Axiata Group Berhad (AXIATA) Analyst & Investor Day 2025 summary

Strategic priorities and transformation

• Focused on five value creation vectors: synergies in associates, structural transformation in Indonesia (including XL-Smartfren merger targeting 27% market share and $300–$400 million in synergies), resilience in frontier markets, value creation in infrastructure (Link Net, EDOTCO), and digital business growth (ADA, Boost, ADL).

• Emphasis on operational excellence through capital allocation, balance sheet management, empowered boards at OpCos, and market repair and consolidation in key markets.

• Portfolio optimization includes value illumination and monetization of digital and infrastructure assets to reduce debt and fund new growth.

• HoldCo role redefined to focus on joint-control entities, capital allocation, and shareholder protection as the number of subsidiaries decreases.

• Sustainability framework deepened, targeting net-zero by 2050 and aiming to impact 23 million lives by 2025.

Financial performance and capital management

• Net debt/EBITDA reduced to 2.59x by Q3 2024, with total debt down by RM3.2B since 2022 and HoldCo debt reduced to RM8.4B.

• HoldCo cost reduced by 15–20% p.a. through headcount reduction and digitalization, with a further 2% reduction planned.

• Capital productivity improved, measured as CapEx/EBITDA, with OpCos showing better performance than prior years.

• Liability management included repurchasing $272 million of bonds at a discount, saving on interest costs.

• Dividend per share maintained at MYR 0.10 for 2025, with a progressive increase expected as HoldCo debt decreases.

Business unit highlights and operational excellence

• ADA achieved $210 million revenue, $18 million EBITDA, and $550 million valuation, expanding into US and MENA markets.

• Boost Bank surpassed MYR 700 million in deposits within six months, focusing on consumer and micro-SME lending, aiming for unicorn status and profitability by 2026.

• Link Net transformed into a wholesale FiberCo, with 4 million home passes deployed and 3 million more committed, positioning XL as Indonesia’s No. 2 ISP.

• EDOTCO reached 56,000 towers, 13% CAGR, and is shifting focus to Southeast Asia, with all NTCs PAT positive except the Philippines.

• CelcomDigi integration 75% complete, delivering MYR 800 million OpEx and MYR 1.2 billion CapEx savings, maintaining 20 million subscribers and significant improvements in network, IT, and retail productivity.