1H 2013 RESULTS

ANALYST BRIEFING

29 August 2013

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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

Key Highlights 1H2013 vs. 1H2012

Continued Capex efficiency: Total capex/revenue ratio: 12.5% vs. 16.3% for 1H2012

Normalised EBIT grew by 10.7% to RM629.4mn

Revenue up by 4.8% to RM5bn, driven by Data and Internet & Multimedia growth

Normalised PATAMI up by 17.7% to RM478.5mn

Strong broadband takeup: UniFi grew by >50% vs. 1H2012

Overall good performance

4

Key Operating Indicators

Key Highlights 2Q2013

Financial Performance

• Operating revenue increased by 7.8% YoY and QoQ, to RM2.6bn

• Normalised EBIT increased by 11.9% YoY and 9.7% QoQ, to RM329.3mn; Reported EBIT increased by 10.1% YoY and 10.7% QoQ, to RM329.8mn • Normalised PATAMI grew by 9.6% YoY and 4.5% QoQ, to RM244.5mn; Reported PATAMI lower by 38.6% YoY but higher by 0.3% QoQ, to RM213.9mn

• Internet revenue up by 9.6% YoY to RM638mn driven by UniFi growth and HyppTV content; Data revenue up by 20.7% YoY to RM606mn

• UniFi customer base up 50.3% YoY to 577,000 customers; Overall broadband customer base grew by 7.1% YoY to 2.15mn

5

Performance Overview Financial review Operating highlights

Concluding remarks

6

Note: For Normalised EBIT and Normalised PATAMI refer Slides 8 and 9 •Excludes FX (Gain )/Loss

RM mn

Reported

2Q13 1Q13 % Change

QoQ 2Q12

% Change YoY

1H13 1H12 % Change

1H13 vs 1H12

Revenue 2,613.8 2,424.6 +7.8 2,425.0 +7.8 5,038.4 4,808.8 +4.8

Other Operating Income

22.5 30.7 -26.7 44.1 -49.0 53.2 70.7 -24.8

EBITDA 860.6 806.7 +6.7 797.4 +7.9 1,667.3 1,580.0 +5.5

Depn & Amort. 530.8 508.7 +4.3 497.9 +6.6 1,039.5 1,008.5 +3.1

EBIT 329.8 298.0 +10.7 299.5 +10.1 627.8 571.5 +9.9

Other Gains / (Loss) 3.0 (0.1) >+100.0 (2.4) >+100.0 2.9 (1.0) >+100.0

Net Finance Cost* 56.4 49.6 +13.7 46.9 +20.3 106.0 88.5 +19.8

FX (Gain) / Loss 34.1 18.6 -83.3 64.7 +47.3 52.7 (3.2) >-100.0

Profit Before Tax (PBT) 241.9 229.5 +5.4 185.6 +30.3 471.4 484.9 -2.8

PATAMI 213.9 213.2 +0.3 348.5 -38.6 427.1 599.1 -28.7

Normalised PATAMI 244.5 234.0 +4.5 223.0 +9.6 478.5 406.5 +17.7

Group Results 1H2013

7

Normalised EBIT

In RM mn 2Q13 1Q13 2Q12 1H13 1H12

Reported EBIT 329.8 298.0 299.5 627.8 571.5

Non Operational

Loss on Sale of Assets 0.2 0.1 0.2 0.3 0.4

FX (Gain)/Loss on International trade settlement (0.7) 2.0 (5.3) 1.3 (3.3)

Normalised EBIT 329.3 300.1 294.4 629.4 568.6

Normalised EBIT Margin 12.5% 12.2% 11.9% 12.4% 11.7%

Reported EBIT Margin 12.5% 12.1% 12.1% 12.3% 11.7%

EBIT is calculated as Total Revenue (Operating Revenue + Oth. Operating Income) less Total Cost EBIT Margin is calculated as percentage of EBIT against Total Revenue Normalised EBIT Margin is calculated as percentage of Normalised EBIT against Normalised Total Revenue (Operating Revenue + Oth. Operating Income – Loss on Sale of Assets)

8

Normalised EBIT higher by 10.7% vs. 1H2012

Normalised PATAMI

In RM mn 2Q13 1Q13 2Q12 1H13 1H12

Reported PATAMI 213.9 213.2 348.5 427.1 599.1

Non Operational

Loss on Sale of Assets 0.2 0.1 0.2 0.3 0.4

FX (Gain)/Loss on International trade settlement (0.7) 2.0 (5.3) 1.3 (3.3)

Other (Gain)/Losses* (3.0) 0.1 2.4 (2.9) 1.0

Unrealised FX (Gain)/Loss on Long Term loans

34.1 18.6 64.7 52.7 (3.2)

Tax Incentives - - (187.5) - (187.5)

Normalised PATAMI** 244.5 234.0 223.0 478.5 406.5

9

* Comprise of fair value (FV) changes of FVTPL (FV through P&L) investment gain/loss on disposal for AFS (available for sale) investments. **Current year tax incentives: 1H13: RM108.0mil (HSBB), 1H12: RM40.0mil (last mile), RM47.8mil (HSBB)

Normalised PATAMI 17.7% higher vs. 1H2012

20.7 20.4

17.6 16.7

19.4 21.8

10.9 11.6

8.6 6.6

5.7 6.2

4.1 3.6 1.3 0.8

1H12 1H13

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

RM mn RM mn

Total Cost / Revenue ( %)

RM4,308.0

88.3%

RM4,463.8

87.7%

% of Revenue

1H 2013 vs. 1H 2012

•Higher Manpower cost due to higher salaries and staff benefits (new Collective Agreement) •Lower Direct cost due to lower international & interconnect outpayment •Lower D&A due to lower provision for write-off •Lower Maintenance cost due to lower customer projects

10

444 350

207

184

134

97

0

100

200

300

400

500

600

700

800

1H12 1H13

Access Core Network Support System*

326 247

127

149

59

50

0

90

180

270

360

450

540

1H12 1H13

Access Core Network Support System*

118 103

80

35

75

47

0

70

140

210

280

1H12 1H13 Access Core Network Support System*

Improved capex/revenue ratio Group Capital Expenditure

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

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

HSBB Capex**

Note : BAU – Business As Usual

RM mn

785

512

16.3

BAU Capex

273

5.7

Capex / Revenue ( %)

446

185

3.7

631

12.5

8.9 10.6

Total Capex

11

RM mn

RM mn

30 June 13 31 Dec 12 30 June 13 31 Dec 12Return on Invested Capital 6.98% 6.67% Gross Debt to EBITDA 2.25 2.10

Return on Equity 13.93% 12.31% Net Debt/EBITDA 1.17 0.87

Return on Assets 5.66% 5.17% Gross Debt/ Equity 1.14 1.04

Current Ratio 1.18 1.03 Net Debt/ Equity 0.64 0.49

WACC 6.03% 6.10% Net Assets/Share (sen) 191.4 192.7

30 June 13

Group Cash Flow & Key Financial Ratios

31 Dec 12

RM mn 1H13 1H12

Cash & cash equivalent at start 3,738.3 4,212.6

Cashflows from operating activities 500.6 703.3

Cashflows used-in investing activities (978.6) (1,077.3)

Capex 631.0 785.0

Cashflows from financing activities 187.6 (132.2)

Effect of exchange rate changes (2.0) (1.7)

Cash & cash equivalent at end 3,445.9 3,704.7

Free cash-flow (EBITDA – Capex) 1,036.3 795.0

1

Based on Normalised PATAMI 2

1

31 Dec 12 30 June 13

2

Based on Normalised EBIT 1

12

Performance Overview

Financial review

Operating highlights

Concluding remarks

13

502 585 606 1,016

1,191

2Q12 1Q13 2Q13 1H12 1H13

582 644 638

1,145 1,282

2Q12 1Q13 2Q13 1H12 1H13

946 878 936

1,894 1,814

2Q12 1Q13 2Q13 1H12 1H13

Voice 36%

Data 24%

Internet 25%

Others 15%

Voice 39%

Data 21%

Internet 24%

Others 16%

Group Total Revenue by Product

Data

RM mn

RM mn RM mn

Voice*

Others**

Internet* 1H13

1H12

RM mn RM mn

RM mn

RM5,038mn

RM4,809mn

*2Q13 : Reclassified between voice and internet of RM30mn **Others comprise other telco and non-telco services (i.e ICT-BPO, MMU tuition fees, customer projects)

-1.1%

+6.6%

Sustained Internet and Data growth

-4.2% +9.6%

-0.9%

+12.0%

+20.7%

+3.6%

+17.2% +9.6%

+36.2%

-0.4%

14

395 318

433

754 751

2Q12 1Q13 2Q13 1H12 1H13

Retail 75%

Global & Wholesale

16%

Others 9%

Retail 75%

Global & Wholesale

17%

Others 8%

1,831 1,854 1,957 3,631 3,811

2Q12 1Q13 2Q13 1H12 1H13

195 197 244

372 441

2Q12 1Q13 2Q13 1H12 1H13

399 374 412

806 786

2Q12 1Q13 2Q13 1H12 1H13

Global & Wholesale

Group Total Revenue by Line of Business

1H13 1H12 RM5,038mn RM4,809mn

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

Retail

RM mn RM mn RM mn

Others*

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

+6.9%

+5.6%

Positive growth across Mass Market and Managed Accounts segment

+5.0% +3.3%

+10.2%

-2.5% +25.1%

+23.9%

+18.5%

15

2,524 2,468 2,429 2,390 2,364 2,337

1,526 1,509 1,497 1,486 1,474 1,463

316 384 427 483 532 577

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Fixed Line Residential Fixed Line Business UniFi

1,356 1,330 1,309 1,296 1,292 1,291

302 297 292 287 285 285

316 384 427 483 532 577

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Streamyx Residential Streamyx Business UniFi

269 325 359 406 448 484 46

58 68

77 84

93

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

UniFi Residential UniFi Business Net adds (in thousand)

In thousand

In thousand

+7.1%

+2.1%

Physical Highlights

Broadband Customer Growth

Fixed Line Customer Growth

+43

4,370

2,109 1,974

4,366

+0.4%

+0.2%

+8.5%

Net adds (in thousand)

+50.3%

532

316

UniFi

+37

2,011

+49

+68

384

4,361

2,028

427

+43

+17

4,353

Continued overall Broadband growth; Healthy takeup of Streamyx 8Mbps

2,066

+38 +56

483

4,359

16

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

ARPU (RM) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Fixed Line (DEL)* 34 35 34 32 31 32

Streamyx Broadband** 79 79 80 81 80 82

UniFi*** 181 178 181 181 178 180

ARPU

577

+45 +44

2,153

4,377

In thousand

17

Attractive Product Offerings Continuous enhancement of product offerings across segments

Performance Overview

Financial review

Operating highlights

Concluding remarks

18

Key Takeaways

Financial Performance

• TM Group operating revenue up by 4.8% vs. 1H2012 • Normalised EBIT growth 10.7% to RM629.4mn • Normalised PATAMI grew by 17.7% to RM478.5mn

Broadband Champion • Total broadband customer base 2.15mn

• Unifi remains strong: 577,000 customers as at 1H2013, more than 590,000 at present

• Good takeup of high speed broadband (Streamyx 4 & 8 Mbps) in non-Unifi areas

• Total Capex / Revenue ratio improved to 12.5% • Cost /Revenue ratio improved to 87.7%

19

Shareholder Return • Interim dividend of 9.8 sen per share or

approximately RM350.6mn to be paid to shareholders

Appendices

Normalised EBITDA

In RM mn 2Q13 1Q13 2Q12 1H13 1H12

Reported EBITDA 860.6 806.7 797.4 1,667.3 1,580.0

Non Operational

Loss on Sale of Assets 0.2 0.1 0.2 0.3 0.4

FX (Gain)/Loss on International trade settlement (0.7) 2.0 (5.3) 1.3 (3.3)

Normalised EBITDA 860.1 808.8 792.3 1,668.9 1,577.1

Normalised EBITDA Margin 32.6% 32.9% 32.1% 32.8% 32.3%

Reported EBITDA Margin 32.6% 32.9% 32.3% 32.7% 32.4%

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 Normalised EBITDA Margin is calculated as percentage of Normalised EBITDA against Normalised Total Revenue (Operating Revenue + Oth. Operating Income – Loss on Sale of Assets)

Normalised EBITDA higher by 5.8% vs. 1H2012

21

2Q13 1Q13 2Q12 1H13 1H12

Comments (1H2013 vs. 1H2012)

Operating Revenue (RM mil) 2,613.8 2,424.6 2,425.0 5,038.4 4,808.8 -

Other Operating Income (RM mil)

22.5 30.7 44.1 53.2 70.7 -

Direct Costs % 15.9 17.5 16.9 16.7 17.6 Lower international and interconnect outpayment RM mil. 417.9 430.0 418.1 847.9 857.0

Manpower % 21.2 22.5 19.6 21.8 19.4 Higher salaries and staff benefits

RM mil. 558.1 551.3 483.4 1,109.3 949.0

Supplies & Materials % 6.7 5.6 5.2 6.2 5.7 Higher materials cost for ICT projects, equipment, cable cost RM mil. 176.7 136.7 129.1 313.4 276.8

Bad & Doubtful Debts % 0.4 1.3 0.5 0.8 1.3 -

RM mil. 9.7 31.4 11.6 41.1 64.7

Marketing Expenses % 3.9 3.3 4.3 3.6 4.1 Lower A&P and dealers’ commission

RM mil. 103.0 80.9 106.1 183.9 200.5

Maintenance Cost % 7.2 6.0 9.6 6.6 8.6 Lower maintenance due to lower customer projects, ie at TM Govt RM mil. 189.0 147.1 236.5 336.1 417.5

Other Operating Costs % 12.2 11.0 11.6 11.6 10.9 Higher due to cost of disposal of Ijok land and international services at ITNT. RM mil. 321.3 271.2 286.9 592.6 534.0

Depreciation & Amortisation % 20.1 20.7 20.2 20.4 20.7 Higher absolute cost due to higher asset base but lower as percentage of revenue RM mil. 530.8 508.7 497.9 1,039.5 1,008.5

Total (RM mil) 2,306.5 2,157.3 2,169.6 4,463.8 4,308.0 -

Total (%) 87.5 87.9 87.9 87.7 88.3 -

Cost % of Revenue

22

6,894.8

165.2

8,513.7

5,130.2

1,202.6

2,129.4

51.5

15,573.7

6,808.8

1,740.9

466.1

3,738.7

863.1

6,622.2

3,545.5

2,010.2

1,066.5

186.6

14,637.6

749.5

15,573.7

As at 31 Dec 2012

6,848.7

152.4

9,188.2

5,830.0

1,195.5

2,087.5

75.2

16,189.3

7,188.0

2,377.8

461.9

3,446.3

902.0

6,079.5

2,782.2

2,008.9

1,288.4

1,108.5

14,286.1

794.7

16,189.3

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 Million As at 30 June 2013

Group Balance Sheet

23

770 727 774 1,528 1,501

307 383 388 625 771

577 643 636

1,135 1,279

188 112 167

359 279

2Q12 1Q13 2Q13 1H12 1H13

Others

Internet

Data

Voice

RETAIL

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

RM mn +5.6%

+6.9%

1,957 1,854 1,831

Revenue by Product

3,811 3,631

+5.0%

24

181 154 163 375

317

249 247 266

485 513 28

19 32

49 51

2Q12 1Q13 2Q13 1H12 1H13

Others

Data

Voice

Others : Includes internet

Revenue by Product

399 374

412

806 786

RM mn

+10.2%

+3.3% -2.5%

GLOBAL & WHOLESALE

THANK YOU Any 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