3Q 2010 RESULTS

26 November 2010

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Disclaimer

Performance Overview

Financial review

Operating highlights

Concluding remarks

3

4

Key Highlights YTD 2010

Revenue growth of 2.1% YoY to RM6.5bn due to continued momentum in data and internet as well as higher contribution from other

telecommunication services.

Normalised EBITDA margin at 32.9% in line with 2010 Group target of 33% as a result of increasing revenue and controlled spending

Successful roll-out of UniFi to 26 exchanges with more than 29,000 closed orders

Maintained leadership position in Broadband - Strong increase of subscriber base by 14.2% to 1.6m from 1.4m after optimization of product portfolio

and more effective go-to-market strategy

Strong cash position of RM3.8bn due to continuous capex management and divestment of non-core assets

BAU Capex lower by 27.6% YoY to RM580.9m (9.0% of revenue); HSBB Capex of RM856.5m in line with plan (YTD 2009 – RM793m)

Improvements across the board

Operating revenue increased by 4.5% YoY and 2.0% QoQ to RM2,194.6m in 3Q10 as a result of higher contribution from leased & data, internet and multimedia and other telecommunication services

EBITDA of RM759.5m, +9.3% YoY and 10.7% QoQ respectively due to the higher operating revenue and other income. Normalised EBITDA margin for 3Q10 of 33.2% is slightly higher than 3Q09 of 33.1% and 31.5% in 2Q10

PATAMI of RM438.5m, significantly higher compared to 3Q09 and 2Q10 by 144.8% and 252.5% respectively due to strong operating performance and higher unrealised foreign exchange gain

High growth of data and other telecommunication revenue ( +24.6% and +34.2% YoY, +3.8% and +18.8% QoQ respectively), and slower decline in voice revenue (-5.3% against 3Q09, compared to -2.2% against 2Q10)

Continuous growth of broadband subscribers with 55k net addition in 3Q10 as compared to 56k net adds in 2Q10 and 28k net adds in 3Q09 (+96%).

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

Key Operating Indicators

Financial Highlights 3Q 2010

Financial Performance 3Q09 2Q10

Improved performance for both YoYand QoQ

Successfully launched UniFi in March 2010

More than 700,000 premises already passed by 15 November 2010 on the back of 26 exchanges.

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

More than 21,000 installations and 29,000 orders by 15 November 2010

83% of our customers are satisfied with UniFi

6

UniFi updateSuccessful roll-out of UniFi to additional 22exchanges with more than 21,000 installationsand 29,000 orders closed

2007 2008

Capital Expenditure, excluding HSBB

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 @ RM3.42 as of 30 Sept 2010

21.2 16.7 14.1

Capex / Revenue ratio( %)

2009 YTD10

0.6

9.0

6.4

Credit Rating A-/AAA A-/AAA A-/AAA A-/AAA

3.8

7

Active Capital Management Approach

Net Dividend Yield 7.4% 6.4% 6.5% 5.7%*

Strong cash flow generation due to tight capexmanagement resulting in healthy balance sheet

6.8 7.0 6.7

3.52.12.2

1

2

3

Performance Overview

Financial review

Operating highlights

Concluding remarks

8

RMmn

Reported

Comments

3Q10 2Q10% Change

QoQ3Q09

% Change YoY

YTD 10 YTD 09% Change

YTD on YTD

Revenue 2,194.6 2,150.9 +2.0 2,101.0 +4.5 6,470.4 6,335.4 +2.1Positive growth contributed by Data & Other telecommunications

Other Operating Income

39.7 29.6 +34.1 23.7 +67.5 100.2 142.6 -29.7YTD09 included proceeds from selling of Axiata rights

EBITDA 759.5 686.2 +10.7 694.9 +9.3 2,165.7 2,312.4 -6.3 -

EBITDA margin 34.0% 31.5% +2.5pp 32.7% +1.3pp 33.0% 35.7% -2.7pp -

Normalised EBITDA 742.3 687.8 +7.9 704.2 +5.4 2,161.8 2,260.3 -4.4 -

Normalised EBITDA Margin

33.2% 31.5% +1.7pp 33.1% +0.1pp 32.9% 34.9% -2.0 -

Depn & Amort. 495.8 477.5 +3.8 492.6 +0.6 1,430.1 1,543.4 -7.3Lower YoY due to lower capex and fully depreciated assets

Net Finance Cost 51.4 63.6 -19.2 40.0 +28.5 187.3 127.6 +46.8Higher YoY due to absence of interest income from Axiata

FX (Gain) / Loss (160.9) (18.1) +789.0 (45.5) +253.6 (345.6) 6.8 +5182.4Ringgit strenghten QoQ to RM3.244 from RM3.261

Profit Before Tax 505.9 166.9 +203.1 217.8 +132.3 1,025.4 668.0 +53.5 -

PATAMI 438.5 124.4 +252.5 179.1 +144.8 805.8 472.8 +70.4 -

Normalised PATAMI 127.6 104.2 +22.5 108.5 +17.6 324.5 319.1 +1.7-

Note: EBITDA Margin is calculated as percentage of EBITDA against Total Revenue + Other Operating Income 9

Group Results 3Q10

24.4 21.8

21.420.9

18.418.2

15.017.5

4.5 5.1

3.5 4.52.4 0.7

YTD09 YTD10

10

RM mn

Total Cost / Revenue ( %)

RM5,709.0

88.1%

RM5,835.0

88.8%

Revenue = Operating Revenue + Other Operating Income

Cost % of Revenue1

Lower bad debt due to better collection for data services

Other operating costs increased mainly as a result of higher network maintenance cost & other non-recurring UniFi related expenses

Higher marketing expenses due to UniFi launch, product and branding advertisement, HSBB awareness campaign as well as higher commission in line with higher installation

The comparatives for 3Q09 & YTD09 were amended to be consistent with the 2010 presentation pursuant to adoption of FRS139

(Please refer to Appendix for quarterly details & breakdown)

Slight increase in cost ratio due to UniFi related expenses

1

In RM mn 3Q10 2Q10 3Q09* YTD Sept 10

YTD Sept 09*

Reported EBITDA 759.5 686.2 694.9 2,165.7 2,312.4

Non Operational

ESOS (Income) / Cost - net (17.2) 0.5 9.3 (5.0) 19.2

Reversal of provision for legal case - - - - (20.0)

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

Normalised EBITDA 742.3 687.8 704.2 2,161.8 2,260.2

Normalised EBITDA Margin 33.2% 31.5% 33.1% 32.9% 34.9%

Reported EBITDA Margin 34.0% 31.5% 32.7% 33.0% 35.7%

Normalised EBITDA

11

*The comparatives for 3Q09 & YTD09 were amended to be consistent with the 2010 presentation pursuant to adoption of FRS139

Strong EBITDA margin in line with Headline KPI

In RM mn 3Q10 2Q10 3Q09* YTD Sept 10

YTD Sept 09*

Reported PATAMI 438.5 124.4 179.1 805.8 472.8

Non Operational

ESOS (Income) / Cost - net (17.2) 0.5 9.3 (5.0) 19.2

Reversal of provision for legal case - - - - (20.0)

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

Other (Gain) / Loss – net** (132.8) (3.7) (10.0) (131.8) (32.8)

Non-recurring net finance cost - - (24.4) - (75.5)

Unrealised Forex (Gain)/ Loss on long term loans

(160.9) (18.1) (45.5) (345.6) 6.8

Normalised PATAMI 127.6 104.2 108.5 324.5 319.1

Normalised PATAMI

12

*The comparatives for 3Q09 & YTD09 were amended to be consistent with the 2010 presentation pursuant to adoption of FRS139

**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. 3Q10 included gain on disposal of Measat, gain on disposal of AXIATA shares, FX forward Contract.

Higher PATAMI IN 3Q10 compared to previous quarter asa result of higher revenue

546 636

684368

365

434

0

200

400

600

800

1000

1200

1400

1600

1800

YTD09 YTD10

Access Core Network Support System*

117

358

452

228

224271

0

100

200

300

400

500

600

700

800

900

YTD09 YTD10

Access Core Network Support System*

429278

232

140

141

163

0

200

400

600

800

1000

YTD09 YTD10Access Core Network Support System*

Group Capital Expenditure

Total Capex

HSBB Capex**

Note : BAU – Business As Usual

** Gross capex to be shared with Government equallyNote: Government grant 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)

RM mn

1,5951,438

793857

24.6 21.9

13

BAU Capex

802

581

12.4

9.0

Capex / Revenue ( %)

Continued Improvement in Capex/ Revenue ratio from procurement and asset optimisation

30 June 2010 31 Dec 09 30 June 10 31 Dec 09Return on Invested Capital 6.10% 6.74% Gross Debt to EBITDA 2.27 2.16

Return on Equity 5.98% 5.43% Gross Debt/ Equity 0.85 0.96

Return on Assets 4.73% 3.70% Net Debt/ Equity 0.34 0.46

Current Ratio 1.56 1.39 Net Assets/Share (sen) 209.9 197.2

14

1

30 Sept 10

1 Based on Normalised PATAMI, comparative for Dec’09 is amended to be consistent with current year computation

30 Sept 10

Group Cash Flow & Key Financial Ratios

31 Dec 09 31 Dec 09

RM mn YTD10 YTD09

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

Cashflows from operating activities 1,662.8 1,736.1

Cashflows from / (used-in) investing activities (673.7) 2,905.4

Capex (n1) 995.0 1,110.6

Cashflows from financing activities (687.1) (3,984.0)

Effect of exchange rate changes 6.4 9.1

Cash & cash equivalent at end 3,798.6 2,761.3

Free cash-flow (EBITDA – Capex) 1,170.7 1,201.8

n1 – net of HSBB grant received from Government ( YTD10 - RM443.0mn, YTD09 - RM484.4mn)

Continuous strong Cash Balance tosupport business requirement

2

2Based on Normalised EBIT

Performance Overview

Financial review

Operating highlights

Concluding remarks

15

319355

328

480

357 341383

100

200

300

400

500

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

Voice44%

Data20%

Internet19%

Others17%

1,0421,011 1,014

978 968 982 960

500

600

700

800

900

1,000

1,100

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

377 392 405 388 403 402 411

0

100

200

300

400

500

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

367 371 354

427398

425 441

0

100

200

300

400

500

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

16

Group Total Revenue by Product

Data

RM mn

RM mnRM mn

Voice

Others

Internet

YTD10

YTD09

RM mn

-2.2%

-5.3% +1.5%

+2.2%

+16.8%

+12.3%

+24.6%

+3.8%

* include higher revenue for MERS999

*

Voice49%

Data17%

Internet18%

Others16%

176 187 185

3Q09 2Q10 3Q10

214 215 222

3Q09 2Q10 3Q10

1,641 1,665 1,717

3Q09 2Q10 3Q10

Retail78%

Global10%

Wholesale9%

Others3%

+1.4%

Group Total Revenue by Line of Business

17

Global Others

YTD10

YTD09

WholesaleRM mn

-1.1%

+5.1%

RM mn

-14.5%

RM mn

+3.3%

+3.7%

Retail

RM mn

+3.1%

+4.6%

Note: Total revenue is after inter-co elimination

Retail78%

Global10%

Wholesale9%

Others3%

70 83 71

3Q09 2Q10 3Q10

771 796 8251,345 1499 1,761

1,4921,918499 507 525

724746

772940

1,482

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Oct' 10

Other States Klang Valley

1,133 1,165 1,135 1,163 1,212 1,261 1,311

200 206 263 268 273 280 285

0

500

1,000

1,500

2,000

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

Residential Business

2,784 2,792 2,797 2,767 2,763 2,775 2,794

1,506 1,528 1,534 1,554 1,553 1,558 1,533

0

1,000

2,000

3,000

4,000

5,000

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

Residential Business

In thousand

1,370 1,398 1,431

18

In thousand

-0.1%

4,320

+14.2%

4,331

-0.1%

4,321

1,485

+3.6%

4,316

Physical Highlights

Broadband Customers Growth

Fixed Line Customers Growth

WiFi Hotspot Zones

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

Business* 74 76 61 59 65 69 63

Residential* 20 20 19 18 18 18 17

Streamyx Broadband** 88 85 86 84 82 81 77

1,303 1,350

2,0692,245

+80.1%

-4.0%

*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

2,432

4,327

+55

1,596

Maintained broadband leadership with continued growth

3,400

Performance Overview

Financial review

Operating highlights

Concluding remarks

19

20

Key Takeaways

UniFi / Broadband

Financial Performance

Leadership in Commercial / Operational Excellence

Continuous focus in profitability for key products by up sellingand strengthen wholesale revenue

Launched cost initiatives to improve operationalefficiency, optimize Capex investment and reduce workingcapital

Revenue growth of 2.1% in YTD10 and +4.5% in 3Q10 drivenby data, internet and other telecommunication services.

YTD10 EBITDA margin maintained in the 30s with continuedcost management in a highly competitive market

Continued capex management and divestment of non coreassets resulted in strong cash position

Orders and installations for UniFi gaining momentum as morecoverage areas are introduced

Upswing of broadband subscribers as a result of successfulproduct bundling and improved go-to-market strategy

Execution Excellence Intensified capacity up skilling to support HSBB and create highvalue workforce

Customer Centricity Keeping customers informed & continuous improvements in

key measures for QoS as main focus Committed to spend at least 5% of revenue to further improve

customer experience

Appendices

3Q10 2Q10 3Q09 YTD10 YTD09 YTD10 vs YTD09

Operating Revenue (RM mil) 2,194.6 2,150.9 2,101.0 6,470.4 6,335.4 -

Other Operating Income(RM mil)

39.7 29.6 23.7 100.2 142.6 -

Direct Costs % 19.4 22.1 23.9 20.9 21.4 •Higher USP cost•Content cost and outpayment for VSATRM mil. 433.3 481.7 502.6 1,376.2 1,358.3

Manpower % 18.3 17.2 18.8 18.2 18.4 • Annual increment• increase in headcounts due to UniFiRM mil. 409.0 376.2 395.3 1,195.8 1,167.4

Supplies & Materials % 5.2 5.0 4.6 5.1 4.5 • Higher subscriber equipment costs in line with customer acquisition cost for UniFi and broadband packagesRM mil. 117.1 109.8 86.5 338.2 287.8

Bad & Doubtful Debts % 0.8 - 2.0 0.7 2.4 • Lower due to reversal of excess provision for voice and data servicesRM mil. 17.5 (2.6) 41.8 48.5 155.1

Marketing Expenses % 4.7 4.8 3.6 4.5 3.5 • Higher A&P for UniFi related activities & promotion•Higher commission in line with increase streamyx subscribersRM mil. 105.3 104.9 75.4 297.9 223.5

Other Operating Costs % 17.6 19.5 15.4 17.5 15.0 • Higher maintenance and installation activities.RM mil. 392.6 424.3 328.2 1,148.3 973.5

Depreciation & Amortisation % 22.2 21.9 23.4 21.8 24.4-

RM mil. 495.8 477.5 492.6 1,430.1 1,543.4

Total (RM mil) 1,970.6 1,971.8 1,922.4 5,835.0 5,709.0 -

Total (%) 88.2 90.4 90.5 88.8 88.1 -

Cost % of Revenue

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

7,487.7

139.6

8,665.5

5,532.4

1,739.7

1,380.1

13.3

16,292.8

6,741.9

1,811.0

558.9

3,799.1

572.9

4,330.4

2,880.6

841.2

608.6

2,411.5

12,436.2

1,445.1

16,292.8

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 Sept 2010 As at 31 Dec 2009

23

Group Balance Sheet

Consumer32%

SME25%

Enterprise25%

Government18%

2,454 2,390

555 656

1,187 1,206

7441,060

0

1,000

2,000

3,000

4,000

5,000

6,000

YTD09 YTD10

Others

Internet

Data

Voice

803 805 875

194 220228

403 401 327

247 301383

0

500

1000

1500

2000

3Q09 2Q10 3Q10

Others

Internet

Data

Voice

Consumer34%

SME27%

Enterprise22%

Government17%

Total Revenue By Products

RM mn

RM mn +2.6%

+3.1%

1,6651,641

4,919

5,047 YTD10

Note : Breakdown is before inter company elimination

+4.6%

RETAIL

Revenue by ProductRevenue by Business Unit

YTD09

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

1,717

24

83 71 58

107 132 146

1412 14

0

50

100

150

200

250

3Q09 2Q10 3Q10

Voice Data Others

254198

369412

48 42

0

200

400

600

800

YTD09 YTD10

Voice Data Others

ASP19%

MC81%

RM mn

RM mn

MC : Malaysian CarrierASP : Application Service Provider

Others : Include internet

WHOLESALE

Revenue by ProductRevenue by Customer Segment

593 562

-5.2%

176187 185

-1.1%

+5.1%

YTD10

YTD09

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

ASP17%

MC83%

Strong Growth in Data offset the declining Voice revenue

347 335

301 325

18 23

0

100

200

300

400

500

600

700

800

YTD09 YTD10

Voice Data Others

127 109 113

97 113 112

0 9 9

0

100

200

300

3Q09 2Q10 3Q10

Voice Data Others

Africa & Middle East

8%America

10%

Europe6%

South Asia45%

North Asia12%

Oceania7%

Others12%

611 639YTD10

YTD09RM mn

RM mn

Others : Include internet

214

GLOBAL

Revenue by Product

Revenue by Region+4.6%

215 222

+3.7%

+3.3%

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

Africa & Middle East

10%

America7%

Europe11%

South Asia39%

North Asia13%

Oceania7%

Others13%

Maintain YoY and QoQ growth despite price erosions and weakening USD against MYR

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