AXIATA GROUP BERHAD (“AXIATA”) – HEADLINE KEY PERFORMANCE INDICATORS (“KPIs”) FOR FINANCIAL YEAR ENDING 31 DECEMBER 2011 AND ACHIEVEMENT OF HEADLINE KPIs FY2010
Announcement Details/Table Section :
FY2011 Headline KPIs
These Headline KPIs have been set and agreed upon 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 of future performance aligned to the Group's strategy and derived on the assumption that the Axiata Group shall operate under the current business environment.
These headline KPIs reflect Axiata Group’s past performance and long term strategy, and are based on Axiata Group’s consistent progress in the previous year as the Axiata Group works towards outperforming major competitors whilst achieving better returns for shareholders in all markets.
FY2011 Headline KPIs
Revenue Growth (%)
10.0
Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) Growth (%)
10.3
Return on Invested Capital (ROIC) without Associates (%)
16.5
ROIC with Associates (%)
12.6
In establishing the FY2011 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 of Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia which may impact the revenue performance in these countries. Notwithstanding this, the operating companies are expected to perform better than the industry in their respective countries.
Concentration of the Group’s business activities is in the emerging markets of South and Southeast Asian region. The Group’s operating revenues, financial performance as well as business growth is dependent on the growth of these economies, as well as the political and social developments in these countries.
Currency volatility, liquidity shortages and higher interest rates would materially and adversely affect the economies of many countries in the Asia-Pacific region in general, and in Southeast Asia in particular. These factors will impact the overall performance of the Group.
No significant change in foreign exchange rate versus actual exchange rate in FY2010.
Moving Forward
The FY2010 results reflect our continued focus and diligent execution of strategy. In order to sustain the year’s strong performances, we will be maintaining our tight focus on capital discipline in 2011.
Alongside this, we will also be focusing on data which we expect to be the main driver for growth, especially in our more mature markets. Both Celcom and XL have seen data’s contribution to revenue grow significantly from a year ago and we expect this to continue in 2011, with an additional focus on ‘small screen’ and value added services. In our emerging markets we expect subscriber growth to continue strongly, especially in fast growing markets, such as Bangladesh, and India.
FY2010 Headline KPIs Achievement
For FY2010, the Axiata Group achieved its Headline KPIs as follows:-
FY2010 Headline KPIs
FY2010 Achievement
Revenue Growth (%)
12.1
17.3
EBITDA Growth (%)
14.1
30.2
ROIC without Associates (%)
10.7
15.9
ROIC with Associates (%)
NA
11.8
Key features of FY2010 Headlines KPIs achievements include:-
Year on year (“YoY”) revenue growth resulted from overall group performance from key operating companies, particularly Celcom, XL and Robi showing a growth of 8%, 27% and 31% respectively.
EBITDA growth improved substantially, mainly from XL and Dialog with YoY growth of 50% and 82% respectively, mainly driven by higher revenue and effective cost management initiatives.
