DIGI.COM ANALYST DAY - COFFEE CHAT

7 Sept 2015

OPEN

IR/ANALYST DAY SEP15

WELCOME TO DIGI

AGENDA

3:30pm: Opening Karl Erik

CEO’s reflection Albern

Market and brand updates Christian

Building the best LTE network Kesavan

Nurturing the best talents Haroon

2015 guidance

4:45pm: Management panel discussion DMT

5:30pm: End

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3.00 3.12 3.18

0.30

0.34 0.34 3.30

3.46 3.51

1H13 1H14 1H15

1H15 Checkpoint: Healthy service revenue

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• 1.8% service revenue growth ― 2.6% postpaid growth ― 1.5% prepaid growth

• Steady increase of smartphone users

to 57% of the subscriber base

• Stronger subscriber base with 394K net adds in 1H15

• Solid progress on 4G-LTE expansion with extensive coverage available in key markets

• Steady EBITDA margin at 45%

• Healthy YTD dividend of 12.0 sen per share or RM933 million

45% 45% 45% EBITDA margin

Service revenue (RM bn)

Revenue (RM bn)

CEO’S REFLECTION

Source: Company and Bloomberg as at 27 Apr 2015

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A solid business unit within Telenor Group

‘Internet For All’ market in Malaysia • Population of 30.6 million, growing by around 0.5 million per year • 3rd largest mobile operator with 11.8 million subscribers • 6.8 million active internet users and more to come with the proliferation of affordable

smartphones

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INTERNET FOR ALL • Best for internet • Enabling digital lifestyle for

Malaysians

LOVED BY CUSTOMERS • Source of inspiration for our

customers through excellent customer experience

EFFICIENT OPERATIONS • Most efficient network and

most innovative service provider in Malaysia

Creating value through excellent execution of strategy

Exciting mobile internet opportunities ahead

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Growing mobile internet demand

and usage

Increasing smartphone penetration

Rapid expansion of 4G-LTE and strengthen 3G

Evolution of digital services

However, challenging near-term revenue growth in a volatile market

Elevated competition intensity

Changing business landscape

Rich possibilities with innovative digital services

• Softer consumer sentiment

• GST impact on consumer wallet

• Weakening MYR currency

• Aggressive internet pricing and free internet access

• IDD price war

• Rich freebies on reload

• Social media

• Entertainment

• Storage

• Payment

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Relentless drive for resilience and growth amid tough environment

• Focus on driving stronger usage and growth o Consistent drive to win and retain customers o Be the preferred mobile operator with #1 NPS o Competitive value propositions to increase internet

adoption and upselling opportunities

• Deliver on our customer promise o Rapid expansion of 4G-LTE and strengthen 3G

o > 65% 4G-LTE coverage in 5 key markets in 1H15 o Continue to invest and strengthen high-speed data

network for Best For Internet experience

• Leverage on solid fundamentals and stronger network and IT capabilities o Continue excellent on-ground execution o Strengthen position to capitalise on the strong demand

and obsession for mobile internet connectivity and speed

• Build and nurture the best talents

• Empower societies and corporate responsibilities program

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MARKET AND BRAND UPDATES

Source: Company and Bloomberg as at 27 Apr 2015

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Industry mobile service revenue growth potential being challenged

(103) (346)

102

(2)

(101)

(235)

241 201 55

2013 2014 1H15

Peer 1 Peer 2 Digi

Mobile service revenue y-y movement (RM mn) • Industry mobile service revenue suffered sharp decline in 2014 o Weak data monetisation o Aggressive IDD pricing to target

subscriber market share

• ARPU pressure imminent

• Competition intensity remained elevated in 2H15 on the back of weak consumer sentiment

• Current price levels not sustainable o Need stronger data

monetisation discipline to drive revenue

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58 55

52

47 46 46

48 47 46

2013 2014 1H15

Peer 1 Peer 2 Digi

ARPU (RM mn)

Resilient performance backed by higher internet growth and usage

Overall brand preference

• Healthy service revenue in 1H15 o +2.6% postpaid revenue growth o +1.5% prepaid revenue growth

• Stronger subscriber base with +344K net adds for prepaid and +50K net adds for postpaid

• Solid growth on internet revenue in 1H15 on the back of increasing internet and smartphone users o +13.8% postpaid internet revenue o +40.2% prepaid internet revenue

• Brand preference trending up among MI users and Digi perceived as an ‘entertaining’ and ‘creative’ brand among Youth

36%

34% 35% 34%

38% 36%

26% 22% 20%

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

Source: 2Q15 Brand tracker report

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2.14 2.26 2.30

0.86 0.86 0.88

1H13 1H14 1H15

Prepaid Postpaid

Service revenue (RM bn)

30.4% 41.9%

57.1% 41.2%

49.4% 57.9%

1H13 1H14 1H15

Smartphone Internet

Internet and Smartphone %

Revitalised IU offerings (worry free hi-speed internet with daily max cap)

Continue to grow postpaid and strengthen prepaid value proposition to drive usage and growth

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Innovative digital services

Digi Smart Prepaid Digi Best Prepaid

Digi Postpaid Smartplan

Daily RM1 + unlimited FB + 300MB Youtube

Clear game plan to WIN

•Strengthen prepaid usage

•Grow mobile internet adoption and usage

•Drive internet to all subscribers

•Monetise and

maximise 4G-LTE position

•Win entry level postpaid customers

•Acquire mid-to-high ARPU postpaid

•Grow SME and

SOHO segments

•Be the best service provider for IOT

•Solutions driven portfolio and sales

#1 in Prepaid

Strengthen Postpaid

Re-define Enterprise Business

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Drive excellent on-ground execution at the respective regions

• Strengthen distribution and channels to meet and serve different customer segments

• Laser sharp execution on the ground, with a strong focus on fundamentals to win everyday

• Continue to drive new growth areas

• Defend stronghold

• Fuel internet adoption

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Our customers are at the heart of our organisation

Active Engagement

CFL

On-ground engagement with

dealers & customers

Customer call backs

Social Media

postings

NPS (key company-wide ambition & KPI)

Voice of Customer

Market Visits

• Leverage on Voice of Customer o Foundation to identify

specific initiatives towards issue resolution

• Resolve customer issues via

structured decision-making platforms

• Drive positive Net Promoter Score (NPS)

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Continuous improvement to deliver the best for our customers

• Regular assessment of customer experience and network quality o Net Promoter Score (NPS) o Network Drive Tests

• Innovating customer experience o Self service application and online

customer service

• Regular assessment of dealers’ product knowledge and way of handling of customer queries, as well as scrutinize the promotional displays o Mystery shopping and market visits

• Creating informed Digi Ambassadors o Day @ Contact Centre o Digi Customer Champions o Customer First Day

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BUILDING THE BEST LTE NETWORK

Source: Company and Bloomberg as at 27 Apr 2015

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LET’S INSPIRE

Strong foundation for data growth opportunity • Modernised network and IT infrastructure with unique synergy and

innovation potential

741

904 900

2013 2014 2015e

Capex (RM mn)

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• 4G launched in 2013

• One third of sites with 4G-LTE

• Target to accelerate 4G-LTE network expansion and be the best LTE network

• Fast adoption of mobile data traffic on 4G-LTE

• Steady data traffic growth q-q and y-y

• Preparing for VoLTE, VoWiFi and LTE-A

• Continuous investment in network

Superior mobile network position

Fastest growing 4G-LTE network with most consistent internet experience

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91% 91% 89%

9% 8% 5%

- 1%

7%

2Q13 2Q14 2Q15

3G 2G 4G

Data traffic %

6,000 6,400 6,900

2Q13 2Q14 2Q15

2G/3G 4G

Physical sites

Extensive fiber network to support growing data demands

Details 2015 2016 2017

Fiber network KM 6,000 9,000 10,000

Legend

Planned fiber build

Completed fiber build

Planned lease line

Completed lease line

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• Leverage on modernised equipment to deliver fastest growing 4G-LTE network

• 4G-LTE in all key market centers and aim to deliver the best 4G-LTE network position

• Rolling fiber closer to customer

• Preparing 4G+ by deploying LTE-A

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Efficient deployment of 4G-LTE technology for best internet experience

2015 4G-LTE

2017 4G-LTE

Clear strategy to drive a holistic approach on 4G-LTE

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Affordable LTE device bundle

Lenovo A6000 for postpaid and Alcatel Pixi 3 for prepaid

Free LTE uSim upgrade & 1GB

quota Existing or New customer

that upgrades to an LTE line will get additional 1GB quota

Innovative digital services

NURTURING BEST TALENTS IN MALAYSIA

Source: Company and Bloomberg as at 27 Apr 2015

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Malaysia’s talent landscape

We believe that having sufficient and the right talent is critical to the future of a business and a country. As a business leader in Malaysia, Digi is cognizant of the talent issues the country and industry are facing and are actively participating in constructive dialogues and actions to address them.

Tertiary Educated Labour Force Women Labour Participation Rate

Source: TalentCorp Malaysia 24

Digi, a growth company driven by passionate employees

Our People and Talent strategy is aimed at developing the best talents into passionate employees

Passionate Employees Most engaged and inspired employees

Best talent in the industry that are equipped and inspired to win everyday

OBJECTIVE

TALENT PILLARS

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INSPIRE THE

NEXT

FREEDOM TO

Challenge the norm

Express myself

Connect with others

Achieve my potential

….AND MANY

MORE!

Product or Service

Customer

Digizen

Malaysian

ENDLESS POSSIBILITIES! 26

Digital HR - a step to “internet company” culture

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LET’S INSPIRE

Refreshed Onboarding Journey

1 DAY

• D’cuppa

• Welcome to Digi

• Ask a Digizen

• Office Tour

• D’Lunch

• Get Started

My Rewards

HSSE

Security

My Laptop

My Transactions

• It’s a Wrap!

1/2 DAY

• D’cuppa

• Telenor Way

• Customer Centricity

• Retail Work@ Prep

• Manager’s Onboarding

1 DAY

• Retail Work @ stores

1 HOUR

• Reflections

Pre- boarding

Port In Day 1

Get Activated Day 15

Get Digified Day 30

Let’s Inspire

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LET’S INSPIRE

D’House Renovation: upgrading the hardware after 9 years to complement our evolved software (Culture & Telenor / Digi way)

Key effects to be realized: • Telenor Workplace Model – 2nd

Gen • Sustainability & energy

efficiency • Enhanced security solutions 29

Committed to deliver internet for all communities to inspire a better Malaysia

Schoolchildren | Teachers and Educators |

Parents and communities

(Youth Social Entrepreneurs)

Global platform to connect and share digital

communication innovations

(Rural Communities)

Enabling connectivity and easy ownership of smart devices

Partnering social change makers to enable innovative

internet solutions

(Social Purpose Groups)

(Technopreneurs)

Global platform to share insights on innovation and

digital business opportunities

(Online Communities)

Recognising Malaysians that increase online creativity and

entrepreneurism

Greater usage of the internet to inspire and empower the lives of women in Malaysia

(Women/Girls)

(in partnership with CyberSecurity Malaysia)

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2015 GUIDANCE

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2015 – a new challenge for the industry

• Competition intensity remained elevated on the back of weak consumer sentiment

• Industry service revenue and earnings growth challenged by aggressive pricing, weak data monetisation and changing business landscape although mobile internet demand continued to grow steadily

• Strong mobile internet growth opportunity with increasing smartphone adoption and internet usage

• Resilient drive for sustainable service revenue

• Steadily strengthen infrastructure and distribution capability to drive best internet experience for customers

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2015 Guidance

1H15

Service revenue growth

Low to mid single digit

1.8%

EBITDA margin

Sustain at 2014 level

45%

Capex Sustain at 2014 level

RM393 million

MANAGEMENT PANEL DISCUSSION

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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.

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LET’S INSPIRE

Investor_Relations@digi.com.my

www.digi.com.my

Thank you!

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