1H 2010 RESULTS

23 August 2010

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preparing the presentation. However, the Company’s forecasts presented in this presentation may vary from actual financial results, and these

variations may be material and, accordingly, neither the Company nor its directors or officers can give any assurance that the forecast

performance in the forecasts or any forward-looking statement contained in this presentation will be achieved. Details of the forecasts and the

assumptions on which they are based are set out in the presentation.

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Disclaimer

Performance Overview

Financial review

Operating highlights

Concluding remarks

3

4

Key Highlights 1H 2010

Growing revenue of +1% YoY due to continued momentum in data and internet as well as trend-shift in voice as a result of

slower decline in voice usage

Normalised EBITDA margin at 32.7% slightly below 2010 Group target of 33% due to planned spending for UniFi launch and roll-out

Successful roll-out of UniFi to additional 18 exchanges with orders of more than 12,000

Strong increase in Broadband subscriber base after optimized product portfolio and improved go-to-market strategy

Strong cash flow generation of RM954m due to tight capex management

Continued focus on shareholder returns and capital management, dividend policy commitment reflected in interim dividend of 13.0sen

less 25% tax to be paid to shareholders in September 2010

Operating revenue increased by 1% YoY to RM4,276m in 1H 2010

EBITDA of RM1,405m lower compared to last year mainly due to planned UniFi (HSBB) expenses. EBITDA margin of 32.4%1 whilst on Normalised basis at 32.7% in-line with 2010 target

BAU capex of RM336m (7.9% of revenue), improved by 35.4% YoY due to enhanced capital efficiency; HSBB capex of RM437m (RM428m in 1H 2009)

Strong free cash flow of RM954m (+19% YoY) and cash position of RM3.601bn from RM2.821bn last year

High growth of internet and data revenue (up 8.6% and 11.5% YoY respectively), and a clear trend-shift in voice revenue due to slower decline in voice usage (-6.6% in 1H 2010 as compared to -8.8% in 1H 2009)

Accelerating growth of broadband subscribers by +12.5% YoY with 110k net adds in 1H 2010 as compared to 90k in 1H 2009

Increasing total fixed-line customer base to 4.33m compared to 4.32m in 1H 2009

EBITDA margin calculated based on Normalized EBITDA and Operating revenues plus other operating Income1 5

Financial Performance

Key Operating Indicators

Financial Highlights

Successfully launched UniFi in March

More than 500,000 premises already passed by mid August

On-track to achieve 750,000 premises by end of 2010

Installed base of more than 9,200 customers and 12,000 orders by 19 August

Customer satisfaction index of 86% since launch

6

UniFi updateSuccessful roll-out of UniFi to additional 18 exchanges with more than 9,200 installations

2007 2008

Capital Expenditure, excluding HSBB1

Cash Balance

Total Debt

RM bnOur capital management approach is guided by two major principles :

Striving to optimize capital productivity and ROIC

Creating shareholder value with strong commitment to dividend policy

1.8 1.4 1.2

1 BAU Capex only (excludes HSBB Capex)2 Credit ratings by Standard & Poors (S&P) and Rating Agency Malaysia (RAM)3 Ordinary Dividend* Based on RM700mn dividend payout @ RM3.35

6.87.0

6.7

2.2 2.13.5

21.2 16.7 14.1

Capex / Revenue ratio( %)

2009 1H10

0.3

7.9

6.5

Credit Rating2 A-/AAA A-/AAA A-/AAA A-/AAA

3.6

7

Active Capital Management Approach Strong cash flow generation due to tight capex management as well as healthy balance sheet

Net Dividend Yield3 7.4% 6.4% 6.5% 6.0%*

Performance Overview

Financial review

Operating highlights

Concluding remarks

8

RMmn

Reported

Comments

2Q10 1Q10% Change

QoQ2Q09

% Change YoY

1H10 1H09% Change

YTD on YTD

Revenue 2,150.9 2,124.9 +1.2 2,128.9 +1.0 4,275.8 4,234.4 +1.0Positive growth contributed by Data & Internet

Other Operating Income

29.6 30.9 -4.2 90.7 -67.4 60.5 118.9 -49.11H09 included proceeds from selling of Axiata rights

EBITDA 689.9 715.3 -3.6 824.1 -16.3 1,405.2 1,640.3 -14.3Lower in 1H10 due to higher A&P, direct & other operational cost

EBITDA margin 31.6% 33.2% -1.6pp 37.1% -5.5pp 32.4% 37.7% -5.3ppLower margin due to higher UniFi related cost

Normalised EBITDA 687.8 731.7 -6.0 759.4 -9.4 1,419.5 1,578.0 -10.0 -

Depn & Amort. 477.5 456.8 +4.5 531.1 -10.1 934.3 1,047.8 -10.8Lower YoY due to lower capex and fully depreciated assets

Net Finance Cost 63.6 72.3 -12.0 57.4 +10.8 135.9 87.6 +55.1Higher YoY due to absence of interest income from Axiata

FX (Gain) / Loss (18.1) (166.6) -89.1 (123.2) -85.3 (184.7) 52.3 +453.2Ringgit strenghten QoQ to RM3.244 from RM3.261

Profit Before Tax 166.9 352.6 -52.7 358.9 -53.5 519.5 450.2 +15.4 -

PATAMI 124.4 242.9 -48.8 266.0 -53.2 367.3 293.7 +25.1 -

Normalised PATAMI 104.2 92.7 +12.4 78.1 +33.4 196.9 283.7 -30.6-

Note: EBITDA Margin is calculated as percentage of EBITDA against Total Revenue + Other Operating Income

9

Group Results 1H10

24.1 21.5

19.6 21.7

17.7 18.1

14.8 17.4

4.65.13.44.42.60.7

1H09 1H10

10

RM mn

Total Cost / Revenue ( %)

RM3,786.6

87.0%

RM3,864.4

89.1%

Revenue = Operating Revenue + Other Operating Income

Cost % of Revenue1

Bad debt significantly reduced from 2.6% in 1H 2009 to 0.7% in 1H 2010

Other operating costs increased mainly as a result of higher network maintenance cost & consultancy charges

Only slight increase of manpower costs to 18.1% despite additional headcounts mainly related to UniFi

The comparatives for 2Q09 & 1H09 were amended to be consistent with the 2010 presentation pursuant to adoption of FRS139

(Please refer to Appendix for quarterly details & breakdown)

In RM mn 2Q09** 1Q10 2Q10 1H09** 1H10

Reported EBITDA 824.1 715.3 689.9 1,640.3 1,405.2

Non Operational

ESOS Cost 7.4 11.7 0.5 11.9 12.2

Other (Gain) / Loss- Net* (20.7) 4.7 (3.7) (22.8) 1.0

(Gain)/ Loss on sale of Assets (51.4) - 1.1 (51.4) 1.1

Normalised EBITDA 759.4 731.7 687.8 1,578.0 1,419.5

Normalised EBITDA Margin 34.2% 33.9% 31.5% 36.2% 32.7%

Reported EBITDA Margin 37.1% 33.2% 31.6% 37.7% 32.4%

Normalised EBITDA

11

•Comprise fair value (FV) changes of FVTPL (FV through P&L) investment and gain/loss on disposal for AFS (available for sale) investments. It also include FV changes of derivatives instruments

** The comparatives for 2Q09 & 1H09 were amended to be consistent with the 2010 presentation pursuant to adoption of FRS139

In RM mn 2Q09** 1Q10 2Q10 1H09** 1H10

Reported PATAMI 266.0 242.9 124.4 293.7 367.3

Non Operational

ESOS Cost 7.4 11.7 0.5 11.9 12.2

Other (Gain) / Loss – net* (20.7) 4.7 (3.7) (22.8) 1.0

(Gain)/ Loss on sale of Assets (51.4) - 1.1 (51.4) 1.1

Unrealised Forex (Gain)/ Loss on long term loans

(123.2) (166.6) (18.1) 52.3 (184.7)

Normalised PATAMI 78.1 92.7 104.2 283.7 196.9

Normalised PATAMI

12

•Comprise fair value (FV) changes of FVTPL (FV through P&L) investment and gain/loss on disposal for AFS (available for sale) investments. It also include FV changes of derivatives instruments

** The comparatives for 2Q09 & 1H09 were amended to be consistent with the 2010 presentation pursuant to adoption of FRS139

352 357

437

212

159

204

0

100

200

300

400

500

600

700

800

900

1000

1H09 1H10

Access Core Network Support System*

293

166

136

84

91

86

0

100

200

300

400

500

600

700

1H09 1H10

Access Core Network Support System*

Group Capital Expenditure

Total Capex

HSBB Capex**

Note : BAU – Business As Usual

Note : HSBB – High Speed Broadband** Gross capex to be shared with Government equally

*Include Application, Support System & Others (building, land improvement, moveable plants,application & other assets)

RM mn

948

773

428 437

22.4

18.1

13

BAU Capex

520

336

12.3

7.9

Capex / Revenue ( %)

59

191

301128

68 118

0

100

200

300

400

1H09 1H10

Access Core Network Support System*

14

1

30 June 2010 31 Dec 09 30 June 10 31 Dec 09Return on Invested Capital 6.10% 6.74% Debt to EBITDA 2.32 2.16

Return on Equity 5.35% 6.70% Gross Debt/ Equity 0.89 0.96

Return on Assets 3.82% 3.70% Net Debt/ Equity 0.40 0.46

Current Ratio 1.55% 1.39% Net Assets/Share (sen) 207.0 197.2

1

30 June 10

1 Based on Normalised PATAMI

30 June 10

Group Cash Flow & Key Financial Ratios

31 Dec 09 31 Dec 09

RM mn 1H09 2H09 1H10

Cash & cash equivalent at start 2,094.7 2,820.9 3,490.2

Cashflows from operating activities 1,230.6 1,825.4 954.0

Cashflows from / (used-in) investing activities 3,125.5 (579.1) (485.7)

Capex (n1) 838.2 900.9 461.9

Cashflows from financing activities (3,636.3) (569.6) (357.5)

Effect of exchange rate changes 6.4 (7.4) 0.7

Cash & cash equivalent at end 2,820.9 3,490.2 3,601.8

Free cash-flow (EBITDA – Capex) 802.1 504.3 954.2

n1 – net of HSBB grant received from Government

Performance Overview

Financial review

Operating highlights

Concluding remarks

15

Group Total Revenue by Line of Business

16

Global Others

1H10

1H09

Wholesale

RM mn

2Q09

228

1Q10

190

2Q10

187

-1.6%

-18.0%

RM mn

2Q09

96

1Q10

68

2Q10

83

+22.0%

-13.5%RM mn

2Q09

206

1Q10

202

2Q10

215

+6.4%

+4.4%

Retail

RM mn

2Q09

1,640

1Q10

1,665

2Q10

*

1

+0%

+1.5%

Note: Total revenue is after inter-co elimination

Retail78%

Global10%

Wholesale9%

Others3%

Retail77%

Global10%

Wholesale10%

Others3%

1,665

1,034

1,001 1,002

964

948 953

900

950

1,000

1,050

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

17

Group Total Revenue by Product

Data

RM mn

RM mnRM mn

Voice

Others

Internet

Voice48%

Data17%

Internet19%

Others16%

Voice44%

Data19%

Internet20%

Others17%

1H10

1H09

367 371 354

427398

425

0

100

200

300

400

500

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

385 402 417 402 423 431

0

100

200

300

400

500

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

RM mn

319355

328

480

357341

100

200

300

400

500

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

+0.5%

-4.8% +7.2%

+1.9%

-3.9%

-4.5%

+14.6%

+6.8%

* include MERS999

*

2,784 2,792 2,797 2,767 2,763 2,775

1,506 1,528 1,534 1,554 1,553 1,558

0

1,000

2,000

3,000

4,000

5,000

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Residential Business

771 796 8251,345 1499

1761499 507 525

724746

772

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Other States Klang Valley

1,133 1,165 1,135 1,163 1,212 1,261

200 206 263 268 273 280

0

500

1,000

1,500

2,000

1Q 09 2Q 09 3Q09 4Q09 1Q10 2Q10

Residential Business

In thousand

1,370 1,398 1,431

18

In thousand

+0.3%

4,320

+12.5%

4,331

+0.4%

4,321

1,485

+3.8%

4,316

Physical Highlights

Broadband Customers Growth

Fixed Customers Growth

WiFi Hotspot Zones

ARPU (RM) 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Business* 74 78 73 67 64 69

Residential* 21 21 20 19 20 19

Streamyx Broadband** 87 86 89 86 86 85

1,303 1,350

2,0692,245

+94.4%

+12.8%

*Call Usage Only ** Streamyx Gross ARPU only

+54

Net adds (in thousand)

+33+28

1,541

+56

2,533

4,333

+37

1,333

1,270

4,290

Performance Overview

Financial review

Operating highlights

Concluding remarks

19

20

Key Takeaways

Cost / Capital Management

Broadband / Fixed Line

UniFi

Orders for UniFi gaining momentum as more coverage areasintroduced

UniFi has expanded to Johor, Penang & Kedah and on targetto achieve 750,000 premises passed by end of the year

Strong demand for Streamyx with net adds of 56krecorded in 2Q10 vs 37k in 2Q09

Fixed line also showed positive net adds QoQ and YoY

1H10 EBITDA margin maintained in the 30s with continuedcost management in a highly competitive market

Continued capex management and improved collectionresulted in higher 1H10 cash balance

Shareholders’ Return Interim dividend of 13.0sen less 25% tax or approximately

RM348.8mn to be paid to the shareholders in September2010, in line with our full year dividend commitment

Customer Centricity Committed to spend at least 5% of revenue for

improvement in quality of customers’ experience Customer Satisfaction, TRI*M Index improved 6% (1H10 vs 2H09)

TRI*M (Measuring, Managing and Monitoring) is a standardized indicator system. It analyzes, measures and portrays stakeholder relationships on the basis of standardized indicators. The TRI*M Index is an indicator of thestatus quo of a particular relationship. The index is made up of four points of view on the stakeholder relationship, e.g. for customer loyalty: overall rating, recommendation, repeat purchasing of product/services, and acompany's competitive advantage. The information is based on surveys/interviews

Appendices

2Q09 1Q10 2Q10 1H09 1H10 1H10 vs 1H09

Operating Revenue (RM mil) 2,128.9 2,124.9 2,150.9 4,234.4 4,275.8 -

Other Operating Income(RM mil)

90.7 30.9 29.6 118.9 60.5 -

Direct Costs % 19.9 21.4 22.1 19.6 21.7 • Higher international o/payment for Voice & Data

• Higher USP costRM mil. 442.8 461.2 481.7 855.7 942.9

Manpower % 16.9 19.0 17.2 17.7 18.1 • Increase in headcounts due to UniFi

RM mil. 375.8 410.6 376.2 772.2 786.8

Supplies & Materials % 5.6 5.2 5.0 4.6 5.1• Higher internet revenue and customer projects

RM mil. 124.3 111.2 109.8 201.3 221.0

Bad & Doubtful Debts % 3.4 1.6 - 2.6 0.7

• Lower due to improved collection

RM mil. 74.4 33.6 (-2.6) 113.3 31.0

Marketing Expenses % 3.7 4.1 4.8 3.4 4.4 • Higher A&P for UniFi related activities & promotionRM mil. 81.6 87.7 104.9 148.0 192.6

Other Operating Costs % 14.3 15.4 19.4 14.8 17.4 • Higher due to increase in maintenance activitiesRM mil. 317.4 331.4 424.3 645.3 755.7

Depreciation & Amortisation % 23.9 21.2 21.9 24.1 21.5-

RM mil. 531.1 456.8 477.6 1,050.8 934.4

Total (RM mil) 1,947.4 1,892.6 1,971.8 3,786.6 3,864.4 -

Total (%) 87.7 87.8 90.4 87.0 89.1

Cost % of Revenue

22The comparatives for 2Q09 & 1H09 were amended to be consistent with the 2010 presentation pursuant to adoption of FRS139

7,358.4

139.9

8,636.2

5,656.7

1,687.2

1,286.3

6.0

16,134.5

6,405.9

1,779.1

481.5

3,602.2

543.1

4,136.7

2,667.7

872.0

597.0

2,269.2

12,278.8

1,586.5

16,134.5

6,987.5

142.5

8,371.5

5,796.9

1,588.7

985.9

-

15,501.5

6,180.0

1,781.0

503.0

3,490.7

405.3

4,441.0

2,934.6

916.6

589.8

1,739.0

12,404.3

1,358.2

15,501.5

Shareholders’ Funds

Minority Interests

Deferred & Long Term Liabilities

Long Term Borrowings

Deferred Tax

Deferred Income

Derivative financial liabilities

Current Assets

Trade Receivables

Other Receivables

Cash & Bank Balances

Others

Current Liabilities

Trade and other Payables

Short Term Borrowings

Others

Net Current Assets

Property Plant & Equipment

Other Non-current Assets

RM MillionAs at 30 June 2010 As at 31 Dec 2009

23

Group Balance Sheet

822 768 776

172 208 220

398 420 430

254 333 301

0

500

1000

1500

2000

2Q09 1Q10 2Q10

Others

Internet

Data

Voice

1,651 1,544

361 428

783 850

497 634

0

1,000

2,000

3,000

4,000

1H09 1H10

Others

Internet

Data

Voice

Total Revenue By Products

RM mn

RM mn+1.6%

+0%

1,6651,640

3,2783,330

1H10

Note : Breakdown is before inter company elimination

+1.5%

RETAIL

Revenue by ProductRevenue by Business Unit

1H09

Note: Total revenue is after inter-co elimination. Revenue of product is before inter-co elimination

Consumer32%

SME25%

Enterprise25%

Government18%

1,665

24

RM mn

RM mn

DC : Domestic CarrierASP : Application Service Provider

Others : Include internet

WHOLESALE

Revenue by ProductRevenue by Customer Segment

171 140

262266

3428

0

200

400

600

1H09 1H10

Voice Data Others

417377

-9.6%

9469 71

139134 132

22

16 12

0

50

100

150

200

250

300

2Q09 1Q10 2Q10

Voice Data Others

228

190187

-1.6%

-18.0%

ASP16%

DC84%

ASP17%

DC83%

1H10

1H09

Note: Total revenue is after inter-co elimination. Revenue of product is before inter-co elimination 25

91 113 109

108100 113

7 5 9

0

100

200

300

2Q09 1Q10 2Q10

Voice Data Others

220 222

204 213

11 14

0

100

200

300

400

500

1H09 1H10

Voice Data Others

397 4171H10

1H09RM mn

RM mn

Others : Include internet

206

GLOBAL

Revenue by Product

Revenue by Region

Africa & Middle

East9%

America8%

Europe9%

South Asia41%

North Asia13%

Oceania6%

Others14%

Africa & Middle

East9%

America11%

Europe6%

South Asia41%

North Asia14%

Oceania7%

Others12%

+5.0%

202 215

+4.4%

+6.4%

Note: Total revenue is after inter-co elimination. Revenue of product is before inter-co elimination 26

THANK YOUAny queries please email to : investor@tm.com.my

•Investor Relations• Level 11 (North Wing)• Menara TM •Jln Pantai Bharu •50672 Kuala Lumpur, Malaysia • Tel (603) 2240 4848/ 7366 / 7388