tm2007 e 01 agm - listed company2mb).pdf · chairman’s statement 125-143 chairman’s statement...

Annual Report 2007

Unleashing potential...

Group Corporate CommunicationsTELEKOM MALAYSIA BERHAD (128740-P)

Level 8 (South Wing), Menara TMJalan Pantai Baharu, 50672 Kuala LumpurMalaysia

www.tm.com.my

Annual R

eport 2007TELEK

OM

MA

LAYSIA B

ERH

AD

(128740-P)

OP

ENIN

G U

PP

OSSIB

ILITIES

pau•a [pou-uh]–nounPaua or paua is the Maori name given to three speciesof large edible sea snails, marine gastropod molluscs,which belong to the family Haliotidae (genus Haliotis).

New Zealand’s most well-known paua species is HaliotisIris. It is also the most common species, growing up to 18cm in length. What sets it apart is its distinctive iridescentcolour.

...Creating value

Unleashing Potential...In everything there lies a seed, which has the capacity tobe something better. However, to truly effect transformationsomething more than a mere stimulus is required. Thatsomething is a focus, a mission, a goal. To get there onemust have deep understanding of one’s true potential. Onlythen can that potential be recognised and then unleashed.

Creating ValueChange is good. It is driven by a desire for improvement. Itis powered by excellence. It banishes complacency andapathy with creativity and energy. It inspires people to pushfurther and become something better. It gives potential achance to be unleashed. But best of all, it rewrites thewritten, removes obstacles and destroys barriers.

Change is the herald of new beginnings, allowing for theopening up of possibilities and the unleashing of potentialtowards the creation of value.

About the cover

A Unique CreatureThe Paua is possibly one of nature’s most enigmaticof creatures. To the ordinary eye it is a large molluscthat spends its existence unobtrusively nibbling awayat seaweed. The Paua is in fact a highly sought-afterdelicacy, its iridescent shell stunningly beautiful andradiant, equally so its rare and unique blue pearl.When it comes to the humble Paua, the surface belieswhat lies underneath.

A Unique CompanyTM has been instrumental in the development ofMalaysia since its early days as The Department ofTelecommunications. As a Company, we are now thenation’s largest telecommunications provider, andmore. From having the largest fibre-optic network tooffering a diverse portfolio of products and services,TM is a name everyone knows. Going beyondconnectivity, we permeate nearly every strata ofsociety through our educational, corporate, communityand social roles. Having spread our wings beyond our shores, we are now one of Asia’s leadingtelecommunication companies.

14-50

Notice of Annual General MeetingDate:17 April 2008, Thursday

Time:10.00 a.m.

Venue:Multi Purpose Hall, Menara TM, Jalan Pantai Baharu50672 Kuala Lumpur, Malaysia

Corporate Profile 14

The Demerger Proposition 17

TM Group Products & Services 20

Milestones Over Two Centuries 22

Media Milestones In 2007 24

2007 Corporate Events 26

TM Awards & Recognition 2007 38

Corporate Information 42

Group Corporate Structure 44

Group Organisation Structure 46

Enhancing Value To Our Providers 47Of Capital

CorporateFramework

51-66

Five-Year Group 52Financial Highlights

Simplified Group 54Balance Sheets & GroupSegmental Analysis

Group Quarterly Performance 56

Group Financial Review 57

Business & Other Statistics 64

Statement & Distribution 66Of Value Added

PerformanceReview

67-86

Profile Of Directors 70

Group Senior Management 76

Leadership

87-124

Statement On 88Corporate Governance

Achieving Business Objectives 103By Improving Enterprise RiskManagement (ERM) Execution

Code Of Business Ethics 106

Additional Compliance Information 108

Audit Committee Report 114

Directors Statement 121On Internal Control

Accountability

ContentsAnnual Report 2007TELEKOM MALAYSIA BERHAD (128740-P)

Notice Of Annual General Meeting 6

Statement Accompanying The 10Notice Of Annual General Meeting

Financial Calendar 11

OUR VISIONOur vision is to be the Communications Companyof choice – focused on delivering Exceptional Valueto our customers and other stakeholders.

OUR MISSIONTo achieve our vision, we are determined to do thefollowing:

• Be the recognised leader in all markets we serve

• Be a customer-focused organisation thatprovides one-stop total solutions

• Build enduring relationships based on trust with our customers and partners

• Generate shareholder value by seizingopportunities in Asia Pacific and other selectedregional markets

• Be the employer of choice that inspiresperformance excellence

CHAIRMAN’S STATEMENT

125-143

Chairman’s Statement 126

Group Chief Executive 134Officer’s Statement

Perspective

144-210

Malaysia Business 148

Celcom (Malaysia) Berhad 158

International Operations 166– Global Cable Services, 184

International Investments& Presence

TM Ventures 186– International And Domestic 202

Infrastructure & TrunkFibre Optic Network

Asian Economies And The 204Telecommunications Sector: Review & Outlook

BusinessReview

211-250

Building Enduring Customer 214Relationships

Fostering A Nation Through 218Capacity Building

Gearing Human Capital 224Towards Business Excellence

Building Capabilities Through 230Development And Learning

Towards Greater Innovation 234

Occupational Safety, Health 238And Environment (OSHE)

Corporate Responsibility 240

KeyInitiatives

251-430

Shareholding Statistics 413

List Of Top 30 Shareholders 414

Authorised And 416Issued Share Capital

Net Book Value 418Of Land & Buildings

Usage Of Properties 419

Group Directory 420

Glossary 429

Proxy Form •••

FinancialStatements 251

OtherInformation

Not

ice

of A

nnua

lG

ener

al M

eetin

g

TELEKOM MALAYSIA BERHADANNUAL REPORT 20076

1. To receive the Audited Financial Statements for the financial yearended 31 December 2007 together with the Reports of the Directorsand Auditors thereon. (Ordinary Resolution 1)

2. To declare a final gross dividend of 22 sen per share (less 26%Malaysian Income Tax) in respect of the financial year ended 31December 2007. (Ordinary Resolution 2)

3. To re-elect Datuk Zalekha Hassan who was appointed to the Boardduring the year and retire pursuant to Article 98(2) of the Company’sArticles of Association. (Ordinary Resolution 3)

4. To re-elect the following Directors, who retire by rotation pursuant toArticle 103 of the Company’s Articles of Association:-

(i) Dato’ Ir Dr Abdul Rahim Daud (Ordinary Resolution 4)

(ii) YB Datuk Nur Jazlan Tan Sri Mohamed (Ordinary Resolution 5)

(iii) Dato’ Azman Mokhtar (Ordinary Resolution 6)

5. To approve the payment of Directors’ fees of RM720,492.91 for thefinancial year ended 31 December 2007. (Ordinary Resolution 7)

6. To re-appoint Messrs. PricewaterhouseCoopers having consented to act as Auditors of the Company for the financial year ending 31 December 2008 and to authorise the Directors to fix theirremuneration. (Ordinary Resolution 8)

AS SPECIAL BUSINESS

To consider and if thought fit, to pass the following Resolutions:-

7. (i) Authority under Section 132D of the Companies Act, 1965 forthe Directors to allot and issue shares

“THAT pursuant to Section 132D of the Companies Act, 1965(the Act), full authority be and is hereby given to the Directorsto issue shares in the capital of the Company at any time untilthe conclusion of the next Annual General Meeting and uponsuch terms and conditions and for such purposes as theDirectors may, in their absolute discretion, deem fit providedthat the aggregate number of shares to be issued, does notexceed 10% of the issued share capital of the Company for thetime being, subject always to the approvals of the relevantregulatory authorities, where such approval is necessary.”

(Ordinary Resolution 9)

23rdNOTICE IS HEREBY

GIVEN THAT THE

TWENTY-THIRD (23RD)

ANNUAL GENERAL

MEETING OF THE

COMPANY WILL BE

HELD ON THURSDAY,

17 APRIL 2008

AT 10:00 A.M., AT

MULTI PURPOSE HALL,

MENARA TM,

JALAN PANTAI BAHARU,

50672 KUALA LUMPUR,

MALAYSIA, FOR THE

FOLLOWING PURPOSES:-

TELEKOM MALAYSIA BERHADANNUAL REPORT 2007 7

(ii) Proposed New Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenueor Trading Nature

“THAT in accordance with paragraph 10.09 of the Listing Requirements of Bursa MalaysiaSecurities Berhad (Bursa Securities), approval be and is hereby given for Telekom MalaysiaBerhad (the Company) and/or its subsidiaries to enter into recurrent related party transactions ofa revenue or trading nature as set out in APPENDIX I of the Circular to Shareholders despatchedtogether with the Company’s 2007 Annual Report, which are necessary for the day-to-dayoperations provided such transactions are entered into in the ordinary course of business of theCompany and/or its subsidiaries, are carried out on an arm’s length basis, on terms not morefavourable to the related party than those generally available to the public and are notdetrimental to the minority shareholders of the Company (Proposed New Shareholders’ Mandate);

THAT such approval shall continue to be in full force and effect until:

(a) the conclusion of the next Annual General Meeting of the Company at which time theauthority will lapse, unless the authority is renewed by a resolution passed at such generalmeeting;

(b) the expiration of the period within which the Company’s next Annual General Meeting isrequired to be held under Section 143(1) of the Companies Act, 1965 (but shall not extend tosuch extension as may be allowed under Section 143(2) of the Companies Act, 1965; or

(c) revoked or varied by resolution passed by the shareholders of the Company at a generalmeeting,

whichever is earlier;

AND THAT the Board of Directors of the Company be and is hereby authorised to complete anddo all such acts, deeds and things (including executing such documents under the common sealin accordance with the provisions of the Articles of Association of the Company, as may berequired) to give effect to the Proposed New Shareholders’ Mandate.” (Ordinary Resolution 10)

(iii) Proposed Amendments to the Articles of Association of the Company

“THAT the Articles of Association of the Company be and are hereby altered, modified, added anddeleted in the form and manner as set out in APPENDIX II of the Circular to Shareholdersdespatched together with the Company’s 2007 Annual Report.

AND THAT the Board of Directors of the Company be and is hereby authorised to do all suchacts, deeds and things as are necessary and/or expedient in order to give full effect to theProposed Amendments to the Articles with full powers to assent to any conditions, modificationsand/or amendments as may be required by any relevant authorities." (Special Resolution)

8. To transact any other business of the Company of which due notice has been received.

Notice of Annual General Meeting


FURTHER NOTICE IS HEREBY GIVEN THAT a Depositor shall be eligible to attend this meeting only inrespect of:-

(a) Shares deposited into the Depositor’s Securities Account before 12:30 p.m. on 8 April 2008 (in respect of shares which are exempted from Mandatory Deposit);

(b) Shares transferred into the Depositor’s Securities Account before 4:00 p.m. on 8 April 2008 (in respect of Ordinary Transfer); and

(c) Shares bought on the Bursa Securities on a cum entitlement basis according to the Rules of theBursa Securities.

Shareholders are reminded that pursuant to the Securities Industry (Central Depositories) (Amendment No. 2) Act, 1998 (SICDA) which came into force on 1 November 1998, all shares not deposited with BursaMalaysia Depository Sdn Bhd (Bursa Depository) by 12:30 p.m. on 1 December 1998 and not exempted fromMandatory Deposit, have been transferred to the Minister of Finance (MOF). Accordingly, the person eligibleto attend this Meeting for such undeposited shares will be the MOF.

NOTICE ON ENTITLEMENT AND PAYMENT OF FINAL DIVIDEND

NOTICE IS ALSO HEREBY GIVEN THAT subject to the approval of Members at the 23rd Annual GeneralMeeting to be held on 17 April 2008, a final dividend of 22 sen (less 26% Malaysian Income Tax) for thefinancial year ended 31 December 2007 will be paid on 15 May 2008 to Depositors whose names appear inthe Record of Depositors on 24 April 2008.

FURTHER NOTICE IS HEREBY GIVEN THAT a Depositor shall qualify for entitlement to the dividends only inrespect of:

(a) Shares deposited into the Depositor’s Securities Account before 12:30 p.m. on 22 April 2008 (in respect of shares which are exempted from Mandatory Deposit);

(b) Shares transferred into the Depositor’s Securities Account before 4:00 p.m. on 24 April 2008 (in respect of Ordinary Transfers); and

(c) Shares bought on the Bursa Securities on a cum entitlement basis according to the Rules of theBursa Securities.

Shareholders are reminded that pursuant to SICDA, all shares not deposited with Bursa Depository by12:30 p.m. on 1 December 1998 and not exempted from Mandatory Deposit, have been transferred to theMOF. Accordingly, the dividend for such undeposited shares will be paid to MOF.

By Order of the Board

Wang Cheng Yong (MAICSA 0777702)Zaiton Ahmad (MAICSA 7011681)Secretaries

Kuala Lumpur26 March 2008



5. A corporation which is a Member, may byresolution of its Directors or othergoverning body authorise such person asit thinks fit to act as its representative atthe Meeting, in accordance with Article 92of the Company's Articles of Association.

6. The instrument appointing the proxytogether with the duly registered power ofattorney referred to in Note 4 above, ifany, must be deposited at the office ofthe Share Registrars, Tenaga Koperat SdnBhd, G-01 Ground Floor, Plaza Permata,Jalan Kampar, Off Jalan Tun Razak,50400 Kuala Lumpur, Malaysia not lessthan 48 hours before the time appointedfor holding the Meeting or anyadjournment thereof, or, in the case of apoll, not less than 24 hours before thetime appointed for the taking of the poll.

EXPLANATORY NOTES ON SPECIAL BUSINESS

(i) The proposed Ordinary Resolution 9, ifpassed, will give the Directors of theCompany authority to issue and allotshares for such purposes as theDirectors in their absolute discretionconsider to be in the interest of theCompany, without having to convene ageneral meeting. This authority unlessrevoked or varied by the Company in ageneral meeting, will expire at the nextAnnual General Meeting of the Company.

(ii) The proposed Ordinary Resolution 10, ifpassed, will authorise the Companyand/or its subsidiaries to enter intorecurrent related party transactions withrelated parties in the ordinary course ofbusiness which are necessary for theGroup's day-to-day operations and are onterms not more favourable to the relatedparties than those generally available tothe public and shall lapse at theconclusion of the next Annual GeneralMeeting unless authority for its renewalis obtained from shareholders of theCompany at a general meeting.

Detailed information on the proposed newshareholders’ mandate is set out inAppendix I of the Circular to Shareholdersdespatched together with the Company’s2007 Annual Report.

(iii) The proposed Special Resolution, ifpassed, will bring the Articles ofAssociation of the Company in line withthe recent amendments of the ListingRequirements of Bursa Securities, theprovisions of the Capital Markets andServices Act, 2007 as well as for betterclarity and administrative efficiency.

Detailed information on the proposedamendments to the Articles ofAssociation of the Company is set out inAppendix II of the Circular toShareholders despatched together withthe Company’s 2007 Annual Report.

NOTES:

1. A Member entitled to attend and vote atthe Meeting is entitled to appoint a proxyto attend and vote in his/her stead. A Proxyneed not be a Member of the Companyand the provisions of Section 149(1)(b) ofthe Act shall not apply to the Company.

2. A Member shall not be entitled to appointmore than two (2) proxies to attend andvote at the Meeting provided that where aMember of the Company is an authorisednominee as defined in accordance with theprovisions of the Securities Industry(Central Depositories) Act, 1991, it mayappoint at least one (1) proxy but not morethan two (2) proxies in respect of eachsecurities account it holds with ordinaryshares in the Company standing to thecredit of the said securities account.

3. Where a Member appoints two (2)proxies, the appointments shall be invalidunless the proportion of the holding to berepresented by each proxy is specified.

4. The instrument appointing a proxy shallbe in writing under the hand of theappointer or his attorney duly appointedunder a power of attorney or if suchappointer is a corporation, either underits common seal or under the hand of anofficer or attorney duly appointed under apower of attorney. If the Proxy Form issigned under the hand of an officer dulyauthorised, it should be accompanied bya statement reading "signed as authorisedofficer under an Authorisation Documentwhich is still in force, no notice ofrevocation have been received". If the ProxyForm is signed under the attorney dulyappointed under a power of attorney, itshould be accompanied by a statementreading "signed under a Power of Attorneywhich is still in force, no notice ofrevocation have been received". A copy ofthe Authorisation Document or the Powerof Attorney, which should be valid inaccordance with the laws of thejurisdiction in which it was created and isexercised, should be enclosed with theProxy Form.


Sta

tem

ent

Acc

ompa

nyin

g Th

eN

otic

e O

f A

nnua

l G

ener

al M

eetin

g


DIRECTORS RANKING FOR RETIREMENT AND RE-ELECTION AT THE

23rdANNUAL GENERAL MEETING

The following are Directors retiring pursuant to Article 98(2) and Article 103 of theCompany’s Articles of Association:-

Article 98(2): Retirement after appointment to fill casual vacancy

1. Datuk Zalekha Hassan

Article 103: Retirement by rotation

1. Dato’ Ir Dr Abdul Rahim Daud

2. YB Datuk Nur Jazlan Tan Sri Mohamed

3. Dato’ Azman Mokhtar

The respective profiles of the above Directors are set out in the Profile of the Board ofDirectors on pages 72 to 74 inclusive, of this Annual Report. Their securities holdings inthe Company and its related corporation are disclosed on page 413 of this Annual Report.

Note:Dato’ Sri Abdul Wahid Omar, the Director/Group Chief Executive Officer who is due forretirement by rotation pursuant to Article 103 of the Company’s Articles of Association atthis 23rd Annual General Meeting, has indicated his intention not to seek re-election as aDirector of the Company. Dato’ Sri Abdul Wahid shall therefore, retire as a Director uponthe conclusion of the 23rd Annual General Meeting. However, he shall remain as theGroup Chief Executive Officer of the Company.

17 April 200823rd AGM of the Company.

FinancialC

alendar


23 February 2007Announcement of the audited consolidatedresults and the proposed final dividend of30 sen per share (less 27% MalaysianIncome Tax) for the financial year ended31 December 2006.

10 December 2007Declaration of a special dividend of 65 senper share (less 26% Malaysian Income Tax)for the financial year ended 31 December2007.

8 May 200722nd AGM followed by the ExtraordinaryGeneral Meeting (EGM) of the Company.

18 January 2008Date of entitlement to the special dividendof 65 sen per share (less 26% MalaysianIncome Tax) for the financial year ended 31 December 2007.

14 May 2007Date of entitlement to the final dividend of30 sen per share (less 27% MalaysianIncome Tax) for the financial year ended31 December 2006.

31 January 2008Date of payment of the special dividend of65 sen per share (less 26% MalaysianIncome Tax) for the financial year ended 31 December 2007.

12 June 2007Date of payment of the final dividend of 30 sen per share (less 27% MalaysianIncome Tax) for the financial year ended31 December 2006.

20 February 2008Issuance of Notice of EGM.

4 September 2007Date of payment of the interim dividend of26 sen per share (less 27% MalaysianIncome Tax) for the financial year ended 31 December 2007.

15 May 2008Date of payment of the final dividend of 22 sen per share (less 26% MalaysianIncome Tax) for the financial year ended31 December 2007.

26 March 2008Issuance of Notice of the 23rd AGMtogether with the Annual Report for thefinancial year ended 31 December 2007and Circular to Shareholders.

7 November 2007Announcement of the unauditedconsolidated results for the 3rd quarterended 30 September 2007.

26 July 2007Announcement of the unauditedconsolidated results for the 2nd quarterended 30 June 2007 and the declaration ofan interim dividend of 26 sen per share(less 27% Malaysian Income Tax) for thefinancial year ended 31 December 2007.

26 February 2008Announcement of the audited consolidatedresults and the proposed final dividend of22 sen per share (less 26% MalaysianIncome Tax) for the financial year ended31 December 2007.

20 August 2007Date of entitlement to the interim dividendof 26 sen per share (less 27% MalaysianIncome Tax) for the financial year ended31 December 2007.

24 April 2008Date of entitlement to the final dividend of22 sen per share (less 26% MalaysianIncome Tax) for the financial year ended31 December 2007.

6 March 2008EGM of the Company.

CORPORATE PROFILE 14

THE DEMERGER PROPOSITION 17

TM GROUP PRODUCTS 20AND SERVICES

MILESTONES OVER 22TWO CENTURIES

MEDIA MILESTONES IN 2007 24

2007 CORPORATE EVENTS 26

TM AWARDS AND 38RECOGNITION 2007

CORPORATE INFORMATION 42

GROUP CORPORATE STRUCTURE 44

GROUP ORGANISATION 46STRUCTURE

ENHANCING VALUE TO 47PROVIDERS OF CAPITAL

CorporateFramework

Cor

pora

teP

rofil

e


CorporateFramework


FROM ITS EARLY DAYS AS THE MALAYAN TELECOMMUNICATIONS DEPARTMENT IN1946, TM CHARTED A GROWTH PATH THAT SAW ITS CORPORATISATION IN 1987, INITIALPUBLIC OFFERING AND LISTING ON BURSA SECURITIES IN 1990, ITS EVOLUTION AS ACOMPANY WITH A RECORD FINANCIAL PERFORMANCE IN ITS COUNTRY OF DOMICILEAS WELL AS AN EXPANDING FOOTPRINT IN ASIA AND ELSEWHERE, AND THE LAUNCHOF A NEW BRAND IDENTITY IN 2005. OVER THE YEARS, TM HAS EVOLVED TO BECOMETHE LARGEST INTEGRATED TELECOMMUNICATIONS SOLUTIONS PROVIDER IN MALAYSIAAND ONE OF ASIA’S LEADING COMMUNICATIONS COMPANIES. TM’S SUCCESS ANDGROWTH HAS BEEN REMARKABLE, GIVEN THE HIGHLY-COMPETITIVE ENVIRONMENT IN WHICH IT OPERATES. WITH A CURRENT GROUP STAFF STRENGTH IN EXCESS OF36,000 WITH OPERATIONS AND INTERESTS IN 13 COUNTRIES, TM IS FOCUSED ONBEING A RECOGNISED LEADER IN ALL ITS MARKETS, DELIVERING EXCEPTIONAL VALUETO ITS CUSTOMERS AND ACHIEVING SUSTAINABLE GROWTH IN BOTH LOCAL ANDINTERNATIONAL MARKETS.


As an integrated telecommunicationscompany, TM offers a comprehensiverange of communication services andsolutions in fixed line, data, mobile andInternet, and multimedia. Supportingthis extensive range of products andservices is a world-classcommunications infrastructure,spanning the entire country and goingbeyond Malaysian shores. In facilitatingregional and internationaltelecommunications, TM has in place anextensive combination of satellite,terrestrial and submarine fibre-opticcable systems to deliver both domesticand international data services.

In August 2006, TM implemented thesecond phase of its corporate re-organisation that saw the creation of aStrategic Business Unit called MalaysiaBusiness to consolidate all domesticfixed services and align businesses witha common agenda. Incorporating TMRetail, TM Wholesale and TM Net Sdn

Bhd, Malaysia Business focuses onTM’s fixed line and data, as well asInternet and multimedia businesses. As at 31 December 2007, TM’s fixedservices customers stood at 5.7 million,inclusive of fixed line, Internet andmultimedia.

TM’s mobile arm, Celcom (Malaysia)Berhad (Celcom), is Malaysia’s premiermobile communications provider.Celcom has steadily made its presencefelt in the market through itsinnovations, which have raised industrystandards and provided product andservice benchmarks in the country.Celcom was the first mobile operator inMalaysia to launch 3G servicescommercially. Leveraging on itspartnership with Vodafone, Celcomlaunched the Vodafone Mobile Connect3G Broadband (HSDPA) data card andBlackberry by Vodafone which extendsthe product offerings to its growingsubscriber base. The Company alsolaunched PowerTools for the enterprisemarket, formed an alliance with onlinesearch engine Google, and joined handswith Maybank to introduce Malaysia’sfirst mobile financial services, theMaybank2u Mobile Service. As at 31December 2007, Celcom’s customerbase stood at 7.2 million.

In its quest for future and sustainablegrowth, TM is focused on continuedregional expansion in markets closer tohome. Today, TM is an emerging leaderin Asian communications withoperations and interests in the regionand globally. Together with its mobileoperations in Malaysia, TM’s regionalmobile customer base stood at 39.8

million as at end of 2007. Apart fromMalaysia, TM has nine key marketswithin Asia: Indonesia, Singapore,Cambodia, Thailand, Bangladesh,Pakistan, India, Sri Lanka and Iran, with businesses focusing mainly on themobile segment. TM’s investmentphilosophy is to play an active role in itsinternational operations (where it hasmanagement control), with the aim ofbuilding value in its investments byhiring and developing local talents,sharing expertise, knowledge and bestpractices, contributing to infrastructuredevelopment in the countries in which ithas investments, as well as providingopportunities for wealth creation amongthe local population. Evidence of thiscan be found in the highly-successfullisting of TM’s pioneer investment in SriLanka, Dialog Telekom Limited (Dialog)on the Colombo Stock Exchange in July2005. With a market capitalisationexceeding US$1 billion. Dialog was thelargest Initial Public Offering in SriLanka’s corporate history. Thesuccessful listing of Dialog provided theopportunity for local ownership of awell-run company and the sharing ofthe Company’s wealth with the SriLankan public. Dialog continues to leadthe mobile industry in Sri Lanka with amarket share of more than 60%.

Complementing its investment foraysabroad, the international arm of TM’swholesale business, TM Global, providesa wide array of voice, internationalbandwidth, IP and data services capacityacross six continents, namely Asia,Europe, the Americas, Oceania, MiddleEast and Africa. In the ASEAN region,TM Global has business tie-ups and

Corporate Profile

C o r p o r a t e F r a m e w o r k

Corporate Profile


On 10 December 2007, TM unveiled thefinal terms of the demerger whichwould ensure the Group continued toderive greater shareholder value fromboth businesses, and ultimately benefitall its stakeholder communities.

As a leading Company, TM remainscommitted to the principles ofCorporate Responsibility through itsvarious stakeholder activities andprojects, significantly contributingtowards the national agenda and thecommunities where it has a presence.In this, TM is driven by a belief thatgood Corporate Responsibility is afundamental tenet of good CorporateGovernance. Besides running asustainable enterprise in line withinternational best practices, TM fulfilsits corporate responsibility towards thecommunity via three major platforms,i.e. education, sports development andcommunity and nation-building. InEducation, TM has invested considerablyin establishing and growing theinternationally-recognised MultimediaUniversity into one of the top privateuniversities in Malaysia with more than20,000 students enrolled in 2007. As part of capacity-building, TMprovides scholarships to deservingstudents. More than 10,000 graduateshave benefited from TM scholarshipssince 1994. On the Sports Developmentfront, TM is involved in the promotionand strengthening of football at alllevels, while under the Community andNation-Building platform, the Groupcontributes towards causes that bringtangible benefits to society and thenation at large.

arrangements with telcos in Singapore,Philippines, Brunei, Indonesia, Thailand,Myanmar, Cambodia, Laos and Vietnam.TM Global has also set up Global IPNodes in Singapore, Hong Kong, Japan,UK, US, Netherlands, Egypt, Bahrainand Indonesia, while Sri Lanka andPakistan Global IP Nodes were inprogress in 2007.

Meanwhile, on 28 September 2007, TM proposed to undertake a demergerexercise to separate its mobile andfixed businesses currently managed asone, into two business entities as follows:

• FixedCo (TM) – This entity wouldretain TM’s domestic interests infixed-line voice, data and broadbandand other non-telecommunicationrelated services under TM Ventures.

• RegionCo (TM International) – Thisentity would include all TM’s mobileand overseas operations under TMInternational, and domestic mobileoperations under Celcom (Malaysia)Berhad. The demerged entity wouldthen seek a separate listing.

This move would create two leadingcommunication companies, each clearlyfocused on its own core business orcore competency. One will be positionedas a champion of regional mobileservices, and the other a leader indomestic fixed services including high-speed broadband.

The Dem

ergerP

roposition


CorporateFramework

On September 28, 2007, TM’s Board of Directorsapproved the proposal for a strategic demergerexercise which was designed to lay thefoundations for the Group’s continued success. A year before, TM had begun to address theperformance issues of its domestic fixed-linebusiness which was facing revenue decline, and itsmobile operations in Malaysia, which suffered fromintense competition. A Performance ImprovementProgramme (PIP) was launched to improveoperational efficiencies at all levels in August 2006.TM executed a number of programmes to bringabout real and positive change – from the top, tothe front-liners, by way of employee-engagementand productivity-enhancement exercises. UnderPIP, TM also undertook a restructuring exercise toconsolidate and strengthen its domestic operationsunder a new Strategic Business Unit calledMalaysia Business whose team would focus onarresting fixed-line revenue decline and maximiseoperational synergies across the organisation.

The PIP initiatives resulted in an enhancedperformance of TM’s core businesses in fixed andmobile operations and demonstrated that asharper focus on each core competency wouldyield desired results. Demerger to furtherrationalise both operations was inevitable as thenext step. The proposition was to demerge TM’soperations into two separate legal entities –FixedCo (TM) and RegionCo (TM International) –each with its own leadership and teams andgrowth strategies independent of one another, withthe ultimate objective being to improve operationalexcellence and deliver better shareholder value.FixedCo would retain the listed TM’s domesticinterests in fixed-line voice, data and broadbandand other non-core services under TM Ventures.RegionCo, on the other hand, would group TM’sregional mobile operations under TM International,and domestic mobile operations under Celcom,and pursue listing status as a separate entity.Both companies would have the freedom to charttheir own growth while standing on their individualmerits with distinct investment-value propositions.

TM’s aspirations were for FixedCo to focus ongrowing the domestic broadband market even as itcontinued to boost performance for fixed voice anddata. In this regard, FixedCo was to collaboratewith the Government of Malaysia to roll out highspeed broadband (HSBB) services. While FixedCowas well positioned as a leader in the domesticmarket, RegionCo would emerge as a regionalmobile champion leveraging on its assets andexpanding and increasing its footprint across Asiaand other emerging markets.

Facts at a Glance

HSBB – The Next Generation

To propel Malaysia into a digitaleconomy

• A RM15.2 billionproject over 10 years in partnershipwith the Government of Malaysia

• To connect 2.2 millionpremises with high-speed Internetaccess

• To help achieve the national

objective of 50% householdbroadband penetration by 2010


Khazanah MI

Pre-Demerger

Khazanah MI Khazanah MI

Post-Demerger

TMB

TMI

TMITMB

TMB

TMI TESB

Fibrecomm

TESB

51%

SSRCPS

51%

All wholly-owned unless otherwise stated

TMI

Celcom

CTX

Fibrecomm

3G3G

TMB

SSRCPS

1

3 4

2

Celcom

3G3GCTX


The Demerger Proposition

DEMERGER TRANSACTION STEPS

1. The first step involves an internal restructuring exercise whichwill group all TM's mobile and overseas businesses under TMInternational;

Demerger Transaction Step 1:Internal Restructuring / Asset TransfersObjective – To group all mobile assets under TMI, and to ensureownership of fixed business under TM

1. Fibercomm1 to be transferred by Celcom (Malaysia) Berhad(“Celcom”) to MB for RM33 million (at book value)

2. Telekom Enterprise Sdn Bhd (“TESB”) to transfer Celcom to TMIfor RM4,677 million (at cost of investment)

3. Sunshare RCPS2 to be transferred to TMI for RM141 million (atbook value)

4. TMB to transfer 3G licence to Celcom for RM40 million (at bookvalue). Consideration is paid by Celcom in cash

5. Settlement of amount owing from TMI to TMB of RM3,041 million

Notes:1. Fibrecomm is 51% owned by Celcom via Celcom Transmission (M) Sdn Bhd

(“CTX”). Principally engaged in provision of fibre optic transmission networkservice.

2. SunShare Investment Ltd, a jointly-controlled entity with primary investmentin MobileOne Ltd. TMB holds redeemable preference shares (‘RCPS’) inSunShare with 51% economic interest, notwithstanding its TMB’s 80% equityinterest therein.

• Distribution> Distribution via special dividend on a one share of TMI for

every one share in TM> This approach has been adopted as it provides the highest

degree of transaction certainly and reduces execution complexity

• Listing> TMI to be listed separately

With the completion of the share distribution, TM International ceasesto be a subsidiary of TM and effectively demerged from TM.

2. The second step sees the separation of the fixed-line and mobilebusinesses into ‘TM International Group’ and ‘TM Group’.

Demerger Transaction Step 2:TMI Share Distribution to TM ShareholdersObjective – To distribute shares in TM International to existingshareholders of TM in the ratio of 1:1, as a result of which, TMI willcease to be a subsidiary of TM


TM INTERNATIONAL: THELEADING MOBILE OPERATORIN SOUTH & SOUTH-EASTASIA BY 2015TM International is on a new growthtrajectory by aiming to expand itsfootprint beyond the existing 10countries where TM has a presenceand where the mobile subscriber baseis about 39.8 million. To strengthen itsposition in high-growth markets inSouth Asia and South-East Asia, TM International will be consideringstrategic collaborations with existingand new partners especially to facilitatea mutual exchange of resources,technology and international bestpractices.

TM International has great aspirationsfor Celcom to make it a player capableof contributing significantly to thegrowth of TM International across theregion. With its track record and strongposition in mobile operations inMalaysia, Celcom will anchor TMInternational and provide continuingtechnological, brand and marketingleadership through access to productand service innovations and offerings.

In conclusion, TM Group is determinedto continue its evolution as one ofMalaysia’s foremost companies, byproviding the impetus to the growth oftwo companies which will build onMalaysia’s telecommunications legacyseparately and independently, as wellas achieve prominence at home andleadership in the region. Demerger is astrategic exercise whose valueproposition is to deliver tangible benefitsto all TM stakeholders far and widewith a new vision and renewed energy.

TM: MALAYSIA’S LEADINGNEXT GENERATIONCOMMUNICATIONS PROVIDERTM, optimising on its strengths of 95%and 96% market share in the fixed-lineand broadband businesses respectively,intends to focus on new businesssegments as its growth engine, namelybroadband, global business andwholesale.

With a commitment to embracecustomer needs through innovation andexecution excellence, TM will capitaliseon consumer demand and growthopportunities through upstreampartnerships and deploying differentiatedservice offerings under High SpeedBroadband in the downstreamconsumer segment. It will also focuson the small-medium enterprise (SME)market, as well as enhanceinternational connectivity within theregion to establish Malaysia as aregional Internet hub and digitalgateway for South-East Asia.

In the long-term, TM will drive HSBBas an important engine for nationalgrowth.

THE METAMORPHOSISThe complex exercise of demerger wassimplified for TM’s key stakeholders byopen and transparent communicationsfrom the onset. Through regulardisclosure and dialogue, TM articulatedthe rationale and benefits, and sharedthe process and way forward post-demerger plans. Demerger involvedtwo key stages of transition. The firststage called for an internal restructuringexercise to group all TM’s mobile andbusinesses under TM International,while the second stage focused onseparation of the fixed-line and mobilebusinesses into ‘TM InternationalGroup’ and ‘TM Group’ respectively.

As at end December 2007, thedemerger process was on track andkey deliverables already in place. The first quarter of 2008 saw regulatoryand compliance activities in progress,including submissions for approval tothe Malaysian Communications andMultimedia Commission, the SecuritiesCommission, Foreign InvestmentCommittee and Bursa Securities. TM obtained its shareholders’ approvalto proceed with the demerger exerciseat an Extraordinary General Meeting(EGM) held on 6 March 2008.

A Demerger Program office headed by Khairussaleh Ramli was set up tomanage the demerger exercise. The demerger is targeted forcompletion at the end of the secondquarter of 2008, when TM Internationalis expected to be listed. With that, theTM Group will effectively move forwardas two different companies, each withtheir own value proposition.

The Demerger Proposition

CELCOM (MALAYSIA) BERHAD

CELCOM CONSUMER PRODUCTSCelcom Postpaid Mobile Services• Postpaid Rate Plans

– Normal Postpaid– Minutes Postpaid– Family Postpaid– 1+3 Plan

• Postpaid Data Services• Postpaid Value Added Services• 3G Postpaid Services

Celcom Prepaid Mobile Services• Rate Plans

– Xpax Prepaid (Max, Mid, Lite)• Promotional/Limited Edition Starter Packs

i.e. Paket Baladewa, Paket Keren Peterpan,Sikat Pack for Filipinos, UOX, Kenangan

MALAYSIA BUSINESS

TM RETAILVoice Products• Home Line• Business Line• Infoblast• One Number Services• Malaysia Direct• iTalk• TM Calling Card

Data Products• VPN• Coins VPN• Global VPN• IPVPN• Metro-E• Managed Services

Solution Added Services• Conferencing Services

Access Services• Business Broadband

i. SOHOii. 1IPiii. 5IP

• 1515• 1525• EZnet 1315• Streamyx• Streamyx Hotspot

Application Services• e-health• e-secure• e-biz• e-hotel• e-Mall• e-supply chain• e-surveillance• Hosting services• Webmail

Value Added Services• Global Roaming• Corporate Roaming• Xfilter E-scan• Online Guard• Powersurf• Virus Shield &

Anti-Spamming• Xfilter Ishield• X-blocker

Content Services• Bluehyppo.com• Netmyne• Hypp.tv

TM WHOLESALETraffic Minutes• Public Switched Terminal

Network (PSTN)• Voice-over Internet Protocol

(VoIP)• Domestic Interconnect• International Interconnect

Access Services• Narrowband (Payphone)• Broadband (DSL, Fixed, Fixed

Wireless)

Bandwidth Services• Domestic (Commercial)

i. Narrowbandii. Broadbandiii. Optical Bandwidth

• Domestic (Regulated)i. In spanii. Full span POIiii. Domestic Network

Transmission Services

• Internationali. International Private

Leased Circuit (IPLC)ii. International Satellite

Servicesiii. International VSAT Servicesiv. Bandwidth Transit Servicesv. Bandwidth Backhaul

Servicesvi. Bandwidth Interconnection

Services

Data Services• Domestic

i. IP Wholesaleii. Wholesale Ethernet

• Internationali. Global IPVPNii. Global Managed Servicesiii. Global IP Transit

Infra Services• Tenancy• Co-Location• Infrastructure Sharing

Customised Services• Recovery Work Order

Terindah bersama Samsons, World Cricket’07 (West Indies) Limited Addition StarterPack

• Data Services• Value Added Services i.e. 8pax, Airtime

Share• Xpax Bonuses (Every Month Bonus, Birthday

Bonus, Reload Bonus, Stay Active Bonus)• 3G Services• Celcom Branded Content (Channel X) i.e.

Music, Movies, Games

INTERNATIONAL ROAMING PRODUCTSFOR POSTPAID & PREPAIDPostpaid• International Direct Dialling (Premium IDD,

IDD 131)• International Roaming (SMS, MMS, 3G Video

Calls, Roam Saver *120*)Prepaid• Premium IDD, IDD 131, SMS, MMS• International Roaming

(SMS, MMS, 3G Video Calls)

CELCOM ENTERPRISE MARKETPRODUCTSBusiness Voice• Power38• Business 1+3• Business Prepaid• Association Package

Business Data• Mobile Broadband (BASIC/ADVANCED/PPU)• BlackBerry® by Vodafone

– BES – BlackBerry® Enterprise Solution(For Companies)

– BIS – BlackBerry® Internet Solution(For Individuals)

• Email & Beyond Hosted Microsoft Exchange

Business Solutions• Telemetry

– Fleet Management– Remote Meter Reading

• Satellite Voice and Data• Mobile Fax• Bulk SMS/EMS• Data Roaming Packages

21

CorporateFramework

MULTINET PAKISTAN (PRIVATE)LIMITED (MULTINET)

PAKISTAN• Broadband Internet services• International bandwidth and data

services• Long distance and international voice

services• Dark fibre• Domestic private leased circuits• Corporate applications

DIALOG TELEKOM PLC (DIALOG)

SRI LANKA• Mobile Voice and Data services• 3G Mobile services• Broadband Voice and Data services• Internet services• Direct to Home (DTH) satellite TV

services• Satellite Phone services• International Voice and Data services• mCommerce services• Tele-infrastructure and carrier grade

connectivity services• Enterprise Solutions

wide coverage

PT EXCELCOMINDO PRATAMATBK (XL)

INDONESIA• Prepaid and postpaid mobile services• Mobile data services

– Corporate Push Email e.g.BlackBerry® and Microsoft PushEmail

– Consumer Push Email brandedXLMobileMail

– Location based services– E voucher Reload– 3G services i.e. Video Streaming,

Video Call, Video Downloads, FullTrack downloads, Mobile TV,Interactive Game

• Domestic and international businesssolutions

• International wholesale carrier services

TM INTERNATIONAL(BANGLADESH) LIMITED (TMIB)

BANGLADESH• Prepaid and postpaid mobile services• Mobile data services

– Infotainment Services– SMS Banking– E reload – Share a fill– Local Language messaging– Downloads: Ringtones, Operator logo,

Screen Saver, Picture Message, MMScontent

– Voice Greetings – Fun Dose– Caller Ring Back Tone

TELEKOM MALAYSIAINTERNATIONAL (CAMBODIA)COMPANY LIMITED (TMIC)

CAMBODIA• Prepaid and postpaid mobile services• Mobile data services

– Infotainment services e.g. sports– Voice SMS, Voicemail– Downloads: Ringtones, Operator logo,

Screen Saver, Picture Message, MMScontent

SPICE COMMUNICATIONSLIMITED (SPICE)

INDIA• Prepaid and postpaid mobile services• Mobile data services

– Music: Caller Ringback tone,Background music, Jukebox, MobileKaraoke

– Entertainment services: Mobile Dating– Emergency call service– Videotones

TM G

roupP

roducts &

Services

MOBILEONE LIMITED (M1)

SINGAPORE• Prepaid and postpaid mobile service• Mobile broadband• Mobile data services including:

– MeTV– mClassified– eBay Mobile– SMS 2.0

MOBILE TELECOMMUNICATIONSCOMPANY OF ESFAHAN (MTCE)

IRAN• Prepaid and postpaid mobile services• SMS services• Selective Value Added Services’ content:

Al Quran, Hafiz poems

Mile

ston

es O

ver

Two

Cen

turie

s


CorporateFramework 1800’s

1874The telephone makes its debut in Perak

1882Perak and Penang are linked by telephone via asubmarine cable

1891The first telephone exchange is commissioned inKuala Lumpur

1894A submarine cable links Labuan with Singaporeand Hong Kong

1900’s1900

The first magneto telephone service is introducedin Kudat, Jesselton (KK) and Sandakan

1908Incorporation of postal and telegraph services

1926Advent of radio communications in the country

1946Establishment of the TelecommunicationsDepartment in Malaya

1962Introduction of Subscriber Trunk Dialling (STD)between Kuala Lumpur and Singapore via thefirst long distance microwave link

1963• Expansion of the microwave network

throughout Malaysia• Launch of television services in Peninsular

Malaysia

1968The Telecommunications Department of Sabahand Sarawak merge with that of PeninsularMalaysia forming the TelecommunicationsDepartment of Malaysia

1970The first international standard satellite earthstation is commissioned in Kuantan, marking theadvent of live telecasts in Malaysia

1975Establishment of the Automatic Telex Exchange

1979Introduction of International Direct Dial (IDD)facilities

1980Malaysia commissions its own submarine cablelinking Kuantan and Kuching

1982Introduction of Telefax and International MaritimeService

1983Introduction of data communications

1984Introduction of packet switch technology, leadingto Malaysia’s own public data network

1985• Commissioning of the ATUR service using 450

analog cellular radio technology, a first in Asia• The Multi Access Radio System, providing

rural customers with easier access totelephone services, is introduced

1987Jabatan Telekom Malaysia (JTM) is corporatised,forming Syarikat Telekom Malaysia Berhad(STMB), the nation’s first privatised entity

1988Introduction of digital INTELSAT Business Service


Our Journey Continues...

1989Introduction of the 800 toll-free service

1990• Introduction of international toll-

free and prepaid cardphone(Kadfon)

• Listing of STMB on the Main Boardof Bursa Securities and introductionof the new company logo

1991• The Company rebranded its name

to Telekom Malaysia• Introduction of Malaysia Direct,

Home Country Direct

1992Introduction of Video Conferencing andCENTREX

1993Introduction of ISDN services

1996Introduction of 1800 MHz digitalTMTOUCH cellular services

1997Introduction of Corporate InformationSuperhighway (COINS), TelekomMalaysia’s state-of-the-art, high-capacity enterprise solution

20002001

• Launch of Bluehyppo.com, TelekomMalaysia’s lifestyle Internet portal,which records more than 290million searches a year

• Introduction of broadband services

• Telekom Malaysia becomes a majorpartner in the launch of the state-of-the-art submarine cable AsiaPacific Cable Network 2 (APCN2)

• Establishment of TM Net as thelargest Internet Service Provider inthe South-East Asian region

• Launch of CDMA service fixedwireless telephony

2002Award of the 3G spectrum to TelekomMalaysia

2003Merger of Celcom and TMTOUCHforming Malaysia’s largest cellularoperator

2004Restructuring of TM TelCo into twoStrategic Business Units (SBUs) – TM Wholesale and TM Retail

2005• Telekom Malaysia undergoes a

major re-branding exercise and TM is adopted as the new brand

• Launch of 3G Services – first inMalaysia

• Acquisition of 27.3% interest in PT Excelcomindo Pratama Tbk ofIndonesia

2006• TM forges strategic partnership with

Vodafone, becoming a VodafonePartner Network with a global reachof an estimated 179 million mobilecustomers worldwide

• TM implements its second phaserestructuring exercise that organisesthe Group’s business into 4 groupings– Malaysia Business, Celcom, TM International and TM Ventures

• XL, TM’s Indonesian subsidiarysecures 3G licence while Dialog,TM’s subsidiary in Sri Lankalaunches South Asia’s first 3Gservice

• Acquisition of the remaining 49% in Telekom Malaysia International(Cambodia) Company Limited,(formerly known as CambodiaSamart Communications Ltd),Cambodia and 49% interest in Spice Communications PrivateLimited, India

• TM initiates consortium to developan undersea cable system, Asia-America Gateway, linking SE Asia and the USA

2007• TM Group undertakes Demerger

exercise resulting in two distinctentities – TM (FixedCo) and TMI(RegionCo)

• TM becomes the first Malaysiancompany to be named ServiceProvider of the Year at 2007 Frost& Sullivan Asia Pacific ICT Awards

• The first commemorative booktitled “Transforming a Legacy”, was launched by YAB Dato’ SeriAbdullah Hj Ahmad Badawi, Prime Minister of Malaysia

• Divestment of TM’s Payphonebusiness to Pernec CorporationBerhad

• TM’s affiliate in India, SpiceCommunications Limitedcommences trading on the BombayStock Exchange and receives theNational and International LongDistance licences


MediaMilestones in 2007



31 January 2007The ‘Let’s Talk’ package which is aimedat boosting the usage of fixed-lineservices among customers was unveiledto the public. The campaign was aninitiative under the TM PerformanceImprovement Programme (TM PIP),which sought to turnaround thedomestic business.

8 February 2007Dialog Telekom PLC (Dialog)’ssubsidiary Asset Media (Pvt) Ltdlaunched Dialog Satellite TV – apremier satellite television service set torevolutionise Direct to Home Televisionin Sri Lanka. Dialog is TM’s subsidiaryin Sri Lanka. Dialog Satellite TVfeatures world-class entertainment andthe widest spectrum of channels with aspecial focus on News, Entertainmentand Knowledge-based Programming.

11 February 2007TM continued to support Le Tour deLangkawi, an international cycling racefor the 12th consecutive year.

23 February 2007TM announced its 2006 financial resultswhich saw TM recording higher ProfitAfter Tax and Minority Interest (PATAMI)of RM2.069 billion. The healthyperformance was attributed mainly tohigher group revenue, better cost andfinancial management and foreignexchange gain. TM also announced theextension of Dato’ Sri Abdul WahidOmar’s tenure as TM Group ChiefExecutive Officer for another 3-yearterm with effect from 1 July 2007.

17 January 2007TM along with Tenaga Nasional Berhad(TNB), Syarikat Bekalan Air SelangorSdn Bhd (SYABAS) and Indah WaterKonsortium Sdn Bhd (IWK) cametogether for a 3-month public awarenesscampaign to address cable theft.

25 January 2007TM entered into a partnership withVodafone Alliance where each partyagreed to jointly explore and identifyopportunities to enhance the businessesof their respective group companiesthrough collaboration in the area ofinternational mobile telecommunicationsproducts and services. Subsequently,Vodafone entered into a separateCooperation and Branding Agreementwith respective TM subsidiariesincluding Celcom, Dialog and XL.

17January

23 February

11February

31January


2007 Corporate Events

2007C

orporate E

vents


CorporateFramework

15 March

20 March

15 March 2007TM signed a Memorandum of Understanding(MoU) with US-based phone firm Verizon Businessto explore the development of a Malaysian-basedInternet Protocol (IP) hub.

17 March 2007Multimedia University (MMU), the first privateuniversity in the country, celebrated its 10thanniversary with a host of activities throughout theyear highlighting its many achievements.

20 March 2007Pizza Hut customers are able to enjoy both theirmeal and wireless broadband at the same timethrough tmnet hotspot services at more than 100Pizza Hut restaurants located throughoutPeninsular Malaysia, which collectively form thelargest hotspot network in the country.

20 March 2007TM signed a tripartite MoU with the Ministry ofEntrepreneur and Cooperative Development (MECD)and three financial institutions, namely Maybank,CIMB and SME Bank to further enhance theimplementation of TM’s EntrepreneurshipDevelopment Programme (EDP).

30 March 2007TM Net signed a partnership with Koreancompany, Netpia.Com Inc to supply an applicationfor Internationalised Domain Name or NativeLanguage Internet Address (NLIA). The agreementmarked the next step in the continued evolution ofTM Net’s vast array of services.

30 March 2007TM showed its support for the North Poleexpedition by contributing communication facilitiesamounting to RM100,000 which included CelcomXpax prepaid cards, satellite airtime, handphonesand a special laptop called ‘toughbook’.

30March


10 April

5 April 2007TM completed the sale of its entire 60%shareholding in Telekom NetworksMalawi Limited to MTL Mobile Limitedfor a total cash consideration of US$16million (RM55.0 million). The sale waspart of a broader re-orientation of theCompany’s international investmentstrategy to focus on geographic regionscloser to home.

10 April 2007Celcom signed a domestic roamingagreement with UMobile Sdn Bhd(formerly known as MiTV Networks SdnBhd), allowing UMobile customers toroam on Celcom’s superior 2G network.

16 April 2007TM signed an agreement with UniversitiTeknologi Petronas (UTP) for theestablishment of a “wireless campus”thereby making it the most extensivelycovered University for wirelessbroadband access.

19 April 2007In Sri Lanka, Dialog executed a rightsissue to raise SLR15.54 billion (RM482.1million) to fund the company’s aggressiveexpansion plans. The rights issue wasaccompanied by a Rated CumulativeRedeemable Preference Shares (RCRPS)issue aimed at raising up to SLR5.0billion (RM155.5 million). The proceedsof the rights issue and issue of RCRPStotalling approximately SLR20.5 billion(RM637.6 million) was for the partialfinancing of Dialog’s capital expenditureover the next three years.

21 April 2007TM adopted two primary schools inBukit Mertajam, Penang; SekolahKebangsaan Bukit Indera Muda andSekolah Kebangsaan Seri Penanti underthe PINTAR programme, giving studentsfrom the schools an opportunity toenhance their IT skills and improvetheir academic achievements. PINTAR isa programme initiated by the Ministry ofFinance and driven by KhazanahNasional together with major GLCs.

21April




27 April 2007TM led a 17-member consortium ofinternational telcos to build the firsthigh bandwidth optical fibre submarinecable system, known as the Asia-America Gateway (AAG), which will linkthe South East Asia region directly tothe United States of America.

8 May 2007For the first time, Menara TM, TM’sheadquarters hosted some 500shareholders at the Company’s 22ndAnnual General Meeting (AGM). At theAGM, shareholders voted in favour of theseven resolutions presented. TM alsoheld an Extraordinary General Meeting(EGM), where another six resolutionswere presented and approved.

11 May 2007A major achievement for Spice TMInternational’s Indian affiliate, came withthe acquisition of a licence from theDepartment of Telecommunication to

operate National and International LongDistance (NLD/ILD) services in India.This development allowed the companyto carry both voice and data trafficnationally and internationally.

14 May 2007Deputy Prime Minister, Dato’ Sri MohdNajib Tun Abdul Razak launched TM’sCorporate Social Responsibility (CSR)theme, ‘Reaching Out’ during hismaiden visit to TM’s HQ in KualaLumpur. ‘Reaching Out’ gives an identityto the Group’s CSR efforts, making iteasier for the public to relate to theCSR causes championed by the Group.In executing its CSR, TM focuses onthree platforms, namely education,sports development as well ascommunity and nation-building.

11 & 29 May 2007TM signed three collective agreements(CAs) with the National Union ofTelecommunication Employees

Peninsular Malaysia (NUTE), Union ofTelekom Malaysia Employees, Sabah(SUTE) and Union of Telekom MalaysiaBerhad Employees, Sarawak (UTES) for2007-2009. The CAs covered variousaspects, which included salaryadjustments, salary structure and salaryincrement quantum, cost of livingallowance, housing allowance andperformance-based rewards.

17 May 2007Dato’ Sri Dr Lim Keng Yaik, Minister ofEnergy, Water and Communications,launched Metro.e and Streamyx 4.0Mbps, another of TM’s latest offeringsin the Malaysian broadband market.Launched in conjunction with WorldTelecommunications Day, the offeringsboost the speed of broadband Internetfor businesses and consumers. Withthese services, subscribers can add onbandwidth from 1Mbps whenever theydesire through a concept calledbandwidth on demand.

14 May8May

11&29May 17May



27 May 2007TM International entered into a StockPurchase Agreement with AIF(Indonesia) Limited to purchase all ofthe latter’s stake in PT ExcelcomindoPratama Tbk (XL). The acquisition, for acash consideration of US$113 million(RM388.3 million), enabled the Companyto raise its shareholding to 67%,thereby capitalising on one of thefastest growing markets for mobiletelephony services in the region.

31 May 2007TM reached a pivotal milestone when ithit its one-millionth broadbandcustomer. To celebrate the occasion, TM feted its one-millionth customer,Iskandar Syah Ismail, 31, with asurprise breakfast treat with Suki, thewinner of ‘One-in-a-Million’, 8TV’sreality talent show.

24 May 2007TM bagged the Service Provider of theYear award for the second consecutiveyear at the annual Frost & SullivanMalaysia Telecoms Awards. It was atriple honour for TM as it also baggedthe 2007 Data Communications ServiceProvider of the Year and 2007Broadband Service Provider of the Yearawards.

25 May 2007Dato’ Seri Shahrizat Abdul Jalil,Minister of Women, Family andCommunity Development launched theTM Merdeka Millionaire rewardprogramme at Berjaya Times Square.The programme gave customers theopportunity to win RM1 million cash,holiday packages, Nokia 3Ghandphones, a brand new ProtonPerdana and other exciting prizes. Toparticipate, customers have to answer afew questions about themselves andcomplete a slogan on Malaysia’s 50thMerdeka celebration.

22 May 2007Chief Minister of Penang, Tan Sri DrKoh Tsu Koon launched TM’s latest callcentre situated at Level 58, MenaraKOMTAR, Penang. Dato’ Koay Kar Huah,EXCO for Transportation Utility &Infrastructure of Penang (left) and Dato’Sri Abdul Wahid Omar, Group CEO(middle) were also present during thelaunch. The new call centre receivesincoming calls on fault managementand sales & services support fortelephony services for the Northernregion. Operating 24 hours a day, thecentre houses 254 Customer ServiceRepresentatives.

22 May

31May25 May

24 May




28 June 2007Celcom introduced the innovative BlueCube outlet with a vision to attainleadership in leading edgetelecommunications retailing. Blue Cubeis a powerful ‘one-stop’ concept storefor lifestyle mobile devices, 3G servicesand mobile content. It is the firstconcept store which allows consumersto experience, touch and feel the fullrange of mobile lifestyle products andservices from Celcom.

2 July 2007TM Chairman, Tan Sri Dato’ Ir Md RadziMansor was inducted into the MalaysianInstitute of Directors (MID) Academy ofFellows at the MID’s Corporate Leaders’Banquet on 2 July 2007 at the JWMarriot, Kuala Lumpur. Incorporated in1982, the Malaysian Institute ofDirectors (MID) is the country’s onlyprofessional organisation for companydirectors in Malaysia.

5 July 2007Dialog Broadband Networks launchedtheir fixed wireless operations based onCDMA technology. This launch furtherstrengthens Dialog’s position as a totalconnectivity solutions provider.

15 June 2007TM became the first Malaysian companyto receive the coveted Service Providerof the Year award at the 2007 Frost &Sullivan Asia Pacific ICT Awardsceremony held in Singapore. Held forthe fourth consecutive year, the Frost &Sullivan Asia Pacific ICT awards serveto recognise companies in the ICTsector across the Asia Pacific region.

28 June

2 July

15 June



6 July

15July 17July

14 July 2007TM launched another channel known asHypp.TV at its lifestyle portal,BlueHyppo.com. at Suria KLCC duringNTV7’s UrbanLive roadshow. Hypp.TVoffers streaming media content throughits three main channels namely sports,news and local lifestyle andentertainment.

15 July 2007Aktel celebrated its 10th year ofoperations in Bangladesh by showingtheir appreciation to their loyalcustomers in launching “The GoldenCall” campaign. The campaign, a first ofits kind in the country, rewards Aktel’sloyal customers.

6 July 2007A signing ceremony was held for TM’ssuccessful conversion of RM2,925million of its existing Tekad Mercubonds to Syariah-compliant StapledIncome Securities on 28 June 2007.This represents the first Syariah-compliant Stapled Income Securitiesever structured and issued globally.With the conversion, about 95% of TM’sdomestic borrowings and one-third oftotal Group Borrowings are now basedon domestic principles. CitibankMalaysia was the Principal Adviser andSole Lead Arranger, while investorswere the Employee Provident Fund,Kumpulan Amanah Wang Pencen,Malaysian National Insurance andAmanah Raya Berhad.

17 July 2007TM Research & Development Sdn Bhd(TMR&D) revealed an exciting solutionknown as Fibre-to-the-home (FTTH)broadband access during a mediapreview of the trial deployment of FTTHby Dato’ Zamzamzairani Mohd Isa, CEOMalaysia Business and ShahruddinMuslimin, CEO TMR&D. The new FTTHsolution is set to offer high speedbroadband services to Malaysian homesin the Klang Valley and other majorurban centres in Peninsular Malaysia by2008. This end-to-end fibre opticconnection is capable of supporting upto 100Mbps, although TM hasdesignated a speed of 10Mbps for itsinitial rollout.




19 July 2007TM International’s Indian affiliate, SpiceCommunications Limited (Spice) made aspectacular debut on the Bombay StockExchange (BSE), opening at INR55.75(RM4.64) per share, up 20% from itsissue price of INR46 (RM3.83) pershare. The Initial Public Offering (IPO)was oversubscribed by 37.5 times.

25 July 2007Celcom signed an agreement withMerchantrade Asia Sdn Bhd,(Merchantrade) to launch Malaysia’sfirst Mobile Virtual Network Operator(MVNO) by providing a prepaid packageto overseas foreign workers in Malaysia.These include customers from ninecountries, specifically India, Nepal, SriLanka, Pakistan, Bangladesh, Vietnam,Myanmar, Cambodia and Laos.

31 July 2007Celcom Broadband, which offers thefastest wireless Internet access anytimeanywhere from as low as RM8 a day,for Celcom’s business and individualcustomers was launched. The highspeed of up to 3.6Mbps is madepossible by High Speed Data PacketAccess (HSDPA) technology, or betterknown as 3GX. The new package comesin two different plans, Daily Unlimitedand Monthly Unlimited.

1 & 2 August 2007TM organised the TM JournalismWorkshop in Kuching, Sarawak for 20journalists from 11 major media housesin the state. Co-organised by theMalaysian Press Institute (MPI), theworkshop was launched by Hj MohdNarodin Hj Majais, Assistant Minister inthe Chief Minister’s Department(Bumiputera EntrepreneursDevelopment) and Assistant Minister,Land Development of Sarawak.

11 August 2007TM unveiled iTalk Buddy, the latestfeature of its iTalk prepaid calling cardat The Curve, Petaling Jaya. iTalk Buddyallows its users to build and join anonline and offline community of buddies,families and friends. Users within thiscommunity will be able to sendmessages, make PC-to-PC calls, sharefiles and folders, share screens andInternet connections, produce and shareblogs, upload and share photos andmuch more. It is also the first InstantMessenger (IM) service introduced whichallows common online services tooperate even when there are no Internetconnections available.

15 August 2007TM flagged off its 50th MerdekaAnniversary celebrations on 15 August,2007 with a wide range of activitiesrevolving around the theme “ThankingMalaysians – Because It Takes Everyoneto Build a Beautiful Nation”.

19July 25 July

11August31July15 August



1 September 2007Dialog Telekom established one of SriLanka’s most technologically advancedEnterprise Management Centres whichhas enabled top Sri Lankan enterprisesto offer its customers the best serviceexperience from a well-trainedcustomer-centric workforce.

7 September 2007VADS Contact Centre Services (CCS)was honoured with two CorporateAwards and five individual achievementawards by the Customer RelationshipManagement & Contact CentreAssociation (CCAM). The awards weregiven in recognition of its exceptionalcommitment to managing the customerexperience through innovative, provenprocesses and technologies to maximisethe value of customer communicationswithin its sales and service operations.

15 September 2007In Indonesia, XL introduced lower tariffsfor its bebas plan to counter the stiffcompetition from existing GSM and newCDMA players. This resulted insubstantial revenue growth in the thirdand fourth quarters of the financial year.

22-23 August 2007TM International, together with TM, co-sponsored this year ’s ASEAN 100Leadership Forum which was held inHanoi, Vietnam. TM Chairman, Tan SriDato’ Ir Muhammad Radzi Hj Mansorled the delegation of 11 which includedTM Directors Dato’ Dr Abdul RahimDaud, YB Datuk Nur Jazlan Tan SriMohammed and Ir Prabahar NKSingam as well as TM International’sChief Executive Officer Dato’ YusofAnnuar Yaacob.

31 August 2007TM’s CEOs and their peers from theindustry led a 300-participant strongcontingent comprising employees fromTM, Celcom, Maxis, DiGi and PosMalaysia in a march on Merdeka Day.The contingent strode proudly incolourful uniforms inspired by thenational flag, Jalur Gemilang. Theindustry leaders included Dato’ SriAbdul Wahid Omar, Group CEO TM;Dato’ Sri Shazalli Ramly, CEO ofCelcom; Dato’ Zamzamzairani Mohd Isa,CEO of Malaysia Business TM; SandipDas, CEO of Maxis; Roslan Rosli,Regulatory Head of DiGi and Hj MohdDerus Harun, General Manager of PosMalaysia.

15 August 2007Dialog Telekom together with NDBBank, one of the leading private sectorcommercial banks in the country,unveiled eZ Pay, South Asia’s firstmCommerce (Mobile Commerce)initiative. It is a revolutionary servicethat allows consumers to purchasegoods, pay bills, transfer money andperform banking transactions via theirmobile phones.

20 August 2007TM received two accreditations, i.e.Trainee Development and ProfessionalDevelopment, from the Association ofChartered Certified Accountants (ACCA)under the latter’s Approved EmployerProgramme. Tay Kay Luan, ACCADirector for ASEAN & Australasiapresented the certificate to Dato’ SriAbdul Wahid Omar.

21 August 2007TM International’s Cambodianoperations, TMIC, rolled out its newVoIP service.

15 August 31August




30 September 2007TMIB, TM’s operations in Bangladesh,achieved its 7 millionth customer. Tomeet the demands of its growingcustomer base, TMIB expanded itscustomer service network to 19 walk-inCustomer Care Centres by year end.

2 October 2007YB Dato’ Shaziman Abu Mansor, DeputyMinister of Energy, Water &Communications announced that 999would be the only number for allemergency calls made by the public.TM manages the emergency calls bydirecting them to the relevant agenciesnamely Police, Fire Department,Hospital and Civil Defence.

4 October 2007TM and Polis DiRaja Malaysia (PDRM)launched its seventh annual Ops Sikapcampaign which ran from 7 until 21October 2007 and unveiled the first ‘OpsSikap’ Icon during the launch ceremonyheld at Bentong, Pahang. The campaignthemed, ‘Pandu Cermat SampaiSelamat’, promoted safe driving and acourteous attitude amongst road users,especially during the festive season. Thecampaign was also launchedsimultaneously in other states inMalaysia over the following two days.

12 October 2007Celcom launched its new ‘Unbeatable’campaign, which became a hugesuccess. The campaign features CelcomPower Icons, Ryan Giggs, John Terry,Peterpan and Lee Hom.

24 September 28 September

4 October2 October

12October


21 September 2007Celcom distributed RM730.1 million incash to its shareholders by way of acapital repayment exercise.

24 September 2007Dialog Telekom PLC received a US$100million financing package fromInternational Finance Corporation (IFC)– a member of the World Bank Group.The US$100 million package included aUS$70 million term loan facility and aUS$30 million equity commitment viathe acquisition of a 1.6% holding inDialog by IFC.

28 September 2007Chairman, Tan Sri Dato’ Ir Md RadziMansor announced the approval by theBoard of Directors for the demerger ofthe TM Group’s mobile and fixedbusinesses into two distinct entities.


12 November 2007PT Excelcomindo Pratama Tbk (XL)officially launched its new submarinecable system linking Batam inIndonesia and Tanjung Penyusop,Sungai Rengit in south Johor, Malaysia.The system, known as the Batam-Rengit Cable System (BRCS), is XL’sfirst international submarine cablesystem. The launch of this underseacable system automatically gives XL thestatus of the cellular operator with thewidest backbone in Indonesia.

15 November 2007TM International’s Cambodiansubsidiary, Telekom MalaysiaInternational (Cambodia) CompanyLimited (TMIC), unveiled the newidentity of its ‘‘hello’’ brand at a grandceremony in Phnom Penh. Held at the luxurious Raffles Hotel Le Royal,the launching ceremony was officiatedby His Excellency, Minister So Khun,Minister of Posts andTelecommunications and attended by officials from TMIC, corporateguests as well as local andinternational media.

1 November 2007Dialog Broadband Networks (DBN), awholly-owned subsidiary of DialogTelekom PLC, became the first in SriLanka to introduce Broadband Internet,powered by WiMAX technology.

3 November 2007Prime Minister, Dato’ Seri Abdullah Hj Ahmad Badawi, launched TM’scommemorative book titled‘Transforming a Legacy’ during the TM Hari Raya Open House held atMenara TM in Kuala Lumpur.

12 November 2007Dato’ Abdul Aziz Abu Bakar, Senior VicePresident of Group HR was awardedthe prestigious ‘HR Leader Award’under the Individual Professionalcategory by the Malaysian Institute ofHuman Resource. This Award is torecognise individual professionals whohave made an outstanding contributionto Human Resource Management, inthe context of the Malaysian Vision2020. Dato’ Aziz received a trophy and acertificate from Datin Sri RosmahMansor, wife of Deputy Prime Ministerat the Malaysia HR Awards 2007.

3November

12November

12 November

15 November




29 November 2007TM clinched the Gold Award for theOverall Excellence category of theNational Annual Corporate ReportAwards (NACRA). TM also took homethe Industry Excellence Award for theBursa Malaysia Main Board Companiescategory under the Trading & Servicessector for the 11th consecutive timeand the Gold Award for Best DesignedAnnual Report. NACRA is jointlyorganised by MIA, The MalaysianInstitute of Certificate PublicAccountants (MICPA), the MalaysianInstitute of Management (MIM) andBursa Malaysia Berhad.

30 November 2007TM rewarded 241 of its scholars whoachieved excellent results in theirstudies at an event aptly called ‘‘MajlisAnugerah Pelajar Cemerlang 2007’’held at Multimedia University (MMU)Melaka campus on 30 November 2007.The Excellence Awards serve as anencouragement for them to continuewith their outstanding performance anddemonstrate TM’s commitment insupporting excellence in education.

11 December 2007PT Excelcomindo Pratama Tbk (XL)ended the year by welcoming EtisalatInternational Indonesia Limited as oneof its shareholders.

31 December 2007XL, TM’s subsidiary in Indonesia, ended2007 with 15.5 million subscribersmaking up a market share of 15%. Thisrepresented a hefty increase of 62%from a year ago. At the end of 2007,XL’s coverage had reached 90% of theIndonesian population.

31 December 2007The total number of subscribersregistered by Spice, TM’s investment inIndia, had increased to 3.8 million from2.5 million at the start of the year.

31 December 2007M1, a leading mobile communicationsoperator in Singapore, recorded a 14.8%increase in its total customer base, with1.535 million mobile customers as at 31December 2007.

31 December 2007Malaysia Business, a strategic businessunit of TM focused on the fixed sectorin Malaysia, registered significantInternet growth in 2007 to reach a totalsubscriber base of 1.27 million byDecember 2007.

29 November

30 November

31December


TM A

war

ds &

Rec

ogni

tion

2007


CorporateFramework

5 MAY 20078 JANUARY 2007

18-20 MAY 2007 7 MAY 2007

4 JUNE 200718-20 MAY 2007

The Brand Laureate Award Frost & Sullivan Malaysia Telecoms Award

Trusted Brand in Telecommunications Award

Silver Award & Innovative Product Award

Gold Award & Innovative Product Award

Malaysia Brand Equity Award


28 AUGUST 200724 AUGUST 2007

16 NOVEMBER 200710 NOVEMBER 2007

29 NOVEMBER 2007

26 OCTOBER 2007

29 NOVEMBER 2007

13 DECEMBER 200729 NOVEMBER 2007

Anugerah Citra Wangsa Malaysia Award

Six Oskar Award

UNI-APRO Outstanding Employee Partner Award

Malaysia’s Most Valuable Brands Award

Program Time 2 Award

Gold NACRA Award for Overall Excellence

NACRA Award for Industry Excellence NACRA Award for Best Design National Award for Management Accounting


8 JANUARY 2007The year opened with a bang, with TM being conferred The Brand LaureateAward 2006-2007 in the Corporate Brand –Telecommunications Industry category by theAsia Pacific Brands Foundation. Theselection criteria included Brand Strategy,Brand Culture, Brand Communications,Brand Equity and Performance.

17 JANUARY 2007Clearly emerging as the most popularBroadband Internet service provider inMalaysia, TM Net Sdn Bhd once againreceived the title of Best Broadband InternetService Provider of 2006 from PC.Commagazine. Based on a poll conducted by the magazine, the award has been wonby TM Net for five years in a row.

15 FEBRUARY 2007Dialog Telekom PLC of Sri Lanka, a memberof the TM Group, received a CommendationAward from the GSM Association at the GSMGlobal Mobile Awards event in Barcelona,Spain. Dialog was commended for itsDisaster and Emergency Warning Network(DEWN), which enables disaster warninginformation to be communicated securely andinstantaneously to emergency personnel andmobile phone users anywhere in the country.Dialog has so far had three consecutive winsat the prestigious GSM World Awards.

22 MARCH 2007Dialog Telekom PLC won further recognitionby attaining the top spot in the FinanceBrand Index as Sri Lanka’s most valuedbrand. This recognition was noted in theMarch issue of Lanka Monthly Digest.

22 MARCH 2007TM International Bangladesh Ltd (TMIB), aTM regional company, won the StandardChartered-Financial Express CSR Award 2006for its significant contributions to theservices sector.

5 MAY 2007TM took three awards at the annual Frost & Sullivan Malaysia Telecoms Awardspresentation ceremony. TM bagged the 2007Data Communications Service Provider of theYear award whilst TM Net took home the2007 Broadband Service Provider of the Yearaward. For the second time running, TM also received the coveted 2007 ServiceProvider of the Year award. This awardrecognises TM’s consistent performance andsustainable growth in revenue, substantialmarket share as well as overall leadershipin new product introductions andinnovations.

7 MAY 2007TM was voted by consumers as the TrustedBrand in Telecommunications in Reader’sDigest Trusted Brands 2007 survey. TM received the Platinum Award for thisrecognition. Surveyed consumers were askedto name their most trusted brand in each of43 different product categories based on 6key criterias – trustworthiness, credibleimage, quality, value, understanding ofcustomer needs and innovation.

18-20 MAY 2007A total of nine product development awardswere won by TM R&D in recognition of itsResearch and Development efforts. Thesewere given by the International Invention,Innovation, Industrial Design and TechnologyExhibition (I-TEX) 2007 held in KualaLumpur. The award-winning products werethe Platform for All-Service Multi-Access orPLASMA (Gold Award & Innovative ProductAward), XtreamX Home Media Centre (GoldAward), Vertical Cavity Surface EmittingLaser or VCSEL (Gold Award), AdvancedTracking System Using RFID (Silver Award &Innovative Product Award), EDFA In-Line(Silver Award), Simple & Efficient SoftwareRadio Development Platform (Bronze Award)and Distribution Point or DP (InnovativeProduct Award).

4 JUNE 2007 Celcom took 4th place in the MalaysiaBrand Equity Award 2007 for the BrandVisibility Award category. Malaysia BrandEquity Award 2007 is organised byPerception Media Sdn Bhd to recognise theperformance of local and internationalbrands in Malaysia.

15 JUNE 2007TM became the first Malaysian company toreceive the highly-prized Service Provider ofthe Year award at the 2007 Frost & SullivanAsia Pacific ICT Awards ceremony. Thiscoveted award for service providers isconferred each year to the company, inFrost & Sullivan’s judgement, that hasdemonstrated clear leadership in essentialareas, including consistent and sustainablerevenue growth, dominant market share andmarket share growth, as well as overallleadership in product introductions andinnovations.

26 JUNE 2007TM’s 2007 Chinese New Year TVC receivedthe “Silver-Phoenix Award” forCinematography from AdAsia, a leadingadvertising and marketing industrymagazine. The awards sponsored by MediaDevelopment Authority of Singaporerecognise creativity and professional skills inthe production of commercial films, videoand digital images for advertising andpromotional purposes.

6 JULY 2007Dialog Telekom PLC (Dialog) became thefirst South Asian company to receive AsiaPacific-wide recognition for excellence incustomer service and relationshipmanagement practices. It was given theOutstanding Achievement in CustomerRelationship Excellence in CustomerRelationship Excellence Award from the Asia Pacific Customer Service Consortium(APCSC) at the Customer RelationshipExcellence (CRE) Awards Ceremony held inHong Kong.


TM Awards & Recognition 2007


1 AUGUST 2007PT Excelcomindo Pratama Tbk (XL), a TMcompany in Indonesia, was judged the mostadmired knowledge enterprise in Indonesiain 2007 when it received the Most AdmiredKnowledge Enterprise (MAKE) Award, beating63 nominated organisations based on astudy conducted by renowned consultantDunamis Organisation an independent globalresearch company, Teleos.

20 AUGUST 2007TM received two accreditations from theAssociation of Chartered CertifiedAccountants (ACCA) under its ApprovedEmployer Programme. TM received thehighest recognition through the Platinum forTrainee Development whereby ACCArecognises the learning opportunities thatTM provides for its employees who areworking towards obtaining its professionaland Certified Accounting Technicianqualifications in line with global bestpractices.

24 AUGUST 2007Celcom emerged the Grand Prize Winner(Telecommunication category) in theAnugerah Citra Wangsa Malaysia 2006. The award is organised by Dewan Bahasadan Pustaka in collaboration with theMalaysian Communications and MultimediaCommission annually. The award is asignificant milestone and recognisesCelcom’s leadership in the usage of BahasaMalaysia of the highest standard.

28 AUGUST 2007TM was one of five regional companies toreceive the UNI-APRO Outstanding Employee-Partner Award which recognises employerswho have strong and cordial relationshipswith their unions.

29-31 AUGUST 2007Aogos Network Sdn. Bhd., a start-upcompany nurtured by the MultimediaUniversity or MMU, obtained the Red HerringAsia Top 100 Technology Companies Award inHong Kong on 29-31 August 2007.

7 SEPTEMBER 2007VADS Berhad was honoured with twoCorporate Awards for Best OutsoucedService Contract Centre Association ofMalaysia (CCAM) – Gold award for theCelcom Customer Premier Service teamaward, and Bronze award for the TM NetCustomer Interaction Centre Managementteam. Additionally, VADS secured five otherindividual achievements namely, Bronze andGold Awards for Best Contact CentreManager, a Silver Award for Best ContactCentre Team Leader and a Gold as well asBronze Award for Best Contact CentreProfessional Outsourced.

26 OCTOBER 2007In recognition of its effort to widen thecellular network coverage of highways,industrial areas, tourist spots and majortowns in Malaysia, Celcom was awarded theAnugerah Program Time 2: Syarikat PemberiPerkhidmatan Terbaik by the Minister ofEnergy, Water and Communications,Malaysia.

10 NOVEMBER 2007TM received awards for best cinematographyfor its TM Merdeka 2007 TVC and best TVCfor its TM Chinese New Year 2007 ad at theSixth Oskar Awards 2007 organised by theFilm Workers Association of Malaysia withthe support of FINAS.

16 NOVEMBER 2007Celcom secured 5th place in Malaysia’s Most Valuable Brands 2007 competition,initiated and promoted by the 4A’s(Association of Accredited Advertising AgentsMalaysia) as a recognition and valuationexercise, in collaboration with world-renowned Interbrand. Based on a valuationof RM4.07 billion, Celcom was selectedbased on Interbrand’s well-established brandvaluation methodology.

20 NOVEMBER 2007TM was ranked second in the CorporateGovernance Survey Report 2007 jointlyorganised by the Minority ShareholdersWatchdog Group (MSWG) and theNottingham University Business School,Malaysia Campus.

29 NOVEMBER 2007TM achieved recognition once again for itsannual report, clinching the Gold Award forOverall Excellence during the NationalAnnual Corporate Report Awards (NACRA)2007 ceremony held in Kuala Lumpur. TM also took home the Industry ExcellenceAward for Bursa Malaysia Main BoardCompanies under the Trading & Servicessector for the 11th consecutive year, as wellas winning the Gold award for Best DesignedAnnual Report.

12 DECEMBER 2007VADS Berhad was awarded the ICT ServiceProvider of the year award by PIKOM. Thisprestigious award is a strong testament tothe Company’s capabilities and contributiontowards the growth of the ICT Industry inMalaysia.

13 DECEMBER 2007In recognition of its best practices inmanagement accounting, value creation andexcellent business performance, TM beat 9 other finalists to win the coveted NationalAward for Management Accounting (NAfMA)Excellence Award this year. The NAfMAAward is jointly awarded by the MalaysianInstitute of Accountants (MIA) and theChartered Institute of ManagementAccountants (CIMA).

TM Awards & Recognition 2007


BOARD OF DIRECTORS

TAN SRI DATO’ Ir MUHAMMAD RADZIHJ MANSORChairman(Non-Independent Non-Executive Director)

DATO’ SRI ABDUL WAHID OMARGroup Chief Executive Officer(Non-Independent Executive Director)

DATUK ZALEKHA HASSAN(Non-Independent Non-Executive Director)

DATO’ AZMAN MOKHTAR(Non-Independent Non-Executive Director)

DATO’ Ir DR ABDUL RAHIM DAUD(Independent Non-Executive Director)

DATO’ LIM KHENG GUAN(Senior Independent Non-ExecutiveDirector)

YB DATUK NUR JAZLAN TAN SRIMOHAMED(Independent Non-Executive Director)

Ir PRABAHAR NK SINGAM(Independent Non-Executive Director)

ROSLI MAN(Independent Non-Executive Director)

DYG SADIAH ABG BOHAN(Alternate Director to Datuk Zalekha Hassan)(Non-Independent Non-Executive Director)

SECRETARIES

• Wang Cheng Yong (MAICSA 0777702)

• Zaiton Ahmad (MAICSA 7011681)

REGISTERED OFFICE

Level 51, North WingMenara TMJalan Pantai Baharu50672 Kuala LumpurMalaysiaTel No. : 603-2240 1221/1225Fax No. : 603-2283 2415

SHARE REGISTRAR

Tenaga Koperat Sdn Bhd20th Floor, Plaza PermataJalan Kampar, Off Jalan Tun Razak50400 Kuala LumpurMalaysiaTel No. : 603-4047 3883Fax No. : 603-4042 6352

AUDITORS

PricewaterhouseCoopers(Chartered Accountants)Level 10, 1 SentralJalan Travers, Kuala Lumpur Sentral50706 Kuala LumpurMalaysiaTel No. : 603-2173 1188Fax No. : 603-2173 1288

PRINCIPAL BANKERS

• CIMB Bank Berhad

• Malayan Banking Berhad

PRINCIPAL SOLICITORS

• Zul Rafique & Partners

• Hisham Sobri & Kadir

STOCK EXCHANGE LISTING

Main Board of Bursa Malaysia SecuritiesBerhad(Listed since 7 November 1990)

MALAYSIAN TAXES ON DIVIDEND

Malaysia practices an imputation system inthe distribution of dividends whereby theincome tax paid by a company is imputedto dividends distributed to shareholders.

The Budget 2008 announced that a singletier company tax system to be introducedwith effect from year of assessment 2008.The transitional provisions for the FinanceAct, 2007 allow the imputation system tocontinue up to 31 December 2013 and theCompany shall be entitled to deduct tax atthe rate applicable to the company at thedate the dividend is paid. As gazetted inthe Finance Act, 2007, the corporate taxrate applicable to TM in 2008 is 26%.Consequently, Malaysian income tax at26% will be deducted from the proposedfinal gross dividend of 22 sen per sharefor financial year ended 31 December2007, subject to shareholders’ approval atthe forthcoming 23rd AGM.

The income tax deducted or deemed tohave been deducted from dividend isaccounted for by the income tax of thecompany. There is no further tax orwithholding tax on the payment ofdividends to all shareholders.


Corporate Information

Corporate

Information


CorporateFramework

The Annual Report is available to the public who are not shareholders of the Company, by writing to:

General ManagerGroup Corporate Communications DivisionTelekom Malaysia BerhadLevel 8, South Wing, Menara TM, Jalan Pantai Baharu50672 Kuala Lumpur, MalaysiaTel: 603-2240 2676/2657 Fax: 603-7955 2510

Gro

upC

orp

orat

e S

truc

ture


CorporateFramework

AS AT 20 FEBRUARY 2008Depicting active subsidiaries, jointlycontrolled entities, associates andStrategic Business Units (SBUs)categorised under major businesssegments

Malaysia Business*1

● TM RETAIL*1

● TM WHOLESALE*1

● 100% TM NET SDN BHD● 100% TELEKOM SALES & SERVICES SDN BHD● 100% GITN SDN BERHAD● 100% TELEKOM RESEARCH & DEVELOPMENT SDN BHD● 100% TELEKOM MALAYSIA (USA) INC● 100% TELEKOM MALAYSIA (UK) LIMITED● 100% TELEKOM MALAYSIA (HONG KONG) LIMITED● 100% TELEKOM MALAYSIA (S) PTE LTD● 100% MOBIKOM SDN BHD● 100% TELEKOM APPLIED BUSINESS SDN BHD

TM International Berhad● 100% TM INTERNATIONAL (L) LIMITED

● 84.81% DIALOG TELEKOM PLC (Formerly known as Dialog Telekom Limited)● 100% DIALOG BROADBAND NETWORKS (PRIVATE) LIMITED● 100% DIALOG TELEVISION (PRIVATE) LIMITED

(Formerly known as Asset Media (Private) Limited)● 100% COMMUNIQ BROADBAND NETWORK (PRIVATE) LIMITED● 100% CBN SAT (PRIVATE) LIMITED

● 70% TM INTERNATIONAL (BANGLADESH) LIMITED● 100% INDOCEL HOLDING SDN BHD

● 66.99% PT EXCELCOMINDO PRATAMA TBK● 89% MULTINET PAKISTAN (PRIVATE) LIMITED● 49% MOBILE TELECOMMUNICATIONS COMPANY OF ESFAHAN

● 100% TELEKOM MALAYSIA INTERNATIONAL (CAMBODIA) COMPANY LIMITED● 18.97% SAMART CORPORATION PUBLIC COMPANY LIMITED● 24.42% SAMART I-MOBILE PUBLIC COMPANY LIMITED*2

● 80% SUNSHARE INVESTMENTS LTD*3

● 29.69% MOBILEONE LTD● 100% TMI MAURITIUS LTD

● 100% TMI INDIA LTD● 39.20% SPICE COMMUNICATIONS LIMITED


TM Ventures*1

● 64.77% VADS BERHAD● 100% VADS E-SERVICES SDN BHD

● 100% VADS CONTACT CENTRE SERVICES SDN BHD● 100% VADS PROFESSIONAL SERVICES SDN BHD● 100% VADS SOLUTIONS SDN BHD● 100% MEGANET COMMUNICATIONS SDN BHD

● 51% FIBRECOMM NETWORK (M) SDN BHD (Held via Celcom Transmission (M) Sdn Bhd)

● 54% FIBERAIL SDN BHD● 100% UNIVERSITI TELEKOM SDN BHD

● 100% UNITELE MULTIMEDIA SDN BHD● 100% MMU CREATIVISTA SDN BHD

● 100% MENARA KUALA LUMPUR SDN BHD● 100% TM INFO-MEDIA SDN BHD● 100% TELEKOM MULTI-MEDIA SDN BHD

● 51% TELEKOM SMART SCHOOL SDN BHD● 30% MUTIARA.COM SDN BHD

● 100% TM FACILITIES SDN BHD● 100% TMF SERVICES SDN BHD● 100% TMF AUTOLEASE SDN BHD● 100% TM LAND SDN BHD

● PROPERTY DEVELOPMENT*1

Celcom (Malaysia) Berhad● 100% TECHNOLOGY RESOURCES INDUSTRIES BERHAD● 100% CELCOM TRANSMISSION (M) SDN BHD● 100% CELCOM TECHNOLOGY (M) SDN BHD● 80% CELCOM TIMUR (SABAH) SDN BHD● 100% CELCOM MOBILE SDN BHD● 100% ALPHA CANGGIH SDN BHD● 100% CT PAGING SDN BHD

● 49% C-MOBILE SDN BHD● 20% SACOFA SDN BHD

Note:*1 SBU within Telekom Malaysia Berhad*2 TM International Berhad’s effective shareholding

in Samart I-Mobile Public Company Limited(SIM) is 35.58% by virtue of SIM being a 57.69%subsidiary of Samart Corporation PublicCompany Limited

*3 Economic benefit of TM Group in SunShareInvestments Ltd is 51% notwithstanding TMGroup’s equity interest of 80%

Gro

upO

rgan

isat

ion

Str

uctu

re


CorporateFramework

CompanySecretary

Group ChiefExecutive Officer

TM

Vice PresidentPerformanceImprovement

Management Office

Group ChiefFinancial Officer

Chief ExecutiveOfficer

Malaysia Business


Celcom (Malaysia)Berhad


TM InternationalSdn Bhd


TM Ventures

SeniorVice President

Group Regulatory,Legal & Compliance

Senior Vice President Group Human

Resource

Group ChiefProcurement

Officer

Group ChiefInformation Officer

Group ChiefInternal Auditor

General ManagerGroup CorporateCommunications

Board AuditCommittee

BOARDOF

DIRECTORS

Operating Companies/SBUs

Enhancing Value ToO

ur Provid

ers Of C

apital


CorporateFramework

TM DIVIDEND PAYOUT

0

1,000

2,000

3,000

4,000

5,000

200720062005200420032002

38.8%34.6%

21.6%

47.6%

112.5%*

54.8%54.1%

2,54

7.7

2,06

8.8

1,75

4.7

2,61

3.5

1,39

0.4

1,05

6.3

1,21

2.9

1,65

4.52,868.0

1,13

5.1

949.

5

1,01

4.148

1.2

228.

4

Profit Attributableto Shareholders

OrdinaryDividends

Payout Net Dividend Yield

SpecialDividends

Dividend Payout In Line with Dividend Policy of 40% to 60% of Profit Attributable to ShareholdersRMMillion

6,000

7,000

8,000

9,000

10,000

Dividend Payout Policy 20%-50%

Dividend Payout Policy 40%-60%

25%

50%

75%

100%

125%

150%

7.4%*

3.4%2.9%2.6%1.8%

0.9%

As TM evolves into the regional communications company of choice, the pursuit of operationalexcellence is not without sound financial management. 2007 has seen the continued commitmenttowards enhancing value for the providers of capital with improved shareholder payout coupled withcapital management initiatives and better economic profit.

IMPROVING PAYOUT TO SHAREHOLDERSIn our efforts to strengthen and establish TM as a leading Communications Company in this region,we have always remained focused in creating value for our shareholders. In 2007, we declared aproposed total dividend payout of RM2.9 billion to our shareholders which consists of:

• a proposed final gross dividend of 22 sen per share less tax at 26.0%.• special gross dividend of 65 sen per share less tax at 26.0%.• interim gross dividend of 26 sen per share less tax at 27.0%.

The total dividend payout of 112.5%, including special dividends was made possible through betterfinancial performance and capital management exercise. Excluding special dividends, the ordinarydividends payout represented 47.6% of profit attributable to shareholders. This is very much in linewith our dividend payout policy of 40% to 60% of profit attributable to shareholders. Net dividendyield incorporating the special dividend, rose to 7.4% based on the year end price of RM11.20.

*Including Special DividendsFY 2005 – Net Profit adjusted for provision of Dete Claim of RM879.5 millionNet Dividend Yield based on closing price at year-end


CAPITAL MANAGEMENTEXERCISEA sale and leaseback of propertyassets was carried out to facilitate theimplementation of TM’s strategy tomonetise its non-core assets with aview to unlock value while focusing onits core business of providingtelecommunications services. The saleand leaseback involved four properties,namely Menara TM, Wisma TM TamanDesa, Cyberjaya Complex and MenaraCelcom which upon completion of thetransaction were transferred from TMto Menara ABS Berhad, a specialpurpose vehicle for a totalconsideration of RM1.0 billion.

Proceeds from this capitalmanagement exercise and the capitalrepayment from Celcom of RM730.1miillion has enabled TM to distributethe cash in the form of specialdividends amounting to RM1.65 billionto reward its shareholders.

BETTER ECONOMIC PROFITIn order to provide a more accuratepicture of underlying economicperformance of the TM Group vis-à-visits financial accounting reports,Economic Profit (EP) is used as ayardstick to measure shareholdervalue. EP measures net profit afterdeducting a charge to account for thecost of capital utilised to generate thisprofit. EP is defined as capital investedmultiplied by the spread betweenReturn on Invested Capital (ROIC) andthe Weighted Average Cost of Capital(WACC). * EP has the benefit ofincorporating profitability, size of capitalbase, return on capital and the cost ofcapital into a single measure. For thefinancial year 2007, TM’s EP ofRM830.1 million has shown a RM85.4million increase from RM744.7 millionrecorded in 2006. This increase isattributed to the higher Net OperatingProfit Less Adjusted Taxes (NOPLAT)from better operational performancewhich was partially offset by theincreased economic charge fromhigher WACC.

* Economic Profit = NOPLAT –(Invested Capital x WACC), whereNOPLAT is Net Operating ProfitLess Adjusted Taxes (Source:Khazanah Nasional Berhad)

ECONOMIC PROFIT

-800

-400

0

400

800

1,200

2007200620052004

830.

1

744.

7

69.1

-444

.0

RM Million


Enhancing Value To Our Providers Of Capital


TM’S SHARE PRICE PERFORMANCE

Dec

31

Nov

30

Oct

31

Sep

27

Au

g 3

0

Jul

31

Jun

29

May

31

Ap

r 30

Mar

30

Feb

28

Jan

31

Jan

3

Source : Bloomberg

9.0

9.5

10.0

10.5

11.0

11.5

12.0

Share Price (RM)

Announcementof Proposed Demergeron 28 September 2007

DEMERGER TO FURTHERUNLOCK VALUEThe demerger of TM into 2 separateentities with distinct businessstrategies and aspirations, enablesvalue creation through acceleratedoperational improvement and growth.

Operating as a separate entity canfurther promote improvements indisclosure and boost transparencylevels. The demerger is expected tocreate value and is sound from acapital markets perspective. The twocompanies will each have a capitalstructure suitable to its business, withfunding capacity for growth andinvestment requirements.

Clearly the market is upbeat andsupportive of this exercise. This hasbeen reflected in the improved shareprice performance post announcementof the demerger.

At the point of demerger, TMshareholders will be awarded a one-for-one dividend in specie, of one TMIshare for each TM share held.Shareholders will be able to jointlyparticipate in the value creation asthese two entities pursue theirrespective goals to be a domesticbroadband champion and leadingregional mobile operator.

TM CREDIT RATINGTM continued to exhibit strongfundamentals and a sound balancesheet. This is evident from the creditrating accorded by both the local andinternational rating agencies. TM’scredit rating is as follows:

• Moody’s Investors Service A2• Standard & Poor’s A-• Fitch A-• Rating Agency of Malaysia AAA

The demerger of TM into two uniqueentities has not changed the strengthof its financial position. Following arating review, the credit rating of TMremains largely unchanged withStandard & Poor’s, Fitch, and RAMreaffirming the above ratings whileMoody’s has placed TM on RatingWatch to align its rating to thesovereign rating of A3. This review willbe continued pending the finalcompletion of the demerger.

TM remains committed at maintainingits strong investment grade ratings andadopt a prudent approach to financialmanagement moving forward.



2003 2004 2005 2006 2007

Market Capitalisation (RM Million) Share Price (RM)

9.558.40

11.60

9.7511.20

32,3

87

27,2

56

39,2

27

33,1

22

38,5

26

DecNovOctSepAugJulJunMayAprMarFebJan

200,

729

98,0

01

191,

721

118,

369

71,5

05

135,

643

69,4

31

86,1

09

125,

768

49,7

09

162,

410

190,

127

Volume ('000) Highest (RM) Lowest (RM)

2003 2004 2005 2006 2007

Market Capitalisation (RM Million) 27,255.6 39,227.4 32,386.9 33,121.9 38,525.9

Share Price (RM) 8.40 11.60 9.55 9.75 11.20

2007Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Volume (’000) 98,001 191,721 118,369 71,505 135,643 69,431 86,109 125,768 49,709 162,410 190,127 200,729

Highest (RM) 10.50 11.10 10.30 10.90 11.20 11.00 10.70 10.30 9.95 11.10 11.20 11.80

Lowest (RM) 9.65 9.75 9.50 10.00 9.60 10.00 9.85 9.20 9.35 9.85 10.10 10.80

SHARE PRICE & VOLUME TRADED2007 Monthly Trading Volume & Highest-Lowest Share Price

MARKET CAPITALISATION/SHARE PRICE



PerformanceReview

FIVE-YEAR GROUP 52FINANCIAL HIGHLIGHTS

SIMPLIFIED GROUP 54BALANCE SHEETS &GROUP SEGMENTAL ANALYSIS

GROUP QUARTERLY 56PERFORMANCE

GROUP FINANCIAL REVIEW 57

BUSINESS & OTHER STATISTICS 64

STATEMENT & DISTRIBUTION 66OF VALUE ADDED

Five

-Yea

r G

roup

Fina

ncia

l H

ighl

ight

s

52

PerformanceReview

’0311

,796

.4

13,2

50.9

13,9

42.4

16,3

99.2

17,8

42.9

’04 ’05 ’06 ’07

Operating RevenueOperating Revenue(RM Million)

’03

1,45

1.6

2,62

5.5

811.

3

2,06

8.8

2,54

7.7

’04 ’05 ’06 ’07

Profit Attributable to Equity Holders of the CompanyProfit Attributable to Equity Holders of the Company(RM Million)

’03

36,0

40.3

37,6

75.2

41,1

84.3

41,8

43.5

44,2

21.3

16,4

37.6

19,1

20.5

18,9

87.4

19,9

11.1

19,8

02.1

’04 ’05 ’06 ’07

Total AssetsTotal Assets(RM Million)

’03

12,0

53.2

11,1

17.5

12,2

15.8

12,0

85.9

11,9

24.4

’04 ’05 ’06 ’07

Total BorrowingsTotal Borrowings(RM Million)

’03 ’04 ’05 ’06 ’07

Total Shareholders’ EquityTotal Shareholders’ Equity(RM Million)

’03

9.4

14.8

4.3

10.6

12.8

’04 ’05 ’06 ’07

Return on Shareholders’ EquityReturn on Shareholders’ Equity(%)

’03

4.2

7.1

2.1

5.5

6.0

’04 ’05 ’06 ’07

Return on Total AssetsReturn on Total Assets(%)

’03

0.7

0.6

0.6

0.6

0.6

’04 ’05 ’06 ’07

Debt Equity RatioDebt Equity Ratio

IN RM MILLION 2003 2004 2005 2006 2007

1. Operating revenue 11,796.4 13,250.9 13,942.4 16,399.2 17,842.92. Profit before taxation 1,759.1 3,161.9 1,520.4 3,133.2 3,142.63. Profit for the year 1,505.4 2,688.5 855.5 2,302.3 2,631.64. Profit attributable to equity holders of

the Company 1,451.6 2,625.5 811.3 2,068.8 2,547.75. Total shareholders’ equity 16,437.6 19,120.5 18,987.4 19,911.1 19,802.16. Total assets 36,040.3 37,675.2 41,184.3 41,843.5 44,221.37. Total borrowings 12,053.2 11,117.5 12,215.8 12,085.9 11,924.4

GROWTH RATES OVER PREVIOUS YEARS1. Operating revenue 20.0% 12.3% 5.2% 17.6% 8.8%2. Profit before taxation 13.4% 79.7% -51.9% 106.1% 0.3%3. Total shareholders’ equity 13.3% 16.3% -0.7% 4.9% -0.5%4. Total assets 24.6% 4.5% 9.3% 1.6% 5.7%5. Total borrowings 49.1% -7.8% 9.9% -1.1% -1.3%

SHARE INFORMATION1. Per share

Earnings (basic) 45.5 sen 78.6 sen 23.9 sen 61.0 sen 74.4 senGross dividend * 20.0 sen 30.0 sen 35.0 sen 46.0 sen 113.0 senNet assets 505.7 sen 565.3 sen 559.9 sen 586.0 sen 575.7 sen

2. Share price informationHigh RM9.20 RM12.10 RM12.00 RM10.40 RM11.80Low RM7.15 RM8.25 RM9.15 RM8.60 RM9.20

FINANCIAL RATIO1. Return on shareholders’ equity 9.4% 14.8% 4.3% 10.6% 12.8%2. Return on total assets 4.2% 7.1% 2.1% 5.5% 6.0%3. Debt equity ratio 0.7 0.6 0.6 0.6 0.64. Dividend cover * 2.2 2.6 0.7 1.3 0.7

* Included special dividend of 65.0 sen per share declared on 10 December 2007 and paid on 31 January 2008.

Sim

plifi

edG

roup

Bal

ance

She

ets

&G

roup

Seg

men

tal A

naly

sis

54

PerformanceReview

20062006

20072007

28.9% Borrowings

5.4% Deferred

tax liabilities

0.6% Current

tax liabilities

2.0% Minority

interests

8.1% Share

capital

0.2% Provision forliabilities

30.0% Other reserves

13.7% Trade andother payables

1.7% Customer deposits

9.4% Share premium

27.0% Borrowings

0.3% Current

tax liabilities

5.2% Deferred

tax liabilities

3.7% Dividend payable

1.9% Minority

interests

7.8% Share

capital

0.2% Provision forliabilities

27.4% Other reserves

15.2% Trade andother payables

1.7% Customer deposits

9.6% Share premium

20062006

20072007

56.6% Property,

plant andequipment

11.2%Cash and

bank balances

16.9% Intangible assets

8.3% Trade and other receivables

0.1% Non-current assets held for sale

3.7% Other assets

1.9% Jointly controlled entities

1.3% Long term receivables

54.2% Property,

plant andequipment

9.4%Cash and

bank balances

16.9% Intangible assets

10.0% Trade andother receivables

2.2% Non-current assetsheld for sale

3.8% Other assets

2.3% Jointlycontrolled entities

1.2% Long termreceivables

Total Assets

Total Liabilities &Shareholders’Equity

Segment Assetsas at 31 December

BY BUSINESS BY GEOGRAPHICAL LOCATION

Segment Operating RevenueFor the year ended 31 December


Segment ResultsFor the year ended 31 December


’06 ’07

43.6

%

40.9

%

’06 ’07

27.0

%

27.8

%’06 ’07

25.3

%

27.7

%

’06

MalaysiaBusiness

Celcom InternationalOperations

TMVentures

’07

4.1%

3.6%

’06 ’07

73.7

%

71.2

%

’06 ’07

14.0

%

16.6

%

’06 ’07

12.3

%

12.2

%

Malaysia Indonesia Others

’06 ’07

35.8

%

39.5

%

’06 ’07

30.2

%

37.2

%

’06 ’07

32.3

%

21.8

%

’06

MalaysiaBusiness


TMVentures

’07

1.7%

1.5%

’06 ’07 ’06 ’07 ’06 ’07

68.0

%

76.5

%

16.1

%

14.4

%

15.9

%

9.1%


’06 ’07

41.6

%

38.2

%

’06 ’07

24.9

%

23.9

%

’06 ’07

28.3

%

33.3

%

’06

MalaysiaBusiness


TMVentures

’07

5.2%

4.6%

’06 ’07

76.2

%

71.9

%

’06 ’07

15.8

%

20.1

%

’06 ’07

8.0%

8.0%


Gro

upQ

uart

erly

Per

form

ance

56

PerformanceReview

# Included effect of cumulative rounding.* Included special dividend of 65.0 sen per share declared on 10 December 2007 and paid on 31 January 2008.

2007

FIRST SECOND THIRD FOURTH YEARIN RM MILLION QUARTER QUARTER QUARTER QUARTER 2007

FINANCIAL PERFORMANCE

Operating revenue 4,181.2 4,318.8 4,608.7 4,734.2 17,842.9

Operating profitbefore finance cost 968.4 998.6 867.0 649.3 3,483.3

Profit before tax 846.7 885.9 692.6 717.4 3,142.6

Profit attributableto equity holdersof the Company 595.7 701.0 658.5 592.5 2,547.7

Earnings per share (sen)# 17.4 20.5 19.2 17.2 74.4

Dividends per share (sen)* — 26.0 — 87.0 113.0

2006

FIRST SECOND THIRD FOURTH YEARIN RM MILLION QUARTER QUARTER QUARTER QUARTER 2006

FINANCIAL PERFORMANCE

Operating revenue 3,787.6 3,976.3 4,227.5 4,407.8 16,399.2

Operating profitbefore finance cost 954.4 723.6 848.6 964.0 3,490.6

Profit before tax 842.0 689.3 730.4 871.5 3,133.2

Profit attributableto equity holdersof the Company 545.6 453.5 478.9 590.8 2,068.8

Earnings per share (sen) 16.1 13.4 14.1 17.4 61.0

Dividends per share (sen) — 16.0 — 30.0 46.0

Group

Financial Review


PerformanceReview

8,57

5.0

869.

9

9,90

1.3

1,06

7.4

Cellular Internet andmultimedia

Non-telecommunication

related service

351.

2

253.

9

6,60

3.1

6,62

0.3

Fixed line'06 '07 '06 '07 '06 '07 '06 '07

Operating Revenue(RM Million)

OPERATING REVENUEFor the year ended 31 December 2007, the Groupregistered 8.8% (RM1,443.7 million) growth inoperating revenue to RM17,842.9 million ascompared to RM16,399.2 million recorded in 2006,largely driven by the cellular, data, Internet andmultimedia segments of the Group’s businesses.

The cellular segment continued to be the numberone revenue contributor to the Group. Current yearrevenue from the cellular segment of RM9,901.3million was 15.5% higher as compared toRM8,575.0 million recorded in the preceding yearand made up 55.5% (2006: 52.3%) of the Group’srevenue.

Revenue from fixed line segments (including voice,data services and other telecommunicationservices) of RM6,620.3 million accounted for 37.1%of the Group’s revenue, decreased from 40.3% inthe preceding year. The reduced contribution wasin tandem with global trend where customers aremigrating from the traditional fixed line services tocellular and broadband services.

Internet and multimedia services registeredencouraging year-on-year revenue growth of 22.7%to RM1,067.4 million and contributed 6.0% to theGroup’s operating revenue as compared to 5.3% in

2006. Non-telecommunication related servicescontributed only 1.4% (RM253.9 million) of theGroup’s operating revenue in 2007 as compared to2.1% (RM351.2 million) in 2006.

CELLULAR SEGMENTRevenue from the cellular segment comprisingrental, call charges, short message services,roaming and interconnect charges terminating atmobile, registered a significant growth of 15.5%(RM1,326.3 million) from RM8,575.0 millionrecorded in 2006 to RM9,901.3 million in 2007largely due to improved performance of Celcom(Malaysia) Berhad (Celcom) and PT ExcelcomindoPratama Tbk (XL).

Celcom registered an encouraging revenue growthafter inter-segment elimination of 12.2% fromRM4,424.0 million in 2006 to RM4,965.1 million in2007 amidst an intensely competitive cellularmarket. This was mainly due to strong growth inthe prepaid market resulting from aggressivemarketing activities and launching of newproducts. The push for mobility solutions alsocontributed to the increase in revenue. Celcomadded 1.1 million new customers in 2007 bringingthe total customers to 7.2 million, a growth of18.0% from 6.1 million as at end of 2006.


OPERATING COSTSFor the year ended 31 December 2007the Group’s operating costs rose by13.2% (RM1,733.0 million) to RM14,820.1million in 2007 as compared toRM13,087.1 million recorded in 2006mainly due to higher marketing relatedexpenses, impairment of property, plantand equipment, allowance fordiminution in value of long terminvestments, one-off penalty chargesand lower foreign exchange gain asexplained below.

DEPRECIATION, IMPAIRMENT ANDAMORTISATIONDepreciation, impairment andamortisation charges which compriseddepreciation, impairment and write offof property, plant and equipment (PPE)as well as amortisation of intangibleassets increased marginally by 3.5%(RM142.0 million) to RM4,143.5 millionas compared to RM4,001.5 millionrecorded in 2006 and accounted for28.0% of total operating costs. Higherimpairment of PPE of RM85.9 millionand higher write off of PPE amountingto RM33.3 million were the maincontributing factors to the higher cost.

During the current year, Celcomrecognised impairment losses on PPEamounting to RM52.4 million due toasset buyback plans in which theseassets have been written down to itsrecoverable amount. The Company, XLand other subsidiaries contributed theremaining balance.

Fixed line services contributedRM6,620.3 million to the Group’srevenue in 2007, a marginal increase of0.3% (RM17.2 million) from RM6,603.1million recorded in 2006. Thisturnaround was mainly attributed tohigher data revenue resulting from thedemand for higher speed services andhigher revenue from RWO resultingfrom new billable projects. Highercontribution from VADS Berhad (VADS)and GITN Sdn Berhad (GITN) alsocontributed to the increase in revenuefrom the fixed-line segment.

INTERNET AND MULTIMEDIA SERVICESInternet and multimedia servicescontinued to record commendablerevenue growth in 2007. Revenueincreased by 22.7% to RM1,067.4 millionas compared to RM869.9 million in 2006in line with the increase to its customerbase from 864,000 at the end of 2006 to1,265,308 at the end of 2007.

NON-TELECOMMUNICATION RELATEDSERVICESNon-telecommunication related servicescomprise services from subsidiarieswith core business in education, printingand publication of directories, propertydevelopment, trading in consumerpremises equipments, etc. Revenuefrom these services reduced by 27.7%(RM97.3 million) as compared to 2006,mainly attributed to lower revenue fromTM Facilities Sdn Bhd as there was nodisposal of land in the current year ascompared to approximately RM43.0million recorded in 2006. Telekom Salesand Services Sdn Bhd also contributedlower revenue from lower sales ofcustomer premises equipment.

XL posted a year-on-year revenuegrowth (after discounts) of 38.3% fromIDR5,777.7 billion (RM2,310.4 million) in2006 to IDR7,989.5 billion (RM3,011.0million) in the current year arising fromincrease in customer base, mainlyattributable to successful execution ofseveral key strategies, especially inpricing and distribution channelmanagement.

Dialog Telekom PLC (formerly known asDialog Telekom Limited) (Dialog)continued to show steady growth inrevenue of 26.6% from SLR25,679.5million (RM907.0 million) to SLR32,518.6million (RM1,011.3 million) despite itschallenging operating environment. TMInternational (Bangladesh) Limited(TMIB) also registered 9.5% revenuegrowth from BDT13,139.6 million(RM704.3 million) in 2006 toBDT14,390.1 million (RM718.7 million) in2007. Non-consolidation of TelekomNetworks Malawi Limited (TNM)following disposal in April 2007 reducedthe net increase. TNM contributedRM98.4 million in 2006 as compared toRM28.7 million in 2007.

FIXED LINE SERVICESFixed line services comprise businesstelephony (which also includes ISDN,interconnect, international inpayment),residential telephony, public payphoneservices, data services and othertelecommunication related services.Other telecommunication relatedservices include primarily recoverablework orders (RWO), maintenance,broadcasting, restoration of submarinecable, managed network services andenhanced value-addedtelecommunication services.

P e r f o r m a n c e R e v i e w

Group Financial Review


DOMESTIC INTERCONNECT ANDINTERNATIONAL OUTPAYMENTThe Group’s domestic interconnect andinternational outpayment increasedmarginally by 3.9% (RM77.2 million)from RM1,962.1 million recorded in2006 to RM2,039.3 million in 2007 andaccounted for 13.8% of the totaloperating costs.

STAFF COSTSThe Group’s staff costs rose by 5.8%(RM115.7 million) from RM1,991.4 millionin 2006 to RM2,107.1 million in 2007 andaccounted for 14.2% of total operatingcosts. Notable increase was noted inCelcom (RM48.2 million), Dialog (RM22.5million), VADS (RM13.5 million), XL(RM14.2 million), TM Payphone Sdn Bhd(TMP) (RM18.0 million), TMIB (RM4.9million) and GITN (RM5.5 million) arisingfrom annual increment, higher provisionfor bonus and increase in headcount tosupport business expansion. The

Company, however, recorded lower costsof RM10.1 million due to reversal ofexcess bonus provision and lower coston the employees’ share option scheme.

MARKETING, ADVERTISING ANDPROMOTIONThe Company, Celcom, XL and Dialogjointly contributed to higher marketing,advertisement and promotion costswhich grew by 19.8% (RM224.2 million)from RM1,133.7 million in 2006 toRM1,357.9 million in 2007 due toaggressive marketing activities topromote new products and services.

SUPPLIES AND INVENTORIESThe Group’s supplies and inventoriescosts grew to RM667.3 million, anincrease of 7.8% (RM48.2 million) overRM619.1 million recorded in 2006 mainlydue to the higher cost of prepaid cards,subscriber equipment and cables.

XL and Dialog registered higher cost ofprepaid cards by RM30.8 million andRM10.1 million respectively in line withtheir increased customer base andhigher revenue. Celcom, however,incurred lower cost of prepaid cards byRM16.0 million following the introductionof the 2 in 1 recharge card.

The Company registered highersubscriber equipment cost arising frominstallation for Streamyx whereas highercable cost was the result of cable theft.

4,00

1.5

4,14

3.5

Depreciation,impairment and

amortisation

'06 '07

1,99

1.4

1,96

2.1 1,

133.

7

731.

8

619.

1

303.

9

2,34

3.6

2,10

7.1

2,03

9.3

1,35

7.9

840.

3

667.

3

377.

1

3,28

7.6

Staff costs Domestic interconnect

and internationaloutpayment

Marketing,advertising

and promotion

Maintenance Supplies andinventories

Allowance for doubtful

debts

Otheroperating

costs

'06 '06 '06 '06 '06 '06 '06'07 '07 '07 '07 '07 '07 '07

Operating Costs(RM Million)



OTHER SIGNIFICANT ONE-OFFCHARGESDuring the year, TMIB has recognisedan administrative fine by the localgovernment of RM72.8 million forrevenue loss.

In addition, XL has recognised penaltycharges on late payment of withholdingtax on off-shore interest payments ofRM22.0 million following theDirectorates General for Taxation’s(DGT’s) rejection of XL’s objection onDGT’s assessment requiring XL to payhigher withholding tax on off-shoreinterest payments. Celcom alsorecognised some penalties on latepayment of taxation liabilities.

OTHER OPERATING INCOMEOther operating income increasedsignificantly from RM178.5 million in2006 to RM460.5 million in 2007 largelydue to gain on dilution and disposal ofsubsidiaries amounting to RM248.0million. During the year, the Groupdisposed its 4.62% equity interest inDialog and its entire 60.0% equityinterest in TNM.

Higher dividend income from unquotedlong term investments and gain ondisposal of non-current asset held forsale also contributed to the increase inother operating income.

FOREIGN EXCHANGE DIFFERENCESIn line with the appreciation of RinggitMalaysia against US Dollar, theCompany recorded significant gain onforeign exchange of RM197.6 million in2007, largely arising from therevaluation of borrowings in US Dollar.However, this gain was RM63.1 millionlesser as compared to the foreignexchange gain recorded in thepreceding year.

In addition, XL suffered substantiallosses on foreign exchange amountingto RM124.4 million as compared to asignificant gain of RM138.0 million in2006 primarily due to the revaluation ofborrowings in US Dollar as well aspayables in foreign currencies.

As a result, a net gain on foreignexchange of RM38.6 million wasrecorded in the current year ascompared to a net gain of RM361.0million recorded in the preceding year.

ALLOWANCE FOR DOUBTFUL DEBTSFor the current year, the Group’sdoubtful debts expense increased by24.1% from RM303.9 million recorded in2006 to RM377.1 million in 2007. TheCompany mainly contributed to thehigher expense due to a one-offallowance for wholesale global debts.Celcom, XL and Dialog registered lowerallowance for bad debts by RM8.5million, RM5.0 million and RM3.1million respectively which mitigated thenet impact of the one-off allowance tothe Group’s bottom-line.

ALLOWANCE FOR DIMINUTION INVALUE OF LONG TERM INVESTMENTSFollowing the review of impairment inthe value of long term investments, anallowance for diminution in valueamounting to RM80.0 million was madein the current year.

Profit for the Year(RM Million)

1,50

5.4

2,68

8.5

855.

5

2,30

2.3

2,63

1.659

0.2

561.

8

408.

4

534.

7 998.

9

Group Company Group Company Group Company Group Company Group Company

'03 '04 '05 '06 '07




effective 1 January 2008. The Group’sshare of the gain was RM128.8 million.SunShare Investments Ltd alsocontributed higher profits of RM42.2million as compared to RM38.0 millionin 2006.

The Group also recognised a gain ondilution of equity interest in Spice ofRM71.3 million in the current yeararising from its initial public offering.

Contributions from associates in thecurrent year of RM29.5 million was48.2% higher than RM19.9 millionrecorded in 2006 and was largelyattributed to improved performance ofCelcom’s associates.

TAXATION EXPENSESThe Group’s effective tax rate in 2007was 16.3% as compared to 26.5% in2006 mainly due to one-off capital gainthat was not subjected to tax and thereversal of excess prior years’provisions for current and deferred taxmainly at the Company level.

Excluding the reversal of excessprovisions in prior years, the currentyear effective tax rate would be 23.4%which was still lower than the statutorytax rate mainly due to one-off capitalgain that was not subjected to tax.Reduction in deferred tax arising fromthe change in tax rate from 26.0% to25.0% also contributed to the lowereffective tax rate in the current year.

PROFITABILITYConsequent from improved performanceof Celcom, one-off capital gain andhigher contribution from jointly controlledentities, the Group recorded a 23.1%increase in profit after tax and minorityinterests from RM2,068.8 million in 2006to RM2,547.7 million in 2007.

TOTAL ASSETSTotal assets of the Group grewmarginally by 5.7% to RM44,221.3million as compared to RM41,843.5million in 2006 largely due to theincrease in property, plant andequipment, intangible assets,investments in jointly controlled entities,trade and other receivables, non-currentassets held for sale net of decrease incash and bank balances.

INTANGIBLE ASSETSDuring the year, the Group acquired anadditional 7.38% equity interest in XL.The goodwill on acquisition arising fromthis transaction of RM286.3 million wasincluded in intangible assets.

In addition, goodwill totalling RM180.8million arising from the acquisitions ofequity interest in XL, Telekom MalaysiaInternational (Cambodia) CompanyLimited and Celcom Timur (Sabah) SdnBhd in 2006 which was previouslyrecorded in equity has now beenreclassified as intangible assets.

Consequent from the above, the Group’sintangible assets increased by 5.7%(RM401.8 million) from RM7,059.1 millionin 2006 to RM7,460.9 million in 2007.

NET FINANCE COSTXL and TMIB mainly contributed tohigher finance cost which increased byRM199.0 million in 2007 as compared to2006. XL incurred higher finance cost ofRM170.9 million, mainly arising fromhigher withholding tax on off-shoreinterest payments for the years 2004 to2007. TMIB recorded higher cost byRM35.5 million due to increasedborrowings. The impact of the aboveincrease was mitigated by the lowerfinance cost incurred by Celcom ofRM24.0 million due to repayment of loan.

Finance income in 2007 was 12.9%(RM30.1 million) lower as compared to2006 following lower income at theCompany, Celcom, TMIB and Dialog.

Consequent from the above, the Group’snet finance cost increased by 59.1%from RM387.9 million in 2006 toRM617.0 million in 2007.

CONTRIBUTION FROMJOINTLY CONTROLLEDENTITIES AND ASSOCIATESThe share of results in jointly controlledentities in 2007 of RM175.5 million wassignificantly higher than RM10.6 millionrecorded in 2006, largely due to share ofSpice Communications Limited’s (Spice)gain on sale of telecommunicationtowers. Spice recognised a net gain ofRM328.6 million arising from the sale oftelecommunication towers. The towerswill be leased back from the purchaser



PROPERTY, PLANT AND EQUIPMENT(PPE)The Group’s PPE increased by 1.3%(RM303.0 million) to RM23,983.3 millionin 2007 as compared to RM23,680.3million in the preceding year arisingmainly from increased capitalexpenditure for network expansions atXL, Dialog and TMIB of RM1,464.2million, RM390.2 million and RM164.6million respectively. However, PPE atthe Company level reduced significantlyby RM1,273.4 million mainly due to thenet book value of four buildings underthe sale and leaseback arrangementamounting to RM988.4 million beingreclassified to non-current assets heldfor sale as well as lower capitalexpenditure in 2007.

Celcom and TM Net Sdn Bhd alsorecorded a reduction of RM175.9 millionand RM52.3 million respectively. Theexclusion of PPE of TNM and TMPfollowing the disposal of bothcompanies during the year reduced thenet increase by RM66.7 million andRM36.5 million respectively.

In addition, the strengthening of RinggitMalaysia against the local currency offoreign subsidiaries, i.e. XL, Dialog andTMIB, resulted in foreign exchangelosses on translation of PPE for thecurrent year amounting to RM532.6million. This loss is debited directly toforeign translation reserve.

INVESTMENTS IN JOINTLYCONTROLLED ENTITIES (JCE)Consequent from share of higher profitsof JCE, the Group’s investments injointly controlled entities increased by26.9% from RM807.5 million in 2006 toRM1,024.4 million in 2007.

TRADE AND OTHER RECEIVABLESThe Group’s trade and other receivablesgrew significantly by 27.0% (RM934.5million) from RM3,464.1 million in 2006to RM4,398.6 million in 2007. TheCompany accounted for RM594.5 millionof the increase arising from theincrease in Internet access andinternational receivables and higher taxrecoverable.

CASH AND BANK BALANCESCash and bank balances of the Groupdecreased by 10.9% (RM508.6 million) toRM4,171.8 million mainly due to higherdividend payment to equity holder of thecompany of RM1,402.4 million in 2007as compared to RM1,001.9 million in2006. Consequent from aggressivenetwork expansion undertaken byforeign subsidiaries, the cash outflowfor purchase of PPE also increasedsubstantially by RM604.4 million. This was however offset by zero cashoutflow for investment in JCE ascompared to cash outflow of RM659.4million in 2006.

TOTAL LIABILITIESThe Group’s total liabilities stood atRM23,569.8 million at the end of 2007,increased by 11.7% (RM2,473.9 million)as compared to RM21,095.9 million ayear ago primarily attributed toincreased trade and other payables anddividend payable.

TRADE AND OTHER PAYABLESTrade and other payables of the Groupwhich include deferred revenue,increased substantially by 16.8%(RM961.8 million) between 2006 and2007.

Celcom, XL and TMIB recorded highertrade and other payables by RM226.9million, RM260.9 million and RM86.7million respectively consequent frombusiness and network expansion andjointly contributed to the increase intrade and other payables of RM788.7million at Group level.

The Company and XL jointly contributedto higher deferred revenue whichincreased by RM163.4 million betweenthe years under review. The Companyrecorded higher deferred revenue ofRM62.7 million due to change in basisof revenue recognition in respect ofprepaid cards from the point of sale tothe point of usage. Higher deferredrevenue of XL is in line with increase inprepaid customers.

DIVIDEND PAYABLEIn December 2007, the Company hasdeclared the payment of a special grossdividend of 65.0 sen per share less taxat 26.0% in respect of the current year.Consequently, the dividend payableamounting to RM1,654.5 million wasrecognised as liability in the GroupConsolidated Balance Sheet as at 31 December 2007.




SHAREHOLDERS’ EQUITYThe Group’s shareholders’ equityremained strong at RM19,802.1 million,despite declining marginally fromRM19,911.1 million as at 31 December2006. The slight decrease was primarilydue to higher appropriation fromdividend payments and the specialdividend declared during the yearamounting to RM3,056.9 millioncompared to the increase from profitattributable to equity holders of theCompany of RM2,547.7 million and theincrease in paid-up capital and sharepremium pursuant to employeesexercising their share options under the Company’s employees’ shareoptions scheme.

EARNINGS PER SHARE AND RETURNON SHAREHOLDERS’ EQUITYConsequent from higher profit for theyear attributable to equity holders of theCompany as mentioned above, basicearnings per share (EPS) increased from61.0 sen in 2006 to 74.4 sen in 2007.Accordingly, return on shareholders’equity (ROE) also increased from 10.6%in 2006 to 12.8% in 2007.

DIVIDENDSFor the current year ended 31 December2007, an interim gross dividend of 26.0sen per share less tax at 27.0% waspaid on 4 September 2007 toshareholders whose names appear inthe Register of Members and Record ofDepositors on 20 August 2007. Togetherwith the proposed final gross dividendof 22.0 sen per share less tax at 26.0%subject to the shareholders’ approval atthe forthcoming 23rd Annual GeneralMeeting of the Company, the totalpayout based on the issued and paid-upcapital as at 31 December 2007 wouldbe RM1,212.9 million. This represents47.6% of the net profit for the year whichis in line with the Company’s dividendpolicy of between 40.0% and 60.0% ofthe profit attributable to equity holders.

Including the special gross dividend of65.0 sen less tax at 26.0% amounting to RM1,654.5 million that was declaredon 10 December 2007 and paid on 31 January 2008, the total dividendpayout would amount to approximatelyRM2,867.4 million, representing 112.5%of the profit attributable to equity holders.

45.5

78.6

23.9

61.0

74.4

9.4 14

.8

4.3 10

.6 12.8

EPS(sen)

ROE(%)

EPS(sen)

ROE(%)

EPS(sen)

ROE(%)

EPS(sen)

ROE(%)

EPS(sen)

ROE(%)

'03 '04 '05 '06 '07

Shareholders’ Equity(RM Million)



PerformanceReview

Notes:*1: Value Added Services (VAS) are reflected in Application Services for 2006.*2: Based on forecasted value at 0.33% growth from MCMC Q3 2007 figure; 27.4 million population.

Business & Other StatisticsYEAR ENDED 31 DECEMBER 2003 2004 2005 2006 2007

MALAYSIA BUSINESSCustomer Base1. Residential Telephone 3,328,456 3,236,457 2,886,077 2,924,284 2,942,6132. Business Telephone 1,295,185 1,429,675 1,457,112 1,509,542 1,438,2203. Public Payphones 79,613 73,498 70,063 64,567 46,7874. Leased Circuits — 54,733 48,437 46,409 56,7905. ISDN 63,587 58,469 52,876 51,414 53,2846. Other Services (Telex & Maypac) 4,488 3,889 3,826 3,480 1,3657. Toll Free (1-300 & 1-800) 2,195 3,156 3,425 3,857 2,7088. Total access lines 4,623,641 4,416,135 4,343,189 4,433,826 4,380,8339. Total access lines per 100 population 18.1 17.2 16.6 16.6 16.0*2

10. Access Services 1,741,108 2,178,406 2,564,407 3,189,517 3,815,28311. Application Services 9,158 9,685 21,633 284,890*1 219,32912. Content Services 480,290 636,491 796,489 1,023,409 1,262,00713. Broadband 107,200 269,112 491,409 864,358 1,265,308

– Streamyx 100,529 257,099 478,469 736,714 999,722– Streamyx Hotspot 6,671 12,013 11,920 125,783 264,259– Direct — — 1,020 1,861 1,327

Network Capacity (’000)14. Kilometers Cable pair 31,040 31,644 32,110 32,559 32,85815. Fibre kilometers 472 637 722 790 83116. Exchange lines 8,679 8,684 8,684 8,684 8,69317. International gateway exchange 45.7 45.7 45.7 43.1 50.0

Productivity18. Number of employees — 17,846 16,097 15,228 15,62519. Number of access line per employee — 247.5 269.8 291.2 280.4

Quality of Service20. Total Faults report per line – PSTN 0.30 0.28 0.15 0.14 0.2921. Total complaints per 1,000 lines – PSTN 4.2 0.23 — — 3.8622. Leased circuits fault restoration (within 24 hrs) 97.5 93.7 99.7 99.3 99.723. Complaints of bill issued (%) – TM Net 0.09 0.07 0.02 0.02 0.0724. Number of complaints per 1,000 cust. – TM Net 46 28 22 12 4

CELCOM (MALAYSIA) BERHADCustomers1. Postpaid 1,176,860 1,104,419 1,118,138 1,230,517 1,282,2642. Prepaid 3,160,065 4,230,998 5,740,078 4,848,753 5,920,0953. Total Customers 4,336,925 5,335,417 6,858,216 6,079,270 7,202,359


* Including 981 Node B.

YEAR ENDED 31 DECEMBER 2003 2004 2005 2006 2007

CELCOM (MALAYSIA) BERHAD (CONTINUED)Network Capacity1. No. of GSM Stations 5,322 3,749 4,202 5,053 5,8012. No. of 3G Stations — not launched — 806 1,499 2,2803. Network Customer capacity (’000) 5,046 5,289 7,222 8,534 10,2234. Coverage populated area (%) 95 96 97 98 98.50

Productivity1. Number of employees 4,264 4,019 3,461 3,679 3,6922. Revenue per employee (RM’000) 858 1,063 1,306 1,239 1,3973. Customer per employee 1,017 1,328 1,982 1,652 1,951

Quality of Service1. Overall Network Availability (%) — 99.37 99.41 99.42 99.69

TM INTERNATIONAL BERHADNumber of Customers1. PT Excelcomindo Pratama Tbk 2,943,972 3,791,049 6,978,519 9,527,970 15,468,6002. Dialog Telekom PLC 825,284 1,358,641 2,123,801 3,105,649 4,259,5293. TM International (Bangladesh) Limited 401,680 1,103,465 3,051,917 5,762,093 7,183,3824. Telekom Malaysia International

(Cambodia) Company Limited 84,221 103,147 154,504 228,969 311,6505. Spice Communications Limited 3,800,6336. MobileOne Limited 1,068,000 1,162,000 1,246,000 1,337,000 1,535,0007. Mobile Telecommunications Company of Esfahan 15,536 16,211 19,042 20,459 30,568

Network Capacity (number of BTS)1. PT Excelcomindo Pratama Tbk 1,491 2,357 4,324 7,260* 11,1532. Dialog Telekom PLC 588 672 833 1,211 1,0003. TM International (Bangladesh) Limited 369 505 1,548 2,770 3,9054. Telekom Malaysia International

(Cambodia) Company Limited 96 136 170 202 5005. Spice Communications Limited 3,6636. MobileOne Limited (approx.) 1,3007. Mobile Telecommunications Company of Esfahan 20 28 29 56 64

Number of Employees1. PT Excelcomindo Pratama Tbk 1,515 1,543 1,867 2,061 2,1592. Dialog Telekom PLC 926 1,215 1,711 2,290 3,4233. TM International (Bangladesh) Limited 378 652 1,087 1,541 1,6234. Telekom Malaysia International (Cambodia)

Company Limited 387 410 466 470 7105. Multinet Pakistan (Private) Limited 3886. Spice Communications Limited 3517. MobileOne Limited 1,460 1,435 1,382 1,350 1,3428. Mobile Telecommunications Company of Esfahan 28 36 46 47 48

Sta

tem

ent

&D

istri

butio

n O

fVa

lue

Ad

ded


PerformanceReview

IN RM MILLION 2006 2007

VALUE ADDEDRevenue 16,399.2 17,842.9Purchase of goods and services (7,094.2) (8,569.5)

Value added by the Group 9,305.0 9,273.4Other operating income 178.5 460.5Finance income 234.0 203.9Finance cost (621.9) (820.9)Share of results of jointly controlled entities/associates 30.5 205.0Gain on dilution of equity interest in a jointly controlled entity — 71.3

Value added available for distribution 9,126.1 9,393.2

DISTRIBUTIONTo Employees

Employment cost 1,991.4 2,107.1To Government

Taxation 830.9 511.0To Shareholders

Dividends 1,001.9 3,056.9Minority interests 233.5 83.9

Retained for reinvestment and future growthDepreciation, impairment and amortisation 4,001.5 4,143.5Retained profit 1,066.9 (509.2)

Total distributed 9,126.1 9,393.2

Statement Of Value AddedValue added is a measure of wealth created. The following statement shows the Group's value added for2006 and 2007 and its distribution by way of payments to employees, governments and shareholders, withthe balance retained in the Group for reinvestment and future growth.

Distribution Of Value Added(RM Million)

20062006

20072007

21.8% /1,991.4

To Employees– Employment

cost

9.1% /830.9

To Government– Taxation

13.6% /1,235.4

To Shareholders– Dividends and

minority interests55.5% / 5,068.4Retained forreinvestmentand future growth– Depreciation, impairment, amortisation and retained profit 22.4% /

2,107.1To Employees

– Employmentcost

5.4% /511.0

To Government– Taxation

33.5% /3,140.8

To Shareholders– Dividends

and minorityinterests

38.7% / 3,634.3Retained forreinvestmentand future growth– Depreciation, impairment, amortisation and retained profit

PROFILE OF DIRECTORS 70

GROUP SENIOR MANAGEMENT 76

Leadership

A Marvel of NatureThere is nothing quite like the iridescence of a Pauashell. From Greens and Pinks to Purples and Blues,the colours stand out on their own, yet merge fluidlyinto each other like magic. But magic it is not. Eachcolour comprises a single unique layer of protein andcalcium refracting light. Each shell comprisesthousands upon thousands of such layers. Suchseamless perfection of colour and form is what setsthe Paua apart. And yet another reason why wemarvel at it.

A Pure FormWhen it comes to truly standing out, a great deal ofattention is paid to detail but what is also important ishow things are put together. With its wide range ofsophisticated services, extensive portfolio of assets,partnerships, networks and a demography of customersthat spans nations, TM is all about detail. So it takes aspecial kind of vision and resolve to weave them intoan organic entity with a natural incandescence thatcomes from purity of form and synergy of function.Which is why TM stays ahead.


Leadership

TAN SRI DATO’ IR MUHAMMADRADZI HJ MANSOR

Non-IndependentNon-Executive Chairman

66 years of age – Malaysian

Tan Sri Dato’ Ir Muhammad Radzi Hj Mansor was appointed Chairman and Directorof TM on 12 July 1999. He graduated with a Diploma in Electrical Engineering in 1962from Faraday House Engineering College, London and a Masters in Science(Technological Economics) from the University of Stirling, Scotland in 1975. A Chartered Professional Engineer registered with the Board of Engineers, Malaysiaand Engineering Council, United Kingdom, he is a corporate member of the Institutionof Engineers, Malaysia, the Institution of Engineering and Technology, United Kingdomand the Institute of Management, United Kingdom.

He served in various engineering and management capacities in the former JabatanTelekom Malaysia (JTM) over a 22-year period, including a three-year secondment as

Technical Adviser to the Ministry ofEnergy, Telecommunications and Post.Tan Sri Radzi retired as DirectorGeneral of Telecommunications uponcorporatisation of JTM on 1 January1987 and was subsequently appointedas Director of Operations of TM. Heserved as Director of Marketing andCustomer Services from 1989 to 1995and later as Director of RegulatoryManagement and External Affairsbefore retiring in July 1996. From 1997to 1999, he was retained as aConsultant/Advisor on multimediaflagship application projects for theMultimedia Development CorporationSdn Bhd (MDeC).

Apart from his directorship in severalcompanies in the TM Group, Tan SriRadzi is currently Chairman of Celcom

(Malaysia) Berhad, Dialog Telekom Limited, Sri Lanka, Menara Kuala Lumpur SdnBhd and President Commissioner of PT Excelcomindo Pratama Tbk, Indonesia. He isco-chairman of the Malaysian Industry-Government Group for High Technology(MIGHT) and a Director of MDeC.

Tan Sri Radzi served as Chairman of TM’s Board Employees’ Share Option Scheme(ESOS) Committee until expiry of the ESOS on 31 July 2007. He currently serves asChairman of TM’s Board Dispute Resolution Committee. He has attended all the 12 Board of Directors’ Meetings of the Company held during the financial year. He isa Non-Executive Director nominated by the Minister of Finance, Inc., the SpecialShareholder of TM and has never been charged for any offence. He has no familyrelationship with any Director or major shareholder of the Company nor any conflictof interest with the Company.

Pro

file o

fD

irect

ors


Dato’ Sri Abdul Wahid Omar wasappointed Group Chief ExecutiveOfficer (Group CEO) of TM on 1 July2004. An accountant by training,Dato’ Sri Abdul Wahid is a Fellow ofthe Association of CharteredCertified Accountants (ACCA), UnitedKingdom and a member of theMalaysian Institute of Accountants.

He was formerly the ManagingDirector/Chief Executive Officer ofthe then United Engineers (Malaysia)Berhad and UEM World Berhad aswell as the Executive Vice Chairmanof PLUS Expressways Berhad. Priorto his stint at UEM Group, Dato’ SriAbdul Wahid served TM as the ChiefFinancial Officer in 2001. Hepreviously served as a Director ofGroup Corporate Services cum Divisional Director, Capital Market & Securities ofAmanah Capital Partners Berhad, Chairman of Amanah Short Deposits Berhad aswell as a Director of Amanah Merchant Bank Berhad and several other companies inthe financial services sector.

He is also currently a Director of Bursa Malaysia Berhad and member of the FinancialReporting Foundation of Malaysia and the Investment Panel of Lembaga Tabung Haji.

As the Group CEO, Dato’ Sri Abdul Wahid sits on various Board committees includingthe Board Tender Committee, Board Dispute Resolution Committee and the BoardESOS Committee until expiry of the ESOS on 31 July 2007. He is also the DeputyChairman of Celcom (Malaysia) Berhad, a Director of VADS Berhad and several othercompanies in the TM Group. He was appointed an Alternate Director to Tan Sri Dato’Ir Muhammad Radzi Hj Mansor on the Board of the Multimedia DevelopmentCorporation Sdn Bhd on 1 May 2005.

Dato’ Sri Abdul Wahid has attended all the 12 Board of Directors’ Meetings of theCompany held during the financial year. He is an Executive Director nominated by theMinister of Finance, Inc., the Special Shareholder of TM. He has never been chargedfor any offence and has no family relationship with any Director or major shareholderof the Company nor any conflict of interest with the Company.

DATO’ SRI ABDUL WAHID OMARGroup Chief Executive OfficerNon-Independent Executive Director44 years of age – Malaysian

Profile of Directors


Datuk Zalekha Hassan was appointed a Director of TM on 9 January 2008. She graduated with a Bachelor of Arts (Hons) from the University of Malaya.

Datuk Zalekha began her career in the Malaysian civil service in 1977, as anAssistant Director, in the Training and Career Development division of the PublicService Department. She continued to serve the Government in numerousMinistries including the Ministry of Health, Ministry of Social Welfare, Ministry ofNational Unity and Social Development prior to commencement of her career inthe Ministry of Finance (MOF) in 1998 as the Senior Assistant Director of theBudget Division. She has since then continued to serve the MOF in variouscapacities. Datuk Zalekha was attached to the Government ProcurementManagement Division of the MOF for 7 years before taking up her current appointment as the Deputy Secretary General(Operation) in MOF.

Datuk Zalekha is also the Chairman of TM’s Board Tender Committee and a Non-Independent Non-Executive member ofTM’s Board Audit Committee. She is a Non-Executive Director nominated by the Minister of Finance, Inc., the SpecialShareholder of TM and has never been charged for any offence. She has no family relationship with any Director or majorshareholder of the Company nor any conflict of interest with the Company.

Dato’ Azman was appointed a Director of TM on 1 June 2004. He obtained hisMasters of Philosophy in Development Studies from Darwin College, CambridgeUniversity as a British Chevening Scholar. Dato’ Azman is a Fellow of theAssociation of Chartered Certified Accountants (ACCA) and a Chartered FinancialAnalyst (CFA) of the Association of Investment Management and Research(AIMR). He also holds a postgraduate diploma in Islamic Studies from theInternational Islamic University, Malaysia.

Dato’ Azman is the Managing Director of Khazanah Nasional Berhad (Khazanah) since 1 June 2004 and was the Managing Director of BinaFikir Sdn Bhd untilMay 2004. Prior to that, he was the Director, Head of Country Research,Salomon Smith Barney in Malaysia and Director, Head of Research, the Union

Bank of Switzerland in Malaysia. Prior to that, he was with the then National Electricity Board and Tenaga Nasional Berhad.

Dato’ Azman is a Director of UEM Group Berhad, UEM World Berhad and Malaysian Agrifood Corporation Berhad. He is alsothe Chairman of ValueCap Sdn Bhd and South Johor Investment Corporation Berhad. He was appointed Chairman of TMInternational Berhad on 3 March 2008.

He is currently the Chairman of TM’s Board Nomination and Remuneration Committee. He has attended 10 out of 12 Boardof Directors’ Meetings of the Company held during the financial year. Dato’ Azman is a Non-Executive Director nominated bythe Company’s major shareholder, Khazanah, and has never been charged for any offence and has no family relationship withany Director or major shareholder of the Company nor any conflict of interest with the Company.

L e a d e r s h i p


DATUK ZALEKHA HASSANNon-Independent Non-Executive Director54 years of age – Malaysian

DATO’ AZMAN MOKHTARNon-Independent Non-Executive Director47 years of age – Malaysian

Dato’ Lim Kheng Guan was appointed to the Board of TM on 23 June 2000. He is a Chartered Accountant by profession and an Associate Member of theMalaysian Institute of Accountants, Associate of the Malaysian Institute ofCertified Public Accountants, Fellow of Australian Society of Certified PracticingAccountants, Associate of the Australian Institute of Bankers and a Member ofthe Malaysian Institute of Management. He has also attended AdvancedManagement Programs at Manchester Business School, INSEAD and LondonBusiness School.

He has more than 40 years of experience in accounting, management consultingand senior managerial positions in local and multinational public listedcompanies. Currently, he is the Executive Director of Malaysian ManagementConsultants Sdn Bhd.

Dato’ Lim Kheng Guan currently serves as an Independent Non-Executive Chairman of the Board Audit Committee with effectfrom 16 August 2007 and also an Independent Non-Executive Member of the Nomination and Remuneration Committee andBoard Dispute Resolution Committee. He is also a Board Member of a number of subsidiaries and associate companies ofTM. He has attended 11 out of 12 Board of Directors’ Meetings of the Company held during the financial year. He has neverbeen charged for any offence and has no family relationship with any Director or major shareholder of the Company nor anyconflict of interest with the Company.


Dato’ Ir Dr Abdul Rahim Daud was appointed to the Board of TM on 7 July 1998. His academic and professional qualifications are: B.Eng (Hons) Electronic,Liverpool; M.Sc(Eng) Communication, Birmingham; PhD (Eng), University of Bath,United Kingdom; MBA(Ohio), USA; P.ENG - Member of Professional EngineerMalaysia; FIEM - Fellow of Institution of Engineers Malaysia.

He joined Jabatan Telekom Malaysia in 1973. He has been in various seniorpositions in TM and in 1996, he was appointed as Chief Operating Officer ofTelco. In July 1998, he was appointed as Executive Director of TM Group andremained as the Chief Operating Officer of TelCo until 1 February 2001 when heassumed the position of Executive Director, Corporate Strategy and Development.He was then appointed as the Group Deputy Chief Executive/Executive Director ofTM from 29 May 2001 until his retirement on 30 June 2004. He remained on the

Board of TM and currently as an Independent Non-Executive Director of TM.

He was the first Malaysian to be elected as Chairman of Commonwealth Telecommunications Organisation (CTO) in Londonfor 3 terms from September 1999 to November 2002. He also joined the Board of Governor of Intelsat (International SatelliteConsortium in Washington DC) for 2 years until its privatisation in 2002. He has completed the Advanced ManagementProgram (AMP) from the Harvard Business School and Senior Executive Development Program from the Wharton School ofBusiness, Pennsylvania, USA. He is an Adjunct Professor of Universiti Kebangsaan Malaysia.

Dato’ Ir Dr Abdul Rahim served as a member of the Board Tender Committee and also as Chairman/Board Member of anumber of subsidiaries of TM. He has attended all the twelve (12) Board of Directors’ Meetings of the Company held duringthe financial year. He has never been charged for any offence and has no family relationship with any Director or majorshareholder of the Company nor any conflict of interest with the Company.


DATO’ Ir DR ABDUL RAHIM DAUDIndependent Non-Executive Director59 years of age – Malaysian

DATO’ LIM KHENG GUANSenior Independent Non-Executive Director65 years of age – Malaysian


Ir Prabahar was appointed Director of TM on 23 June 2000. He is an engineerby profession and obtained his Bachelor of Science (Civil Engineering) degreefrom Portsmouth Polytechnic, United Kingdom in 1985. A member of the Boardof Engineers Malaysia and the Institute of Engineers Malaysia, he is aprofessional engineer who has wide experience in the engineering sector,especially in the areas of consultancy, contracting, project management andproject financing.

Ir Prabahar currently serves as an Independent Non-Executive Member of theBoard Nomination and Remuneration Committee and Board Audit Committee ofTM. He was a Member of TM’s Board Tender Committee until 16 August 2007. Heis also a Board Member of a number of subsidiaries and associate companies of TM. He has attended all the 12 Board ofDirectors’ Meetings of the Company held during the financial year. He has never been charged for any offence and has nofamily relationship with any Director or major shareholder of the Company nor any conflict of interest with the Company.

YB Datuk Nur Jazlan was appointed to the Board of TM on 1 June 2004. He is aFellow of the Association of Chartered Certified Accountants (FCCA), UnitedKingdom. He was a Council Member and Chairman of Public RelationsCommittee of Malaysian Institute of Accountants as well as a Council Member ofthe Asean Federation of Accountants.

In addition to his corporate experience in the financial arena, YB Datuk NurJazlan is also active in politics. He is the Head of UMNO Pulai, Johor and alsoChairman of Barisan Nasional for the division. He was an Exco Member of UMNOYouth from 1996 until 2004. He was re-elected in the recent General Election, asMember of Parliament for the Pulai Parliamentary Constituency, Johor.

YB Datuk Nur Jazlan is also a Director of United Malayan Land Bhd, Prinsiptek Corporation Berhad, Jaycorp Berhad andPenang Port Sdn Bhd, TSH Resources Berhad and Ekowood International Berhad.

YB Datuk Nur Jazlan served as an Independent Non-Executive Chairman of TM’s Board Audit Committee until 29 May 2007.He is currently a Member of TM’s Board Tender Committee, a Member of Board of Commissioners of PT ExcelcomindoPratama Tbk, Indonesia and Chairman of Multinet Pakistan (Private) Limited, subsidiaries of TM. He has attended 10 out of12 Board of Directors’ Meetings of the Company held during the financial year. He has never been charged for any offenceand has no family relationship with any Director or major shareholder of the Company nor any conflict of interest with theCompany.

L e a d e r s h i p


YB DATUK NUR JAZLAN TAN SRI MOHAMEDIndependent Non-Executive Director42 years of age – Malaysian

IR PRABAHAR NK SINGAMIndependent Non-Executive Director46 years of age – Malaysia

Rosli Man was appointed to the Board of TM on 15 July 2000. He holds aBachelor of Science degree in Electrical and Electronic Engineering (ElectricalDesign and Instrumentation) from the University of Glasgow, United Kingdom anda Diploma in Electrical and Electronic Engineering (Communications) fromTechnical College, Kuala Lumpur.

Rosli has more than 26 years of experience in the telecommunications industry. He joined JTM in 1976 as Assistant Controller where he gained wide exposure intelecommunication services including the task to implement the country’s firstmobile telecommunication service, i.e. ATUR 450. He then moved to the privatesector by joining the Fleet group as its Group Manager, Technical Services in1985. From 1988 to 1996, he was instrumental in setting up the first privatelyowned telecommunications company in Malaysia, the then Celcom (Malaysia) Sdn Bhd (Celcom), catering to the cellulartelecommunication business. He left Celcom as its President in 1996 to join Prismanet Sdn Bhd as Managing Director andheld the position until November 1998. In July 2000, he joined Natrindo Telpon Sellular (NTS), the GSM 1800 cellular operatorin East Java, Indonesia as Chief Operating Officer. He left NTS in January 2002.

Rosli currently serves as an Independent Non-Executive Member of the Board Audit Committee of TM. He was a Member ofthe Board Tender Committee until 16 August 2007. He is also a Member of the Board of Commissioners of PT ExcelcomindoPratama Tbk, Indonesia, a subsidiary of TM. He has attended all the 12 Board of Directors’ Meetings of the Company heldduring the financial year. He has never been charged for any offence and has no family relationship with any Director ormajor shareholder of the Company nor any conflict of interest with the Company.



ROSLI MANIndependent Non-Executive Director54 years of age – Malaysian

Dyg Sadiah Abg Bohan was appointed Alternate Director to Datuk ZalekhaHassan on 9 January 2008 after she ceased to be Alternate Director to Dato’ Ahmad Hashim on 7 January 2008. She graduated from the University ofMalaya with a Bachelor of Science (Hons) in 1986 and holds a Diploma in PublicAdministration from the National Institute of Public Administration (INTAN) in1989. She obtained her Masters in Business Administration from UniversitiKebangsaan Malaysia in 1998.

Dyg Sadiah began her career in the Malaysian Civil Service in 1989 as anAssistant Secretary in the Ministry of Agriculture. Thereafter, she was assigned to INTAN and subsequently in 1999, was transferred to the Ministry of Finance.She is currently the Deputy Under Secretary of the Investment, MOF (Inc) andPrivatisation Division.

Dyg Sadiah is a Director of Penang Port Holdings Berhad and an alternate Director of Malaysia Airports Holdings Berhad.

She is also the Alternate Member to Datuk Zalekha Hassan on TM’s Board Tender Committee. She has never been chargedfor any offence and has no family relationship with any Director or major shareholder of the Company nor any conflict ofinterest with the Company.

DYG SADIAH ABG BOHANNon-Independent Non-Executive Alternate Director45 years of age – Malaysian

Gro

upS

enio

r M

anag

emen

t


Leadership

Datuk Bazlan, 44, is a Fellow of the Associationof Chartered Certified Accountants, UnitedKingdom and also a Chartered Accountant of theMalaysian Institute of Accountants. He began hiscareer as an auditor with a public accountingfirm in 1986 and subsequently served the SimeDarby Group, holding various positions in itscorporate office, Singapore and Melaka. He laterhad a brief stint in American Express in 1993

before joining Kumpulan FIMA Berhadin 1994, where he was subsequentlyappointed Senior Vice President,Finance/Company Secretary. He joinedCelcom in 2001 and was the ChiefFinancial Officer (CFO) prior to hisappointment as TM Group CFO on 1 May 2005. He sits on the boards oftwo public listed companies andseveral private companies of the TM Group. He is also a member ofthe Issues Committee of the MalaysianAccounting Standards Board.

Dato’ Sri Abdul Wahid, 44, is anaccountant by training. He is a Fellow of

the Association of Chartered CertifiedAccountants (ACCA), United Kingdom and

a member of the Malaysian Institute ofAccountants. He has vast experience in

the financial services sector and was theManaging Director/Chief Executive Officer

of UEM Group, an infrastructuredevelopment conglomerate, prior to his

appointment as Group Chief ExecutiveOfficer of TM on 1 July 2004. He is currently a

Director of Bursa Malaysia Berhad, VADSBerhad and a member of the Financial

Reporting Foundation of Malaysia and theInvestment Panel of Lembaga Tabung Haji.

DATO’ SRI ABDUL WAHID OMARGroup Chief Executive Officer

DATUK BAZLAN OSMANGroup Chief Financial Officer


Dato’ Jamaludin Ibrahim, 49, was appointed as the Group CEO Designate and ExecutiveDirector of TM International Berhad (TMI) with effect from 3 March 2008.

Prior to the appointment in TMI, Dato’ Jamaludin was the Group Chief Executive Officerof Maxis Communications Berhad (Maxis). He joined Maxis in 1997 and was appointedas CEO in 1998. Prior to Maxis, Dato' Jamaludin was the Managing Director and CEO ofDigital Equipment (M) Sdn Bhd from 1993 to 1997. Before that, he spent 12 years inIBM Malaysia. He started his career in 1981 as a lecturer.

Dato' Jamaludin graduated in 1978 from California State University, United States, with a Bachelor of Science in Business Administration and a minor in Mathematics. He obtained his Masters of Business Administration from Portland State University,Oregon, in 1980, specializing in quantitative methods.

In Malaysia, Dato' Jamaludin is Chairman of the Advisory Board of the National ScienceCentre. He also sits on the boards of Universiti Tun Hussein Onn Malaysia and Universiti Tun Abdul Razak Sdn Bhd. He had previously served as board member of the Bridge MobileAlliance, World GSM Association, Malaysia Venture Capital Management Berhad, and HeiTechPadu Berhad.

Dato’ Zamzamzairani, 47, holds aBachelor of Science degree inCommunication Engineering fromPlymouth Polytechnic, United Kingdomand has attended the Kellog School ofManagement’s programme in‘Corporate Finance, Strategies forCreating Shareholder Value’. He has

vast experience in the telecommunicationsindustry and has held senior positions inseveral multinational companies within theindustry, such as Global One and LucentTechnologies (Malaysia), where he led thecompanies as the CEO. He was the SeniorVice President, Group Strategy andTechnology of TM before assuming hiscurrent position as the CEO of MalaysiaBusiness. Dato’ Zamzamzairani also sits onthe boards of several TM Group subsidiaries,including VADS Berhad.

DATO’ ZAMZAMZAIRANI MOHD ISAChief Executive Officer,

Malaysia Business /Group CEO Designate,

Telekom Malaysia Berhad

DATO’ JAMALUDIN BIN IBRAHIMGroup CEO Designate/

Executive DirectorTM International Berhad


DATO’ SRI MOHAMMEDSHAZALLI RAMLYChief Executive Officer,Celcom (Malaysia) Berhad

L e a d e r s h i p

Group Senior Management

Dato’ Yusof Annuar, 42, is a CharteredAccountant by profession. He completed hisChartered Institute of ManagementAccountants professional examination fromthe London School of Accountancy in 1987.He has both investment banking andcorporate management experience. Hisinvestment banking career included stintsat S.G. Warburg & Co (now known as UBSWarburg), ING Barings Securities Singapore

and the Merrill Lynch & Co affiliatein Malaysia. Prior to hisappointment as Chief ExecutiveOfficer of TM International Berhadon 1 June 2005, he was anExecutive Director at OCB Berhadand a Board member of a numberof other public listed companies inMalaysia. Currently, he is also aBoard member of several publiclisted and private companies, locallyand internationally. Post demerger,Dato’ Yusof will assume theposition of Group CFO/ExecutiveDirector in the enlarged TMInternational Berhad.

Dato’ Sri MohammedShazalli, 46, holds aBachelor of Science

(Marketing) degree fromIndiana University,

Bloomington, Indiana, and aMasters of Business

Administration from St. LouisUniversity, Missouri, USA. He

was appointed ChiefExecutive Officer and Directorof Celcom (Malaysia) Berhad

on 1 September 2005. Prior tothat, he was the CEO of ntv7,

Malaysia’s 7th terrestrial TVstation, since its inception in

1998. He gained vast experiencein the Fast Moving Consumer

Goods Industry, working for LeverBrothers from 1987 to 1993,

followed by Malaysian TobaccoCompany (MTC) and British

American Tobacco (BAT) from1993 until 1996, both in Malaysia

and the United Kingdom.

DATO’ YUSOF ANNUAR YAACOBChief Executive Officer,

TM International Berhad /Group CFO Designate/

Executive Director, TM International Berhad

Khairussaleh, 40, holds aBusiness Administrationdegree from WashingtonUniversity, St Louis,Missouri, in 1989. He hasmore than 17 yearsexperience, primarily infinancial services. Heserved the Public BankGroup for 7 years and

gained experience in corporatebanking, equity research and futuresbroking, where his last position in theGroup was Executive Director of PBFutures. He spent 8 years at BursaMalaysia Berhad, his last positionthere being the Chief Financial Officerbefore joining TM as the ChiefExecutive Officer, TM Ventures inSeptember 2006.

KHAIRUSSALEH RAMLIChief Executive Officer,

TM Ventures



Dato’ Adnan Rofiee, 53 holds a Bachelors degree inElectronic Engineering from Brighton Polytechnic,

United Kingdom. He has 30 years of experience inthe telecommunications industry where he began his

career with JTM in 1977 as a Planning Engineer,Customer Access Network for the Central Region.

He was later appointed General Manager of theSarawak Operations Area in 1994. He was the

Managing Director of Ghana Telecommunications CoLtd, an associate company of TM, in 2000 and

subsequently appointed the CEO of TM Cellular Sdn Bhd inFebruary 2001. He was the Senior Vice President of Major

Business & Government before assuming his current positionas the Chief Operating Officer of TM Retail since 1 July 2004.

DATO’ ADNAN ROFIEEChief Operating Officer, TM Retail

DENNIS KOH SENG HUATChief Executive Officer,

VADS Berhad

Dennis Koh, 46 holds a Bachelor of Science (Engineering)degree in Computer Science from the Imperial College ofScience & Technology, University of London, United Kingdomin 1984. He began his career in computer networking in 1985with Malaysian Airlines Systems Berhad. In 1990, he movedto Paris to join Societe Internationale de TelecommunicationsAeronautiques (SITA) as a Project Manager. He then joined a

new start-up company, VADS Berhad which was a joint-venturebetween IBM (Malaysia) Sdn Bhd and TM then. Over the next 13 years, he held various senior positions before assuming hiscurrent position as the Chief Executive Officer of VADS Berhad on1 June 2005.


L e a d e r s h i p


ZAID HAMZAHSenior Vice President,

Group Regulatory, Legal & Compliance

Zaid, 48, is a lawyer with a Bachelor of Lawdegree from National University of Singapore.He completed his Masters from FletcherSchool of Law & Diplomacy, Tufts University,USA on a Fulbright Scholarship. He has over22 years of professional work experiencespanning government service, legal practiceand in-house counsel work with an MNC. Hestarted his career with the Singapore Ministryof Foreign Affairs, where he spent almost 10

years as the Senior Assistant Director. Zaidspecialises in strategic value creation and riskmanagement in the technology sector and is theauthor of 5 books on Law, Technology and Strategy.He was a consultant to Microsoft’s Legal &Corporate Affairs, Asia Pacific, based in Singaporebefore joining TM on 2 April 2007 as Senior VicePresident, Group Regulatory, Legal & Compliance.

Dato’ Abdul Aziz, 54, holds a Bachelor of Economics (Hons)degree from the University of Malaya. He began his career in1977 as a Fleet Planning Coordinator with Malaysian AirlinesSystems Berhad. He subsequently joined Shell in 1979 wherehe spent the next 20 years in several management positions

in Internal Audit, Marketing Economics, Sales & Marketing,Supply/Distribution Logistics and Human Resource.

He left for an international assignment in 1991 withthe Shell Group based in London, where he was the

shareholders’ representative, overseeing Shell’sbusiness interests in Hong Kong and China. He laterserved as Executive Vice President, Human Resource

of RHB Bank Berhad, responsible for setting thedirection, formulating and overseeing the

implementation of HR Strategies before joining TMon 18 October 2004 as Senior Vice President, Group

Human Resource.

DATO’ ABDUL AZIZ ABU BAKARSenior Vice President,Group Human Resource


Group Senior ManagementAhmad Azhar, 44, holds aBachelor of Science degree inElectrical Engineering fromOklahoma State University. He began his career as anengineer in Agilent Technologies(formerly known as HewlettPackard) in 1987. He then joinedAccenture in 1990 servicingclients in Malaysia, Asia andMiddle East in various industriesnamely communications, hightechnology, oil and gas andpublic sector services. His

experiences include strategic planningand change management, business andoperations support systems, enterpriseresource management, revenue andcustomer relationship management. He became a Partner at Accenture in2000 before joining TM as Group ChiefInformation Officer on 2 August 2004.

AHMAD AZHAR YAHYAGroup Chief

Information Officer

Hashim, 49, holds a Bachelor of Sciencedegree from Queen Elizabeth College,University of London and a Masters in

Business Administration (MBA) inInternational Management from RMIT

University in Melbourne, Australia.Hashim is the former Vice President andcurrent Chartered Fellow of The Institute

of Internal Auditors Malaysia, and amember of the Malaysian Institute of

Management. He has been amember of the Investigation

Tribunal, Advocates and SolicitorsDisciplinary Board, Bar Council

Malaysia since 2004. He is also aChartered Chemist and member of

the Royal Society of Chemistry,United Kingdom. Hashim spent 21

years in Shell Malaysia holdingvarious management positions

spanning marketing, sales,manufacturing, operations, logistics,information technology and internal

audit. He joined TM as the GroupChief Auditor in October 2002.

HASHIM MOHAMMEDGroup Chief Auditor

Gazali, 50, holds a Bachelor ofScience (Finance) degree from

Northern Illinois University,and in 1982 obtained a

Masters in BusinessAdministration (MBA) fromGovernors State University.

He gained vast experience incorporate banking and

corporate finance while servingat a local merchant bank prior

to joining TM in 1990. In TM,he was involved in treasurymanagement, fund raising

activities, mergers andacquisitions, investor relationsand overseeing the EnterpriseRisk Management Programme

for the Group. Prior to hisappointment as Group Chief

Procurement Officer of TM on1 June 2005, he was the Vice

President, Finance, of TM Wholesale.

GAZALI HARUNGroup Chief ProcurementOfficer


L e a d e r s h i p


MOHD NOOR OMARVice President,Group Performance ImprovementManagement Office

Mariam, 44, holds a Bachelor of Business(Business Administration) with Distinctionfrom RMIT University in Melbourne, Australia and a Diploma in Public Relationsfrom the Institute of Public Relations

Malaysia (IPRM). She is a memberof IPRM and is among the firstbatch of PR practitioners to beaccredited by IPRM in 2005. Priorto joining TM in September 2004 asGeneral Manager, Group CorporateCommunications, she served as theHead of Group CorporateCommunications in Amanah CapitalPartners Berhad, and later as theGeneral Manager of GroupCorporate Communications inUnited Engineers (Malaysia)Berhad/UEM World Berhad.

Mohd Noor, 53, holds aMasters of Business

Administration from theUniversity of Wales, United

Kingdom. He is also aChartered Accountant and a

member of the MalaysianInstitute of Accountants. He

was the General Managerof Strategy & Business

Analysis of TM InternationalBerhad (TM International),

before assuming his currentposition as Vice President, Group

Performance ImprovementManagement Office of TM. Mohd

Noor has contributed significantlyto the development of

TM International since 2004,particularly during the

acquisitions in Pakistan,Indonesia, Singapore, India,

Cambodia and Thailand. He started his career with

Petronas where he spent a totalof 18 years and subsequently

joined Kumpulan Guthrie Berhad.Prior to joining TM International,

he was the CEO of an ITconsultancy company in

Singapore for 3 years.

MARIAM BEVI BATCHAGeneral Manager,

Group Corporate Communications

Yong, 53, has been theCompany Secretary of TM since 1998. A qualifiedCompany Secretary bytraining, she is anAssociate member of theInstitute of CharteredSecretaries andAdministrators. She gainedaccounting and secretarial

experience in Postel InvestmentManagement Ltd in the United Kingdomin 1980 and subsequently, upon herreturn to Malaysia in 1984, as anAccountant/Company Secretary in astock/share broking company andCorporate Secretary in a secretarialcompany, affiliated to the then ArthurYoung International. She joined BHLBank Berhad in 1988 and left as theSenior Secretarial Officer in 1991 to join TM’s Company Secretarial Division.

WANG CHENG YONGCompany Secretary



Hasnul Suhaimi, 50, was appointed PresidentDirector of PT Excelcomindo Pratama Tbk (XL) in September 2006. Formerly

the President Director of Indosat, he heldvarious directorship positions in the

Company since 2003. Prior to that, he heldsenior positions at Telkomsel and Indosat’s

subsidiary, Indosel.

Hasnul graduated from Bandung Institute ofTechnology (ITB) in 1981 with an Electrical Engineeringdegree before receiving an MBA from the University of

Hawaii in 1992.

HASNUL SUHAIMIPresident DirectorPT Excelcomindo Pratama Tbk, Indonesia

DR SHRIDHIR SARIPUTTA HANSWIJAYASURIYA

Chief Executive/Executive DirectorDialog Telekom PLC, Sri Lanka

Director and Group Chief Executive of Dialog Telekom PLC, Dr Wijayasuriya,39, joined the Company in 1994 as a member of the founding managementteam and has functioned in the capacity of Chief Executive Officer of DialogTelekom since 1997.

Counting over 15 years of professional experience in mobilecommunications, Dr Wijayasuriya has published widely on the subject ofdigital mobile communications, including research papers in publications ofthe Institution of Electrical and Electronic Engineers (IEEE), USA, RoyalSociety and Institution of Electrical Engineers of the United Kingdom (IEE),UK. He has made several keynote presentations at international conferenceson digital mobile communications. Dr Wijayasuriya is also a past chairmanof GSM Asia Pacific – the regional interest group of the GSM Association.

A fellow of the Institute of Engineering Technology of the United Kingdom(IET), Dr Wijayasuriya is a Chartered Professional Engineer registered withthe IET UK. He is also a member of the Institution of Electrical and

Electronic Engineers (IEEE), USA. Dr Wijayasuriya graduated with a degree inElectrical and Electronic Engineering from the University of Cambridge, UnitedKingdom in 1989. He subsequently read for and was awarded a PhD in DigitalMobile Communications at the University of Bristol, United Kingdom. DrWijayasuriya also holds a Masters in Business Administration from the Universityof Warwick, United Kingdom.

TM InternationalSubsidiaries/AssociatedCompanies/Affiliates


L e a d e r s h i p


Adnan, one of the pioneers of Multinet Pakistan (Private)Limited, has been the driving force behind the Company andis responsible for spearheading the successful deployment of

the nationwide OFN. He has a degree in Science (CivilEngineering) from Wisconsin, USA and a Masters in Science(Civil Engineering) from Minnesota, USA. He has a rich and

progressively diverse experience of over 24 years instructural and forensic engineering, construction

management, quality control and project management.

Adnan has conducted a series of seminars onEntrepreneurship and Marketing at the Institute of

Business Administration in Karachi as well as ProjectManagement and Leadership seminars at NED University

in Karachi. He also plays advisory roles in several non-profit organisations primarily focused on Education and

Health and is on the Executive Council Board for theIndus Valley School of Art and Architecture and The

Citizen’s Foundation.

Muhammed Yusoff Mohd Zamri, 43,was appointed Chief Executive Officerof Telekom Malaysia International(Cambodia) Company Limited (TMIC)in February 2007. After obtaining hisBachelor of Engineering (Industrial)from Monash University, Australia in1987, he began his career with INTELin 1988. Subsequently, he moved intothe service industry with American

Express from 1990 to 1993.

Yusoff has both cellular operator andtelecommunications vendor experience. His mobileoperator experience includes stints at Celcom andin Uzmacom as Director of Marketing andBusiness Development for a new mobile operatorin Uzbekistan from 1996 to 2000. Prior to hisappointment in TMIC, he was attached to variousinternational companies such as LucentTechnologies, Schlumberger and Atos Origin.

MUHAMMED YUSOFF MOHDZAMRI

Chief Executive OfficerTelekom Malaysia International(Cambodia) Company Limited,

Cambodia

ADNAN ASDARChief Executive OfficerMultinet Pakistan (Private)Limited, Pakistan



NEIL MONTEFIOREChief Executive OfficerMobileOne Limited, Singapore

Navin Kaul has over 29 years of experience in managing businesses in highlycompetitive markets. He has been in the telecommunications industry right from itsinception in India. He was part of the Modi Telstra team that pioneered cellularcommunications in India.

Navin has held leadership positions in the areas of corporate sales, customer care,revenue assurance and credit risk management. He also has significant exposure inhandling joint-ventures.

In his current role, Navin will be responsible for Spice’s development and growth bycreating financial value, ensuring customer and employee satisfaction and creating strongprocesses to build a world-class organisation.

NAVIN KAULChief Executive Officer

Spice Communications Limited,India

Neil, 55, has been Chief Executive Officer of MobileOneLimited (M1) since April 1996. He was appointed to M1’s

Board of Directors on 8 November 2002. He is a Fellow ofthe Institute of Electrical Engineers and a Fellow of the

Chartered Institute of Marketing.

Neil was formerly Director of Mobile Services at Hong KongTelecom CSL Ltd, the largest cellular operator in Hong Kong,before assuming the position of Managing Director in several

telecommunication companies in Hong Kong and in theUnited Kingdom, including Paknet Ltd which launched theworld’s first public packet radio data network. His earlier

years at various units in the Cable and Wireless Group saw himmanaging and specialising in telecommunication products, projects

and services in Hong Kong and the Far East, as well as in Bahrain,Saudi Arabia and the United Kingdom.


L e a d e r s h i p


* TM International Berhad Chief ExecutiveOfficer Dato’ Yusof Annuar Yaacob overseesthe business and operations for TMInternational (Bangladesh) Limited (TMIB).

SEYED AHMAD SADJJADIManaging DirectorMobile TelecommunicationsCompany of Esfahan, Iran

Charoenrath, 48, has held the position ofExecutive Chairman and Chief Executive Officerfor Samart Corporation Public Company Limitedsince 1987. In addition, he is also Director forSamart Telcoms Public Company Limited andSamart I-Mobile Public Company Limited.

Charoenrath graduated from the University ofNewcastle, Australia with a Bachelors ofEngineering in Electrical Engineering. He also holds a certificate from the ThaiInstitute of Directors.

Seyed Ahmad Sadjjadi, 53,has been the Managing

Director of MobileTelecommunications Company

of Esfahan (MTCE) since2006. He was formerly theChairman of the Board of

Directors in KermanIndustrial Communications

and a Member of the Boardof Directors at Industrial

University of Khajeh NasirToosi from 1981 to 1989. He has

held various managerial positionswithin the Telecommunications

Company of Iran for the Kerman,Markazi Arak, Golestan and

Esfahan provinces.

He graduated from the KhajehNasir Toosi University with a

Bachelors in Telecommunicationsdegree and received his Mastersin System Management from the

Governmental ManagementEducation Centre in Tehran.

Watchai Vilailuck, 45, hashelmed Samart I-Mobileas Executive Chairmanand Chief ExecutiveOfficer since 2003. AnAccounting graduate fromThammasart University,he also holds a Certificateof Director Accreditationfrom the Thai Institute of

Directors (IOD).

Watchai began his career as anAssistant Auditor for SGV-NA Thalang& Company Limited in 1984.Subsequently, he held seniormanagement positions in the Samartgroup of companies which includedSamart Telcom Public CompanyLimited, Samart Satcom CompanyLimited and Samart EngineeringCompany Limited.

WATCHAI VILAILUCKChief Executive Officer

Samart I-Mobile PublicCompany Limited, Thailand

CHAROENRATH VILAILUCKExecutive Chairman/

Chief Executive OfficerSamart Corporation PublicCompany Limited, Thailand

tm2007 e 01 agm - listed company2mb).pdf · chairman’s statement 125-143 chairman’s statement...

Documents