3Q 2013 RESULTS

ANALYST BRIEFING

28 November 2013

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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

• Operating revenue growth +9.9% -0.1%* +6.5%

• Normalised EBIT growth +50.6% +6.3% +22.3%

• Reported PBT growth +11.1% +9.5% +1.8%

• Normalised PATAMI growth +32.4% +10.6% +22.6%

Overall positive results

Key Operating Indicators

Key Highlights

Financial Performance

4

• Internet revenue growth +14.1% +7.5% +12.7%

• Data revenue growth +17.0% +4.8% +17.2%

• UniFi customer growth +42.2% +5.2%

• Overall broadband customer growth

+7.7% +1.4%

3Q13 vs

3Q12

3Q13 vs

2Q13

*2Q2013 included disposal of land (RM50.9mn)

YTD Sept 2013 vs

YTD Sept 2012

Performance Overview Financial review Operating highlights

Concluding remarks

5

RMmn

Reported

3Q13 2Q13 % Change

QoQ 3Q12

% Change YoY

YTD13 YTD12 % Change YTD13 vs

YTD12

Revenue 2,610.5 2,613.8 -0.1 2,375.4 +9.9 7,648.9 7,184.2 +6.5

Other Operating Income

32.5 22.5 +44.4 20.5 +58.5 85.7 91.2 -6.0

EBITDA 906.3 860.6 +5.3 751.5 +20.6 2,573.6 2,331.5 +10.4

Depn & Amort. 541.4 530.8 +2.0 529.9 +2.2 1,580.9 1,538.4 +2.8

EBIT 364.9 329.8 +10.6 221.6 +64.7 992.7 793.1 +25.2

Net Finance Cost* 59.5 56.4 +5.5 48.7 +22.2 165.5 137.2 +20.6

FX (Gain) / Loss 43.8 34.1 -28.4 (64.8) >-100.0 96.5 (68.0) >-100.0

Profit Before Tax (PBT) 264.9 241.9 +9.5 238.5 +11.1 736.3 723.4 +1.8

PATAMI 240.9 213.9 +12.6 301.4 -20.1 668.0 900.5 -25.8

Normalised PATAMI 270.3 244.5 +10.6 204.1 +32.4 748.8 610.6 +22.6

Note: For Normalised EBIT and Normalised PATAMI refer Slides 7 and 8 •Excludes FX (Gain )/Loss

Group Results YTD Sept 2013 & 3Q2013

6

Healthy growth of operating profit due to higher operating revenue

Normalised EBIT

In RM mn 3Q13 2Q13 3Q12 YTD13 YTD12

Reported EBIT 364.9 329.8 221.6 992.7 793.1

Non Operational

Loss on Sale of Assets 0.2 0.2 - 0.5 0.4

FX (Gain)/Loss on International trade settlement (15.1) (0.7) 10.8 (13.8) 7.5

Normalised EBIT 350.0 329.3 232.4 979.4 801.0

Normalised EBIT Margin 13.2% 12.5% 9.7% 12.7% 11.0%

Reported EBIT Margin 13.8% 12.5% 9.2% 12.8% 10.9%

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)

7

Normalised EBIT higher by 22.3% vs. YTD Sept 2012

Normalised PATAMI

In RM mn 3Q13 2Q13 3Q12 YTD13 YTD12

Reported PATAMI 240.9 213.9 301.4 668.0 900.5

Non Operational

Loss on Sale of Assets 0.2 0.2 - 0.5 0.4

FX (Gain)/Loss on International trade settlement (15.1) (0.7) 10.8 (13.8) 7.5

Other (Gain)/Losses* 0.5 (3.0) (0.8) (2.4) 0.2

Unrealised FX (Gain)/Loss on Long Term loans

43.8 34.1 (64.8) 96.5 (68.0)

Tax Incentives - - (42.5) - (230.0)

Normalised PATAMI** 270.3 244.5 204.1 748.8 610.6

8

*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: YTD Sept 13: RM162.8mil (HSBB), YTD Sept 12: RM128.4mil [RM47.1mil (last mile), RM81.3mil (HSBB)], 3Q13: RM55.6mil (HSBB), 3Q12: RM40.7mil [RM7.2mil (last mile), RM33.5mil (HSBB)]

Normalised PATAMI 22.6% higher vs. YTD Sept 2012

21.1 20.4

17.6 17.2

19.5 21.3

11.3 11.1

8.2 6.6

6.2 6.2

4.3 3.5

0.9 0.8

YTD 12 YTD 13

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 ( %)

RM6,482.3

89.1%

RM6,741.9

87.2%

% of Revenue

YTD Sept 2013 vs. YTD Sept 2012

•Higher Manpower cost due to higher salaries and staff benefits (new Collective Agreement) •Lower Marketing cost due to lower A&P activities •Lower Maintenance cost due to lower customer projects

9

709 523

466

383

244

202

0

200

400

600

800

1000

1200

1400

1600

YTD12 YTD13

Access Core Network Support System*

187 170

114 70

106

116

0

70

140

210

280

350

420

YTD12 YTD13 Access Core Network Support System*

522 353

352

313

138

86

0

200

400

600

800

1000

1200

YTD12 YTD13

Access Core Network Support System*

Improved capex/revenue ratio Group Capital Expenditure

** Gross capex to be shared with Government equally up to RM4.8bn (fully paid as at July 2012) 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

1,419

1,012

19.8

BAU Capex

407

5.7

Capex / Revenue ( %)

752

356

4.7

1,108

14.5

9.8 14.1

Total Capex

10

30 Sept 13 31 Dec 12 30 Sept 13 31 Dec 12Return on Invested Capital 7.21% 6.67% Gross Debt to EBITDA 2.20 2.10

Return on Equity 14.62% 12.31% Net Debt/EBITDA 1.19 0.87

Return on Assets 5.91% 5.17% Gross Debt/ Equity 1.18 1.04

Current Ratio 0.93 1.03 Net Debt/ Equity 0.71 0.49

WACC 6.10% 6.10% Net Assets/Share (sen) 188.9 192.7

30 Sept 13

Group Cash Flow & Key Financial Ratios

31 Dec 12

RM mn YTD Sept 13 YTD Sept 12

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

Cashflows from operating activities 1,034.7 1,335.1

Cashflows used-in investing activities (1,464.5) (1,415.9)

Capex* 1,108.0 1,277.0

Cashflows used-in financing activities (128.7) (1,418.6)

Effect of exchange rate changes (2.1) 1.4

Cash & cash equivalent at end 3,177.7 2,714.6

Free cash-flow (EBITDA – Capex) 1,465.6 1,054.5

31 Dec 12 30 Sept 13

11

*net of HSBB grant received from government (YTD Sept 2012 – RM142.0mn, YTD Sept 2013 - nil)

Cash balance at RM3.18bn, ROIC continues to improve

3

3 Includes reclassification of long term debt due within the next 12 months to current liabilities (RM3.5bn)

Based on Normalised EBIT Based on Normalised PATAMI

1

1

2

2 1

Performance Overview

Financial review

Operating highlights

Concluding remarks

12

326 433 398

1,081 1,150

3Q12 2Q13 3Q13 YTD12 YTD13

543 606 635 1,558 1,826

3Q12 2Q13 3Q13 YTD12 YTD13

601 638 686 1,746

1,967

3Q12 2Q13 3Q13 YTD12 YTD13

905 936 892 2,799 2,706

3Q12 2Q13 3Q13 YTD12 YTD13

Voice 39%

Data 22%

Internet 24%

Others 15%

Voice 35%

Data 24%

Internet 26%

Others 15%

Group Total Revenue by Product

Data

RM mn

RM mn RM mn

Voice*

Others**

Internet* YTD13

YTD12

RM mn RM mn

RM mn

RM7,649mn

RM7,184mn

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

-1.4%

-4.7%

Sustained Internet and Data growth

-3.3% +14.1%

+7.5%

+12.7%

+17.0%

+4.8%

+17.2% +22.1%

-8.1%

+6.4%

13

Retail 75%

Global & Wholesale

17%

Others 8%

Retail 75%

Global & Wholesale

16%

Others 9%

1,788 1,957 1,947 5,419

5,757

3Q12 2Q13 3Q13 YTD12 YTD13

201 244 222

572 664

3Q12 2Q13 3Q13 YTD12 YTD13

386 412 442

1,193 1,228

3Q12 2Q13 3Q13 YTD12 YTD13

Global & Wholesale

Group Total Revenue by Line of Business

YTD13 YTD12 RM7,649mn RM7,184mn

* 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%

+8.9%

-0.5%

Positive growth across all segments vs. YTD Sept 2012

+6.2% +14.5%

+7.3%

+2.9% +10.4%

-9.0%

+16.1%

14

2,524 2,468 2,429 2,390 2,364 2,337 2,317

1,526 1,509 1,497 1,486 1,474 1,463 1,453

316 384 427 483 532 577 607

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

Fixed Line Residential Fixed Line Business UniFi

1,356 1,330 1,309 1,296 1,292 1,291 1,290

302 297 292 287 285 285 287

316 384 427 483 532 577 607

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

Streamyx Residential Streamyx Business UniFi

269 325 359 406 448 484 509 46

58 68

77 84

93 98

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

UniFi Residential UniFi Business

Net adds (in thousand)

In thousand

In thousand

+7.7%

+1.4%

Physical Highlights

Broadband Customer Growth

Fixed Line Customer Growth

+43

4,370

2,109 1,974

4,366

+0.6%

+0.0%

+5.2%

Net adds (in thousand)

+42.2%

532

316

UniFi

+37

2,011

+49

+68

384

4,361

2,028

427

+43

+17

4,353

Improved broadband ARPU; Healthy takeup in broadband – 42% Unifi takeup rate

2,066

+38 +56

483

4,359

15

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

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

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

Streamyx Broadband** 79 79 80 81 80 82 83

UniFi*** 181 178 181 181 178 180 183

ARPU

577

+45 +44

2,153

4,377

In thousand

+30

607 2,184

+31

4,377

Performance Overview

Financial review

Operating highlights

Concluding remarks

16

Key Takeaways

Financial Performance

• TM Group operating revenue up by 6.5% vs. YTD

Sept 2012

• Normalised EBIT growth 22.3% to RM979.4mn

• Normalised PATAMI grew by 22.6% to RM748.8mn

• Total Capex / Revenue ratio improved to 14.5%

• Cost /Revenue ratio improved to 87.2%

Broadband Champion

• Unifi remains strong: 607,000 customers as at 3Q2013,

more than 620,000 at present

• Good takeup of high speed broadband in non-Unifi

areas (Streamyx 4 & 8 Mbps); increased by 12.5% QoQ

• Healthy HyppTV content takeup, stronger offering

with new channels offered in 3Q2013

17

Appendices

Normalised EBITDA

In RM mn 3Q13 2Q13 3Q12 YTD13 YTD12

Reported EBITDA 906.3 860.6 751.5 2,573.6 2,331.5

Non Operational

Loss on Sale of Assets 0.2 0.2 - 0.5 0.4

FX (Gain)/Loss on International trade settlement (15.1) (0.7) 10.8 (13.8) 7.5

Normalised EBITDA 891.4 860.1 762.3 2,560.3 2,339.4

Normalised EBITDA Margin 33.7% 32.6% 31.8% 33.1% 32.2%

Reported EBITDA Margin 34.3% 32.6% 31.4% 33.3% 32.0%

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 9.4% vs. YTD2012

19

3Q13 2Q13 3Q12 YTD13 YTD12

Comments (YTD2013 vs. YTD2012)

Operating Revenue (RM mil) 2,610.5 2,613.8 2,375.4 7,648.9 7,184.2 -

Other Operating Income (RM mil)

32.5 22.5 20.5 85.7 91.2 -

Direct Costs % 18.4 15.9 17.8 17.2 17.6 Higher absolute cost due to higher leased charges and content cost but lower as percentage of revenue RM mil. 485.5 417.9 425.3 1,333.4 1,282.3

Manpower % 20.3 21.2 19.7 21.3 19.5 Higher salaries due to RTP, and staff benefits RM mil. 536.7 558.1 470.8 1,646.0 1,419.8

Supplies & Materials % 6.3 6.7 7.2 6.2 6.2 Higher absolute cost due to higher materials cost for ICT projects, equipment, cable cost RM mil. 167.5 176.7 171.9 480.9 448.7

Bad & Doubtful Debts % 0.8 0.4 0.1 0.8 0.9 -

RM mil. 21.6 9.7 2.9 62.7 67.6

Marketing Expenses % 3.2 3.9 4.6 3.5 4.3 Lower A&P and dealers’ commission

RM mil. 84.4 103.0 109.5 268.4 310.0

Maintenance Cost % 6.5 7.2 7.4 6.6 8.2 Lower maintenance due to lower customer projects, ie at TM Govt RM mil. 172.6 189.0 176.2 508.7 593.6

Other Operating Costs % 10.2 12.2 12.0 11.1 11.3 Higher absolute cost due to higher international services at ITNT and cost of disposal of Ijok land but lower as percentage of revenue

RM mil. 268.4 321.3 287.8 860.9 821.9

Depreciation & Amortisation % 20.5 20.1 22.1 20.4 21.1 Higher absolute cost due to higher asset base but lower as percentage of revenue RM mil. 541.4 530.8 529.9 1,580.9 1,538.4

Total (RM mil) 2,278.1 2,306.5 2,174.3 6,741.9 6,482.3 -

Total (%) 86.2 87.5 90.8 87.2 89.1 -

Cost % of Revenue

20

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

6,758.8

151.8

7,661.9

4,400.5

1,191.6

2,029.7

40.1

14,572.5

6,965.2

2,357.0

512.0

3,178.1

918.1

7,458.9

2,611.5

3,574.0

1,273.4

(493.7)

14,246.1

820.1

14,572.5

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 (Liabilities)/Assets*

Property Plant & Equipment

Other Non-Current Assets

RM Million As at 30 Sept 2013

Group Balance Sheet

21

*Due to reclassification of long term debt due within the next 12 months to current liability (RM1.5bn)

745 774 730 2,273 2,231

339 388 385

964 1,156 599 636 684

1,734 1,963

120 167 156

479 435

3Q12 2Q13 3Q13 YTD12 YTD13

Others

Internet

Data

Voice

RETAIL

RM mn -0.5%

+8.9%

1,947 1,957 1,788

Revenue by Product

5,757 5,419

+6.2%

22

162 163 164 537 481

252 266 307

737 820 20 32

28

69 79

3Q12 2Q13 3Q13 YTD12 YTD13

Others

Data

Voice

Others : Include internet

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

Revenue by Product

386 412 442

1,193 1,228

RM mn +7.3%

+14.5% +2.9%

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