questions raised and provide clarification as required by the shareholders. To
ensure transparency, replies to queries made by organizations representing
minority shareholders, namely MSWG are alsomade available and distributed
at the AGM.
At the AGMs, all valid proxy appointments are properly recorded, counted
and reviewed by the external auditors. The Company also appoints its
external auditors to act as independent scrutineers for its general meetings.
The appointment comes under a separate engagement letter where
the scope of work includes verifying number of shares represented by
shareholders and proxy holders present and voting at general meetings as
shown in proxy forms and polling slips against Register of Members/Record
of Depositors determined for general meetings, administering poll, counting
of votes by show of hands and tabulating the results.
The Board will consider the use of electronic voting for polling, to facilitate
greater participation taking into account its reliability, applicability, cost and
efficiency.
While members of the media are not invited into the AGM meeting hall,
a media conference is usually held immediately after the AGM where the
Chairman, President & GCEO and GCFO update media representatives on
the resolutions passed and answer questions on matters related to the
Group. This approach provides the Company with a more efficient way to
address both the shareholders and the media. The results of the voting for
each resolution is promptly announced to the attendees after each voting
process.
Dividend Policy
Axiata’s existing dividend policy provides that the Company intends to pay
dividends of at least 30% of its consolidated PATAMI and endeavours to
progressively increase the payout ratio over a period of time, subject to a
number of factors including business prospects, capital requirements and
surplus, growth/expansion strategy, considerations for non-recurring items
and other factors considered relevant by the Board.
As the Company is a holding company, its income and therefore its ability
to pay dividends, is dependent upon the dividends received from its
subsidiaries, which in turn would depend on the subsidiaries’ distributable
profits, operating results, financial condition, capital expenditure plans and
other factors that the respective subsidiary Board deems relevant.
Whilst the dividend policy reflects the Board’s current views on the Group’s
financial and cash flow position, the dividend policy will be reviewed from
time to time. It is the policy of the Board, in recommending dividends, to
allow shareholders to participate in the Company’s profits, as well as to
retain adequate reserves for future growth.
On 16 February 2016, the Board declared a Final Dividend of 12 sen, implying
a total dividend payout ratio of 85% (based on FY15 normalised PATAMI
of RM2.1 billion (including the interim dividend of 8 sen per Axiata Share
paid last year on 29 October 2015). The total dividend of 20 sen for the
financial year ended 31 December 2015 would tantamount to a cash outflow
of approximately RM1.76 billion with a dividend yield of 3.1% (based on a
three-month VWAP). The Final Dividend is subject to the approval of the
shareholders at this AGM.
With the view to retain cash for future use, Axiata had in 2015 implemented
its first Dividend Reinvestment Scheme in which shareholders were given an
option to elect to reinvest the whole or part of the dividend declared by the
Company for FY14 final dividends and FY15 interim dividends, with electable
portion at 100%. 47.75% and 86.72% of the final and interim dividend
respectively were reinvested into shares.
FY14 Final Dividend
Total Cash Dividend Paid: RM630 million, Dividend Reinvested: RM575 million
FY15 Interim Dividend
Total Cash Dividend Paid: RM92 million, Dividend Reinvested: RM603 million
Key Performance Indicators
On 16 February 2016, the Company announced the Headline KPIs for the
financial year 2016 set and agreed by the Board and Management of the
Group as follows:-
Headline KPIs
Headline KPIs
(based on Bloomberg*
estimate in mid Oct’15
for 2016 forex)
Headline KPIs
(based on constant
currency)
Revenue Growth
12.2%
9.8%
EBITDA Growth
16.0%
13.7%
ROIC
6.8%
6.6%
ROCE
6.1%
6.0%
*1 USD = RM4.2
In establishing 2016 Headline KPIs, the Management of Axiata has taken into
consideration the following assumptions and challenges:-
i)
No material increase in competition in the mobile market space of the
Group’s major OpCos;
ii) No material regulatory changes impacting OpCos;
iii) 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;
iv) No material change in CAPEX budget spending in all operating
companies;
v) Timing of NCell/M&A consolidation and integration into Axiata;
vi) Excludes divestment impact; and
vii) Overall global and domestic economy as well as consumer spending.
Moving forward in 2016, the Group will continue to face challenges and
remains cautious in executing its business strategies including integration
of Ncell in Nepal. Amongst the key risks facing OpCos include regulatory
challenges (e.g. pricing and fee structure uncertainties as a result of spectrum
reallocation in Malaysia etc.), political risks, intense competition and foreign
currency fluctuations. The Group will continue to focus on its long-term
transformation strategy which includes a new approach to current business,
venturing into new businesses adjacent to current business, selectively
acquiring new assets and managing existing business via data leadership
axiata group berhad | annual report 2015
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