Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — 2QFY2024 Earnings Presentation
44 slides from Tenaga Nasional Bhd's earnings presentation, Sep 2, 2024
Slide 1: Analyst Briefing 2QFY2024
ANALYST BRIEFING 2QFY2024 2 September 2024
Slide 2: Strategy Forward (DCEO)
STRATEGY FORWARD (DCEO)
Slide 3: Key Highlights
Key Highlights Our ongoing initiatives have resulted in improved performance while we continuously reward our shareholders 1HFY2024 PAT Electricity Demand Peak Demand 8.4% 20,066MW RM2,190.3 mil (Y-o-Y) From increased economic activities Recorded on 25 July at 2030 hrs +82.3% (Y-o-Y) Gearing Dividen
Slide 4: Energy Landscape: strategically positioned for rising energy demand
Energy TNB is strategically positioned in meeting the rising demand for energy, Landscape with government initiatives fostering a conducive environment for growth Electricity Supply and Demand Regulatory ✓ To support healthy electricity demand growth: ✓ Third Party Access (TPA) Framework1: The Energ
Slide 5: Deliver Clean Generation: growing our RE portfolio
Deliver Clean Forging ahead with growing our RE portfolio, Generation we remain committed to driving our sustainable agenda Projects 2QFY2024 Key Highlights Sungai Perak Hydro Life Extension COD: 1st unit 2026 Nenggiri Hydro Project 651MW Programme (8MW) Achieved 33% project progress (2024 Target: 5
Slide 6: Develop Energy Transition Network
Develop Energy Our CAPEX utilisation is on track and expected to be fully utilised Transition Network as we approach the end of RP3 2QFY2024 Key Achievements Smart Meter Installation progress: Regulated CAPEX FY2024 Target: 85% 600,000 units Cumulative Installed to date: 56% Installed 509,422 units
Slide 7: Delivering power at scale and speed for data centres
Develop Energy We have successfully delivered power at scale and speed for data centres; Transition Network 2 projects completed ahead of time in 1HFY2024 Data Centres 1HFY2024 1HFY2024 Status Key Recognition Completed Under Construction 9 Projects 7 ~1,070MW 2 to be completed Projects Projects (ESA
Slide 8: Dynamic Energy Solutions: GSPARX rooftop solar
Dynamic Energy GSPARX transforms consumers to prosumers through rooftop solar installations, Solutions elevating Malaysia’s green energy progress 2QFY2024 Key Achievements Partnership with Sime Darby Property 8.8MWp 2024 Target Completion Paramit Malaysia Sdn Bhd 4.4MW 960kWp • To install 707kWp roo
Slide 9: Dynamic Energy Solutions: EV ecosystem
Dynamic Energy TNB is instrumental in driving Malaysia EV market by installing EV chargers and Solutions providing electricity infrastructures to Charging Point Operators (CPO) EV Ecosystem Key Highlights Green Lane YTD Electricity Sales Potential Demand TNB Charge Points Supply Connections (CPO) fr
Slide 10: Performance Updates (CFO)
PERFORMANCE UPDATES (CFO)
Slide 11: 1HFY2024 higher PAT driven by improved overall performance
1HFY2024 higher PAT was driven by improved overall performance PAT 82.3% EBITDA 1HFY2024 3.7% REVENUE 1HFY2024 RM2,190.3 mil 7.9% RM9,904.5 mil 1HFY2023: RM 1,201.8 mil EBITDA MARGIN: 35.4% 1HFY2024 1HFY2023: RM 9,548.1 mil RM28,007.2 mil EBITDA MARGIN: 36.8% 1HFY2023: RM 25,948.8 mil Improved overa
Slide 12: Group earnings supported by generation and network performance
Group earnings supported by; i. Improved generation performance ii. World-class network performance Equivalent Plant Availability Factor, EAF (Generation) 1HFY2024 % 78.7% Improved overall performance by power plants 2024 Target: 78.6% System Minutes (Transmission) 1HFY2024 Minutes 0.0001 2024 Inter
Slide 13: Lower receivables and strong collection trend
Y-o-Y: Lower receivables contributed by lower ICPT and strong collection trend, strengthening our cash flow position and credit ratings 1 TNB will recover ICPT cost from the Government: Receivables (RM bil) ICPT Cost i. RM1.4 bil for January to June 2024 Recovery for (August 2024: Received RM0.7 bil
Slide 14: Rewarding shareholders with interim dividend payouts
Our resilient performance enables us to continue rewarding shareholders with commendable interim dividend payouts while maintaining a prudent capital structure Dividend Policy Dividend payout ratio of 30% to 60% based on the adjusted PATAMI Dividend Payout (%) (based on Adjusted 56.7 49.4 PATAMI) In
Slide 15: Forward Guidance (DCEO)
FORWARD GUIDANCE (DCEO)
Slide 16: Forward Guidance
Forward Guidance We will continue to drive our strategic initiatives to pursue business growth while fulfilling our Net Zero commitments Regulatory Period 4 Demand growth is projected to be between RP4 proposal assessment is on track Electricity 3.0% - 4.0% Demand Oct’24 Jan’25 RP4 Submission Regula
Slide 17: 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 18: Investor Relations
INVESTOR RELATIONS IR OFFICERS: GROUP FINANCE DIVISION Envelope with solid fill Tenaga Nasional Berhad Sarah Keok Level 12, Tower A, TNB Platinum sarahk@tnb.com.my No. 3, Jalan Bukit Pantai, Bangsar Envelope with solid fill 59100 Kuala Lumpur Hasniza Harun hasniza@tnb.com.my Tel : +603 2108 2128 Env
Slide 19: Appendix
Appendix 1HFY2024 o Details on Financial Results o Generation Business Performance o International Business Performance o Shareholdings
Slide 20: Y-o-Y analysis
Y-o-Y analysis Variance RM mil 1HFY'24 1HFY'23 RM mil % Y-o-Y analysis: Revenue 1 28,007.2 25,948.8 2,058.4 7.9 Imbalance Cost Pass Through (ICPT) 2 5,175.2 6,492.5 (1,317.3) (20.3) 1 Operating expenses (without depreciation) (23,744.6) (23,236.3) (508.3) (2.2) Higher Group revenue driven by sales 3
Slide 21: Q-o-Q analysis
Q-o-Q analysis Variance RM mil 2QFY'24 1QFY'24 RM mil % Revenue 1 14,366.8 13,640.4 726.4 5.3 Q-o-Q analysis: Imbalance Cost Pass Through (ICPT) 2 2,822.2 2,353.0 469.2 19.9 1 Operating expenses (without depreciation) (12,442.2) (11,302.4) (1,139.8) (10.1) 3 Higher Group revenue driven by sales dema
Slide 22: Y-o-Y normalised EBITDA and PAT for 1HFY2024
Y-o-Y normalised EBITDA and PAT for 1HFY2024 EBITDA 1HFY'24 1HFY'23 1 MFRS16 impact: 1HFY'24 1HFY'23 Variance Actual figure Components RM mil RM mil input tab (to C (RM mil) (RM mil) (RM mil) Reported EBITDA 9,904.5 9,548.1 MFRS16 impact 1 (1,976.9) (2,130.1) Capacity Payment 1,976.9 2,130.1 (153.2)
Slide 23: Higher Group revenue driven by overall healthy demand growth
Higher Group revenue driven by overall healthy demand growth Variance Variance 2QFY'24 1QFY'24 1HFY'24 1HFY'23 (2QFY'24 vs 1QFY'24) (1HFY'24 vs 1HFY'23) 1 UNITS SOLD GWh GWh GWh % GWh GWh GWh % Higher revenue driven by higher demand Sales of Electricity (GWh) growth across all business units. - TNB
Slide 24: 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 4.2 4.7 4.3 20,066 3.1 3.7 19,716 6.0 19,183 3.6 18,808 2.5 2.5 3.2 2.7 -4.9 1.2 18,585 Recorded on: FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 25 July 2024 at 2
Slide 25: Increased demand across all sectors
Increased demand across all sectors mainly contributed by commercial and domestic Industrial Commercial 1HFY’24 main contributors for the increase in industrial & 2.8% commercial sectors: 10.0% Industrial 3.0% 2.6% • Utility electrical, iron & steel and miscellaneous consumer 11.2% 8.8 products Comm
Slide 26: Other regulatory adjustment to be returned
As at 1HFY2024, other regulatory adjustment of RM1,207.6 mil to be returned 1QFY'24 2QFY'24 1HFY'24 1HFY'23 Components of Other Regulatory Adjustment RM mil RM mil RM mil RM mil Revenue Adjustment for Revenue Cap & Price Cap (412.4) (684.1) 1 (1,096.5) (419.5) Refund Related to Regulated Business (6
Slide 27: Higher Y-o-Y operating expenses due to higher OPEX Non-Fuel
Higher Y-o-Y operating expenses due to higher OPEX Non-Fuel Variance Variance 2QFY'24 1QFY'24 1HFY'24 1HFY'23 (2QFY'24 vs 1QFY'24) (1HFY'24 vs 1HFY'23) (RM mil) (RM mil) RM mil % (RM mil) (RM mil) RM mil % Non-TNB IPPs Costs 4,694.8 4,233.4 461.4 10.9 8,928.2 7,709.3 1,218.9 15.8 1 2QFY’24 vs 1QFY’2
Slide 28: Lower overall fuel costs due to lower coal price
Lower overall fuel costs due to lower coal price in 1HFY2024 Table A – TNB & IPP Fuel Costs for Peninsular (RM mil) Table C – Fuel Costs Related Data Variance Fuel statistics 1HFY'24 1HFY'23 Fuel Type 1HFY'24 1HFY'23 RM mil % Average Coal Price Delivered (USD/MT)(CIF) 112.9 156.4 Coal 8,807.1 11,230
Slide 29: Fuel Costs & Units Generated in 1HFY2024
Fuel Costs & Units Generated (TNB & IPPs – Peninsular) in 1HFY2024 Units Fuel Costs Generated Distillate TNB, 0.3% Distillate IPP, 0.2% Distillate TNB, 0.0% Distillate IPP, 0.1% LNG, 0.0% Oil TNB, 0.0% Oil TNB, 0.2% Oil IPP, 0.0% Oil IPP, 0.0% Hydro, 4.7% Solar TNB, 0.2% Gas IPP, Distillate TNB, 0.3
Slide 30: Higher Q-o-Q fuel costs due to higher coal consumption
Higher Q-o-Q fuel costs mainly due to higher coal consumption Table A – TNB & IPP Fuel Costs for Peninsular (RM mil) Table C – Fuel Costs Related Data Variance 2QFY'24 vs 1QFY'24 Fuel statistics 2QFY'24 1QFY'24 Fuel Type 2QFY'24 1QFY'24 RM mil % Average Coal Price Delivered (USD/MT)(CIF) 112.1 113.7
Slide 31: Q-o-Q: Higher generation from coal in 2QFY2024
Q-o-Q: Higher generation from coal in 2QFY2024 Generation Mix for Industry (%) 1.5 2.0 1.9 4.6 5.9 3.6 0.2 0.0 0.1 57.0 52.6 57.2 36.7 39.4 37.3 FY2023 1QFY'24 2QFY'24 Gas Coal Oil & Distillate Hydro Solar 31
Slide 32: TNB is neutral to fuel cost volatility under ICPT
TNB is neutral to volatility in fuel costs under the ICPT framework 3QFY'23 4QFY'23 1QFY'24 2QFY'24 (RM mil) (RM mil) (RM mil) (RM mil) Single Buyer Actual Generation Costs: (A) 10,238.5 10,357.3 10,710.6 11,499.8 Actual Sales (GWh) 31,448.1 31,491.4 31,899.4 33,120.6 Single Buyer Tariff (RM/kWh) 0.
Slide 33: Fuel Margin: Coal Price Trending
Fuel Margin: Coal Price Trending Applicable Coal Price (ACP) vs Moving Average Price (MAP) 900.0 850.9 800.0 FY2023 FY2024 700.0 779.4 623.1 600.0 524.6 554.9 540.4 530.5 600.6 500.0 543.4 539.4 524.8 ACP<MAP 508.9 Negative 400.0 fuel margin 850.9 (RM767.9 mil) 300.0 200.0 554.9 (RM69.8 mil) 1QFY'23
Slide 34: 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 9.0% 32.3 31.9 32.6 19.0% 69.0% * FY'20 FY'21 FY'22 FY'23 FY'24 (F) Indonesia Australia * Based on tonnage planned for delivery in FY2024 Russia South Africa 34
Slide 35: Group CAPEX, Regulated CAPEX and RAB
Group CAPEX Regulated CAPEX and RM mil Regulated Asset Base (RAB) 4,343.4 3,663.3 393.2 385.1 RP3 REGULATED ENTITIES CAPEX FY IBR Approved Actual YTD Utilisation 1,076.2 798.3 RM mil RM mil (%) 2024 6,413.3 3,606.3 56.2 2,528.0 2,059.4 Total RAB (RM mil) Actual Approved As at 30 June 2024 FY2024 66,
Slide 36: Gearing improved to 48.4% as at 1HFY2024
Gearing improved to 48.4% as at 1HFY2024 Loan Breakdown 30 Jun'24 31 Dec'23 RM1.1 bil RM1.4 bil Total Debt MYR RM3.8 bil (RM bil) 57.7 61.8 2% USD RM1.5 bil 7% 2% 2% 2% JPY Net Debt * 6% 2% (RM bil) 39.4 40.8 RM9.1 bil 3% GBP 16% 14% RM1.4 bil EUR RM8.8 RM1.2 bil Gearing RM3.6 bil AUD (%) 48.4 50.3
Slide 37: Trade receivables as at 1HFY2024
Trade receivables as at 1HFY2024 Trade Debtors Ageing (RM bil) Trade Receivables By Sectors (RM bil) 5.6 5.5 5.0 5.1 5.3 5.6 5.5 5.0 5.1 5.3 Total 2% 2% 2% 2% 2% Current 35% 35% 34% 35% 37% Others 1.5 1.4 1.3 1.5 1.5 1 Month 0.3 0.3 Domestic 0.7 0.7 0.3 0.4 0.3 0.6 0.5 0.6 2 to 5 Months 37% 37% 37%
Slide 38: Domestic generation business performance
Domestic generation business performance Overall improved performance by power plants RM mil REVENUE EBIT PROFIT AFTER TAX 14,060.0 11,945.5 791.8 408.6 319.0 (193.8) 1HFY'24 1HFY'23 1HFY'24 1HFY'23 1HFY'24 1HFY'23 Note: Includes generation related subsidiaries 38
Slide 39: Revenue from coal recorded below 25% due to M4 outage
Revenue from coal recorded below 25% due to M4 outage Actual Group Revenue* 19% 27% 4% 1% RE Coal Others ** 1HFY’23 * Total revenue includes ICPT ** Others include revenue from regulated business, subsidiaries 72% 1HFY’24 and generation from gas 77% Long-term aspiration: ▪ No new coal plant investme
Slide 40: Our RE journey is progressing well
Our RE journey is progressing well TNB RE Portfolio Renewable capacity (MW) 10,538 Secured capacity % RE in TNB’s portfolio International 6,216 Domestic 20% 17% 4,302 3,889 1,183 1,183 993 21% 3,138 3,119 2,896 4,322 Jun'24 Dec'23 Dec'22 Note: • Gross RE Capacity includes large hydro • Solar capacit
Slide 41: International Investments: Renewable Energy
International Investments: Renewable Energy (RE) TNB International Sdn Bhd (TNBI) Vantage RE Spark Renewables TNBI is a TNB wholly owned subsidiary incorporated under the laws of Malaysia. TNBI is a platform focused on capturing global renewable energy opportunities, diversifying TNB’s portfolio and
Slide 42: Shareholdings
Shareholdings Khazanah Nasional Berhad 17.3 Permodalan Nasional Berhad 18.0 (PNB) 16.8 7.2 Employees Provident Fund 18.3 Board (EPF) 7.5 4.1 1.7 Kumpulan Wang Persaraan (KWAP) (%) Other Government Agencies 22.6 20.6 20.9 17.7 Local Corporation & Retail 12.5 Africa Pacific Foreign Shareholding 0.02%
Slide 43: 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 44: Investor Relations
INVESTOR RELATIONS IR OFFICERS: GROUP FINANCE DIVISION Envelope with solid fill Tenaga Nasional Berhad Sarah Keok Level 12, Tower A, TNB Platinum sarahk@tnb.com.my No. 3, Jalan Bukit Pantai, Bangsar Envelope with solid fill 59100 Kuala Lumpur Hasniza Harun hasniza@tnb.com.my Tel : +603 2108 2128 Env
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