1

TELEKOM MALAYSIA BERHAD

WELCOME TO LIFE IN THE ERA OF

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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

Company Updates4

Leadership Line-Up to Cement Our Position as Malaysia’s

Convergence ChampionBoard of Directors

Managing Director / Group Chief Executive Officer

Dato’ Sri Shazalli Ramly

Chief Internal AuditorHazimi Kassim

Group Company SecretaryHamizah Abidin

VP Group Brand & Communication

Izlyn Ramli

Chief Digital OfficerAhmad Azhar Yahya

Chief Procurement OfficerMohamad Mohamad Zain

Group Chief Financial Officer

Nor Fadhilah Mohd Ali

VP Support BusinessBadrul Hisham Ahmad

Executive Director / Deputy Group Chief

Executive OfficerDatuk Bazlan Osman

Chief Human Capital OfficerDato’ Mohd Khalis

Abdul Rahim

Chief Strategy OfficerDato’ Kairul Annuar

Mohamed Zamzam

Chief Corporate & Regulatory OfficerAhmad Ismail

Chief Legal & Integrity OfficerIdrus Ismail

Group Special Advisor, Transformation ProgrammeDato’ Ghazali Omar

EVP Consumer & SMEImri Mokhtar

CEO webeMoharmustaqeem

Mohammed

EVP New Media, CEO TMNetJeremy Kung

EVP Managed AccountsAzizi A Hadi

Chief Technology, Innovation& Experience OfficerDato’ Rafaai Samsi

EVP Global WholesaleMohamad Rozaimy Abdul Rahman

EVP EnterpriseWan Ahmad Kamal

Head of Government TM,CEO GITN

Mohd Roslan Mohd Rashidi

CEO VADS BerhadNizam Arshad

Board Audit Committee

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• Manifests TM’s Convergence Champion aspiration

• Malaysia’s first fully digital mobile company

• Service launched 30th September 2016

• April 2017, launched new webe products to cater SME’s broadband

needs (webemobile biz and webebroadband biz)

• Close to 2,300 LTE sites operational; more than 64% population

coverage

• “Data Liberation” – never-ending proposition of data, calls and SMS’

Superfast & seamless

internet connection,

everywhere and anytime

Relevant lifestyle and

business services on all your

devices

Delivered to you through an

easy and enjoyable

experience

7

Our digital transformation supported by Convergence

Fixed Mobile WiFi

8

TM 360˚

CONVERGENCE CHAMPION

2.37mn broadband customers

>2.59mn HSBB ports nationwide

webe at 4.2% penetration of TM Households

>27,700 Warga Keluarga TM

RM2.96bn revenue as at 1Q2017

RM229.8mn Normalised PATAMI as at 1Q2017

>410% Total Shareholder Return since demerger*

RM808mn total dividend paid for FY2016

As at 31 March 2017

*TSR as at 19 June 2017

Latest Developments9

10

Broadband Improvement Plan 2017

• Thank You Surprise! progressing well and will benefit 641,000

UniFi customers

• >450,000 eligible customers have been upgraded

• Expected completion of upgrades over the next few months

*Subject to technical availability

• webemobile biz and webebroadband biz to cater to

SME’s broadband needs

• Held inaugural for the Enterprise and

Public Sector segments

• Deployment of Smart C-RAN for Smart

Putrajaya project

• VADS’ Twin Core Data Centres, in Iskandar Puteri, Johor will be operational

this year

• Collaboration with property developers in building smart cities/providing

smart solutions

• Increased Global connectivity through submarine cable expansion - Bay of

Bengal Gateway and SEA-ME-WE 5 cable systems

PROGRAMME

11

Moving Forward12

13

Convergence 2.0: Moving TM to deliver Life in the Era of

Convergence

1Q2017 Financial & Operational Highlights14

304286 280

312300

312

1Q17 4Q16 1Q16

Reported EBIT

Normalised EBIT

230154

322230 270

203

1Q17 4Q16 1Q16

Reported PATAMINormalised PATAMI

2,965 3,237 2,855

1Q17 4Q16 1Q16

Revenue

RM mn

Key 1Q2017 Highlights

Revenue

EBIT

PATAMI

Note : Unless stated otherwise all figures shall be inclusive of Webe 15

RM mn

RM mn

+3.8%

-8.4%

+8.5% (Normalised 0.0%)+6.3% (Normalised +3.9%)

-28.5% (Normalised +13.2%)+49.3% (Normalised -14.9%)

Voice30%

Internet

31%

Data22%

Others*17%

1Q16

16

Group Total Revenue by Product

Voice

Internet

Note : Unless stated otherwise all figures shall be inclusive of Webe*Total revenue is after inter-co elimination.

RM mn

RM mn

Data

Others*

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

RM mn

RM mn

Voice27%

Internet33%

Data22%

Others*18%

1Q17

RM2,855mn

RM2,965mn

849 857 804

1Q16 4Q16 1Q17

894

951

969

1Q16 4Q16 1Q17

636

732

657

1Q16 4Q16 1Q17

476

697

535

1Q16 4Q16 1Q17

-5.3%

-6.2%

+3.3%-10.2%

+8.4%

+1.9%

+12.4%

-23.2%

Group Total Revenue by Customer Clusters

17

Mass Market Managed Accounts

Note: Unless stated otherwise all figures shall be inclusive of Webe

RM mn RM mn

Global & Wholesale Others*

*Others include revenue from Property Development, TM R&D, TMIM, UTSB, MKL & Webe

RM mnRM mn

RM2,855mn

RM2,965mn

Mass Market

42%

Managed Accounts

36%

Global & Wholesale

15%

Others*6%

1Q16

Mass Market

44%Managed Accounts

36%

Global & Wholesale

15%

Others*5%

1Q17

1,255

1,309 1,307

1Q16 4Q16 1Q17

1043

1205

1067

1Q16 4Q16 1Q17

429 573

457

1Q16 4Q16 1Q17

129

150

133

1Q16 4Q16 1Q17

+6.0%

-20.4%

+3.1%

-11.3%

+4.1%

-0.2%

+2.3%

-11.5%

3,364 3,319 3,280 3,233 3,184

877 900 921 949 979

1Q16 2Q16 3Q16 4Q16 1Q17

Fixed Line UniFi

1,487 1,465 1,448 1,421 1,391

877 900 921 949 979

1Q16 2Q16 3Q16 4Q16 1Q17Streamyx UniFi

18

0.0%

Cu

sto

mer

s (I

n t

ho

usa

nd

)A

RP

U (

RM

)

UniFi ARPU (Blended) Streamyx Net ARPU

UniFi customer base close to

979,000 customers; 81% on

packages 10Mbps & above

Contribution from upselling and

content revenue

Webe achieved 4.2% penetration of

TM Households*

2,364 2,365

4,241 4,219

Cu

sto

mer

s (I

n t

ho

usa

nd

)A

RP

U (

RM

)

ARPU at RM26

2,369

Fixed Line (DEL) ARPU

4,201

2,370

4,182

2,370

89 89 90 92 90

192 194 197 201 201

+0.3%

29 29 27 28 26

4,163

-0.5%-1.8%

Healthy UniFi growth and stable ARPU

*TM Household denotes households with at least 1 TM service

Fixed Line

Physical Highlights

Broadband

Note : Unless stated otherwise all figures shall be inclusive of Webe

Cost % of Revenue1

RM mn

Group Capital Expenditure

CAPEX / Revenue (%)

19

Total Cost / Revenue (%)

1 Revenue = Operating Revenue + Other Operating Income

RM mn

1Q2017 OPEX & CAPEX

5981

162

188

97

83

1Q16 1Q17

Core Network Access Support Systems

318

11.1%

352

11.9%

22.2 21.0 21.5

18.8 18.0 19.0

21.4 22.6 21.7

11.7 10.4 11.8

5.9 6.2 6.1 6.0 9.1 6.5 3.3 3.5 3.1 1.0 0.4 0.1

1Q16 4Q16 1Q17Depreciation & Amortisation Direct CostsManpower Other Operating CostsMaintenance Cost Supplies & MaterialsMarketing Expenses Bad & Doubtful Debts

2,698.82,616.9

90.3%

2,980.4

91.2% 89.9%

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Group Cash Flow

Note : Unless stated otherwise all figures shall be inclusive of Webe

RM mn 1Q17 1Q16

Cash & cash equivalent at start 2,925.2 3,510.8

Cash flows from operating activities 391.7 528.3

Cash flows used in investing activities (673.0) (769.9)

CAPEX 351.5 317.6

Cash flows used in financing activities (599.6) (77.8)

Effect of exchange rate changes (12.2) (0.3)

Cash & cash equivalent at end 2,032.1 3,191.1

Free cash-flow (EBITDA – CAPEX) 598.1 605.4

TM Group Debt Profile

21

Key Financial Ratios

1 Based on Normalised EBIT2 Based on Normalised PATAMI

Note : Unless stated otherwise all figures shall be inclusive of Webe

TM Group Debt Maturity Profile as at 31 March 2016 JPY denominatedRM denominatedUSD denominatedCDN denominated

Debt Currency Mix

• Total debt as at end March 2016: RM8.22bn

• Average cost of debt: 5.06% (1Q16: 5.02%)

• Forex hedged: USD200mn equivalent & ¥7,800mn (42% from total foreign currency

borrowings)

• Total forex unhedged: USD377mn equivalent (20% from total borrowing) [Yankee Bond,

Tulip Sukuk, Webe’s Deutsche Loan & CIDA Loan].

• Total debt as at end March 2016 is 100% on fixed rate

593

925

9

729 800 850 908

1,200

1,626

574

3

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2034

USD20.19%

MYR79.77%

Others0.04%

31 Mar 17 31 Dec 16

Return on Invested Capital1 6.25% 6.25%

Return on Equity2 12.16% 10.03%

Return on Assets1 5.07% 4.80%

Current Ratio3 1.16 1.15

WACC 7.11% 7.17%

31 Mar 17 31 Dec 16

Gross Debt to EBITDA 2.18 2.10

Net Debt/EBITDA 1.53 1.25

Gross Debt/Equity 1.10 1.09

Net Debt/Equity 0.83 0.71

Net Assets/Share (sen) 198.7 204.7

22Note : Unless stated otherwise all figures shall be inclusive of Webe

RM mnAs at

31 Mar 2017

As at

31 Dec 2016

Shareholders’ Funds 7,466.9 7,692.3

Non-Controlling Interests 94.2 140.2

Deferred & Long Term Liabilities 11,139.0 11,194.4

Long Term Borrowings 7,633.4 7,662.6

Derivative financial instruments 309.9 301.9

Deferred tax liabilities 1,541.8 1,514.8

Deferred income 1,649.6 1,711.4

Trade and other payables 4.3 3.7

18,700.1 19,026.9

Current Assets 6,348.3 6,887.5

Trade Receivables 2,671.3 2,357.1

Other Receivables 810.8 801.1

Cash & Bank Balances 2,032.6 2,926.0

Others 833.6 803.3

Current Liabilities 5,487.8 5,974.7

Trade and Other Payables 3,679.8 4,103.0

Short Term Borrowings 584.1 700.7

Others 1,223.9 1,171.0

Net Current Assets/(Liabilities) 860.5 912.8

Property Plant & Equipment 15,729.4 16,010.6

Other Non-Current Assets 2,110.2 2,103.5

18,700.1 19,026.9

Group Balance Sheet

Thank you!Investor Relations

Level 11 (South Wing), Menara TM

Jalan Pantai Baharu

50672 Kuala Lumpur

Malaysia

Tel: (603) 2240 4848/ 7366 / 7388

www.tm.com.my/investor

investor@tm.com.my

Appendix

24

Capital StructureCredit Rating

Total Return To Shareholders

• Authorised Capital: RM3,528,003,015.00

• Issued and Paid-up Capital: RM2,630,554,376.00

• Date of Incorporation: 12 October 1984

• Date of Listing: 7 November 1990

91.39%FBMKLCI1

410.86%TM1

18.55%AXIATA2

78.83%MAXIS3

249.89%DIGI1

•A3Moody’s

•A-S&P

•AAARAM

Source: Bloomberg1 For the period 22 April 2008 – 19 June 20172 For the period 25 April 2008 – 19 June 20173 For the period 18 November 2009 – 19 June 2017

• As at 19 June 2017• Foreign Shareholding as at 30 April 2017• EPF: Employees Provident Fund Board• Amanah Raya Berhad – for Skim Amanah Saham Bumiputra

About TM

25

32%

12%

13%

17%

26%

26

2017 Mid Term

Revenue Growth1

EBIT Growth1

Customer Satisfaction Measure2

3.5 – 4% 3.5% - 4%

Maintain 2016 RM

level3.5 – 4%

73* 73

2 Using TRiM index measuring end to end customer experience at all touch points. TRiM (Measuring, Managing and Monitoring) is a standardized indicatorsystem. It analyzes, measures and portrays stakeholder relationships on the basis of standardized indicators. The TRI*M Index is an indicator of the status quoof 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 a company's competitive advantage. The information is based on surveys/interviews on a samplecustomer base.”

1 These KPIs are for TM including Webe. 2 This KPI excludes Webe for 2017.

2017 and Mid-term Headline KPI

11,235

11,72212,061

FY2014 FY2015 FY2016

Revenue

Revenue EBIT

EBITDA PATAMI

RM mn RM mn

RM mn RM mn

+4.3% +2.9% -2.9% (Normalised -10.6%) -8.2% (Normalised -4.4%)

+1.6% (Normalised -1.3%) +2.5% (Normalised +3.9%)-15.8% (Normalised -4.9%) +10.8% (Normalised -6.3%)

Note: Unless stated otherwise, all figures shall be inclusive of Webe

Group Results: 3-Year Performance

27

1,294 1,257 1,1541,387 1,240 1,185

FY2014 FY2015 FY2016

EBIT Normalised EBIT

3,636

3,694

3,789

3,7253,677

3,820

FY2014 FY2015 FY2016EBITDA Normalised EBITDA

832700 776

941 905 848

FY2014 FY2015 FY2016PATAMI Normalised PATAMI

FY2014 FY2015 FY2016

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

28%

23%

27%

22%

Note: Unless stated otherwise, all figures shall be inclusive of Webe

RM mn RM mn RM mn RM mn

Internet Others*VoiceData

+12.4%

Change in revenue mix: non-voice revenue now 79%

Internet Data

3-Year Performance: Revenue by Product

28Voice Others

RM11,235mn RM11,722mn RM12,061mn

2,995 3,367 3,668

FY2014 FY2015 FY2016

+8.9%

2,6062,670

2,745

FY2014 FY2015 FY2016

+2.5% +2.8%

2,165 2,178

2,317

FY2014 FY2015 FY2016

+1.1% -5.1%

3,469 3,507

3,330

FY2014 FY2015 FY2016

+0.6% +6.4%

28%

30%30%

19%

31%

23%

27%

19%

Total CAPEX

3,315

Capex / Revenue (%)

Cost % of Revenue1

10,588.2

89.4%

RM mn

Total Cost / Revenue (%)1 Revenue = Operating Revenue + Other Operating Income

27.5%

RM mn

11.037.3

90.5%

10,095.1

88.6%

1,836

16.3%

2,506

21.4%

3-Year Performance: OPEX & CAPEX

29

694

1188 1196

662

784

1449

480

533

670

FY2014 FY2015 FY2016

Core Network Access Support Systems

20.6% 20.6% 21.6%

16.5% 18.3% 18.7%

21.0%21.8% 21.7%

11.0%10.0%

11.3%

7.4% 6.6%6.0%

6.9% 7.4%7.2%

3.2% 3.3%3.6%

2.0% 1.4%0.3%

FY2014 FY2015 FY2016

Bad debt

Marketing Expenses

Supplies & materials

Maintenance

Other operating cost

Manpower

Direct cost

Dep & Amortisation

Telekom Malaysia Berhad ("the Company" or "TM") issues a statement to reiterate its stand on the Company's dividend policy. The

Company’s dividend policy as announced at the time of the demerger between TM and TM International Berhad (TMI) remains

valid. The policy states as follows:

“In determining the dividend payout ratio in respect of any financial year after the Proposed Demerger, our Company intends to

adopt a progressive dividend policy which enables us to provide stable and sustainable dividends to our shareholders while

maintaining an efficient capital structure and ensuring sufficiency of funding for future growth.

Upon completion of the Proposed Demerger, our Company intends to distribute yearly dividends of RM700 million or up to 90% of

our normalised PATAMI, whichever is higher.

Dividends will be paid only if approved by our Board out of funds available for such distribution. The actual amount and timing of

dividend payments will depend upon our level of cash and retained earnings, results of operations, business prospects,

monetization of non-core assets, projected levels of capital expenditure and other investment plans, current and expected

obligations and such other matters as our Board may deem relevant.”

This policy remains unchanged for 2009 and beyond. The Company is currently able to meet this dividend policy, because:

• The Company has sufficient consolidated cash and bank balances of RM1.144 billion as at 30 September 2008, and it is

confident that TMI is able to meet its obligation due to TM of RM4.025 billion by April 2009.

• In the event of a downturn in performance due to unforeseen circumstances, the Company wishes to state that its recurring cash

generation ability is sufficient to meet its current dividend policy.

• TM’s retained earnings is also sufficient to support this current dividend policy in the event of unforeseen shortfalls in normalised

PATAMI.

Given the unprecedented volatility in global markets, the Company will continue to examine the likely impact on its business,

cashflow generation, capital structure and methods in which excess cash beyond the dividend policy and prudent level of cash

required for operations, can be efficiently distributed to our shareholders.

Moving forward, TM is focused on building a strong foundation for its future growth and operational excellence.

TELEKOM MALAYSIA BERHAD (Bursa Malaysia Announcement Reference No TM-081113-37325)

Date Announced :13/11/2008

Reiteration of Dividend Policy

30

Shareholder Returns (2009-2016)

31

1 2016 1st Interim Dividend of 9.3 sen per share and 2nd Interim Dividend of 12.2 sen per share2 Net Dividend Yield based on closing share price at year end3 Exclused Capital Distributions/Repayment

Dividend Payout Policy of RM700mn or up to 90.0% of Normalised PATAMI whichever is higher

RM mn

Payout Ratio3 (%)

Net Dividend Yield2 (%)

6.5%5.6%

4.0%3.2%

4.7%

3.3% 3.2%3.6%

150.9%

124.2%110.5%

79.6% 89.9% 90.5% 88.9% 95.3%

468.3

563.7634.8

881.0

1,038.5

941.2894.9

847.9

706.5 700.3 701.2787.0

993.7

846.8804.2 808.0

1,037.4 1,073.2

2009 2010 2011 2012 2013 2014 2015 2016

Normalised PATAMI Ordinary Dividend Capital Repayment

1

Thank you!Investor Relations

Level 11 (South Wing), Menara TM

Jalan Pantai Baharu

50672 Kuala Lumpur

Malaysia

Tel: (603) 2240 4848/ 7366 / 7388

www.tm.com.my/investor

investor@tm.com.my