Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Q1 FY2023 Earnings Presentation
37 slides from Tenaga Nasional Bhd's earnings presentation, May 30, 2023
Slide 1: Analysts Briefing 1QFY2023
Analysts Briefing 1QFY2023 30 May 2023 Tenaga Nasional Berhad 199001009294 (200866-W)
Slide 2: Improved earnings despite challenging environment
Improved earnings despite challenging environment REVENUE EBITDA PAT (RM mil) (RM mil) (RM mil) 1QFY2023 +3.9% 1QFY2023 1QFY2023 +6.9% (4.9%) RM12,625.6 RM4,883.7 RM930.9 EBITDA MARGIN: 38.7% 1QFY2022: RM12,153.1 1QFY2022: RM5,137.8 1QFY2022: RM871.2 EBITDA MARGIN: 42.3% • EBITDA margin has dropped
Slide 3: Group earnings supported by improved generation business and world-class network performance
Group earnings supported by; (i) Improved generation business (ii) World-class network performance 1QFY2023 Equivalent Plant Availability Factor, EAF 84.41% EAF performance secured generation assets’ (Generation) 1QFY2022: 80.54% capacity revenue % 2023 Target: 81.80% 1QFY2023 System Minutes (Transm
Slide 4: Effective working capital management alleviates pressures from high fuel prices
Effective working capital management alleviates pressures from high fuel prices Receivables (RM bil) 1 TNB will fully recover the total RM16.2 bil net imbalance cost via: ICPT Cost Recovery • The ICPT surcharge passed-through to non-domestic customers (at (1HFY2023) 3.70 sen/kWh and 20.0 sen/kWh). •
Slide 5: 2023 continues to be another exciting year to pursue our Net Zero 2050 aspirations
2023 continue to be another exciting year to pursue our Net Zero 2050 aspirations Latest demand growth is 1.7% Delivering Value to (120,933 GWh)* our Shareholders Electricity We will continue to honour our Demand (IBR reference: 116,367 GWh) dividend policy of 30% - 60% dividend payout Total Group C
Slide 6: We are committed to our Energy Transition Plan – The journey towards Net Zero
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 Net Zero 2050 Aspiration Our Target for 2025 Our Commitment to 2035 Our Aspiration to 2050 • Build scale in renewable generation • S
Slide 7: Looking ahead into 2023, we will continue to drive our strategic initiatives
Looking ahead into 2023, we will continue to drive our strategic initiatives in reaching our Net Zero commitments while ensuring business growth Energy Sources GenCo Energy Vector Grid Hydro Sungai Perak LEP Project (650.75MW) 1 Regional Interconnection: • Finalised New PPA Malaysia – Singapore Inte
Slide 8: Energy Vector: Our collaboration with GDS signals positive demand and system growth
Energy Vector Our collaboration with GDS signals positive demand and system growth for TNB in Malaysia 2 Pipeline Data Centre Projects with maximum demand of 4,300MW TNB aims to provide beyond-kWh solutions including solar roof top solutions, Green Energy Tariff (GET) and cooling solutions • High Vo
Slide 9: TNB is committed to strengthening the Electric Vehicle Ecosystem
TNB is committed to strengthening the Electric Vehicle Ecosystem Energy Usage towards the proliferation of EVs in Malaysia 1 Electric Vehicle (EV) Ecosystem 16 February 2023: Launching of the first TNB Electron vehicle charging facility at Ayer Keroh (Northern Direction) 2023 TNB to invest ~RM31 mil
Slide 10: GSPARX provides the 'extra' push on renewable energy penetration
Energy Usage GSPARX provides the ‘extra’ push on renewable energy penetration while growing TNB’s revenue source 2 Collaboration with AEON • GSPARX is collaborating with AEON for the installation of rooftop solar PV systems across 40 AEON and AEON BiG shopping malls nationwide. • Installation agreem
Slide 11: TNB will continue cultivating a generation of energy-literate society
Energy Usage TNB will continue cultivating a generation of energy-literate society that contributes to the sustainability of the country’s energy industry 3 Target Group Focus Topics / Syllabus Government Customers, School Energy 101 Key Ministries Consumers students Media Influencers • Energy Value
Slide 12: Appendix
Appendix 1Q FY2023 o Details on Financial Results o Generation Business Performance o International Business Performance o Shareholdings Analysis
Slide 13: Year-on-Year (Y-o-Y) analysis
Year-on-Year (Y-o-Y) analysis Variance RM mil 1QFY23 1QFY22 Y-o-Y analysis: RM mil % Revenue 1 12,625.6 12,153.1 472.5 3.9 Higher Group revenue driven by sales 1 Imbalance Cost Pass Through (ICPT) 3,632.3 3,505.4 126.9 3.6 demand growth of 0.8% and sales of Operating expenses (without depreciation)
Slide 14: Quarter vs previous quarter (1QFY23 vs 4QFY22) analysis
Quarter vs previous quarter (1QFY23 vs 4QFY22) analysis Variance RM mil 1QFY23 4QFY22 RM mil % Q-o-PrevQ analysis: Revenue 1 12,625.6 12,915.1 (289.5) (2.2) Imbalance Cost Pass Through (ICPT) 2 3,632.3 6,397.7 (2,765.4) (43.2) 1 Lower revenue mainly due to Operating expenses (without depreciation) 3
Slide 15: Y-o-Y normalised EBITDA & PAT for 1QFY23
Y-o-Y normalised EBITDA & PAT for 1QFY23 1 EBITDA 1QFY23 1QFY22 MFRS16 impact: Components RM mil RM mil 1QFY23 1QFY22 Variance Reported EBITDA 4,883.7 5,137.8 (RM mil) (RM mil) (RM mil) MFRS16 impact 1 (1,082.1) (1,073.4) Capacity Payment 1,082.1 1,073.4 8.7 Normalised EBITDA 2 3,801.6 4,064.4 Depre
Slide 16: Higher Y-o-Y sales of electricity and contribution from subsidiaries
Higher Y-o-Y sales of electricity and contribution from subsidiaries, mainly driven by stronger economic growth and CEI UK acquisition Variance Variance 1 1QFY23 4QFY22 1QFY23 1QFY22 1QFY23 vs 4QFY22: Lower units sold and (1QFY23 vs 4QFY22) (1QFY23 vs 1QFY22) sales of electricity from industrial and
Slide 17: Other regulatory adjustment of RM75.8 mil to be returned
As at 1QFY23, other regulatory adjustment of RM75.8 mil to be returned 4QFY22 1QFY23 1QFY22 Components of Other Regulatory Adjustment (RM mil) (RM mil) (RM mil) 1 Revenue Adjustment for Revenue Cap & Price Cap (21.7) (1.4) (44.2) Refund Related to Regulated Business (79.8) (71.1) (113.1) Regulatory
Slide 18: 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 5.0 4.2 4.7 4.3 19,716 3.1 6.0 19,183 18,808 2.2 2.5 2.5 3.2 2.7 1.2 18,566 18,585 18,338 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 17,788 -4.9 17,790 Recorded on: -5.6
Slide 19: Stable Y-o-Y electricity demand mainly contributed by commercial sector
Stable Y-o-Y electricity demand mainly contributed by commercial sector Industrial Commercial (3.4%) 6.2% 1QFY23 main contributors for the increase in commercial sector: 11,268 • Retails, educational & health services 10,882 9,399 9,981 Unit Sales (GWh) Growth 2022 1Q Y-o-Y 2023 1Q Domestic Sector M
Slide 20: Higher Y-o-Y operating expenses due to increase in generation cost
Higher Y-o-Y operating expenses due to increase in generation cost Variance Variance 1QFY23 4QFY22 1QFY23 1QFY22 (1QFY23 vs 4QFY22) (1QFY23 vs 1QFY22) (RM mil) (RM mil) RM mil % (RM mil) (RM mil) RM mil % 1 Reported as Revenue in 4QFY22 due to IBR Non-TNB IPPs Costs 3,708.3 5,097.7 (1,389.4) (27.3)
Slide 21: Higher Y-o-Y fuel costs mainly due to higher coal and gas prices
Higher Y-o-Y fuel costs mainly due to higher coal and gas prices Table A – TNB & IPP Fuel Costs for Peninsular (RM mil) Table C – Fuel Costs Related Data Variance Fuel statistics 1QFY23 1QFY22 Fuel Type 1QFY23 1QFY22 RM mil % Average Coal Price Delivered (USD/MT)(CIF) 177.5 165.5 Coal 5,589.3 5,038.
Slide 22: Lower generation from coal in 1QFY23
Lower generation from coal in 1QFY23 Generation Mix for Industry (%) 0.9 1.2 1.4 1.5 1.2 1.6 4.8 3.5 6.3 6.2 5.2 5.1 1.1 0.4 0.6 0.5 0.1 0.0 57.8 56.5 54.1 55.1 55.9 53.7 39.1 37.1 36.7 37.2 39.5 35.8 1QFY22 2QFY22 3QFY22 4QFY22 FY22 1QFY23 Gas Coal Oil & Distillate Hydro Solar 22
Slide 23: Fuel Costs & Units Generated (TNB & IPPs – Peninsular)
Fuel Costs & Units Generated (TNB & IPPs – Peninsular) Fuel Costs Units Generated Distillate TNB, 0% Distillate TNB, 0% Distillate IPP, 0% Distillate IPP, 0% LNG, 0% Oil TNB, 0% Oil TNB, 0% Oil IPP, 0% Hydro, 5% Oil IPP, 0% Gas IPP, Solar TNB, 0% 14% Distillate TNB, 0% Solar IPP, 2% Distillate IPP,
Slide 24: TNB is neutral to volatility in fuel costs under the ICPT framework
TNB is neutral to volatility in fuel costs under the ICPT framework 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) Reported Total Cost of Generation 8,367.1 11,634.6 11,029.5 12,052.8 9,186.9 (with MFRS16) Adjustment not related to IBR 909.5 948.3 840.2 * 307.2 752.4
Slide 25: Coal price trending
Coal price trending 1,040.10 1,023.80 960.40 1,022.32 1,028.10 850.94 723.70 696.30 779.40 557.21 626.40 530.47 517.93 458.12 422.60 428.44 395.92 379.84 361.40 361.22 347.03 411.10 375.30 321.56 352.05 291.87 294.87 281.12 363.40 361.70 359.91 340.50 248.60 249.03 324.99 301.88 289.33 268.24 265.81
Slide 26: Industry coal requirement forecast for FY2023
Industry coal requirement forecast for FY2023 Coal Consumption (mil MT) Source Country Mix 3.0% 34.7 7.0% 30.8 32.3 31.9 31.4 27.4 28.8 25.4 17.0% 22.2 19.3 73.0% * FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 (F) Indonesia Australia * Based on tonnage planned for delivery in FY2023 Russia Sout
Slide 27: Group CAPEX, Regulated CAPEX and Regulated Asset Base (RAB)
Group CAPEX Regulated CAPEX and Regulated Asset Base (RAB) RM mil 1,585.5 1,489.2 133.5 175.2 RP3 REGULATED ENTITIES CAPEX FY IBR Approved Actual YTD Utilisation 268.2 282.8 (RM mil) (RM mil) (%) 2023 6,973.1 1,216.5 17.4% 976.2 868.5 Total RAB (RM mil) Actual Approved As at 31 Mar 2023 FY2023 61,47
Slide 28: Gearing stood at 51.7% in 1QFY23
Gearing stood at 51.7% in 1QFY23 Statistics 31 Mar 2023 31 Dec 2022 Loan Breakdown Total Debt (RM bil) 64.6 63.9 RM3.4 bil RM RM1.7 bil 5% USD Net Debt (RM bil)* 49.8 50.8 3% JPY Gearing (%) 51.7 51.2 RM8.7 bil 13% 3% 5% GBP 13% RM8.5 bil RM3.2 bil Net Gearing (%) 39.9 40.7 RM1.8 bil 79% RM50.8 bil
Slide 29: Improvement in trade debtors ageing for 2-5 months bucket
Improvement in trade debtors ageing for 2-5 months bucket Trade Debtors Ageing (RM bil) Trade Receivables By Sectors (RM bil) 5.17 5.31 5.26 5.10 5.18 5.17 5.31 5.26 5.10 5.18 Total 1% 2% 2% 1% 1% 0.01 0.02 0.02 0.00 0.01 Undue 34% 34% 33% 36% 35% Others 1.17 1.28 1.23 1.13 1.18 Current 0.39 0.31 0.
Slide 30: Domestic generation business performance
Domestic generation business performance RM mil REVENUE EBIT PROFIT AFTER TAX 7,463.4 6,256.0 Operating Profit 235.6 391.8 886.9 492.4 206.7 1QFY23 1QFY22 1QFY23 1QFY22 (77.1) 1QFY23 1QFY22 Higher revenue mainly due to higher energy Lower EBIT and PAT due to: payment resulted from higher fuel prices
Slide 31: Our RE journey is progressing well
Our RE journey is progressing well TNB RE Journey Renewable capacity (MW) % RE in TNB’s portfolio 17% 17% 15% International 3,922 3,889 3,487 Domestic 993 993 716 Note: 2,929 2,896 2,771 • RE capacity includes large hydro • Gross RE Capacity RE Mar RE Dec RE Dec 2023 2022 2021 Recent RE Progress 1)
Slide 32: International Business – Vantage RE performance as at Mar'23
INTERNATIONAL BUSINESS - CORE/RENEWABLE ENERGY (RE) ASSETS Performance as at Mar’23 Vantage RE EM: 69% EBITDA (mil) 17.51 12.62 21.33 16.95 GBP USD 1QFY23 1QFY22 • Higher EBITDA YoY due to additional contribution from wind portfolio (97.3MW) and higher locked-in PPA prices in Q1 2023. • The total ca
Slide 33: International Business – Shuaibah, GAMA Enerji, GMR Energy performance
INTERNATIONAL BUSINESS - CORE/RENEWABLE ENERGY (RE) ASSETS Performance as at Mar’23 Shuaibah EM: 63% GAMA Enerji A.S. (GEAS) EM: 11% GMR Energy Limited (GEL) EM: 32% EBITDA (mil) EBITDA (mil)1 EBITDA (mil)1 253.58 3,772.20 4,093.00 2,000.00 114.98 781.95 410.53 30.6667.62 1,000.00 41.99 29.84 0.00 4
Slide 34: Higher TNB coal contribution for 1QFY23 due to higher demand
Higher TNB coal contribution for 1QFY23 due to higher demand: • Actual Group revenue: 29% (1QFY22: 21%) • Units generated: 39% (1QFY22: 34%); lower IPP dispatch due to unavailability Actual Group Revenue* Units Generated Solar IPP & Others, 2% 29% Hydro, 5% Solar IPP & Others, 2% Gas IPP, Hydro, 5%
Slide 35: Shareholdings
Shareholdings Khazanah Nasional Berhad 16.2 18.4 Permodalan Nasional Berhad (PNB) 18.3 15.8 Employees Provident Fund 7.4 Board (EPF) 7.3 Kumpulan Wang Persaraan (%) 1.5 1.9 (KWAP) Other Government Agencies 25.5 18.5 24.5 Local Corporation & Retail 13.1 18.7 Foreign Shareholding 12.9 Pacific, Africa,
Slide 36: 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 37: 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
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