Page 0

DIALOG AXIATA PLC

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE FOURTH QUARTER ENDED

31 DECEMBER 2023
 Page 1

Deloitte Partners
100 Braybrooke Place
Colombo 2
Sri Lanka

Tel: +94 11 771 9700,

+94 11 771 9838
Fax: +94 11 230 7237
www.deloitte.com

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 at 31 December 2023, and the related condensed statements of
comprehensive income for the year and three (03) months period ended 31 December 2023, changes in
equity and cash flows for the year 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 condensed 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 consolidated interim financial
information of the Group are not prepared, in all material respects, in accordance with the Sri Lanka
Accounting Standard 34 [LKAS 34] - Interim Financial Reporting.

COLOMBO CHARTERED ACCOUNTANTS

16 February 2024

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

Regd. Office: P.O. Box 918, 100 Braybrooke Place, Colombo 02, Sri Lanka. Reg. No.: w/4179
 Page 2

DIALOG AXIATA PLC

Statement of financial position

(all amounts in Sri Lanka Rupees thousands) Group Company

31 December 31 December 31 December 31 December
2023 2022 2023 2022
(Reviewed) (Audited) (Reviewed) (Audited)
ASSETS
Non-current assets
Intangible assets 17,454,309 13,317,262 11,493,089 7,119,264
Contract costs assets 12,241,671 10,573,568 3,852,701 2,852,882
Property, plant and equipment 151,278,847 156,236,582 112,289,708 116,246,596
Right-of-use assets 8,312,349 8,531,477 8,100,888 8,279,270
Deferred tax asset 304,966 219,720 - -
Investment in subsidiaries - - 39,207,068 39,207,068
Investment in associates 34,585 104,948 - -
Other financial assets 2,967,502 2,228,434 - -
192,594,229 191,211,991 174,943,454 173,705,080
Current assets
Inventories 3,035,674 2,870,804 590,481 197,918
Trade and other receivables 47,534,230 30,920,907 35,872,078 33,625,447
Other financial assets 2,469,869 1,599,862 - -
Cash and cash equivalents 40,613,115 40,546,906 28,494,858 30,978,618
93,652,888 75,938,479 64,957,417 64,801,983
Total assets 286,247,117 267,150,470 239,900,871 238,507,063
EQUITY
Capital and reserves attributable to equity holders
Stated capital 29,349,706 29,349,706 29,349,706 29,349,706
Reserves 37,031,245 15,866,349 27,749,456 15,136,848
Non-controlling interest (44,189) (66,107) - -
Total equity 66,336,762 45,149,948 57,099,162 44,486,554
LIABILITIES
Non-current liabilities
Borrowings 67,674,317 66,581,118 63,626,373 65,282,580
Contract liabilities 5,701,768 4,945,910 4,602,154 4,208,273
Deferred income 350,828 283,735 350,828 283,735
Lease liabilities 7,871,095 7,797,196 7,645,323 7,551,270
Other financial liabilities 164,447 20,544 - -
Employee benefit payables 2,095,107 3,193,399 1,467,253 2,437,154
Provision for other liabilities 3,434,609 5,547,146 3,071,880 5,215,949
Deferred tax liability 201,982 20,104 - -
87,494,153 88,389,152 80,763,811 84,978,961
Current liabilities
Trade and other payables 66,786,599 80,517,912 49,714,487 63,956,319
Borrowings 55,091,099 37,008,681 44,818,512 35,107,225
Other financial liabilities 1,672,808 3,774,729 - -
Lease liabilities 777,596 1,924,449 738,978 1,873,519
Contract liabilities 6,667,964 8,787,804 5,487,863 6,525,075
Current income tax liabilities 1,420,136 1,597,795 1,278,058 1,579,410
132,416,202 133,611,370 102,037,898 109,041,548
Total liabilities 219,910,355 222,000,522 182,801,709 194,020,509
Total equity and liabilities 286,247,117 267,150,470 239,900,871 238,507,063
Net assets per share (Rs.) 8.04 5.48 6.92 5.40
The notes on pages 8 to 14 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: 16 February 2024
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: 16 February 2024 Date: 16 February 2024
 Page 3

DIALOG AXIATA PLC

Statement of comprehensive income

(all amounts in Sri Lanka Rupees thousands) Group Company

Year ended 31 December Year ended 31 December
2023 2022 2023 2022
(Reviewed) (Audited) (Reviewed) (Audited)

Revenue 187,813,228 178,130,762 102,932,077 101,372,997

Direct costs (122,054,105) (117,947,759) (54,221,673) (52,523,333)

Gross profit 65,759,123 60,183,003 48,710,404 48,849,664

Distribution costs (18,001,764) (16,477,205) (15,145,873) (14,016,863)

Administrative costs (26,602,505) (39,847,190) (21,708,674) (40,261,413)

Net impairment losses on financial assets (898,845) (1,728,411) (589,318) (920,605)

Other income 617,525 438,230 135,239 253,362

Operating profit 20,873,534 2,568,427 11,401,778 (6,095,855)

Finance income 1,979,588 2,396,014 2,196,946 2,450,721

Finance costs (10,051,168) (5,308,623) (8,878,602) (5,010,147)

Net foreign exchange gain / (loss) 10,213,517 (30,280,313) 9,991,313 (26,902,351)

Finance income / (costs) - net 2,141,937 (33,192,922) 3,309,657 (29,461,777)

Share of loss from associates - net of tax (70,363) (78,077) - -

Profit / (loss) before income tax 22,945,108 (30,702,572) 14,711,435 (35,557,632)

Income tax expense (2,832,251) (2,706,119) (2,713,480) (2,751,125)

Profit / (loss) for the year 20,112,857 (33,408,691) 11,997,955 (38,308,757)

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 251,292 30,550 - -
- remeasurements of defined benefit obligations,
net of tax 984,115 (1,266,473) 773,514 (953,909)
Other comprehensive income for the period,
net of tax 1,235,407 (1,235,923) 773,514 (953,909)

Total comprehensive income for the period 21,348,264 (34,644,614) 12,771,469 (39,262,666)

Profit / (loss) for the period attributable to:

- owners of the Company 20,124,094 (33,387,921) 11,997,955 (38,308,757)
- non-controlling interest (11,237) (20,770) - -

Total comprehensive income for the period

attributable to:
- owners of the Company 21,342,511 (34,623,842) 12,771,469 (39,262,666)
- non-controlling interest 5,753 (20,772) - -

Earnings / (loss) per share

- basic 2.44 (4.06) 1.45 (4.66)
- diluted 2.44 (4.04) 1.45 (4.63)

The notes on pages 8 to 14 form an integral part of these financial statements.

 Page 4

DIALOG AXIATA PLC

Statement of comprehensive income

(all amounts in Sri Lanka Rupees thousands)

Group Company
Three months ended 31 Three months ended 31
December December
2023 2022 2023 2022
(Reviewed) (Audited) (Reviewed) (Audited)

Revenue 43,390,492 50,948,775 26,314,419 26,468,444

Direct costs (26,402,413) (35,026,796) (13,571,030) (14,363,016)

Gross profit 16,988,079 15,921,979 12,743,389 12,105,428

Distribution costs (4,228,502) (4,523,301) (3,505,035) (3,865,974)

Administrative costs (5,949,158) (19,978,605) (5,330,378) (24,225,553)

Net impairment losses on financial assets (133,269) (463,032) (142,810) (185,352)

Other income 254,547 239,502 (24,471) 78,423

Operating profit 6,931,697 (8,803,457) 3,740,695 (16,093,028)

Finance income 420,041 1,034,548 463,554 1,076,703

Finance costs (828,506) (2,270,238) (494,954) (2,202,641)

Net foreign exchange (losses) / gain (469,590) 2,626,887 (767,815) 1,909,547

Finance (costs) / income - net (878,055) 1,391,197 (799,215) 783,609

Share of loss from associates - net of tax (19,206) (16,539) - -

Profit before income tax 6,034,436 (7,428,799) 2,941,480 (15,309,419)

Income tax expense (768,905) (868,080) (654,585) (918,816)

Profit / (loss) for the period 5,265,531 (8,296,879) 2,286,895 (16,228,235)

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 251,292 30,550 - -
- remeasurements of defined benefit obligations,
net of tax 984,115 (1,266,473) 773,514 (953,909)
Other comprehensive income for the period,
net of tax 1,235,407 (1,235,923) 773,514 (953,909)

Total comprehensive income for the period 6,500,938 (9,532,802) 3,060,409 (17,182,144)

Profit / (loss) for the period attributable to:

- owners of the Company 5,266,746 (8,291,307) 2,286,895 (16,228,235)
- non-controlling interest (1,215) (5,572) - -

Total comprehensive income for the period

attributable to:
- owners of the Company 6,485,163 (9,527,228) 3,060,409 (17,182,144)
- non-controlling interest 15,775 (5,574) - -

Earnings / (Loss) per share

- basic 0.64 (1.01) 0.28 (1.97)
- diluted 0.64 (1.01) 0.28 (1.97)

The notes on pages 8 to 14 form an integral part of these financial statements.

 Page 5

DIALOG AXIATA PLC

Consolidated statement of changes in equity

(all amounts in Sri Lanka Rupees thousands)

Attributable to owners of the

Company
Non-
Stated controlling
capital Reserves interest Total

Balance at 1 January 2023 29,349,706 15,866,349 (66,107) 45,149,948

Profit / (loss) for the period - 20,124,094 (11,237) 20,112,857

Other comprehensive income - 1,218,417 16,990 1,235,407

Total comprehensive income for the period - 21,342,511 5,753 21,348,264

Transactions with non-controlling interest - (18,754) 16,165 (2,589)

Employee share scheme - value of employee

services - (158,861) - (158,861)

Balance at 31 December 2023 29,349,706 37,031,245 (44,189) 66,336,762

Balance at 1 January 2022 28,855,862 64,731,300 (72,275) 93,514,887

Adjustment for surcharge tax - (3,819,733) - (3,819,733)

Adjusted balance at 1 January 2022 28,855,862 60,911,567 (72,275) 89,695,154

Loss for the period - (33,387,921) (20,770) (33,408,691)

Other comprehensive income - (1,235,921) (2) (1,235,923)

Total comprehensive income for the period - (34,623,842) (20,772) (34,644,614)

Transactions with non-controlling interest - (18,121) 26,940 8,819

Employee share scheme - value of employee

services - 259,342 - 259,342

Dividends to equity holders - (10,168,753) - (10,168,753)

Transfer from share-based payment reserve

upon vesting 493,844 (493,844) - -

Balance at 31 December 2022 29,349,706 15,866,349 (66,107) 45,149,948

The notes on pages 8 to 14 form an integral part of these financial statements.

 Page 6

DIALOG AXIATA PLC

Company statement of changes in equity

(all amounts in Sri Lanka Rupees thousands)

Attributable to owners of the Company

Stated capital Reserves Total

Balance at 1 January 2023 29,349,706 15,136,848 44,486,554

Profit for the period - 11,997,955 11,997,955

Other comprehensive income - 773,514 773,514

Total comprehensive income for the period - 12,771,469 12,771,469

Employee share scheme - value of employee services - (158,861) (158,861)

Balance at 31 December 2023 29,349,706 27,749,456 57,099,162

Balance at 1 January 2022 28,855,862 68,176,351 97,032,213

Adjustment for surcharge tax - (3,373,582) (3,373,582)

Adjusted balance at 1 January 2022 28,855,862 64,802,769 93,658,631

Loss for the period - (38,308,757) (38,308,757)

Other comprehensive income - (953,909) (953,909)

Total comprehensive income for the period - (39,262,666) (39,262,666)

Employee share scheme – value of employee services - 259,342 259,342

Dividends to equity holders - (10,168,753) (10,168,753)

Transfer from share-based payment reserve upon vesting 493,844 (493,844) -

Balance at 31 December 2022 29,349,706 15,136,848 44,486,554

The notes on pages 8 to 14 form an integral part of these financial statements.

 Page 7

DIALOG AXIATA PLC

Statement of cash flows

(all amounts in Sri Lanka Rupees thousands)

Group Company
31 December 31 December
2023 2022 2023 2022
(Reviewed) (Audited) (Reviewed) (Audited)
Cash flows from operating activities

Cash generated from operations 32,630,701 63,281,338 32,010,594 38,149,883

Interest received 3,247,678 1,961,857 2,689,155 1,523,053
Interest paid (10,465,558) (2,488,345) (9,041,367) (1,897,080)
Income taxes paid (3,124,515) (5,976,206) (3,000,198) (5,524,270)
Employee benefits obligations paid (962,438) (125,899) (722,416) (98,134)

Net cash inflow from operating activities 21,325,868 56,652,745 21,935,768 32,153,452

Cash flows from investing activities

Purchase of property, plant and equipment (37,702,315) (56,803,994) (29,977,498) (44,705,685)

Purchase of intangible assets (6,277,949) (3,038,639) (6,214,038) (2,216,730)
Proceeds from sale of property, plant and equipment 118,480 8,572 117,659 8,572
Net cash flows used in other financial assets - (238,343) - -
Acquisition of subsidiary, net of cash (used) /
acquired - - - (188,541)

Net cash outflow from investing activities (43,861,784) (60,072,404) (36,073,877) (47,102,384)

Cash flows from financing activities

Repayment of borrowings (44,132,221) (40,303,697) (40,600,014) (39,349,884)

Proceeds from borrowings 45,709,617 74,159,017 34,182,500 74,143,017
Principal element of lease payment (2,738,678) (2,802,628) (2,659,559) (1,245,491)
Proceeds from share issue - non controlling interest - 5,132 - -
Dividends paid to ordinary shareholders - (10,168,753) - (10,168,753)

Net cash (outflow) / inflow from financing activities (1,161,282) 20,889,071 (9,077,073) 23,378,889

Net (decrease) / increase in cash and cash equivalents (23,697,198) 17,469,412 (23,215,182) 8,429,957

Movement in cash and cash equivalents

At beginning of the period 32,241,475 14,969,061 23,588,257 15,322,265

(Decrease) / increase (23,697,198) 17,469,412 (23,215,182) 8,429,957
Effect of exchange rate changes (680,953) (196,998) (463,553) (163,965)
At end of the period 7,863,324 32,241,475 (90,478) 23,588,257

Cash and cash equivalents at the end of the financial period consist of the following:

Group Company
31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022

Cash in hand and at bank 40,613,115 40,546,906 28,494,858 30,978,618

Bank overdrafts (32,749,791) (8,305,431) (28,585,336) (7,390,361)

7,863,324 32,241,475 (90,478) 23,588,257

The notes on pages 8 to 14 form an integral part of these financial statements.

 Page 8

DIALOG AXIATA PLC

Notes to the condensed consolidated interim financial statements

(all amounts in the notes are in Sri Lanka Rupees thousands unless otherwise stated)

1 General information

Dialog Axiata PLC (‘the Company’) and its subsidiaries (together ‘the Group’) provide communication services (mobile, fixed,
broadband, international gateway services), telecommunication infrastructure services (tower infrastructure and transmission
services), media (digital television services based on multiple media - satellite, cable, terrestrial), digital services including but
not limited to digital commerce (mobile and eCommerce), electronic payments (including mobile payment), digital health,
education, navigation and enterprise services and financial services, software solutions, data center services, manpower
services, provision of Information Technology and venture capital investment activities.

Dialog Axiata PLC is a public limited liability company incorporated and domiciled in Sri Lanka and is listed on the Colombo
Stock Exchange since 28 July 2005. The registered office of the Company is located at 475, Union Place, Colombo 2.

2 Basis of preparation

The condensed interim financial statements for the period ended 31 December 2023 of the Company and the Group have
been prepared in accordance with Sri Lanka Accounting Standard LKAS 34, ‘Interim Financial Reporting’. The condensed
consolidated interim financial statements should be read in conjunction with the audited financial statements for the year
ended 31 December 2022.

3 Segment information

Operating segments are presented in a manner consistent with the internal reporting provided to chief operating decision
makers.

• The segment results for the period ended 31 December 2023 are as follows:

Fixed telephony
Mobile and broadband Television Elimination
operation operation operation /Adjustment Group

Total segmental revenue 119,138,149 73,617,165 12,351,969 - 205,107,283

Inter-segment revenue (11,464,567) (5,723,081) (106,407) - (17,294,055)

Revenue from external customers 107,673,582 67,894,084 12,245,562 - 187,813,228

Segment operating profit for the period 12,763,965 6,700,838 123,505 1,285,226 20,873,534

Finance income - net 2,141,937

Share of loss from associate - net of tax (70,363)
Profit before income tax 22,945,108
Income tax expense (2,832,251)
Profit for the period 20,112,857

• Other segment items included in the statement of comprehensive income are as follows:

Fixed telephony
Mobile and broadband Television Elimination
operation operation operation /Adjustment Group

Depreciation, amortization
and impairment 27,262,871 11,105,349 2,889,631 - 41,257,851
 Page 9

DIALOG AXIATA PLC

Notes to the condensed consolidated interim financial statements (Continued)

3 Segment information (Continued)

• The segment assets and liabilities at 31 December 2023 and capital expenditure for the period then ended are as
follows:

Fixed telephony
Mobile and broadband Television Elimination
operation operation operation /adjustment Group

Assets 256,083,629 63,372,789 12,641,343 (36,882,057) 295,215,704

Inter-segment assets (6,250,744) (2,711,592) (6,251) - (8,968,587)

Total assets 249,832,885 60,661,197 12,635,092 (36,882,057) 286,247,117

Liabilities 195,610,580 19,062,987 14,638,834 - 229,312,401

Inter-segment liabilities (5,214,145) (2,286,203) (1,901,698) - (9,402,046)

Total liabilities 190,396,435 16,776,784 12,737,136 - 219,910,355

Capital expenditure 26,445,242 6,701,220 239,086 - 33,385,548

• The segment results for the period ended 31 December 2022 are as follows:

Fixed telephony
Mobile and broadband Television Elimination
operation Operation operation /adjustment Group

Total segmental revenue 113,253,121 68,793,923 12,047,718 - 194,094,762

Inter-segment revenue (10,924,466) (4,942,777) (96,757) - (15,964,000)
Revenue from external
customers 102,328,655 63,851,146 11,950,961 - 178,130,762

Segment operating (loss) /

profit for the period (5,407,754) 3,423,867 (2,150,414) 6,702,728 2,568,427

Finance costs - net (33,192,922)

Share of loss from associates - net of tax (78,077)
Loss before income tax (30,702,572)
Income tax expense (2,706,119)
Loss for the period (33,408,691)

• Other segment items included in the statement of comprehensive income are as follows:
Fixed telephony
Mobile and broadband Television Elimination
operation operation operation /adjustment Group

Depreciation, amortisation
and impairment 30,233,062 11,426,871 2,904,571 - 44,564,504
 Page 10

DIALOG AXIATA PLC

Notes to the condensed consolidated interim financial statements (Continued)

3 Segment information (Continued)

• The segment assets and liabilities at 31 December 2022 and capital expenditure for the period then ended are
as follows:

Fixed telephony
Mobile and broadband Television Elimination
operation operation operation /adjustment Group

Assets 252,828,100 61,068,807 9,470,244 (44,426,632) 278,940,519

Inter-segment assets (10,614,546) (1,169,340) (6,163) - (11,790,049)

Total assets 242,213,554 59,899,467 9,464,081 (44,426,632) 267,150,470

Liabilities 205,827,358 22,647,346 12,127,686 - 240,602,390

Inter-segment liabilities (9,644,854) (8,019,988) (937,026) - (18,601,868)

Total liabilities 196,182,504 14,627,358 11,190,660 - 222,000,522

Capital expenditure 49,869,731 12,773,250 505,639 - 63,148,620

4 Reserves

Group Company
31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022

Attributable to the owners of the Company

Retained earnings 36,776,686 15,704,248 27,749,456 14,978,014
Fair value through other comprehensive
income (“FVOCI”) reserve 254,559 3,267 - -
Share-based payments reserve - 158,834 - 158,834

Attributable to the non-controlling interest

Non-controlling interest (44,189) (66,107) - -
36,987,056 15,800,242 27,749,456 15,136,848

5 Seasonal or cyclical factors

The operations of the Group were not significantly affected by any seasonal or cyclical factors.

6 Significant unusual events or transactions affecting assets, liabilities, equity, net income or cash flows

In the current year, the Sri Lankan economy demonstrates positive development, marking a significant turnaround from
challenges stemming from the COVID-19 pandemic, tax cuts, and substantial sovereign debt repayments. Supported by vital
measures, including financial assistance from the International Monetary Fund (IMF), the Sri Lankan economy shows clear
signs of recovery.

Efforts to stabilize the economy have led to a strengthened exchange rate, marking a favorable departure from the
depreciation experienced in the previous year. Official United States Dollar (USD) reserve assets have shown significant
improvement, rising from USD 1,896 million as of December 31, 2022, to USD 4,400 million by the end of 2023.Sri Lankan
Rupee ("LKR") has displayed resilience against the USD, contributing to a more stable forex environment. The LKR
appreciated by 11% against the USD by December 31, 2023 as compared to 31 December, 2022, resulting in a forex gain of
Rs. 10.2 billion (compared to the 2022 forex loss of Rs. 30.3 billion) and Rs. 9.9 billion (compared to the 2022 forex loss of
Rs. 26.9 billion) for the Group and the Company, respectively.

Challenges faced in the previous year, such as inflation, higher interest rates, increased taxes, power cuts, and shortages in
essential supplies, have been successfully mitigated. Government actions, coupled with international support, have fostered a
more conducive business environment. The Central Bank of Sri Lanka (CBSL) reduced the Standing Deposit Facility Rate
(SDFR) and the Standing Lending Facility Rate (SLFR) by 100 basis points each in October and November 2023.
Consequently, the SDFR and SLFR rates reached 9.00% and 10.00%, respectively, while prime lending rates dipped below
12%. The CBSL has indicated a pause in any additional monetary policy easing in the near term, allowing market interest
rates to fall further in line with easing measures.
 Page 11

DIALOG AXIATA PLC

Notes to the condensed consolidated interim financial statements (Continued)

6 Significant unusual events or transactions affecting assets, liabilities, equity, net income or cash flows (Continued)

Our working capital cycle, previously impacted by a negative business climate and liquidity crisis in USD markets, has shown
improvement. Proactive measures by the board, including securing additional funding and reducing USD exposure in the
balance sheet, have played a crucial role in ensuring smooth operations and business continuity. While acknowledging
positive changes, we remain vigilant, monitoring the evolving economic landscape. The future impact on our business hinges
on the sustained recovery of the Sri Lankan economy, consumer spending patterns, and the overall resurgence of the
country's enterprises. Recognizing external factors' influence on operations, the board remains committed in taking proactive
steps to navigate potential challenges.

7 Estimates

The preparation of condensed consolidated interim financial statements requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income
and expenses. Actual results may differ from these estimates.

There were no changes in estimates and assumptions used in prior financial periods that may have a material effect in the
current quarter and for the financial period to date.

In preparing the condensed consolidated interim financial statements, the significant judgments made by the management in
applying the Group’s accounting policies and the sources of estimates uncertainty are consistent with the audited financial
statements for the year ended 31 December 2022.

8 Stated capital

Stated capital of the Company consists of 8,247,640,305 ordinary shares.

9 Earnings per share

Diluted earnings per share have been adjusted to reflect the potential dilutive effect of additional ordinary shares for the
reporting and comparative periods, assuming that all dilutive potential ordinary shares were converted through LTIP.

10 Market price per share

For the three months ended 31 December 2023 2022

Rs. Rs.

- Highest 11.00 9.80

- Lowest 8.70 7.90
- Last traded 9.00 8.50

11 Directors’ shareholdings

The details of shares held directly by the Directors and their spouses as at 31 December 2023 are as follows:

Number
of shares

Dr. Hansa Wijayasuriya 2,408,910

Mr. Supun Weerasinghe 4,260,200

None of the Directors and their spouses other than those disclosed above directly held any shares in the Company.
 Page 12

DIALOG AXIATA PLC

Notes to the condensed consolidated interim financial statements (Continued)

12 Twenty largest shareholders of the Company

Name of Shareholders No. of shares % Holding

1 Axiata Investments (Labuan) Limited 6,785,252,765 82.27%
2 Employees Provident Fund 237,424,082 2.88%
3 BBH Luxfidelity Funds - Pacific F 147,311,909 1.79%
4 CITI Bank New York S/A Norges Bank Account 2 123,779,336 1.50%
5 SSBT-Sunsuper PTY. LTD. as Trustee for Sunsuper Supperannuation Fund 87,288,612 1.06%
6 Citibank Hong Kong S/A Hostplus Pooled Superannuation Trust 84,476,152 1.02%
7 BBH - Fidelity Funds 53,560,648 0.65%
8 Employees Trust Fund Board 49,134, 030 0.60%
9 J.B. Cocoshell (Private) Limited 41,980,399 0.51%
10 JPMCB NA - Fidelity Asian Values PLC 38,530,079 0.47%
11 Northern Trust Company S/A Hosking Global Fund Plc 36,393,681 0.44%
12 Invenco Capital (Private) Limited 30,631,240 0.37%
13 Caceis Bank Luxembourg Branch 26,206,391 0.32%
14 Mr. D P Pieris 22,496,254 0.27%
15 SSBT-Global Macro Capital Opportunities Portfolio 15,839,081 0.19%
16 Hatton National Bank PLC - Capital Alliance Quantitative Equity 15,256,536 0.18%
17 Union Assurance PLC - Universal Life Fund 14,312,320 0.17%
18 BNYM Re-Terra Global Opportunity Fund, L.P 13,644,813 0.17%
19 Deutsche Bank AG AS Trustee for JB Vantage Value Equity Fund 11,143,441 0.14%
20 Mercantile Investment and Finance PLC 9,300,000 0.11%

13 Public shareholdings

Information pertaining to public shareholding is as follows:

31 Dec 2023 31 Dec 2022

Public holding percentage 17.65% 17.65%

Number of public shareholders 23,039 23,700
Float adjusted market capitalisation (Rs.) 13,101,465,870 12,373,606,655

The Company is compliant with the Minimum Public Holding requirement under Option 1 of Rule 7.13.i(a) of the Listing Rules
of the Colombo Stock Exchange.

14 Effect of changes in composition of the Group

a) Dialog Network Services (Private) Limited (‘DNS”)

On 22 December 2023, DNS, a wholly owned subsidiary of Dialog Axiata PLC (“Dialog”), issued 5,699,925 new ordinary
shares of LKR 10/- each to Dialog in relation to the conversion of intercompany payables recorded in the books, provided
by Dialog as the parent company, totalling to LKR 56,999,250. This share issue has not changed the composition of the
Group.

b) Dialog Axiata Digital Innovation Fund (Private) Limited

Dialog Axiata Digital Innovation Fund (Private) Limited (‘DADIF’), a subsidiary of Digital Holdings Lanka (Private) Limited
(“DHL”), redeemed 34,000 of its preference shares in respect of Fund 1 on 28 December 2023, out of which 31,193 shares
were redeemed from the preference shares held by DHL, while the remaining were redeemed from individual shareholders.

Other than disclosed above there has not been a change in the composition of the Group which was disclosed in the reviewed
financial statements for the quarter ended 30 September 2023.
 Page 13

DIALOG AXIATA PLC

Notes to the condensed consolidated interim financial statements (Continued)

15 Financial instruments measured at fair value

Measurement criteria and the fair value

Level 1 Level 3 Total
Note Rs.000 Rs.000 Rs.000
31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2023 2022 2023 2022 2023 2022
Financial assets

Financial assets at fair value through profit or loss

(FVTPL)
- Investment in quoted equities (a) 2,466 2,865 - - 2,466 2,865
- Investment in unquoted equities (a) - - 763,685 477,189 763,685 477,189

Financial assets at fair value through other

comprehensive income (FVOCI)
- Investment in unquoted equities (b) - - 565,685 205,847 565,685 205,847

The Group measures the financial instruments based on published price quotations (Level 1), market approach valuation
technique (Level 2) with inputs of valuation technique such as interest rates and yield curves observable at commonly quoted
intervals; implied volatilities; and credit spreads that are observable directly or indirectly and valuation technique with
unobservable inputs (Level 3) at the end of the financial reporting period.

(a) Carrying value of financial assets at FVTPL at the end of the financial reporting period represents the investments in
quoted equity investments by Dialog Finance PLC and investment in unquoted equity investments by Dialog Axiata Digital
Innovation Fund (Private) Limited.

(b) Carrying value of financial assets at FVOCI represents the fair value of the investment in shares in the Credit Information
Bureau of Sri Lanka by Dialog Finance PLC and investment in unquoted equity investments by Dialog Axiata Digital
Innovation Fund (Private) Limited.

16 Cash and cash equivalents

Cash and cash equivalents of the Group also include restricted cash deposited in the following financial institutions:
31 Dec 2023 31 Dec 2022

Hatton National Bank PLC, amount deposited in custodian accounts to facilitate Ez cash
operation 806,000 610,000
Margin requirements against imports on Documents against Acceptance terms 18,750 444,263
People’s Bank, amount deposited in settlement account to facilitate NFC Travel card value - 64,390
824,750 1,118,653

17 Revenue from contracts with customers

Group Company
31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022

Mobile operation 107,673,582 102,328,655 102,932,077 101,372,997

Fixed telephony and broadband operation 67,894,084 63,851,146 - -
Television operation 12,245,562 11,950,961 - -
187,813,228 178,130,762 102,932,077 101,372,997

Group Company
Timing of revenue recognition 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022

At a point in time 7,212,048 680,532 64,903 58,093

Over time 180,601,180 177,450,230 102,867,174 101,314,904
187,813,228 178,130,762 102,932,077 101,372,997
 Page 14

DIALOG AXIATA PLC

Notes to the condensed consolidated interim financial statements (Continued)

18 Valuation of property, plant and equipment

The Company and the Group do not adopt a revaluation policy on its property, plant and equipment.

19 Donations

The total donations made by the Company and its subsidiaries during the year ended 31 December 2023 amounted to
Rs.89.92million (2022 - Rs. 144.96 million).

Group Company
Donation 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022

Manudam Mehewara - 100,000,000 - 100,000,000

Ratmalana Audiology Centre 10,564,583 12,560,617 10,564,583 12,560,617
Nenasa & SMART School 61,728,535 15,577,154 61,728,535 15,577,154
Others 17,623,019 16,818,636 17,623,019 16,818,636
89,916,137 144,956,407 89,916,137 144,956,407

20 Contingent liabilities

In August 2008, Sri Lanka Customs (‘SLC’) detained a shipment of CDMA Customers’ Premises Equipment (‘CPE’) belonging
to Dialog Broadband Networks (Private) Limited (‘DBN’) and commenced an investigation into the eligibility of these items
falling under the duty exemptions granted under the terms and conditions of the agreement with the Board of Investment of Sri
Lanka. The shipment was cleared by DBN upon submitting bank guarantees and thereafter subsequent shipments of CPE
were cleared by paying duty 'Under Protest'. SLC commenced an inquiry into this matter on 30 January 2009 which was
temporarily suspended upon a proposed settlement by the Secretary to the Treasury in May 2010. However, SLC took steps to
continue with the inquiry. Inquiry was held on several dates and the last date being 9 September 2016, however the inquiry
was not concluded on this date. On 11 April 2018, DBN was served with an ‘Order’ dated 6 April 2018 by SLC imposing a
mitigated monetary forfeiture of Rs. 1,626,622,200. DBN has instituted legal action challenging the order made by SLC in the
Court of Appeal under Case No: CA (Writ) 166/2018. The matter was supported on 28 November 2018 and notices were
issued on the respondents.

Thereafter, SLC filed objections on 15 February 2019 as directed by the Courts. The case was fixed for argument on several
dates, the last date being 26 October 2022. The matter has been refixed for argument on 14 March 2024.

Except for disclosed above there has not been a significant change in the nature of the contingent liabilities, which were
disclosed in the audited financial statements for the year ended 31 December 2022.

21 Capital commitments

Capital expenditure contracted for as at the statement of financial position date but not yet incurred consists of Rs.
6,410,499,630 (31.12.2022 - Rs. 9,599,006,047) and Rs. 4,278,650,943 (31.12.2022 - Rs. 6,077,476,618) of the Group and
the Company respectively.

22 Events after the reporting period

The Board of Directors has proposed a final dividend of Rs.1.34 per share amounting to Rs. 11,051,838,008.70 for the
financial year 2023, to be declared subject to the approval of the shareholders at the Annual General Meeting.