Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Q1 FY2021 Earnings Presentation
37 slides from Tenaga Nasional Bhd's earnings presentation, May 28, 2021
Slide 1: Presentation to Analysts Q1 2021
Q1 2 0 2 1 PRESENTATION TO ANALYSTS 28TH MAY 2021 Unaudited Consolidated Result for the 1st Quarter FY2021 Ended 31st March 2021
Slide 2: Content Overview
CONTENT OVERVIEW 01 KEY HIGHLIGHTS 02 STRATEGY 03 OUTLOOK 04 APPENDIX 2
Slide 3: FY2021 Highlights & Focus Areas
KEY HIGHLIGHTS FY2021 HIGHLIGHTS & FOCUS AREAS 1QFY2021 Highlights Focus Areas 01 02 • Reimagining TNB's (RT) aspiration: To be the leading Resilient 1QFY2021 performance, RE target is well on track provider of sustainable energy solutions in Malaysia although some challenges persist and internation
Slide 4: Financial Performance Overview
KEY HIGHLIGHTS FINANCIAL PERFORMANCE OVERVIEW Our 1QFY’21 performance remain resilient, although some challenges persist REVENUE EBITDA PROFIT AFTER TAX RM mil RM mil RM mil (1.5%) 18.0% 3.3% (19.0%) 32.1% 25.7% ICPT ICPT (307.5) 11,654.5 11,478.0 (327.3) 5.9% 4,974.8 4,974.8 4,813.8 1,201.8 1,120.5
Slide 5: Technical Results
KEY HIGHLIGHTS TECHNICAL RESULTS Robust technical performance Equivalent Plant Availability Factor (EAF) System Minutes SAIDI (Generation) (Transmission) (Distribution Network) TITLE D 83.71% 0.03 mins 11.97 mins 1QFY’20: 88.63% 1QFY’20 : 0.01 mins 1QFY’20 : 11.81 mins 2021 Target: 86.1% 2021 Target
Slide 6: Capex
KEY HIGHLIGHTS CAPEX Regulated CAPEX spending is on track RM mil 1,666.2 1,799.9 21.6 221.0 160.3 183.0 RP2 EXTENSION REGULATED ENTITIES CAPEX FY IBR Approved Actual YTD Utilization 1,029.8 (RM mil) (RM mil) (%) 934.1 1,619.2 2021 7,295.7 22.2% As at Mar’21 The balance of the Regulated CAPEX for FY2
Slide 7: Content Overview
CONTENT OVERVIEW 01 KEY HIGHLIGHTS 02 STRATEGY 03 OUTLOOK 04 APPENDIX 7
Slide 8: Strategy to Be a Leading Provider of Sustainable Energy Solutions
STRATEGY TO BE A LEADING PROVIDER OF SUSTAINABLE ENERGY SOLUTIONS IN MALAYSIA AND INTERNATIONALLY TNB champions an ambitious strategy to drive the nation’s Energy Transition amidst a rapidly-evolving industry landscape TO BE A LEADING PROVIDER OF SUSTAINABLE ENERGY SOLUTIONS IN MALAYSIA AND INTERNAT
Slide 9: Ambitious Renewable Energy Targets
STRATEGY TO BE A LEADING PROVIDER OF SUSTAINABLE ENERGY SOLUTIONS IN MALAYSIA AND INTERNATIONALLY The increasing emphasis on Sustainable Energy sets the tone for ambitious RE targets TNB RE Target of 8,300MW by 2025 Progress 8,300MW Large Scale Solar (LSS) • TNB has been shortlisted to develop a 50M
Slide 10: Capex Enabling Malaysia's Energy Transition
STRATEGY TO BE A LEADING PROVIDER OF SUSTAINABLE ENERGY SOLUTIONS IN MALAYSIA AND INTERNATIONALLY CAPEX under regulated business is key to enabling Malaysia’s Energy Transition (ET) Regulated businesses spends on average ~16% of its CAPEX towards supporting Energy Transition Major projects related t
Slide 11: Broadband Business Progress
STRATEGY TO BE A LEADING PROVIDER OF SUSTAINABLE ENERGY SOLUTIONS IN MALAYSIA AND INTERNATIONALLY Expansion of broadband offering riding on our fibre optic infrastructure is a catalyst for future non-regulated revenue stream Progress ❑ TNB via its wholly owned subsidiary, Allo Technology Sdn. Bhd is
Slide 12: Content Overview
CONTENT OVERVIEW 01 KEY HIGHLIGHTS 02 STRATEGY 03 OUTLOOK 04 APPENDIX 12
Slide 13: Electricity Demand
OUTLOOK ELECTRICITY DEMAND IS EXPECTED TO RECOVER IN 2021 COMPARED TO THE DECLINE IN 2020 • Under RP2 extension year, our approved demand forecast is 113,909 GWh or 2.9% growth compared to contraction of 4.9% in 2020. Electricity • We expect the lockdown for this year to be less severe than in FY202
Slide 14: Focus to Strengthen Regulated & Non-Regulated Business
OUTLOOK FOCUS TO STRENGTHEN BOTH REGULATED & NON-REGULATED BUSINESS Regulatory Period 3 • TNB is in the midst of discussion with EC in regards to RP3. TNB to continue to pursue the right returns, as under investments (due to insufficient returns) could potentially risk the reliability of the network
Slide 15: Content Overview
CONTENT OVERVIEW 01 KEY HIGHLIGHTS 02 STRATEGY 03 OUTLOOK 04 APPENDIX 15
Slide 16: Profit & Loss: Year-on-Year Analysis
APPENDIX 1 PROFIT & LOSS Year-on-year (Y-o-Y) analysis Variance RM mil 1QFY'21 1QFY'20 Y-o-Y PAT includes: RM mil % Revenue 11,478.0 11,654.5 (176.5) (1.5) 1 Higher due to increase in ADD Operating expenses (without depreciation) (6,499.5) (6,954.6) 455.1 (6.5) of RM121.5mil and Net loss on impairme
Slide 17: Profit & Loss: Quarter vs Previous Quarter
APPENDIX 2 PROFIT & LOSS Quarter vs Previous Quarter (1QFY’21 vs 4QFY’20) analysis Variance RM mil 1QFY'21 4QFY'20 Q vs Previous Q PAT includes: RM mil % Revenue 11,478.0 10,324.3 1,153.7 11.2 1 Higher Revenue mainly due 1 Operating expenses (without depreciation) (6,499.5) (6,133.0) (366.5) 6.0 to
Slide 18: Y-o-Y Normalised EBITDA & PAT
APPENDIX 3 NORMALISED EBITDA & PAT Y-o-Y normalised EBITDA & PAT for 1QFY’21 1 EBITDA 1QFY'21 1QFY'20 Impairment in 1QFY’21 includes: Components RM mil RM mil • GMR : RM 276.4mil • LPL : RM 60.4mil Reported EBITDA 4,974.8 4,813.8 Impairment 1 336.8 - 2 MFRS16 impact (1,063.7) (1,119.7) Higher Normal
Slide 19: GenCo Segmental Reporting
APPENDIX 4 GENCO SEGMENTAL REPORTING GenCo earnings due to hydro performance REVENUE EBITDA PROFIT AFTER TAX RM mil 4,656.9 RM mil RM mil 965.5 570.1 20.7% 1QFY'21 1QFY'21 1QFY'21 EBITDA Margin 1QFY’21 PAT was mainly contributed by the increase in hydro generation during monsoon season which has res
Slide 20: International Business: Vortex, TWV, Shuaibah
APPENDIX 5 INTERNATIONAL BUSINESS Vortex Solar UK Limited EM: 63% Tenaga Wind Ventures (TWV) EM: 74% Shuaibah EM: 77% E B I T DA ( m i l ) E B I T DA ( m i l ) E B I T DA ( m i l ) 259.91 232.90 5.03 3.73 6.52 5.14 6.37 4.91 4.38 6.04 69.31 62.11 GBP USD GBP USD SAR USD 1QFY'20 1QFY'21 1QFY'20 1QFY'
Slide 21: International Business: GEL, GEAS, LPL
APPENDIX 6 INTERNATIONAL BUSINESS GMR Energy Limited (GEL) EM: 24% GAMA Enerji A.S. (GEAS) EM: 37% TNB Liberty Power Limited (LPL) EM: 42% E B I T DA ( m i l ) 1 E B I T DA ( m i l ) 1,2,3 E B I T DA ( m i l ) 888.04 1,735.54 250.28 410.24 106.51 33.33 2.62 5.60 852.82 24.36 11.52 17.29 TRY USD PKR
Slide 22: Revenue
APPENDIX 7 REVENUE Lower sales of electricity compensated through regulatory adjustment, while domestic non-regulated business impacted by Covid-19 pandemic Variance Variance 1 1QFY’21 vs 1QFY’20 : Lower unit sold & sales of 1QFY'21 4QFY'20 1QFY'21 1QFY'20 (1QFY'21 vs 4QFY'20) (1QFY'21 vs 1QFY'20) e
Slide 23: Regulatory Adjustment
APPENDIX 8 REGULATORY ADJUSTMENT As at 1QFY’21, RM55.7mil of other regulatory adjustment to be returned mainly due to higher average selling price from price cap entity 1QFY’21 Components of Other Regulatory Adjustment (RM mil) 1 Revenue Adjustment for Revenue Cap & Price Cap (10.8) Refund of Other
Slide 24: Demand Growth
APPENDIX 9 DEMAND GROWTH Y-o-Y electricity demand contracted in tandem with GDP GDP & TNB (Peninsula) Demand Growth TNB (Peninsula) Maximum Demand 5.9 % 5.0 4.7 4.3 4.2 1QFY’21 1QFY’20 Variance (%) Maximum 18,366 18,808 -2.4 2.5 2.5 3.2 2.7 Demand (GWh) 2.2 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 -4.9 T
Slide 25: Sectoral Growth (Peninsula)
APPENDIX 10 SECTORAL GROWTH (PENINSULA) Lower electricity demand from sluggish commercial sector Industrial 1Q main contributors for the drop Commercial 7.5% Industrial: (12.6%) • Cement products • Textile or cloth products (22.7%) 0.2% 0.2% (28.3%) (8.4%) (10.7%) (12.6%) 7.5% • Utility supply Comme
Slide 26: Group Opex
APPENDIX 11 GROUP OPEX Lower Y-o-Y operating expenses due to lower generation cost 1 1QFY’21 vs 4QFY’20 : Higher Generation cost Variance Variance mainly due to higher coal price 1QFY'21 4QFY'20 1QFY'21 1QFY'20 (1QFY'21 vs 4QFY'20) (1QFY'21 vs 1QFY'20) (RM mil) (RM mil) (RM mil) (RM mil) 1QFY’21 vs
Slide 27: Y-o-Y Fuel Cost (Peninsula)
APPENDIX 12 Y-O-Y FUEL COST (PENINSULA) Lower fuel cost from reduction in units generated and gas price Table A – TNB & IPP Fuel Costs for Peninsula (RM mil) Table C – Fuel Costs Related Data Variance 1QFY’21 1QFY’20 Fuel Type 1QFY'21 1QFY'20 RM mil % Daily Average Piped Gas Volume (mmscfd) 722 755
Slide 28: Generation Mix
APPENDIX 13 GENERATION MIX Higher units generated from hydro in 1QFY’21 due to monsoon season GENERATION MIX FOR INDUSTRY (%) 0.7 0.8 0.7 0.7 0.7 0.9 2.7 3.0 4.5 4.9 3.8 6.6 0.0 0.0 0.0 0.0 0.0 0.1 65.6 66.2 64.6 65.8 66.9 61.9 31.0 30.0 27.9 29.8 29.7 30.5 1QFY'20 2QFY'20 3QFY'20 4QFY'20 FY'20 1QFY
Slide 29: Fuel Costs (TNB & IPPs – Peninsula)
APPENDIX 14 GENERATION MIX Fuel costs (TNB & IPPs – Peninsula) Fuel Costs Units Generated Oil IPP, 0.0% Dist. IPP, 0.0% Oil TNB, 0.0% Oil IPP, 0.1% Coal IPP, 24.0% Dist. TNB, 0.0% Coal IPP, 21.6% Oil TNB, 0.1% Solar IPP, 0.6% Dist. IPP, 0.0% Solar TNB, 0.1% Dist. TNB, 0.2% Oil IPP, 0.0% Coal IPP, 24
Slide 30: ICPT
APPENDIX 15 ICPT Continuous effective ICPT implementation neutralises the fluctuation in fuel costs 1QFY' 20 2QFY' 20 3QFY’ 20 4QFY’ 20 1QFY' 21 (R M mn ) (R M mil) (R M mil) (R M mil) (R M mn ) Reported Total Cost of Generation 5,019.7 4,415.0 4,404.5 3,745.9 4,199.9 (with MFRS16) Adjustment not re
Slide 31: Coal Price
APPENDIX 16 COAL PRICE Continuous downward trending of coal price will relieve pressure on future ICPT Coal Price Trending 458.1 422.6 428.4 395.8 376.6 411.1 362.7 361.4 361.2 347.7 337.5 375.3 347.0 361.7 352.0 359.9 321.6 340.5 331.3 327.9 291.9 294.9 320.3 301.9 281.1 254.1 254.6 289.3 256.7 256
Slide 32: Coal Forecast
APPENDIX 17 COAL FORECAST Higher coal requirement for 2020 with the full operation of Jimah East Power Average Coal Price (CIF) FY'14 FY'15 FY'16 FY'17 FY'18 FY’19 FY’20 1QFY’21 USD/metric tonne (MT) 75.4 66.0 55.7 72.7 95.9 79.3 60.6 79.2 RM/metric tonne (MT) 244.6 236.0 231.1 314.7 388.1 326.3 255
Slide 33: Net Impact of MFRS 16
APPENDIX 18 PROFIT & LOSS The net impact of MFRS 16 reduced the group PAT by RM147.0mil Net Impact of MFRS 16 (Y-o-Y) analysis 1QFY'21 1QFY'20 Variance Remarks (RM mil) (RM mil) (RM mil) Decreasing EBITDA and PAT Capacity Payment 1,063.7 1,119.7 (56.0) in 1QFY'21 Depreciation (877.7) (912.5) 34.8 In
Slide 34: Trade Debtors
APPENDIX 19 TRADE DEBTORS Higher trade debtors due to the re-imposition of MCO and resurgence of Covid-19 cases. However, our cash flow remain robust Trade Debtors Ageing (RM bil) Trade Debtors By Sectors Total 5.42 4.64 4.41 4.62 2% 2% 2% 2% Undue 0.02 30% 33% 35% Current 0.02 0.02 0.01 39% Others
Slide 35: Gearing
APPENDIX 20 GEARING Increased in total debt due to drawdown of new sukuk, however capital headroom remains healthy Statis tics 31s t Mar'21 31 st Dec'20 RM Equivalent of Loan Value (bil) 1 Total Debt (RM' Bil) 50.7 49.5 Net Debt (RM' Bil)* 34.0 36.0 Gearing (%) 47.4 46.3 74.9% Net Gearing (%) 31.8 3
Slide 36: TNB Shareholding Structure
APPENDIX 21 TNB SHAREHOLDING STRUCTURE TNB market capitalisation of RM57.7bil as at 31st March 2021 Top 10 KLCI Stocks by Market Capitalisation RM bil Khazanah Nasional Berhad Maybank 94.2 (1.0%) 18.6 17.8 95.1 Permodalan Nasional Berhad (PNB) Public Bank 81.5 +1.9% 18.5 17.7 80.0 Employees Providen
Slide 37: Thank You
THANK YOU CoE INVESTOR RELATIONS GROUP FINANCE DIVISION Tenaga Nasional Berhad 4th Floor, TNB Headquarters No.129, Jalan Bangsar, 59200 Kuala Lumpur, MALAYSIA Tel : +603 2108 2128 Fax : +603 2108 2034 Email : tenaga_ird@tnb.com.my Website : www.tnb.com.my IR OFFICERS: 1) Mehazatul Amali Meor Hassan
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