Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Investor Presentation (November 2021)
28 slides from Tenaga Nasional Bhd's investor presentation, November 2021
Slide 1: Tenaga Nasional Berhad Investor Presentation
TENAGA NASIONAL BERHAD INVESTOR PRESENTATION Prepared by IR Holding unit, CoE Investor Relations department, Group Finance
Slide 2: A Leading Utilities Company in Malaysia
A LEADING UTILITIES COMPANY IN MALAYSIA Generation Business (Group) Total Installed Capacity: 23,896MW* We ranked 1st in Malaysia for Utilities Coal company and 5th in KLCI with a market 5% 14% Gas 36% RE cap of RM52.9bn* Oil 45% Note: 1. RE inclusive large hydro and small RE 2. Data is based on gro
Slide 3: Our Financial Performance Remains Resilient
OUR FINANCIAL PERFORMANCE REMAINS RESILIENT REVENUE (RM mil) EBITDA (RM mil) PROFIT AFTER TAX (RM mil) +9.6% 36,894.4 33,651.7 +4.6% +19.0% 14,392.7 2,872.2 13,765.2 2,414.6 9MFY'20 9MFY'21 9MFY'20 9MFY'21 9MFY'20 9MFY'21 OUR DOMESTIC NETWORKS ACHIEVEMENT WITH LOW SYSTEM MINUTES AND SAIDI ARE AMONG
Slide 4: Resilient Financial Performance and Robust Capital Management
A RESILIENT FINANCIAL PERFORMANCE AND ROBUST CAPITAL MANAGEMENT HAS AFFORDED US TO CONTINUE REWARDING OUR SHAREHOLDERS WITH ATTRACTIVE DIVIDENDS DIVIDEND POLICY 56% 59% We will continue to honour our dividend policy of 30% to 60% dividend payout 56% 7.7% 7.5% 53% ratio, based on the reported Consoli
Slide 5: Sustainability Pathway Will Open Up New Growth Opportunities
WE BELIEVE OUR SUSTAINABILITY PATHWAY WILL OPEN UP NEW GROWTH OPPORTUNITIES WHILST REMAINING TRUE TO OUR CORE ROLE Aspire to achieve Net Zero emissions by 2050 Our 8,300 MW RE Target by 2025 – Build scale in renewable generation Our Commitment to 2035 - Emission intensity reduction by 35% through si
Slide 6: Reimagining TNB Journey
IN 2016, WE EMBARKED ON OUR REIMAGINING TNB JOURNEY TO PREPARE FOR DECARBONIZATION, DECENTRALIZATION, DIGITALIZATION AND DEREGULATION TO BE A LEADING PROVIDER OF SUSTAINABLE ENERGY SOLUTIONS IN MALAYSIA AND INTERNATIONALLY Future Generation Sources Grid of the Future Winning the Customer Future Proo
Slide 7: Delivering Sustainable Returns via IBR Mechanism Since 2014
DELIVERING SUSTAINABLE RETURNS VIA IBR MECHANISM SINCE 2014 Regulated entities under Incentive Based Regulation (IBR) Ring- fenced entities ❑ Regulated business made up more than 70% of the overall Group earnings. Single Buyer Single Buyer Grid System Transmission Distribution Customer ❑ Regulated e
Slide 8: Increased Capex in Grid Digitalization Key to Energy Transition
INCREASED CAPEX INVESTMENTS IN OUR GRID DIGITALIZATION IS KEY TO MALAYSIA’S ENERGY TRANSITION AMBITION, FURTHER FUTURE-PROOFING OUR REGULATED BUSINESS Towards becoming a Smart Utility by 2025 Our target : Achieve Smart Grid Index (SGI) of 85% by 2025 Regulated businesses spends on average ~16% of it
Slide 9: Global RE Expansion
GLOBAL RE EXPANSION; A VITAL MOVE TOWARDS ACHIEVING OUR SUSTAINABILITY COMMITMENTS GLOBAL FOOTPRINT 30% stake in GAMA 100% stake in VANTAGE RE • Acquisition: 2016 • Formation: 2021 Acquisition of 49% stake in 41.5MW Blyth • Capacity: 853MW in gas, 131.5 in • Capacity: 26.6MW in wind, 365MW New Energ
Slide 10: Largest Generation Company in Malaysia
LARGEST GENERATION COMPANY IN MALAYSIA; CONTINUOUS FOCUS ON DELIVERING EXCELLENCE SERVICE WHILE PURSUING NEW CLEAN ENERGY GROWTH OPPORTUNITIES Contracted Capacity in GenCo Financial 3 Business Priorities Under Peninsular Malaysia Performance GenCo (9MFY’21) REVENUE Performance RM14,925.0 mil To deli
Slide 11: Creating Value by Capturing New Opportunities in Technology Advancement
CREATING VALUE BY CAPTURING NEW OPPORTUNITIES IN TECHNOLOGY ADVANCEMENT Objective Current Progress / Development • To lead Malaysia’s transition into low-carbon i. Signed Memorandum of Understanding (MOU) with mobility through collaborative efforts with various Socar in Aug’21 to leverage on shared
Slide 12: Sustainability Pathway Supports the Nation's Climate Commitments
TNB’S SUSTAINABILITY PATHWAY SUPPORTS THE NATION’S CLIMATE COMMITMENTS, CONSIDER EXISTING RE TARGETS AND IN TANDEM WITH THE PENINSULAR MALAYSIA GENERATION DEVELOPMENT PLAN Malaysia Climate Commitments TNB Sustainability Pathway 2050 Targets To reduce Greenhouse Gas (GHG) emissions intensity of gross
Slide 13: Decarbonization Road Ahead Paved by Repowering to Cleaner Sources
OUR DECARBONIZATION ROAD AHEAD IS PAVED BY REPOWERING TO CLEANER SOURCES Our Generation Portfolio Journey 1 RE Target of 8300MW By 2025: ❖ Build scale in renewable generation TNB Capacity mix (2021) TNB Capacity mix (2035) ❖ Improve thermal plant efficiency ❑ Acceleration of RE investment towards 20
Slide 14: Planning Capacity Renewal and Expansion While Phasing Down Coal
WE ARE PLANNING OUR CAPACITY RENEWAL AND EXPANSION WHILE PREPARING TO PHASE DOWN OUR COAL ASSETS TNB’s Projected Coal Capacity (2021-2035) MW ▪ The Peninsular Power system will be building 6 GW new capacity 35000 in addition to repowering of expiring capacity up to 20351. This presents opportunities
Slide 15: Leveraging Partnerships and Collaboration on Technology
THE PACE OF TECHNOLOGY DEVELOPMENT HAS INCREASED SIGNIFICANTLY, THUS WE RECOGNIZE THAT LEVERAGING ON PARTNERSHIPS AND COLLABORATION WILL BE CRITICAL FOR THE LONG RUN TNB RESEARCH (TNBR) DESCRIPTION PROGRAMS Our Partnership • TNBR is committed in providing comprehensive technical and economic assessm
Slide 16: Committed to Contribute 1% of PAT to Environmental and Community Programmes
WE ARE COMMITTED TO CONTRIBUTE 1% OF PROFIT-AFTER-TAX TOWARDS ENVIRONMENTAL AND COMMUNITY-RELATED PROGRAMMES FY2020 Contributions ECONOMIC & SOCIAL TRANSFORMATION RM173.9 million • Covid-19 Response Aid (MOH & State Government) • Baiti Jannati & Mesra Rakyat 2020 Brand of The Year Award (4th time) •
Slide 17: Recognised Globally for Responsible Operations
RECOGNISED GLOBALLY FOR OUR CONTINUOUS COMMITTMENT TO OPERATE AS A SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ORGANISATION Our sustainability disclosure are based on Bursa Malaysia’s Main Listing Requirements and global disclosure frameworks: Bursa Malaysia Sustainability Reporting Guide (2nd Edition)
Slide 18: Forward Guidance
FORWARD GUIDANCE Electricity Demand 2021 RP3 (2022 – 2024) CAPEX 2021 Total : RM9.5bil Forecasted at 2.9%, in Final stage discussion Regulated Recurring : line with GDP projection with Energy Commission RM7.3bil of 3.0% to 4.0% Others : RM2.2bil Non-Regulated Business Sustainability Pathway Dividend
Slide 19: Appendixes
APPENDIXES Geass NASIONAL Petter. Brighter
Slide 20: Incentive Based Regulation (IBR)
INCENTIVE BASED REGULATION (IBR) Base Tariff Imbalance Cost Pass-Through (ICPT) ICPT Surcharge Base tariff is determined by the regulator for every 3 years*, taking into account: ICPT is 6-monthly pass-through i. OPEX, depreciation of regulated assets & tax expenses of regulated entities - mechanism
Slide 21: Regulatory Period
REGULATORY PERIOD INTERIM YEAR RP2 (2018 – 2020) 2021 RP3 (2022 – 2024) 2018 2019 2020 2021 2022 2023 2024 RP2 Extension / Interim Year ICPT surcharge and rebate position ➢ The Government has approved a one-year extension of the Second ICPT Surcharge / (Rebate) Implementation Period RP2 of the IBR f
Slide 22: Renewable Energy Investments
RENEWABLE ENERGY INVESTMENTS TNB’s RE Capacity: 3,475MW (as of Nov’21) TNB’s RE Strategy International WIND International: 1) Renewable Energy Driver (UK / Europe) 186 MW ▪ UK (TNB Wind Ventures): 68 MW 2) Growing TNB’s utility business in South East Asia (SEA) ▪ Turkey (GAMA): 118 MW 3) Technology
Slide 23: Group Installed Capacity
GROUP INSTALLED CAPACITY Capacity as at Nov’21 (MW) Fuel Type Domestic International Total Gas 7,024.4 1,476.0 8,500.4 Coal 9,080.0 1,650.0 10,730.0 Oil - 1,190.0 1,190.0 14% Hydro 2,536.1 131.5 2,667.6 5% Coal Wind - 185.6 185.6 Solar 80.0 391.0 471.0 Gas 36% RE Total 18,720.5 5,024.1 23,744.6 Oil
Slide 24: Near Term Support for Energy Transition
IN THE NEAR TERM, WE CONTINUE TO SUPPORT AND BUILD TOWARDS ENERGY TRANSITION Transmission system enhancements Distribution system enhancements Smart Grid Index (SGI) 2025 target : 85% (2020: 62.5%) Improving network intelligence to enable energy transition Deliver a resilient, reliable system with b
Slide 25: Vertically Integrated Utility Serving More Than 9.0mil Customers
VERTICALLY INTEGRATED UTILITY COMPANY SERVING MORE THAN 9.0MIL CUSTOMERS THROUGHOUT PENINSULA MALAYSIA Total Total Total Total Customer Employees Assets Unit Sold TNB: 9.6mn SESB: 0.7mn 35,071 RM174.9bn 82,904.2 GWH TNB Sectoral Sales Analysis* 1.0% 0.3% 1.7% 2.1% 16.7% Industrial 25.4% 37.1% Commer
Slide 26: Higher Y-o-Y Electricity Demand
HIGHER Y-O-Y ELECTRICITY DEMAND IMPROVED DUE TO RESUMPTION OF BUSINESS OPERATION Industrial Commercial 9MFY’21 main contributors for the drop 3.0% in commercial sector: (6.4%) • Retails 0.2% 7.5% 15.4% (11.1%) • Accommodation (10.7%) (12.6%) 14.2% (16.4%) • Educational Unit Sales (GWh) Growth 10,084
Slide 27: TNB Market Capitalisation of RM52.9bil
TNB MARKET CAPITALISATION OF RM52.9BIL AS AT 30 NOVEMBER 2021 Top 10 KLCI Stocks by Market Capitalisation Khazanah Nasional Berhad RM bil 18.4 16.6 94.7 Maybank (0.4%) Permodalan Nasional Berhad 95.1 (PNB) 18.5 17.7 76.5 Public Bank (4.3%) Employees Provident Fund 80.0 Board (EPF) 7.4 Petronas Chemi
Slide 28: Thank You
THANK YOU For further enquiries, kindly contact us at: Investor Relations Office: Investor Relations Team: CoE Investor Relations Ms. Mehazatul Amali Meor Hassan Group Finance Division +603 2108 2126 Tenaga Nasional Berhad [email protected] 4th Floor, TNB Headquarters No.129, Jalan Bangsar, Ms. S
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