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Back 20 Feb 2014
Type Announcement
Subject OTHERS
Description AXIATA GROUP BERHAD (“AXIATA”) – HEADLINE KEY PERFORMANCE INDICATORS (“KPIs”) FOR FINANCIAL YEAR ENDING ("FY") 31 DECEMBER 2014 AND ACHIEVEMENT OF HEADLINE KPIs FY2013
Axiata wishes to announce its FY2014 Headline KPIs
These Headline KPIs have been set and agreed by the Board of Directors and Management of Axiata Group (“Group”) and shall not be construed as forecasts, projections or estimates of the Group or representations of any future performance, occurrence or matter as they are merely a set of targets/aspirations of future performance aligned to the Group's strategy and which have been derived on the assumptions that the Group shall operate under the current business environment under which they had been determined.

FY2014 Headline KPIs

Proposed FY2014
Headline KPIs*
Revenue Growth (%)
10.1%
Earnings before Interest, Tax, Depreciation and Amortisation (“EBITDA”) Growth (%)
1.8%
Return on Invested Capital (“ROIC”) (%)
9.3%
Return on Capital Equity (“ROCE”) (%)
7.8%

*The above Headline KPIs are based on 2013 average forex rates for the respective currencies. However, based on January 2014 average forex rates these Headlines KPIs are estimated to be Revenue 6.9%, EBITDA -1.0%, ROIC 9.0% and ROCE 7.5%

In establishing the FY2014 Headline KPIs, the Management of Axiata has taken into consideration the following challenges:-
  • No material change in currency volatility, liquidity shortages and interest rates in the Asia pacific region in general and in the Southeast Asia in particular. Accordingly, Group actual KPI achievement in Ringgit term would be negatively impacted by the strengthening of RM against local currency;
  • No material increase in competition in the mobile market space of the Group’s major operating countries;
  • No material regulatory changes impacting the operating companies ("Opcos");
  • No material change in CAPEX budget spending in all Opcos; and
  • Excludes new divestment and merger acquisition impact but include full Axis merger impact.

Moving Forward

Moving forward, the Group will remain focused on its long-term transformation strategy which includes new approach to current business and continue to invest aggressively in data and related services. We will also review and improve our cost structure and forex mitigation strategy in order to optimize our financial performance.

FY2013 Headline KPIs Achievements

Below are the Axiata Group achievements versus FY2013 Group Headline KPIs:-

Headline KPIs
FY2013
Headline KPIs (%)
FY2013
Achievement at Constant Currency
Revenue Growth
7.6
6.7
EBITDA Growth
0.2
0.6
ROIC
10.3
10.7
ROCE
8.3
8.6
Group exceeded KPI targets (except revenue) at constant currency, amidst challenging market condition and intense competition for financial year ended 31 December 2013. Moderate revenue growth at 6.7% year-on-year, EBITDA exceeded target at 0.6% with careful cost management and execution in new business and investments, ROIC and ROCE exceeded target at 10.7% and 8.6% respectively.

The Group actual results, despite excellent performance by most Opcos, was impacted by XL business operations coupled with adverse forex translation impact of IDR results to RM during the year. Group KPI based on actual results are the following: Revenue growth +4.1%, negative EBITDA growth -2.1%, ROIC of 10.7% and ROCE of 8.6%.

This announcement is dated 20 February 2014.

 


Announcement Info

Company Name AXIATA GROUP BERHAD  
Stock Name AXIATA    
Date Announced 20 Feb 2014  
Category General Announcement
Reference No AG-140220-8BF57