ELECTRICITY SDN BHD

During the year, Sabah Electricity Sdn Bhd (SESB) focused its activities to improve the quality of electricity supply in the state. A number of projects were implemented to strengthen the supply as well as the transmission system in Sabah and the Federal Territory of . As a result, the number of interruptions recorded in 2003 was 1,733, down from 1,853 in 2002.

SESB Generation

The generation system of SESB is currently firm with an installed capacity of 758MW (including from CORPORATE REPORT 2003 REPORT CORPORATE five IPPs). During the year under review, the total units generated registered 2,940,360MWh with an Energy Generation Mix described below.

Oil (SESB) 29%

Tenaga Nasional Berhad Tenaga Gas (IPP) 25% 62 Hydro (SESB) 15% Gas (SESB) 15% Oil (IPP) 16%

Several generation projects that had been identified for implementation such as the installation of additional steam turbines (conversion to combine cycle mode) in Patau-Patau Power Station and the construction of the Kayumadang open-cycle turbine, were deliberated. The company decided to replace them with the Sepangar Bay Corporation (SBPC) IPP Project.

SESB had a series of negotiations with SBPC and decided to focus on the implementation of a 100MW Combine Cycle. The agreement on the best acceptable tariff has been approved.

SESB has also initiated negotiations for Renewable Energy Purchase Agreement (REPA) with SREP Entrepreneurs. Two agreements have been signed. The first was with Bio-Energy Sdn Bhd (10MW) in Kunak in October 2002, and the second was with Kalansa Energy Corporation Sdn Bhd (5MW) in Beluran in August 2003.

Meanwhile, the Patau-Patau Power Station was awarded the ISO 9001:2000 certification in September 2002. 63

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Tenaga Nasional Berhad Tenaga SESB Transmission

During the year, SESB continued the implementation of the Northern Transmission Grid Project that included the extension of the West Coast Grid connecting the main stations in the northern part of Sabah, namely Kudat, Kota Belud and Kota Marudu through a 170 km transmission line. The objective of this project is to reduce the operational cost in the northern region where these power stations will halt operations by early 2004.

SESB also undertook the East-Coast Transmission Grid Project to connect the IPP stations to SESB’s main power stations in the east coast namely Sandakan, Lahad Datu, Semporna and Tawau through a 327 km transmission line. It was completed in August 2003 and helped reduce operation costs in this region. The Lahad Datu Power Station and Semporna Power Station are expected to stop operations.

The East-West Interconnection Project connects the East-Coast Grid and West-Coast Grid through a 250 km transmission line. Here, the overall operational cost will be further reduced when the transfer and utilisation of cheaper source of energy from the west coast of Sabah takes effect.

The above projects were financed under the Seventh and Eighth Plan. With the completion of the projects, SESB would enhance its services to the people especially the industrial and commercial sectors in the east-coast and northern region of Sabah.

SESB Distribution

The most important programme undertaken by the SESB Distribution Division during the financial year 2003 was the implementation of the T7 strategy. The key initiatives were:-

 CORPORATE REPORT 2003 REPORT CORPORATE Reduce distribution system loss  Improve supply reliability @ Quality  Improve revenue collection

A new disconnection system as a credit control device had been implemented. Several customers including Maxis and Celcom have been incorporated in the bulk payment system.

Tenaga Nasional Berhad Tenaga 64 The total number of customers in Sabah according to tariff is 318,585 and recorded as follows:-

Tariff Nos. %

DM 265,795 83 300,000

CM1 47,472 15 265,795 CM2 78 0 250,000

ID1 2,479 1 200,000 ID2 119 0 PL 2,672 1 150,000

100,000

50,000 47,472 2,479 2,672 78 0 119 PL ID1 ID2 DM CM2 CM1

Energy sold in GWh according to tariff is 2,290.42 and recorded as follows:-

Tariff Energy Sold(GWh) % DM 708.88 31 800 CM1 668.42 29 708.88 CM2 201.88 9 700 668.42 ID1 173.18 8 600 505.58 ID2 505.58 22 500 PL 32.48 1 400 300 65 201.88 200 173.18

100 32.48 0 PL ID1 ID2 DM CM1 CM2

Energy sold according to tariff is RM581,299,533 as follows:- 2003 REPORT CORPORATE

Tariff Energy Sold (RM) DM 160,718,620 CM1 196,830,664 196,830,664 CM2 56,795,692 200,000,000 Nasional Berhad Tenaga

ID1 47,529,393 160,718,620 ID2 109,765,857 150,000,000

PL 9,659,307 109,765,857 100,000,000 56,795,692 47,529,393 50,000,000 9,659,307

0 PL ID1 ID2 DM CM1 CM2 EDUCATION & RESEARCH DIVISION

Introduction

During the year, the Education and Research Division emphasised on the effort to make education and learning, a major organisational process and business, and its contribution to the national agenda whilst turning education into a major revenue earner and a source for professional resources. The synergistic relationship between UNITEN and TNB Research Sdn Bhd (TNBR) in particular provided a useful platform for education and knowledge advancement through research while Tenaga Nasional

CORPORATE REPORT 2003 REPORT CORPORATE Foundation rendered an important contribution by way of financial assistance to deserving students.

The long term strategic reviews currently undertaken for UNITEN are among others, an attempt to put in place a better strategic fit where UNITEN’s maturity into a world class engineering university and centre of excellence, will provide the needed alignment and higher educational values as seen from the quality of its programmes, faculty resources, facilities and graduates. The division through its Tenaga Nasional Berhad Tenaga coordinating activities, has laid down the mechanism where renewal and change become the ingredients 66 for continuous improvement in Universiti Tenaga Nasional. Universiti Tenaga Nasional

Universiti Tenaga Nasional created history when it successfully implemented the Quality System that met the MS 9001:2000 Quality Management Systems for support services and was awarded the Quality System Registration Certificate by SIRIM on 20 June 2003. At the Private Education Night 2003 held on 9 June 2003, the university won two awards from the Minister of Education for “Excellence in Research and Development R&D” and for the highest number of courses accredited by the National Accreditation Board (LAN). These accolades from external bodies have given recognition to Universiti Tenaga Nasional as an excellent university in Malaysia.

The academic programmes offered at Universiti Tenaga Nasional have also been given recognition by professional bodies. Its Bachelor of Engineering degrees are recognised by the Board of Engineers, Malaysia (BEM) and the Institution of Engineers Malaysia (IEM) whilst the Bachelor of Accounting degree is recognised by the Malaysian Institute of Accountants (MIA). At the international level, the accounting degree is recognised by the Association of Certified Chartered Accountants (ACCA), Chartered Institute of Management Accountants (CIMA) and the Institute of Chartered Secretaries and Administrators (ICSA) – all from the United Kingdom. Effort is being made to also gain recognition from the Chartered Public Accountants, Australia (CPA Australia).

Universiti Tenaga Nasional has successfully sealed a Memorandum of Understanding (MoU) with several prestigious foreign universities on cooperation/collaboration for mutual benefit. The universities are the University of Strathclyde, University of Southampton, Lancaster University, University of Liverpool, University of Sussex, University of Newcastle, University of Stirling and the University of Brighton – all from the United Kingdom.

Universiti Tenaga Nasional continues to attract students for higher education in the fields of engineering, information technology, business management and accountancy. As at August 2003, the total number of students was 6,851 of which 5,520 students are in the main campus in Bangi and 1,331 students at the Muadzam Shah Campus in Pahang. The latter number was achieved when the accommodation infrastructure for 1,000 students was completed in May/June 2003. 67

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Tenaga Nasional Berhad Tenaga At the convocation ceremony from 16-17 August 2003, 1,363 graduates received their diploma and bachelor degrees – 771 graduates in the fields of engineering and information technology as well as 575 graduates in business management and accountancy. 17 graduates were awarded postgraduate Master degrees.

More than 11,000 applications have been received from potential students wishing to gain admission into Universiti Tenaga Nasional. However, only 1,984 students were successfully accepted.

Tenaga Nasional Foundation

Annually, a few high achievers of SPM are given the opportunity to study overseas, selected according to the competitive criterias that have been set by the Foundation. These students undertake their pre-university studies locally before pursuing their first year overseas. The Tenaga Nasional Foundation is pleased to mention that some of these scholars were awarded with notable prestigious awards, eg. the Tony Davies Memorial Prize, the Company Prize and the Electronic Engineering Prize for the Shell Technology Enterprise Programme (STEP).

In terms of welfare funding, the Tenaga Nasional Foundation has achieved success in organising the Kem Remaja Bestari 2003, an annual event comprising more than 1,000 students across the peninsula.

CORPORATE REPORT 2003 REPORT CORPORATE This camp gives them further insights on study skills, time management and other tips on how to be successful in their study life. The Tenaga Nasional Foundation is also continuing the establishment and operation of nurseries and kindergartens at various workplaces of TNB, to serve the need of young mothers, especially those who are TNB employees. The Tenaga Nasional Foundation is currently funding and monitoring the running of nurseries and kindergartens at 19 workplaces (catering to 717 children) and 35 tuition centres (catering to 1,987 students).

Tenaga Nasional Berhad Tenaga

68 TNB Research Sdn Bhd

TNB Research Sdn Bhd (TNBR), the research and development (R&D) arm of TNB, is committed to the role of enhancing the national and regional supply of reliable, quality power through R&D projects, laboratory testing and consultancy services.

During the year, TNBR intensified its determination to rapidly translate the T7 challenges into practice. The priority has been beyond the continuum of project management and also focuses on identifying effective and efficient strategies to improve project delivery and customer satisfaction.

With projects focusing on improvement of system and plant availability, reliability, and efficiency, TNBR has made several groundbreaking initiatives in 2003.

Having being awarded the status of an R&D company by the Malaysian Industrial Development Authority (MIDA) in August 1997, it allows organisations that use its services and expertise to enjoy a double taxation exemption on the amount spent for research purpose.

TNBR is committed to the quality of its research works and testing services by being the first R&D company in the country to be awarded the MS ISO 9001 certification (for the implementation and management of R&D Projects) in March 1999. In April 2000, TNBR successfully attained the Laboratory Quality System Accreditation in accordance with the requirement of the ISO 17025 Standard. As at 31 August 2003, five laboratories (Transformer Oil Testing, Environment, Fuel Testing, Advanced Material and Battery Testing) have successfully been accredited.

The TNBR Post Graduate Center, established in February 2002, was to encourage postgraduate students from UNITEN to participate in the research programmes of TNBR, thus advancing the pursuit of research and education under the guidance of experienced mentors. Building upon the initiative highlighted by the Minister of Energy, Communications and Multimedia, TNBR has successfully ventured into the Electricity Roadmap project for TNB. The Electricity Roadmap would serve as a guide for the research agenda on electricity technology application and ensure that the electricity needs can be met efficiently.

On its commitment for social obligations, TNBR has successfully embarked on a project to supply solar electricity in Kampung Denai, a remote orang asli settlement area in Rompin, Pahang.

In Sabah, TNBR has joined forces with SESB to curb the trash rack problem at the Tenom Pangi Hydropower Station which could further improve plant availability.

In recognising that the quality of R&D depends on the success in recruiting, educating and training of the talented researcher pool, personnel development programmes such as Saturday Colloquium and on-the-job training were established to nurture researchers committed to support our core business.

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Tenaga Nasional Berhad Tenaga LOGISTIC SUPPORT AND PROJECT SERVICES DIVISION

During the year under review, the Logistic Support and Project Services Division was focused on aligning its strategies towards the transformation process in the T7 strategy. Effort was placed on putting the house in order with emphasis on the seven building blocks that make up the house. Realising the CORPORATE REPORT 2003 REPORT CORPORATE importance of having a committed and efficient workforce, the division placed emphasis on instilling the shared values of TNB into its work culture. During the year, the division also completed its strategic initiative - ‘manage project specifications on logistic requirements of TNB’.

Tenaga Cable Industries Sdn Bhd

Tenaga Nasional Berhad Tenaga Tenaga Cable Industries Sdn Bhd (TCI) is in the business of manufacturing and distribution of a wide 70 range of power cables including low to medium voltage XLPE (cross linked polyethylene) cables (up to 66kV), aluminium and aluminium alloy rods and low voltage general cables.

TCI provides quality products that meet the various international standards such as International Electrotechnical Commission (IEC) Specifications, British Standard (BS), Japan Institute of Standards (JIS) and American Society for Testing and Materials (ASTM) Standards. TCI provide total cabling solutions. It is able to provide engineering services from the design of power cabling systems and transmission lines to the actual installation and maintenance of these systems.

Tenaga Switchgear Sdn Bhd

Tenaga Switchgear Sdn Bhd (TSG) fulfils the local and regional demand for high voltage switchgears. It manufactures 275kV and 132kV Gas Insulated Switchgears (GIS), Gas Circuit Breakers (GCB) and Disconnectors (DS). TSG also participated in turnkey construction projects and specialised switchgear maintenance.

During the year, TSG increased its involvement in specialised switchgear maintenance with emphasis in critical and specialised services that is currently performed by Original Equipment Manufacturers (OEMs). TSG’s advantage in the basic knowledge of the manufacturing field has allowed for it to provide and assist TNB with maintenance services.

The maintenance services for the GIS, GCB and DS, help support TNB in ensuring that the TNB network system is reliable with minimum breakdown time. TSG has also embarked on retrofitting the Bersia and Kenering power station project, Kuala Lipis, Kelemak and a few stations under TNB Transmission and SESB. It will also work on retrofitting and overhauling of the 275/132kV GIS works for the KL East substation.

Quality products and services are very important to TSG. It has introduced initiatives for improvement that include the establishment of technical training modules and an evaluation system for its technical personnel. It has also adopted work processes to increase productivity and efficiency. As a result, TSG has been certified ISO9001:2000 by SIRIM. 71

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Tenaga Nasional Berhad Tenaga Malaysia Transformer Manufacturing Sdn Bhd

The manufacturing plant at Malaysia Transformer Manufacturing (MTM) with its state-of-the-art testing equipment is operated by competent technical specialists who apply cutting edge technology solutions to drive operations. With an annual plant capacity of up to 3,000 MVA of distribution transformers, 2,500 MVA of 33kV power transformers and 3,000 MVA of 132 and 275kV transformers, MTM has been able to provide a range of services to its customers including retrofitting and refurbishment of power transformers. Among the successful jobs undertaken are the Kapar Power Station, the PMU Plentong and Pergau Power Station.

MTM is the first Malaysian manufacturer of transformers to attain the ISO9001:1994 certification covering design, development and manufacturing. MTM products have conformed to numerous international

CORPORATE REPORT 2003 REPORT CORPORATE standards that include IEC, BS, DIN and JIS. On 14 January 2003, MTM raised the bar again with the attainment of the MS ISO9001:2000 certificate awarded by SIRIM QAS International Sdn Bhd.

TNB Engineers Sdn Bhd

Tenaga Nasional Berhad Tenaga During the third quarter, the generation project functions of TNB Engineers Sdn Bhd (TNBE) were transferred to the Generation Division. Thereafter in the fourth quarter, the Project Services Division 72 merged with the Logistic Support Division to become Logistic Support and Project Services Division. On 1 September 2003, the transmission projects functions of TNBE and its personnel were transferred to the Transmission Division.

During the year, TNBE executed strategies that correlated with the building blocks of the T7 process. The migration from ISO9001:1999 to ISO 9001:2000 demonstrated the strong quality culture inculcated into TNBE. Emphasis on increasing employee technical competencies, improving quality project delivery and optimising operational spending were TNBE’s main objectives during the year under review.

Most of TNBE activities were focused primarily on the implementation of TNB transmission projects encompassing 500kV, 275kV and 132kV substations, overhead lines and underground cables. Some of the major projects implemented were the Air Tawar-Janamanjung Power Station 500kV double-circuit overhead transmission lines and the 275 and 132kV overhead transmission lines “loop-in-loop-out” into TTPC Perlis Power Station. TNBE also extended its engineering and project management services to Sabah Electricity Sdn Bhd in the implementation of the Sabah West Coast Grid Project and the East- West Transmission Grid Interconnection Project.

In the generation sector, TNBE managed the implementation of projects that included the refurbishment and rehabilitation of the Sultan Salahuddin Abdul Aziz Power Station Phase 1 & Phase 2 Control & Instrumentation, the 330MW Gelugor Power Plant Combined Cycle Conversion, Tuanku Jaafar Power Station Relocation & Demolition, and the Diesel Power Plant Projects for Pulau Redang and Pulau Perhentian in Terengganu, and Pulau Ketam in Selangor.

In addition, TNBE carried out hydro dam surveillance and monitoring works, feasibility studies for the proposed Ulu Jelai hydro project, contractors pre-qualification for Kenyir 2 hydro project, the replacement and upgrading of the governor and exciter system for the Temenggor dam, the desilting of dams and the control and instrumentation rehabilitation for the Cameron Highlands hydro electric scheme.

In line with the vision to be a key player in the energy business, TNBE also provided project management and engineering services to various other external customers locally and in Brunei. TNB Engineering Corporation Sdn Bhd

TNB Engineering Corporation Sdn Bhd (TNEC) continued to provide a supporting role within the Group as a turnkey contractor and project packager with focus on EPC contracting and project development in the energy sector within TNB and the external market.

During the year, major on-going projects secured by TNEC include the Sabah Electricity Distribution System Development project under RMK-8, and the Supply and Erection of 16 transmission system substations of 132kV and 275kV. TNEC is also undertaking the development of the 240MW Open Cycle Pulau Bunting project in Kedah. In the year under review, TNEC completed the Gelugor Combined Cycle Conversation project in Pulau Pinang.

With the view to improving shareholders’ value and in line with TNB’s T7 strategy, TNEC had during the year optimised its operational and capital spending through the sharing of resources within TNB subsidiaries and through an innovative procurement system.

Workshop Services Department

During the year, the Workshop Services Department underwent a restructuring to operate as a cost centre with services rendered on Rechargeable Job Order (RJO). It will continue to provide integrated 73 services such as vehicle repair and generator set services where an expansion of these core services is seen.

In addition to its existing branches in Malim Nawar, Perak and Gong Badak, Terengganu, additional branches will be set up at Chain Ferry, Pulau Pinang and Johor Bahru.

Freight Forwarding Department 2003 REPORT CORPORATE

On 1 March 2003, TNB Logistics Sdn Bhd was restructured as part of the transformation process to become the Freight Forwarding Department (FFD). In the realignment, the role of FFD is to provide logistics support to TNB’s core businesses, ensuring logistics cost optimisation and improvement in project planning and delivery.

Tenaga Nasional Berhad Tenaga Security Services Department

The Security Services Department plays a contributory role to the security and safety of all divisions in TNB especially the core divisions of Generation, Transmission and Distribution where the Company’s installations and buildings are deemed critical. All security personnel are highly trained to ensure the safeguard of the Company’s offices, power plants and sub stations. ICT DIVISION

The need to be relevant to customer needs in an age when Information and Communication Technology (ICT) seems a natural landscape is of paramount importance for TNB. In recent years, the adoption of ICT has played a crucial role in enabling a more reliable and cost effective supply of electricity. Technologies like SCADA and EMS have benefited customers through the automation of processes that manage the delivery of electricity.

Due to the convergence of the ICT and electricity industries, there are now potential revenues to be gained through leveraging TNB’s infrastructure. As a result, the ICT Division was established on 31 July CORPORATE REPORT 2003 REPORT CORPORATE 2002 to consolidate and synergise all support services to ensure optimum utilisation of skills and resources. This indeed personifies our embracement of the transformation process that would contribute to the streamlining of applications, and the development of products and services in generating additional revenue for the Company.

Tenaga Nasional Berhad Tenaga In the light of TNB transforming to become the best performing company in Malaysia by 2007, the ICT Division is committed to creating a more fast moving and dynamic working culture in line with the 74 requirements of the ICT industry. All units in the ICT Division namely the IT Department, the Communication Department, Fibrecomm Network (M) Sdn Bhd and the ICT Coordination Unit, collaborate and work closely together to provide a total ICT solution for the TNB Group as well as to external customers. Specifically, these include internal and external ICT initiatives, coordination of the Group’s ICT function, planning and developing ICT infrastructures and applications, executing ICT projects, providing services and managing the ICT assets of the Group.

IT Department

The IT Department provides key IT products and services to the TNB Group and Subsidiaries. In helping to transform the Company, the IT Department is currently managing and implementing an Enterprise Resource Management System (ERMS) project nationwide. The project comprises several modules including Financial Management, Project Management, Materials & Inventory Management, Plant Maintenance, Asset Management, Business Information Warehouse and Enterprise Portal. The modules provide timely and accurate information for prompt decision-making that is essential for an organisation to maintain a competitive edge.

In today’s era of digital technology, the IT Department has embarked on several initiatives to increase knowledge collaboration, information sharing and ensuring continuous and reliable communication through the tools of ICT. This includes implementing 25 sites nationwide with the Enterprise Video Conferencing System (EVCS) and enhancing the in-house web based applications to ensure dependable and permanent communication channels to the 12,000 active corporate e-mail users.

The e-CIBS (Enhanced Customer Information Billing System) is being upgraded with the addition of extra services to help TNB understand the customers better whilst enhancing customer relationships. The IT Department is also responsible for migrating the e-HRMS (Human Resources Management System) to an integrated platform to increase the performance of the workforce. 75

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Tenaga Nasional Berhad Tenaga A new Human Resources Competency-based Performance Management System (CbPMS) was recently launched. The tool, a revamp of the previous Staff Appraisal system, is being developed in-house based on the Open Source Software (OSS). CbPMS is used to manage staff performance appraisal and is scheduled to roll out in stages from September 2003.

To effectively support these major applications/systems as well as the anticipation of more multimedia applications planned for, the network backbone is also being upgraded to cater for increased bandwidth and tighter security controls. At present, network and systems availability averaged at better than 99.5 per cent.

Having recently successfully completed its migration to ISO 9001:2000, the IT Department will continue to provide quality products and services to the Group and its Subsidiaries.

CORPORATE REPORT 2003 REPORT CORPORATE Communication Department

The Communication Department plays a critical role in developing, operating and maintaining TNB’s telecommunications network and services. It aims to serve the needs of the TNB Group in respect to its operation, business and administrative application. TNB’s telecommunication network comprise large network of fibre optics with a total route length of 5,700 km. During the year, 900 km of fibre optics

Tenaga Nasional Berhad Tenaga were added to the network. Another 1,200 km of fibre optics will be installed next year. 76 A project to install SDH (Synchronous Digital Hierarchy), access multiplexers and protection signalling equipment for 80 main intake substations was carried out during the year. The objective of the project is to extend TNB’s existing fibre optic communication network to TNB’s last mile fibre optic system for providing communication facilities for approximately 120 TNB business offices. At the same time, existing Power Line Carrier (PLC) systems are being upgraded with modern, high-speed, secure and reliable communication facilities for power system operational applications such as SCADA and digital tele protection channels. The project, to be completed by November 2003, would enhance TNB’s operational, administrative and business performance.

A major initiative to replace TNB’s ageing 34Mbit/s PDH (Plesiochronous Digital Hierarchy) telecommunication backbone network will be carried out in the coming financial year. This new network comprises next generation SDH equipment operating at transmission speeds of up to 2.4GBit/s. It will provide a reliable and resilient communications network. The network will be equipped with a powerful Network Management System to provide round the clock monitoring and management facilities. This high speed and fully manageable network will provide current and future bandwidth requirements for power systems operations and business applications.

The successful deployment of TNB’s ICT initiatives such as ERMS (Enterprise Resource Management System), EWRM (Enterprise Wide Risk Management System), Video Conferencing, telemetering and other intranet applications heavily rely on this access and backbone network. The service performance of the telecommunications network has continuously improved reaching a service availability of 99.90 per cent during the year (99.86 per cent in the previous year).

The department has been doing testing and evaluation of the digital power line communication (DPL) on low and medium voltage power lines with encouraging results. The DPL technology aims to provide last mile broadband communications to customers. Pilot projects are scheduled for implementation in 2004.

Continuous efforts are being undertaken by the Communication Department to improve the reliability, availability and performance of the telecommunication service. These include the installation of backup optical cables, operationalisation of the telecommunications control centre and the use of SDH technology to ensure TNB Group operation and business are well supported. Fibrecomm Network (M) Sdn Bhd

Fibrecomm was established in 1997 to address opportunities within the booming Information Communication Technology (ICT) industry. TNB holds a 59 per cent stake in Fibrecomm while the remaining 41 per cent is held by Celcom Transmission (M) Sdn Bhd.

In line with its vision to be the preferred network service provider over powerline infrastructure, Fibrecomm is striving to add value to the existing national power infrastructure. By maximizing utilisation of TNB’s power infrastructure, Fibrecomm is able to shorten time to market its services as well as gain of a significant cost-saving that can then be passed on to Fibrecomm’s end user customers.

Fibrecomm positions itself as a carriers’ carrier, whereby its target market is made up of other service and application providers. Fibrecomm provides an integrated end-to-end network solution to customers through utilisation of the latest technology platforms that are available in the market such as Synchronous Digital Hierarchy (SDH), Frame Relay and Dense Wavelength Division Multiplexing (DWDM). Fibrecomm’s products and service portfolio includes connectivity services, managed services and facilities based services.

Presently, Fibrecomm has installed approximately 3,000 km of fibre network, complementing the 5,700 km of fibre optic network owned by TNB. To date, 20 Points-of-Presence (POPs) have been established to assist Fibrecomm in extending its network reach. The dual ring configuration of the fibre optics network ensures resiliency and reliability, which is critical in order to compete effectively in the market.

For the financial year ended December 2002, Fibrecomm registered a total turnover of RM31.6 million, recording a 20 per cent growth as compared to the previous financial year. Profitability margin stood at 34 per cent. The top revenue contributors were Celcom, MIMOS, TNB Group, AIMS and Nasioncom. In addition, Fibrecomm has managed to secure additional deals from MIMOS in 2003 with an annual value of approximately RM5.7 million. Through partnerships with global service providers, Fibrecomm has also been able to enhance its revenue stream.

ICT Coordination Unit 77 The ICT Coordination Unit plays a critical role in supporting the operational units to ensure successful coordination and synergy of all ICT initiatives for TNB group. The Unit provides support services in planning, finance, human resource and general divisional administration.

CORPORATE REPORT 2003 REPORT CORPORATE

Tenaga Nasional Berhad Tenaga