Challenges in securing the capital Closure of international borders and prolonged movement control orders (MCOs) resulted in lower roaming revenue and significant change in data usage and consumer patterns Impact of Covid-19 on economy, business sentiment and employment led to business shutdowns and lower consumer spending Forgoing revenue to support national relief efforts such as provisioning of free data, zero-rated calls, and digitalisation subsidies Highly competitive industry with many players offering low-entry products and unlimited data plans, creating margin pressure Global supply and logistics tightness and increased geopolitical tensions creating inflation pressure and supply chain disruptions Outlook - Our continuous focus: Continue optimising financial capital management in an uncertain macro environment balancing efficiency and growth Ensure that we remain vigilant and ahead of emerging business trends and accelerated internet adoption and digitalisation Widen penetration into different customer segments and seek new growth opportunities Maintain network quality to meet customers’ needs and expectations Take a leading role in 5G adoption Financial Capital How We Create Value Digi’s financial capital is carefully managed and allocated to run day-to-day business operations efficiently and to fund attractive expansion plans. This capital is generated from business activities, investments as well as from external funding from financial institutions. Digi aims to continue to create value for all stakeholders with prudent financial capital management. Our detailed performance and outcomes created are further deliberated on the following pages. Mapping to Our Strategy and Material Matters G4 R5 Market capitalisation at RM33,899 million (as of 31 December 2021) Grew quality of the subscriber base by targeting Malaysian Prepaid, Postpaid and B2B segments, increased penetration into the underprivileged customer segment and reduced focus on low quality segments Disciplined OPEX management through ongoing initiatves to drive operational efficiencies Delivered revenue growth from core segments and devices growth Grew quality of subscriber base Leveraged rising internet and digital adoption Disciplined cost management supporting growth and modernisation Improved credit management and collection processes Prioritised investment with prudent CAPEX management to sustain network leadership and drive digital capabilities Enhancement in digital payments and affordable product offerings to drive cost efficiencies Prioritised operational efficiency and focused on driving growth in core segments Solid track record of near 100% dividend payout ratio supported by a robust balance sheet and a low gearing ratio Key Inputs Key Activities Outcomes Total assets of RM7,840 million Total Revenue RM6,336 million Net debt to earnings before interests, taxes, depreciation and amortisation (EBITDA) at 1.6x Operating cash flow of RM2,606 million Credit ratings of AAA/Stable/P1 on RAM rating (Please refer to pages 38-40 on detailed description of our Material Matters) 50 Digi.Com Berhad At A Glance Message To Shareholders How We Create Value Strategies To Create Value
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