PAKISTAN INDIA SRI LANKA BANGLADESH THAILAND

PAKISTAN INDIA SRI LANKA BANGLADESH THAILAND

Advancing Asia Revenue RM18.4 Billion USD5.8 Billion PAT RM2.7 Billion USD870 Million Market Cap RM58.9 Billion USD18.7 Billion Subscribers > 240 Million Employees 23,000 Countries 9 INDONESIA SINGAPORE MALAYSIA CAMBODIA

Group Profile Axiata Group Berhad is one of the largest Asian telecommunications group in Asia with over 240 million customers. 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 has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India and Singapore. In addition, the Malaysian-grown holding company has stakes in nonmobile telecommunications operations in Thailand and Pakistan. 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, Smart in Cambodia, Idea in India and M1 in Singapore. Added to this the Group has established a communications infrastructure solutions and services company called edotco. 2007 vs Revenue 84% EBITDA 76% PAT 94% Subscribers 513% Market Capitalisation 333%* * Market Capitalisation is vs 006

The Group, including its subsidiaries and associates, has over 240 million mobile subscribers in Asia. The Group revenue for was RM18.4 billion (USD5.8 billion). Its market capitalisation stood at over RM58.9 billion (USD18.7 billion) at the end. The Group provides employment to over 23,000 people across Asia. Axiata was awarded the Frost & Sullivan Asia Pacific ICT Award for Best Telecom Group for five consecutive years in,,, and and the Telecom Asia Best Regional Mobile Group and for its operations in multiple Asian markets. In, Axiata was the only Malaysian company to make the Forbes Asia Fab 50 List. Axiata s Journey Axiata was incorporated in Malaysia on 12 June 1992 as a private limited company under the name of TMI, operating as a division within TM. The initial focus was on expanding the Group s footprint, primarily through mergers and acquisitions, building a portfolio which balances interests in emerging markets with low mobile penetration rates, and best-in-class and innovation driven subsidiaries in mature markets. In, the TM Group completed a strategic demerger exercise that saw the separation of the mobile business from TM. The demerger resulted in an enhanced TMI, which was merged with Celcom, enabling it to focus on its own core business and accelerate operational improvements and growth initiatives; emerging as an independent entity in the regional mobile telecommunications market. TMI was subsequently listed on Bursa Securities on 28 April, marking a new chapter in its transformation towards becoming a regional giant in the mobile communications market. In March, TMI changed its name to Axiata Group Berhad and launched a new identity, as part of a rebranding exercise aimed at enhancing its position as a leading regional mobile operator. The move was a requisite step to reinforce the Group s new business philosophy and its commitment to advancing Asia by addressing the unfulfilled communication needs of local populations with affordable and innovative products and services. Axiata has blazed a path across the region; from 40 million customers, pre-demerger, to over 240 million across 9 countries, in six years, making Axiata one of the largest mobile players in Asia. Shaping the Future Axiata has always been ahead of the curve, quickly adapting to change and positioning its business model to capitalise on the developments in an increasingly digitalised world. Parallel to its investments in network and technology modernisation over the years, Axiata has also evolved its business to embrace the digital age and fast growing demand for data. 2014 will be a critical year for Axiata as it progresses in its transformation beyond a traditional telecommunications company. In advancing Asia, Axiata remains committed to its role as a responsible corporate citizen, to make a difference to people s lives and help transform the countries in which it operates. Details of Axiata s sustainability efforts are available as a separate booklet, together with this Annual Report. Axiata Group Berhad Annual Report 007

Vision Regional Champion by 2015 By Advancing Asia, bringing together people, connectivity and technology Code of Conduct Axiata is committed to conduct its business fairly, impartially and in full compliance with all applicable laws and regulations in Malaysia and in countries where the Group has operations. The Group s professionalism, honesty and integrity must at all times be upheld in all of the Company s business dealings by all employees. Axiata has in place a Code of Conduct that serves as documentation of our commitment in ensuring its business dealings are conducted in a manner that is efficient, effective and fair. Axiata ensures that it is the responsibility of every employee to act in accordance with the policies detailed in the Group s Code of Conduct. 008

Core Values At Axiata, there are two core values that we embrace across the Group: Uncompromising Integrity and Exceptional Performance. These two values define who we are and how we operate. Uncompromising Integrity Always doing the right thing and fulfilling promises made to earn the trust of our stakeholders. We are committed to upholding the highest standards of lawful and ethical conduct, and in demonstrating honesty, fairness and accountability in all of our dealings. Exceptional Performance Always pushing ourselves to deliver benchmarked outstanding performance. We are determined to be the winner, leader and best-in-class in what we do. Whilst we are tough with performance standards, we are compassionate with people - we call it Performance with a Heart Uncompromising Integrity and Exceptional Performance are our distinct values and key to our success towards becoming a regional champion. We place great emphasis in building a culture based on these two values across the Axiata Group. These two core values will be incorporated into the existing values of the individual OpCos which includes, amongst others, service excellence, teamwork, creativity and customer centricity. Axiata Group Berhad Annual Report 009

Financial Calendar Quarterly Results 22 May Unaudited consolidated results for the 1st quarter ended 31 March 27 November Unaudited consolidated results for the 3rd quarter ended 30 September 2014 30 August Unaudited consolidated results for the 2nd quarter and half-year ended 30 June 20 February 2014 Audited consolidated results for the 4th quarter and financial year ended 31 December Dividends 30 April Notice of Book Closure for Final Tax Exempt Dividend under Single Tier System of 15 sen per Ordinary Share of RM1.00 each 31 May Date of Entitlement for Final Tax Exempt Dividend under Single Tier System of 15 sen per Ordinary Share of RM1.00 each 30 April Notice of Book Closure for Special Tax Exempt Dividend under Single Tier System of 12 sen per Ordinary Share of RM1.00 each 31 May Date of Entitlement for Special Tax Exempt Dividend under Single Tier System of 12 sen per Ordinary Share of RM1.00 each 14 June Payment of Final Tax Exempt Dividend under Single Tier System of 15 sen per Ordinary Share of RM1.00 each 13 September Notice of Book Closure for Interim Tax Exempt Dividend under Single Tier System of 8 sen per Ordinary Share of RM1.00 each 10 October Payment of Interim Tax Exempt Dividend under Single Tier System of 8 sen per Ordinary Share of RM1.00 each 14 June Payment of Special Tax Exempt Dividend under Single Tier System of 12 sen per Ordinary Share of RM1.00 each 1 October Date of Entitlement for Interim Tax Exempt Dividend under Single Tier System of 8 sen per Ordinary Share of RM1.00 each Notice of 22nd Annual General Meeting and Issuance of Annual Report 6 May 2014 22 nd Annual General Meeting 28 May 2014 010

Corporate Information Board of Directors Tan Sri Dato Azman Hj. Mokhtar Chairman Non-Independent Non-Executive Director Dato Sri Jamaludin Ibrahim Managing Director/President & Group Chief Executive Officer Tan Sri Ghazzali Sheikh Abdul Khalid Independent Non-Executive Director Datuk Azzat Kamaludin Senior Independent Non-Executive Director Dato Abdul Rahman Ahmad Independent Non-Executive Director David Lau Nai Pek Independent Non-Executive Director Juan Villalonga Navarro Independent Non-Executive Director Bella Ann Almeida Independent Non-Executive Director Kenneth Shen Non-Independent Non-Executive Director Group Company Secretary Suryani Hussein LS0009277 Registered Office Level 5, Axiata Centre, 9 Jalan Stesen Sentral 5 Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia Tel : +603 2263 8888 Fax : +603 2263 8903 Share Registrar Tricor Investor Services Sdn Bhd (Company No. 118401-V) Level 17, The Gardens North Tower, Mid Valley City Lingkaran Syed Putra, 59200 Kuala Lumpur, Malaysia Tel : +603 2264 3883 Fax : +603 2282 1886 Email : is.enquiry@my.tricorglobal.com Auditors PricewaterhouseCoopers (AF: 1146) Level 10, 1 Sentral, Jalan Travers Kuala Lumpur Sentral, 50706 Kuala Lumpur, Malaysia Tel : +603 2173 1188 Fax : +603 2173 1288 Website www.axiata.com Investor Relations Tel : +603 2263 8856 Fax : +603 2278 3337 Email : ir@axiata.com Stock Exchange Listing Listed on Main Market of Bursa Malaysia Securities Berhad Listing Date : 28 April Stock Code : 6888 Stock Name : Axiata Stock Sector : Trading/Services Axiata Group Berhad Annual Report 011

Key Highlights Axiata Group continues to deliver strong revenue growth and perform better than the industry in almost every market. was a year of successes and strategic investment as the Group strengthened its foundation, shaping the future of telecommunications within our footprint. More than 240million subscribers, 19% YoY growth The Group closed with a total subscriber base of 244 million across Asia. This makes Axiata the second largest telecommunications company in Asia based on subscriber numbers. Asia Pacific s Best Telecoms Group for the 5 th consecutive year Axiata continued to gain momentum in the industry by taking top honours as Best Telecoms Group for the fifth consecutive year at the Frost & Sullivan Asia Pacific ICT Awards. The award is granted to the operator that has shown exemplary growth and performance through its investments in the region. Double-digit growth at Dialog and Robi, and record profits at Celcom Dialog and Robi saw double digit revenue growth. Profits at Robi and Smart more than doubled. Celcom continues to register record profits, highest in the industry. Over 15 New Digital Ventures Continued focus on digital services with the incorporation of Axiata Digital Services. Major product launches in digital-entertainment, digital-commerce, digital-money and digital-advertising services. One of the Largest telecommunications infrastructure companies in SEA Axiata s new strategic business unit, edotco, is a communications infrastructure solutions and services company that will manage Axiata s group-wide passive infrastructure as a business. edotco will share sites, physical towers and related civil infrastructure, with the potential to expand to field services/support active infrastructure, such as fibre for backhaul and base stations, and promote green energy management using renewable, solar, wind and battery technologies. 012

Financial Highlights 37.5 37.0 38.1 41.4 43.0 43.5 18.4b 84% 10.0b Revenue Operating Revenue (RM Billion) 10.0 10.0 11.4 11.4 13.3 13.3 15.6 15.6 16.3 16.3 17.7 17.7 18.4 18.4 18.4 58.9b 4x 13.6b Market Cap 37.5 Market Capitalisation (RM Billion) 37.5 37.0 37.0 43.5 43.0 41.4 38.1 38.1 40.1 43.5 58.9 43.0 56.1 41.4 43.5 25.8 13.6 58.9 56.1 2.7b 94% 1.4b PAT 244m 6x 40m Subscribers 2007 10.0 2007 1.4 2007 1 40 11.4 0.5 89 13.3 PAT (RM Billion) 1.8 2007 1.4 1.4 2007 1 2007 1 2007 2007 0.5 89 1.8 120 120 15.6 2.1 2.1 160 40 Subscribers (Million) 160 40 0.5 89 1.8 120 2.1 160 16.3 2.7 2.7 2.7 17.7 2.9 199 205 199 205 2.9 2.9 199 205 2.7 2.7 2.7 244 244 244 RM6.90 ~3x RM2.47 Share Price 0.22sen 2x 0.10sen DPS 2.47 25.8 13.6 3.05 25.8 Share Price (RM) 4.75 13.6 2.47 3.05 3.05 2.47 40.1 40.1 4.75 10 4.75 10 5.14 43.5 19 5.14 Dividend Per Share (Sen) 10 43.5 5.14 19 19 6.90 6.59 58.9 56.1 23 22 6.90 6.59 6.90 6.59 23 22 23 22 2007 Note: 1 2007 normalised for one-off gains on Dialog shares, Spice IPO and Spice tower sale Axiata Group Berhad Annual Report 013

Key Performance Indicators As a Group, Axiata is firm on setting its Key Performance Indicators (KPIs) based on the Group s strategic direction and vision of being a regional champion. Below is our progress on the KPIs measured and published each year. FY KPI Achievements Revenue Growth Revenue growth measures overall YoY growth of the Group relative to competitors and the industry, excluding all translation impact 7.6% 6.7% Moderate revenue growth amidst intense market competition in Indonesia and weakened IDR KPI FY* Ebitda Growth 0.6% EBITDA growth measures overall YoY growth of the Group relative to competitors and the industry, excluding all translation impact 0.2% KPI FY* Exceeded target with careful cost management and execution of new business and investments * Based on constant currency 014

FY KPI Achievements Roic ROIC is defined as EBIT less tax over average invested capital 10.3% 10.7% Exceeded FY target by 0.4 percentage points KPI FY* ROCE ROCE is defined as EBIT less tax over average capital employed 8.3% 8.6% Exceeded FY target by 0.3 percentage points KPI FY* * Based on constant currency Axiata Group Berhad Annual Report 015