Sensitivity: Internal
PRESENTATION BY MANAGEMENT 1 Digi At A Glance Our Purpose and Strategy 2 3 2019 in Review 4 1Q2020 Key Highlights 5 Covid-19 and Business Continuity Plan (BCP) 6 2020 Outlook and Priorities 2 Sensitivity: Internal
1 Digi At A Glance RM6.5bn TOTAL REVENUE FY2019 11.3mn CUSTOMERS FY2019 99% DIVIDEND PAYOUT RATIO FY2019 3
PURPOSE – Connecting YOU To What Matters Most 2 Purpose & Strategy OUR STRATEGY OUR BEHAVIOR OUR WAY OF WORK Customer Obsession Always Explore Innovation 360 Create Together Keep Promises Be Respectful 4 Sensitivity: Internal
FOCUSED STRATEGIC PRIORITIES 2 Purpose & Strategy GROWTH EFFICIENCY & WINNING RESPONSIBLE SIMPLIFICATION TEAM BUSINESS • • • • Strengthen Capture new growth Continue digital Ensure secure and from consumer and transformation inclusivity at sustainable business • workplace B2B business Drive multi-year, conduct, adhering to • • Upskill high governance Derive more value structural from existing operational organisational standards • capabilities and customer base efficiency initiatives Focus on improving • Invest in to ensure profitable build critical digital economic, competencies competitive business environmental , and social priorities network 5 Sensitivity: Open
DIGI’S EVOLUTION 2 Purpose & Strategy CUSTOMERS’ FAVOURITE CONNECTING YOU INTERNET FOR ALL PARTNER IN DIGITAL LIFE TO WHAT MATTERS MOST Internet Service Provider Digital Service Provider Digital Connectivity Provider Core Offerings Core Offerings Core Offerings Digital Solutions/Services Digital Solutions/Services Digital Solutions/Services 2014-2016 2017-2018 2019-2020 6 Sensitivity: Internal
ADAPTING & MANAGING CHANGING ENVIRONMENT 2 Purpose & Strategy ✓ Capitalise on internet adoption ✓ Strengthen network nationwide ✓ Modernise network & IT systems ✓ Enhance personalised offerings ✓ Improve network resilience ✓ Collaborate with industry players ✓ Provide physical & digital connection ✓ Protect data, privacy and security ✓ Increase 5G preparedness 9.4 million internet customers Actively optimised and re-farmed Robotic Process Automation spectrum to improve network for network analysis to improve 85% smartphone penetration performance and capacity quality more efficiently rate Partnership with TM on Joint collaboration with Maxis 13.8GB average monthly data submarine cable system access and Celcom to explore fibre usage to drive high-quality internet infrastructure development connectivity +48% total data traffic growth Improved privacy controls and Smart partnerships in different 76.7 million upsell transactions educate vendors on privacy ethics industry verticals to pilot 5G on MyDigi App technology Increasingly digital customers Expect secure and reliable network IoT, AI, 5G and more 7 Sensitivity: Internal
RESILIENT SHARE PRICE PERFORMANCE VS FBM KLCI 3 2019 in Review Share Price Performance against Bursa Malaysia's KLCI since 2 Jan 2020 Digi KLCI YTD % 2 Jan’19 Indexed to 100 28 May’20 120 DIGI DIGI +0.5% RM4.46 RM4.48 110 100 KLCI KLCI 1,588.76 1,457.50 90 -8.3% points points 80 70 60 #9 Most Valuable Stock On FBM KLCI RM34.8 billion Market Capitalisation 50 4.1% 8.5 sen 24.69x 12.27x P/E Ratio EV/EBITDA Ratio Dividend Yield Net assets per share 8 Sensitivity: Internal
SOLID DELIVERY ON KEY FOCUS AREAS 3 2019 in Review DIGITAL GROWTH EFFICIENCY TRANSFORMATION 3.8 million ↑ 11.0% ↓ 0.2% Opex ↑ 24% increase in monthly Internet and digital revenue or RM1.97 billion active MyDigi users ↑ 11.9% IT Common Delivery 46% Centre Postpaid revenue¹ with over EBITDA Margin 3.0 million subscribers Operating model innovation RM753 million ↑6.0% 5G Capex or 13.3% to service B2B revenue OpenLab & pilots revenue 24% Office 365 Digi Home Fibre - Sabah and Klang Valley Industry leading PAT Margin Digital Workplace ¹ Excludes contract assets amortisation 9 Sensitivity: Internal
GUIDANCES MET DRIVEN BY FOCUSED STRATEGY 3 2019 in Review A C T UA L P E R F O R M A N C E M O R E S U S TA I N A B L E R E V E N U E M I X W I T H I N G U I DA N C E S A N D G R OW T H ❑ Stronger Postpaid, Internet & Digital : 69% → 77% Service Revenue: Low single digit decline 1 ✓ -2.5% l -1.4% 1 ❑ Reduced Reliance on Non-Internet Prepaid : 31% → 23% EBITDA: Low – medium single digit decline 2 ✓ -3.8% l -1.6% 1 E F F I C I E N T A N D P R O F I TA B L E O P E R AT I O N S ❑ Healthy and industry-leading EBITDA Margin of 46% Capex-to-Service Revenue: 12% - 13% 3 ✓ 13.3% ❑ Accelerate structural cost saving opportunities while prioritising cost spend at areas that drive highest profitability 1 Excluding contract asset amortisation 10 Sensitivity: Internal
IMPROVED REVENUE MIX AND SUSTAINABLE RETURNS 3 2019 in Review Service Revenue PAT and Margin Shareholder Return 12.3 12.1 11.7 11.7 11.3 22.0 20.9 19.6 18.8 18.2 25 25 23 24 24 45 42 41 41 40 99 100 99 99 99 6.35 1.72 6.23 22.1 1.63 5.91 5.79 5.65 21.0 1.54 1.50 1.48 19.8 19.2 19.0 18.4 1.38 1.80 2.92 2.29 3.26 4.46 4.12 3.63 3.31 3.09 -0.13 -0.20 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Payout Ratio (%) Prepaid non-internet (RM billion) PAT (RM billion) EPS pre MFRS-16 (sen) Postpaid, Prepaid internet & digital (RM billion) EPS post MFRS-16 (sen) DPS (sen) PAT Margin (%) Contract assets amortisation • EPS: Earning per share • DPS: Dividend per share Subscribers ARPU (RM) 11 Sensitivity: Open
BACKED BY SOLID FINANCIAL STRENGTH 3 2019 in Review Robust Balance Sheet Composition Of Borrowings Sukuk Programmes & Rating 22% Sukuk Programmes formed in 2017 40% 45% ❑ IMTN Programme of up to RM5.0 Total Assets Total Borrowings billion RM8.15 billion RM5.15 billion ❑ Islamic Commercial Papers Programme with sub-limit of up to RM1.0 billion 78% Credit Rating of AAA/Stable/P1 15% reaffirmed in Jan’2020 by RAM Rating Islamic Conventional Finance Leases Current Asset Non-Current Assets • Solid assets anchored on prudent • Conventional debt over total assets • Equipped with a balanced capital allocation of resources and asset of 10%, well below the 33% structure and financial facilities • This credit rating reflects our well- management, pursuant to MFRS threshold to qualify as a Shariah- 16 adoption compliant stock established position in the • Sufficient to execute our strategic • Low net debt over EBITDA ratio of industry, excellent profitability and priorities for future growth 1.6 times robust cashflow 12 Sensitivity: Open
PRIORITISING ROBUST 4G PLUS NETWORK COVERAGE 3 2019 in Review Our Network Footprint as at FY2019 3G: 93% 4G: 91% LTE-A: 72% Population Coverage 300+ 4G Cities & Towns 9,610 KM Fibre Network +3pp Y-Y Network Net Promoter Score 13 Sensitivity: Open
EXPLORING 5G POSSIBILITIES WITH PARTNERS 3 2019 in Review We play a vital role in supporting the needs of Malaysia’s digital future in tandem of National Fiberisation and Connectivity Plan (NFCP) which aims to provide high-quality and affordable digital connectivity Malaysia’s 1 st Malaysia’s 1 st Real-Time Virtual Tourism Real-Time Medical Data Some of the 5G pilots at 5G Demonstration Partnered Cyberview Sdn Bhd and ZTE to Projects at Langkawi, Kedah in Oct 19 launch the first 5G OpenLab in Cyberjaya 14 Sensitivity: Open
DELIVERING VALUE ACROSS VARIOUS STAKEHOLDERS 3 2019 in Review The Edge BRC 2019 - Highest MSWG 2019 – ASEAN Excellence Southeast Asia 2019 – Best Islamic return on equity over 3 years Award Long term value creation Finance Deal • Delivering on our promise to provide • Adhering to highest standards of • Achieving competitive coupon rate for For shareholders and investors consistent, healthy shareholder Corporate Governance our RM900 Million Sukuk Murabahah return issued in Sep’2019 Finance Asia 2020 – Malaysia’s #1 TOP 20 FINALISTS by PwC Company of the year 2019 for Best Managed Company and #1 Malaysia’s Building Trust Awards Digital Service Provider by CSR Most Committed to Social Causes 2019 Malaysia For broader society • Recognising our commitment to • Building trust in our brand as we • Recognising our continuous focus to minimise environmental impact and protect customer data and deliver safe drive superior Internet and Digital advocate safe internet usage and services experience digital inclusion Malaysia Green The Loyalty & Engagement Awards Golden Globe Building Council - 2019 – Best Use of Mobile (Silver) Tigers 2019 - Top 10 Green & Best Use of Influencer (Bronze) Malaysia’s Best For customers For For employees Buildings Of The Employer Brand environment Decade Awards 2019 Award 15 Sensitivity: Open
BUILDING LOYALTY & TRUST AS A BRAND THAT CARES 3 2019 in Review Digital Inclusion & Cyber Security Resilience Supply Chain Data Protection Sustainability Ethics & Compliance 16 Sensitivity: Open
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