Investors

Axiata wishes to announce its FY2015 Headline KPIs.

These Headline KPIs have been set and agreed 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/aspirations of future performance aligned to the Group's strategy and which have been derived on the assumptions that the Group shall operate under the current business environment under which they had been determined.

FY2015 Headline KPIs      

In establishing the FY2015 Headline KPIs, the Management of Axiata has taken into consideration the following:-

• No material increase in competition in the mobile market space of the Group’s major operating countries; 
• No material Regulatory changes impacting the operating companies;
• 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;
• No material change in CAPEX budget spending in all operating companies (‘OpCos’); and
• Excludes divestment and merger acquisition impact.

Moving Forward 

Moving forward, the Group will continue to transform and expand its core business as well as to increase the focus on data leadership and profitability given its exponential growth opportunity. The Group will remain aggressive but targeted in its investments, towards achieving a diversified and balanced portfolio. The Group is committed to optimise the financial performance through disciplined OPEX and CAPEX spend, executed via diligent cost management initiatives and measures.

Axiata is expected to regain momentum in FY2015, as Celcom completed its IT transformation, enabling it to expedite the launch of new products; and XL is currently well placed to benefit from Axis integration. Smart, Robi and Dialog are expected to continuously deliver steady growth for the Group.

FY2014 Headline KPIs Achievements

Below are the Group FY2014 achievements against 2014 Group Headline KPIs:-  

FY2014 has been a challenging year with slowing industry growth, intense competition and adverse political environment in some markets. Despite strong performance from most operating companies, the Group performance was impacted by forex volatility in Indonesia, political worsening in Bangladesh as well as the impact to international mobile termination revenues in Sri Lanka.

Within Malaysia, in 2014 Celcom was impacted by issues arising at the tail-end of its IT transformation, including inability to launch new products and services. This has since then been resolved in 4Q14. The integration of Axis in XL also affected its profitability in the short term. However, the consolidation has been successfully completed at the end of 3Q14, well ahead of schedule.

Amidst this backdrop, at constant currency, the Group recorded moderate Revenue growth of 4.4% year-on-year. EBITDA declined 1.2% driven by IT transformation issue in Celcom and Axis integration in XL. ROIC and ROCE are slightly below KPI, at 8.9% and 7.5% respectively, on the back of continued optimisation of investments.

At actual currency, Group performance was also adversely impacted by forex losses, particularly due to the depreciation of Indonesian Rupiah against Ringgit Malaysia. Accordingly, the Group recorded FY2014 Revenue growth of 1.9%, EBITDA decline of 3.7%, ROIC 9.0% and ROCE 7.6%.

This announcement is dated 25 February 2015.