Advancing Asia
Integrated Annual Report 2020
Integrated Annual Report 2020
It was a year of unprecedented challenges and promising opportunities. Guided by our Axiata 5.0 strategy, we reimagined our role to provide greater value to our stakeholders and strengthen our competitive advantage in an evolved digital landscape.
We Are Axiata
This Is Our Investment Case
Delivering connectivity on its own is never enough. Driven by our purpose of Advancing Asia, our energies are focused on leveraging technologies and capabilities across 11 countries to build inclusive and transformative digital societies that benefit all.
The Next Generation Digital Champion by 2024
Pivoting from pure-play telco to diversified digital business
Advancing Asia
Unlocking the power of digital societies
Uncompromising Integrity,
Exceptional Performance
PERFORMANCE
To be one of Asia’s largest telecoms and tech groups
PEOPLE
To be recognised as a top talent brand and an Asian Talent Factory
PARTNERSHIP
To be the number one choice for customers and partners
PLANET & SOCIETY
To be recognised as a responsible Digital Champion
Capturing valuable opportunities in the digital age to service the Enterprise, Consumer and Home segments
Empowering digital transformation for businesses with innovative products in Digital Financial Services, and Digital Analytics and Artificial Intelligence
Providing connectivity services for communities and businesses while driving 5G rollout through edotco, the world’s 16th largest TowerCo
Malaysia
Indonesia
Sri Lanka
Bangladesh
Cambodia
Nepal
Pakistan
Myanmar
Thailand
Laos
Philippines
Over
12,600
employees
across 11 countries
Over
600,000
jobs
supported throughout the region
USD7.7 billion contributed to national GDP in 2020
Chairman's Message
Delivering Digital Trust
Elevating Cyber Security
Enhancing customer trust with Digital Trust and Resilience 2023 (DT&R2023), our three-year cyber security strategy
Enhancing Anti-Bribery and Anti-Corruption
Aligning our workforce and suppliers behind a Group-wide Zero-Tolerance Policy towards bribery and corruption
Driving Data Privacy Awareness
Raising customer awareness on data privacy with updated Privacy Notices and our Cyber Security Advisory
Leveraging High-Level Insights
The Axiata Advisory Panel (AAP) comprises industry and national icons who will advise the Board on macro and regional trends
Advancing To Zero
Committing to achieving a net-zero carbon position, in alignment with the GSMA’s call for industry decarbonisation by 2050
Net-Zero Carbon Roadmap
Identifying Group-wide climate initiatives that will lower our carbon footprint
The Sustainability Steering Committee
Driving coordinated sustainability and climate efforts at the Axiata Corporate Centre and across all OpCos
Adopting Sustainability-Linked Financing
Our USD800 million Syndicated Multi-Currency Shariah-compliant sustainability-linked loan was the first of its kind in the world
In Conversation With The President & Group Chief Executive Officer
Ready For Next
Changed realities bring new growth opportunities. Across our markets, we are enhancing our strategies to drive innovation and capitalise as a diversified digital business.
Driving 5G Readiness
Leading across our OpCo markets with 5G test runs and use cases, industry partnerships and government collaboration
Ramping Up E-Wallet and Cashless Payment Solutions
Driving convenience and safety for consumers and businesses in the post-pandemic environment
Growing Our Micro-Financing and Micro-Insurance Presence
Creating financing and insurance products to drive digital inclusion for consumers and microenterprises
Supporting Malaysia's Digital Society Aspirations
Fostering a sustainable Digital Ecosystem with the proposed Celcom-Digi merger
Becoming a Top 5 Global TowerCo
Driving organic and inorganic portfolio growth to a total of 70,000 towers by 2024
Executing Axiata 5.0
Enhancing our focus on new growth opportunities and digital transformation
Our Strategy
Winning In The New Normal
The Axiata 5.0 strategy is about positioning ourselves to lead our region’s transformation towards sustainable digital ecosystems. Its 3 Core Pillars and 10 Key Focus Areas drive us to capture new normal growth opportunities, lower our cost base, and transform into a High Dividend Company by 2024.
Sustainable Growth
Positioning for New Norms
Emerging as the winner among the gainers by optimising assets, accelerating digital and managing interfaces
OpCos Transformation
Zeroing in on key focus areas at the OpCo level to achieve long-term strategic objectives
New Growth Areas
Capturing double-digit growth in Enterprise, Home and Digital Value Added Services
Operational Excellence As Our DNA
Cost Management
To be the lowest cost producer of data and deliver on our Customer Promise
New Engagement Model
Driving transformation via the virtual centralisation of the Collective Brain
Digitisation & Analytics
Leveraging on Data Analytics, Artificial Intelligence and Machine Learning as a core differentiator
Stakeholder Management
Placing greater focus on regulatory and sustainability matters and our role as nation building partners
Organisation 5.0
Reimagining and refining evolving competencies
Structural Changes
Industry Consolidation
Exploring Mergers and Acquisitions where opportunities arise
Portfolio Optimisation & Value Illumination
Driving organic growth and identifying strategic inorganic transactions
As a critical utility provider across our markets of operation, our OpCos contributed cash and in-kind donations to support emergency needs as well as increased demand for connectivity in 2020. We also put in place a Business Continuity Management and Crisis Management Plan to safeguard our assets and the interests of our stakeholders.
Supporting Employee Safety and Wellbeing Through the Changes and Uncertainties of Lockdowns
► Adopting strict protocols for on-site and Work-From-Home arrangements
► Introducing wellness programmes to support physical and mental health, while providing COVID-19 testing assistance
Securing Our Supply Chain to Mitigate Risks and Minimise Business Disruption
► Working with key suppliers to identify risks and implement mitigations
► Shifting to regional suppliers who are closer to market
Ensuring Technology and Cyber Resilience Amidst Changed Digital Consumption Patterns
► Ensuring resilient networks to cater to surges in data traffic
► Investing and recalibrating to meet additional residential demand
Providing Critical Support to Medical Institutions and Frontliners in the Fight Against the Pandemic
► Donating PPE, medical gear and medical technology to hospitals
► Strengthening data and telecommunications networks for hospitals
Supporting Vulnerable Communities and Small Businesses as They Navigated the Crisis
► Helping micro-SMEs through the Axiata COVID-19 Assistance Programme
► Supporting businesses and communities with OpCo-level COVID-19 funds
► Running food aid programmes to help at-risk communities
Working Hand-In-Hand with Governments to Address Pressing Societal Needs
► Leveraging advanced data and analytics to assist with contact tracing and identify high-risk zones
► Donating to government-created COVID-19 funds
Value Creation
How We Generate Shared Value
Using our 6 capitals - which include our diverse workforce, trusted relationships and business know-how across 11 countries - we enable sustainable outcomes that benefit all.
Financial Capital
Funding and cash generation
Human Capital
Our diverse and driven workforce
Intellectual Capital
Partnerships, brand equity, trust and culture
Social & Relationship Capital
Our trusted relationships
Manufactured Capital
Network infrastructures, data centres, software applications and office buildings
Natural Capital
Our energy consumption and land use
Delivering Long-Term Value to Shareholders
Building a Modern, Agile and Digital Asian Talent Factory
Becoming a Trusted and Reliable Digital Partner
Supporting Governments and Communities in Our Markets
Enabling Digitally-Connected Societies
Minimising Environmental Impact
Financial Performance
Demonstrating Financial Resilience
A focus on operational excellence and cost optimisation initiatives yielded better-than-expected results in 2020, with Revenue and EBITDA holding firm in spite of the impacts of the pandemic.
Governance
Our Commitment To
Good Corporate Governance
We are taking steps to develop an even more holistic view of our business and its impacts, integrating sustainability and Board diversity, among others, as key considerations in our governance structure and processes.
Embedding Sustainability in Our Governance Structure
Enhancing Group and OpCo alignment for more effective implementation of sustainability strategies
Leading In Board Diversity
Ranked first among all 312 companies listed on Bursa Malaysia in the inaugural Malaysia Board Diversity Study and Index
Leadership
Headed by an effective Board of Directors, with clearly defined roles and responsibilities
Effectiveness
Checks and balances to ensure Board effectiveness
Accountability
Supporting the Board’s compliance with the accountability principles
Relations with Shareholders
Maintaining an open dialogue on strategic, governance and other objectives
Integrated Annual Report 2020
Sustainability & National Contribution Report 2020
Governance and Audited Financial Statements 2020
