DiGi Telecommunications Sdn Bhd 201283-M T (603) 5721 1800Lot 30 Jalan Delima 1/3 F (603) 5721 1857Subang Hi-Tech Industrial Park E corpcom@digi.com.my40000 Shah AlamSelangor Darul EhsanMalaysia

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D i G i . C O M B E R H A D 4 2 5 1 9 0 - XA N N U A L R E P O R T 2 0 0 4 L A P O R A N T A H U N A N

DiGi AR 04 Cover 08/04/05 4:35hin Page 1

D i G i . C o m B e r h a d ( 4 2 5 1 9 0 - X ) 117

COVER RATIONALE

The cover reflects DiGi’s efforts to create meaningful connections between communities and their

rich texture of culture and heritage. This is captured in the traditional ikat design with its motifs

of interlinked people and buildings.

Our Aspiration.. .

To be the mobile communications leader in

creating experiences with a difference for our

customers and business partners through our

passion for success.”

Our Key Principles.. .

We have a passion for our customers

We value ideas and encourage initiative

We emphasise mutual trust and respect

We believe in the power of teamwork

We build partnerships for success

‘‘ PerakIpohLot C-01-04 No 2 Ground FloorPersiaran Greentown 3Greentown Business Centre30450 Ipoh, Perak

Negeri Sembilan

Seremban301, Taman AST70200 SerembanNegeri Sembilan

Sabah

Kota KinabaluLot 5/G3, Ground & 1st FloorsApi-Api Centre88000 Kota Kinabalu, Sabah

Sarawak

KuchingLot 2087, Block 10Bangunan Kueh Boon TeckJalan Tun Ahmad Zaidi Adruce93150 Kuching, Sarawak

MiriLot 938, Ground & 1st FloorsJalan POS, 98000 MiriSarawak

Sibu13, Ground & 1st FloorsLorong Kampung Datu 396000 Sibu, Sarawak

24-hour DiGi customer service line: 016-221 1800

DiGi.Com Berhad (425190-X)Lot 30, Jalan Delima 1/3Subang Hi-Tech Industrial Park40000 Shah Alam, Selangor

Mailing Address:P. O. Box 755140718 Shah Alam, SelangorTel: 03-5721 1800Fax: 03-5721 1857www.digi.com.my

Pahang

KuantanLot G22B & G23 (ll)Ground Floor, Berjaya MegamallJalan Tun Ismail25000 Kuantan

Penang

Pulau Tikus368-1-02, Jalan Burmah10350 Pulau TikusPulau Pinang

Seberang Jaya8, Ground FloorJalan Todak DuaPusat BandarBandar Seberang Jaya13700 Prai, Pulau Pinang

Beach Street29A Beach Street10200 Penang

Melaka

Melaka523, Taman Melaka Raya75000 Melaka

Johor

Johor Bahru6 & 8, Jalan Molek 1/12Taman Molek81100 Johor Bahru, Johor

Jalan Tun Abdul Razak64, Jalan Tun Abdul RazakSusur 180000 Johor Bahru, Johor

Batu Pahat37, Jalan KundangTaman Bukit Pasir83100 Batu Pahat, Johor

List of Operating Offices

Principal Place ofBusiness/Head Office

Lot 30, Jalan Delima 1/3Subang Hi-Tech Industrial Park40000 Shah Alam, SelangorTel: 03-5721 1800Fax: 03-5721 1857

Central OperatingOffices

Lot 5, Jalan Pemaju U1/15Hicom Glenmarie Industrial Park40150 Shah Alam, SelangorTel: 03-5721 1800Fax: 03-5721 1857

Lots 7 & 8, Jalan Delima 1/1Subang Hi-Tech Industrial Park40000 Shah Alam, SelangorTel: 03-5721 1800Fax: 03-5721 1857

Lots 28 & 29, Jalan Delima 1/3Subang Hi-Tech Industrial Park40000 Shah Alam, SelangorTel: 03-5721 1800Fax: 03-5721 1857

Regional OperatingOffices

Northern Region

62, 1st Floor, Jalan MayangPasir 1Off Jalan Mahsuri11950 Bayan Baru Pulau PinangTel: 04-641 2800Fax: 04-641 3800

Ipoh Sales OfficeC-G-2 Persiaran Greentown 3Greentown Business Centre 30450 Ipoh, Perak

Southern Region

6 & 8, Jalan Molek 1/12Taman Molek81100 Johor Bahru, JohorTel: 07-351 1800Fax: 07-352 8016

Eastern Region

3, Jalan Tun Ismail25000 Kuantan, PahangTel: 09-508 0071Fax: 09-508 0070

Sabah Region

Lot 36, Sedco Light Industrial EstateJalan Kilang, Kolombong, Inanam88450 Kota Kinabalu, SabahTel: 088-431 800Fax: 088-430 016

Sarawak Region

Lot 2087, Block 10, Bangunan Kueh Boon TeckJalan Tun Ahmad Zaidi Adruce93150 Kuching, SarawakTel: 082-421 800Fax: 082-427 597

DiGi Centres

Selangor

USJSubang Taipan, 19 & 21Jalan USJ 10/1A, Subang Jaya47610 Petaling Jaya, Selangor

SS224, Jalan SS2/6647300 Petaling Jaya, Selangor

Selayang Baru57, Jalan 2/3A, Pasar Borong SelayangOff Jalan Ipoh68100 Batu Caves, Selangor

Klang35 & 37Persiaran Sultan Ibrahim41300 Klang, Selangor

Kuala Lumpur

Pandan IndahM5A/13, Jalan Pandan Indah 4/1Taman Pandan Indah55100 Kuala Lumpur

KL PlazaLot G33-8, Ground Floor,179, KL PlazaJalan Bukit Bintang55100 Kuala Lumpur

Berjaya Times Square01-36, Berjaya Times Square, 1, Jalan Imbi ,55100 Kuala Lumpur

Corporate Directory

DiGi AR 04 Back Cover 08/04/05 4:35hin Page 1

04 DiGi in 2004

06 Corporate Information

08 Directors’ Profiles

14 Statement on Corporate Governance

20 Statement on Internal Control

23 Other Compliance Information

24 Audit Committee Report

28 Management Team

32 Group Financial Summary

38 Chairman’s Statement

46 CEO’s Statement

58 Corporate Social Responsibility

64 Financial Statements

102 List of Properties

104 Disclosure of Recurrent Related Party Transactions

106 Statement of Directors’ Shareholdings

107 Statistics on Shareholdings

109 Notice of Annual General Meeting

115 Form of Proxy

117 Corporate Directory

DiGi AR 04 08/04/05 4:11hin Page 1

Lion dancing goes back at least

2,000 years to a time of active

trade between West Asia and

China. As a mark of goodwill,

Persian ambassadors would make

gifts of exotic animals to the

Chinese Emperor. Among these

were lions. The regal beasts soon

acquired the reputation of being

able to ward off evil, and the lion

dance captures this belief. Lion

dancing came to Malaysia with

Chinese immigrants hundreds of

years ago.

In January 2005, DiGi unveiled a new phase of its

Corporate Social Responsibility programme, called

DiGi’s Amazing Malaysians. The programme aims to

increase awareness of, and preserve, the nation’s

natural, cultural, art, built and social heritage.

DiGi AR 04 08/04/05 4:11hin Page 2

DiGi is launching The Lion Dancer of Johor project in the third quarter, 2005

DiGi AR 04 08/04/05 4:11hin Page 3

Q1

DiGi.Com Berhad (DiGi) starts the year

with the launch of an innovative product

targeted at business and corporate

customers. discover™ business solutions,

introduced on January 2, comprises two

simple and convenient plans. Under

discover prime™, customers enjoy a flat

rate of RM0.20 per minute for calls to

mobile and fixed line numbers within

Malaysia, with a monthly RM50 fee.

discover classic™ offers a flat rate of

RM0.25 for calls and RM30 monthly fee.

In addition, both plans offer a 30%

discount on IDD and 016 calls. Itemised

billing is provided alongside SMS,

Voicemail, IDD, GPRS and WAP data.

Q2

DiGi makes national headlines on May

14 as the first operator to offer EDGE,

a high-speed mobile network, in the

Klang Valley. With browsing speeds of

up to 384 kbps, charged at GPRS rates,

customers can access large data files

from the Internet and other sources on

their mobiles.

On April 23, DiGi launches the

Online Prepaid Statement, which gives

prepaid customers the flexibility of

viewing their call details online. Another

innovation for prepaid customers is rolled

out on June 29, with RM10 reload

coupons with five-day validity.

In May, DiGi embarks on a nationwide

No One Covers You Like DiGi campaign to

inform customers of improved coverage

in most of populated Malaysia.

4 D i G i . C o m B e r h a d ( 4 2 5 1 9 0 - X )

DiGi in 2004

DiGi AR 04 08/04/05 4:11hin Page 4

D i G i . C o m B e r h a d ( 4 2 5 1 9 0 - X ) 5

Q3

Morten Lundal is appointed DiGi’s new

Chief Executive Officer on July 26,

replacing Tore Johnsen who is to head

Telenor’s mobile operation in Pakistan.

Riding on EDGE, DiGi introduces on

August 19 a first in Malaysia —MobileTV™

— in partnership with ntv7. The service

offers 24-hour live TV over EDGE-

enabled handsets. On the same day,

DiGi launches the Automatic Balance

Notification, allowing customers to

check their credit balance, account

status and tariff plan; perform reloads;

manage their Friends and Family™

numbers; and check the list of roaming

countries via a USSD menu browser.

Q4

This is a quarter of hellos and goodbyes.

On October 26, DiGi bids adieu to Erik

Aas, former Head of Mobile, who leaves

the company to take up his new position

as CEO of Grameenphone, Bangladesh;

while on November 15, we welcome

Johan Dennelind into our fold as Chief

Financial Officer. A restructuring of

the company takes place on October

28, in which the business divisions are

integrated into five main areas:

Technology, Marketing, Finance, Human

Resources and Corporate Affairs.

Meanwhile, on October 29, two

revolutionary prepaid products are

launched: Flexi e-Load™ and Talktime

Transfer™. Flexi e-Load™ gives customers

the flexibility, simplicity and convenience

to reload their prepaid accounts

electronically by any amount equivalent

to RM5 and above.

Talktime Transfer™ enables

customers to transfer talktime from one

to another.

DiGi AR 04 08/04/05 4:11hin Page 5

Board of Directors

Arve Johansen ChairmanTun Dato’ Seri Dr Lim Chong EuDato’ Ab. Halim Bin MohyiddinGunnar Johan BertelsenChristian Storm Also Alternate Director to Arve JohansenRagnar Holmen Korsaeth

Audit Committee

Dato’ Ab. Halim Bin Mohyiddin Chairman/Independent Non-Executive DirectorTun Dato’ Seri Dr Lim Chong Eu Independent Non-Executive DirectorChristian Storm Non-Independent Non-Executive Director

Nomination Committee

Christian Storm Chairman/Non-Independent Non-Executive DirectorTun Dato’ Seri Dr Lim Chong Eu Independent Non-Executive DirectorDato’ Ab. Halim Bin Mohyiddin Independent Non-Executive Director

Remuneration Committee

Arve Johansen Chairman/Non-Independent Non-Executive DirectorChristian Storm Non-Independent Non-Executive DirectorRagnar Holmen Korsaeth Non-Independent Non-Executive Director

Secretaries

Tai Yit Chan MAICSA No. 7009143Liew Irene MAICSA No. 7022609

Domicile and Country of Incorporation

Malaysia

Corporate Information

6 D i G i . C o m B e r h a d ( 4 2 5 1 9 0 - X )

DiGi AR 04 08/04/05 4:11hin Page 6

D i G i . C o m B e r h a d ( 4 2 5 1 9 0 - X ) 7

Registered Office

Level 7, Setia 115 Lorong DungunDamansara Heights50490 Kuala Lumpur

T. 03-2095 7188F. 03-2093 6325

Share Registrars

Berjaya Registration Services Sdn BhdLot C1-C3, Block C2nd Floor, KL Plaza179 Jalan Bukit Bintang55100 Kuala Lumpur

T. 03-2145 0533F. 03-2145 9702

Principal Bankers

Affin Bank BerhadAmMerchant Bank BerhadBanca Intesa S.p.A., Hong Kong BranchBank of America N.A., Labuan BranchBumiputra-Commerce Bank BerhadCALYON, Labuan BranchEON Bank BerhadFortis Bank S.A./N.V., SingaporeMalayan Banking BerhadNatexis Banques Populaires, Labuan BranchNordea Bank Sweden AB (publ)OCBC Bank (Malaysia) BerhadRHB Bank BerhadSociété Générale, Labuan BranchSvenska Handelsbanken AB (publ), SwedenThe Bank of East Asia, Limited Labuan BranchThe Bank of Nova Scotia BerhadThe Bank of Nova Scotia, Labuan Branch

Auditors

Messrs KPMGChartered AccountantsWisma KPMG Jalan DungunDamansara Heights50490 Kuala Lumpur

Stock Exchange Listing

Main Board of Bursa MalaysiaSecurities Berhad

Stock Short Name

DiGi (6947)

DiGi AR 04 08/04/05 4:11hin Page 7