3Q 2011 RESULTS

ANALYST BRIEFING

24 November 2011

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

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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 YTD Sept 2011

4

HSBB on track to reach 1.1 mn premises passedand Unifi demand continued to be strong at >16% takeup.

-One of the fastest and lowest capex HSBB roll-outs in the world-Ranked Top 10 in Asia Pacific region

Normalised EBITDA margin improved to 33.9%

Operating revenue up by 3.6% to RM6,703.5mn, from RM6,470.4mn Internet & Multimedia and Data revenue continued to grow

Normalised PATAMI up by 21.3% to RM394.7mn, from RM325.3mn

Key Operating Indicators

Key Highlights 3Q 2011

Financial Performance

Continued QoQ and YoY growth

3Q11 vs2Q11

5

Operating revenue grew by 3.9% QoQ and 5.8% YoY to RM2,321.7mn. Internet & Multimedia and Other revenue showed highest growth.

EBITDA for 3Q11 up 8.8% QoQ and 7.0% YoY to RM812.5mn. Normalised EBITDA up 4.6% QoQ and 8.4% YoY to RM803.3mn

Normalised PATAMI up 1.6% QoQ and 8.8% YoY to RM137.3mn

Broadband subscribership grew to 1.87mn customers up 2.2% QoQand 16.2% YoY.

TM Wifi hotspot zones grew by 7.5% QoQ and 611.9% YoY to 17,313 sites.

3Q11 vs3Q10

0.6

3.3

8.9

31.0%

10.4%

1.11.21.4

Cash Balance (RM bn) 2.1 3.5 3.5

2008

Capital Expenditure, excluding HSBB(RM bn)

Our 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 TRS: Source Bloomberg2 After interim dividend paid in September 20113 Normalised EBIT / Total Revenue

16.7 14.1

2009 2010

12.8

Focus on Shareholder Value CreationGrowing enterprise value through improving return on capital

1Total Return to Shareholder (TRS)

7.7% 42.9% 24.0%

EBIT Margin 10.8%10.9% 10.6%3

Capex / Revenue ratio( %)

6

2

YTD11

Performance Overview

Financial review

Operating highlights

Concluding remarks

7

Note: EBITDA Margin is calculated as percentage of EBITDA against Revenue + Other Operating Income* Excludes FX (Gain )/Loss

RMmn

ReportedComments

(YTD11 vs YTD10)

3Q11 2Q11% Change

QoQ3Q10

% Change YoY

YTD11 YTD10% ChangeYTD11 vs

YTD10

Revenue 2,321.7 2,233.6 +3.9 2,194.6 +5.8 6,703.5 6,470.4 +3.6Continued higher data and internet revenue

Other Operating Income

27.8 34.8 -20.1 39.7 -30.0 83.9 100.2 -16.3Lower due to lower ESOS income and lower service tax recovery, sale of scrap, insurance claims

EBITDA 812.5 746.9 +8.8 759.5 +7.0 2,290.3 2,165.7 +5.8Higher YoY due to higher revenue and lower operating cost

EBITDA margin 34.6% 32.9% +1.7pp 34.0% +0.6pp 33.7% 33.0% +0.7pp-

Normalised EBITDA 803.3 768.0 +4.6 740.9 +8.4 2,300.3 2,162.6 +6.4 -

Normalised EBITDA Margin

34.2% 33.9% +0.3pp 33.2% +1.0pp 33.9% 32.9% +1.0pp -

Depn & Amort. 580.7 511.4 +13.6 495.8 +17.1 1,592.1 1,430.1 +11.3Higher due to higher asset base, new asset additions and provision for asset write-off.

Net Finance Cost* 50.9 41.0 +24.1 51.4 -1.0 134.6 187.3 -28.1Lower interest expense YoY due to redemption of Global Bonds 2010

FX (Gain) / Loss 122.5 (11.1) -1,203.6 (139.0) -188.1 73.0 (319.5) -122.8USD strengthened vs. RM by 3.3%

Profit Before Tax 337.2 207.1 +62.8 505.9 -33.3 771.6 1,025.4 -24.8 -

PATAMI 302.2 127.2 +137.6 438.5 -31.1 592.7 805.8 -26.4Lower due to unrealised FX loss on USD debts

Normalised PATAMI 137.3 135.1 +1.6 126.2 +8.8 394.7 325.3 +21.3 -

Group Results 3Q11

8

In RM mn 3Q10 2Q11 3Q11 YTD10 YTD11

Reported EBITDA 759.5 746.9 812.5 2,165.7 2,290.3

Non Operational

ESOS (Income) - net (17.2) - - (5.0) -

FX (Gain)/Loss on International trade Settlement

(1.4) 20.7 (9.4) 0.8 9.0

Loss on sale of staff housing loans - 0.4 0.2 1.1 1.0

Normalised EBITDA 740.9 768.0 803.3 2,162.6 2,300.3

Normalised EBITDA Margin 33.2% 33.9% 34.2% 32.9% 33.9%

Reported EBITDA Margin 34.0% 32.9% 34.6% 33.0% 33.7%

Normalised EBITDA

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

9

Improving margins due to higher operating revenue

In RM mn 3Q10 2Q11 3Q11 YTD10 YTD11

Reported PATAMI 438.5 127.2 302.2 805.8 592.7

Non Operational

ESOS (Income) - net (17.2) - - (5.0) -

FX (Gain)/Loss on International trade settlement

(1.4) 20.7 (9.4) 0.8 9.0

Loss on sale of staff housing loans - 0.4 0.2 1.1 1.0

Other (Gain) – net* ^(154.7) (2.0) (278.3) (157.9) (281.0)

Unrealised FX (Gain)/Loss on Long Term loans (139.0) (11.2) 122.6 (319.5) 73.0

Normalised PATAMI 126.2 135.1 137.3 325.3 394.7

Normalised PATAMI

* Comprise fair value (FV) changes of FVTPL (FV through P&L) investment and gain/loss on disposal for AFS (available for sale) investments. ^ Included Gain on disposal of MEASAT

10

21.8 23.5

20.8 18.4

18.2 20.1

11.9 11.0

5.7 5.9

5.1 6.04.5 4.10.7 0.8

YTD10 YTD11

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)

Improvement in Cost/revenue ratios will continue to be emphasized

1

11

RM mnRM mn

Total Cost / Revenue ( %)

RM5,835.0

88.8%

RM6,089.2

89.7%

YTD Sept 2011 vs. YTD Sept 2010•Higher Depreciation & Amortisationmainly due to higher asset base and new asset additions, and provision for asset write-off

•Lower Direct Cost mainly due to lower interconnect and international outpayment

•Higher Manpower cost mainly due to higher staff benefits

•Lower marketing expenses mainly due to lower A&P

•Lower Other Operating Cost mainly due to lower professional charges & fees, rental and international services

636 686

368

527

434211

0

200

400

600

800

1000

1200

1400

1600

YTD10 YTD11

Access Core Network Support System*

358 421

228

343

27162

0

100

200

300

400

500

600

700

800

900

YTD10 YTD11

Access Core Network Support System*

278 265

140 184

163 149

0

100

200

300

400

500

600

700

YTD10 YTD11

Access Core Network Support System*

Group Capital Expenditure

** Gross capex to be shared with Government equally1H2010 capex has been restated to include IPTV

Note: 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)

Capex efficiencies remain the focus

12

Total Capex

HSBB Capex**

Note : BAU – Business As Usual

RM mn

1,438

857

22.2

BAU Capex

581

9.0

Capex / Revenue ( %)

826

598

8.9

1,424

21.2

30 June 11 31 Dec 10 30 June 11 31 Dec 10Return on Invested Capital 5.81% 6.03% Gross Debt to EBITDA 1.92 2.09

Return on Equity 7.49% 7.67% Gross Debt/ Equity 0.98 0.72

Return on Assets 4.62% 4.73% Net Debt/ Equity 0.45 0.27

Current Ratio 1.76 1.62 Net Assets/Share (sen) 177.6 216.1

WACC 6.39% 6.58%

2

30 Sept 11

2 Based on Normalised PATAMI, comparative for Dec’10 is amended to be consistent with current year computation

30 Sept 11

Group Cash Flow & Key Financial Ratios

31 Dec 10

RM mn YTD10 YTD11

Cash & cash equivalent at start 3,490.2 3,488.0

Cashflows from operating activities 1,662.8 1,661.8

Cashflows from / (used-in) investing activities (673.7) (653.6)

Capex* 995.0 860.7

Cashflows from financing activities (687.1) (1,160.4)

Effect of exchange rate changes 6.4 (4.6)

Cash & cash equivalent at end 3,798.6 3,331.2

Free cash-flow (EBITDA – Capex) 1,170.7 1,429.6

•net of HSBB grant received from Government (YTD11 – RM563.3mn, YTD10 - RM443.0mn)

Strong Cash Balance to support futurebusiness requirements

1

Based on Normalised EBIT1

1

13

31 Dec 10

Performance Overview

Financial review

Operating highlights

Concluding remarks

14

Voice42%

Data20%

Internet22%

Others16%

411488 519

1,2161,460

3Q10 2Q11 3Q11 YTD10 YTD11

960 946 9472,910 2,817

3Q10 2Q11 3Q11 YTD10 YTD11

383 345 400

1,080 1,091

3Q10 2Q11 3Q11 YTD10 YTD11

441 455 4561,264

1,336

3Q10 2Q11 3Q11 YTD10 YTD11

Voice45%

Data19%

Internet19%

Others17%

Group Total Revenue by Product

15

Data

RM mn

RM mn RM mn

Voice

Others

InternetYTD11

YTD10

RM mnRM mn

RM mn

RM6,704mn

RM6,470mn

+0.1%

-1.4% -3.2%

+6.4%

+26.3% +20.1%

+0.2%

+3.4% +5.7%

+15.9%

+4.4% +1.0%

Non-voice revenue now 58% of total, led by Internet which grew by 26.3% YoY in 3Q11

Retail79%

Global9%

Wholesale8%

Others4%

71 7398

223 250

3Q10 2Q11 3Q11 YTD10 YTD11

222 192 215

639 589

3Q10 2Q11 3Q11 YTD10 YTD11

185 188 191

562 569

3Q10 2Q11 3Q11 YTD10 YTD11

561 599 629 1,679 1,820

450 467 4581,326 1,365355 387 370

1,073 1,094352 327 361

969 1,016

3Q10 2Q11 3Q11 YTD10 YTD11

Consumer SME Enterprise Government

Group Total Revenue by Line of Business

16

YTD11

YTD10

RM6,704mn

RM6,470mn

* Others comprise of revenue from Property Development, TM R&D, TMIM, UTSB and MKL

Retail Wholesale

RM mn

RM mnRM mn

RM mn

1,8171,7811,718

Note: Due to lower bandwidth sales

Global Others*

+12.0%

-3.2% -7.8%

5,0475,295

+34.2%

+38.0% +12.1%

+2.0%

+5.8% +4.9%

+1.6%

+3.2% +1.2%

Retail78%

Global10%

Wholesale9%

Others3%

Consumer & Government segments showed highestGrowth YTD

1,212 1,261 1,311 1,393 1,417 1,425 1,393

273 280 285 287 291 296 3144 1433 64 109 164

-

400

800

1,200

1,600

2,000

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

Residential Business UniFi

2,763 2,775 2,794 2,799 2,710 2,692 2,633

1,553 1,558 1,533 1,535 1,607 1,596 1,568

4 14 33 64 109 164

0

1,000

2,000

3,000

4,000

5,000

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11Residential Business UniFi

1499 1,761 1,4926,608 7,894 9,149 10,306

746772 940

4,3745,357

6,9627,007

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

Other States Klang Valley

In thousand

In thousand

+0.6%

+16.2%

-0.7%

1,485

+2.2%

4,316

Physical Highlights

Broadband Customer Growth

Fixed Line Customer Growth

WiFi Hotspot Zones

2,245

+611.9%

+7.5%

*Call Usage Only ** Streamyx Gross ARPU only ^ Streamyx Net ARPU

Net adds (in thousand)

1,545

+602,533

4,337

2,432

4,341

+65

1,61010,982

+103

1,713

4,367

Note: inclusive of NBI initiative

17

Broadband growth driven by Unifi

+59

1,772

4,381

13,251

ARPU (RM) 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

Fixed Line (DEL)* 35 35 35 34 33 34 34

Streamyx Broadband** 82 81 77 78 77^ 77^ 78^

1,830

+58

4,397

16,1111,871

+41

17,313

4,365

3,60312,456

28,771 55,15693,107

139,896

448

1,445

4,1258,385

15,912

24,479

2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

Residential Business

UniFi – leading & shaping the future

18

UniFi update as at 21 November 2011

Delivered 1,096,000 premises passed covering 77 exchanges

Signed HSBB Services Agreement with3rd access-seeker on 13 October 2011for HSBB (Access) and HSBB(Transmission) services

HSBB ARPU as at 30 Sept 2011 is RM184

Unifi takeup continues to exceed expectations

Activated more than 202,000 customers

4,051

13,901

32,89663,541

+50.8%

+10

Net adds (in thousand)

109,019

+19 +31 +45

+1082.5%

164,375

+55

Performance Overview

Financial review

Operating highlights

Concluding remarks

19

Key Takeaways

Financial Performance

• TM Group revenue up by 3.6% compared to YTDSept 2010 driven by Internet & Multimedia and DataServices

• Normalised EBITDA margin improved to 33.9%• Normalised PATAMI up 21.3%

Broadband Champion• Broadband subscribership continues to grow:

1.871mn customers in total

• HSBB on track to meet 2011 PPP Agreement targetof 1.1mn premises passed

Capital Management• Capex efficiency - down to 21.2% of revenue, due to

planning efficiency and procurement savings• Completed disposal of final tranche of Axiata shares

Appendices

3Q10 2Q11 3Q11 YTD10 YTD11 YTD Sept 11 vs YTD Sept 10

Operating Revenue (RM mil) 2194.5 2,233.6 2,321.7 6,470.4 6,703.5 -

Other Operating Income(RM mil)

39.7 34.8 27.8 100.2 83.9 -

Direct Costs % 19.2 18.6 18.0 20.8 18.4 Lower Interconnect and International OutpaymentRM mil. 429.5 422.0 423.4 1,365.3 1,248.6

Manpower % 18.3 19.9 19.5 18.2 20.1 Higher staff benefits, higher welfarefund paymentsRM mil. 408.9 452.4 458.3 1,195.8 1,363.0

Supplies & Materials % 5.2 6.9 5.9 5.1 6.0 Higher customer acquisition cost, cable cost and customer projectsRM mil. 117.1 156.1 139.5 338.2 404.2

Bad & Doubtful Debts % 0.8 0.5 0.3 0.7 0.8 Higher bad debts from Consumer and GovernmentRM mil. 17.5 10.3 6.8 48.5 53.0

Marketing Expenses % 4.7 3.3 4.7 4.5 4.1 Lower A&P as 2010 included HSBB launch

RM mil. 105.3 74.4 109.7 297.9 278.0

Maintenance Cost % 5.8 6.0 6.9 5.7 5.9 New maintenance contracts and NGN NE network, higher equipment rentalRM mil. 130.2 136.9 162.4 377.6 402.2

Other Operating Costs % 11.9 11.9 10.1 11.9 11.0 Lower professional fees & charges, training costRM mil. 266.3 269.4 236.9 781.6 748.1

Depreciation & Amortisation % 22.2 22.5 24.7 21.8 23.5 Higher asset base and new asset additions and asset impairmentRM mil. 495.8 511.4 580.7 1,430.1 1,592.1

Total (RM mil) 1,970.6 2,032.9 2,117.7 5,835.0 6,089.2 -

Total (%) 88.2 89.6 90.1 88.8 89.7 -

Cost % of Revenue

22

6,351.7

151.7

9,948.6

6,212.4

1,801.0

1,919.5

15.7

16,452.0

6,445.3

1,853.1

489.7

3,331.6

770.9

3,662.0

3,074.7

6.2

581.1

2,783.3

12,984.9

683.8

16,452.0

7,709.4

150.8

8,630.3

5,506.0

1,664.2

1,432.1

28.0

16,490.5

6,938.5

1,801.5

527.8

3,488.5

1,120.7

4,289.5

3,639.2

26.0

624.3

2,649.0

13,112.1

729.4

16,490.5

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 Sept 2011 As at 31 Dec 2010

Group Balance Sheet

23

875 785 775

228257 266

327 485 514

383350 374

0

500

1000

1500

2000

3Q10 2Q11 3Q11

Others

Internet

Data

Voice

2,390 2,329

656 752

1,206 1,447

1,0601,069

0

1,000

2,000

3,000

4,000

5,000

6,000

YTD10 YTD11

Others

Internet

Data

Voice

Consumer34%

SME26%

Enterprise21%

Government19%

Consumer34%

SME26%

Enterprise21%

Government19%

Total Revenue By Products

RM mn +2.0%

1,718

YTD11

+5.8%

RETAIL

Revenue by ProductRevenue by Business Unit

YTD10

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

RM mn

RM mn

RM5,295mn

RM5,047mn

24

RM mn +4.9%

5,0475,295

1,781 1,817

58 61 54

145 142 151

14 19 22

0

50

100

150

200

250

3Q10 2Q11 3Q11

Others

Data

Voice

198 170

412 442

42 62

0

100

200

300

400

500

600

700

YTD10 YTD11

Others

Data

Voice

ASP17%

MC83%

ASP17%

MC83%

MC : Malaysian CarrierASP : Application Service Provider

Others : Include internet

WHOLESALE

YTD11

YTD10

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

RM mn +1.2%

562569

Revenue by ProductRevenue by Customer Segment

RM mn +1.6%

185

+3.2%

188 191

335 352

13

325 241

236

0

100

200

300

400

500

600

700

YTD10 YTD11

Others

Data

IRU Sales (Data)

Voice

113 107143

3

10112

88

66

9

2

2

0

50

100

150

200

250

3Q10 2Q11 3Q11

Others

Data

IRU Sales (Data)

Voice

Africa & Middle East

10%America

7%

Europe11%

South Asia39%

North Asia13%

Oceania7%

Others14%

Africa & Middle East

7%America

8%

Europe11%

South Asia37%

North Asia17%

Oceania9%

Others11%

YTD11

YTD10

Others : Include internet

GLOBAL

Note: Total revenue is after inter-co elimination. Revenue of product is before inter-co elimination26

Revenue by RegionRevenue by Product

RM mn -7.8%

639

589

RM mn +12.0%

222

-3.2%

192

215

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