

NormPATAMI Celcom XL Dialog Robi Hello Associates&Others GROUP

YTD'12 964 372 72 9 (18) 4 1,403

YTDGrowth Rates

(+9) ( 203) ( 2) (+45) (+37) (+31) ( 83)

+0.9% 54.6% 2.8% +470.5% +205.6% +775.0% 5.9%

NormPATAMI Celcom XL Dialog Robi Smart Associates&Others GROUP

FOREX loss

Normalised YTD'12

Normalised YTD'13

Celcom tax incentive

Celcom tax incentive

YTD'13 973 169 70 54 19 35 1,320

OPERATIONAL CONTRIBUTION DECREASED BY RM83MN

YTD'13

2Q 2013

23

Normalised Group PATAMI : QoQ 1Q13 2Q13


Positive PATAMI growth of +0.7% mainly due to higher contribution from XL
Normalised Q113 PATAMI
Underlying Operational Performance

Normalised Q213 PATAMI

QoQ Growth +4.9% Normalised Growth: +0.7%


RM Million

615

53

658

663

23

55

50

645

1Q'13

FOREX Gain

Operations

NormPATAMI Celcom XL Dialog Robi Hello Associates&Others GROUP

1Q'13 501 66 34 25 4 28 658

QoQGrowthRates

( 28) (+37) (+1) (+5) (+11) (21) (+5)

5.6% +56.1% +2.9% +20.0% +275.0% 75.0% +0.7%

NormPATAMI Celcom XL Dialog Robi Smart Associates&Others GROUP

FOREX Loss

Asset impairment / write-off

Normalised 1Q'13

Normalised 2Q'13

Celcom tax incentive

Asset impairment

Celcom tax incentive

2Q'13 473 103 35 30 15 7 663

OPERATIONAL CONTRIBUTION INCREASED BY RM5MN

2Q'13

2Q 2013

24

Key OPCOs Revenue and EBITDA Composition


XL contribution to Group Revenue and EBITDA has declined whilst Robi and Smart has increased
YTD 2012 REVENUE & EBITDA Breakdown (%)
Robi 8% Hello 1% Dialog 8%

YTD 2013 REVENUE & EBITDA Breakdown (%)


Robi 10% Smart 2%

Dialog 8%

Celcom 44%

Celcom 44%

XL 39%

XL 36%

REVENUE

REVENUE

Dialog 6%

Robi 6%

Hello 0.2%

Robi 9% Dialog 6%

Smart 1%

Celcom 43% XL 45% XL 37%

Celcom 47%

EBITDA Note : Contribution % was derived from Group consolidated figures

EBITDA

YTD12 Revenue restated for impact on XL net VAS revenue. EBITDA restated for reclassification of Celcom device subsidy cost.

2Q 2013

25

Axiata Group Borrowings & Cash


As at 30 June 2013
Group Borrowings RMMillion Holdco&NonOpco LoanCurrency USD* CNY Subtotal Opcos USD Local Subtotal TotalGroup 1,736 1,974 4,527 6,501 8,237 Conventional 1,736 Islamic 517 517 5,032 5,032 5,549 Total 1,736 517 2,253 1,974 9,559 11,533 13,786

*As at 30 June 2013, Holdco & Non Opcos USD borrowings have been hedged to RM and SGD; USD250mn to RM800.7mn and USD300mn to SGD421.3mn; RMB 1bn to USD157mn 65% of the total group USD loan exposure are hedged naturally or with financial institutions.

Group Cash Balance RMMillion Holdco&NonOpco Currency USD Local Subtotal USD Local Subtotal Amount 14 3,071 3,085 25 3,534 3,559 6,644

Opcos

TotalGroup

2Q 2013

26

Celcom: Financial Performance


Data continues to drive revenue growth
Revenue (RM mn) & Data as % of revenue (%)
+5% +2%
3,827

EBITDA (RM mn) & Margins (%) *


+4% +3% +4%

+4%
3,993

1,707
1,975 1,979 2,014

1,778

1,919

1,938

866
45.2%

881
45.5%

861
43.6%

875
44.2%

903
44.8% 44.6% 44.5%

Total Data 34% (incl. SMS) Adv. Data 23% (excl. SMS) Sales of 36 handset/devices

2Q12

3Q12
35% 24% 41

4Q12
36% 25% 63

1Q13
34% 24% 55

2Q13
34% 24% 74

Ytd 12 Ytd 13
34% 23% 59 34% 24% 128

2Q12

3Q12

4Q12

1Q13

2Q13

Ytd 12

Ytd 13

PATAMI (RM mn)*


+4% (normalised +1%) +8% (normalised +5%) +2%

1,127 1,109
1,069 1,046

Albeit revenue loss from domestic roaming, cumulative YTD


revenue grew encouragingly. Excluding the impact from domestic roaming, growth was higher at 7%

The revenue uplift was mainly from the continuous growth of


mobile internet and higher sales of handset/devices

570
532
2Q12
PATAMI

583
550

577 510
475

549
555 514
1Q13 2Q13 Ytd 12 Ytd 13

EBITDA rose by 3% to margin of 44.8% on better


operational performance and costs management.

3Q12

4Q12

Accelerated Depreciation

* (1) PATAMI and EBITDA exclude holding company charge, interest/charges on Sukuk and HQ tax relief if any (2) Normalisation excludes additional accelerated depreciation for modernisation

2Q 2013

27

Celcom : Financial Performance


Effective cost management cushioned the incremental cost from sales of handset
Operating Expenses^
% of Revenue Direct Expenses Sales & Marketing Network Costs Staff Costs Bad Debts Others Total Expenses EBITDA Margin Depreciation & Amortisation 2Q12 24.1% 9.0% 10.3% 6.8% 0.3% 4.4% 54.8% 45.2% 12.3% 1Q13 24.8% 8.5% 10.2% 6.2% 0.4% 5.7% 55.8% 44.2% 12.0% 2Q13 25.2% 7.9% 9.7% 6.8% 0.4% 5.2% 55.2% 44.8% 11.6% YTD JUN 12 24.1% 9.2% 10.4% 6.6% 0.8% 4.4% 55.4% 44.6% 12.1% YTD JUN 13 25.0% 8.2% 10.0% 6.5% 0.4% 5.4% 55.5% 44.5% 11.8%

A higher direct expenses correlated with sales of handset/devices Sales and marketing cost continue to record positive improvement with overall cost in line Staff cost increased from Q113 mainly due to provision for performance bonus Depreciation amount almost unchanged q-o-q remains

Financial Position (RM mn)


YTD Jun 12 Capex Cash & Cash Equivalents Gross Debt Net Assets Gross debt / equity (x) Gross debt / EBITDA(x) 278.6 4,641.4 4,215.0 1,641.7 2.6 1.2 YTD Jun 13 418.8 2,259.0 5,031.5 (1,971.8) n/m 0.7

^ OPEX and EBITDA Margin excludes holding company charge

2Q 2013

28

Broadband Performance
Momentum continues with positive take up of mobile internet subscription
REVENUE (RM Mn) +18% +4%
521 439
994 1,028 1,047 1,027

SUBSCRIBERS * ( 000) +19% +9% +6%


1,088 994 1,088

+9%

225

239

249

256

265

61

62 60 60 60 60 60

2Q12

3Q12

4Q12

1Q13

2Q13

YTD 12 YTD 13

2Q12

3Q12

4Q12

1Q13
Subs

2Q13
ARPU

YTD 12 YTD 13

* Subscribers and ARPU are based on postpaid monthly unlimited plan only

2Q 2013

29

Celcom : Operational Performance


Subscriber base up 8% YoY driven by continuous growth in postpaid subscribers
Subscribers (000s)
Net Adds 79
Prepaid Postpaid

ARPU (RM)
290
262 28

360
346 14

376
358 17

-98
-123

23 56

+8% -0.8%

25

49

49

49

47

47

49

47

Total Subs

90

88

91

87

88

90

88

12,031
9,195

12,391
9,540

12,681

13,057

12,959
38 37 36

9,802

10,160

10,037

37

36

35

35

2,837

2,851

2,879

2,896

2,922

2Q12

3Q12
Postpaid

4Q12

1Q13
Prepaid

2Q13

2Q12

3Q12

4Q12

1Q13

2Q13
Prepaid

YTD 12 YTD 13
Blended

Postpaid
*2012 ARPU normalised for domestic roaming

MOU/sub (min)
263 217 403 227 270 231 371 238 223 310 200 219 227

244 205 224 296 205

Customer base declined slightly, impacted by the rotational


churners in prepaid segment

297

296 209 199

329 222

ARPU remained consistent for both prepaid and postpaid. MOU per sub (exclude domestic roaming) improved y-o-y
spurred by effective initiatives implemented in reviving traditional voice usage .

2Q12

3Q12

4Q12

1Q13

2Q13

YTD 12 YTD 13
Prepaid Blended (exc domestic roaming)

Postpaid Blended (inc domestic roaming)

2Q 2013

30

XL : Financial Performance
Continuous operational improvement led to modest Revenue growth
Revenue (Rp bn) & Data as % of revenue (%)
Data & VAS

EBITDA (IDR bn) & EBITDA margin (%)


17% 20% 48% 44% 43% 40% 48% 40% -16% 40%

18%

17%

19%

20%

20%

+1%

+5%
+6% 10,240 5,315 5,664 5,375 5,047 5,297 10,344 2,546 2,505 4,938 4,164 2,304 2,025 2,139

2Q12

3Q12

4Q12

1Q13

2Q13

1H 12

1H 13

2Q12

3Q12

4Q12

1Q13

2Q13

1H 12

1H 13

PAT (IDR bn)


-54% (normalized -51%*)

Operational improvement led to improvement in 2Q revenue performance Positive revenue growth in 1H13 driven by data revenue growth of 13% YoY. Lower EBITDA YoY mainly affected by introduction of SMS interconnect in June 2012 and higher investment in data infrastructure. Continued focus on data growth supported by 14,186 installed Nodes B as at 2Q 13, a 61% increase from a year ago.

+12% (Normalized +20%*) 1,461 794

734

570 316

670 355 2Q13 1H 12 1H 13

2Q12

3Q12 2Q 2013

4Q12

1Q13

* Normalized PAT excluding unrealized forex transaction, accelerated depreciation 31

XL : Financial Performance
Lower margin from SMS interconnect and network expenses from data infrastructure
Operating Expenses

% of Revenue Direct Expenses Sales and Marketing Network Costs Staff Cost Others Total Expenses EBITDA Margin Depreciation & Amortisation

2Q12

1Q13

2Q13

1H 12

1H 13

13.5% 5.5% 24.7% 4.2% 3.1% 51.0% 47.9% 23.6%

18.7% 6.5% 27.1% 4.7% 2.5% 59.4% 40.1% 26.3%

18.4% 6.4% 27.2% 4.5% 2.6% 59.1% 40.4% 26.2%

12.3% 5.7% 24.7% 4.7% 3.3% 50.6% 48.2% 24.1%

18.5% 6.4% 27.1% 4.6% 2.5% 59.2% 40.3% 26.2%


Higher Direct Expense YoY and QoQ mainly due to introduction of SMS interconnection fee starting in June 2012. Higher Sales & Marketing YoY partly due to higher Sales Commissions as well as higher Advertising and Promotion with efforts to improve positioning through new offerings since 1Q 13. Higher Network Costs was due to expansion infrastructure to continue support data business. It was also impacted by managed services fee effective April 2012.

Financial Position (IDR bn)


1H 12 1H 13

Capitalized Capex Cash and Cash Equivalents Net Debts Net Assets Debt / Equity (x) Debt / EBITDA (x)

5,345 883 11,835 14,059 0.9 1.3

3,353 1,902 15,181 14,938 1.1 1.9

**Debt/EBITDA based on last 12 months trailing EBITDA 2Q 2013


32

XL: Operational Performance


Positive subscriber growth driven by increase in Data users
Subscribers (000s)
Net Adds

OG MoU/subs/month (minutes)
3,350 49,100 5,073 54,173 45,853 196 188 8,320 54,173 208

3,406

3,303

45,853

42,447

45,750

45,525

42,105

45,395

48,746

53,845 45,525

53,845

182

183

185

184

328 2Q12

341 3Q12

355 4Q12

354 1Q13
Prepaid

328 2Q13

328 1H12

328 1H13 2Q12 3Q12 4Q12 1Q13 2Q13 1H 12 1H 13

Postpaid

TotalPostpaid&Prepaid

ARPU (IDR thousands)


147 141 140 151

139

127

133

Total Subscribers grew 18% YoY with Data users growing by 21% constituting 59% of total subscribers. Data traffic grew 88% YoY as data adoption remains strong.

31 30

33 32

33

32

27 27

27

27

30 29

27

27

2Q12

3Q12

4Q12

1Q13
Prepaid

2Q13
Blended

1H 12

1H 13

Postpaid

2Q 2013

33

All key financial metrics except PAT improved both QoQ and YTD; 2Q13 PAT impacted by translational Forex losses. Normalised PAT Improved 13% QoQ
Revenue (SLR mn)
+11% +3%
12,000.00

Dialog Group : Financial Performance

EBITDA (SLR mn) & margins (%)


+15% +7% +1% 9,242 30,872 26,921
8,000.00 10,000.00

+9%

10,039

14,066

14,447

14,978

15,242

15,630

6,000.00

4,711 33%

4,929 34%

4,382 29%

4,984 33%

5,055 32% 34% 33%

4,000.00

2,000.00

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

YTD 12 YTD 13

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

YTD 12 YTD 13

PAT (SLR mn)


+8% (Normalised +4%) +>100% (Normalised -6%)

Revenue increased by 3% QoQ and 15% YTD, on the back of strong growth in the mobile segment Steady EBITDA performance backed by strong growth in Revenue

-40% ( Normalised +13%) 4,744 2,545 879 929 1,595 950 349

Q2 PAT impacted by a non cash translational forex loss of Rs856mn following a 2.8% depreciation of SLR against USD

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

YTD 12

YTD 13

1H 2013 performance is inclusive of 2% revenue based tax provision of Rs553mn

Performance normalised to 2Q 13: exclude translational forex loss of Rs 856mn 2Q 12: exclude translational forex loss of Rs 865mn 1H 13: exclude translational forex loss of Rs 851mn 1H 12: exclude translational forex loss of Rs2,938mn and Suntel acquisition related costs of Rs343mn

2Q 2013

34

Dialog Group : Financial Performance


Operating Expenses
% of Revenue
Directexpenses Sales&Marketing Networkcosts Staffcosts Baddebts Overheads TotalExpenses EBITDA Margin D & A

Higher Cost in line with expanding infrastructure for data growth

2Q 12
29.3% 12.0% 11.7% 8.6% 0.5% 4.4% 66.5% 33.5% 18.9%

1Q 13 2Q 13
27.8% 13.3% 12.1% 8.9% 1.0% 4.2% 67.3% 32.7% 19.8% 30.3% 11.3% 12.5% 8.6% 1.0% 4.0% 67.7% 32.3% 18.8%

1H 12
28.1% 12.3% 12.3% 8.3% 0.4% 4.3% 65.7% 34.3% 100.0% 18.7%

1H 13
28.8% 12.5% 12.3% 8.8% 1.0% 4.1% 67.5% 32.5% 100.0% 19.3%

QoQ cost to revenue increased by 0.4ppts to record at 67.7% due to higher network cost in line with the increased rollout of data infrastructure. 1Q results included TDC refund of Rs429mn Higher YTD sales and marketing spend on promotions of new products, usage stimulation and loyalty campaigns

100.0% 100.0% 100.0%

Financial Position (SLR mn)


31 Dec 12 Capex Cash & Cash Equivalents Gross Debt Net Assets Gross Debt / equity (x) Gross Debt/ EBITDA (x)
2Q 2013

30 June 13 14,312 2,530 22,422 37,086 0.60 1.12


35

17,409 8,647 23,892 37,182 0.64 1.29

Cash balance end 2Q 2013 reduced to Rs2.5bn whilst 1H 2013 Group FCF is negative at Rs4.3bn due to strategic investments in the quarter Gross debt to EBITDA decreased to 1.12x as at end June 2013 from 1.29x as at end 2012

Dialog: Operational Performance


Stable ARPUs and marginal increase in MOUs QoQ
Subscribers(000s)
Net Adds

ARPU (SLR)
+137k +159k +274k +11% +3% 348 358 +274k

+59k

400 380

350

362

358

354

362

Total Subs

7,432 +31k 6,495 937 +28k

7,568 +110k 6,605 964 +27k

7,727 +223k 6,827 900 -64k

8,001 +245k 7,072 929

8,275 +248k 7,320 955

360 340 320 300 280 260 240 220 200 180 160 140 120 100 80

+29k

+26k

60 40 20

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

YTD 12

YTD 13

Postpaid MOUs (min)*

Prepaid

Blended

163

169

165

159

160

163

160

Prepaid segment driving the total subscriber growth of 3% QoQ and 11% YoY ARPUs increased by 2% QoQ

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

YTD 12 YTD 13

Blended * MoUs are based on outgoing min 2Q 2013


36

Robi : Financial Performance


Solid growth in Revenue and EBITDA; YoY PAT has recovered strongly
Revenue(BDTmn)
20% 7% 21%

EBITDA(BDTmn)&Margins(%)
30%(Normalized 33%) 37%(Normalized 40%)

3%(Normalized3%)

22,400 18,564
6,071 8,323

9,627

10,146

10,243

10,806

11,594
3,244
33.7%

1,938 3,75637.0%
19.1%

4,285 4,663
41.8%

4,104
45.5% 4,186 38.0% 38.7%

4,219 4,306
36.4% 37.1% 32.7% 32.7%

8,491

37.9%

37.2%

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

YTD 12

YTD 13

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

YTD 12

YTD 13

PAT(BDTmn)
>100%(Normalized>100%) 2%(Normalized 19%) >100%(Normalized >100%)

EBITDA Normalized by SIM Tax (3Q12 BDT 1,818m) and Late payment fees (4Q12 BDT 377m,1Q13 BDT 81m and 2Q13 BDT 86m)

Strong 1H13 Revenue performance driven by prepaid voice, Value Added Services (VAS) incl. Data. Higher SAC, Interconnect costs in 2Q impacted EBITDA margin last quarter. YoY EBITDA growth attributed to revenue achievement. 1H13 PAT was driven by lower finance costs. 2Q PAT had impact of Write off (BDT 43Mn net) in Network Asset swap/exchange transaction.

2,240 1,249 207 259 1,131 1,108


322 355

606

1,175

964

1,148

2,112

2Q 12

3Q 12
-660

4Q 12

1Q 13

2Q 13

YTD 12

YTD 13

PAT Normalized by Forex, SIM Tax, Late payment fees and Swap losses

2Q 2013

37

Robi : Financial Performance


Cost structure optimisation led to improvement in EBITDA Margin YoY
OperatingExpenses
% of Revenue Direct Expenses Sales & Marketing Netw ork Costs Staff Costs Bad Debts Others Total Expenses EBITDA Margin D& A 2Q 12 41.1% 3.8% 10.0% 6.3% 0.1% 4.9% 66.3% 33.7% 100.0% 18.7% 1Q 13 38.4% 4.3% 9.1% 5.2% 0.1% 4.9% 62.0% 38.0% 100.0% 17.5% 2Q 13 40.0% 3.7% 9.5% 5.6% 0.0% 4.9% 63.6% 36.4% 100.0% 16.5% YTD'12 41.9% 4.3% 10.1% 5.8% 0.0% 5.1% 67.3% 32.7% 100.0% 19.2% YTD'13 39.2% 4.0% 9.3% 5.4% 0.0% 4.9% 62.8% 37.2% 100.0% 17.0%

Operating expenses: Direct Expenses- 2Q increased due to higher channel commissions & interconnect costs. Network cost- increased QoQ mainly due to Power & Electricity because of higher consumption incl. Genset fuel (Electricity load sharing). Staff Costs- 2Q increased due to yearly salary review effective from Apr13 & related costs. Financial Position Capex- Return based deployment. Capital Gearing- Improved over the period for reduced debts and increased shareholders fund. Gross Debt/EBITDA- Improved higher EBITDA (annualized). for

FinancialPosition(BDTmn)
31 Dec 12 Capex Cash & Cash Equivalents Gross Debt Net Assets Gross debt / Equity (x) Gross debt / EBITDA (x) 8,150 4,649 14,659 32,940 0.45 1.19 30 June 13 3,467 15,128 13,668 40,701 0.34 0.82

2Q 2013

38

Robi : Operational Performance


Total Subscribers grew 19% YoY: Rural Penetration and retention drive continued
Subscribers(000s)
Net Adds

ARPU(BDT)
1,590k 238k
+19% +7%

1,547k

364k

1,493k

172

168

160

167 804

173

174

170

Total Subs

19,211
19,015

20,802
20,584
+1,523k +1,569k

21,039
20,788
+204k

21,403
21,145
+357k

22,897
22,603
+1,458k

673 572 558 372 551 588

196 2Q 12

+24k

218 3Q 12

+22k

252 4Q 12 Prepaid

+34k

258 1Q 13

+7k

293 2Q 13

+35k

168 2Q 12

163 3Q 12

156 4Q 12

160 1Q 13

171 2Q 13 Prepaid

170 YTD 12 Blended

165 YTD 13

MOU/sub (min)
172 161

Postpaid

Postpaid

144

156

180

170

168

Net adds increased in 2Q followed by aggressive acquisition drive and focused retention initiatives like Winback. QoQ MoU/Sub and ARPU increased from enhanced usage because of strengthened market drive with affordable campaign/initiatives mainly in prepaid segment.

649 452 169 2Q 12 156 3Q 12 452 141 4Q 12 Postpaid

675 414 150 1Q 13 228 180 2Q 13 Blended 173 YTD 12 451 165 YTD 13

Prepaid

Note: ARPU, MoU/Sub are based on active subscriber base. Total Subs means active subscribers to date.

2Q 2013

39

Regional Mobile: QoQ Performance Highlights

COMPANY

HIGHLIGHTS Key marketing campaigns include bonus minutes and attractive tariff plans

QUARTER ON QUARTER PERFORMANCE

Revenue

13%

Subs

19%

EBITDA

38%

PAT

>100%

Growth driven by robust voice and mobile data revenue

Revenue

8%

Subs

3%

EBITDA

24%

PAT

50%

Data usage on smartphones continues to grow

Revenue

1%

Subs

3%

EBITDA

3%

PAT

5%

Note: Idea and wholly owned subsidiaries on a consolidated basis. Smart based on proforma numbers.

2Q 2013

40

Regional Mobile: YTD Performance Highlights

COMPANY

HIGHLIGHTS Ongoing subscriber acquisition drives and retention initiatives

YTD ON YTD PERFORMANCE

Revenue

38%

Subs

42%

EBITDA

>100%

PAT

>100%

Strong revenue growth coupled with scale benefits and better cost management supporting

Revenue

19%

Subs

7%

EBITDA

45%

PAT

98%

Interim dividend of 6.8 cents per share

Revenue

1% 2%

Subs

3%

EBITDA

4%

PAT

6%

Note: Idea and wholly owned subsidiaries on a consolidated basis.

2Q 2013

41

Thank You
www.axiata.com
Axiata Group Berhad

company confidential
42