DELIVERING OUR STRATEGY - Axiata Group Berhad
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Ax iata G ro u p B erhad Integ rated An n ual Rep or t 2020 59
Shraddha Bhattarai
Specialist, Legal
& Corporate Services Department
Ncell Axiata
Terrace gardening to grow
my family’s supply of vegetables.
#ItBeginsWithMe
DELIVERING
OUR STRATEGY
Ax iata G ro u p B erhad Integ rated An n ual Rep or t 2020 60
2020 Overview Of Digital Telcos’ Performance
Reporting By Geographical Location1
Malaysia (RM Billion) Indonesia (IDR Trillion) Sri Lanka (SLR Billion)
26.0
120.1
25.2
7.3
116.8
109.2
23.0
22.9
6.7
6.6
6.6
6.2
21.4
94.2
86.7
13.1
50.9
10.0
46.7
43.5
2.6
2.6
8.5
8.3
2.3
2.3
33.9
8.1
29.2
1.9
12.0
1.0
1.1
0.8
10.8
10.8
0.7
9.0
7.5
0.3
(3.3)
0.4
0.7
0.4
0.4
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Bangladesh (BDT Billion) Cambodia (USD Million) Nepal (NPR Billion)
326.7
75.6
315.3
58.1
57.5
74.8
54.2
287.5
68.0
68.3
268.2
262.8
41.9
52.7
37.0
35.5
178.9
31.8
167.8
134.8
32.2
129.8
23.9
127.2
28.8
18.9
15.3
70.0
74.4
14.0
67.6
16.6
67.2
68.1
14.3
13.0
(2.8)
(3.9)
0.17
3.1
1.6
2.1
2016 2017 2018 2019 2020 2016 20172 2018 2019 2020 2017 2018 2019 2020
Notes: 2019 financial numbers are post International Financial Reporting Standards (IFRS) 16 (except for Indonesia, which is only from 2020) Revenue EBITDA PAT
1
Axiata’s reporting by geographical location is conducted for its OpCos: Celcom, XL, Smart, Dialog, Robi and Ncell
2
2017 figures have been restated to exclude edotco Cambodia’s results, for like to like comparison with 2018 figures
3
Nepal’s financial numbers are based on financial year ended mid (15th/16th) December through the years 2017 to 2020
4
Smart’s Revenue are pre IFRS 15 for the years prior to and up to 2019. 2020 Revenue is post IFRS 15
Ax iata G ro u p B erhad Integ rated An n ual Rep or t 2020 61
Year of Investment/Shareholding: Technology Deployed: No. of BTS/ Network Coverage
2008/100.00% Mobile: Node B: (by population coverage):
Nature of Business: GSM/GPRS/EDGE, 3G/ 2G: 8,192 2G: 95.22%
Mobile Telecommunications HSPA+, LTE/LTE-A/VoLTE 3G: 15,087 3G: 94.18%
4G: 21,213 4G: 92.23%
Customers: Scan to watch more from Scan QR code to visit
Fixed Network:
our Chief Executive Officer, Celcom’s website
8.7 million FTTx, WTTx Celcom Axiata
Revenue EBITDA EBITDA Margin PATAMI Customers Implemented various Consistently carried out Adapted to new norms:
(RM Billion) (RM Billion) (%) (RM Billion) (Million) safety measures at the multi-level communication Fast adoption of Work-
-7.3% -14.2% 3.7% workplace to contain programmes throughout From-Home (WFH)
2.6 2.6 41.5%
0.8 the pandemic, prioritising 2020 resulting in higher and new ways of working -
6.7 6.2 39.0% 8.4 8.7
0.7 employee wellbeing and employee engagement Provided digital tools
safety always to drive productivity and
facilitate collaboration
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Blended ARPU Smartphone Data Usage (Per Data Sub
Completed workforce Fighting spirit reignited throughout the
(RM) Penetration Per Month) (GB)
rationalisation programme organisation to win back the market evident
51 ce Pe
48
84% 88% 18.5 an o towards a leaner workforce with turnaround performance since second
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13.7 half of 2020
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2019 2020 2019 2020 2019 2020
Rolled out a comprehensive COVID-19 response to help cushion the Leading in Contributing At the forefront of 5G development by
economic and social impacts of the crisis in Malaysia for customers, the 5G era to the national supporting the Government through 5G
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vendors, partners and others within the ecosystem. via multiple Universal Service demonstration projects and use cases:
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industry Provision 5G Langkawi demonstration
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This included:
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Keeping communities connected, productive and safe So collaborations programme to 5G and Smart Solutions partnership
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&
r t for fiber bridge the digital with Sunway City and Huawei
Ensuring support for small and micro businesses ci Pa
et
Facilitating supply chain stability y sharing and 5G divide in remote 5G Centre of Excellence with University
Supporting the Ministry of Health’s connectivity requirements networks areas Teknologi Malaysia and Ericsson
Inspiring positivity throughout the pandemic with 5G demo network in PJ Smart City
the #StayIn and #LightItBlue campaigns
Embarked on multiple Introduced Launched enhanced Vendor
Enterprise collaborations crowdsourcing Development Programme
Implemented programmes that empower the The Green office@celcom initiative helped in key focus areas such dealers’ ecosystem (VDP) 2.0 in close collaboration
underserved in the digital economy and to reduce employees’ carbon footprint as healthcare, education, “BeBozz” supporting with government agencies to
provide equitable access to education via waste management, paperless Internet of Things (IoT) and the Gig Economy develop capable, self-sustaining
such as DesaMall, Mahir Digital Felda, practice, energy efficient fixtures ICT Solutions and competitive suppliers that can
SiswaCommerce, IbuDigital, Tuisyen Pintar and many more complement Celcom’s ecosystem
and Mahir Tutor
Note: B40 refers to the bottom 40%
1
IAR • For more details on Celcom’s performance, please refer to pages 15 to 29 of the SNCR For more details on Celcom’s sustainability initiatives and outcomes, please refer to the SNCR
households in the country’s income “In Conversation With The President & Group Chief Executive Officer” section
distribution • For more details on the value Celcom has created during the year, please refer to pages 42 GAFS For more details on awards won by Celcom in 2020, please refer to page 17 of the “Awards” section
to 49 of the “Towards Becoming The Next Generation Digital Champion” section
• For more details on Celcom’s financial performance, please refer to page 52 of the
“Our Financial Resilience” section
Ax iata G ro u p B erhad Integ rated An n ual Rep or t 2020 62
Operating Environment
Outlook for 2021 and Beyond
Mobile industry revenue under pressure due to economic Heightened competition mid-2020, as players sought to Challenging macro conditions expected to remain in 2021,
downturn caused by the pandemic re-store revenue growth post MCO¹ with possible future waves of COVID-19 infections
Surge in data traffic and new traffic patterns Change in regulatory landscape from the initial plan for 5G with a new Government announced acceleration of 5G roll out under
emerged, leading to lower price per GB. Industry approach in 2021. Government announced National Digital Infrastructure the MyDIGITAL economy blueprint, and sunsetting the 3G
wide free 1GB implemented in support of Plan (JENDELA) in the second half of 2020, to be executed in phases over network under JENDELA, both by the fourth quarter of 2021
government initiatives the next few years
Continued execution of Transformation Programme via three
Business Review in 2020 focus pillars - drive fastest value growth, establish future-
proof differentiated core, and igniting the fighting spirit
Resilient and strong market momentum Total revenue impacted Focused effort on Digitising Customer
amidst the pandemic challenges, by the MCO, moderated by Experience continues to deliver results.
Continued focus on new growth areas in Home and
significant YoY growth in subscriber uplift from MVNO2 and Home > 70% of Smartphone users have adopted
Enterprise segments; expanding coverage for Home
base > 300k YoY. Revamped product segments the Celcom Life App. Recorded > 100% YoY
Broadband and evolve our Convergence proposition. Growing
portfolio with new Prepaid Truly growth in number of App transactions Enterprise ICT and solutions portfolio to support Digitisation
Unlimited and Postpaid MEGA™ Plans and capture IR 4.0 opportunities
Deliver consistent network and service experience via
Industry leading mobile app with Revamped product for Home Despite challenging environment in implementation of Customer Experience and End-to-End
highest app star rating of 4.8 for segment. Home Fibre gained traction Enterprise segment, non-mobile and Service Availability and Resiliency programmes
iOS Applestore in subscribers and revenue ICT verticals maintained double-digit
revenue growth Continue enhancing cost and Operational Efficiency by
transforming cost base to deliver YoY improvements in
EBITDA and PATAMI
Accelerated network investments, Implemented Agile Ways of Working in product Industry leading relationship
Leveraging on Group’s Collective Brain to make smart
upgrades and traffic management development and supply chain processes Net Promoter Score (rNPS),
investments in network and IT towards delivering the best
to support new norm traffic growth, resulting in 3x faster time-to-market and 30% denoting excellent customer
customer experience
while maintaining leadership in LTE shorter time-to-procure experience
availability
Accelerate digital adoption, elevate focus on digital channels
as key servicing channels and drive End-to-End Digitisation to
become the nation’s most inspiring digital organisation
Won 4 awards at Frost & Sullivan Best Practices Awards 2020
Maintain our commitment to develop the local vendor
2020 Malaysia IoT 2020 Malaysia Mobile 2020 Excellence in 2020 Excellence in ecosystem, empowering the underserved in digital economy,
Services Company of Data Service Provider Customer Experience Customer Experience and providing equality in education, to fulfil our purpose of
Advancing Our Societies and building an Inclusive Digital
the Year Award of the Year Award (Telecommunications) (Telecommunications) for
Nation
for In-Store Experience Net Promoter Score (NPS)
Notes: 1
MCO = Movement Control Order
2 MVNO = Mobile Virtual Network Operator
Ax iata G ro u p B erhad Integ rated An n ual Rep or t 2020 63
Year of Investment/Shareholding: Technology Deployed: No. of BTS: Network Coverage
2005/66.30% GSM, GPRS, EDGE, 3G, 2G/3G : 90,681 (by population coverage):
Nature of Business: HSPA+, DC-HSPA+, 4G : 54,297 2G Population Coverage : > 92%
Mobile 4G LTE, 4.5G 3G Population Coverage : > 94%
4G Population Coverage : > 96%
Customers: Scan to watch more from Scan QR code to visit
our President Director, XL’s website
57.9 million
XL Axiata
Revenue EBITDA EBITDA Margin PAT Customers Trained employees to adopt IR 4.0 Leveraging on the Collective Brain, incepted
(IDR Trillion) (IDR Trillion) (%) (IDR Trillion) (Million) technologies in human capital a “Crack Team” of key individuals skilled in new
+3.5% +31.0% -47.9% +2.1% management towards: technologies such as VoLTE, Cloud Infrastructure
and 5G, to further develop internal capabilities
25.2 26.0 13.1 50.2% 0.7 56.7 57.9 Improving effectiveness and efficiencies
10.0 39.6%
0.4 Making data-led decisions
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Shared insights on Employee Employee
Blended ARPU Total Traffic Smartphone
XL’s Distributed Core productivity Engagement Score
(IDR Thousand) (PB) Penetration
ce Pe technology plan increased by +3.3% improved +3pt from 92
35 36 4,869 an o
89% m with all OpCos via in 2020 in 2019 to 95 in 2020
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85% Collective Brain to
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3,320
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encourage Group-wide
adoption
2019 2020 2019 2020 2019 2020
Collaborated with Directorate “Gerakan Donasi Kuota”, a crowd funding Contributing to the national Strengthened supply chain
General of Islamic Education programme that allows customers to Universal Service Obligation relationships by encouraging them
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to launch digital learning donate data packages to schools programme to bridge the digital to practice sustainability principles
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programme for Islamic nationwide, delivered 425 routers and divide in remote areas in their own operations
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primary school students > 96,000GB of data to support 121,200 r t
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students access online learning platforms et
y
throughout COVID-19 lockdowns
Launched the Green Empowering women by XL Future Leaders programme Developed comprehensive customer policies via:
BTS programme improving their capacities to - building a generation of
to optimise XL become agents of change and competitive and skilled future Customer Experience and Service Operation Providing “integrated always on-hand
Axiata’s energy entrepreneurs via the Sisternet leaders - 35,000 students Centre customer service”
usage programme - 30,000 members registered in 2020, and Customer Satisfaction Survey Providing Customer Care Centre
160 were selected
IAR • For more details on XL’s performance, please refer to pages 15 to 29 of the “In Conversation With The President & Group SNCR For more details on XL’s sustainability initiatives and outcomes, please refer to the SNCR
Chief Executive Officer” section
• For more details on the value XL has created during the year, please refer to pages 42 to 49 of the “Towards Becoming The GAFS For more details on awards won by XL in 2020, please refer to page 17 of the “Awards” section
Next Generation Digital Champion” section
• For more details on XL’s financial performance, please refer to page 52 of the “Our Financial Resilience” section
Ax iata G ro u p B erhad Integ rated An n ual Rep or t 2020 64
Operating Environment
Outlook for 2021 and Beyond
Exponential increase in data consumption and economic Data usage spiked due to shifts in digital ways of working and Anticipate intense competition in 2021 with increasing
slowdown due to COVID-19 learning demand for data
Industry competition intensified in the Tough competition impacted Regulatory improvement due to the Clarity expected on spectrum roadmap for 5G with greater
second half of 2020 data price Omnibus Law (Job Creation Bill) which visibility on roll out timeline
positively impacted business landscape
Expect to grow above market due to higher data contribution
to revenue as a result of increased data demand
Business Review in 2020
Expanded ex-Java reach by 26% revenue Revamped MyXL and launched AXISnet’s personalised and Focus on profit and cash to improve EBIT, PAT and OFCF
increasing connected homes contribution from MyXL Ultimate apps to increase dynamic proposition increased
Target to become the first convergence player in Indonesia
by 152% ex-Java Monthly Active Users (MAU) by MAU by 166%
102.3% YoY
Continue pursuing growth in ex-Java
Focus on boosting Enterprise growth via strategic
partnerships and integrated ICT solutions
Success in cost savings Added > 6,000 capacity 4G network in 458 cities, Improved network reliability
and avoidance has led to a sites, upgraded > 6,300 with 95% population from 97.3% in the first half Provide excellent customer service and achieve the highest
10ppt increase in EBITDA congested sites, fiberised coverage of 2020 to 99.1% in the NPS scores and app ratings
margins, the highest in XL’s 12,000 sites and optimised second half of 2020
history 12,500 sites Ensure zero touch deployment in most Network and IT
operations
Launched fully digital Transactional Net Promoter Score Strategic partnerships Steadily increased Leverage on the Omnibus Law to share deals and engender
Live.On, with 35,000 (NPS) improved by +10 in the fourth with major ICT players to fibre footprint in growth
subscribers as of quarter of 2020, driven by proactive enhance XL Enterprise anticipation of
December 2020 network upgrades, new digital support, capabilities drove 5G roll out Drive cost savings in Network, IT and Procurement through
and refined digital workflows and tools Enterprise client Group-wide synergies via the Collective Brain
expansion
Advance our Digitalisation and Analytics agenda:
• Digitisation – implement better self-service and automated
Recognition at the Frost & Sullivan Best Recognised for outstanding efforts: tools to reduce customer care costs and digitise
Practices Awards: distribution operations to reduce distribution opex
• Analytics – expand capabilities beyond data and use
Customer Experience Top 10 in Indonesia Gold Rating at the
cases, and embed analytics into ways of working
2020 Indonesia Mobile Service Management at the on the 2019 ASEAN Asia Sustainability
Provider of the Year Telecoms Global Summit Corporate Governance Report Rating 2020
Continue to build a productive and agile organisation to
2020, CX Network Scorecard (score of from the National
adapt to the new normal
97.5 and above) Centre for Sustainability
2020 Indonesia Mobile Data Provider
Reporting
of the Year
Ax iata G ro u p B erhad Integ rated An n ual Rep or t 2020 65
Year of Investment/Shareholding: Technology Deployed: No. of BTS: Network Coverage
1995/83.01% Mobile: 2G: 5,727 (by population coverage):
GSM/EDGE, 3G/HSPA+, LTE/LTE-A, 5G Pilot 3G: 3,317 2G: 98%
Nature of Business: 4G LTE FDD: 3,863 3G: 87%
Communication Services, Fixed Network: 4G LTE TDD: 2,437 Mobile 4G (FDD): 93%
Telecommunications Infrastructure Services, FTTx, DOCSIS, LTE, WIFI, CDMA, Wibas Fixed 4G (TDD): 70%
Scan QR code to visit
Media and Digital Services including Financial
Dialog’s website
Services and Dialog Enterprise DTV:
IPTV, DTH (Satellite TV), ViU mini (Android Stick),
Customers: ViU Hub 2.0 (Android TV)
16.3 million
Revenue EBITDA EBITDA Margin Converted all Learning and Development End-to-end automation of HR
(SLR Billion) (SLR Billion) (%) programmes to Digital Learning – 52 webinars with processes, from hiring to onboarding,
+2.8% +8.9% > 3,500 participants; Online Agile trainings with 350 for a completely digital and paperless
40.0% 42.3%
participants and 236 staff certified; Axiata Analytics experience
116.8 120.1 46.7 50.9
Academy with 90 staff; and corporate induction
covering > 750 hours
2019 2020 2019 2020 2019 2020
PAT Customers Blended ARPU
(SLR Billion) (Million) (SLR) Provided a range of COVID-19 support for staff – swab testing, specialised
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+11.7% +9.4% 382 373 an o care centres, special allowances, dry rations and knowledge sharing sessions/
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safety updates
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12.0 14.9
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10.8
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2019 2020 2019 2020 2019 2020
Saviya - a mobile-based Nenasa 1377 Education Helpline Collaborated with the Department of Fisheries and Aquatic Resources
advisory service for dairy and Distance Learning initiative and Department of Meteorology to launch Sayuru, a free SMS and voice
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farmers to improve their assisted students during COVID-19 message weather warning service for fishermen and coastal communities
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farming outcomes school closures - reached > 50,000 users or ~ 33% of the island’s day-boat fishermen
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Enabled MOH to create Progressed with ISO 14001:2015 Environmental Partnered with Ministry of Education to Together with Ministry of Health (MOH),
video based telemedicine Management System implementation, and provide free educational content without enabled high speed Robotic PCR testing
units at 20 hospitals successfully concluded the final audit in April data charges via Guru.lk, e-thaksalawa, at Bandaranaike International Airport, and
nationwide 2021. Dialog is the first mobile operator in Sri Lanka to Dialog ViU and Nenasa apps contributed > 4,000 robot arm test kits
have been formally recommended for ISO 14001:2015
certification for their entire scope of operations
IAR • For more details on Dialog’s performance, please refer to pages 15 to 29 of the “In Conversation With The President & Group SNCR For more details on Dialog’s sustainability initiatives and outcomes, please refer to the SNCR
Chief Executive Officer” section
• For more details on the value Dialog has created during the year, please refer to pages 42 to 49 of the “Towards Becoming GAFS For more details on awards won by Dialog in 2020, please refer to page 18 of the “Awards” section
The Next Generation Digital Champion” section
• For more details on Dialog’s financial performance, please refer to page 52 of the “Our Financial Resilience” sectionAx iata G ro u p B erhad Integ rated An n ual Rep or t 2020 66
Operating Environment
Outlook for 2021 and Beyond
Pandemic led to downturn in the travel, tourism and apparel Intense competition with aggressive voice and data pricing Capture market share by tapping into new normal
industries opportunities in the Mobile and Fixed markets
Data usage rose on the back of new norms of PAYG1 rate revised from SLR1 Delays in Gamata Sannivedanaya project
Expand Fixed indoor/outdoor coverage to enhance customer
WFH, online learning and unlimited pricing to SLR0.30 per MB by TRCSL2 to expand rural coverage
service
Business Review in 2020
Focus on product innovations in the Mobile, Fixed and DTV
TRCSL awarded Launched the first Dialog created Sri Lanka’s Dialog introduced: space
Dialog 40MHz of 5G pilot network revolutionary data package • Dialog Power Plan with enhanced data
the 2600 spectrum allowing customers enabling Unlimited and and roaming deals Leverage and expand customer base in Fixed and TV
and 200MHz trial to experience live completely worry free usage • “Couple Blaster”, which facilitates segments whilst transforming cost structure
spectrum for 5G 5G in Colombo, of YouTube, Social Media and unlimited calls and SMS for Dialog mobile
pilot Kandy and Galle Instant Messaging customers, between any two customers
Introduce new digital skills such as AI/ML, Big Data Analytics,
hyper-automation, Cloud computing and cyber security to
drive business agility and robust growth
Launched Android Expanded fibre Increased HBB3 COVID-19 impact resulted in increased HBB
TV experience via footprint to market share by 8.5% which led to revenue improving by SLR810.7
ViU Hub Mini and ViU > 4,740 km YoY to 45.4% million, partially negated by SLR181.3 million Focus on new growth areas of Fintech, Enterprise solutions,
Hub 2.0 by end 2020 decline in Enterprise revenue due to economic Healthtech and Edutech verticals
downturn
Roll out of 5G covering Colombo and major cities/hotspots
Foregone DTV revenue from providing free viewing Acquired 100% stake in H One (Private) Limited, a Microsoft award-
Focus on analytics-at-the-edge, predictive analytics, making
during lockdown and reduced business advertising winning tier-one partner, in January 2021
100% data-based decisions, understanding employee needs and
offering personalised solutions
Awards garnered: Leveraging on Digitisation and Analytics for cost savings and delivering superior Implement employee leadership development blueprint to
customer experience: identify management opportunities and specialised skills
Brand Finance’s Most Valuable
development
Brand for 2nd consecutive year 100% automation of 80% automation of 60% automation of all
distribution channel activations manual processes payments
SLIM-Nielsen Peoples Awards 2020 Integrating H One into the business to scale up Microsoft
• Telecommunication Brand of the Platforms and Enterprise solutions
Year for 9th consecutive year MyDialog self-care Digitisation of the retail Achieved NIST Cyber
• Service Brand of the Year customer service app - space via the Dialog Security Framework
> 5 million downloads and Retail Hub platform to maturity level of 3.53
• Youth Choice – Service Brand of the
one of the top mobile apps enable > 35,000 retail
Year
in Sri Lanka partners
Notes: 1
PAYG = Pay As You Go 3
HBB = Home Broadband
2 TRCSL = Telecommunications Regulatory Commission of Sri Lanka 4
DTV = Digital TVAx iata G ro u p B erhad Integ rated An n ual Rep or t 2020 67
Year of Investment/Shareholding: Technology Deployed: No. of BTS: Network Coverage
1996/61.82% Mobile: 2G BTS-13,204 (by population):
Nature of Business: GSM/EDGE, 3G/HSPA+, 3G BTS-11,338 2G: 99.6%
Mobile Telecom Operator LTE/LTE-A 4G BTS-13,173 3G: 92.7%
4G: 97.4%
Customers: Scan QR code to visit
Robi’s website
50.9 million
Service Revenue Device Revenue Total Revenue EBITDA EBITDA Margin Prioritised employee In line with building a Modern, Agile and Digital (M.A.D.)
(BDT Billion) (BDT Billion) (BDT Billion) (BDT Billion) (%) health and wellbeing during culture, 101 employees completed a Data Science training
+1.4% -25.0% +1.1% +11.8% 42.6% the COVID-19 pandemic and programme designed by Huawei and SAAS covering Python,
38.5% adopted best practices to Machine Learning and Data Analytics, followed by a practical
73.9 75.0 0.9 74.8 75.6 32.2
0.7 28.8 facilitate employees to WFH project to ensure application of learnings
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 Developed app to track Each Robi employee A total of 1,084
PAT Customers Blended ARPU/ Blended Use of Data Volume/ Employee Health Info attended an average employees,
(BDT Billion) (Million) month Outoging MOU/ sub/month and used the Employee of 29 hours of online representing 79%
(BDT) sub/month (GB/subscriber/ Health Dashboard to strictly training to build digital of our talent base,
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819% +3.9% 124
(minutes) month) an o monitor those who display capabilities and skills enhanced their
121 m
2.8 COVID-19 symptoms in 2020, which is 53% digital skills
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1.6 49.0 50.9 117
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1.9 higher than in 2019 via courses on
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0.2
Coursera
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Bangladesh’s largest online school, 333, the national helpline Introduced digital Set up innovation labs in collaboration with
Robi 10-Minute School, provided data set-up by Robi in collaboration distribution network to the Institute of Business Administration of
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packages at reduced rates facilitating with a2i of the Government’s revamp partnership with Dhaka University and Bangladesh University of
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students’ continuing education ICT Division and call centre retailers and distributors Professionals to explore analytics use cases
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throughout COVID-19 school closures, to Genx, emerged as the national r t
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position Robi as the national champion crisis centre during the pandemic et
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Introduced special data packages Socialbakers recognised Robi as the Enhanced service Collaborated with Avlino Prioritised data privacy and
for university students enabling them World’s No. 1 Socially Devoted Brand delivery by partnering Cognitive Solution to cyber security to provide
to continue studying online for the first three quarters of 2020, with with popular digital develop solutions for secure customer experiences
an average response time of 5 minutes start-up eValy problematic network cells
and response rate of 99.8%
IAR • For more details on Robi’s performance, please refer to pages 15 to 29 of the “In Conversation With The President & Group SNCR For more details on Robi’s sustainability initiatives and outcomes, please refer to the SNCR
Chief Executive Officer” section
• For more details on the value Robi has created during the year, please refer to pages 42 to 49 of the “Towards Becoming GAFS For more details on awards won by Robi in 2020, please refer to page 18 of the “Awards” section
The Next Generation Digital Champion” section
• For more details on Robi’s financial performance, please refer to page 52 of the “Our Financial Resilience” sectionAx iata G ro u p B erhad Integ rated An n ual Rep or t 2020 68
Operating Environment
Outlook for 2021 and Beyond
Intensely competitive market with 101% SIM penetration Competitors launched new digital entertainment products Further growth in data usage expected, along with erosion of
data prices
Accelerated digital adoption across Increased Internet usage and Telecom regulator reduced MNP1 lock-in Explore new business opportunities in the Enterprise segment
entertainment, education and gaming reliance on data connectivity period e.g. WFH solutions
Monetisation via the digitalisation of products, campaigns
Business Review in 2020 and distribution
Robi debuted on Bangladesh’s Leveraged on Operational Sustained focus on process Service revenue market
Evolve business model in line with changing customer
twin capital markets Excellence to deliver 4.1pp efficiency, simplification share improved +0.7pp,
demands
- the Dhaka Stock Exchange and EBIDTA margin improvement and digitalisation to with service revenue
the Chittagong Stock Exchange reaching 42.6% optimise cost structure growth of 1.4% Pare down core connectivity service cost structure to ensure
- on 24 December 2020, market sustainability
the largest ever IPO in the
country’s history Maintain focus on digitalisation, analytics and innovation
Drive Collective Brain initiatives towards streamlined data
Data usage volume Data user subscribers Surpassed 50 million Enterprise revenue growth of 1.5%; production cost and procurement efficiency
consumption spiked by increased to 69.2% of subscribers in 2020 digital wallet RobiCash revenue for Network and IT
approximately 67%, and data total subscribers in 2020, growth of 411.0%; and appstore and
revenue surged 26% from 63.8% of total bdapps revenue growth of 29.1% Pursue predictive network maintenance measures to ensure
subscribers in 2019 better customer experience
Ramp up drive towards becoming a digital organisation with
a digital DNA to create scalable impact
Continuously worked with Partnered with Collaborated with Access to Information Piloted end-to-end Continue journey to become a data-driven organisation via
distributor and equipment Microsoft for Cloud programme under Government’s ICT digital distribution AI-at-scale and AI-at-edge
suppliers to improve services and Enterprise division and the Ministry of Health to with mobile financial
services develop an AI-powered platform to detect services provider Pursue collaboration opportunities in the digital domain to
and manage the spread of COVID-19 Nagad fulfil customer needs
Sustain efforts to engage with stakeholders and reshape the
Became an Axiata “AI Big Data Analytics Won the Telecom Service Recognised as 2020 Bangladesh regulatory landscape
Maturity champion” Maturity at 91% Innovation award at Mobile Service Provider of the Year
Further entrench of M.A.D. culture within the organisation
with a score of 39% in AI CommunicAsia 2020 Awards for at the Frost & Sullivan Best Practices
Maturity Index surpassing response to COVID-19 Awards 2020
Focus on project-based resource planning vs traditional
the 28% target
function-based planning to facilitate multiple-skill
development opportunities for employees
Note: 1
MNP = mobile number portabilityAx iata G ro u p B erhad Integ rated An n ual Rep or t 2020 69
Year of Investment/Shareholding: Technology Deployed: No. of BTS: Network Coverage
2013/72.48% Mobile: 2G – 2,828 (by population and technology):
Nature of Business: GSM/EDGE, 3G/HSPA+, 3G – 2,745 2G – 98.5%
Mobile Telecom Operator LTE/LTE-A 4G – 2,863 3G – 81.4%
4G – 91.5%
Customers: Scan QR code to visit
Smart’s website
7.5 million
Revenue EBITDA EBITDA Margin PAT Customers Enhanced leadership Developed capabilities through Enhanced
(USD Million) (USD Million) (%) (USD Million) (Million) skills via Smart Leaders Long Term Evolution (LTE) and Centre governance and
+3.6% +6.6% -5.9% -0.6% Programme for first line for International Private Enterprise ethics awareness
54.8%
53.2% managers and addressed (CIPE) training, VMWare training, through e-learning
326.7 178.9 74.4 7.5 7.5 competency gaps via the Practical OpenStack for Network modules on Code
315.3 167.8 70.0 Information and Technical Function Virtualisation training, of Conduct, cyber
Division Competency English capability development and security, anti-bribery
Development Programme digital learning via LinkedIn and anti-corruption
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Blended ARPU Blended MOU Data Usage Enhanced employee Elevated employer branding visibility for
(USD) (Per Sub Per Month) (Per Data Sub Per engagement and work both offline and online channels by launching
(Minutes of use/ Month in GB) culture by continuing the Digital and Technical Internship Programme;
ce Pe the Good to Great conducting the Life @Smart working environment
sub/month) 18
an o
2.91 m journey and launching a campaign via new social media channels;
2.68
r
137
pl
refreshed Smart identity and Cycle 1 of the Smart Brand Ambassador
rfo
119 14
e
including mission, vision to inspire and engage talents through
Pe
and core values personal stories of Smart employees
2019 2020 2019 2020 2019 2020
Launched the USD1 million Smart Axiata COVID-19 Relief Fund Active industry engagement with Ministry Launched the brand
which funded 12 projects within four areas - ICT for education; personal of Posts and Telecommunications (MPTC) campaign, Rise
Pla
hygiene; social distancing; and crisis management and the Telecommunication Regulator Together, to promote
hip
n
of Cambodia (TRC) on the Spectrum solidarity amongst
et
rs
Projects included providing COVID-19 testing kits; digitising Management Sub-decree Cambodians
So
ne
&
videos for online education; disseminating COVID-19 r t
ci Pa
et
prevention tips for the underprivileged; and offering free y
consultations for micro enterprises and start-ups to build
their resilience and access financing Expanded product portfolio by Providing the most affordable Industry
partnering with realme, TikTok, and innovative mobile leader in
Tencent Games, Moonton, Garena bundles, and digital lifestyle cyber security
Launched Online Major and Career Fair with a digital Piloted Smart IoT Challenge
Free Fire and DirexPlay - hosted three and entertainment leader of protections and
library featuring 100 videos and podcasts covering a wide Hackathon to boost digital e-sports tournaments endorsed by international and local content, safeguards
range of STEM subjects and professions, as well as career innovation among youth E-Sports Federation of Cambodia, digital services and promoting
counselling services, in collaboration with The Fulbright with one of the tournaments local artists through music
and Undergraduate State Alumni Association of Cambodia featuring the country’s largest prize streaming apps and virtual
(FUSAAC) pool and event stage concerts
Note: Smart’s Revenue are pre IFRS 15 for IAR • For more details on Smart’s performance, please refer to pages 15 to 29 of the “In Conversation SNCR For more details on Smart’s sustainability initiatives and outcomes, please refer to the SNCR
the years prior to and up to 2019. With The President & Group Chief Executive Officer” section
2020 Revenue is post IFRS 15 • For more details on the value Smart has created during the year, please refer to pages 42 to 49 GAFS For more details on awards won by Smart in 2020, please refer to page 18 of the “Awards” section
of the “Towards Becoming The Next Generation Digital Champion” section
• For more details on Smart’s financial performance, please refer to page 52 of the “Our Financial
Resilience” sectionAx iata G ro u p B erhad Integ rated An n ual Rep or t 2020 70
Operating Environment
Outlook for 2021 and Beyond
Industry competition moderated against strong economic headwinds Data usage increased National Bank of Cambodia and Asia Development Bank
caused by the COVID-19 pandemic with an average of 18.2GB/Sub/Month projects 4% economic growth for Cambodia in 2021
Tourism industry to remain heavily suppressed
Data pricing remained stable MPTC and TRC operated in alignment Tourism industry downturn impacted
at approximately USD0.21 cents with each other roaming business Market is becoming increasingly saturated with high mobile
penetration, and being one of the lowest price per GB
Business Review in 2020 markets
Data usage increased Maintained growth in Smart @Home #2 Smart remains #1 Following the partial withdrawal of the European Union’s
Everything but Arms (EBA) trade scheme, the Royal
significantly with GB/Data Home/Convergence and in the Home Broadband in terms of rNPS
Government of Cambodia has been exploring new
subscriber consumption Business segments segment
partnerships and policies to offset the expected economic
growing > 30% YoY shock
The World Bank reported that Cambodia has one of the
highest uses of mobile data per capita, with the population
Utilised data analytics SmartLuy, Smart’s Preparation for Partnered with various incubation devoting 96% of their ICT spending on data services
to generate in-depth digital wallet, roll out on track programmes to build start-up ecosystem
With more 5G devices becoming available in Cambodia,
customer insights, develop received approval from subject to spectrum including the United Nations Development expectation for 5G spectrum and license to be granted in
actionable plans and the National Bank of availability Programme’s Bluetribe, SmartSpark, 2021
enable better decision Cambodia and Technovation Girls, Business Model
making has merged Competition and Mekong Given Cambodia’s market dynamics, enhanced mobile
with Pi Pay Business Challenge broadband (eMBB) and fixed wireless access (FWA) offerings
expected to be the main focus at the start of 5G connectivity
Leverage digital technologies and the digital economy to
provide products and services that elevate Cambodia’s
Accolades in 2020:
Digital Economy and e-government agenda
Global Banking and Finance Review
Expand 4G network coverage and on track to complete 3G
network shutdown to improve user experience
CEO of the Year Decade of Excellence
Best CSR Company Best Telecommunications
Telecommunications Telecommunications Explore new growth opportunities in Enterprise and Home
Cambodia 2020 Company Cambodia 2020
Cambodia 2020 Cambodia 2020 segments focusing on home office and distance learning
Continue to optimise current site portfolio to provide
Frost & Sullivan Asia Pacific Best Practices Awards Asia Responsible Enterprise Award 2020 maximum 4G coverage to customers
– Social Empowerment Category
Maintain efforts to promote ICT education amongst youth
Cambodia Mobile Cambodia Mobile Data
and develop Cambodia’s digital literacy and capabilities for
Service Provider of the Service Provider of the
coding, literacy and entrepreneurship
Year 2020 Year 2020Ax iata G ro u p B erhad Integ rated An n ual Rep or t 2020 71
Year of Investment/Shareholding: Technology Deployed: No. of BTS: Network Coverage
2016/80.00% Mobile: 2G: 3,674 (by population and technology):
Nature of Business: GSM, EDGE, 3G/HSPA+ 3G: 3,294 2G Population Coverage: 92.47%
Mobile Telecom Operator 4G: 3,428 3G Population Coverage: 60.91%
4G Population Coverage: 58.14%
Customers: Scan QR code to visit
Ncell’s website
15.7 million
Revenue EBITDA EBITDA Margin PAT Customers Towers Watson survey indicates Ncell’s Adapted to COVID-19 lockdowns by
(NPR Billion) (NPR Billion) (%) (NPR Billion) (Million) improvement in eight human resource conducting training and webinars on
-22.7% -24.8% -77.9% -7.1% areas over 2020 digital platforms
58.7% 56.9%
54.2 31.8 14.0 16.9
15.7
23.9
41.9
3.1
Established WFH culture via policies Relocated Ncell headquarters to
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
and guidelines, and continuously shared the new state-of-the-art building,
Blended ARPU Blended MOU Data Usage
information on COVID-19 related updates Ncell Icon
(NPR Per Month) (Per Sub Per Month) (Per Data Sub Per
(Minutes of Use/ Month) (MB) ce Pe
269 Sub/Month) 2,043
an o
m
r
pl
178
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214
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156 963
Pe
2019 2020 2019 2020 2019 2020
Contribution of NPR100 million Supported the government for Collaborated with Tribhuvan University, Higher Institutions
to the Coronavirus Infection Migration Tracking and Contact and Secondary Schools’ Association Nepal (HISSAN), Private &
Pla
Prevention, Control and Treatment Tracing, identifying COVID-19 infected Boarding Schools’ Organization Nepal (PABSON) and National
hip
n
Fund and mass media COVID-19 people through the USSD and Interactive Private and Boarding Schools Association of Nepal (N-PABSAN)
et
rs
awareness campaign Voice Response (IVR) survey So
ne
&
r t for student plan
ci Pa
et
y
Greening of Ring Setting up of modern digital IT Ncell Scholarships Commended for Mass Received Letter of UNICEF lauded Ncell’s
Road’s Green Belt in the Labs in 60 community schools and Excellence COVID-19 Awareness Appreciation from the support in addressing
Koteshwor-Kalanki stretch across the country Awards Initiatives with a Letter of Department of Health COVID-19 in Nepal, and
Appreciation from the National Services, Family Welfare our spirit of collaboration
Health Education, Information Division, Ministry of Health in a Letter of Appreciation
Contributed to the Telemedicine and Health Ncell Call to Doctor service and Communication Centre and Population for our
government’s National Informatics Programme and Ncell Hotline service for
(NHEICC), Ministry of Health contribution to the
Measles-Rubella Campaign in collaboration with free COVID-19 consultation
and Population National Measles-Rubella
Dhulikhel Hospital with doctors
Campaign 2020
Note: All 2019 numbers are post IFRS 9, 15 IAR • For more details on Ncell’s performance, please refer to pages 15 to 29 of the “In Conversation SNCR For more details on Ncell’s sustainability initiatives and outcomes, please refer to the SNCR
and 16 With The President & Group Chief Executive Officer” section
• For more details on the value Ncell has created during the year, please refer to pages 42 to 49 GAFS For more details on awards won by Ncell in 2020, please refer to page 18 of the “Awards” section
of the “Towards Becoming The Next Generation Digital Champion” section
• For more details on Ncell’s financial performance, please refer to page 52 of the “Our Financial
Resilience” sectionAx iata G ro u p B erhad Integ rated An n ual Rep or t 2020 72
Operating Environment
Outlook for 2021 and Beyond
Negative industry revenue growth despite > 100% data traffic ISP1 subscribers increased 35% YoY Uncertain outlook for 2021 due to global economic downturn
growth due to COVID-19 impacts and continuation of the pandemic
Strengthen market position with new spectrum and tech
Telco revenue and subscribers Data price/GB dropped due NTA2 proposed Telco Bill in October 2020 without
neutrality
declined by 22.7% and 7.1% respectively to aggressive pricing strategy industry consultation featuring provisions inconsistent
adopted by industry players with global best practices Improve Network and Digital capabilities, as well as Network
NPS
Business Review in 2020
Focus on opex and capex savings and optimisation
Performance adversely impacted by Opex savings of NPR0.8 billion Positioned for new norm opportunities
Focused digitalisation plan for 2021 to improve digital
prolonged lockdown, spectrum challenges and capex savings of via end-to-end customer experience and
maturity within the following areas:
and lower active subscriber base NPR2.5 billion digitisation
• SME App, Regional App, Eagle Eye Dashboard
• Enhancing digital platforms
• Single retailer app adoption
• Enhancing Procurement
• Automation and enhancement of financial processes
Enhanced retail Revamped Ncell app and Increased Enterprise Launched Fixed Wireless Access
• Targeting digital recharge improvement
digital experience and launched an Omni-channel revenue growth by 17.1% (FWA) services in 2020. During the
operations by launching Chatbot to enhance customer YoY due to focus on pandemic, subscribers increased Simplify product portfolio and improve product profitability
Single Retail App digital experience mobility and non-mobility to > 4,500, contributing
domain NPR6.4 million to revenue Focus on the four key pillars of Engagement, HR Processes,
Employee Productivity and Learning towards becoming a
M.A.D. organisation
Leverage on the Collective Brain with plans to conduct a
Supported the Government and communities through the pandemic: Collaboration Survey
In collaboration with the Radio Outreach Launched “Mobile Class Conducted Rapid Grow the Home segment via innovative FWA bundled
Ministry of Health and Programme in collaboration Data Pack” in collaboration Assessment Survey services and expand sales channels
Population and UNICEF, with Community Information with Tribhuvan University for in collaboration with the
Drive Enterprise growth through fibre connectivity and
conducted a mass COVID-19 Network (CIN), Association students to continue with Ministry of Women, Children
managed services
awareness campaign of Community Radio online learning during the and Senior Citizens and
to reduce the risk of Broadcasters Nepal lockdown UN Women Nepal to assess Expand digital services with entertainment, content,
transmission by focusing on (ACORAB) and Rato Bangla pandemic impacts on digitalisation and VAS portfolio
social distancing, wearing Foundation, providing rural their lives
masks and frequent hand primary students with Remain committed to CSR projects focusing on the
sanitisation learning programmes environmental and climate change agenda, education and health
during school closures Continue engaging with the Government and regulators for a
more sustainable regulatory landscape
Notes: 1
ISP = Internet Service Provider
2 NTA = Nepal Telecommunications AuthorityAx iata G ro u p B erhad Integ rated An n ual Rep or t 2020 73
Year of Investment/Shareholding: Nature of Business:
2012/63.00% Telecommunications Infrastructure and Services
Scan to watch more from
our Chief Executive Officer, Scan QR code to visit
edotco Group edotco’s website
Revenue Revenue Tenancies Tenancies Recognised for “Engaging Enhanced employee experience via futuristic digital
(RM Billion) Growth (%) (No. of Tenancies) Growth (%) Leadership” at the “Kincentric’s and Artificial Intelligence tools - HR Chatbot, Onboarding
35,170 +7.5 Best Employers Award” 2020 Gamification, Mobile Learning Hub, fully automated 360
1.9 +4.0%
1.8 +17.9% 32,728 +10.7% feedback tool, Robotic Process Automation
Rolled out “Technical Partnered with Melbourne Business School
Career Framework” to launch flagship “edotco Talent
ce Pe
an o programme for technical Acceleration Programme” (eTAP)
m
experts across the Group focusing on key Middle Management talents
r
pl
rfo
e
and Rising Stars
Pe
2019 2020 2019 2020 2019 2020 2019 2020
Achieved carbon footprint Implemented green office Partnered with SIRIM to develop Tower Preventive Maintenance
reduction of 58% per site, verified initiatives at 70% of edotco’s the SIRIM Product Category completed for 42% of edotco
Pla
by SIRIM QAS regional offices Rules Standards providing portfolio with 450 sites
hip
n
guidelines for the eco-labelling of conducted via drones
et
rs
So
ne
&
r t telecommunications sites
Since 2018, planted ~ 38,000 trees Employee Voluntary Engagement ci Pa
et
y
and recycled/reused ~ 60,000kg Programme (EVE):
waste regionally
900+ Carbon sequestered from 23,650 trees
First 5G private ISO 45001:2018 Occupational Obtained the Malaysia
planted and 25,405kg recyclables collected
network launched Health and Safety Management Technology Excellence
Obtained Patent Certificate at Langkawi System certification awarded to Award 2020 for “Telco
Two socially driven programmes International Airport edotco Malaysia, OnSite, edotco Analytics” for the Network
for bamboo tower invention
supporting UN SDG 2 zero hunger goals Bangladesh and edotco Myanmar and Planning Analytics
from the Department of
Patents Bangladesh (NaPA) unit
Tower Portfolio
Malaysia Sri Lanka Bangladesh Cambodia Myanmar Pakistan Laos
4,682 Towers Owned 236 Towers Owned 10,790 Towers Owned 2,836 Towers Owned 2,122 Towers Owned 1,649 Towers Owned 14 Towers Owned
8,144 Towers Managed 239 Tenancies 1,088 Towers Managed 1,000 Towers Managed 1,026 Towers Managed 2,139 Tenancies 14 Tenancies
9,217 Tenancies 1.01x Tenancy Ratio 15,381 Tenancies 3,894 Tenancies 4,286 Tenancies 1.30x Tenancy Ratio 1.00x Tenancy Ratio
1.97x Tenancy Ratio 1.43x Tenancy Ratio 1.37x Tenancy Ratio 2.02x Tenancy Ratio
IAR • For more details on edotco’s performance, please refer to pages 15 to 29 of the “In Conversation With The President & SNCR For more details on edotco’s sustainability initiatives and outcomes, please refer to the SNCR
Group Chief Executive Officer” section
• For more details on the value edotco has created during the year, please refer to pages 42 to 49 of the “Towards Becoming GAFS For more details on awards won by edotco in 2020, please refer to page 18 of the “Awards” section
The Next Generation Digital Champion” section
• For more details on edotco’s financial performance, please refer to page 52 of the “Our Financial Resilience” sectionAx iata G ro u p B erhad Integ rated An n ual Rep or t 2020 74
Operating Environment
Outlook for 2021 and Beyond
TowerCo/Telco industry one of the first and quickest sectors Led by global market dynamics, infrastructure industry in ASEAN Continue with NaPA deployment throughout footprint
to recover from COVID-19 impacts and South Asia predicted to attract significant low-cost countries
capital from global investors/funds
Mobile network operators carving out TowerCo groups Enhanced interest leading to increased competition Focus on inorganic growth by cementing our market
throughout edotco’s operating markets and asset price leadership through sale and leaseback initiatives, bite-sized
M&A deals and opportunistic entries into new markets
Business Review in 2020
Drive execution of Energy Billing Automation project across
Rigorous cost control led to Strong cash collections Grew portfolio with gross adds of +2,413 B2S1
all National Tower Companies (NTCs)
capex and opex savings of from anchor tenants and +1,061 colocations
RM56.0 million up by 10% YoY Grew IBS2 colocations and tenancy
by 10% and 5% respectively Launch the edotco Green Scorecard across all regional NTCs
Improved tower Strengthened commitment to sustainability by Complete solarisation of Develop Fixed Energy Model, targeted go-to market by
overloading resolution operating a total of 1,694 sites using renewable 3,000 sites by December
December 2021
by 40% YoY energy and 54 structures built from alternative 2021 across the footprint
materials
Formed Centre of Excellence comprising Business Analytics
and Data team for data management and predictive analysis
Partnered with PNB3 in Malaysia to Deployed first solar First TowerCo to provide ultra lite solutions
equip the Merdeka 118 Tower with powered lamp pole built using bamboo, catering to network
next generation telecommunications in Sri Lanka congestion in Myanmar’s cities
technology solutions Launch the edotco Apprenticeship Experience with 10
apprentices in partnership with the Ministry of Youth and Sports
Secured 300 Just Nice ISOC edotco Towers Inc4 PTA7 awarded Telecom Sustainability targets for 2021:
Towers to increase received 5-year ITC5 Infrastructure License to
network coverage in rural Registration authorisation edotco Pakistan • 63% carbon reduction from green solutions, structures and
Cambodia from the Philippines DICT6 tree planting programme
• Plant 215,000 trees
Frost & Sullivan’s 2020 Asia Aggressively drive growth Pursue tower and other • Impact 11,000 families via Tower 2 Community
Pacific Telecoms Tower through innovative solutions, ancillary services such as • Impact 44,000 lives through Humanitarian Response
Company of the Year for the 4th offerings and dynamic energy solutions and cater to Programme
consecutive year commercial models capacity demand as part of our • Scale up to four socially driven EVE programmes
future-proofed solutions
supporting UN SDG 2
Build analytics driven quality B2S and Established NaPA unit to provide insights into potential
push for colocation enhancements locations for new tower sites and reduce build time in
Malaysia, Bangladesh and Pakistan
Notes: 1
B2S = Build-to-suit 3
PNB = Permodalan National Berhad 5
ITC = Independent Tower Company 7
PTA = Pakistan Telecommunication Authority
2 IBS = In-Building Solutions 4
ISOC edotco Towers Inc is a partnership formed between ISOC Holdings and edotco in 2019 6
DICT = Department of Information and Communications TechnologyAx iata G ro u p B erhad Integ rated An n ual Rep or t 2020 75
Year of Investment/Shareholding: What We Do
2014/96.47% Axiata Digital (AD), the digital services arm of Axiata Group Berhad Digital is supporting the digital lifestyle with digital financial services such
(Axiata), was established to support the increasingly digital lifestyle of as e-wallets, micro-financing and micro-insurance, digital advertising
Axiata consumers. AD’s role has evolved from an investor of 30 brands to a that use data driven solutions to enhance business success, and platform
Nature of Business:
business operator with portfolios concentrated on three strategic businesses services on API’s (Applications Programming Interface) that redefine the
Investment Holding and Operations of
namely Digital Financial Services (Boost, Aspirasi), Digital Advertising way businesses communicate with consumers.
Digital Services
(ADA) and Digital Platform (Apigate) to support global customers. Axiata Scan QR code to
visit Axiata Digital’s
website
Performance People Partnership Planet & Society
• Overall GTV grew ~ 55% from 2019 to 2020 despite • WFH setup and virtual events • Aspirasi: • Boost:
lockdown challenges • Invested in talent to grow competencies, capabilities and - Partnership with CIMB - Micro-SME (MSME) e-Commerce Campaign -
• Aspirasi: capacity - Financing for Boost merchants > 15,000 merchants onboarded
- 5.4x growth in total financing disbursed • Learning and development opportunities via LinkedIn • Great Eastern’s (GE) USD70.0 million strategic - One of the three selected partners for e-Tunai and
- Average ticket size increased 3.4x Learning and online seminars investment in Boost Holdings, the largest fintech e-PENJANA
• Boost: investment in Malaysia • Aspirasi:
- 100% growth in overall GTV • Apigate entered into bilateral partnership to tap into - Aspirasi Assist - > 25,000 Boost merchants; 45,000
• ADA: the Indian e-wallet market via Paytm/One97, thus merchants financed in total
- ~ 40% growth in revenue expanding its business footprint - Conducted joint CSR programme, RHB Best, to
• Apigate: empower Muslim micro-SME owners from the B40
- 52% growth in GTV and increase in net revenue of segment
31%
Operating Environment Business Review in 2020 Outlook for 2021 and Beyond
Recorded revenue ADA recorded positive PAT for the whole year, despite Within loan disbursement, strong growth
More competitive e-wallet • Expectations for cashless systems and stronger emphasis
growth for Boost, Aspirasi, some projects being put on hold due to the COVID-19 in Indonesia, recording 15% Month over
landscape on online presence to persist
ADA and Apigate pandemic Month growth
• Boost to increase focus on merchant acquisition and
merchant solutions, as well as expand the interoperable
Transforming the digital business by forming Recorded a key milestone with GE’s Sharpened our focus on building DuitNow QR
Need for supply chain
Boost Holdings Sdn Bhd (Boost Holdings), strategic investment of USD70.0 and enhancing our digital financing
financing increased during the
which comprises Boost, Aspirasi and Apigate million (RM294.0 million) for a 21.88% services brand using digital • Aspirasi to focus on growing WCF
year, while demand for working
(a global digital monetisation and customer stake in Boost Holdings, the largest fintech technologies and our telco assets to
capital financing (WCF) tightened • Expect ADA projects to resume in 2021
growth solutions provider) investment in Malaysia serve the underserved
due to the pandemic
• To refine Axiata’s proposition for a Digital Bank and submit
licence application to the regulator
On track with Operational ADA well positioned to capitalise on the growing need Aspirasi leveraging on digitisation and
Excellence for business digitalisation, consumer insights and attribution analytics by building Tableau dashboards • Plan resource allocation accordingly to establish the Digital
Shift towards cashless
Bank
ecosystem, with strong
emphasis on online presence • To engender growth by leveraging on products, services
and channels available across Boost Holdings
Expanded into new areas of growth via:
• To further digitise operational tasks
Greater demand for business • Aspirasi to leverage on Machine Learning models for credit
New micro-insurance New micro-financing Expansion of micro-insurance Enabling interoperable
digitalisation benefited Boost scoring
products by Aspirasi products with Aspirasi Assist to Aspirasi Indonesia QR payments
and ADA
• Explore new growth areas – Boost merchant solutions, “Buy
Now Pay Later” and micro-insurance business
Interest building up around Continuously engaged with key stakeholders Launched the Micro-SME Aspirasi signed Memorandum of • Expand analytics training for our talents, to further build
Digital Banking license such as the Ministry of Finance and Malaysia Digital e-Commerce Campaign Agreement with SME Corporation to capabilities
Economy Corporation provide micro-financing for Malaysian
SMEs
Note: The rate of issuance of shares in RM IAR • For more details on Axiata Digital’s performance, please refer to pages 15 to 29 of the SNCR For more details on Axiata Digital’s sustainability initiatives and outcomes, please refer to the SNCR
was USD1 = RM4.2 “In Conversation With The President & Group Chief Executive Officer” section
• For more details on the value Axiata Digital has created during the year, please refer to pages GAFS For more details on awards won by Axiata Digital in 2020, please refer to pages 18 to 19 of the
42 to 49 of the “Towards Becoming The Next Generation Digital Champion” section “Awards” sectionYou can also read
