Beyond Short-Term Profits
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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 which leverages local industries, entrepreneurs, vendors and talents. This is designed not only billion 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 Axiata (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), Dialog Axiata 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