AXIATA GROUP

BERHAD
PRESENTER:
FATIN FARHANA ROSLI
2012435698
HONEY IRMAWATI HAMZAH
2012649518

Axiata
Axiata is one of the largest Asian
telecommunications companies.
Axiata has controlling interests
in mobile operators in Malaysia,
Indonesia, Sri Lanka, Bangladesh
and Cambodia with significant
strategic stakes in India and
Singapore.
In
addition,
the
Malaysian-grown
holding
company has a stake in mobile
telecommunication operations in
Thailand.

Axiata
Axiata Group Berhad (formerly known as TM
International)
Listed on the Main Board of Bursa Malaysia Securities
Berhad since 28 April 2008
Principal activities - investment holding and provision
of telecommunication and consultancy services on an
international scale; focusing in high growth low
penetration emerging markets
Presence in 9 Asian countries
Controlling interest in Malaysia, Indonesia, Sri Lanka,
Bangladesh and Cambodia with significant strategic
stakes in India and Singapore
The Group's mobile subsidiaries and associates
operate under the following brandsCelcomin Malaysia
XLin Indonesia
Dialogin Sri Lanka

Axiata
including its subsidiaries and
associates, has over 215
million mobile subscribers in
Asia
provides employment to over
25,000 people across Asia

Axiatas vision
to be a regional champion by
2015 by piecing together the
best throughout the region in
connectivity, technology and
people, uniting them towards
a single goal:

Advancing Asia

Axiatas Aim
Axiata aims to enhance its
leadership role in each of
the different markets by
offering a comprehensive
suite of services adapted
to each of their needs.

QUESTION 1: How Successful

Axiata in International Business
Key Highlights performance
Celcom - Moderate growth in revenue
(4% YTD) despite loss of domestic
roaming revenues in September 2012.
Excluding domestic roaming, 1H2013
revenue growth would have been 7%.
XL - XLs results improved in 2Q13 due to
data growth and revenue traction from
gradual price optimization strategy
Dialog - Strong double-digit revenue
growth at 15% (YTD) and EBITDA growth
at 9% (YTD)

Cont..
Key Highlights performance
Robi - Outstanding double-digit
revenue growth of 21%; EBITDA
grew by 37% and PAT by >100%
(YTD)
Smart - Revenue for the combined
entity grew by 38% YTD and EBITDA
grew at >100% YTD
More than 100% growth in data
revenue driven by Smart Exchange

QUESTION 1: How Successful

Axiata in International Business
201
1

Telecom Asia Awards 2011, Best regional Mobile

Group 2011
Sullivan, Asia Pacific ICT Awards, Best Telecom
Group 2011
Asia Pacific Brands Foundation, BrandLaureate CEO
of the year award 2010/2011
The Edge Billion Ringgit Club 2011-Axiata Group
Berhad
Malaysian Corporate Governance Index Awards 2011,
Best Conduct of AGM and Distinction awards
Forbes Fab 50
Malaysia Achievement Summit & Awards, special
achievement individuals category-Dato Sri Jamaludin
Ibrahim

201
2

BCG Southeast Asia Challengers

Sullivan, Asia Pacific ICT Awards, Best Telecom Group
2012
Asian Corporate Giants 2012 Listing - Top 10
Bank Negara Malaysia, Emas Status for Issuance of
Sukuk
Finance Asia, Best Islamic Finance Deal 2012

QUESTION 2: How Axiata Start International

Business in Indonesia

1989
Established under the name of PT
Grahametropolitan Letsari, XL commenced
operations as a trading and general service
company
1996
Obtained a GSM 900 operating license and
launched commercial services focusing on
Jakarta, Bandung, and Surabaya.
1997
Established an integrated microcell network
in Jakartas Golden Triangle area.

Contd..
1998
Launched proXL prepaid cellular service
brand.
2000
Expanded the business into Sumatra and
Batam markets
2001
Granted a DCS 1800 spectrum allocation
and
finalized
fiber-optic
backbone.
Launched m-banking and m-fun services.
2002
Expanded network coverage to Kalimantan
and Sulawesi.

2004

Contd..

Revitalized the XL logo and individually

marketed prepaid and postpaid brands:
jempol (prepaid), bebas (prepaid) and Xplor
(postpaid).
2005
Became a subsidiary of the TM Group and
listed on the Indonesia Stock Exchange (IDX
- previously known as the Jakarta Stock
Exchange) under ticker code EXCL
2007
Introduced Rp 1/second tariff.ETISALAT, the
second largest telecommunications
company in the Middle East, became a

2008

Contd..

TM Group completed divestment process

which resulted in separated entities: TM
Malaysia Berhad (TM) and TM
International Berhad (changed name into
Axiata Group Berhad/Axiata), in which
Indocel Holding Sdn. Bhd is an indirect
subsidiary of Axiata through TM
International (L) Limited.
Axiata acquired all XL shares owned by
Khazanah Nasional Berhad, which increased
Indocel Holding Sdn. Bhd.s stake in XL to
83.8%.
2009
Conducted Limited Public Offering I to the

2010

Contd..

Majority shareholder of XL - Axiata Investments (Indonesia) Sdn.

Bhd. released a portion of shares (equal to 20% of total shares
issued) in XL through private placement in order to increase the
public float.
2011
XL embarked on a holistic transformation in business strategy to
embrace the future data business and to ensure long-term
sustainability. XL moved marketing focus from affordability by
launching new tagline, XLangkah Lebih Maju, which positions XL
as a wider appeal to telecommunication consumers whose needs
keep on increasing and more sophisticated against all services
including Data.
2012
One of XLs major Shareholder, Etisalat, divested 9.1% of their
share in XL through accelerated book-build offering to
institutional investors. This led to increase in XLs public floating
share from 20.2% to 33.5%. XL continued its focus in data
business and invested further in end-to-end network
infrastructure, more than 11,000 new BTS successfully installed in
2012.

QUESTION 3 - WHAT ARE THE CHALLENGES FACED BY

THE COMPANY SINCE ITS INVOLVEMENT IN
INTERNATIONAL BUSINESS?

COMPETITION WITH OTHER

TELECOMUNICATIONS PROVIDER
TELKOMSEL
INDOSAT
HUTCHISON TELECOM
AXIS

CHALLENGES IN HUMAN RESOURCES

Compete with other industries to have an
expert employee & very talented (tough part
to find people with industry knowledge)
Search talent has become global competition,
thus it challenges the industry itself.

PORTER 5 FORCES

QUESTION 3 - WHAT ARE THE CHALLENGES FACED BY

THE COMPANY SINCE ITS INVOLVEMENT IN
INTERNATIONAL BUSINESS?
COMPETITION WITH OTHER TELECOMUNICATIONS
PROVIDER

QUESTION 4 - WHAT OTHER FORM OF

MODE OF ENTRY HAS THE COMPANY
EMBARKED IN AND WHAT IS ITS FUTURE
PLAN?

By Acquisition

Axiata Group Berhad soon may acquire

PT Axis Telekom Indonesia by year 2013.

Future Plan
Human resource planning hired the
right people at the right place
Hired expertise
A Young Talent Programme

QUESTION 5: WHAT ARE THE POLITICAL,

CULTURAL AND LEGAL ISSUES THAT THE
COMPANY HAD TO FACE WHEN DOING
BUSINESS INTERNATIONALLY
POLITICAL AND LEGAL ISSUES
Issue in acquisition & Right issue
REGULATORY FRAMEWORK OF
TELECOMUNICATIONS SECTOR INDONESIA
Comprised specific laws, government
regulations ministerial decrees.
The government exerts authority through MoCI
The government also is an impartial policy
maker & supervisor

CULTURAL ISSUE
Value in Axiata

QUESTION 6 :WHAT ARE THE

POSSIBLE SOURCES OF RISK THIS
COMPANY HAVE FACED AND
RECOMMENDATION PROPOSED?
SOURCES OF RISK
RISK RELATING TO INDONESIA
POLTICAL ACTION RISK
ECONOMIC RISK
EXCHANGE RATE RISK
TERRORISM
RISK RELATING TO PT XL AXIATA
OPERATION RISK
SECURITY RISK
COMPETITION RISK

RECOMMENDATION
PROVIDING BEST SOLUTION IN
CUSTOMER SERVICES
VALUE ADDED SERVICES
AFTER SALES SERVICES
A RANGE PRACTICES IN BETTER
REGULATION
INNOVATION R&D
GROWTH OF FINANCIAL PERFORMANCE

CONCLUSION
International business is
important in term of
success and expanding
the business
Benefits all

THANK YOU