Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Q1 FY2017 Earnings Presentation
25 slides from Tenaga Nasional Bhd's earnings presentation, Jan 24, 2017
Slide 1: Presentation to Analysts
PRESENTATION TO ANALYSTS Unaudited Consolidated Results for the 1st Quarter FY2017 ended 30th November 2016 24th January 2017 Prepared by: [email protected] Investor Relations & Management Reporting Department GROUP FINANCE DIVISION
Slide 2: Agenda
AGENDA RESULTS HIGHLIGHTS RESULTS DETAILS QUESTION & ANSWER 2
Slide 3: Key Highlights
KEY HIGHLIGHTS Lower Profit Mainly due to Forex Translation Loss of RM0.23bn Profit After Tax 8.9% Declined by RM0.17bn Capital Expenditure 1QFY’17 RM1.79bn 1QFY’16 RM 1.96bn Forex Translation Loss >100.0% Increase in loss by RM0.17bn RM RM 2.07bn 2.27bn 1QFY’17 RM0.23bn 1QFY’17 1QFY’16 1QFY’16 RM0.
Slide 4: Group Profit Analysis
GROUP PROFIT ANALYSIS 3.4% Increase in Adjusted PAT Contributed by 3.6% Demand Growth Table 1: (RM mn) 1QFY'17 1QFY'16 Table 3: 1QFY'17 1QFY'16 Profit After Tax 1,788.5 1,962.2 Forex Translation (Gain) / Loss 231.2 58.5 Growth (%) 3.6 3.2 Reinvestment Allowance (331.5) (388.0) Adjusted Profit After
Slide 5: System Weekly Maximum Demand (Peninsula)
SYSTEM WEEKLY MAXIMUM DEMAND (PENINSULA) For FY2013 to FY2017 Peak Demand: 17,788 MW MW 1st Qtr 2nd Qtr 3rd Qtr (20/04/16) 4th Qtr 18,000 17,500 17,000 16,500 16,000 15,500 15,000 14,500 14,000 MIER 4.5% 2017 (f) 13,500 Peak Demand YoY Growth (%) 13,000 FY 2013 16,562 MW 13/5/2013 4.7 FY 2014 16,901
Slide 6: Generation Mix (Peninsula)
GENERATION MIX (PENINSULA) Quarterly Analysis Increase in Coal Generation with Commissioning of Tg Bin Energy in March 2016 % 4.1 4.1 3.0 3.1 3.0 0.1 0.4 0.6 0.6 0.5 49.3 49.6 52.0 52.2 54.4 46.5 45.9 44.4 44.1 42.1 1Q 2Q 3Q 4Q 1Q FY'16 FY'16 FY'16 FY'16 FY'17 Gas Coal Oil & Distillate Hydro 6
Slide 7: Capital Expenditure
CAPITAL EXPENDITURE Major Projects Represent 45.4% of Total CAPEX RM mn 1,578.7 1,451.3 2,513.3 2,268.6 2,066.1 2,600.0 2,400.0 2,200.0 2,000.0 1,800.0 1,596.6 1,600.0 1,348.6 938.9 45.4% 1,400.0 539.0 559.9 1,200.0 O 101.2 1,000.0 O 136.8 O 92.8 O 101.7 O 158.2 800.0 546.8 D 54.6% 600.0 D 578.3 D 4
Slide 8: Status of Major Projects
STATUS OF MAJOR PROJECTS 3 Generation Projects With Capacity Over 3,000MW Currently in the Pipeline Jimah East Power Janamanjung Unit 5 1,000MW 98% 2,000MW 33% COD: COD: U1: 15th Jun 2019 1st Oct 2017 U2: 15th Dec 2019 Hulu Terengganu Hydro 99% 15MW Tembat COD: U3: end Feb 2017 U4 Completed: 23rd De
Slide 9: Key Performance Indicators
KEY PERFORMANCE INDICATORS INITIATIVES 1QFY’17 FY’16 • Return on Assets (ROA) (%) 7.0 6.4 • Company CPU (sen/kwh) 34.1 34.2 • Revenue from Non-Regulated 0.5 2.7 Business (RM bn) • Equivalent Plant Availability 88.7 89.3 Factor (EAF) (%) • Transmission System Minutes (mins) 0.00 1.47 • Distribution S
Slide 10: Significant Events
SIGNIFICANT EVENTS 1 GREATER ACCESS 2 TO INTERNATIONAL DEBT CAPITAL 5,000MW NEW MARKET THROUGH GENERATION 3 MULTICURRENCY CAPACITY SUKUK ISSUANCE INTERNATIONALLY BY 2020 250MW INCREASE IN TNB RENEWABLE First Issuance of ENERGY (RE) International Sukuk PORTFOLIO BY 2020 Amounting to USD0.75bn 30% Sig
Slide 11: Access to International Debt Capital Market
ACCESS TO INTERNATIONAL DEBT CAPITAL MARKET First Issuance of International Sukuk Amounting to USD0.75bn Multicurrency Sukuk Program First Issuance – 19 October 2016 USD2.50 bn in nominal value USD0.75 bn in nominal value • The Sukuk transaction marks the return of TNB to the international debt capi
Slide 12: International Acquisition: GMR Energy Limited
INTERNATIONAL ACQUISITION 30% Significant Minority Stake in GMR Energy Limited GMR Energy Limited Strong government with Large & growing favorable policy market framework • On 4 November 2016, TNB had completed the acquisition of 30% equity interest of GMR Energy Limited via a bilateral transaction.
Slide 13: International Acquisition: Vortex Solar
INTERNATIONAL ACQUISITION 50% Equity Interest in Vortex Solar Investments S.a.r.l. Vortex Solar Diversify TNB Improve TNB RE • On 6 January 2017, TNB via wholly owned Portfolio current subsidiary had entered into a Subscription international portfolio and Funding Agreement with Beaufort Investments
Slide 14: Agenda
AGENDA RESULTS HIGHLIGHTS RESULTS DETAILS QUESTION & ANSWER 14
Slide 15: Results Details
RESULTS DETAILS Reduction in EBITDA Margin Mainly from Provision for Electricity Debtors ANALYSIS OF EBITDA MARGIN (%) RM mn 1QFY'17 1QFY'16 Total Units Sold (GWh) 29,548.4 28,518.4 Revenue 11,241.6 10,676.8 Operating Expenses (before 35.0 7,632.3 7,078.0 depreciation) 33.6 33.2 33.0 Operating Incom
Slide 16: Details of Revenue
DETAILS OF REVENUE 5.3% Increase in Total Revenue Mainly From 3.6% Demand Growth in Peninsula 1QFY'17 1QFY'16 Grow th UNITS SOLD GWh GWh % - TNB 27,811.3 26,846.2 3.6 - EGAT (Export) 22.6 1.1 >100.0 - SESB 1,302.5 1,254.5 3.8 - LPL 412.0 416.6 (1.1) Total Units Sold (GWh) 29,548.4 28,518.4 3.6 REVEN
Slide 17: Operating Expenses
OPERATING EXPENSES 7.9% Increase in Operating Expenses Variance Variance RM mn 1QFY'17 1QFY'16 RM mn % Capacity Payment 1,114.8 975.9 (138.9) (14.2) Energy Payment 2,165.5 2,015.5 (150.0) (7.4) Total IPPs Purchases/Costs 3,280.3 2,991.4 (288.9) (9.7) 5,499.9 5,203.3 296.6 Fuel Costs 2,219.6 2,211.9
Slide 18: Generation Mix (Peninsula)
GENERATION MIX (PENINSULA) Year-on-Year Analysis 5.0% Increase in Fuel Costs Resulted from Higher Demand and Increased Piped Gas Price Table 1: Fuel Costs (RM mn) Units Generated (Gwh) Fuel Variance Fuel Variance 1QFY'17 1QFY'16 1QFY'17 1QFY'16 Type RM mn % Type Gwh % Gas 1,977.2 1,881.1 96.1 5.1 Ga
Slide 19: Fuel Costs (TNB & IPPs - Peninsula)
FUEL COSTS (TNB & IPPs - PENINSULA) Fuel Costs Units Generated Coal IPP Dist. TNB, 0.0 Coal IPP Dist. TNB, 0.1 28.2 Dist. IPP, 0.1 22.3 Dist. IPP, 0.2 Oil TNB, 0.4 Coal TNB Coal IPP Hydro Coal TNB 3.0 Oil IPP, 0.0 24.5 Coal IPP 21.3 24.9 Oil TNB, 0.7 Hydro 17.1 Oil IPP, 0.1 4.1 Coal TNB LNG 7.8 % Co
Slide 20: Coal Requirement
COAL REQUIREMENT Average Coal Price for 1QFY’17 was at USD63.0/MT @ RM264.7/MT Average Coal Price FY’10 FY’11 FY’12 FY’13 FY’14 FY’15 FY’16 (CIF) (USD/metric tonne) 88.2 106.9 103.6 83.6 75.4 66.0 55.7 (RM/metric tonne) 293.8 325.9 321.9 259.5 244.6 236.0 231.1 Tonne (mn) 30.0 28.1 25.4 25.0 Country
Slide 21: Debt Exposure & Gearing
DEBT EXPOSURE & GEARING Improved Gearing due to Multicurrency Sukuk Issuance of USD0.75bn in October 2016 30th Nov’16 (RM bn) 7.8% 2.93 31st Aug’16 (RM bn) 17.5% 8.7% Total Debt: 6.54 3.00 37.4 Total Debt: 34.3 8.5% Net Debt: Net Debt: 2.92 17.9 17.2 0.2% 0.1% 82.6% 0.05 0.04 74.6% 28.34 27.91 RM YE
Slide 22: Shareholding
SHAREHOLDING Foreign Shareholdings Remained Around 27% Top 100* Shareholders as at Nov’16 Foreign Shareholding Khazanah Nasional 11.3 6.8 Berhad 26.90% Employees Provident 11.1 10.7 5.9 27.69% Fund Board 10.5 Permodalan Nasional Bhd 14.9 (%) 28.3 27.7 Other Corporations & 14.9 Govt. Agencies Aug’16
Slide 23: 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 24: 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 25: Thank You
THANK YOU Unaudited Consolidated Results for the 1st Quarter FY2017 ended 30th November 2016
Tenaga Nasional Berhad — Q1 FY2017 Earnings Presentation on 6ix