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Axiata Group Berhad | Annual Report 2016
MANAGEMENT DISCUSSION & ANALYSIS
030
KEY PERFORMANCE INDICATORS
Axiata is firm on setting its Key Performance Indicators (KPIs) based on the Group’s strategic direction and vision of being a New Generation Digital
Champion. Below is our progress on the KPIs measured in 2016.
1
Based on Bloomberg estimate in mid-Oct 2015 for 2016 forex (USD = RM4.20)
2
Based on constant currency
3
Based on actual currency
2016 has been a challenging year for Axiata, as it was
adversely impacted by weaker performance at Celcom,
XL, Robi and Idea, as well as losses in digital ventures and
forex. However, the Group’s performance was cushioned
by the consolidation of Ncell in Nepal on 11 April 2016 and
continued excellent performance from Dialog and Smart.
Compared to previous years, 2016 saw worse than
expected competition and disruptions in Malaysia, India
and Singapore. Celcom’s overall recovery was delayed
by shrinking industry growth in Malaysia, whilst Idea
experienced unprecedented disruption in the Indian
market. In Indonesia, XL faced accelerated changing
consumer behavior in the substitution from legacy
services to data as well as distribution challenges, coupled
with brand and network perception gaps.
In 2016, the Group faced regulatory challenges in Nepal,
Sri Lanka and particularly in Bangladesh which resulted
in the prolonged completion of the Robi-Airtel merger
till the end of the year. Whilst the Group will harness the
synergy benefits in the coming years, in 2016 it was hit
with merger fees and integration costs arising from this
business combination.
FY2016 KPI
PERFORMANCE
ROIC
ROIC is defined as
EBIT less tax over
average invested
capital.
The Group fell short of 2016 target by 2.0
1
percentage
point.
The Group fell short of 2016 target by 2.0
2
percentage
point.
Revenue Growth
Revenue growth
measures overall YoY
growth of the Group.
EBITDA Growth
EBITDA growth
measures overall YoY
growth of the Group.
ROCE
ROCE is defined as
EBIT less tax over
average capital
employed.
The Group fell short of 2016 target by 1.9
1
percentage
point.
The Group fell short of 2016 target by 2.0
2
percentage
point.
2016 KPI
1
2016 KPI
1
12.2%
16.0%
FY2016
1
FY2016
1
8.1%
9.7%
2016 KPI
2
2016 KPI
2
9.8%
13.7%
FY2016
2
FY2016
2
5.4%
6.8%
FY2016
3
FY2016
3
8.5%
10.0%
2016 KPI
1
6.8%
FY2016
1
4.8%
2016 KPI
2
6.6%
FY2016
2
4.6%
FY2016
3
4.5%
2016 KPI
1
6.1%
FY2016
1
4.2%
2016 KPI
2
6.0%
FY2016
2
4.0%
FY2016
3
4.0%
2016 IN REVIEW: KPI, INVESTMENT PERFORMANCE &
PRUDENT AND DISCIPLINED DIVIDEND PAYOUT