1

Malaysia Airlines 2nd Quarter 2011 Financial Results

Tan Sri Md Nor Yusof (Chairman) Rashdan Yusof (Executive Director) 23 August 2011

Embargo till 5pm/23 Aug 2011, Malaysian Time

High oil prices take a toll on the airline industry

Net Profit - 82% Fuel expenditure + 38% Apr-Jun 2011 Net Profit - 59% Fuel expenditure + 41% Jan-Jun 2011 THB7.9b net loss Fuel expenditure + 40% Apr-Jun 2011 Net Profit - 127% Fuel expenditure Apr-Jun 2011 + 16%
Embargo till 5pm/23 Aug 2011, Malaysian Time
Slide 2 of 10

Key factors impacting our Q2 2011 results

Seasonally weakest quarter industry-wide Increasing and high Fuel prices Aggressive capacity deployment

Increasing competition from regional FSC peers and Middle-Eastern carriers

Less than optimal performance in Revenue Management and Sales

Embargo till 5pm/23 Aug 2011, Malaysian Time

Slide 3 of 10

2Q: Overview of Group Profit & Loss

(RM million)

Revenue Passenger Pax Revenue Fuel Surcharge and Admin Fee Cargo Belly & Freighter Fuel Surcharge Other Revenue (MRO & ancillary income) Expenditure Fuel Non-fuel Operating Loss Derivative losses Finance costs Taxation Net Loss Share of results of Associated Companies & JV Non-controlling Interest NET LOSS AFTER TAX

2Q11 3,485 2,086 495 306 145 452 3,898 1,550 2,349 (413) (56) (35) (16) (521) (5) (1) (527)

2Q10 3,213 1,912 341 403 136 422 3,499 1,102 2,397 (286) (217) (33) (1) (537) 3 (1) (535)

Total revenue increased by 8% Passenger revenue including surcharges increased 15% Cargo revenue decreased by 16% Non-fuel expenditure decreased by 2% despite capacity increase of 10% Increase in fuel expenditure by 41% due to higher fuel prices and consumption

SIN JET Fuel price paid (ex hedging)

US$140/barrel

US$96/barrel

Embargo till 5pm/23 Aug 2011, Malaysian Time

Slide 4 of 10

2Q11 Results Overview (v 2Q10) Significantly higher fuel cost offset higher pax revenue
Traffic (RPK) increased by 12% Capacity up 10% Load factor up 1.5ppts to 75.5% Pax revenue up by 13% Yield up by 1% to 24.2 sen RASK up by 3% to 18.2 sen Fuel cost surged by RM 448 mil, Improved non-fuel cost management Fuel cost higher by 41% Non-fuel cost decreased by 2%

Significant increase in fuel cost outweighed improved operating performance Operating loss of RM413 mil Net loss of RM527 mil (vs RM535 mil in 2Q10)
Cargo continued to be profitable, but smaller margins in line with industry trends Embargo till 5pm/23 Aug 2011, Yield up by 3%, load factor down by 9.4ppts Malaysian Time
Slide 5 of 10

Higher revenues offset by drastic increase in fuel cost Non-fuel cost contained

2Q10

2Q11

-527 -535 +272 -25

Increase in total revenue

-448

Other operating cost

+161
Lower MTM loss

Others

+48
Increase in Fuel cost mainly due to price

Embargo till 5pm/23 Aug 2011, Malaysian Time

Slide 6 of 10

Outlook for 2H 2011

3Q sluggish, coinciding with low-travel month of Ramadhan. US and European economies struggling weaker demand US, Japan, Middle-East and European forward bookings consequently are weak

Fuel prices still high

Pro-actively managing capacity moving forward Aggressive revenue management initiatives moving forward. New revenue management system being implemented Expect 2H loss as a result, but not as severe as 1H (with above initiatives)
Embargo till 5pm/23 Aug 2011, Malaysian Time

Slide 7 of 10

Our broad plan moving forward ( being fleshed out by EXCO )

Mobilise Mobilise immediately to cut losses 1. Establish firm financial footing by focusing on regenerating revenue uplift in both revenue management and sales 2. Review network and immediately address capacity excess 3. Rebuild cash reserves

Advance the future

Uncompromised focus on premium full-service to be the mover of the regional FSC industry moving forward 1. Best-in-class product 2. Impeccable service par excellence; from home to flight to destination Succeed sustainably Establish sustainable profitability and win market recognition from the discerning traveller
Embargo till 5pm/23 Aug 2011, Malaysian Time
Confidential

Slide 8 of 10

Our broad plan moving forward ( being fleshed out by EXCO )

Embargo till 5pm/23 Aug 2011, Malaysian Time

1
Right Model Right Team

Right business model : Distinctive long-haul and short-haul premium offering, airlines Strategic platform : Comprehensive Collaboration Framework with AA & AAX, Join global Alliance, Establish network JVs with alliance partners, Find global best partners in MRO, Cargo, Training, etc. Right team : Right mix of current & new; establish strengthsfinder culture to bring out best in existing people and teams

2
Superior customer experience

Best-in-class product & service Attention to detail.

Customer loyalty
Proactive customer relationship management

3
Relentless Excellence

Operations Revenue Management Sales & Marketing Cost optimisation

4
Winning organisation
Confidential

Organisational change : lean and mean Agile Leadership : Flexible and entrepreneurial yet vibrant and fun Incentives and productivity focus : performance now!
9 Slide 9 of 10

10

Thank You
Please email anbarasu.sundram@malaysiaairlines.com for further queries

Embargo till 5pm/23 Aug 2011, Malaysian Time