Celcom – ‘Network Excellence’

2nd December 2019

CELCOM Delivering Widest Coverage, Consistent & Reliable Network Widest LTE pop coverage 93.2% & best in LTE availability, Video Experience and Latency

2G

3G

LTE

LTE-A

87.7%

2G 3G LTE LTE-A

95.2% 94.1% 93.2% 81.3%

Population Coverage

Our network today has evolved from a Data NW to Video NW~60% of total data traffic are Video, with Youtube and Facebook contributing 75% of traffic

YoY Monthly Total Data Volume increase by >20%

YoY Data Usage per Sub increase by ~30%

Dec2018

Sep2019

Dec2018

Sep2019

>20%

~30%

YoY Total Video Traffic Volume increase by >15%

Dec2018

Sep2019

>15%

Embracing Digitization and AnalyticsThree focus areas to deliver the right user experience aligned with our customer promise

Network Digitization,

Automation & Analytics

▪ Embracing network digitization network

in planning, PM, SQM,

▪ Advanced deep-packet inspection

tools and predictive/prescriptive

analytics for advanced CE

management

▪ Multivendor-performance End-To-End

Visibility And Correlation

PlanningCapacityCongestionOSSOperationsDelivery

1 Differentiated QOS2

▪ Enable Competitive Differentiation

▪ Service-based and User-based QOS

▪ Optimize customer experience,

Segmented market and services

▪ Optimize Video Traffic

▪ Adopt video optimizer

▪ Bandwidth saving, Improve QoE – speed

and stall

▪ Deliver right video resolution to each

customer segment

Crowdsource Ranking

and Priority3

Network ClusterOokla & OpenSignal

Data

❑ Latitude/Longitude

❑ Speed Test (Mbps)

❑ Operator Name

(Celcom, Digi, Maxis,

Umobile)

Network Cluster

Priority of upgrade based on Network Cluster:

• Use competitive position at cluster level to determine where to upgrade first

• Optimize against competition rather than internal KPI’s

Delivering Opex Cost OptimizationMarginal Opex increase per site in 2019 & target to reduce network cost over revenue by 2-3pp in 2022

2019F 2020

Overall Network

Operating Cost

Reduction

Cost Per Site Cost Per GBOther Key Cost Drivers

• Review of low traffic sites

• Insourcing

• Energy reduction

• Site Lease Re-negotiation

• Review SOC cost

• AMC re-negotiation

Network Opex

2021

> 5% > 50%

2019F 2022 2019F 2022

10-15%

2022

NETWORK INVESTMENT

TRIGGERS

Step 1

SOLUTION &

COST

Step 2

SITE

PROFITABILITY

Step 3

NIC

Step 4

LOA & PO

Step 5

Capex Investment Prioritization Process‘Just in Time’ and ‘Just Nice’ network Capex investment process to maximize returns

3Mbps -

SD5Mbps -

HD8Mbps -

FHD16Mbps -

UHD

Per Video Quality

RAN TRANSPORT CORE INFRASTRUCTURE

64%

18%

14%

4%

37%

44%

9%

10%

2019CAPEX

2020CAPEX

New network triggers

incl Video reduced

CAPEX investments

ExistingTriggers

NewTriggers

~40%

LTE

• 20% additional capacity just in time upgrade

• Activated NB-

IoT for machine to machine services

Transport

• 85% sites fiberized or one hop to fiber

• Modernization towards full IP

• Improve Redundancy

Core

• Capacity increase by 50%

• Fail-safe Redundancy

• Transit, peering and caching opti

Applying analytics and Just in time investment triggers to optimize Capex without impacting user experience

OTHERS

3Mbps - SD 5Mbps - HD 8Mbps -

FHD16Mbps -

UHD

Network Summary

• We have built the widest and strongest network in the country, delivering consistent and reliable

experience. Using latest radio and core technologies which are 5G ready. Award winning network

recognized by third parties like OpenSignal.

• Our network today is different, it has evolved from being a data network to a video network with

Youtube and Facebook contributing most traffic. Our video network is tuned and optimized for

consistency, latency and upload speed; download speed is no longer the only KPI to watch.

• We are using digitization and analytics to deliver Just Nice and Just in Time network experience. We

have embedded new digital tools in our operations and we are extensively using crowdsourcing data

to ensure our network is competitive down to cluster level, at the right cost.

• We have modernized our network and are now focusing our 4G NW investments on strengthening and

maintenance. Smart capex planning will allow us to reduce RAN capex by almost 40% by 2020.

• Network Opex to decline by 2-3% pp over revenue by 2022 through rationalization of site

configurations, electricity optimization and fiberization.

• Post MFRS 16, EBITDA margin to improve by 3 – 4% pp by 2022.

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The information is not meant to be comprehensive and any material contained in this presentation is provided "As-is" and without warranties of any kind; either expressed or implied for the fullest extent permissible pursuant to the applicable Malaysian Law(s).

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