Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Non-Deal Roadshow (May 2013)
36 slides from Tenaga Nasional Bhd's roadshow presentation, May 30, 2013
Slide 1: Nomura Non-Deal Roadshow
NOMURA NON-DEAL ROADSHOW Tokyo, Japan (30th – 31st May 2013) Prepared by: Investor Relations & Management Reporting Department [email protected] GROUP FINANCE DIVISION
Slide 2: Part One
NOMURA NON-DEAL ROADSHOW PART ONE 2
Slide 3: Agenda
AGENDA 6 5 Outlook – 4 Key 3 Dividend Policy Takeaways 2 Tariff Business 1 Strategy & Introduction Direction to MESI Introduction to Tenaga 3
Slide 4: Introduction to Tenaga
1 INTRODUCTION TO TENAGA 4
Slide 5: Introduction to Tenaga: Three Major Utilities in Malaysia
INTRODUCTION TO TENAGA Three Major Utilities in Malaysia Sabah Electricity Sdn Bhd Tenaga Nasional Bhd (A 83% TNB Subsidiary) (TNB) 1,141MW* 21,749MW* BRUNEI SABAH PENINSULAR 695MW MALAYSIA 1,237MW SARAWAK 11,506MW Sarawak Electricity Board (SEB) SINGAPORE * Includes IPPs 3.8% INSTALLED CAPACITY 3.8
Slide 6: Vertically Integrated Utility
INTRODUCTION TO TENAGA Vertically Integrated Utility 52.7% 100% 100% Core Business – Peninsula Generation Transmission Distribution Source: The Sun; 7th March 2013 Source: The New Straits Times; 7th March 2013 6
Slide 7: Customers, Sales Value and Unit Sales by Sector
INTRODUCTION TO TENAGA No of Customer vs Sales Value vs Unit Sales 100% 0.8% 1.3% 1.8% 17.8% 21.0% Sectoral Sales Analysis (Gwh) 80% 60% 81.8% 41.6% 34.3% *FY13 42.9 34.3 21.0 1.8 FY12 43.6 34.1 20.6 1.7 40% 42.9% FY11 44.3 33.8 20.3 1.6 20% 39.3% 17.1% 44.8 33.4 20.3 1.5 FY10 0% 0.4% No of Sales (R
Slide 8: Industry Regulatory Framework
INTRODUCTION TO TENAGA Industry Regulatory Framework Empowered by Electricity PRIME MINISTER Supply Act /CABINET 1990 Holds ‘Golden’ Special Purpose Agency Share created to detail out the key reform initiatives of the Malaysian Electricity Supply 33.78% Industry (MESI), aligned with MyPOWER Ministry
Slide 9: Introduction to Malaysian Electricity Supply Industry (MESI)
INTRODUCTION TO 2 MALAYSIAN ELECTRICITY SUPPLY INDUSTRY (MESI) 9
Slide 10: Transformation Initiatives by Government
INTRODUCTION TO MESI Transformation Initiatives by Government Legal & 1st Gen IPP / Subsidy FCPT Nuclear Energy National RE LNG FIT & RE Fund Regulatory Restricted Rationalisation Capacity Policy & Action Framework Bidding Programme Mechanism Importation Building Plan Enhancement 10 *Source: MyPower
Slide 11: Transformation Plan: Timeline
INTRODUCTION TO MESI Transformation Plan : Timeline 1 Energy The New Energy Policy Addresses Pricing Economic Efficiency, Security of 2 Supply and Social & Energy 5 Change Environmental Objectives Supply New Management Energy Policy 3 4 Energy Governance Efficiency 2016 - 2010 2011 2012 2013 2014 20
Slide 12: Energy Pricing – Competitive Bidding
INTRODUCTION TO MESI Energy Pricing – Competitive Bidding COMPLETED ON-GOING TRACK 1 1071 MW CCGT PRAI TRACK 3A 1000 MW COAL-FIRED COD January 2016 COD October 2017 LEVELISED 34.7 sen/kWh CLOSING RFP 20 May 2013 TARIFF Status 2 shortlisted: STATUS TNB has signed agreements for: i. TNB and Marubeni C
Slide 13: Energy Supply - Four Dimensions of Energy Security
INTRODUCTION TO MESI Energy Supply - Four Dimensions of Energy Security Fuel Mix and Fuel Supply Security Must Be Managed to Ensure A Reliable Electricity Supply *Source: MyPower / Frontier Economics 13
Slide 14: Incentive Based Regulation (IBR)
INTRODUCTION TO MESI Energy Efficiency & Governance - Incentive Based Regulation (IBR) Economic regulation methodology proposed by EC to promote efficiency and transparency through incentive and penalty mechanism 3 broad efficiency categories offered by IBR: Tariff Efficiency Setting Operational Eff
Slide 15: IBR Implementation Timeline by EC
INTRODUCTION TO MESI Energy Efficiency & Governance - Incentive Based Regulation (IBR) IBR Implementation Timeline by EC 2012 2013 2014 2015 2016 2017 Feb Nov Aug Aug Aug Sept Aug Aug Interim Period First Regulatory Period (FY2014) ( 3-year period from FY2015 to FY2017) Government EC issued final Ap
Slide 16: Business Strategy & Direction
3 BUSINESS STRATEGY & DIRECTION 16
Slide 17: 20-Year Strategic Plan
BUSINESS STRATEGY & DIRECTION 20-Year Strategic Plan THE PLAN LAYS DOWN THE PATH TOWARDS REALISING OUR VISION OF GLOBAL LEADERSHIP GLOBAL It builds upon the progress of T7 LEADERSHIP 2025 • Excel in: - All business areas OVERSEAS - Reputation as a INVESTMENT 2020 strong business partner - Ability to
Slide 18: International Footprint
BUSINESS STRATEGY & DIRECTION International Footprint Leverage on Tenaga’s capabilities (in Middle East and North Africa “MENA” area) in pursuing International Business (O&M), Project Management in generation Business REMACO O&M for Shuaiba North Co-Gen (USD320m) 780MW Power; 204,000 m3 / TNEC JV Al
Slide 19: Headline KPIs: 2nd Phase TNB 20-Year Strategic Plan
BUSINESS STRATEGY & DIRECTION Headline KPIs : 2nd Phase TNB 20-Year Strategic Plan Most Targets that were Set in 2005 were Met Ahead of Target Date 1ST PHASE 2ND PHASE ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL INITIATIVES TARGET ACTUAL ACTUAL ACTUAL ACTUAL TARGET FY’07 FY’09 F’ 10 FY‘11 FY‘12 FY’10 FY’05 F
Slide 20: Tariff
4 TARIFF 20
Slide 21: Tariff History: Timeline
TARIFF History: Timeline Government reduced gas price Government increased gas price to to RM10.70/mmbtu. In support RM13.70/mmbtu. Another submission of Government efforts to In line with Government effort to to the Government introduce economic stimulus gradually remove subsidies package to mitiga
Slide 22: Electricity Tariff Review
TARIFF Electricity Tariff Review Approval date May 2006 Jun 2008 Feb 2009 Jun 2009 May 2011 Effective date Jun 2006 Jul 2008 Mar 2009 Jul 2009 Jun 2011 Quantum 12% 23 – 24% (3.7%) Neutral 7.1% Gas (RM/mmbtu) 6.40 14.31 10.70 10.70 13.70 Coal (USD/MT) 45.00 75.00 85.00* 85.00* 85.00* Average Tariff (
Slide 23: Benchmarking: Comparison with Regional Countries
TARIFF Benchmarking: Comparison with Regional Countries DOMESTIC COMMERCIAL INDUSTRIAL 23
Slide 24: Dividend
5 DIVIDEND 24
Slide 25: Dividend Policy and Yield
DIVIDEND Policy and Yield Tenaga is committed to pay out dividend based on its Dividend Policy whereby: Dividend is paid out based on 40% to 60% of its Company’s annual free cash flow; Cash flow from Operations less Normalized Capex and Interest Servicing The Board of Directors has approved a Single
Slide 26: Outlook – Key Takeaways
6 OUTLOOK – KEY TAKEAWAYS 26
Slide 27: Outlook FY2013 - Demand
OUTLOOK – KEY TAKEAWAYS Outlook FY2013 - Demand Group’s Performance for the FY Ending 31st August 2013 is Expected to Remain Challenging 1 DEMAND 2 GAS VOLUME 3 COAL PRICE Remains steady with the Expected to improve with Coal price is expected to implementation of ETP commencement of RGT in remain s
Slide 28: Part Two
NOMURA NON-DEAL ROADSHOW PART TWO 28
Slide 29: 1HFY2013 Results Highlights
NOMURA NON-DEAL ROADSHOW 1HFY2013 RESULTS HIGHLIGHTS 29
Slide 30: Results Snapshots
RESULTS HIGHLIGHTS Results Snapshots 3-Month Ended 28th February 2013 (2nd Quarter FY2013) • Net Profit of RM1.27 billion (1QFY2013: RM1.42 billion). • 2.1% increase in Operating Expenses. • Average Coal Price of USD84.7/mt (1QFY2013: USD84.4/mt). • EBITDA margin at 27.1% (1QFY2013: 31.0%). • Streng
Slide 31: Adjusted Net Profit (Restated Fuel Cost Compensation)
RESULTS HIGHLIGHTS Adjusted Net Profit (Restated Fuel Cost Compensation) 28.7% Improvement in Adjusted Net Profit Before Forex Translation Mainly Attributed to Electricity Demand Growth and Lower Coal Price 1HFY '12 ** V arianc e RM mn 1HFY '13 (Restated) Net Profit A ttributable to the 2,677.1 2,68
Slide 32: Year-on-Year Analysis
RESULTS HIGHLIGHTS Year-on-Year Analysis (Restated Fuel Cost Compensation for FY2012) Improved EBITDA Margin Resulted from Lower Generation Costs & Steady Demand Growth from Commercial Sector 1HFY2012 RM mn 1HFY2013 1QFY2013 2QFY2013 (Restated) Total Units Sold (Gwh) 49,923.5 52,129.1 26,070.4 26,05
Slide 33: System Weekly Peak Demand (Peninsula)
RESULTS HIGHLIGHTS System Weekly Peak Demand (Peninsula) for FY2009/10 to FY2013/14 Weekly Peak Demand & Trough (MW) 33
Slide 34: 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 35: Contact Details
CONTACT DETAILS For further enquiries, kindly contact us at: INVESTOR RELATIONS & MANAGEMENT REPORTING DEPARTMENT Tenaga Nasional Berhad 4th Floor, TNB Headquarters No.129, Jalan Bangsar, 59200 Kuala Lumpur, MALAYSIA Tel : +603 2296 5566 Fax : +603 2284 0095 Email : [email protected] Website : w
Slide 36: Thank You
THANK YOU www.tnb.com.my