Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Investor Presentation (December 2022)
22 slides from Tenaga Nasional Bhd's investor presentation, December 2022
Slide 1: Tenaga Nasional Berhad Presentation to Investors
TENAGA NASIONAL BERHAD PRESENTATION TO INVESTORS Investor Relations Group Finance Division As of December 2022
Slide 2: Overview Corporate Profile
Overview Corporate Profile TNB is the largest electricity utility company in Malaysia and a trailblazer in Sole Network & Retail Provider in the country’s energy transition Peninsular Malaysia Sabah Electricity Sdn Bhd (SESB) Our grid network & retail business are governed by (83% owned by TNB) the
Slide 3: New Energy Division Portfolio
Overview Corporate Profile We are also a global player; through our New Energy Division (NED), we strive to future proof our business by expanding our RE footprint and establishing strategic partnerships with leading RE players NED’S PORTFOLIO 2021 2016 • Equity stake: 100% • Equity stake: 30% • Cap
Slide 4: Composition of BOD
Overview Composition of BOD CHAIRMAN EXECUTIVE DIRECTOR/CEO DATO’ ABDUL RAZAK ABDUL MAJID DATO' INDERA IR. BAHARIN BIN DIN Senior Independent Independent Non-Executive Directors Non-Independent Non-Executive Directors Non-Executive Directors ONG AI LIN GOPALA KRISHNAN DATUK JUNIWATI Expertise: Audit
Slide 5: Financial Performance Overview
Results at a Glance Financial Performance Overview Strong FY2022 financial performance (EBITDA) supported by higher Peninsular electricity demand at 6.0% year-on-year REVENUE EBITDA PAT +5.7% EBITDA margin 40.9% 39.0% 50,867.7 48,119.9 Revenue (RM mil) EBITDA (RM mil) +10.9% PAT (RM mil) (8.0%) 20,8
Slide 6: Technical Performance Overview
Results at a Glance Technical Performance Overview Group earnings supported by; (i) Improved generation business (ii) World-class network performance Year Achievement Target 2021 83.0% 86.1% 2022 83.2% 82.8% EAF performance secured generation Equivalent Plant Availability Factor, EAF assets’ capacit
Slide 7: Dividend
Dividend We strive for sustainable dividends to ensure long term value for the shareholders, proven by our historical dividend payout record 55.8% 56.0% 58.5% 52.8% 55.2% 7.5% 7.7% 4.3% 4.8% DIVIDEND POLICY 3.9% We will continue to honour our dividend policy of 30% to 60% dividend payout 50.0 ratio,
Slide 8: Regulated Business
Regulatory Regulated Business Our regulated business is governed by the Incentive-Based Regulation (IBR) framework which provides stable returns to the Group while ensuring a more efficient energy sector The IBR mechanism provides: • Clear and transparent regulatory framework • Consistent and stable
Slide 9: IBR Regulatory Period (RP3) Parameters
Regulatory IBR Regulatory Period 3 (RP3) Parameters The Government has approved the RP3 parameters and we have secured higher CAPEX with a fair WACC for the next 3 years (2022-2024) Base Tariff sen/kWh 38.53 39.45 39.45 39.95 RP3 determination (2022 -2024) Regulated Business 11.77 12.40 13.65 13.75
Slide 10: ICPT Mechanism
Regulatory ICPT Mechanism To date, the Government has successfully managed the impact of fuel prices volatility for the past 17 ICPT* cycles since 2015 RP2 RP2 Extension RP3 RP1 (2015 – 2017) (2018 – 2020) (Jan 2021 – Jan 2022) (Feb 2022 – 2024) ICPT Implementation (2015 - 2022) 16,158 7,000 1,148 1
Slide 11: Malaysia's Journey Towards Net Zero Commitments
Global Shift Towards Net Zero Malaysia’s Journey Towards Net Zero Commitments The Malaysian Government’s commitment towards net zero at COP26; our Energy Transition Plan supports the nation’s climate commitments Key focus areas to facilitate the transition to carbon neutrality Malaysia Climate Encou
Slide 12: TNB's Energy Transition Plan: Net Zero & Coal Free by 2050
TNB’s Energy Transition Plan Net Zero & Coal Free by 2050 We are committed to our Energy Transition Plan – The journey towards Net Zero 2050 Aspiration will bring positive business growth and enhance value to our shareholders Achieving these key deliverables is a testament of our Our Target for 2025
Slide 13: Malaysian Generation Mix
TNB’s Energy Transition Plan Malaysian Generation Mix The nation's current generation mix reflects the diversification required for security of supply, and will continue to shift as we take a responsible approach towards energy transition Malaysian Generation Mix (%) Forecast Scenario under Net Zero
Slide 14: TNB's Fast-Track Sustainability Agenda: 2022 Achievements
TNB’s Energy Transition Plan TNB’s Fast-Track Sustainability Agenda A look back at year 2022, we saw encouraging and exciting accomplishments as we intensified our strategic initiatives across our businesses GenCo NED Grid Electric Vehicle (EV) 2022 Key Achievements 2022 Key Achievements 2022 Key Ac
Slide 15: 2023 Outlook and Focus Markets
TNB’s Energy Transition Plan TNB’s Fast-Track Sustainability Agenda Looking ahead into 2023, we will continue to drive our strategic initiatives in reaching our Net Zero commitments while ensuring business growth Continue to explore and build pipelines Continue to grow RE portfolio with good quality
Slide 16: Investment Pathway
TNB’s Energy Transition Plan Investment Pathway will require investment of 10-20 B MYR yearly over next 30 years Indicative TNB CAPEX3 (MYR B) Legend Green hydrogen hub Decarbonization trailblazer (new green tech)1 60 Retail Decarbonization trailblazer (conventionals) International RE champion2 Regu
Slide 17: Future Generation Sources & New Green Business
Latest Development Future Generation Sources & New Green Business To date, GenCo and NED have a strong ~8,000MW pipeline ready to be explored for opportunities… 2022 Key Achievements Pipeline Projects 2023 Outlook Nenggiri Hydro 300MW Paka Repowering 1,400MW • Nenggiri Hydro: Expected to COD in Q2 2
Slide 18: Grid of the Future
Latest Development Grid of the Future We play a key role in regional interconnection…one of our trailblazing initiatives towards a successful transition for all RP3 13% (RM2.54 bil) Key Projects Towards becoming a Approved Supporting the Energy Transition Smart Utility by 2025 Capex (ET) and RAB gro
Slide 19: Winning the Customer: Electric Vehicle Ecosystem
Latest Development Winning the Customer Establish partnership with prominent industry leaders to develop extensive electric vehicle ecosystem for the nation Electric Vehicle Infrastructure Development Electric Vehicle Training Hub Electron Charger Hub ILSAS Electric Vehicle (EV) Training Hub Launche
Slide 20: Winning the Customer: GSPARX
Latest Development Winning the Customer GSPARX will provide the ‘extra’ push on renewable energy penetration while growing TNB’s revenue source GSPARX aims to secure ~145MWp for 2023 Targeted Market Segments 2022 Key Achievements Residential • Klang Valley customers Partnership with Smart Modular Te
Slide 21: Thank You
THANK YOU For further enquiries, kindly contact us at: Investor Relations Office: Investor Relations Team: Investor Relations Ms. Sarah Keok Chui San Group Finance Division +603 2108 2126 Tenaga Nasional Berhad 4th Floor, TNB Headquarters sarahk@tnb.com.my No.129, Jalan Bangsar, 59200 Kuala Lumpur,
Slide 22: 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
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