AXIATA.pdf

Axiata Group Berhad (242188-H)(formerly known as TM International Berhad)

Level 42, North WingMenara TMJalan Pantai Baharu50672 Kuala LumpurMalaysia

Website: www.axiata.com

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P R E S E N T I N G

Axiata Group Berhad (242188-H)(Formerly known as TM International Berhad)

The Tangram Connection

The TANGRAM is an ancient Chinese moving piece puzzle, consisting of geometric shapes. Various tangram patterns may be formed from the geometric pieces of the tangram puzzle. It is highly creative and flexible in its application.

Axiata, like the TANGRAM has its origins in Asia and is piecing together: connectivity, technology and talent to catalyse progress in Asia.

Axiata, like the TANGRAM offers a variety of innovative solutions for our over 89 million customers, connecting them to the world, expanding the horizons of an upwardly mobile Asia.

Axiatas values and beliefs are reflected on the TANGRAM pieces, where they come together as one binding our values and beliefs as guiding pillars of our operations, laying the path to our future success.

Axiata Group Berhad Annual Report 2008

(formerly known as TM International Berhad)2

C O L L A B O R A T I V E

The bridge is reflective of Axiata, bridging relationships through affordable connectivity. Axiata is firmly grounded in each national economy, leveraging on world-class processes, economies of scale and regional synergies.

E X C E L L E N C E

The arrow embodies Axiatas quest to excel, delivering sustainable growth and performance excellence across all of its operations, guided by a policy of strict financial discipline to enhance value to shareholders. Axiata continuously evaluates new emerging technologies to deliver cost effective, innovative and differentiated services to over 89 million customers across Asia.

U N C O M P R O M I S I N G

The house demonstrates Axiatas commitment as an organisation to advancing communities for sustainable development through its technology and people.

I N N O V A T I O N

The rocket signifies Axiatas commitment to accelerate progress through innovative technology and alliances Axiata brings new technologies and services such as 3G, HSPA and mobile broadband to expand the horizons of an upwardly mobile Asia.

O P T I M I S T I C

The bird in full flight symbolises our aspirations for Axiata, a dynamic organisation that is set to soar and make its presence felt in the industry. Axiata is Advancing Asia through mobile communications by piecing together technology, connectivity and talent.

L O C A L R E L E V A N C E

The key represents Axiatas ability to unlock the potential of its Operating Companies. Axiata understands Asia better than anyone else we are a unique organisation combining the local expertise of national operating companies with the strong support of a regional corporation.

P R I N C I P L E D

The boat is representative of the firm and sound leadership of Axiata, navigating the organisation towards its ambition to become the regional champion by 2015.

3

Annual Report 2008



Contents

I OPTIMISTIC9 The Brand

10 Who We Are and What

We Do

11 Our Beliefs and Values

12 Financial Calendar

12 Corporate Information

II COLLABORATIVE16 Axiata Profile

18 Regional Presence

20 Group Corporate Structure

III EXCELLENCE24 Chairmans Statement

28 President and Group Chief

Executive Officers Business

Review

37 Group Financial Overview

38 Two-Year Group Financial

Summary

39 Two-Year Group Financial

Highlights

40 Simplified Group Balance

Sheet

41 Reporting by Geographical

Location

42 Group Financial Review

46 Acquisition of Idea:

Expansion into India

48 Major Milestones

51 Awards and Accolades

IV PRINCIPLED54 Board of Directors

56 Profile of Directors

62 Profile of Management Team

67 Profile of Operating

Companies Management

Team

72 Statement on Corporate

Governance

79 Directors Statement on

Internal Control

86 Board Audit Committee

Report

V LOCAL RELEVANCE98 Malaysia

104 Indonesia

108 Sri Lanka

114 Bangladesh

118 Cambodia

120 India

122 Singapore

124 Iran

126 Pakistan

128 Thailand

VI INNOVATION136 Products and Services

Catalogue

140 Products and Services Review

VII UNCOMPROMISING146 Corporate Responsibility

Marketplace Perspective

People Perspective

Community Perspective

Environmental Perspective

FINANCIAL STATEMENTS

156 Directors Statement of

Responsibility

157 Audited Financial Statements

for the financial year ended

31 December 2008

305 Group Financial Analysis

OTHER INFORMATION

309 Shareholding Statistics

312 Additional Compliance

Information

315 Net Book Value of Land and

Buildings

316 List of Top Ten Properties

317 Group Directory

318 Glossary

322 Notice of Annual General

Meeting

325 Statement Accompanying

Notice of Annual General

Meeting

326 Administrative Details for the

17th Annual General Meeting

Proxy Form

5

O P T I M I S T I CThe bird in full flight symbolises our aspirations for Axiata, a dynamic organisation that is set to soar and make its presence felt in the industry. Axiata is Advancing Asia through mobile communications by piecing together technology, connectivity and talent.

I

10countries

25,000employees

89million customers



The name Axiata embodies who we are. A company thats vital to people all across Asia. Our logo, the Axiata prism is multifaceted and multidimensional

reflecting our rich heritage, diversity and vibrancy. It is as colourful as the

different countries we serve.

It shows the world that we view situations from every perspective, taking all

viewpoints into account.

It also reflects our vision of providing multiple services from basic voice to rich

data, from basic data to broadband, from SMS to 3G, from simple data to rich

content.

It unites all our partners and connects us to our customers.

Multidimensional.

Thats Axiata.

9

Who We Are and What We Do

We understand Asias communication needs better than others. Together we are

a family, with operations in 10 countries, 25,000 employees and over 89 million

customers. We are uniquely Asian. Our purpose is to advance Asia towards a

better, brighter future.

Axiata is Advancing Asia by:

bridging relationships through affordable connectivity. We strive to bring affordable and innovative mobile communication services and coverage to

over 1.5 billion people throughout Asia, so they can be connected to each

other and to a wealth of information, entertainment and more. From remote

villages, to large cities, we are connecting people from all walks of life.

acceleratingprogressthroughtechnology.We are investing in cutting edge technologies that include 3G, HSPA, Next Generation Networks and Wimax,

so customers can experience Internet on the move and connect with anyone,

anytime, anywhere, any way they want. Technologies that are innovative,

relevant and affordable.

developing talent throughout Asia. We bring employment and career opportunities to 25,000 people throughout Asia. We leverage on this

diversity to develop human capital for national and regional growth. We are

grooming the talent of Asia, by providing regional career experience and

world class people development programmes, so they can realise their full

potential.



Our Beliefs and Values

Axiata is the emerging leader in Asian telecommunications with a vision of becoming a regional champion. Axiata is Advancing Asia by bringing affordable

connectivity, innovative technology and world class talent to the entire region.

We are an organisation that pursues excellence and innovAtion across our

entire operations, bringing the most advanced and world-class communication

services to the region.

We are an organisation of global stature with sensitivity to the local markets

that we operate in. We take a collABorAtive approach in all our partnerships,

ensuring that we address the specific needs of our stakeholders, offering

products, services and solutions that are of locAl relevAnce.

We are principled and uncompromisinG, holding ourselves to the highest

standards of conduct. We are a company with a purpose and we play a core

role in nation development in the markets that we serve.

We are adaptive and optimistic, an organisation with continued energy and

confidence, that is ready to meet global challenges.

Axiata is Advancing Asia towards a better, brighter future.

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Corporate Information

BOARD OF DIRECTORS

TAN SRI DATO AZMAN HJ. MOKHTAR

Chairman

Non-Independent Non-Executive Director

DATO SRI JAMALUDIN IBRAHIM

Managing Director/President and

Group Chief Executive Officer

DATO YUSOF ANNUAR YAACOB

Executive Director/Group Chief Financial Officer

TAN SRI GHAZZALI SHEIKH ABDUL KHALID

Independent Non-Executive Director

DATUK AZZAT KAMALUDIN

Senior Independent Non-Executive Director

JUAN VILLALONGA NAVARRO


DAVID LAU NAI PEK


GITA IRAWAN WIRJAWAN


ISMAEL FARIZ ALI


DR. FARID MOHAMED SANI


Alternate Director to Ismael Fariz Ali

Financial CalendarFinancial Year 2008

ANNOUNCEMENT OF RESULTS

22May 2008 ThursdayAnnouncement of the unaudited consolidated

results for the first quarter ended 31 March 2008

26August 2008 TuesdayAnnouncement of the unaudited consolidated

results for the second quarter ended 30 June

2008

26November 2008 WednesdayAnnouncement of the unaudited consolidated

results for the third quarter ended 30 September

2008

26 February 2009 ThursdayAnnouncement of the unaudited consolidated

results for the fourth quarter ended 31 December

2008

ANNUAL REPORT AND ANNUAL GENERAL MEETING

29April 2009 WednesdayDate of notice of 17th Annual General Meeting

and date of issuance of the 2008 Annual Report

20May 2009 WednesdayDate of 17th Annual General Meeting



GROUP COMPANY SECRETARY

Suryani Hussein (LS0009277)

REGISTERED OFFICE

Level 42, North Wing

Menara TM

Jalan Pantai Baharu

50672 Kuala Lumpur

Malaysia

Tel : 603 2240 3000

Fax : 603 2241 3005

Website : www.axiata.com

SHARE REGISTRAR

Tenaga Koperat Sdn Bhd

(Company No. 118401-V)

Level 17, The Gardens North Tower

Mid Valley City

Lingkaran Syed Putra

59200 Kuala Lumpur

Malaysia

Tel : 603 2264 3883

Fax : 603 2282 1886

AUDITORS

PricewaterhouseCoopers

(AF: 1146)

Level 10, 1 Sentral

Jalan Travers

Kuala Lumpur Sentral

50706 Kuala Lumpur

Malaysia

Tel : 603 2173 1188

Fax : 603 2173 1288

STOCK EXCHANGE LISTING

Listed on Main Board of

Bursa Malaysia Securities Berhad

Listed Date : 28 April 2008

Stock Code : 6888

Stock Name : Axiata

This Annual Report is available on our website at www.axiata.com

13

C O L L A B O R A T I V EThe bridge is reflective of Axiata, bridging relationships through affordable connectivity. Axiata is firmly grounded in each national economy, leveraging on world-class processes, economies of scale and regional synergies.

II

Axiata Profile

About AxIAtAAxiata Group Berhad (Axiata) is the emerging leader in

Asian mobile telecommunications. The Group, one of

the largest telecommunication companies in the region,

has extensive operations and businesses in 10 countries

in Asia, providing a comprehensive range of mobile

communication services to a combined base of over

89 million subscribers.

The Group currently has controlling interests in its

mobile communication operations in Malaysia, Indonesia,

Sri Lanka, Bangladesh and Cambodia as well as strategic

stakes in India, Singapore, Iran, Pakistan and Thailand

through its various subsidiaries and affiliates. Its mobile

subsidiaries and affiliates operate under the brand

names Celcom in Malaysia, XL in Indonesia, Dialog in

Sri Lanka, AKTEL in Bangladesh, hello in Cambodia,

Idea and Spice in India, M1 in Singapore and MTCE

in Iran.

AxIAtAs Journey to DAteThe Axiata story has been a remarkable one

incorporated in Malaysia on 12 June 1992 as a private

limited company under the name Telekom Malaysia

International Sdn. Bhd., it commenced business in 1994

as a division within Telekom Malaysia Berhad (TM),

focusing on expanding the Groups footprint primarily

through mergers and acquisitions (M&A). On 16 October

2001, the Company changed its name to TM

International Sdn. Bhd., and over the next seven years

continued to expand its presence in the region, building

a portfolio which balances interest in emerging markets

with low mobile penetration rates and Best-in-Class

and innovation driven subsidiaries in mature markets.

On 12 December 2007, the Company was converted

into a public company bearing the name TM International

Berhad (TMI).



The Group completed its strategic

demerger exercise that saw the

separation of the mobile business

from TM. The demerger resulted in

TMI emerging as an independent

entity in the regional mobile

te lecommun icat ions market ,

enabling it to focus on its own core

business and accelerate operational

i m p r o v e m e n t s a n d g r o w t h

initiatives. TMI was listed on Bursa

Malaysia Securities Berhad (Bursa

Securities) on 28 April 2008,

marking a new chapter in its

transformation towards becoming

a regional giant in the mobile

communications market.

Since then, the Group has continued

to build on its strengths and

synergies. As part of its move to

consolidate and strengthen its

regional footprint, the Group

entered into an arrangement with

Idea Cellular Limited (Idea), which

will see the merger of Idea and

Spice Communications Limited

(Spice) in India. The enlarged Idea

is the fifth largest mobile player in

Indias high growth market. In

addition, the Group expanded its

regional partnerships with the entry

of Japans largest cellular operator

NTT DOCOMO, INC. (DOCOMO) into

TM International (Bangladesh)

Limited (TMIB) in June 2008.

MArkIng A new erA: AxIAtAThe Company has, with effect from

31 March 2009, changed its name

to Axiata Group Berhad and

launched its new identity on 2 April

this year, as part of a rebranding

exercise aimed at enhancing its

position as a leading regional mobile

operator. The move was a requisite

step to reinforce the Groups new

bus iness ph i losophy and i ts

commitment to Advancing Asia by

a d d r e s s i n g t h e u n f u l f i l l e d

communication needs of local

populations with affordable and

innovative products and services.

As an emerging leader, Axiata will

continuously invest in innovative

products and services that are

uniquely catered for customers in

Asia. It is committed to bringing

first-class resources, technology

and expertise to its unique portfolio

of growth assets. In all spheres of

its operations, Axiatas Operating

Companies (OpCos) play a leading

role in developing and enhancing

the local telecommunications

industry.

As a Group, Axiata is a unique

organisation, combining the local

expertise of national operating

companies with the strong support

of a regional corporation. Through

affordable connectivity, Axiata

bridges relationships between 1.5

billion people across Asia to the

world.

Today , the Group prov ides

employment to over 25,000 people

across Asia, bringing greater

opportunities and developing world

class talent across the region. Its

regional platform enables the

dynamic exchange of knowledge

among employees and contributes

to the human capital development

of the OpCos.

Axiata, as a major regional entity in

mobi le telecommunications is

committed to using its technological

and human capabilities to drive

social, economic and environmental

change in the nations it serves and

plans to introduce and implement

its Group Corporate Responsibility

(CR) Po l icy and programme

initiatives in 2009. In line with the

UN Millennium Development Goals

(MDGs), the Groups CR initiatives

will be focused on Information and

Communication Technologies (ICT)

for development, education and

the environment.

Because it understands Asia, Axiata

is piecing together the best

t h r o u g h o u t t h e r e g i o n i n

connectivity, technology and

people, uniting them towards a

single goal: Advancing Asia.

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AXIATA.pdf

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