Financial Outlook

On 16 April 2025, Group completed the merger of XL and Smartfren (“XLSMART”) in Indonesia as disclosed in Part A, Note 11(b) of this announcement and the merged entities, XLSMART is a key associate company of Axiata Group, with an effective shareholding of 36.9%. Due to material changes to the Group’s portfolio which is in line with Axiata 5*5 strategy, the Group is maintaining the Headline KPI on EBIT Growth of high single digit, which is more reflective on the business performance.

Axiata remains committed to its 5*5 Strategy with focus on growing yields through better cashflows and profits. Focus in Digital Telcos is on realising merger synergies (Celcom – Digi, Dialog – Airtel, XL – Smartfren) and strengthening business and operational resilience in frontier markets. In Infrastructure, (EDOTCO and Link Net), focus is on sustainable value creation, by achieving CAPEX & OPEX excellence, managing gearing and improving asset utilisation. In Digital (ADA, Boost, Axiata Digital Labs), the Group focuses on scaling the businesses across the existing and new footprint to enable value illumination.

The Group has realigned its portfolios into (1) long-term strategic holdings (Digital Telcos of CDB, XLSMART, Smart, Robi, Dialog) which will focus on growing long-term cashflows, and (2) mediumterm value illuminator and monetisable holdings (EDOTCO, Link Net, ADA, Boost) which will attract external capital to improve their business sustainability and provide proceeds to reduce debt and fund new profitable growth opportunities.

Barring any unforeseen circumstances, particularly in relation to the challenging geopolitical environment, including uncertainties from US tariff impact, the Board of Directors believes the Group is on track to meet its EBIT growth guidance for the financial year ending 31 December 2025.