1H 2012 RESULTS

ANALYST BRIEFING

29 August 2012

This presentation is not and does not constitute an offer, invitation, solicitation or recommendation to subscribe for, or purchase, any securities

and neither this presentation nor anything contained in it shall form the basis of, or be relied on in connection with any contract or commitment or

investment decision.

This presentation has been prepared solely for use at this presentation. By your continued attendance at this presentation, you are deemed to

have agreed and confirmed to Telekom Malaysia Berhad (the “Company”) that: (a) you agree not to trade in any securities of the Company or its

respective affiliates until the public disclosure of the information contained herein; and (b) you agree to maintain absolute confidentiality

regarding the information disclosed in this presentation until the public disclosure of such information, or unless you have been otherwise

notified by the Company.

Reliance should not be placed on the information or opinions contained in this presentation or on its completeness. This presentation does not

take into consideration the investment objectives, financial situation or particular needs of any particular investor.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the

information, opinions and conclusions contained in this presentation. None of the Company and its affiliates and related bodies corporate, and

their respective officers, directors, employees and agents disclaim any liability (including, without limitation, any liability arising from fault or

negligence) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with it.

This presentation contains projections and “forward-looking statements” relating to the Company’s business and the sectors in which the

Company operates. These forward-looking statements include statements relating to the Company’s performance. These statements reflect the

current views of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions. It is important to note

that actual results could differ materially from those anticipated in these forward looking statements. The Company does not undertake to inform

you of any matters or information which may come to light or be brought to the Company’s attention after the date hereof.

The forecasts and other forward-looking statements set out in this presentation are based on a number of estimates and assumptions that are

subject to business, economic and competitive uncertainties and contingencies, with respect to future business decisions, which are subject to

change and in many cases outside the control of the Company. The directors and officers of the Company believe that they have prepared the

forecasts with due care and attention and consider all best estimates and assumptions when taken as a whole to be reasonable at the time of

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.

This presentation may not be copied or otherwise reproduced without the written consent of TM.

Disclaimer

Performance Overview

Financial review

Operating highlights

Concluding remarks

3

Key Highlights 1H 2012 vs. 1H2011

4

Improved Capex efficiency :Total capex/revenue ratio: 16.3% vs. 17.1% for 1H2011

Reported EBITDA grew by 6.9% to RM1.58bnNormalised EBITDA grew by 5.3% to RM1.577bn

Revenue up by 9.7% to RM4.8bn, with positive growth across all products

Reported PATAMI up by 106.2% to RM599.1mnNormalised PATAMI up by 57.8% to RM406.4 mn

Broadband customers now >2mn, with Unifi takeup >30% of premises passed

Good set of results

Key Operating Indicators

Key Highlights 2Q 2012

Financial Performance

5

2Q12 vs1Q12

• Operating revenue increased by 1.7% QoQ and 8.6% YoY to RM2.425bn

• EBITDA grew by 1.9% QoQ and 6.8% YoY to RM797mn; Normalised EBITDA increased by 1% QoQ and 3.2% YoY to RM792.3mn

• PATAMI grew by 39.1% QoQ and 174% YoY to RM348.5mn; Normalised PATAMI grew by 21.6% QoQ and 64.9% YoY to RM223.0mn

• Internet revenue grew 3.4% QoQ and 19.2% YoY to RM582mn

• UniFi customer base up 21.6% QoQ and 252% YoY to 384,024 customers

• Total broadband customers >2mn, up 1.9 % QoQ and 9.9% YoY

2Q12 vs2Q11

Positive overall improvements QoQ and YoY

Performance Overview

Financial review

Operating highlights

Concluding remarks

6

Note: EBITDA Margin is calculated as percentage of EBITDA against Revenue + Other Operating IncomeFor Normalised EBITDA and Normalised PATAMI refer Slides 8 and 9

•Excludes FX (Gain )/Loss

RMmn

ReportedComments

(1H12 vs. 1H11)2Q12 1Q12

% Change QoQ

2Q11% Change

YoY1H12 1H11

% Change1H12 vs

1H11

Revenue 2,425.0 2,383.8 +1.7 2,233.6 +8.6 4,808.8 4,381.8 +9.7Positive growth by all key products

Other Operating Income

44.1 26.6 +65.8 34.8 +26.7 70.7 56.1 +26.0 Higher due to disposal of assets

EBITDA 797.4 782.6 +1.9 746.9 +6.8 1,580.0 1,477.8 +6.9 -

EBITDA margin 32.3% 32.5% -0.2pp 32.9% -0.6pp 32.4% 33.3% -0.9pp -

Normalised EBITDA 792.3 784.7 +1.0 768.1 +3.2 1,577.0 1,497.0 +5.3 -

Normalised EBITDA Margin

32.1% 32.6% -0.5pp 33.9% -1.8pp 32.3% 33.7% -1.4pp -

Depn & Amort. 497.9 510.6 -2.5 511.4 -2.6 1,008.5 1,011.4 -0.3Lower due to revision of useful life of certain assets net of higher asset write-off

Other Gains / (Loss) (2.4) 1.4 -271.4 2.0 -220.0 (1.0) 2.7 -137.0 -

Net Finance Cost* 46.9 41.6 +12.7 41.0 +14.4 88.5 83.7 +5.7Higher interest payment in line with higher borrowings

FX (Gain) / Loss 64.7 (67.9) -195.3 (11.1) -682.9 (3.2) (49.5) -93.5Due to strengthening of USD against RM by 3.6%

Profit Before Tax (PBT)

185.6 299.3 -38.0 207.1 -10.4 484.9 434.4 +11.6 -

Normalised PBT 247.6 232.1 +6.7 215.1 +15.1 479.7 401.4 +19.5

PATAMI 348.5 250.6 +39.1 127.2 +174.0 599.1 290.5 +106.2Higher due to higher revenue and recognition of deferred tax income

Normalised PATAMI 223.0 183.4 +21.6 135.2 +64.9 406.4 257.5 +57.8 -

Group Results 1H2012

7

Normalised EBITDA

In RM mn 2Q12 1Q12 2Q11 1H12 1H11

Reported EBITDA 797.4 782.6 746.9 1,580.0 1,477.8

Non Operational

Loss on Sale of Assets 0.2 0.1 0.4 0.3 0.8

FX (Gain)/Loss on International trade settlement

(5.3) 2.0 20.8 (3.3) 18.4

Normalised EBITDA 792.3 784.7 768.1 1,577.0 1,497.0

Normalised EBITDA Margin 32.1% 32.6% 33.9% 32.3% 33.7%

Reported EBITDA Margin 32.3% 32.5% 32.9% 32.4% 33.3%

EBITDA is calculated as Total Revenue (Operating Revenue + Oth. Operating Income) less Operating Cost (Exc. Depreciation, Amortisation & Impairment).EBITDA Margin is calculated as percentage of EBITDA against Total Revenue

8

In RM mn 2Q12 1Q12 2Q11 1H12 1H11

Reported PATAMI 348.5 250.6 127.2 599.1 290.5

Non Operational

Loss on Sale of Assets 0.2 0.1 0.4 0.3 0.8

FX (Gain)/Loss on International trade settlement

(5.3) 2.0 20.8 (3.3) 18.4

Other (Gain)/Losses** 2.4 (1.4) (2.0) 1.0 (2.7)

Unrealised FX (Gain)/Loss on Long Term loans 64.7 (67.9) (11.2) (3.2) (49.5)

Tax Incentives (187.5) - - (187.5) -

Normalised PATAMI* 223.0 183.4 135.2 406.4 257.5

Normalised PATAMI

9

* Inclusive in 1H2012 is RM87.8mn for current year tax incentive**Comprise fair value (FV) changes of FVTPL (FV through P&L) investment and gain/loss on disposal for AFS (available for

sale) investments.

22.8 20.7

17.217.6

20.719.4

12.110.9

5.68.6

6.2 5.7

3.8 4.11.0 1.3

1H11 1H12

Bad Debt

Marketing Expenses

Supplies & material

Maintenance Cost

Other operating cost

Manpower cost

Direct cost

Dep & Amortisation

Revenue = Operating Revenue + Other Operating Income

Cost % of Revenue1

Note: The classification of cost is as per financial reporting

(Please refer to Appendix for quarterly details & breakdown)

Cost/revenue ratio continues to improve

1

10

RM mnRM mn

Total Cost / Revenue ( %)

RM3,971.5

89.5%

RM4,308.0

88.3%

% of Revenue

1H2012 vs. 1H2011

•Higher Direct cost due to higher international outpayment, USP and content cost

•Higher Maintenance cost due to customer projects, new maintenance contracts at ITNT and one-off provision for backdated claim of a maintenance contract

•Higher Marketing Expenses due to higher A&P activities and commissions for Unifi

246326

176127

2059

0

100

200

300

400

500

600

1H11 1H12

Access Core Network Support System*

149118

98

80

60

75

0

50

100

150

200

250

300

350

1H11 1H12Access Core Network Support System*

Group Capital Expenditure

** Gross capex to be shared with Government equally up to RM4.8bnNote: Government coinvestment treated as deferred income, to be amortisedprogressively to match against the depreciation of assets

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

Improved Capex/Revenue % ratio showing increased efficiency

11

Total Capex

HSBB Capex**

Note : BAU – Business As Usual

RM mn

749

442

17.1

BAU Capex

307

7.0

Capex / Revenue ( %)

512

273

5.7

785

16.3

10.610.1

395444

274 207

80 134

0

100

200

300

400

500

600

700

800

900

1H11 1H12

Access Core Network Support System*

30 June 12 31 Dec 11 30 June 12 31 Dec 11Return on Invested Capital 6.46% 5.80% Gross Debt to EBITDA 2.07 1.93

Return on Equity 10.69% 8.09% Net Debt/EBITDA 0.82 0.69

Return on Assets 5.14% 4.47% Gross Debt/ Equity 0.86 0.86

Current Ratio 1.90 1.62 Net Debt/ Equity 0.38 0.29

WACC 6.15% 6.33% Net Assets/Share (sen) 216.0 209.0

30 June 12

Group Cash Flow & Key Financial Ratios

31 Dec 11*

RM mn 1H12 1H11

Cash & cash equivalent at start 4,212.6 3,488.0

Cashflows from operating activities 703.3 936.7

Cashflows used-in investing activities (1,077.3) (683.9)

Capex 785.0 749.0

Cashflows from financing activities (132.2) (1,077.5)

Effect of exchange rate changes (1.7) 1.8

Cash & cash equivalent at end 3,704.7 2,656.9

Free cash-flow (EBITDA – Capex) 795.0 728.8

Cumulative HSBB grant received from Government as at 1H2012: RM2.26bn

Strong Balance Sheet to support futurebusiness requirements

1

Based on Normalised PATAMI2

1

12

31 Dec 11*30 June 12

* Restated due to adoption of MFRS

2

Based on Normalised EBIT1

Performance Overview

Financial review

Operating highlights

Concluding remarks

13

304 359 395609

754

2Q11 1Q12 2Q12 1H11 1H12

496 514 502962

1,016

2Q11 1Q12 2Q12 1H11 1H12

488 563 582941

1,145

2Q11 1Q12 2Q12 1H11 1H12

946 948 9461,870 1,894

2Q11 1Q12 2Q12 1H11 1H12

Voice39%

Data21%

Internet24%

Others16%

Group Total Revenue by Product

14

Data

RM mn

RM mn RM mn

Voice

Others*

Internet1H12

1H11

RM mnRM mn

RM mn

RM4,809mn

RM4,382mn

+1.3%

Positive growth across all products vs. 1H2011, Internet grew >21%.

*Others comprise other telco and non-telco services (i.e ICT-BPO, MMU tuition fees, customer projects)

+21.7%

+23.8%+5.6%+1.2%

-2.3%

0.0%

-0.2%

+19.2%

+3.4%

+29.9%

+10.0%

Voice43%

Data22%

Internet21%

Others14%

Consumer27%

SME20%

Enterprise11%

Government17%

Global9%

Wholesale8%

Others8%

Consumer27%

SME21%

Enterprise12%

Government15%

Global9%

Wholesale9%

Others7%

600 655 671 1,191 1,326467 463 485

907 948286 267 277

544 544327 415 397

655 812

2Q11 1Q12 2Q12 1H11 1H12

Consumer SME Enterprise Government

174 177 195333

372

2Q11 1Q12 2Q12 1H11 1H12

192 225 212374

437

2Q11 1Q12 2Q12 1H11 1H12

188 182 187

378 370

2Q11 1Q12 2Q12 1H11 1H12

Group Total Revenue by Line of Business

1H12

1H11

RM4,809mn

RM4,382mn

* Others comprise revenue from VADS (reclassified from retail), Property Development, TM R&D, TMIM, UTSB and MKL

Retail Wholesale

RM mn

RM mnRM mn

RM mn

3,297 3,630

1,831

Global Others*

+10.1%

+9.0%

1,8001,680

+1.7%-2.1%

-0.5%

+2.7%

+16.8%

+10.4%

-5.8%+11.7%

+12.1%

+10.2%

Global, Govt & Consumer showed highest growth in 1H2012

15

Retail (C+S+E+G): 75%

Retail (C+S+E+G): 75%

2,710 2,692 2,633 2,566 2,524 2,468

1,607 1,596 1,568 1,546 1,526 1,509

64 109 164 237 316 384

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

Fixed Line Residential Fixed Line Business UniFi

55,156 93,107 139,896 201,842 269,309 325,5578,38515,912

24,47934,659

46,43658,467

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

UniFi Residential UniFi Business

1,417 1,425 1,393 1,374 1,356 1,330

291 296 314 312 302 29764 109 164 237 316 384

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

Streamyx Residential Streamyx Business UniFiNet adds (in thousand)

In thousand

In thousand

+9.9%

+1.9%

Physical Highlights

Broadband Customer Growth

Fixed Line Customer Growth

*Call Usage Only ** Streamyx Net ARPU *** Blended ARPU

16

Broadband customer base breaches 2mn mark,ARPUs continue to be stable

1,772

4,381ARPU (RM) 1Q11 1H11 FY11 1Q12 1H12

Fixed Line (DEL)* 33 34 34 33 34

Streamyx Broadband** 77 77 78 79 79

UniFi*** 188 186 184 182 181

1,830

+58

4,397

1,871

+41

4,365 4,349

+52

1,923 1,974

+51

4,366

-0.8%

0.0%

63,541

+21.6%

Net adds (in thousand)

109,019

+45

+252.2%

164,375236,501

315,745

UniFi

ARPU

+37

2,011

+55+72 +79 +68

384,024

4,361

Performance Overview

Financial review

Operating highlights

Concluding remarks

17

Key Takeaways

Financial Performance• TM Group operating revenue up by 9.7% vs. 1H2011• Normalised EBITDA improved by 5.3% to RM1.577bn• Normalised PATAMI grew by 57.8% to RM406.4mn

Broadband Champion

• Total broadband customer base crossed 2mn

• Unifi remains strong: 384,024 customers as at1H2012, and more than 420,000 at present

• 1.259mn premises passed

• Total Capex / Revenue ratio improved to 16.3%

Shareholder Return• Interim dividend of 9.8sen per share or

approximately RM350.6mn to be paid toshareholders

All-round positive set of solid results

18

Appendices

2Q12 1Q12 2Q11 1H12 1H11 1H2012 vs. 1H2011

Operating Revenue (RM mil) 2,425.0 2,383.8 2,233.6 4,808.8 4,381.8 -

Other Operating Income(RM mil)

44.1 26.6 34.8 70.7 56.1 -

Direct Costs % 16.9 18.2 17.3 17.6 17.2 Higher international outpayment, USP payment and content costRM mil. 418.1 438.9 393.2 857.0 763.4

Manpower % 19.6 19.3 20.3 19.4 20.7 Higher staff benefits but lower as a % of revenue due to faster revenue growthRM mil. 483.4 465.6 460.3 949.0 919.3

Supplies & Materials % 5.2 6.1 7.2 5.7 6.2 Higher CAC from increased Unifi customers but lower as a % of revenue due to faster revenue growthRM mil. 129.1 147.7 164.2 276.8 273.6

Bad & Doubtful Debts % 0.5 2.2 0.5 1.3 1.0 Higher due to higher provisions from Global and WholesaleRM mil. 11.6 53.2 10.3 64.7 46.2

Marketing Expenses % 4.3 3.9 3.2 4.1 3.8 Higher A&P activities for product promotions and commissions for Unifi

RM mil. 106.1 94.4 72.4 200.5 169.1

Maintenance Cost % 9.6 7.5 6.2 8.6 5.6 Higher due to customer projects and new maintenance contracts at ITNTRM mil. 236.5 181.0 141.4 417.5 250.5

Other Operating Costs % 11.6 10.2 12.3 10.9 12.1 Lower due to lower outsourcing and license feesRM mil. 286.9 247.0 279.7 534.0 538.0

Depreciation & Amortisation % 20.2 21.2 22.5 20.7 22.8 Lower due to revision of useful life of certain assets and asset write-offRM mil. 497.9 510.6 511.4 1,008.5 1,011.4

Total (RM mil) 2,169.6 2,138.4 2,032.9 4,308.0 3,971.5 -

Total (%) 87.9 88.7 89.6 88.3 89.5 -

Cost % of Revenue

20

7,477.5

162.9

10,053.9

6,402.7

1,559.6

2,072.7

18.9

17,694.3

7,405.8

1,854.8

468.4

4,213.0

869.6

4,558.0

3,923.9

7.7

626.4

2,847.8

14,121.7

724.8

17,694.3

7,726.2

151.9

10,212.1

6,651.2

1,380.8

2,164.8

15.3

18,090.2

7,364.0

2,143.6

516.2

3,705.1

999.1

3,884.2

3,248.3

7.7

628.2

3,479.8

13,878.2

732.2

18,090.2

Shareholders’ Funds

Non-Controlling 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 2012 As at 31 Dec 2011*

Group Balance Sheet

21

* Restated due to adoption of MFRS

785 758 770

298 318 307

485 558 577

124171 188

0

500

1000

1500

2000

2Q11 1Q12 2Q12

Others

Internet

Data

Voice

Consumer36%

SME28%

Enterprise16%

Government20%

Consumer37%

SME26%

Enterprise15%

Government22%

Revenue by Business Unit

RM mn

+1.7%

1,680

1H12

+9.0%

RETAIL

Revenue by Product

1H11

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

RM mn

RM mn

RM3,631mn

RM3,297mn

22

1,800 1,831

RM mn +10.1%

3,297

3,631

1,554 1,528

568 625

9331,135

262359

0

1,000

2,000

3,000

4,000

1H11 1H12

Others

Internet

Data

Voice

116 102

291 298

40 41

0

200

400

600

1H11 1H12

Others

Data

Voice

61 50 52

142 145 152

18 1922

0

50

100

150

200

250

2Q11 1Q12 2Q12

Others

Data

Voice

MC : Malaysian CarriersASP/ISP : Application/Internet Service Provider

Others : Include internet

WHOLESALE

1H12

1H11

Note: Total revenue is after inter-co elimination. Revenue of product is before inter-co elimination 23

Revenue by ProductRevenue by Customer Segment

187 182187

RM mn

+2.7%

0.0%

RM mn -2.1%

378 370

MC84%

ASP16%

MC83%

ASP17%

209273

178

1884

8

0

100

200

300

400

500

1H11 1H12

Others

Data

Voice

107143 129

92

92 952

3 6

0

50

100

150

200

250

2Q11 1Q12 2Q12

Others

Data

Voice

America14%

Europe & AFME15%

Oceania & North Asia

27%

South Asia32%

Others12%

America7%

Europe & AFME19%

Oceania & North Asia

25%

South Asia38%

Others12%

1H12

1H11

Others : Include internet

GLOBAL

Note: Total revenue is after inter-co elimination. Revenue of product is before inter-co elimination 24

Revenue by RegionRevenue by Product

192

212225

RM mn

-5.8%

+10.4%

RM mn+16.8%

374

437

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

•Investor Relations• Level 11 (South Wing)•Menara TM •JlnPantaiBharu •50672 Kuala Lumpur, Malaysia • Tel (603) 2240 4848/ 7366 / 7388