Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Investor Presentation (May 2022)
30 slides from Tenaga Nasional Bhd's investor presentation, May 2022
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: Corporate Profile: The Leading Utilities Company in Malaysia
OVERVIEW Corporate Profile Sole Network & Retail Provider in Peninsular Malaysia THE LEADING UTILITIES COMPANY IN MALAYSIA Our grid network & retail governs by Incentive Based Regulations (IBR) framework Sabah Electricity Sdn Bhd (SESB) Transmission length: 25,186 KM (83% owned by TNB) Substations:
Slide 3: Financial Performance Overview 1QFY2022
RESULTS AT A GLANCE Financial Performance Overview RESILIENT 1QFY2022 FINANCIAL PERFORMANCE ON THE BACK OF HIGHER ELECTRICITY DEMAND BY 4% YEAR-ON-YEAR INLINE WITH MALAYSIA’S TRANSITION TO ENDEMIC PHASE KEY points of the results: 1QFY2022 Performance Revenue • Peninsular Malaysia’s electricity deman
Slide 4: Technical Performance Overview
RESULTS AT A GLANCE Technical Performance Overview SUPPORTING OUR FINANCIAL PERFORMANCE IS A SOLID TECHNICAL OPERATION, MAINTAINING WORLD-CLASS STANDARDS DESPITE THE CHALLENGING OPERATING ENVIRONMENT Equivalent Plant System Minutes SAIDI Availability Factor (EAF*) (Transmission) (Distribution Networ
Slide 5: Dividend
RESULTS AT A GLANCE Dividend WE CONTINUE TO OFFER LONG-TERM VALUE FOR OUR SHAREHOLDERS BY DELIVERING SUSTAINABLE DIVIDENDS Dividend Policy Dividend payout ratio of 30% to 60% based on the adjusted PATAMI Special Dividend Payout (RM’ bil) 2.28 Yearly Dividend 2.28 2.29 Payout (RM’ bil) Dividend Payou
Slide 6: Net Zero & Coal Free by 2050
ESG Net Zero & Coal Free by 2050 IN ADDITION TO FINANCIAL AND TECHNICAL PERFORMANCE, WE RECOGNISE THE NEED TO MAKE OUR CORE SUSTAINABLE AND BUILD NEW SUSTAINABLE BUSINESSES THROUGH OUR BOLD SUSTAINABILITY PATHWAY. WE COMMIT TO HALVE COAL CAPACITY AND REDUCE 35% EMISSION INTENSITY BY 2035, WHILE LONG
Slide 7: Internalizing ESG KPI
ESG Internalizing ESG KPI INCORPORATING ESG RELATED KPI TO TOP MANAGEMENT STARTING THIS YEAR; A CRUCIAL STEP IN ALLIGNING LONG-TERM ESG GOALS • For our Top Management, TNB has adopted a multidimensional approach to ESG that includes ESG rating, health & safety measures, integrity health index and gr
Slide 8: Group Strategy: Reimagining TNB 2025
RT 2025 Group Strategy: Reimagining TNB 2025 MOVING FORWARD, OUR STRATEGY REMAINS ANCHORED ON REIMAGINING TNB WITH ESG CONSIDERATION AT THE CORE THROUGH: (1) MAKE THE CORE SUSTAINABLE, AND (2) BUILD NEW SUSTAINABLE BUSINESSES TO BE A LEADING PROVIDER OF SUSTAINABLE ENERGY SOLUTIONS IN MALAYSIA AND I
Slide 9: Future Generation Sources: GenCo
Future Generation Sources GenCo TO ACHIEVE THIS, GENCO’S OWN DECARBONISATION EFFORTS ARE CRUCIAL. GENCO IS COMMITTED IN SUPPORTING TNB’S SP2050 VIA (1) INCREASE RENEWABLE PORTFOLIO, (2) REPOWERING COAL INTO CLEANER ALTERNATIVES, WHILE PROGRESSIVELY (3) APPLYING NEW EMERGING TECHNOLOGIES TO REDUCE CA
Slide 10: Future Generation Sources: NED
Future Generation Sources NED THROUGH NED, WE STRIVE TO FUTURE PROOF OUR BUSINESS BY EXPANDING OUR RE FOOTPRINT GLOBALLY THROUGH M&A, ASSET DEVELOPMENT AND ESTABLISHING STRATEGIC PARTNERSHIPS WITH LEADING RE PLAYERS RE growth strategy Asset development • Move upstream into greenfield development for
Slide 11: Growing RE Assets in the UK
Future Generation Sources NED WE HAVE GAINED ENCOURAGING TRACTION IN GROWING RE ASSETS IN THE UK THROUGH OUR VANTAGE UK RE Assets In October 2021, completed an acquisition of a 49% stake in Blyth Offshore Demonstrator Limited (“BODL”) with installed capacity of 41.5MW (“Blyth 1”) and development rig
Slide 12: Grid of the Future: IBR Framework
Grid of the Future IBR Framework IBR FRAMEWORK CONTINUES TO OFFER FAIR RETURNS WITH RP3 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 Distrib
Slide 13: Grid of the Future: Regulated CAPEX
Grid of the Future Regulated CAPEX DESPITE OUR WORLD-CLASS NETWORK PERFORMANCE, WE CONTINUE TO INVEST IN OUR NETWORK, IN PARTICULAR TO IMPROVE ITS RELIABILITY THROUGH THE ADOPTION OF THE SMART GRID. IN ADDITION, OUR NETWORK PLAYS A KEY ROLE IN ENABLING THE NATION’S ENERGY TRANSITION, THEREFORE CONTI
Slide 14: Winning the Customer: Electric Vehicle
Winning the Customer Electric Vehicle WE ARE STRATEGICALLY POSITIONED TO LEAD MALAYSIA’S TRANSITION INTO LOW-CARBON MOBILITY ACROSS THE VALUE CHAIN AS INFRA, CHARGE POINT OPERATOR AND DIGITAL PLATFORM PROVIDER 2030 Proposed Target for Malaysia EV Electron station: The future of ‘fuelling’ ❑ TNB will
Slide 15: Winning the Customer: GSPARX
Winning the Customer GSPARX FURTHER FUTURE-PROOFING OUR BUSINESS IS GROWING SOLAR SOLUTIONS THROUGH GSPARX, HAVING GROWN AT 67% CAGR SINCE 2019 ❑ GSPARX focuses on solar solutions which allows customers (residential, commercial and industrial) to install solar PV at zero upfront cost and enjoy savin
Slide 16: Winning the Customer: GET & ALLO
Winning the Customer GET & ALLO BEYOND KWH, OUR SUSTAINABILITY AGENDA EXTENDS TO OUR RETAIL CUSTOMERS THROUGH GREEN AND DIGITAL OFFERINGS • Aims to further widen our fibre coverage throughout the Peninsular Malaysia. By 2026, Allo is projected to generate revenue of RM500mil and EBIT of RM200mil. En
Slide 17: FY2022 Outlook
FORWARD GUIDANCE FY2022 Outlook ELECTRICITY DEMAND GROUP CAPEX FORECAST Total Group CAPEX: Forecasted at 1.7% @ 115,835GWh, RM11.8bil in line with GDP projection of 5.3% to 6.3% ❖ Regulated capex: RM7.2bil for 2022 ❖ Others*: RM4.6bil * Major projects, subsidiaries and corporate DIVIDEND TNB SUSTAIN
Slide 18: Appendices
APPENDICES Geass NASIONAL Petter. Brighter
Slide 19: Incentive Based Regulation Base Tariff and ICPT
APPENDIX Incentive Based Regulation (IBR) Base Tariff Imbalance Cost Pass-Through (ICPT) Base tariff is determined by the regulator for every 3 years, taking into ICPT Surcharge account: ICPT is 6-monthly pass-through i. OPEX, depreciation of regulated assets & tax expenses of regulated mechanism of
Slide 20: Regulatory Period (RP3)
APPENDIX Regulatory Period 3 (RP3) RP3 determination (2022 -2024) Base Tariff sen/kWh 38.53 39.45 39.45 39.95 Base Tariff, Regulated Upward trend of RBE tariff sen/kWh 39.95 business entities (RBE) 11.77 5.4% 12.40 10.1% 13.65 0.7% 13.75 since RP1 ensure continuous 26.76 27.05 25.80 26.20 Single Buy
Slide 21: ICPT
APPENDIX ICPT REGULATORY CERTAINTY; FRAMEWORK CONTINUOUSLY BEING UPHELD ENSURING SUSTAINABLE REGULATED RETURNS • The Government has continuously upheld the framework and the ICPT mechanisms has successfully managed the volatility in fuel prices through tariff pass through to the consumers. • Since R
Slide 22: Regulatory Period and ICPT surcharge and rebate position
APPENDIX Regulatory Period INTERIM YEAR RP 2 Extension RP2 (2018 – 2020) (2021 – Jan’22) RP3 (2022 – 2024) 2018 2019 2020 2021 2022 2023 2024 ICPT surcharge and rebate position ICPT Surcharge / (Rebate) Implementation Period Jan – Jun’18 1.35sen/kWh Jul – Dec’18 Jul – Dec’18 2.15sen/kWh Jan – Jun’19
Slide 23: Renewable Energy Investments
APPENDIX Renewable Energy Investments TNB’s RE Capacity: 3,783.5 MW (as of May’22) TNB’s RE Strategy International WIND International: 1) Renewable Energy Driver (UK / Europe) 284.3 MW ▪ UK (TNB Wind Ventures): 165.4 MW 2) Growing TNB’s utility business in South East Asia (SEA) ▪ Turkey (GAMA): 118.
Slide 24: Group Installed Capacity
APPENDIX Group Installed Capacity Capacity as at May’22 (MW) Fuel Type Domestic International Total Gas 7,024.4 1,265.4 8,289.8 Coal 9,080.0 1,650.0 10,730.0 Oil - 1,190.0 1,190.0 16% Hydro 2,536.1 317.8 2,853.9 5% Coal Wind - 284.3 284.3 Gas 34% Solar 80.0 391.0 471.0 RE Total 18,720.5 5,098.5 23,8
Slide 25: Customer & Sales Mix
APPENDIX Customer & Sales Mix VERTICALLY INTEGRATED UTILITY COMPANY SERVING MORE THAN 9.7MIL CUSTOMERS THROUGHOUT PENINSULA MALAYSIA Total Total Total Total Customer Employees Assets Unit Sold TNB: 9.7mn SESB: 0.7mn 34,786 RM192.1bn 28,959.3 GWH TNB Sectoral Sales Analysis* 1.0% 0.3% 1.6% 2.1% 16.8%
Slide 26: Electricity Demand by Sector
APPENDIX Electricity Demand by Sector HIGHER Y-O-Y ELECTRICITY DEMAND DRIVEN BY COMMERCIAL AND DOMESTIC SECTORS Industrial Commercial 1QFY’22 main contributors for the drop (0.2%) in industrial sector: 10.2% • Chemical 15.4% (11.1%) 1.0% (0.2%) • Rubber products 10.2% 14.2% (16.4%) 4.4% • Metal prod
Slide 27: Corporate Social Responsibility
APPENDIX Corporate Social Responsibility TNB CONTINUES ITS NATION-BUILDING LEGACY THROUGH CORPORATE RESPONSIBILITY PILLARS ANCHORED ON EMPOWERING COMMUNITIES FOR A BETTER, BRIGHTER MALAYSIA Sport Socio-Economic Environment Education RM5.43mil RM22.79mil RM0.24mil RM11.11mil ▪ National Hockey Develop
Slide 28: Governance
APPENDIX Governance TNB UPHOLDS THE HIGHEST STANDARDS OF CORPORATE GOVERNANCE EMBEDDED IN A CULTURE ANCHORED ON OUR CORE VALUES OF INTEGRITY, PROFESSIONALISM, COLLABORATION, CUSTOMER CENTRICITY, FORWARD THINKING & MINDFULNESS TNB Corporate Remuneration TNB Sustainability Board Diversity Governance F
Slide 29: Market Capitalisation
APPENDIX Market Capitalisation TNB MARKET CAPITALISATION OF RM51.5BIL AS AT 31ST MARCH 2022 Top 10 KLCI Stocks by Market Capitalisation RM bil Khazanah Nasional Berhad 106.2 Maybank 18.4 16.0 98.6 Permodalan Nasional Berhad (PNB) Public Bank 90.7 +12.3% 18.4 17.7 80.8 Employees Provident Fund Board
Slide 30: 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 mehazatul@tnb.com.my 4th Floor, TNB Headquarters No.129, Jalan Bangsar, Ms. S
Tenaga Nasional Berhad — Investor Presentation (May 2022) on 6ix