Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 30 INVESTOR RELATIONS Continued The Company has proposed to adopt a dividend policy of active capital management, and proposes to pay dividends out of cash generated by its operations after setting aside necessary funding for network expansion and improvement and working capital needs. As part of this policy, the Company targets a payout ratio of not less than 75% of its consolidated Profit After Tax under Malaysian GAAP in each calendar year beginning financial year ending 31 December 2010, subject to the confirmation of the Board and to any applicable law, licence and contractual obligations and provided that such distribution would not be detrimental to its cash needs or to any plans approved by its Board. Investors should note that this dividend policy merely describes the Company’s present intention and shall not constitute legally binding statements in respect of the Company’s future dividends which are subject to modification (including reduction or non-declaration thereof) at the Board’s discretion. As the Company is a holding company, its income, and therefore its ability to pay dividends, is dependent upon the dividends and other distributions that it receives from its subsidiaries. The payment of dividends or other distributions by the Company’s subsidiaries will depend upon their operating results, financial condition, capital expenditure plans and other factors that either respective boards of directors deem relevant. Dividends may only be paid out of distributable reserves. In addition, covenants in the loan agreements, if any, for the Company’s subsidiaries may limit their ability to declare or pay cash dividends.” Notwithstanding the above, the payout ratios for 2010, 2011 and 2012 were 131%, 119% and 162% respectively. Investor Engagement Maxis engages proactively and regularly with the investment community to share our strategy and vision and to discuss our operations, business and financial performance, whilst ensuring timely and fair dissemination of information. We value the relationship we have with our investors and communication with them is of primary importance to us. The key spokespersons and representatives for Investor Relations of the Company are the Chief Executive Officer and the Chief Financial Officer (see Board of Directors’ Profiles and Senior Management Profiles for their biographies) who engage with research analysts and institutional investors directly. From time to time, the Joint Chief Operating Officers also participate in these discussions. Such interaction is facilitated by an Investor Relations unit. We maintain an ongoing dialogue with the investment community through a programme of Investor Relations activities. Some of these activities are described below. Announcement of Quarterly Financial Results Every quarter, our financial results are released publicly through announcements to Bursa Malaysia. These announcements contain detailed financial statements, summary of financial and operational indicators and an analysis of performance. Following this release, a conference call for analysts based in Malaysia and abroad will be held and on a semi- annual basis, a media briefing will be carried out to update members of the press and other media, both to provide clarification on questions which they may have. The media briefing is usually led by the Chairman and analyst conference call by the CEO. For both events, the Joint COOs, CFO and other members of senior management are in attendance, reflecting the commitment to providing a high degree of clarity to the public and investment community. The presentation material for the media briefing and analyst call is also made available publicly on the Maxis website. In the presentation material, key financial and operational indicators are depicted primarily in graphical form, with messages in point form, to facilitate ease of understanding and analysis. Meetings, Conferences and Roadshows Maxis continues to attract strong interest from both the local and international investment communities. In order to maintain regular contact and interaction with these parties, we engage in a variety of Investor Relations activities in addition to meetings with investors and analysts at our offices. These activities include participation in major investment conferences. In 2012, Maxis attended the annual Credit Suisse Asian Investment Conference in Hong Kong. We also undertook a non-deal roadshow covering the major financial market centres of Singapore and Hong Kong and held meetings at our office. These events provide an excellent opportunity to maintain regular contact with shareholders, to reach potential investors and to build rapport with international investors. Website Our corporate website has a section on Investor Relations which provides relevant information of interest to investors such as announcements to Bursa Malaysia, financial results, presentation materials and annual reports. In addition, a list of press releases may be found in the adjacent Media Centre section of the website. Feedback and Enquiries As part of our continuing improvement process, we welcome feedback on our Investor Relations initiatives and information provided, in order to further improve our interaction with the investment community. In this respect investors with useful suggestions, requests or clarification required are encouraged to contact us at ir@maxis.com.my . We look forward to the continued engagement.