Advancing Asia

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Advancing Asia Advancing Asia INTEGRATED ANNUAL REPORT 2020 Digital Telcos Malaysia Indonesia Sri Lanka Bangladesh Cambodia Nepal Digital Businesses Advancing To Zero marks our response to the global call to achieve a net-zero carbon position as we head towards a more sustainable future. In Advancing Asia, we now accelerate our climate action even as we champion digital telecommunications, digital businesses and infrastructure Infrastructure across our footprint. Driven by the vision where People and Planet can co-exist, we work to progress with balance. IAR For more details on our regional presence, please refer to page 4 in the “We Are Axiata: This Is Our Investment Case” section Table of Contents We drive digital progress and inclusion In a rapidly changing industry… …we have a clear business model... …supported by our Next Generation across our markets in ASEAN and Digital Champion ambitions. South Asia. We Are Axiata: This Is Our Investment This Was The Environment We Our Value Creation Model Building A Modern, Agile And Digital Case Operated In We provide customers with Asian Talent Factory We use the power of communications to We understand and respond to market communications, connectivity and digital services. make a better world. pg4 opportunities and challenges. pg7 pg43 pg45 Get To Know Us Leadership Insights Realising Our Vision Towards Becoming The Next Generation Digital Champion 4 We Are Axiata: 11 Chairman’s Message 31 Considering What Matters This Is Our Investment Case 13 Our Share Price Performance 33 Responding To Our Stakeholders 43 Our Value Creation Model 7 This Was The Environment We Operated In 14 Our Dividend Policy 35 Our Risks Linked To Strategy 44 Delivering Long-Term Value To 8 And This Was How We Responded To The 15 In Conversation With The President & 39 Evolving And Adapting Our Strategy Shareholders COVID-19 Pandemic Group Chief Executive Officer To Capture New Normal Growth 45 Building A Modern, Agile And Digital Opportunities Asian Talent Factory 40 Adapting Our Strategy To Capture New 46 Becoming A Trusted And Reliable Digital Normal Growth Opportunities Partner 47 Supporting Governments And Communities In Our Markets 48 Enabling Digitally-Connected Societies 49 Minimising Environmental Impact We are focused on sustainable ...driven by a strong culture with shared …and being a responsible business… …to achieve our 4P goals. growth... values... Financial Review How Our Operating Companies Robust Governance Structure Our Goals Key Performance Indicators Performed Our performance as a sustainable and Drive sustainable growth in Performance, Harnessing Group-wide synergies. responsible business. People, Partnership and Planet & Society. pg51 pg60 pg81 Our Financial Resilience Delivering Our Strategy Holding Ourselves Accountable Additional Information 51 Financial Review 60 2020 Overview Of Digital Telcos’ 80 Committed To Accountability 104 Corporate Information 54 Consolidated Statement Of Performance 81 Our Governance Structure 105 Notice Of Annual General Meeting Comprehensive Income 61 Celcom Axiata 82 Who Governs Us 112 Statement Accompanying Notice of 54 Consolidated Statement Of Cash Flows 63 XL Axiata 84 An Experienced Leadership Annual General Meeting 55 Consolidated Statement Of Financial 65 Dialog Axiata 88 Our Governance At A Glance Proxy Form Position 67 Robi Axiata 89 Embedding Sustainability Into Our 56 Group Financial Snapshot 69 Smart Axiata Governance Structures 57 Group Financial Position 71 Ncell Axiata 90 Board Leadership And Effectiveness 58 Key Performance Indicators 73 edotco Group 94 Board Committees 75 Axiata Digital 96 Board Accountability 76 Boost 98 Internal Control And Risk Management 77 Aspirasi 99 Cyber Security And Privacy Committee 78 ADA 100 Risk And Compliance Management Committee 101 Communication With Stakeholders Axiata Group Berhad Integrated Annual Report 2020 2 About This Report Reporting Philosophy Scope and Boundary Materiality Forward-Looking Statements This is Axiata Group Berhad’s (Axiata or the Group) This IAR provides our stakeholders with a concise and Our materiality assessment was conducted in line with Our business operates in a volatile landscape and is 2020 Integrated Annual Report (IAR), prepared in transparent narrative of how we utilise our capitals Bursa Malaysia Securities Berhad’s (Bursa Malaysia) therefore subject to external events that could result conformity with the International Integrated Reporting to generate financial and non-financial performance, Listing Requirements and incorporates our stakeholders’ in actual future performance differing from those Council’s (IIRC) International <IR> Framework. assess our risks and opportunities, and the outputs and inputs as well as the business’ perspectives. In order projected in the forward-looking statements throughout outcomes of our value creation model encompassing our to assess the material issues that impact our ability to this IAR. Triple Core Business of Digital Telco, Digital Businesses create value over the short, medium and long term, and Infrastructure. Unless otherwise stated, it spans the we have included risks identified through our risk period of 1 January 2020 till 31 December 2020. management process. Throughout this IAR, we present our strategic responses to these material issues. Axiata’s 2020 Integrated Annual Report Suite is made up of the following: Improvements in Axiata’s Integrated Annual Report 2020: Disclosures Reporting Frameworks We Are Axiata: This Is Our Investment Case (on Integrated IAR page 4) - improved our explanation on our business, Annual Report 2020 Our Management Discussion and Analysis is covered under the following Malaysian Code on Corporate Governance 2017 sections: Bursa Malaysia Listing Requirements and the investment proposition we offer the - Leadership Insights IIRC Integrated Reporting Framework marketplace - Realising Our Vision Companies Act 2016 And This Was How We Responded To The COVID-19 - Towards Becoming The Next Generation Digital Champion Pandemic (on page 8) - demonstrates the Group’s - Our Financial Resilience cohesive and coordinated response to assist - Delivering Our Strategy governments and communities, as well as our ability Abridged Annual Financial Statements to swiftly adapt as a business to the crisis Corporate Governance Overview Statement Included Case Studies in Responding To Our Stakeholders (on page 34) and Our Risks Linked To Governance & Audited GAFS Governance & Compliance Documents Financial Statements Strategy (on page 38) to provide insights into our Financial Statements 2020 Full Directors and Management Profiles Directors’ Report Malaysian Code on Corporate Governance 2017 management approach and philosophy Statement on Risk Management and Audited Financial Statements Bursa Malaysia Listing Requirements Internal Control Independent Auditors’ Report Companies Act 2016 Board Audit Committee Report Images for Axiata’s Integrated Annual Report Additional Compliance Information 2020: This report’s cover and section dividers depict Team Axiata’s efforts to do their part to live more sustainably in their everyday lives. Big or small, we strive to effect meaningful change, whether on a Sustainability & National SNRC Sustainability Framework Bursa Malaysia Sustainability Reporting personal or professional level, across our footprint to Contribution Report 2020 Sustainability Governance Guidelines create multipliers through our OpCos. These form part Our Commitments GRI Standards (Core) of our larger efforts in Advancing to Zero towards a Third Party Assurance AA1000 Stakeholder Engagement net-zero carbon position, with the recognition that ISAE 3000 (Revised) - Limited Assurance #ItBeginsWithMe and #ItBeginsWithUs. Engagement Assurance Approval by the Board For more information: Our Annual Financial Statements (AFS) are disclosed in the The Board of Directors (Board) applied its collective mind to ensure the integrity of this IAR as guided by the IIRC’s Governance and Audited Financial Statements 2020 and have been International <IR> Framework and other disclosure requirements. fully audited. Limited assurance has been provided on selected disclosure(s) within our Sustainability & National Contribution • Tan Sri Ghazzali Sheikh Abdul Khalid • Dr David Robert Dean • Tan Sri Dr Halim Shafie Report (SNCR) 2020. • Dato’ Izzaddin Idris • Khoo Gaik Bee • Ong King How Scan the QR code to • Dato Dr Nik Ramlah Nik Mahmood • Thayaparan S Sangarapillai • Syed Ali Syed Salem Alsagoff view our IAR online Tina Salleh Head of Sustainability Celcom Axiata I believe in buying local and ethically-sourced products. #ItBeginsWithMe GET TO KNOW US Axiata Group Berhad Integrated Annual Report 2020 4 We Are Axiata: This Is Our Investment Case Axiata is a leading regional telecommunications We have consistently emphasised on good governance and guided by our 4P Goals, we have embedded Environmental, Group with a footprint spanning 11 countries compliance, as encapsulated in our values of Uncompromising Social and Governance (ESG) factors into our business model to Integrity, Exceptional Performance (UI.EP), in our business empower our stakeholders. in ASEAN and South Asia. Our diverse and conduct and ethics. purpose driven talent base of more than 12,6001 As the world heads towards new horizons, Axiata is continuously employees service the needs of more than 157 Since inception, we have successfully pivoted from a pure-play evolving to meet the telecommunication and digital needs of mobile player, to a resilient Triple Core Business, with
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