CELCOM DELIVERS SOLID 9% REVENUE AND 14% PATAMI GROWTH IN 1H 2012 PERFORMANCE

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1 NEWS RELEASE FOR IMMEDIATE RELEASE CELCOM DELIVERS SOLID 9% REVENUE AND 14% PATAMI GROWTH IN 1H 2012 PERFORMANCE 25 consecutive quarters of revenue growth Quarterly revenue at RM1.92 billion mark, up 9.2% YoY PATAMI grew by 14% YoY, representing RM1.1 billion EBITDA outpaces revenue, up 6% YoY with a margin improvement of 45.2% Continued leadership in mobile broadband with 994,000 subscribers, a growth of 10% YoY Network modernisation, IT and support services investments, smart spend measures and innovative product bundling add to strong growth outlook KUALA LUMPUR, 3 September 2012 Celcom Axiata Berhad, the first and foremost mobile telecommunications provider in the country, has delivered solid 9% revenue growth performance underscoring the efficacy of its well-balanced sales, marketing, operational and financial executions in Q The company s achievement of its 25 th quarter of consecutive revenue growth a strong performance milestone was buoyed by an increase in revenue to the RM1.92 billion mark, up 9.2% year-to-date (YTD) compared to last year, putting this year s total revenue at RM3.8 billion. Celcom s year-on-year (Y-o-Y) growth is the highest within Malaysia s key mobile telecommunications players. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) outpaced revenue with an increase of 3% quarter-on-quarter (Q-o-Q) with an improved quarterly margin to 45.2% despite aggressive investments for data. This was made possible through implementation of smart-spend measures and well-managed sales and marketing expenditure. PATAMI (Profit after Tax and Minority Interests) displayed a commendable double-digit growth at 14% Y-o-Y, putting the total at RM1.1 billion.

2 Advanced data was one of the key revenue drivers, contributing RM447 million compared to RM423 million quarter-on-quarter (Q-o-Q), which also represents a contribution of 23.3% of total revenue. This contribution was driven by innovative data bundling offerings and campaigns including I Love Performance: 2012 vs (RM mil) 2012 (RM mil) YTD-o-YTD Revenue 3,504 3,827 (+9%) EBITDA 1,617 1,707 (+6%) PATAMI 971 1,109 (14%) Q-o-Q Revenue 1,908 1,919 (+0.6%) EBITDA (+3%) PATAMI (+6%) Tablet Fair 2012 and Whatchuwant, and is the highest quarter net increase since Q representing a growth 15.3% Y-o-Y. Our focus on the Enterprise segment is also gaining traction with double-digit growth Y-o-Y. Celcom s subscriber base surpassed the 12 million mark with bullish momentum from growth in the prepaid segment, further evidenced by an increase of smart phone presence on Celcom s network at 20.3% from 16% a year ago, while tablets on the network hit the 141,000 mark. The company s leadership in the mobile broadband segment was maintained with the achievement of 994,000 subscribers, marking 10% more users from a year ago and representing a 18% growth in YTD revenue in that segment. Celcom s creative voice resuscitation programmes including Whatchuwant and Celcom First contributed to the continued growth of voice revenue of 6.2% Y-o-Y. Despite substantial pressures from Over the Top (OTT) players, SMS revenue also grew year-on-year. Commenting on Celcom s Q results, Dato Sri Shazalli Ramly, Chief Executive Officer of Celcom Axiata Berhad said, Twenty-five consecutive quarters of growth is a significant milestone for Celcom as it affirms the progress of our current and past marketing, operational and financial initiatives which were well planned and executed. We have identified key areas which are pivotal to our continued growth and are pleased to see that our performance has justified our focused efforts in those segments. However, this is merely the beginning of a revamped future roadmap where we will be leveraging on enhanced but focused market

3 coverage, all with continuous focus on smarter cost management, innovative product bundles, smarter pricing and network modernisation and collaboration initiatives. Various programmes that were launched or initiated in Q have set the foundation for Celcom s sustained growth: Celcom First, a comprehensive brand umbrella of services encompassing voice, data, home, WiFi and enterprise solutions. The first product to be launched in under the revamped branding was Celcom First Voice, a range of superior voice plans that let customers step up to bold, more innovative and advantageous services. It is also the first hybrid voice plan that allows customers to choose either postpaid or prepaid payment. Educube, Celcom s first one-stop, 3-in-1 online education service incorporating school, tuition and exams. The service offers over 70,000 questions over six key modules via students PCs, laptop or tablets, and was developed in support of the government s initiative to increase ICT usage in schools through creative learning. A collaboration that will provide Transnasional Express, a member of Konsortium Transnasional Berhad (KTB) the largest and leading express bus services in the country with WiFi service across its entire fleet of express buses throughout Semenanjung Malaysia. Moving Forward Celcom will continue to drive smarter spending and cost management programs to improve its EBITDA margin and continue its investment for future growth through network modernisation rollouts, information technology (IT) transformation and internal process enhancement. A transformation programme for Celcom s Business Support Services (BSS) has commenced with global consultants Accenture and Oracle, promising improved Customer Relationship Management (CRM) systems for marketing and operational deployment. Celcom will also continue its collaboration with DiGi Telecommunications Sdn Bhd for improved network capability. Apart from these, the focus for the second half will be centred on winning key districts using focused go-to-market (GTM) strategies. Advanced data will continue to receive attention with the introduction and enhancement of innovative and attractive data services and applications, in order to achieve a higher

4 penetration of smartphone users whilst ensuring revenue share growth and ARPU (average revenue per user) stability. This will be supported by Celcom s Data Ubiquity campaign that will see a movement towards seamless data connectivity across Celcom s mobile data, WiFi, and integrated high-speed broadband (HSBB) networks under the Celcom First brand umbrella. Celcom s completion of nationwide network upgrades to Single RAN technology underlines the company s readiness to deploy Long Term Evolution (LTE) telecommunication standards, promising faster network data speeds and an enhanced user experience in the near future. Celcom s capital management initiatives have recently delivered a successful Sukuk Murabahah issuance of RM5 billion in nominal value the largest rated Sukuk Murabahah issuance based on a tawarruq arrangement in the Malaysian debt capital market to date. It was given the highest rating of AAAIS by Malaysian Rating Corporation Berhad (MARC), reflecting Celcom Transmission (M) Sdn Bhd (CTX) and Celcom s robust credit. Awards and Achievements in 2012 For Q2, Celcom continued to receive industry recognition in the form of the coveted Mobile Service Provider of the Year award at the prestigious 2012 Frost & Sullivan Malaysia Excellence Awards in April, further clinching The Best Postpaid Service Award at the GoMobile Awards Night These achievements echo Celcom s Q1 accolades which included the much coveted Special Organisation Achievement Award & Malaysian Achievement Hall Of Fame Organisation Achievement of the Year Award by Malaysian Achievement Awards 2012, as well as three awards from PC.com Readers Choice Awards Night The Best Telco of the Year, CEO of the Year and Best Wireless Internet. - End - About Celcom Celcom is the country s first and foremost mobile telecommunications provider with over 12 million customers. Established in 1988, it boasts the widest national 2G and 3G networks, covering over 98% of the population. Currently the largest mobile broadband and corporate services provider, Celcom is now moving towards integrated multi-access and multimedia services, in line with evolving technologies and consumer behaviour in Malaysia. A culture that places the customer first is reflected in our awardwinning customer service, products, and other corporate accolades at a regional level. Celcom is part of the Axiata Group of Companies, one of the world s largest telecommunications companies, with

5 more than 180 million customers across 10 Asian markets. For more information on Celcom, log on to Media Release Issued by Corporate Communications Department of Celcom Axiata Berhad. For further enquiries, please contact Rohizan and Ezra