DIGI - Annual Report 2021

Capital allocation and maintaining a strong and flexible capital structure are key priorities for Digi. Our capital allocation policy is firmly based on stringent criteria for value creation, guided by our three strategic pillars of pursuing growth, modernisation and responsible business. Thanks to the solid performance and strong balance sheet, Digi could continue its investment strategy despite the pandemic. In 2021, we continued our targeted CAPEX and OPEX investments to maintain our leading position in terms of network quality, operational efficiency and ESG. For both CAPEX and OPEX investments, we would always prioritise investments that support customer needs, followed by initiatives to support modernisation and digitalisation. Most of our RM815 million CAPEX in 2021 was spent to enhance our 4G network, catering for the increase in data consumption (more than 20GB per user, up 8.9% versus 2020) and delivering 100% of our JENDELA commitments. Our industry-leading OPEX-to-Sales ratio of 24.8% in 2021 as well as external recognitions for having the fastest and most consistent network in Malaysia are testimonies of our persistent investment in network quality, modernisation, and digitalisation. Chief Financial Officer’s Statement Q A How did Digi manage its capital in FY2021? Q How was Digi’s financial strength in meeting its financial obligation? A In 2021, Digi realised an EBITDA margin of 47.5% and a PAT margin of 18.3%. Operational cash flow reached RM2,606 million with a margin of 41.1%.The financial gearing as expressed by net interest bearing debt divided by EBITDA was at 1.6x.As at the end of 2021, Digi had a net interest bearing debt of RM2,500 million and available undrawn debt facilities of RM4,925 million. Our total asset in 2021 stood at RM7,840 million.We maintained a healthy return-on-total assets of 14.8%. Our strength in financial position enabled us to maintain the Sukuk rating of AAA/P1 with stable outlook by RAM Rating Service amidst these challenging times, supported by strong cash flow. Thanks to our solid and consistent profitability, a strong balance sheet and low gearing, Digi benefits from a low cost of capital, high financial flexibility, the ability to sustain a generous dividend payout ratio to our shareholders, and ample flexibility to fund future investment and growth opportunities. Total asset in 2021 RM7,840 million RM815 million Majority CAPEX in 2021 spent to enhance 4G network 8.9% growth in monthly average data consumption per user 19 Integrated Annual Report 2021 Governance Audited Financial Statements Other Information

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