Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — FY2024 Earnings Presentation
48 slides from Tenaga Nasional Bhd's earnings presentation, Mar 3, 2025
Slide 1: Analyst Briefing 4QFY2024
ANALYST BRIEFING 4QFY2024 3 March 2025 | Business Lounge, TNB Platinum The Light Project, Penang Bridge
Slide 2: Key Highlights: Performance Highlights
Key Highlights Performance Highlights TNB delivered a resilient 2024 performance, providing sustainable dividends for shareholders whilst positioning us for continued business growth PAT Demand Growth Dividend Payout Reported 6.5% Y-o-Y 59.6% payout ratio (Based on adjusted PATAMI) RM4,729.6 mil (FY
Slide 3: MSCI ESG Rating upgraded to A
Key Highlights Performance Highlights TNB’s MSCI ESG Rating upgraded to A, marking our commitment to sustainability TNB’s ESG progress recognised by MSCI ESG rating upgraded to A (Score: 6.9) leading rating agencies ESG Rating History 3.5 AAA (June 2024) AA 6.9 A A 5.3 5.6 5.6 5.6 3☆ (June 2024) BBB
Slide 4: 2024 Achievements
2024 Achievements 2024 was a positive year, marked by notable achievements and progress as we intensified our strategic initiatives across our businesses Deliver Clean Generation Develop Energy Transition Network Dynamic Energy Solutions Nenggiri Hydro Project (300MW) National Grid Renewable Energy
Slide 5: Performance Update
OUTLOOK & FORWARD GUIDANCE (DCEO) PERFORMANCE UPDATE
Slide 6: Financial Performance
Key Highlights Financial Performance Higher PAT in FY2024 was driven by improved overall performance REVENUE EBITDA PAT Adjusted PAT (MFRS16 & forex translation): RM4,877.8 mil 6.9% 7.1% 81.7% RM56,737.1 mil RM19,952.4 mil RM4,729.6 mil EBITDA Margin: 35.2% incl. forex translation gain of RM492.2 mi
Slide 7: Technical Performance
Key Highlights Technical Performance Group earnings supported by; i. Improved generation performance ii. World-class network performance Equivalent Plant Availability Factor, EAF (Generation) % FY2024 81.2% Improved overall performance by power plants 2024 Target: 78.6% System Minutes (Transmission)
Slide 8: Capital Management
Key Highlights Capital Management Y-o-Y: Lower receivables driven by improved collection, strengthening our cash flow position and credit rating Receivables (RM bil) 1 RM Successfully received 1.8%* ICPT Cost RM3.0 bil out of RM3.4 bil (ICPT for period January to December 2024, Government portion) R
Slide 9: Dividend
Key Highlights Dividend We continue to deliver stable dividend payouts, reflecting our commitment to rewarding shareholders and maintaining prudent capital management Total Shareholders’ Return 54.1% Dividend Yield* 6.9% 4.0% 5.2% 4.8% 3.8% 66.6% DIVIDEND POLICY 58.5% 59.6% 60% 52.8% 55.2% We will c
Slide 10: 3-Year Recap and 2025 Focus
OUTLOOK & FORWARD GUIDANCE (DCEO) 3-YEAR RECAP AND 2025 FOCUS
Slide 11: 3-Year Recap (2022-2024)
Key Highlights 3-Year Recap (2022-2024) TNB has demonstrated resilience and growth throughout the past 3 years, exemplifying leadership in both regulated and non-regulated businesses Regulated Business Non-Regulated Business GenCo NED GSPARX ✓ During the IBR Regulatory Period 3 ✓ Committed to perfor
Slide 12: IBR Regulatory Period (RP4)
Key Highlights IBR Regulatory Period 4 (RP4) We have successfully secured our returns at 7.3% and sufficient expenditure allowance for the next 3 years (2025 – 2027) Incentive-based Regulation RP4 Allowed CAPEX (RM bil) (IBR) Contingent CAPEX IBR framework and ICPT mechanism remain intact 26.55 • In
Slide 13: Deliver Clean Generation: Operational Efficiency
Key Highlights Deliver Clean Generation Our generation business advances towards cleaner energy whilst we continue to enhance operational efficiency Enhance Operational Efficiency Continue to implement predictive measures to enhance reliability and availability: Continue to implement enhancement ini
Slide 14: Deliver Clean Generation: Renewable Assets
Key Highlights Deliver Clean Generation Our focus is on developing renewable assets while pursuing growth opportunities domestically and internationally driving TNB’s journey towards Net Zero 2050 Projects in Operations Projects under Construction 2025 Outlook Malaysia Solar Greenfield Development (
Slide 15: Outlook and Forward Guidance
OUTLOOK & FORWARD GUIDANCE (DCEO) OUTLOOK AND FORWARD GUIDANCE
Slide 16: 2025 Outlook & Targets
2025 Outlook & Targets As we embarked into 2025, we continue to accelerate our key focus areas in fostering business growth while realising our Net Zero ambitions Deliver Clean Generation Develop Energy Transition Network Dynamic Energy Solutions Nenggiri Hydro Project (300MW) Regulated CAPEX of ~RM
Slide 17: 2025 Guidance
Key2025 Highlights Guidance We strive to achieve sustainable business growth while building a brighter and greener future Demand growth is projected to be National Energy Transition Roadmap (NETR) • Ensuring business growth as we pursue RE growth in 3.5% - 4.5% supporting the NETR and becoming a lea
Slide 18: Appendix
Appendix FY2024 o Details on Strategy Development o Details on Financial Results o Generation Business Performance o International Business Performance o Shareholdings
Slide 19: Cleaner generation: renewable energy portfolio progress
Develop Energy Deliver Transition Clean Network Generation We strengthen our commitment to cleaner generation by advancing steady progress in our renewable energy portfolio Projects 4QFY2024 Key Achievements ~2,900MWp Hybrid Hydro-Floating Solar (HHFS) Hybrid Hydro-Floating Solar (HHFS) COD: 2026 (1
Slide 20: RP3 CAPEX utilisation and key projects
Develop DevelopEnergy Transition Energy Network Transition Network We have successfully utilised the approved RP3 CAPEX, bolstering our confidence to deliver on our RP4’s commitments FY2024 Key Projects FY2024 Utilisation Regulated CAPEX Smart Meter Installation progress: 158% FY2024 Target: 600,000
Slide 21: Strong demand for energy from data centres
Develop DevelopEnergy Transition Energy Network Transition Network TNB remains committed to meeting energy needs, driven by strong demand for energy from data centres FY2024 Data Centres Achievements 4QFY2024 Key Highlights FY2024 Project Stage Actual Load Utilisation 12 38 projects projects 405MW f
Slide 22: TNB advancing Malaysia's EV market
Develop EnergyEnergy Dynamic Transition Network Solutions TNB plays a key role in advancing Malaysia’s EV market by installing EV chargers and supplying electricity infrastructure to Charge Point Operators (CPOs) EV Ecosystem Key Highlights Green Lane Supply Connections YTD Electricity Sales (CPO) T
Slide 23: GSPARX rooftop solar prosumers
Develop DynamicEnergy Dynamic Transition Energy Energy Network Solutions Solutions GSPARX transforms consumers to prosumers through rooftop solar installations, elevating Malaysia’s green energy progress Customers Secured 23.7MWp Progress Secured Capacity (MWp) Lembaga Penyelidikan Perikanan (LPP) B
Slide 24: Y-o-Y analysis
Y-o-Y analysis Variance RM mil FY2024 FY2023 Y-o-Y analysis: RM mil % 1 Revenue 1 56,737.1 53,066.9 3,670.2 6.9 Imbalance Cost Pass Through (ICPT) 9,097.7 10,598.2 (1,500.5) (14.2) Higher Group revenue recorded from sales 2 Operating expenses (without depreciation) (47,726.0) (46,105.4) (1,620.6) 3.
Slide 25: Q-o-Q analysis
Q-o-Q analysis Variance RM mil 4QFY'24 3QFY'24 Q-o-Q analysis: RM mil % Revenue 14,378.3 14,351.6 26.7 0.2 1 Lower ICPT mainly due to lower power purchase Imbalance Cost Pass Through (ICPT) 1 1,726.1 2,196.4 (470.3) (21.4) cost. Operating expenses (without depreciation) 2 (11,685.6) (12,295.8) 610.2
Slide 26: Y-o-Y normalised EBITDA and PAT for FY2024
Y-o-Y normalised EBITDA and PAT for FY2024 EBITDA FY2024 FY2023 1 Components RM mil RM mil MFRS16 impact: FY2024 FY2023 Variance Actual figure input tab (to Ch RM mil RM mil RM mil Reported EBITDA 19,952.4 18,622.6 MFRS16 impact 1 (3,816.1) (4,219.7) Capacity Payment 3,816.1 4,219.7 (403.6) Normalis
Slide 27: Higher Group revenue driven by healthy demand growth
Higher Group revenue driven by overall healthy demand growth Variance Variance 4QFY'24 3QFY'24 FY2024 FY2023 (4QFY'24 vs 3QFY'24) (FY2024 vs FY2023) UNITS SOLD GWh GWh GWh % GWh GWh GWh % Sales of Electricity (GWh) 1 - TNB 32,469.7 33,358.5 (888.8) (2.7) 130,848.1 123,206.0 7,642.1 6.2 Higher revenu
Slide 28: Y-o-Y electricity demand grew in tandem with GDP
Y-o-Y electricity demand grew in tandem with GDP % GDP & TNB Demand Growth TNB (Peninsular) Yearly Peak Demand 8.7 Full Year 5.9 6.2 * MW 4.2 4.7 4.3 20,066 3.1 3.7 19,716 6.0 19,183 5.1 3.6 18,808 2.5 2.5 3.2 2.7 1.2 18,585 Recorded on: FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 FY'24 -4.9 25
Slide 29: Increased demand across all sectors
Increased demand across all sectors mainly contributed by commercial and domestic Industrial Commercial FY’24 main contributors for the increase in 1.6% industrial & commercial sectors: 9.2% Industrial 3.0% 2.6% 3.1% (2.2%) • Consumer products, utility electrical and iron & 11.2% 8.8% 8.8% 8.1% stee
Slide 30: Other regulatory adjustment to be returned
As at FY2024, other regulatory adjustment of RM2,119.9 mil to be returned 1QFY'24 2QFY'24 3QFY'24 4QFY'24 FY2024 FY2023 Components of Other Regulatory Adjustment RM mil RM mil RM mil RM mil RM mil RM mil Revenue Adjustment for Revenue Cap & Price Cap (412.4) (684.1) (621.0) (425.1) 1 (2,142.6) (1,13
Slide 31: Higher Y-o-Y operating expenses
Higher Y-o-Y operating expenses Variance Variance 1 4QFY'24 3QFY'24 FY2024 FY2023 4QFY’24 vs 3QFY’24: Lower fuel and power (4QFY'24 vs 3QFY'24) (FY2024 vs FY2023) purchase costs due to lower gas price (refer Fuel Costs slide). RM mil RM mil RM mil % RM mil RM mil RM mil % Non-TNB IPPs Costs 4,086.7
Slide 32: Lower overall fuel costs due to lower coal price
Lower overall fuel costs due to lower coal price in FY2024 Table A – TNB & IPP Fuel Costs for Peninsular Table C – Fuel Costs Related Data Fuel statistics FY2024 FY2023 FY2024 FY2023 Variance Average Coal Price Delivered (USD/MT)(CIF) 113.2 134.0 Fuel Type Average Coal Price Delivered (RM/MT)(CIF) 5
Slide 33: Fuel Costs & Units Generated in FY2024
Fuel Costs & Units Generated (TNB & IPPs – Peninsular) in FY2024 Units Fuel Costs Generated Distillate TNB, 0.3% Distillate IPP, 0.2% Distillate TNB, 0.0% Distillate IPP, 0.1% Oil TNB, 0.1% Oil TNB, 0.0% Oil IPP, 0.0% Hydro, Oil IPP, 0.0% 4.7% Solar TNB, 0.2% Gas IPP, Distillate TNB, 0.4% Solar IPP,
Slide 34: Lower Q-o-Q fuel costs
Lower Q-o-Q fuel costs mainly due to lower units generated and a reduction in gas price Table A – TNB & IPP Fuel Costs for Peninsular Table C – Fuel Costs Related Data 4QFY'24 3QFY'24 2QFY'24 1QFY'24 Variance 4QFY'24 vs 3QFY'24 Fuel statistics 4QFY'24 3QFY'24 2QFY'24 1QFY'24 Fuel Type Average Coal P
Slide 35: Lower generation from coal in FY2024
Lower generation from coal in FY2024 Generation Mix for Industry (%) 1.5 2.0 1.9 2.4 2.1 2.1 4.6 5.9 3.6 3.4 5.8 4.7 0.2 0.1 0.0 0.1 0.0 0.1 57.0 52.6 57.2 58.3 56.7 58.6 36.7 39.4 37.3 35.8 36.4 33.5 FY2023 1QFY'24 2QFY'24 3QFY'24 4QFY'24 FY2024 Gas Coal Oil & Distillate Hydro Solar 31
Slide 36: Neutral to fuel cost volatility under ICPT
TNB is neutral to volatility in fuel costs under the ICPT framework 1QFY'24 2QFY'24 3QFY'24 4QFY'24 FY2024 RM mil RM mil RM mil RM mil RM mil Single Buyer Actual Generation Costs: (A) 10,710.6 11,499.8 10,936.3 10,233.2 43,379.9 Actual Sales (GWh) 31,899.4 33,120.5 33,358.5 32,469.7 130,848.1 Single
Slide 37: Fuel Margin: Coal Price Trending
Fuel Margin: Coal Price Trending Applicable Coal Price (ACP) vs Moving Average Price (MAP) 900.0 850.9 800.0 779.4 FY2023 FY2024 700.0 623.1 600.0 554.9 540.4 530.5 ACP<MAP 600.6 524.6 530.5 505.8 543.4 539.4 Negative 500.0 524.8 508.9 499.6 504.1 fuel margin 400.0 850.9 ACP> MAP RM767.9 mil Positiv
Slide 38: Industry coal requirement forecast for FY2025
Industry coal requirement forecast for FY2025 Coal Consumption (mil MT) Source Country Mix for FY’24 2.1% 0.2% 34.7 33.1 34.7 34.2 10.3% 32.3 31.9 20.9% 66.5% * FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 (F) * Based on tonnage Indonesia Australia planned for delivery Russia South Africa Kazakhstan 34
Slide 39: Group CAPEX, Regulated CAPEX and RAB
Group CAPEX Regulated CAPEX and RM mil Regulated Asset Base (RAB) 11,171.4 10,245.4 1,002.6 885.8 RP3 REGULATED ENTITIES CAPEX FY IBR Approved Actual Utilisation 2,499.9 2,934.5 RM mil RM mil (%) 2024 7,836.8 8,835.2 >100% Total RAB as at 31 Dec 2024: RM68,823.8 mil 6,360.3 5,124.1 1,308.6 1,301.0 F
Slide 40: Gearing improved to 47.8%
Gearing improved to 47.8% as at FY2024 Major Loan Breakdown 31 Dec'24 31 Dec'23 RM1.3 bil RM1.0 bil MYR Total Debt RM1.4 bil (RM bil) 57.4 61.8 2% 2% 2% USD RM3.5 bil 6% 2% GBP Net Debt * 3% 2% JPY (RM bil) 37.4 40.8 RM8.6 bil 6% 15% AUD 14% RM1.2 bil RM1.4 bil RM8.8 Gearing bil RM1.7 bil RM45.1 EUR
Slide 41: Trade receivables as at FY2024
Trade receivables as at FY2024 Trade Debtors Ageing (RM bil) Trade Receivables by Sectors (RM bil) 5.0 5.1 5.3 5.0 4.4 5.0 5.1 5.3 5.0 4.4 Total 2% 2% 2% 1% 1% Current 34% 35% 37% 37% 39% Others 1.3 1.5 1.5 1.4 1 Month 1.2 Domestic 0.3 0.4 0.3 0.3 0.6 0.5 0.6 0.6 0.3 2 to 5 Months 0.5 37% 37% 35% 34
Slide 42: Domestic generation business performance
Domestic generation business performance Y-o-Y: Overall improved performance by power plants despite M4 outage * GenCo’s improved overall performance attributed by: • Improved operational performance with EAF of 81.2% despite M4 outage; • Stabilising global fuel prices especially coal; • Higher othe
Slide 43: Revenue from coal recorded at 21% due to M4 outage
Revenue from coal recorded at 21% due to M4 outage Actual Group Revenue* 21% 23% RE Coal Others** 3% * Total revenue includes ICPT 3% FY’23 ** Others include revenue from regulated business, subsidiaries FY’24 and generation from gas 74% 76% Long-term aspiration: ▪ No new coal plant investment To be
Slide 44: Our RE journey is progressing well
Our RE journey is progressing well TNB RE Portfolio Renewable capacity (MW) 21% 20% 17% 4,465 4,302 3,889 % RE in TNB’s portfolio 1,183 1,183 993 International 3,282 3,119 2,896 Domestic Dec Dec Dec 2024 2023 2022 Note: • Gross RE Capacity includes large hydro (exclude SESB) • Solar capacity is quot
Slide 45: International Investments: Renewable Energy
International Investments: Renewable Energy (RE) TNB International Sdn Bhd (TNBI) Vantage RE Spark Renewables TNBI is a TNB wholly owned subsidiary incorporated under the laws of Malaysia anchored by Vantage RE in the UK and Spark Renewables in Australia. TNBI is a platform focused on capturing glob
Slide 46: Shareholdings
Shareholdings Khazanah Nasional Berhad 18.3 Permodalan Nasional Berhad (PNB) 15.4 7.0 16.8 Employees Provident Fund Board 18.3 2.2 (EPF) 7.5 Kumpulan Wang Persaraan (%) 1.7 (KWAP) Other Government Agencies 22.6 20.6 19.1 20.4 12.5 Local Corporation & Retail Africa Pacific 0.1%Pacific 0.03% Foreign S
Slide 47: Disclaimer
Disclaimer This presentation and discussion may contain forward looking statements by Tenaga Nasional Berhad related to financial trends for future periods. Some of the statements contained in this presentation or arising from this discussion which are not of historical facts are statements of futur
Slide 48: Investor Relations
INVESTOR RELATIONS IR OFFICERS: GROUP FINANCE DIVISION Envelope with solid fill Tenaga Nasional Berhad Sarah Keok Level 12, Tower A, TNB Platinum sarahk@tnb.com.my No. 3, Jalan Bukit Pantai, Bangsar Envelope with solid fill 59100 Kuala Lumpur Hasniza Harun hasniza@tnb.com.my Envelope with solid fill
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