Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 15 The last two years have seen intensifying price competition and the emergence of over-the-top (“OTT”) players who are providing alternative communication access. At the same time, the roll-out of advanced data networks and bandwidth efficient technologies, widespread broadband availability and the proliferation of smart devices promise exciting new growth opportunities of which we are ready to benefit from. 2012 was a year of consolidation to stay competitive in the market and relevant to our customers, and of commitment to providing the best value and experience as we build the foundation for the next generation of integrated communications services. We maintained our strategic focus to lead in the data space while protecting our core revenues, especially voice. We also continued to pursue opportunities in under-represented market segments and improve customer experience through providing peace of mind for international roaming customers, convenience and best-in-class service. We are delighted to have been awarded the 2600 MHz spectrum by the Malaysian Communications and Multimedia Commission (“SKMM”) in December for the purpose of rolling out a 4G LTE network. This is a quantum leap for telecommunications in Malaysia and a crucial milestone in our integrated journey. We are grateful to the Government for providing an enabling environment that promotes investment in the latest technology for the benefit of all Malaysians. In the last two years of trialling 4G LTE technology in a live network environment, we acquired invaluable insight and learning in the design, planning and optimisation needed for such a network. We are proud of our team and our partners who were critical in building this capability that will bring even faster wireless connectivity across the nation. In addition to giving our home and business customers superfast and richer Internet access, with 4G LTE, we will be bringing in the latest and most innovative services to improve and enrich their lives. We also see this as an opportunity to improve revenue growth and create substantial value for our shareholders. Sabah and Sarawak represent long-term opportunities for our business and we continued to expand our presence in this region during the year, adding new 2G and 3G sites and improving network speeds for faster broadband and mobile Internet access. We also invested significantly in 4G LTE and in cutting- edge technologies such as NanoBTS and Femtocell to connect rural communities. FINANCIAL REVIEW AND DIVIDENDS Group revenue for the year registered a steady 1.9% year-on-year growth to reach RM9.0 billion. Maxis delivered an EBITDA of RM4.4 billion with corresponding EBITDA margin of 48.6%. Profit for the year was RM1.9 billion after taking into account RM162 million of accelerated depreciation as we fast forward investments in our network and RM133 million in asset write-off. The Board of Directors is pleased to recommend for shareholders’ approval at the forthcoming Annual General Meeting a final single-tier tax-exempt dividend of 8.0 sen per share in respect of the financial year ended 31 December 2012. The four interim dividends paid and the recommended final dividend will bring the total dividend for 2012 to 40.0 sen per share. If approved the Company would have declared and delivered a total of 135.0 sen per share in cumulative dividends since the IPO, amounting to a total payout of RM10.1 billion to shareholders. The Company has proposed to adopt a dividend policy that seeks to pay out not less than 75% of the consolidated net profit for each financial year provided such distribution would not be detrimental to its cash needs. Notwithstanding this, the payout ratios for 2011 and 2012 were 119% and 162% respectively. The Company will continue to adopt a progressive dividend policy through active capital management. I AM PLEASED TO REPORT THAT MAXIS DELIVERED ANOTHER YEAR OF PROFITABLE GROWTH AND MAINTAINED MARKET LEADERSHIP IN 2012 AS CONSUMERS RESPONDED POSITIVELY TO OUR NEW MARKET INITIATIVES, INNOVATIVE PLANS AND SMART PHONE OFFERINGS. THIS ACHIEVEMENT IS COMMENDABLE GIVEN THAT WE ARE OPERATING IN A HIGHLY CHALLENGING ENVIRONMENT. WHAT’S INSIDE HIGHLIGHTS OUR STRENGTH LEADERSHIP OUR BUSINESS IN ACTION CORPORATE RESPONSIBILITY