Axiata Presentation 18thAGM

18TH ANNUAL GENERAL MEETINGPresentation to Shareholders22 June 2010

AGENDA

22

Axiata Overview

2009 Performance

1Q 2010 Performance

Addressing MSWG Questions

AGM 2010 3

Legend:

Note: Subscribers as of 1Q 2010

Axiata at a GlanceOne of the largest and fastest growing telcos in Emerging Asia Mobile Telecom

Subsdiaries

Associates

10 Countries, 130 million customers

Iran

Pakistan

India

Bangladesh

Sri Lanka

Thailand

Cambodia

Malaysia

Singapore

Indonesia

http://www.dialog.lk/

AGENDA

44

Axiata Overview

2009 Performance

1Q 2010 Performance


AGM 2010 5

All round strong financial results and growth in 2009

Key Highlights of 2009 performance

(‘07 to ‘09)Revenue RM13.1 bn 31%

EBITDA RM5.2 bn 25%

Subscribers 120 mn 202%

Successful Completion of Phase 1 :

Strategies at Axiata and OpCos were executed well, showing tangible results

OpCo engagement model significantly improved

Top management across the group significantly enhanced with strong diversity

Stronger fundamentals (management, processes, strategy) for sustainability

AGM 2010 6

2009 Performance Summary : Group

OPERATING REVENUE (RM mn)

+15%

39%

EBITDA Margin

ADJUSTED PATAMI (RM mn)EBITDA (RM mn)

+18% +44%

All round strong financial results and growth

Strong results, particularly at Celcom, XL and Robi

Strong 2009 results – an all round performance across all major OpCos

38%

Subscribers (mn)

+34%

AGM 2010 7

Strengthened capital structure with further deleveraging of balance sheet with lower Net Debt / EBITDA at 2.0x

Net Debt / EBITDA (x)

3.8x

2.0x

FY 2008 FY 2009

Group turned Free Cash Flow positive

RM 2.1 bn

4.6x

2.4x

Gross Debt/EBITDA

*Free Cash Flow : EBITDA less Capex

265%

2009 Performance Summary : GroupImproved Leverage and Free Cash Flow

Cash On Hand : RM2.0 bn

AGM 2010 8

Strong performance at Celcom, XL and Robi through execution of strategies. Dialog showed signs of continued quarterly improvement

6% 13% 11%6% 2% 19%Celcom

7% 1% 4%*33%* >100%* 45%*Dialog

12% 14% 21%18%XL 3% >100%

Q o Q Performance Y o Y PerformanceRevenue EBITDA PATAMI Revenue EBITDA PATAMI

9% 15%19% 33%* -3%Group 18% 44%*

Note: QoQ denotes 4Q09 vs 3Q09 . YoY denotes FY 2009 vs FY2008.

* Norrmalised

24% 36% 58%>100% >100%Robi >100%

2009 Performance Summary

AGM 2010 9

Perfectly consistent upward trends at Group, Celcom and XL2009 Performance Summary

2,4182,867 3,164 3,381 3,694

4Q 08 1Q 09 2Q 09 3Q 09 4Q 09

7671,045 1,244 1,309

1,559

4Q 08 1Q 09 2Q 09 3Q 09 4Q 09

REVENUE

EBITDA

Axiata Group (RM million)

Axiata Group (RM million)

39.3%31.7% 36.4% 38.7% 42.2%

+36%+19% +5%+19%

+19% +10% +7% +9%

1,471 1,4761,544

1,6061,699

4Q 08 1Q 09 2Q 09 3Q 09 4Q09

Celcom* (RM million)

Celcom (RM million)

664 664 682 716 759

4Q 08 1Q 09 2Q 09 3Q 09 4Q 09

44.2%45.0%45.1% 44.6% 44.7%

*2008 - Fibercomm excluded due to demerger (for comparison purpose)

+0.3%+5%+4%

+6%

+0% +3% +5% +6%

2,978 2,926 3,3283,592

4,033

4Q 08 1Q 09 2Q 09 3Q 09 4Q09

XL (IDR billion)

XL (IDR billion)

1,021 1,113 1,454 1,672 1,965

4Q 08 1Q 09 2Q 09 3Q 09 4Q 09

34% 44% 49%38% 47%

-2% +14%+8%+12%

+9%+31%+15% +18%

AGM 2010 10

Encouraging trends at Dialog and Robi2009 Performance Summary

REVENUE

EBITDA

Dialog (SLR million)

Dialog (SLR million)

8,797 8,475 8,780 8,9459,574

4Q 08 1Q 09 2Q 09 3Q 09 4Q 09

392

1,1361,778 2,252

2,686

4Q 08 1Q 09 2Q 09 3Q 09 4Q 095% 13% 20% 25% 28%

-4% +4%+2% +7%

>+100%+56% +27% +19%

9621,399

2,140

829

2,322

4Q 08 1Q 09 2Q 09 3Q 09 4Q 09

Robi (BDT million)

Robi (BDT million)

3,947 4,392 4,580 4,8986,052

4Q 08 1Q 09 2Q 09 3Q 09 4Q 09

24% 47% 38%32% 17%

+11%+4%+7% +24%

+45%+53%

-61% >+100%

AGM 2010 11

2009 Performance Summary : Subsidiaries

Despite high industry penetration, Revenue grew 13%, >2x industry average

Strong EBITDA growth of 11%, >5x industry average

15 consecutive quarters of revenue growth

Exceeded industry average in almost all key measurements

( Malaysia)

Celcom’s excellent execution of segment marketing and broadband focus delivered strong performance

5,6066,324

FY 08 FY 09

Revenue (RM mn)

2,541 2,822

FY 08 FY 09

EBITDA (RM mn) & Margins (%) PATAMI (RM mn)

19%+13% +11%

1,2941,540

FY 08 FY 09

45.2% 44.6%

AGM 2010 12


Strong Revenue growth of 14% (vs. industry average of 9%)

Significant EBITDA growth of 21%, ~2x industry average

PAT turned profitable

Subscribers grew 21% to 31.4 million

Outperformed all competitors in almost all key measurements

( Indonesia)

XL’s (Indonesia) execution on yield focus strategy showed strong performance in all financial metrics

12,156

13,880

FY 08 FY 09

Revenue (IDR bn)

5,1326,205

FY 08 FY 09

EBITDA (IDR bn) & Margins (%) PATAMI (IDR bn)

>+100%+14% +21%

-15

1,709

FY 08 FY 09

42% 45%

AGM 2010 13

Normalised EBITDA (adjusted for non-recurring charges) improved by 4%

4 consecutive quarters of strong EBITDA improvements


( Sri Lanka)

Dialog ( Sri Lanka ) faced some challenges, but turnaround plans showing encouraging results

36,278 35,774

FY 08 FY 09

Revenue (SLR mn)

7,887 7,853

FY 08 FY 09

EBITDA (SLR mn) & Margins (%) PATAMI (SLR mn)-1%

-12,208

-2,879FY 08 FY 09

22% 22%

-0.4% (Normalised: +4%) >-100% (Normalised: -45%)

AGM 2010 14

Spectacular Revenue growth of 36%

Significant Profit growth improvement – EBITDA increased 58%, PAT turned profitable with growth of more than 100%

Highest quarterly Revenue achieved with growth recorded for 5 consecutive quarters

2009 Performance Summary : SubsidiariesRobi ( Bangladesh ) showed successful turnaround in 2009, with significant growth in revenue and profitability

( Bangladesh)

14,61719,922

FY 08 FY 09

Revenue (BDT mn)

4,235

6,691

FY 08 FY 09

-1,178

857

FY 08 FY 09

EBITDA (BDT mn) & Margins (%) PATAMI (BDT mn)

>+100%+36% +58%

29% 34%

AGM 2010 15

209 Performance : AssociatesIdea had a strong performance despite challenging industry. M1 showed table performance

HIGHLIGHTSCOMPANY YEAR ON YEAR PERFORMANCE OVERVIEW

Strong 2009 results amidst challenging sector conditions

Revenue Subs EBITDA48% PAT20%23% 8%

Revenue Subs EBITDA PAT8%2% 2%Launch of new mobile services, NGNBN and iPhone to provide exciting new opportunities

0.1%

Note : Idea based on their financial calendar ending March 2010

AGENDA

1616

Axiata Overview

2009 Performance

1Q 2010 Performance


AGM 2010 17

1,636

1,678

4Q09 1Q10

3,7563,813

4Q09 1Q10

1Q 2010 Performance Summary : Group ( Quarter on Quarter)

2% 3% 8%

The momentum continues...

44% 44%

551594

4Q09 1Q10

OPERATING REVENUE (RM mn) ADJUSTED PATAMI (RM mn)EBITDA (RM mn) Subscribers (mn)

8%

120.0 129.7

4Q09 1Q10

AGM 2010 18

Strong Q o Q performance at Celcom and XL with profit turnaround in Dialog. Short term pressure at Robi in pursuit of growth.

0.2% 15% 16%2% 7% 24%Celcom

3% 42% 92%9%XL 18% >100%

Q o Q Performance Y o Y PerformanceRevenue EBITDA PATAMI Revenue EBITDA PATAMI

2% 31%3% 65% -3%Group 52% >100%

Note: QoQ denotes 4Q09 vs 1Q10 . YoY denotes 1Q09 vs. 1Q10

2% >100%18% >100%Dialog 16% >100%

Normalised for International Gateway (IGW) Revenue recognised from 4Q09 with finalisation of agreements at year end1

35% 11% >100%Robi 5% 33% 91%1

1Q 2010 Performance Summary

AGM 2010 19

1Q 2010 Performance : Affiliates ( Quarter on Quarter )Idea had a solid all round performance while M1’s revenue and profitability was up

HIGHLIGHTSCOMPANY QUARTER on QUARTER PERFORMANCE OVERVIEW

Strong 4Q finish amidst challenging sector conditions

Revenue Subs EBITDA11% PAT13%

Higher service revenue, handset sales and data revenue. Handset costs impacted EBITDA

6%

2% Revenue Subs EBITDA PAT15% 6%

57%

3%

AGM 2010 20

Axiata Share Price has outperformed KLCI in 2010 and is the best performing stock in the KLCI (Top 30) for the year to date

80%

90%

100%

110%

120%

130%

140%

AXIATA KLCI

Period : 1 Jan 2010 – 21 June 2010

Axiata

KLCI

29%

5%

AGENDA

2121

Axiata Overview

2009 Performance

1Q 2010 Performance


AGM 2010 22

• Group EBITDA margin of 39.3% is a consolidated number derived from companies operating in different countries and not comparable to other Malaysian operators.

• In Malaysia, Celcom in 2009, outperformed the competitors with an EBITDA growth of 11% and margin improvements by 0.4 pp while other 2 major competitors showed decline in EBITDA and margins

• Similarly, XL led the Indonesian competitors in 2009 with improved margins while other 2 major competitors had margin decline

• Improvements shown were the result of the initiatives of Cost Management Programme and variety of market programmes to improve revenue contribution from its subscribers’ base.

QUESTIONS ASKED BY MSWG

1. We note the EBITDA margin for the Group was 39.3%, helped by Celcom and XL which were at 44.6% and 44.7% respectively. However, it was below the market leader. What would be the Group’s overall medium to long term ways to improve EBITDA margin, amidst the competitive environment?

Response :

-22-

Operations and Financial Performance

AGM 2010 23

a) The subsidiary referred to is Celcom where these projects were completed after receiving necessary approvals from the relevant authorities that resulted in the write-back of impairment loss provision in the year. The impairment loss provision was made in the prior years based on the appropriate accounting policies and prudent accounting practice.

b) The impairment loss was contributed mainly by Dialog’s impairment of old and replaced network assets resulting from the completion of its mobile network modernisation project during the year. The impairment in Dialog contributed approximately 77% of total net impairment losses of the Group.

The breakdown of impairment losses of RM83.6 million are as follows:-

Dialog network modernization RM64.8 millionXL Capital Work-in-progress impairment RM11.9 millionOthers (net of Celcom reversal of impairment loss RM5.2 million) RM6.9 million


3. It was reported that the Group incurred net impairment losses of RM83.6 million (2008: RM12.8 million), primarily for PPE due to the write down of certain telecommunication network assets in which the assets were written down to its recoverable values, net of reversal of impairment losses of RM5.2 million (2008: RM16.0 million) in relation to capital work-in-progress made on a subsidiary’s long outstanding projects which were now completed.

a) Which is the subsidiary involved and why was this project long outstanding?b) Given the long outstanding work-in-progress, was the impairment loss due to costs over-runs?

Response :

-23-

Operations and Financial Performance

AGM 2010 24

a) Group CAPEX guidance for 2010 is RM3.6 billion

b) Axiata have been, and will continue to deploy and operate state of the art wireless networks using the GSM family of technologies. The technology roadmap began with GSM, moving on to HSPA, HSPA+ and LTE. LTE trials have been conducted by M1 with very positive results. The Group will pursue LTE as and when spectrum is made available.


8. In 2009, Celcom’s total capex was around RM770 million and major domestic Celcos would range between RM700 million to RM1.24 billion.

a) What would be the Group’s OpCos guided capex in 2010?b) What is the Group’s plan(s) on the 4G LTE (Fourth Generation Long Term Evolution) technology?

Response :

-24-

Balance Sheet and Strategies

AGM 2010 25

• The Board led by the Board Nomination Committee has recently completed this process and resolved on the right size and the criteria of candidates that the Board is looking at. The process for identification of candidates is currently ongoing and this includes engaging the services of third party recruitment specialist and/or consultant to assist the Board.

• The process is targeted to be completed by 3Q’2010. In the meantime, with the present Members, the Board is sufficiently equipped to manage its role as the required expertise is still present and all legal requirements are met.


9. It was reported that the Board was planning a holistic review of the Board’s composition and balance in 2010, taking into account the various feedback and current and future needs of the Group, including diversity in terms of skill- sets, ethnicity, gender and nationality which would be necessary for a regional group like Axiata. Could the Board further enlighten the shareholders on how soon this would occur taking into cognizant of the two less Board members as compared to last year?

Response :

-25-

Corporate Governance Matters

company confidential26

Thank You

www.axiata.com

Axiata Group Berhad

26

http://www.axiata.com/

Axiata Presentation 18thAGM

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