Announcement Details : FY2009 Headline KPIs
| FY2009 Headline KPIs |
Targets
|
| Revenue Growth (%) |
6% ~ 11%
|
| Earnings before Interest, Tax, Depreciation and Amortisation (“EBITDA”) Growth (%) |
4% ~ 6%
|
| Average Return On Equity (“ROE”) (%) |
4%§
|
Notes§
- Average ROE calculation is based on Axiata’s enlarged equity post Rights Issue and calculated as Profit after Taxation and Minority Interest (“PATAMI”)/Average Capital and Reserves attributable to Equity Holders of Axiata
- Average ROE excludes the assumption of any impairment on any of the Group’s investments during FY2009
- Average ROE excludes the inclusion of any one-off gain or loss arising from the divesture exercise of Spice Communications Limited which is expected to be completed in 2009
In establishing the range for FY2009 Headline KPIs, the Management of Axiata has taken into consideration the following challenges:-
- Increasing competition in the mobile market space of the Group’s major operating countries (“Major Opcos”) of Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia which may affect the revenue performance of the Major Opcos operating in these countries.
- Concentration of the Group’s business activities is in the emerging markets of South East Asian region. The Group’s operating revenues, financial performance as well as business growth are inter-alia, dependant on the growth of these economies, political stability and social developments in these markets.
- Currency volatility, liquidity shortages and fluctuation of interest rates may have a material effect on the economies of many countries in the Asia Pacific region in general, and in particular, the South East Asia in particular. These factors will affect the overall performance of the Group.
Moving Forward
The telecommunications industry will remain challenging and competitive in 2009 with new operators in some countries, and continued offerings of innovative, attractive and competitive packages by industry players. The Group will continue on its twin engines of growth strategy whereby it will add value in its existing portfolios and complement the same with additional assets on an opportunistic basis. Axiata Corporate Centre has been significantly strengthened with a full Management Team, comprising of international talents aiming to deliver tangible benefits for the Group’s performance in 2009. Performance management reporting and processes have been improved, best-in-class human capital processes and disciplines are in the advanced stage of implementation.Synergy initiatives are also in progress with some results and strong governance processes have also been implemented.
FY2008 Headline KPIs Performance
| FY2008 Headline KPIs |
Targets
|
Actuals
|
| Revenue Growth (%) |
16
|
13.5*
|
| EBITDA Margin (%) |
42
|
38.4
|
| Average ROE (%) |
14
|
4.8
|
Notes:
* Normalized year-on-year revenue growth for 2008 was 20.3% at constant currency
§ Calculated as PATAMI/Average Capital and Reserves Attributable to Equity Holders of Axiata
The Group did not achieve its FY2008 Headline KPIs due to the following factors:-
- The economies of most operating countries in which the Group has operations exhibited primary and secondary downstream effects resulting from the global economic crisis. Early impacts include devaluation of currencies, global demand contraction, liquidity constraints and volatility of interest rates. Consequently, these factors had resulted lower reported translated revenue in Ringgit Malaysia at Group level.
- Successive quarters of inflation (up to 6 quarters in of some operating markets) have resulted in the escalation of direct costs and operating expenses. Hence, lower EBITDA margin at Group level.
- Lower ROE attributable to lower performance impacted by FOREX loss and lower earning contribution from associates.
This announcement is dated 27 April 2009. |
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