Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Investor Presentation (September 2021)
24 slides from Tenaga Nasional Bhd's investor presentation, September 2021
Slide 1: Tenaga Nasional Berhad Investor Presentation
TENAGA NASIONAL BERHAD INVESTOR PRESENTATION Prepared by IR Holding unit, CoE Investor Relations department, Group Finance
Slide 2: A Leading Utilities Company in Malaysia
A LEADING UTILITIES COMPANY IN MALAYSIA Generation Business (Group) Total Installed Capacity: 23,841MW* We ranked 1st in Malaysia for Utilities Coal company and 4th in KLCI with a market 5% 14% Gas 36% RE cap of RM59.4bn* Oil 45% Note: 1. RE inclusive large hydro and small RE 2. Data is based on gro
Slide 3: Our Financial Performance Remains Resilient
OUR FINANCIAL PERFORMANCE REMAINS RESILIENT REVENUE (RM mil) EBITDA (RM mil) PROFIT AFTER TAX (RM mil) +6.1% 23,919 22,545 +4.5% 9,710 +29.1% 9,291 1,824 1,413 1HFY'20 1HFY'21 1HFY'20 1HFY'21 1HFY'20 1HFY'21 OUR DOMESTIC NETWORKS ACHIEVEMENT WITH LOW SYSTEM MINUTES AND SAIDI ARE AMONG THE BEST IN TH
Slide 4: Resilient Financial Performance and Robust Capital Management Rewarding Shareholders
A RESILIENT FINANCIAL PERFORMANCE AND ROBUST CAPITAL MANAGEMENT HAS AFFORDED US TO CONTINUE REWARDING OUR SHAREHOLDERS WITH ATTRACTIVE DIVIDENDS DIVIDEND POLICY 56% 59% We will continue to honour our dividend policy of 30% to 60% dividend payout 56% 7.7% 7.5% 53% ratio, based on the reported Consoli
Slide 5: Our Sustainability Pathway Will Open Up New Growth Opportunities
WE BELIEVE OUR SUSTAINABILITY PATHWAY WILL OPEN UP NEW GROWTH OPPORTUNITIES WHILST REMAINING TRUE TO OUR CORE ROLE Aspire to achieve Net Zero emissions by 2050 Commitment of 35% reduction of our emission intensity by 2035 Target of 8.3GW RE by 2025 2016 2025 2035 2050 Our Energy Transition journey s
Slide 6: Reimagining TNB Journey: Decarbonization, Decentralization, Digitalization, Deregulation
IN 2016, WE EMBARKED ON OUR REIMAGINING TNB JOURNEY TO PREPARE FOR DECARBONIZATION, DECENTRALIZATION, DIGITALIZATION AND DEREGULATION TO BE A LEADING PROVIDER OF SUSTAINABLE ENERGY SOLUTIONS IN MALAYSIA AND INTERNATIONALLY Future Generation Sources Grid of the Future Winning the Customer Future Proo
Slide 7: Delivering Sustainable Returns via IBR Mechanism Since 2014
DELIVERING SUSTAINABLE RETURNS VIA IBR MECHANISM SINCE 2014 Regulated entities under Incentive Based Regulation (IBR) Ring- fenced entities Regulated business made up more than 70% of the overall Group earnings. Single Buyer Single Buyer Grid System Transmission Distribution Customer Regulated e
Slide 8: Towards becoming a Smart Utility by 2025
INCREASED CAPEX INVESTMENTS IN OUR GRID DIGITALIZATION IS KEY TO MALAYSIA’S ENERGY TRANSITION AMBITION, FURTHER FUTURE-PROOFING OUR REGULATED BUSINESS Towards becoming a Smart Utility by 2025 Our target : Achieve Smart Grid Index (SGI) of 85% by 2025 Regulated businesses spends on average ~16% of it
Slide 9: Global RE Expansion; A Vital Move Towards Sustainability Commitments
GLOBAL RE EXPANSION; A VITAL MOVE TOWARDS ACHIEVING OUR SUSTAINABILITY COMMITMENTS RE TARGET BY 2025 (MW) GLOBAL FOOTPRINT International 30% stake in GAMA 100% stake in VANTAGE RE • Acquisition: 2016 Domestic 31% • Formation: 2021 • Capacity: 853MW in gas, 131.5 in • Capacity: 26.6MW in wind, 365MW
Slide 10: Largest Generation Company in Malaysia
LARGEST GENERATION COMPANY IN MALAYSIA; CONTINUOUS FOCUS ON DELIVERING EXCELLENCE SERVICE WHILE PURSUING NEW CLEAN ENERGY GROWTH OPPORTUNITIES Contracted Capacity in GenCo Financial 3 Business Priorities Under Peninsular Malaysia Performance GenCo REVENUE Performance 1HFY’21: RM9,756.7mil To deliver
Slide 11: Creating Value by Capturing New Opportunities in Technology Advancement
CREATING VALUE BY CAPTURING NEW OPPORTUNITIES IN TECHNOLOGY ADVANCEMENT Objective Current Progress / Development • To lead Malaysia’s transition into low-carbon i. Signed Memorandum of Understanding (MOU) with mobility through collaborative efforts with various Socar in Aug’21 to leverage on shared
Slide 12: TNB's Sustainability Pathway Supports the Nation's Climate Commitments
TNB’S SUSTAINABILITY PATHWAY SUPPORTS THE NATION’S CLIMATE COMMITMENTS, CONSIDER EXISTING RE TARGETS AND IN TANDEM WITH THE PENINSULAR MALAYSIA GENERATION DEVELOPMENT PLAN Malaysia Climate Commitments TNB Sustainability Pathway 2050 Targets To reduce Greenhouse Gas (GHG) emissions intensity of gross
Slide 13: Pioneering Emerging Technologies Is Key in Net Zero Emission Journey
PIONEERING EMERGING TECHNOLOGIES IS KEY IN NET ZERO EMISSION JOURNEY 1 35% emission intensity reduction RESEARCH PROGRAMS UNDER TNBR ON EMERGING TECHNOLOGIES By 2035: 2 Halve coal capacity TNB RESEARCH DESCRIPTION (TNBR) PROGRAMS Ramp up renewables energy: 8.3GW by 2025 & accelerate to 2035 • TNBR
Slide 14: Committed to Contribute 1% of Profit-After-Tax Towards Environmental and Community Programmes
WE ARE COMMITTED TO CONTRIBUTE 1% OF PROFIT-AFTER-TAX TOWARDS ENVIRONMENTAL AND COMMUNITY-RELATED PROGRAMMES FY2020 Contributions ECONOMIC & SOCIAL TRANSFORMATION RM173.9 million • Covid-19 Response Aid (MOH & State Government) • Baiti Jannati & Mesra Rakyat 2020 Brand of The Year Award (4th time) •
Slide 15: Recognised Globally for Our Continuous Commitment to Responsible Operations
RECOGNISED GLOBALLY FOR OUR CONTINUOUS COMMITTMENT TO OPERATE AS A SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ORGANISATION Our sustainability disclosure are based on Bursa Malaysia’s Main Listing Requirements and global disclosure frameworks: Bursa Malaysia Sustainability Reporting Guide (2nd Edition)
Slide 16: Appendixes
APPENDIXES GF uss NASIONAL Petter. Brighter.
Slide 17: Incentive Based Regulation (IBR)
INCENTIVE BASED REGULATION (IBR) Base Tariff Imbalance Cost Pass-Through (ICPT) ICPT Surcharge Base tariff is determined by the regulator for every 3 years*, taking into account: ICPT is 6-monthly pass-through i. OPEX, depreciation of regulated assets & tax expenses of regulated entities - mechanism
Slide 18: Regulatory Period
REGULATORY PERIOD INTERIM YEAR RP2 (2018 – 2020) 2021 RP3 (2022 – 2024) 2018 2019 2020 2021 2022 2023 2024 RP2 Extension / Interim Year ICPT surcharge and rebate position The Government has approved a one-year extension of the Second ICPT Surcharge / (Rebate) Implementation Period RP2 of the IBR f
Slide 19: Renewable Energy Investments
RENEWABLE ENERGY INVESTMENTS TNB’s RE Capacity: 3,421MW (as of Aug’21) TNB’s RE Strategy International WIND International: 1) Renewable Energy Driver (UK / Europe) 144 MW UK (TNB Wind Ventures): 26 MW 2) Growing TNB’s utility business in South East Asia (SEA) Turkey (GAMA): 118 MW 3) Technology
Slide 20: Group Installed Capacity
GROUP INSTALLED CAPACITY Capacity as at Aug’21 (MW) Fuel Type Domestic International Total Gas 7,024.4 1,476.0 8,500.4 Coal 9,080.0 1,650.0 10,730.0 Hydro 2,536.1 131.5 2,667.6 14% Wind - 144.1 144.1 5% Coal Oil - 1,190.0 1,190.0 Solar 80.0 391.0 471.0 Gas 36% RE Total 18,720.5 4,982.6 23,703.1 Oil
Slide 21: Vertically Integrated Utility Company Serving More Than 9.0mil Customers
VERTICALLY INTEGRATED UTILITY COMPANY SERVING MORE THAN 9.0MIL CUSTOMERS THROUGHOUT PENINSULA MALAYSIA Total Total Total Total Customer Employees Assets Unit Sold TNB: 9.5mn SESB: 0.6mn 35,191 RM176.6bn 29,987.7 GWH TNB Sectoral Sales Analysis* 1.0% 0.3% 1.6% 2.1% Industrial 16.9% Commercial 23.8% 3
Slide 22: Higher Y-o-Y Electricity Demand from Improved Industrial Sector
HIGHER Y-O-Y ELECTRICITY DEMAND FROM IMPROVED INDUSTRIAL SECTOR DUE TO RESUMPTION OF BUSINESS OPERATION Industrial Commercial 11.2% (1.0%) 1HFY’21 main contributors for the drop (8.4%) (10.7%) (12.6%) 14.2% 0.2% 0.2% 7.5% 15.4% in commercial sector: • Accommodation • Educational • Transportation 10,
Slide 23: TNB Market Capitalisation of RM59.4bil as at 30 August 2021
TNB MARKET CAPITALISATION OF RM59.4BIL AS AT 30 AUGUST 2021 Top 10 KLCI Stocks by Market Capitalisation Khazanah Nasional Berhad RM bil 18.4 17.7 97.9 Maybank +2.9% Permodalan Nasional Berhad 95.1 (PNB) 18.5 17.7 Public Bank 81.1 +1.4% Employees Provident Fund 80.0 Board (EPF) 7.3 Petronas Chemicals
Slide 24: Thank You
THANK YOU For further enquiries, kindly contact us at: Investor Relations Office: Investor Relations Team: CoE Investor Relations Ms. Mehazatul Amali Meor Hassan Group Finance Division +603 2108 2126 Tenaga Nasional Berhad 4th Floor, TNB Headquarters mehazatul@tnb.com.my No.129, Jalan Bangsar, Ms. S
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