INTEGRATED
Annual REPORT
2021

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ADVANCING ASIA SUSTAINABLY

We are progressing towards becoming The Next Generation Digital Champion by encouraging digital inclusion across our footprint spanning ASEAN and South Asia. In 2022, we are accelerating on climate action by launching our Net-Zero Carbon Roadmap.

Advancing together
Into the digital future

Powered by an innovation-first culture that embraces diversity, we are on track to become The Next Generation Digital Champion by 2024. This is our inclusive vision to empower a greener and digitally-led future that benefits all.

OUR VISION

The Next Generation Digital Champion by 2024

OUR PURPOSE

Advancing Asia

OUR VALUES

Uncompromising Integrity, Exceptional Performance

WHAT DEFINES OUR SUCCESS

PERFORMANCE
To be one of Asia's largest mobile telco and digital 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

THE PROGRESS
WE HAVE MADE

163.1 million mobile customers across ASEAN and South Asia

Enterprise services for ~185,000 businesses

9.7 million Boost Life eWallet users

More than 44,000 owned and managed towers across 8 countries

We are the first Malaysian telco to sign the Science Based Targets Initiative (SBTi)

Signed the United Nations Women’s Empowerment Principles

Supporting 45 technopreneurs through Digital Innovation Funds

RM115 million pledged to Axiata Foundation over the next 10 years

THE PROGRESS WE HAVE MADE
BACK

Championing connectivity
& digital inclusion
across our footprint

We have built a sustainable presence across 11 countries in Asia, where our Digital Telcos, Digital Businesses and Infrastructure contribute to the advancement of individuals, communities and nations.

Our Businesses

DIGITAL TELCOS
Meeting unprecedented consumer demand for data and converged services while driving enterprise digitalisation
DIGITAL
BUSINESSES
Powering Boost’s evolution into a full spectrum regional fintech business and ADA’s expansion into new growth areas
INFRASTRUCTURE
Accelerating edotco’s efforts towards becoming a Top Five Global TowerCo

OUR REGIONAL PRESENCE

A Diverse Talent Factory of over 13,000 employees

Over 700,000 jobs supported throughout the region

USD11.1 billion contributed to the national GDP of 11 countries

CHAIRMAN'S MESSAGE

Advancing Asia Digitally

Tan Sri Shahril Ridza Ridzuan was appointed Chairman of the Axiata Board on 1 January 2022 to spearhead our efforts in delivering balanced and responsible growth, creating shared value across our regional footprint.

GROOMING FUTURE ASIAN LEADERS
As at end 2021, 2,693 Malaysian, 1,100 Indonesian and 41 Cambodian youths have been empowered through our youth talent leadership programmes
SUPPORTING AMBITIOUS TECHNOPRENEURS We are funding a total of 45 digital start-ups and ventures as at end 2021, empowering local digital ecosystems across Asia
INVESTING IN LOCAL COMMUNITIES Through Axiata Foundation, RM115 million will be channelled to empower advancement through education over the next 10 years
DELIVERING INCREASED DIVIDENDS In line with our goal to become a High Dividend Company, a dividend of 9.5 sen per share was declared in 2021, up from 7 sen per share in 2020
ADVANCING TO ZERO In 2021, we developed the Net-Zero Carbon Roadmap, our blueprint to become a net-zero company by 2050
LEADING IN ESG ADOPTION Our MSCI ESG Rating was upgraded from ‘A’ to ‘AA’ and our ESG Rating from three-star to four-star in 2021
ENHANCING DIGITAL TRUST AND RESILIENCE In 2021, our cyber security strategy saw us leverage advanced technologies for enhanced threat detection and response
ENSURING STRINGENT DATA PRIVACY Guided by the application of our T.R.U.S.T principles, our average Privacy Maturity Level surged by 91% in 2021
COMMITTING TO
CLIMATE ACTION

The telco industry has a unique role to play in addressing climate action by not just reducing emissions within its own operations, but also providing digital solutions that will enable our customers to achieve their emissions goals. With regards to the latter, Axiata’s contributions are shaped by its investments in digital solutions and improved network capabilities.

TAN SRI SHAHRIL RIDZA RIDZUAN

Chairman, Axiata

Tan Sri Shahril Ridza Ridzuan
ON COMMITTING TO CLIMATE ACTION
BACK
IN CONVERSATION WITH
THE PRESIDENT & GROUP CEO

EXECUTING
FOR NEXT

Against a constantly evolving backdrop of regulatory, technological, environmental and competitive factors, our President & Group Chief Executive Officer Dato’ Izzaddin Idris is spearheading sustainable strategies to secure future growth while driving cost excellence measures throughout the Group.

FUTURE-PROOFING AXIATA

In positioning the Group to deliver long-term value for stakeholders in the new normal, we have aggressively pursued organic and inorganic growth opportunities in the digital and technological convergence and connectivity, digital financial services, AI, data analytics and infrastructure spaces.

THE PROPOSED CELCOM-DIGI MERGER The proposed merger will unlock synergies and cost-efficiencies by combining the scale, experience, competencies and financial strength of Telenor and Axiata
FURTHERING 5G READINESS Our OpCos continue to lead in their respective markets - launching 5G trials, developing use cases, forging partnerships and developing 5G infrastructure
DRIVING ENTERPRISE DIGITALISATION Fuelled by partnerships with technology giants and strategic acquisitions, we are delivering enterprise offerings that go beyond connectivity, providing businesses with a complete solution to empower their growth in the new digital era
BUILDING A REGIONAL DIGITAL FINANCIAL SERVICES CHAMPION Boost has consolidated five lines of digital businesses and has applied for a digital banking license with RHB Banking Group
EMPOWERING EDOTCO’S EXPANSION In 2021, edotco became the seventh largest towerco in the world based on the number of owned and managed towers, a step closer to its ambition of becoming a Top Five Global TowerCo by 2024
OUR FUTURE OUTLOOK

We believe that our robust business fundamentals and strong performance track record, combined with our empathetic approach to become The Next Generation Digital Champion bringing meaningful value to our customers, communities and the planet sets us up well to keep delivering on our value creation promise moving forward.

Dato’ Izzaddin Idris

President & Group CEO, Axiata

Dato’ Izzaddin Idris
on our future outlook
BACK

The Axiata 5.0 Vision is about being ready and ahead of what’s next at all times. By sharpening the focus of our OpCos towards serving new normal shifts and demands, it is guiding us towards developing inclusive regional connectivity and a digital ecosystem that empowers communities while propelling our business forward.

Sustainable Growth
1. POSITIONING FOR NEW NORMS
Emerging as the winner among the gainers by optimising assets, accelerating digital and managing interfaces
2. OpCos Transformation
Capturing double-digit growth in Enterprise, Home and Digital Value Added Services
3. New Growth Areas
Zeroing in on key focus areas to achieve long-term strategic objectives
Operational Excellence
4. Cost Management
To be the lowest cost producer of data and deliver on our Customer Promise
5. New Engagement Model
Transformation via the virtual centralisation of the Collective Brain
6. Digitisation & Analytics
Leveraging on Data Analytics, AI and ML as a core differentiator
7. Stakeholder Management
Greater focus on regulatory and sustainability matters and our role as nation building partners
8. Organisation 5.0
Reimagining and refining evolving competencies
Structural Changes
9. Industry Consolidation
Exploring mergers and acquisitions where opportunities arise
10. Portfolio Optimisation & Value Illumination
Driving organic growth and identifying strategic inorganic transactions
OUR ASPIRATIONS
DIGITAL TELCOS
Transform from Mobile-Centric Telcos to Converged Digital Operators
In 2021, our Digital Telcos delivered 40% YoY EBIT growth as they leveraged digitisation and analytics, among others, to provide differentiated and segmented digital products and solutions for Consumers, Homes and Enterprises.
DIGITAL
BUSINESSES
Create Two “Unicorns”
In 2021, we consolidated five lines of digital businesses under the Boost brand, laying the groundwork for regional expansion. Meanwhile, ADA secured a USD60 million investment from SoftBank Corp, enabling accelerated development of data solutions.
INFRASTRUCTURE
Become a
Top 5 Global
TowerCo
edotco expanded its tower portfolio to more than 44,000 during 2021, while recording its strongest growth in terms of Built-to-suit (B2S) and co-location in most markets. Both developments have delivered greater scale and profitability.
Our aspirations
BACK

With the aim of powering the long-term progress of communities across Asia, we adopt a holistic view of value anchored by our six capitals and the outcomes they seek to enable.

Capital Input

Outcomes Which Benefit All

Funding and cash generation
  • Maximising shareholder value

  • Sustaining long-term business growth and profitability

Our diverse and driven workforce
  • Attracting and retaining talented employees

  • Providing our talented workforce with career advancement opportunities

Partnerships, brand equity, trust and culture
  • Providing excellent customer experience

  • Establishing strong brand equity and trust

  • Developing digital platforms to cater to customers

Our trusted and valued relationships
  • Contributing to socioeconomic development in our countries

  • Advancing national digital ambitions and aspirations

Network infrastructure, data centres, software applications and office buildings
  • Increasing population coverage and connecting underserved areas

  • Aiding digital and financial inclusion

Our energy consumption and land use
  • Adopting a focused carbon reduction strategy towards achieving net-zero by 2050

  • Optimising energy consumption

In positioning the Group to deliver long-term value for stakeholders in the new normal, we have aggressively pursued organic and inorganic growth opportunities in the fixed and converged, infrastructure, enterprise and digital spaces.

...
Revenue
RM25.9b up
7.0%
...
EBITDA
RM11.4b up
7.0%
...
PAT
RM1.3b up
> 100%
...
Normalised PATAMI
RM1.3b up
53.2%
...
ROIC
5.3% up
1.6pp
...
Customers
163.1m
DRIVING OPERATIONAL
AND COST EXCELLENCE

Operational Excellence initiatives including our cost excellence programme, Collective Brain model, and leveraging on digitisation and analytics yielded results in 2021. Driven by our cost savings initiatives, we surpassed internal targets to achieve total cost savings of RM2.0 billion, of which RM696 million was opex in nature, and RM1.3 billion from better capex management.

Dato’ Izzaddin Idris

President & Group CEO, Axiata

Dato’ Izzaddin Idris
ON DRIVING OPERATIONAL AND COST EXCELLENCE
BACK

OUR COMMITMENT
TO ACCOUNTABILITY

Our Governance Practices
Leadership
Headed by an effective Board of Directors, with clearly defined roles and responsibilities
Effectiveness
The Board Nomination and Remuneration Committee oversees many activities which underpin the effectiveness of the Board
Accountability
The Board Audit Committee assists the Axiata Board in fulfilling its statutory and fiduciary responsibilities in compliance with all relevant laws and regulations
Relations with Shareholders
We maintain an open dialogue with shareholders on strategic, governance and other objectives, taking into account their views and concerns

This is an interactive digital version of the Axiata Integrated Annual Report 2021
The printable versions according to chapters are available in PDF format on this website.

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