TELEKOM MALAYSIA BERHAD

1H 2008 RESULTS ANNOUNCEMENT

19 August 2008

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 the Company.

Disclaimer

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Vision and Mission of the “new” TM

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• Drive towards customer service excellence and operational efficiency

• Enrich consumer lifestyle and experience by providing innovative new generation services

• Improve the performance of our business customers by providing high value information and communications solutions

• Deliver value for stakeholders by generating shareholder value and supporting Malaysia’s growth and development

• To be Malaysia’s leading new generation communications provider, embracing customer needs through innovation and execution excellence

Vision Mission

• Demerger finalisation

• New TM board in place

• Strengthening the Top Team

• HSBB preparation

• PIP 2.0 preparation with all lines of business

Accomplishments in the First 100 Days

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Reflections from the First 100 Days

• Great strengths, especially in people and alignment on our direction

• Clear potential to improve current performance in s ome areas, especially in customer service and accounts receivables

• Rich pipeline of growth opportunities

• Short term, related to the way we do business today

• Longer term, related to expansion of services and new technologies

• Excitement and commitment of the management and sta ff

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New TM Business Operations

Retail Retail BusinessBusiness

Wholesale Wholesale BusinessBusiness

Global Global BusinessBusiness

Other Other BusinessBusiness

TELEKOM MALAYSIA TELEKOM MALAYSIA BERHADBERHAD

• TM Retail

• VADS Berhad [63.83%]

• TM Net Sdn Bhd [100%]

• Telekom Sales & Services Sdn Bhd [100%]

• GITN Sdn Bhd [100%]

• Telekom Applied Business Sdn Bhd [100%]

• TM Wholesale

• Fiberail Sdn Bhd [54%]

• Fibrecomm Network (M) SdnBhd [51%]

• TM Global

• Telekom Malaysia (USA) Inc. [100%]

• Telekom Malaysia (UK) Ltd [100%]

• Telekom Malaysia (Hong Kong) Ltd [100%]

• Telekom Malaysia (Singapore) Pte Ltd [100%]

• Universiti Telekom Sdn Bhd(MMU) [100%]

• TM Info-Media Sdn Bhd[100%]

• TM Facilities Sdn Bhd [100%]•TM Land Sdn Bhd [100%]•TMF Services Sdn Bhd [100%]•TMF Autolease Sdn Bhd [100%]

• Menara Kuala Lumpur SdnBhd [100%]

• Telekom Research & Development Sdn Bhd [100%]• Voice Products – Homeline,

Business Line, iTalk (VOIP)

• Data Products – VPN, IPVPN, Metro-E, Managed Services

• Internet Access Services –Streamyx, Hotspot, Business Broadband

• Application, Content & Value Added Services – Hosting services, Webmail, Virus Shield & Anti-Spamming, Bluehyppo.com, Hypp.tv

• Voice – VOIP Traffic Minutes, Interconnect Services

• Internet / Broadband Services – Broadband (to other ISP, ASP NSP)1

• Data Services – Bandwidth & Data services (Domestic)

• Infrastructure Services –Tenancy, Co-location & Infrastructure sharing

• Voice – Voice Traffic Hubbing (PSTN & VOIP)

• Internet / Broadband Services – Global IP Transit

• Data Services – Bandwidth & Data services (International), Bandwidth Backhaul, Global IPVPN, International Private Leased Circuit, International Satellite Services

1 ISP – Internet Service Providers

NSP – Network Service Providers

ASP – Application Service Providers

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• Managing & administering a private university known asMultimedia University

• Printing & Publication Services,

• Property Development, fleet & facilities management

• Managing telecommunication / tourism tower

• Research & Development activities

[ ] Represents TM shareholdings in subsidiary/associate companies

Financial Highlights

Operating Highlights

Developments

TM – Continuing OperationsPerformance Overview

• 2Q Revenue up 5.1% from the preceding quarter to RM2.11 billion

• Normalised EBITDA margin for 2Q of 35.8%, up from 34.2% in the corresponding quarter last year

• Revenue 1H 2008 grew 1.3% Y o Y to RM4.12 billion

• Normalised 1H EBITDA margin of 37.8% in line with 1H 2007

• Broadband customers continued its strong growth to 1.46 million customers from 1.07 million customers Y o Y

• Strong growth in Internet and Data services helped to mitigate decline in Voice revenue.

• PIP (Performance Improvement Programme) version 2.0 will further drive commercial and operational excellence towards better customer experience.

• Interim gross dividend of 12 sen (less tax at 26%) will be distributed to shareholders in mid-September 2008.

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RM million

2Q08 1Q08Growth Q on Q

2Q07Growth Y on Y

1H08 1H07Growth

YTD on YTD

Revenue 2,109.2 2,005.9 +5.1% 2,103.7 +0.3% 4,115.1 4,062.5 +1.3%

EBITDA 787.0 611.5 +28.7% 759.7 +3.6% 1,398.5 1,708.3 -18.1%

EBITDA margin 36.0% 29.8% +6.2pp 35.4% +0.6pp 33.0% 40.7% -7.7pp

Profit Before Tax 128.8 109.3 +17.8% 126.7 +1.7% 238.1 441.2 -46.0%

PBT margin 6.1% 5.4% +0.7pp 6.0% +0.1% 5.8% 10.9% -5.1pp

PATAMI 114.7 114.4 +0.3% 112.7 +1.8% 229.1 358.8 -36.1%

EPS (sen) 3.3 3.3 - 3.3 - 6.7 10.5 -36.2%

Broadband Customers (‘000)

1,462 1,354 +8.0% 1,066 +37.1%

Fixed Line Customers (‘000)

4,316 4,372 -1.3% 4,448 -3.0%

Reported

TM – Continuing Operations2Q 2008 : Performance Highlights

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Revenue continued to grow with better EBITDA margin in 2Q 2008

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

-(26.0)-(26.0)USP Prior Year Adjustment

33.2---Fixed asset written off

-83.6--Bad Debt / Revenue adjustment for foreign VOIP debtors

39.0

(56.7)

-

5.7

(6.9)2

(15.8)

-

112.7

2Q 2007

398.5

(51.9)

82.0

(43.9)

(25.7)1

58.0

93.3

229.1

1H 2008

154.8

(56.7)

-

(91.9)

(50.9)2,3

(37.7)

-

358.8

1H 2007

15.94Loss on termination of ranged accrual / long dated swap

(51.9)Reversal of excess current and deferred tax

In RM million 2Q 2008

Reported Profit After Tax & MI 114.7

ESOS cost 33.1

Diminution / (appreciation ) in value of investment 10.3

Gain on Disposal of Assets (14.1)1

Unrealised Forex (gain) / loss on long term loans 74.9

Normalised Profit After Tax & MI 156.9

Key Items Affecting EBITDA and PATAMI

91 Cyberprint assets in 2Q 2008 and 4 buildings under sale & leaseback in 1Q 20082 TNL, Malawi

-(35.2)-(35.2)USP Prior Year Adjustment

-112.9--Bad Debt / Revenue adjustment for foreign VOIP debtors

-93.6-33.2ESOS cost

34.2%

734.6

(9.3)2

(15.8)

759.7

2Q 2007

37.8%

1,602.1

(25.7)1

58.0

1,398.5

1H 2008

38.5%

1,615.3

(55.3)2,3

(37.7)

1,708.3

1H 2007In RM million 2Q 2008

Reported EBITDA 787.0

Diminution / (appreciation ) in value of investment 10.3

Gain on Disposal of Assets (14.1)1

Normalised EBITDA 781.2

Normalised EBITDA Margin 35.8%

PATAMI

EBITDA

3 Wisma Telekom4 This is an accounting loss being the difference between the unwinding value (cash receipt) of RM197mn and book value of RM212.9mn.

1,640 1,613 1,683

3,296182 195186

341381

260 172222

458394

135136

294 284

3,193

148

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2Q 2007 1Q 2008 2Q 2008 1H 2007 1H 2008

Others

Global

Wholesale

Retail

Total Revenue Recorded growth of 1.3% YoY contribute d by Retail and Wholesale Business

Note: * Total Revenue is after inter-co elimination. Revenue of segment is before inter-co elimination.

Total Revenue

RM million

4,063

2,0062,104 2,109

4,115

10

+0.2%

+1.3%

+3.2%

+11.7%

-14.0%

-3.4%

+5.1%

+8.8%

+29.1%

-4.6%

+4.3%

Retail accounted for about 75% of revenue in 1H 2008

Others include Non-Telecommunications & Other Telecommunications Revenue

CMG19%

SME37%

Consumer44%

CMG21%

Consumer46%

SME33%

1,021 928 925

1,853171

175 166

334341

291 334 361

557 695

157 176 232

299 408

2,003

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2Q 2007 1Q 2008 2Q 2008 1H 2007 1H 2008

Others

Internet & Multimedia

Data & Leased

Voice

Retail Revenue By Products Retail 1H 2008 : Broadband Remains as Key Growth Dr iver

RM million

1,6841,640 1,613

3,193 3,297

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+2.7%

+3.3%

-7.5%

+2.1%

+24.8%

+36.5%

+4.4%

+8.1%

+31.8%

-5.1%

-0.3%

Revenue by Customer Segment

June 2008June 2007

CMG=Corporates, Multinational Companies, Government ; SME=Small & Medium Enterprises

• Increase in Others include non-core products and services such as Solar Project and SchoolNetBandwidth upgrading and Managed Network Services (MNS) and contact centre projects

• Higher IPVPN revenue contributed to higher Data revenue in 1H 2008

Others include Non-Telecommunications & Other Telecommunications

2,973 2,971 2,942 2,880 2,832

1,475 1,484 1,491 1,492 1,484

2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008

Residential Business

Retail – Fixed Line Highlights

ARPU (RM) 2Q 2007 1Q 2008 2Q 2008Fixed Line-Business* 128 103 116Fixed Line-Residential* 34 32 30

In thousand

4,3164,448 4,455 4,433 4,372

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Fixed Line Customers

* Call usage

• Higher Business ARPU improved due to increasing trend of traffic minutes from attractive packages

• Slower decline in residential customers due to Broadband products and fixed line packages

Residential and Business customers remain stable with attractive packages and strong demand for broadband

Retail – Broadband Highlights

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858 9311,000 1,067

1,157

206244

264286

303

-

300

600

900

1,200

1,500

1,800

2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008

Hotspot

Streamyx

In thousand

1,0661,176

1,2651,354

1,462

+37.1%

Breakdown of Streamyx Broadband Customers

Business18%

Residential82%

June 2007

June 2008

• Broadband net adds of over 30k monthly

• Attractive combo packages remain a hit with consumers

Business18%

Residential82%

Broadband Customer Growth

ARPU (RM) 2Q 2007 1Q 2008 2Q 2008 Broadband 91 92 94

Continued strong growth in Streamyx despite increasing competition

ASP16%

DC84%

76 77 77

154

99 97 97

176194

7 21 12

19

33

146

-

50

100

150

200

250

300

350

400

2Q 2007 1Q 2008 2Q 2008 1H 2007 1H 2008

Infra sharing/co-location

Data & Leased

Voice

Wholesale 1H 2008 – Overall Growth Driven by Leased Services

Wholesale Revenue By Products RM million

186182

195

341

381

14

+2.2%

+11.7%

+10.2%

+5.5%

+73.7%

-4.6%

-42.9%

0.0%

0.0%

Revenue by Customer Segment

ASP = Application Service Providers; DC = Domestic Carriers

ASP22%

DC78%

June 2008June 2007

Others13%

Oceania & South East Asia

38%

America & Europe18%

North Asia31%

208

102 123

225

48

68

94

90

162

4

2

5

8

7

360

-

100

200

300

400

500

600

2Q 2007 1Q 2008 2Q 2008 1H 2007 1H 2008

Others

Data & Bandw idth

Voice

Global Revenue By Products

Global 1H 2008 – Data Revenue Mitigates Voice Declin e

RM million

260

172

458

394

222

15

-14.6%

-14.0%

-37.5%

+80.0%

-12.5%

+29.1%

+20.6%

+38.2%

+150.0%

• Voice decline YoY due to termination of VOIP partners following tighter credit screening process as well as continuous migration to mobile

• Focus on data growth for longer contract and better margin going forward

North Asia16%

America & Europe17%

Oceania & South East Asia

60%

Others7%

Revenue by GeographyJune 2008June 2007

Others include Middle East, Africa, Global Alliances, TM Global (Homebase), TM Regional Offices

Others include Non-Telecommunications & Other Telecommunications

1H 2008 : Cost As a % of Revenue – Most Cost Items R emain Consistent Except for Other Operating Costs and Manpower due t o demerger ESOS

• Other Operating Costs increased due to :

- Higher rental (RM42.5mn) for the buildings disposed under sale and leaseback starting from Jan 2008. However this is offset by lower Depreciation cost- Unrealised loss (1H08 RM58mn) on quoted shares investments

- Professional charges (RM18.4mn) from HSBB, demerger exercise and sale & leaseback- Higher maintenance cost (RM32.9mn) due to accrual for billable projects, maintenance of Metro-E, outsourcing of fault installation

- Rental of equipment (up RM19.7mn) arising from leasing of routers for billable projects• Higher Manpower cost in 1H 2008 mainly due to ESOS (RM 93.6mn)

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29.6% 25.2%

19.6%19.6%

17.0%20.2%

12.0% 15.6%

5.4% 5.7%2.8% 3.0%4.4%

4.8%

1H 2007 1H 2008

MarketingBad Debt

Supplies & MaterialsOther Operating CostsManpow er

Direct CostsDepreciation

RM 3,689 mn90.8%

RM 3,871 mn94.1%

Group Capital Expenditure

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Group Capex remains focus on improving quality and meeting Broadband demand

• High spending for Access is to support the Streamyx services, data, leased circuits and DEL

Others include building, land improvement, moveable plant, application & other asset

137270

327

36263

33

36

50

-

100

200

300

400

500

600

700

800

900

1H 2007 1H 2008

Others

Support System

Access

Core Netw ork

RM million

563

714

30 June 08 31 Dec 07 30 June 08 31 Dec 07Return on Invested Capital 4.10% 4.30% Gross Debt/ Equity* 0.60 0.67Return on Equity 4.41% 7.60% Gross Debt/ Equity** 0.23 0.28Return on Assets 3.16% 3.36% Net Debt/ Equity* 0.49 0.46Current Ratio 2.40 1.97 Net Debt/ Equity** 0.13 0.06Debt to EBITDA 2.40 2.19 Net Assets/Share (sen) 313.2 291.5

10,025.7

172.9

8,018.7

6,587.4

18,217.3

11,141.8

2,689.2

783.4

4,025.0

2,172.9

5,646.7

3,102.5

243.9

5,495.1

11,821.5

900.7

18,217.3

Balance Sheet and Key Financial Ratios

Shareholders’ Funds

Minority Interests

Deferred & Long Term Liabilities

Long Term Borrowings

Current Assets

Trade Receivables

Other Receivables

Amount due from TMI

Cash & Bank Balances

Current Liabilities

Trade and other Payables

Short Term Borrowings

Net Current Assets

Property Plant & Equipment

Other Non-current Assets

RM MillionAs at 31 Dec 2007As at 30 June 2008

10,777.1

186.0

7,935.3

6,543.4

18,898.4

8,768.4

2,267.3

836.3

4,025.0

1,178.5

3,088.5

2,397.0

40.1

5,679.9

11,500.1

1,718.4

18,898.4

* Before Amount Due from TMI** After Amount Due from TMI

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• Lower Cash and Bank balances in 1H 2008 due to dividend payment of RM2.2bn and loan repayment of RM248mn

• Net receipt from unwinding of swaps of RM101mn

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• Enhance the quality of experience for customers

• Implement customer service and quality improvements and create continuous improvement mechanisms for customer experience

• Drive growth across all customer segments by:

- Optimising the product portfolio

- Channel and sales force improvements

• Drive BB penetration both through HSBB and BBGP

• Drive efforts effectively to improve talent managementand execution capacity

• Cultivate mindset change to serve as a single customer facing company

• Realign roles of core affiliates

• Drive structural cost optimisation and process improvements to achieve significantly improved OPEX and CAPEX position

• Increase working capital efficiency by:- Reducing accounts receivable days- Optimising inventory management

4. One company mindset with

execution orientation

3. Operational excellence and

capital productivity

1. Customer centricity and

quality improvements

Commercial and Operational OutlookTM to further aggressively pursue business improvements through the next wave of Performance Improvement Programme (PIP 2.0), anchored on 4 strategic themes

2. Growth through

innovation and commercial excellence

BBGP / HSBB

PIP’s 4 Strategic Themes

Dividend Policy

• Dividend policy of minimum RM 700 million or 90% of PATAMI, whichever higher

• Interim gross dividend of 12 sen less tax at 26% (RM318mn) to be paid in mid-September 2008.

• Customer centricity & quality improvement• Growth through commercial excellence• Operational excellence and capital productivity• One company mindset with execution orientation

• Continue emphasis on improving BBGP (Broadband for General Population) and maintain nationwide availability

• HSBB will be the future key growth for TM

Key Takeaway

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To Improve Collection Performance

• AR Collection period of 120 days by year-end• Shorten time taken to bill customers• Review current payment terms• Encourage customer usage of auto-debit facilities• Targets and heavier weightage on collection deliverables for sales team

Business Performance

• Revenue continued to grow driven by Broadband• Normalised 1H EBITDA margin remained in high

30’s

• More focused on operational and capital productivity

Achievement & Awards

• Frost & Sullivan Malaysia Telecoms Award - May 2008

• Computerworld Customer Care Award - June 2008

• Malaysia Business – CIMA Enterprise Governance Award - July 2008

• The Brand Laureate Award (for VADS Berhad) - July 2008

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Product DevelopmentTM consumer products are constantly improved to remain attractive to customers

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Con

sum

erB

usin

ess

Development of innovative products to further capture and address business segment needs

Thank You

© Copyright 2008. All Rights Reserved

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