Quarter 3 2 0 0 5 Johan Dennelind, CFO Morten Lundal, CEO Analyst - PDF document

Quarter 3 2 0 0 5 Johan Dennelind, CFO Morten Lundal, CEO Analyst presentation Results for DiGi.com October 26 th DiGi Q3 2005

Q3 Highlights High subscriber grow th • Strong revenue grow th • Solid profitability • Announcing capital m anagem ent initiatives • DiGi Q3 2005 2 Investor Relations

Strong customer and revenue growth Revenue (RM mil) Customers (‘000) +49% y-o-y +29% y-o-y High additions in • pre- and postpaid 4187 Prom otions and • 745 general brand drive 2804 custom er 577 acquisition Higher usage and • custom er uptake drive revenue Q3 Q3 Q3 Q3 Q3 2004 Q3 2005 Q2 2005 Q3 2005 2004 2005 2004 2005 DiGi Q3 2005 3 Investor Relations

Solid growth in all financial numbers Q3 0 5 Q-on- Q vs Q2 0 5 Y-o- Y vs Q3 0 4 Custom er base 4 .1 9 m il + 11% (3.77mil) + 49% (2.80 mil) Revenue RM7 4 5 m il + 9% (RM686 mil) + 29% (RM577 mil) EBI TDA RM3 2 7 m il + 10% (RM297 mil) + 31% (RM250 mil) EBI TDA m argin 4 3 .9 % + 0.7pp 43.2% + 0.6pp 43.3% PAT RM1 4 3 m il + 26% (RM113 mil) + 73% (RM83 mil) EPS 1 9 .1 sen 15.1 sen 11.0 sen DiGi Q3 2005 4 Investor Relations

Key updates 3 G Num ber Portability • • - framework under discussion - committed to broadband wireless - implementation aims for 2006 - intend to bid for 3G spectrum - well positioned for change - strong focus on advanced services and local content Access Pricing Prepaid Registration • • - termination rates under review - ongoing trial - too early to comment - positioned for nationwide implementation - no major impact on long term revenue development is expected DiGi Q3 2005 5 Investor Relations

Capital management initiatives Starting in 2 0 0 6 Background • • - 75 sen capital - lack of tax credits to pay repayment next year dividends - dividend policy; payout - build up of cash of minimum 50% of net - under leveraged balance earnings sheet Seeking m ore efficient Supported by PDS • • capital structure - proposed (up to) - investing significantly for RM700m CP and MTN medium and long term growth - alternative financing when and if needed - seeking to optimise balance sheet over time - returning excess cash DiGi Q3 2005 6 Investor Relations

Quarter 3 2 0 0 5 Johan Dennelind, CFO Analyst presentation Results for DiGi.com Morten Lundal, CEO October 26 th DiGi Q3 2005

Passing 4 million customers milestone +49% Custome rs +11% Hig h pa c e o f • 4187 a c q uisitio n 3765 3461 Ne t a dds hig he r • 3239 tha n Q2 2804 2583 Pro mo tio ns a nd • b ra nd stre ng th drive rs 22.8% 22.2% 21.9% 21.5% 20.9% Q2 Q3 Q4 Q1 Q2 Q3 2004 2004 2004 2005 2005 2005 Customers (‘000) Market share DiGi Q3 2005 8 Investor Relations

Solid growth in both prepaid and postpaid +46% Prepaid +103% Postpaid +10% Prepaid Custome rs +27% Postpaid Ma rke t re spo nsive • to pro mo tio ns 307 241 202 Se g me nte d • 172 3880 a ppro a c h pa ys o ff 151 3525 fo r pre pa id 130 3259 3067 2653 No b a rrie rs to • 2453 po stpaid Q2 Q3 Q4 Q1 Q2 Q3 Q2 2004 Q3 2004 Q4 2004 Q1 2004 Q2 2005 Q3 2005 2004 2004 2004 2005 2005 2005 Postpaid (‘000) Prepaid (‘000) DiGi Q3 2005 9 Investor Relations

Prepaid; ARPU and AMPU holding up -2% ARPU +4% AMPU Pr e paid 0% ARPU ARPU & AMPU +4% AMPU Hig he r usa g e tha n • e xpe c te d Usa g e drive n b y • 146 150 146 145 150 156 stro ng pro mo tio ns ARPU he ld b a c k b y • mo re o n-ne t tra ffic 54 55 54 51 54 54 Q2 Q3 Q4 Q1 Q2 Q3 2004 2004 2004 2005 2005 2005 ARPU (RM) AMPU (mins ) DiGi Q3 2005 10 Investor Relations

Postpaid; larger base diluting ARPU -32% ARPU -17% AMPU Postpaid -13% ARPU ARPU & AMPU -7% AMPU Stro ng upta ke fro m • ne w c usto me rs in b o th ma ss a nd 528 517 b usine ss 499 471 465 439 ARPU a nd AMPU • dilute d by hig h upta ke o f ma ss ma rke t c usto me rs 173 164 143 142 128 111 Q2 Q3 Q4 Q1 Q2 Q3 2004 2004 2004 2005 2005 2005 AMPU (mins) ARPU (RM ) DiGi Q3 2005 11 Investor Relations

Blended ARPU stable ARPU -5% AMPU +3% Ble nde d ARPU -2% ARPU & AMPU AMPU +3% Ma intaining ARPU • le ve l 164 170 165 163 170 175 Hig he r usa g e c a te r • fo r slig ht dro p in pric e 60 61 59 56 59 58 Q2 Q3 Q4 Q1 Q2 Q3 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 2004 2004 2004 2005 2005 2005 ARPU (RM) AMPU (mins) DiGi Q3 2005 12 Investor Relations

Data revenue growing +62% Data r e ve nue +17% 118 Be ne fiting fro m • wide st da ta 101 94 c o ve ra g e 86 73 All se rvic e s sho w • 63 stro ng g ro wth in vo lume Ric he r c o nte nt a nd • 17.0% 16.7% 16.3% 16.0% ne w a pplic a tio ns 14.9% drive no n-SMS 14.1% Q2 Q3 Q4 Q1 Q2 Q3 2004 2004 2004 2005 2005 2005 % of mobile revenue Data revenue (RM mil) DiGi Q3 2005 13 Investor Relations

9% revenue growth Q-on-Q +29% Re ve nue +9% Ne w c usto me rs 745 • a nd hig he r usa g e 686 pushing re ve nue 626 606 hig he r 577 533 Ste a dy • ? impro ve me nt in 20.4% re ve nue ma rke t 18.5% 18.4% sha re 17.7% 16.9% Q2 Q3 Q4 Q1 Q2 Q3 2004 2004 2004 2005 2005 2005 Revenue (RM mil) Estimated Mobile Revenue Market share (%) Q2 2004 Q3 2004 Q4 2004 Q1 2004 Q2 2005 Q3 2005 DiGi Q3 2005 14 Investor Relations

Mobile revenues 94% of total revenues +39% Mobile re ve nue +9% 700 Pre pa id do mina te s • 640 90 in va lue a nd 85 571 g ro wth 599 541 78 504 546 70 457 69 Po stpa id 13% o f 483 • 460 63 mo bile re ve nue s 423 383 Q2 Q3 Q4 Q1 Q2 Q3 2004 2004 2004 2005 2005 2005 Postpaid (RM mil) Others (RM mil) Prepaid (RM mil) DiGi Q3 2005 15 Investor Relations

Strong development in EBITDA +31% E BIT DA +10% E BI T DA g ro wing • e ve n fa ste r tha n 327 re ve nue s 297 275 268 250 Sig ns o f e c o no mie s • 227 o f sc a le Ma rg ins he ld up • 44.2% 44.0% 43.9% 43.2% 43.3% 42.6% Q2 Q3 Q4 Q1 Q2 Q3 2004 2004 2004 2005 2005 2005 EBITDA (RM mil) EBITDA Margin (%) DiGi Q3 2005 16 Investor Relations

Stable cost picture % of revenue Q305 Q205 Chg Cost of materials 2.8% 2.6% -0.2% Ope x (% of re ve nue ) Traffic charges 19.7% 18.8% -0.9% Sales & Marketing 13.5% 14.2% +0.7% T ra ffic c ha rg e s • - Advertising & promotions 5.6% 6.5% +0.9% impa c te d b y I DD - Commissions 7.9% 7.7% -0.2% c a mpa ig ns Staff Costs 4.8% 4.9% +0.1% Ba d de b ts unde r Operations & Maintenance 6.3% 6.6% +0.3% • c o ntro l Other expenses 9.0% 9.7% +0.7% - USP Fund 4.5% 4.5% 0.0% - license fees 1.1% 1.0% -0.1% - provision for bad & doubtful debts 0.4% 0.4% 0.0% - others 3.0% 3.8% +0.8% Total 56.1% 56.8% +0.7% EBITDA margin 43.9% 43.2% +0.7% DiGi Q3 2005 17 Investor Relations

Delivering at bottom line; PAT up 26% PAT RM mil Q305 Q205 Q304 EBITDA 326.8 296.6 249.7 E a se d fina nc e c o sts • Depreciation & Amortization (132.1) (132.4) (117.6) EBIT 194.7 164.2 132.1 Ac c e le ra te d • Net finance income / (costs) 4.1 (4.9) (18.2) de pre c ia tio n e ffe c t - finance costs (1.1 ) (8.6) (21.5) RM10 mil - interest income 5.2 3.7 3.3 PBT 198.8 159.3 113.9 PAT a nd E PS inc re a se • 26% q -o n-q Taxation (55.9) (45.8) (31.4) PAT 142.9 113.5 82.5 EPS (sen) 19.1 15.1 11.0 DiGi Q3 2005 18 Investor Relations

Network roll out picking up pace Ca pe x (RM mil) 249 Ca pa c ity, Qua lity • a nd Co ve ra g e ke y c o mpo ne nts 182 Co ve ra g e • e xpa nsio n o n tra c k 129 Ac tive ly pursing • 106 infra struc ture 89 sha ring o ppo rtunitie s 66 Q2 Q3 Q4 Q1 Q2 Q3 2004 2004 2004 2005 2005 2005 DiGi Q3 2005 19 Investor Relations