Integrated Annual Report 2021

Con-neCting you to what matters most

ConneCting you to what matters most

2021 continued to be an extraordinary year as society stayed vigilant and resilient a year after the Covid-19 pandemic emerged.

To learn more about our Integrated Annual Report 2021, visitwww.digi.com.my/ annualreport/index.html

Malaysians persevered as we adapted to changing situations brought on by various safety restrictions imposed by the authorities to curb the spread of the virus. Digital connectivity became even more crucial as lives and livelihoods shifted online and people continued to be physically apart.

The cover highlights how digital connectivity has supported the communication needs of every segment of the society, bringing people closer together amidst the pandemic. We continue to be inspired by the people we serve, and remain steadfast in our responsibility and purpose to connect people to what matters most.

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inside this report

  • 1 at a glance

    2 About This Report

    4 About Digi

  • 2 message to shareholders

    • 6 Chair of the Board's Statement

    • 10 Chief Executive Officer's Statement

    • 14 Chief Financial Officer's Statement

    • 21 Quarterly Financial Performance

    • 21 5-Year Financial Summary

  • 3 strategies to Create Value

    24 Our Business Model

    26 Our Operating

Landscape

30 Our Key Relationships

33 Our Key Risks

38 Our Material Matters

41 Our Emerging

Opportunities

44

Our Strategy

  • 4 how we Create Value

    50 Financial Capital

    54 Manufactured Capital

    57 Intellectual Capital

    62 Human Capital

    67 Natural Capital

    73 Social and Relationship

    Capital

  • 5 governance

    84 Board of Directors' Profiles

    90 Management Profiles

    94 Corporate Governance

    Overview Statement

    119 Statement on Risk

    Management and

    Internal Control

    126 Additional Compliance

    Information

    128 Statement of Responsibility

    by Directors

  • 6 audited Financial statements

    • 130 Directors' Report

    • 135 Statement by Directors

    • 135 Statutory Declaration

    • 136 Independent Auditors' Report

  • 140 Statements of Comprehensive Income

  • 141 Statements of Financial Position

  • 143 Statements of Changes in Equity

  • 144 Statements of Cash Flows

  • 147 Notes to the Financial Statements

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other information

218 Independent Assurance Report

221 Corporate Information

222 Corporate Directory

223 List of Properties

225 Disclosure of Recurrent Related Party Transactions

226 Share Price Development

227 Statistics on Shareholdings

228 Statement of Directors and CEO's Shareholdings

229 List of Thirty (30) Largest Shareholders

231 Notice of Annual General Meeting

  • • Form of Proxy

Digi.Com Berhad

At A Glance

Message To Shareholders

Strategies To Create Value

How We Create Value

about this report

This is Digi.Com Berhad's 3rd Integrated Annual Report (IAR) 2021, prepared in accordance with the principles prescribed by the International Integrated Reporting Council (IIRC). Our IAR aims to provide a balanced and accurate reflection of our strategy, performance, risks and emerging opportunities, as well as prospects of the company.The intent of the report is primarily to address value-creation considerations of long-term investors and provide appropriate

information to all our key stakeholders.

about this report

scope and reporting boundaries

As previously announced in June 2021,Axiata Group Berhad,Telenor Asia Pte Ltd and Digi.Com Berhad (Digi) have successfully concluded the due-diligence exercise and signed the Transaction Agreements for the proposed merger of

Celcom Axiata Berhad (Celcom) and Digi.

However, the report is published on a business-as-usual basis with its reporting scope remains largely the same as last year's report, covering the activities of our wholly owned subsidiary, Digi Telecommunications Sdn. Bhd., which is the core of our business operations.The reporting period comprises our financial and non-financial performance from 1 January 2021 to 31 December 2021, unless stated otherwise.

Governance

Audited Financial StatementsOther Information

assurance

Our audited annual financial statements are disclosed in Section 6. We have also engaged an external auditor to provide a limited assurance for selected non-financial indicators.The independent assurance report can be found on pages 218 to 220 of this report.

Forward-looking statements

This report may contain forward-looking statements with respect to Digi's future performance and prospects, alongside the ongoing proposed merger of Digi and Celcom which will be subject to regulatory approvals, other customary terms and conditions and approvals of all non-interest shareholders.

integrated approach and materiality

We aim to preserve, create and deliver sustainable value for all our stakeholders through our six capitals. Our unique processes are key inputs and we produce value-adding outputs by using an integrated approach. In addition, we have fully embedded integrated thinking in our sustainability management to fully reflect material environmental, social, and governance (ESG) considerations into our short-to-long term business model and strategies.

Our material matters are continuously monitored as they have the potential to substantially affect - both positively and negatively - our ability to create and preserve value. Subsequently, the materiality assessment processes and disclosures are aligned to the Materiality principles of International Framework and Bursa Malaysia Securities Berhad's (Bursa Malaysia) Listing Requirements.

approval by the board

The Board of Directors of Digi is responsible for ensuring the integrity of Digi's IAR 2021 and give full attention to the management's evaluation and effectiveness of disclosure controls and procedures. Such controls will ensure high reliability of financial reporting for external purposes in accordance with the Main Market Listing Requirements of Bursa Malaysia.The report was approved by the Board on 11 March 2022.

reporting suites

We are committed to report openly and honestly to our broad range of stakeholders. To view the full suite, visit our website atwww.digi.com.my/annualreport/index.html

iar

About This Report

integrated annual report (iar) 2021

Our primary report to shareholders, which details the company's developments, financial performance for the year and future orientation to form our holistic value creation story.

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sustainability performance and gri Content index Our Sustainability performance website provides a detailed account of the company's sustainability performances, available online viahttps://www.digi. com.my/sustainability/reporting.html

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Corporate governance report 2021

Our Corporate Governance report details out Digi's corporate governance practices.

reporting Framework & principles

IIRC's Integrated Reporting Framework

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Companies Act 2016

Main Market Listing Requirements of Bursa Malaysia

Bursa Sustainability Reporting Guidelines & Toolkits

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our Capitals

Financial Capital

Manufactured Capital

Intellectual Capital

Human Capital

Natural Capital

Social and Relationship

Capital

Malaysian Code on Corporate Governance

Malaysian Financial Reporting Standards (MFRS)

International Financial Reporting Standards (IFRS)

Global Reporting Initiative (GRI) Standards (Core)

ISAE 3000 (Revised)

- Limited Assurance Engagement

our strategic pillars

Growth

Modernisation

Responsible Business

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Disclaimer

Digi.com Bhd published this content on 06 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 April 2022 09:04:06 UTC.