Quarter 4 2 0 0 5 Results for DiGi Analyst presentation February - PowerPoint PPT Presentation

Quarter 4 2 0 0 5 Results for DiGi Analyst presentation February 15 th 2006 Chee Pok Jin, CMO Johan Dennelind, CFO DiGi Q3 2005

Quarter four in brief DiGi Q3 2005

DiGi Highlights Stro ng re ve nue g ro wth with susta ine d pro fit ma rg ins • I nno va tio ns a nd pro mo tio ns c o ntinue to drive DiGi • F urthe r impro ve me nt in b ra nd e q uity a nd ma rke t po sitio n • Bo o m in SI M-c a rd sa le s • Pre pa id ARPU sta b le • DiGi Q4 2005 3 Investor Relations

Competitive landscape Pre pa id sta rte r pa c k pric e b a ttle • Pro mo tio ns driving inte rna tio na l c a lling a nd o n ne t tra ffic • Custo me rs’ inc re a sing inte re st in a dva nc e d VAS • Co mpe titio n inte nsifying • F ixe d-to -mo b ile c o nve rsio n mo de ra te • DiGi Q4 2005 4 Investor Relations

Key innovations in 2005 Bub b le T a lk # 1 Q1 2005 • L ife lo g g e r # 1 • Pre pa id F le xi e -lo a d • BubbleTalk™ BubbleTalk™ MT V Po we rPa c k # 1 Q2 2005 • Online E nha nc e me nt + Dia l a DiGi # 1 • 10 th Annive rsa ry Pro mo tio ns • Co mmunity Zo ne # 1 Q3 2005 • E nha nc e d UMB # 1 • UMB Po stpa id # 1 • Busine ss Po stpa id Clo se d Use r Gro up # 1 Q4 2005 • XMS # 1 • Po stpa id Pa yme nt via F le xi e -lo a d # 1 • #1 = first in Malaysia DiGi Q4 2005 5 Investor Relations

2005 – record numbers Q4 0 5 Q-on- Q vs Q3 0 5 Y-o- Y 2 0 0 5 vs 2 0 0 4 Custom er base 4 .8 0 m il + 15% (4.19 mil) + 48% (4.80 mil) Revenue RM8 2 8 m il + 11% (RM745 mil) + 29% (RM2,884 mil) EBI TDA RM3 6 1 m il + 10% (RM327 mil) + 29% (RM1,259 mil) EBI TDA m argin 4 3 .6 % -0.3pp (43.9% ) -0.1pp (43.7% ) PAT RM1 5 7 m il + 10% (RM143 mil) + 48% (RM471 mil) EPS 2 0 .9 sen 19.1 sen 62.8 sen DiGi Q4 2005 6 Investor Relations

Key Num bers DiGi Q3 2005

Surge in SIM card activations +48% Subsc r ibe r s +15% 608k ne t a dditio ns • Pro mo tio ns a nd • 4795 pric e o f SI M pa c k ke y drive rs 4187 3765 3461 Attra c tive b ra nd 3239 • ? a nd inc re a se d 2804 23.9% 22.8% c o ve ra g e pa ying o ff 22.2% 21.9% 21.5% Q3 Q4 Q1 Q2 Q3 Q4 2004 2004 2005 2005 2005 2005 Customers (‘000) Market share DiGi Q4 2005 8 Investor Relations

Prepaid driving subscriber base +45% Prepaid +105% Postpaid Subsc r ibe r s +14% Prepaid +15% Postpaid Pre pa id drive n b y • a ttra c tive pro mo tio ns a nd sta rt pa c k pric e s 353 307 4442 So lid po stpa id 241 • 202 g ro wth 3880 3686 172 3525 151 3259 3067 Ove ra ll ve ry • 2653 c o mpe titive in va lue , simplic ity a nd re le va nc e Q3 Q4 Q1 Q2 Q3 Q4 Q3 2004 Q4 2004 Q1 2004 Q2 2005 Q3 2005 Q4 2005 2004 2004 2005 2005 2005 2005 Postpaid (‘000) Prepaid (‘000) Active users (‘000) DiGi Q4 2005 9 Investor Relations

High subscriber growth dilutes AMPU +4% Prepaid -22% Postpaid +2% Blended +2% Prepaid -3% Prepaid AMPU -15% Postpaid -11% Postpaid +2% Blended -3% Blended Hig he r I DD a nd • intra ne t tra ffic 528 499 465 471 439 389 512 434 Sub sc rib e r b a se • g ro wing fa ste r tha n inc o ming minute s; AMPU lo we r 170 165 163 170 175 169 166 170 Po stpa id; usa g e • furthe r dilute d b y 150 146 145 150 156 152 148 151 upta ke o f supple me nta ry line s Q3 Q4 Q1 Q2 Q3 Q4 2004 2005 2004 2004 2005 2005 2005 2005 Prepaid (mins) Postpaid (mins) Blended (mins) DiGi Q4 2005 10 Investor Relations

ARPU sustaining; held up by usage mix +2% Prepaid -31% Postpaid -2% Blended -4% Prepaid +2% Prepaid AR PU -28% Postpaid -11% Postpaid -3% Blended 0% Blended Ble nde d ARPU • sta b le in spite o f re c o rd SI M upta ke 164 143 142 128 111 99 161 116 Pre pa id ARPU • hig he r o n pro mo tio na l a c tivitie s a nd 61 59 56 59 58 58 60 58 fe stive se a so ns 55 54 51 54 54 55 55 53 Po stpa id lo we r due • to usa g e Q3 Q4 Q1 Q2 Q3 Q4 2004 2005 2004 2004 2005 2005 2005 2005 Blended (RM) Prepaid (RM) Postpaid (RM) DiGi Q4 2005 11 Investor Relations

Growing contribution from data revenues +56% +14% +57% Data r e ve nue s 446 Be ne fiting fro m • e xpa nde d E DGE c o ve ra g e 284 73 86 94 101 118 134 SMS do mina te s in • Q4, fe stive se a so n ke y drive r Ric he r c o nte nt a nd • ne w a pplic a tio ns drive o the r da ta 14.9% 16.3% 16.7% 16.0% 17.0% 17.3% 14.9% 16.8% Q3 Q4 Q1 Q2 Q3 Q4 2004 2005 2004 2004 2005 2005 2005 2005 Data Revenue (RM mil) % of Mobile Revenue DiGi Q4 2005 12 Investor Relations

Revenue growth continues to be high +37% +11% +29% R e ve nue Ne w c usto me rs 2884 • a nd ma inta ine d ARPU pushing 2234 re ve nue hig he r 577 606 626 686 745 828 Ste a dy • impro ve me nt in re ve nue ma rke t sha re 20.4% ? ? 17.7% 18.5% 21.5% 18.4% 17.4% Q3 Q4 Q1 Q2 Q3 Q4 2004 2005 2004 2004 2005 2005 2005 2005 Q3 Q4 Q1 Q2 Q3 Q4 2004 2005 Revenue (RM mil) Estimated Mobile Revenue Market share (%) 2004 2004 2004 2005 2005 2005 DiGi Q4 2005 13 Investor Relations

Mobile revenues 95% of total revenues +45% +12% +38% Mobile r e ve nue s 2695 Pre pa id do mina te s • 351 in va lue & g ro wth 1947 Po stpa id a lmo st 504 541 571 640 700 784 • 257 10% re v g ro wth 98 90 I nte rc o nne c t • 85 re ve nue s a ro und 78 70 69 12% mo b ile re ve nue s in Q4 423 460 483 546 599 676 1647 2305 Q3 Q4 Q1 Q2 Q3 Q4 2004 2005 676 2004 2004 2005 2005 2005 2005 Postpaid (RM mil) Others (RM mil) Prepaid (RM mil) DiGi Q4 2005 14 Investor Relations

EBITDA up in line with revenues +35% +10% +29% E BIT DA Ma rg in he ld up in • spite o f a g g re ssive 1259 e xpa nsio n a nd c o mpe titio n 250 268 275 297 327 361 979 Unde rpinne d b y • stro ng o pe ra tio na l pe rfo rma nc e 43.3% 44.2% 44.0% 43.2% 43.9% 43.6% 43.8% 43.7% Q3 Q4 Q1 Q2 Q3 Q4 2004 2005 2004 2004 2005 2005 2005 2005 EBITDA (RM mil) EBITDA Margin (%) DiGi Q4 2005 15 Investor Relations

EBITDA margin resilient 43.9% EBITDA margin Q305 E BIT DA mar gin -0.6% (Cost of materials @ 3.4%) Hig he r I DD tra ffic • -0.1% (Traffic charges @ 19.8%) re sulte d in hig he r tra ffic c ha rg e s +0.0% (Sales & Marketing @ 13.5 %) Sig ns o f e c o no mie s • +0.3% (Staff costs @ 4.5%) o f sc a le ; in O&M a nd sta ff c o sts +0.9% (Operations & Maintenance @ 5.4%) A&P re ma in hig h • -0.8% (Other expenses @ 9.7%) 43.6% EBITDA margin Q405 @ denotes % of revenue in Q405 DiGi Q4 2005 16 Investor Relations

Conscious cost management (RM mil) Q405 Q305 2005 2004 Cost of materials 28.0 20.6 88.6 90.2 Ope x Traffic charges 164.2 147.1 557.2 422.1 Sales & Marketing 112.0 100.4 393.5 275.2 Hig he r tra ffic • - Advertising & promotions 45.2 41.8 168.3 113.9 c ha rg e s; drive n - Commissions 66.8 58.6 225.2 161.3 b y I DD Staff Costs 37.3 35.9 135.0 114.2 S&M pushe d • Operations & Maintenance 45.0 46.7 180.0 146.7 hig he r b y ne w Other expenses 80.7 68.2 272.8 208.8 la unc he s a nd - USP fund and license fees 50.3 41.8 164.3 129.7 pro mo tio ns - provision for bad & doubtful 3.8 2.9 11.9 6.9 debts - others 26.6 23.5 96.6 72.2 Slig ht inc re a se in • Total 467.2 418.9 1,627.1 1,257.2 b a d de b ts; fro m hig he r po stpa id EBITDA margin 43.6% 43.9% 43.7% 43.8% b a se DiGi Q4 2005 17 Investor Relations

Improvements flow through to PAT PAT (RM mil) Q405 Q305 2005 2004 EBITDA 360.8 326.8 1,259.3 979.0 L o we r fina nc e c o sts • Depreciation & Amortization (145.4) (132.1) (583.5) (469.6) fro m pre pa yme nt o f EBIT 215.4 194.7 675.8 509.4 lo a ns (62.6) Net finance income / (costs) 3.2 4.1 (14.2) (75.5) - finance costs (3.7 ) (1.1) (32.4) Ac c e le ra te d • 12.9 - interest income 6.9 5.2 18.2 de pre c ia tio n e ffe c ts PBT 218.6 198.8 661.6 446.8 Q4 with RM 9 mil Taxation (62.0) (55.9) (190.6) (129.4) PAT a nd E PS inc re a se • PAT 156.6 142.9 471.0 317.4 > 9% q -o n-q EPS (sen) 20.9 19.1 62.8 42.3 DiGi Q4 2005 18 Investor Relations