TELEKOM MALAYSIA BERHADInvest Malaysia

19 – 20 March 2019

Kuala Lumpur

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: New TM

Performance Overview

Financial & Operational Highlights

3

4

2011

Broadband Champion

High speed broadband

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

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 to transform into ‘New TM’

that 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

TM as a key partner and enabler of Malaysia’s Digital Nation aspirations

through Connectivity and Digital Infrastructure

277

(176)

70

930

153 222 266 105

863 632

4Q17 3Q18 4Q18 FY17 FY18

PATAMI

Normalised PATAMI

3,200 2,946 3,089

12,085 11,819

4Q17 3Q18 4Q18 FY17 FY18

Revenue

RM mn

Key FY 2018 Highlights

Revenue

EBIT

PATAMI

8

RM mn

RM mn

-3.5%-2.2%

-6.8% (Normalised +7.7%)

+>100.0% (Normalised +2.1%)

-74.8% (Normalised -53.8%)

+>100.0% (Normalised -60.6%)

+4.9%

-94.1% (Normalised -9.8%)

-83.5% (Normalised -26.7%)

270

(632)

252 1,093

65 299 316 322 1,187 1,071

4Q17 3Q18 4Q18 FY17 FY18

EBIT

Normalised EBIT

Voice26%

Internet33%

Data22%

Others19%

FY17

Voice25%

Internet35%

Data21%

Others19%

FY18

667 570 614

2,256 2,244

4Q17 3Q18 4Q18 FY17 FY18

715 600 664

2,675 2,442

4Q17 3Q18 4Q18 FY17 FY18

1,018 1,026 1,002

3,974 4,120

4Q17 3Q18 4Q18 FY17 FY18

800 750 809

3,180 3,013

4Q17 3Q18 4Q18 FY17 FY18

9

Key FY 2018 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

RM12,085mn

RM11,819mn

+1.1%

+7.9%

-1.6%

-2.3%

-7.1%

+10.7%

-7.9%

+7.7%

-5.3% +3.7%

-8.7% -0.5%

unifi44%

TM ONE35%

TM GLOBAL

16%

Others5%

FY17

156 127 126

542 491

4Q17 3Q18 4Q18 FY17 FY18

550 466 608

1,956 1,945

4Q17 3Q18 4Q18 FY17 FY18

1,136 1,036 1,079

4,225 4,097

4Q17 3Q18 4Q18 FY17 FY18

1,358 1,317 1,276

5,362 5,286

4Q17 3Q18 4Q18 FY17 FY18

Key FY 2018 Highlights - Revenue by Customer Clusters

10

unifi TM ONERM mn RM mn

TM GLOBAL OthersRM mnRM mn

*Total revenue is after inter-co elimination.

RM12,085mn

RM11,819mn

-3.1%

-6.0% -4.9%

+4.2%

+10.5 %

+30.5%

-19.7%

-0.8%

-1.4% -3.0%

-0.6% -9.4%

unifi45%

TM ONE35%

TM GLOBAL

16%

Others4%

FY18

11Note: unifi previously known as “UniFi” , while Broadband previously known as “Streamyx”.

Convergence Updates

Total Broadband PerformanceConvergence HH Penetration

58% 55% 53% 52% 47%

42% 45% 47% 48% 53%

4Q17 1Q18 2Q18 3Q18 4Q18

1P & 2P 3P & above

Unifi customer base continues to grow

Increasing convergence / TM households now at 53%

CAPEX / Revenue (%)

Cost % of Revenue1

RM mn

Group Capital Expenditure

1 Revenue = Operating Revenue + Other Operating Income

Total Cost / Revenue (%)

RM mn

FY2018 OPEX & CAPEX

12

Note: FY2018 without impairment impact:RM10,852.0mn or 90.8% of revenue

Group Cash Flow

RM mn FY18 FY17

Cash & cash equivalent at start 1,719.0 2,925.2

Cash flows from operating activities 2,585.1 2,417.6

Cash flows used in investing activities (1,476.9) (2,783.2)

Capex 2,135.7 2,755.8

Cash flows used in financing activities (82.1) (802.8)

Effect of exchange rate changes 11.4 (37.8)

Cash & cash equivalent at end 2,756.5 1,719.0

Free cash-flow (EBITDA – Capex) 1,333.7 820.6

13

TM Group Debt Profile

14

Key Financial Ratios

1 Based on Normalised EBIT2 Based on Normalised PATAMI

Debt Currency Mix

31 Dec 18 31 Dec 17

Return on Invested Capital1 5.32% 5.80%

Return on Equity2 8.23% 11.11%

Return on Assets1 4.42% 4.77%

Current Ratio 1.23 0.98

WACC 7.67% 6.61%

31 Dec 18 31 Dec 17

Gross Debt to EBITDA 2.41 2.31

Net Debt/EBITDA 1.75 1.66

Gross Debt/Equity 1.14 1.04

Net Debt/Equity 0.76 0.82

Net Assets/Share (sen) 200.3 208.7

USD

18.03%

MYR

81.94%

Others

0.03%

15

Group Balance Sheet

RM mnAs At

31 Dec 2018As At

31 Dec 2017

Shareholders’ Funds 7,525.2 7,843.5

Non-Controlling Interests (509.7) (76.7)

Deferred & Long Term Liabilities 11,490.9 10,712.2

Long Term Borrowings 8,337.2 7,031.2

Derivative Financial Instruments - 287.7

Deferred Tax 1,661.3 1,591.3

Deferred Income 1,470.9 1,796.5

Others 21.5 5.5

18,506.4 18,479.0

Current Assets 6,402.8 6,133.1

Trade and Other Receivables 3,254.2 3,710.2

Cash & Bank Balances 2,826.3 1,719.8

Inventories 134.6 258.5

Others 187.7 444.6

Current Liabilities 5,198.1 6,282.8

Trade and Other Payables 4,518.2 3,934.2

Short Term Borrowings 234.1 1,119.0

Others 445.8 1,229.6

Net Current Assets/(Liabilities) 1,204.7 (149.7)

Non-Current Assets 17,301.7 18,628.7

Property Plant & Equipment 15,263.3 16,540.7

Other Non-Current Assets 2,038.4 2,088.0

18,506.4 18,479.0

16

2019 Guidance

Guidance 2019

Revenue (Growth) Low to mid single digit decline

EBIT (RM Bn) 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 stakeholderrelationships on the basis of standardised indicators. The TRI*M Index is an indicator of the status quo of a particular relationship. The indexis made up of four points of view on the stakeholder relationship, e.g. for customer loyalty: overall ratings, recommendation, repeatpurchasing of product/services, and a company's competitive advantage. The information is based on surveys/interviews on a samplecustomer base.

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

89.81%FBMKLCI1

155.98%TM1

1.23%AXIATA2

69.41%MAXIS3

247.61%DIGI1

•A3Moody’s

•A-S&P

•AAARAM

Source: Bloomberg1 For the period 22 April 2008 – 15 Mar 20192 For the period 25 April 2008 – 15 Mar 20193 For the period 18 November 2009 – 15 Mar 2019

• As at 15 Mar 2019• Foreign Shareholding as at 28 Feb 2019• EPF: Employees Provident Fund Board• Amanah Raya Berhad – for Skim Amanah Saham Bumiputra

About TM

18

34%

11%12%

17%

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%

Shareholder Returns (2012-2018)

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 (%)

¹

2018: Based on revised Dividend Payout Policy of 40% - 60% of PATAMI

881

1038.5

941.2894.9

847.9 863.2

153.2

787.0

993.7

846.8804.2 808.0 808.0

75.1

2012 2013 2014 2015 2016 2017 2018

Reported/Normalized PATAMI (RM millions) Ordinary Dividend

3.6%

4.7%

3.3% 3.2% 3.6%3.4%

0.8%

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

> 2.5mil

Digital makes

everything possible

Empowering SMEs

to go digital

household penetration

> 911Kunifi customers upgraded to 10x speed

> 239KStreamyx customers in unifi areas

upgraded to unifi

> 181KStreamyx customers upgraded to 2x speed

homes

> 400,000SMEs

53%Convergence

: Focused on bringing a convergence digital lifestyle to all

Malaysians

Broadband progress, as at end Jan 2019

The above speed upgrades had contributed

to Malaysia's 10 spots jump to 26th

fastest country in the world for internet

speed at average speeds of 62Mbps.

23

A one stop centre to enable enterprises and public sector

realise their full digital potential

Solidifying our strength in industry verticals

Enterprise customers> 7,000

Public Sector customers

> 4,000

Experience

Centre

A 20,000-square feet with

state-of-the-art technologies

Creating value

for businesses

in IR4.0

Banking Sector~3,000 bank branches

connected nationwide

and to the world

Oil & Gas~2,000 Oil &

Gas sites

enabled for

digital services

Retail~7,000 stores

connected

nationwide

Defense & SecurityConnecting >1,300

police stations and

>300 fire stations &

rescue stations

Public Shared ServicesEnhancing Ministries and

Government Agencies with

connectivity enabling better

productivity and collaboration

Health & Education>90% of Government

hospitals are connected

and >10,000 schools

ready for e-learning

implementation

Real EstatePioneering smart city

infrastructure and digital

services

2 state-of-the-art Tier III certified twin

core data centres to fulfil hosting, cloud

& Smart services needs

Data Centres

24

NATIONAL :

INDUSTRY BACKBONE

INTERNATIONAL :

CONNECTING MALAYSIA TO THE WORLD

customers> 400

Submarine cable systems worldwide>20

Global content players localisation17

Point-of-Presence worldwide28

Countries connected across infrastructure 160

Regional Offices worldwide 6

Submarine Cables connecting

Peninsular & East Malaysia3,800km

Fibre Cables >350,000km

98% Population coverage from fixed

and wireless infrastructure

LTE 4G mobile backhaul

including Partners>5,000

14LTE 4G common mobile

infrastructure (Smart C-RAN) for

industry sharing in Putrajaya

customers> 100

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