Analyst Teleconference 3rd Quarter 2007 19 October 2007 Strong - PDF document

Analyst Teleconference 3rd Quarter 2007 19 October 2007

Strong revenue growth momentum High MOU and stable ARPU Special dividend 73 sen net per share 2

DiGi in Q307 EBITDA (RM mil) Revenue (RM mil) Strong revenue growth momentum on increasing MOU and stable ARPU 1113 1058 solid EBITDA margin 526 502 Healthy gross activations 47.4% 47.3% added 93k new customers prepaid impacted by rotational churn Q207 Q307 Q207 Q307 steady postpaid growth PAT (RM mil) Net Adds (‘000) 273 Ongoing focus: 250 241 strengthen key market offerings operational excellence 93 upgrade of core technology platforms Q207 Q307 Q207 Q307 3

Higher competitive pace in Q3 1Plan and 1LFR reinforcing simplicity and best value position Strengthening brand affinity – YCF and True Value postpaid & prepaid campaigns Launched DiGiRemit – international mobile cash remittance 4

Q307 – key numbers Q307 Q-o-Q vs Q207 Y-o-Y vs Q306 Customer base 6.1 mil +2% (6.0 mil) +9% (5.6 mil) Revenue RM1,113 mil +5% (RM1,058mil) +21% (RM921 mil) EBITDA RM526 mil +5% (RM502 mil) +26% (RM419 mil) EBITDA margin 47.3% -0.1pp (47.4%) +1.8pp (45.5%) PAT RM273 mil +9% (RM250 mil) +51% (RM181 mil) EPS 36.4 sen 33.4 sen 24.1 sen 5

Healthy gross activations; high rotational churn +7% Prepaid +38% Postpaid Custome rs +1% Prepaid +8% Postpaid Added 93k new customers 639 592 549 464 422 505 Prepaid impacted 5477 5432 by high rotational 5234 5126 4807 5018 churn 1Plan driving 28.4% 27.3% 28.1% postpaid growth 27.3% 25.6% 25.3% Q2 Q3 Q4 Q1 Q2 Q3 2006 2006 2006 2007 2007 2007 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Prepaid (‘000) Subscriber market share Postpaid (‘000) 6

Flat price models stimulating higher usage +16% Prepaid +14% Postpaid +20% Blended +3% Prepaid AMPU +4%Postpaid +4% Blended Strong overall usage in Q3 392 422 418 432 459 479 Market responsive to new value 163 162 173 193 187 194 propositions 144 140 150 168 158 162 Q2 Q3 Q4 Q1 Q2 Q3 2006 2006 2006 2007 2007 2007 Prepaid (mins) Postpaid (mins) Blended (mins) 7

Stable ARPU +12% Prepaid +1% Postpaid +11% Blended ARPU +2% Prepaid +8% Postpaid +2% Blended ARPU supported by increasing usage 105 95 90 94 89 96 Relatively stable 54 53 55 59 58 59 APPM 50 49 52 55 54 55 Q2* Q3 Q4 Q1 Q2 Q3 2006 2006 2006 2007 2007 2007 * (Including one-time adjustment of RM12 mil for postpaid (RM10 on postpaid and RM1 blended ARPU)) Prepaid (RM) Postpaid (RM) Blended (RM) 8

Maintained strong revenue growth Re ve nue +21% +5% Revenue up on strong usage 904 921 967 1015 1058 1113 Prepaid revenue grew 3% q-o-q Postpaid revenue grew 16% q-o-q 24.6% 24.4% 24.4% 25.4% Q2* Q3 Q4 Q1 Q2 Q3 2006 2006 2006 2007 2007 2007 * (Q206 revenue included an one-time Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 adjustment of RM12 mil for postpaid) Revenue (RM mil) Est. Mobile Revenue Market share 9

Steady growth in data revenue SMS +22% Non-SMS +30% SMS +4% Non-SMS +3% Da ta re ve nue 154 164 180 188 197 204 Data growth outpaced by stronger voice growth 43 46 50 54 58 60 Strong focus on bundled VAS innovations 18.1% 18.7% 19.5% 19.0% 19.2% 18.8% 111 118 129 134 139 144 Q2 Q3 Q4 Q1 Q2 Q3 2006 2006 2006 2007 2007 2007 SMS (RM mil) Non-SMS (RM mil) % of mobile revenue 10

Solid EBITDA margin E BIT DA +26% +5% Growth in line with revenue 410 419 476 497 502 526 development Margin sustained by moderate A&P spend in Q3 45.3% 45.5% 49.2% 49.0% 47.4% 47.3% Q2 Q3 Q4 Q1 Q2 Q3 2006 2006 2006 2007 2007 2007 • Q206 normalised EBITDA margin 44.6% **Q406 normalised EBITDA margin 46.6% EBITDA (RM mil) EBITDA Margin (%) 11

Solid PAT PAT (RM mil) Q307 Q207 Q107 Q406 PAT up on higher EBITDA 526.2 501.8 497.2 475.8 EBITDA; and Depreciation & (156.5) (162.4) (160.8) (184.5) Amortisation Lower EBIT 369.7 339.4 336.4 291.3 depreciation and Net finance income 5.5 5.1 2.6 2.7 amortisation - Finance costs (3.8 ) (3.9 ) (3.4 ) (4.4 ) charges in Q3 (invoice - price - Interest income 9.3 9.0 6.0 7.1 variances in prior PBT 375.2 344.5 339.0 294.0 years’ capex) Taxation (101.9) (94.2) (93.0) (54.4) PAT 273.3 250.3 246.0 239.6 EPS (sen) 36.4 33.4 32.8 31.9 12

Higher capex in Q3 as planned 293 Ca pe x Business growth supported by 215 focused capex spend YTD 159 Partial roll-over of planned 117 investments in 101 98 network quality, capacity and upgrades to 1H08 12.9% 23.3% 30.3% 10.0% 9.3% 14.3% Q2 Q3 Q4 Q1 Q2 Q3 2006 2006 2006 2007 2007 2007 Capex (RM mil) Capex/Revenue 13

73 sen net special dividend Committed to a more efficient capital Cash dividend (net sen/share) : paying progressively higher dividends structure YTD FY 2007 FY 2006 Total pay-out RM2.5bn 75 sen 73 sen Total borrowings RM300 mil RM300 mil 60 sen Cash & cash RM931 mil RM870 mil 50 sen equivalents 42 sen 38.5 sen ROE 42.0% 46.0% ROCE 43.1% 43.8% CR1 CR2 IntDiv FinDiv IntDiv SpDiv 10/05 4/06 7/06 4/07 7/07 10/07 *FCF/share 49.0 sen 24.4 sen Capital Dividends Special Dividends Repayment (interim/final) (CR) * FCF = EBITDA - Capex 14

Industry and regulatory updates 15 Verbal updates Telenor sell-down

Raising 2007 guidance Revised guidance Revenue growth (%) high teens EBITDA margin (%) around 47% - 48% Capex RM600 mil - RM700 mil PAT / EPS growth (%) high 20’s 16

High level 2008 Guidance Guidance Revenue growth (%) high single digit EBITDA margin (%) mid-40’s Capex RM700 mil - RM900 mil PAT / EPS growth (%) high single digit 17

terima kasih mange takk thank you

Breakdown of mobile revenue Prepaid +21% Postpaid +39% Prepaid +3% Postpaid+16% 865 887 933 999 1040 1097 153 177 149 130 127 127 726 748 792 839 876 906 Q2 Q3 Q4 Q1 Q2 Q3 2006 2006 2006 2007 2007 2007 Postpaid (RM mil) Prepaid (RM mil) Others (RM mil) 19

Opex breakdown (RM mil) Q307 Q207 Q107 Q406 Cost of materials 15.0 14.5 15.4 21.4 Traffic charges 212.0 199.6 189.5 182.4 Sales & Marketing 132.0 133.5 118.3 130.7 58.1 63.8 51.9 62.2 - advertising & promotions 73.9 69.7 66.4 68.5 - commissions Staff Costs 62.1 55.6 49.5 42.3 Operations & Maintenance 66.2 62.6 61.1 65.7 Other expenses 101.8 91.4 86.3 57.0 - USP fund and license fees 63.4 59.0 55.1 32.6 - provision for bad & doubtful debts 6.5 4.5 4.5 5.0 - others 31.9 27.9 26.7 19.4 TOTAL 589.1 557.2 520.1 499.5 EBITDA margin 47.3% 47.4% 49.0% 49.2% 20

Key changes impacting q-o-q EBITDA margin 47.3% EBITDA margin Q307 -0.3% (Staff costs @ 5.6 %) 0.0% (Ops & Maint @ 5.9 %) -0.5% (Others @ 9.0 %) -0.1% (Costs of Mats & Traffic @ 20.4 %) +0.8% (Sales & Mktg @ 11.8%) 47.4% EBITDA margin Q207 @ denotes % of revenue in Q307 21

Cash-flow (RM mil) Q307 Q207 Q107 Q406 Cash at start 1,009.0 937.9 869.5 1,138.8 Cash-flow from operations 392.5 417.5 458.6 355.2 Changes in working capital 53.0 57.9 (296.2) 108.1 Cash-flow used in investing activities (148.8) (89.5) (94.0) (282.6) - Capex (158.8) (98.5) (100.9) (292.6) Cash-flow used in financing activities (375.0) (314.8) 0.0 (450.0) Net change in cash (78.3) 71.1 68.4 (269.3) Cash at end 930.7 1,009.0 937.9 869.5 Operational cash-flow 367.4 403.3 396.3 183.2 (EBITDA – Capex) 22