Analyst Teleconference 1st Quarter 2007 3 May 2007 Continued - PDF document

Analyst Teleconference 1st Quarter 2007 3 May 2007

Continued strong growth momentum Strong net adds after prepaid registration RM1bn quarterly revenue milestone High EBITDA margin 2

DiGi in Q107 EBITDA (RM mil) Revenue (RM mil) RM1bn revenue milestone driven by higher usage and growing 1015 967 customer base EBITDA margin stayed very strong 497 476 49.2% High marketing pace 49.0% Q406 Q107 Q406 Q107 added 472k new customers “Fu-Yoh” targets youth segment PAT (RM mil) Net Adds (‘000) steady progress in postpaid acquisition 472 Strong focus on customer satisfaction 246 240 230 segmented market approach narrowed coverage gap focus on network quality and capacity Q406 Q107 Q406* Q107 * Before prepaid termination 3

Strong acquisition & innovative stance Taking Prepaid to the next level - 1 low flat rate key long term value proposition “Fu-Yoh” targets youth segment Making Postpaid more convenient - FnF and Family Unlimited Plans “Yellow Coverage Fellow” enhancing coverage and quality perception 4

Mobile remittance service announced International mobile remittance from cash to cash/account, all done via mobile phone Partnership with Citigroup Targeting migrants in Malaysia – RM5 billion est. migrant remittances per year One of the first announcements globally, service to be launched mid- year 2007 5

Q107 key numbers Q107 Q-on-Q vs Q406 Y-o-Y vs Q106 Customer base 5.8 mil +9% (5.3 mil) +14% (5.1 mil) Revenue RM1,015 mil +5% (RM967 mil) +18% (RM861 mil) EBITDA RM497 mil +4% (RM476 mil) +27% (RM390 mil) EBITDA margin 49.0 % -0.2pp (49.2%) +3.7pp (45.3%) PAT RM246 mil +3% (RM240 mil) +33% (RM185 mil) EPS 32.8 sen 31.9 sen 24.6 sen 6

Very high net additions this quarter +11% Prepaid +44% Postpaid +9% Prepaid Custome rs +9% Postpaid Added 472k new customers 549 464 422 505 382 353 Prepaid acquisition 5234 4807 supported by 1LFR 5126 5018 and additional value 4704 4442 propositions 27.3% 25.6% 25.3% Steady progress in 24.8% 24.6% postpaid acquisition Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2006 2006 2006 2007 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Prepaid (‘000) Subscriber market share (%) Postpaid (‘000) 7

Higher MOU for both prepaid and postpaid +16% Prepaid +14% Postpaid +19% Blended +12% Prepaid AMPU +3% Postpaid +12% Blended Driven by higher 389 380 392 422 418 432 overall usage across all segments Positive impact from: 169 162 163 162 173 193 - inter-segment termination charge 152 145 144 140 150 168 - lower base after prepaid registration (on average subscriber base) Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2006 2006 2006 2007 Prepaid (mins) Postpaid (mins) Blended (mins) 8

Strong ARPU rebound +8% Prepaid -2% Postpaid +9% Blended +6% Prepaid +4% Postpaid ARPU +7% Blended Prepaid higher from festive usage and bonus airtime 99 96 105 95 90 94 Postpaid mass gaining traction 58 54 54 53 55 59 55 51 50 49 52 55 Q4 Q1 Q2* Q3 Q4 Q1 2005 2006 2006 2006 2006 2007 * (Including one-time adjustment of RM12 mil for postpaid (RM10 on postpaid and RM1 blended ARPU)) Prepaid (RM) Postpaid (RM) Blended (RM) 9

Maintained strong growth momentum +18% Re ve nue +5% 1015 Prepaid revenue grew 6% q-o-q 967 Postpaid revenue 921 904 grew 15% q-o-q 861 Driven by growing 828 customer base and generally higher usage 22.5% 23.5% 24.6% 24.4% 24.4% Q4 Q1 Q2* Q3 Q4 Q1 2005 2006 2006 2006 2006 2007 * (Q206 revenue included an one-time Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 adjustment of RM12 mil for postpaid) Revenue (RM mil) Est. Mobile Revenue Market share (%) 10

Higher non-SMS earnings SMS +23% Non-SMS +31% SMS +4% Non-SMS +10% Da ta re ve nue 139 152 154 164 180 189 GPRS/EDGE usage up on enhanced value propositions 32 42 43 46 50 55 Caller Tunes service getting 18.0% 18.9% 18.1% 18.7% 19.5% 19.1% significant and profitable 107 109 111 118 129 134 Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2006 2006 2006 2007 SMS (RM mil) Non-SMS (RM mil) % of mobile revenue 11

Very high EBITDA margin +27% E BIT DA +4% In-line with strong revenue growth 361 390 410 419 476 497 Low S&M spend in Q1 Cost control starts to take effect (on semi-fixed costs) 43.6% 45.3% 45.3% 45.5% 49.2% 49.0% Q4 Q1 Q2* Q3 Q4** Q1 2005 2006 2006 2006 2006 2007 • Q206 normalised EBITDA RM398mil **Q406 normalised EBITDA margin 46.6% EBITDA (RM mil) EBITDA Margin (%) 12

Key changes impacting q-o-q EBITDA margin 49.2% EBITDA margin Q406 E BIT DA ma rg in Normalised regulatory -3.2% (Other expenses @ 8.3 %) fees off-set by: lower A&P +0.8% (Ops & Maintenance @ 6.0% expenses lower operations and maintenance +0.9% (Cost of Materials & Traffic @ 20.2%) costs lower materials & traffic costs +1.9% (Sales & Mktg @ 11.7%) 49.0% EBITDA margin Q107 @ denotes % of revenue in Q107 13

Very strong PAT PAT (RM mil) Q107 Q406 2006 2005 Lower q-o-q growth EBITDA 497.2 475.8 1694.7 1259.3 due to adjusted Depreciation & (160.8) (184.5) (627.8) (583.5) deferred tax Amortisation expenses in Q406 EBIT 336.4 291.3 1066.9 675.8 Net finance 2.6 2.7 20.2 (14.2) No accelerated income/(cost) depreciation impact - Finance costs from this quarter (3.4 ) (4.4 ) (15.8 ) (32.4 ) - Interest income 6.0 7.1 36.0 18.2 PBT 339.0 294.0 1087.1 661.6 Taxation (93.0) (54.4) (281.4) (190.6) PAT 246.0 239.6 805.7 471.0 EPS (sen) 32.8 31.9 107.4 62.8 14

Focus on quality, capacity and new technology Ca pe x Low Capex in Q1 due to change in focus from coverage to quality 333 and significant capacity upgrade 293 215 Upcoming migration 126 117 to IP-based next generation network 101 and new IN platform 40.2% 14.6% 12.9% 23.3% 30.2% 9.9% Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2006 2006 2006 2007 Capex Capex/Revenue (%) 15

Increasing cash balance F re e c a sh- flow (RM mil) Q107 Q406 Payment of Cash at start 869.5 1138.8 RM315 mil final Cash-flow from operations 458.6 355.2 dividend pending Changes in working capital (296.2) 108.1 shareholders approval Cash-flow used in investing activities (94.0) (282.6) - Capex (100.9) (292.6) High operational Cash-flow used in financing activities 0.0 (450.0) cash flow amid Net change in cash 68.4 (269.3) unusually low Cash at end 937.9 869.5 capex in Q1 Operational cash-flow 396.3 183.2 (EBITDA – Capex) 16

Solid but underleveraged balance sheet Ke y ra tios RM mil 31 Mar 2007 31 Dec 2006 Improving ROE Capex 100.9 750.2 and ROCE q-o-q Capex/Revenue 9.9% 20.5% Total borrowings 300.0 300.0 Higher cash Cash & cash equivalents 937.9 869.5 balance from Total assets 4106.9 4076.1 strong operating cash-flow ROE 12.3% 19.8% ROCE 12.6% 43.8% Current ratio 0.9x 0.7x Net debt/equity (x) net cash net cash Net debt/EBITDA (x) net cash net cash FCF per share (sen) 52.8 sen 24.4 sen Net assets/share (RM) RM2.66 RM2.34 17

18 Balance sheet initiatives Telenor ownership Verbal updates Industry update Regulatory

Industry updates - challenges and opportunities Mature markets; high penetration in High penetration also in Malaysia but still remaining growth western world Fight for emerging market telecom DiGi to remain focused on Malaysia assets Possibly, but DiGi geared to face such More competition & more regulation challenges = lower prices Likely long time for big market impact due WiFi, WiMAX, & HSPA creating fixed to low PC penetration; fragmented price IP business models; industry structure; early in tech life cycle, challenging mobile concept dependency on handsets/PC cards In DiGi, data revenue @ 19%, Slower than expected revenue optimistic about further growth growth of new data services 19