Dialog Axiata : Quarterly Financial Report as of 31-12-2022

DIALOG AXIATA PLC

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED

31 DECEMBER 2022

Page 1

Report on Review of Condensed Consolidated Interim Financial Information To the Directors of Dialog Axiata PLC

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Dialog Axiata PLC ("the Company") and condensed consolidated interim statement of financial position of Dialog Axiata PLC and its subsidiaries ("the Group") as of 31 December 2022, and the related condensed statements of comprehensive income for the twelve months ended and 3 months ended 31 December 2022, changes in equity and cash flows for the twelve months ended 31 December 2022 period then ended and notes, comprising a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and presentation of this condensed interim financial information of the Company and condensed consolidated interim financial information of the Group in accordance with the Sri Lanka Accounting Standard 34 [LKAS 34] - Interim Financial Reporting. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of Review

We conducted our review in accordance with the Sri Lanka Standard on Review Engagements [SLSRE] 2410 - 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making of inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Sri Lanka Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information of the Company and the condensed consolidate interim financial information of the Group are not presented, in all material respects, in accordance with the Sri Lanka Accounting Standard 34 [LKAS 34] - Interim Financial Reporting.

COLOMBO

CHARTERED ACCOUNTANTS

10 February 2023

PricewaterhouseCoopers, P. O. Box 918, 100 Braybrooke Place, Colombo 2, Sri Lanka

T: [phone], 771 9838, F: [phone], www.pwc.com/lk

Partners D T S H Mudalige FCA, C S Manoharan FCA, Ms S Hadgie FCA, N R Gunasekera FCA, T U Jayasinghe FCA, H P V Lakdeva FCA, M D B Boyagoda FCA, Ms W D A S U Perera ACA, Ms L A C Tillekeratne ACA, K M D R P Manatunga ACA

PricewaterhouseCoopers is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

DIALOG AXIATA PLC

Statement of financial position

(all amounts in Sri Lanka Rupees thousands)

ASSETS

Non-current assets

Intangible assets

Contract costs assets

Property, plant and equipment

Right-of-use assets

Deferred tax asset

Investment in subsidiaries

Investment in associates

Other financial assets

Current assets

Inventories

Trade and other receivables

Other financial assets

Cash and cash equivalents

Total assets

EQUITY

Capital and reserves attributable to equity holders Stated capital

Reserves

Non-controlling interest

Total equity

LIABILITIES

Non-current liabilities

Borrowings

Contract liabilities

Deferred income

Lease liabilities

Other financial liabilities

Employee benefit payables

Provision for other liabilities

Deferred tax liability

Current liabilities

Trade and other payables

Borrowings

Other financial liabilities

Lease liabilities

Contract liabilities

Current income tax liabilities

Total liabilities

Total equity and liabilities

Net assets per share (Rs.)

Page 2

Group		Company
31 Dec 2022	31 Dec 2021	31 Dec 2022	31 Dec 2021
(Reviewed)	(Audited)	(Reviewed)	(Audited)
13,317,262	16,857,691	7,119,264	6,081,492
10,573,568	10,909,988	2,852,882	2,613,195
156,236,582	127,452,429	116,246,596	91,360,686
8,531,477	7,346,093	8,279,270	7,189,509
219,720	181,816	-	-
-	-	39,207,068	50,621,104
104,948	183,025	-	-
2,228,434	1,469,431	-	-
191,211,991	164,400,473	173,705,080	157,865,986
2,870,804	3,712,248	197,918	216,670
30,920,907	26,994,303	33,625,447	21,340,503
1,599,862	1,814,547	-	-
40,546,906	22,078,857	30,978,618	18,488,499
75,938,479	54,599,955	64,801,983	40,045,672
267,150,470	219,000,428	238,507,063	197,911,658
29,349,706	28,855,862	29,349,706	28,855,862
15,866,349	64,731,300	15,136,848	68,176,351
(66,107)	(72,275)	-	-
45,149,948	93,514,887	44,486,554	97,032,213
66,581,118	10,477,656	65,282,580	8,319,323
4,945,910	1,921,962	4,208,273	857,022
283,735	408,132	283,735	408,132
7,797,196	6,255,902	7,551,270	6,078,964
20,544	86,947	-	-
3,193,399	1,690,014	2,437,154	1,300,150
5,547,146	2,129,209	5,215,949	1,873,587
20,104	22,448	-	-
88,389,152	22,992,270	84,978,961	18,837,178
80,517,912	56,985,403	63,956,319	44,254,044
37,008,681	31,357,958	35,107,225	26,531,973
3,774,729	689,685	-	-
1,924,449	1,457,784	1,873,519	1,422,379
8,787,804	10,989,578	6,525,075	8,852,736
1,597,795	1,012,863	1,579,410	981,135
133,611,370	102,493,271	109,041,548	82,042,267
222,000,522	125,485,541	194,020,509	100,879,445
267,150,470	219,000,428	238,507,063	197,911,658
5.48	11.40	5.40	11.83

The notes on pages 8 to 15 form an integral part of these financial statements.

I certify that these financial statements have been prepared in compliance with the requirements of the Companies Act, No. 07 of 2007.

……………………………….......

Group Chief Financial Officer

Date: 10/02/2023

The Board of Directors is responsible for the preparation and presentation of these financial statements. Approved and signed for and on behalf of the Board of Directors.

…………………………	…………………
Director	Director
Date: 10/02/2023	Date: 10/02/2023

				Page 3
DIALOG AXIATA PLC
Statement of comprehensive income
(all amounts in Sri Lanka Rupees thousands)
	Group		Company
	Year ended 31 Dec	Year ended 31 Dec
	2022	2021	2022	2021
	(Reviewed)	(Audited)	(Reviewed)	(Audited)
Revenue	178,130,762	141,914,839	101,372,997	90,958,769
Direct costs	(117,947,759)	(80,261,683)	(52,523,333)	(42,028,347)
Gross profit	60,183,003	61,653,156	48,849,664	48,930,422
Distribution costs	(16,477,205)	(15,653,897)	(14,016,863)	(13,494,432)
Administrative costs	(39,847,190)	(22,318,503)	(40,261,413)	(18,396,568)
Net impairment losses on financial assets	(1,728,411)	(921,167)	(920,605)	(677,724)
Other income	438,230	680,416	253,362	454,450
Operating profit/ (loss)	2,568,427	23,440,005	(6,095,855)	16,816,148
Finance income	2,396,014	456,564	2,450,721	463,255
Finance costs	(5,308,623)	(2,171,042)	(5,010,147)	(1,945,330)
Net foreign exchange losses	(30,280,313)	(2,644,003)	(26,902,351)	(2,336,111)
Finance costs - net	(33,192,922)	(4,358,481)	(29,461,777)	(3,818,186)
Share of loss from associates - net of tax	(78,077)	(28,765)	-	-
(Loss) / profit before income tax	(30,702,572)	19,052,759	(35,557,663)	12,997,962
Income tax expense	(2,706,119)	(2,033,991)	(2,751,125)	(1,846,881)
(Loss) / profit for the period	(33,408,691)	17,018,768	(38,308,757)	11,151,081
Other comprehensive income
Items that will not be reclassified to profit or
loss
- changes in the fair value of equity investments
at fair value through other comprehensive
income, net of tax	30,550	(13,010)	-	-
- remeasurements of defined benefit obligations,
net of tax	(1,266,473)	102,539	(953,909)	73,229
Other comprehensive income for the period,
net of tax	(1,235,923)	89,529	(953,909)	73,229
Total comprehensive income for the period	(34,644,614)	17,108,297	(39,262,666)	11,224,310
(Loss) / profit for the period attributable to:
- owners of the Company	(33,387,921)	17,060,812	(38,308,757)	11,151,081
- non-controlling interest	(20,770)	(42,044)	-	-
Total comprehensive income for the period
attributable to:
- owners of the Company	(34,623,842)	17,151,777	(39,262,666)	11,224,310
- non-controlling interest	(20,772)	(43,480)	-	-
Earnings per share
- basic	(4.06)	2.08	(4.66)	1.36
- diluted	(4.04)	2.06	(4.63)	1.35

The notes on pages 8 to 15 form an integral part of these financial statements.

DIALOG AXIATA PLC

Statement of comprehensive income

(all amounts in Sri Lanka Rupees thousands)

Revenue

Direct costs

Gross profit

Distribution costs

Administrative costs

Net impairment (losses) / gain on financial assets Other income

Operating (loss) / profit

Finance income

Finance costs

Net foreign exchange gains / (losses)

Finance income / (costs) - net

Share of loss from associates - net of tax (Loss) / profit before income tax Income tax expense

(Loss) / profit for the period

Other comprehensive income

Items that will not be reclassified to profit or loss

• changes in the fair value of equity investments at fair value through other comprehensive income, net of tax
• remeasurement of defined benefit obligations, net of tax

Other comprehensive income for the period, net of tax

Total comprehensive income for the period

(Loss) / Profit for the period attributable to:

• owners of the Company
• non-controllinginterest

Total comprehensive income for the period attributable to:

• owners of the Company
• non-controllinginterest

Earnings per share

• basic
• diluted

Page 4

Group		Company
Three months ended 31 Dec	Three months ended 31 Dec
2022	2021	2022	2021
(Reviewed)	(Reviewed)	(Reviewed)	(Reviewed)
50,948,775	37,123,556	26,468,444	23,403,332
(35,026,796)	(20,554,072)	(14,363,016)	(10,748,375)
15,921,979	16,569,484	12,105,428	12,654,957
(4,523,301)	(5,246,529)	(3,865,974)	(4,672,442)
(19,978,605)	(5,946,549)	(24,225,553)	(4,664,984)
(463,032)	85,246	(185,352)	(32,013)
239,502	433,343	78,423	246,148
(8,803,457)	5,894,995	(16,092,928)	3,531,666
1,034,548	179,500	1,076,703	183,508
(2,270,238)	(709,233)	(2,202,741)	(620,575)
2,626,887	(307,018)	1,909,547	(168,322)
1,391,197	(836,751)	783,509	(605,389)
(16,539)	(15,277)	-	-
(7,428,799)	5,042,967	(15,309,419)	2,926,277
(868,080)	(475,920)	(918,816)	(421,431)
(8,296,879)	4,567,047	(16,228,235)	2,504,846

30,550	12,187	-	-
(1,266,473)	102,966	(953,909)	73,229
(1,235,923)	115,153	(953,909)	73,229
(9,532,802)	4,682,200	(17,182,144)	2,578,075
(8,291,307)	4,586,834	(16,228,235)	2,504,846
(5,572)	(19,787)	-	-
(9,527,228)	4,700,569	(17,182,144)	2,578,075
(5,574)	(18,369)	-	-
(1.01)	0.56	(4.67)	0.31
(1.01)	0.56	(4.67)	0.31

The notes on pages 8 to 15 form an integral part of these financial statements.