Investor Update Q1 2013 Earnings Conference Call

Henrik Clausen, CEO

Terje Borge, CFO

23 Apr 2013

OPEN

Earnings Concall/ Q1 2013

1

Key highlights

Operational highlights

Financials updates

Guidance and outlook

Q&A

2

321 324 315 246 329

737 752 715 725 720

1,569 1,580 1,583 1,629 1,647

Q112 Q212 Q312 Q412 Q113

PAT EBITDA Revenue

Performance at a glance

Q1 2013

Steady revenue growth to commence the year

1.1% q-o-q 5.0% y-o-y

Revenue growth

44% EBITDA margin

34.0% q-o-q PAT growth

3

Q1 2013

Current quarter financial performance in line with plans

1.1% revenue growth

against seasonally high Q412 driven by strong data revenues

and device bundles

data revenue at 34% of service revenues

device revenues 10% of total revenues

MI subscribers up 2% q-o-q with steady ARPU

44% EBITDA margin and

34% q-o-q PAT growth

EBITDA at 44% from increased device bundles

PAT increased to RM329m

1st interim dividend of 3.8 sen per share

Network modernisation progressing as planned

additional 810 NW sites and completion of 784km joint fibre

68% of sites swapped and optimised

Pop. coverage expansion: 3G at 68% and 2G at 95%

NW sharing – focus on fiber built

4

Key highlights

Operational highlights

Financials updates

Guidance and outlook

Q&A

5

Q1 2013

New launches – marketing update

• Smart Plans revamped with bundled minutes, sms and data quota for smart apps usage

– Increasing the monthly commitment fee for entry-level subscriptions with bundled offerings

– Ensure allowance for traditional voice and sms usage

– New plans to attract high ARPU subscribers

• Re-launched DiGi Best Prepaid simpack at a higher value

– Pack price up from RM8.5 to RM10.5

– Bundled with 2 days internet free trial after 1st call activation

• Extended Internet Tablet Plan, a zero contract with no bill shock and worry free internet roaming

• Refreshed data offerings aimed at stimulating increase take up of data usage whilst protecting core offerings on traditional voice and messaging

Internet For All

Focus on Youth

6

Q1 2013

Continued focus on quality subscriber acquisition and data adoption

• Lower prepaid subscriber base due to

– Initiatives taken to drive quality subscribers from revision of SIM pack pricing and streamlining of sales acquisition

– Higher prepaid rotational churn post year end festive period

• Higher postpaid subscriber base attributable to positive traction on device bundles take-up with focus on managing postpaid retention following expiry of contract period

– MI subscribers now make up to 56.3% of total subscriber base

• Data subscribers recorded a healthy q-o-q growth of 1.5% mainly driven by 1.8% q-o-q growth on mobile internet subscription

– Tablet plans showing steady growth in Q1

– Revitalizing dongle business with strong on ground push and retention activities in pipeline

7

8,303 8,580 8,647 8,823 8,694

1,633 1,649 1,657 1,671 1,678

9,936 10,229 10,304 10,494 10,372

Q112 Q212 Q312 Q412 Q113

Prepaid Postpaid

-1.2%

+4.4%

Subscriber development (‘000)

Data subscriber mix (‘000)

5,349 5,413 5,560 5,734 5,838 315 320 298

273 262 5,664 5,733 5,858 6,007 6,100

Q112 Q212 Q312 Q412 Q113

MI Subs BB Subs

+1.5%

+7.7%

Q1 2013

Slight decline in ARPU in a seasonally low quarter but data ARPU continued to increase

• ARPU continued to be resilient q-o-q despite a slight decline for both postpaid and prepaid due to Q1 being a seasonally low quarter in addition to the impact of lower termination rate from 1 January 2013

• Prepaid expansion into lower ARPU markets, will inadvertently attract lower ARPU subscribers

• Growth in data ARPU aided by improved data network quality and network coverage as well as refreshed data offerings that stimulated data take up

• Ongoing drive on data usage through smart apps and introduction of bite sized trial data quotas further proliferate the data adoption

8

85 85 82 83 82

41 41 41 41 40

Q112 Q212 Q312 Q412 Q113

Postpaid Prepaid

34 33 33 32 31

6 6 7 7 8

7 7 6 6 6 2 2 2 2 2

Q112 Q212 Q312 Q412 Q113

Voice MI & BB Messaging VAS

49 48 48 47 47

ARPU mix (RM)

Blended ARPU composition (RM)

Q1 2013

Voice usage remained stable

270 270

265

267 267

Q112 Q212 Q312 Q412 Q113

Blended MoU

14 14 14 14

13

Q112 Q212 Q312 Q412 Q113

APPM

• Voice MoU remained stable at 267, despite the more data centric subscriber base, and the seasonal effects on the quarter.

• Slightly lower APPM from continuous price competition on both domestic as well as international voice traffic resulting in overall lower voice ARPU

Voice MoU (min)

Voice price (sen)

9

Q1 2013

Steady growth in smartphone penetration

• More devices sold in Q1 due to continued strong demand for iPhone 5 and Samsung Note II as well as more affordable range of android phones.

• Further uptake driven from the Govt’s Youth Programme where qualifying youths are entitled to RM200 rebates on the purchase of smartphones

• This has further spurred increase in:

— Smartphone penetration +2.1pts to 28.5%

— MI subscribers penetration +1.7pts to 56.3%

10

66

91 100 95

119

Q112 Q212 Q312 Q412 Q113

53.8% 52.9% 54.0% 54.6% 56.3%

22.2% 23.5% 24.8% 26.4% 28.5%

Q112 Q212 Q312 Q412 Q113

% of MI subs % of smartphone subs

No. of handset and devices sold (‘000)

Smartphone penetration %

Q1 2013

Solid foundation to bringing Internet For All to life, embracing a customer-centric mindset & completing the NW modernisation

• Network quality continuing to improve ― Improved minutes per drop call, voice quality

and successful call setup ― Healthy growth in NW traffic both for voice

and data

• Network swap on-track and good 3G rollout momentum

– Successfully upgraded >3,800 sites (68% of our network)

– Additional 60 km fibre built with further acceleration in the remaining quarters

– Pop. coverage expansion: 3G at 68.1%, 2G at 95.4%

• Active roll out of Partner-Owned DiGi Store Express

concept outlets nationwide – Improved customer experience – Enable more effective mobile internet

acquisition – Drive increased data usage – More efficient retail operations

Network Minutes Per Drop (MPD)

22 DiGi Stores and 56 DSEs nationwide (expanding to 25 and 150 over 2 yrs)

1

4

7

10

13

16

19

22

25

28

31

34

37

39

42

45

48

51

2'1

3

5'1

3

8'1

3

11

'13

Week

11

Key highlights

Operational highlights

Financials updates

Guidance and outlook

Q&A

12

Q1 2013

1.1% q-o-q revenue growth

13

1,459 1,470 1,470 1,492 1,476

110 110 113 137 171

1.6% 0.7% 0.2% 2.9% 1.1%

-10000.0%

-8000.0%

-6000.0%

-4000.0%

-2000.0%

0.0%

1,350

1,400

1,450

1,500

1,550

1,600

1,650

1,700

Q112 Q212 Q312 Q412 Q113

Service Revenue Device & Oher Revenue

69% 70% 69% 67% 66%

31% 30% 31% 33% 34%

1,459 1,470 1,470 1,492 1,476

1,000

1,100

1,200

1,300

1,400

1,500

1,600

0%

20%

40%

60%

80%

100%

120%

Q112 Q212 Q312 Q412 Q113

Voice Revenue Data Revenue

Revenue composition (RM’m)

q-o-q growth

rate

Service revenue composition (RM’m) (% of service revenue)

Q1 2013

Marginally lower service revenue on the back of seasonally high Q412

• Q113 service revenues were adversely impacted by lesser days compared to the previous quarter and the downward revision of the voice I/C rate

– Adjusting the two factors, service revenue growth would have been 0.7% q-o-q and 2.5% y-o-y

– Pro-longed business closures adversely impacted the postpaid revenue q-o-q

• Recent market activities like refreshed smart plans, tablet and prepaid offerings will only have a visible impact from Q213 and onwards

• Going forward, data revenues will be driven by

– Converting occasional users to subscriptions

– Growth in active MI subscribers

– Tablet push, quota top up subscription as well as higher share in BB market

• On the other hand, voice revenues will be driven by

– Sustained voice revenues through migrant retention plans and improved traction in SME segment

– Improved prepaid churn and quality of subscribers

– Acquisition drive in secondary markets

14

1,032 1,034 1,050 1,067 1,050

427 436 420 425 426

1,459 1,470 1,470 1,492 1,476

Q112 Q212 Q312 Q412 Q113

Prepaid Postpaid

Service revenue mix (RM’m)

Voice revenue (RM’m)

785 792 792 785 768

226 233 218 219 210

1,011 1,025 1,010 1,004 978

Q112 Q212 Q312 Q412 Q113

Prepaid Postpaid

-1.1%

+1.2%

-3.3% -2.6%

Q1 2013

9.5% q-o-q growth in MI & BB revenue

• 10.4% q-o-q growth in prepaid mobile internet revenues mainly driven by higher number of Internet subscriptions

• 14.4% q-o-q growth in postpaid mobile internet revenue from increasing demand for data services as precipitated by the continuous roll-out of relevant smartphone and smart plan bundles

• MI penetration now at 68% of postpaid subscribers and 54% of prepaid subscribers

• Lower messaging and VAS q-o-q mainly due to fewer days in Q113 compared to previous quarter whilst y-o-y movement a result of regulatory restriction on bulk sms.

• Stabilise messaging revenue through new smart plans which bundles traditional voice and messaging

15

Data revenue mix (RM’m)

188 191 210 242 265

200 195 194 193 183 60 59 56 53 50

448 445 460 488 498

Q112 Q212 Q312 Q412 Q113

MI & BB Messaging VAS

MI penetration rate

67% 68% 65% 67% 68%

51% 50% 52% 52% 54%

Q112 Q212 Q312 Q412 Q113

Postpaid Prepaid

3.3% 3.5% 3.6% 3.7% 3.5%

5.5% 6.1% 5.9% 5.7% 5.8%

5.2% 3.7% 5.1% 4.5% 5.0%

3.8% 3.8% 3.8% 3.1% 3.6%

7.9% 7.9% 8.5%

7.5% 7.4%

25.7% 25.0% 26.9%

24.6% 25.3%

Q112 Q212 Q312 Q412 Q113

Others USO O&M Staff Cost Sales & Mktg

Q1 2013

Cost base driven up by higher handset related expenses

Total cost trend (RM’m)

435 442 447 506 519

403 396 426 400 417

838 838 873 906 936

Q112 Q212 Q312 Q412 Q113

COGS Opex

Q-o-q increase in total cost base attributable to:

— 2.5% q-o-q increase in COGS from higher handset related expenses, cushioned by lower traffic cost from revision of I/C termination rates

— 4.3% q-o-q increase in OPEX from normalised O&M and staff cost (Q412 included refund from overpayment of site rental and reversal of accruals)

Opex to Sales y-o-y trending down as planned aided by good momentum on cost focus initiatives as well as higher revenue base

+3.3%

+11.7%

Opex /revenue %

16

Q1 2013

Sustaining EBITDA-margin at 44%

• EBITDA margin slightly lower at 44% due to:

– increased handset sales

– lower IDD margin from increase in Bangladesh’s regulated terminating rate effective 19 Mar 2013

– partially compensated by underlying opex to revenue improvement

• PAT increased on the back of lower accelerated depreciation (Q113: RM91m ;Q412: RM166m) and lower tax expense (Q113: RM95m; Q412: RM114m)

• Cash-Flow margin improved q-o-q from lower CAPEX

• Capex spend in line with plan, mainly related to network modernisation and deployment of fiber, 3G upgrades and IS/IT-related investment

• New and on-going ISIT projects to modernise existing platforms allows DiGi to significantly reduce its time-to-market in rolling out new products

17

118 177 150 255 191

619 575 565 470 529

8% 11% 9% 16% 12% 39% 36% 36% 29% 32%

-10000%

-5000%

0%

0

200

400

600

800

Q112 Q212 Q312 Q412 Q113

Capex OpsCF

CF margin Capex %

Capex and Op Cash-Flow margins (RM’m)

737 752 715 725 720

321 324 315 246 329

0.0%

20.0%

40.0%

60.0%

-

200

400

600

800

Q112 Q212 Q312 Q412 Q113

EBITDA PAT

47% 48% 45% 45% 44% 20% 21% 20% 15% 20%

EBITDA % PAT %

EBITDA and PAT margins (RM’m)

Q1 2013

Maintain strong shareholder return policy

• EPS rebound to 4.2sen per share, a 34% increase q-o-q from improved PAT

• Declared 1st interim dividend of 3.8sen equivalent to RM295mil translating into 90% payout ratio

• Balance sheet efficiency improving in line with lower equity and cash levels

• Assessment of capital management initiatives to return excess cash to shareholders and increase capital efficiency on-going

Payout Ratio

5.9 5.9

12.0*

2.5 3.8 4.1 4.2 4.1 3.2 4.2

143% 142% 296% 80% 90%

-50000%

-30000%

-10000%

10000%

-

5.0

10.0

15.0

20.0

Q1 Q2 Q3 Q4 Q1

DPS EPS *Incl. special dividend of 8sen

EPS and DPS (sen)

18

Balance sheet (RM’m)

Q112 Q212 Q312 Q412 Q113

Total Assets 5,066 4,929 4,708 4,014 3,809

Total Equity 1,227 1,092 949 261 396

Interest-bearing debts

1,080 1,081 1,083 1,080 928

Cash & cash equivalents

1,518 1,517 1,453 709 579

Key highlights

Operational highlights

Financials updates

Guidance and outlook

Q&A

19

Q1 2013

On-track on guidance for 2013

Our Commitment

• Build stronger Internet For All propositions to capitalise on data growth

– continue to expand data coverage

– significant increase in 3G pop coverage

– LTE launch by end of Q213

• Continuous operational efficiency

• Optimising shareholder returns

• 5% - 7% revenue growth

• sustaining EBITDA & cash-flow margin at 2012 levels

20

Key highlights

Operational highlights

Financials updates

Guidance and outlook

Q&A

21

Disclaimer

This presentation and the following discussion may contain forward looking statements by DiGi.Com Berhad (“DiGi”) related to financial trends for future periods. Some of the statements contained in this presentation or arising from this discussion which are not of historical facts are statements of future expectations with respect to financial conditions, results of operations and businesses, and related plans and objectives. Such forward looking statements are based on DiGi’s current views and assumptions including, but not limited to, prevailing economic and market conditions and currently available information. These statements involve known and unknown risks and uncertainties that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not and, should not be construed, as a representation as to future performance or achievements of DiGi. In particular, such statements should not be regarded as a forecast or projection of future performance of DiGi. It should be noted that the actual performance or achievements of DiGi may vary significantly from such statements.

22

Thank you

See you next quarter!

23

Appendix

24

Q1 2013

Key operating performance KPIs

25

(RM mil) Q113 Q412 Q312 Q212 Q112 Q411 Q311 Q211 Q111 Q-o-Q Y-o-Y

Subscriber base 10,372 10,494 10,304 10,229 9,936 9,920 9,617 9,290 8,843 -1% 4%

Revenue 1,647 1,629 1,583 1,580 1,569 1,545 1,520 1,468 1,431 1% 5%

EBITDA 720 725 715 752 737 728 708 672 657 -1% -2%

EBITDA margins 44% 44% 45% 48% 47% 47% 47% 46% 46% -0.8pp -3.2pp

Depreciation & Amortisation (288) (361) (307) (332) (330) (337) (306) (324) (201) -20% -13%

EBIT 432 364 408 420 407 390 402 348 457 19% 6%

Net finance (costs)/income (8) (4) (2) (1) (1) (1) (4) (23) (10) 82% 663%

Profit Before Tax 424 360 406 419 406 389 399 325 447 18% 4%

Taxation 95 114 91 95 85 5 (106) (89) (116) -17% 12%

Profit After Tax 329 246 315 324 321 394 292 236 331 34% 3%

*EPS (sen) 4.23 3.20 4.10 4.20 4.10 5.10 3.80 3.00 4.30 32% 3%

Prepaid ARPU 40 41 41 41 41 42 43 43 43 -2.4% -2.4%

Postpaid ARPU 82 83 82 85 85 86 86 84 83 -1.2% -3.5%

Blended ARPU 47 47 48 48 49 50 50 50 50 0.0% -4.1%

Q1 2013

Revenue composition

(RM mil) Q113 Q412 Q312 Q212 Q112 Q411 Q311 Q211 Q111 Q-o-Q Y-o-Y

REVENUE 1,647 1,629 1,583 1,580 1,569 1,545 1,520 1,468 1,431 1% 5%

Service Revenue 1,476 1,492 1,470 1,470 1,459 1,468 1,440 1,380 1,331 -1% 1%

Voice revenue 978 1,004 1,010 1,025 1,011 1,022 1,016 996 969 -3% -3%

Data revenue 498 488 460 445 448 445 424 384 362 2% 11%

MI & BB 265 243 210 191 188 181 170 151 131 9% 41%

Messaging 183 193 194 195 200 204 198 191 191 -5% -8%

VAS 50 53 56 59 60 61 56 43 40 -5% -17%

Device and other revenue

171 137 112 110 111 78 80 88 100 25% 55%

Prepaid Revenue 1,051 1,067 1,050 1,034 1,032 1,045 1,029 986 952 -2% 2%

Voice revenue 768 785 793 792 785 797 793 768 746 -2% -2%

Data revenue 283 282 258 242 247 248 236 218 205 0% 15%

Postpaid Revenue 426 425 420 436 427 423 411 395 379 0% 0%

Voice revenue 210 219 218 233 226 226 223 228 223 -4% -7%

Data revenue 216 206 203 203 201 197 189 167 156 5% 7%

26

Q1 2013

Reported COGS and OPEX

(RM mil) Q113 Q412 Q312 Q212 Q112 Q411 Q311 Q211 Q111 Q-o-Q Y-o-Y

COGS 519 506 447 442 435 408 393 386 387 3% 19%

Cost of materials 182 157 106 105 117 83 86 91 96 16% 56%

Traffic charges 337 349 341 337 318 325 307 296 291 -3% 6%

OPEX 417 400 426 396 404 416 423 408 399 4% 3%

Sales & marketing 122 123 134 125 124 134 134 135 128 0% -1%

Staff costs 60 51 61 60 59 68 63 62 64 18% 1%

Operations & maintenance 83 74 82 58 82 78 70 80 63 12% 1%

Other expenses 153 153 150 152 139 137 157 132 144 0% 10%

USP fund and license fees 96 92 93 96 86 79 101 77 85 4% 11%

Credit loss allowances 6 8 10 8 11 16 11 11 7 -24% -42%

Others 50 53 47 48 41 42 44 44 52 -4% 22%

TOTAL 936 906 873 837 838 824 816 795 786 3% 12%

27

Q1 2013

Reported Cash-Flow

(RM mil) Q113 Q412 Q312 Q212 Q112 Q411 Q311 Q211 Q111 Q-o-Q Y-o-Y

Cash at start 709 1,453 1,517 1,518 1,098 987 1,016 1,000 851 -51% -35%

Cash-flow from operations 543 542 477 682 637 532 555 609 594 0% -15%

Changes in working capital (142) (110) 55 (59) 47 164 140 (193) (32) 29% -403%

Cash-flow used in investing activities

(186) (243) (137) (165) (108) (296) (140) (63) (74) -24% 71%

Capex (191) (255) (150) (177) (118) (309) (146) (75) (82) -25% 63%

Cash-flow used in financing activities

(346) (933) (459) (459) (155) (288) (583) (338) (338) -63% 123%

Net change in cash (130) (744) (64) (1) 420 111 (29) 16 150 -82% -131%

Cash at end 579 709 1,453 1,517 1,518 1,098 987 1,016 1,000 -18% -62%

Operational cash-flow (EBITDA – Capex)

529 470 565 575 619 419 563 597 575 13% -15%

Cash-flow margin 32% 29% 36% 36% 39% 27% 37% 41% 40% +3.3pp -7.3pp

28