Exiata is the country's premier and most experienced mobile telecommunications company with close to 12 million customers.

It is also the leading mobile broadband service provider in Malaysia with over 937,000 subscribers. Exiata provides prepaid and postpaid mobile services and leads the industry with mobile broadband services in Malaysia. Exiata also enjoys significant market share in other areas of business namely content and VAS, enterprise solutions and bulk wholesale services. In line with the evolving technologies and changing consumer behavior in Malaysia, Exiata is moving towards integrated multiaccess and multimedia services. With the widest network coverage in the country, its 2G and 3G networks covers 95.0% and 81.7% of the population respectively, Exiata continues to invest in network coverage, capacity and performance, and intends to maintain its technology leadership and position as the country's best mobile service provider. Exiata always gives top priority to its customers and has set up a consumer lab to understand them better. This, as well as numerous initiatives in product and service innovation and focus on customer service and experience, has resulted in Exiata winning several accolades at both local and regional level. Exiata has been a pioneer in Malaysia for industry leading partnerships which include mobile virtual network operators (MVNOs), domestic and international roaming, and infrastructure sharing. Exiata now has 5 MVNO partnerships riding on its strong mobile network. Its long standing partnership with Vodafone enables subscribers to enjoy international roaming service in 190 countries and over 513 networks worldwide. This partnership provides Exiata's customers with unrivalled global coverage, the lowest IDD and roaming rates and the latest mobile technologies, whilst giving Exiata access to Vodafone's global purchasing and economies of scale. The infrastructure sharing initiative with DiGi Tel is also paving the way for sustainable growth of its data networks, ensuring optimum network coverage to deliver the best overall mobile experience for its customers.

Corporate Responsibility
Many things change in our rapidly evolving industry, but Axiata's commitment to conducting business responsibly remains constant. We are mindful of our responsibility towards our stakeholders, particularly shareholders, customers, communities and employee, and as such our Corporate Responsibility (CR) efforts integrate social, environmental, and economic concerns so as to ensure that we continue to deliver sustainable value for our long term growth and success. CR is integrated into all aspects our business and we approach CR from the following perspectives: Marketplace, People, Environment and Community.

MARKETPLACE PERSPECTIVE
A continuous emphasis on the long-term integrity of our business benefits everyone while a strong focus on business ethics help us maintain high standards across our operations. Good governance with a strong focus on corporate ethics is essential to doing business responsibly and enhancing investor confidence and to ensure value creation for the Group, our employees, shareholders and society as a whole. This includes the policies, directives, guidelines and business processes that frame how we do business every day. Throughout 2011, Axiata continued to enhance its processes and operations in its efforts to ensure a sustainable and responsible approach. Our commitment to Corporate Governance is detailed in the Statement on Corporate Governance available within this Annual Report on pages 62 to 85.

PEOPLE PERSPECTIVE
Our employees are our greatest assets, the major contributors to our success and critical to achieving our sustainability aims. Realising this, we put strong emphasis on our employees and their development. We have in place various initiatives covering career development, performance management and leadership growth to ensure our employees have every opportunity to fulfil their potential. We believe that with the right employees and skills, we will be better positioned to achieve our business, attract and retain talent, respond to our customers' needs and maintain a competitive advantage. Axiata is committed to harnessing diversity in order to promote a global perspective. To reach this goal, we aim to increase diversity into all our processes for career development and talent management. A diverse team where everyone contributes with their unique abilities, skills and experiences, presents a competitive advantage and stimulates innovation.

Enhancing Performance
We want our employees fulfil their potential and continue to drive a high performance culture. In 2011, we continued with our Group-wide Employee Engagement Survey and have benchmarked ourselves against country norms, global telco norms and global high performing companies norms. The results have been used to assess and measure organisational effectiveness in driving employee engagement and driving a high performance culture across the Group. The Employee Engagement Index has also been used as part of the KPI for our business leaders.

Mobility Policy
We continued to strengthen our top management at Corporate Centre and across the Group and have hired new talents and move our talents across the Group. We have developed a Group Mobility Policy which provides standard guidelines to institutionalise the movement of talent across the group as a key people development mechanism.

Restricted Share Plan

Axiata introduced the Restricted Share Plan (RSP) in 2011. The plan replaces the existing Performancebased ESOS (Employee Share Option Scheme).This enhanced plan is another tool to attract and retain talent within the organisation.

Enhancing Our Talent Pipeline

Talent development is another key focus area at Axiata. We are 100% committed to developing our talent. This is our way of giving back to the people and what makes us a great organisation. In developing our talent pool, we include nationals of the countries where we operate. We transcend nationalities and become a contributor of talent development to these countries. Our work on talent development is encapsulated in our Talent Management "cradle-to-grave" framework where we identify talents as early as 12 years old who are just starting secondary school and provide them with a development curriculum to prepare them to be corporate leaders if they choose to stay with us all the way to university and employment. This goes all the way to the group of talent that are within a 5-year readiness level to be top management in our corporate centre as well as in our OpCos. We call this the Talent Pipeline.

Throughout 2011, we have continued our focus on building a robust Talent Pipeline. We now have 115 talents in the top tier of the pipeline undergoing the Group Accelerated Development Programme (GADP). As part of GADP, in 2011 we teamed up with INSEAD to bring the best development programme for functional leaders to transition to general management, as well as putting them through a highly realistic business simulation game to allow them to practise being in a top management operations team in a safe environment. These two development programmes are the latest addition to our Group Leadership Development Programme (GLDP) to further build the leadership capabilities of our top talent pool. Our overall Talent pipeline numbers that were undergoing leadership development in 2011 are:GADP: 115 OpCo Accelerated Development Programme: 302 Fresh Graduate Development Programme (Axiata Experiential Programme): 50 Pre-University and University Axiata Young Talent Programme: 9 Secondary School Axiata Young Talent Programme: 60 Different leadership development curriculums have been constructed for the different groups of the talent pipeline. What is common throughout the curriculum is our desire to build holistic business leaders that can balance the science with the arts. We recognise that what is key in developing leaders is harnessing the learning agility of the talent to learn from a solid foundation of science and knowledge coupled with the wisdom from undergoing different experiences. In 2011, we continued to maximise on our regional platform to enable our talent to gain new experiences. At the end of 2011, we had 14 of our GADP talent pool on assignment out of their home countries, to experience different markets on different growth cycles with different intensities of competition. We believe that this will help to increase the resilience and creativity of our talent so that we continue to be relevant and competitive.

ENVIRONMENTAL PERSPECTIVE
By 2020, the ICT industry is expected to account for about 3% of global CO2 emissions worldwide. Of the current CO2 emissions, the contribution from the global telecommunication systems mobile, fixed, and communication devices is estimated to be around 230 million tons of CO2, or approximately 0.7 percent of global emissions. The rapid growth of the telecommunications industry means that it consumes a huge quantity of energy annually which continues to grow year on year. This coupled with rising energy costs and network growth are putting cost and carbon footprint at the top of telecommunications operators' agendas.

Telecommunications operators today face the challenge of meeting rising capacity demands, whilst at the same time reducing network energy consumption and carbon footprint As a regional telecommunications group, Axiata is aware of the need to reduce the environmental impact of its operations, to reduce ongoing costs and efficiently use precious resources. The Group has since 2009 launched its Green Technology programme, aimed at exploring new technologies, products and solutions that brings greater efficiency to reduce its ecological footprint. We want to reduce our impact on the environment, through network efficiency gains and modernisation. Over the years we have been deploying innovative solutions to help decouple growth in network traffic from emissions growth, delivering cost savings as well as to minimise environmental impact. Through network modernisation, there has been an impressive decrease of energy needed to produce data traffic, due to technology and product improvements. In 2011, the Group recorded 150.7 MWh energy savings and 99.4 tonnes CO2 emission reduction. Apart from maximising efficiency at the network level, other initiatives include at site level such as cooling, power management and increased focus on use of renewable energy sources such as wind and solar. This results in less equipment needed and lower energy consumption for the network to support the traffic. We incorporate environmental performance goals throughout our operations, seeking continuous improvement in selecting new equipment and technologies. Adoption of energy efficient technologies is a key part of our efforts to conserve energy and address the issue of climate change and alleviate the environmental impact of our business.

COMMUNITY PERSPECTIVE
Axiata is committed to helping the countries that we operate in achieve economic, environmental and social progress. We see ICT and telecommunications as enablers for development, opening up access to services that improve livelihoods and quality of life. Mobile connectivity further fuels economic growth, which is particularly vital for communities living at the base of the economic pyramid. Our OpCos are actively engaged in addressing the needs of the local communities they are in. We apply our technology and expertise, making a difference to the quality of life, and boosting local economies and communities.

Corporate Centre

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supply of information The Board regularly reviews reports on progress against financial objectives, business development and also receives regular reports and presentations on strategy and updates on mergers and acquisitions, investor relations, risks profiles and material litigation. regular reports are also provided by Board Committees on their deliberations and recommendations. The agenda and supporting papers are distributed in advance of all Board and Board Committee meetings to allow time for appropriate review and to facilitate full discussion at the meetings. Board meeting agenda and Board meeting papers which include, among others, comprehensive management reports, minutes of meetings, project proposals and supporting documents are targeted for dissemination to the directors at least 14 days and 7 days respectively prior to Board meetings in line with the Green Book. Presentations to the Board are prepared and delivered in a manner that ensures a clear and adequate presentation of the subject matter. The Board paper format includes an executive Summary which outlines the salient key points of matters to be deliberated. All issues raised, discussions, deliberations, decisions and conclusions including dissenting views made at Board meetings along with clear actions to be taken by responsible parties are recorded in the minutes. where the Board is considering a matter in which a director has an interest, the relevant director immediately discloses the interest and abstains from participating in any discussion or voting on the subject matter. The Board is constantly advised and updated on statutory and regulatory requirements pertaining to their duties and responsibilities. As and when the need arises, directors are also provided with ad-hoc reports, information papers and relevant training where necessary to ensure they are appraised on key business, operational, corporate, legal, regulatory and industry matters.

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