Dialog Axiata PLC - Dialog Home Page Growth and Cost Improvements +6% Dialog Axiata PLC (Company) Dialog Continues to Capture Market Share; Data and Recovery in Core Revenues Diving

Dialog Axiata PLCSri Lanka's Premier Connectivity Provider

Q3 2017

an axiata company

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Dialog Group Performance

Dialog Axiata Company Performance

Subsidiary Performance

Colombo Trust Finance PLC – Acquisition Update

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Dialog Group Performance Highlights – Q3 2017 Dialog Consolidates Performance with Strong 3rd Quarter Results

Solid Growth in Q3 backed by Strong Recovery in Core Revenue Streams and Cost Initiatives• Q3 2017 Group Revenue at Rs24.2Bn, grew 5% QoQ. 11% YoY• Q3 2017 Group EBITDA at Rs9.4Bn, grew 16% QoQ, 22% YoY• Q3 2017 Group PAT grew significantly by 59% QoQ to reach Rs3.7Bn, up 31% YoY

YTD Revenue and EBITDA improved Significantly while NPAT Impacted by Higher Non Operating Cost• YTD 2017 Group Revenue at Rs69.4Bn, grew 8% YTD• YTD 2017 Group EBITDA at Rs24.8Bn, up 14% YTD; Group EBITDA Margin improved to 36%• YTD 2017 Group PAT declined 2% YTD to reach Rs7.6Bn

Majority of Investments Focused Towards Expanding Data Network including Internet Data Centre (IDC)• YTD 2017 Capex of Rs17.1Bn – up 34% YTD; Capex Intensity at 25%

All Business Units Continued to Consolidate Performance Amidst Aggressive Competitive Environment• Dialog Mobile continued to grow underpinned by Data adoption – Data Growth of 11% QoQ and 42% YTD• Dialog Broadband Networks (DBN) – Third consecutive quarter of positive PAT (Rs1.2Bn for YTD 2017)• Dialog Television (DTV) – Aggressive cost initiatives driving EBITDA growth of 84% in Q3 2017 with Net Loss declining QoQ

Aggressive Subscriber Growth • Mobile subscriber base of 12.7Mn – up 2% QoQ and 12% YTD• TV subscriber base of over 926k – up 2% QoQ and 17% YTD

Completed the Acquisition of 80.34% of the shares in Colombo Trust Finance PLC with a View toExpand into Micro Lending and Savings. Mandatory offer closed on 2nd November 2017

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Group Financial SummaryStrong Q3 Performance Amidst External Challenges; YTD Revenue and EBITDA Growth of8% and 14% Respectively while YTD PAT Impacted by Higher Non Operating Cost

All Key Performance Indicators improved on a QoQ and YoY basis; Strong recovery in Core Revenue streams and Efficient Cost Management driving QoQ and YoY performance.

However, YTD PAT continued to be impacted by increase in depreciation, net finance cost and non cash translational foreign exchange losses

1 Normalised for non-cash translational foreign exchange losses

Rs Mn 3Q 17 QoQ YoY YTD 2017 YTD

Revenue 24,218 5% 11% 69,395 8%

EBITDA 9,400 16% 22% 24,751 14%

PAT 3,721 59% 31% 7,614 -2%

PAT (Norm)1 3,632 39% 28% 8,049 0%

EBITDA Margin 38.8% 3.5pp 3.3pp 35.7% 1.6pp

PAT Margin 15.4% 5.2pp 2.3pp 11.0% -1.2pp

ROIC 15.0% 1.6pp -1.5pp 15.0% -1.5pp

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Group Revenue Continued its Growth Trajectory, Recording a Growth of 5% QoQ, 11% YoY and 8% YTD

24,218 23,012 21,748

69,395 63,970

Q3 17 Q2 17 Q3 16 YTD 17 YTD 16

• Mobile Data continued its upward trend, recording a growth of 11% QoQ, 39% YoY and 42% YTD driven byincreased Smartphone penetration and improved coverage

• Mobile Voice grew 1% QoQ and remained flat YoY albeit declined 1% YTD

• International Revenue up 11% QoQ on the back growth in Hubbing Revenue while drop in termination revenuestabilised through partnerships with key International Retail Operators

• Aggressive customer reconnection driving Fixed Home Broadband Revenue growth of 6% QoQ, 48% YoY and 57%YTD

• Television Revenue growth challenged due to declining postpaid ARPU amidst affordability pressure

(Rs Mn) +11%

+5%

Strong Recovery of Core Revenue Streams Driving Overall Revenue Growth

+8%

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9,400 8,130 7,714

24,75121,790

38.8% 35.3% 35.5% 35.7% 34.1%25.0%

35.0%

45.0%

55.0%

65.0%

0

5,000

10,000

15,000

20,000

Q3 17 Q2 17 Q3 16 YTD 17 YTD 16

EBITDA EBITDA Margin

+22%

+16%

QoQ PAT Growth Backed by EBITDA while PAT Margin Stood at 15.4% in Q3, up 5.2pp QoQ

3,721 2,347 2,832

7,614 7,790

15.4%10.2% 13.0% 11.0% 12.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

-

600

1,200

1,800

2,400

3,000

3,600

4,200

4,800

5,400

6,000

6,600

7,200

7,800

Q3 17 Q2 17 Q3 16 YTD 17 YTD 16PAT PAT Margin

+31%

+59%

Q3 17

Rs14,818MnTotal Cost

1.4%

As % of revenue

25.1%

12.7%

12.7%

8.5%

0.8%

61.2%

Bad Debt

Overheads

Staff Cost

Network Cost

Sales & Marketing

Direct Expenses

Q2 17

Rs14,882Mn

As % of revenue

25.4%

14.2%

12.7%

7.3%

1.6%

3.5%

64.7%

Q3 16

Rs14,036Mn

As % of revenue

26.1%

14.8%

12.8%

8.1%

0.2%

2.5%

64.5%

YoY

7%

-4%

11%

16%

-39%

5.6%

278%

QoQ

4%

-6%

5%

21%

-58%

-0.5%

-48%

Q3 Profitability Growth Delivered on Strong Recovery in Core Revenues and CostInitiatives; EBITDA Margin Improved 3.5pp QoQ

(Rs Mn)

Total Cost to Revenue Ratio Improved by 3.5pp QoQ Driven by Cost Improvements; Realised Cost Savings of Rs2.5Bn YTD

+14%(Rs Mn)

-2%

YTD 17

Rs44,644Mn

As % of revenue

25.7%

14.0%

13.0%

8.0%

1.0%

2.6%

64.3%

YTD

0%

8%

15%

11%

-11%

5.8%

10%

Strong EBITDA Growth and Improved EBITDA Margins

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6,608 6,535 5,651

17,136 12,742

-

2,00 0

4,00 0

6,00 0

8,00 0

10,0 00

12,0 00

14,0 00

16,0 00

18,0 00

Q3 17 Q2 17 Q3 16 YTD 17 YTD 16

27% 28% 26% 25% 20%

1,393

280 465

3,102

4,724

6%

1% 2%

4%7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Q3 17 Q2 17 Q3 16 YTD 17 YTD 16

OFCF As % of revenue

Focused Capex Investments to Support Rapid Growth in DataYTD 2017 Capex Intensity at 25%

* Capex excluding CPE (Customer Premises Equipment) investments

+17%

+1%

CapexIntensity

(Rs Mn)

Q3 17 Q2 17 Q3 16 YTD 17 YTD16

Positive OFCF with Strong Operating Cashflows and Efficient Working Capital Management

>+100%

>+100%

(Rs Mn)

+34%

-34%

Capex Investments Directed Towards Expanding Data Network; 4G and Fixed LTE Coverage Reached 40% and 52%

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Group’s Net Debt to EBITDA Remained Healthy Below 0.9x with ImprovedProfitability and Working Capital Management

(Rs Mn)

Group continued to maintain a structurally strong balance sheet, with Net Debt to EBITDA maintained at below 0.9x

Demonstrates the Group’s financial strength and capacity to drive business growth via timely and aggressive investments

30 Sep 17 30 Jun 17 30 Sep 16

Gross Debt 33,220 33,402 31,916

Net Debt 29,471 28,887 26,845

Cash and Cash Equivalents 3,751 4,515 5,072

Gross Debt / Equity (x) 0.57 0.61 0.61

Gross Debt/ EBITDA (x) 1.01 1.09 1.10

Net Debt/ EBITDA (x) 0.89 0.94 0.92

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10,103 10,572 11,008 11,158 11,350

1,209 1,253 1,260 1,271 1,314

Q3 16 Q4 16 Q1 17 Q2 17 Q3 170

2,0 00

4,0 00

6,0 00

8,0 00

10, 000

12, 000

Postpaid Subs Prepaid Subs

20,055 19,036 18,306

57,425 53,944

15, 000

20, 000

25, 000

30, 000

35, 000

40, 000

45, 000

50, 000

55, 000

60, 000

Q3 17 Q2 17 Q3 16 YTD 17 YTD 16

(Rs Mn)+10%

+5%

Revenue Growth Driven by Data, Voice and International Revenues

QoQ Profitability Improved on the back of Revenue Growth and Cost Improvements

+6%

Dialog Axiata PLC (Company)Dialog Continues to Capture Market Share; Data and Recovery in Core Revenues DivingQoQ ARPUs

Aggressive Subscriber Acquisition led to the Growth in Subscribers

11,82511,313 12,268 12,429 12,664

Total subs growth +2% QoQ; +12% YTDPostpaid subs growth +3% QoQ; +9% YTDPrepaid subs growth +2% QoQ; +12% YTD

Data Driving ARPU Growth Supported by 4G Conversion and Coverage Expansion

406 393 375 383 398

133

128 123

120 122

4%

-3%-5%

2%4%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

-

50

100

150

200

250

300

350

400

450

Q3 16 Q4 16 Q1 17 Q2 17 Q3 17Blended ARPU Blended MOU Blended ARPU Growth

Q3 17 QoQ YoY YTD 17 YTD

EBITDA 7,369 14% 10% 19,557 4%

PAT 3,315 41% 9% 7,399 -12%

EBITDA Margin % 36.7% +2.8pp +0.3pp 34.1% -0.9pp

PAT Margin % 16.5% +4.2pp -0.1pp 12.9% -2.7pp

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Q3 17 QoQ YoY YTD 17 YTD

EBITDA 202 84% >+100% 377 22%

PAT -106 51% 11% -634 -83%

EBITDA Margin % 12.5% +5.3pp +5.8pp 8.1% +1.4pp

PAT Margin % -6.5% +7.8pp +1.7pp -13.7% -6.1pp

Dialog TelevisionSignificant Improvement in QoQ EBITDA and PAT Driven by Aggressive Cost Initiatives

1,615 1,517 1,437

4,631 4,577

1,0 00

1,5 00

2,0 00

2,5 00

3,0 00

3,5 00

4,0 00

4,5 00

5,0 00

Q3 17 Q2 17 Q3 16 YTD 17 YTD 16

(Rs Mn)

+12%

+6%

TV Revenue Growth Continued to be Challenged with Drop in Postpaid Subscribers and ARPUs; Subscription

Revenue Stable QoQ Amidst Affordability Pressure

DTV Rebound Initiatives Continued to Gain Traction with QoQ EBITDA Improving by 84% Leading to a Decline in Net

Loss by 51% QoQ

428 431 426 427 421

363 408 440 484 505

Q3 16 Q4 16 Q1 17 Q2 17 Q3 17

Post paid Pre Paid

Prepaid Subscriber Base Continued to Register Strong Growth of 4% QoQ and 39% YTD

Total subs growth +2% QoQ; +17% YTDPostpaid subs growth -1% QoQ; -2% YTD

Prepaid subs growth +4% QoQ; +39% YTD

867839791911 926

(in ‘000s)

+1%

(Rs Mn)

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3,158 3,0282,406

9,098

6,761

1,0 00

2,0 00

3,0 00

4,0 00

5,0 00

6,0 00

7,0 00

8,0 00

9,0 00

10, 000

Q3 17 Q2 17 Q3 16 YTD 17 YTD 16

Dialog Broadband Networks – Fixed BusinessRevenue Growth Underpinned by Home Broadband (HBB) on the back of Network CoverageEnhancement and Aggressive Customer Reconnection Drives

(Rs Mn) +31%

+4%

Strong Growth in HBB Revenue Driving QoQ and YTD Revenue improvement

Third Consecutive Quarter of Positive PAT on the back of Strong Revenue Growth

Prepaid offering for Fixed HBB launched inJuly 2017 to expand affordability and toreach a wide spectrum of Sri LankanHouseholds

+35%

(Rs Mn) Q3 17 QoQ YoY YTD 17 YTD

EBITDA 1,921 16% 96% 5,072 84%

PAT 640 93% >+100% 1,208 >+100%

EBITDA Margin % 60.8% +6.3pp +20.1pp 55.7% +14.9pp

PAT Margin % 20.3% +9.3pp +21.2pp 13.3% +14.2pp

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Colombo Trust Finance PLC (CTF) – Acquisition Update

The acquisition of 80.34% of the shares in Colombo Trust Finance PLC by Dialog Axiata PLC was completed on the 12th ofSeptember 2017. Accordingly the assets and liabilities of CTF have been reflected in the consolidated balance sheet ofthe Dialog Group

CTF Operational Update

Impact on Q3 2017

Financial Statements

of Dialog Group

Acquisition

Transaction Update

▪ Rs550Mn capital infusion due based on CBSL minimum capital requirementguidelines

▪ Digital Bank is expected to be operational by Q2 2018

▪ CTF will not have a material impact on the earnings, gearing and Net asset of DialogGroup

▪ Goodwill arising from the acquisition amounted to Rs710Mn is classified underintangible assets

▪ Acquisition related transaction cost of Rs25.3Mn recognised▪ P&L consolidation will be reflected from Q4 2017 onwards

▪ Mandatory offer for the remaining 19.66% of shares were made, and the offer wasclosed on 2nd November 2017

▪ Shareholders holding 8.6Mn shares have accepted the mandatory offer which willincrease Dialog’s stake to 98.87%; Subject to the approval of the transfer of sharesbeing obtained from SEC

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Thank You

Dialog Axiata PLC - Dialog Home Page Growth and Cost Improvements +6% Dialog Axiata PLC (Company) Dialog Continues to Capture Market Share; Data and Recovery in Core Revenues Diving

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