Tenaga Nasional Bhd · MYX:TENAGA

Tenaga Nasional Bhd — 9M FY2007 Earnings Presentation

34 slides from Tenaga Nasional Bhd's earnings presentation, Jul 13, 2007

  1. Slide 1: Unaudited Financial Results for the 9 Months Ending 31 August 2007

    UNAUDITED FINANCIAL RESULTS ENON L FOR THE 9 MONTHS OF THE YEAR ENDING = JASIONAL seruap 31ST AUGUST 2007 (200866-W) 13th July 2007

  2. Slide 2: ! " # $ % &'! (#$ "%$ )*+,# #* ! " # $

    ! " # $ % &'! (#$ "%$ )*+,# #* ! " # $ % &'! (#$ "%$ )*+,# #$ ! 2

  3. Slide 3: ! " # $ % &'! (#$ "%$ )*+,# -. - *+ $ *

    ! " # $ % &'! (#$ "%$ )*+,# -. - *+ $ * / )*$ #% % # 3

  4. Slide 4: 0# ! #4#+ # $ %5 , % ) + ) ! - &#$

    0# ! #4#+ # $ %5 , % ) + ) ! - &#$ * + 1&#+!#! , %) ) * ++ . *$ + &%) ) % ) ' ( %* #2 !" *&#1 #&*$3 %& # #$" % *+ #+*+,# 1&#+!#! 4

  5. Slide 5: +*+,* !6-- )+ #4#+ # 9: - : 9-9 &#$ * + 1&#+!#! ;

    +*+,* !6-- )+ 78 7 #4#+ # 9: 8 - : 9-9 &#$ * + 1&#+!#! ; : -<= ; :8 - = #$ &#$ * + +,%)# -8 9 - &#$ * + $ & ! : - 9: - +*+,# %! ; : 9- = ; 88-<= $ *+!*, %+ *+>; %!!= ; -?= <-? ($ %" .#" %$# *13 $ *+! * %+ * +>; %!!=@ : 99?- : 9 ?- # ($ %" .#" %$# $ *+! * %+ * + < 9-< : < -9 $ *+! * %+ *+ ? ?- : - ($

  6. Slide 6: Revenue, Opex, EBITDA margin and net profit

    (#$ "%$ )*+,# $ #+A REVENUE OPEX 7.6% 16.5% RM mn RM mn 20,000 17,194.4 13,261.7 15,000 12,319.8 14,763.9 11,684.1 14,021.4 10,898.9 15,000 13,068.1 10,189.6 12,126.5 10,000 10,000 5,000 5,000 0 0 YTD 3Q FY'03 FY'04 FY'05 FY'06 FY'07 YTD 3Q FY'03 FY'04 FY'05 FY'06 FY'07 NET PROFIT* EX. EBITDA MARGIN

  7. Slide 7: ROA, gearing, EPS and interest coverage

    )&$ %4#)#+ + +*+,* * %! Gearing (%) ROA* (%) 80 8 67.4 67.3 65.8 6.2 61.5 62.2 7 60 6 49.1 5 40 4 2.9 2.6 2.6 3 1.7 20 2 1.5 1 0 0 YTD 3Q FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 YTD 3Q FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 Basic Earnings Per Share (Sen) Interest Coverage (times) 91.3 8 6.9 100.0 80.0 6 4.

  8. Slide 8: Peer benchmarking

    .#+, )*$/#A *+! #$ #! :6' :4+78 : + 73+ 94+78 5 ! 23 4278 4 ! ! ' 1 ''' 1 0 ' 1 '', 1 1 01 ''' 01 ''' 6 ; " 1 /<+= . *$ + ;E = # $ + + +4#! #A *& * ;E = 60 57.3 16.0 14.4 13.7 14.0 50 40.4 12.0 37.5 38.6 40 35.7 32.1 10.0 8.6 8.9 26.6 7.4 30 8.0 6.6 5.7 17.5 6.0 20 13.4 3.3 3.7 4.0 10 2.0 0 0.0 AGL

  9. Slide 9: #4#+ #F *$ # $ %) (#+ +! *$ #, $, *#! -<E .$

    #4#+ #F *$ # $ %) (#+ +! *$ #, $, *#! -<E .$ #*/A%5+ %" #, $, *#! ( %%A! 3 - E #$4,#! ' 8 ' -<E #"#$$#A -?E +,%)# -9E )+ )+ . -9E (#+ +! *$ > >& ** ! * . & (#++! *$ ( % ** ! * <<- E %* 9: 8-8 8: ? -9 ' %* : 9-9 )+ ' 8 %* 9: 8 - )+ 9

  10. Slide 10: Maximum demand

    #, $, #)*+A $ #+A Highest MD 13,409MW 28/3/07 1Q 2Q 3Q 4Q 13,500 13,000 12,500 12,000 11,500 11,000 MD 10,500 FY 2003 10,000 FY 2004 FY 2005 9,500 FY 2006 FY2007 9,000 8,500 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Sept April WEEK NO. Oct Nov Dec Jan Feb Mar May 10

  11. Slide 11: Electricity sales by customer segment

    +* ! ! %" #, $, $ %5 2 #, %$ ! YTD FY’07 = 15.5% YTD FY’07 = 5.2% ( YTD FY’06 = 5.8% ) ( YTD FY’06 = 4.6% ) 13.9% 0.1 % YTD FY2006 (RM mn) 20.3% (GWh) 3.1% 6,500 30,000 6,000 7.6% YTD FY2006 5,500 25,000 7.9% 5,000 4,500 20,000 4,000 3,500 11.6% 15,000 6.2% 3,000 2,500 10,000 2,000 4.7% 1,500 9.3% 1

  12. Slide 12: Share price performance and KLCI index

    %$ # + *$ # %A + 3 G # +0 *$ #($,# %4#)#+ *)#%" *$ # %A#$ ! ) 16 1600 9- ? -6 ' - 14 4 + # ;4+#=' % 12 1200 9 @ ! -+ 10 /A -/ - ' % % points 8 800 RM 8- 7 <2 ! 6 2%* % 4 400 % # ! & & 2 + 0 0 : 3/31/2003 6/30/2003 9/30/2003 12/31/2003 3/31/2004 6/30/2004 9/30/2004 12/31/2004 3/31/2005 6/30/2005 9/30

  13. Slide 13: A 4A#+A %" - !#+&#$%$A +*$ ! *$#: #!! +,%)# *1%" E :

    ++% +,#)#+ %" + #$) 4A#+A %$ ' #.%*$ A %" $ #, %$ ! *! *&&$ %4#A *!#,%+A + #$) $ %!! A 4A#+A %" - !#+&#$%$A +*$ ! *$#: #!! +,%)# *1%" E : #C 4*#+ %*+# A 4A#+A %" - !#+&#$%$ A +*$ ! *$ #+ $#!&#, %" #"+*+,* #*$#+A + ! ! ' - #.%%/! %! $ #&#$%A " %$A 4A#+A #+ #)#+ 3 A 4A#+A &* )#+ A* #5 2#*++% +,#A * #$

  14. Slide 14: ! " # $ % &'! (#$ "%$ )*+,# #* ! " # $

    ! " # $ % &'! (#$ "%$ )*+,# #* ! " # $ % &'! (#$ "%$ )*+,# #$ ! 14

  15. Slide 15: #* ! " # $ % &'! (#$ "%$ )*+,# -. - * %'

    #* ! " # $ % &'! (#$ "%$ )*+,# -. - * %' $ #0 * 2 . + % *)*A % ($#! A#+ > #" 1#, 4# " ",#$ 15

  16. Slide 16: Key performance indicators and initiatives

    #*A +#0# (#$ "%$ )*+,# +A ,* %$ ! + $ *,/ Actual Target Actual FY'07 Initiatives FY'06 FY'07 3 Mths 6 Mths 9 Mths 7.5% 7.5% 6.6% Re turn on Asse ts (ROA) 3.3% 6.5% 5.7%* 6.5%* 6.2%* 50.0 - Ge aring 58.1% 54.2% 51.1% 49.1% 55.0% Unplanne d Outage Rate 4.7% 4.4% 1.7% 1.8% 2.0% (UOR) 11.2%** 10.5%** 10

  17. Slide 17: Cost savings and cash initiatives

    %)&*+ G A# + * 4#! 1,##A#A *$ # ! Initiatives Actual FY'07 Actual Target RM mn FY'06 FY'07 3 Mths 6 Mths 9 Mths Proce e ds from Landbank Sale s* 51.5 200.0 7.8 155.9 314.3 De bt re cove ry from De linque nt 166.7 170.0 75.0 106.5 138.0 Accounts Re cove ry from The ft Backbilling 38.5 30.0 9.1 18.6 3

  18. Slide 18: EBIT calculation and economic profit statement

    ,%+%) ,($ %" YTD FY’06 YTD FY’07 CALCULATION OF EBIT P&L Items RM mn RM mn Revenue (exclud. released of deferred income) 14,537.4 16,954.1 Operating costs (exclud. Depr. & Amortisation) (10,081.4) (10,950.2) Depreciation & amortisation (2,230.3) (2,303.4) Amortisation of coal mining rights (8.1) (8.

  19. Slide 19: # * ! %" &#$* + 1&#+!#! #$ (( %! " $%) %)) !!

    # * ! %" &#$* + 1&#+!#! #$ (( %! " $%) %)) !! %+ + %" - .+ + 3 &#$* + 1&#+!#! ; )+= 78 7 *+ #! ;E = (( 9: ? - ?: ?8?- - E # :9 - : 8 -? ;9-<E = # 2! A I . ; - = ; 8- = ?<-8E 3 ? - 89<- <-?E *" " : - : 8?8- -9E #&$#,* %+ : - : -9 - E #+#$* 1&#+!#!>($%4! %+! ? - -9 ;9 -?E = 2! A *$#! %! %" *#! *+A <-

  20. Slide 20: Operating cost breakdown

    +,$ #*!# %! (#$ + %A -?E +,$ #*!# + (( %! (#$ + %A ( ' ' 9 ' ? ' 8 ' ;!#+>/G = - - - - - ( ;!#+>/G = E ( - - 1.2 6.9 5.8 1.4 3.6 18.3 17.4 3.7 2.6 10.4 12.6 2.1 1.0 1.0 5.0 4.8 3.6 20.8 17.4 4.2 59.4% 59.4% 7.8 8.7 38.6 42.0 YTD FY'06 YTD FY'07 YTD FY'06 YTD FY'07 IPP Fuel R&M Staff Cost Depreciatio

  21. Slide 21: ' K 8?: 9-9 G ' K 8<:

    +A ! $ #+#$* %+ *$ # #A %5*$ A! & )* ! #) 1 ' 8 K 8?: 9-9 G ' K 8<: 99?-< G 8- E ! 9- 5 ? - 5 A$% ; - E= %* (( ; - E= ! *# : <<9-9 5 %* ?: 9-? 5 - 5 9-9 5 ?: 89- 5 A$% ; - E= %* ;8- E = ; -?E = ; - E= : ?8 -8 5 :89 -9 5 ; - E= ;?- E = ; <-?E = *! *! *! (( :8<?-? 5 *! (( :?< - 5 : - 5 ; ?-<E = <: 98-

  22. Slide 22: Fuel costs and generation mix

    +* ! ! %" # %! 2 #+#$ * %+ 1 RM mn YTD YTD YTD FY’06 FY’06 FY’07 YTD FY’07 Gas Distillate RM26.9mn Oil Distillate RM247.4mn TNB 987.9 1,029.6 Gas RM22.1mn (1.0%) RM1,256.0mn (9.0%) (0.8%) SESB 33.5 31.4 (48.1%) Gas RM1,209.4mn LPL 188.0 195.0 (44.1%) Total 1,209.4 1,256.0 Oil RM279.1mn Oil (10.7%) C

  23. Slide 23: E %" ' < %* #C $#)#+ *! .##+ #, $ #A ' '

    9 E %" ' < %* #C $#)#+ *! .##+ #, $ #A ' 9 ' ? ' 8 ' ' < 4#$ * # %* ($,#; = 9- 9 -< ? -< 9?- 99- ; >)# $, %++#= AA BB CC DD EE FF GG HH I I JJ 88 -- 9- ;#! )* #A= 99 -- -- - ;#! )* #A= -- %++# ;)+= <-8 -8 - << -- 8- 88 -- <- 99 -- -- -- 7799 77?? 7788 77 77<< #, $#A ++ * %+! )& %+ ! )* #A 23

  24. Slide 24: Debt profile and gearing

    +* ! ! %" #2 1&%! $ # #A , %+ " $%) -?2+ *! * ! ' 9 ! ' 8 ! * ' #$! #$! - E - E - E <- E ? - E ?8- E #+ #+ ?- E 9-<E *Total Debt RM27.1 bn *Total Debt RM23.5 bn Net Debt RM23.2 bn Net Debt RM17.8 bn Gearing (%) 58.1 Gearing (%) 49.1 Net Gearing (%) 49.6 Net Gearing (%) 37.1 Fixed:Floating 90.4% : 9.

  25. Slide 25: Cash flow

    #* *! "%5 (%! %+ In RM mn ' ' ' 9 ' ? ' 8 M ' *! "%5 $ %) &#$* %+! ?: - 9: 9- ?: -9 8: -? : 8 - : 8<- ;I= *&#1 ;9: - = ; : 9-?= ; : < -8= ; : -?= ; :8 - = ; : ?- = ;I= + #$#! #$ 4,+ ; : 8- = ; : ? -<= ; : ? <- = ; : 88?- = ; : 8?<-?= ; :9 - = G ; 8- = ;9< - = ; < - = ?? - : 8- : - ;L= #5 #2 <: 8 9-8

  26. Slide 26: ? - E %" ( J &#+ %+ #5 && *+A ! #)

    ? - E %" ( J &#+ %+ #5 && *+A ! #) )&$%4#)#+ )+ : ? -8 - : - : : 9 -< #5 ! && *+A ! ! #) : ? )&$%4#)#+ *,,% + #A : " %$ 8 - )+ ; -?E = 9 - 3 -9 )+ ; <-8E = : ? $ #!&#, 4# %" % * ,*&#1 : ? - ? #+#$* %+ $ *+!) !! %+ ! $2 %+ . #$! % * *&#1 26

  27. Slide 27: ! " # $ % &'! (#$ "%$ )*+,# #* ! " # $

    ! " # $ % &'! (#$ "%$ )*+,# #* ! " # $ % &'! (#$ "%$ )*+,# #$ ! 27

  28. Slide 28: Execution of land bank sale and purchase agreements

    #* H* %+ %"N* # $ %) *+A .*+/ EXECUTION OF SITES AREA BOOK MARKET SALE GAIN FROM CASH RECEIVED S&P (ACRES) VALUE (RM VALUE PRICE DISPOSAL Amount mn) (RM mn) (RM mn) (RM mn) till 31 MAY ’07 Date (RM mn) Sept ‘06 Jalan 0.9 3.5 8.0 8.8 5.3 RM0.88 mn – FY2006 Wickham Dec’06 Ampang 3.76 16.6 34.5 49.0 32

  29. Slide 29: Execution of land bank sale and purchase agreements

    #$ *+A ( % ! A#+ "#A %$ *# *$ # #A 1#, %+ %" 3( $ ##)#+ ! 2 ! O EXECUTION OF SITES AREA BOOK MARKET SALE GAIN FROM CASH RECEIVED S&P ( ACRES ) VALUE (RM VALUE PRICE DISPOSAL mn) (RM mn) (RM mn) (RM mn) Amount Date till 31st MAY’07 (RM mn) Jul/Aug ’07 Port Klang 2.46 0.5 1.9 2.0 1.5 0.04 RM0.04 mn –

  30. Slide 30: Execution of land bank sale and purchase agreements

    #$ *+A ( % ! A#+ "#A %$ *#F %+ 'A EXECUTION OF SITES AREA BOOK VALUE MARKET VALUE SALE PRICE GAIN FROM CASH RECEIVED S&P ( ACRES ) (RM mn) (RM mn) (RM mn) DISPOSAL Amount Date (RM mn) till 31 MAY ’07 (RM mn) Sept ‘07 Taiping, Perak 0.39 lease - 0.79 0.79 0.02 RM0.02 mn – 9 Feb 07 Lorong Gurney, KL 0

  31. Slide 31: %D A#A +A#$ * . AA + ($

    *2* '! ! (( ($ %D#, 5*$ A#A +A#$*. AA + ($ %,#!! %*I"$ #A (( ($ %D#, + +# # %4#$+)#+ *++% +,#A #*5*$ A"%$ #($ %&%!#A G %*I"$ #A (( ($ %D#, * * *A * : *2* ; #($%D #, = % # %+!%$ ) 5 , ,%+! ! ! %" #" % %5 + )#)2#$ !B %+!%$ ) )#)2#$ ! E + C + #$ #! + # %+!%$ ) . #&*$3 *+ #+*+,# A+- . A- ? E ; = F *5 %

  32. Slide 32: E + &$ : . *++% +,#A * +*) , ,$ #! A+- .

    4#! )#+ %" : 2! A *$ %" . %* $ $#+ * ! E + &$ : . *++% +,#A * +*) , ,$ #! A+- . A- ;P .P= *A #+ #$ #A + %* *$ # *# $ ##)#+ ;P P= 5 ( (*)*&#$ !*A* !*+ *$ * ;P( P= + $ #* %+ % #A 4#! )#+ %" .7! #+ $# E ! *$ # %A + + ( *!* /* *!* *)*;P P=- E #,%)& # %+ %" ! A 4#! )#+ #1#$ ,!# ! ! 2D #, % #" " )#+ %"* ,

  33. Slide 33: " + %" %$ # + *$ # %A + ) $ $#+ *

    " + %" %$ # + *$ # %A + ) $ $#+ * ! )# +# E + ! $ %" +*+,#*&&$ %4* % " " %$# + ! *$ # %A + ) &$ E > ( *&&$ %4* +I %+ E # #+,# %)& # %+ A ! E )#+A #)%$*+A ) *+A $ ,#! %" !!%,* %+ %" . +I %+ E $*" + %",$ , *$ % ! *$ # %A#$ ! +I %+ E #+A#$ !' %+!#+ A #& #)2#$ E +A %" , %2#$ 33

  34. Slide 34: Thank You

    Thank You Powering The Nation’s Progress www.tnb.com.my 34

Tenaga Nasional Berhad — 9M FY2007 Earnings Presentation on 6ix