Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Shareholder Meeting (December 2017)
28 slides from Tenaga Nasional Bhd's shareholder meeting presentation, Dec 18, 2017
Slide 1: Mesyuarat Agung Tahunan Tenaga Nasional Berhad Ke-27
TENAGA —J NASIONAL Better. Brighter. MESYUARAT AGUNG TAHUNAN TENAGA NASIONAL BERHAD KE - 27 18 DISEMBER 2017 os
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS 27th ANNUAL GENERAL MEETING 2
Slide 3: Financial Position for Financial Year 2017 Intact
FINANCIAL POSITION FOR FINANCIAL YEAR 2017 INTACT 27th AGM • Stable EBITDA Margin from Effective Implementation of ICPT Mechanism under IBR Framework • Sustained Capital Expenditure of RM12.06bn During FY’17 FY2017 FY2016 YoY EBITDA Margin 32.6% 33.2% 0.6ppt Profit After Tax RM6.91 bn RM7.32 bn 5.6%
Slide 4: Electricity Demand Growth in FY2017
ELECTRICITY DEMAND GROWTH IN FY2017 27th AGM TNB Electricity Demand Growth (Peninsula) vs. Malaysian GDP BNM REPORT (GDP) % 2016 2017(f) 2018(f) 8.0 4.2% 5.2–5.7% 5.0–5.5% 6.0 4.3 4.0 3.8 4.0 3.1 2.5 2.2 2.0 1.0 5.1 5.6 4.7 6.0 5.0 4.2 5.2-5.7** 0.0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 G
Slide 5: Performance Indicators
PERFORMANCE INDICATORS 27th ANNUAL GENERAL MEETING 5
Slide 6: Stable Financial Performance in FY2017
STABLE FINANCIAL PERFORMANCE IN FY2017 27th AGM 1 Return on Assets 2 Profit After Tax 3 Company CPU 4 Revenue from Non-Regulated (ROA)(%) (RM bn) (sen/kwh) # Business (RM bn)** 8.0 8.0 38.0 36.6 4.0 7.3 6.9 36.0 35.0 35.1 6.6 6.4 6.4 34.2 3.3 6.2 6.1 34.0 6.0 5.6 5.4 6.0 5.4 3.0 2.7 32.0 31.0 2.5 2.
Slide 7: Solid Technical Performance in FY2017
SOLID TECHNICAL PERFORMANCE IN FY2017 27th AGM 3 Equivalent Plant 1 Transmission 2 Distribution SAIDI (mins) Availability Factor (EAF)(%)* System Minutes (mins) 1.8 100.0 70.0 64.2 1.6 1.5 60.0 55.0 1.4 88.8 88.5 49.7 49.7 50.2 90.0 88.1 88.1 1.2 50.0 85.5 1.0 40.0 0.8 80.0 0.8 30.0 0.6 0.4 20.0 0.4
Slide 8: Steady Performance of TNB Power Plants
STEADY PERFORMANCE OF TNB POWER PLANTS 27th AGM For FY2017, TNB power plants recorded: • Equivalent Availability Factor (EAF) at 88.5% • Equivalent Unplanned Outage Factor (EUOF) at 2.7% Availability* (%) EUOF* (%) 88.8 6.2 7.1 88.1 88.1 88.5 3.9 4.4 85.5 2.7 FY2013 FY2014 FY2015 FY2016 FY2017 FY201
Slide 9: Key Highlights
KEY HIGHLIGHTS 27th ANNUAL GENERAL MEETING 9
Slide 10: Solid Milestones and Deliverables to Maximize Shareholders Return
SOLID MILESTONES AND DELIVERABLES TO MAXIMIZE SHAREHOLDERS RETURN 27th AGM 1 2 3 4 CONTINUOUS STABLE RETURN SUCCESSFUL EXPANSION IN FROM EFFECTIVE ESTABLISHMENT OF HIGHER RANGE OF DOMESTIC AND IBR 5 BILLION SUKUK DIVIDEND PAYOUT GLOBAL MARKET IMPLEMENTATION PROGRAM (IMTN) RATIO i. 50% stake of 365MW
Slide 11: Steady Stream of Power Generation to Support the Nation Growth
STEADY STREAM OF POWER GENERATION TO SUPPORT 1 THE NATION GROWTH 27th AGM 1,000MW Commissioned and 3,490MW in the Pipeline Janamanjung Unit 5 Jimah East Power 1,000MW (Coal) 2,000MW (Coal) COMPLETED COD: 28th Sep 2017 70% COD: U1: 15th Jun 2019 U2: 15th Dec 2019 TNB Sepang Solar Southern Power Gener
Slide 12: Building Renewable Energy Portfolio for Better Future
BUILDING RENEWABLE ENERGY PORTFOLIO FOR 1 BETTER FUTURE 27th AGM 50% Ownership of Vortex Solar in United Kingdom Diversify TNB Improve TNB RE current Portfolio international portfolio Vortex Solar • Vortex Solar assets include 24 operational solar PV Farm across Low risk, England and Wales with net
Slide 13: TNB Remains Neutral from Fuel Fluctuation
TNB REMAINS NEUTRAL FROM FUEL FLUCTUATION 2 Incentive Based Regulation (IBR) & Imbalanced Cost Pass-Through (ICPT) 27th AGM Interim First Second Regulatory Regulatory Regulatory Period Period (RP1) Period (RP2) 2014 2015 2016 2017 2018 Jan Jul Dec Jan Mar Jun Jul Dec Jan Jun Jul Dec Jan Jun Jul Dec
Slide 14: Oversubscription of RM2.0 Billion Sukuk Indicates Strong Market Confidence
OVERSUBSCRIPTION OF RM2.0 BILLION SUKUK 3 INDICATES STRONG MARKET CONFIDENCE 27th AGM First Issuance from the Approved Islamic Medium Term Note Programme (IMTN) of RM5.0 billion First Issuance – 3rd August 2017 RM 2.0 billion Tenor Issue Size No (years) (RM Million) 1. 15 500 2. 20 1,500 14
Slide 15: FY2017 Marks the Highest Dividend Payout to Date
FY2017 MARKS THE HIGHEST DIVIDEND PAYOUT TO DATE 4 Continue to Maximise Shareholders Value Through Consistent and Sustainable Dividend 27th AGM Payout of RM3.5 Billion Dividend Policy Distribution of dividend is based on 30% to 60% dividend payout ratio, based on the reported Consolidated Net Profit
Slide 16: Business Strategy & Direction
BUSINESS STRATEGY & DIRECTION 27th ANNUAL GENERAL MEETING 16
Slide 17: 68 Great Years of Keeping the Lights On
68 GREAT YEARS OF KEEPING THE LIGHTS ON 27th AGM TNB Aspires to Become a Domestic and Global Champion OUR STRATEGY TNB’s strategy to achieve our aspiration of becoming amongst the leading corporations in the energy & related business globally is centred on five focus areas: 17
Slide 18: Shaping Sustainable Future
SHAPING SUSTAINABLE FUTURE Our Strategic Plan 2017 - 2025 Towards Achieving Continuous Growth 27th AGM 3 STRATEGIC PILLARS Future Winning the Grid of the Generation Customer Future Sources 18
Slide 19: TNB 2025 Growth Aspiration
TNB 2025 GROWTH ASPIRATION Aspire to Grow our EBIT to RM20.0 billion by 2025 through Domestic & International 27th AGM Investment 19
Slide 20: Expanding Global Footprint to Achieve Aspiration
EXPANDING GLOBAL FOOTPRINT TO ACHIEVE ASPIRATION TNB is currently present in more than 5 countries 27th AGM REMACO O&M for 225MW REMACO O&M for 210MW Sabiya Power Generation & Doha West Power Generation Water Distillation Plant & Water Distillation Plant (Kuwait) (Kuwait) REMACO O&M for Shuaiba Nort
Slide 21: Accolades
ACCOLADES 27th ANNUAL GENERAL MEETING 21
Slide 22: Accolades: Financial
ACCOLADES : FINANCIAL 27th AGM 1 2 3 BRAND FINANCE’S GLOBAL TOP 50 UTILITY BRANDS IN 2017 OR UTILITIES 10TH ANNUAL BEST DEAL 50 (2017) & SOLUTION AWARDS 2016 ASSET ASIAN AWARDS 2017 Fastest growing brand in the Utilities Best Foreign Currency Bond Deal of TNB Global Ventures Capital for its 50
Slide 23: Accolades: Financial
ACCOLADES : FINANCIAL 27th AGM 4 5 6 2017 AUSTRALASIAN 3 REPORTING AWARD THE EDGE BILLION RINGGIT CLUB ISLAMIC FINANCE NEWS (IFN) AWARDS 2017 DEALS OF THE YEAR 2016 Super Big Cap Companies, More Gold Award for Excellence in Sime Darby TNBES Renewable Energy Than RM40 Billion Market Content Rep
Slide 24: Accolades: Technical
ACCOLADES : TECHNICAL 27th AGM 1 2 3 RED HAT INNOVATION AWARDS APAC 2016 ASIA GEOSPATIAL EXCELLENCE AWARD Infrastructure Category SHARE GUIDE 2016 ASSOCIATION Implementation of MALAYSIA (SGAM) ICT Unmanned Aerial Systems AWARD 2016 (UAS) for Utilities Asset Management Malaysia IT User Group Ca
Slide 25: Accolades: Technical
ACCOLADES : TECHNICAL 27th AGM 4 5 6 ASEAN ENERGY AWARDS 2016 ASIA - PACIFIC RISK MANAGEMENT AWARDS 2017 201 Energy Management in ASIAN UTILITY 4 Buildings and Industries - Asia-Pacific Risk INNOVATORS AWARDS 2017 Large Building Category - Management Team of the Wisma TNB Jalan Timur, Year Bes
Slide 26: Accolades: Corporate Governance, CSR & Brand
ACCOLADES : CORPORATE GOVERNANCE, CSR & BRAND 27th AGM 1 2 3 4 MSWG MALAYSIA – ASEAN CORPORATE 9TH ANNUAL GLOBAL GOVERNANCE CSR SUMMIT & AWARDS 201 THE BRANDLAUREATE TRANSPARENCY INDEX, 2017 4 BEST BRANDS AWARD 11TH EMPLOYER FINDINGS AND 2016 – 2017 BRANDING AWARDS 2017 RECOGNITION 2016 Best Workp
Slide 27: Acknowledgements
ACKNOWLEDGEMENTS 27th AGM Our Appreciation Goes To… • The Government of Malaysia; • Ministry of Energy, Green Technology and Water and other Ministries; • The Energy Commission; and • Other agencies for all the assistance rendered. Our thanks also to our VALUED SHAREHOLDERS and CUSTOMERS for their l
Slide 28: Thank You
27th AGM THANK YOU
Tenaga Nasional Berhad — Shareholder Meeting (December 2017) on 6ix