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CONFIDENTIAL
DiGi in the Malaysian mobile market
Total market subscriptions (Total market subscriptions (‘‘000)000) Mobile penetrationMobile penetration
78.2%72.3%74.1%
56.5%
43.9%36.9%
2002 2003 2004 2005 2006 1H2007
195451945419511
14611
111249053
2002 2003 2004 2005 2006 1H2007
61165312
4795
32392207
1616
2002 2003 2004 2005 2006 3Q2007
Source: MCMC
DiGi subs & revenue market shareDiGi subs & revenue market share
24.6% 24.8% 25.3% 25.6%
27.3%28.1% 28.4%
22.5%23.5%
24.6% 24.4% 24.4%25.4%
Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007
Subscriber Share Mobile Revenue Share
Source: MCMC
DiGi subscriber base (DiGi subscriber base (‘‘000)000)
CONFIDENTIAL
DiGi in Q307
3
1113
526
1058
502
273250 241
93
Revenue (RM mil) EBITDA (RM mil)
PAT (RM mil) Net Adds (‘000)
Q207 Q307 Q207 Q307
Q207 Q307 Q207 Q307
47.4% 47.3%
Strong revenue growth momentum
on increasing MOU and stable ARPU
solid EBITDA margin
Healthy gross activations
added 93k new customers
prepaid impacted by rotational churn
steady postpaid growth
Ongoing focus:strengthen key market offerings
operational excellence
upgrade of core technology platforms
CONFIDENTIAL
Q307 – key numbers
Q307 Q-o-Q vs Q207 Y-o-Y vs Q306
Customer base 6.1 mil +2% (6.0 mil) +9% (5.6 mil)
(RM1,058mil) (RM921 mil)
(RM419 mil)
(45.5%)
(RM181 mil)
24.1 sen
(RM502 mil)
(47.4%)
(RM250 mil)
33.4 sen
Revenue RM1,113 mil +5% +21%
EBITDA RM526 mil +5% +26%
EBITDA margin 47.3% -0.1pp +1.8pp
PAT RM273 mil +9% +51%
EPS 36.4 sen
CONFIDENTIAL
Current propositions by DiGi
1Plan and 1LFR reinforcing simplicity and best value position
Strengthening brand affinity – YCF and True Value postpaid prepaid campaigns
Launched DiGiRemit –international mobile cash remittance
CONFIDENTIAL
Strong financial performance YTD
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
YTD2006
YTD2007
EBITDA / Margin (RM mil)EBITDA / Margin (RM mil)Revenue (RM mil)Revenue (RM mil)
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
YTD2006
YTD2007
2686
31861219
1525
904 921 967 1015 1058 1113 410 419 476 497 502 526
45.4%45.3% 45.5%49.2% 49.0% 47.4%
47.3%47.9%
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
YTD2006
YTD2007
Profit After Tax (RM mil)Profit After Tax (RM mil) Free Free CashflowCashflow (RM mil)(RM mil)(FCF = EBITDA – Capex)
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
YTD2006
YTD2007
210 181 240 246 250 273
770566
293 205 183 396 403 367 761
1167
CONFIDENTIAL
73 sen net special dividend
Committed to a more efficient capital structure
Cash dividend (net sen/share) : paying progressively higher dividends
CR1 CR2 IntDiv FinDiv IntDiv SpDiv10/05 4/06 7/06 4/07 7/07 10/07
75 sen
60 sen
38.5 sen
50.0 sen
42.0 sen
73 sen
Capital Repayment (CR)
Dividends (interim/final)
Special Dividends
YTD FY 2007 FY 2006
Total borrowings RM300 mil RM300 mil
Cash & cash equivalents
RM931 mil RM870 mil
ROE 42.0% 46.0%
ROCE 43.1% 43.8%
*FCF/share 49.0 sen 24.4 sen
* FCF = EBITDA - Capex
Total pay-out RM2.5bn
7
CONFIDENTIAL
Competitive and industry situation
SIM activations and tariffsprepaid registration low barrier to rotational churn
some pressure on core tariffs
flat price models stimulating higher usage
# of players will increase3 player market today
MVNOs coming into the market
U Mobile preparing for launch
Competition intensifyinghigh marketing activity level
preparing for MNP and potential new entrants
handset subsidies and commitment plans more prevalent as retention/acquisition tools
Low broadband uptake slow growth of 3G services
also slow uptake of other broadband services
possible review and reallocation of spectrum in 2008
CONFIDENTIAL
Raising 2007 guidance
Revised guidance
Revenue growth (%) high teens
EBITDA margin (%) around 47% - 48%
Capex RM600 mil - RM700 mil
PAT / EPS growth (%) high 20’s
9
CONFIDENTIAL
DiGi going forward
Aim for higher market sharemore segmented/niche offerings
focus where we have further potential
continued strong branding
Still opportunities for growthgood potential in segments where we are currently weak : postpaid, business, rural and high-end
MNP and nationwide coverage remove main barriers for DiGi’s growth in these segments
further potential in MOU and data
Operational excellenceprocess re-design and cost focus
planned investments in network quality, capacity and upgrades
enhanced customer experience
strong focus on human capital
Capital management initiativesongoing focus to right-size balance sheet
single-tier tax system has removed tax credit constraint
committed to return excess cash
development
CONFIDENTIAL
High level 2008 Guidance
Guidance
Revenue growth (%) high single digit
EBITDA margin (%) mid-40’s
Capex RM700 mil - RM900 mil
PAT / EPS growth (%) high single digit
11
CONFIDENTIAL
Investing in DiGi
above industry averagerevenue growth
strong cash-flow generation and high yield
narrowed coverage gap
competitive & innovative
gaining market sharestrong support
strong branding
Pure M’sianmobile player
balance sheet strength
CONFIDENTIAL
488
645724
613540516
435
683 724
1,097
921
418
Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07
EBITDA CAPEX
146
Grameenphone - Bangladesh
Challenging environment
9971,133
1,229 1,152 1,155 1,170
49%57% 59% 53% 47%
36%
Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07
Revenues (NOKm)/EBITDA%
Revenue growth of 15% in local currency
Compensation charge of NOK 146 million in Q3
Underlying EBITDA margin of 48%
Interconnect rates reduced from 1 Oct
Mandatory registration of subscriber base by mid Dec 2007
48%
CONFIDENTIAL
1,893 2,041 2,158
2,960 2,999 2,981
37% 36% 37%30% 29% 28%
Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07
DTAC - Thailand
Increased tariffs in Q3Revenues (NOKm)/EBITDA%
698 732795
872 864 828
543 565
737
534432 428
Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07
EBITDA CAPEX
Net adds of 400k to 14.9 million
Revenue growth of 5% in local currency excluding interconnect
Underlying EBITDA margin of 30%
Revised outlook 2007:
Revenue growth of 5-10%
EBITDA margin of 28-30%
CONFIDENTIAL
265333
486
686
841 887
17%7%
Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07
-117 -87 -47
-3 59
1,013
150
880742754 701
847
Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07
EBITDA CAPEX
Revenues (NOKm)
Telenor Pakistan
Increasing market shareTelenor Pakistan
Increasing market share
Net adds of 1.9 million subscriptions in Q3 to 12.6 million
Market share from 17% to 18%*
EBITDA affected positively by discount on leased line
Average price decline of 6% in Q3
*PTA figures
CONFIDENTIAL
From two to three players
Net adds of 118k in Q3
ARPU increased by 7% in local currency
Campaigns targeting summer roamers and contract subscribers
Telenor Serbia
Increased competition
175
551669
723804
37% 38% 39% 35%
Q3 06 Q4 06 Q1 07 Q2 07 Q3 07
Revenues (NOKm)/EBITDA%
103
206252
281 279
49
114 108
167
267
Q3 06 Q4 06 Q1 07 Q2 07 Q3 07
EBITDA CAPEX
CONFIDENTIAL
Mobile Operations
ARPU development (USD)
4.64.9
5.4
6.36.57.2
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
Grameenphone
4.34.64.64.54.3
4.8
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
Telenor Pakistan
17.417.017.316.115.515.8
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
DiGi
11.412.0
12.8
10.510.911.2
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
DTAC
15.014.413.7
13.0
Q4 2006 Q1 2007 Q2 2007 Q3 2007
Telenor Serbia
FX as at 30.09.2007
CONFIDENTIAL
214
247
213241 252 245
0.03 0.03 0.03 0.02 0.02 0.02
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
Grameenphone Telenor Pakistan DiGi
DTAC
MoU APPM (USD)
Mobile Operations
MoU/APPM development
123
153146132
142154
0.03 0.04 0.03 0.03 0.03 0.03
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
162
194
163173
193 187
0.10 0.10 0.09 0.09 0.09 0.09
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
314
365327 329
403 396
0.03 0.03 0.03 0.03 0.03 0.03
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
76
87 8590
0.150.18 0.17 0.17
Q4 2006 Q1 2007 Q2 2007 Q3 2007
Telenor Serbia
CONFIDENTIAL
Net interest-bearing debt in partly owned subsidiaries
(NOKm) Q3 2007 Q2 2007 Q3 2006
DiGi 61.0% -1 008 -1 212 -1 472
DTAC 65.5% 3 839 4 775 6 288
Grameenphone 62.0% 1 015 901 624
EDB Business Partner
51.4% 2 076 2 109 1 939