The Axiata Group

Axiata is one of the leading telecommunications groups in Asia with approximately 350 million customers in 11 countries in ASEAN and South Asia. The Group is listed on the Main Board of Bursa Malaysia Securities Berhad and ranks as the sixth largest company on the bourse as of 31 December 2017.

In pursuit of our vision to be a New Generation Digital Champion by 2021, the Group has transformed itself from a holding entity with a portfolio of pure-play mobile assets into a Triple Core Strategy driven business focus to include Digital Telco, Digital Businesses and Infrastructure. With a broader goal of Advancing Asia, Axiata pieces together the best in the region in terms of innovation, connectivity and talent. As a long-term investor in all our markets, Axiata remains committed to its role as a responsible corporate citizen, to make a difference in people’s lives and help transform the countries in which it operates.

Embarking on Axiata 3.0 with a Triple Core Strategy

Axiata has completed two distinct phases of growth since our inception as an independent company in 2008. With the conclusion of Phase 2 in 2015, we have established Axiata as a Regional Champion providing digital and mobile services to approximately 350 million customers across ASEAN and South Asia, as well as being recognised as a responsible corporate citizen and committed long-term investor.

In Phase 3, ‘Axiata 3.0’ is the playbook guiding the Group’s key strategic decisions on Axiata’s journey to become a New Generation Digital Champion by 2021. Axiata 3.0 has evolved into a clearer heading of the core composition and priority growth pillars. Aligned with our core business pillars of Digital Telco, Digital Businesses and Infrastructure, Axiata 3.0 has further refined the strategy of the business moving forward.

Triple Core Strategy at Centre Stage

While building a leading regional mobile operations, Axiata also made its move into adjacent businesses in 2013. First, in carving out its tower assets into a regional independent tower company. Second, by building a digital business unit with a portfolio of investments to explore market opportunities in the area.

Today, Axiata’s business has been reimagined and redefined into a triple core growth engine with the operational businesses of Digital Telco, Digital Businesses and Infrastructure.

Digital Telco
  • Convergence
  • Digitisation
Digital Telco
Digital Businesses
  • Digital Financial Services
  • Digital Advertising
  • Enterprise Solutions/
    Internet of Things (IoT)
  • Digital Platforms
Digital Businesses
  • Tower Company

Axiata 3.0 has been strategised based on long-term external factors of macroeconomic conditions, regulatory environment, digital shift and a competitive landscape.

Core 1 Transforming Mobile Operators to Digital Telcos with Digitisation and Convergence

Digital Telco
Axiata has grown to become a leading regional mobile network operator since its inception in 2008. Axiata today connects and provides telecommunications services to approximately 350 million customers in ASEAN and South Asia, compared to 40 million when we began.
In becoming a true Digital Telco, we have been reshaping the industry landscape in our markets. Focused on network and IT superiority and digitisation, we are reimagining our business systems to provide innovative, digitised offerings and experience for our customers. In selected key markets, through modest investments, the Group is also capturing opportunities in convergence to ensure long-term growth.
At end 2017, Axiata is one of the largest telecom operators in ASEAN and South Asia with approximately

in customer base
* Axiata’s customer base is benchmarked against regional peers with similar footprint within the ASEAN and South Asia regions.

Core 2 Pivoting into Four Lines of Operational Digital Businesses

Digital Businesses
Axiata’s Digital Businesses today spread across two distinct digital operating companies, Axiata Digital Services or Axiata Digital, and Axiata Business Services, which operates under the brand Xpand. Together, these digital businesses are involved in key verticals of Digital Financial Services, Digital Advertising, Enterprise Solutions/Internet of Things (IoT), and Digital Platforms. Under these verticals, our digital portfolio pivots into four lines of operational businesses to capitalise in the multi-billion dollar digital market opportunities.
Through these digital businesses, the Group is creating new sources of revenue stream as part of our New Generation Digital Champion ambitions. The Group targets to create valuations of USD1 billion for each of these lines of digital businesses.
~2.2 million
 payment touchpoints
 gross value transaction increase

Core 3 Fast-growing Regional Independent Tower Company to Global Scale

Axiata’s infrastructure and services company, edotco, is the first regional and integrated telecommunications infrastructure services company in Asia. Over the last five years, edotco has seen significant portfolio expansion through both organic and inorganic growth to become the 12th largest independent tower company globally.
The Group is determined to make edotco a world-class business and one of the world’s largest independent tower companies by 2020. edotco’s core innovation focus is in green solutions.
> 27,500
Towers owned, managed & operated


Green Sites
Comprising of renewable energy and alternative material sites

All time high Group tenancy ratio at

Core Values Embraced Across the Group

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 operates.

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 a Code of Conduct that serves as our commitment in ensuring our 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.

Full Axiata’s Code of Conduct is available at



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 our dealings



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

These two values are incorporated into the existing values of the individual Operating Companies (OpCos) which include amongst others service excellence, teamwork, creativity and customer centricity.

Shareholding Structure and Portfolio of Investments

Shareholding Structure and Portfolio of Investments

As an emerging leader in Asia’s telecommunications landscape, Axiata made an impressive debut on the Main Board of Bursa Malaysia on 28 April 2008. As of 31 December 2017, Axiata is the sixth largest listed entity on the FTSE Bursa Malaysia KLCI (FBMKLCI). With Khazanah Nasional Berhad as its largest shareholder, Axiata’s shareholding breakdown constitutes a diverse and balanced mix of both local and foreign institutional investors, a testament to its strong business fundamentals, long-term growth prospects and investor proposition.

As a leading telecommunications group in Asia and with majority stakes in Mobile Operators, Digital Businesses and Infrastructure assets, the Group continuously reviews various strategic portfolio options to ensure long-term value enhancement, and optimal deployment of capital and funding for our growth strategies.

Over the last two years, Axiata has attracted high-quality equity partners in some of its best performing companies.

Equity partnerships:

  • November 2016, Bharti Airtel Limited at Robi Axiata Limited
  • January 2017, Innovation Network Corporation of Japan at edotco Group Sdn Bhd
  • April 2017, Kumpulan Wang Persaraan (Diperbadankan) at edotco Group Sdn Bhd
  • May 2017, Mitsui Co., Ltd at Smart Axiata Co., Ltd
Year of Investment/ Shareholding: 2008/100%
Year of Investment/ Shareholding: 2005/66.4%
Year of Investment/ Shareholding: 1995/83.3%
Year of Investment/ Shareholding: 1996/68.7%
Year of Investment/ Shareholding: 2013/82.5%
Year of Investment/ Shareholding: 2016/80.0%
Year of Investment/ Shareholding: 2014/100.0%
Year of Investment/ Shareholding: 2016/100.0%
Year of Investment/ Shareholding: 2012/63.0%
Year of Investment/ Shareholding: 2008/16.3%
Year of Investment/ Shareholding: 2005/28.7%

* Comprise of total shareholdings held by trust funds managed by Permodalan Nasional Berhad

4P Sustainability Framework

Our mission of Advancing Asia is to help our customers connect by piecing together the best in innovation, connectivity and talent. With our presence across 11 diverse and fast emerging countries in ASEAN and South Asia, we have an opportunity to improve the quality of life for our customers and communities through the provision of digital connectivity.

Our 4P Sustainability Framework was developed aligned to Bursa Malaysia’s Sustainability Framework. The Framework covers our material impact in environment, social and marketplace, aligns with our New Generation Digital Champion ambition by 2021, and stakeholders’ demand for greater transparency and disclosure.

Axiata is a member of the Advisory Council of the United Nations Global Compact (UNGC) Network Malaysia. We are committed to embed the 10 principles of the UNGC and support the 17 United Nation’s Sustainable Development Goals in our operations.

Sustainability Governance Structure

The Group Chief Corporate Affairs Officer is responsible for the governance of the Group Sustainability Framework. The Group Sustainability team, helmed by the Head of Group Communications & Sustainability, is responsible for the day-to-day operations. The sustainability team ensures compliance of the Group Sustainability policy, conduct stakeholder engagement, as well as update material issues, standardise data collection and management systems, and provide advisory support and capacity building to operating companies (OpCos).

Sustainability teams at OpCos report indirectly to Group Sustainability. They align and localise the Group’s Sustainability Framework to their national context. They are responsible for daily operations, and implement programmes and data collection to support the Group’s Sustainability Framework. OpCos are encouraged to produce their own Sustainability Report in compliance with the most current Global Reporting Initiative standard.

Axiata Group Board of Directors
Ultimate accountability for Axiata’s sustainable business strategy

Group Chief Executive Officer
Responsible for 8 needle moving strategic initiatives

Group Chief Corporate Officer
Group Sustainability Team

Responsible for the governance of the Group
Sustainability Framework

  • Compliance of the Group Sustainability Policy
  • Conduct stakeholder engagement
  • Group data consolidation
  • Advisory support & capacity building to OpCos

OpCo Sustainability Teams

Celcom XL Axiata Dialog Robi Smart Axiata NCell edotco Group

  • Compliance with OpCo Sustainability Policy
  • Engage with local stakeholders to understand local needs
  • Develop and implement programmes leveraging on core business

OpCo Management
and Board of Directors


Axiata’s Sustainability Framework addresses key material issues that have been identified as important to our business and meeting stakeholders expectations. We use a comprehensive methodology to identify material issues which are subsequently addressed by our sustainability initiatives and disclosed in this report.

The material issues identified and disclosed in the Sustainability Report applies to Axiata Group. Each operating company will align and prioritise these issues according to their local context. We review our materiality matrix biennially. As we move towards Integrated Annual Report, we will review our materiality matrix in 2018 to ensure future disclosure of sustainable business issues are aligned and integrated in our business.

Material Issue Description
1. Network Quality & Coverage The availability and reliability of our mobile service within the markets in which we operate
2. Digital Inclusion Our product offerings and special initiatives undertaken to ensure people at all socioeconomic levels can afford digital connectivity
3. Employee Development & Welfare Our initiatives to promote employee development and welfare such as training and remuneration policies
4. Local Hiring The way that we emphasise the hiring of local talent in our operating countries in order to help invest in the local economy
5. Privacy & Data Protection The level of protection we offer our stakeholders in terms of their private data and other confidential information
6. Customer Service The quality of service we provide our customers
7. Tax & Licensing Ensuring that we effectively navigate all taxation and licensing requirements in our various operating countries
8. Supply Chain Management The way in which we manage and interact with our suppliers to ensure that they observe best practices
9. Governance & Transparency The way that Axiata governs our overall organisation and the transparency of our reporting to our stakeholders
10. Energy & Climate Change Our initiatives to mitigate the impact of our business on the environment
11. Community Impact/Development The way our social programmes impact and create value in the communities we serve
12. Disaster Management & Response Our preparation for disaster management in our operating markets
13. Business Performance Our level of profitability and returns on investments to our shareholders
External Sources

Industry Perception
We perform regular studies on the sustainability performance of top global telecommunication companies as well as publicly available peer information to create benchmarks for our own performance.

Regulatory Perception
We review the feedback from our regulators and address specific areas based on their requests. We also consider the views of regulators not directly related to the telecommunications industry.

Stakeholder Perception
We hold regular discussions with our internal staff who engage directly with our key stakeholders. Their perceptions on sustainability are collected and used in designing our sustainability framework.

Internal Sources

Group KPI
We review the Group’s Key Performance Indicators (KPIs) and their relevance to sustainability issues.

Group Policy
We review the coverage of the Group’s policies in relation to sustainability.

Top Management Perception
We consider the frequency of each sustainability issue or topic taken up in Senior Management Group meetings and their correlation to Axiata’s short- and long-term strategies.

Risk Management Matrix
We assess the Group’s Risk Management Matrix and the relationship of key risks across the Group to sustainability matters.

Stakeholder Management

Guided by the AA1000 Stakeholder Engagement Standard, our Stakeholder Engagement Framework sets out our approach to identify and prioritise stakeholders, the mechanisms we use to ensure meaningful engagement as well as how we communicate our progress in relation to concerns.

The following diagram contains the key mechanisms for engagement in 2017. The Framework is designed to help us gain a good understanding of the views and expectations of our stakeholders, and the current risks and future opportunities these create. The information from our stakeholder engagement provides essential input to our biennial materiality assessment which guides our focus for reporting and informs our strategic approach. This is outlined in the following section and includes a summary of the concerns and interests of various stakeholder groups. More detailed information on our stakeholder engagement can be found on Page 69 to 70 of this report.

How We Engage
  • Net Promoter Score
  • Brand Equity Score
  • Social Reputation Score
Subjects Raised
  • Customer experience
  • Product affordability
  • Network availability
Axiata’s Response & Results
  • Continuously enhancing customer experience
  • Digitising processes
  • Digital self-care apps
  • New digital products and services
How We Engage
  • Employee Engagement Survey
  • Town Hall Meetings
Subjects Raised
  • Career and talent development
  • Employee communication
Axiata’s Response & Results
  • Group and OpCo Talent Development programmes
  • Organisational transformation to Modern, Agile and Digital (M.A.D.) Organisation
How We Engage
  • Annual General Meeting
  • Investor Roadshows
  • Analyst Meetings
Subjects Raised
  • Business performance and strategy
Axiata’s Response & Results
  • Total Shareholder Return
  • Return on Investment
  • Share Price
Regulators & Goverment
How We Engage
  • Proactive engagements
  • Payment of taxes
  • National contributions
Subjects Raised
  • Information security
  • Spectrum allocations
  • Compliance with regulations
Axiata’s Response & Results
  • Employment of citizens
  • Capex and opex contributions
  • Gross Value Added contributions
How We Engage
  • Biennial Axiata Supplier Awards
  • Annual Supplier Forum
  • Supplier Performance Management
Subjects Raised
  • Procurement practices and payments
  • Vendor delivery and performance
  • Compliance to the Supplier Code of Conduct
Axiata’s Response & Results
  • Local vendor sourcing
  • Bumiputera Empowerment Agenda
  • Axiata Partner Development Programme
  • Axiata’s Supplier Code of Conduct
How We Engage
  • Media interviews
  • Press conferences
  • Media releases
Subjects Raised
  • Corporate developments
  • Financial performance
Axiata’s Response & Results
  • Network updates
  • M&A updates
  • Triple Core Strategy and performance updates
How We Engage
  • News media, social media pages and company website
  • Corporate Responsibility Programmes
  • Needs assessment of local stakeholders
Subjects Raised
  • Digital inclusion to ensure no one is left behind
  • Pre and post disaster assistance
  • Building capacity of future leaders
  • Addressing social needs
Axiata’s Response & Results
  • Disaster Management and Response Initiatives
  • Digital and Financial Inclusion Initiatives
  • Axiata Young Talent Programme
  • Axiata Digital Innovation Fund
  • Major contributor to the economies of the markets we operate in
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