Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — 4QFY2023 Earnings Presentation
39 slides from Tenaga Nasional Bhd's earnings presentation, Mar 1, 2024
Slide 1: Analyst Briefing 4QFY2023
ANALYST BRIEFING 4QFY2023 1 March 2024
Slide 2: TNB transitioning into green entity with a strong ~7,700MW development pipeline
Energy Sources TNB transitioning into green entity with a strong ~7,700MW development pipeline TNB pledge for no more coal plants. We will replace retiring coal plants with green pipeline projects Projects 2023 Key Achievements Outlook 2024 Sungai Perak Hydro Life • Finalisation of new PPA Extension
Slide 3: Grid of the Future is key to unlock Malaysia's Energy Transition ambition
Energy Sources Grid of the Future is key to unlock Malaysia’s Energy Transition ambition and ensuring sustainability and vitality of our core business; while interconnection continues to see encouraging bilateral developments Regional Interconnections Supporting the Energy Transition (ET) and RAB gr
Slide 4: Timely completion of data centre projects; committed to support growing demand
Energy Vector Timely completion of 9 data centre projects; committed to support the growing demand 2023 Key Achievements 2024 Outlook Green Lane Pathway was introduced: New Data Centre Projects GDS Data Centre Plot 1, Nusajaya Tech Park was ➢ To streamline the on-boarding process, Expected to be com
Slide 5: TNB aims to proliferate the number of BEVs by installing EV charge points
Energy Usage TNB aims to proliferate the number of BEVs by installing EV charge points Electric Vehicle (EV) at strategic locations across Peninsular Malaysia 2023 Key Achievements 2024 Outlook 32 5 Projects 1 electron station by 1QFY24 Charge points 14 DC Charge Points installed 18 AC Charge Points
Slide 6: GSPARX provides the 'extra' push on renewable energy penetration
Energy Usage GSPARX provides the ‘extra’ push on renewable energy penetration GSPARX while growing TNB’s revenue source 2023 Key Achievements Collaboration with Sime Darby Property Universiti Malaysia Pahang • Completed installation of solar panels to generate 3.5MWp of solar capacity (inclusive of
Slide 7: FY2023 PAT impacted by generation underperformance and negative fuel margin
Amid a steady recovery in demand, our FY2023 PAT was impacted by generation underperformance and negative fuel margin REVENUE EBITDA PAT (RM mil) (RM mil) (RM mil) FY2023 +4.3% FY2023 FY2023 (10.5%) (26.8%) RM53,066.9 RM18,622.6 RM2,603.6 EBITDA MARGIN: 35.1%* FY2022 : RM 50,867.7 FY2022 : RM20,812.
Slide 8: Group earnings supported by strong and world-class network performance
Group earnings supported by strong and world-class network performance FY2023 Equivalent Plant Availability Factor, EAF 83.3% EAF performance secured generation assets’ (Generation) FY2022: 83.2% capacity revenue % 2023 Target: 81.8% 2024 Target: 78.6% FY2023 System Minutes (Transmission) Minutes 0.
Slide 9: Lower receivables strengthening our cash flow position
Lower receivables contributed by stabilised fuel prices and improvement in collection, strengthening our cash flow position Receivables (RM bil) 1 ICPT Cost • TNB will recover from the Government RM4.7 bil of 56% ICPT cost for July to December 2023. Recovery for 2HFY2023 • To date, TNB has received
Slide 10: Stability in regulated business enables us to reward shareholders
Stability in regulated business performance enables us to reward shareholders while upholding our policy 56.0% 58.5% 52.8% 55.2% 66.6% 7.5% 7.7% 4.3% 4.8% 4.0%* DIVIDEND POLICY We will continue to honour our dividend 50.0 policy of 30% to 60% dividend payout 40.0 ratio, based on the reported Consoli
Slide 11: Forward Guidance
Forward Guidance Year 2024 stands as a significant year, as we work towards pursuing our Energy Transition Plan to achieve Net Zero 2050 aspirations Regulatory Period 4 Demand growth is projected to be between 2.5%-3.0% Theme: Delivering our customers’ energy needs and Electricity facilitating Malay
Slide 12: Appendix
Appendix FY2023 o Details on Financial Results o Generation Business Performance o International Business Performance o Shareholdings
Slide 13: Year-on-Year (Y-o-Y) analysis
Year-on-Year (Y-o-Y) analysis Variance RM mil FY2023 FY2022 RM mil % Revenue 53,066.9 50,867.7 2,199.2 4.3 Y-o-Y analysis: 1 Imbalance Cost Pass Through (ICPT) 10,598.2 22,315.3 (11,717.1) (52.5) 1 Operating expenses (without depreciation) 2 (46,105.4) (53,209.6) 7,104.2 (13.4) Higher Group revenue
Slide 14: Quarter vs previous quarter (4QFY23 vs 3QFY23) analysis
Quarter vs previous quarter (4QFY23 vs 3QFY23) analysis Variance RM mil 4QFY23 3QFY23 RM mil % Revenue 1 13,652.0 13,466.1 185.9 1.4 Q-vs-PrevQ analysis: Imbalance Cost Pass Through (ICPT) 2,106.6 1,999.1 107.5 5.4 Operating expenses (without depreciation) 2 (11,964.0) (10,905.1) (1,058.9) 9.7 1 Hig
Slide 15: Y-o-Y normalised EBITDA and PAT for FY2023
Y-o-Y normalised EBITDA and PAT for FY2023 EBITDA FY2023 FY2022 1 MFRS16 impact: Actual figu Components RM mil RM mil FY2023 FY2022 Variance input tab Reported EBITDA 18,622.6 20,812.0 (RM mil) (RM mil) (RM mil) MFRS16 impact 1 (4,219.7) (4,440.1) Capacity Payment 4,219.7 4,440.1 (220.4) Normalised
Slide 16: Higher Y-o-Y sales of electricity for the Group
Higher Y-o-Y sales of electricity for the Group mainly derived from stronger domestic economic growth and TNBI operations Variance Variance 1 4QFY23 3QFY23 FY2023 FY2022 4QFY23 vs 3QFY23: Higher units sold and (4QFY23 vs 3QFY23) (FY2023 vs FY2022) sales of electricity from industrial and UNITS SOLD
Slide 17: 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 19,716 4.7 4.2 4.3 3.7 19,183 3.1 18,585 6.0 18,566 3.2 3.6 2.5 2.5 2.7 -4.9 1.2 18,808 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 Recorded on: 11 May 2023 at 16
Slide 18: Improved Y-o-Y electricity demand mainly from commercial and domestic sectors
Improved Y-o-Y electricity demand mainly contributed by commercial and domestic sectors Industrial Commercial (1.9%) 7.6% FY2023 main contributors for the (3.4%) (4.2%) (1.6%) 1.5% 6.2% 7.1% 6.8% 10.2% increase in commercial sector: • Retails, business services and accommodation services 10,699 10,2
Slide 19: Other regulatory adjustment of RM1,243.9 mil to be returned
As at FY2023, other regulatory adjustment of RM1,243.9 mil to be returned 1QFY23 2QFY23 3QFY23 4QFY23 FY2023 FY2022 Components of Other Regulatory Adjustment RM mil RM mil RM mil RM mil RM mil RM mil Revenue Adjustment for Revenue Cap & Price Cap (1.4) (418.1) (384.3) (334.8) 1 (1,138.6) (517.1) Ref
Slide 20: 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 4QFY23 3QFY23 FY2023 FY2022 (4QFY23 vs 3QFY23) (FY2023 vs FY2022) (RM mil) (RM mil) RM mil % (RM mil) (RM mil) RM mil % Non-TNB IPPs Costs 3,992.1 3,797.0 195.1 5.1 15,498.4 17,999.5 (2,501.1) (13.9) Capacity
Slide 21: Lower overall fuel costs due to lower coal price in FY2023
Lower overall fuel costs due to lower coal price in FY2023 Table A – TNB & IPP Fuel Costs for Peninsular (RM mil) Table C – Fuel Costs Related Data Fuel statistics FY2023 FY2022 Variance Average Coal Price Delivered (USD/MT)(CIF) 134.0 212.5 Fuel Type FY2023 FY2022 Average Coal Price Delivered (RM/M
Slide 22: Higher Q-o-Q fuel costs mainly due to higher generation from gas
Higher Q-o-Q fuel costs mainly due to higher generation from gas Table A – TNB & IPP Fuel Costs for Peninsular (RM mil) Table C – Fuel Costs Related Data Variance 4QFY23 vs 3QFY23 Fuel statistics 4QFY23 3QFY23 2QFY23 1QFY23 Fuel Type 4QFY23 3QFY23 2QFY23 1QFY23 RM mil % Average Coal Price Delivered
Slide 23: Higher generation from coal in FY2023
Higher generation from coal in FY2023 Generation Mix for Industry (%) 0.9 1.4 1.7 1.3 1.5 1.2 1.5 1.2 1.6 1.6 4.8 3.5 6.3 6.2 5.2 5.1 4.0 4.5 4.8 4.6 1.1 0.4 0.5 0.1 0.2 0.3 0.1 0.2 0.0 0.6 54.1 57.8 55.9 53.7 55.6 57.0 56.5 55.1 60.1 58.5 39.1 37.1 36.7 37.2 39.5 38.2 36.7 35.8 34.0 35.0 1QFY22 2QF
Slide 24: Fuel Costs & Units Generated (TNB & IPPs – Peninsular) in FY2023
Fuel Costs & Units Generated (TNB & IPPs – Peninsular) in FY2023 Units Fuel Costs Generated Distillate TNB, 0% Distillate TNB, 0% Distillate IPP, 1% LNG, 0% Distillate IPP, 0% Oil TNB, 0% Oil TNB, 0% Oil IPP, 0% Hydro, 5% Oil IPP, 0% Solar TNB, 0% Gas IPP, 14% Solar IPP, 1% Distillate TNB, 0% Distil
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 1QFY23 2QFY23 3QFY23 4QFY23 FY2023 (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 42,878.2 Actual Sales (GWh) 29,113.2 31,153.3 31,448.1 31,491.4 123,206.0
Slide 26: Fuel Margin: Applicable Coal Price vs Moving Average Price
Fuel Margin: Coal Price Trending Applicable Coal Price (ACP) vs Moving Average Price (MAP) 1,100.00 1,040.10 1,023.80 960.40 FY2023 1,000.00 1,022.32 FY2022 1,028.10 900.00 850.94 800.00 1,022.3 1,040.1 696.30 779.40 ACP<MAP 700.00 626.40 623.10 Negative 600.00 557.21 543.37 fuel margin 524.59 ACP>
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 11.0% 30.8 32.3 31.9 31.1 27.4 28.8 25.4 22.2 17.0% 69.0% * FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 (F) Indonesia Australia * Based on tonnage planned for delivery in FY2024 Russia Sou
Slide 28: Group CAPEX, Regulated CAPEX and Regulated Asset Base
Group CAPEX Regulated CAPEX and Regulated Asset Base (RAB) RM mil 10,245.4 8,853.2 885.6 934.3 RP3 REGULATED ENTITIES CAPEX FY IBR Approved Actual YTD Utilisation 2,934.6 2,051.4 RM mil RM mil (%) 2023 6,973.1 8,022.2 >100% 5,124.1 4,688.4 Total RAB (RM mil) Actual Approved As at 31 Dec 2023 FY2023
Slide 29: Gearing improved to 50.3% as at FY2023
Gearing improved to 50.3% as at FY2023 31 Dec 2023 31 Dec 2022 Loan Breakdown Total Debt (RM bil) 61.8 63.9 RM1.4 bil RM1.2 bil RM RM3.6 bil 2% USD Net Debt* 40.8 50.8 RM1.7 bil 6% 2% JPY (RM bil) 3% GBP RM8.8 bil 3% 5% EUR Gearing 50.3 51.2 13% 14% RM8.5 bil RM3.2 bil AUD (%) RM1.8 bil 73% RM45.1 b
Slide 30: Trade receivables as at FY2023
Trade receivables as at FY2023 Trade Debtors Ageing (RM bil) Trade Receivables By Sectors (RM bil) 5.1 5.2 5.6 5.5 5.0 5.1 5.2 5.6 5.5 5.0 Total 1% 1% 2% 2% 2% Current 34% 33% 35% 35% 34% Others 1.5 1.4 1.1 1.2 1.3 1 Month 0.3 0.4 0.3 0.3 Domestic 0.7 0.6 0.7 0.7 0.3 2 to 5 Months 0.6 37% 38% 37% 37
Slide 31: Domestic generation business performance
Domestic generation business performance RM mil REVENUE EBIT PROFIT AFTER TAX 27,771.7 EBIT 25,285.8 without fuel 1,097.5 1,493.6 margin 2,601.4 860.5 478.8 (526.8) FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 Lower EBIT and PAT mainly due to: • Impact of negative fuel margin of RM618.7 mil; and • CRF
Slide 32: Revenue from coal stabilised below 25%, in line with longer-term aspiration
Revenue from coal stabilised below 25%, in line with longer-term aspiration Actual Group Revenue* 23% 24% 3% 3% RE Coal Others ** FY22 * Total revenue includes ICPT ** Others include revenue from regulated business, subsidiaries 73% FY23 and generation from gas 74% Long-term aspiration: ▪ No new coa
Slide 33: Our RE journey is progressing well
Our RE journey is progressing well TNB RE Journey TNB Group RE Capacity Renewable capacity (MW) 1.2GW 20% 17% 15% (28%) 3.1GW 4,302 3,889 3,487 (72%) 1,183 993 Dec’23 716 (4.3GW) 3,119 Achieved 2,896 2,771 > 50% of target capacity RE Dec RE Dec RE Dec of 8.3GW by 2025 2023 2022 2021 3.5GW 3.5GW (42%
Slide 34: International Investments: Renewable Energy (RE)
International Investments: Renewable Energy (RE) TNB International Sdn Bhd (TNBI) Existing Acquired in Dec’23 Acquired in Sep’23 TNBI, a TNB wholly owned subsidiary incorporated under the laws of Malaysia. United Kingdom Republic of Ireland Australia TNBI is a platform focused on capturing renewable
Slide 35: International Investments: Renewable Energy (RE)
International Investments: Renewable Energy (RE) TNB INTERNATIONAL SDN BHD Financial Performance • Full year contribution from newly acquired onshore wind portfolio in the UK (97.3MW) in April 2022. • Higher tariff via various schemes (ROC, FiT & locked-in PPA prices) in 2023 within Vantage portfoli
Slide 36: International Investments: Non-Core Assets
International Investments: Non-Core Assets Financial Performance Lower Y-o-Y EBITDA FY’23 RM647.1 mil (SAR535.1 mil) vs FY’22 RM920.0 mil (SAR784.1 mil) due to lower revenue as a result of reclassification from operating lease to finance lease due to SWEC's project restructuring after the signing of
Slide 37: Shareholdings
Shareholdings Khazanah Nasional Berhad 16.8 Permodalan Nasional Berhad 18.3 (PNB) 18.3 15.8 7.5 Employees Provident Fund Board (EPF) 7.3 1.7 Kumpulan Wang Persaraan (KWAP) (%) 1.8 Other Government Agencies 25.5 18.2 22.6 20.6 Local Corporation & Retail 13.1 Foreign Shareholding Pacific, Africa, 12.5
Slide 38: Disclaimer
Disclaimer This presentation and discussion may contain forward looking statements by All information contained herein is meant Tenaga Nasional Berhad related to financial trends for future periods. Some of the strictly for the use of this presentation statements contained in this presentation or ar
Slide 39: Investor Relations
INVESTOR RELATIONS IR OFFICERS: GROUP FINANCE DIVISION Sarah Keok Tenaga Nasional Berhad +6 03 2108 2126 | sarahk@tnb.com.my Level 12, Tower A, TNB Platinum No. 3, Jalan Bukit Pantai, Bangsar 59100 Kuala Lumpur Sakinah Mohd Ali +6 03 2108 2840 | sakinah.ali@tnb.com.my Tel : +603 2108 2128 Fax : +603
Tenaga Nasional Berhad — 4QFY2023 Earnings Presentation on 6ix