Digi Integrated Annual Report 2021 - Part 1

Integrated Annual Report 2021
Con-
necting Connecting
you
you to what
matters most
to what
matters
2021 continued to be an extraordinary year as
society stayed vigilant and resilient a year after
To learn more about our
Integrated Annual Report
2021, visit www.digi.com.my/
most
annualreport/index.html
the Covid-19 pandemic emerged.
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.
Scan this QR Code

for Integrated Annual
Report 2021 online
Integrated Annual Report 2021 1
Inside This Report
1 At A Glance 4 How We Create Value 140 Statements of

2 About This Report 50 Financial Capital Comprehensive Income
4 About Digi 54 Manufactured Capital 141 Statements of Financial
57 Intellectual Capital Position
2 Message To Shareholders 62 Human Capital 143 Statements of Changes in
6 Chair of the Board’s 67 Natural Capital Equity
Statement 73 Social and Relationship 144 Statements of Cash Flows
10 Chief Executive Officer’s Capital 147 Notes to the Financial
Statement Statements
14 Chief Financial Officer’s 5 Governance
Statement 84 Board of Directors’ Profiles 7 Other Information
21 Quarterly Financial 90 Management Profiles 218 Independent Assurance
Performance 94 Corporate Governance Report
21 5-Year Financial Summary Overview Statement 221 Corporate Information
119 Statement on Risk 222 Corporate Directory
3 Strategies To Create Value Management and 223 List of Properties
24 Our Business Model Internal Control 225 Disclosure of Recurrent
26 Our Operating 126 Additional Compliance Related Party Transactions
Landscape Information 226 Share Price Development
30 Our Key Relationships 128 Statement of Responsibility 227 Statistics on
33 Our Key Risks by Directors Shareholdings
38 Our Material Matters 228 Statement of Directors
41 Our Emerging 6 Audited Financial Statements and CEO’s Shareholdings
Opportunities 130 Directors’ Report 229 List of Thirty (30) Largest
44 Our Strategy 135 Statement by Directors Shareholders
135 Statutory Declaration 231 Notice of Annual General
136 Independent Auditors’ Meeting
Report • Form of Proxy
2 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 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 Statements Other Information Integrated Annual Report 2021 3
About This Report
Integrated Annual Report (IAR) 2021

Assurance
Our audited annual financial statements are disclosed

IAR Our primary report to shareholders, which details the
company’s developments, financial performance for
in Section 6. We have also engaged an external auditor the year and future orientation to form our holistic
to provide a limited assurance for selected non-financial
value creation story.
indicators. The independent assurance report can be
found on pages 218 to 220 of this report. 1 2 3 4 5 6 7 8 9
Sustainability Performance and GRI Content Index

Forward-looking Statements
SP Our Sustainability performance website provides a
This report may contain forward-looking statements with detailed account of the company’s sustainability
respect to Digi’s future performance and prospects, performances, available online via https://www.digi.
alongside the ongoing proposed merger of Digi and com.my/sustainability/reporting.html
Celcom which will be subject to regulatory approvals,
3 4 8 9
other customary terms and conditions and approvals of
all non-interest shareholders.
Corporate Governance Report 2021
Integrated Approach and Materiality

CG Our Corporate Governance report details out Digi’s
corporate governance practices.
We aim to preserve, create and deliver sustainable 2 3 5
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. Reporting Framework & Principles
In addition, we have fully embedded integrated
1 IIRC’s Integrated 5 Malaysian Code on
thinking in our sustainability management to fully reflect Reporting <IR> Framework Corporate Governance
material environmental, social, and governance (ESG)
considerations into our short-to-long term business model 2 Companies Act 2016 6 Malaysian Financial
and strategies. Reporting Standards
3 Main Market Listing (MFRS)
Requirements of Bursa
Our material matters are continuously monitored as they Malaysia 7 International Financial
have the potential to substantially affect – both positively Reporting Standards (IFRS)
and negatively – our ability to create and preserve value. 4 Bursa Sustainability
Reporting Guidelines & 8 Global Reporting Initiative
Subsequently, the materiality assessment processes
Toolkits (GRI) Standards (Core)
and disclosures are aligned to the Materiality principles
of International <IR> Framework and Bursa Malaysia 9 ISAE 3000 (Revised)
Securities Berhad’s (Bursa Malaysia) Listing Requirements. – Limited Assurance
Engagement
Approval by the Board

Navigation Icons
The Board of Directors of Digi is responsible for ensuring
Our Capitals Our Strategic Pillars
the integrity of Digi’s IAR 2021 and give full attention to the
management’s evaluation and effectiveness of disclosure
Financial Capital Growth
controls and procedures. Such controls will ensure high
reliability of financial reporting for external purposes in Manufactured Capital Modernisation
accordance with the Main Market Listing Requirements of
Bursa Malaysia. The report was approved by the Board on Intellectual Capital Responsible Business
11 March 2022.
Human Capital
Reporting Suites Feedback and Contact Point
Natural Capital Your feedback is important to
We are committed to report openly and honestly to our us and we welcome your input
to enhance the quality of our
broad range of stakeholders. To view the full suite, visit our Social and Relationship reporting. Please email your
website at www.digi.com.my/annualreport/index.html Capital feedback to invesrel@digi.com.my.
About Digi
ABOUT
WHO WE ARE
Digi is a leading and trusted digital connectivity and services company,
empowering societies and keeping customers connected to what matters most.
WHAT WE DO
Our number one priority is to deliver connectivity in a safe, We have built solid fundamentals and expertise in future-
reliable, and efficient way to Malaysians across the country. ready networks, digitalisation, customer experience,
We believe connectivity empowers everyone to improve workplace and people development, and responsible
their lives, builds societies and secures a better future for all. business practices – shaped by a
culture of innovation.
We offer a wide range of innovative, personalised, and
engaging mobile connectivity, internet services, and digital Building on these capabilities, we believe we are well
solutions to 10.3 million consumers and business customers positioned to include, advance and safeguard customers
every day on our advanced 4G LTE network. and society through digitalisation and advanced
technologies for a future of new possibilities.
93.1% 75.9%
10.3 million 4G LTE 4G LTE-A 10,173 KM
customers network coverage in fibre network
populated areas nationwide
OUR VALUES
A lways E x p lo r e C r e ate To g eth er Keep Pr o m i ses Be Resp ectful

We believe growth comes We believe diverse teams We believe that trust is key We believe in the
from learning every day. find better solutions. We in all our relationships. We unique human ability to
We’re curious and we dare seek different perspectives, take ownership and pride understand what matters
to challenge, test, fail fast share, involve, and help in delivering with precision for people. We meet
and pivot. each other succeed. and integrity. everyone at eye level, listen
and show that we care.
OUR Way of Work
Customer Obsessed Innovation 360

Putting our customers at the heart of Exploring ways to do things differently
everything we do. and to do different things that serve to
improve the lives of our customers.
About Digi
ABOUT DIGI
OUR PURPOSE
Empowering Societies
Connecting Customers To What Matters Most
Connecting people, businesses and societies has been and data in the digital world and beyond. The global
the core of our business for the last 27 years. Covid-19 pandemic in the past two years has demonstrated
Today, internet connectivity impacts nearly every part of that our purpose is more relevant than ever.
our lives, and we are making it more personalised and
relevant than ever before. To us, it is more than good Delivering our purpose requires a dedicated focus
business. It is empowering societies. on transforming and modernising our organisation to
enable growth and create efficiencies, while innovating
Building on this, we want to enable connectivity for all to on our core services and customer experiences, and
drive greater societal inclusion, advance connectivity to conducting our business in a responsible manner always.
accelerate digital future, and safeguard the planet, people This is how we aim to create value for our customers and
stakeholders for the long-term.
Our Strategy
We have a clearly defined strategy driving our purpose to empower societies and connect customers to what
matters most. Anchored on Growth, Modernisation and Responsible Business, our strategy steers us to remain
a leading and trusted digital connectivity partner.
Refer to Our Strategy on pages to 44 to 47.
CORPORATE STRUCTURE
Digi.Com Berhad
[Registration No. 199701009694 (425190-X)]
100% Digi Telecommunications Sdn. Bhd. 100% InfraNation Sdn. Bhd.

[Registration No. 199001009711 (201283-M)] [Registration No. 200901003326 (846253-D)]
100% Y3llowlabs Sdn. Bhd.

[Registration No. 200001032596 (535203-H)]
Chair of the Board’s Statement
In the context of the ongoing Covid-19 pandemic in 2021,
Digi’s purpose has never been

more relevant: connectivity
continues to enable customers to
work from anywhere, for businesses
to remain operational, for public
services to function, and for
people to stay connected to what
matters most to them.
In 2021, Digi delivered on its strategic plans: the company focused on growing its network, brought
affordable, relevant, and innovative products and digital solutions to consumers and businesses,
modernised its operations to improve how it serves customers, and delivered healthy returns to its
shareholders. Digi continued to deepen its responsible business commitments, which are built on
good corporate governance principles to serve customers credibly, to care for its employees and
supply chain, and to play our part as society recovers from the pandemic.
Read more about this on pages 8 to 9.

Digi continued to deepen its responsible business

commitments, which are built on good corporate
governance principles to serve customers credibly, to
care for its employees and supply chain, and to play
our part as society recovers from the pandemic.
Haakon Bruaset Kjoel

Chair of the Board
Q
How did Digi create value for its
Q
How did Digi fare in sustaining its
Q
How is Digi delivering on its
stakeholders amidst the pandemic? returns to shareholders? Responsible Business commitments?
A A A
Digi continued to improve network Digi’s focused execution on strategic Responsible Business continues to
availability and quality, enabling priorities and prudent financial be a core pillar of Digi’s strategy,
customers to stay connected and management have led the Board embedded in the way the company
fully leverage the benefits of digital to declare a net dividend per share works and the standards it expects
technology. Initiatives introduced at of 14.9 sen - returning a total payout from its supply chain. The company’s
the start of the pandemic in 2020 of RM1,158 million to shareholders responsible business framework is
carried on into 2021. They include and sustaining a near 100% dividend anchored on its ‘Yellow Heart’ brand
various Yellow Heart initiatives to payout ratio for FY2021. Year on year, aspirations: to raise standards across
help critical relief and community the company continues to exceed its operations and supply chain, and
support efforts, as well as the year-long its dividend policy of distributing a to partner effectively to build skills and
provision of free daily 1GB data for
minimum 80% of net profits, keeping resilience for an accelerated digital
productivity and education, access to
to its commitment of delivering future.
affordable mobile plans and devices
strong and sustainable returns to
via the Jaringan Prihatin and Pakej
shareholders. The Board continues to push for Digi
Keluarga Malaysia programmes, and
to maintain its responsible business
access to PENJANA digitalisation
grants for small and medium leadership among corporates in
enterprises (SME). Provision of these Malaysia. In 2021, Digi improved
digital solutions has also enabled its MSCI environmental, social and
consumers and businesses to reduce governance (ESG) rating from ‘A’ to
their carbon footprint, helping Digi ‘AA’, and the company is well on track
drive greater climate action across its to achieving its ambition to be among
value chain. the best performing companies in
Malaysia on sustainable business
The Board commends the standards and ESG practices.
Management for advancing the
robust business continuity plan put in Digi continues to maintain the highest
place the previous year that enabled standards of ethics and integrity in its
the company to adapt quickly to business conduct. Initiatives include
changing conditions. We also record developing a future-ready workforce,
our appreciation to all Digizens safeguarding the health, safety and
and partners for their resilience in wellbeing of its people and partners,
navigating through yet another a being environmentally responsible in
challenging year, by working together its operations, protecting the privacy
safely to continue serving the needs of
of its customers, and reducing
its 10.3 million customers.
inequalities for society.
Read more about how

Read more about how Digi Read more about the value
Responsible Business is
created value across its six Digi created with its Financial
embedded in the way Digi
capitals on pages 50 to 81. Capital on pages 50 to 53.
creates value in pages 57 to 81.
Q
How has Digi strengthened its
Q
What is Digi’s outlook for 2022?
diversity commitment?
A A
Diversity and inclusion is a key Accelerated digitalisation will continue to fuel demand for connectivity and
agenda in Digi’s people strategy. digital infrastructure, and the telecommunications sector will continue to
The company firmly believes that a evolve rapidly, with significant new opportunities enabled through 5G,
diverse workforce across all levels artificial intelligence (AI) and internet of things (IoT). At the time of writing,
of the organisation with a variety of the mobile telecommunications industry eagerly anticipates the Malaysian
perspectives is a strength, to better government’s policy decision on the implementation of 5G. Digi continues
serve its diverse customer base. The to support the MyDigital initiative and believe that 5G networks are a critical
Board is pleased that Digi continues infrastructure to enable the advancement of the digital economy in Malaysia.
to be recognised as a leader in this
respect, with its second-year inclusion Looking ahead, we aspire to create even more value for the business. The
in the global Bloomberg Gender proposed merger with Celcom Axiata Berhad aims to create a leading
Equality Index (GEI) 2022. Digi is one telecommunications service provider in Malaysia. The new company will
of only three Malaysian companies have the capabilities to provide better network quality and coverage and
on the index. Digi also signed the UN have greater scale to invest, drive new digital solutions, catalyse new growth
Women’s Empowerment Principles opportunities for large enterprises and SMEs, and attract and partner global
and became a member of 30% digital giants. It will also leverage economies of scale to realise efficiencies
Club, attesting to its commitment in from operations, while strengthening core distribution and delivering improved
advocating diversity and inclusion network operations.
initiatives.
We are confident that Digi’s strategic focus on growth and modernisation,
and our agile way of work will enable the company to seize opportunities.
All Digizens, from the Boardroom to our stores, will work together to deliver our
ambitions. We will be led by our purpose of Connecting Customers to What
Matters Most, execute a focused strategy to make Digi more digital, efficient,
and customer centric, as well as do our part to build a truly inclusive and
resilient digital society in Malaysia.
The Board is confident we have the appropriate balance of knowledge, skills, experience,
and independence to drive the company’s agenda and govern effectively. The recent
appointments of Datuk Iain John Lo as Independent Non-Executive Director has further
strengthened the Board. We also extend our heartfelt gratitude to Tan Sri Saw Choo Boon,
for his decade-long dedication and guidance, and to Randi Wiese Heirung for her valued
contributions to the Board.
On behalf of the Board, I wish to express my appreciation to the Management team and all
Digizens for their collective contribution to Digi’s resilient performance in a year challenged
by Covid-19. I would also like to thank our business partners, shareholders, and stakeholders
for their ongoing engagement and support, as we continue to navigate the impact of the
Read more about the value pandemic.
Digi created with its Human
In view of Covid-19, we will continue to engage with shareholders virtually in 2022, to prioritise
Capital on pages 62 to 66.
your safety. Please see details outlined in our Notice to the 25th Annual General Meeting
and its governance focus in (AGM). We look forward to sharing more on our business at the AGM on 13 May 2022.
Section 5 of this report.
Chief Executive Officer’s Statement
Resilience and inspiration have been

central tenets that have underpinned
2021 for us. We continue to draw
inspiration from our customers, who are
the lifeblood of our business, recognising
that we play a crucial role in enabling
them to make real, positive impact – big
and small – in the world today.
Albern Murty
Chief Executive Officer
2021 was a year of resilience and inspiration for Digi. In a year of prolonged movement restrictions,
macroeconomic and competitive challenges, and mostly a pandemic that continued to affect
lives and livelihoods, Digizens and partners rallied to adapt to conditions and delivered a steady
performance, while being committed in driving society’s recovery from the effects of Covid-19, as well as
the devastating floods that hit many parts of the country in the later part of the year.
In 2021, Digi stayed focused on executing our

business strategy and delivering on our purpose of
Connecting Customers to What Matters Most.
We invested in ensuring the quality and availability
of our network services, aligned with the
government’s JENDELA plans. We continued to
deliver value from winning products and services to
consumer and business customers. We have put in
place a strategic transformation plan to guide the
next phase of the company’s journey. And we are
building a solid platform to advance our ESG goals.
We continue to invest strategically to deliver to the expectations of our consumer and business segments,
capture new growth opportunities, scale our business, drive modernisation and efficiencies in our operations,
safeguard people and planet, and support the nation’s recovery from the pandemic.
Resilience and inspiration have been central tenets that have underpinned 2021 for us. As CEO, I am
immensely proud of how all Digizens have come together to support each other in these challenging times.

Q
How would you characterise Digi’s
Q
How did Digi navigate through the
Q
What can we expect from Digi in the
performance in FY2021? year to deliver value and growth? coming year?
A A A
Digi delivered a well-fought We set out our three-year strategy While overall macroeconomic
performance in FY2021, achieving full- roadmap at the start of 2021, challenges will remain intense, we
year results in line with our financial anchored on our purpose to are encouraged to see some signs
guidance. We prioritised network and empower societies and connect of recovery from the pandemic and
digitalisation initiatives in the year to customers to what matters most. a clear plan from the government
for the safe normalisation of
further improve customer experience
business activities, easing of
and develop our core segments. We The surge in demand for connectivity
broader Covid-19 related restrictions,
also stepped up initiatives to run our and digital services supported
and the impending opening of
technology and business operations our ambition to modernise and international borders, all driven by an
efficiently, while continuing to invest in strengthen our network and exemplary execution of our national
the right areas to execute well on our operations, as well as to grow immunisation programme and the
growth and modernisation agenda. revenues in Postpaid, Fixed, and gallant efforts of our frontliners.
These resulted in steady earnings for Business segments during the
the company and healthy returns to year. This accelerated shift to We have confidence that Digi will
shareholders. digitalisation also put a spotlight deliver a robust 2022, underpinned
on the society’s increased use of by sharp execution of our strategic
digital technology and tools: this priorities. We see Postpaid, Fibre, and
Business as our key growth drivers,
fueled our commitment to continue
and will continue to bring best-value
on our Yellow Heart programme to
product propositions and innovative
advance safer internet awareness,
digital solutions to the market. Our
advocating data privacy, partnering business modernisation journey
to build skills for a better digital future, is progressing well, with critical IT
and promoting digital inclusion transformation projects in the pipeline
by enabling easier access to our to enhance digital experience for our
services for all Malaysians across the customers, and boost organisational
country. capabilities. We continue to
work closely with the Malaysian
Communications and Multimedia
Commission (MCMC), including
on Universal Service Provision (USP)
initiatives, which will strengthen our
ability to provide high-quality and
affordable digital connectivity to
More on our 2021 strategy communities in rural and remote
More details on Digi’s financial
review by our Chief Financial
progress and achievements are areas.
detailed out in the Our Strategy
Officer in pages 14 to 20,
section of this report on pages
and how we created value
44 to 47, and how we created
from our Financial Capital on
value across our six capitals on
pages 50 to 53.
pages 50 to 81.
In parallel, the proposed merger

of Celcom Axiata Berhad and Digi On behalf of the Management team, I would like to thank all our
Telecommunications Sdn. Bhd. customers and shareholders for your support and continued
announced last year is proceeding confidence in Digi during the last year. We also appreciate the
as planned at this time of writing.
engagement and collaboration with the MCMC and our industry
We look forward to the exciting
colleagues in achieving many shared successes in the year. We are
prospect of creating a Malaysian
grateful to the Board for their leadership in guiding and governing Digi.
market leader through the proven
capabilities of the two established
operating companies and the I would also like to take this opportunity to thank outgoing Chief Human
strength of two international Resource Officer, Elisabeth Stene for playing a pivotal role in driving Digi’s
telecom leaders Axiata and Telenor. People agenda through a most critical period. Best wishes from us as she
This underpins a shared vision to heads home to Norway for another opportunity within the Telenor Group.
create value through product and
market innovation and high-quality We want to also thank all our dedicated Digizens who have been
data connectivity to all Malaysian working tirelessly to deliver reliable network services and support our
consumers and businesses, to power customers throughout the various phases of movement control orders
the nation’s digital ambitions in the
last year.
years to come.
Lastly, we express our appreciation to Malaysia’s first responders,

5G networks are among the critical
infrastructure in the development enforcement agencies, and government authorities working
of this digital ambition. We are determinedly to keep society safe and lead us on the path of recovery
committed to supporting the in 2022.
government’s MyDigital initiative
and look forward to working closely
with the government in charting
Malaysia’s 5G deployment.
Underlying all these ambitions is

the trusted Digi brand, built on a
responsible business impulse to
include, advance, and safeguard
society. We continue to draw
inspiration from our customers, who
are the lifeblood of our business,
recognising that we play a crucial
role in enabling them to make real,
positive impact – big and small – in
the world today.
Chief Financial Officer’s Statement
2021 was undoubtedly a challenging year with the nation focusing on rebuilding growth momentum
and staying connected while people were working or studying from home. As we entered the second
year of the Covid-19 pandemic, Digi remained focused on keeping customers, businesses and
stakeholders connected while continuing to strengthen our operations and financial performance.
In this context, we are proud of our 2021 results. One of the things that has warmed me since I joined
Digi in August 2021 was the relentless commitment and dedication of all my colleagues, as well as the
entire telecommunications industry and public officials in weathering the challenges brought upon us
by the ongoing pandemic.
In this environment, I am so proud of how our shareholders have supported us and how Digi has
succeeded not only to continue to operate efficiently and deliver strong results, but also how we
continued to invest in our leading network and improve coverage all around the country.
All this would not have been

possible without the consistent
commitment over time to the
principles of disciplined capital
management, both in allocating
capital to our value creating
initiatives, as well as in the
distribution of attractive returns to
our shareholders.

I am proud of how our shareholders have

supported us and how Digi has succeeded
not only to continue to operate efficiently and
deliver strong results, but also how we continued
to invest in our leading network and improve
coverage all around the country.
Otto Magne Risbakk

Chief Financial Officer
Q
How did Digi perform financially compared to FY2020?
A
In FY2021, we delivered steady financial results within Despite the prolonged movement restrictions in Malaysia,
guidance amidst a challenging and unprecedented we were able to minimise bad debt risks and improve
operating environment. The impact of volatile collections. These were achieved by focusing on effective
macroeconomic conditions on consumer confidence customer acquisition mechanisms and digitalising
and business spend were partly mitigated by relevant payment methods. As a result, we recorded a low
government support initiatives, some of which also expected credit loss (ECL) of RM55 million as compared
supported our sector. to RM82 million a year ago.
Although financial results declined marginally, we saw For the full 2021 year, earnings before interest, tax,
encouraging improvements in key revenue segments and depreciation and amortisations (EBITDA) reached
continued improvements in operational efficiency. While RM3,009 million, a decline of 2.3%. The EBITDA margin was
total service revenue declined by 1.6%, we succeeded in 47.5%, down from 50.0% in 2020. However, the underlying
building a strong momentum in our Postpaid, Fibre, and operating 2021 EBITDA margin was similar to 2020
Business segments. We added approximately 253,000 new excluding handset sales.
Postpaid customers to reach 3.3 million subscribers. In
the fourth quarter of 2021, the Postpaid segment revenue Our conservative balance sheet and low gearing again
was higher than the Prepaid revenue for the first time in secured a high EBITDA to profit after tax (PAT) conversion.
FY2021. Nevertheless, we made significant progress in PAT for 2021 reached RM1,162 million, a decline of 4.8%
attracting higher quality Malaysian Prepaid subscribers. due to flow through from EBITDA, higher depreciation
We also grew our Fibre subscriber base to approximately charges mainly caused by our 3G network shutdown
13,000 customers in its first full year. Our Business segment and a small increase in finance costs. Despite the minor
realised a 4.8% revenue growth from large enterprises decline, our PAT margin remains among the best in the
seeking advanced managed solutions and SMEs seeking industry.
to digitalise their businesses. All in all, total revenue upped
3.0% to RM6,336 million, as handset sales increased to Supported by a strong balance sheet and low gearing,
support our growing Postpaid business, offsetting the we were able to comfortably maintain the near 100%
decline in service revenue. dividend payout ratio, distributing RM1,158 million in
dividends to our shareholders.
In line with the growth in our device and digital business,
our costs of goods sold (COGS) of RM1,754 million was Building on the execution momentum in 2021, we entered
14.0% higher. On the operating expenditure (OPEX) 2022 full of confidence, with a stronger and more resilient
front, we have also recorded a modest increase of customer base, a well-invested and modernised asset
2.5% mainly driven by 4G network coverage expansion base, and a solid capital structure.
and site upgrade works to deliver improved network
experience for our customers. OPEX-to-service-revenue
ratio remained healthy at 29.5%, highlighting our prudent
cost management and efficient operations.
Q
How did macroeconomic and Covid-19 challenges impact Digi in terms of its financial decisions?
A
The macroeconomic impact of Covid-19 has impacted After almost two years of pandemic, society is gradually
Digi in many different ways, both directly and indirectly. adapting and living alongside with Covid-19. However,
As a provider of critical communication and connectivity certain effects of the pandemic persist, and the economic
services to consumers as well as business customers, our outlook for our markets remain clouded. Malaysia has
purpose of empowering societies and connecting people closed its borders for the past two years. The extended
to what matters most has never been more relevant. closure and movement restrictions have decreased
consumer and business spending, negatively affecting
Our customers have relied heavily on our services during demand, and lowering roaming revenue.
the various phases of movement restrictions caused by
Covid-19, for example students following classes and It is difficult to predict when the effects of the Covid-19
taking exams from home, employees working remotely, pandemic will start abating. We are hopeful for a gradual
families keeping contact with their loved ones, businesses recovery in 2022, but with all the investments and
moving sales and services online, and so on. The change learnings we have made in the last two years, we are also
in consumer patterns and the increase of data traffic prepared for a prolonged impact.
required a swift response from Digi.
Data traffic growth
22%
To meet the needs of all our customers and to ensure
customers and society continued to work seamlessly and
stay safe, we had to make internal decision processes
faster, accelerate digitalisation of internal processes, and
increase investments in network capacity and quality to
meet data traffic growth of 22%. I am proud to say that we
succeeded well in this endeavor. Not only did we manage
to keep all our customers connected, we also managed to
deliver record-high internet speed and solidify our position
as the fastest and most consistent network in Malaysia,
as recognised by external benchmark. I am impressed by
the excellent work done by all Digizens and grateful for
the support we received from the Board to reprioritise and
accelerate investments during this difficult time.
Q
How has Digi progressed in delivering on its environmental, social and governance (ESG) aspiration and plans?
A
Responsible business is one of three key pillars of our Digi also invested significant human and financial capital
strategy, and ESG is a fundamental part of this. We are to support our ESG agenda. We have participated in
proud of our contributions and recognitions in this public, industry and private forums, and supported many
important area – we are member of FTSE4Good Bursa local initiatives. For example, through our partnership
Malaysia Index with ESG score of 3.8, Sustainalytics’ ESG with Astro on the #KamiCareMBiz programme, we offered
risk rating of 18th percentile, which is one of the highest of RM500,000 worth of digital solutions and mobile plans to
in the region, and we have been part of CDP’s voluntary help local micro and small business owners go digital.
environmental disclosure of carbon reporting since 2009 We had also pledged RM1 million to GDRN (GLC/GLIC
via Telenor Group, and more. Disaster Response Network), disbursing the remaining
RM750,000 in 2021, via Mercy Malaysia to support
Nevertheless, there is much more to do in the years to Covid-19 relief efforts.
come in cooperation with the industry and authorities, both
locally and on an international level. We fundamentally
believe that business and ESG targets are complementary
and not contrasting. Fortunately, we are not alone in this
battle. We enjoy strong support from our Board and our
investors are increasingly placing ESG as a key investment
criteria. FTSE4Good Bursa ESG risk rating of
Malaysia Index
A key element of ESG is climate. We take an active (2021/22) ESG 18th percentile
approach in addressing climate change and are working indices score of one of the highest for the region
closely with the industry, government, environmental

agencies, and partners towards achieving a net zero
3.8
greenhouse gas emissions by 2050, in line with the Paris
Agreement. While challenges remain in large scale CO2 #KamiCareMBiz partnership GDRN Covid-19 relief efforts
reductions due to our dependency on the national grid,
we will continue to strengthen our governance and RM500,000 RM750,000
reporting mechanisms while exploring new technologies worth of digital solutions and disbursed in 2021, part of
and solutions. mobile plans provided to RM1 million pledged in
help local micro and small 2020
business owners go digital
Q
How did Digi manage its capital in FY2021?
Q
How was Digi’s financial strength in
meeting its financial obligation?
A A
Capital allocation and maintaining a strong and flexible In 2021, Digi realised an EBITDA margin of 47.5% and a PAT
capital structure are key priorities for Digi. Our capital margin of 18.3%. Operational cash flow reached RM2,606
allocation policy is firmly based on stringent criteria for million with a margin of 41.1%. The financial gearing as
value creation, guided by our three strategic pillars of expressed by net interest bearing debt divided by EBITDA
pursuing growth, modernisation and responsible business. was at 1.6x. As at the end of 2021, Digi had a net interest
Thanks to the solid performance and strong balance bearing debt of RM2,500 million and available undrawn
sheet, Digi could continue its investment strategy despite debt facilities of RM4,925 million.
the pandemic.
Our total asset in 2021 stood at RM7,840 million. We
In 2021, we continued our targeted CAPEX and OPEX maintained a healthy return-on-total assets of 14.8%. Our
investments to maintain our leading position in terms of strength in financial position enabled us to maintain the
network quality, operational efficiency and ESG. For both Sukuk rating of AAA/P1 with stable outlook by RAM Rating
CAPEX and OPEX investments, we would always prioritise Service amidst these challenging times, supported by
investments that support customer needs, followed by strong cash flow.
initiatives to support modernisation and digitalisation.
Most of our RM815 million CAPEX in 2021 was spent to Thanks to our solid and consistent profitability, a strong
enhance our 4G network, catering for the increase in data balance sheet and low gearing, Digi benefits from a low
consumption (more than 20GB per user, up 8.9% versus cost of capital, high financial flexibility, the ability to sustain
2020) and delivering 100% of our JENDELA commitments. a generous dividend payout ratio to our shareholders,
and ample flexibility to fund future investment and growth
Our industry-leading OPEX-to-Sales ratio of 24.8% in 2021 opportunities.
as well as external recognitions for having the fastest and
most consistent network in Malaysia are testimonies of our Total asset in 2021
persistent investment in network quality, modernisation,
and digitalisation. RM7,840 million
RM815 million
Majority CAPEX in 2021 spent to enhance 4G network
8.9% growth
in monthly average data consumption per user
Q
What is the guidance for FY2022?
Q
What can shareholders expect in FY2022?
A A
By strengthening our offerings in core and near-core Digi entered 2022 with confidence. The performance in
connectivity solutions within Postpaid, Fibre, and Business core Postpaid, Fibre, and Business segments improved
segments, we aim to return to service revenue growth in and the decline of the Prepaid subscriber base after the
2022, and expect the decline of the Prepaid segment to exit of the high-churn low-end of the migrant segment was
abate further. substantially reduced. Assets are well invested, the capital
structure is conservative with significant flexibility and the
On the cost side, we will continue our efforts to modernise cost base and profitability remains among the best in
and digitalise customer touchpoints and operational the industry. Although competition in Malaysia is strong,
processes. The focus on modernisation will also require we believe that Digi is well placed to maintain its steady
continued investments to sustain network leadership financial performance and continue to offer attractive
and drive digital capabilities. We will therefore maintain shareholder returns from a resilient business model, a
2022 CAPEX around FY2021 level, focusing on disciplined prudent capital allocation methodology, and a careful
capital and resource allocation, and also deliver EBITDA at financial management practice.
around FY2021 level alongside higher cost pressure.
We also aspire to further raise our responsible business

standards including ESG, which we are already leading
the industry, as recognised by external awards and
benchmarks.
In summary, our 2022 guidance is as follows:
2022 Guidance
Service Return to growth

Revenue
EBITDA Around FY2021 level: ~RM3,000 million
Capex-
to-total
Around FY2021 level: 12% - 13%
revenue
ratio
Quarterly Financial Performance
RM Million First Quarter Second Quarter Third Quarter Fourth Quarter
KEY HIGHLIGHTS FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21
Revenue 1,509 1,560 1,550 1,549 1,452 1,618 1,562 1,580 1,584 1,678 1,561 1,584
Service revenue 1,393 1,387 1,337 1,402 1,317 1,340 1,413 1,374 1,343 1,436 1,350 1,321
Earnings before interest, taxes, depreciation and
amortisation (EBITDA)1 805 756 738 850 770 743 837 788 788 819 766 740
Normalised EBITDA 804 756 743 803 744 744 820 743 766 795 757 740
Profit before taxes (PBT) 453 435 359 490 377 373 490 433 418 459 377 365
Profit after taxes (PAT) 342 332 265 392 288 280 358 321 313 341 280 304
Normalised PAT 341 331 270 323 291 287 326 268 295 318 285 253
Profit attributable to equity holders of the
Company 342 332 265 392 288 280 358 321 313 341 280 304
Earnings per share - basic (sen) 4.4 4.3 3.4 5.0 3.7 3.6 4.6 4.1 4.0 4.4 3.6 3.9
Dividends per share (sen) 4.3 4.2 3.4 5.0 3.7 3.6 4.5 4.1 4.0 4.4 3.6 3.9
5-Year Financial Summary
RM Million 2017 2018 2019 2020 2021

KEY FINANCIAL RESULTS
Revenue 6,340 6,527 6,298 6,153 6,336
Telecommunication revenue
- Service revenue 5,969 5,827 5,644 5,428 5,341
- Others 65 75 87 84 95
- Sales of device 306 625 567 641 900
EBITDA1 2,886 3,033 3,311 3,080 3,009
Earnings before interest and taxes (EBIT) 2,100 2,229 2,113 1,805 1,729
Interest cost 132 130 246 253 210
PBT 1,985 2,080 1,892 1,622 1,515
PAT 1,477 1,541 1,433 1,221 1,162
Organic capital expenditure (Capex) 1,345 818 751 720 803
Operations (ops) cash-flow 2,577 2,176 2,062 2,432 2,606
KEY FINANCIAL POSITIONS
Total assets 5,834 6,206 8,149 8,187 7,840
Non-current liabilities 3,033 2,838 4,732 5,067 4,275
Total debts 2,704 2,694 5,150 5,452 4,960
- Conventional borrowing 1,292 1,293 780 555 333
- Islamic borrowing 1,391 1,393 2,322 2,316 2,168
- Lease liabilities 21 8 2,048 2,581 2,459
Shareholders’ equity 519 673 660 606 633
KEY FINANCIAL RATIOS3
Return on equity 285% 229% 217% 201% 184%
Return on total assets 25% 25% 18% 15% 15%
EBITDA margin 46% 46% 53% 50% 47%
Net debt/EBITDA (x) 0.7 0.7 1.4 1.7 1.6
Interest cover (x) 15.9 17.1 8.6 7.1 8.2
SHARE INFORMATION
Earnings per share (sen) 19.0 19.8 18.4 15.7 14.9
Dividend per share (sen) 18.8 19.6 18.2 15.6 14.9
Net assets per share (sen) 6.7 8.7 8.5 7.8 8.1
Dividend yield 3.7% 4.4% 4.1% 3.8% 3.4%2
Notes:
• 2019, 2020 and 2021 Financial Information are based on post-MFRS 16
1 EBITDA excludes the gain or loss on:

- disposal and write-off of property, plant and equipment
- disposal and write-off of intangible assets
- termination of lease
2 Yield calculated based on the closing price of RM4.36 as at 31 December 2021
3 Key financial ratios prior to 2019 are calculated based on MFRS 15
Fuelled by new market opportunities and segments
We aim to sustainably grow consumer and lead organic B2B

revenue growth, as part of our strategic priorities to create long-
term value for the company and for all our stakeholders.
Low Low to mid #1 Most
double-digit double-digit consistent
growth in Postpaid and Fixed
subscribers (vs FY2020)
growth in B2B revenue
(vs FY2020)
network
(maintain 2020 position)
Our Business Model
We aim to create value for our stakeholders in a sustainable manner. We strive to align our business objectives to stakeholder needs,
and deliver our strategy against business opportunities and risks, backed by our robust corporate governance to deliver value. Further
details on the value we created and the impacts to Digi are available in Section 4 to 5 of this report.
KEY INPUTS our value creation engine
Financial Key enablers to operationalise our strategy
Capital
Our Operating Our Key Our Key
RM33.9 billion market capitalisation1
Landscape Relationship Risks
(Pages 26 to 29) (Pages 30 to 32) (Pages 33 to 37)
Net debt to EBITDA at 1.6x
as at 31 December 2021
1
Our Material Our Emerging
Governance
Matters Opportunities
(Pages 84 to 128)
(Pages 38 to 40) (Pages 41 to 43)
manufactured
Capital
11,000+ network sites (2020: 10,000+) Our strategy framework (Pages 44 to 47)
Investment in enhancing
4G coverage and quality
intellectual
Capital
Innovative digital platforms and solutions
Trusted brand reputation
natural
Capital
Consumed 341.01 GWh
(2020: 329.18 GWh)
Environmental Management System -

ISO14001:2015 certified
human
Capital
1,400+ Digi employees (2020: 1,500+)
Embraced a culture of continuous

learning
Our growth engines
social and
relationship Postpaid Prepaid
Capital
Commitment to operate responsibly
Raising standards across our value chain
Partnerships to build required skills and Fibre Business

resilience for an accelerated digital future
Broadband (B2B)
Our Business Model
Outcomes
 Total revenue up by 3.0% to RM6.34 billion

 EBITDA margin at 47.5%
 ~100% dividend payout ratio
 Credit ratings of AAA/Stable/P1
Our competitive  Serving 10.3 million customers
advantage  Sustained position as Malaysia’s fastest and most consistent

network
lies in the quality of our  Delivered JENDELA commitments
 Scaled core and near-core connectivity offerings
network and infrastructure,
innovative product and service
offerings, strong distribution  Strongest brand in Malaysia (ranked by Brand Finance, 2021)
 Sustained leadership ranking in ESG2
channels and procurement  Implemented secure and sustainable business conduct
system, proven track record in  Modernised processes and innovated ways of work
 Launched innovative offerings to cater to wider segments of
driving operational efficiency, customers
2
Polled by independent Brand Health Survey provider
strength of our trusted brand,
and resilience of our people.
 5% increase in CO2 emissions in parallel with aggressive network
roll-out
 Reduced Carbon Intensity per Data Usage by 13.7%
Our performance indicators  Structural reinforcements of network sites in response to physical
climate risks (e.g. floods)
Revenue growth
Brand preference
 Average 52.6 learning hours per employee
 45% women in leadership positions
 87% employees believed their well-being was prioritised
OPEX during the Covid-19 pandemic (Digi’s 2021 Pulse Survey)
EBITDA  0 Lost Time Injury Frequency (LTIF) and 0 fatalities
CAPEX-to-total revenue
 > RM1.5 million contributed to Covid-19 Response and Recovery

ESG rating and SDG contribution efforts
 RM500,000 aid pledged for flood relief and recovery efforts
Employees’ learning hours
 Supported medical frontliners by providing devices and
Cyber security training connectivity plans for contact tracing
 Accelerated businesses and SME digitalisation via the
PENJANA grant
 Received the BCMS ISO 22301:2019 certification
Our Operating Landscape
1 Macroeconomic
In 2021, Malaysia, like many
other countries in the world, • Malaysia’s gross domestic product (GDP) grew 3% to 4% in 2021, as a result of
nationwide recovery efforts to mitigate the impact of the pandemic
continued to weather the
• Acceleration of the National Covid-19 Immunisation Programme (PICK), an integral
impact of the Covid-19
component of the National Recovery Plan (NRP) has enabled the economy to fully
pandemic. Disruptions open with less movement restrictions in the fourth quarter of 2021
caused by the pandemic • Emergence of the Covid-19 Omicron variant impacted public health and
led to increased inequalities consequently delayed economic recovery
and mobility contrains, • Vaccine and booster rollout, coupled with easing of travel restrictions increased
consumer activities across all sectors, including the telecommunications sector
which further underscored
• High unemployment rate remained a concern alongside weaker consumer spend
the critical role and services
and affordability
of telecommunications
• Accelerated digitalisation and innovation driven by remote working and online
companies. To address learning spurred demands for high quality network connectivity and digital
both the challenges and services
opportunities, Digi focused

on redirecting our network Our Response
resources and services to  Strengthened mobile offering and digital services for subscribers
support our customers and  Supported society’s recovery from Covid-19 and prioritised safety and well-
being of employees and all stakeholders
businesses.
 Increased spectrum efficiency via the new 4G integration and maintained
network stability and consistency
Legend
Looking Ahead 2022
 Malaysia’s GDP is expected to strengthen between 5.5% and 6.5% due to high
Financial Capital
vaccination rates and various stimulus and assistance packages to support the
people and revitalise the economy
 The acceleration of the National Covid-19 Immunisation Programme enabled

Manufactured Capital
next phase adoption in the National Recovery Plan (NRP) for border reopening
and endemic transition
 Continue working with the government and industry on advancing technology

Intellectual Capital
adoption among customers and businesses leveraging potential of 5G, artificial
intelligence (AI) and internet of things (IoT)
 Continue serving consumers with consistent network experience and B2B

Natural Capital
solutions to drive business growth
 Global geopolitical tensions resulting in rising commodity prices, inflation and

possible supply chain disruptions are emerging risks to be monitored
Human Capital
Social and Relationship Capitals

Capital
2 Competition and Industry Developments 3 Emerging Regulatory Requirements
• Prepaid average revenue per user (ARPU) declined in 2021, • The new Mandatory Standards for Quality of Service
as movement control orders (MCO) and economic (MSQoS) announced by the Malaysian Communications
uncertainty raised concerns with consumers and businesses and Multimedia Commission (MCMC) took effect on
1 August 2021
• Mobile operators extended coverage and capacity to
address a surge in data consumption • The government’s MyDIGITAL initiative designed to drive the
country’s digital economy by 2030
• Increase in the volume of data traffic and growing demand
for data localisation led to investments in new data centres • Covid-19 National Recovery Plan (NRP) and developing
policy framework on 5G
• Broader economic pressures dampened consumer
spending • Malaysian Code on Corporate Governance (MCCG)
updated to enhance corporate governance and practices
• Prolonged border closures led to continued shortfall in
migrant and tourist segments
• Decreased in-store traffic due to various MCO Our Response
 Implemented corporate governance framework
Our Response that provides for prudent management and
oversight of Digi, protecting the interest of all relevant
 Improved blended ARPU from shift in acquisition stakeholders
mix and contracting efforts through Digi’s refreshed
Postpaid portfolio  Maintained open and proactive engagements with
various regulators and authorities in line with the 5G
 Introduced bundling add-on deals focused on roll-out blueprint
affordable high-speed internet plans
 Embedded regulatory compliance in business
 Drove data monetisation among the youth and culture, planning and decision-making framework
Bottom 40% (B40) segment
 Conducted compliance training
 Delivered attractive value-added services on our
secure 4G LTE and LTE-A networks
 Enhanced digital channels on app and web, and
direct partnership connections increased digital Looking Ahead 2022
adoption  Government to provide RM700 million to continue digital
 Prudent cost management and continued connectivity efforts in 47 industrial areas and 630 schools,
modernisation efforts improved efficiency and especially those in rural areas
maintained profitability  Government to allocate RM30 million to provide internet
facilities in 40 existing People’s Housing Programme (PPR)
 In 2022, 5G services to cover 36% of high-density areas in
Looking Ahead 2022 Johor, Selangor, Penang, Sabah and Sarawak
 Shift in customer behaviour driving increased need for
home connectivity and digital services
Capitals
 Continue expansion of 4G coverage and optimising
service quality in line with the JENDELA and MyDIGITAL
initiatives
 Leverage leading network position to maintain market
share and grow new adjacent services
Capitals
4 Technology 5 Social
• 5G network commercial launch in selected areas within • Sustained brand trust by demonstrating strong ESG
Kuala Lumpur, Putrajaya and Cyberjaya, with the objective performance and leadership
of achieving 80% nationwide population coverage by 2024
• Higher security protection for customers’ personal data and
• Industry joint effort to retire the 3G network nationwide in our infrastructure
line with JENDELA initiative
• More skills an accelerated digital future and ‘Empowering
• JENDELA Phase 1 tender to construct 1,661 new sites Societies’ programmes
(potentially worth RM4.6 billion) to expand 4G coverage
• Priority in safeguarding the health and safety of our
across unreached areas accomplished in October 2021
employees and partners, while respecting human rights
• Rising cyber security and data protection concerns across standards
industry
• Commitment to uphold highest standards of good
• Digitalising SMEs and co-developing solutions with large governance across our value chain
corporations and partners
• Continued focus to elevate diversity and inclusion (D&I)
practices and strengthen a gender-inclusive workplace
Our Response
 Supported the government’s implementation of 5G Our Response

network as critical national infrastructure  Supported nation building activites by contributing
 Collaborated with industry to advance digital access aid to Covid-19 relief efforts via NGOs, continued free
and adoption in Malaysia 1GB daily productivity data for customers, optimised
network coverage and ramped up capacities at
 Conducted awareness campaigns on cyber security critical sites
frauds and phishing scams
 Achieved 100% vaccination rate for Digi’s employees
 Upskilled talents to embrace digital transformation in retail
strategies to meet rising demands and new
opportunities from technological innovation  Strengthened female leadership pipeline and gender
diversity policies as evidenced by our inclusion in
Bloomberg’s 2021 Gender Equality Index (GEI)
Looking Ahead 2022
 Continued advocacy of responsible business practices
 JENDELA Phase 1 is currently on track to reach its national through our Yellow Heart brand promise, leveraging
targets of providing broadband services to 7.5 million strategic partnerships to create long-term value
premises, while achieving average mobile broadband
speed of 35Mbps and 96.9% 4G coverage by the end of
2022 Looking Ahead 2022
 MyDIGITAL and 5G implementation will accelerate  Spur connectivity and digital adoption by extending
Malaysia’s progress as a technologically-advanced networks to rural areas, facilitating access to smartphones
economy and enable a socioeconomic transformation and providing affordable packages and digital services to
with the creation of more digital jobs bridge the digital divide
 Continued remote working and online learning will  Adopt multi-stakeholder approach to drive initiatives
elevate expectations for stable and high-speed network centred on digital inclusion and future skills learning
connectivity
Capitals
Capitals
6 Environment
• Climate risk has become an important global topic demanding for businesses to
adapt and respond with strategies to reach net zero carbon economy
• The government has committed to reducing the intensity of greenhouse gas
(GHG) emission across the economy by 45% based on GDP in 2030 and reach
net zero by 2050 with new economic instruments such as a comprehensive
national energy policy, carbon pricing and energy reforms
• Frequent flash floods have affected the livelihood of the community. In December
2021, the major flooding in eight states had displaced more than 125,000 people
and affected more than 1,000 mobile towers and disrupted services in these
areas
Our Response
 Drove emission reduction strategies with operational efficiencies, network
modernisation, clean energy adoption and e-waste management
 Digi nominated as a steering committee member in CEO Action Network
(CAN), a coalition of leaders with the purpose to shape policies and
create a favourable ecosystem for sustainable development in Malaysia.
Digi with CAN organised a telco sector CEO Roundtable dialogue on Low
Emissions Pathway for the Mobile Sector in Malaysia
 Supported WWF-BCG in producing the Securing Our Future: Net Zero
Pathways for Malaysia Report
 Completed the Climate Data Integrity exercise to inventorise Digi’s carbon
sources and to strengthen integrity of data collection and workflows
 Offered innovative digital solutions to help corporate and SME customers

better manage their own carbon emissions
Looking Ahead 2022

 Following the UN Climate Change Summit in Glasgow, COP 26, climate change
regulation will be enforced more tightly with a clear measurable goal
 Implement a phased approach to adopt the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD) including identifying
relevant climate-related risk scenarios
 Drive ESG performance and priorities while also improving ESG ratings
 Mitigate anticipated future physical climate risks such as extreme weather and
floods by adapting solutions on network and tower sites
Capitals
Our Key Relationships
Summary of Engagement with Internal Stakeholders Groups

Stakeholder expectations are
continuously evolving in line with
Board of Directors Government and Regulators
shifting trends and consumer
behaviours as well as new
emerging opportunities and risks. Specify and set laws and regulations
Responsible as the company’s
Regular engagements that apply to our scope of operations.
top leadership, setting strategic
with stakeholders are This also includes access to spectrum
aims, reviewing the management’s
and operating licenses and any
fundamental to how we operate. performance to meet strategic
financial implications with respect to
We believe that it is crucial to objectives
national aspirations
balance the corporate purpose
with stakeholders’ expectations. Engagement Channels Engagement Channels
Our stakeholder engagement  Annual General Meeting  Regular reports and periodic
 Quarterly Board meeting information sharing with the Ministry
approach is aligned with Practice
 Board effectiveness evaluation and regulators
12.1 of the MCCG.  Participate in JENDELA initiative and
 Company events/ activities
progress monitoring via the JENDELA
Implementation Committee
Frequency of Engagement
 Company website
In addition to ongoing engagements,  Integrated Annual Report and Financial
we have performed a refreshed Q Y Report
stakeholder engagement exercise  Yearly site audits and visits
to better understand their views on  Analyst briefings
Digi’s Sustainability management Issues and Expectations
during the year. This year, we engaged  Review financial and non-
with internal stakeholder groups financial performance W Q Y
comprising the Board of Directors,  Oversight on ESG matters such
as climate change, human rights,
selected functional leads and
compliance, anti-corruption,
employees. This was conducted with Issues and Expectations
welfare and well-being of
guidance from an external consultant  Coverage, service reliability and
stakeholders
and several engagement methods quality
 Customer’s expectations and
 Achieve JENDELA targets
were used, including attaining satisfaction scores  Talent development
feedback through qualitative and  Sustainability, climate action and
quantitative survey. environmental management
 Digi’s efforts in data protection
Our Response
Legend – Frequency of Engagement  Engage on Digi’s financial and
non-financial performance,
strategic growth plans, Our Response
D Daily
operational and talent  Widespread digital adoption
through affordable packages
management
W Weekly  Jaringan Prihatin rebate
 Ensure transparency in corporate
 Pakej Data Khas Belia
reporting and disclosures through  Pakej Remaja dan Pakej Peranti
M Monthly multiple platforms Keluarga Malaysia
 Strengthen communications and  Encourage 4G adoption through
Q Quarterly engagements with stakeholders campaigns
 Attend workshops on strategic  Programmes at Pusat Ekonomi
H Half-yearly plans and target-setting Digital (PEDi) internet centres
geared towards developing
entrepreneurs
Y Yearly
 CEO Action Network roundtables
and dialogues with Ministries
Shareholders, Analysts
Customers Employees and Investors
Subscribers of Digi’s products and Individuals employed under Digi Owners of the company, financial
services, comprising both consumers analysts, investor community and the
and business customers provider of capital. Digi’s responsibility
Engagement Channels to provide consistent communication
 Digi Telecommunications Sdn. Bhd. and timely updates pertaining to
Engagement Channels Employees Union (DGEU) and the Best financial and strategic developments
 In-person service: Digi retail stores, Digi On People Council (BOPC)
representatives  Pulse survey
 Self-serve: kiosks, MyDigi App, Digi Store  Internal engagement channels Engagement Channels
Online  Leadership forums  Dedicated investor relations office as
 Digital: Website and social media  Company events/activities the focal point for investor updates
 Customer service channels  Forums and seminars  Integrated Annual Report and
sustainability performance reports
Frequency of Engagement  Annual General Meeting
W M Q Y  Quarterly earnings calls
D W M Q Y  Non-deal roadshows and investor
conferences
 Digi Investor Relations website
Issues and Expectations
Issues and Expectations  Business priorities and strategy
 Coverage and service quality execution Frequency of Engagement
 Billing disputes from third party  Career development plans
content providers  Rewards and benefits structure W M Q Y
 Notification during service lapses  Employee engagement and
 Competitive plan and price enablement
points  Diversity and inclusion (i.e. gender
 Pace of 5G and IoT implementation balance, skills and capabilities,
 Business performance and outlook
and equal opportunities for all)
 Connectivity options and service  Growth strategies
 Employee welfare and culture
offerings for customers  Ability to sustain shareholder
 Company pursuit of ESG values
 Helping consumers and business (i.e. responses to climate change, returns and dividends
customers recover and diversify human rights)  Overall ESG performances and
 Improve digital access and strategy
working/collaborative tools  Ongoing industry developments
 Impact of Covid-19 and corporate exercises
Our Response
 Social media and web platforms  Business continuity plan and
to engage customers robust operational recovery efforts
 Segmented offering that caters to Our Response  Impact of Covid-19
a wide target base  Both the Union and BOPC have
 Offer fit-for-purpose solutions regular meetings with Digi’s
Management team
to maximise broadband Our Response
 Regular check-ins, awareness and
connectivity  Facilitate discussions on Digi’s
communication on employees’ well-
 Introduced ‘Go Digital’ with being and Yellow Heart initiatives performances and outlook
PENJANA SME Digitalisation Grant  Annual gender pay gap analysis  Provide timely and comprehensive
 Conducted Business Continuity  Increased focus on health and disclosures
Digitalisation programme safety of employees, in adherence  Provide adequate access to Digi’s
to Covid-19 SOPs Management Team
 Training employees as dedicated
Mental Health First Aiders
Summary of Engagement with Internal Stakeholders Groups
Community, Sustainability
Partners and Non-Governmental Media Suppliers and Business Partners
Organisations (NGO)
Partners who share the same Mass communication organisations Businesses that have direct and
aspirations to reduce inequalities covering publication, broadcast and non-direct contractual relationship
and bridge the digital divide in online mediums that delivers business value to Digi,
communities co-develop products and services for
Digi’s customers
Engagement Channels
Engagement Channels  Strategic and operational media
interviews and events Engagement Channels
 Engage and partner with government
 Formal and informal briefings  Exploratory meetings
agencies, corporates and NGOs to
 On-demand requests  Tenders and commercial agreements
address issues within communities
or partnerships
 Global and local partnerships between
Frequency of Engagement  Regular check-in discussions
Telenor Group, Digi and UNICEF
 Annual Self Assessment Questionnaire
M Q Y (SAQ)
 Site inspections and audits
M Q Y  Supplier training
Issues and Expectations  Product presentations
 Service reliability and quality
 Customer satisfaction Frequency of Engagement
 Financial performance
 Leveraging mobile technologies W M Q Y
 Emerging technologies and
and future skills learning to
future skills to empower local
empower local communities
communities
 Internet safety
 Internet safety Issues and Expectations
 Digital gap and accessibility for
 Digital divide  Partnership and co-development
underserved communities
 ESG matters (e.g. contribution to  Health and safety in supply chain
 ESG matters (e.g. contribution to
Sustainable Development Goals,  Non-compliance in supply chain
Sustainable Development Goals,
human rights and climate action)  Integrity due diligence
human rights and climate action)
 Green solution (including energy
efficient infrastructure, e-waste
management)
Our Response
Our Response  Covid-19 impacts on supply chain
 Regular media engagements
 Global partnership with UNICEF  Support the digitalisation of
to provide updates on business
on digital resilience and digital businesses
performance and strategy,
skills
products and services, and
 Initiatives to bridge the digital
address customers’ concerns
gap and inequalities through
highlighted in the media Our Response
programmes conducted in
 Training and capacity building
partnership with NGOs and
sessions for our contractors and
communities
sub-contractors to raise standards
 Supporting the nation through
on health and safety and
emergency relief and recovery
responsible business practices
efforts for Covid-19 and floods
 Industry collaboration to strengthen
enforcements in maintaining the
highest standards of safety across
our supply chain
 Integrity Hotline as a confidential
channel to report concerns and
raise questions
Our Key Risks
By adapting to market demands and keeping up with the accelerated pace of technological
innovation, Digi continues to strengthen our ability to address emerging risks and to realise new
opportunities. Our risk management framework allows us to identify, measure, monitor, and mitigate key
risks to ensure Digi operates efficiently and continues to create value for our stakeholders.
Overview of our risk management process Further details of our Risk Management Framework are available
in the Statement on Risk Management and Internal Control, pages
Digi’s risk management framework and processes are aligned 119 to 125 of this report.
with ISO 31000 International Risk Management Standards. We
adopt an integrated approach from identification, assessment, Risk Movement
and holistic management of risks. Key risks identified are
prioritised and managed within acceptable risk level. Top risk Digi regularly evaluates its operating landscape for latest
pictures and mitigation responses are reported to the Board and changes to identify emerging risks that would affect our
Audit and Risk Committee (ARC) quarterly to allow for highest business. These are the key risks identified by Digi which have
level of accountability. been subjected to regular scrutiny throughout 2021.
Key Risks & Descriptions 2021 Performance & Challenges Mitigation Actions
Market and Competition Risk Capitals
The impact of various phases of The outbreak of Covid-19 pandemic led  Intensify acquisition and base management
lockdown, prolonged economic to a surge in data consumption due to efforts to capture growth from digital and
recovery, and travel restrictions on nationwide lockdowns and the norm of internet adoption
consumer spending behaviours social distancing.
 Drive digital value proposition to grow B2B
and consumption patterns.
revenue and market shares
The operating landscape continued
to be highly competitive in 2021 across  Offer customers a broader range of services
Risk Movement in 2021
mobile and fixed connectivity, and around across in-house and partner offerings
Unchanged
opportunities from increasing digital
 Provisioning of subsidies to consumers and
adoption by consumers and businesses.
SMEs through government-led initiatives
such as Jaringan Prihatin and PENJANA SME
Digitalisation Grant
Business Continuity Risk Capitals
We are committed to providing During the pandemic, business continuity  Redundancy strategies, contingencies and
high quality and consistent network measures were initiated to ensure segregation of critical functions
services to our customers by uninterrupted operations across network, IT
 Alternate sites established for critical functions
ensuring the stability of all critical and our supply chain.
such as customer service, call centre, network
operations in retail centres, network
operations and field force to ensure continuity
and data centres, and supply chain. Digi has maintained network availability
of services
and stability despite increased internet
demand and addressed critical needs  Dynamic sourcing and supply chain
during natural disasters in a timely manner. management to ensure adequate and
Unchanged
contingency supply
Our Key Risks
Employees’ Health and Safety Risk Capitals
Keeping our people safe is Digi’s top The overall risk related to Covid-19  Actively encourage vaccination among
priority as an employer. We aspire remained high due to the emergence employees
to create a safe, sustainable, and of new virus variants. As our employees
 Active monitoring on outbreak and tracking
inclusive working environment for progressively resumed working in the office,
of employees’ health. Implemented transition
everyone. we continued to safeguard their safety
plan to resuming work in office based on
and well-being, including enforcing strict
Covid-19 situation
safety controls for vendors and visitors at
our office.  Provide access to physical, mental health and
Unchanged
wellbeing support to employees of all levels
Other health and safety risks. including
 Ensure all employees have a safe place to
safety and hazard risks at operational sites,
work
were also constantly being monitored and
addressed.  Reinforce commitment from employees to
report potential incidents and accidents
 Promote advanced mindset and culture on

health and safety for employees and business
partners
Network Experience Risk Capitals
Digi maintains our commitment Digi has delivered on our JENDELA  Invest in competitive network and modernise
to provide the most consistent commitments to provide wider coverage our infrastructure to cater to areas with
internet experience. We continue to and better quality of service to all increasing demand
prioritise investments in digitalisation customers. We continued to provide
 Continuously redesign and review data traffic
and network modernisation to improved internet experience to customers.
trend in remote areas to ensure consumers
improve customer experience and
receive consistent internet experience
support the roadmap set out in the
MyDigital initiative.

Decreased
Our Key Risks
Governance and Compliance Risk Capitals
Digi is committed to ensuring our Digi complied with the latest regulatory  Constant evaluation of Digi’s business strategy,
business operates ethically, lawfully requirements and ensured sound new technologies, products and services as
and with the integrity for our long- corporate governance practices in all our well as government policies and regulations to
term success. Non-compliance by processes. identify and manage emerging risks
Digi or business partners may result
 Dedicated resources for on-going compliance
in reputational damage, financial We have established a Governance Forum
monitoring across our business value chain
penalties, or suspension of license and a Governance, Risk and Compliance
to operate. (GRC) Committee to strengthen existing  Ensure integrated governance and holistic
governance structure and oversight. business partners and vendor management
Risk Movement in 2021 procedures
Decreased  Implement Certification Accreditation for ISO
37001 Anti-Bribery Management System
Data Protection Risk Capitals
Digi’s customers share huge Digi continued to implement adequate  Regular scrutiny and data protection impact
amount of data through our measures to protect customers’ assessment by dedicated privacy and security
network which enables them personal data in view of growing data teams
to connect, communicate, and consumption, heightened awareness
 Establish Privacy Control Framework
innovate. To remain as a trusted on data protection and interventions by
brand, we continue to be vigilant regulatory bodies.  Strengthen customers’ data protection and
and take proactive initiatives to practice transparency in the way we collect
safeguard personal data of all our Digi has embarked on a comprehensive and and use their personal data
stakeholders. structured privacy mapping programme to
catalogue data inventory and flow.This will
provide a holistic view on privacy related risks
across Digi’s value chain.
Unchanged
Cyber Security Risk Capitals
Digi constantly evolves and adopts Security defense architecture and controls  Constant evaluation of our business strategy,
new technologies to serve our have been strengthened to improve Digi’s new technologies, and processes to protect
customers better. These rapid security posture in mitigating the threat of against cyber threats
evolutions bring about many new external cyber attacks, system abuse, and
 Improve detection and threat prevention
and emerging threats, which may internal vulnerabilities.
through deployment of network security and
expose Digi to malicious cyber
defendable architecture with robust monitoring,
attacks by a range of threat actors. Risks remained high due to remote working
awareness reiteration and up-to-date security
conditions and vulnerability of systems to
training
potential data theft. Constant focus and
prioritisation of investments were critical to  Implement identity and privileged access
Decreased
ensure sustainable risk mitigation. management tool to strengthen access control
to critical systems
 Improve cyber security maturity governance to

protect Digi against cyber risks
Our Key Risks
Climate Risk Capitals
Digi is committed to foster a culture As part of our commitment to operate  Improve Digi’s sustainability framework to further
of responsible business in all our ethically and sustainably, we have been enhance commitment in raising standards on
activities. This risk relates to Digi’s increasing our understanding of climate- responsible business conduct
climate action commitment towards related risks and opportunities as well as
 Maintain stakeholder engagement regarding
achieving net zero ambition. embedding responses into our business
our material sustainability matters
strategy and operations.
 On-going climate change and environment
Non-fulfilment of Digi’s responsible business initiatives to minimise carbon footprint and
Unchanged
commitments and new regulatory mitigate climate risks
requirements on climate-related disclosures  Implement renewable energy and energy
may lead to negative brand perception, saving initiatives in network, and drive eco-
loss of investors’ confidence and financial practices in the workplace
penalties from enforcement agencies.
 Adopt recommendations of TCFD in phases
Talent and Succession Management Risk Capitals
Employees are key to ensure As we evolve our operating model and  Strengthen employer branding and expand
Digi delivers on our strategy and execute our strategy, we have focused on employee value proposition to attract high-
purpose. We continue to invest in developing diverse talent for the future and performing and diverse talent
the right talent and skills for future uplifting competencies through learning
 Provide access to learning programmes on
growth and to accelerate our digital and development interventions.
building critical skills and conduct regular
transformation.
career development reviews, to support
The proposed merger between Digi and
employees’ career growth
Risk Movement in 2021 Celcom Axiata Berhad aims to create a
company that will be a powerhouse of  Encourage structured leadership succession
Unchanged
top digital, technical, and commercial planning and continuous engagement efforts
talent, and become a leading employer in to retain talents and drive overall employee
Malaysia. satisfaction
Regulatory Risk Capitals
Digi is subjected to regulations that Digi constantly engaged with regulators,  Proactive dialogues with regulators to
govern the telecommunications key stakeholders, and industry to advocate anticipate emerging regulatory changes,
industry, ranging from technical, for a sustainable regulatory framework and address concerns and views as an industry,
to commercial and corporate for fair and transparent policies that meet and advocacy for a sustainable framework
frameworks that seek to develop the long-term needs of the industry.
 Collaborate with key stakeholders and
the sector, protect consumers,
industry players to participate in regulatory
and advance the country’s digital
consultations and industry events
ambitions.
 Explore 5G opportunities with technology
partners to bring cutting-edge digital
experiences to our consumers
Unchanged
Our Key Risks
Merger Approval Risk Capitals
The proposed merger between Digi While the merger application process  Proactive and continuous engagement with
and Celcom Axiata Berhad aims to continues, we have maintained strong regulators, relevant authorities, and stakeholders
create synergy, greater economy focus on our strategy and business-as-
 Timely communications and engagements with
of scale, stronger resilience usual execution, and prioritised resources
employees to provide updates, assurance and
to competition while driving on key strategic initiatives.
to address uncertainties
digitalisation and sustainable
growth. Prolonged approval process may increase  Proactive employee engagement and retention
anxiety that could lead to added talent initiatives to keep Digizens focused on delivering
Related risks include non- retention and recruitment risk due to the on our strategic goals and secure the workforce
completion if conditions are not uncertainties. to realise our long-term ambitions
fulfilled, and a potential prolonged
approval process by regulators.

New Risk
Critical Systems Migration Risk Capitals
Potential impact of prolonged Various transformation projects have been  Prepare comprehensive migration and crisis
service disruptions and adverse scheduled for replacement as part of Digi’s readiness plan
customer experience caused by transformation journey. We have been
 Strengthen technical competency and end-to-
possible outages from planned working closely with stakeholders and
end technical domain readiness for migration
systems migration. partners to execute these major projects.
of critical areas
 Proactive engagement with internal stakeholders
and partners to ensure commitment and crisis
New Risk
readiness
 Maintain open and constant communications
with customers, as well as internal and external
stakeholders
Our Material Matters
To ensure the relevance of our economic, environmental, social and governance risks, we undertook
a refreshed materiality assessment in FY2021 to evaluate and assess their priorities. We conducted this
year’s assessment with the guidance of our risk management framework, along with Bursa Malaysia’s
Sustainability Reporting Guide (2nd Edition) and Bursa Malaysia’s Toolkit, and have taken into consideration
the views of internal stakeholders and business environment, weighted against Digi’s strategic priorities.
The steps undertaken in our Materiality Assessment are as follows:
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Review material Stakeholder Sustainability impact Calibration of Review and approvals
matters engagement assessment stakeholder  The materiality
 Deliberation  Engaged  Internal discussions engagement and assessment was
sessions involving with internal were conducted impact assessment presented to the
cross-functional stakeholders to to revisit the  The results from the Digi Management
teams within Digi gauge perception. sustainability impact assessment Team and Board
This included impact assessment and FY2021’s of Directors for
 Digi took into
Board of Directors ratings, considering stakeholder approval upon
consideration the
and diverse industry trends engagement finalisation
internal business
employees and stakeholders’ outcomes were
environment,
representing expectations tabulated and
business strategy,
different functions presented in our
external trends  The materiality
in Digi materiality matrix
and stakeholders’ assessment
feedback  Stakeholders rated is in line with  Based on the
the sustainability Digi’s enterprise mapping in the
 Reviewed existing
matters identified risk, utilising its matrix, top material
25* sustainability
based on a 4-point parameters to matters were
matters
Likert scale guide the scoring identified
 Mapping of
 Average scores of likelihood and
sustainability
were tabulated consequence for
matters against
based on each sustainability
Digi’s strategic equal-weighted matter
pillars approach
 Sustainability
* The sustainability matters applied across all
were further consolidated
matters were
stakeholders
into 13 broad categories assessed based
for discussions in this
 Feedback on on impact to
report internal controls revenue, cost,
were deliberated brand exposure,
to understand stakeholders’
stakeholder expectations and
expectations overall existing
on Digi’s and future industry
management of trends
sustainability and
reporting
Digi Materiality Matrix (FY2021)

High
R2
Increasing importance to Digi’s stakeholders
G1
R1
G3
G2
M3 M1
R4
G4 R5 R3
R6
M2
Low
Low High
Increasing importance to Digi’s business
Remain Increased
Legend G Growth M Modernisation R Responsible Business
Unchanged Importance
Material Sustainability matters Description
High Importance
Upholding strong governance to strengthen privacy controls and to
R2 Data Privacy and Security
protect stakeholders’ data and information against cyber attacks.
Business Ethics and Corporate Maintaining an effective governance framework and internal controls to
R1
Governance uphold corporate values and ethical standards across our value chain.
Employing customer-centric solutions for a differentiated user
G1 Customer Satisfaction
experience in our highly competitive markets.
Material Sustainability matters Description

Conducive environment that improves health and safety conditions for
M1 Occupational Health and Safety
employees and contracted workers along the supply chain.
Maintaining robust controls to meet the existing and emerging

G3 Regulatory Compliance
legislation and regulation.
Medium Importance
G2 Service Reliability and Quality Providing quality and consistent network experience to customers.
Protect the environment via transitioning towards a low carbon

Climate Change and
M2 economy and employing effective waste management within the
Environmental Management
business operations.
Enable greater access whilst nurturing safe internet skills to enhance

R3 Digital Resilience and Inclusion
digital inclusion and resilience among stakeholders.
Raising standards in our supply chain to positively influence social

R6 Supply Chain Management
equality and environmental protection.
Fostering an environment that attracts and retains high-performing

M3 Talent and Culture talent while encouraging for continual development of digital
competencies.
Respecting Human Rights and Upholding human rights by mitigating risk of potential abuse across our
R4
Freedom of Expression value chain and access to the right information.
Crisis Management and Well-prepared for crisis with a rapid and adequate response plan, whilst
R5
Response maintaining clear lines of reporting.
Business Development and Robust strategies to acquire and expand businesses and value creation
G4
Expansion to drive growth and profitability.
Based on the outcomes of the FY2021 materiality matrix, the top four material matters have remained as High Importance,
namely: ‘R2 Data Privacy and Security’, ‘G1 Customer Satisfaction’, ‘R1 Business Ethics and Corporate Governance’, and
‘G3 Regulatory Compliance’.
The importance of the following matters have increased significantly to both stakeholders and business views, as
compared to last year.
 Material matter ‘M1 Occupational Health and Safety’ has increased in priority and included in the top five, replacing
‘G2 Service Reliability and Quality’ in FY2020. This is mainly due to the ongoing Covid-19 pandemic and increasing
expectations for Digi to place greater emphasis on safeguarding health and safety
 Material matter ‘R6 Supply Chain Management’ has also increased to High Importance as there is more concern on
suppliers addressing environmental and human rights risks within the supply chain
 Material matters ‘M2 Climate Change and Environmental Management’ and ‘R4 Respecting Human Rights and
Freedom of Expression’ have also increased in importance compared to FY2020. There is intensifying pressure and
urgency to address issues on climate change given Malaysia’s national climate change aspirations towards net zero,
and for businesses to enhance their human rights practices and its management throughout the value chain
Digi monitors all material matters and continuously evaluates its scopes and boundaries to ensure its relevance to our
strategic priorities and changing business environment.
Our Emerging Opportunities
In addition to exciting growth

Legend
The new normal has opportunities in core connectivity
areas, Digi also sees compelling
underscored the integral
opportunities to grow new revenue Financial Capital
role of connectivity in our streams beyond connectivity. We
daily lives. With the rise of look ahead to opportunities in
security, fibre and B2B solutions, Manufactured Capital
remote working and online
expanding our internal capabilities
learning, demand for data and partnerships to drive new
connectivity continues to services enabled by 5G, IoT and AI, Intellectual Capital
while continuing our modernisation
increase, while digitalisation
and digitalisation journey. As part
is increasing among SMEs of Digi’s Responsible Business Natural Capital
and large enterprises. strategy, we see opportunities to
drive standards on key issues for our
industry, such as climate change, Human Capital
safeguarding data privacy and
security, diversity and inclusion,
human rights, sustainable supply Social and Relationship
chain management, ethics and Capital
compliance, health and safety, and
building future skills and inclusive
Growth
businesses to empower societies.
Digi will continue to capitalise on

Modernisation
these opportunities and provide
innovative offerings to consumers
and business customers.
Responsible Business
Increasing customer demand for converged connectivity solutions
 Meeting end-to-end home and on-the-

Capitals Digi’s Action Plan
move connectivity needs, coupled with
personalised and converged offerings  Provide personalised and best-value offerings
across fixed and mobile connectivity to meet
customer needs
Strategy Pillars
 Selectively expand fibre-to-the-home and offices
to ensure reliable connectivity for consumers
and businesses
 Grow account revenue by layering add-on
services
Accelerated digitalisation and automation
 Digital-first journeys; customers expect

Capitals Digi’s Action Plan
to interact and transact digitally with
companies  Increase self-service capabilities for customers,
and expand reach of services via direct
 Digitalisation of SMEs and large connection with digital partners (e-commerce,
Strategy Pillars
enterprises (LEs) through development e-wallets)
and provision of digital solutions  Continue to support Malaysian SMEs and LEs
beyond Digi’s core connectivity with digitalisation and core connectivity options
business through affordable bundles
 Continue to expand Touch Free Operations for
digitalisation and automation in IT and Network
processes
Growth opportunities beyond connectivity
 New innovative digital services outside

core connectivity areas (especially for Capitals Digi’s Action Plan
LEs)  Expand partnerships with LEs in selected
verticals, technology players and system
integrators to trial innovative solutions beyond
Strategy Pillars
connectivity and expand Digi’s B2B solutions
portfolio
 Further expand internal capabilities and
partnerships to drive new business growth
beyond connectivity
Combating climate change and its impacts
 Digi’s commitment to carbon reduction

strategies disclosures in accordance Capitals Digi’s Action Plan
to global standards, and collaboration  Explore green energy alternatives and further
with the industry and partners to leverage data-driven network planning
accelerate climate action through the Strategy Pillars  Continue network modernisation and energy
efficiency initiatives
use of digital technology
 Set up high quality climate data reporting
platform
 Strengthen climate governance by building
internal capabilities and capacity
 Enhance business resilience over climate risks by
adopting recommendations of TCFD in phases
 Expand partnerships and collaborative efforts on
climate best practices
5G to open up new opportunities
 Drive revenue upside from enterprises

and customers through innovative 5G Capitals Digi’s Action Plan
offerings  Offer new state-of-the-art technology platforms to
enable 5G solutions and innovation for customers
 Enhance existing connectivity offerings with 5G to
Strategy Pillars improve customer experience and drive revenue
growth
 Continue to explore and build 5G, IoT and AI use
cases with LEs and technology partners
Strengthening diversity and inclusion (D&I)
 Ensure fair and equal access to internet

for all Malaysians while increasing Capitals Digi’s Action Plan
digital inclusivity  Drive digital inclusion and resilience through the
Future Skills For All and Safe Internet programmes
 Champion diversity and inclusion at scale with partners
practices in the workplace, community, Strategy Pillars  Continue strengthening gender diversity in
and across the Industry leadership while broadening the inclusion
agenda, with a focus on pandemic-related
support initiatives
 Strengthen D&I positioning and advocacy in
corporate Malaysia, through partnerships with
prestigious associations
 Leveraging D&I to attract the best talents
Raising supply chain management standards
Capacity building initiatives to influence

and strengthen Digi’s suppliers on: Capitals Digi’s Action Plan
 Pre-emptively close gaps on potential human
 Human rights
rights risk across Digi’s supply chain based on
 Green sourcing findings from Human Rights Due Diligence in 2021
Strategy Pillars
 Inculcate responsible sourcing practices
 Health, Safety & Security (HS&S)
 Safety Advance Project - Advancing HS&S culture
for employees and suppliers
Safeguarding cyber security for customers and within our network
 Consumers are finding it more

convenient to perform online Capitals Digi’s Action Plan
transactions via wired or wireless  Protective measures prescribed to uphold security
connections. Cyber security continues standards (e.g. confidentiality, integrity, and
to be a top priority for consumers, availability)
businesses and organisations, to Strategy Pillars  External vulnerability assessments and
protect and defend against advancing penetration testing
threats  Continuous monitoring on security configuration
settings for each layer
 Advocate cyber security awareness across the
supply chain, and to offer industry-first cloud-
based cyber security solutions to SMEs together
with partners
 Offer new cyber security products to customers
Our Strategy
our
s
ment cu Inn
g sto o
se m va
d er tin
an ex
s
g rie
tie
pe
on nc
ni
strat-
tu
ou e an
r
po
rc dd
t op
ore
to im talisation
ed by new marke
igi
prove
Fuel
egy Em
bed
ded in our way of work
Our long-term business strategy is anchored on our purpose to

empower societies and connect customers to what matters most.
We have enhanced our strategic framework, built on three key pillars
of Growth, Modernisation, and Responsible Business, and set out
a three-year (2021-2023) roadmap to drive our ambition to be the
trusted digital connectivity partner to all our stakeholders.
growth
growth
Sustainably grow consumer and lead organic
B2B revenue growth
Low double-digit
growth in Postpaid and Fixed subscribers (vs FY2020)
Low to mid double-digit

growth in B2B revenue (vs FY2020)
#1 Most consistent network

(maintain 2020 position)
modern-
2023 Ambition
modernisation
isation
Best customer experience, built on channel digitalisation
and automated operations
100% Touch-free
operations on Digi’s network (2020: 74%)
respon-
sible
RESPONSIBLE BUSINESS
Leader on sustainable business standards and ESG practices in
Malaysia
300,000 Users
engaged via Yellow Heart programmes on digital resilience and future skills
#1 Malaysian telco
for ESG standards and performance (maintain 2020 position)
46 Digi.Com Berhad At a Glance Message to Shareholders Strategies to Create Value How We Create Value
Our Strategy
our
growth modernisation
1. ~253,000 net additions in Postpaid 1. Touch Free Operations on Digi Network

2021 subscribers through attractive high speed (2021: 82% vs 2020:74%) through increased
Progress and offers on the #1 Network in Malaysia, Family adoption of AI/ML, predictive planning and
Achievements Lines and Home internet bundles maintenance
2. FY2021 B2B subscribers up 9.8% YoY from solid 2. Direct connections to e-wallets and digital
base management partners enabling convenient transactions for
3. FY2021 B2B revenue growth of 4.8% YoY purchases, reloads and bill payments
(vs FY2020) driven by; 3. Accelerated sales digitalisation during
• SME digitalisation bundles lockdowns – dealers and touchpoints pivoted
to online sales on social media, podcasts
• Acceleration of non-core connectivity
and streaming content
strat
• Securing higher solution deals from large
4. Modernised Digi’s billing platform and
corporations
enhanced platform capabilities for future
• Trialed advance 5G use cases with large business functions
enterprises and partners
5. Continued digitalisation of back-office to
4. Sustained leading positions as fastest and drive operational efficiencies
most consistent network in 2021
How do we 1. Continue to grow Postpaid, B2B and Fibre 1. Modernise core and channels to enable
subscribers seamless digital journeys
get there
2. Scale SME digitalisation and core 2. Continue Touch Free Operations across
Priorities for connectivity offerings technology
2022 3. Expand large enterprise managed services 3. Continue to grow digital transactions and
within core verticals enable self-service features to improve
4. Co-develop innovative solutions with partners customers’ convenience and experience
and enter into new verticals 4. Ensure 5G readiness across all systems and
5. Maintain leading network through data- platforms
driven investments to drive growth and meet
customers’ expectations
Governance Audited financial statements Other information Integrated Annual Report 2021 47
Our Strategy
responsible business
1. Empowering societies and building digital resilience through Yellow Heart

• Donation to support Covid-19 relief efforts - RM 1million disbursed
through MERCY Malaysia
• Free 1GB daily data usage for productivity during lockdown
• Continued support on government initiatives
• Safe Internet – 113,000 engagements
• Future Skills – ~35,000 enrolments, +300 schools reached
2. Leading ESG standards and performance across various fields
• Improved MSCI ESG rating from ‘A’ to ‘AA’
• Improved ESG performance
tegy
• Adopted best climate framework and standards
• Climate Data Integrity exercise to improve Digi’s carbon and energy
reporting
• Improved carbon intensity per data usage by 13.7%
3. Be the employer of choice
• Strengthened women leadership pipeline in Digi and global
recognition on women empowerment
• Strengthened leadership positioning in corporate Malaysia through
memberships with prestigious associations
• Safe and inclusive work environment through continuous awareness,
pandemic-related initiatives and increased communication and
celebration of related International UN days
1. Strengthen Responsible Business leadership via Yellow Heart and

collaboration with partners
2. Lead on ESG performances and deliver on our commitments to all
stakeholders
3. Attract the best talents and continue to be a corporate leader on
diversity and inclusion in the workplace
100%
Touch-free operations on
Digi’s network
(2020: 74%)
Innovating on our core to improve customer experience
Our customers are the lifeblood of our business.

We aim to consistently provide the best experiences
for our customers, built on channel digitalisation and
automated operations.
How We Create Value
Digi’s financial capital is carefully managed and allocated to run day-to-day business operations efficiently and to fund attractive
expansion plans. This capital is generated from business activities, investments as well as from external funding from financial
institutions. Digi aims to continue to create value for all stakeholders with prudent financial capital management.
Financial Capital
(Please refer to pages 38-40 on detailed

Mapping to Our Strategy and Material Matters G4 R5
description of our Material Matters)
Market capitalisation at Credit ratings of Operating cash flow of
RM33,899 million AAA/Stable/P1 RM2,606 million

Key Inputs
(as of 31 December 2021) on RAM rating
Total assets of Net debt to earnings before Total Revenue
RM7,840 million interests, taxes, depreciation RM6,336 million

and amortisation (EBITDA) at
1.6x
 Grew quality of the subscriber base by targeting  Improved credit management and collection
Key Activities
Malaysian Prepaid, Postpaid and B2B segments, processes

increased penetration into the underprivileged  Prioritised investment with prudent CAPEX
customer segment and reduced focus on low management to sustain network leadership and
quality segments drive digital capabilities
 Disciplined OPEX management through ongoing
initiatves to drive operational efficiencies
 Delivered revenue growth from core segments and  Enhancement in digital payments and affordable
devices growth product offerings to drive cost efficiencies
Outcomes
 Grew quality of subscriber base  Prioritised operational efficiency and focused on

 Leveraged rising internet and digital adoption driving growth in core segments
 Disciplined cost management supporting growth  Solid track record of near 100% dividend payout
and modernisation ratio supported by a robust balance sheet and a
low gearing ratio
Challenges in securing the capital Outlook - Our continuous focus:
 Closure of international borders and prolonged  Continue optimising financial capital management
movement control orders (MCOs) resulted in lower in an uncertain macro environment balancing
roaming revenue and significant change in data efficiency and growth
usage and consumer patterns  Ensure that we remain vigilant and ahead of
 Impact of Covid-19 on economy, business sentiment emerging business trends and accelerated internet
and employment led to business shutdowns and adoption and digitalisation
lower consumer spending  Widen penetration into different customer segments
 Forgoing revenue to support national relief efforts and seek new growth opportunities
such as provisioning of free data, zero-rated calls,  Maintain network quality to meet customers’ needs
and digitalisation subsidies and expectations
 Highly competitive industry with many players  Take a leading role in 5G adoption
offering low-entry products and unlimited data
plans, creating margin pressure
 Global supply and logistics tightness and increased
geopolitical tensions creating inflation pressure and
supply chain disruptions
Our detailed performance and outcomes created are further deliberated on the following pages.
How We Create Value
Delivered revenue growth from core segments and devices growth
 Strategic shift to reduce reliance on traditional prepaid voice has significantly improved the quality of our subscriber
base and lifted revenue
Sustainable Revenue Mix (%) Total Revenue (RM’mil)
+3%
6,336
43% 41% 40% 39% 6,153
FY2020 FY2021
12% 4% 16% 5%
Prepaid Postpaid Digital Devices and others FY2020 FY2021
 Resilient Postpaid with targeted acquisition and base  Strong subscriber growth through attractive fibre
management approach broadband and family bundles offering
 Negative Prepaid trend reversed, supported by growth in  Devices and other revenue up 37.2% YoY reflecting high
Malaysian segment demand for PhoneFreedom 365 programme
Grew quality of subscriber base
 Focused on building loyalty amongst ARPU Development (RM) Expanded active Malaysian base
Malaysian base through contracting
and personalised renewal promotions FY2020 FY2021 +10.5% Increased year-
67
63 Malaysian on-year from
 Curated multi-tiered internet passes for
active continuous
various segments such as youth, senior
43 subscribers acquisition efforts
citizens and mass consumers 41
33
 Leveraged high-speed internet 31
proposition to target new and Postpaid subscribers
underpenetrated segments
Increased year-
 Reduced reliance on low quality high on-year for five
churn segments Postpaid Prepaid Blended ~253k quarters in a
 Postpaid and Malaysian Prepaid Postpaid row to total 3.3
consumers reacted positively to Digi’s subscriber net million Postpaid
product offerings which focused on Total Number of Subscribers additions subscribers
high-speed, quality network, attractive
Prepaid Postpaid
smart bundles and entry-level plans
Fibre Broadband subscribers
 Digi’s Fibre Broadband grew growth via upselling
consistently via upselling activities 32%
to our existing mobile customers by
10.3 6X Total Fibre
Broadband
leveraging rising internet adoption stronger
million subscribers:
 The decline in the prepaid base Fibre
subscribers ~13,000
was mainly due to the exit from the Broadband
(FY2020: ~2,000)
lower-end migrant segments with high 68% subscribers
churn rates
How We Create Value
Leveraged rising internet and digital adoption
 Completion of 3G network shutdown in January 2022 in line with JENDELA initiative enabled 3G spectrum to be re-
Financial Capital
farmed to improve the network performance of 4G, contributing to more 4G subscribers and higher smartphone
penetration rate
• Voice over LTE (VoLTE) traffic increased from 24% in FY2020 to 56% in FY2021
Internet users’ expansion
4G subscribers Smartphone penetration rate
FY2020 85% FY2020 87%

+2% +5%
FY2021 87% FY2021 92%
Disciplined cost management to support growth and modernisation initiatives
Total Cost Prudent CAPEX allocation

 Optimised cost allocation to prioritise modernisation  Prioritised investments to sustain network leadership
initiatives in improving overall customer experiences and drive digital capabilities
 Overall cost increase mainly driven by higher handset  Disciplined capital allocation to support JENDELA
sales reflecting strong growth of Postpaid segment
Sustained Total CAPEX-
+5% to-Total Revenue Ratio
+8%  Cost of goods and
services (COGS) grew
+12.9%
773 815 Support growing network
3,327
14% YoY mainly due to
3,073 coverage and digital
growth in device and
enhancement
1,573 digital businesses
1,534 720 803 (FY2020: 12.6%)
 Operating expenditures
(OPEX) to service CAPEX allocation for
1,754
1,539 revenue ratio for 53 12 network modernisation
the full year remained
healthy at 29.5%
FY2020 FY2021 > 65%
FY2020 FY2021
Optimal organic CAPEX Part of our modernisation
 Modest OPEX growth of
COGS (RM’mil) (RM’mil) journey to drive efficient
2.5% mainly driven by
OPEX (RM’mil) Asset retirement rollouts of 4G, in line with
network expansion
obligation (RM’mil) national digitalisation
agenda
Enhancement in digital payments and affordable product offerings to drive cost efficiencies
 Continued digitalisation to increase touch free ECL ratio Levers for improving
digital payment methods drove solid collections ECL ratio:
during the year 3.5
 Combination of seamless customer journey 3.2%
and affordable, flexible products proved to be

3.0 2.8%
an effective strategy in customer retention and Increasing digital
curtailing delinquencies payment solutions
 Digi recorded lower expected credit loss (ECL) 2.5
of RM55 million (RM82 million in FY2020) flowing 2.2%
through to a lower ECL ratio of 2.2%, alongside
stronger free cash flow supported by robust 2.0 Affordable and
collections FY2019 FY2020 FY2021 flexible products
How We Create Value
Prioritised operational efficiency and focused growth

Solid track records of near 100% dividend payout ratio
initiatives in core segments
 Resilient EBITDA margins driven by modernised operations  Continued to exceed the company’s dividend policy
 Profit after tax (PAT) of RM1,162 million slightly of distributing a minimum 80% of net profits
down mainly due to flow through from EBITDA,  Sustainable return with high dividend payout reflecting
higher depreciation charges for 3G network our commitment to our shareholders, amidst the
shutdown and increased finance costs (FY2020:19.8%) challenging environment
 Maintained profitability margins in a competitive market

excluding the effect from higher device sales 14.9 14.9
Earnings per Dividend per
Resilient EBITDA Resilient PAT share (sen) share (sen)
50.0% 47.5% (FY2020: 15.7) (FY2020: 15.6)
3,080 3,009 19.8% 18.3%

RM1,158 Near
1,221 1,162
million 100%
Approved Dividend payout
by Board Dividend
FY2020 FY2021 FY2020 FY2021 (FY2020: RM1,213 million) payout ratio
EBITDA Margin (%) PAT Margin (%)
EBITDA (RM’mil) PAT (RM’mil)
Maintained a robust balance sheet and a low gearing ratio
 Total Assets of RM7.84 billion reflecting our solid financial capabilities and flexibility to fund future growth opportunities
 Healthy return on total asset at 14.8%
 Prudent management of gearing and capital allocation
Total Assets Total Borrowing
18% 6%
Total Assets Total

RM7.84 44%
Borrowings
50%
billion RM4.96
-4.2% YoY billion
82%
Non-current Assets Current Assets Islamic Lease Liabilities Conventional
4%
Gearing and net debt level
1.6X
Net debt to EBITDA
Conventional debt over total
assets ratio below 33% threshold
(FY2020: 1.7x) set by Securities Commission
Malaysia (FY2020: 7%)
How We Create Value
Digi’s manufactured capital refers to the network infrastructure and assets critical to running our operations, including
telecommunication towers, fibre, data centres and retail touchpoints across Malaysia. These form an integral source of
competitive advantage for us to deliver our services reliably to customers and represent our deployment of financial capital as
manufactured Capital
we diversify and invest in prioritised areas to meet customers’ needs.

Mapping to Our Strategy and Material Matters G1 G2
Investment in wider 4G LTE 4G LTE coverage

10,173KM
and LTE-A coverage and fibre 93.1% (FY2020: 91.6%)
Key Inputs
Fibre network (FY2020: 9,981KM)

network
11,000+ 4G LTE-A coverage Retail footprint nationwide
Network sites (FY2020: 10,000+) 75.9% (FY2020: 74.8%) with Digi Store and
Digi Store Express outlets
 Delivered reliable connectivity as a trusted service  Improved customer experience across digital and
Key Activities
provider to 10.3 million customers physical channels
 Met 100% JENDELA targets to drive greater digital  Provided the best customer experience through
society digital and in-person interactions
 Supported the digitalisation of SMEs and large

enterprises through core connectivity and beyond
connectivity offerings
 Sustained position as Malaysia’s fastest and most  Helped businesses stay afloat through digital
consistent network solutions leveraging PENJANA1, and trialed
Outcomes
advanced use cases with large enterprises to drive

 Delivered a robust network coverage to help
digital transformation
customers stay connected to what matters most
during challenging times  Continued to provide safe and accessible services,
and customer-first experiences across all our
 Achieved 100% of JENDELA Phase 1 targets
touchpoints
1
National Economic Recovery Plan (PENJANA)
 Prolonged MCOs required Digi to continuously  Make data-driven investments to enhance the
ensure we maintained the quality of our network for quality and consistency of our network
all customers  Accelerate national digitalisation agenda through
 Commitment towards delivering JENDELA targets JENDELA
 Strict adherence to safety guidelines and business  Support the digitalisation of SMEs and large
continuity plans across our operations to safeguard enterprises through core connectivity and beyond
our customers and employees connectivity offerings
 Improve customer experience and satisfaction
across online and offline channels
How We Create Value
Delivered robust network coverage to help customers stay connected
As the country faced prolonged MCOs in 2021, Digi focused on maintaining the reliability and quality of our network
services to ensure customers stay connected.
In 2021, we expanded our 4G network coverage in rural and remote areas and improved in-door coverage nationwide.
Our 4G LTE and LTE-A now covers 93.1% and 75.9% of populated areas respectively. We have also expanded our
fibre network footprint to over 10,173km to increase availability of fibre broadband connectivity to households and
businesses.
The successful 3G network shutdown, in line with Malaysia’s JENDELA initiative has enabled 3G spectrum to be
repurposed to strengthen Digi’s 4G network performance, allowing for better quality of internet experience.
Robust network coverage Maintained a resilient network and

sustained network leadership on
Fibre LTE (%) LTE-A (%)
quality and consistency
 Data-driven investments in the network

to improve capacity in areas with
growing customer demand
 3G spectrum re-farming to 4G
10,173 KM 93% 76% and robust network expansion for
(FY2020: 9,981 KM) (FY2020: 92%) (FY2020: 75%) enhanced speeds and quality
(FY2019: 9,563 KM) (FY2019: 91%) (FY2019: 72%)
 Sustained #1 position throughout
2021 on consistency, download
Data consumption growth
speed, video experience and group
Average monthly data usage Data consumption growth video calling despite an increase in
data consumption and high-surge
in data traffic throughout prolonged
lockdowns in 20211
1
As rated by independent third-party
21gb/user 22% agencies
(FY2020: 17GB) (FY2020: 42%)
(FY2019: 12GB) (FY2021: 36%)
Accelerated the national digitalisation agenda through JENDELA*
Digi continuously improves the quality of our

Digi’s achievements under JENDELA
network and capabilities through building of new
(As of Q4 2021 under JENDELA Phase 1)
sites, upgrading and modernising existing sites and
boosting outdoor and indoor coverage. Our efforts are
fully aligned to JENDELA. New Sites Upgrades
Digi continues to work closely with the Malaysian

Communications and Multimedia Commission
(MCMC) on initiatives to provide high quality and
affordable digital connectivity in rural and remote
areas. 119 (98% met) 2,191 (100% met)
(FY2020: 269 (99% met)) (FY2020: 2,979 (100% met))
* JENDELA was formulated collectively by the telco industry and the government to improve network coverage and enhance the quality
of broadband experience
How We Create Value
Supported the digitalisation of SMEs and large enterprises through connectivity and innovative offerings
manufactured Capital
 Delivered purpose-built solutions and customised  Scaled beyond connectivity offerings with in-house
connectivity offerings to enable digital transformation digital solutions
for businesses
• iFleet - Intelligent GPS Tracking
& Fleet Management System
• Omni™ - Virtual Phone
System
• altHR - A digital workforce
management system
Digi Business is a • D’SMS - a direct SMS
certified member marketing solution
of MEF, a global • UltraPOS All-in-1 Payment
federation of Terminal
network, cloud,
and technology
 Piloted advanced use cases
providers driving
Westports and Digi power smart port transformation
enterprise digital
with Malaysia’s first successful 5G trial conducted in
transformation
a live port operations environment
Digi powers Petronas
offshore oil rigs with
4G LTE connectivity
Provided the best customer experience through digital and in-person interactions
MyDigi App: Enables self-serve transactions, personalised rewards, support and more
Enhanced web/app
4.7mil experience, making it easier
for customers to:
Monthly Active
Users Pay bills
+7.3 YoY Reload

Get add-ons
Sustaining customer obsessed culture across customer

touchpoints
Customer Satisfaction (CSAT) 100%
In 2021, we sustained All retail frontliners are fully
good customer vaccinated
satisfaction (CSAT) 90% 89% 91%
scores for both retail We introduced new
and contact centre ways to engage
despite a challenging 62% 62% 58% customers, providing
year with prolonged them convenience while
movement restrictions FY2019 ensuring their safety.
FY2020 FY2021
and service disruptions. • Appointments
Retail Contact Centre
• Drive-thru
* Customer Satisfaction data FY2021 has been independently
• Door-to-door delivery
assured by KPMG PLT
How We Create Value
Digi’s intellectual capital refers to our unique brand, processes and technology that differentiate us in the market. Digi’s purpose
of connecting customers to what matters most is anchored on the core foundation of operating responsibly and guided by our
values and way of work. Our long-standing culture of innovation, and operating with the highest standards of security, corporate
governance, and sustainability are key success factors in Digi’s ability to deliver long-term value to our stakeholders and to play
intellectual Capital
a leading role in setting good environmental, social and governance (ESG) practices among corporate Malaysia.

Mapping to Our Strategy and Material Matters R2 G4
Trusted brand, synonymous Innovative ways of work and Robust policies and manuals
with high quality of service and modernised processes to governing our business
Key Inputs
responsible business practices support growth ambitions
Innovative products and Enhanced data protection

solutions across consumer and framework
B2B segments
 Building Digi as a trusted brand and taking leading  Created digital-first customer journeys and improved
Key Activities
positions on ESG practices self-serve capabilities through collaboration with our

partners
 Launched innovative best-value offerings to
differentiate ourselves in the consumer and B2B  Modernised our processes and way of work to drive
market growth and productivity
 Educated employees, customers, and partners on the

importance of safeguarding data privacy and security
 Recognised as a strong brand, and a leading  Safeguarded the integrity of our network through
company in Malaysia on ESG standards and strengthened data protection and security initiatives
Outcomes
practices
 Elevated the awareness on data protection and
 Launched unique and first-in-the-market cyber security through trainings and engagements
propositions across consumer and B2B segments with employees, customers and partners
 Increased digital customer interactions and

advanced self-serve capabilities, making our
services more accessible to customers
 Competition within the telecommunications industry  Continue to be a brand that customers trust, and
continues to be high. Digi will need to leverage therefore will prefer. We believe that customers
on its unique brand to cater to different customer will choose brands that operate with the highest
segments in a relevant and meaningful way standards and conform to the same values that
 Prolonged lockdowns have resulted in a change in they hold
customer behaviours and accelerated the need for  Continue to work towards becoming a Malaysian
reliable, safe, and digital-first products and services leader on ESG performance and standards, and
 Businesses must now adapt to the ‘new normal’ of to raise awareness on areas such as cyber security
employees working remotely, following movement and data protection among employees, customers
restrictions due to Covid-19 and partners
 Cyber security and data protection risks have
become a top concern for companies as they
accelerate their digital transformation
How We Create Value
Continued focus to develop Digi as a trusted brand
In 2021, Digi was recognised as Malaysia’s strongest brand, and among the Top 10 Brand Strength Index (BSI)
Most Valuable Brands in Malaysia as ranked by Brand Finance. This is a testament score of 87.3 out of 100
of our unique brand with a long-standing record of upholding the highest level of and a corresponding
responsible business practices and quality of service. AAA brand strength rating
Digi aims to continue developing our brand, as a trusted partner for all stakeholders through improved disclosures and
high-quality reporting for sustainability data to create higher appreciation towards our sustainability performances.
Digi continues to be recognised as a leader in ESG performance and standards, as we work towards delivering on our
commitments to all stakeholders.
ESG Ratings and Highlights as at 31 December 2021
Bursa Malaysia Index ESG Risk Rating Voluntary environmental MSCI ESG Rating (2021)
Member of ESG indices 18th percentile, one of the disclosure Improved rating from A
with score of 3.8 highest for the region Carbon reporting since 2009 to AA
via Telenor Group
Bloomberg Gender Investor Relations Magazine Corporate membership to drive UN Women Malaysia WEPs
Equality Index (GEI) 2021 SEA Awards leadership in gender diversity Awards 2021
Recognition in gender Certificate of Excellence for Best Member of UN Women 2nd Runner Up in the
reporting and advancing ESG Materiality Assessment in Empowerment Policies and Gender-inclusive
women’s equality Integrated Annual Report 2020 Malaysia’s 30% Club Workplace Category
Launched innovative best-value offerings to differentiate ourselves in the consumer and B2B market
 Consumers: Launched first-in-the-market offerings

• Truly high-speed Prepaid NEXT internet proposition
• Lowest-entry for device financing together with
refreshed Digi Postpaid plans
• Offering “Sahur” high-speed data passes for customers
during Ramadan
• RDY Gaming Prepaid Plans - Optimised gaming latency
and 5% cashback on game purchases
 Businesses: Strategic partnerships to accelerate SME digitalisation
Driving SME digitalisation across different verticals
Fintech E-commerce
Security Enterprise Resource

Planning (ERP) systems
How We Create Value
Created digital-first customer journeys and improving self-serve capabilities through collaboration with our partners
 Established direct connections with major e-wallets and retailers via DigiPay API making it more convenient and
accessible for Digi customers to buy top-ups and pay their bills
Reload
seamlessly
from your
favourite
e-wallets
Pay Digi bills more conveniently
 Launched digital campaigns with e-wallets and banks to provide customers with best-value offerings
 Launched Digi Official Store on e-commerce platforms and rolled out new kiosks to make our products and
services more accessible to customers
Making our Rolled out

products more over 100+ new
accessible to digital kiosks
customers on with enhanced
their favourite capabilities to
e-commerce provide more
platforms convenience
to customers
 Extended our Digi Store Online capabilities to dealers and frontliners, to reimagine the way we interact with
customers
• Extended Digi Store Online capabilities

to support open channel dealers to
sell online
• Provided our retail frontliners with new
tools and training to better engage
with customers online
How We Create Value
Modernised our processes and way of work to drive growth and productivity
 Adopted automation and AI/ML to improve processes and customer experience

• Continuous use of AI/ML to improve network NPS prediction and diagnosis, site degradation predictions
and real-time monitoring of key applications to enable proactive customer experience management
• Over 300+ network use cases automated to improve productivity
• Automated ticket handling on MyDigi for faster complaint resolutions
 Innovative ways of work
• Digi introduced a cycle way of work, empowering teams to plan and adopt best ways to engage with
customers and faster time to market
• A cross-functional team came together in 2020 to uncover insights with data analytics that would
improve customer experience. In 2021, this evolved into a data-analytics forum, reimagining the way we
execute nationwide network rollout plans based on data of customer pain-points and insights
Safeguarded data privacy and security, and raised awareness for employees, customers, and partners
Company-wide data mapping exercise

• Assessed privacy compliance of systems processing personal and non-personal data in Digi
• Established privacy control framework to monitor data management across data lifecycle and systems
Improved privacy practices

• Enhanced standard contractual clauses for data protection
• Enabled self-serve option on MyDigi app and Digi’s website for customer to opt-out from marketing
communications and promotional materials
• Established business partner privacy management process to govern end-to-end privacy compliance
Strengthened governance
• Updated Privacy Notice, improving on categorisation of data collected for easier customer
comprehension
• Revised governing documents for Privacy and Incident Management
• Enhanced cyber security maturity governance
Privacy and cyber security as a Responsible Business culture

• Launched trainings on the importance of privacy, information management, and data protection as
part of new employees’ onboarding and awareness for frontlines
• Executed mandatory quarterly privacy and cyber security training for all employees
• Conducted training on topics such as privacy awareness and business partner privacy management
• Produced bite-size materials to raise awareness on privacy and information management
100%
Completion of privacy and cyber
200
New employees trained on
100
University and school students
security e-learning modules privacy and data protection trained on career options on
online privacy
How We Create Value
Safeguarded data privacy and security, and raised awareness for employees, customers, and partners (Continued)
Enhanced Digi’s defensible network architecture Company-wide data mapping exercise
 Improved detection and threat prevention  Established internal governance controls to protect
customers’ data
 Mandatory security trainings (Four modules)
 Executed in three phases, with 84 systems in 12 months
 Enhanced Cyber Security Maturity Governance
 Documented and recorded all customers, employees,
 Accredited with Business Continuity Management
and 3rd party personal data and asset listing
System (BCMS) ISO 22301:2019 by the British
Standards Institution (BSI)  Completed privacy risk assessment and remediation
roadmap
Raising awareness on cyber security for SMEs
 Launched webinars with Cisco Systems Malaysia to promote awareness on cyber security and to help SMEs defend
against cyber attacks
How We Create Value
Digi believes in creating a productive, diverse and sustainable workforce to support our growth, meet the demands of digital
advancements and be ahead of the future of work. Our employer brand promise “Freedom to Inspire the Next” aspires to
continue enabling our employees to accomplish their best, grow alongside the organisation and deliver value to our customers.
human Capital
It is pertinent for Digi to nurture an enabled and engaged workforce - embracing the power of different experiences and
investing in critical competencies, while giving utmost importance to our employees’ health, safety and overall well-being. Digi’s
human capital plays a key role in enabling and supporting the organisation to deliver on our commitment of connecting
customers to what matters most.

Mapping to Our Strategy and Material Matters M1 M3
~1,400 Diverse and inclusive Engagement and prioritisation

Key Inputs
workforce of employees’ physical and

employees in Digi
mental well-being
Experienced Management team Equal remuneration Value-driven corporate culture

and strong Board composition across gender
 Conducted various training programmes to upskill  Conducted the annual gender pay gap analysis
Key Activities
and reskill our employees, focusing on critical

 Trained 27 employees who graduated as the first
competencies
batch of mental health first aiders
 Conducted an organisation-wide Pulse Survey
 Refreshed the employer brand promise
 Centralised online learning platform through
 Conducted employees’ annual review process
Telenor Academy
 Maintained a structured succession pipeline
 Continuous upskilling of talent to drive growth  UN Women Malaysia WEPs Awards 2021:
Outcomes
2nd runner-up for “Gender-Inclusive Workplace”

 Safe, inclusive and engaged organisation
category
 Bloomberg Gender Equality Index (GEI) 2021 and
 Signatory of the UN Women’s Empowerment
2022: Included for the second consecutive year
Principles (WEPs)
 New ways of work have required us to relook  Adjust our culture and way of work to suit a hybrid
our people engagement and enablement work environment while providing adequate support
approaches, introducing new collaborative tools for employees to work and lead efficiently
to drive productivity, implementing programmes  Acquire technical expertise and effective data
that support employee engagement, and promote management processes to conduct meaningful
physical and mental well-being analytics
 Prioritisation of people-related initiatives while taking  Support workforce transitions to cater to future
into consideration overall cost-effectiveness demands
How We Create Value
Continuous upskilling of talent to drive growth
Strategic talent management is important to Digi as it impacts our ability to attract and retain high performing talents.
We believe that employee development and engagement is crucial in achieving our business goals. We strive to
provide the right platforms for our employees to stay motivated and grow in their roles.
Learning and Development
Learning and development in Digi is supported through Telenor Academy, an integrated online learning system with
access to external platforms such as LinkedIn Learning, Linux Academy, Coursera and Udacity. The platform played
a crucial role in supporting the shift towards increased virtual learning due to the pandemic. Aside from learning
through Telenor Academy, Digi organised several annual learning days, conducted virtually for all employees.
Digi Learning Days

Responsible
Customer Obsessed
Business Summit
Day 2021:
2021:
What’s Your Six masterclasses
Annual summit with
Next 2021: conducted by
expert insights and
84% Helping 84% Product Champions 76% masterclasses on
Completion employees to Completion to help employees Completion
key ESG topics to
internalise Digi’s better understand
upskill employees to
strategy Digi’s products and
stay ahead in the
services
fast-evolving digital
age
Digital Day Employees Training Hours
An exciting day of innovation and inspiration sharing In 2021, we have successfully achieved
from industry leaders, including a curated playlist on
topics related to innovation, STEM, and social media 52.6 hours
of average learning per employee*
trends.
(versus target of 40 hours)
This is the accumulated hours clocked in from digital learning

platforms only, such as Telenor Academy, Udacity, Coursera,
and LinkedIn Learning, among others, and does not account
for face-to-face or guided learning sessions.
Average learning hours Average learning hours

Management Team Non-Management Team
45.5 hours 51.7 hours

(FY2020: 57.6 hours) (FY2020: 57.1 hours)
(FY2019: 46.5 hours) (FY2019: 47.5 hours)
* Employee average learning hours has been independently
assured by KPMG PLT (This accounts for accumulated learning
hours FY2021 and unaccounted learning hours from 1 October
2020 to 31 December 2020)
How We Create Value
Continuous upskilling of talent to drive growth (Continued)
Workshops Conducted in 2021 Performance Appraisals and Career Development

human Capital
Reviews
We encourage a culture of continuous learning and
provide employees with the right learning opportunities Digi’s employees are required to complete an “Impact
to reskill and upskill through various leadership and Assessment”, which is an annual exercise to reflect
expert learning programmes. on their development, strengths and achievements
for the year. This provides a structured approach for
employees to chart their career goals and to have
Number of
Workshops meaningful discussions with their line managers on
participants
future growth opportunities.
Tight-Loose-Tight (TLT) -
Number of employees who completed
A leadership concept for People 125
their Impact Assessment
Managers
Stepping Up - To help in the

leadership transition process
47 1,179
(FY2020: 1,257)
LEAP - To promote awareness (FY2019: 1,147)
about the role of a senior
5
executive leader, within the context
of a VUCA business environment
Talent Management and Succession Planning
Accelerate Expert - To promote
thought leadership amongst 4
Digi has a structured process to maintain the
functional experts
succession pipeline, which is discussed during the
Transform - To explore habits and annual people review process. Employees are also
behaviours developed during given opportunities to develop and collaborate at the
15 regional and global level, through partnerships with
participant’s own leadership
journey Telenor Asia and Telenor Group.
Intermediate Expert Journeys -

A self-led expedition to upskill in 143 Female leadership pipeline
critical skills of the future
Advanced Expert Journeys -

12.5%
Increase in the Female C-1
A guided expedition to upskill in 43
talent pool since January 2021
critical skills of the future
NLP Associate Virtual Presenter

Certification - Training for effective 33 C-suite succession pipeline
storytelling
Quarterly Security Training - To 85%

100% Successors are in the
increase cyber security awareness
completion
amongst all employees “ready-now” category of
< 12 months for C-suite roles
Privacy Training - To increase
awareness on protection of 98%
personal data and privacy completion
amongst all employees
How We Create Value
Safe, inclusive and engaged organisation
Guided by our commitment towards diversity and inclusion in Digi, we provide equal opportunities for all. We hire and retain the best
talent, and nurture an inclusive workplace culture that maximises the power of different experiences.
87% Outcomes of Pulse Survey
Response rate
Pulse Survey 80% 84% 87%
In 2021, we introduced Believes that Appreciates Believes that
a ‘Pulse Survey’ to working from Digi’s physical Digi prioritises
replace our annual home works and mental well- employee’s well-
Employee Effectiveness well for them being initiatives being during
Survey (EES) Covid-19
91% 85% 92%

Believes that Acknowledges Agrees that Digi’s
communications that managers compliance
are sufficient and are doing initiatives help
timely, which a good job them better
helps to keep in guiding, understand
them connected communicating the Code of
to Digi and engaging Conduct
Our diverse and inclusive organisational demographics
Balanced gender diversity

45%
Female in
50% 50% leadership

positions
(FY2020: 47%)
Percentage of workforce by age
13.1% 39.8% 36.4% 10.4% 0.3%

20-29 years 30-39 years 40-49 years 50-59 years 60+ years
Protecting Our Employees’ Health, Safety and Well-being
Digi is committed towards safeguarding our employees’ health, safety and well-being. We do this by integrating
Occupational Health and Safety (OHS) practices as a core aspect of Digi’s culture. Our OHS management system is ISO
45001 certified.
How We Create Value
Safe, inclusive and engaged organisation (Continued)
Employees’ Training On Health And Safety

human Capital
Number of employees that Number of health and Total training hours on health
received training safety training programmes and safety
conducted
All employees Two programmes 2,411 hours

• Covid-19 Awareness training
• Covid-19 Return To Office training
In 2021, we recorded Zero Lost Time Injury Frequency

(LTIF) score and zero fatality. Digi keeps track of work-
0 0
Lost Time Injury Fatality
related injuries and accidents, and sickness absence Frequency Recorded
days for its permanent and contract employees, in-house (LTIF)* score
contractors and third-party vendors. Recorded
* Lost Time Injury Frequency (LTIF) score (limited to permanent and contract employees) FY2021 has been independently assured
by KPMG PLT
Digi Yello Show Digi Virtual Teambuilding 2021 Digi Wellness Challenge 2021
40 teams participated in the

#DigiWellnessChallenge, aimed
at improving the physical
and mental well-being of our
employees.
Vaccine Care Assistance
A radio talk show hosted by

Digi employees to engage Conducted pandemic-related
fellow colleagues on topical awareness talks and provided
issues during lunch break. 1,024 employees participated assistance for employees
virtually in our annual to register for the Covid-19
teambuilding event. vaccination.
How We Create Value
Natural capital is seen as a key priority for Digi, realising the opportunities from limiting natural capital exposure within our own
operations, as well as enabling more efficient resource use in other industries. Malaysia has committed to become carbon-
neutral nation by as early as 2050. This mandate would require a concerted effort as well as a high-level green commitment
and investment from both the public and private sectors. As the level of decarbonisation readiness on a national level is often
natural Capital
mirrored by the level of readiness or progress at sectoral levels, Digi aspires to continue our climate leadership in the mobile sector
through progressive climate action. It includes how we safeguard and protect the renewable and non-renewable resources that
we consume in our day-to-day operations.

Mapping to Our Strategy and Material Matters M2 R5
Optimised efficiencies from Used 341.01 GWh Respected land rights when
allocated radio spectrum (FY2020: 329.18 GWh) building and maintaining networks
Key Inputs
Environmental Management Piloted AI use cases with partners On-going initiatives to fulfill Leed1
System - ISO14001:2015 certified and Green Building Index (GBI)2
General waste and e-waste certification requirements
management
1
LEED is a green building certification programme and a globally recognised standard for the design, construction and
operation of high-performance green buildings
2
GBI is Malaysia’s industry recognised green rating tool for buildings
 Setting energy reduction and decarbonisation  Explored opportunities to create a more sustainable
Key Activities
strategies across short, medium and long-term workplace

goals to keep us focused
 Collaborated within and across industries to address
 Climate Data Integrity exercise for best practice environmental concerns
methodology in environmental data collecting
 Natural crisis preparedness, adaptation and
and reporting
mitigation strategies
 Network modernisation and cleaner energy  Managed climate risks by strengthening network
Outcomes
innovations for sustainable growth resilience
 Sustainable workplace and remote working  Strengthened controls on climate data

arrangements management and reporting
 Managed our environmental footprint and  Carbon intensity per data usage (tCO2e)
recycling of network equipment improvements by 13.7%
 Efficient resource management by leveraging  Drive more network modernisation for sustainable
effective methodology and practices, including new growth
investments into technological advancements to  Expand our existing energy optimisation and
minimise our environmental impact decarbonisation initiatives
 Our partnerships with external parties will have a  Adopt cleaner energy innovations and solutions
positive impact on this capital as we progress to  Strengthening controls on climate data
employ green technologies in contributing towards management
our decarbonisation pathway  Transition towards data driven network planning
and higher spectrum efficiencies
 Industry collaboration with third parties towards
driving climate best practices
How We Create Value
Climate Action
Digi takes a pragmatic approach in addressing climate change and will work in collaboration with the industry, government,
environmental agencies and partners towards achieving a net zero greenhouse gas emissions by 2050, in line with a 1.5-degree
natural Capital
pathway. While there remain challenges in large scale CO2 reductions due to our dependency on the national grid, we will
continue to strengthen our governance and reporting mechanisms while exploring new technologies and solutions.
Excellence in climate reporting, compliant with mandatory requirements and guided by global best practices
Short Term Medium Term Long Term
2022-2025 2025-2030 2030-2050
Develop carbon reduction Enhance business resilience Develop greenhouse gas

strategy and conduct climate over climate transition risks (GHG) strategy in parallel to
risk assessment to guide and adopt Board ownership in national net zero targets and
strategies and target setting. climate governance. to drive climate actions across
our value chain.
Driving network modernisation and cleaner energy innovations for sustainable growth
31 102 sites 15 3G Sunset > 4000

Fuel powered CSON1 AI pilot Off-grid sites on Progressive efforts to
sites
off-grid sites initiative hybrid with lithium- shutdown remaining Site Battery
converted to ion battery 30 Core Base Station Autonomy
grid power Control (BSC) and
Prediction Tool2 to
41 Radio Network reduce downtime
Controller (RNC) in and drive greater
2022 efficiencies
1
CSON AI initiative
In 2021, Digi worked with ZTE through the Centralised Self Organising Network (CSON) Artificial Intelligence
(AI) pilot initiative, deploying tools to automatically analyse and implement power-saving mode at our Radio
Access Network (RAN) sites. 102 sites were involved in the pilot over the course of a month and demonstrated
3.77% energy reductions (kWh consumed) per site, on average. We will be taking a phased approach in
scaling the initiative, targeting to equip more than 50% of our sites to be equipped with this capability in 2022.
2
Site Battery Autonomy Prediction Tool
The ‘Site Battery Autonomy Prediction Tool’ is another AI-based initiative deployed to automatically monitor and
record usage information of backup batteries at Digi’s network sites. This information is crucial for timely sites
restoration and battery replacements planning to ensure minimal service disruptions.
How We Create Value
Sustainable workplace
 Digi’s headquarters and Technology and Operations Centre (TOC) has

been accredited with Gold certification by LEED in 2017, and by Green
50%
Reduction in energy use
Building Index (GBI) in 2012 and 2016 respectively. We provide electric
by changing to higher
vehicle charging stations for company vehicles and employees. We will
efficiency air-cooled
continue to monitor and maintain high quality and healthy workspaces
chiller
to boost productivity, optimise energy usage and implement responsive
heating and cooling measures
 In adherence to LEED standards, we have embarked on the following
energy efficiency and conservation efforts in 2021
15.6%
• Lighting setting and scheduling Savings up to 1,015,000
• Balancing of chiller load and chilled water kWh of energy use in
• Heating, ventilation, and air conditioning (HVAC) temperature setting our office due to remote
and scheduling working arrangements
Managing our environmental footprint
In 2021, to meet rising consumer demands, our carbon emission increased by 5%, attributed to data growth and network
expansion. Our annual greenhouse gas (GHG) emissions inventory FY2021 in accordance to the GHG Protocol Corporate
Standard are as follows:
Indirect Energy
Direct Energy
Consumption from Grid Indirect Energy Consumption
Consumption from
and Green Electricity from Value Chain (GWh)
Fuel (GWh)
(GWh)
Digi restated our climate
data for 2019-2020
following the outcome of
a Climate Data Integrity
42.50 297.21 1.30 exercise undertaken
(FY2020: 44.12) (FY2020: 281.94) (FY2020: 3.12)
with an independent
(FY2019: 40.10) (FY2019: 267.84) (FY2019: 7.94)
advisor to improve
our methodology
Scope 1 Carbon Emissions Scope 2 Carbon Emissions Scope 3 Carbon Emissions
(Tonnes) (Tonnes) (Tonnes) in data collection
and management
10,345.14 196,776.12 332.79 approach. Corrective
(FY2020: 10,750.88) (FY2020: 185,745.74) (FY2020: 734.70) measures have been
(FY2019: 9,763.92) (FY2019: 174,044.00) (FY2019: 1,638.03) undertaken to ensure
consistency, accuracy
and transparency of the
Total Energy (GWh) Total Carbon Emissions (Tonnes) data presented here, in
line with good climate
341.01* 207,454.05* governance practices.
(FY2020: 329.18) (FY2020: 197,231.32)
(FY2019: 315.88) (FY2019: 185,445.95)
* Total energy consumption and carbon emissions FY2021 has been independently assured by KPMG PLT
How We Create Value
Managing our environmental footprint (Continued)
During the year under review, we have improved on our Carbon Intensity per Data Usage by 13.7% YoY. We have
natural Capital
achieved a lower carbon footprint per unit of data consumed, although the average customers are using more data.
Our carbon intensity is measured by tonnes of CO2 (tCO2e) per terabyte of data.
Energy Usage per Carbon Intensity per Energy Usage per Carbon Intensity per
Customer Base (mil)
Customer (kWh) Customer Data Terabyte (MWh) Data Usage (tCO2e)
10.32 33.05 0.020 0.16 0.094

(FY2020: 10.44) (FY2020: 31.53) (FY2020: 0.019) (FY2020: 0.18) (FY2020: 0.109)
(FY2019: 11.28) (FY2019: 28.00) (FY2019: 0.016) (FY2019: 0.24) (FY2019: 0.141)
General waste Water consumption E-waste (obsolete electrical and

electronic waste)*
Waste Collected Water Consumed E-waste Collected
148 tonnes 68,435 m3 162 tonnes

(FY2020: 251 tonnes) (FY2020: 78,856 m3) (FY2020: 47 tonnes)
(FY2019: 281 tonnes) (FY2019: 93,770 m3) (FY2019: 30 tonnes)
Waste Generated per Employee1 Water Consumed per Employee1 E-waste Resold and Recycled
103 KG 48 m3 162 tonnes

(FY2020: 170 KG) (FY2020: 54 m3) (FY2020: 10 tonnes)
(FY2019: 183 KG) (FY2019: 61 m3) (FY2019: 30 tonnes)
• E-waste directly produced from our

Waste Recycled operations are managed under the
Environment Quality (Scheduled Wastes)
Regulation 2005 and our internal
guidelines
1.7 tonnes • Decommissioned network equipment
(FY2020: 2 tonnes) constitutes the largest amount of e-waste
generated by tonnes. We reuse equipment,
(FY2019: 6 tonnes)
and send those that are obsolete to
recycle and disposed off safely by a
licensed vendor
• Under our refreshed ESG guidelines,
Recycled shall include e-waste treated
by professional service provider who
guaranteed that the waste is processed,
sorted, resold, recycled or disposed in an
environmentally sound manner
1
Total employees – 1,438
How We Create Value
Managing climate risks
Towards the end of 2021, the country experienced severe flooding in eight states, affecting more than 125,000 people. This
exposed the reality of extreme weather conditions caused by climate change. The floods affected 280 of our network sites
with access roads being blocked, electricity shutdowns and other hazards.
Digi recognises climate change as an important risk element, and will continue to adopt proactive measures in addressing
both physical risks and transitional risks anticipated to arise due to climate change.
Digi supported WWF Malaysia and BCG Malaysia, and provided telecommunications
specific insights in the development of the study on Net Zero Pathways for Malaysia 2050.
This report is meant to catalyse stronger and more cohesive climate action amongst
all stakeholder groups. Digi will continue to collaborate with WWF Malaysia and BCG
Malaysia, delving deeper into industry specific topics.
The report is available at

www.wwf.org.my/our_work/climate_and_energy/towards_net_zero_emissions_by_2050/
Digi is a steering committee member in the CEO Action Network

(CAN) which is a closed door peer to peer informal network of over
50 corporate CEOs and Board members, focused on sustainability
advocacy, capacity building, action and performance.
As a member, we are committed to

engage with various stakeholders
including our supply chain, regulators
and policy makers, government,
as well as our peers across various
sectors to forge partnerships that
are committed to responsible
business practices and sustainable
development.
In 2021, Digi, CAN and Climate

Governance Malaysia (CGM)
organised a Telco CEO Roundtable
with six CEOs for conversations and
sharing on various climate initiatives,
challenges and aspirations to
decarbonise the mobile sector.
How We Create Value
Strengthened controls on climate data management and reporting
Digi’s Environmental Management System (EMS) is ISO 14001:2015 certified.

natural Capital
Digi discloses its climate impacts, energy and GHG emissions via Telenor Group to the CDP global
disclosure system.
Since 2020, Digi discloses its emissions data through its Integrated Reporting process. Digi adopts
the following principles as part of its GHG emissions management.
• Define the scope and boundary
• Identify the GHG emission sources
• Collect and quantify GHG emissions
• Set emissions reduction objectives and prepare action plans
• Involve employees, suppliers and conduct trainings
• Implement emissions reduction initiatives
Climate Data Integrity exercise
In 2021, Digi embarked on a Climate Data Integrity exercise with guidance from an independent advisor to better
improve on its carbon and energy management and reporting standards for Scopes 1,2 and 3.
The six months initiative resulted in the development of new formalised data templates, with embedded calculations
and estimations so as to minimise human errors. The data templates also presents automated historical and future
projections that will allow the team to better perform trend analysis and to make informed decisions. The respective
data stream owners have begun populating the templates with 2021 data and will be the standardised template
used in Digi moving forward.
How We Create Value
The effects of Covid-19 pandemic continued into 2021 through waves of new virus variants. In response, the government
executed more stringent measures to contain the spread of the virus, and at the same time introduced recovery strategies.This
include the reopening of more economic sectors and injecting fiscal aid and stimulus to resume economic growth, aligned
Social and Relationship Capital
to the nation’s larger reform and development agenda as stated in the Twelfth Malaysia Plan, 2021 – 2025 (12MP): Keluarga
Malaysia (Malaysian Family) to develop a ‘Prosperous, Inclusive and Sustainable Malaysia’. As a connectivity provider, Digi
is equally committed to the national agenda via our promise to empower societies and reduce inequalities. This purpose
is embodied through our Yellow Heart commitment to operate responsibly for the collective well-being of our customers,
societies and the environment.

Mapping to Our Strategy and Material Matters R3 R4 R1 G3
Sustainable and trusted brand Responsible Business culture Positive relationships and
Key Inputs
partnerships with customers,

Purpose-driven initiatives Robust and transparent suppliers, business peers, UN
contributing to the SDGs governance systems agency, NGOs, regulators and the
government
 Geared up expansion of new network sites and  Built capacities for young people to create a safer
Key Activities
service quality internet space
 Accelerated businesses and SME digitalisation  Conducted scam awareness campaigns with
customers
 Empowered youth and educators with future skills
learning  Strengthened human rights, business ethics and
corporate governance
 Empowered societies through nation building  Adapted to current and new regulations of our
Outcomes
initiatives digital ecosystem
 Enhanced commitments for a digitally inclusive  Improved human rights due diligence across our
and resilient Malaysia value chain and protected right to freedom of
association
 Reinforced strong governance and robust internal
controls
 Uncertainties due to the pandemic, adherence  Support the socio-economic recovery of

to regulatory compliance, digitalisation and underserved communities
shifting consumer behaviours have accelerated  Improve accessibility and enabling digital adoption
the demands for Digi as a connectivity provider nationwide
to deliver on its purpose and maintain a positive  Develop the next generation with skills for an
relationship with all stakeholders accelerated digital future
 Instill strong values and controls associated with Digi
products and services
 Engage stakeholders and raise standards of our
operations and supply chains
How We Create Value
Empowering societies through nation building initiatives

As a responsible corporate citizen, Digi implemented and supported various initiatives to help the rakyat weather
through difficult times.
Yellow Heart Education Data Packages
Alongside the CERDIK initiative by the government, Digi provided discounted data packages for more than
11,000 students from low-income households.
Supporting the Covid-19 Task Force and

Frontline Hospitals
Digi zero-rated calls to critical service hotlines including Covid-19 websites, screening and admitting hospitals
(as endorsed by the Ministry of Health) and telehealth providers such as DoctorOnCall. We sponsored devices
with connectivity to the National Rapid Response Task Force (GKVSTF) for contract tracing management, and to
multiple frontline hospitals to support the needs of patients in Intensive Care Units and for counselling services.
Covid-19 Response and Recovery
Contributed more than RM 1.5 million to communities, comprising free connectivity at Program Perumahan
Rakyat (PPR), free calls to helplines, and RM 750,000 channeled via our NGO partner, MERCY Malaysia to support
on-going Covid-19 response and recovery efforts.
Floods Relief and Recovery Efforts
 Provided prepaid subscribers with free internet
 Pledged up to RM500,000 via aid agencies
 Total of 140 employees supported with hotel accommodation, financial aid and home/vehicle repairs
 Rallied up efforts to restore disrupted sites and initiated employee volunteerism to support communities,
including recovery of affected Digi retail stores
How We Create Value
Gearing up for a stronger digital nation
Digi continuously monitors our network capabilities to provide consistent We initiated a nationwide campaign
and high-quality digital connectivity to meet customers’ expectations. #BuatLebihL4Gi to drive awareness for
customers to adopt 4G, coupled with affordable
device plans to drive greater adoption.
Accelerating businesses and SME digitalisation
Business and digital solutions to fast track PENJANA SME Digitalisation #KamiCareMBiz programme
business growth Grant Offered over RM 500,000 worth of
Providing customised connectivity and managed
services for business transformation.
~9,000 digital solutions and mobile plans
to help local micro and small
Businesses benefited
business owners go digital.
MYDigital SME Programme

Conducted webinars on the topic of e-commerce
and cyber security with solution partners.
7 > 150,000
Episodes Views
Empowering educators and youth for the future
Future Skills For All (FS4A)
Micro:bit, robotics #BOLEHCODE national

and programming coding movement
34,582* > 3,000

Students and teachers Students
enrolled up to participated
31 December 2021
> 350
Schools reached
For more information on FS4A, visit futureskills.moe-dl.edu.my
* Number of FS4A enrolment up to 31 December 2021 has been independently assured by KPMG PLT
How We Create Value
A decade-long commitment for safer internet

Digi celebrated the tenth anniversary of its flagship Safe Internet programme
in conjunction with the International Safer Internet Day (SID) on 9 February. We
launched the Yellow Heart Safe Internet portal, a one-stop repository of educational
material to equip Malaysians with skills to be more resilient and responsible online
citizens. For more information, visit safeinternet.my.
Life under Covid-19 Digital Well-being Research

Close to 1,800 students participated
Partnering Sunway University to gather insights to guide future
planning to improve children’s online learning and experiences.
Advocating for a safer internet

In collaboration with like-minded partners we participated in several engagement platforms comprising online
webinars and panel sessions to drive greater advocacy and awareness on the topic of child online safety.
Series of virtual workshops with subject matter experts

Five regional- organised by UNICEF and R.AGE to discuss about healthy
level safe internet relationships, including cyber-grooming. The workshops
workshops were registered over 950 participants.
conducted during
the #mydigitalmaker
Virtual Fair 2021.
Collaborated with Ai Talent on a series of workshops on Dedicated virtual hotlines to help volunteers and
safe internet with children. More than 100 short awareness counsellors provide emotional support and counselling
videos were created by the children. services during Covid-19.
‘Championing Child Rights In

The Digital Age’ is a dialogue
on protecting children’s
rights in Malaysia’s digital
transformation journey.
How We Create Value
Limiting operational risks through responsible supply chain management
All new suppliers will be screened and assessed based on their financial performance, background and historical records.
Digi mandates for all its suppliers to sign on the Agreement of Responsible Business Conduct (ABC) so as to ensure they
meet our standards and requirements in areas of Health, Safety and Security (HSS), ethical conduct, human rights and
environmental management.
179* 2,099
New suppliers who signed the ABC Total suppliers who have signed the ABC to date
(FY2020: 130) (FY2020: 1,920)
From the inspections carried out, non-compliances were identified on matters-related to health and safety, prohibited
business practices, human rights, environment, cyber security and breach of regulatory compliance. We required suppliers
to develop corrective action plans based on the outcome of the inspections conducted. Suppliers who fail to meet
the minimum requirements will be given time to work on the corrective action plan, failing which will result in serious
consequences such as suspension or even termination.
Number of inspections conducted Number of findings Number of

suppliers
Unannounced Announced Total Major Minor terminated
509 1 510 16 45 2
(FY2020: 463) (FY2020: 48) (FY2020: 511) (FY2020: 5) (FY2020: 194)
(FY2020: 3)
(FY2019: 429) (FY2019: 30) (FY2019: 459) (FY2019: 9) (FY2019: 203)
(FY2019: 1)
Total supplier training hours Promoting sustainable local procurement
We conducted periodical trainings to advocate As part of responsible sourcing practices, Digi promotes local
on best practices including laws and regulation procurement to reduce our carbon miles and to support the local
on HSS and human rights aspects. In 2021, economy. The spending percentile breakdown of local and foreign
5,635 training hours were recorded. The suppliers is shown below.
increase in training hours for 2021 was partly
attributed to the mandatory supplier training
assessment implemented towards mid last year. Number of suppliers appointed
5,635
266
Percentile 235
training hours of Total Percentile
197
Expenditure of Total Percentile
(FY2020: 2,426) Expenditure of Total
(FY2019: 2,594) 238 94.8%
Expenditure
216 98.5%
181 99.1%
28 5.2% 1.5% 0.9%

19 16
FY2019 FY2020 FY2021
Local Suppliers Foreign Suppliers
* Number of new suppliers signing Digi’s ABC FY2021 has been independently assured by KPMG PLT
How We Create Value
Limiting operational risks through responsible supply chain management (Continued)

Remote inspections as a way forward

Due to travel restrictions, we piloted an initiative to perform inspections virtually by deploying video cameras on site.
The Supply Chain Sustainability (SCS) team was able to track and monitor site work through this deployment. A total
of three Tier-1 suppliers has implemented the usage of cameras (236 units deployed in total) on sites that they are
responsible for.
Introduction of Digi Knowledge Assessment Tool (DKAT)

DKAT is a standalone web solution to assess suppliers on their training knowledge after they undergo Digi’s training or
courses on topical issues and technical competencies. Certification of completion is issued to suppliers completing
the assessments for the assigned modules.
Reinforcing our commitment for business continuity
Digi is accredited with BCMS ISO 22301:2019 by the British Standards Institution (BSI). This requires Digi to implement,
maintain and improve the management system to timely protect, mitigate and recover from disruptions.
This reinforces our commitment to deliver reliable products and services to our customers, business partners, and
stakeholders, in assurance that Digi has adopted the best practices and processes to mitigate disruptions in business.
How We Create Value
Emphasising strong governance and robust internal controls
Strengthening compliance way of work and mindset
Governance Unit Risk and Monitoring Knowledge Unit

• Review and implement Digi’s policies • Conduct Compliance risk assessment • Compliance capacity building for all
and manuals under the Governance and monitoring activities for second employees through awareness and
Work Programme (GWP) 2021, line of defence (privacy, supply chain, training programmes including Speak
where the framework for governing legal and procurement) Up Campaign, Anti-Corruption Day,
documents were simplified • Conduct Integrity Due Diligence (IDD) Responsible Business Summit, and
• Compliance case management and background check on all high-risk targeted training such as Anti-Money
analytics business partners Laundering
• Bribery risk assessment workshops for • Digi’s Anti-Corruption Day is held
all Heads of Departments to analyse annually on 9 December in recognition
divisional risk registers and establish of International Anti-Corruption
a portfolio view of corruption risks at Day. Company-wide trainings and
enterprise level awareness were carried out to educate
employees and to reinforce our zero-
tolerance policy towards corruption
Other Initiatives
• Implementing the ISO 37001: Anti-Bribery Management System standards to improve the organisation’s culture of integrity,
governance and anti-corruption, reputation and the commitment of its top management and governing body
• ISO 37001 workshop were conducted with all the Head of Departments to identify risk of corruptions in their respective
departments
• Appointment of Compliance monitor in each division to promote better governance across the business
• Formation of Governance Risk and Compliance (GRC) committee to deliberate significant GRC matters and subsequently
formulate appropriate responses to address them
Integrity Hotline
A confidential channel to report concerns and raise questions about possible breaches of Digi’s Code of Conduct, including relevant
laws, regulations and Governing Documents. Visit telenorgroup.integrityline.com
For all employees, suppliers, Can opt to remain anonymous

24 hours/7 days a week
stakeholders and general public throughout the process
100% 92% 100%

Acceptance rate by Digizens on Agree that Digi’s compliance initiatives help Completion rate of Digi’s Anti-
the Code of Conduct 2021 them better understand the Corruption e-Learning module on
Code of Conduct Telenor Academy
Pulse Survey 2021 (87% Digizens participated)
How We Create Value
Adherence to existing and emerging regulatory requirements

Regulatory Compliance
Digi complies to regulatory requirements and supports the Malaysian Communications and
Multimedia Commission (MCMC) to monitor and track progress against on-going initiatives such
as JENDELA and compliance to all Mandatory Standards under MCMC’s purview. We drive greater
accessibility and affordability through network expansion, industry collaboration, and product and
service offerings.
Pusat Ekonomi Digital Malaysia (PEDi) Consumer Complaint Handling
The Universal Service Provision (USP) programme aims Managing consumer complaints on network
to expand network infrastructures to underserved performances is a key measurement in the national
areas to close the digital divide. The programme JENDELA initiative. Digi actively resolves such complaints
includes operating PEDi internet centres across lodged through MCMC’s Aduan portal and progress are
Malaysia for facilitating internet access, e-learning, tabled fortnightly at MCMC’s JENDELA Implementation
digital skills and digital entrepreneurship upskilling for Committee (JIC). The committee reviews the progress
local communities. Since 2021, digital entrepreneurial and development of all plans within the JENDELA
programmes were conducted for SMEs. Digi operates initiative.
132 PEDi nationwide.
Total Complaints Resolved by Digi (%)
JIC #17/2021 95.43%
JIC #18/2021 92.76%
JIC #19/2021 94.69%
JIC #20/2021 94.48%
The above results were measurements taken in Q4 2021.
Advocating for Consumer Safety Against Scams
Digi supported MCMC on a crime prevention

awareness campaign for consumers to
recognise and report tactical scams via phone
calls, SMS and Transaction Authentication Codes
(TAC). This complements Digi’s Yellow Heart Scam
awareness campaign.
How We Create Value
Upholding human rights and protecting freedom of association
Digi is committed to respecting human rights as set out in the The United Nations Guiding Principles on Business and
Human Rights (UNGPs). We integrate human rights aspects within our operations and conduct a Due Diligence exercise
every alternate year to assess and mitigate any forms of human right risks in our value chain. The 2021/2022 assessment
covered 19 material areas (e.g. Workers Wellbeing and Safety, Working Environments, Working Conditions, Modern Slavery,
Digital Inclusion and Literacy, Corruption and Bribery, Collective Bargaining and Freedom of Association, Environmental and
Infrastructure Impacts, etc) under the purview of 12 departments in Digi.
Advocacy of Human Rights in Digi
 Conducted a capacity building workshop on ‘Making Business

and Human Rights a Way of Work’ for employees during the annual
Responsible Business Summit
 Digi’s Code of Conduct (Code) adheres to the UNGPs and the

International Labour Organisation (ILO) standards
 Human Rights principles are integrated into the Agreement of

Responsible Business Conduct (ABC) to ensure strict adherence by Digi’s
suppliers and business partners
In 2021, Digi engaged with key stakeholders from International

Labour Organisation (ILO), UNICEF and IO Foundation on the topic
of Human Rights
Freedom of Association
Digi employees are represented by the Digi Telecommunications Sdn. Bhd. Employees Union (DGEU) and the Best on People
Council (BOPC). Both entities are formed via democratic process by election of representatives across Digi.

Digi Integrated Annual Report 2021 - Part 1

Uploaded by

Copyright:

Available Formats

Digi Integrated Annual Report 2021 - Part 1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Digi Integrated Annual Report 2021 - Part 1

Uploaded by

Copyright:

Available Formats

Integrated Annual Report 2021

The cover highlights how digital connectivity has supported the

Scan this QR Code

1 At A Glance 4 How We Create Value 140 Statements of

About This Report

This is Digi.Com Berhad’s 3rd Integrated Annual Report (IAR) 2021,

Integrated Annual Report (IAR) 2021

Our audited annual financial statements are disclosed

Sustainability Performance and GRI Content Index

Integrated Approach and Materiality

Approval by the Board

A lways E x p lo r e C r e ate To g eth er Keep Pr o m i ses Be Resp ectful

OUR Way of Work

Customer Obsessed Innovation 360

Refer to Our Strategy on pages to 44 to 47.

100% Digi Telecommunications Sdn. Bhd. 100% InfraNation Sdn. Bhd.

100% Y3llowlabs Sdn. Bhd.

Chair of the Board’s Statement

In the context of the ongoing Covid-19 pandemic in 2021,

Digi’s purpose has never been

Read more about this on pages 8 to 9.

Digi continued to deepen its responsible business

Haakon Bruaset Kjoel

Chair of the Board’s Statement

Read more about how

Chief Executive Officer’s Statement

Resilience and inspiration have been

In 2021, Digi stayed focused on executing our

Read more about this on pages 12 to 13.

Chief Executive Officer’s Statement

In parallel, the proposed merger

Lastly, we express our appreciation to Malaysia’s first responders,

Underlying all these ambitions is

Chief Financial Officer’s Statement

All this would not have been

Read more about this on pages 16 to 20.

I am proud of how our shareholders have

Otto Magne Risbakk

Chief Financial Officer’s Statement

Data traffic growth

Chief Financial Officer’s Statement

closely with the industry, government, environmental

Chief Financial Officer’s Statement

We also aspire to further raise our responsible business

In summary, our 2022 guidance is as follows:

Service Return to growth

EBITDA Around FY2021 level: ~RM3,000 million

Quarterly Financial Performance

RM Million First Quarter Second Quarter Third Quarter Fourth Quarter

5-Year Financial Summary

RM Million 2017 2018 2019 2020 2021

1 EBITDA excludes the gain or loss on:

We aim to sustainably grow consumer and lead organic B2B

Our Business Model

KEY INPUTS our value creation engine

Financial Key enablers to operationalise our strategy

Trusted brand reputation

Environmental Management System -

Embraced a culture of continuous

Raising standards across our value chain