TELEKOM MALAYSIA BERHAD

July 2019

2

This presentation is not and does not constitute an offer, invitation, solicitation or recommendation to subscribe for, or purchase, any

securities and neither this presentation nor anything contained in it shall form the basis of, or be relied on in connection with any contract or

commitment or investment decision.

This presentation has been prepared solely for use at this presentation. By your continued attendance at this presentation, you are deemed

to have agreed and confirmed to Telekom Malaysia Berhad (the “Company”) that: (a) you agree not to trade in any securities of the

Company or its respective affiliates until the public disclosure of the information contained herein; and (b) you agree to maintain absolute

confidentiality regarding the information disclosed in this presentation until the public disclosure of such information, or unless you have

been otherwise notified by the Company.

Reliance should not be placed on the information or opinions contained in this presentation or on its completeness. This presentation does

not take into consideration the investment objectives, financial situation or particular needs of any particular investor.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information,

opinions and conclusions contained in this presentation. None of the Company and its affiliates and related bodies corporate, and their

respective officers, directors, employees and agents disclaim any liability (including, without limitation, any liability arising from fault or

negligence) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with it.

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

Company operates. These forward-looking statements include statements relating to the Company’s performance. These statements

reflect the current views of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions. It is

important to note 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

2019 Focus

Performance Overview

Financial & Operational Highlights

3

4

2016

Convergence Champion

Fixed and mobile

Beyond connectivity

Building A Digital Nation

Connectivity (Fixed and mobile) and Digital infrastructure

Digital society, business and government

2019

TM has continuously evolved on the road towards building a digital nation

2011

Broadband Champion

High speed broadband

5

2018 in review:

TM Strategy and focus on Accelerate Convergence & Empower Digital,

though we faced unprecedented challenges that impacted our

performance

Industry

Competition

Operations

Challenges we faced

6

TM Strategy and focus remains, now strengthened and reinforces

Customer Centricity

Converged

Services

Simple &

Digital

Lean &

Lower Cost

Infra &

Platforms

People

Development

▪ Solidifying convergence position

vertical focus to serve industries going digital

Backbone, Connecting Malaysia to the world

▪ Customer FIRST mindset

▪ AGILE : Empowerment and Ownership

▪ Future Skilling

▪ Digital-first in all customer journey

▪ Product rationalisation

▪ Process simplification & digitisation

▪ Focus on core business

▪ Cost optimisation & management

▪ Focus on sweating current assets

▪ Targeted roll-out

▪ Access seekIntegrated Network Infrastructure

& Digital Platforms

People Development

Simple &

Digital

Lean &

Lower Cost

Converged

Services

Customer Centricity

Am

bit

ion

En

ab

lers

Str

ate

gic

Pil

lars

Life Made Easier for a Better Digital Malaysia

7

DIGITAL INFRASTRUCTURE

Payments Digital ID

Geographic

Information

SystemCloudData

Cybersecurity

IoT & Smart

Cities

Key Partner and Enabler Of Digital Nation Through Connectivity and Digital

Infrastructure

CONNECTIVITYThe physical wireless and fixed line infrastructure that underpins all

other digital infrastructure and services

RM mn

Key 1Q 2019 Highlights

Revenue

EBIT

8

RM mn

RM mn

-2.4%

-10.0%

+>100.0% (Normalised +>100.0%)

+>100.0% (Normalised +59.2%)

+96.2% (Normalised +>100.0%%)

1Q19 numbers are post-MFRS16

PATAMI

+>100% (Normalised +>100.0%)

2,848 3,089 2,779

1Q18 4Q18 1Q19

196 252 505

207 322

513

1Q18 4Q18 1Q19

EBIT

Normalised EBIT

157 70

308

105 105

296

1Q18 4Q18 1Q19

PATAMI

Normalised PATAMI

454

614 462

1Q18 4Q18 1Q19

9

Key 1Q 2019 Highlights - Group Total Revenue by Product

Voice

Data

*Total revenue is after inter-co elimination.

RM mn

RM mn

Internet

Others*

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

RM mn

RM mn

RM2,848mn

RM2,799mn

-11.4%

-3.5%

+7.2%

+1.8%

-16.6%

+0.4%

-2.5%

-24.8%

Voice

24%

Internet

35%

Data

24%

Others

17%

1Q19

Voice

27%

Internet

35%

Data

22%

Others

16%

1Q18

761 809

674

1Q18 4Q18 1Q19

1,012 1,002 977

1Q18 4Q18 1Q19

621 663 666

1Q18 4Q18 1Q19

1,351 1,276 1,225

1Q18 4Q18 1Q19

430

608 496

1Q18 4Q18 1Q19

10

Key 1Q 2019 Highlights - Revenue by Customer Clusters

unifi

TM ONE

*Total revenue is after inter-co elimination.

RM mn

RM mn

TM Global

Others

RM mn

RM mn

RM2,848mn

RM2,799mn

-9.3%+15.2%

+0.3% -9.5%

-4.0%

-12.4%

-18.5%

-10.9%

unifi

44%

TM ONE

34%

TM GLOBAL

18%

Others

4%

1Q19

unifi

48%

TM ONE

33%

TM

GLOBAL

15%

Others

4%

1Q18

943

1,079

945

1Q18 4Q18 1Q19

124 126 112

1Q18 4Q18 1Q19

90 88 87

193 184 179

Streamyx unifi

1,129 936 872

1,177 1,298 1,323

1Q18 4Q18 1Q19

Streamyx unifi

11

Total Fixed Broadband PerformanceConvergence HH Penetration

Unifi customer base continues to grow, drop in Streamyx was

partly due to migration of customers to unifi

Convergence Updates

55% 53% 52% 47% 44%

45% 47% 48% 53% 56%

1Q18 2Q18 3Q18 4Q18 1Q19

1P & 2P 3P & above

Cu

sto

me

rs (

‘00

0)

AR

PU

(R

M)

-1.7%

-5.2%

2,2352,316 2,195

Increasing convergence / TM households now at 56%

553 617 407

65 43

24

845 1,023

695

647 522

610

571 664

561

1Q18 4Q18 1Q19

Other Opex Material Direct Cost Manpower Dep. & Amortization

Cost % of Operating Revenue

RM mn

Group Capital Expenditure

Total Cost / Revenue (%)

RM mn

12

1Q 2019 OPEX & CAPEX

5727

211

101

59

23

1Q18 1Q19

Capex / Revenue ( %)

11.5% 5.4%

151327

94.1% 92.9% 82.7%

2,681 2,869 2,297

RM mn 1Q19 1Q18

Cash & cash equivalent at start 2,757 1,719

Cash flows from operating activities 350 239

Cash flows used in investing activities (248) (503)

Capex 327 151

Cash flows used in financing activities (69) (3)

Effect of exchange rate changes 3 11

Cash & cash equivalent at end 2,793 1,463

Free cash-flow (EBITDA – Capex) 914 439

13

Group Cash Flow

252

708903 947

1,513 1,253

1,649

629 679

1,167

7 2 12 124 14 16 4 38 75 44

488

14

Key Financial Ratios

1 Based on Normalised EBIT which has been annualised

2 Based on Normalised PATAMI which has been annualised

Debt* Currency Mix

31 Mar 19 31 Dec 18

Return on Invested Capital1 9.77% 5.32%

Return on Equity2 16.33% 8.23%

Return on Assets1 8.52% 4.42%

Current Ratio (x) 1.26 1.23

WACC 8.24% 7.67%

31 Mar 19 31 Dec 18

Gross Debt to EBITDA (x) 2.24 2.41

Net Debt/EBITDA (x) 1.57 1.75

Gross Debt/Equity (x) 1.50 1.14

Net Debt/Equity (x) 1.10 0.76

Net Assets/Share (sen) 186.09 200.25

USD

14.52%

MYR

85.41%

Others

0.07%

RM denominatedUSD denominatedCDN denominated

20191 TM DLCM 4.24%, Webe RC: 4.40%, Vads Lyfe LT Loan 5.60%, Fibercomm

lease liabilities & Fibrecomm RC: 4.35% 2025

7 IMTN007: 4.88%, Yankee Bond: 7.875%, TM Finance Lease: 6.23%, HSBB2

4.39% & SUBB 4.39% & TM, P1, Subs & Others lease liabilities

20202 Sakura 2: 3mL + 0.91% , IMTN001: 4.30% , Vads Lyfe LT Loan: 5.30%, TM,

P1, Subs & Others lease liabilities, 2026

8 Tulip1 USD Sukuk: 3.7%, Tulip3 USD Sukuk: 3.422% , Vads Lyfe LT Loan:

5.38% & TM, P1, Subs & Others lease liabilities

20213 IMTN2: 4.50%, IMTN4: 4.20% , IMTN6: 4.20% & TM, P1, Subs & Others

lease liabilities 2027 9 IMTN008: 4.58% & TM & P1 lease liabilities

20224 IMTN8: 4.00%, IMTN14: 3.95%, IMTN006: 4.23%, HSBB2 4.33% , SUBB

4.33% & TM, P1, Subs & Others lease liabilities 2028 10 IMTN009: 4.73%, G3-IMTN001: 4.68% & TM, P1, Subs & Others lease liabilities

2023

5 Tulip2 USD Sukuk: 2.85%, IMTN17: 3.95%, IMTN18: 3.93%, IMTN010:

4.342%, CMTN SH Loan Principle: 4.88%, HSBB2 4.36% & SUBB 4.36% &

TM, P1, Subs & Others lease liabilities

2029-2033

2035-2038

& 2046

11-15, 17-21TM, P1, Subs & Others lease liabilities

2024 6 IMTN002: 4.82%, IMTN003: 4.738%, IMTN004: 4.55% & IMTN005: 4.55%,

HSBB2 4.39% & SUBB 4.39% & TM, P1, Subs & Others lease liabilities 2034 16CIDA & P1 lease liabilities

TM Group Debt Maturity Profile as at 31 March 2019

7

98

10

11

5

24

3 6

1

12 1314 15 16 17 18 19 20

21

TM Group Debt Profile

*Including lease liabilities

15

Group Balance Sheet

RM mnAs At

31 Mar 2019

As At

31 Dec 2018

Shareholders’ Funds 6,993.2 7,525.2

Non-Controlling Interests (732.3) (509.7)

Deferred & Long Term Liabilities 13,045.7 11,490.9

Long Term Borrowings 8,280.6 8,337.2

Lease Liabilities 1,624.8 -

Deferred Tax 1,601.3 1,661.3

Deferred Income 1,461.4 1,470.9

Others 77.6 21.5

19,306.6 18,506.4

Current Assets 6,518.7 6,402.8

Trade and Other Receivables 3,345.2 3,254.2

Cash & Bank Balances 2,862.7 2,826.3

Inventories 121.5 134.6

Others 189.3 187.7

Current Liabilities 5,153.5 5,198.1

Trade and Other Payables 3,975.6 4,518.2

Short Term Borrowings 275.5 234.1

Lease Liabilities 343.3 -

Others 559.1 445.8

Net Current Assets/(Liabilities) 1,365.2 1,204.7

Non-Current Assets 17,941.4 17,301.7

Property Plant & Equipment 14,918.7 15,263.3

Other Non-Current Assets 3,022.7 2,038.4

19,306.6 18,506.4

16

Guidance 2019

Revenue (Growth) Low to mid single digit decline

EBIT (RM Billion) Higher than 2018 level

Customer Satisfaction Measure

(TRiM index)74

*Customer Satisfaction will be measured using TRI*M index measuring end to end customer experience on products and all touch points. TRI*M (Measuring, Managing and Monitoring) is a standardised

indicator system. It analyses, measures and portrays stakeholder relationships on the basis of standardised indicators. The TRI*M Index is an indicator of the status quo of a particular relationship. The index is

made up of four points of view on the stakeholder relationship, e.g. for customer loyalty: overall ratings, recommendation, repeat purchasing of product/services, and a company's competitive advantage. The

information is based on surveys/interviews on a sample customer base.

2019 Guidance

APPENDIX

Capital StructureCredit Rating

Total Return To Shareholders

• Issued and Paid-up Capital: RM3,666,969,408.00

• Date of Incorporation: 12 October 1984

• Date of Listing: 7 November 1990

91.03%FBMKLCI1

221.99%TM1

21.36%AXIATA2

81.69%MAXIS3

283.25%DIGI1

•A3Moody’s

•A-S&P

•AAARAM

Source: Bloomberg1 For the period 22 April 2008 – 30 June 20192 For the period 25 April 2008 – 30 June 20193 For the period 18 November 2009 – 30 June 2019

• As at 12 July 2019

• Foreign Shareholding as at 30 June 2019

• EPF: Employees Provident Fund Board

• Amanah Raya Berhad – for Skim Amanah Saham Bumiputra

About TM

18

33%

13%12%

16%

26%

TELEKOM MALAYSIA BERHAD (Bursa Malaysia Announcement Reference No GA1-26112018-00056)Date Announced :26/11/2018

Dividend Policy

19

TM intends to distribute yearly dividends of 40% to 60% from its Profit After Tax and Non-controlling

Interests (PATAMI).

Dividends will be paid depending on overall business and earnings performance, capital commitments,

financial conditions, distributable reserves and other relevant factors.

89.3% 89.9% 90.0% 89.9% 95.3% 93.6%

49.0%

20

1 2018 Interim Dividend of 2.0sen per share2 Net Dividend Yield based on closing share price at year end

2012-2017: Based on previous Dividend Payout Policy

of RM700mn or up to 90.0% of Normalised PATAMI

whichever is higher

RM mn

Payout

Ratio3 (%)

Net

Dividend

Yield2 (%)

2018: Based on revised

Dividend Payout Policy

of 40% - 60% of PATAMI

881

1038.5941.2

894.9847.9 863.2

153.2

787.0

993.7

846.8 804.2 808.0 808.0

75.1

2012 2013 2014 2015 2016 2017 2018

Normalized PATAMI (RM mn) Ordinary Dividend

3.6%

4.7%

3.3% 3.2%3.6% 3.4%

0.8%

Shareholder Returns (2012-2018)

Reported PATAMI (RM mn)

21

Converged fixed and mobile

network

20 submarine cables

Malaysian

Homes and

SMEs

Malaysian

Public Sector

and Enterprises

Malaysian and

International

Licensed

Service

Providers

Unifi

Unifi

Unifi

TM is Malaysia’s integrated connectivity provider and connects Malaysia

with the world

22

Focused on bringing a convergence digital lifestyle to all

Malaysians

23

A one stop centre to enable enterprises and public sector realise their full

digital potential

24

Latest products & services offering

RM 199/monthUnifi TV Ultimate Pack

Unifi TV Media Box

Unlimited data

RM59/month10GB Data

100 min calls

25 sms

RM39/month5GB Data

50 min calls

25 sms

RM29/month3GB Data

50 min calls

25 sms

RM19/month2GB Data

5 min calls

25 sms

unifi Home 300Mbps

unifi Mobile Postpaid Value Plans

Klang Valley Core Data Centre

Located strategically in Cyberjaya with 90,000 sqft. whitespace

capacity offering full suite of Managed Services, Co-Location/Hosting,

Disaster Recovery, Workspace and other services.

• Certified with Uptime Institute Tier III Design

• State-of-the-art security, power management,

fire detection and cooling system

25

Continuous ESG Initiatives to Build a Sustainable Tomorrow

1. PROGRAM USAHAWAN WANITA (PUW) 4.0 – TM DYNAPRENUER

ECONOMICSOCIAL - COMMUNITY

1. SOCIETY DIGITAL APP - ENSANI2. GDRN SWIFT WATER & HUMANITARIAN

RESPONSE TRAINING

1. TM EARTH CAMP 2018 – JUNIOR LEADERSHIP SERIES (JELS)

2. TM EARTH CAMP 2018 – MYCORAL3. TM EARTH CAMP 2018 – CHEMERUNG –

BEREMBUN – LANSIR

ENVIRONMENT

1. TM SCHOOL ADOPTION 2. TM 3D HACKATHON3. TM ROBOTICS TM NANO MAKER KITS4. TM COACHUNITY5. BRING THE OPPORTUNITY PROGRAMME (BTOP)

SOCIAL - EDUCATION

3D Workshop at selected schools, nationwideTM Nano Maker Kit Programme MyCoral Marine Educational Initiative 26

Thank you!Corporate Finance & Investor Relations

Level 11 (North Wing), Menara TM

Jalan Pantai Baharu

50672 Kuala Lumpur

Malaysia

Tel: (603) 2240 4848/ 7366 / 7388

www.tm.com.my/investor

investor@tm.com.my