INVESTOR PRESENTATION

COE – INVESTOR RELATIONS 01 INTRODUCTION TO TENAGA

02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND POLICY

05 FY2020 OUTLOOK

06 APPENDIX INTRODUCTION TO TENAGA Regulatory & Shareholding Structure

REGULATORY & SHAREHOLDING STRUCTURE LEADERSHIP POSITION

PRIME MINISTER / TNB Market Cap CABINET As at 25th Nov 2020: RM62.6bn • Ranked 1st for Utilities Company • Ranked 3rd in KLCI

Shareholders Policy Maker Ministry of Energy and Natural Ministry of Finance Holds Sdn Bhd (SESB) ‘Golden’ Resources (KeTSA) (83% owned by TNB) Share a) Khazanah Dependable Capacity: 1,223MW b) PNB c) EPF 70.1% Implementor Bhd (TNB) d) KWAP ENERGY COMMISSION (Regulator) e) Other Govt. Agencies - Promote competition - Protect interests of consumers Local Corp. & Retail 15.6% - Issue licenses - Tariff regulation Foreign 14.3%

Market Participant

Sarawak Energy Bhd Tenaga Nasional Berhad IPP (SEB)

CONSUMERS 3 Note: Data / Info as at 30th Sept 2020 3 INTRODUCTION TO TENAGA Regulated & Non-Regulated Business

Generation Grid/Transmission Distribution Network & Retail Non-Regulated Business Regulated Business

TNB Generation Mix: Installed Capacity: Distribution Network Length: 25,122MW Transmission Network Length: 683,008KM TNB: 14,591MW @ 58.1% Solar 0.1% IPP: 10,532MW @ 41.9% 23,964KM Distribution Substations: Hydro 5.5% Generation Market Share: 83,467 61.5% Transmission Substations: Core Business Core 456 Gas & LNG 28.4% SAIDI: Equivalent Availability Factor 33.9mins (EAF): Transmission System Minutes: Coal 65.9% 88.3% Customer Satisfaction Index (CSI): Note: TNB installed capacity & Market Share 0.05 mins are based on gross capacity 8.1

Source: TNB Data / Info as at Sept 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. Core Business Core

- • GSPARX Sdn. Bhd. (ILSAS) Manufacturing • TNB Energy Services Sdn. Bhd. • TNB Research

• TNB Engineering Corporation Sdn. Bhd. • University Tenaga Nasional (UNITEN) Non • Tenaga Sdn. Bhd. • Integrax Bhd. • Malaysia Manufacturing Sdn Bhd. • Allo Technology Sdn. Bhd. • Tenaga Cables Industries Sdn. Bhd. 44 INTRODUCTION TO TENAGA Vertically integrated utility company serving more than 9mil customers throughout Peninsula Malaysia

TNB Sectoral Sales Analysis*

0.9% 1.6% 2.1% Total 82,283.6 GWH Unit Sold 24.0% 27.5%

Total RM180.5bn Assets 81.8% 38.3% 32.4%

Total TNB: 9.3mn Customers SESB: 0.6 mn

36.0% 38.0% 0.3%, Industrial 17.0% Total 35,698 Employees NO OF CUSTOMER SALES (RM) SALES (GWH)

Industrial Commercial Domestic Others

Note: Data / Info as at Sept 2020 * only (TNB exclude SESB and other subsidiaries) 55 INTRODUCTION TO TENAGA Electricity demand is in line with GDP; 3QFY’20 maximum demand neared prior year level reflects improved economic traction

TNB (Peninsula) Maximum Demand

3QFY’20 3QFY’19 Variance (%) Maximum 16,570 16,894 (1.9) Demand (GWh)

TNB (Peninsula) Yearly Peak Demand

* MW 18,808 18,566 18,338

17,788 17,790 *Recorded at:

10 Mar’20 16,901 16,822 at 1630hrs 16,562

15,826

15,476

FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 Note: i. Data / Info as at Sept 2020 ii. Peninsular Malaysia only (TNB exclude SESB and other subsidiaries) 66 INTRODUCTION TO TENAGA TNB’s global presence in six countries

• 55% equity ownership in Vortex Solar Investments S.à.r.l, United 24 operational solar PV farm portfolio of 365MW (May 2017) Kingdom United • Tenaga Wind Ventures UK Ltd, 53 operational onshore wind Kingdom portfolio of 26.1MW (Feb 2018)

• 30% equity ownership in GAMA Enerji A.Ș. (Apr 2016) Turkey Turkey • Assets include 853MW (gas), 117.5MW (wind) & 131.3MW (hydro) Kuwait • 6% equity ownership in Shuaibah Independent Water & Power Project (IWPP)(Aug 2005) Saudi Arabia 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 ENERGY • Liberty Power Ltd 235MW (Sept 2001) BUSINESS IN SPECIFIC MARKETS BY LEVERAGING Pakistan • REMACO O&M Services - Bong Hydro Plant (May 2011) • REMACO O&M Services - Balloki Power Plan (July 2018) ON ITS INTERNATIONAL AND DOMESTIC • India 30% equity ownership in GMR Energy Ltd (Nov 2016) EXPERIENCE, CAPABILITIES AND ASSETS • Assets include 1,915MW coal, gas and solar plants

77 01 INTRODUCTION TO TENAGA

02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND POLICY

05 FY2020 OUTLOOK

06 APPENDIX 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) 99 INCENTIVE BASED REGULATION (IBR) Regulatory Period 2

AverageAverage Tariff Tariff by by EntitiesEntities (sen/kWh) (sen/kwh) Fuel Parameters COAL USD75/MT (RM14.47/mmbtu @ RM4.212/USD) BaseBase tariff tariff for RP2 for RP2 (sen/kWh)(sen/kWh) RP1 : USD87.5.MT @ RM3.100/USD

LNG RM35/mmbtu RP1 : RM41.68/mmbtu

REGULATED RM24.20/mmbtu (Jan’18 - Jun’18) RM25.70/mmbtu (Jul’18 - Dec’18) Single Buyer Single Buyer Grid System Transmission Distribution Customer Base Tariff GAS RP2 Forecasted Gas Generation Operations Operator Network service/ @1,000mmscfd RM27.20/mmbtu (Jan’19 - Dec’20) Utilization: 840 mmscfd Retail RP1 : RM15.20/mmbtu – RM22.70/mmbtu

RP2 Parameters Average Tariff by Sectors (sen/kwh) WACC TARIFF CAPEX 7.3% 39.45 sen/kwh RM18.8bn* Commercial 46.93 47.92 RP1 : 7.5% RP1 : 38.53 sen/kwh (approved CAPEX) RP1 : RM15.7bn Base Tariff 39.45 OPEX AVG. RAB (Closing CAPEX) 38.53 RM18.2bn RM54.8bn *Special project approved Industrial 36.85 36.15 (approved CAPEX) (avg. RAB in 2020 ➢ 1.5 million smart meters in homes ➢ 367,00 LED streetlights RP1 : RM16.9bn RP1 : RM43.6bn 32.95 ➢ Fibre Optic network development for Domestic (Closing CAPEX) 31.66 RP2 RP1 (Closing RAB) energy security & reliability RAB : Regulated Asset Based 1010 INCENTIVE BASED REGULATION (IBR) Interim Year 2021

Regulatory Period Timeline

INTERIM YEAR RP2 (2018 – 2020) 2021 RP3 (2022 – 2024)

2018 2019 2020 2021 2022 2023 2024

➢ Energy Commission (EC) has agreed for RP3 to be in 2022-2024, and RP2 to be extended (FY2021 – Interim year).

➢ This is to allow TNB and EC to understand and determine: a) The starting base of demand and CAPEX for the next RP. b) Better fuel prices forecast to minimise huge fluctuation in the ICPT.

➢ EC has accepted TNB’s proposal on the interim year for 2021. In general, it will be similar as per RP2 in term of the yield and will have the same level of base tariff and average CAPEX

➢ TNB is expected to received EC’s Interim Year final determination by end of 2020 after obtaining the cabinet’s approval.

1111 01 INTRODUCTION TO TENAGA

02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND POLICY

05 FY2020 OUTLOOK

06 APPENDIX REIMAGINING TNB TNB's strategic aspiration – a key enabler is the corporate structure 4 STRATEGIC4 STRATEGIC PILLARS PILLARS

Future Generation Future Grid of the Future Winning the Customer Sources Proof Regulations • Growing TNB’s renewable capacity • Upgrading existing network • Enhance experience through all • Working together with key • Expansion of capacity into selected infrastructure into a smart, customer journeys stakeholders towards a stable and international strategic markets with automated and digitally-enabled • Growth through innovation of new sustainable regulatory landscape strong growth prospects network solutions and service offerings • Improving performance of existing • Optimising network’s productivity, • Strengthen digital presence via generation fleet efficiency and reliability digital solutions, interactions and • Leveraging innovation in the enterprise network to transform customer experience

TNB Power Generation TNB Retail Sdn Bhd (TPGSB) Sdn Bhd

Operation Date: Operation Date: October 2020 (completed) January 2021 1313 REIMAGINING TNB TPGSB’s three key uplift strategies focusing on performance, growth & efficiency

Performance & Growth Efficiency

Performance • Turnaround • Digital • Productivity • Achieve high reliability for key • Unlock asset potential and • Implement digital strategy and • Enhance workforce assets enhance performance of deploy efficiency measures to productivity • Ensure no forced outages TNB’s generation power contribute to group • Reskill and re-deployment of plants through: sustainability workforce o cost savings • Optimise heat rate through Growth o cost avoidance digital levers and drive • Capture new plantup and o better inventory intelligent asset operations to repowering opportunities management achieve cost savings • Deliver plants in pipeline • Grow Operation & Maintenance (O&M)

Build growth story Procurement excellence Other Strategic Prepare for repowering to support Drive cost savings from commercial & Priorities system post 2025 process levers 1414 TO BE A LEADING PROVIDER OF SUSTAINABLE ENERGY SOLUTIONS IN MALAYSIA AND INTERNATIONALLY Our pledge in powering the lives of our customers and communities through renewable energy, supporting Malaysia’s commitment in reducing the GHG emission intensity and environmental impact Government Green Development Plan TNB Sustainability Commitments

TNB RE Target of 8,300MW by 2025

Malaysia RE Target by 2025 TNB RE Capacity 20%* As at November 2020: of total Installed Capacity Total: 3,390MW

*exclude large hydro • Domestic : 2,724MW • International : 666MW

Note: 8,300MW includes domestic and international RE assets, including large hydro

The Group aspires to ensure that the revenue from the coal generation plants does not exceed 25% Reduction up to 45% in GHGs emission intensity of GDP compared • The major coal plants’ PPA are expiring with no like-to-like replacement, to 2005 level by 2030 therefore our coal related revenue will not exceed 20% by 2030 • TNB has pledged not to invest in greenfield coal plant (Jimah East Power which was commissioned in 2019 is the last new coal plant for TNB) 1515 TO BE A LEADING PROVIDER OF SUSTAINABLE ENERGY SOLUTIONS IN MALAYSIA AND INTERNATIONALLY Our journey towards transitioning into a cleaner and sustainable energy provider TNB’s RE Capacity TNB’s RE Strategy

WIND International: International • UK (TNB Wind Ventures): 26 MW 144 MW 1) Renewable Energy Driver (UK / Europe) • Turkey (GAMA): 118 MW 2) Growing TNB’s utility business in South East Asia (SEA) Update: Completed the acquisition of the remaining 20% stake in TNB Wind Ventures, 3) Technology Catalyst UK in March 2020 with a total combined capacity of 26.1 MW (please refer to REIMAGINING TNB : JOURNEY TO SUSTAINABLE FUTURE - INTERNATIONAL BUSINESS slide for more details) International: • UK (Vortex): 365 MW SOLAR • India (GMR): 26MW Focus Market Domestic: 544 MW • TNB’s growth strategy will focus on selected growth markets and regions where we • Large scale solar: 80 MW have presence (UK, Europe and South East Asia) and specific asset • Rooftop PV: Total 73 MW (secured capacity) classes/technology that are key to the Energy transition. Updates: • Completed the acquisition of additional 5% controlling stake in Vortex • The country selection is based on fit to TNB strategy, elimination of high-risk Solar, UK in September 2020 countries, power growth, market attractiveness and openness to foreign • Participated in the bidding for Large Scale Solar (LSS) 4 with maximum investments. capacity of 50MW in Malaysia

BIOGAS & BIOMASS Domestic: Domestic 13 MW • Biogas: 3MW 1) Win LSS - Largest driver which focuses on winning local LSS bids, exploration of • Biomass: 10MW new entry points through NEDA and Green Corporate PPA as well as expansion on Asset Management Services. HYDRO International: Turkey (GAMA): 131 MW Domestic: 2) Secure Small RE - Focus on mini hydro, biogas and Waste to Energy through the 2,689 MW • Large Hydro: 2,536 MW existing Feed-In Tariff Scheme and other initiatives. • Mini Hydro: 22 MW 3) GSPARX – To be the top solar distributed generation provider in Malaysia with end Updates (Upcoming Domestic Mini Hydro): to end delivery. • Sg. Tersat, Kuala Berang (4MW), to be COD in Dec 2020 • Sg. Telom, Lemoi, Jelai Kecil (45 MW) – currently in negotiation • Sg. Pelus (26 MW) – currently in negotiation 1616 TO BE A LEADING PROVIDER OF SUSTAINABLE ENERGY SOLUTIONS IN MALAYSIA AND INTERNATIONALLY Towards 2025, TNB will aim to grow its renewable energy business in specific markets by leveraging on its international and domestic assets, capabilities and experience

Ground Zero 0 Value Protection & Creation Value Protection or Value Creation for existing assets for Existing Assets

• Driving sustainability for TNB group within the RE market by establishing a Renewable Asset Co (RACo) platform with a higher capacity target Ambition #1 through acquisitions leveraging on existing assets, capabilities and 1 Renewable Energy Driver experience. (UK / Europe) • Developing greenfield RE projects under a RE Developer Co (ReDevCo) platform and provide a pipeline of future operational assets to RACo

Ambition #2 Grow revenue and returns through greenfield development and M&A across 2 Growing TNB’s utility business in the utility value chain (RE, conventional generation and utility type business) South East Asia leveraging of TNB’s core business experience and capabilities.

Ambition #3 Future proofing TNB with the right technologies within the Energy transition 3 Technology Catalyst landscape

1717 TRANSITIONING AWAY FROM COAL RELATED REVENUE The group aspires to ensure that the revenue from the coal generation plants does not exceed 25%

Breakdown of TNB's Group Revenue 0.2% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 2.6% 2.4% 2.7% 2.7% 2.6% 2.0% 1.8% 1.7% 10.4% 11.4% 12.6% 13.0% 13.7% 10.8% 10.5% 11.0%

20.0% 17.2% 15.8% 22.1% 21.9% 21.2% 19.5% 20.7%

TNB has pledged not to invest in greenfield coal plant (Jimah East Power which was commissioned in 2019 is the last new coal plant for 67.4% 68.5% 67.5% 67.1% 62.6% 64.0% 64.7% 65.5% TNB)

The major coal plants’ PPA are expiring with no like-to-like replacement, therefore our coal FY2018 (A) FY2019 (A) FY2020 (F) FY2021 (F) FY2022 (F) FY2023 (F) FY2024 (F) FY2025 (F) related revenue will not exceed Other Revenue (Regulated Entities, Subsidiaries & Other Group Revenue) Coal 20% by 2030 Gas Revenue from TNB Generation Plants Hydro by fuel type (Domestic & International) Solar & Wind 1818 TNB’S ENVIRONMENTAL 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

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

Promoting green energy by introducing optional green tariff (myGreen+) and tradable RE Certificate (MGATS) 50MW Large Scale Solar (LSS), cut emissions by Total Subscription 106,400 kWh with a approx. 57,174 tCO2e/year, additional 30MW LSS to total of 131 customers as at 24th further reduce emissions about 35,840 tCO2e/year November 2020

Renewable Energy Certificates of 1,653,630.273 tradable units as at September 2020

Development on microalgae initiative to reduce carbon dioxide (CO2)

Note : tCO2e (tonnes of carbon dioxide equivalent ) 1919 01 INTRODUCTION TO TENAGA

02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND POLICY

05 FY2020 OUTLOOK

06 APPENDIX DIVIDEND POLICY Distribution of dividend is based on 30% to 60% dividend payout ratio, based on the reported Consolidated Net Profit Attributable to Shareholders After Minority Interest, excluding Extraordinary, Non-Recurring items

Current dividend policy effective FY2017

25% 27% 25% 50% 50% 56% 59%

4.3% 140.0 3.9% 3.8% 5.0% 2.3% 2.6% 120.0 2.2% 1.9% 3.0%

100.0 1.0%

80.0 50.0 -1.0% 60.0 -3.0% 40.0 44.0 23.0 20.0 -5.0% 20.0 19.0 19.0 22.0 30.3 30.0 -7.0% 17.0 22.0 0.0 10.0 10.0 10.0 -9.0% FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Interim dividend per share (sen) Final dividend per share (sen) Dividend Payout ratio (%) based on adjusted Group PATAMI Special dividend per share (sen) Dividend Yield (%) - exclude special dividend 2121 01 INTRODUCTION TO TENAGA

02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND POLICY

05 FY2020 OUTLOOK

06 APPENDIX FY2020 OUTLOOK

• After RMCO was announced in June 2020, demand and sales have improved between the period as almost all business are allowed to operate.

• However in October, sales slightly decreased in commercial and domestic sectors.

Electricity • We will continuously monitor the demand and sales as the country is currently facing the third wave of Demand Covid-19. • For the full year, we expect the overall electricity consumption to drop between 6-10% Y-o-Y.

• Nevertheless, earnings of our regulated revenue cap entities are guaranteed at demand growth of 1.8% - 2.0% as stipulated by the IBR guidelines in RP2.

• Our cash flow is resilient supported partly by the recent capital drawdown. Furthermore, we commanded Cash Flow good rates in the exercise due to our robust and strong balance sheet.

• For 9MFY’20, the allowance for doubtful debt is RM221.5mil.

2323 FY2020 OUTLOOK

• For 2020, we will be executing a strategy aimed at either protecting or creating value, mainly focusing on growing TNB’s international Renewable Energy business leveraging on existing assets, capabilities and experience.

• Our immediate strategy is to grow TNB’s international Renewable Energy business to sizeable International portfolio through : a) acquisitions of operational assets Business b) greenfield development

• Our focus on Renewable energy is further supported by our observations of the global energy market during Covid-19 induced lockdowns. During this period, RE has shown to be a resilient source, where it has even increased market share amidst changing demand and supply dynamics of the sector.

CAPEX RM9.5 – 10.0 bil • Regulated Recurring : RM5.0 – 5.5bil • Others : RM4.0 - 5.0bil

We will continue to honour our dividend policy of 30% to 60% dividend payout ratio, based on the Dividend reported Consolidated Net Profit Attributable to Shareholders After Minority Interest, excluding Policy Extraordinary, Non-Recurring items.

2424 01 INTRODUCTION TO TENAGA

02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND POLICY

05 FY2020 OUTLOOK

06 APPENDIX APPENDIX TNB Shareholding Structure Top 10 KLCI Stocks by Market Capitalisation RM bil Berhad 18.5 93.3 (3.9%) 17.4 97.1 Permodalan Nasional Berhad 73.4 (PNB) 17.5 Public Bank (2.8%) 15.5 75.5 Employees Provident Fund Board (EPF) TNB 65.2 (13.6%) 5.6 75.4 Kumpulan Wang Persaraan 7.1 (%) 1.2 56.7 (KWAP) 27.3 +371.4% 1.4 Corporations 12.0 Other Government Agencies 25.7 14.5 Chemicals 53.2 (9.5%) 58.8 18.4 Local Corporation & Retail 15.6 Hartalega Holdings 50.2 +171.5% 18.5 Foreign Shareholding Pacific, Africa, 14.3 0.1% 0.01% IHH Healthcare 47.8 (0.3%) 48.0 Europe, 40.7 21.3% Maxis (2.2%) Asia, 41.6 37.0% 38.8 North America, +3.5% Foreign Shareholding (%) 41.6% 37.5

CIMB Group 37.7 (26.2%) 51.1

22.8 28.3 24.4 24.1 20.8 18.4 16.9 15.6 14.3 17 Nov 2020 31 Dec 2019 Institutional: 14.29% Aug'15 Aug'16 Aug'17 Dec'17 Dec'18 Dec'19 Mar'20 Jun'20 Sep'20 Individual: 0.04% Note: 1. Top 10 KLCI ranking by Market Capitalisation as at 17th November 2020 2. TNB Latest Market Cap: RM62.6bil (3rd), as at 25th November 2020 Source: Share Registrar, Bloomberg and IR Internal Analysis 2626 APPENDIX Higher electricity demand was supported by industrial and commercial sector in 3Q

Commercial Industrial 3Q main contributors for the drop

Industrial: Y-o-Y (12.5%) Y-o-Y (10.2%) • Iron and steel • Cement products (0.1%) (28.3%) (8.4%) (7.5%) (22.7%) 0.2% • Electric & electronic Commercial: • Retails • Accommodation

• Educational

9,759

9,769 9,347

10,084 10,084 10,375 7,435 10,200

9,302

10,509

11,478 11,359 12,037 11,458 11,549 Unit Sales (GWh) Growth 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2019 Y-o-Y 2020 Q-o-Q Others* *includes Agriculture, Domestic Mining & Public Lighting Y-o-Y (5.3%) Y-o-Y 9.6% Sector Mix (%) 9MFY’20 vs 9MFY’19 (9.2%) (3.4%) (3.1%) 5.8% 17.6% 5.3%

32% 34% 38% 40%

9MFY’19 559

636 577 578 600 581 614

8,302

7,093 6,707 7,060 6,973 7,342 6,526 2% 24% 9MFY’20 1Q 2Q 3Q 4Q 28% 1Q 2Q 3Q 4Q 2%

Note: Data / Info as at Sept 2020 Industrial Commercial Domestic Others 27 * Peninsular Malaysia only (TNB exclude SESB and other subsidiaries) 27 APPENDIX 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) 28 APPENDIX

Incentive Based Regulation (IBR) – New Features in Electricity Tariff Review for RP2 (2018-2020)

*

Source: Energy Commission (EC) 29 APPENDIX Incentive Based Regulation (IBR) – IBR Entities

1

1 In RP1, these 2 entity are grouped as Price –Cap entity Source: Energy Commission (EC) 30 APPENDIX 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 Implementation 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 31 APPENDIX 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: LTM – Laos, Thailand & Malaysia Interconnection; LSS – Large Scale Solar Source: Energy Commission (EC) 32 APPENDIX Existing - TNB’s Renewable Energy (RE) Assets

Others Domestic (Peninsular Malaysia) International

⚫ Mini Hydro (22MW) Kelantan ⚫ GSPARX Rooftop Solar (73MW) United Kingdom (Total secured) Large Hydro

⚫ SJ Pergau (600MW) Solar ⚫ TNB Vortex Solar (365.0MW) Kedah Terengganu Wind

Large Scale Solar Large Hydro ⚫ TNB Wind Ventures (26.1MW)

⚫ TNB Bukit Selambau (30MW) ⚫ SJ Kenyir (400MW)

⚫ SJ Hulu Terengganu (265MW) Turkey 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 Solar Large Scale Solar Biogas ⚫ GMR Solar (26.0MW) ⚫ TNB Sepang Solar (50MW) ⚫ JV with (3.2 MW) Solar PV

⚫ Floating solar in Sg Labu WTP (108kWp) 3333 APPENDIX 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-fired plant, Assets include 1,915MW coal, gas and solar plants. 117.5MW wind plants and 131.3MW hydro plants

Vortex Solar UK Tenaga Wind Ventures 55% 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 Farm Assets include 53 operational onshore medium across England and Wales with net installed wind turbines with a total combined capacity of capacity of about 365MW 26.1MW 34 APPENDIX TNB’s Environmental Initiatives - 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) under the ✓ The project focuses on 6 smart initiatives which are smart energy, smart ChargEV programme (managed by MGTC). facilities, smart mobility, smart security, smart lifestyle and smart education.

❑ TNB Centre of Excellence (CoE) for Solar Energy at the Large Scale Solar (LSS) site in Sepang ❑ Maverick - Showcase of Net Zero Energy Home

✓ Showcasing Net Zero Energy Home Living in residential areas in , the ✓ The CoE will become a training centre for solar energy development and technology, project provides a physical experience for customers to visualise how to self catering for TNB employees and external participants from public and private generate their own electricity. sectors

❑ Introduction of Electric Buses for UNITEN ❑ Smart Street Light Showcase Project at UNITEN Putrajaya Campus

✓ The project aims to develop a feasible business model for the operation of ✓ A street lighting system integrated with communication facilities that allow it to electric buses within the campus, such as vehicle leasing between the Fleet perform various functions such as brightness control, surveillance and digital Management and UNITEN. street signs.

3535 APPENDIX TNB’s Social Initiatives

Economic & Social Education Career Development

212 households benefitted from 700 students awarded YTN Projek Baiti Jannati and Program More than RM183mn scholarship with a total Mesra Rakyat by refurbishing or contributed in amount of RM66.1mn building new homes through a training & development total contribution of RM9.96mn RM21.2mn for 3,564 students from low-income TNB’s contribution of RM6mn families in the fields of including sponsorships to the RM10mn spent to cultivate Science, Technology, Malaysian Hockey Confederation 705 youth potentials Engineering and through PROTÉGÉ Mathematics through Dermasiswa My Brighter Approximately RM3.49mn has Future (MyBF) Programme been allocated to Better Brighter Shelter programme, provide 38,000 hours for accommodation via dormitories TNB has contributed a total Leadership Training & Total whose members are undergoing of RM2.19mn to 18 schools 1,085,160 training hours treatment in the hospitals under the Pintar Schools Adoption Programme

3636 APPENDIX 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

3737 APPENDIX TNB’s Governance Initiatives - Composition of BOD

CHAIRMAN EXECUTIVE DIRECTOR / CEO DATO’ SERI DIRAJA 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 GOPALA KRISHNAN A/L DATUK RAWISANDRAN AMRAN HAFIZ BIN AFFIFUDIN Expertise: Audit & Finance Expertise: Audit & Finance K.SUNDARAM A/L NARAYANAN (Khazanah) Expertise: Law Expertise: Business

JUNIWATI BINTI RAHMAT HUSSIN DATO' ROSLINA BINTI DATO' IR NAWAWI BIN DATO' ASRI BIN HAMIDIN @ HAMIDON Expertise: Project Management, Corporate ZAINAL AHMAD (MoF) Planning and Human Resource Expertise: Business Expertise: Engineering 3838 APPENDIX Increased in total debt due to drawdown of new sukuk, however gearing within optimal level

Statistics 30th Sept'20 31st Dec'19

RM Equivalent of Loan Value (bn) 1 Total Debt (RM' Bil) 51.1 45.4 Net Debt (RM' Bil)* 35.5 31.2

1 Gearing (%) 47.8 43.4

74.8% Net Gearing (%) 33.3 29.8 Fixed : Floating 95:5 98:2 38.2 Final Exposure 95:5 98:2 34.5 Effective Average Cost of Borrowing 4.83 5.06 2 (based on exposure) **

* Net Debt excludes deposits, bank and cash balances & investment in UTF 15.8% ** Inclusive of interest rate swap 1 Increase mainly due to : 4.7% • Issuance of Sukuk Wakalah IMTN of RM3bil on 12th August 2020 8.1 4.6% • Loan in Vortex of RM1.5bil due to change of accounting treatment from 7.9 0.1% associate to subsidiary 2.3 2.4 2.4 0.6 0.1 0.0 • Banker’s acceptance of RM1bil for working capital purposes in 1Q’FY20 2 RM USD JPY GBP OTHERS Reduced due to lower interest rate of the new drawdown.

Closing 30th 30th 31st 31st Dec-19 Sep-19 FOREX Sept’20 Jun’20 Mar’20 Dec’19 USD/RM 4.18 4.28 4.29 4.09 Note: 100YEN/RM 3.93 3.98 3.96 3.77 Debt consists of Principal + Accrued Interest GBP/RM 5.53 5.25 5.30 5.37 USD/YEN 106.36 107.68 108.24 105.40 3939 APPENDIX Financial Highlights

REVENUE (RM bil) EBITDA (RM bil)

50.4 50.9 44.5 47.4 18.4 14.8 15.5 33.7 13.4 13.8

FY'16 FY'17 FY'18 FY'19 9MFY'20 FY'16 FY'17 FY'18 FY'19 9MFY'20

PAT (RM bil)

7.32 6.91

4.45 3.75 2.41

FY'16 FY'17 FY'18 FY'19 9MFY'20 Note: FY2019 is after MFRS16 implementation 4040 APPENDIX Technical Highlights

EAF (%) Transmission System Minute (mins)

89.9 1.5 88.1 88.5 88.3 04 05

83.4 0.4 0.3 0.2 0.1

FY'16 FY'17 FY'18 FY'19 9MFY'20 FY'16 FY'17 FY'18 FY'19 9MFY'20 Distribution SAIDI (mins)

50.2 49.7 48.2 48.1

33.9

FY'16 FY'17 FY'18 FY'19 9MFY'20 4141 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.

42 THANK YOU For further enquiries, kindly contact us at:

Investor Relations Office: Investor Relations Team: Ms. Mehazatul Amali Meor Hassan CoE Investor Relations +603 2108 2126 Group Finance Division Tenaga Nasional Berhad [email protected] 4th Floor, TNB Headquarters No.129, Jalan , Ms. Sakinah Mohd Ali 59200 , 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.my43