Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Q2 FY2015 Earnings Presentation
30 slides from Tenaga Nasional Bhd's earnings presentation, Apr 27, 2015
Slide 1: Presentation to Analysts
PRESENTATION TO ANALYSTS Unaudited Consolidated Results for the 2nd Quarter FY2015 ended 28th February 2015 27th April 2015 Prepared by: [email protected] Investor Relations & Management Reporting Department GROUP FINANCE DIVISION
Slide 2: Agenda
AGENDA RESULTS SNAPSHOTS RESULTS HIGHLIGHTS RESULTS DETAILS QUESTION & ANSWER 2
Slide 3: 2nd Quarter FY2015
2nd QUARTER FY2015 3-Month Ended 28th February 2015 2QFY2015 1QFY2015 QoQ Profit After Tax RM2.13 bn RM2.35 bn 9.2% EBITDA Margin 37.8% 36.3% 1.5ppt Average Coal Price USD66.4/mt USD70.2/mt 5.4% Forex Translation Gain/(Loss) (RM303.3 mn) RM45.9 mn >(100.0%) 3
Slide 4: 1st Half FY2015
1st HALF FY2015 6 Months FY2015 1HFY2015 1HFY2014 YoY Profit After Tax RM4.48 bn RM3.47 bn 29.4% EBITDA Margin 37.1% 27.5% 9.6ppt Average Coal Price USD68.4/mt USD77.5/mt 11.7% Forex Translation Gain/(Loss) (RM257.4 mn) RM133.7 mn >(100.0%) * FY2014 restated 4
Slide 5: Group Profit Analysis
GROUP PROFIT ANALYSIS Improved Profit due to Lower Generation Costs 1HF Y '14 (RM mn) 1HF Y '15 (Re sta te d) Profit After Tax 4,484.7 3,465.7 Adjustments: Forex Translation (Gain) / Loss 257.4 (133.7) Change in Corporate Tax Rate (188.7) Reinvestment Allowance (771.9) (939.2) Adjusted Profit After
Slide 6: Generation Mix (Peninsula) con't
GENERATION MIX (PENINSULA) con’t Year-on-Year Analysis 9.2% Reduction in Fuel Costs Mainly due to Lower Generation from Gas & LNG Table 1: Fuel Cost (RM mn) Units Generated (Gwh) Fuel Variance 1HFY'14 1HFY'15 Fuel Variance Type RM mn % 1HFY'14 1HFY'15 Type Gwh % Gas 4,044.7 3,515.6 (529.1) (13.1) Ga
Slide 7: Generation Mix (Peninsula)
GENERATION MIX (PENINSULA) Quarter-on-Quarter Analysis Improved Hydro & Stable Coal Generation in 2QFY’15 UNIT GENERATED % 5.2 4.7 2.9 2.8 3.4 7.0 1.2 1.5 0.1 3.0 1.7 1.1 35.1 38.2 39.8 45.6 46.3 47.0 58.7 55.9 53.8 49.9 49.2 45.9 1QFY'14 2QFY'14 3QFY'14 4QFY'14 1QFY'15 2QFY'15 Gas Coal Oil & Distil
Slide 8: Electricity Growth in Peninsula
ELECTRICITY GROWTH IN PENINSULA FY2014 FY2015 UNITS SALES 1Q 2Q 3Q 4Q Sept Oct Nov Dec Jan Feb Mar Industrial Gwh 10,644 10,802 10,584 10,998 3,704 3,582 3,687 3,587 3,660 3,729 3,256 Growth (%) 1.0 2.5 1.8 0.1 9.0 0.9 (0.2) 0.7 0.7 3.5 0.2 Commercial Gwh 8,718 8,596 8,865 9,175 2,867 3,006 3,145 3,
Slide 9: System Weekly Maximum Demand (Peninsula)
SYSTEM WEEKLY MAXIMUM DEMAND (PENINSULA) For FY2011 to FY2015 New PD: 16,901MW (11/06/14) MW 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 17,500 17,000 16,500 16,000 15,500 15,000 14,500 14,000 13,500 13,000 12,500 12,000 Peak Demand YoY Growth (%) FY 2011 15,476 MW 9/5/2011 2.7 11,500 FY 2012 15,826 MW 20/6/201
Slide 10: Headline Key Performance Indicators
HEADLINE KEY PERFORMANCE INDICATORS INITIATIVES FY’14 1HFY’15 • Return on Assets (ROA) (%) 6.2 8.3 • Company CPU (sen/kwh) 35.0 31.8 • Revenue from Non-Regulated 2.5 1.2 Business (RM bn) • Equivalent Plant Availability 85.6 88.7 Factor (EAF) (%) 0.1 0.2 • Transmission System Minutes (mins) • Distrib
Slide 11: Capital Expenditure
CAPITAL EXPENDITURE Major Projects Represent 55.1% of Total CAPEX RM mn 1,842.6 2,885.4 3,675.1 3,978.4 5,142.9 5,500.0 5,000.0 4,500.0 4,000.0 2,832.8 55.1% 3,500.0 3,000.0 1,865.8 1,476.6 812.8 2,500.0 O O 249.1 2,000.0 31.7 316.1 O 227.7 O 235.9 O 349.3 1,500.0 D 1,243.0 44.9% D D D 1,253.0 1,139
Slide 12: Status of Major Projects
STATUS OF MAJOR PROJECTS Hulu Terengganu Janamanjung Unit 4 Connaught Bridge Hydro COMPLETED 1,010MW 265MW 385MW COD 14th Apr 2015 COD Sept 2015 (U1) COD 1st Sept 2015 Dec 2015 (U2) Janamanjung Unit 5 Ulu Jelai Hydro Prai 1,000MW 372MW 1,071MW COD 1st Oct 2017 COD Dec 2015 (U1) COD 1st Jan 2016 Mar
Slide 13: Interim Dividend
INTERIM DIVIDEND INTERIM DIVIDEND Interim Single-Tier Dividend of 10.0 sen per ordinary share Tenaga is committed to pay out dividend based on its Dividend Policy whereby: Dividend is paid out based on 40%-60% of its Company’s Annual Free Cashflow; Cashflow from Operations less Normalised Capex and
Slide 14: Agenda
AGENDA RESULTS SNAPSHOTS RESULTS HIGHLIGHTS RESULTS DETAILS QUESTION & ANSWER 14
Slide 15: Unaudited Income Statement (Group)
UNAUDITED INCOME STATEMENT (GROUP) Year-on-Year Analysis • 10.6% Increase in Revenue • Lower Operating Expenses due to Lower Generation Costs • Net Profit of RM4.48bn CUMULATIVE Current Year Preceding Year To Date Corresponding Variance RM'mn Period (Restated) % 28.02.15 28.02.14 Revenue 21,637.1 19
Slide 16: Quarterly & Yearly Analysis
QUARTERLY & YEARLY ANALYSIS Improved EBITDA Margin Resulted from Improved Revenue & Lower Generation Costs 1HFY'14 RM mn 1QFY'15 2QFY'15 1HFY'15 (Restated) Total Units Sold (GWh) 27,431.2 27,197.6 54,628.8 52,974.8 Revenue 11,027.1 10,610.0 21,637.1 19,569.1 Operating Expenses (before 7,161.8 6,798.
Slide 17: Operating Expenses
OPERATING EXPENSES 1.7% Decrease in OPEX Resulted from Lower Generation Costs 1HFY'14 Variance Variance RM mn 1HFY'15 (Restated) RM mn % Capacity Payment 1,993.9 1,787.8 (206.1) (11.5) Energy Payment 4,213.0 4,284.3 71.3 1.7 Total IPPs Purchases/Costs 6,206.9 6,072.1 (134.8) (2.2) 10,110.9 10,644.8
Slide 18: Agenda
AGENDA RESULTS SNAPSHOTS RESULTS HIGHLIGHTS RESULTS DETAILS QUESTION & ANSWER 18
Slide 19: Details of Revenue
DETAILS OF REVENUE 15.9% Increase in Group Sales of Electricity Mainly Resulted From Jan’14 Tariff Review 1HFY'14 1HFY'15 Growth (Restated) UNITS SOLD GWh GWh % - TNB 51,691.3 50,299.1 2.8 - EGAT (Export) 3.3 16.6 (80.1) - SESB 2,372.2 2,319.9 2.3 - LPL 562.0 339.2 65.7 Total Units Sold (GWh) 54,628
Slide 20: Electricity Growth by Sectors (Group)
ELECTRICITY GROWTH BY SECTORS (GROUP) Analysis 1HFY’15 = 16.1% 1HFY’15 = 3.1% (1HFY’14 = 4.9%) (1HFY’14 = 1.6%) Industrial Commercial Domestic Others 1HFY’14 +1.6% +2.5% +2.8% -16.3% RM mn +16.8% +16.6% +2.5% +3.1% +2.4% +11.8% +25.3% +20.2% Notes: * Includes Specific Agriculture, Mining, Public Lig
Slide 21: Details of Revenue: Sectoral Analysis con't
DETAILS OF REVENUE: SECTORAL ANALYSIS con’t Industrial Sector* (Peninsula) Recorded Y-o-Y Growth of 2.3% GWh ELECTRONICS GWh PETROCHEMICAL 550 180 500 160 450 140 400 Y-o-Y 1.7% Y-o-Y (3.3%) 350 120 May Jun Dec Mar Apr Jul Jan Feb Aug Mar Jul May Jun Aug Apr Dec Jan Feb Sep Oct Nov Sep Oct Nov IRON
Slide 22: Details of Revenue: Sectoral Analysis
DETAILS OF REVENUE: SECTORAL ANALYSIS Commercial Sector (Peninsula) Recorded Y-o-Y Growth of 3.3% LOW VOLTAGE Shop Lots & Retail Business GWh 2100 1800 Y-o-Y 2.6% 1500 Jul Jun Oct Nov Sept Aug Apr Feb Dec Mar Jan May MEDIUM VOLTAGE MEDIUM VOLTAGE (PEAK/OFF-PEAK) Mega Shopping Malls, 4-5 Star Hotels,
Slide 23: Industry Generation in Peninsula (TNB & IPPs)
INDUSTRY GENERATION IN PENINSULA (TNB & IPPs) Lower Fuel Costs Mainly due to Lower Gas & LNG Generation Fuel Costs Units Generated Dist. TNB, 0.1 Coal IPP 23.8 Dist. IPP, 0.2 Coal IPP Dist. TNB, 0.6 Coal TNB 18.4 Dist. IPP, 1.0 Oil TNB, 0.4 17.7 Hydro 5.1 Oil IPP, 0.0 Coal TNB Oil TNB, 1.4 Coal IPP
Slide 24: Coal Requirement
COAL REQUIREMENT Average Coal Price for 1HFY’15 was at USD68.4/MT FY’05 FY’06 FY’07 FY’08 FY’09 FY’10 FY’11 FY’12 FY’13 FY’14 1HFY’15 Average Coal Price (CIF) 49.8 52.8 45.3 76.4 90.2 88.2 106.9 103.6 83.6 75.4 68.4 (USD/metric tone) Tonne (mn) 30.0 With commissioning of Manjung 4 27.5 25.0 Country
Slide 25: Debt Exposure & Forex
DEBT EXPOSURE & FOREX 28th Feb’15 (RM bn) 12.7% 31st Aug’14 3.24 (RM bn) 12.9% 3.28 Total Debt: 11.3% 25.6 2.90 Total Debt: 25.5 10.3% 2.64 Net Debt: Net Debt: 21.6 17.3 0.2% 0.3% 76.6% 0.05 75.7% 0.09 19.49 19.39 RM YEN USD Others Statistics 28th Feb'15 31st Aug'14 Gearing (%) 35.3 36.9 28th Feb’15
Slide 26: Shareholding
SHAREHOLDING Foreign Shareholding Remained Stable Main Shareholding as at Feb’15 26.2% 26.3% 10.7 6.8 13.2 12.0 12.4 6.5 12.1 (%) 24.6 26.3 13.3 32.4 Aug’14 12.6% Feb’15 29.7 Aug'09 Aug'10 Aug'11 Aug'12 Aug'13 Sept'13 Oct'13 Nov'13 Dec'13 Jan'14 Feb'14 Mar'14 Apr'14 May'14 Jun'14 Aug'14 Jul'14 Sept'
Slide 27: Agenda
AGENDA RESULTS SNAPSHOTS RESULTS HIGHLIGHTS RESULTS DETAILS QUESTION & ANSWER 27
Slide 28: 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 29: 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 30: Thank You
THANK YOU Unaudited Consolidated Results for the 2nd Quarter FY2015 ended 28th February 2015
Tenaga Nasional Berhad — Q2 FY2015 Earnings Presentation on 6ix