Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — FY2019 Earnings Presentation
34 slides from Tenaga Nasional Bhd's earnings presentation, Feb 28, 2020
Slide 1: Presentation to Analyst
Presentation to Analyst 28th February 2020 Unaudited Consolidated Result for the 4th Quarter FY2019 Ended 31st December 2019 1
Slide 2: Financial Details, Key Highlights, Appendix
FINANCIAL DETAILS KEY HIGHLIGHTS FINANCIAL DETAILS APPENDIX 2
Slide 3: Reasonable FY'19 Results amid Challenges in Generation Business
Reasonable FY’19 Results amid Challenges in Generation Business KEY HIGHLIGHTS OVERVIEW REVENUE EBITDA PAT 1.1% 50,939.7 37.6% (1.6%) RM mil 50,392.5 RM mil RM mil 18.7% (10.0%) 18,395.7 5,356.9 13,366.9 14,585.7 14,351.6 4,819.2 4,445.0 3,745.0 26.5% 36.1% 28.9% 28.2% FY'18 FY'19 Reported Reported
Slide 4: Lower Y-o-Y Normalised EBITDA Mainly due to Lesser Contribution from Generation
Lower Y-o-Y Normalised EBITDA Mainly due to Lesser Contribution from Generation Business KEY HIGHLIGHTS Normalised EBITDA 1 Breakdown of impairments: FY’18 FY’19 Impairment Item (RM mil) (RM mil) FY’18 FY’19 GAMA 498.0 198.3 Components RM mil RM mil GMR 304.7 - Reported EBITDA 13,366.9 18,395.7 Fina
Slide 5: Lower Group Normalised PAT Mainly due to Lesser Contribution from Generation
Lower Group Normalised PAT Mainly due to Lesser Contribution from Generation Business KEY HIGHLIGHTS Normalised PAT 1 FY’18 FY’19 Please refer to MFRS16 slide Components RM mil RM mil 2 Lower Normalised PAT mainly due to: Reported PAT 3,745.0 4,445.0 • Lower contribution from our Generation business
Slide 6: Rewarding Shareholders with a Special Dividend of 50.0 sen per Share
Rewarding Shareholders with a Special Dividend of 50.0 sen per Share in Addition to a Final Dividend of 20.0 sen per Share KEY HIGHLIGHTS DIVIDEND DIVIDEND POLICY Distribution of dividend is based on 30% to 60% dividend payout ratio, based on the reported Consolidated Net Profit Attributable to Shar
Slide 7: Positive Milestone Achieved for GAMA and No Further Impairment in 4QFY'19
Positive Milestone Achieved for GAMA and No Further Impairment in 4QFY’19 KEY HIGHLIGHTS OVERSEAS ASSETS GAMA GMR Turkey India Enerji A.S. Energy Limited (GEL) E B I T DA ( m i l ) * E B I T DA ( m i l ) * 7,500.86 669.44 5,917.96 484.23 112.94 84.07 114.17 120.10 FY'18 FY'19 FY'18 FY'19 INR USD TRY
Slide 8: Performance Surpassed Expectation for UK Investments
Performance Surpassed Expectation for UK Investments KEY HIGHLIGHTS OVERSEAS ASSETS Vortex (Solar) Wind Ventures (Wind) Saudi Malaysian Shoaiba Saudi Turkey India Consortium Arabia Arabia E B I T DA ( m i l ) E B I T DA ( m i l ) 18.36 E B I T DA ( m i l ) 47.04 14.38 41.20 1,044.73 36.84 11.73 991.
Slide 9: Regulated CAPEX Spending within Expectation
Regulated CAPEX Spending within Expectation KEY HIGHLIGHTS CAPEX RM mil 11,819.3 11,261.7 RP2 REGULATED ENTITIES CAPEX FY IBR Approved Actual YTD Utilization (RM mil) (RM mil) (%) 3,609.8 3,019.7 2018 6,263.7 6,680.0 2019 6,188.1 7,097.6 1,240.9 2020 6,391.4 -* 1,654.9 TOTAL 18,843.2 13,777.6 73.1 *
Slide 10: Financial Details, Key Highlights, Appendix
FINANCIAL DETAILS KEY HIGHLIGHTS FINANCIAL DETAILS APPENDIX 10
Slide 11: Higher Y-o-Y Revenue due to Increase in Sales of Electricity
Higher Y-o-Y Revenue due to Increase in Sales of Electricity FINANCIAL DETAILS REVENUE 1 Lower Q-o-Q Sales of Electricity mainly 2QFY'19 Variance contributed by industrial sector 1QFY'19 3QFY'19 4QFY'19 FY'19 FY'18 Restated (FY'19 vs FY'18) UNITS SOLD GWh GWh GWh GWh GWh GWh GWh % 2 • Q-o-Q lower pe
Slide 12: OPEX: No Further Impairment Recorded in 4QFY'19
OPEX: No Further Impairment Recorded in 4QFY’19 FINANCIAL DETAILS OPEX without MFRS 16 1 Y-o-Y and Q-o-Q higher mainly due to increase in Variance corrective maintenance expenses from Grid 1QFY'19 2QFY'19 3QFY'19 4QFY'19 FY'19 FY'18 (FY'19 vs FY'18) business (RM mil) (RM mil) (RM mil) (RM mil) (RM m
Slide 13: Minimal Increase in Y-o-Y Generation Costs
Minimal Increase in Y-o-Y Generation Costs FINANCIAL DETAILS Y-o-Y FUEL COST Table A Table C TNB & IPP Fuel Costs for Peninsula (RM mn) Fuel Cost Related Data FY’19 FY’18 Variance Fuel Type FY'19 FY'18 Daily Average Gas Volume (mmscfd) 1,046 948 RM mil % Coal 10,047.2 11,696.0 (1,648.8) (14.1) LNG C
Slide 14: Higher Units Generated from Gas in FY'19 Due to Coal Plant Outages
Higher Units Generated from Gas in FY’19 Due to Coal Plant Outages FINANCIAL DETAILS GENERATION MIX GENERATION MIX FOR INDUSTRY (%) 0.1 0.4 0.5 0.6 0.6 0.6 4.9 3.4 3.3 3.9 3.9 3.0 2.3 3.1 0.1 0.1 0.0 2.6 4.6 0.1 0.0 0.1 0.0 0.1 57.8 57.5 52.3 53.1 53.9 55.9 54.6 53.8 54.3 55.5 42.3 44.4 41.2 40.2 41
Slide 15: Continuous Effective ICPT Implementation
Continuous Effective ICPT Implementation FINANCIAL DETAILS ICPT 1Q FY' 19 2Q FY' 19 3Q FY’ 19 4Q FY’ 19 FY' 19 (R M mil) (R M mil) (R M mil) (R M mn ) (R M mn ) Reported Total Cost of Generation 6, 092. 3 6, 302. 6 5, 903. 4 5, 844. 1 24, 142. 4 (with MFRS16) Adjustment not related to IBR: 1, 671. 6
Slide 16: Gearing Level Registered at 43.4%
Gearing Level Registered at 43.4% FINANCIAL DETAILS GEARING Statistics 31st Dec'19 31st Dec'18 RM Equivalent of Loan Value (bil) 1 Total Debt (RM' Bil) 45.4 47.8 Net Debt (RM' Bil)* 31.2 29.6 75.9% Gearing (%) 43.4 44.8 35.4 Net Gearing (%) 29.8 27.7 34.5 Fixed : Floating 98:2 95:5 Final Exposure 98
Slide 17: Financial Details, Key Highlights, Appendix
FINANCIAL DETAILS KEY HIGHLIGHTS FINANCIAL DETAILS APPENDIX 17
Slide 18: Year-on-Year (Y-o-Y) Analysis
Year-on-Year (Y-o-Y) Analysis APPENDIX 1 P&L WITH MFRS 16 Variance RM mn FY'19 FY'18 RM mn % Revenue 50,939.7 50,392.5 547.2 1.1 Operating expenses (without depreciation) (33,372.6) (37,363.4) 3,990.8 (10.7) Net loss on impairment of financial instruments (302.4) (487.3) 184.9 (37.9) Other operating
Slide 19: Year-on-Year (Y-o-Y) Analysis without MFRS 16
Year-on-Year (Y-o-Y) Analysis without MFRS 16 APPENDIX 2 PROFIT & LOSS Variance Notes: RM mn FY'19 FY'18 RM mn % Revenue 50,939.7 50,392.5 547.2 1.1 Increase mainly due to recognition of 1 Operating expenses (without depreciation) (37,619.5) (37,363.4) (256.1) 0.7 liquidated damages received by Jima
Slide 20: Quarter-on-Quarter (Q-o-Q) Analysis
Quarter-on-Quarter (Q-o-Q) Analysis APPENDIX 3 P&L WITH MFRS 16 R M mil 4QF Y '19 3QF Y '19 2QF Y '19 1QF Y '19 Revenue 12,177.1 12,641.8 12,876.0 13,244.8 Operating expenses (without depreciation) (8,528.4) (8,121.9) (8,499.1) (8,223.2) Net loss on impairment of financial instruments 111.5 (44.3) (
Slide 21: Quarter-on-Quarter (Q-o-Q) Analysis without MFRS 16
Quarter-on-Quarter (Q-o-Q) Analysis without MFRS 16 APPENDIX 4 PROFIT & LOSS Notes: RM mil 4QFY'19 3QFY'19 2QFY'19 1QFY'19 Revenue 12,177.1 12,641.8 12,876.0 13,244.8 GMR - due to reversal of deferred tax as a 1 Operating expenses (without depreciation) (9,520.3) (9,184.0) (9,601.9) (9,313.3) result
Slide 22: Net MFRS16 Impact of RM372.0 million to the Group PAT
Net MFRS16 Impact of RM372.0 million to the Group PAT APPENDIX 5 PROFIT & LOSS As of FY’19, the net impact of MFRS 16 is negative to the PAT by RM372.0mil Profit & Loss Items FY'19 Without RM mil With MFRS 16 Variance MFRS 16 Revenue 50,939.7 50,939.7 0.0 Capacity Payment (260.8) (4,507.7) 4,246.9 E
Slide 23: Lower Electricity Demand in line with Lower GDP Growth
Lower Electricity Demand in line with Lower GDP Growth APPENDIX 6 DEMAND GROWTH GDP & TNB (Peninsula) Demand Growth TNB (Peninsula) Yearly Peak Demand by Financial Year MW % 18,566 18,338 6.0 5.9 17,790 5.3 5.5 17,788 Recorded at: 4.7 5.0 4.7 4.2 4.3 18 Apr’19 at 1430hrs 16,901 16,822 4.3 16,562 3.8
Slide 24: Slower Rate of Growth and Declining Trend in Industrial Sector
Slower Rate of Growth and Declining Trend in Industrial Sector APPENDIX 7 SECTORAL GROWTH (PENINSULA) Industrial Commercial Y-o-Y (0.1%) 4Q main contributors for the drop : Y-o-Y 3.0% • Iron & steel 2.2% 2.6% (2.8%) (2.1%) • Electric & Electronic 4.2% 2.9% 2.4% 2.4% • Cement Products 10,078 11,359 1
Slide 25: Other Regulatory Adjustment (Part 1)
Other Regulatory Adjustment (Part 1) APPENDIX 8 REGULATORY ADJ. 1QFY’19 2QFY’19 3QFY’19 4QFY’19 YTD FY’19 Components of Other Regulatory Adjustment (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) Excess Revenue for Revenue Cap & Price Cap 218.7 223.9 198.6 171.0 812.2 Refund of Excess Single Buyer Work
Slide 26: Other Regulatory Adjustment (Part 2)
Other Regulatory Adjustment (Part 2) APPENDIX 9 REGULATORY ADJ. Revenue Cap (Transmission, Dist. Net, GSO & SBO) Price Cap (Customer Service/Retail) Answer: • Revenue cap entities are not allowed to earn a revenue • Any excess revenue earned due to higher Average Selling higher than their allowed an
Slide 27: Operating Expenses
Operating Expenses APPENDIX 10 OPEX WITH MFRS 16 Variance 1QFY'19 2QFY'19 3QFY'19 4QFY'19 FY'19 FY'18 (FY'19 vs FY'18) (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) RM mil % Non-TNB IPPs Costs 3,581.0 3,210.2 3,535.9 3,237.5 13,564.6 16,057.7 (2,493.1) (15.5) 1 MFRS 16 adjustments : Capacity
Slide 28: Higher Fuel Costs for Peninsula in 4QFY'19
Higher Fuel Costs for Peninsula in 4QFY’19 due Higher Unit Generated from Coal with the Commissioning of Jimah East Power APPENDIX 11 Q-o-Q FUEL COST Table A Table C TNB & IPP Fuel Costs Peninsula (RM mil) Fuel Cost Related Data 4QFY’19 3QFY’19 2QFY’19 1QFY’19 Variance Fuel 4QFY'19 3QFY'19 2QFY'19 1
Slide 29: Continuous Downward Trending of Coal Price will Relieve Pressure on Future ICPT
Continuous Downward Trending of Coal Price will Relieve Pressure on Future ICPT APPENDIX 12 COAL PRICE Coal Price Trending 458.1 422.6 428.4 395.8 376.6 411.1 362.7 361.4 361.2 347.7 337.5 375.3 359.9 347.0 361.7 352.0 340.5 331.3 327.9 291.9 320.3 301.9 256.2 254.1 254.6 256.7 243.2 248.2 233.0 230
Slide 30: Fuel Costs (TNB & IPPs – Peninsula)
Fuel Costs (TNB & IPPs – Peninsula) APPENDIX 13 GENERATION MIX Fuel Costs Units Generated Coal IPP, 24.9 Solar TNB, 0.1 Coal IPP, 23.1 Solar IPP, 0.5 Oil IPP, 0.0 Oil TNB, 0.1 Coal TNB, 23.4 Oil IPP, 0.1 Hydro, 3.1 Coal IPP, 24.7 Dist. IPP, 0.0 Coal IPP, 24.5 Oil TNB, 0.1 Dist. IPP, 0.1 Dist. TNB, 0
Slide 31: Higher Coal Requirement Expected for 2020 due to Full Commissioning of Jimah East
Higher Coal Requirement Expected for 2020 due to Full Commissioning of Jimah East Power APPENDIX 14 COAL FORECAST Average Coal Price (CIF) FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY’19 USD/metric tonne (MT) 83.6 75.4 66.0 55.7 72.7 95.9 79.3 RM/metric tonne (MT) 259.5 244.6 236.0 231.1 314.7 388.1 326.3
Slide 32: Improved Technical Performance for Grid Business
Improved Technical Performance for Grid Business APPENDIX 15 TECHNICAL RESULTS Equivalent Plant Availability System Minutes SAIDI Factor (EAF) (Transmission) (Distribution Network) (Generation) TITLE D TITLE E 83.4%* 0.27 mins 48.1 mins* FY’18: 89.9%* FY’18 : 0.35 mins FY’18 : 48.2 mins* *The figure
Slide 33: TNB Shareholding
TNB Shareholding APPENDIX 16 SHAREHOLDING Shareholding as at Dec’19 Top 10 KLCI Stocks by Market Capitalization as at Dec’19 Total Govt. Agencies 67.1% RM bil Maybank 97.1 Khazanah Nasional Berhad 17.5 15.5 Public Bank 75.5 Permodalan Nasional Berhad TNB 75.4 (2.4%) Employees Provident Fund 6.8 Boar
Slide 34: Thank You
THANK YOU CoE INVESTOR RELATIONS GROUP FINANCE DIVISION Tenaga Nasional Berhad 4th Floor, TNB Headquarters No.129, Jalan Bangsar, 59200 Kuala Lumpur, MALAYSIA Tel : +603 2108 2128 Fax : +603 2108 2034 Email : tenaga_ird@tnb.com.my Website : www.tnb.com.my IR OFFICERS: Disclaimer 1) Anis Ramli • +603
Tenaga Nasional Berhad — FY2019 Earnings Presentation on 6ix