FY 2012 RESULTS

ANALYST BRIEFING
27 February 2013

Disclaimer
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Performance Overview Financial review Operating highlights Concluding remarks

Key Highlights FY2012

Met all Headline KPIs

FY2012 Headline KPI

FY2012 Achievement

Stronger Revenue growth Normalised EBITDA Margin in line with Headline KPI Higher Customer Satisfaction Index

5% 32% 72

9%

32% > 72

PATAMI grew by 6.1% to RM1.26bn, EBITDA by 4.7% to RM3.23bn Positive growth across Internet, Data and Other telco services revenue Total Capex/Revenue continued to improve
Broadband leadership: 7.4% growth in total broadband customers UniFi continued to grow to more than 482,000 customers Final dividend of 12.2 sen per share Total dividend payout of 22 sen per share or RM787mn

Key Highlights 4Q2012

Overall improvement YoY and QoQ

Financial Performance
Operating revenue increased by 14.8% YoY and 18.3% QoQ, to RM2.8bn Normalised EBITDA increased by 5.8% YoY and 12.2% QoQ, to RM855.2mn; Reported EBITDA increased by 13.1% YoY and 19.8% QoQ, to RM900.1mn Normalised PATAMI grew by 20.1% YoY and 55.0% QoQ, to RM288.4mn; Reported PATAMI lower by 39.3% YoY due to lower tax incentives but higher by 20.5% QoQ, to RM363.2mn

Key Operating Indicators

Internet revenue up by 15.7% YoY and 4.2% QoQ, to RM626mn driven by UniFi growth and HyppTV content. Data revenue up by 18.3% YoY and 19.0% QoQ, to RM646mn due to higher bandwidth demand and higher installations. UniFi customer base up 104.0% YoY and 13.0% QoQ, to 482,513 customers. Overall broadband customer base grew by 7.4% YoY and 1.9% QoQ, to 2.07mn

 Performance Overview Financial review

Operating highlights Concluding remarks

Group Results 4Q2012 & FY2012

Reported
RMmn

4Q12
Revenue Other Operating Income EBITDA EBITDA margin Normalised EBITDA Normalised EBITDA Margin Depn & Amort. Other Gains / (Loss) 2,809.3 74.2 900.1 31.2%

3Q12
2,375.4 20.5 751.5 31.4%

% Change QoQ
+18.3 +262.0 +19.8 -0.2pp

4Q11
2,447.2 37.0 796.1 32.0%

% Change YoY
+14.8 +100.5 +13.1 -0.8pp

FY12
9,993.5 165.4 3,231.6 31.8%

FY11
9,150.7 120.9 3,086.4 33.3%

% Change FY12 vs FY11

+9.2 +36.8 +4.7 -1.5pp

Comments (FY12 vs. FY11)

Positive growth in Internet, Data & Other Telco Services Higher to realisation of tax refund related to a previous RM bond and disposal of assets -

855.2
30.1% 506.3

762.3
31.8% 529.9

+12.2
-1.7pp -4.5

808.1
32.5% 535.9

+5.8
-2.4pp -5.5

3,194.6
31.6% 2,044.7

3,108.4
33.5% 2,128.0

+2.8
-1.9pp -3.9

In line with Headline KPI Lower due to revision of useful life of certain assets and lower capex spend FY12 included gain on sale of Axiata shares Higher interest expense in line with higher borrowings Due to strengthening of RM against USD by 3.5% -

0.5
54.7 (5.4) 346.2 295.4 363.2 288.4

0.8
48.7 (64.8) 238.5 183.7 301.4 186.1

-37.5
+12.3 -91.7 +45.2 +60.8 +20.5 +55.0

5.5
50.6 (14.4) 229.6 221.6 598.3 240.1

-90.9
+8.1 -62.5 +50.8 +33.3 -39.3 +20.1

0.3
191.9 (73.4) 1,069.6 958.9 1,263.7 881.0

286.5
185.2 58.6 1,001.2 795.1 1,191.0 634.8

-99.9
+3.6 +225.3 +6.8 +20.6 +6.1 +38.8

Net Finance Cost*

FX (Gain) / Loss Profit Before Tax (PBT) Normalised PBT PATAMI Normalised PATAMI

Higher due to higher revenue, recognition of deferred tax income & unrealised forex gain -

Note: EBITDA Margin is calculated as percentage of EBITDA against Revenue + Other Operating Income For Normalised EBITDA and Normalised PATAMI refer Slides 8 and 9 Excludes FX (Gain )/Loss

Normalised EBITDA

EBITDA growth recorded YoY, QoQ and FY

In RM mn Reported EBITDA

4Q12 900.1

3Q12 751.5

4Q11 796.1

FY12 3,231.6

FY11 3,086.4

Non Operational
Loss on Sale of Assets FX (Gain)/Loss on International trade settlement Impairment of AFS receivables Realisation of tax refund related to a previous RM bond Normalised EBITDA Normalised EBITDA Margin Reported EBITDA Margin 0.2 (5.1) (1.2) (38.8) 855.2 30.1% 31.2% 10.8 762.3 31.8% 31.4% 808.1 32.5% 32.0% 0.3 12.9 (1.2) 0.5 2.5 (1.2) (38.8) 3,194.6 31.6% 31.8% 1.3 21.9 (1.2) 3,108.4 33.5% 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 Normalised EBITDA Margin is calculated as percentage of Normalised EBITDA against Normalised Total Revenue (Operating Revenue + Oth. Operating Income Loss on Sale of Assets Realisation of tax refund related to a previous RM bond)

Normalised PATAMI
In RM mn Reported PATAMI Non Operational Loss on Sale of Assets

Higher Normalised PATAMI due to higher revenue and lower tax expense
4Q12 363.2 3Q12 301.4 4Q11 598.3 FY12 1,263.7 FY11 1,191.0

0.2 (5.1)

10.8

0.3 12.9

0.5 2.5

1.3 21.9

FX (Gain)/Loss on International trade settlement Impairment of AFS receivables

Realisation of tax refund related to a previous RM bond Other (Gain)/Losses** Unrealised FX (Gain)/Loss on Long Term loans Tax Incentives S108 shortfall from utilisation of tax incentives

(1.2)
(38.8) (0.5) (5.4) (53.4) 29.4

(0.8) (64.8) (60.5) -

(1.2)
(5.5) (14.5) (350.2) -

(1.2)
(38.8) (0.3) (73.4) (301.4) 29.4

(1.2)
(286.5) 58.5 (350.2) -

Normalised PATAMI*

288.4

186.1

240.1

881.0

634.8

* FY2012 PATAMI is inclusive of RM188.4mn current year tax incentive (Last Mile : RM56.0mn; HSBB : RM132.4mn) (2011: Last Mile: RM127.6mn) **Comprise fair value (FV) changes of FVTPL (FV through P&L) investment and gain/loss on disposal for AFS (available for sale) investments.

Cost % of Revenue1

Cost/revenue ratio continued to improve

RM mn

RM8,313.2 89.7%
0.8 4.5
6.5 6.5 11.7

RM8,972.0 88.3%
0.6 4.2 6.3

FY 2012 vs. FY2011

8.5
% of Revenue

Higher Maintenance cost due to customer projects, new maintenance contracts at ITNT
Higher Direct cost due to higher international outpayment, USP and content cost Lower D&A due to revision of useful life of certain assets in 4Q2011

11.6

Bad Debt Marketing Expenses

20.2

Supplies & material

19.9

Maintenance Cost Other operating cost Manpower cost

16.6

17.0

Direct cost Dep & Amortisation

23.0

20.1 (Please refer to Appendix for quarterly details & breakdown)

FY11

FY12

Total Cost / Revenue ( %)

1

Revenue = Operating Revenue + Other Operating Income Note: The classification of cost is as per financial reporting

10

Group Capital Expenditure

Higher HSBB capex due to EGNet extension, but improved overall capex/revenue ratio
BAU Capex

12.4

8.9

Total Capex

1200
1000 800

1,139 395 343 401 FY11 892 276

RM mn
28.0

600
25.5

400 200

278
338 FY12

3000 2500

2,563 527

2,546

0 Note : BAU Business As Usual

Access Core Network Support System*

504

2000 1500 1000 500 0 FY11

Access Core Network

HSBB Capex**
976 923 1800 1600 1400 1200 1000 800 600 400 200 0
Access
15.6
16.6

1,654 1,424 132 633 645

228

1,060

1,119

FY12
Support System*

659

781

FY11
Core Network

FY12
Support System*

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

** 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

11

Group Cash Flow & Key Financial Ratios

RM mn

FY12 4,212.6 2,723.7

FY11 3,488.0 3,030.7

Cash & cash equivalent at start Cashflows from operating activities

Cashflows used-in investing activities

Capex*

(2,227.9) 2,404.0
(970.5) 0.4 3,738.3 827.6

(1,338.0) 1,808.5
(962.5) (5.6) 4,212.6 1,277.9

Cashflows used-in financing activities Effect of exchange rate changes Cash & cash equivalent at end Free cash-flow (EBITDA Capex)

net of HSBB grant received from Government (FY12 RM142.0, FY11 RM754.5)
31 Dec 12 12 31 Dec
31 Dec 11* 31 Dec 11 3131 DecDec 12 12 31 Dec 11*11 31 Dec

Return on Invested Capital Return on Equity 2 Return on Assets 1 Current Ratio WACC
1 Based on Normalised EBIT 2 Based on Normalised PATAMI * Restated due to adoption of MFRS

6.67% 12.31% 5.17% 1.03 6.10%

5.81% 8.14% 4.47% 1.6 6.33%

Gross Debt to EBITDA Net Debt/EBITDA Gross Debt/ Equity Net Debt/ Equity Net Assets/Share (sen)

2.10 0.87 1.04 0.49 192.7

1.93 0.69 0.86 0.30 207.5

12

 Performance Overview Financial review Operating highlights

Concluding remarks

13

Group Total Revenue by Product

Operating Revenue up 9% driven by Internet, Data and Others

Internet

Voice
RM mn

-1.1%
+0.2%

-0.7%

RM mn

RM mn
+15.7% +4.2% +18.5%

FY12
Others 17% Internet 24% Data 22%

RM9,994mn

Voice 37%

917

905

907

3,734

3,706 541 601 626

2,001

2,372

4Q11

3Q12

4Q12

FY11

FY12

4Q11

3Q12

4Q12

FY11

FY12

Data
RM mn RM mn

Others*
RM mn
+42.2% +22.0%

FY11

RM9,151mn

+18.3% +19.0%

+9.5%

+93.3%

Others 15% 2,205 630 443 1,711 Internet 22% Data 22% 4Q12 FY11 FY12 Voice 41%

2,013 546 543

646 326
3Q12

1,402

4Q11

3Q12

4Q12

FY11

FY12

4Q11

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

14

Group Total Revenue by Line of Business

Retail
RM mn RM mn

Positive growth by All

Wholesale
+3.0% +5.1% +0.5%

+13.3% +13.8% +9.3%

Wholesale 8%
Global 9%

Others 9%

FY12

RM9,994mn

7,454

Consumer 27%

6,817
1,796 417 266 474 639 1,788 372 275 475 666 2,035 571 277 487 700 1,433 1,087 1,838 2,459

1,755 1,096 1,911 2,692 4Q11 3Q12 4Q12 FY11 FY12 201 197 207 770 774

SME Government 19% 17% Enterprise 11% Retail (C+S+E+G): 74%

4Q11 3Q12 4Q12 FY11 FY12 Consumer SME Enterprise Government

Global
RM mn RM mn

Others*
+63.9%
+3.6% +58.2% +24.0%

Others 8% Wholesale 8% Global 9%

FY11

RM9,151mn

-2.3% +32.3%

Consumer 27%

845 256 189 3Q12 250

875 318 194 201 3Q12 4Q12

718

890

Government 16% Enterprise 12%

SME 20%

4Q11

4Q12

FY11

FY12

4Q11

FY11

FY12

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

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

15

Physical Highlights
Broadband Customer Growth
In thousand +7.4%

Continued growth in UniFi net adds

UniFi
+104.0% +1.9% +13.0% 482,513

1,772

1,830

1,871

1,923

1,974

2,011

2,028

2,066

427,136
236,501 315,745 384,024

64 291
+58

109 296
+41

164 314
+52

237 312
+51

316 302
+37

384 297
+17

427

483 287
+38 63,541 109,019 164,375

292
1,309

1,417

1,425

1,393

1,374

1,356

1,330

1,296

8,385 55,156

15,912
+45

24,479

34,659
+72

46,436
+79

58,467
+68

67,974
+43 +55

76,504

359,162 406,009 269,309 325,557 201,842 93,107 139,896

+55

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12
UniFi

4Q12

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

Net adds (in thousand) Streamyx Residential Streamyx Business

Net adds (in thousand)

UniFi Residential

UniFi Business

Fixed Line Customer Growth

In thousand

ARPU
+0.2%
+0.1%

4,381

4,397

4,365

4,349

4,366

4,361

4,353

4,359

ARPU (RM) Fixed Line (DEL)* Streamyx Broadband**

FY11 34 78

1Q12 33 79

1H12 34 79

YTD FY12 Sept 12 34 79 34 80

64 1,607

109 1,596

164
1,568

237 1,546

316

384 1,509

427

483 1,486

1,526

1,497

UniFi***
*Call Usage Only

184

182

181

180

182

** Streamyx Net ARPU *** Blended ARPU

2,710

2,692

2,633

2,566

2,524

2,468

2,429

2,390

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12
UniFi

4Q12

Fixed Line Residential

Fixed Line Business

16

 Performance Overview Financial review

Operating highlights
Concluding remarks

17

Key Takeaways
Financial Performance

Achieved all Headline KPIs Revenue growth of 9% driven by growth in Internet, Data & Other telco services revenue Continued EBITDA growth Continued PATAMI growth Sustained capital and cost efficiency

Customer-centricity

Improved customer experience Achieved TRI*M Index score of >72, higher than global average

Broadband Champion

UniFi remained strong More than 514,000 customers to date PPP HSBB rollout completed - 1.37mn premises passed Total broadband customer base >2.07mn

Shareholder Value

Commitment to create shareholder value Total dividend payout of 22 sen per share or RM787mn (including interim dividend of 9.8 sen per share or RM350.6mn paid in September 2012)

18

Outlook 2013

Trusted Broadband Champion - Enhanced Customer Experience - Focused product and service delivery Competition expected to intensify in the retail space, but also creates opportunities for TM Continued transformation toward Information Exchange Performance Improvement Program 3.0 (2013-2015)

Headline KPIs

2013 6%

2015 6%

Revenue Growth

EBIT Growth
Customer Satisfaction Measure

3%
72

8% 72

19

Performance Improvement Program 3.0

Continued Growth

Voice and broadband New opportunities

Information Exchange aspiration Changing business dynamics

Fundamental Productivity Shift

Best practice cost and capital efficiencies Process optimisation Migration to all-IP

Improve Institutional Health Drivers

Accelerate transformation into a customer-centric organisation Increased focus on key customer segments

Underlying Principles of COOL, TWP & KRISTAL

20

Appendices

Cost % of Revenue
4Q12
Operating Revenue (RM mil)
Other Operating Income (RM mil) 2,809.3 74.2

3Q12
2,375.4 20.5

4Q11
2,447.2 37.0

FY12
9,993.5 165.4

FY11
9,150.7 120.9

FY2012 vs. FY2011

-

Direct Costs %
RM mil. Manpower % RM mil. Supplies & Materials % RM mil. Bad & Doubtful Debts % RM mil. Marketing Expenses %

15.5
447.4 21.0 604.7 6.8 195.9 (0.1) (4.0) 3.9

17.8
425.3 19.7 470.8 7.2 171.9 0.1 2.9 4.6

15.3
380.2 19.6 487.6 7.6 187.6 0.8 19.8 5.3

17.0
1,729.7 19.9 2,024.5 6.3 644.6 0.6 63.7 4.2

16.6
1,536.3 20.2 1,873.1 6.5 603.0 0.8 72.8 4.5

Higher international outpayment, USP cost and content cost

Higher absolute cost (higher salaries, staff benefits) but lower % due to higher revenue growth Higher absolute cost (higher customer acquisition cost, materials) but lower as % of revenue Lower due to reversal of excess provision Higher absolute cost (higher marketing activities at SME), but lower as % of revenue Higher due to new maintenance contracts at ITNT and customer projects Higher absolute cost (disposal of land) but lower as % of revenue

RM mil.
Maintenance Cost % RM mil. Other Operating Costs % RM mil. Depreciation & Amortisation % RM mil. Total (RM mil) Total (%)

112.3
9.3 266.9 12.5 360.2 17.6 506.3 2,489.7 86.3

109.5
7.4 176.2 12.0 287.8 22.1 529.9 2,174.3 90.8

132.5
7.6 189.6 11.7 290.8 21.6 535.9 2,224.0 89.5

422.3
8.5 860.6 11.6 1,181.9 20.1 2,044.7 8,972.0 88.3

417.0
6.5 602.1 11.7 1,080.9 23.0 2,128.0 8,313.2 89.7

Lower due to revision of useful life of certain assets in 4Q2011 and lower capex spend
-

22

Group Balance Sheet

RM Million

As at 31 Dec 2012
6,894.8 165.2 8,513.7 5,130.2 1,202.6 2,129.4 51.5 15,573.7

As at 31 Dec 2011*
7,424.0 162.9 10,036.1 6,402.7 1,541.8 2,072.7 18.9 17,623.0 7,405.8 1,854.8 468.4 4,213.0 869.6 4,629.3 3,552.1 7.7 1,069.5 2,776.5 14,121.7 724.8 17,623.0
* Restated due to adoption of MFRS

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

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

23

RETAIL
Revenue by Product
RM mn 8,000 6,817 6,000 +9.3% 7,454 765 2,359 1,356 Others Internet Data Voice Government 23% Consumer 36% RM mn

Revenue by Business Unit

FY12

RM7,454mn

611
1,982

4,000

1,176

Enterprise 15% SME 26%

2,000

3,081

3,010

0 FY11
RM mn 2500 2,035 2000 1500 536 1000 500 0 4Q11 3Q12 4Q12 293 752 1,796 223 1,788 120 598 286 625 392 737 Government 21% +13.3% +13.8% RM mn

FY12

FY11

RM6,817mn

339
745

Others Internet Data Voice

Consumer 36%

Enterprise 16%
SME 27%

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

24

WHOLESALE
Revenue by Product
RM mn 1000 800 +0.5% 770 85 774

Revenue by Customer Segment

FY12
77
ASP 17%

600
597 400 200 224 0 FY11 RM mn 300 250 200 150 100 50 54 0 4Q11 3Q12 52 37 4Q12
MC1 : Malaysian Carrier ASP : Application Service Provider

642

Others Data Voice MC 83%

192 FY12 +3.0% +5.1%

FY11

201 23

197 17

207 20

ASP 17%

Others 155 160 185 Data MC 83%

Voice

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

25

GLOBAL
Revenue by Product
RM mn 1200 +3.6%

Revenue by Region

FY12
845 8 875 14 377 36 Others Data Data (IRU Sales) 527 Voice Others America 11% 12% Europe & AFME 16% Oceania & North Asia 29%

1000
800

338 600
76 400 200 0 FY11 RM mn 350 300 250 200 150 100 50 0 4Q11 3Q12 125 110 256 2 104 -2.3% 478

South Asia 32%

FY12

FY11
+32.3% 250 3 Others America 10% 13% Europe & AFME 16% Oceania & North Asia 27%

189 3 96

117 Others 12

South Asia 34%

56

Data
Data (IRU Sales) Voice

145

4Q12

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

26

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