Tenaga Nasional Bhd · MYX:TENAGA

Tenaga Nasional Bhd — Q1 FY2018 Earnings Presentation

23 slides from Tenaga Nasional Bhd's earnings presentation, Jan 26, 2018

  1. Slide 1: Presentation to Analysts

    PRESENTATION TO ANALYSTS Unaudited Consolidated Result for the 1st Quarter Period Ending 31st December 2017, Ended 30th November 2017 26th January 2018

  2. Slide 2: Agenda

    AGENDA KEY HIGHLIGHTS FINANCIAL DETAILS QUESTION & ANSWER 2

  3. Slide 3: Key Financial Position Remain Intact

    KEY Financial Position Remain Intact HIGHLIGHTS Revenue (RM bn) EBITDA (RM bn) Profit After Tax (RM bn) +3.3% +2.0% +20.6% 2.16 Margin Margin 11.61 33.7% 33.3% 3.86 1.79 11.24 3.79 Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended 30 Nov'16 30 Nov'17 30 Nov'16 30 Nov'17 3

  4. Slide 4: Major Projects Represent Around 71% of Total CAPEX

    Major Projects Represent Around 71% KEY of Total CAPEX HIGHLIGHTS RM mn 1,451.3 2,513.3 2,268.6 2,066.1 3,707.7 4,000.0 3,600.0 3,200.0 2,800.0 2,400.0 2,629.2 70.9% 2,000.0 1,596.6 1,600.0 1,348.6 938.9 559.9 1,200.0 O 101.2 O 202.9 800.0 O 92.8 O 101.7 O 158.2 D 546.8 29.1% D 498.8 D 479.3 D 516.9

  5. Slide 5: Steady Stream of Additional Power Generation to Support the Nation Growth

    Steady Stream of Additional Power Generation KEY to Support the Nation Growth HIGHLIGHTS Jimah East Power 2,000MW 77% COD: U1: 15th Jun 2019 U2: 15th Dec 2019 Southern Power TNB Sepang Solar Generation(SPG) 50MW 1,440MW 44% COD: 10% COD: 1 Nov 2018 st 1st July 2020 5

  6. Slide 6: Key Performance Indicators

    KEY Key Performance Indicators HIGHLIGHTS Period Ended FY’17 30 Nov’17 INITIATIVES • Return on Assets (ROA) (%) 5.6 5.4 • Company CPU (sen/kwh) 36.6 36.6 • Revenue from Non-Regulated 3.3 0.6 Business (RM bn)* • Equivalent Plant Availability 85.6 89.5 Factor (EAF) (%) • Transmission System Minutes (m

  7. Slide 7: 5-Year Operational Performance

    KEY 5-Year Operational Performance HIGHLIGHTS 1 EQUIVALENT PLANT AVAILABILITY FACTOR (EAF) (%) 93.0 90.4 88.7 85.6 82.1 30 Nov'13 30 Nov'14 30 Nov'15 30 Nov'16 30 Nov'17 Period Ended 2 SYSTEM MINUTES (mins) 3 SAIDI (mins) 0.15 15.8 13.8 12.5 11.9 10.4 0.05 0.00 0.00 0.00 30 Nov'13 30 Nov'14 30 Nov'1

  8. Slide 8: Stable Foreign Shareholding At 24%

    KEY Stable Foreign Shareholding At 24% HIGHLIGHTS Shareholding as at Dec’17 Foreign Shareholding (%) Khazanah Nasional Berhad 7.3 14.1 Permodalan Nasional 11.8 Bhd Employees Provident Fund Board (%) 24.1 Other Government 14.6 Agencies Other Corp. & 22.81 28.28 24.38 24.33 24.31 24.23 24.06 Malaysian

  9. Slide 9: Agenda

    AGENDA KEY HIGHLIGHTS FINANCIAL DETAILS QUESTION & ANSWER 9

  10. Slide 10: Stable EBITDA due to Effective Implementation of ICPT Mechanism

    Stable EBITDA due to Effective Implementation FINANCIAL of ICPT Mechanism DETAILS ANALYSIS OF EBITDA MARGIN & COAL PRICE Period Ended Period Ended % RM mn RM/mt 30 Nov'17 30 Nov'16 365.4 Total Units Sold (GWh) 29,849.0 29,548.4 Revenue 11,607.0 11,241.6 Operating Expenses (before 8,137.6 7,632.3 312

  11. Slide 11: 3.3% Increase In Revenue mainly due to Lower Over-Recovery by RM0.4bn

    3.3% Increase In Revenue mainly due to Lower FINANCIAL Over-Recovery by RM0.4bn DETAILS Period Ended 30 Nov'17 Period Ended 30 Nov'16 Grow th UNITS SOLD GWh GWh % - TNB 28,149.7 27,811.3 1.2 - EGAT (Export) 1.9 22.6 (91.6) - SESB 1,315.8 1,302.5 1.0 - LPL 381.6 412.0 (7.4) Total Units Sold (GWh) 29,

  12. Slide 12: 12.7% Reduction In Adjusted Profit After Tax

    FINANCIAL 12.7% Reduction In Adjusted Profit After Tax DETAILS Table 1: PROFIT AFTER TAX (RM bn) ADJUSTED PROFIT AFTER TAX Period Ended Period Ended (RM mn) 30 Nov'17 30 Nov'16 2.16 Profit After Tax 2,156.7 1,788.5 Forex Translation (Gain)/ Loss (335.6) 231.2 1.79 Reinvestment Allowance (347.2) (331

  13. Slide 13: Demand Growth Registered At 1.2%

    FINANCIAL Demand Growth Registered At 1.2% DETAILS Period Ended FY 2017 30 Nov'17 UNITS GENERATED 1Q 2Q 3Q 4Q FY '17 1Q Gwh 29,865 29,276 30,471 30,901 120,513 30,598 Total Growth (%) 2.6 3.1 (5.5) 1.9 0.4 2.5 UNITS SALES 1Q 2Q 3Q 4Q FY '17 1Q Gwh 10,975 10,966 10,794 11,118 43,853 11,429 Industrial

  14. Slide 14: Normalised Y-o-Y Demand Growth for FY2018

    FINANCIAL Normalised Y-o-Y Demand Growth for FY2018 HIGHLIGHTS SYSTEM WEEKLY MAXIMUM DEMAND (PENINSULA) MW 1st Qtr 2nd Qtr 3rd 4th Qtr Peak Demand: Qtr 18000 17,790 MW (23/10/17) 17500 17000 16500 16000 15500 15000 14500 14000 13500 Peak Demand YoY Growth (%) FY 2014 16,901 MW 11/6/2014 2.0 13000 BN

  15. Slide 15: 6.3% Increase In Operating Expenses

    FINANCIAL 6.3% Increase In Operating Expenses DETAILS Period Ended Period Ended Variance Variance RM mn 30 Nov'17 30 Nov'16 RM mn % Capacity Payment 983.3 1,114.8 131.5 11.8 Energy Payment 2,667.1 2,165.5 (501.6) (23.2) Total IPPs Purchases/Costs 3,650.4 3,280.3 (370.1) (11.3) 6,027.4 5,499.9 527.5

  16. Slide 16: 16.0% Increase in Fuel Costs Mainly due to Higher Coal Price and Coal Consumption

    16.0% Increase in Fuel Costs Mainly due to FINANCIAL Higher Coal Price and Coal Consumption DETAILS Table 1: GENERATION MIX PENINSULA Fuel Costs* (RM mn) Units Generated (Gwh) Fuel Period Ended Period Ended Variance Fuel Period Ended Period Ended Variance Type 30 Nov'17 30 Nov'16 RM mn Type 30 Nov'1

  17. Slide 17: Higher Coal Generation with the Commissioning of Manjung 5

    Higher Coal Generation with the Commissioning FINANCIAL of Manjung 5 DETAILS GENERATION MIX % 3.0 4.1 5.5 6.2 0.5 5.9 0.1 0.3 0.4 0.0 54.4 50.2 52.8 53.5 56.9 42.1 45.6 41.4 40.2 36.9 1Q 2Q 3Q 4Q Period Ended FY'17 FY'17 FY'17 FY'17 30 Nov'17 Gas Coal Oil & Distillate Hydro 17

  18. Slide 18: Fuel Costs (TNB & IPPs - Peninsula)

    FINANCIAL Fuel Costs (TNB & IPPs - Peninsula) DETAILS Fuel Costs Units Generated Oil IPP, 0.0 Oil IPP, 0.0 Oil TNB, 0.0 Coal IPP Oil TNB, 0.1 Coal IPP 27.3 Dist. IPP, 0.0 28.9 Dist. TNB, 0.0 Dist. IPP, 0.0 Hydro Dist. TNB, 0.2 Coal IPP Coal IPP 6.2 28.2 Coal TNB 22.3 Hydro Coal TNB 24.5 3.0 28.8 LNG

  19. Slide 19: Coal Requirement

    FINANCIAL Coal Requirement DETAILS Period Ended Average Coal Price (CIF) FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 30 Nov'17 USD/metric tonne 88.2 106.9 103.6 83.6 75.4 66.0 55.7 72.7 86.8 RM/metric tonne 293.8 325.9 321.9 259.5 244.6 236.0 231.1 314.7 365.4 Tonne (mn) 30.0 29.6 Country Mix 27

  20. Slide 20: Gearing Level Increase To Around 41%

    FINANCIAL Gearing Level Increase To Around 41% DETAILS Period Ended 30th Nov’17 31st Aug’17 (RM bn) (RM bn) 6.2% 2.57 7.2% 2.81 14.4% Total Debt: 5.99 16.2% 41.6 Total Debt: 38.8 6.31 Net Debt: Net Debt: 23.0 21.6 0.1% 0.1% 76.5% 0.01 0.05 79.3% 29.72 33.0 RM YEN USD Others Period Ended Statistics 3

  21. Slide 21: 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

  22. Slide 22: Contact Details

    CONTACT DETAILS For further enquiries, kindly contact us at: CoE INVESTOR RELATONS GROUP FINANCE DIVISION 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 : www.tnb.c

  23. Slide 23: Thank You

    3) TENAGA NASIONAL Petter. Brighter. THANK YOU

Tenaga Nasional Berhad — Q1 FY2018 Earnings Presentation on 6ix