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Long-Term Group Value Creation Model
Creating Value as One of Asia’s
Leading Telecommunications Groups
Financial Capital
Our Financial Capital is defined as the pool of funds available to us.
Key Inputs
- Axiata is the sixth largest listed entity on Bursa Malaysia Securities Berhad. As our business relies upon the financial capital provided by shareholders and investors, it strives to maximise shareholder value through dividends and the shareholder return policy.
Activities & Processes to Create Value
- Cost Management Programme, with RM800 million in operating expenditure (opex) and capital expenditure (capex) savings built into our 2017 plan
- Strengthening our balance sheet via management of US Dollar denominated debt
- Portfolio rebalancing equity partnerships with Bharti Airtel Limited, Innovation Network Corporation of Japan, Kumpulan Wang Persaraan (Diperbadankan) and Mitsui Co., Ltd
Outcomes
Operating Revenue
Share Price
EBITDA
Market Capitalisation
PAT
Divided Per Share
Creating Value as Digital Talent Factory
Human Capital
Our Human Capital comprises our people who are Axiata’s key resource to sustain our efforts towards our vision of being a New Generation Digital Champion.
Key Inputs
- Our approximately 27,000 employees across our footprint and businesses are a pivotal part of Axiata’s business model, with competent individuals who are customer oriented and innovation driven, contributing to the success of our business. Across the Group, policies and practices are implemented to attract and retain top talent. As an organisation, Axiata is focused on talent development.
Activities & Processes to Create Value
- Investing in our employees’ career development, including skillset training and leadership development initiatives such as:
- Group Accelerated Development Programme (GADP)
- OpCo Accelerated Development Programme (OADP)
- Establishment and review of succession planning to identify and guide internal talent towards leading the company with the Group Talent Management Framework
- Our external : internal hiring ratio has shifted from 78:22 to 40:60 since 2009, demonstrating our commitment to internal talent development and leadership growth across the Group.
- To compete in the digital era and to progress in our digital transformation journey, we aim to complement our internal talent with external talent, especially from non-telco backgrounds
Outcomes
Creating Value through Trust and
Customer Experience
Intellectual Capital
Our Intellectual Capital covers our key intangible resources which differentiate us in the marketplace.
Key Inputs
- Our strong brand equity and trust, coupled with our unique engagement models have earned us a widely acknowledged social reputation across the region. To achieve high levels of customer satisfaction, we are continuously enhancing our portfolio of digital products and services. Axiata’s achievements within this sphere is evident through the international awards and accolades our Group and OpCos receive each year.
Activities & Processes to Create Value
- Triple Core Strategy approach offering growth areas within Digital Telco, Digital Businesses and Infrastructure
- 8 Strategic Initiatives to drive innovations in processes, products and services to achieve our ambition of being a New Generation Digital Champion by 2021
Outcomes
Prism endorsement across ASEAN and South Asia
Ranked No. 2 regional telecommunications provider by customer base
Strong Sustainability Framework applied across The Group
Core Values embraced across the Group
Axiata Engagement Model
Delivering excellent customer service
Net Promoter ScoreResults
- No. 1 in four markets
- No. 2 in two markets
Brand Equity ScoreResults
- No. 1 in three markets
- No. 2 in two markets
- No. 3 in one market
- Strong to Dominant on the Brand Equity Index in all markets
Social Reputation ScoreResults
- Most talked about brands in three markets
- Strong brand presence in other markets
Awards & Accolades
Axiata Group
- PwC Building Trust Awards 2017 Runner Up
- ACCA Malaysia Sustainability Reporting Awards (MaSRA) 2017 - 2nd Runner Up
XL Axiata
- Indonesia Prestige Brand Award 2017 for Brand Used Most Often
- ‘XL’ brand in Mobile Phone Operator category
- ‘AXIS’ in Internet Service Provider category
- Corporate Social Responsibility Awards 2017
Robi Axiata
- GSMA Glomo Award 2017
- Asia Pacific ICT Alliance (APICTA) Award
Celcom Axiata
- Frost & Sullivan Malaysia Excellence Awards 2017
Smart Axiata
- Frost & Sullivan Asia Pacific Best Practices Awards 2017
- IDG ASEAN Awards
Ncell Axiata
- Frost & Sullivan Asia Pacific Best Practices Awards 2017
- Telecom Asia Awards 2017
Dialog Axiata
- SLIM-Nielson PEOPLE’s Awards 2017
edotco
- Frost & Sullivan Asia Pacific Best Practices Awards 2017
Axiata Digital
- IDC Digital Transformation Awards - BIMA
Creating Value through National Contribution
And Social Development
Social & Relationship Capital
Social and Relationship Capital covers our relationships with our stakeholder groups.
Key Inputs
- As we strive to strengthen our relationships with our various stakeholder groups, Axiata’s commitment is to improve the lives of communities throughout Asia through social responsibility programmes, and enabling greater digital and financial inclusion. Through sustained national contributions, the Group supports the socioeconomic development of the 11 countries our businesses operate in.
Activities & Processes to Create Value
- Participants in GSMA’s Connected Women Commitment Initiative
- Designing products under the 4A Model of Affordability, Availability, Applicability and Accessibility to reach untapped markets and to provide ease of access to network coverage
- Focusing on digital inclusivity though the development of specific services to meet the needs of all communities
Outcomes
National Contribution
USD15.9 billion
GDP Contribution for 2017
Directly and indirectly supported more than
1.0 million
Jobs Across Asia in 2017
Financial Inclusion
~2.2 million
customers: >11,000 payment touchpoints
3.8 million
customers in Cambodia, Bangladesh & Sri Lanka
Digital Inclusion
Over 400,000 farmers
registered on Dialog’s ‘Govi Mithuru’ service
Social Responsibility
Axiata Young Talent Programme
1,366 individuals impacted
RM51.4 million spend since 2011
XL Future Leaders
Over 50,000 students reached since 2012
Bumiputera Empowerment Agenda
RM590 million physical distribution by Bumiputera distributors + 3,886 Bumiputera dealers
69% of spend equivalent to RM951 million on Bumiputera companies
Celcom’s Vendor Development Programme
supported
50 Bumiputera
companies since 2014
50 Bumiputera
companies since 2014
Creating Value Through Innovation
And Connectivity
Manufactured Capital
Manufactured Capital comprises the infrastructure that is available, built and utilised to create value.
Key Inputs
- Axiata’s triple core businesses depend on our vast regional network of physical Tower Infrastructure and Digital Platform assets, providing reliable digital and communications coverage to the populations of the 11 countries we have presence in. The Group is continuously harnessing the potential of new technological advancements to further the reach and quality of our network.
Activities & Processes to Create Value
- Maintaining operational efficiency
- Increasing capex from RM6.1 billion in 2016 to RM6.3 billion in 2017
- Focusing capex investment on regional network expansion
- Enhancing network quality through adoption of new technologies
Outcomes
Expanding our coverage within our regional footprint
Population coverage of
1.3 million
people
Adopting new technology to enhance quality of network coverage
Expanded
4G population coverage
Connects Underserved Areas in Indonesia with High Throughput Satellite Coverage
Launched in 2017,
which integrates the short-tail and long-tail businesses of MIFE, IdeaMart & WSO2.Telco
edotco
added 700 towers
to tower portfolio through acquisition of Tanzanite Tower Private Limited in Pakistan
to add 13,000 more towers to portfolio with the completion of the acquisition of Deodar Private Limited in Pakistan in the second quarter of 2018
Creating Value through Innovative
Energy Saving Infrastructure
Natural Capital
Our Natural Capital covers energy and other natural resources used to operate and maintain our networks.
Key Inputs
- To equip our regional businesses and operational systems with digital technologies and processes, Axiata’s network enhancements and improvements focus on minimising our impact on the environment. The Group’s environmental capital improvements hinges on a carbon reduction strategy and optimising energy requirements for our regional network operations through design innovations and renewable energy sources.
Activities & Processes to Create Value
- edotco introduces innovative energy saving tower designs to reduce the Group’s carbon footprint
- Powering sites with alternative energy sources under edotco’s Get Out Of Diesel (GOOD) programme
- Using Remote Monitoring Systems like echo to measure energy parameters of sites and ensure optimised operations
Outcomes
Introducing optimised tower design 25%-29% reduction in carbon footprint
Remote Monitoring System (echo) Monitoring & Ensuring Optimised Operation
Powering sites through renewable energy sources; ~25% reduction per site
Installation of additional
200 solar
and 10 wind
turbine sites in 2017
686
renewable
energy sites
New Design
* The 70% carbon emission based on steel structure vs. bamboo structure