Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Q1 FY2021 Earnings Presentation
36 slides from Tenaga Nasional Bhd's earnings presentation, May 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION COE – INVESTOR RELATIONS
Slide 2: Agenda
01 INTRODUCTION TO TENAGA 02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND 05 FY2021 OUTLOOK 06 APPENDIX 2
Slide 3: Regulatory & Shareholding Structure
INTRODUCTION TO TENAGA Regulatory & Shareholding Structure REGULATORY & SHAREHOLDING STRUCTURE LEADERSHIP POSITION PRIME MINISTER / TNB Market Cap CABINET As at 24th May 2021: RM56.7bn • Ranked 1st for Utilities Company • Ranked 4th in KLCI Shareholders Policy Maker Sabah Electricity Holds Ministry
Slide 4: Regulated & Non-Regulated Business
INTRODUCTION TO TENAGA Regulated & Non-Regulated Business TNB Generation Installed Capacity (%) Major Subsidiaries International 2019 Mar 2021 • Tenaga Wind Ventures TNB Power • 55% equity in Vortex Solar 17.2 16.3 Generation Sdn. United Kingdom Bhd 51.1 47.9 31.7 35.8 30% equity in GAMA Enerji A.S.
Slide 5: Vertically integrated utility serving more than 9mil customers
INTRODUCTION TO TENAGA Vertically integrated utility company serving more than 9mil customers throughout Peninsula Malaysia TNB Sectoral Sales Analysis* 1.0% 2.7% 2.1% Total 29,316.6 GWH Unit Sold 23.1% 26.8% Total RM183.0bn Assets 81.9% 35.9% 30.6% Total TNB: 9.5mn Customers SESB: 0.6 mn 38.2% 40.5
Slide 6: 1QFY'21 performance remains resilient, although some challenges persist
INTRODUCTION TO TENAGA 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 1,120.5 973.5 973.5 891.6 4,21
Slide 7: Agenda
01 INTRODUCTION TO TENAGA 02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND 05 FY2021 OUTLOOK 06 APPENDIX 7
Slide 8: Incentive Based Regulation (IBR)
INCENTIVE BASED REGULATION (IBR) IBR mechanism ensures a transparent tariff setting with incentives to improve efficiency of the Malaysia electricity industry Entities governed under PPA/SLA/REPPA • TNB Power Generation Sdn Bhd Incentive Based Regulation (IBR) • Independent Power Producers (IPP) Rev
Slide 9: Incentive Based Regulation (IBR) – Regulatory Period and Tariff
INCENTIVE BASED REGULATION (IBR) Regulatory Period 2 (RP2) Extension Year (2021) Average Tariff by Entities (sen/kWh) Average Tariff by Sectors (sen/kwh) INTERIM RP2 (2018 – 2020) YEAR 2021 RP3 (2022 – 2024) Commercial 46.93 47.92 Base Tariff 39.45 38.53 2018 2019 2020 2021 2022 2023 2024 36.85 Indu
Slide 10: Agenda
01 INTRODUCTION TO TENAGA 02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND 05 FY2021 OUTLOOK 06 APPENDIX 10
Slide 11: Electricity industry continues to evolve
SUSTAINABILITY Electricity industry continues to evolve, creating new opportunities and pushing the boundaries for innovation Inevitable Changes in Industry Landscape Emergence of Disruptive Changing Customers’ Global Energy Transition Technologies Expectations Climate change drives greater Disr
Slide 12: Strategy to drive the nation's Energy Transition
SUSTAINABILITY 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 INTERNATIONALLY Future Generation Sources Grid of the Future Winning the Customer Future Pr
Slide 13: Sustainable energy sets the tone for ambitious RE targets
SUSTAINABILITY 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 50MWa.c. LSS Plant at Bukit Selambau, Kedah under LSS4 program. • The development of t
Slide 14: Regulated CAPEX key to enabling Energy Transition
SUSTAINABILITY 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 to ET Annual Regulated CAPEX to support • Smart meter program enables customer to ha
Slide 15: Empowering the Customer
SUSTAINABILITY TNB is empowering customer participation in the Energy Transition via various programmes and offerings Empowering The Customer Encouraging voluntary RE Promoting energy efficiency programs Rooftop PV: Total 85 MW (secured capacity) as EE solutions such as smart home energy at Mar’
Slide 16: Community & Social
SUSTAINABILITY We strive to make lives better and brighter, investing RM173.9 mil in 2020 towards providing opportunities to education, sustaining the environment and enhancing livelihoods Community & Education Environment Social We believe that education can We believe that capability, social, We b
Slide 17: Corporate governance standards
SUSTAINABILITY TNB upholds the highest standards of corporate governance embedded in a culture that values ethical behaviour, integrity and sustainability Main Market Listing Requirements of Bursa Malaysia Securities Berhad TNB Corporate Malaysian Code on Corporate Governance 2017 Governance Fra
Slide 18: Agenda
01 INTRODUCTION TO TENAGA 02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND 05 FY2021 OUTLOOK 06 APPENDIX 18
Slide 19: Dividend
DIVIDEND Distribution of dividend is based on 30% to 60% dividend payout ratio, based on the reported Consolidated Net Profit Attributable to Shareholders After Minority Interest, excluding Extraordinary, Non-Recurring items Current dividend policy effective FY2017 25% 27% 25% 50% 56% 56% 59% 140.0
Slide 20: Agenda
01 INTRODUCTION TO TENAGA 02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND 05 FY2021 OUTLOOK 06 APPENDIX 20
Slide 21: FY2021 Outlook
FY2021 OUTLOOK • Under RP2 extension year, our approved demand forecast is 113,909 GWh or 2.9% growth compared to contraction of 4.9% in 2020. • We expect the lockdown for this year to be less severe than in FY2020 as most businesses are allowed to operate during Electricity MCO/CMCO. Demand • Never
Slide 22: FY2021 Outlook
FY2021 OUTLOOK 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, fail to meet the growing and changing needs of cust
Slide 23: Agenda
01 INTRODUCTION TO TENAGA 02 REGULATORY AGENDA 03 BUSINESS STRATEGY & DIRECTION 04 DIVIDEND 05 FY2021 OUTLOOK 06 APPENDIX 23
Slide 24: TNB Shareholding Structure
APPENDIX TNB Shareholding Structure Top 10 KLCI Stocks by Market Capitalisation RM bil Khazanah Nasional Berhad 94.2 18.6 17.8 Maybank 95.1 (1.0%) Permodalan Nasional Berhad (PNB) Public Bank 81.5 +1.9% 18.5 17.7 80.0 Employees Provident Fund Board (EPF) Petronas Chemicals 64.0 +7.7% 7.3 59.4 7.3 Ku
Slide 25: Lower electricity demand from sluggish commercial sector
APPENDIX 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 Commercial: • Retails • Educational
Slide 26: IBR – ICPT Mechanisms Ensure TNB Remain Neutral
APPENDIX Incentive Based Regulation (IBR) – Imbalance Cost Pass-Through (ICPT) Mechanisms Ensures TNB Remain Neutral Base Tariff under IBR framework comprises of: a) Opex, Depreciation of Regulated Assets & Tax Expenses of Business Entities - transmission, grid system operation, Single Buyer operati
Slide 27: IBR – New Features in Electricity Tariff Review for RP2
APPENDIX Incentive Based Regulation (IBR) – New Features in Electricity Tariff Review for RP2 (2018-2020) * Source: Energy Commission (EC) 27
Slide 28: IBR – IBR Entities
APPENDIX Incentive Based Regulation (IBR) – IBR Entities 1 1 In RP1, these 2 entity are grouped as Price –Cap entity Source: Energy Commission (EC) 28
Slide 29: IBR – ICPT Comprises Two Components
APPENDIX Incentive Based Regulation (IBR) – Imbalance Cost Pass-Through (ICPT) Comprises Two Components Imbalance Cost Pass-through (ICPT) Fuel Cost Pass Through (FCPT) Generation Specific Cost Adjustment (GSCPT) Changes in Gas/LNG and Coal Costs Changes in: PPAs Power Purchase Agreements • Other fu
Slide 30: Sustainability – TNB's RE Strategy and Capacity
APPENDIX Sustainability – Our journey towards transitioning into a cleaner and sustainable energy provider TNB’s RE Capacity TNB’s RE Strategy WIND International International: 144 MW 1) Renewable Energy Driver (UK / Europe) UK (TNB Wind Ventures): 26 MW Turkey (GAMA): 118 MW 2) Growing TNB’s ut
Slide 31: Sustainability (Governance) – Composition of BOD
APPENDIX Sustainability (Governance) – Composition of BOD CHAIRMAN EXECUTIVE DIRECTOR / CEO DATO’ SERI DIRAJA MAHDZIR KHALID DATUK IR. BAHARIN BIN DIN Independent Non-Executive Directors (Total = 7) Non-Independent Non-Executive Directors (Total =2) NORAINI BINTI CHE DAN ONG AI LIN GOPALA KRISHNAN A
Slide 32: Gearing
APPENDIX 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 33
Slide 33: Financial Highlights
APPENDIX Financial Highlights REVENUE (RM bil) EBITDA (RM bil) 47.4 50.4 50.9 44.0 11.5 15.5 13.4 18.4 18.0 5.0 FY'17 FY'18 FY'19 FY'20 1QFY'21 FY'17 FY'18 FY'19 FY'20 1QFY'21 PAT (RM bil) 6.91 3.75 4.45 3.62 0.97 FY'17 FY'18 FY'19 FY'20 1QFFY'21 Note: FY2019 is after MFRS16 implementation 33
Slide 34: Technical Highlights
APPENDIX Technical Highlights EAF (%) Transmission System Minute (mins) 04 05 0.2 0.4 0.3 0.1 0.03 88.5 89.9 83.4 87.4 83.7 FY'17 FY'18 FY'19 FY'20 1QFY'21 FY'17 FY'18 FY'19 FY'20 1QFY'21 Distribution SAIDI (mins) 50.2 48.2 48.1 45.0 11.97 FY'17 FY'18 FY'19 FY'20 1QFY'21 34
Slide 35: 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 36: Thank You
THANK YOU For further enquiries, kindly contact us at: Investor Relations Office: Investor Relations Team: Ms. Mehazatul Amali Meor Hassan CoE Investor Relations +603 2108 2126 Group Finance Division Tenaga Nasional Berhad [email protected] 4th Floor, TNB Headquarters Ms. Sakinah Mohd Ali No.129,
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