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SHAPING THE FUTURE
Axiata Group Berhad | Annual Report 2016
017
GROUP STRATEGY:
JOURNEY TOWARDS A NEWGENERATION DIGITAL CHAMPION
Axiata has completed two distinct phases since our inception as an independent company in 2008. With the conclusion
of Phase 2 in 2015, we have established Axiata as a Regional Champion providing mobile services to approximately
320 million customers in ten countries, as well as being a responsible corporate citizen and committed long-term investor.
Today, Axiata generates an annual revenue of over RM21 billion with Earnings Before Interest, Tax, Depreciation and
Amortisation (EBITDA) of RM8.0 billion and market capitalisation of RM42.3 billion. We rank number two in subscriber
base, number four in revenue and number seven in market capitalisation against other regional mobile players within
Southeast Asia and South Asia.
In Phase 3, ‘Axiata 3.0’ is the playbook guiding the Group’s key strategic decisions on Axiata’s journey to become a
New Generation Digital Champion by 2020.
Axiata 3.0 Capturing and Adopting to Technology Shifts
The telecommunications industry is witnessing a structural shift in
value from providing access and connectivity infrastructure to offering
applications, content, platforms and solutions. Access – high quality
connectivity services – is a hygiene factor for which economies of scale
and cost optimisation have become critical. Content and Applications are
driving data consumption and Platforms are enabling new solutions and
business models.
Coupled with this value shift, demographics in ASEAN and South Asia
have moved to the point that Millennials, or Digital Natives, are now the
largest consumer group making spending decisions on telecoms access,
media services and utilising applications enabled by new digital platforms.
This segment of customers has vastly differing values, attitudes and
behaviours in the way they engage with their product and service
providers, make purchase decisions, and how they consume digital
content and services.
Similarly, Enterprises – or the Business to Business (B2B) segment – in
ASEAN and South Asia are embracing digitisation and automation at such
a rate that Internet of Things (IoT) applications and Cloud or platform
based Information and Communications Technology (ICT) solutions are
seeing rapid growth. Compared to the consumer segment experiencing
flat to single-digit growth, especially with regards to the access business,
the B2B segment for IoT and ICT is enjoying double-digit compound
growth which is certain to be sustained over the coming years.
It is in this context that Axiata 3.0 has evolved to a clearer heading of
the core composition and priority growth pillars of the business moving
forward. In line with our core business pillars of Digital Communications
and Connectivity; Enabling Infrastructure and Platforms; and Digital
Pre 2008
≤ 2007
Phase 0
‘07/‘08
Phase 1
‘08/‘10
Phase 2
‘11/‘15
“Axiata 3.0”
‘16/‘20
Building the
Footprint
Forming an
Independent Company
Building a New
Distinct Company
Creating a Regional
Champion
Building the New Generation
Digital Champion
(Defining the Company)
(Redefining the Group)
(Reimagining the Enterprise
AND the Industry)
Applications and Services, Axiata 3.0 has been further developed to define
the composition of Axiata as a New Generation Digital Champion by 2020.
Axiata 3.0 defines the Group as a triple core growth engine
comprising:
Within this strategic framework, Axiata will continue its objectives of
transforming the core focused on digitisation and product leadership;
expanding the core through investments and organic capability
development; and selectively acquiring new core via opportunities to
strengthen our market positions, undertake market repair and grow
Axiata’s footprint.
Core 1:
Mobile &
Convergence
Mobile and Fixed Convergent Access, as
number one or strong number two in key
markets – operating lean and at maximum
operational efficiency
Core 2:
Solutions &
Service
Four pillars of Fintech; Media and Entertainment;
Adtech and Analytics, Enterprise and IoT – to
invest in for rapid growth
Core 3:
Enabler &
Platform
Comprising Passive and Active Infrastructure
assets such as edotco; and Enabling
Connectivity Platforms such as our globally
awarded Mobile Internet Fulfilment Exchange
(MIFE) network Application Programme
Interface (API)