Shareholders Value Axiata’s Resilient Performance Despite COVID-19 Impact in 2020

• Steady revenue and EBITDA with operating free cash flow of RM3.3 billion amidst pandemic challenges
   
• Strong balance sheet with RM7.2 billion cash for liquidity to navigate future uncertainties, capture new growth opportunities and improve dividend
   
• Axiata 5.0 Vision and Strategy to future-proof Group’s next growth phase in driving digitisation across the region
   

KUALA LUMPUR – Axiata Group Berhad ("Axiata" or “the Group”) concluded its 29th Annual General Meeting ("AGM") today on a completely virtual platform with shareholders expressing support for the Group’s efforts in realising its Axiata 5.0 Vision and Strategy. Shareholders acknowledged efforts by the Group to drive next-level performance and growth through disciplined execution in delivering its “Next Generation Digital Champion” ambition by 2024. All 12 resolutions tabled during the AGM were successfully passed.

Despite intensive competitive pressures across its markets and protracted pandemic-related challenges, Axiata ended 2020 with revenue steady at RM24.2 billion (-1.5%), Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) of RM10.7 billion (+0.4%) and operating free cash flow of RM3.3 billion (+73.1%). Correspondingly, the Group recorded a strong balance sheet with high cash balance at RM7.2 billion. The Group’s good performance for the year delivered a prudent dividend payout of 7.0 sen dividend per share for the year.

In contributing continued benefits to communities across its footprint, Axiata iterates its commitment on championing digital inclusion. The Group will continue to invest in advanced technologies and network infrastructure in enhancing the experience of customers and communities and supporting governments in the collective response to the accelerated pace of digitisation taking place globally.

Axiata’s Digital Telcos remain focused on retaining number one or strong number two positions in each market, with focus on sustainable growth opportunities, operational excellence and structural changes including market consolidation.

An encouraging evidence of the Group’s growth momentum is further demonstrated by Axiata Digital’s businesses on the path to be profitable by 2022. The future of these core areas is strengthened through strategic partnerships with the long-term view to establish two unicorns in its digital financial services (“Boost Holdings”)¹, and digital analytics and AI (“ADA”)² businesses. Recent announcements on SoftBank Corp’s RM250 million investment into ADA and Boost Holdings’ strategic partnership with RHB Banking Group to jointly pursue a digital bank license attest to the Group’s vision and strategy in driving greater digital inclusion in Malaysia and the region.

Axiata’s Infrastructure business is geared towards expansion, both in-market and into new territories, as edotco Group³ (“edotco”) accelerates towards becoming a much larger and efficient tower company. With ambitious plans in place for edotco, the Group is constantly evaluating options to raise fresh capital to enable the realisation of these goals.

Other key resolutions passed by shareholders at the AGM include the following:

1. Re-election of Directors
   During the AGM, Thayaparan S Sangarapillai and Khoo Gaik Bee, both retiring by rotation, were re-elected as Directors. Shareholders also officially re-elected Ong King How who was appointed to the Board on 28 August 2020, as well as Tan Sri Dr Halim Shafie and Syed Ali Syed Salem Alsagoff who were both appointed to the Board on 1 November 2020.
    
2. Reappointment of Auditors
   Shareholders approved the reappointment of PricewaterhouseCoopers PLT as the Auditors of the Company for the financial year ending 31 December 2021.
    
3. Proposed Shareholders’ Mandate for Recurrent Related Party Transactions (“RRPT”) of a Revenue or Trading Nature
   Shareholders approved the RRPT mandate at the AGM, providing the authorisation that enables Axiata to secure revenues from related parties in the course of doing business.