4Q & FY 2009 RESULTS (TM Group – continuing operations only)*

* Results of TM Group post demerger

22 February 2010

HSBB Capex moved into top gear

Non-voice has surpassed Voice as major revenue

More player in broadband space heats up competition but good for consumers

Broadband industry grow rapidly, penetration rate up from 21.1%to 31.7% in Dec 2009

Economy improved better than expected reflected through quarterly GDP

Overview 2009

2

Capex

HSBB (Gross)

BAU (Business As Usual)

Key 4Q 2009 Highlights

RM mn

RM mn

Revenue up 8.2% QoQ due to higher contribution from Non-Voice product and services

Current year EBITDA exceeds RM3bn mark contributed by better cost management

Attractive product packages & pricing pushed broadband customer base by 11.8% to 1.43million

Holistic approach in managing BAU & HSBB business objectives results in more effective management of overall Capexspend

TM Group – continuing operations only

FY08 FY09

Fixed Line

4Q08

4,321

4Q 09

4,297

In thousand

RM mn

HSBB Premises Passed Target*

Broadband*

4Q08

1,280

4Q09

1,431

* Exclude hotspots

In thousand

* cumulative 3

EBITDA PATAMI

16.0%9.3% 8.8%

Voice Data Internet Others

OPERATING REVENUE

RM mn

FY 08 FY 09

8,5148,4402,109 2,129

3Q09 4Q09

QoQ

2,2272,101

YoY

3Q09 4Q09

179

3Q09

758

4Q09

705

32.533.2

EBITDA Margin(%)

FY 08

3,103

FY 09

2,917

33.335.4

FY 08

643

FY 09

229

1,3381,448

1,211516

16.7

14.1

BAU capex / revenue ratio

In thousand

150

1,300

Dec 09

750

Dec 10 Dec 11

1,100

Dec 12

170

YoY0.3%

462,273 8,675

235 948,608

MERS999 revenue

RMmn

Reported

4Q09 4Q08Growth

YoY3Q09

Growth QoQ

FY 09 FY 08Growth FY09

vs FY08

Revenue 2,272.6 2,497.8 -9.0% 2,101.0 +8.2% 8,608.0 8,674.9 -0.8%

EBITDA 757.7 822.0 -7.8% 705.0 +7.5% 3,102.9 2,917.0 +6.4%

EBITDA margin 32.5% 32.6% -0.1pp 33.2% -0.7pp 35.4% 33.3% +2.1pp

Depreciation 494.9 529.6 -6.6% 492.6 +0.5% 2,038.3 2,098.9 -2.9%

Net Finance Cost 56.5 20.1 +181.1% 40.1 +40.9% 184.1 205.2 -10.3%

FX (Gain) / Loss (47.3) 18.2 +359.9% (45.6) +3.7% (40.5) 170.0 +123.8%

Profit Before Tax 253.6 253.9 -0.1% 217.8 +16.4% 921.6 353.8 +160.5%

PATAMI 170.2 166.0 +2.5% 179.1 -5.0% 643.0 229.3 +180.4%

4

Performance Highlights

TM Group – continuing operations only

Note: EBITDA Margin is calculated as percentage of EBITDA against Total Revenue + Other Operating Income

Challenging environment to sustain voice revenue pushed efforts to better manage cost resulting in better EBITDA achievement

1,9551,638 1,640 1,641 1,741

298

212 185 214274

179

189 228 176193

66

66 76 7065

0

1,000

2,000

3,000

4Q08 1Q09 2Q09 3Q09 4Q09

Others

Wholesale

Global

Retail

6,899 6,660

835 885

690 786251 277

0

2000

4000

6000

8000

10000

FY 08 FY 09

Others

Wholesale

Global

Retail

5Note: Total revenue and revenue of segment is after inter-co elimination * Inclusive of MERS999 revenue

FY 08RM mn

RM mn

-9.0%

-0.8%

Total Revenue by Line Of Business

Note: Breakdown is after inter-co elimination

TM Group – continuing operations only

5

8,6088 ,675

+8.2%

2,105 2,129

2,498

FY 09

2,101

Encouraging growth from Wholesale & Global but Retail remains the significant contributor

2,273

Retail78%

Global10%

Wholesale9%

Others3%

Retail79%

Global10%

Wholesale8%

Others3%

*

* *

**

4,412 4,001

1,309 1,519

1,477 1,607

1,476 1,481

0

2,000

4,000

6,000

8,000

10,000

FY 08 FY 09

Others

Internet

Data

Voice

1,107 1,034 1,001 1,002 964

370 367 371 354 427

392 385 402 418 402

628

319 355 327480

0

500

1,000

1,500

2,000

2,500

3,000

4Q08 1Q09 2Q09 3Q09 4Q09

Others

Internet

Data

Voice

6Note: Total revenue and revenue of segment are after inter-co elimination * Inclusive of MERS999 revenue

RM mn

RM mn

2,498

2,105 2,129

8,6088,675

-9.0%

+8.2%

-0.8%

Total Revenue by Product

TM Group – continuing operations only

6

FY 09

2,101

FY 08

Note: Breakdown is before inter-co elimination

Continue to see strong demand for Data & Internet services

Voice46%

Data18%

Internet19%

Others17%

Voice51%

Data15%

Internet17%

Others17%

2,273*

* *

**

2,796 2,784 2,792 2,797 2,767

1,501 1,506 1,528 1,534 1,554

0

1,000

2,000

3,000

4,000

5,000

4Q08 1Q09 2Q09 3Q09 4Q09

Residential Business 7

PHYSICAL HIGHLIGHTS

Fixed Customers Growth

Broadband* Customers Growth

In thousand

+0.6%

* Exclude Hotspots

4,297 4,290 4,320

TM Group – continuing operations only

+11.8%

4,331

*Call Usage Only** Streamyx Gross ARPU only

-0.2%

ARPU (RM) 1Q09 2Q09 3Q09 4Q09

Business* 74 78 73 67

Residential* 21 21 20 19

Streamyx Broadband** 87 86 89 86

4,321

771 796 825

1345

499 507 525

724

0

500

1000

1500

2000

2500

1Q09 2Q09 3Q09 4Q09

Nationwide Klang Valley

Hotspot Zones

1,270 1,303 1,350

2,069

Super Upgrade Deals promotion and increasing Hotspot zones are among our efforts to grow broadband customers

+53.3%

1,088 1,133 1,165 1,135 1,163

192 200 206 263 268

0

500

1,000

1,500

2,000

4Q 08 1Q 09 2Q 09 3Q09 4Q09

Residential Business

In thousand

+2.4%

1,280 1,333 1,370 1,398 1,431

+62.9%

Cost % Of RevenueCost % of Revenue

TM Group – continuing operations only

8

Total Cost / Revenue ( %)

RM8,035.4 RM7,709.4 RM2,228.4 RM1,908.9

RM mn

89.6%92.6% 89.2% 90.9% 90.9%

RM2,065.4

Proactive efforts to manage cost & capital result in significant improvement in most cost ratios

24.2 23.7

21.7 21.0

17.6 18.1

17.7 15.5

4.95.1

4.34.2

2.31.9

FY08 FY09

Bad Debt

Marketing Expenses

Supplies & material

Other operating cost

Manpower cost

Direct cost

Depreciation

21.2 23.4 21.8

21.823.9

19.9

13.5

18.8

17.0

22.2

15.0

18.8

3.94.1

6.83.7

3.6 6.22.82.0 0.5

4Q08 3Q09 4Q09

738 597

437387

274

227

0

500

1000

1500

2000

FY 08 FY 09

Support System

Core Network

Access

39271

477

720

347

0

500

1,000

1,500

FY08 FY09

Support System

Core

Access

9

GROUP CAPITAL EXPENDITURE

1

1Included Others eg: building, land, moveable plants & other assets

RM mn

BAU Capex / Revenue ( %)

16.7

TM Group – continuing operations only

14.1

Prioritization of projects execution results in optimum BAU & HSBB Capex spend

39 28 31 58154

477

59

242 151

268

15

53 156

123

0

100

200

300

400

500

600

4Q08 1Q09 2Q09 3Q09 4Q09

RM mn

516

102

326365

545

1,4481,211

BAU Capex

HSBB Capex

202

109184

136 168

55

68

6896

155

122

40

5150

86

0

100

200

300

400

500

4Q08 1Q09 2Q09 3Q09 4Q09

516

1,338

RM mn

RM mn

218

302 282

409380

2

2Capex started in 4Q08

1

Note : USD 260; USD 465mn; USD 300m; Fx Rate 3.4241 2 3

USD denominated

RM denominated

2010 2013 2014 2018 2025

RM mn

891

2,0001,594

9251,035

1

2

3

10,248.1

226.5

8,587.3

6,965.1

1,362.0

260.2

19,061.9

9,412.4

2,127.9

763.4

4,025.0

2,095.2

400.9

3,471.3

2,812.6

34.9

623.8

5,941.1

11,772.1

1,348.7

19,061.9

6,987.5

142.5

8,371.5

5,796.9

1,588.7

985.9

15,501.5

6,180.0

1,781.0

503.0

0

3,490.7

405.3

4,441.0

2,934.6

916.6

589.8

1,739.0

12,329.9

1,432.6

15,501.5

Shareholders’ Funds

Minority Interests

Deferred & Long Term Liabilities

Long Term Borrowings

Deferred Tax

Deferred Income

Current Assets

Trade Receivables

Other Receivables

Amount due from Axiata

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 31 Dec 2009 As at 31 Dec 2008

10

1

30 Sept 09 31 Dec 08 30 Sept 09 31 Dec 08Return on Invested Capital 6.74% 4.50% Debt to EBITDA 2.16 2.45

Return on Equity 6.70% 6.99% Gross Debt/ Equity 0.96 0.68

Return on Assets 3.70% 3.15% Net Debt/ Equity 0.46 0.48

Current Ratio 1.39% 2.71 Net Assets/Share (sen) 197.3 296.5

1

Capital repayment to shareholders of RM3.5bn

Group Balance Sheet & Key Financial Ratios

TMCo AR Days improved to 101 days

31 Dec 0831 Dec 0831 Dec 09

1 Based on Normalised PATAMI

TM Group – continuing operations onlyStrong balance sheet position resulting from effective management of invested capital & debt

Net proceed of RM399 mn from sales of staff housing loans

Payment from Axiata of RM4.025bn

2008 Final Dividend of 14.25sen (less tax of 25%) amounting to RM382mn

2009 Interim Dividend of 10sen (tax exempt) amounting to RM358mn

Bond buyback of US$75mn

31 Dec 09

ESOS proceed of RM230mn

• Diligent monitoring on opex helped achieve betterthan target cost over revenue ratios

• Bad Debt to revenue ratios improved to 1.9% due to more effective enforcement of credit management policies.

• Holistic & coordinated approach in executing BAU & HSBBproject results in more effective overall Capex spend

Cost Management

11

• Non-voice contributed 54% of revenue with Retail segmentcontinue to be the main contributor

• Internet and Data are the main key growth drivers &expected to grow to 12%-13% respectively over thenext 3 years

Revenue Improvements

• Achieved 152k premises passed surpassing target of 150k

• Completed 100% physical upgrade work in four exchanges of Subang Jaya, Bangsar, Shah Alam & Tmn Tun Dr. Ismail

• Free User Trial is on going in 123 employees and 30 selectedcustomers homes

• On track with triple play offering by end March 2010

HSBB

Key Takeaways

TM Group – continuing operations only

• Effective accounts tracking & lower AR days improved cash collection from operations

• US$75mn bond buyback resulting in lower interestexpense

• Monetization of RM399mn staff housing loans & timelydivestment of assets improved overall cash position

Balance Sheet Management

•4 areas of focus: Waste management, energy efficiency, water efficiency and climate change

•Inaugural Sustainability Report accorded GRI score A+

• Tele-working initiatives involving 140 sales staff

Green Efforts

• Interim Dividend of 10sen (tax exempt) amounting to RM358mn

• Final dividend of 13sen (less tax 25%) amounting RM349mn

• Delivered RM700mn dividend as promised

2009 Dividend

Key KPI

Dividend Policy unchanged

Internet & Data continue to be key drivers for growth

Aggressive efforts to arrest Voice decline

BAU Capex over revenue not exceeding RM1.4bn

Exciting phase with triple offering

Outlook 2010

12

2010 2012

Revenue growth (%)

EBITDA Margin (%)

Customer Centricity Perspective

2.0 3.0 – 3.5

33 Mid 30s

Committed to spend at least 5.0% revenue for improvement in quality

of customer experience

Thank You

Appendix

841 829 822 791 770

183 189 172 194 180

392 385 398 415 399

553243 254 247 450

0

500

1000

1500

2000

2500

4Q08 1Q09 2Q09 3Q09 4Q09

Others

Internet

Data

Voice

3,581 3,212

694735

1,4771,598

1,173 1,194

0

1,500

3,000

4,500

6,000

7,500

FY08 FY09

Others

Internet

Data

Voice

Consumer35%

SME26%

Enterprise22%

Government17%

Total Revenue By Products

Revenue by ProductRevenue by Business Unit

RM mn

RM mn

-3.5%

+6.1%

1,6401,638

1,955

6,899 6,660

Note : Breakdown is before inter company elimination

TM Group – continuing operations only

15

-10.9%

FY 09

RETAIL

1,6411,741

1H 09

Consumer33%

SME26%

Enterprise23%

Government18%

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

86 77 94 83 73

102 123139

107 129

17 12

22

1419

0

50

100

150

200

250

300

4Q08 1Q09 2Q09 3Q09 4Q09

Others

Data

Voice

309 327

393498

63

67

0

200

400

600

800

1000

FY08 FY09

Others

Data

Voice

+9.6%

189

228

+7.8%

+13.9%

690

786

Revenue by Customer SegmentRevenue by Product

RM mn

RM mn

Wholesale

TM Group – continuing operations only

179

16

FY 09

193

ASP19%

DC81%

DC : Domestic CarrierASP : Application Service Provider

FY 08

ASP19%

DC81%

176

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

Others : Include internet

181129

91127 122

133

96108

97161

6

57

5

0

50

100

150

200

250

300

350

4Q08 1Q09 2Q09 3Q09 4Q09

Others

Data

Voice

524 469

372 462

15 23

0

200

400

600

800

1000

1200

FY 08 FY 09

Others

Data

Voice

212185

835885

Revenue by RegionRevenue by Product

RM mn

RM mn

298

TM Group – continuing operations only

17

-8.0%

+28.0%

GLOBAL

FY 09

FY 08

214

Sustain voice & grow data revenue

+6.0%

274

Africa & Middle East

8%America

14%

Europe7%

South Asia42%

North Asia12%

Oceania6%

Others11%

Africa & Middle East

6%

America13%

Europe8%

South Asia35%

North Asia20%

Oceania5%

Others13%

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

Others : Include internet

4Q 2009 3Q 2009 4Q 2008 FY09 FY08

Revenue (RM mil) 2,272.6 2,101.0 2,497.8 8,608.0 8,674.9

Direct Costs % 19.9 23.9 21.8 21.0 21.7

RM mil. 451.2 502.6 545.3 1,809.5 1,879.9

Manpower % 17.0 18.8 13.5 18.1 17.6

RM mil. 387.3 395.3 337.4 1,554.7 1,527.8

Supplies & Materials % 6.8 4.1 3.9 5.1 4.9

RM mil. 153.8 86.5 98.2 441.6 422.6

Bad & Doubtful Debts % 0.5 2.0 2.8 1.9 2.3

RM mil. 10.9 41.8 69.6 166.0 196.4

Marketing Expenses % 6.2 3.6 3.7 4.2 4.3

RM mil. 140.4 75.4 92.9 363.8 370.9

Other Operating Costs % 18.8 15.0 22.2 15.5 17.7

RM mil. 426.9 314.7 555.4 1,335.5 1539.0

Depreciation & Amortisation % 21.8 23.4 21.2 23.7 24.2

RM mil. 494.9 492.6 529.6 2,038.3 2,098.9

Total (RM mil) 2,065.4 1,908.9 2,228.4 7,709.4 8,035.4

Total (% of Revenue) 90.9 90.9 89.2 89.6 92.6

18

Cost % Of Revenue

19

In RMmn 1Q09 2Q09 3Q09 4Q09 4Q08 FY 09 FY 08

Reported EBITDA 816.2 824.1 705.0 757.7 822.0 3,102.9 2,917.0

Non Operational

ESOS Cost 4.5 7.4 9.3 (9.9) (28.9) 11.3 81.6

(Appreciation)/ Diminution in value of quoted shares

(6.2) (20.4) (9.8) (19.7) 7.4 (56.3) 84.8

(Gain)/ Loss on sale of Assets - (51.4) - 3.6 - (47.8) (25.7)

Normalised EBITDA 814.5 759.7 704.5 731.7 800.5 3,010.1 3,057.7

Normalised EBITDA Margin 38.2% 34.6% 33.2% 32.7% 31.8% 34.3% 34.6%

Reported EBITDA Margin 38.3% 37.5% 33.2% 32.5% 32.6%* 35.4% 33.3%*

Normalised EBITDA

TM Group – continuing operations only

Note: *Normalised EBITDA FOR 4Q08 and FY08 adjusted to only include non -operational items

20

Normalised PATAMI

TM Group – continuing operations only

In RM mn 1Q09 2Q09 3Q09 4Q09 4Q08 FY 09 FY 08

Reported PATAMI 27.7 266.0 179.1 170.2 166.0 643.0 229.3

Non Operational

ESOS Cost 4.5 7.4 9.3 (9.9) (28.9) 11.3 81.6

(Appreciation)/ Diminution in value of quoted shares

(6.2) (20.4) (9.8) (19.7) 7.4 (56.3) 84.8

(Gain)/ Loss on sale of Assets - (51.4) - 3.6 - (47.8) 63.1

Unrealised Forex (Gain)/ Loss on long term loans

175.5 (123.2) (45.5) (47.3) 18.2 (40.5) 170.0

Net (Gain) / Loss on Debt management (32.6) (13.7) (46.3) 82.0

Reversal of Excess Current / Deferred tax

(1.6) 0.6 (8.5) 14.4 - 4.9 (0.9)

Minority Interest - - - - (0.4) -

Normalised PATAMI 199.9 79.0 92.0 97.6 162.3* 468.3 709.9*

Note: *Normalised PATAMI FOR 4Q08 and FY08 adjusted to only include non -operational items

Let’s Talk 10

TM – Voice Promotions

Business

Residential

21

TM - Broadband Promotions

Residential

Business

22

23

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

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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

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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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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 the Company.

Disclaimer

23

THE ENDAny queries please email to : investor@tm.com.my

•Investor Relations• Level 11 (North Wing)• Menara TM •Jln Pantai Bharu •50672 Kuala Lumpur, Malaysia • Tel (603) 2240 4848/ 7366 / 7388