Sustainability & National Contribution Report 2019 17

BEYOND SHORT-TERM PROFITS Long-Term Digital Nurturing Digital Sustainability & National Contribution Report 2019 Investment Ecosystem Future Leaders Inclusion 18 Investing Long-Term In Our Markets Overview

As a leading digital telecommunications group in ASEAN and South Asia, we are committed to Gross Domestic Product (GDP) of six countries where we have established a digital telco delivering value which goes beyond short-term gains in all our markets. Our presence in most operation. For every USD1 spent on capex, we generated between USD5 to USD7 to the GDP in each of our markets spans over 20 years. Since 2017, we have contributed over USD28 billion to the country.

We have been able to deliver this value by providing digital and connectivity services which build and empower inclusive societies. This is anchored on the development of a digital ecosystem billion which leverages local industries, entrepreneurs, vendors and talents. This is designed not only USD8.4 to benefit our own supply chain, but also to value-add to the respective economies, where GDP Contributed our world-class connectivity networks deliver inclusive and beneficial products and services.

As a member of the GSMA, we are also committed to working within our industry to further capex + opex investment deliver transformative impact by participating in global industry initiatives. These thematic initiatives develop insights and tools to build on our commitment of social inclusion by billion connecting everyone and everything. We have committed to three of GSMA’s initiatives USD4.7 which are driven by our OpCos:

Investing Humanitarian Connectivity Charter (“BAC”) Total taxes paid to governments Long-Term Comprising of three principles, focusing on preparedness, scale and collaboration, in Our USD1.3 billion signatories of the Charter commit to support improved access to communication and Markets information for those affected by crisis in order to reduce the loss of life and positively contribute to humanitarian response.

Employed Connected Women Commitment Initiative

12,976 employees Aims to reduce the gender gap in mobile internet and Mobile Money services and unlock across ASEAN and South Asia1 significant commercial and socioeconomic opportunities. Zero Emissions by 2050

Supported approximately An industry-wide climate action roadmap, to achieve net-zero greenhouse gas (GHG) emissions by 2050, in line with the Paris Agreement. 600,000 jobs across Asia2

Notes: 1 Total employee headcount at (including ADL, ADS and Suvitech) as at 31 Dec 2019 was 12,976 2 This is only from digital telco operations and based on the National Contribution Report 2019. More information can be found on Pg. 48

SNCR For more information on these initiatives, please refer to Pg. 26, 41-43, 46 Long-Term Digital Nurturing Digital Sustainability & National Contribution Report 2019 Investment Ecosystem Future Leaders Inclusion 19 Investing Long-Term In Our Markets Bumiputera Empowerment Agenda In Malaysia

We are proud to represent Malaysia as a home-grown champion and view it as our responsibility to In supporting this initiative, we have put in place a comprehensive investment programme aimed at support the Bumiputera Empowerment Agenda (BEA). The BEA focuses on providing support for building the capacity and capability of local vendors, providing financial support to a new generation entrepreneurs, employees and students to ensure the country’s largest community gains access to of technopreneurs, and offering meaningful employment to university graduates. socioeconomic opportunities which reflect their representation in the nation.

Our Axiata Partner Development Programme aims to Tuisyen Pintar Harapan in Bumiputera 1,500 RM8.3 million collaboration with Yayasan Pelajaran develop four Bumiputera National Champions, e-entrepreneurs trained and in employee training and MARA since 2017 two Regional Champions and one Global two digital platforms (DesaMall development SPM candidates from Champion by 2020 and Desa Harapan) developed in 4,500 collaboration with the B40* families from 232 Ministry of Rural participating schools at Development 45 centres nationwide

Local Partner Development Programme has supported RM100 million We have procured RM489 million Axiata Digital Innovation Fund (ADIF) capacity building of 50 Bumiputera vendors, from Malaysian companies, of which 67% of supports the development of innovative businesses and strategic RM329 million was spent on digital businesses, including Bumiputera partners technopreneurs Bumiputera companies

RM20.34 million (35%) 8, 47% Since 2014, we have Our Bumiputera distributors Since 2016, we have collaborated with

No. of Investment have recorded the Ministry of Higher Education and Investment Value provided 2,891 of undergraduates RM685 million 50 institutions RM37.69 in physical distribution higher learning, to develop the digital 9, 53% with opportunities for internship and million (65%) entrepreneurship mindset Bumiputera Non-Bumiputera training, the majority of among Bumiputera whom are Bumiputera RM university students

Note: * Bottom 40% of monthly household income earners Long-Term Digital Nurturing Digital Sustainability & National Contribution Report 2019 Investment Ecosystem Future Leaders Inclusion 20 Driving The New Digital Ecosystem Supporting Start-Ups

We have invested over RM200 million in digital venture funds in Malaysia, Sri Lanka and we work with local strategic partners to identify, fund and coach local start-ups with high growth Cambodia. Respectively, through the Axiata Digital Innovation Fund (ADIF), potential. The funds have benefited almost 30 start-ups, contributing to the creation of local job Digital Innovation Fund (DADIF), and Smart Axiata Digital Innovation Fund (SADIF), opportunities, and driving the growth of the local digital economy.

ADIF DADIF SADIF

Investees Micro-insurance AgTech 6% Retail 29% 17% 16% 13% 13% 6% Chatbot Services Health 12% 13% EduTech Education Digital Media 16% ADIF 17% DADIF 25% SADIF FinTech 6% Advertising Big Data 13% IoT News Logistics 17% Logistics 17% Agriculture 13% 13% 41% Travel Mobile Gaming

Launch Date 2014 2018 2017 (In collaboration with Malaysia Venture Capital Managed by BOV Capital In collaboration with Forte Insurance as co-investor Management Bhd and Johor Corporation) Managed by Mekong Strategic Partners

Fund size RM100 million USD15 million USD5 million

Investment Tech start-ups Entrepreneurs committed to building digital companies Cambodian-based digital companies and focus 53% investment in Bumiputera technology in Sri Lanka start-ups from early to growth stage of development start-ups DADIF has committed SLR497 million (USD2.57 million) in seven companies SADIF already invested USD2 million in eight tech start-ups

2019 Invested in 17 companies in retail, services, SLR415.36 million in gross revenue from first Expanded portfolio with four more tech outcomes education, media and travel sectors 4 companies start-ups Investments recorded an average revenue Exited from an investment with capital gain of USD2.7 million revenue generated by all Year on Year (YoY) of 41% SLR87 million eight start-ups 384 jobs created 1,434 jobs created by all eight start-ups Expanded portfolio in three start-ups

http://www.intrescapital.com/funds.html http://dif.lk/ https://sadif.com.kh/ Long-Term Digital Nurturing Digital Sustainability & National Contribution Report 2019 Investment Ecosystem Future Leaders Inclusion 21 Driving The New Digital Ecosystem Enhancing Digital Skills For All In Cambodia

The digital ecosystem and economy in Cambodia is rapidly taking shape with the emergence of new suite of programmes, Smart Axiata is promoting digital inclusion by ensuring digital native Cambodians business activities in digital payment, online entertainment and e-commerce. Through a comprehensive are equipped to participate and benefit from this new digital economy. 1 TINY CODING CATS 4 DIGITAL LITERACY AND INTERNET SAFETY PROGRAMME A six-week coding programme designed for Cambodian students A pilot programme with Google and GSMA aimed at promoting between 8 and 12 years old to be curious, resourceful and digital citizenship by increasing digital literacy and awareness of self-motivated coders. internet safety among high school students. Engaged with 100 students Engaged over 1,500 students and teachers in Mentorship from 24 instructors three provinces Online video campaign achieved over 770,000 views Exposed students to video content development skills 2 SEEDSTARS PARTNERSHIP Engaged SmartEdu alumnus to develop and deliver content A collaboration on various programmes aimed at nurturing entrepreneurship in Cambodia. Seedstars Lean Launchpad engaged with SMARTSPARK more than 90 high school students to ideate 5 A three-month programme which supported 20 new start-up ideas with the help of over young innovators to further develop their start-up 20 mentors from SmartStart and business to address the UN SDGs in Cambodia. SmartEdu alumnus 71 participants in cohorts 2-4 in 2019 Seedstars Phnom Penh brought together 15 Enhancing early-stage start-ups and more than Winner from each cohort awarded USD3,000 Digital Skills 10 local as well as international for all in mentors.Top start-up selected to SMARTSCALE Cambodia participate in the Asia and World Summits 6 A three-month programme in collaboration Seedstars Asia Summit 2019 convened with Mekong Strategic Partners, Seedstars and 22 regional start-ups alongside over 350 Development Innovations to help early-stage start- ecosystem builders, corporates, investors ups accelerate their next investment milestone. and start-up enthusiasts in Cambodia Start-ups are provided with access to local and international mentors, guided workshops, one-on- SMARTSTART YOUNG INNOVATOR PROGRAMME 3 one sessions, business and investor networking as An annual programme with Impact Hub, aimed at enabling well as targeted training and assistance. They are and empowering young Cambodian talents to develop also given exposure to funding opportunities from their tech and digital ideas into viable enterprises. programme partners. Engaged with more than 120 university Shortlisted 11 Cambodian-based students every year since 2017 start-ups Launched 15 prototypes to the market Demo Day attended by 20 investors and and disbursed USD65,000 in cash prizes 100 members from the local ecosystem since 2017 Mentorships from 20 tech leaders in 2019 Another 5 university start-up ideas went through a six-month incubator programme in 2019 Long-Term Digital Nurturing Digital Sustainability & National Contribution Report 2019 Investment Ecosystem Future Leaders Inclusion 22 Building Future Leaders Axiata Young Talent Programme

Since 2011, we have committed RM100 million over ten years to focus on young talent leadership of Attitude and Character, and Emotional Intelligence as the base, followed by three Critical Skills through the Axiata Young Talent Programme (AYTP). The AYTP is our unique leadership initiative (Critical Thinking, Communication, Creativity), and Leadership Competencies. As of this year, AYTP has designed for driven young Malaysians eager to learn and have the capacity and ambition to be successfully been replicated in our footprint countries of Cambodia and Indonesia. future corporate leaders. Each track under AYTP is anchored to the AYTP Framework which consists

CR AYTP Malaysia XL Future Leaders (XLFL) in Indonesia ITICA L T HI Over 2,149 young talented Malaysians have Launched in 2012, XLFL has reached over 99,000 students NK been impacted through three leadership development tracks. across all provinces of Indonesia. IN G Indonesia’s most comprehensive and A five-year programme in partnership longest running youth leadership School with Kolej Yayasan Saad in Melaka. XLFL programme, targeting top university Leadership Open to all Malaysian secondary school Global talents students who are looking to develop Development Leaders Programme acceptance rate of 1% their critical skills and command of A In 2019, 150 students from 45 universities E Programme T leadership competencies. M across 20 provinces were selected T

O I T T U Full tuition and year-long scholarship I O D XL that provide students the necessary C N E A two-week ‘summer camp’ style

R Scholarship resources for personal development A A leadership development programme

E University L Camp to extend their skill sets beyond the N for young Malaysian undergraduates

A Leadership I D classroom

T studying locally or abroad that

N

I Development

C

T provides them the opportunity to learn

V H

E Programme critical skills and knowledge required of Online platform to bring the XLFL Global I

T L

A a future CEO. Leaders programme to everyone. The

Y L

R eLearn.id

I online platform has 29 courses and

LEADERSHIP A G

C

COMPETENCIES E 38,000 users

T N

E

C

R A two-year leadership development E Young CEO programme for young Malaysian SmartEdu University Student Development Programme (USDP) professionals that provides them the Development in Cambodia Programme opportunity to master critical skills and knowledge required of a future CEO. Launched in 2018, Smart Axiata’s USDP has reached 96 Cambodian students studying at 16 universities in Cambodia, UK and USA.

N A 13-day stay-in bootcamp that provides theoretical, experiential, IO personal and relational development opportunities through T AYTP A community of over 1,300 AYTP A learning-by-doing as well as real case business simulations C Alumni alumni that supports each other in their NI 48 top Cambodian students selected annually U journey to becoming nation-builders of M Association 16 students from two cohorts have been selected for a two-month OM tomorrow. C work placement at Axiata Long-Term Digital Nurturing Digital Sustainability & National Contribution Report 2019 Investment Ecosystem Future Leaders Inclusion 23 Uplifting Communities Through Digital Inclusion Empowering The Underserved Through Financial Inclusion

It is estimated that more than one billion people in Asia are “unbanked”, with no access to formal New digital transactional platforms offer convenient and vastly less expensive ways to bring financial financial services1. They do not participate in formal employment, have no bank account and thus are services to the underserved and unbanked. Through our e-wallets, digital payments, micro-credit and not able to engage in any type of commerce. Underserved communities are also disadvantaged from micro-insurance products, we support the underserved, help to scale micro-businesses, and offer opportunities for upliftment due to their limited awareness on or access to financial services. insurance protection to more people.

Digital wallets Our service platforms in Malaysia

OUR SERVICE PLATFORMS

CAMBODIA Boost – we help merchants, whether they operate hawker stalls or retail outlets, to receive payments and manage cash flow in just one place

Aspirasi – we empower the micro and SME community to forge a path of SRI LANKA dynamic growth. Our seamless digital financing platforms offer micro-finance > 777,000 and micro-insurance services to help the underserved transactions community achieve their business goals nationwide

> 134,000 PRODUCTS LAUNCHED users 3.5 million customers 22,000 merchants Working Capital Financing – provided to highly underbanked micro- enterprises to support purchase of simple fixed-assets and raw materials

Supply Chain Financing – provided to small-enterprises via tripartite MALAYSIA factoring arrangement with principal distributor

Invoice Financing – provided to e-commerce merchants for cash flow management issues with the ability to receive cash before invoice settlement > 5 million date customers Insurtech products – affordable insurance and takaful products for consumers, micro-entrepreneurs and SMEs > 125,000 merchants

46.5 million DIGITAL AT ITS CORE transactions 100% end-to-end digital financial services

3 min application process

Disbursement of funds within 48 hours

Source: 1 https://blogs.worldbank.org/allaboutfinance/financial-inclusion-asias-unbanked Long-Term Digital Nurturing Digital Sustainability & National Contribution Report 2019 Investment Ecosystem Future Leaders Inclusion 24 Uplifting Communities Through Digital Inclusion Transforming Agriculture And Fishery Practices

Communities working in the agriculture and fishery sector constitute a large percentage of the region’s poor. They We provide digital services and solutions which assist the day-to-day activities of farmers and fishermen, such as often have challenges in accessing financial services and have completed little education. By providing accessible, sharing of best agricultural and fishery practices. Our tools also allow farmers and fishermen to access real-time effective and economical farming solutions to these communities, we can help to uplift their wellbeing. market prices, establish digital payment processes and marketplaces, help them to modernise their work, and create opportunities to boost their livelihoods.

SAVIYA DESAMALL SRI LANKA MALAYSIA

Sri Lanka only produces 30- is the connectivity partner of DesaMall@KPLB1, a public private 40% of its local fresh milk demand partnership which provides end-to-end

Leveraging on the success of Govi e-commerce and digital Mithuru, Dialog launched Saviya, marketing training to small, a mobile-based advisory service for medium and micro agro-enterprises in dairy farmers to improve production order to move their business online capacity, quality of milk produced, 1,400 entrepreneurs registered GOVI MITHURU and health of livestock LAUT NUSANTARA SRI LANKA INDONESIA RM1.3 million sales generated in Provides time-sensitive, 2019 Dialog’s Govi Mithuru is Sri commercially valuable advice via With over 80,000 km of 80% of vendors are women Lanka’s largest mobile text and voice-linked to the lactation coastline, fisheries are an important cycle of dairy cows from pregnancy part of Indonesian livelihood 300,000 daily visits agriculture service to calving providing personalised information Top 5 items sold to farmers Laut Nusantara app aims to increase Empowering over 5,000 a fisherman’s standard of living by • Retail Goods • Beauty and Health Over 600,000 dairy farmers three times and improve their • Toys for Babies safety when out at sea subscribers • Men’s Fashion • Home Furnishings Provides access to database on In partnership with government fishing grounds, accurate weather agencies and industry groups, the forecast, and fuel consumption data service provides good agriculture calculation practices on 21 specific crops, tailored to the location of the farm 25,000 downloads and stage of cultivation 8,433 active users

Note: 1 KPLB - Kementerian Pembangunan Luar Bandar (Ministry of Rural Development) Long-Term Digital Nurturing Digital Sustainability & National Contribution Report 2019 Investment Ecosystem Future Leaders Inclusion 25 Uplifting Communities Through Digital Inclusion Championing Education For Underserved Communities

It is estimated that half of the world’s illiterate population lives in South Asia1. Children from rural areas In recognising the vital role of education in providing catalytic opportunities and ensure the creation often face difficulty in accessing education, while some children have to forego schooling to assist their of lasting socioeconomic change, we provide digital tools and technology targeted at reaching families with income-generating activities. Despite the considerable progress on educational access and disadvantaged children living in the region. Digital technology allows education services to scale rapidly, participation, ensuring inclusive and equitable quality education for all continues to be challenging. and content to be delivered in a cost effective manner.

Providing Empowering Strengthening Nurturing Access to Digital Digital Digital Resources Classrooms Infrastructure Entreprenuers

Robi 10 Minute Dialog’s Nenasa ’s Digital Lab, XL’s Data Quota Celcom’s School, Bangladesh Smart Schools, Nepal Donation, Indonesia Siswapreneur, • Since 2015, 10 Minute Sri Lanka • In collaboration with the • XL Axiata’s customers can Malaysia Ministry of Communication donate their data to digitise School has provided quality • Transforming Sri Lanka’s • Endorsed by the Ministry of education and skills training and Information Technology, education at secondary Education, the programme education ecosystem by schools across Indonesia to more than 360,000 Ncell is setting up digital aims to equip students with changing how classes are • In 2019, over 466 TB of students of all ages every labs in 60 community digital entrepreneurial skills delivered through the use of data was donated day for free schools to enhance quality • Partnered with over digital technology • 1,943 schools installed • Over 850 live classes of education 50 public and private • 153 schools onboarded with routers viewed over • Benefits30,000 academic institutions across Sri Lanka • Over 494,000 school 30 million times students and their • Engaged with over 3,800 • 450 ambassador schools for digital literacy children impacted • Library of 12,440 video teachers trained on students tutorials delivering ‘smart’ education • Over 49,000 quizzes

Source: 1 https://bangkok.unesco.org/content/literacy-rates-rise-one-generation-next-challenges-remain-region Long-Term Digital Nurturing Digital Sustainability & National Contribution Report 2019 Investment Ecosystem Future Leaders Inclusion 26 Uplifting Communities Through Digital Inclusion Empowering Women

Technology and the internet can be a great enabler for women and girls to improve their lives. As a partner to the GSMA Connected Women Commitment Initiative, we are committed to increasing In developing countries, they struggle with affordability and access, and without equal access to the number of female subscribers in our markets. We are working with partners to provide access to technology and the internet, are not able to equally participate in our emerging digital societies. educational content, employment and financial services. We also provide multilingual digital health and wellness messaging platforms to empower women seeking information to improve their quality of life.

Robi Digital Bus Smart’s Technovation • Three-year partnership with Bangladesh’s ICT • A collaboration between USAID, Development Innovations, Division and Huawei Smart Axiata and the Institute of Technology of Cambodia LING AB • Aims to reach 150,000 young women in • An annual 12-week global programme that provides N TIVITY E EC colleges and universities with digital literacy and coding, entrepreneurship and business plan workshops for NN O O entrepreneurship skills Cambodian girls C N • 4 buses deployed • Engaged with over 150 high school girls from two provinces P L I L N • 16,780 students trained in 2019 in 2019 A E T • Worked with 101 institutions of higher learning • Mentorship from more than 20 university students and

F D

O local entrepreneurs I

G

R

I

M

T

EMPOWERING A L

D WOMEN N

N XL’s Sisternet Robi’s Maya Apa Dialog’s Yeheli/Thozhi O

A

I

T • Online platform for self-development, • Digital healthcare and well-being • Connect and ask experts,

G

C

N education, career and lifestyle assistant that connects with doctors, lawyers and I U

D N

I • Online and offline training for Indonesian doctors, therapists and lifestyle counsellors anonymously E

A

R women aged 21–35 years advisors on social and medical issues T • 23,000 active members • 2 million monthly active users • 3,100 monthly active users N ME T • Conducted 27 education classes and • 2 million resolved queries • 230 monthly queries WO EN M trained over 2,000 women in 17 cities • Over 100,000 monthly queries • 2,800 cases resolved PLOY EM • 37,000 active users

Robi-CARE Girls Empowerment Programme • Partnership with CARE Bangladesh to improve lives of adolescent girls in Kurigram district • Target to train and provide mentoring and coaching for 100 adolescent girls on retailing mobile-based products • CARE provided seed-capital, and buy-back guarantee for young girls to start retail business