Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — 9MFY2022 Earnings Presentation
39 slides from Tenaga Nasional Bhd's earnings presentation, Dec 8, 2022
Slide 1: 3Q FY2022 Analysts Briefing
3Q FY2022 Analysts Briefing 8 December 2022 1 Tenaga Nasional Berhad 199001009294 (200866-W) Tenaga Nasional Berhad 199001009294 (200866-W)
Slide 2: Key Highlights: Fair performance and prudent capital management sustained
Key Highlights: Fair performance and prudent capital management sustained amidst challenging times 1 2 9MFY22 Prudent Capital Performance Management a) Sustained resilient financial performance a) Timely ICPT cost recovery and utilisation of Government guaranteed funding in b) Solid technical operat
Slide 3: Fair 9MFY22 financial performance supported by higher electricity demand
Fair 9MFY22 financial performance supported by the higher Group electricity 1a demand of 7.2% year-on-year, in line with Malaysia economic growth REVENUE EBITDA PROFIT AFTER TAX +6.6% EBITDA margin (without ICPT) 43.0% 40.4% ICPT (without ICPT) 15,917.6 53,870.2 Revenue ICPT EBITDA +13.4% PAT (RM mi
Slide 4: Solid generation and world-class network performance support Group earnings
1b Solid generation and world-class network performance support our Group earnings Target 82.80% EAF performance secured generation 82.80% 83.84% assets’ capacity revenue Equivalent Plant Availability Factor, EAF (Generation) % 9MFY22 9MFY21 Internal 2.00 threshold 0.09 0.01 System Minutes (Transmis
Slide 5: ICPT cost recovery and government guarantee support working capital
The Government has honoured ICPT cost recovery and provided guarantee to support TNB’s 2 working capital. We continue to be prudent and proactive in our capital management. ICPT Cost Recovery Efforts Total Receivables (RM bil) ICPT Cost Recovery a1a Received for period July to November 2022 10.6 14.
Slide 6: Forward Guidance
Forward Guidance The Group foresees a reasonable performance for the financial year 2022 despite a challenging environment ELECTRICITY DEMAND DELIVERING VALUE TO OUR SHAREHOLDERS Stronger demand growth, We will continue to honour our outperforming the 1.7% growth dividend policy of (115,835 GWh) in
Slide 7: Key Highlights: Sustainability journey toward 2050 Net Zero Aspiration
Key Highlights: Sustainability journey toward 2050 Net Zero Aspiration continue to progress well 3 Sustainable Growth Committed in delivering value to shareholders while aspiring to be a leading provider of sustainable energy solutions through progress in our strategic pillars: a) Future Generation
Slide 8: Sustainable capacity expansion through healthy pipeline of projects
Sustainable capacity expansion through healthy pipeline of projects 3a Future Generation Sources ensure business growth while supporting the Group’s decarbonisation agenda Emission Avoidance COD (Equivalent to CO2 emission) • In view of high PV panel price, Energy Commission has approved the extensi
Slide 9: Genco continues to build value through pipeline of projects
Future Generation Genco continues to build value through pipeline of projects starting Sources with the hydro LEP in 2025, ensuring sustainable revenue flow 2025 Sungai Perak Hydro Life Extension Programme (LEP) 2029 ~RM5.8 bil (PPA: 40 years) Paka Repowering Received Letter of Award (LOA) ~RM6.3 bi
Slide 10: Continuous investment in grid modernisation and regional interconnection
Our continuous investment in grid modernisation will spur regional 3b Grid of the Future interconnection expansion while further strengthen our position in the Energy Transition space Regional interconnections RP3 Approved 13% (RM2.54 bil) Supporting the Energy Transition (ET) and Benefits of region
Slide 11: Winning the Customer: GSPARX and EV growth
We continue to win customers trust, evidenced through robust 3c Winning the Customer growth seen in GSPARX and exciting developments in the Electric Vehicle (EV) space EV GSPARX (Charging Infrastructure & Platform) GSPARX is committed in generating new revenue stream to the Group as TNB aims to acce
Slide 12: Appendix
Appendix 3Q FY2022 o Details on Financial Results o GenCo Performance o International Business Performance o Shareholdings Analysis
Slide 13: Year-on-Year (Y-o-Y) analysis
Year-on-Year (Y-o-Y) analysis Variance Y-o-Y analysis: RM mil 9MFY22 9MFY21 RM mil % 1 Higher revenue mainly due to Revenue 1 53,870.2 36,894.4 16,975.8 46.0 ICPT surcharge of RM15,917.6 Operating expenses (without depreciation) 2 (38,104.5) (22,143.2) (15,961.3) 72.1 mil (9MFY21 surcharge of Net lo
Slide 14: Quarter vs Previous Quarter (3QFY22 vs 2QFY22) analysis
Quarter vs Previous Quarter (3QFY22 vs 2QFY22) analysis Variance RM mil 3QFY22 2QFY22 RM mil % Q vs Previous Quarter analysis: Revenue 19,071.4 19,140.3 (68.9) (0.4) Operating expenses (without depreciation) 1 (13,533.1) (13,907.8) 374.7 (2.7) 1 Lower OPEX mainly due to Net loss on impairment of fin
Slide 15: Y-o-Y normalised EBITDA & PAT for 9MFY22
Y-o-Y normalised EBITDA & PAT for 9MFY22 EBITDA 9MFY22 9MFY21 1 Please refer MFRS16 impact slide for details. Components RM mil RM mil Reported EBITDA 16,314.2 14,392.7 Impairment - 455.8 2 Additional ADD for TNB* 62.2 431.0 Lower normalised PAT in 9MFY22 mainly due to higher tax MFRS16 impact 1 (3,
Slide 16: Higher Y-o-Y sales of electricity and contribution from subsidiaries
Higher Y-o-Y sales of electricity and contribution from subsidiaries, driven by stronger economic growth Variance Variance 1 3QFY22 2QFY22 9MFY22 9MFY21 3QFY22 vs 2QFY22: Higher units sold and (3QFY22 vs 2QFY22) (9MFY22 vs 9MFY21) sales of electricity mainly from commercial and UNITS SOLD GWh GWh GW
Slide 17: Other regulatory adjustment to be returned
As at 9MFY22, RM679.4 mil of other regulatory adjustment to be returned 1QFY22 2QFY22 3QFY22 9MFY22 Components of Other Regulatory Adjustment (RM mil) (RM mil) (RM mil) (RM mil) 1 Revenue Adjustment for Revenue Cap & Price Cap (44.2) (239.4) (211.8) (495.4) Refund Related to Regulated Business (113.
Slide 18: 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 (Peninsula) Yearly Peak Demand 5.9 5.0 * Full Year 4.2 4.7 4.3 MW 19,183 3.1 18,808 3.2 18,566 2.2 2.5 2.5 2.7 18,338 1.2 FY15 FY16 FY17 FY18 FY19 FY20 FY21 17,788 17,790 18,585 -4.9 Recorded on: 16,901 16,822 24 May 22 -
Slide 19: Improved Y-o-Y electricity demand across all sectors
Improved Y-o-Y electricity demand across all sectors Industrial 9MFY22 main contributors for the increase in: Commercial 5.8% Industrial sector 19.2% • Misc. consumer product, wood and cement products (0.2%) 5.8% 12.5% 10.2% 17.6% 30.9% Commercial sector • Retails, accommodation and business service
Slide 20: Higher Y-o-Y operating expenses due to increase in generation cost
Higher Y-o-Y operating expenses due to increase in generation cost Variance Variance 3QFY22 2QFY22 9MFY22 9MFY21 (3QFY22 vs 2QFY22) (9MFY22 vs 9MFY21) (RM mil) (RM mil) RM mil % (RM mil) (RM mil) RM mil % 1 Non-TNB IPPs Costs 5,337.5 4,123.7 1,213.8 29.4 12,901.8 5,620.4 7,281.4 >100.0 3QFY22 vs 2QF
Slide 21: Higher Y-o-Y fuel costs mainly due to higher fuel prices
Higher Y-o-Y fuel costs mainly due to higher fuel prices Table A – TNB & IPP Fuel Costs for Peninsula (RM mil) Table C – Fuel Costs Related Data Variance Fuel Type 9MFY22 9MFY21 Fuel statistics 9MFY22 9MFY21 RM mil % Average Coal Price Delivered (USD/MT)(CIF) 209.7 97.8 Coal 20,810.4 9,485.8 11,324.
Slide 22: Lower 3Q vs 2Q fuel costs due to higher hydro generation
Lower 3Q vs 2Q fuel costs due to higher generation from hydro plants Table A – TNB & IPP Fuel Costs for Peninsula (RM mil) Table C – Fuel Costs Related Data Variance 3Q vs 2Q Fuel Type 3QFY22 2QFY22 1QFY22 Fuel statistics 3QFY22 2QFY22 1QFY22 RM mil % Coal 7,418.2 8,410.4 4,981.8 (992.2) (11.8) Aver
Slide 23: Higher units generated from hydro in 3QFY22
Higher units generated from hydro in 3QFY22 Generation MIx for Industry (%) 0.9 0.9 0.9 0.8 0.9 0.9 1.2 1.4 6.6 5.0 5.1 5.2 5.5 4.8 3.5 6.3 0.1 0.0 0.1 0.3 0.1 1.1 0.4 0.0 56.5 57.7 54.1 57.8 60.9 59.2 56.5 61.9 37.6 36.0 39.1 37.1 35.8 30.5 33.0 34.3 1QFY21 2QFY21 3QFY21 4QFY21 FY21 1QFY22 2QFY22 3
Slide 24: Fuel Costs & Units Generated (TNB & IPPs – Peninsula)
Fuel Costs & Units Generated (TNB & IPPs – Peninsula) Fuel Costs Units Generated Distillate TNB, 1% Distillate IPP, 1% Distillate TNB, 0% LNG, 0% Distillate IPP, 0% Oil TNB, 0% Oil TNB, 0% Oil IPP, 0% Hydro, 5% Oil IPP, 0% Solar TNB, 0% Gas IPP, Distillate TNB, 0% Solar IPP, 1% 12% Distillate IPP, 0
Slide 25: TNB is neutral to volatility in fuel costs under the ICPT framework
TNB is neutral to volatility in fuel costs under the ICPT framework 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) Reported Total Cost of Generation 6,107.3 8,438.1 8,367.1 11,634.6 11,029.5 (with MFRS16) Adjustment not related to IBR 756.6 753.6 909.5 948.3 840.2 TN
Slide 26: Coal price trending
Coal price trending 1,023.80 960.40 1,022.32 723.70 696.30 626.40 557.21 530.47 517.93 458.12 422.60 428.44 395.92 379.84 361.40 361.22 363.40 347.03 321.56 411.10 375.30 291.87 294.87 361.70 281.12 352.05 359.91 340.50 248.60 249.03 301.88 324.99 268.24 289.33 265.81 229.76 238.77 250.78 1QFY18 2QF
Slide 27: Industry coal requirement forecast for FY2022
Industry coal requirement forecast for FY2022 Coal Consumption (mil MT) Source Country Mix 4.0% 34.7 30.8 32.3 31.0 11.0% 27.4 28.8 25.4 22.2 19.0% 19.3 66.0% * FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 (F) Indonesia Australia * Based on tonnage planned for delivery in FY2022 Russia South Africa
Slide 28: MFRS 16: Group PAT is negatively impacted by RM700.5 mil
MFRS 16: Group PAT is negatively impacted by RM700.5 mil Net Impact of MFRS 16 (Y-o-Y) analysis 9MFY22 9MFY21 Variance (RM mil) (RM mil) (RM mil) Capacity Payment 3,328.0 3,149.2 178.8 Depreciation (2,902.4) (2,607.0) (295.4) Finance Cost (1,332.1) (1,097.7) (234.4) Deferred Tax 206.0 121.3 84.7 Net
Slide 29: Group CAPEX, Regulated CAPEX and Regulated Asset Base (RAB)
Group CAPEX Regulated CAPEX and Regulated Asset Base (RAB) RM mil 5,622 5,326 120.8 RP3 REGULATED ENTITIES CAPEX 671.6 687.1 FY IBR Approved Actual YTD Utilisation 664.2 (RM mil) (RM mil) (%) 4,274.9 2022 7,168.0 59.6% As at Sept’22 3,243.5 3,175.7 Total RAB (RM mil) Actual Approved 9MFY22 FY2022 60
Slide 30: Gearing stood at 51.2% in 9MFY22
Gearing stood at 51.2% in 9MFY22 Statistics 30 Sept 2022 31 Dec 2021 Loan Breakdown Total Debt (RM bil) 62.9 51.7 RM2.7 bil RM1.7 bil Net Debt (RM bil)* 50.6 42.5 3% 4% Gearing (%) 51.2 47.0 RM9.0 bil 14% 4% 5% Net Gearing (%) 41.2 38.6 15% RM2.4 bil RM8.0 bil RM2.1 bil Fixed : Floating 79% RM49.4 b
Slide 31: Improvement in trade receivables resulting from effective credit management
Improvement in trade receivables resulting from effective credit management Total Receivables (RM bil) Trade Receivables By Sectors (RM bil) Cost recovery for ICPT received from Government from June’22 to Nov’22 is RM4,833.0 mil 4.92 5.17 5.31 5.26 10.54 14.08 19.17 22.30 1% 1% 2% 2% 1.54 37% 36% 35
Slide 32: Domestic generation business performance
Domestic generation business performance RM mil REVENUE EBIT PROFIT AFTER TAX 19,959.2 14,925.0 12.2% 13.9% 2,435.9 1,110.0 2,079.6 750.9 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 Higher revenue mainly due to higher energy EBIT Margin payment resulted from higher fuel prices Note: Includes generatio
Slide 33: Our RE journey is progressing well
Our RE journey is progressing well TNB RE Journey Renewable capacity (MW) 16% 16% 15% 3,889 3,794 3,596 993 993 813 2,896 2,801 2,783 Note: - - • RE capacity includes large hydro RE Oct RE July RE April • Gross RE Capacity 2022 2022 2022 International Domestic % RE in TNB’s portfolio Recent RE Progr
Slide 34: International Business - Core/Renewable energy (RE) assets
International Business - Core/Renewable energy (RE) assets International Performance as at Sept’22 Vantage RE EM: 74% EBITDA (mil) 42.2 55.6 58.4 70.2 GBP USD 3QFY21 3QFY22 • Higher EBITDA YoY due to better operational performance from Vantage Solar and TWV which is contributed by higher generation
Slide 35: International Business – Non-core assets
International Business – Non-core assets International Performance as at Sept’22 Shuaibah EM: 90% GAMA Enerji A.S. (GEAS) EM: 25% GMR Energy Limited (GEL) EM: 41% EBITDA (mil) EBITDA (mil)1 EBITDA (mil)1 767.3 725.3 1,742.9 14,975.8 664.5 2,595.8 198.0 204.6 193.4 81.8 112.0 35.3 SAR USD INR USD TRY
Slide 36: Ensuring revenue from coal remains below 25%
Ensuring revenue from coal remains below 25%, towards longer-term aspiration Actual Group Revenue 9MFY22 (%) 3 3 * RE Related to Energy Coal Others* 22 Transition (ET) * Others include revenue from regulated entities, subsidiaries and generation from gas 72 Long-term aspiration: ▪ No new coal plant
Slide 37: TNB market capitalisation of RM46.3 bil as at 30 September 2022
TNB market capitalisation of RM46.3 bil as at 30 September 2022 Top 10 KLCI Stocks by Market Capitalisation Khazanah Nasional Berhad RM bil 18.3 15.7 Maybank 102.8 +4.3% Permodalan Nasional Berhad 98.6 (PNB) 18.4 16.2 82.1 Employees Provident Fund 7.2 Public Bank +1.7% Board (EPF) 80.8 7.4 Kumpulan
Slide 38: 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 39: Thank You
THANK YOU IR OFFICERS: 1) Sarah Keok • +603 2108 2126 INVESTOR RELATIONS • sarahk@tnb.com.my GROUP FINANCE DIVISION 2) Sakinah Mohd Ali Tenaga Nasional Berhad • +603 2108 2840 4th Floor, TNB Headquarters • sakinah.ali@tnb.com.my No.129, Jalan Bangsar, 3) Ahmad Nizham Khan 59200 Kuala Lumpur, MALAYSI
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