Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Investor Presentation (June 2020)
39 slides from Tenaga Nasional Bhd's investor presentation, June 2020
Slide 1: Investor Presentation
INVESTOR PRESENTATION COE – INVESTOR RELATIONS
Slide 2: Agenda
01 INTRODUCTION TO TENAGA 02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 CAPITAL MANAGEMENT 05 FINANCIAL & TECHNICAL HIGHLIGHT
Slide 3: Regulatory & Shareholding Structure
INTRODUCTION TO TENAGA REGULATORY & SHAREHOLDING STRUCTURE PRIME MINISTER / CABINET Sabah Electricity Sdn Bhd (SESB) (83% owned by TNB) Dependable Capacity: Shareholders Policy Maker 1,223MW Ministry of Energy and Tenaga Nasional Bhd (TNB) Holds Ministry of Finance Natural Resources (KeTSA) ‘Golden
Slide 4: Introduction to Tenaga: Core and Non-Core Business
INTRODUCTION TO TENAGA Distribution Network & Generation Grid/Transmission Retail Non-Regulated Business Regulated Business TNB Generation Mix: Installed Capacity: Distribution Network Length: Core Business 25,409MW Transmission Network Length: 683,008KM Oil & Distillate 0.00% TNB: 14,561MW @ 57.3%
Slide 5: Growing Renewable Energy Business
INTRODUCTION TO TENAGA Growing Renewable Energy Business– TNB is currently present in more than 5 countries • 50% equity ownership in Vortex Solar Investments S.à.r.l, United solar PV farm portfolio (May 2017) United Kingdom • 100% equity ownership in Tenaga Wind Ventures UK Ltd, Kingdom onshore win
Slide 6: TNB Sectoral Sales Analysis
INTRODUCTION TO TENAGA TNB Sectoral Sales Analysis* Total Unit Sold 29,375.0 GWH 0.8% 1.6% 2.1% 21.3% 25.4% Total Assets RM179.6bn 81.8% 41.2% Total 34.9% TNB: 9.3mn Customers SESB: 0.6 mn Total 35.8% 37.6% Employees 36,105 17.1% 0.3% N O OF CUSTOM ER SALES (RM) SALES (G WH) Industrial Commercial Do
Slide 7: Electricity Demand in line with GDP Growth
INTRODUCTION TO TENAGA Electricity Demand in line with GDP Growth GDP & TNB (Peninsula) Demand Growth TNB (Peninsula) Yearly Peak Demand 5.9 % 5.0 4.7 4.2 4.3 MW 18,808* 18,566 3.2 18,338 2.7 2.2 2.5 2.5 17,788 17,790 *Recorded at: FY'15 FY'16 FY'17 FY'18 FY'19 10 Mar’20 16,901 16,822 at 1630hrs 16,
Slide 8: Slowing down in the Industrial Sector
INTRODUCTION TO TENAGA Slowing down in the Industrial Sector due to Global Economy Challenges Industrial Commercial 1Q main contributors for the drop : Y-o-Y (7.5%) • Iron & steel Y-o-Y (0.1%) • Electric & Electronic (7.5%) • Edible Oil Products (0.1%) Impacted due to Movement Control Order (MCO) im
Slide 9: TNB Shareholding
INTRODUCTION TO TENAGA TNB Shareholding Top 10 KLCI Stocks by Market Capitalization Khazanah Nasional Berhad RM bil 18.1 16.7 Maybank 83.3 (14.2%) Permodalan Nasional Berhad 97.1 (PNB) 17.5 15.5 69.2 TNB (8.3%) Employees Provident Fund 75.4 Board (EPF) 5.6 6.7 Public Bank 61.1 (19.0%) Kumpulan Wang
Slide 10: Composition of BOD
INTRODUCTION TO TENAGA Composition of BOD CHAIRMAN EXECUTIVE DIRECTOR / CEO DATO’ SERI DIRAJA MAHDZIR KHALID DATUK SERI AMIR HAMZAH BIN AZIZAN Independent Non-Executive Directors (Total = 7) Non-Independent Non-Executive Directors (Total =2) NORAINI BINTI CHE DAN ONG AI LIN DATO' ROSLINA BINTI ZAINA
Slide 11: Agenda
01 INTRODUCTION TO TENAGA 02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 CAPITAL MANAGEMENT 05 FINANCIAL & TECHNICAL HIGHLIGHT
Slide 12: Incentive Based Regulation (IBR)
REGULATORY INCENTIVE BASED REGULATION (IBR) A Mechanisms For Tariff Setting With Incentives To Improve Efficiency & Greater Transparency Non – Regulated Regulatory Environment: (competitive bidding environment) 1. Clear and Transparent Regulatory Framework Clear and transparent regulatory framework
Slide 13: Imbalance Cost Pass-Through Mechanism
REGULATORY INCENTIVE BASED REGULATION (IBR) Imbalance Cost Pass-Through (ICPT) Mechanisms Ensures TNB Remain Neutral Base Tariff under IBR framework comprises of: a) Opex, Depreciation of Regulated Assets & Tax Expenses of Business Entities - transmission, grid system operation, Single Buyer operati
Slide 14: ICPT Comprises Two Components
REGULATORY INCENTIVE BASED REGULATION (IBR) Imbalance Cost Pass-Through (ICPT) Comprises Two Components Imbalance Cost Pass-through (ICPT) Fuel Cost Pass Through (FCPT) Generation Specific Cost Adjustment (GSCPT) Changes in Gas/LNG and Coal Costs Changes in: PPAs Power Purchase Agreements • Other fu
Slide 15: New Features in Electricity Tariff Review for RP2
REGULATORY INCENTIVE BASED REGULATION (IBR) New Features in Electricity Tariff Review for RP2 (2018-2020) * Source: Energy Commission (EC) 15 15
Slide 16: IBR Entities
REGULATORY INCENTIVE BASED REGULATION (IBR) IBR Entities 1 1 In RP1, these 2 entity are grouped as Price –Cap entity Source: Energy Commission (EC) 16 16
Slide 17: New Base Tariff Under IBR Mechanism RP2
REGULATORY INCENTIVE BASED REGULATION (IBR) New Base Tariff Under IBR Mechanism RP2 Variance Average Tariff by Entities (sen/kwh) Entities RP1 (RP2 v. RP1) (sen/kWh) (sen/kWh) Base tariff for RP2 (sen/kWh) Generation 26.76 +0.29 3% Single Buyer 18% Operation 0.19 - 69% 0.5% 0.2% 10% Grid System 0.05
Slide 18: RP2 Parameters
REGULATORY INCENTIVE BASED REGULATION (IBR) RP2 Parameters Avg. Regulated Fuel Parameters WACC Asset Based (RAB) Coal USD75/MT 7.3% RM54.8bn (RM14.47/mmbtu @ RM4.212/USD) RP1: USD87.5/MT @ RM3.100/USD (Avg. RAB in 2020) RP1: 7.5% RP1: RM43.6bn (Closing RAB) LNG TARIFF OPEX RM35/mmbtu RP1: RM41.68/mm
Slide 19: Generation and Customer Mix
REGULATORY INCENTIVE BASED REGULATION (IBR) Generation and Customer Mix Generation Mix RP1 vs RP2 Changes in Customer Mix (%) in RP1 (2015-2017) RP1 Base RP1 Actual 43.6% 40.8% Coal Coal 44% 49% 34.1% 35.1% RP2 1% 1% 0.1% 4% Coal Gas 20.6% 22.3% 33% Hydro 61% RE Base IBR RP1 Average Actual IBR RP1 L
Slide 20: Agenda
01 INTRODUCTION TO TENAGA 02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 CAPITAL MANAGEMENT 05 FINANCIAL & TECHNICAL HIGHLIGHT
Slide 21: Strategic Pillars
BUSINESS STRATEGY & DIRECTION Reimagining TNB is TNB's strategic aspiration – a key enabler is the corporate structure 44 STRATEGIC STRATEGIC PILLARS TNB Power Generation PILLARS Sdn Bhd Future Winning Future Grid of Generation the Proof the Future Sources Customer Regulations TNB Retail Sdn Bhd 21
Slide 22: International Acquisitions
BUSINESS STRATEGY & DIRECTION International Acquisition - Four International Acquisitions to Support Aspiration 30% 30% Equity interest of GAMA Enerji A.S. Equity interest of GMR Energy Limited. Assets include a 853MW natural gas- Assets include 1,014MW coal, gas and fired plant, 117.5MW wind plants
Slide 23: Generation Projects
BUSINESS STRATEGY & DIRECTION Generation Projects Southern Power Generation 1,440 MW Gas COD: 30th Nov 2020 Physical Progress: 99% (Planned: 99%) TNB Bukit Selambau 30 MW Solar COD: 31st Dec 2020 Physical Progress: 93% (Planned: 97%) Note: i. PPA Tenure - 21 years ii. Data as at March 2020 23 23
Slide 24: Renewable Energy and Green Policy
BUSINESS STRATEGY & DIRECTION Renewable Energy (RE) & Green Policy 11th Malaysia Plan 2016 - 2020 Country RE Target RE installed capacity of by 2025 Government Green Reduction up to 45% in GHGs emission intensity of 8,885MW by 2020 Development Plan 20% of * The increase in the total installed capaci
Slide 25: TNB's Renewable Energy Assets
BUSINESS STRATEGY & DIRECTION TNB’s Renewable Energy (RE) Assets Others Domestic (Peninsular Malaysia) International Mini Hydro (10MW) Kelantan GSPARX Rooftop Solar United Kingdom (37MW) (Total secured) Large Hydro SJ Pergau (600MW) Solar TNB Vortex Solar (365.0MW) Kedah Terengganu Wind Larg
Slide 26: TNB's Environment Initiatives
BUSINESS STRATEGY & DIRECTION TNB’s Environment Initiatives TNB Board of Directors is cognisant of the importance of ensuring sustainability is integrated in the strategic direction of the organisation, decision making processes and operational performance 5,750,636.42 tCO2e of GHG To develop Green
Slide 27: TNB's Green Development
BUSINESS STRATEGY & DIRECTION TNB’s Green Development UNITEN’s Smart UniverCity Expansion of Electric Vehicle Charging Network To create a sustainable ecosystem which provide competitive advantage for TNB in moving into smart city environment. To expand the existing charging station infra (a
Slide 28: Breakdown of TNB's Generation Revenue
BUSINESS STRATEGY & DIRECTION Breakdown of TNB’s Generation Revenue The Group will continuously strive to ensure that the revenue from the coal generation plants does not not exceed 25% 28 28
Slide 29: TNB's Social Initiatives
BUSINESS STRATEGY & DIRECTION TNB’s Social Initiatives Economic & Social Education Career Development 212 households benefitted from Projek Baiti Jannati and 700 students awarded More than RM183 Program Mesra Rakyat by YTN scholarship with a million contributed in refurbishing or building new total
Slide 30: TNB's Governance Initiatives
BUSINESS STRATEGY & DIRECTION TNB’s Governance Initiatives TNB is committed to operating in an ethical, transparent and responsible manner given the critical role we play in national development and the number of stakeholders who are impacted by our business TNB Board Committees Governance Pillars B
Slide 31: Agenda
01 INTRODUCTION TO TENAGA 02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 CAPITAL MANAGEMENT 05 FINANCIAL & TECHNICAL HIGHLIGHT
Slide 32: Dividend Policy
CAPITAL MANAGEMENT With These Achievements, We Are Pleased To Distribute Dividend Payout Of RM5.6bn Comprising Of A 50.0sen Special Dividend On Top Of 50.0sen Single Tier Dividend To Our Loyal Shareholders, By Balancing The Company’s Growth With Proactive Capital Management 5.69 DIVIDEND POLICY Divi
Slide 33: New Drawdown Increases Gearing Level
CAPITAL MANAGEMENT New drawdown of RM1bil increases Gearing Level RM Equivalent of Loan Value (bn) Statistics 31st Mar'20 31st Dec'19 75.8% 1 Total Debt (RM' Bil) 47.3 45.4 Net Debt (RM' Bil)* 31.3 31.2 35.8 34.5 1 Gearing (%) 45.8 43.4 Net Gearing (%) 30.3 29.8 Fixed : Floating 98:2 98:2 Final Expo
Slide 34: Agenda
01 INTRODUCTION TO TENAGA 02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 CAPITAL MANAGEMENT 05 FINANCIAL & TECHNICAL HIGHLIGHT
Slide 35: FY2020 Outlook
FINANCIAL & TECHNICAL HIGHLIGHTS FY2020 Outlook ELECTRICITY DEMAND CAPEX INTERNATIONAL RM9.5 – 10.0bil • Demand contraction of 1.9% recorded in 1QFY’20. • The COVID-19 pandemic is impacting the • Due to the Covid-19 pandemic and progress of our initiatives to reduce the current • Regulated Recurring
Slide 36: Reasonable FY'19 Results amid Challenges in Generation
FINANCIAL & TECHNICAL HIGHLIGHTS Reasonable FY’19 Results amid Challenges in Generation Business REVENUE (RM bil) EBITDA (RM bil) 18.4 50.4 50.9 47.4 15.5 44.5 14.8 13.4 11.7 4.8 FY'16 FY'17 FY'18 FY'19 1QFY'20 FY'16 FY'17 FY'18 FY'19 1QFY'20 PAT (RM bil) 7.32 6.91 4.45 3.75 0.74 FY'16 FY'17 FY'18 F
Slide 37: Improved Technical Performance for Grid Business
FINANCIAL & TECHNICAL HIGHLIGHTS Improved Technical Performance for Grid Business EAF (%) Transmission System Minute (mins) 88.1 88.5 89.9 88.6 1.5 04 05 83.4 0.4 0.3 0.2 0.01 FY'16 FY'17 FY'18 FY'19 1QFY'20 FY'16 FY'17 FY'18 FY'19 1QFY'20 Distribution SAIDI (mins) 49.7 50.2 48.2 48.1 11.8 FY'16 FY'
Slide 38: Disclaimer
DISCLAIMER All information contained herein is meant strictly for the use of this presentation only and should not be used or relied on by any party for any other purpose and without the prior written approval of TNB. The information contained herein is the property of TNB and it is privileged and c
Slide 39: Thank You
THANK YOU For further enquiries, kindly contact us at: Investor Relations Office: Investor Relations Team: Ms. Mehazatul Amali Meor Hassan CoE Investor Relations +603 2108 2126 Group Finance Division Tenaga Nasional Berhad mehazatul@tnb.com.my 4th Floor, TNB Headquarters No.129, Jalan Bangsar, Ms. S
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