INITIATIVES DELIVERING SOLID GROW, MAXIS LEADS the MARKET with 4.% QUARTER-ON-QUARTER REVENUE GROW IN 4Q 0; FULL YEAR REVENUE OF RM8,967 MILLION

2/26/2013

INITIATIVES DELIVERING SOLID GROWTH, MAXIS LEADS THE MARKET WITH 4.1% QUARTER-ON-QUARTER REVENUE GROWTH IN 4Q 2012; FULL YEAR REVENUE OF RM8,967 MILLION

Retaining an industry-leading EBITDA margin of 48.6% despite strong competition and aggressive market initiatives

Market leadership with 14.1 million subscriptions

Non-voice revenue continued to grow, contributing 45.6% to total mobile revenue

Strong dividend pay-out of 40 sen per share amounting to RM3 billion for the full year

MEDIA RELEASE

For immediate release

Kuala Lumpur, 26 February 2013

Maxis Berhad (Maxis), Malaysias leading integrated communications service provider saw its aggressive market moves delivering solid results.

Maxis recorded a revenue of RM8,967 million for the financial year ended 31 December 2012, a 1.9% growth from RM8,800 million in 2011 on the back of higher revenue from all business segments. The Company maintained an industry-leading EBITDA margin at 48.6%, despite strong competition and aggressive market initiatives. Subscription base crossed 14.1 million subscribers with growth in postpaid over the last two quarters and prepaid over the last three quarters.

In 4Q 2012, Maxis led the market with 4.1% quarter-on-quarter revenue growth with nonvoice revenue growing 5.1% and contributing 46.2% to total mobile revenue.

In line with the overall strategy of investing for the future, including network modernization, Maxis incurred RM803 million capex in 2012 and launched 4G LTE on 1 January 2013. The investment has resulted in acceleration of depreciation of network equipment amounting to RM125 million. This, together with other one-off asset write-off of RM133 million, impacted Profit After Tax (PAT), ending 2012 at RM1,860 million, which excluding these one-off items, results with a normalized PAT of RM2,049 million. In addition, last years PAT also benefitted from a cumulative one-off last mile broadband tax incentive of RM352 million.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was stable at RM4,359 million from a year ago.

Chief Executive Officer Sandip Das said, 2012 was a year of executing a balanced strategy to optimise core business while investing for the digital future. We initiated aggressive market moves including competitive tariff adjustments, value for money offers, exclusive loyalty initiatives, and introduction of new segmented offers. In addition, we made significant inroads towards our mission of becoming the leading integrated communications service provider in the country. These market moves were well received by our customers, achieved significant traction and brought in positive results more visibly in the later part of the year. While the market remains extremely competitive, it was pleasing to see the results of the efforts put in by the Maxis team to retain overall leadership in subscriber and revenue terms.

While we continued to be the leader in providing the fastest and widest 3G network in the country, it has always been our endeavour to provide our customers with services that are globally contemporary. The launch of the first 4G LTE service in Malaysia on 1 January 2013 bears testimony to this. Throughout the year, we also introduced numerous innovative services including Loker (personal cloud storage), eBook, my Healthy Heart, and cloud computing for enterprise customers.

With our partnership with TM and our own network build, Maxis has the largest broadband access footprint in the country. During the year, we made high speed broadband more affordable with both our fibre and wireless based offerings. Furthermore, with our strategic partnership with Astro, our customers can soon enjoy the rich content offerings anytime, anywhere and across any terminal device in a whole new way.

The strong eco-system of partnerships we have built provides a strong platform to offer future innovative services for our customers. In addition, we continued to seed the market with smart devices, building a solid base to drive future data services. Already, non-voice contributes 45.6% of our total mobile revenues, of which 64% comes from internet and data services.

During 4Q 2012, we declared a fourth interim dividend of 8 sen per share amounting to RM600 million to our shareholders, successfully maintaining our track record of consistent dividend pay-out. We are also recommending for shareholders approval at the forthcoming Annual General Meeting a final single-tier tax-exempt dividend of 8 sen per ordinary share in respect of the financial year ended 31 December 2012, bringing the total dividend pay-out to 40 sen per share amounting to RM3 billion for 2012.

As a whole, we had a solid year, reflecting our ability as a company to optimise our financial performance in a maturing voice business and staying ahead of the curve by continuing to invest in future digital services to enrich customers lives and businesses. We continued to improve customer experience across all touch points to deliver an enchanting brand of service experience true to our vision.

Other highlights for 2012 included the following:

Delighting Customers - Postpaid propositions were reinforced with the introduction of Peace of Mind roaming plans, attractive smart phone offers and upgrades, as well as strengthening of the Maxis One Club loyalty benefits.

On the prepaid front, Maxis stayed true to its integrated proposition by offering customers an all-in-one, simple solution for all forms of mobile communication needs that gives customers access to the lowest rates in all five categories - Voice Calls, SMS, Surfing, IDD (International Direct Dialling) and Roaming. Other initiatives included focused marketing efforts in customising plans for East Coast, Sabah, Sarawak, targeted promotional activity, expansion of distribution into the interiors to ma

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