DOCSLIB.ORG

Axiata Group

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Axiata Group TELECOMMUNICATION AXIATA GROUP (AXIATA MK EQUITY, AXIA.KL) 12 Apr 2021 Aiming for synergies to offset Celcom Digi deal Company report BUY Alex Goh (Maintained) [email protected] 03-2036 2280 Rationale for report: Company update Investment Highlights Price RM4.11 Fair Value RM4.50 52-week High/Low RM4.23/RM2.66 We reiterate BUY on Axiata Group (Axiata) with an unchanged sum-of-parts-based fair value of RM4.50/share, which reflects a Key Changes neutral ESG rating of 3 stars. This implies an FY21F EV/EBITDA Fair value of 4.5x – 1 standard deviation below its 3-year average of 5.5x. EPS Axiata’s share price rose 31 sen or 8% on Friday after the YE to Dec FY20 FY21F FY22F FY23F announcement by Axiata and Telenor that they are in advanced Revenue (RM mil) 24,203.2 24,799.3 25,550.9 26,339.2 discussions to merge the telco operations of Celcom Axiata Core net profit (RM mil) 865.0 991.1 1,263.5 1,375.5 (Celcom) and Digi.Com. FD Core EPS (sen) 9.4 10.8 13.8 15.0 FD Core EPS growth (%) (15.6) 14.6 27.5 8.9 As highlighted in our Sector Report on 9 April, we understand that Consensus Net Profit (RM mil) - 1,061.7 1,265.2 1,485.5 this could involve Digi acquiring Axiata's wholly-owned Celcom DPS (sen) 7.0 9.5 9.5 9.5 PE (x) 43.6 38.0 29.8 27.4 via a share swap together with a cash equalisation sum of RM2bil, EV/EBITDA (x) 4.1 4.5 4.2 3.9 of which RM1.7bil will come from new Digi debt and RM300mil Div yield (%) 2.0 2.7 2.7 2.7 from Telenor. Both Axiata and Telenor will have equal stakes of ROE (%) 2.2 5.7 7.3 7.7 33.1% each in the merged entity which will be called Celcom Digi, Net Gearing (%) 59.8 90.7 76.9 63.6 with the balance held by Digi's minority shareholders. Stock and Financial Data Celcom Digi will emerge as the leading telecommunications Shares Outstanding (million) 9,169.5 service provider in Malaysia in terms of market capitalisation, Market Cap (RM mil) 37,686.7 revenue and profit, with proforma FY20 revenue of RM12.4bil, pre- Book Value (RM/share) 1.92 synergy EBITDA of RM5.7bil and 19mil customers, 71% above P/BV (x) 2.1 Maxis, the current market leader. ROE (%) 2.2 Net Gearing (%) 59.8 Axiata could have the larger influence with Celcom Digi's Major Shareholders Khazanah (37.6%) chairman position to be occupied by Axiata's current CEO Datuk EPF (17.2%) Izzaddin Idris while Celcom's current CEO Idham Nawawi will assume the same role in the merged entity, providing reassurance Free Float 0.4 Avg Daily Value (RM mil) 16.5 of continued local control. Meanwhile, Telenor will hold the vice- chairman role via Jørgen C. Arentz Rostrup with Albern Murty as Price performance 3mth 6mth 12mth deputy CEO. Absolute (%) 13.2 37.9 15.6 Assuming no synergies nor opex savings, we estimate that the Relative (%) 13.2 29.9 (2.7) deconsolidation of Celcom’s earnings will cause Axiata’s FY22F EPS to decrease by 9%, partly offset by the contribution of the 7.0 2,000 33.1% associate contribution from Celcom Digi while EBITDA 1,800 6.0 drop further by 22% (Exhibit 1). 1,600 5.0 1,400 Assuming a 10% reduction in Celcom Digi’s opex, Axiata’s FY22F 1,200 4.0 EPS will instead increase by 4%, while EBITDA decrease by 17%. 1,000 Nevertheless, as Axiata’s FY22F net debt/EBITDA will improve 3.0 800 from 1.1x to 0.8x–0.9x, we expect an improvement in the group’s 2.0 600 EV/EBITDA valuations from 4.2x currently. Given the lower 400 EBITDA from the deconsolidation of Celcom, we estimate that 1.0 200 Axiata’s FY22F EV/EBITDA would need to rise to 5x (slightly 0.0 0 below its 3-year average) to reach our fair value of RM4.50/share. Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 For a regional telco operator aiming to be a high dividend-yielding AXIATA MK FBMKLCI Index stock with excellent opportunities to further monetise its assets and engage in multiple merger and acquisition activities, Axiata is trading at a bargain FY21F EV/EBITDA of 4x vs. Maxis' 12x. Axiata Group 12 Apr 2021 EXHIBIT 1: IMPACT FROM ACQUISITION OF CELCOM BY DIGI Source: AmBank Research AmInvestment Bank Bhd 2 Axiata Group 12 Apr 2021 EXHIBIT 2: MERGER BREAKDOWN Source: AmBank Research AmInvestment Bank Bhd 3 Axiata Group 12 Apr 2021 EXHIBIT 3: PB BAND CHART EXHIBIT 4: PE BAND CHART 3.50 140.00 3.00 120.00 2.50 +1δ 100.00 Avg 2.00 80.00 +1δ -1δ 1.50 60.00 1.00 40.00 Avg 0.50 20.00 -1δ 0.00 0.00 Jul-17 Jul-18 Jul-19 Jul-20 Jul-17 Jul-18 Jul-19 Jul-20 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Apr-21 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Apr-21 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 -20.00 EXHIBIT 5: ESG RATING Overall ★ ★ ★ Zero-carbon initiatives ★ ★ ★ ★ Health & Safety Compliance ★ ★ ★ ★ Independent BOD ★ ★ ★ Corporate social responsibility ★ ★ ★ ★ Pollution control ★ ★ ★ ★ Supply chain auditing ★ ★ ★ Corruption-free pledge ★ ★ ★ Accessibility & transparency ★ ★ ★ ★ We accord a discount/premium of -6%, -3%, 0%, +3% and +6% on fundamental fair value based on the overall ESG rating as appraised by us, from 1-star to 5-star Source: AmInvestment Bank AmInvestment Bank Bhd 4 Axiata Group 12 Apr 2021 EXHIBIT 6: SUM-OF-PARTS BREAKDOWN Source: AmInvestment Bank AmInvestment Bank Bhd 5 Axiata Group 12 Apr 2021 EXHIBIT 7: FINANCIAL DATA Income Statement (RMmil, YE 31 Dec) FY19 FY20 FY21F FY22F FY23F Revenue 24,583.3 24,203.2 24,799.3 25,550.9 26,339.2 EBITDA 11,032.4 11,653.1 11,769.9 12,168.4 12,481.0 Depreciation/Amortisation (7,084.2) (8,485.0) (8,400.1) (8,484.1) (8,653.8) Operating income (EBIT) 3,948.1 3,168.1 3,369.7 3,684.3 3,827.2 Other income & associates 432.1 (481.1) 9.4 13.7 17.3 Net interest (1,508.0) (1,515.9) (1,667.5) (1,684.1) (1,701.0) Exceptional items - - - - - Pretax profit 2,872.2 1,171.1 1,711.7 2,013.8 2,143.5 Taxation (1,057.1) (547.1) (513.5) (563.9) (600.2) Minorities/pref dividends (357.5) (258.9) (207.1) (186.4) (167.8) Net profit 1,457.6 365.2 991.1 1,263.5 1,375.5 Core net profit 1,022.0 865.0 991.1 1,263.5 1,375.5 Balance Sheet (RMmil, YE 31 Dec) FY19 FY20 FY21F FY22F FY23F Fixed assets 25,816.1 24,675.4 30,155.8 30,526.1 31,042.7 Intangible assets 20,724.4 20,634.4 19,602.7 18,622.5 17,691.4 Other long-term assets 10,467.7 10,687.3 10,758.5 10,835.8 10,919.4 Total non-current assets 57,008.2 55,997.1 60,516.9 59,984.5 59,653.6 Cash & equivalent 4,231.1 7,194.3 3,975.8 8,001.2 12,145.3 Stock 154.3 141.7 108.7 112.0 115.5 Trade debtors 4,722.0 4,362.4 4,076.6 4,200.2 4,329.7 Other current assets 418.3 266.3 279.6 293.6 308.3 Total current assets 9,525.7 11,964.6 8,440.7 12,606.9 16,898.7 Trade creditors 12,178.3 12,005.8 10,870.9 11,200.4 11,545.9 Short-term borrowings 7,631.8 2,971.5 3,268.7 3,595.6 3,955.1 Other current liabilities 4,527.5 2,416.7 2,478.2 2,626.1 2,765.3 Total current liabilities 24,337.5 17,394.0 16,617.8 17,422.1 18,266.4 Long-term borrowings 9,194.5 14,773.9 16,251.3 17,876.4 19,664.1 Other long-term liabilities 10,781.8 11,914.4 12,510.2 13,135.7 13,792.5 Total long-term liabilities 19,976.3 26,688.3 28,761.4 31,012.1 33,456.5 Shareholders’ funds 16,180.8 17,641.1 17,133.0 17,525.4 18,029.9 Minority interests 6,039.2 6,238.3 6,445.4 6,631.8 6,799.6 BV/share (RM) 1.77 1.92 1.87 1.91 1.97 Cash Flow (RMmil, YE 31 Dec) FY19 FY20 FY21F FY22F FY23F Pretax profit 2,872.2 1,171.1 1,711.7 2,013.8 2,143.5 Depreciation/Amortisation 7,084.2 8,485.0 8,400.1 8,484.1 8,653.8 Net change in working capital 188.0 (102.5) 160.7 202.6 212.5 Others (2,368.4) (1,938.6) (2,049.9) (2,116.1) (2,168.4) Cash flow from operations 7,776.1 7,615.0 8,222.7 8,584.4 8,841.4 Capital expenditure (6,711.2) (5,445.7) (6,199.8) (6,387.7) (6,584.8) Net investments & sale of fixed assets - - - - - Others - - - - - Cash flow from investing (6,711.2) (5,445.7) (6,199.8) (6,387.7) (6,584.8) Debt raised/(repaid) 2,894.8 1,897.8 2,000.0 2,000.0 2,000.0 Equity raised/(repaid) - - - - - Dividends paid (861.7) (869.0) (641.9) (871.1) (871.1) Others - - - - - Cash flow from financing 2,033.1 1,028.8 1,358.1 1,128.9 1,128.9 Net cash flow 3,097.9 3,198.2 3,381.0 3,325.6 3,385.5 Net cash/(debt) b/f (4,975.4) (3,150.0) (2,406.2) (1,363.2) (504.4) Net cash/(debt) c/f (1,877.5) 48.2 974.8 1,962.3 2,881.1 Key Ratios (YE 31 Dec) FY19 FY20 FY21F FY22F FY23F Revenue growth (%) 2.9 (1.5) 2.5 3.0 3.1 EBITDA growth (%) 0.3 5.6 1.0 3.4 2.6 Pretax margin (%) 11.7 4.8 6.9 7.9 8.1 Net profit margin (%) 5.9 1.5 4.0 4.9 5.2 Interest cover (x) 2.6 2.1 2.0 2.2 2.2 Effective tax rate (%) 36.8 46.7 30.0 28.0 28.0 Dividend payout (%) 59.6 175.8 87.9 68.9 63.3 Debtors turnover (days) 73 68 62 59 59 Stock turnover (days) 3 2 2 2 2 Creditors turnover (days) 183 182 168 158 158 Source: Company, AmInvestment Bank Bhd estimates AmInvestment Bank Bhd 6 Axiata Group 12 Apr 2021 DISCLOSURE AND DISCLAIMER This report is prepared for information purposes only and it is issued by AmInvestment Bank Berhad (“AmInvestment”) without regard to your individual financial circumstances and objectives.
Load more

Recommended publications
  • Always Be Ahead We Are Maxis
    Integrated Annual Report 2019 Always Be Ahead We Are Maxis Maxis is the leading converged solutions company in Malaysia providing a variety of high quality digital services encompassing voice, data, and solutions. We are passionate about bringing together the best of technology to help people, businesses and the nation to Always Be Ahead in an evolving world. As digitalisation is changing the way we communicate and access services such as commerce, banking, and entertainment, we at Maxis, continue to innovate our products and services leveraging from our leading mobile offerings. Not only are we motivated to ensure our products are services, cybersecurity, cloud and IoT. These solutions are consumer-relevant and are of high quality, we are committed supported by an advanced core network with next-generation to deliver the best experience to our customers through a network support capabilities. We aim to be the preferred single point-of-contact. Through our range of worry-free, information and communication technology (ICT) partner flexible and personalised mobile and fixed connectivity as to help Malaysian businesses leverage on technology, as well as solutions, we are empowering our consumers to adapt they ride the wave of digitalization in their business growth and navigate their lifestyles in an increasingly digital world. acceleration. We believe in unlocking the full potential of fixed connectivity To ensure all our customers enjoy superior communication as well as Enterprises, as businesses look towards experiences, we are continuously investing in our network digitalization to improve and grow their businesses. Our and IT infrastructure to further boost speeds, coverage end-to-end Enterprise offerings built upon our strong and reliability.
    [Show full text]
  • Strategy : Outlook 2021
    Indonesia | Riset Retail | 23 November 2020 Review Dow Jones kemarin malam.. Jumat (20/11), indeks Dow Jones Industrial Average turun 219,75 poin atau 0,75%. Wall street ditutup melemah pada Jumat (20/11) karena investor khawatir dengan perkembangan stimulus fiskal AS yang tak jelas. Juga, kekhawatiran atas peluncuran vaksin corona yang berkepanjangan, dan semakin banyak penutupan di negara bagian AS untuk memerangi pandemi corona yang terus meningkat. -Kontan- Ideas of the day | Trendspotter Indeks Harga Saham Gabungan (IHSG) Resistance 2 5720 Resistance 1 5691 Support 1 5504 Support 2 5441 Saham ASII Saham MNCN Saham HMSP Resistance 2 : 5950 Resistance 2 : 1010 Resistance 2 : 1610 Resistance 1 : 5825 Resistance 1 : 975 Resistance 1 : 1570 Support 1 : 5625 Support 1 : 920 Support 1 : 1525 Support 2 : 5550 Support 2 : 900 Support 2 : 1485 Strategy : Outlook 2021 • Menstabilkan hasil obligasi dan visibilitas yang lebih besar dari ketersediaan vaksin akan memperkuat pemulihan ekonomi Indonesia memasuki tahun 2021. Penerapan Omnibus Law yang lebih cepat memberikan risiko yang menguntungkan. • Meskipun kasus dasar kami tetap di mana pertumbuhan dibatasi oleh konsumsi yang lemah dan berakhirnya pelonggaran skema restrukturisasi pinjaman pada 22 Maret, pasar dapat memilih untuk memproyeksikan hasil yang lebih optimis. • Pemulihan ekonomi masa lalu mendukung permainan infrastruktur dan properti. Hal ini dapat terjadi lagi karena adanya hambatan regulasi dan rebound dalam belanja infra pemerintah. Proksi obligasi adalah perdagangan favorit lainnya. Indonesia | Riset Retail | 23 November 2020 Commodities / Indices… Indices Currencies Global Commodities Most Actives Indonesia | Riset Retail | 23 November 2020 PT XL Axiata Tbk - Technical view Last price: 2300 Figure 1: Daily Timeframe Resistance 1 :2350 Support 1: 2290 Resistance 2 :2420 Support 2: 2250 Source: Bloomberg, CGS-CIMB RESEARCH EXCL di tutup stagnan di level 2300.
    [Show full text]
  • Hong Leong Bank Berhad
    January 26, 2018 Global Markets Research Fixed Income Fixed Income Daily Market Snapshot US Treasuries UST T enure C lo sing (%) C hg (bps) US Treasuries reversed losses in earlier sessions by rallying as 2-yr UST 2.09 1 the curve bull-flattened amid strong 7Y auction which averaged 5-yr UST 2.42 -1 2.565%. Yields were generally lower by up to 5bps (save for the 10-yr UST 2.62 -3 30-yr UST 2.88 -5 2Y; sensitive to Fed policy interest rate expectations which nudged 1bps higher at 2.09%). The 5s30s spread resumed MGS GII* tightening by as much as 3bps. The much-watched 10Y moved T enure C lo sing (%) C hg (bps) C lo sing (%) C hg (bps) 2bps lower at 2.62%. The recent movement of yields; especially 3-yr 3.35 -2 3.54 0 the 10Y UST suggest that volatility may begin emerging unlike 5-yr 3.62 8 3.88 -1 7-yr 3.89 -1 4.08 -3 the “goldilocks” era of debt levels in 2017. Upcoming data today 10-yr 3.92 -1 4.16 -2 include annualized GDP figures for 4Q with survey polls lower at 15-yr 4.44 1 4.55 0 3.0%. 20-yr 4.62 -1 4.78 0 30-yr 4.86 -4 4.95 0 * M arket indicative levels M YR IRS Levels MGS/GII IR S C lo sing (%) C hg (bps) Local Govvies saw volume traded improve to RM2.67b with 1-yr 3.70 5 investor interest shifting to the mid-to-long ends i.e.
    [Show full text]
  • Download Chapter 2
    28 Key Highlights 2019 29 Overview 29 C&M Industry Market Performance 33 C&M Industry Financial Performance 34 Telecommunications Sector 40 Broadcasting Sector 41 Postal and Courier Sector 42 ACE Market Overview and Performance This chapter reports on the economic performance of the C&M industry, mainly on the market capitalisation including Bursa Malaysia market capitalisation by sector; telecommunications, broadcasting, postal and courier. This chapter also analyses the financial performance including industry revenue by sector, capital expenditure and ARPU. In addition, it also provides an overview and performance of the ACE Market. KEY HIGHLIGHTS 2019 28 INDUSTRY PERFORMANCE REPORT 2019 OVERVIEW DOMESTIC GROWTH The C&M industry market capitalisation remained resilient despite the external headwinds and global SOFTENED IN 2019, WITH economic uncertainties and continued to play a vital role in contributing to the domestic economy. MIXED PERFORMANCES Sector-wide cost rationalisation continues to ACROSS COMMUNICATIONS be at the forefront of the C&M industry players’ initiatives against the persistent and increasing stiff AND MULTIMEDIA (C&M) competitiveness in the market. INDUSTRY C&M INDUSTRY MARKET PERFORMANCE The C&M industry represents 8.4% or RM144.01 billion of Bursa Malaysia total market capitalisation of RM1,711.84 billion as at end 2019 (2018: 8.1% C&M Industry or RM137.73 billion). The C&M industry market capitalisation has increased by 4.6%, spurred Market Capitalisation by telecommunications sector. This is due to RM144.01 telecommunication companies’ share prices gaining billion 4.6% momentum, driven by corporate announcements (2018: RM137.73 billion) such as 5G initiatives, new product launch, collaborations and financial results.
    [Show full text]
  • Malaysia Real Estate Highlights
    RESEARCH REAL ESTATE HIGHLIGHTS 1ST HALF 2019 KUALA LUMPUR PENANG JOHOR BAHRU KOTA KINABALU HIGHLIGHTS KUALA LUMPUR More market activity in the high-end condominium / HIGH END CONDOMINIUM serviced apartment segment (> RM1 million) in 2018 and MARKET this momentum is expected to continue into 2019. MARKET SUPPLY AND 1H2019 saw the launches of a INDICATIONS DEMAND few high-end condominium / The Malaysian economy continues with As of 1H2019, the completion of 602 units serviced apartment projects in its growth momentum albeit at a slower of high-end condominiums / serviced Kuala Lumpur City. The projects pace of 4.7% in 2018 (2017: 5.9%). It apartments from two projects brought are generally smaller in scale, on continued to expand 4.5% in 1Q2019 the cumulative supply in Kuala Lumpur pockets of land. (4Q2018: 4.7%), supported by private to 56,786(R) units. The completed projects sector expenditure. For the whole year were Opus KL (357 units) and Residensi The prices of new launches of 2019, economic growth is expected Sefina (245 units). remain flattish as the high-end to range between 4.3% and 4.8%. In (Note: (R) The cumulative supply has residential segment continues to May 2019, the Department of Statistics been revised) be challenging. Malaysia (DOSM) rebased of the country’s gross domestic product (GDP), The scheduled completion of Sky Suites In the secondary market, the from year 2010 to 2015. @ KLCC (986 units), 8 Kia Peng (442 units), Tower 1 and Tower 2 @ Star overall transacted price of The current period of low headline Residences (1,039 units), Aria KLCC selected schemes analysed was inflation, recorded at 1.0% in 2018 (2017: (598 units), Stonor 3 (400 units), Novum lower by 1.6% when compared 3.7%), is largely due to key policies such Bangsar (729 units), TWY Mont’ Kiara to 2018 as purchasers continue as the fixing of domestic retail fuel prices (484 units), Arte Mont’ Kiara (1,706 to be spoilt for choice.
    [Show full text]
  • National Annual Corporate Report Awards
    NATIONAL ANNUAL CORPORATE REPORT AWARDS LIST OF WINNERS FOR NACRA 2019 OVERALL EXCELLENCE AWARDS MOST OUTSTANDING ANNUAL REPORT OF THE YEAR PLATINUM CIMB GROUP HOLDINGS BERHAD GOLD TENAGA NASIONAL BERHAD SILVER TELEKOM MALAYSIA BERHAD INDUSTRY EXCELLENCE AWARDS – MAIN MARKET CONSTRUCTION SUNWAY CONSTRUCTION GROUP BERHAD CONSUMER PRODUCTS & SERVICES FRASER & NEAVE HOLDINGS BHD FINANCIAL SERVICES CIMBCONSTRUCTION GROUP HOLDINGS GROUP BERHADBERHAD INDUSTRIAL PRODUCTS & SERVICES PETRONAS CHEMICALS GROUP BERHAD PROPERTY SIME DARBY PROPERTY BERHAD REAL ESTATE INVESTMENT TRUSTS (REITS) KLCC PROPERTY HOLDINGS BERHAD & KLCC REAL ESTATE INVESTMENT TRUST TELECOMMUNICATIONS & MEDIA TELEKOM MALAYSIA BERHAD UTILITIES TENAGA NASIONAL BERHAD PRESENTATION AWARDS BEST ANNUAL REPORT IN BAHASA MALAYSIA PLATINUM RHB BANK BERHAD GOLD TELEKOM MALAYSIA BERHAD GOLD FGV HOLDINGS BERHAD NATIONAL ANNUAL CORPORATE REPORT AWARDS BEST DESIGNED ANNUAL REPORT PLATINUM PETRONAS GAS BERHAD GOLD NESTLE (MALAYSIA) BERHAD SILVER CIMB GROUP HOLDINGS BERHAD BEST INTEGRATED REPORTING AWARDS PLATINUM SIME DARBY PROPERTY BERHAD GOLD PETRONAS CHEMICALS GROUP BERHAD SILVER AXIATA GROUP BERHAD BEST SUSTAINABILITY REPORTING AWARDS PLATINUM AXIATA GROUP BERHAD GOLD CIMB GROUP HOLDINGS BERHAD SILVER NESTLE (MALAYSIA) BERHAD SILVER TELEKOM MALAYSIA BERHAD SPECIAL AWARD FOR NON-LISTED ORGANISATIONS BEST ANNUAL REPORT OF NON-LISTED ORGANISATIONS KULIM (MALAYSIA) BERHAD NATIONAL ANNUAL CORPORATE REPORT AWARDS Secretariat for NACRA 2019 Adjudication Committee The Malaysian Institute of Certified Public Accountants No. 15, Jalan Medan Tuanku 50300 Kuala Lumpur [Phone] + 60 3 2698 9622 [Fax] + 60 3 2698 9403 [Email] [email protected] [Web] http://www.micpa.com.my LIST OF CERTIFICATES OF MERIT RECIPIENTS 1. AXIS REAL ESTATE INVESTMENT TRUST 2. GAMUDA BERHAD 3. OSK HOLDINGS BERHAD 4. PETRONAS DAGANGAN BERHAD 5.
    [Show full text]
  • Go V Ernance & a Udited Financial S T a Tement S 2 0 19
    GOVERNANCE & AUDITED FINANCIAL STATEMENTS 2019 Governance & Compliance Information Governance & Audited Financial Statements 2019 Contents GOVERNANCE Group Corporate Structure 2 Profile of Directors 4 Board Remuneration 8 Directors’ Training List 2019 9 Profile of Group Senior Leadership Team 12 Profile of Operating Companies’ Management Team 18 Significant Milestones in 2019 20 Awards 21 Statement on Risk Management and Internal Control 26 Board Audit Committee Report 36 Strengthening Data Privacy and Cyber Security in 2019 38 Additional Compliance Information 40 AUDITED FINANCIAL STATEMENTS Directors’ Responsibility Statement 44 Audited Financial Statements for the financial year ended 31 December 2019 45 OTHER INFORMATION Shareholding Statistics 195 List of Top Ten Properties 198 Net Book Value of Land & Buildings 199 Glossary 200 Axiata’s Integrated Annual Report 2019 Suite is made up of the following: IAR Integrated Annual Report 2019 GAFS Governance & Audited SNCR Sustainability & National Financial Statements 2019 Contribution Report 2019 Governance Governance & Compliance Information Governance & Audited Financial Statements 2019 Group Corporate Structure* as at 31 March 2020 AXIATA GROUP BERHAD Celcom Axiata Berhad Axiata SPV1 Axiata Investments 1 (Malaysia) (Labuan) Limited (India) Limited (Labuan) (Mauritius) Celcom Resources Berhad Axiata SPV2 Axiata (Malaysia) Berhad Investments 2 (Malaysia) (India) Limited Celcom Networks Sdn Bhd (Mauritius) (Malaysia) Axiata Management Celcom Mobile Sdn Bhd Services Sdn Bhd (Malaysia) (Malaysia)
    [Show full text]
  • Telco, Service Providers Offer Free Data and Discounts During
    Headline Telco, service providers offer free data and discounts during MCO MediaTitle The Malaysian Reserve Date 27 Mar 2020 Language English Circulation 12,000 Readership 36,000 Section News Page No 7 ArticleSize 604 cm² Journalist S BIRRUNTHA PR Value RM 19,026 Telco, service providers offer free data and discounts during MCO TM is providing its from time to time in the effort to customers with free LTE curb the spread of Covid-19. On another note, OCBC Bank hotspot pass and a 7-day (M) Bhd, together with its Islamic unlimited data pass banking subsidiary OCBC Al-Amin Bank Bhd, has announced by S BIRRUNTHA that it will absorb the RM1 auto- mated teller machine (ATM) cash MALAYSIAN telecommunica- withdrawal fee levied to its cus- tion companies (telcos) and tomers for using another bank's service providers have taken the ATM in the country. initiative to ensure that customers OCBC Bank head of consumer stay connected during the Move- financial services Lim Wyson said ment Control Order (MCO) by the initiative is part of the bank's offering free unlimited data concerted efforts to encourage access to telco users, as well as people to comply with the MCO. discounts on bill payments for "By absorbing the RM1 cash Malaysians. withdrawal fee, we are removing Telekom Malaysia Bhd (TM) yet another hurdle to getting said it will continually monitor people home more quickly," he the developments of the situa- said in a statement. tion and adapt its services Lim added that to minimise the to help customers, whenever use of ATMs beyond when abso- needed.
    [Show full text]
  • CIMB-Axiata Digital Capital Partnership to Offer Financing
    FOR IMMEDIATE RELEASE CIMB-Axiata Digital Capital Partnership to offer financing solutions to 700,000 micro-SMEs across Malaysia and Indonesia First-of- its-kind bank and digital service regional tie up to provide financing solutions to underserved SMEs KUALA LUMPUR, 9 August 2019 – CIMB Group (“CIMB”) have entered into a partnership with Axiata Digital Capital (“ADC”), a fintech services provider under Axiata Digital that provides financing solutions to potentially 700,000 small and medium enterprise (SME) customers in Malaysia and Indonesia through ADC’s Micro lending platform, Aspirasi. The partnership - signed by Victor Lee Meng Teck, CEO of Group Commercial Banking, CIMB Group and Sheyantha Abeykoon, CFO of Axiata Digital and Director of Axiata Digital Capital, marks a significant milestone for both entities as this represents the first regional collaboration between a bank and a digital services provider that is focused on fueling the growth of micro and small SMEs. “Customers are at the heart of all our initiatives. To that end, we are pleased to partner Axiata Digital Capital to strengthen our digital proposition to potentially 700,000 SMEs in Malaysia and Indonesia enabling them to gain access to financing solutions seamlessly and speedily to support their growth. Through this collaboration, we aim to fulfil SMEs’ unique needs based on their different business life stages. Further, CIMB will also extend end-to-end support for SMEs to expand their businesses both within their home market and off-shore, by leveraging on our strong regional footprint and network,” said Victor Lee. “We are excited to collaborate with CIMB, an organization which shares in our vision of empowering small-time businesses through digitally inclusive technologies.
    [Show full text]
  • Public Investment Bank
    PUBLIC INVESTMENT BANK PublicInvest Research Sector Update Tuesday, June 22, 2021 KDNPP17686/03/2013(032117) TELECOMMUNICATIONS Neutral Celcom-Digi Merger: One Step Closer RECOMMENDATION TABLE Axiata Group (Axiata) and Digi.Com (Digi) have concluded the due diligence Current Target Upside Call exercise and sealed the transaction agreements for the proposed merger of Celcom (RM) (RM) (%) Axiata and Digi (MergeCo). Post-merger, the MergeCo’s net profit is estimated at DiGi 4.32 4.50 4.2 N about RM2bn with an implied valuation of RM47.6bn or 24x 1-year forward PER. Maxis 4.52 4.64 2.7 N However, this excludes the potential synergies (i.e. cost and capex savings) to be Axiata 3.98 4.00 0.5 N reaped in the future. Celcom is being valued at RM17.8bn, which is about 5% higher than our current valuation for Celcom. Digi is expected to issue 3,956.5m new TM 6.07 6.90 13.7 OP shares (@ RM4.06 per share) and fork out RM1.7bn cash to acquire 100% of Celcom. Based on our earnings forecast for Digi, the group is valued at 25x forward PER versus our valuation of 26x. All in all, we feel the valuation for Celcom and Digi Subscriber base is fair. We maintain our Neutral rating on Axiata and Digi. ('000) § Digi will acquire 100% equity interest of Celcom held by Axiata 8,000 Prepaid Postpaid Fair valuation. for a total consideration of RM17.8bn to be satisfied via the issuance of 3.883bn 6,000 new Digi shares to Axiata, representing 33.1% of the MergeCo and RM1.7bn cash.
    [Show full text]
  • Maybank Investment Bank Issues 8 New Call Warrants
    News Release EMBARGOED: Not for publication or broadcast before 1800 hours on Sunday, 26 January 2014 Maybank Investment Bank Issues 8 New Call Warrants Kuala Lumpur, 26 January 2014 – Maybank Investment Bank Berhad (“Maybank Investment Bank”) is issuing eight new European style cash-settled call warrants (“CW”) over ordinary shares of Astro Malaysia Holdings Berhad (“ASTRO”), Axiata Group Berhad (“AXIATA”), DiGi.Com Berhad (“DIGI”), MISC Berhad (“MISC”), MSM Malaysia Holdings Berhad (“MSM”), Tenaga Nasional Berhad (“TENAGA”), Westports Holding Berhad (“WPRTS”) and Zhulian Corporation Berhad (“ZHULIAN”). The warrants will be listed on Monday, 27 January 2014 with an issue size of 100 million each. This tranche features a mixed bag of companies which are expected to perform for various reasons. The Malaysian telecommunication sector may see some key developments in 2014. Higher adoption of smart devices and wider 3G and 4G service coverage is expected to drive industry growth. The government’s subsidy rationalisation policies are expected to benefit TENAGA and MSM in 2014 as the effect of higher electricity tariffs and sugar prices is reflected in the companies’ earnings. ASTRO is Malaysia’s leading integrated consumer media entertainment group. It has 3.6 million subscribers and 53% penetration rate of Malaysian households. Maybank Research has a BUY call on ASTRO for its stable subscriber base and resistance to inconsistency of advertising expenditure. AXIATA is a multinational mobile operator with presence in 9 countries and 215 million subscribers across Asia. A potential catalyst for AXIATA is its telecommunication tower divestment exercise. Page 1 of 5 DIGI is the third largest mobile operator in Malaysia with 10.5 million subscribers.
    [Show full text]
  • Corporate Social Responsibility to Reflect Organization‟S Corporate Identity: a Content Analysis
    Journal of Economics, Business and Management, Vol. 1, No. 1, February 2013 Corporate Social Responsibility to Reflect Organization‟s Corporate Identity: A Content Analysis Musdiana Mohamad Salleh, Nabsiah Abdul Wahid, and Malliga Marimuthu effort in integrating their stakeholders‟ social and Abstract—The authors propose corporate social environmental expectations and/or concerns into their daily responsibility (CSR) as a useful element in reflecting an operations and their interaction with the stakeholders. organization’s corporate identity (CI) to its target audiences. The inclusion of CSR highlights organization’s role as a ‘good’ B. Corporate Identity citizen in society and is the basis for any beneficial exchanges Corporate identity (CI) has been used as the basis for other between the parties. Content analyses on CSR of 10 top ranked various corporate level concepts like image, reputation or Malaysian companies supported this proposition. corporate communications; and is even considered Index Terms—Corporate social responsibility, corporate fundamental in corporate marketing field [1]-[2]. The identity, content analysis. traditional VI perspective sees CI being used at the early stage of organization‟s operation as it becomes the mean for CI transmission e.g. through logos, brand images and other I. INTRODUCTION visual manifestations representing them [3]. CI has evolved The issue on how corporate identity (CI) is reflected on from this definition from focusing only on the minor organization‟s stakeholders is acknowledged that since elements of the organization to now emphasizing more on the mid-twentieth century, attempts to it have emerged from core businesses, strategy, structure and culture [4], hence the three perspectives; visual image (VI), corporate personality popularity of CI definition usage from the CP and CC (CP) and corporate communication (CC) perspectives [1] and perspectives; as these perspectives believe that CI is made up [2].
    [Show full text]