Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Q1 FY2024 Earnings Presentation
39 slides from Tenaga Nasional Bhd's earnings presentation, Jun 4, 2024
Slide 1: Analyst Briefing 1QFY2024
Skeleton version ANALYST BRIEFING ANALYST BRIEFING 1QFY2024 1QFY2024 4 June 2024 4 June 2024
Slide 2: TNB leads in energy transition, supporting nation's decarbonisation efforts
Energy TNB leads in energy transition, leveraging on our energy infrastructure while fully Landscape supporting the nation’s decarbonisation efforts Expanding RE generation portfolio via Large Scale Solar Programme (LSS5) • LSS5 offers 2,000MW total capacity, including a new category for floating so
Slide 3: Committed to sustainable agenda; growing our RE portfolio
Energy Deliver Clean We remain committed to driving our sustainable agenda; Generation Landscape forging ahead with growing our RE portfolio Projects 2024 Outlook 1QFY2024 Key Highlights Nenggiri Hydro Solar Greenfield Project Development (UK) Sungai Perak Hydro Life • Finalisation of new PPA 651MW
Slide 4: Regulated business on track with 25% CAPEX utilisation; RP4 progressing
Energy Energy Develop Energy Our regulated business performance is on track with 25% CAPEX utilisation Landscape Transition Network Landscape meanwhile RP4 proposal assessment is progressing as scheduled RP4 proposal is anchored on 6 MESI outcomes; 1QFY2024 enabling Energy Transition while Regulated
Slide 5: Building an intelligent, resilient and flexible grid system
Energy Develop Energy As a responsible grid owner, building and maintaining an intelligent, Landscape Transition Network resilient and flexible electricity grid system is crucial to enable faster adoption of increased renewable energy 1QFY2024 Key Achievements Smart Meter Installation progress: FY20
Slide 6: Delivering power at scale for data centres
Energy Energy Develop Energy Our ability to deliver power at scale and speed has supported the growth in data Landscape Transition Network Landscape centres across the country; successfully delivered 2 projects under Green Lane Pathway Data Centres 2024 Outlook 1QFY2024 Key Achievements Under Green
Slide 7: GSPARX rooftop solar installations
Energy Dynamic Energy GSPARX boosted its contribution to Malaysia’s green energy landscape by facilitating Solutions Landscape the transition of consumers to prosumers through rooftop solar installations 1QFY2024 Key Achievements Key Achievement NETR Project SP Setia Mall & SP Setia Corporate HQ Pro
Slide 8: EV charge points across the nation
Dynamic Energy TNB strategically installed charge points across the nation to proliferate Solutions the EV ecosystem and advancing electrification for transportation sector 1QFY2024 Key Achievements TNB Charge Points Location Key Achievement Kedah Kelantan Charge Points DC 1. MARA Langkawi DC 2. R&R
Slide 9: 1QFY2024 revenue, EBITDA and PAT
Amid stronger electricity demand, our 1QFY2024 PAT was impacted by GenCo underperformance and forex translation loss REVENUE EBITDA PAT 8% 1.6% 27.2% 1QFY2024 1QFY2024 1QFY2024 RM13,640.4 mil RM4,805.0 mil RM677.9 mil EBITDA MARGIN: 35.2% 1QFY2023: RM 12,625.6 mil 1QFY2023: RM 4,883.7 mil 1QFY2023:
Slide 10: Strong network performance supports group earnings
Group earnings supported by strong and world-class network performance 1QFY2024 Equivalent Plant Availability Factor, EAF 75.4% EAF performance impacted by Manjung 4 downtime (Generation) 1QFY2023: 84.4% % 2024 Target: 78.6% 1QFY2024 System Minutes (Transmission) Minutes 0.00 1QFY2023: 0.01 2024 Int
Slide 11: Lower receivables and strong cash flow position
Y-o-Y: Lower receivables contributed by lower ICPT and strong collection trend, strengthening our cash flow position 1 ICPT Cost Receivables (RM bil) Recovery for • As of May 2024, TNB has fully recovered RM4.7 bil 2HFY2023 of ICPT cost for the period of July to December 2023. 46% RM4.7 bil 2 • Stro
Slide 12: Forward guidance for 2024
Energy Energy Looking ahead into 2024, we will continue to drive our strategic initiatives Forward Guidance Landscape Landscape to pursue business growth while fulfilling our Net Zero commitments Regulatory Period 4 Demand growth is projected to be between Proposal: Anchored on the 6 MESI outcomes;
Slide 13: Appendix
Appendix 1QFY2024 o Details on Financial Results o Generation Business Performance o International Business Performance o Shareholdings
Slide 14: Year-on-Year (Y-o-Y) analysis
Year-on-Year (Y-o-Y) analysis Variance RM mil 1QFY'24 1QFY'23 RM mil % Revenue 1 13,640.4 12,625.6 1,014.8 8.0 Y-o-Y analysis: Imbalance Cost Pass Through (ICPT) 2 2,353.0 3,632.3 (1,279.3) (35.2) 1 Operating expenses (without depreciation) (11,302.4) (11,641.5) 339.1 (2.9) Higher Group revenue driv
Slide 15: Quarter vs previous quarter analysis
Quarter vs previous quarter (1QFY2024 vs 4QFY2023) analysis Variance RM mil 1QFY'24 4QFY'23 RM mil % Revenue 13,640.4 13,652.0 (11.6) (0.1) Q-vs-PrevQ analysis: Imbalance Cost Pass Through (ICPT) 2,353.0 2,106.6 246.4 11.7 1 Operating expenses (without depreciation) 1 (11,302.4) (11,964.0) 661.6 (5.
Slide 16: Y-o-Y normalised EBITDA and PAT for 1QFY2024
Y-o-Y normalised EBITDA and PAT for 1QFY2024 EBITDA 1QFY'24 1QFY'23 1 MFRS16 impact: 1QFY'24 1QFY'23 Variance Actual figure Components RM mil RM mil input tab (to RM mil RM mil RM mil Reported EBITDA 4,805.0 4,883.7 MFRS16 impact 1 (1,040.2) (1,082.1) Capacity Payment 1,040.2 1,082.1 (41.9) Normalis
Slide 17: Higher revenue driven by demand growth and TNBI operations
Higher revenue driven by demand growth and contribution from TNBI operations Variance Variance 1QFY'24 4QFY'23 1QFY'24 1QFY'23 1 1QFY’24 vs 4QFY’23: Higher units sold (1QFY'24 vs 4QFY'23) (1QFY'24 vs 1QFY'23) and sales of electricity from commercial UNITS SOLD GWh GWh GWh % GWh GWh GWh % and domesti
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 (Peninsular) Yearly Peak Demand 8.7 Full Year 5.9 * MW 4.7 4.2 4.3 3.7 20,028 3.1 19,183 19,716 6.0 3.6 18,808 2.5 2.5 3.2 18,585 2.7 -4.9 1.2 Recorded on: FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 29 April 2024 at
Slide 19: Increased demand across all sectors
Increased demand across all sectors mainly contributed by commercial and domestic Industrial Commercial 3.0% 11.2% 1QFY’24 main contributors for the increase in industrial & commercial sectors: Industrial • Iron & steel, utility electrical and electronics Commercial • Retails, business services and
Slide 20: Other regulatory adjustment of RM468.4 mil to be returned
As at 1QFY2024, other regulatory adjustment of RM468.4 mil to be returned 1QFY'24 1QFY'23 Components of Other Regulatory Adjustment RM mil RM mil Revenue Adjustment for Revenue Cap & Price Cap 1 (412.4) (1.4) Refund Related to Regulated Business (66.7) (71.1) Regulatory Adjustment for SESB* 10.7 (3.
Slide 21: Lower Y-o-Y operating expenses due to lower fuel and power purchase cost
Lower Y-o-Y operating expenses due to lower fuel and power purchase cost Variance Variance 1QFY'24 4QFY'23 1QFY'24 1QFY'23 (1QFY'24 vs 4QFY'23) (1QFY'24 vs 1QFY'23) RM mil RM mil RM mil % RM mil RM mil RM mil % Non-TNB IPPs Costs 4,233.4 3,992.1 241.3 6.0 4,233.4 3,708.3 525.1 14.2 Capacity Payment
Slide 22: Lower overall fuel costs due to lower fuel prices
Lower overall fuel costs due to lower fuel prices in 1QFY2024 Table A – TNB & IPP Fuel Costs for Peninsular (RM mil) Table C – Fuel Costs Related Data Variance Fuel Type 1QFY'24 1QFY'23 RM mil % Fuel statistics 1QFY'24 1QFY'23 Coal 4,201.5 5,589.3 (1,387.8) (24.8) Average Coal Price Delivered (USD/M
Slide 23: Q-o-Q: Higher generation from gas
Q-o-Q: Higher generation from gas in 1QFY2024 Generation Mix for Industry (%) 1.6 1.7 1.6 1.3 1.5 2.0 5.1 4.0 4.5 4.8 4.6 5.9 0.1 0.2 0.3 0.1 0.2 0.1 53.7 60.1 58.5 55.6 57.0 52.5 39.5 34.0 35.0 38.2 36.7 39.4 1QFY'23 2QFY'23 3QFY'23 4QFY'23 FY2023 1QFY'24 Gas Coal Oil & Distillate Hydro Solar 23
Slide 24: Fuel Costs & Units Generated in 1QFY2024
Fuel Costs & Units Generated (TNB & IPPs – Peninsular) in 1QFY2024 Units Fuel Costs Generated Distillate TNB, 0% Distillate TNB, 0% Distillate IPP, 1% Distillate IPP, 0% LNG, 0% Oil TNB, 0% Oil TNB, 0% Oil IPP, 0% Oil IPP, 0% Solar TNB, 0% Gas IPP, Hydro, 6% Solar IPP, 2% Distillate TNB, 0% 20% Dist
Slide 25: TNB is neutral to volatility in fuel costs under ICPT
TNB is neutral to volatility in fuel costs under the ICPT framework 1QFY'23 2QFY'23 3QFY'23 4QFY'23 1QFY'24 (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) Single Buyer Actual Generation Costs: (A) 11,260.0 11,022.4 10,238.5 10,357.3 10,710.6 Actual Sales (GWh) 29,113.2 31,153.3 31,448.1 31,491.4 31,89
Slide 26: Fuel Margin: Coal Price Trending
Fuel Margin: Coal Price Trending 1,100.00 1,040.10 Applicable Coal Price (ACP) vs Moving Average Price (MAP) 1,023.80 1,000.00 960.40 1,022.32 1,028.10 900.00 850.94 FY2023 FY2024 800.00 696.30 700.00 779.40 626.40 623.10 600.00 557.21 543.37 ACP<MAP 540.43 600.64 524.59 Negative 500.00 554.88 539.4
Slide 27: Industry coal requirement forecast for FY2024
Industry coal requirement forecast for FY2024 Coal Consumption (mil MT) Source Country Mix 3.0% 34.7 33.1 6.0% 30.8 32.3 31.9 31.4 27.4 28.8 25.4 20.0% 22.2 71.0% * FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 (F) Indonesia Australia * Based on tonnage planned for delivery in FY2024 Russia Sout
Slide 28: Group CAPEX, Regulated CAPEX and RAB
Group CAPEX Regulated CAPEX and Regulated Asset Base (RAB) RM mil 2,031.9 1,585.5 229.1 175.2 RP3 REGULATED ENTITIES CAPEX FY IBR Approved Actual YTD Utilisation 393.2 268.2 RM mil RM mil (%) 2024 6,413.3 1,623.4 25.3% 1,228.3 976.2 Total RAB (RM mil) Actual Approved As at 31 Mar 2024 FY2024 65,485.
Slide 29: Gearing improved to 50.1% as at 1QFY2024
Gearing improved to 50.1% as at 1QFY2024 31 Mar 2024 31 Dec 2023 Loan Breakdown Total Debt RM1.2 bil RM1.4 bil MYR (RM bil) 60.4 61.8 RM3.8 bil 2%2% USD RM1.5 bil 6% Net Debt* 3% 2% JPY 40.0 40.8 6% 2% GBP (RM bil) 3% RM9.2 bil RM1.4 bil EUR Gearing 15% 14% RM1.2 bil 50.1 50.3 RM8.8 bil RM3.6 bil AU
Slide 30: Trade receivables as at 1QFY2024
Trade receivables as at 1QFY2024 Trade Debtors Ageing (RM bil) Trade Receivables By Sectors (RM bil) 5.2 5.6 5.5 5.0 5.1 5.2 5.6 5.5 5.0 5.1 Total 1% 2% 2% 2% 2% Current 33% 35% 35% 34% 35% Others 1.5 1.4 1.2 1.3 1.5 1 Month 0.4 0.3 0.3 Domestic 0.6 0.7 0.7 0.3 0.4 0.6 0.5 2 to 5 Months 38% 37% 37%
Slide 31: Domestic generation business performance
Domestic generation business performance RM mil REVENUE EBIT PROFIT AFTER TAX 7,463.4 5,752.6 206.7 174.8 (80.4) (77.1) 1QFY'24 1QFY'23 1QFY'24 1QFY'23 1QFY'24 1QFY'23 Lower EBIT and PAT mainly due to: • Capacity payment loss, mainly from M4 (RM140.8 mil); and • Higher tax expenses. Note: Includes g
Slide 32: Revenue from coal below 25% due to M4 outage
Revenue from coal recorded below 25% due to M4 outage Actual Group Revenue* 19% 29% 4% 1% RE Coal Others ** 1QFY’23 * Total revenue includes ICPT ** Others include revenue from regulated business, subsidiaries 70% 1QFY’24 and generation from gas 77% Long-term aspiration: ▪ No new coal plant investme
Slide 33: Our RE journey is progressing well
Our RE journey is progressing well TNB RE Portfolio Renewable capacity (MW) 10,534 Secured capacity % RE in TNB’s portfolio International 6,216 Domestic 20% 17% 4,302 3,889 1,183 1,183 993 20% 3,135 3,119 2,896 4,318 Mar Dec Dec 2024 2023 2022 Note: • Gross RE Capacity includes large hydro • Solar c
Slide 34: International Investments: Renewable Energy
International Investments: Renewable Energy (RE) TNB International Sdn Bhd (TNBI) TNBI is a TNB wholly owned subsidiary incorporated under the laws of Malaysia. Vantage RE TNBI is a platform focused on capturing renewable energy Spark Renewables opportunities, attracting a broader range of financier
Slide 35: International Investments: Renewable Energy
International Investments: Renewable Energy (RE) TNB INTERNATIONAL SDN BHD Financial Performance Higher EBITDA Y-o-Y (1QFY’24: RM 116.9mil vs 1QFY’23 RM93.6 mil) due to: • Additional contribution from newly acquired solar portfolio in the Ireland (276MW) in December 2023 and higher locked-in PPA pri
Slide 36: International Investments: Non-Core Assets
International Investments: Non-Core Assets Financial Performance Higher Y-o-Y EBITDA 1QFY’24 RM170.9 mil (SAR135.8 mil) vs 1QFY’23 RM134.3 mil (SAR115.0 mil) due to lower direct operating cost and lower general & admin expenses in March 2024. Outlook: Shuaibah remains largely unimpacted by the Russi
Slide 37: Shareholdings
Shareholdings Khazanah Nasional Berhad 17.3 18.3 Permodalan Nasional Berhad (PNB) 16.8 Employees Provident Fund 18.3 7.4 Board (EPF) 7.5 1.7 1.9 Kumpulan Wang Persaraan (KWAP) (%) Other Government Agencies 22.6 20.6 22.6 19.4 Local Corporation & Retail 12.5 Africa Foreign Shareholding 0.01% 13.1 Asi
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: Investor Relations
INVESTOR RELATIONS IR OFFICERS: GROUP FINANCE DIVISION Tenaga Nasional Berhad Sarah Keok Level 12, Tower A, TNB Platinum +603 2108 2126 | sarahk@tnb.com.my No. 3, Jalan Bukit Pantai, Bangsar 59100 Kuala Lumpur Hasniza Harun +603 2108 3461 | hasniza@tnb.com.my Tel : +603 2108 2128 Intan Nur Najihah B
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