Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Shareholder Meeting (December 2016)
13 slides from Tenaga Nasional Bhd's shareholder meeting presentation, Dec 15, 2016
Slide 1: 26th Annual General Meeting
26TH ANNUAL GENERAL MEETING MINORITY MINORITY SHAREHOLDER SHAREHOLDER WATCHDOG WATCHDOGGROUP GROUP th th 1515 December December 2016 2016 A BRIGHTER TOMORROW BEGINS WITH A BETTER TODAY. Prepared by: Investor Relations & Management Reporting Department
Slide 2: MSWG Q1: ICPT and Incentive Based Regulation
MSWG 26th AGM Q1 The Chairman’s Letter to Shareholders and the CEO’s Strategic & Operational Review reported that the Imbalance Cost Pass-Through (“ICPT”) mechanism as part of a wider regulatory framework called the Incentive Based Regulation (“IBR”) would ensure and sustain a stable financial perfo
Slide 3: Q1a: ICPT versus FCPT mechanism
MSWG 26th AGM Q1a Given the impact of ICPT implementation is neutral on TNB’s earnings with no effect to its business operations and financial position, how would the Board rationalise its choice as compared with the Fuel Cost Pass-Through (FCPT) mechanism which would allow it to increase tariffs ev
Slide 4: Q1a: ICPT versus FCPT mechanism (continued)
MSWG 26th AGM Q1a Given the impact of ICPT implementation is neutral on TNB’s earnings with no effect to its business operations and financial position, how would the Board rationalise its choice as compared with the Fuel Cost Pass-Through (FCPT) mechanism which would allow it to increase tariffs ev
Slide 5: Q1b: Impact of fuel subsidy removal
MSWG 26th AGM Despite the positive impacts from IBR and ICPT to the Company, Q1b what would be the long term implications and how would the Board assess their impact to the Company upon the Government’s decision to stop the fuel subsidies completely under rationalisation plan? Answer: • As long as t
Slide 6: Q1c: ICPT rebates and Power Purchase Agreements
MSWG 26th AGM Q1c What would be the Board’s perspectives when reviewing ICPT rebates through managing fuel cost imbalance as compared to possible savings that could be earned via the Company’s Power Purchase Agreements with various independent parties over the longer term? Answer: • Any possible sav
Slide 7: Q1d: Fuel-efficient technologies and renewable energy
MSWG 26th AGM Q1d Are there any fuel-efficient technologies and renewable energies/renewable fuels that the Board could have envisioned in its Strategic Plan (2015-2025) as part of the Group’s material sustainability issues amid its current mixed portfolio of coal-fired power plants and gas-fired po
Slide 8: Q1d: Fuel-efficient technologies and renewable energy (continued)
MSWG 26th AGM Q1d Are there any fuel-efficient technologies and renewable energies/renewable fuels that the Board could have envisioned in its Strategic Plan (2015-2025) as part of the Group’s material sustainability issues amid its current mixed portfolio of coal-fired power plants and gas-fired po
Slide 9: Q1d: Generation mix and renewable energy (continued)
MSWG 26th AGM Q1d Are there any fuel-efficient technologies and renewable energies/renewable fuels that the Board could have envisioned in its Strategic Plan (2015-2025) as part of the Group’s material sustainability issues amid its current mixed portfolio of coal-fired power plants and gas-fired po
Slide 10: Q1d: Feed-in Tariff and renewable energy target (continued)
MSWG 26th AGM Q1d Are there any fuel-efficient technologies and renewable energies/renewable fuels that the Board could have envisioned in its Strategic Plan (2015-2025) as part of the Group’s material sustainability issues amid its current mixed portfolio of coal-fired power plants and gas-fired po
Slide 11: Q2: Impairment and past due receivables
MSWG 26th AGM Q2 On page 179, Note 5 to the financial statements, it was reported that the allowance for impairment of the Group’s receivables had increased to RM686.6 mn in 2016 from RM178.8 mn last year. It was also reported on pages 242-243, Note 47 (b) (i) that the ageing of the Group’s trade re
Slide 12: Q2a: Reasons for increased impairment and receivables
MSWG 26th AGM Q2a What were the reasons for the increase in the impairment and increased amount of trade receivables past due more than 240 days? Answer: • The increase in impairment is primarily due to provision made for Megasteel of RM371.0 million, due to default in the Consent Order. The account
Slide 13: Q2b: Actions to mitigate impairment and past due receivables
MSWG 26th AGM Q2b What are the Board’s actions to mitigate the impairment and to reduce past due receivables? Answer: • Enhancement of Disconnection process through standardisation on the terms and conditions of Disconnection contract. • Appointment of Credit Reporting Agencies. • Issuance of mass L
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