Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Q3 FY2024 Earnings Presentation
43 slides from Tenaga Nasional Bhd's earnings presentation, Nov 29, 2024
Slide 1: Analyst Briefing 3QFY2024
ANALYST BRIEFING 3QFY2024 29 November 2024 | Business Lounge, TNB Platinum
Slide 2: Key Highlights
Key Highlights Stable performance in 9MFY2024, driven by the successful strategic initiatives, positions us for continued growth 9MFY2024 OUTLOOK PAT Demand Growth Demand Growth Reported 7.6% 5.8% – 6.3% RM3,821.8 mil (Y-o-Y) Units Sold: 104,175GWh Growth in economic activities (Revised for 2024) PA
Slide 3: Energy Landscape: TNB's 75-Year Legacy
Energy Landscape TNB's 75-Year Legacy: Adapting to evolving energy landscape and sustainability aspirations Prime Minister Anwar emphasised TNB’s role in balancing sustainable energy with economic growth, stressing environmental responsibility and innovation in tackling climate challenges. The key t
Slide 4: TNB advancing energy security and leading regional energy transition
Energy Landscape As a key player in the ASEAN Power Grid, TNB is advancing energy security and leading the region’s energy transition Regional Business Opportunities N o er rid N s o er rid a acity 1 Lao PDR-Thailand-Malaysia-Singapore Power Integration is ing Project (LTMS-PIP) re • Signed agreemen
Slide 5: Generation Growth: expanding renewable capacity towards Net Zero
Generation Growth Strengthen operational performance whilst expanding renewable capacity growth towards Net Zero aspiration Generation Capacity Mix Projection by 2050 17GW ~21GW ~18GW ~19GW 23% 39% 47% 42% 32% 34% 37% 58% 45% 27% 16% 2024 2030 2040 2050 GenCo EAF Total Capacity (GW) 9MFY2024 80.0% T
Slide 6: RE Capacity Expansion
RE Capacity Expansion We are making steady progress with a strong pipeline of renewable energy capacity expansion as we transform into a greener entity Pipeline projects up to 2030 1,005MW 1,425MW 930MW ~5,585MW Spark Renewables 102MW 135MW Hybrid Hydro Floating Hybrid Hydro Floating 825MW [300MW]*
Slide 7: Carbon Emission Management
Carbon Emission Management TNB targets 5% annual reduction in carbon emission intensity (Scope 1) starting 2024, through RE capacity expansion and carbon management strategy Carbon emission intensity reduction Three (3) initiatives under carbon management strategy Reduce carbon emission i. Enhanceme
Slide 8: Quarterly Updates
QUARTERLY UPDATES
Slide 9: Deliver Clean Generation
Deliver Clean Generation We continue to seek growth opportunities while forging ahead with growing our RE portfolio Projects 9MFY2024 Key Highlights Sungai Perak Hydro Life Extension Programme 649MW COD: 1st unit 2026 (8MW) Nenggiri Hydro Project Achieved 36% project progress Nenggiri Hydro Project
Slide 10: Develop Energy Transition Network
Develop Energy Transition Network We are on track to fully utilise CAPEX by the end of RP3, with key projects making strong progress 9MFY2024 Key Achievements Smart Meter Installation progress: Regulated CAPEX FY2024 Target: 133% 600,000 units Cumulative Installed to date: Installed 802,501 units 4,
Slide 11: Data centres: delivering power at scale and speed
Develop Energy Transition Network TNB continues to deliver power at scale and speed, reflecting its strong commitment and support for data centre growth 9MFY2024 Data Centres Achievements Key Highlights 9MFY2024 Project Stage Actual Load Utilisation 6 31 projects projects 248MW for September 2024 8
Slide 12: GSPARX rooftop solar: Dynamic Energy Solutions
Dynamic Energy Solutions GSPARX transforms consumers to prosumers through rooftop solar installations, elevating alaysia’s green energy progress 3QFY2024 Key Achievements 16.9MWp Secured Capacity Pejabat Daerah Kuala Nerus • To install 430kWp rooftop solar PV at their premise in Kuala Nerus, GSPARX
Slide 13: EV ecosystem and charge points
Dynamic Energy Solutions TNB lays a key role in advancing alaysia’s market by installing chargers and supplying electricity infrastructure to Charge Point Operators (CPOs) EV Ecosystem Key Highlights Green Lane Supply Connections YTD Electricity Sales (CPO) TNB Charge Points 54 66 177 Commissioned C
Slide 14: Higher PAT in 9MFY2024
Higher PAT in 9MFY2024 was driven by stable overall performance REVENUE EBITDA PAT 7.5% 0.4% Reported RM3,821.8 mil RM42,358.8 mil RM14,398.9 mil 13.7% 9MFY2023: RM39,414.9 mil RM2,775.8 mil EBITDA MARGIN*: 36.2% PAT (before forex translation) 9MFY2023: RM14,342.8 mil 9MFY2023: RM2,441.7 mil EBITDA
Slide 15: Domestic generation business performance
Domestic generation business performance Y-o-Y: Overall improved performance by power plants despite M4 outage GenCo at Group RM mil REVENUE EBIT PROFIT AFTER TAX (PAT) 19,727.6 154 Adjusted PAT* 256 17,945.4 1,186.8 505.1 * 426.3 9MFY'24 9MFY'23 9MFY'24 9MFY'23 (327.9) 9MFY'24 9MFY'23 *PAT adjusted
Slide 16: Group earnings supported by improved generation and network performance
Group earnings supported by; i. Improved generation performance ii. World-class network performance Equivalent Plant Availability Factor, EAF (Generation) 9MFY2024 % 80.0% Stable overall performance by power plants 2024 Target: 78.6% System Minutes (Transmission) 9MFY2024 Minutes 0.0001 2024 Interna
Slide 17: Lower receivables strengthening cash flow and credit rating
Y-o-Y: Lower receivables driven by lower ICPT and improved collections, strengthening our cash flow position and credit rating Receivables (RM bil) Strong collection trend with collection rate >100% since 1 March 2022 15.6% Strong 119% 120% 120% 123% 113% 114% 113% Collection 112% 112% Trend ICPT Re
Slide 18: Forward Guidance
Forward Guidance We continue to pursue sustainable business growth as we commit to a greener future Demand growth is projected to be between Regulatory Period 4 5.8% - 6.3% RP4 proposal assessment is in the advanced stage Electricity Oct’24 Jan’25 Projected GDP between 4.8% - 5.3% Demand RP4 Submiss
Slide 19: Appendix
Appendix 9MFY2024 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 Y-o-Y analysis: RM mil 9MFY'24 9MFY'23 RM mil % 1 Revenue 1 42,358.8 39,414.9 2,943.9 7.5 Higher Group revenue recorded from sales Imbalance Cost Pass Through (ICPT)* 2 7,371.6 8,491.6 (1,120.0) (13.2) demand growth of 7.6% and additional Operating expenses (without depreciat
Slide 21: Q-o-Q analysis
Q-o-Q analysis Variance RM mil 3QFY'24 2QFY'24 RM mil % Revenue 14,351.6 14,366.8 (15.2) (0.1) Q-o-Q analysis: Imbalance Cost Pass Through (ICPT) 1 2,196.4 2,822.2 (625.8) (22.2) 1 Operating expenses (without depreciation) (12,295.8) (12,442.2) 146.4 (1.2) Lower ICPT due to lower coal price. Net rev
Slide 22: Y-o-Y normalised EBITDA and PAT
Y-o-Y normalised BIT and T for 9 FY’24 EBITDA 9MFY'24 9MFY'23 1 MFRS16 impact: 9MFY'24 9MFY'23 Variance Actual figure Components RM mil RM mil input tab (to C RM mil RM mil RM mil Reported EBITDA 14,398.9 14,342.8 MFRS16 impact 1 (2,891.0) (3,174.7) Capacity Payment 2,891.0 3,174.7 (283.7) Normalise
Slide 23: Higher Group revenue driven by healthy demand growth
Higher Group revenue driven by overall healthy demand growth Variance Variance 3QFY'24 2QFY'24 9MFY'24 9MFY'23 (3QFY'24 vs 2QFY'24) (9MFY'24 vs 9MFY'23) UNITS SOLD GWh GWh GWh % GWh GWh GWh % Sales of Electricity (GWh) 1 - TNB 33,358.5 33,120.5 238.0 0.7 98,378.4 91,714.6 6,663.8 7.3 Higher revenue
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 1.2 18,585 Recorded on: FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 -4.9 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 9 FY’24 main contributors for the increase in industrial & 2.9% commercial sectors: 9.6% Industrial 3.0% 2.6% 3.1% • Utility electrical, consumer products and iron & steel 11.2% 8.8% 8.8% Commerci
Slide 26: Other regulatory adjustment to be returned
s at 9 FY’24, other regulatory adjustment of 1,873.9 mil to be returned 1QFY'24 2QFY'24 3QFY24 9MFY'24 9MFY'23 Components of Other Regulatory Adjustment RM mil RM mil RM mil RM mil RM mil Revenue Adjustment for Revenue Cap & Price Cap (412.4) (684.1) (621.0) 1 (1,717.5) (803.8) Refund Related to Reg
Slide 27: Higher Y-o-Y operating expenses
Higher Y-o-Y operating expenses Variance Variance 3QFY'24 2QFY'24 9MFY'24 9MFY'23 (3QFY'24 vs 2QFY'24) (9MFY'24 vs 9MFY'23) RM mil RM mil RM mil % RM mil RM mil RM mil % Non-TNB IPPs Costs 4,612.0 4,694.8 (82.8) (1.8) 13,540.2 11,506.3 2,033.9 17.7 1 3Q ’24 vs 2Q ’24: Lower fuel and power Capacity P
Slide 28: Lower overall fuel costs due to lower coal price
o er overall fuel costs due to lo er coal rice in 9 FY’24 Table A – TNB & IPP Fuel Costs for Peninsular Table C – Fuel Costs Related Data 9MFY'24 9MFY'23 Variance Fuel statistics 9MFY'24 9MFY'23 Fuel Type Average Coal Price Delivered (USD/MT)(CIF) 112.5 139.9 RM mil RM mil RM mil % 521.8 630.7 Avera
Slide 29: Fuel Costs & Units Generated
Fuel Costs & Units Generated (TNB & IPPs – eninsular in 9 FY’24 Units Fuel Costs Generated Distillate TNB, 0.3% Distillate TNB, 0.0% Distillate IPP, 0.3% Distillate IPP, 0.1% Oil TNB, 0.1% Oil TNB, 0.0% Oil IPP, 0.0% Hydro, Oil IPP, 0.0% 4.3% Solar TNB, 0.2% Gas IPP, Distillate TNB, 0.3% Solar IPP,
Slide 30: Lower Q-o-Q fuel costs mainly due to lower coal costs
Lower Q-o-Q fuel costs mainly due to lower coal costs Table A – TNB & IPP Fuel Costs for Peninsular Table C – Fuel Costs Related Data 3QFY'24 2QFY'24 1QFY'24 Variance 3QFY'24 vs 2QFY'24 Fuel statistics 3QFY'24 2QFY'24 1QFY'24 Fuel Type RM mil RM mil RM mil RM mil % Average Coal Price Delivered (USD/
Slide 31: Q-o-Q: Higher generation from coal in 3QFY24
Q-o-Q: Higher generation from coal in 3QFY’24 Generation Mix for Industry (%) 1.5 2.0 1.9 2.4 4.6 5.9 3.6 3.4 0.2 0.0 0.1 0.1 57.0 52.6 57.2 58.3 36.7 39.4 37.3 35.8 FY2023 1QFY'24 2QFY'24 3QFY'24 Gas Coal Oil & Distillate Hydro Solar 28
Slide 32: TNB is neutral to volatility in fuel costs under ICPT
TNB is neutral to volatility in fuel costs under the ICPT framework 4QFY'23 1QFY'24 2QFY'24 3QFY'24 RM mil RM mil RM mil RM mil Single Buyer Actual Generation Costs: (A) 10,357.3 10,710.6 11,499.8 10,936.5 Actual Sales (GWh) 31,491.4 31,899.4 33,120.6 33,359.0 Single Buyer Tariff (RM/kWh) 0.2620 0.2
Slide 33: Fuel Margin: Coal Price Trending
Fuel Margin: Coal Price Trending Applicable Coal Price (ACP) vs Moving Average Price (MAP) 900.0 850.9 800.0 779.4 FY2023 FY2024 700.0 623.1 600.0 540.4 600.6 554.9 530.5 530.5 ACP<MAP 524.6 543.4 539.4 Negative 500.0 524.8 fuel margin 508.9 499.6 400.0 850.9 (RM767.9 mil) 300.0 554.9 200.0 600.6 RM
Slide 34: Industry coal requirement forecast for FY2024
Industry coal requirement forecast for FY2024 Coal Consumption (mil MT) Source Country Mix 3% 34.7 33.1 34.0 9% 32.3 31.9 20% 68% * FY'20 FY'21 FY'22 FY'23 FY'24 (F) Indonesia Australia * Based on tonnage planned for delivery in FY2024 Russia South Africa 31
Slide 35: Group CAPEX, Regulated CAPEX and RAB
Group CAPEX Regulated CAPEX and RM mil Regulated Asset Base (RAB) 7,205.9 6,174.2 585.6 644.0 RP3 REGULATED ENTITIES CAPEX FY IBR Approved Actual YTD Utilisation 1,837.3 1,554.6 RM mil RM mil (%) 2024 7,099.1 5,981.2 84.3 4,157.4 3,287.6 Total RAB (RM mil) Actual Projected As at 30 Sep 2024 FY2024 6
Slide 36: Gearing improved to 47.5%
earing im roved to 47.5% as at 9 FY’24 Major Loan Breakdown 30 Sep'24 31 Dec'23 RM1.0 bil RM1.3 bil MYR Total Debt RM3.4 bil (RM bil) 55.6 61.8 6% 2% 2% USD RM1.4 bil 3% 2% JPY Net Debt * 6% 2% GBP (RM bil) 37.6 40.8 RM8.0 bil 3% 14% 14% RM1.4 bil EUR RM8.8 RM1.2 bil Gearing bil RM3.6 bil AUD (%) 47
Slide 37: Trade receivables
Trade receivables as at 9 FY’24 Trade Debtors Ageing (RM bil) Trade Receivables By Sectors (RM bil) 5.5 5.0 5.1 5.3 5.0 5.5 5.0 5.1 5.3 5.0 Total 2% 2% 2% 2% 1% Current 35% 34% 35% 37% 37% Others 1.4 1.5 1.3 1.5 1.5 1 Month 0.3 Domestic 0.7 0.4 0.3 0.3 0.3 0.5 0.5 0.6 0.6 2 to 5 Months 37% 37% 37% 3
Slide 38: Revenue from coal recorded at 20% due to M4 outage
Revenue from coal recorded at 20% due to M4 outage Actual Group Revenue* 20% 25% 4% 1% RE Coal Others ** 9MFY’23 * Total revenue includes ICPT ** Others include revenue from regulated business, subsidiaries 74% 9MFY’24 and other generation sources 76% Long-term aspiration: ▪ No new coal plant invest
Slide 39: Our RE journey is progressing well
Our RE journey is progressing well TNB RE Portfolio Renewable capacity (MW) 21% 20% 17% 4,372 4,302 3,889 % RE in TNB’s portfolio 1,183 1,183 993 International 3,189 3,119 2,896 Domestic Sep Dec Dec 2024 2023 2022 Note: • Gross RE Capacity includes large hydro (exclude SESB) • Solar capacity is quot
Slide 40: 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 41: Shareholdings
Shareholdings Khazanah Nasional Berhad 16.7 Permodalan Nasional Berhad 15.8 7.0 (PNB) 16.8 Employees Provident Fund 18.3 1.9 Board (EPF) 7.5 1.7 Kumpulan Wang Persaraan (KWAP) (%) 22.6 19.1 Other Government Agencies 20.6 20.9 Local Corporation & Retail 12.5 Africa Pacific 0.02% 0.03% Foreign Shareho
Slide 42: 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 43: 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 Envelope with solid fill
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