INVESTOR PRESENTATION 01 INTRODUCTION TO TENAGA 02 REGULATORY TABLE OF CONTENT 03 BUSINESS STRATEGY & DIRECTION 04 CAPITAL MANAGEMENT 05 FINANCIAL & TECHNICAL HIGHLIGHTS INTRODUCTION TO TENAGA

Sabah Sdn Bhd (SESB) (83% owned by TNB) Dependable Capacity: 1,257MW Bhd (TNB)

Sarawak Energy Bhd (SEB)

Holds ‘Golden’ PRIME MINISTER / CABINET Share

Ministry of Finance/ Policy Maker Berhad MINISTRY of ENERGY, TECHNOLOGY, SCIENCE, CLIMATE CHANGE AND i. EPF ENVIRONMENT (MESTECC) ii. PNB iii. Other Govt. Agencies Implementor

Other Corp. & ENERGY COMMISSION (Regulator) Public - Promote competition - Protect interests of consumers Foreign - Issue licenses - Tariff regulation Shareholders Market participant

Tenaga Nasional Berhad IPPs Regulatory Shareholding & Structure

Consumers 33 INTRODUCTION TO TENAGA Distribution Network & Generation Grid/Transmission Customer Service Non-Regulated Business Regulated Business

TNB Generation Mix: Installed Capacity: Distribution Network Length: 25,196MW Transmission Network Length: 660,038KM Oil & Distillate 0.01% TNB: 14,038MW @ 55.7% IPP: 11,158MW @ 44.3% 23,082KM Solar 0.2% Distribution Substations: Generation Market Share: Hydro 5.1% 81,327 51.2% Transmission Substations:

CoreBusiness 443 SAIDI: Gas & LNG 37.8% Equivalent Availability Factor 39.2mins (EAF): Transmission System Minutes: 87.7% Customer Satisfaction Index (CSI): 56.9% 0.27 mins Note: TNB installed capacity & Market Share 8.1 are based on gross capacity

Source: TNB Data / Info as at September 2019 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 Sdn. Bhd. • Integrax Bhd. • Malaysia Manufacturing Sdn Bhd. • Allo Technology Sdn. Bhd. • Tenaga Cables Industries Sdn. Bhd. 44 INTRODUCTION TO TENAGA Expanding Global Footprint To Achieve Aspiration – TNB is currently present in more than 5 countries

• 50% equity ownership in Vortex Solar Investments S.à.r.l United (May 2017) Kingdom • 80% equity ownership in Operational Onshore Wind United Portfolio in UK (Feb 2018) Kingdom Turkey • 30% equity ownership in GAMA Enerji A.Ș. (Apr 2016) Turkey • 20% equity ownership in a Malaysian Shoaiba Consortium Kuwait Saudi Arabia Sdn Bhd (Aug 2005) • REMACO O&M Services for Shuaibah IWPP (Jan 2010) Saudi Arabia

• REMACO O&M for 225MW Sabiya Power Generation & Water Distillation Plant (July 2014) Kuwait • REMACO O&M for Shuaiba North Co-Gen 780MW Power; 204,000 m3/day water (Sept 2013) • REMACO O&M for 210MW Doha West Power Generation & Water Distillation Plant (Nov 2016)

• Liberty Power Ltd 235MW (Sept 2001) TNB’S FOCUS ON INTERNATIONAL Pakistan • REMACO O&M Services - Bong Hydro Plant (May 2011) • REMACO O&M Services - Balloki Power Plan (July 2018) EXPANSION India • 30% equity ownership in GMR Energy Ltd (Nov 2016) AND INVESTMENT IN THERMAL & • Convertible debenture in Bajoli Holi RENEWABLE ENERGY 55 INTRODUCTION TO TENAGA

TNB Sectoral Sales Analysis* Total Unit Sold 92,832 GWH 0.8% 1.6% 2.1%

20.0% Total 23.6% Assets RM181.5bn

81.7% 40.9% 34.6% Total TNB: 9.2mn Customers SESB: 0.6 mn

Total 37.4% 39.7% Employees 36,293 17.2% 0.3% NO OF CUSTOMER SALES (RM) SALES (GWH)

Industrial Commercial Domestic Others Note: Data / Info as at 9MFY19 (September 2019) * only (TNB exclude SESB and other subsidiaries) 66 INTRODUCTION TO TENAGA Steady Electricity Demand in line with GDP Growth

GDP & TNB (Peninsula) Demand Growth TNB (Peninsula) Yearly Peak Demand by Financial Year MW % 18,566 18,338 6.0 5.9 5.5 17,790 5.3 17,788 Recorded at: 4.7 5.0 4.7 4.2 4.6 18 Apr’19 at 1430hrs 16,901 16,822 4.3 16,562 3.8 1 3.2 3.2 3.1 15,826 2.5 2.5 2.5 2.2 15,476

FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 9MFY'19 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 9MFY'19 Demand Growth GDP 1 Average demand growth for FY2016 & FY2017. This is to eliminate the one-off El-Nino phenomenon during 3QFY’16

Note: i. Data / Info as at 9MFY19 (September 2019) ii. Peninsular Malaysia only (TNB exclude SESB and other subsidiaries) 77 INTRODUCTION TO TENAGA Stable Y-o-Y Growth for All Sectors (GWh) Industrial Commercial

Y-o-Y 0.6% 3Q main contributors for the drop : Y-o-Y 3.2% • Iron & steel 2.2% 2.6% (2.8%) • Electric & Electronic 4.2% 2.9% 2.4% • Utility Electrical

(consistent with the drop in IPI Manufacturing ) 9,769 11,359 9,373 10,078 9,963 9,851 11,118 11,118 11,736 11,786 11,800 10,375 10,200 12,037 11,458

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Unit Sales Growth 2018 Y-o-Y Domestic Others* *includes Agriculture, 2019 Q-o-Q Mining & Public Lighting

Y-o-Y 7.6% Y-o-Y 8.8%

11.1% 6.5% 5.6% 17.1% 3.4% 6.1% 6,036 6,707 6,632 7,060 6,602 6,973 6,253 543 636 559 578 565 600 575

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Note: Data / Info as at 9MFY19 (September 2019) 8 * Peninsular Malaysia only (TNB exclude SESB and other subsidiaries) 8 INTRODUCTION TO TENAGA TNB Shareholding

Top 10 KLCI Stocks by Shareholding as at Sep’19 Market Capitalization as at 25 Nov’19 RM bil Khazanah Nasional Berhad Total Govt. Agencies 17.3 66.2% 97.1 Permodalan Nasional 15.1 (0.5%) Berhad TNB 77.2 Employees Provident Fund Sep’19 : RM77.6bil Board 6.5 (ranked 3rd) (%) Public Bank 77.1 Other Government 27.3 Agencies 14.8 Local Corporation & Retail Chemicals 56.9 19.0 Foreign Shareholding CIMB Group 53.3

IHH Healthcare 47.7 Pacific, Africa, 0.2% 0.1% Foreign Shareholding (%) Maxis 41.5

Europe, Asia, 25.7% 30.0% Group 40.0

North America, 44.0% MISC 37.1

Hong Leong Bank 36.3

Institutional: 18.95% 22.8 28.3 24.4 24.1 20.8 20.2 19.7 19.1 19.5 18.8 18.9 18.7 19.0 Individual: 0.02% Aug'15 Aug'16 Aug'17 Dec'17 Dec'18 Jan'19 Feb'19 Mar'19 May'19 Jun'19 Jul'19 Aug'19 Sep'19 99 INTRODUCTION TO TENAGA Composition of BOD

CHAIRMAN EXECUTIVE DIRECTOR / CEO TAN SRI DATUK SERI AMIR HAMZAH BIN AZIZAN

Independent Non-Executive Directors (Total = 5) Non-Independent Non-Executive Directors (Total =3)

NORAINI BINTI CHE DAN GEE SIEW YOONG ONG AI LIN DATUK AHMAD BADRI BIN AMRAN HAFIZ BIN AFFIFUDIN Expertise: Audit & Finance Expertise: Audit & Finance Expertise: Audit & Finance MOHD ZAHIR (Khazanah) (MoF)

GOPALA KRISHNAN A/L K.SUNDARAM JUNIWATI BINTI RAHMAT HUSSIN

Expertise: Law Expertise: Project Management, Corporate DATO' ROSLINA BINTI ZAINAL Planning and Human Resource 1010 01 INTRODUCTION TO TENAGA 02 REGULATORY TABLE OF CONTENT 03 BUSINESS STRATEGY & DIRECTION 04 CAPITAL MANAGEMENT 05 FINANCIAL & TECHNICAL HIGHLIGHTS 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 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

b) Power purchase cost charged by generators to the Single Buyer Base Tariff: (based on fuel forecast base price) 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 Jan –Jun’18 1.35sen/kWh Jul –Dec’18 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

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) RM24.20/mmbtu (Jan’18 - Jun’18) RP1: RM16.9bn Regulated RM25.70/mmbtu (Jul’18 - Dec’18) (Closing OPEX) Gas RM27.20/mmbtu (Jan’19 - Jun’19) 1.5 million @1,000mmscfd RM28.70/mmbtu (Jul’19 - Dec’19) 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, & Malaysia Interconnection; LSS – Large Scale Solar Source: Energy Commission (EC) 19 REGULATORY MESI 2.0 5 Key Initiatives of MESI Reform 2.0

FUEL HYBRID PPA & THIRD PARTY RETAIL SINGLE BUYER (SB) & NEDA+ ACCESS (TPA) GRID SYSTEM OPERATOR (GSO) Allow generators to source a) Move from PPA regime to Establish TPA framework and Facilitate choice in retail Increase transparency and own fuel (coal and gas) to capacity and energy market network charges for grid to reduce conflict of interest in optimise cost o Future PPAs will comprise allow third party using the SB and GSO • Encourage IPPs to source capacity payments while infrastructures cheaper fuels excluding locked-in energy • To allow trading of green • Any cost-savings will be payments energy shared between end-users o Future PPAs will have • To pave a way for the future and the generators (ratio shorter tenure (as export of electricity under and exact mechanisms has opposed to the 21-25 year ASEAN Power Grid yet to be finalised) tenure practised • To open up for non- previously) renewable power producers b) Generators with excess • Buyer to acquire a minimum capacity or with expired PPAs of 20MW directly from the can utilise the improved New RE supplier and TNB will be NEDA+ to sell energy via spot paid a certain network contract to SB charge for renting out its grid

Source: The Edge Financial Daily article: Govt. to Liberalise Power Industry, 2020 17th September 2019 REGULATORY MESI 2.0 MESI Reform 2.0 Key Initiatives Timelines TIMELINES

2019 2020 2021 2022 2023 2029 KEY INITIATIVES 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q MyPower to come up with draft on rules, incentive mechanisms, and amendments to regulatory control Energy Commission (EC) expected to approved and published these rules

FUEL Pilot project Full roll-out MyPower to come up with the energy and capacity markets’ design and rules EC to approve the design and rules EC will hold the first auction for the capacity market (hybrid PPA)

HYBRID HYBRID PPA The entry of the capacity market which will mark the beginning of the hybrid market till 2045, when the last batch of the current

NEDA+ PPA ends - 2029

HYBRID HYBRID & PPA EC will roll out an improved NEDA+ to incentivise more power producers with excess capacity or expired PPAs NEDA+ EC and TNB to determine interim network charges based on RP2 to allow green energy power producers to ride on the grid Once interim network charges are decided, third party 100MW green contract will be piloted to last till the end of the 3 year RP3 MyPower and EC to develop the rules / guidelines for the TPA with regards to market participation.

TPA EC is expected to approve and submit RP3 to the government for endorsement, including network charges EC to seek legal opinion on existing legislation TPA and other reform initiatives by end-2019. The new legislation (if necessary depending on legal opinion) will be tabled by end of 2022 EC and TNB will announce grid’s green rider initiative MyPower will detail and complete a retail regulatory framework to be approved by EC by 4Q202 1) Itemised billing based on RP3 will be rolled-out together with new tariff design and approved network charges 2) Electricity time of use (which details different prices for the use of electricity at different times of the day) will be piloted RETAIL Pilot of opening up of retail to take place after the roll out of retail regulatory framework The industry is expected to get ready for gradual price-based retail EC will make first disclosure of the government’s Power Planning Plan MyPower will present a report on enhanced governance of SB and GSO GSO SB & SB The enhanced ring-fenced governance to start in 1Q2021

2121 Source: The Edge Financial Daily article: Govt. to Liberalise Power Industry, 17th September 2019 01 INTRODUCTION TO TENAGA 02 REGULATORY TABLE OF CONTENT 03 BUSINESS STRATEGY & DIRECTION 04 CAPITAL MANAGEMENT 05 FINANCIAL & TECHNICAL HIGHLIGHTS BUSINESS STRATEGY & DIRECTION

Reimagining TNB is TNB's strategic aspiration – a key enabler is the corporate structure

Aspirations in the Disrupted World anchored on value creation

Future Grid of the Winning the Future proof Generation Future Customer regulation Sources

Value creation and capital allocation implications

Corporate structure and capabilities

Build conviction with TNB leadership and employees 2323 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 840MW natural gas- Assets include 2,298MW coal, gas and fired plant and 117.5MW wind plants solar plants.

Vortex Solar UK Tenaga Wind Ventures 50% 80% 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 2424 BUSINESS STRATEGY & DIRECTION Generation Projects

Southern Power Generation 1,440 MW COD: Gas 1st July 2020 Physical Progress: 93% (Planned: 93%)

Note: Data for SPG as at September 2019

TNB Bukit Selambau 30 MW COD: 31st Dec 2020 Solar Physical Progress: 72% (Planned: 72%)

Note: i. PPA Tenure - 21 years ii. Data as at September 2019

2525 BUSINESS STRATEGY & DIRECTION Sustainability - Renewable Energy (RE) & Green Policy

Government Green Development Plan TNB Sustainability Efforts

11th Malaysia Plan 2016 - 2020 0.55 tCO2e/MWh As at FY2016 Reduction up to 45% in GHGs emission intensity of GDP compared to 2005 level by 2030 0.54 tCO2e/MWh As at FY2017 RE installed capacity of 8,885MW by 2020

* The increase in the total installed capacity of RE Total: 2,919MW is based on the adoption of the ASEAN definition As at September 2019: of RE by Malaysia in 2016 which takes into International - 284MW account all types of hydro energy in the Domestic – 2,635MW (include major hydro > 100MW) calculation without limiting their capacities.

1,700MW of RE by 2025 MESTECC RE Target by 2025 Total: 383MW 20% of Total Installed Capacity As at September 2019: • International - 284MW • Domestic - 99MW (exclude major hydro > 100MW) 2626 BUSINESS STRATEGY & DIRECTION Sustainability - TNB’s Renewable Energy (RE) Assets

Domestic International Kedah

 TNB Bukit Selambau Terengganu (30MW) - pipeline  TNB Vortex Solar (182.5MW)  SJ Kenyir (400MW) United Kingdom  TNB Wind Ventures  SJ Hulu Terengganu (265MW) (20.9MW)

 SJ Temengor (348MW) Kelantan  SJ Bersia (72MW)

 SJ Kenering (120MW)  SJ Pergau (600MW)  GAMA Wind (33.8MW)  SJ Chenderoh (41MW) Turkey  GAMA Hydro (39.4MW)  SSJ Sg. Piah (67MW)

Pahang  Biogas (3.2 MW) JV with  SJ WOH (150MW)

 SJ JOR (100MW) Others  SJ Ulu Jelai (372MW) Selangor

 Biomass JV with Felda India  GMR Solar (7.8MW)  TNB Sepang Solar (50MW)  Mini Hydro (10MW)  Floating solar in Sg Labu (10MW) WTP (108kWp)  GSPARX Rooftop Solar (26MW) 2727 BUSINESS STRATEGY & DIRECTION Sustainability – TNB’s Environment Initiatives

Increase in total GHG emissions mitigation from 2,359,770 to 5,030,079 tCO2e through the used of hydro, renewable energy and efficient technology power plant. (Data as at FY2017)

The latest coal generation plants using ultra-supercritical To develop Green House Gas technology consume less fuel per Emission Management System MWh electricity produced in (GEMS), an online system to comparison to conventional coal record and analyse raw emission power plant further contributing data from TNB assets to lower carbon emissions.

50MW Large Scale Solar (LSS), cut Development on microalgae emissions by approx. 64,000 initiative to reduce carbon tCO2e/year, additional 30MW LSS dioxide (CO2) to further reduce emissions after COD in Dec 2020 2828 BUSINESS STRATEGY & DIRECTION Sustainability – 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 , the project provides a physical experience for customers  The CoE will become a training centre for solar energy development and to 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  A street lighting system integrated with communication facilities that operation of electric buses within the campus, such as vehicle leasing allow it to perform various functions such as brightness control, between the Fleet Management and UNITEN. surveillance and digital street signs.

2929 BUSINESS STRATEGY & DIRECTION Sustainability – Breakdown of TNB’s Generation Revenue

0.2% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 2.6% 2.8% 2.7% 2.7% 2.6% 2.0% 1.8% 1.7% 12.6% 11.6% 13.7% 10.8% 10.5% 11.0% 10.4% 11.4%

18.1% 20.0% 19.5% 18.6% 20.7% 22.1% 21.9% 21.2% The Group will continuously strive to ensure that the revenue from the coal generation plants does not not exceed 25% 66.0% 67.3% 62.6% 64.0% 64.7% 65.5% 67.5% 67.1%

FY2018 (A) FY2019 (F) FY2020 (F) FY2021 (F) FY2022 (F) FY2023 (F) FY2024 (F) FY2025 (F) Solar & Wind Hydro Revenue from TNB Generation plants by fuel type Gas (Domestic & International) Coal Other Revenue (Regulated Entities, Subsidiaries & Other Group Revenue) 3030 BUSINESS STRATEGY & DIRECTION Sustainability – TNB’s Social & Governance Initiatives

Social Governance Pillars

Allocated RM10 million for 1,000 students from low-income families in the fields of Science, Technology, Engineering and Mathematics (STEM) Accountability 816 students (596 local & 220 abroad universities) awarded Yayasan Tenaga Nasional (YTN) scholarship Leadership & Effectiveness

UNITEN produced 3,145 graduates with 93.7% employability rate within 6 months Relations With Shareholders

880 trainees under Government’s PROTÉGÉ initiative, Statement on Risk Management compared to 500 trainees in FY2017 & Internal Controls

54 students receive RM1,500/year (2018-2020) & are fully- sponsored to attend value-added self-development programmes Obtained ISO 37001:2016 Anti Bribery Management System certification TNB’s contribution of RM6 million included sponsorships to the Malaysian Hockey Confederation 3131 01 INTRODUCTION TO TENAGA 02 REGULATORY TABLE OF CONTENT 03 BUSINESS STRATEGY & DIRECTION 04 CAPITAL MANAGEMENT 05 FINANCIAL & TECHNICAL HIGHLIGHTS CAPITAL MANAGEMENT Highest Dividend Payout at 56% of Adjusted PATAMI

Dividend Payout (RM’ bn) 1.64 1.81 3.45 3.03 1.71

Dividend Payout (%) 50% 56% 55% Based on PATAMI 27% 25% DIVIDEND POLICY 30% - 60% dividend 4.3% 3.9% payout ratio of Group Dividend Yield 2.6% 2.2% PATAMI, excluding 61.0 Extraordinary, Non- 70.0 55.3 Recurring items 60.0 50.0 29.0 32.0 40.0 44.0 25.0 Dividend Per Share30.0 20.0 22.0 (sen) 19.0 30.3 30.0 10.0 17.0 0.0 10.0 10.0 Interim Final FY2015* FY2016* FY2017 FY2018 FY2019

* Dividend paid based on the previous dividend policy of 40% - 60% of Company’s Annual Free Cashflow from Operations less Normalised Capex and Interest Servicing 3333 CAPITAL MANAGEMENT Gearing Level Registered at 44.4%

Statistics 30th Sept'19 31st Dec'18 RM Equivalent of Loan Value (bil) Total Debt (RM' Bil) 1 47.0 47.8 76.1% Net Debt (RM' Bil) 30.3 29.6

Gearing (%) 44.4 44.8 Net Gearing (%) 28.6 27.7 Fixed : Floating 98:2 95:5 Final Exposure 98:2 95:5

Weighted Average Cost of Borrowing2 5.04 4.98 Final Exposure 5.05 4.99 17.3% * Net Debt excludes deposits, bank and cash balances & investment in UTF ** Inclusive of interest rate swap

5.3% th st 1.2% Cash Position Closing FOREX 30 Sept’19 31 Dec’18 0.1% 30th Sept’19 31st Dec’18 (RM bn) USD/RM 4.19 4.14

Company 11.1 11.0 100YEN/RM 3.88 3.75 GBP/RM 5.15 5.27 Group 16.7 18.2 USD/YEN 107.99 110.28

1 Lower mainly due to repayment of Mizuho Loan (USD300mil) amounting of RM1,242.5mil

Note: Debt consists of Principal + Accrued Interest + Accounting Treatment (FRS139) 2 Increase due to repayment of Mizuho Loan with lower interest rate 3434 01 INTRODUCTION TO TENAGA 02 REGULATORY TABLE OF CONTENT 03 BUSINESS STRATEGY & DIRECTION 04 CAPITAL MANAGEMENT 05 FINANCIAL & TECHNICAL HIGHLIGHTS FINANCIAL & TECHNICAL HIGHLIGHTS Steady Financial Results Continued into 9MFY’19

REVENUE (RM bil) EBITDA (RM bil)

50.4 15.5 47.4 13.9 14.8 14.3 42.8 43.3 44.5 13.4 38.8 12.1

FY'14 FY'15 FY'16 FY'17 FY'18 9MFY'19 FY'14 FY'15 FY'16 FY'17 FY'18 9MFY'19

PAT (RM bil)

7.32 6.91 6.43 6.06

3.75 3.86

FY'14 FY'15 FY'16 FY'17 FY'18 9MFY'19 Note: FY2019 is after MFRS16 implementation 3636 FINANCIAL & TECHNICAL HIGHLIGHTS Consistent Technical Performances

EAF (%) Transmission System Minute (mins)

89.9 1.5 88.8 88.5 04 05 88.1 87.7 0.8 85.5 0.4 0.27 0.1 0.2

FY'14 FY'15 FY'16 FY'17 FY'18 9MFY'19 FY'14 FY'15 FY'16 FY'17 FY'18 9MFY'19

Distribution SAIDI (mins)

55.0 49.7 49.7 50.2 48.2 39.2

FY'14 FY'15 FY'16 FY'17 FY'18 9MFY'19 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

and confidential in nature. TNB has the sole copyright to such information and you are

prohibited from disseminating, distributing, copying,

re-producing, using and/or disclosing this information.

38 THANK YOU

For further enquiries, kindly contact us at:

Investor Relations Office: Investor Relations Team:

CoE Investor Relations 1) Ms. Anis Ramli Group Finance Division Tenaga Nasional Berhad +603 2108 2126 4th Floor, TNB Headquarters [email protected] No.129, Jalan , 2) Ms. AzlinKamal 59200 , MALAYSIA +603 2108 2142

+603 2108 2128 [email protected] 3) Mr. Ahmad Nizham Khan +603 2108 2034 +603 2108 2129 [email protected] [email protected] www.tnb.com.my 4) Mr. Sathishwaran Naidu +603 2108 2133 [email protected]

www.tnb.com.my 39