INVESTOR PRESENTATION
COE – INVESTOR RELATIONS 01 INTRODUCTION TO TENAGA
02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION
04 CAPITAL MANAGEMENT
05 FINANCIAL & TECHNICAL HIGHLIGHT INTRODUCTION TO TENAGA
REGULATORY & SHAREHOLDING STRUCTURE
PRIME MINISTER / CABINET Sabah Electricity Sdn Bhd (SESB) (83% owned by TNB) Dependable Capacity: Shareholders Policy Maker 1,223MW
Ministry of Energy and Tenaga Nasional Bhd (TNB) Ministry of Finance Holds ‘Golden Natural Resources (KeTSA) ’ Share a) Khazanah MALAYSIA b) EPF 68.5% c) PNB Implementor d) Other Govt. Agencies ENERGY COMMISSION (Regulator) - Promote competition - Protect interests of consumers Local Corp. & Retail 14.6% - Issue licenses - Tariff regulation Foreign 16.9% Sarawak Energy Bhd (SEB) Market Participant
Tenaga Nasional Berhad IPP
CONSUMERS
Note: Data / Info as at 6th May 2020 33 INTRODUCTION TO TENAGA Distribution Network & Generation Grid/Transmission Retail Non-Regulated Business Regulated Business
TNB Generation Mix: Installed Capacity: Distribution Network Length: 25,409MW Transmission Network Length: 683,008KM Oil & Distillate 0.00% TNB: 14,561MW @ 57.3% IPP: 10,849MW @ 42.7% 23,964KM Solar 0.1% Distribution Substations: Generation Market Share: Hydro 4.2% 83,467 60.5% Transmission Substations:
CoreBusiness 456 SAIDI: Gas & LNG 15.6% Equivalent Availability Factor 48.1mins (EAF): Transmission System Minutes: 88.6% Customer Satisfaction Index (CSI): Coal 40.6% 0.01 mins Note: TNB installed capacity & Market Share 8.1 are based on gross capacity
Source: TNB Data / Info as at March 2020 Main Subsidiaries
Non-Regulated Business
Operation &Maintenance (O&M) Renewables, Energy Efficiency & Other Services Education & Research
• TNB Repair & Maintenance Sdn. Bhd. (REMACO) • TNB Renewables Sdn. Bhd. • TNB Integrated Learning Solution Sdn. Bhd. • GSPARX Sdn. Bhd. (ILSAS) Manufacturing • TNB Energy Services Sdn. Bhd. • TNB Research • TNB Engineering Corporation Sdn. Bhd. • University Tenaga Nasional (UNITEN) Non-CoreBusiness • Tenaga Switchgear Sdn. Bhd. • Integrax Bhd. • Malaysia Transformer Manufacturing Sdn Bhd. • Allo Technology Sdn. Bhd. • Tenaga Cables Industries Sdn. Bhd. 44 INTRODUCTION TO TENAGA Growing Renewable Energy Business– TNB is currently present in more than 5 countries
• 50% equity ownership in Vortex Solar Investments S.à.r.l, United solar PV farm portfolio (May 2017) United Kingdom • 100% equity ownership in Tenaga Wind Ventures UK Ltd, Kingdom onshore wind portfolio (Feb 2018)
Turkey • 30% equity ownership in GAMA Enerji A.Ș. (Apr 2016) Turkey Pakistan Kuwait • 6% equity ownership in Shuaibah Independent Water & Saudi Arabia India Power Project (IWPP)(Aug 2005) Saudi Arabia • REMACO O&M Services for 900MW Shuaibah IWPP (Jan 2010) • REMACO O&M for 225MW Sabiya Power Generation & Water Distillation Plant (July 2014) Kuwait • REMACO O&M for Shuaiba North Co-Gen 900MW Power; 204,000 m3/day water (Sept 2013) • REMACO O&M for 240MW Doha West Water Distillation Plant (Nov 2016)
FOCUS ON GROWING RENEWABLE • Liberty Power Ltd 235MW (Sept 2001) Pakistan • REMACO O&M Services - Bong Hydro Plant (May 2011) ENERGY BUSINESS IN SPECIFIC MARKETS • REMACO O&M Services - Balloki Power Plan (July 2018)
BY LEVERAGING ON ITS INTERNATIONAL India • 30% equity ownership in GMR Energy Ltd (Nov 2016) AND DOMESTIC EXPERIENCE, CAPABILITIES AND ASSETS 55 INTRODUCTION TO TENAGA
TNB Sectoral Sales Analysis* Total Unit Sold 29,375.0 GWH 0.8% 1.6% 2.1%
21.3% Total 25.4% Assets RM179.6bn
81.8% 41.2% 34.9% Total TNB: 9.3mn Customers SESB: 0.6 mn
Total 35.8% 37.6% Employees 36,105 17.1% 0.3% NO OF CUSTOMER SALES (RM) SALES (GWH)
Industrial Commercial Domestic Others Note: Data / Info as at 1QFY20 (March 2020) * Peninsular Malaysia only (TNB exclude SESB and other subsidiaries) 66 INTRODUCTION TO TENAGA Electricity Demand in line with GDP Growth
GDP & TNB (Peninsula) Demand Growth TNB (Peninsula) Yearly Peak Demand 5.9 % 5.0 4.7 4.2 4.3 MW 18,808* 18,566 3.2 18,338 2.7 2.2 2.5 2.5 17,788 17,790 *Recorded at: FY'15 FY'16 FY'17 FY'18 FY'19 10 Mar’20 16,901 16,822 at 1630hrs 16,562
5.2 4.9 4.4 15,826 3.6 3.6 4.5 15,476
1.1 1.0 0.7 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20
1QFY'19 2QFY'19 3QFY'19 4QFY'19 1QFY'20 1QFY’20 1QFY’19 Variance (%)
Total Unit (1.9) 27,938.2 28,471.1 (1.9) Demand Growth GDP Sales (GWh)
Note: i. Data / Info as at FY20 (March 2020) ii. Peninsular Malaysia only (TNB exclude SESB and other subsidiaries) 77 INTRODUCTION TO TENAGA Slowing down in the Industrial Sector due to Global Economy Challenges
Industrial Commercial 1Q main contributors for the drop : Y-o-Y (7.5%) • Iron & steel Y-o-Y (0.1%) • Electric & Electronic • Edible Oil Products (7.5%) (0.1%) Impacted due to Movement Control Order (MCO) implemented at the end of Mar’20 9,759 9,769 10,375 10,200 10,084 11,359 12,037 11,458 11,549 10,509
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Unit Sales Growth 2019 Y-o-Y *includes Agriculture, Mining & Domestic Others* 2020 Q-o-Q Public Lighting
Y-o-Y 5.8% Y-o-Y (9.2%)
5.8% (9.2%) 6,707 7,093 7,060 6,973 6,526 636 577 578 600 614
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Note: Data / Info as at 1QFY20 (March 2020) 8 * Peninsular Malaysia only (TNB exclude SESB and other subsidiaries) 8 INTRODUCTION TO TENAGA TNB Shareholding Top 10 KLCI Stocks by Market Capitalization Khazanah Nasional Berhad 18.1 RM bil 83.3 16.7 Maybank (14.2%) Permodalan Nasional Berhad 97.1 (PNB) 17.5 69.2 15.5 TNB Employees Provident Fund 75.4 (8.3%) Board (EPF) 6.7 61.1 5.6 Public Bank (19.0%) Kumpulan Wang Persaraan (%) 1.2 75.5 (KWAP) 27.3 1.2 45.5 25.8 IHH Healthcare (5.1%) Other Government Agencies 14.5 48.0 43.8 Petronas Chemicals (25.6%) Local Corporation & Retail 18.4 14.6 58.8 41.1 Maxis (1.1%) Foreign Shareholding Pacific, Africa, 41.6 16.9 0.1% 0.01% 35.5 Axiata Group (6.5%) Europe, 37.9 24.1% Asia, 34.0% 35.0 DiGi.com +0.9% 34.7 North America, Foreign Shareholding (%) 41.9% 34.7 MISC (6.9%) 37.3 33.8 CIMB Group (33.8%) 51.1 22.8 28.3 24.4 24.1 20.8 18.4 17.6 16.9 16.9 6 May 2020 31 Dec 2019 Institutional: 16.92% Aug'15 Aug'16 Aug'17 Dec'17 Dec'18 Dec'19 Feb'20 Mar'20 6 May'20 Individual: 0.02% Note: 1. Top 10 KLCI ranking by Market Capitalization as at 6th May 2020 Source: Share Registrar, Bloomberg and IR Internal Analysis 2. TNB Latest Market Cap: RM68.2bil (2nd), as at 5th June 2020 99 INTRODUCTION TO TENAGA Composition of BOD
CHAIRMAN EXECUTIVE DIRECTOR / CEO DATO’ SERI DIRAJA MAHDZIR KHALID DATUK SERI AMIR HAMZAH BIN AZIZAN
Independent Non-Executive Directors (Total = 7) Non-Independent Non-Executive Directors (Total =2)
NORAINI BINTI CHE DAN ONG AI LIN DATO' ROSLINA BINTI ZAINAL AMRAN HAFIZ BIN AFFIFUDIN Expertise: Audit & Finance Expertise: Audit & Finance Expertise: Business (Khazanah)
DATO' ASRI BIN HAMIDIN @ HAMIDON GOPALA KRISHNAN A/L JUNIWATI BINTI RAHMAT HUSSIN DATO’ CHEOK LAY LENG (MoF) K.SUNDARAM Expertise: Project Management, Corporate Expertise: IT & Technology Expertise: Law Planning and Human Resource 1010 01 INTRODUCTION TO TENAGA
02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION
04 CAPITAL MANAGEMENT
05 FINANCIAL & TECHNICAL HIGHLIGHT REGULATORY INCENTIVE BASED REGULATION (IBR) A Mechanisms For Tariff Setting With Incentives To Improve Efficiency & Greater Transparency Non – Regulated Regulatory Environment: (competitive bidding environment)
1. Clear and Transparent Regulatory Framework
Clear and transparent regulatory framework governed by the Energy Commission provides investors with confidence in TNB’s cash flow visibility
2. Consistent and Clear Returns
Regulatory WACC of 7.3% provides consistent and clear return to debt and equity holders
3. Shield against Uncontrollable Swings
Imbalance Cost Pass-Through mechanism shields Tenaga against uncontrollable swings in input costs, with a review every 6 months
4. Incentives for Operational Efficiencies
Incentive / Penalty mechanism provides clear incentives for TNB to achieve operational efficiencies
Regulated Source: Energy Commission (EC) 1212 REGULATORY INCENTIVE BASED REGULATION (IBR) Imbalance Cost Pass-Through (ICPT) Mechanisms Ensures TNB Remain Neutral
Base Tariff under IBR framework comprises of: a) Opex, Depreciation of Regulated Assets & Tax Expenses of Business Entities - transmission, grid system operation, Single Buyer operation, distribution network and customer services
Base Tariff: b) Power purchase cost charged by generators to the Single Buyer RP1 - 38.53 sen/kWh RP2 – 39.45 sen/kWh c) Return on regulated assets (rate base) of Business Entities . Reviewed every 3 years
39.45 Imbalance Cost Pass-Through (ICPT): a) ICPT is 6-monthly pass-through of variations in uncontrollable fuel costs and other generation specific costs (imbalance cost) incurred by utility for the preceding 6-month period . Reviewed every 6 months
Principle for ICPT Calculation Cost components comprise of • The ICPT is calculated based on an estimated actual fuel cost and generation specific costs for a particular six (6) months period against the corresponding baseline costs in the Base Tariff. Source: Energy Commission (EC) 1313 REGULATORY INCENTIVE BASED REGULATION (IBR) Imbalance Cost Pass-Through (ICPT) Comprises Two Components
Imbalance Cost Pass-through (ICPT)
Fuel Cost Pass Through (FCPT) Generation Specific Cost Adjustment (GSCPT)
Changes in Gas/LNG and Coal Costs Changes in: PPAs Power Purchase Agreements • Other fuel costs such as distillate and oil SLAs Service Level Agreements • All costs incurred by SB under the power procurement CSTA Coal Supply and Transportation Agreement agreements (PPAs, SLAs and etc.) and fuel procurement CPC Coal Purchase Contract agreements (CSTA, CPC, GFA Gas Framework Agreement • Renewable energy FiT displaced cost GSA Gas Supply Agreement RP2 ICPT Surcharge Period Jul–Dec’18 2.15sen/kWh Jan –Jun’19 Jan–Jun’19 2.55sen/kWh Jul –Dec’19 Jul–Dec’19 2.00sen/kWh Jan –Jun’20 Jan–Jun’20 0.00sen/kWh Jul –Dec’20
Source: Energy Commission, company presentations, company fillings 1414 REGULATORY INCENTIVE BASED REGULATION (IBR) New Features in Electricity Tariff Review for RP2 (2018-2020)
*
Source: Energy Commission (EC) 1515 REGULATORY INCENTIVE BASED REGULATION (IBR) IBR Entities
1
1 In RP1, these 2 entity are grouped as Price –Cap entity Source: Energy Commission (EC) 1616 REGULATORY INCENTIVE BASED REGULATION (IBR) New Base Tariff Under IBR Mechanism RP2
Variance RP1 Average Tariff by Entities (sen/kwh) Entities (RP2 v. RP1) (sen/kWh) (sen/kWh) Base tariff for RP2 (sen/kWh) Generation 26.76 +0.29 3% Single Buyer 18% Operation 0.19 - 69% 0.5% 0.2% 10% Grid System 0.05 +0.02 Operator
Transmission 3.66 +0.37
Distribution Network 6.77 +0.3
Customer Services 1.10 -0.06
Base Tariff 38.53 +0.92 Average Tariff by Sectors (sen/kwh)
46.93 Commercial 47.92 39.45 Base Tariff 38.53 36.85 Industrial 36.15 32.95 RP2 RP1 Domestic Source: Energy Commission (EC) 31.66 1717 REGULATORY INCENTIVE BASED REGULATION (IBR) RP2 Parameters
Avg. Regulated Fuel Parameters WACC Asset Based (RAB) Coal USD75/MT (RM14.47/mmbtu @ RM4.212/USD) 7.3% RM54.8bn RP1: USD87.5/MT @ RM3.100/USD (Avg. RAB in 2020) RP1: 7.5% RP1: RM43.6bn (Closing RAB) LNG TARIFF OPEX RM35/mmbtu RP1: RM41.68/mmbtu 39.45 sen/kwh RM18.2bn RP1: 38.53 sen/kwh (Approved OPEX) RP1: RM16.9bn Regulated RM24.20/mmbtu (Jan’18 - Jun’18) (Closing OPEX) Gas RM25.70/mmbtu (Jul’18 - Dec’18) 1.5 million @1,000mmscfd RM27.20/mmbtu (Jan’19 - Dec’20) CAPEX smart meters in * Special homes Fibre Optic RP1: RM15.20/mmbtu – RM22.70/mmbtu Projects network development RM18.8bn* for energy security & (Approved CAPEX) approved reliability RP2 Forecasted Gas Utilization: 840 mmscfd RP1: RM15.7bn 367,000 (Closing CAPEX) LED streetlights
Source: Energy Commission (EC) 1818 REGULATORY INCENTIVE BASED REGULATION (IBR) Generation and Customer Mix
Generation Mix RP1 vs RP2 Changes in Customer Mix (%) in RP1 (2015-2017)
RP1 Base RP1 Actual
43.6% 40.8% Coal Coal 44% 49%
1% 34.1% 35.1% RP2 1% 0.1% 4% Coal Gas 20.6% 22.3% 33% Hydro 61% RE Base IBR RP1 Average Actual IBR RP1 LTM Domestic Commercial Industrial LSS
Made possible by improved coal plants performance and RP2 Forecasted Demand Growth: 1.8 – 2.0% additional commissioning of coal plants. Note: 19 LTM – Laos, Thailand & Malaysia Interconnection; LSS – Large Scale Solar Source: Energy Commission (EC) 19 01 INTRODUCTION TO TENAGA
02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION
04 CAPITAL MANAGEMENT
05 FINANCIAL & TECHNICAL HIGHLIGHT BUSINESS STRATEGY & DIRECTION
Reimagining TNB is TNB's strategic aspiration – a key enabler is the corporate structure
4 STRATEGIC PILLARS 4 STRATEGIC TNB Power Generation PILLARS Sdn Bhd
Future Grid of Winning Future Generation the Future the Proof Sources Customer Regulations TNB Retail Sdn Bhd
2121 BUSINESS STRATEGY & DIRECTION International Acquisition - Four International Acquisitions to Support Aspiration
30% 30% Equity interest of GAMA Enerji A.S. Equity interest of GMR Energy Limited.
Assets include a 853MW natural gas- Assets include 1,014MW coal, gas and fired plant, 117.5MW wind plants and solar plants. 131.3 hydro plants
Vortex Solar UK Tenaga Wind Ventures 50% 100% Equity interest of Vortex Solar Equity interest of GVO Wind Limited & Investments S.a.r.l. Blumerang Capital Limited Assets include 24 operational solar PV Assets include 53 operational onshore Farm across England and Wales with net medium wind turbines with a total installed capacity of about 365MW combined capacity of 26.1MW 2222 BUSINESS STRATEGY & DIRECTION Generation Projects
Southern Power Generation 1,440 MW COD: Gas 30th Nov 2020 Physical Progress: 99% (Planned: 99%)
TNB Bukit Selambau 30 MW COD: 31st Dec 2020 Solar Physical Progress: 93% (Planned: 97%)
Note: i. PPA Tenure - 21 years ii. Data as at March 2020
2323 BUSINESS STRATEGY & DIRECTION Renewable Energy (RE) & Green Policy
11th Malaysia Plan 2016 - 2020 Country RE Target by 2025 Reduction up to 45% in RE installed capacity of Government Green 8,885MW by 2020 Development Plan GHGs emission intensity of * The increase in the total installed capacity of 20% of GDP compared to 2005 RE is based on the adoption of the ASEAN level by 2030 definition of RE by Malaysia in 2016 which takes Total Installed Capacity into account all types of hydro energy in the calculation without limiting their capacities.
TNB RE Target of 1,700MW
40,000,000 37,117,610 0.60 by 2025 33,503,804 29,061,190 0.57 TNB RE Capacity 30,000,000 TNB RE Capacity (exclude major hydro) (include major hydro) TNB 0.55 20,000,000 0.54 0.55 Total: Total: 776MW Sustainability 2,937MW Efforts 10,000,000 As at March 2020: As at March 2020: • International - 291MW • International – 665.9MW • • Domestic - 110MW 0 0.50 Domestic – 2,646MW FY2016 FY2017 FY2018 (include major hydro > 100MW) (exclude major hydro > 100MW) 24 Total Emissions (tCO2e) Emission Intensity (tCO2e/MWh) 24 BUSINESS STRATEGY & DIRECTION TNB’s Renewable Energy (RE) Assets
Others Domestic (Peninsular Malaysia) International
Mini Hydro (10MW) Kelantan GSPARX Rooftop Solar United Kingdom (37MW) (Total secured) Large Hydro Solar SJ Pergau (600MW) TNB Vortex Solar (365.0MW) Kedah Terengganu Wind
Large Scale Solar Large Hydro TNB Wind Ventures (26.1MW)
TNB Bukit Selambau SJ Kenyir (400MW)
(30MW) (in development) SJ Hulu Terengganu (265MW) Turkey
Perak Pahang Wind Large Hydro Large Hydro GAMA Wind (117.5MW) SJ WOH (150MW) SJ Temengor (348MW) SJ JOR (100MW) Hydro SJ Bersia (72MW) SJ Ulu Jelai (372MW) GAMA Hydro (131.3MW) SJ Kenering (120MW) Biomass SJ Chenderoh (41MW) JV with Felda (10MW) SJ Sg. Piah (67MW) India Selangor Johor Solar Large Scale Solar Biogas GMR Solar (26.0MW) TNB Sepang Solar (50MW) JV with Sime Darby (3.2 MW) Solar PV
Floating solar in Sg Labu WTP (108kWp) 2525 BUSINESS STRATEGY & DIRECTION TNB’s Environment Initiatives
TNB Board of Directors is cognisant of the importance of ensuring sustainability is integrated in the strategic direction of the organisation, decision making processes and operational performance
5,750,636.42 tCO2e of GHG To develop Green House Gas Emission Emissions were mitigated in Management System (GEMS), an FY2018 through the used of hydro, online system to record and analyse renewable energy and efficient raw emission data from TNB assets technology power plant. (Data as at FY2018)
The latest coal generation plants using ultra-supercritical Promoting green energy by technology consume less fuel per introducing tradable RE Certificate MWh electricity produced in (MGATS) and optional green tariff comparison to conventional coal (myGreen+) power plant further contributing to lower carbon emissions.
50MW Large Scale Solar (LSS), cut emissions by approx. 64,000 Development on microalgae initiative tCO2e/year, additional 30MW LSS to to reduce carbon dioxide (CO2) further reduce emissions after COD in Dec 2020 2626 BUSINESS STRATEGY & DIRECTION TNB’s Green Development
UNITEN’s Smart UniverCity Expansion of Electric Vehicle Charging Network To create a sustainable ecosystem which provide competitive advantage for TNB in moving into smart city environment. To expand the existing charging station infra (around 250 stations) The project focuses on customer experience, renewable energy, energy under the ChargEV programme (managed by MGTC). efficiency and artificial intelligence.
TNB Centre of Excellence (CoE) for Solar Energy at the Maverick - Showcase of Net Zero Energy Home Large Scale Solar (LSS) site in Sepang Showcasing Net Zero Energy Home Living in residential areas in Cyberjaya, the project provides a physical experience for customers to The CoE will become a training centre for solar energy development and visualise how to self generate their own electricity. technology, catering for TNB employees and external participants from public and private sectors
Smart Street Light Showcase Project at UNITEN Putrajaya Introduction of Electric Buses for UNITEN Campus
The project aims to develop a feasible business model for the operation A street lighting system integrated with communication facilities that allow it of electric buses within the campus, such as vehicle leasing between the to perform various functions such as brightness control, surveillance and Fleet Management and UNITEN. digital street signs.
2727 BUSINESS STRATEGY & DIRECTION Breakdown of TNB’s Generation Revenue
The Group will continuously strive to ensure that the revenue from the coal generation plants does not not exceed 25%
2828 BUSINESS STRATEGY & DIRECTION TNB’s Social Initiatives
Economic & Social Education Career Development
212 households benefitted from Projek Baiti Jannati and 700 students awarded More than RM183 Program Mesra Rakyat by YTN scholarship with a million contributed in refurbishing or building new total amount of RM66.1 training & development homes through a total million contribution of RM9.96 million RM21.2 million for 3,564 students from RM10 million spent to TNB’s contribution of RM6 low-income families in the cultivate 705 youth million including sponsorships fields of Science, potentials through to the Malaysian Hockey Technology, Engineering PROTÉGÉ Confederation and Mathematics through Dermasiswa My Brighter Approximately RM3.49 million Future (MyBF) Programme has been allocated to Better 38,000 hours for Brighter Shelter programme, Leadership Training & provide accommodation via TNB has contributed a Total 1,085,160 dormitories whose members total of RM2.19 million training hours are undergoing to 18 schools under the treatment in the hospitals Pintar Schools Adoption Programme
2929 BUSINESS STRATEGY & DIRECTION TNB’s Governance Initiatives
TNB is committed to operating in an ethical, transparent and responsible manner given the critical role we play in national development and the number of stakeholders who are impacted by our business
TNB Board Committees Governance Pillars
Board Audit Committee Leadership & Effectiveness
Board Risk Committee Internal Audit Function Board Finance And Investment Committee
Board Long Term Incentive Plan Committee Relations with Stakeholders
Board Tender Committee Statement on Risk Management & Internal Controls Board Integrity Committee
Board Nomination And Remuneration Committee Ethics, Integrity & Trust 3030 01 INTRODUCTION TO TENAGA
02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION
04 CAPITAL MANAGEMENT
05 FINANCIAL & TECHNICAL HIGHLIGHT CAPITAL MANAGEMENT With These Achievements, We Are Pleased To Distribute Dividend Payout Of RM5.6bn Comprising Of A 50.0sen Special Dividend On Top Of 50.0sen Single Tier Dividend To Our Loyal Shareholders, By Balancing The Company’s Growth With Proactive Capital Management
5.69 DIVIDEND POLICY We will continue to honour Dividend Payout 3.45 our dividend policy of 30% (RM’ billion) 3.03 to 60% dividend payout ratio, based on the 56.0% reported Consolidated Net 55.8% Profit Attributable to Shareholders After Dividend Payout 50.0% (%) Minority Interest, * excluding Extraordinary, 50.0 Non-Recurring items.
Dividend Per 61.0 53.3 50.0 Share (sen) Special Dividend Single Tier Dividend FY2017 FY2018 FY2019 * Exclude special dividend 3232 CAPITAL MANAGEMENT New drawdown of RM1bil increases Gearing Level
RM Equivalent of Loan Value (bn) Statistics 31st Mar'20 31st Dec'19
75.8% 1 Total Debt (RM' Bil) 47.3 45.4 Net Debt (RM' Bil)* 31.3 31.2 35.8 34.5 1 Gearing (%) 45.8 43.4 Net Gearing (%) 30.3 29.8 Fixed : Floating 98:2 98:2 Final Exposure 98:2 98:2 Effective Average Cost of Borrowing 17.6% 2 5.01 5.06 (based on exposure) ** 8.3 5.2% 7.9 1.2% * Net Debt excludes deposits, bank and cash balances & investment in UTF 0.1% ** Inclusive of interest rate swap 2.4 2.5 0.6 0.6 0.1 0.0 1
RM USD JPY GBP OTHERS New drawdown of RM1bil for working capital purposes
Dec-19 Mar-20 2 Reduced due to lower interest rate of the new drawdown.
Note: st st 1. Debt consists of Principal + Accrued Interest Closing FOREX 31 Mar’20 31 Dec’19 USD/RM 4.29 4.09 100YEN/RM 3.96 3.77 GBP/RM 5.30 5.37 USD/YEN 108.24 105.40 3333 01 INTRODUCTION TO TENAGA
02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION
04 CAPITAL MANAGEMENT
05 FINANCIAL & TECHNICAL HIGHLIGHT FINANCIAL & TECHNICAL HIGHLIGHTS FY2020 Outlook
ELECTRICITY DEMAND CAPEX INTERNATIONAL RM9.5 – 10.0bil • Demand contraction of 1.9% recorded in 1QFY’20. • The COVID-19 pandemic is impacting the • Due to the Covid-19 pandemic and progress of our initiatives to reduce the current • Regulated Recurring : RM5.0 – 5.5bil implementation of MCO, demand for May’20 fell exposure, including the restructuring & • Others : RM4.0 - 5.0bil by 10.6% as compared to May’19. turnaround exercise, and sale of investment in • Moving forward, we expect the overall electricity particular for GAMA & GMR. However, UK assets consumption to drop between 7-15% Y-o-Y this are insulated by the long-term subsidy scheme. year, mainly due to slowdown of activities in the • TNB had acquired the remaining 20% stake of DIVIDEND POLICY commercial sector. TWV in March 2020. We will use our UK • However, earnings of our regulated revenue cap Investments & Assets as a platform to grow our We will continue to honour our dividend entities are guaranteed at demand growth of Renewable Energy portfolio due to its huge policy of 30% to 60% dividend payout 1.8% - 2.0% as stipulated by the IBR guidelines growth potential as the world shifts towards ratio, based on the reported Consolidated in RP2. sustainable energy sources. Net Profit Attributable to Shareholders After Minority Interest, excluding Extraordinary, Non-Recurring items. CASH FLOW
• Our cash flow is still resilient supported by the recent capital drawdown. Furthermore, we commanded good rates in the exercise due to our robust and strong balance sheet. • For 1QFY’20, the allowance for doubtful debt is RM99.1 mil. • We expect continued challenges on our collection based on the prolonged impact of COVID-19 pandemic & prediction by the Department of Statistics Malaysia (DOSM) that the country is heading into an economic recession in the next four to six months. This is indicated by the drop of our sales collection by 29.9% for May’20 as compared to May’19. However, the trend in early days of June seems to be improving and we will continue to monitor the collection on a regular basis. 3535 FINANCIAL & TECHNICAL HIGHLIGHTS Reasonable FY’19 Results amid Challenges in Generation Business
REVENUE (RM bil) EBITDA (RM bil) 18.4 50.4 50.9 47.4 15.5 44.5 14.8 13.4
11.7 4.8
FY'16 FY'17 FY'18 FY'19 1QFY'20
FY'16 FY'17 FY'18 FY'19 1QFY'20 PAT (RM bil)
7.32 6.91
4.45 3.75
0.74
FY'16 FY'17 FY'18 FY'19 1QFY'20 Note: FY2019 is after MFRS16 implementation 3636 FINANCIAL & TECHNICAL HIGHLIGHTS Improved Technical Performance for Grid Business
EAF (%) Transmission System Minute (mins)
1.5 89.9 04 05 88.1 88.5 88.6
83.4 0.4 0.3 0.2 0.01
FY'16 FY'17 FY'18 FY'19 1QFY'20 FY'16 FY'17 FY'18 FY'19 1QFY'20
Distribution SAIDI (mins)
49.7 50.2 48.2 48.1
11.8
FY'16 FY'17 FY'18 FY'19 1QFY'20 3737 DISCLAIMER
All information contained herein is meant strictly for the use of this presentation only and should not be used or relied on by any party for any other purpose and without the prior written
approval of TNB. The information contained herein is the property of TNB and it is privileged
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38 THANK YOU For further enquiries, kindly contact us at:
Investor Relations Office: Investor Relations Team: Ms. Mehazatul Amali Meor Hassan CoE Investor Relations Group Finance Division +603 2108 2126 Tenaga Nasional Berhad [email protected] 4th Floor, TNB Headquarters No.129, Jalan Bangsar, Ms. Sakinah Mohd Ali 59200 Kuala Lumpur, MALAYSIA +603 2108 2840 [email protected] +603 2108 2128 Mr. Ahmad Nizham Khan +603 2108 2034 +603 2108 2129 [email protected] [email protected] www.tnb.com.my Mr. Sathishwaran Naidu +603 2108 2133 [email protected]
www.tnb.com.my39