AXIATA.pdf
Transcript of AXIATA.pdf
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Axiata Group Berhad (242188-H)(formerly known as TM International Berhad)
Level 42, North WingMenara TMJalan Pantai Baharu50672 Kuala LumpurMalaysia
Website: www.axiata.com
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Axiata Group Berhad (242188-H)(formerly known as TM International Berhad)
Level 42, North WingMenara TMJalan Pantai Baharu50672 Kuala LumpurMalaysia
Website: www.axiata.com
AX
IAT
A G
RO
UP
BE
RH
AD
AN
NU
AL
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PO
RT
(24
218
8-H
) 20
08
A N N U A L R E P O R T 2 0 0 8
Axiata Group Berhad (242188-H)(formerly known as TM International Berhad)
Level 42, North WingMenara TMJalan Pantai Baharu50672 Kuala LumpurMalaysia
Website: www.axiata.com
AX
IAT
A G
RO
UP
BE
RH
AD
AN
NU
AL
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PO
RT
(24
218
8-H
) 20
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A N N U A L R E P O R T 2 0 0 8
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P R E S E N T I N G
Axiata Group Berhad (242188-H)(Formerly known as TM International Berhad)
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The Tangram Connection
The TANGRAM is an ancient Chinese moving piece puzzle, consisting of geometric shapes. Various tangram patterns may be formed from the geometric pieces of the tangram puzzle. It is highly creative and flexible in its application.
Axiata, like the TANGRAM has its origins in Asia and is piecing together: connectivity, technology and talent to catalyse progress in Asia.
Axiata, like the TANGRAM offers a variety of innovative solutions for our over 89 million customers, connecting them to the world, expanding the horizons of an upwardly mobile Asia.
Axiatas values and beliefs are reflected on the TANGRAM pieces, where they come together as one binding our values and beliefs as guiding pillars of our operations, laying the path to our future success.
Axiata Group Berhad Annual Report 2008
(formerly known as TM International Berhad)2
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C O L L A B O R A T I V E
The bridge is reflective of Axiata, bridging relationships through affordable connectivity. Axiata is firmly grounded in each national economy, leveraging on world-class processes, economies of scale and regional synergies.
E X C E L L E N C E
The arrow embodies Axiatas quest to excel, delivering sustainable growth and performance excellence across all of its operations, guided by a policy of strict financial discipline to enhance value to shareholders. Axiata continuously evaluates new emerging technologies to deliver cost effective, innovative and differentiated services to over 89 million customers across Asia.
U N C O M P R O M I S I N G
The house demonstrates Axiatas commitment as an organisation to advancing communities for sustainable development through its technology and people.
I N N O V A T I O N
The rocket signifies Axiatas commitment to accelerate progress through innovative technology and alliances Axiata brings new technologies and services such as 3G, HSPA and mobile broadband to expand the horizons of an upwardly mobile Asia.
O P T I M I S T I C
The bird in full flight symbolises our aspirations for Axiata, a dynamic organisation that is set to soar and make its presence felt in the industry. Axiata is Advancing Asia through mobile communications by piecing together technology, connectivity and talent.
L O C A L R E L E V A N C E
The key represents Axiatas ability to unlock the potential of its Operating Companies. Axiata understands Asia better than anyone else we are a unique organisation combining the local expertise of national operating companies with the strong support of a regional corporation.
P R I N C I P L E D
The boat is representative of the firm and sound leadership of Axiata, navigating the organisation towards its ambition to become the regional champion by 2015.
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Annual Report 2008
Axiata Group Berhad Annual Report 2008
(formerly known as TM International Berhad)4
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Contents
I OPTIMISTIC9 The Brand
10 Who We Are and What
We Do
11 Our Beliefs and Values
12 Financial Calendar
12 Corporate Information
II COLLABORATIVE16 Axiata Profile
18 Regional Presence
20 Group Corporate Structure
III EXCELLENCE24 Chairmans Statement
28 President and Group Chief
Executive Officers Business
Review
37 Group Financial Overview
38 Two-Year Group Financial
Summary
39 Two-Year Group Financial
Highlights
40 Simplified Group Balance
Sheet
41 Reporting by Geographical
Location
42 Group Financial Review
46 Acquisition of Idea:
Expansion into India
48 Major Milestones
51 Awards and Accolades
IV PRINCIPLED54 Board of Directors
56 Profile of Directors
62 Profile of Management Team
67 Profile of Operating
Companies Management
Team
72 Statement on Corporate
Governance
79 Directors Statement on
Internal Control
86 Board Audit Committee
Report
V LOCAL RELEVANCE98 Malaysia
104 Indonesia
108 Sri Lanka
114 Bangladesh
118 Cambodia
120 India
122 Singapore
124 Iran
126 Pakistan
128 Thailand
VI INNOVATION136 Products and Services
Catalogue
140 Products and Services Review
VII UNCOMPROMISING146 Corporate Responsibility
Marketplace Perspective
People Perspective
Community Perspective
Environmental Perspective
FINANCIAL STATEMENTS
156 Directors Statement of
Responsibility
157 Audited Financial Statements
for the financial year ended
31 December 2008
305 Group Financial Analysis
OTHER INFORMATION
309 Shareholding Statistics
312 Additional Compliance
Information
315 Net Book Value of Land and
Buildings
316 List of Top Ten Properties
317 Group Directory
318 Glossary
322 Notice of Annual General
Meeting
325 Statement Accompanying
Notice of Annual General
Meeting
326 Administrative Details for the
17th Annual General Meeting
Proxy Form
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O P T I M I S T I CThe bird in full flight symbolises our aspirations for Axiata, a dynamic organisation that is set to soar and make its presence felt in the industry. Axiata is Advancing Asia through mobile communications by piecing together technology, connectivity and talent.
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10countries
25,000employees
89million customers
Axiata Group Berhad Annual Report 2008
(formerly known as TM International Berhad)8
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The name Axiata embodies who we are. A company thats vital to people all across Asia. Our logo, the Axiata prism is multifaceted and multidimensional
reflecting our rich heritage, diversity and vibrancy. It is as colourful as the
different countries we serve.
It shows the world that we view situations from every perspective, taking all
viewpoints into account.
It also reflects our vision of providing multiple services from basic voice to rich
data, from basic data to broadband, from SMS to 3G, from simple data to rich
content.
It unites all our partners and connects us to our customers.
Multidimensional.
Thats Axiata.
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Who We Are and What We Do
We understand Asias communication needs better than others. Together we are
a family, with operations in 10 countries, 25,000 employees and over 89 million
customers. We are uniquely Asian. Our purpose is to advance Asia towards a
better, brighter future.
Axiata is Advancing Asia by:
bridging relationships through affordable connectivity. We strive to bring affordable and innovative mobile communication services and coverage to
over 1.5 billion people throughout Asia, so they can be connected to each
other and to a wealth of information, entertainment and more. From remote
villages, to large cities, we are connecting people from all walks of life.
acceleratingprogressthroughtechnology.We are investing in cutting edge technologies that include 3G, HSPA, Next Generation Networks and Wimax,
so customers can experience Internet on the move and connect with anyone,
anytime, anywhere, any way they want. Technologies that are innovative,
relevant and affordable.
developing talent throughout Asia. We bring employment and career opportunities to 25,000 people throughout Asia. We leverage on this
diversity to develop human capital for national and regional growth. We are
grooming the talent of Asia, by providing regional career experience and
world class people development programmes, so they can realise their full
potential.
Axiata Group Berhad Annual Report 2008
(formerly known as TM International Berhad)10
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Our Beliefs and Values
Axiata is the emerging leader in Asian telecommunications with a vision of becoming a regional champion. Axiata is Advancing Asia by bringing affordable
connectivity, innovative technology and world class talent to the entire region.
We are an organisation that pursues excellence and innovAtion across our
entire operations, bringing the most advanced and world-class communication
services to the region.
We are an organisation of global stature with sensitivity to the local markets
that we operate in. We take a collABorAtive approach in all our partnerships,
ensuring that we address the specific needs of our stakeholders, offering
products, services and solutions that are of locAl relevAnce.
We are principled and uncompromisinG, holding ourselves to the highest
standards of conduct. We are a company with a purpose and we play a core
role in nation development in the markets that we serve.
We are adaptive and optimistic, an organisation with continued energy and
confidence, that is ready to meet global challenges.
Axiata is Advancing Asia towards a better, brighter future.
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Corporate Information
BOARD OF DIRECTORS
TAN SRI DATO AZMAN HJ. MOKHTAR
Chairman
Non-Independent Non-Executive Director
DATO SRI JAMALUDIN IBRAHIM
Managing Director/President and
Group Chief Executive Officer
DATO YUSOF ANNUAR YAACOB
Executive Director/Group Chief Financial Officer
TAN SRI GHAZZALI SHEIKH ABDUL KHALID
Independent Non-Executive Director
DATUK AZZAT KAMALUDIN
Senior Independent Non-Executive Director
JUAN VILLALONGA NAVARRO
Independent Non-Executive Director
DAVID LAU NAI PEK
Independent Non-Executive Director
GITA IRAWAN WIRJAWAN
Independent Non-Executive Director
ISMAEL FARIZ ALI
Non-Independent Non-Executive Director
DR. FARID MOHAMED SANI
Non-Independent Non-Executive Director
Alternate Director to Ismael Fariz Ali
Financial CalendarFinancial Year 2008
ANNOUNCEMENT OF RESULTS
22May 2008 ThursdayAnnouncement of the unaudited consolidated
results for the first quarter ended 31 March 2008
26August 2008 TuesdayAnnouncement of the unaudited consolidated
results for the second quarter ended 30 June
2008
26November 2008 WednesdayAnnouncement of the unaudited consolidated
results for the third quarter ended 30 September
2008
26 February 2009 ThursdayAnnouncement of the unaudited consolidated
results for the fourth quarter ended 31 December
2008
ANNUAL REPORT AND ANNUAL GENERAL MEETING
29April 2009 WednesdayDate of notice of 17th Annual General Meeting
and date of issuance of the 2008 Annual Report
20May 2009 WednesdayDate of 17th Annual General Meeting
Axiata Group Berhad Annual Report 2008
(formerly known as TM International Berhad)12
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GROUP COMPANY SECRETARY
Suryani Hussein (LS0009277)
REGISTERED OFFICE
Level 42, North Wing
Menara TM
Jalan Pantai Baharu
50672 Kuala Lumpur
Malaysia
Tel : 603 2240 3000
Fax : 603 2241 3005
Website : www.axiata.com
SHARE REGISTRAR
Tenaga Koperat Sdn Bhd
(Company No. 118401-V)
Level 17, The Gardens North Tower
Mid Valley City
Lingkaran Syed Putra
59200 Kuala Lumpur
Malaysia
Tel : 603 2264 3883
Fax : 603 2282 1886
AUDITORS
PricewaterhouseCoopers
(AF: 1146)
Level 10, 1 Sentral
Jalan Travers
Kuala Lumpur Sentral
50706 Kuala Lumpur
Malaysia
Tel : 603 2173 1188
Fax : 603 2173 1288
STOCK EXCHANGE LISTING
Listed on Main Board of
Bursa Malaysia Securities Berhad
Listed Date : 28 April 2008
Stock Code : 6888
Stock Name : Axiata
This Annual Report is available on our website at www.axiata.com
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C O L L A B O R A T I V EThe bridge is reflective of Axiata, bridging relationships through affordable connectivity. Axiata is firmly grounded in each national economy, leveraging on world-class processes, economies of scale and regional synergies.
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Axiata Profile
About AxIAtAAxiata Group Berhad (Axiata) is the emerging leader in
Asian mobile telecommunications. The Group, one of
the largest telecommunication companies in the region,
has extensive operations and businesses in 10 countries
in Asia, providing a comprehensive range of mobile
communication services to a combined base of over
89 million subscribers.
The Group currently has controlling interests in its
mobile communication operations in Malaysia, Indonesia,
Sri Lanka, Bangladesh and Cambodia as well as strategic
stakes in India, Singapore, Iran, Pakistan and Thailand
through its various subsidiaries and affiliates. Its mobile
subsidiaries and affiliates operate under the brand
names Celcom in Malaysia, XL in Indonesia, Dialog in
Sri Lanka, AKTEL in Bangladesh, hello in Cambodia,
Idea and Spice in India, M1 in Singapore and MTCE
in Iran.
AxIAtAs Journey to DAteThe Axiata story has been a remarkable one
incorporated in Malaysia on 12 June 1992 as a private
limited company under the name Telekom Malaysia
International Sdn. Bhd., it commenced business in 1994
as a division within Telekom Malaysia Berhad (TM),
focusing on expanding the Groups footprint primarily
through mergers and acquisitions (M&A). On 16 October
2001, the Company changed its name to TM
International Sdn. Bhd., and over the next seven years
continued to expand its presence in the region, building
a portfolio which balances interest in emerging markets
with low mobile penetration rates and Best-in-Class
and innovation driven subsidiaries in mature markets.
On 12 December 2007, the Company was converted
into a public company bearing the name TM International
Berhad (TMI).
Axiata Group Berhad Annual Report 2008
(formerly known as TM International Berhad)16
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The Group completed its strategic
demerger exercise that saw the
separation of the mobile business
from TM. The demerger resulted in
TMI emerging as an independent
entity in the regional mobile
te lecommun icat ions market ,
enabling it to focus on its own core
business and accelerate operational
i m p r o v e m e n t s a n d g r o w t h
initiatives. TMI was listed on Bursa
Malaysia Securities Berhad (Bursa
Securities) on 28 April 2008,
marking a new chapter in its
transformation towards becoming
a regional giant in the mobile
communications market.
Since then, the Group has continued
to build on its strengths and
synergies. As part of its move to
consolidate and strengthen its
regional footprint, the Group
entered into an arrangement with
Idea Cellular Limited (Idea), which
will see the merger of Idea and
Spice Communications Limited
(Spice) in India. The enlarged Idea
is the fifth largest mobile player in
Indias high growth market. In
addition, the Group expanded its
regional partnerships with the entry
of Japans largest cellular operator
NTT DOCOMO, INC. (DOCOMO) into
TM International (Bangladesh)
Limited (TMIB) in June 2008.
MArkIng A new erA: AxIAtAThe Company has, with effect from
31 March 2009, changed its name
to Axiata Group Berhad and
launched its new identity on 2 April
this year, as part of a rebranding
exercise aimed at enhancing its
position as a leading regional mobile
operator. The move was a requisite
step to reinforce the Groups new
bus iness ph i losophy and i ts
commitment to Advancing Asia by
a d d r e s s i n g t h e u n f u l f i l l e d
communication needs of local
populations with affordable and
innovative products and services.
As an emerging leader, Axiata will
continuously invest in innovative
products and services that are
uniquely catered for customers in
Asia. It is committed to bringing
first-class resources, technology
and expertise to its unique portfolio
of growth assets. In all spheres of
its operations, Axiatas Operating
Companies (OpCos) play a leading
role in developing and enhancing
the local telecommunications
industry.
As a Group, Axiata is a unique
organisation, combining the local
expertise of national operating
companies with the strong support
of a regional corporation. Through
affordable connectivity, Axiata
bridges relationships between 1.5
billion people across Asia to the
world.
Today , the Group prov ides
employment to over 25,000 people
across Asia, bringing greater
opportunities and developing world
class talent across the region. Its
regional platform enables the
dynamic exchange of knowledge
among employees and contributes
to the human capital development
of the OpCos.
Axiata, as a major regional entity in
mobi le telecommunications is
committed to using its technological
and human capabilities to drive
social, economic and environmental
change in the nations it serves and
plans to introduce and implement
its Group Corporate Responsibility
(CR) Po l icy and programme
initiatives in 2009. In line with the
UN Millennium Development Goals
(MDGs), the Groups CR initiatives
will be focused on Information and
Communication Technologies (ICT)
for development, education and
the environment.
Because it understands Asia, Axiata
is piecing together the best
t h r o u g h o u t t h e r e g i o n i n
connectivity, technology and
people, uniting them towards a
single goal: Advancing Asia.
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