Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Non-Deal Roadshow (November 2013)
41 slides from Tenaga Nasional Bhd's roadshow presentation, Nov 12, 2013
Slide 1: BNY Mellon Non-Deal Roadshow
BNY MELLON NON-DEAL ROADSHOW New York, USA (11-12th November 2013) Prepared by: [email protected] Investor Relations & Management Reporting Department GROUP FINANCE DIVISION
Slide 2: Part One
BNY MELLON NDR, NEW YORK, USA PART ONE 2
Slide 3: Agenda
AGENDA 1 • INTRODUCTION TO TENAGA 2 • INTRODUCTION TO MESI 3 • BUSINESS STRATEGY & DIRECTION 4 • TARIFF 5 • DIVIDEND POLICY • OUTLOOK – KEY TAKEWAWAYS 6 3
Slide 4: Introduction to Tenaga
BNY MELLON NDR, NEW YORK, USA 1 INTRODUCTION TO TENAGA 4
Slide 5: Three Major Utilities in Malaysia
INTRODUCTION TO TENAGA Three Major Utilities in Malaysia Sabah Electricity Sdn Bhd Tenaga Nasional Bhd (A 83% TNB Subsidiary) (TNB) 1,141MW* 21,749MW* BRUNEI SABAH PENINSULAR 695MW MALAYSIA 1,237MW SARAWAK 11,506MW Sarawak Electricity Board (SEB) SINGAPORE * Includes IPPs 4.0% INSTALLED CAPACITY 4.2
Slide 6: Vertically Integrated Utility
INTRODUCTION TO TENAGA Vertically Integrated Utility 52.7% 100% 100% Core Business – Peninsula Generation Transmission Distribution Source: The Sun; 7th March 2013 Source: The New Straits Times; 7th March 2013 6
Slide 7: No of Customer vs. Sales Value vs. Unit Sales
INTRODUCTION TO TENAGA No of Customer vs. Sales Value vs. Unit Sales 100% 0.8% 1.3% 1.8% 18.4% 21.3% Sectoral Sales Analysis (Gwh) 80% 60% 82.1% 41.5% 34.4% FY13 42.5 34.4 21.3 1.8 40% FY12 43.6 34.1 20.6 1.7 20% 38.8% 42.5% FY11 44.3 33.8 20.3 1.6 16.8% 0% 0.4% 44.8 33.4 20.3 1.5 FY10 No of Sales (
Slide 8: Industry Regulatory Framework
INTRODUCTION TO TENAGA Industry Regulatory Framework Empowered by Electricity PRIME MINISTER Supply Act /CABINET Holds 1990 „Golden‟ Special Purpose Agency Share created to detail out the key reform initiatives of the Malaysian Electricity Supply 32.42% Industry (MESI), aligned with MyPOWER Ministry
Slide 9: Introduction to Malaysian Electricity Supply Industry (MESI)
BNY MELLON NDR, NEW YORK, USA INTRODUCTION TO 2 MALAYSIAN ELECTRICITY SUPPLY INDUSTRY (MESI) 9
Slide 10: Transformation Initiatives by Government
INTRODUCTION TO MESI Transformation Initiatives by Government Legal & 1st Gen IPP / Subsidy FCPT Nuclear Energy National RE LNG Regulatory Restricted Rationalisation Capacity Policy & Action FIT & RE Fund Mechanism Importation Framework Bidding Programme Building Plan Enhancement 10 *Source: MyPower
Slide 11: Transformation Plan: Timeline
INTRODUCTION TO MESI Transformation Plan : Timeline 1 Energy The New Energy Policy Addresses Pricing Economic Efficiency, Security of 2 Supply and Social & Energy 5 Change Environmental Objectives Supply New Management Energy Policy 3 4 Energy Governance Efficiency 2016 - 2010 2011 2012 2013 2014 20
Slide 12: Energy Pricing – Competitive Bidding
INTRODUCTION TO MESI Energy Pricing – Competitive Bidding TRACK 1 1071 MW CCGT PRAI TRACK 3A 1 X 1000 MW COAL-FIRED COD January 2016 COD October 2017 STATUS TNB has signed agreements on 16/8/13 for: LEVELISED 34.7 sen/kWh i. PPA with TNB Manjung Five Sdn Bhd “Manjung 5” to TARIFF design, construct,
Slide 13: Energy Pricing – Competitive Bidding
INTRODUCTION TO MESI Energy Pricing – Competitive Bidding To ensure healthy competition for new generation capacity 1 Customers benefit from competitive rates. 2 TNB‟s participation in the bidding process -> Why should TNB be allowed people‟s best interest. 3 to participate in competitive bidding fo
Slide 14: Energy Supply - Four Dimensions of Energy Security
INTRODUCTION TO MESI Energy Supply - Four Dimensions of Energy Security Fuel Mix and Fuel Supply Security Must Be Managed to Ensure A Reliable Electricity Supply *Source: MyPower / Frontier Economics 14
Slide 15: Incentive Based Regulation (IBR)
INTRODUCTION TO MESI Energy Efficiency & Governance - Incentive Based Regulation (IBR) Economic regulation methodology proposed by EC to promote efficiency and transparency through incentive and penalty mechanism 3 broad efficiency categories by IBR: The Move towards Better Regulation OPERATIONAL Th
Slide 16: IBR Implementation Timeline by EC
INTRODUCTION TO MESI Energy Efficiency & Governance - Incentive Based Regulation (IBR) IBR Implementation Timeline by EC *Source: EC Bulletin published Mar’13 16
Slide 17: Business Strategy & Direction
BNY MELLON NDR, NEW YORK, USA 3 BUSINESS STRATEGY & DIRECTION 17
Slide 18: 20-Year Strategic Plan
BUSINESS STRATEGY & DIRECTION 20-Year Strategic Plan THE PLAN LAYS DOWN THE PATH TOWARDS REALISING OUR VISION OF GLOBAL LEADERSHIP GLOBAL It builds upon the progress of T7 LEADERSHIP 2025 • Excel in: - All business areas OVERSEAS - Reputation as a INVESTMENT 2020 strong business partner - Ability to
Slide 19: International Footprint
BUSINESS STRATEGY & DIRECTION International Footprint Leverage on Tenaga‟s capabilities (in Middle East and North Africa “MENA” area) in pursuing International Business (O&M), Project Management in generation Business REMACO O&M for Shuaiba North Co-Gen (USD320m) 780MW Power; 204,000 m3 / TNEC JV Al
Slide 20: Domestic Dominance Regional Champion (DDRC)
BUSINESS STRATEGY & DIRECTION Domestic Dominance Regional Champion “DDRC” TNB Transformation Paves the Way for TNB to Become a Strong Leader at Home while Growing as a Regional Champion Strong domestic leader Regional champion ▪ Ensure universal access to power Develop our country ▪ Develop power su
Slide 21: Headline KPIs: 1st Phase TNB 20-Year Strategic Plan
BUSINESS STRATEGY & DIRECTION Headline KPIs : 1st Phase TNB 20-Year Strategic Plan Most Targets for 1st Phase that was Set in 2005 were Met Ahead of Target Date 1ST PHASE INITIATIVES TARGET ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL FY‟10 FY‟05 FY‟06 FY‟07 FY‟08 FY‟09 FY‟10 Return on Assets (ROA) (%)
Slide 22: Headline KPIs: 2nd Phase – Financial Indicators
BUSINESS STRATEGY & DIRECTION Headline KPIs : 2nd Phase TNB 20-Year Strategic Plan Continuous Monitoring of Headline KPIs during 2nd Phase Financial Indicators 1 Return on Assets 2 3 Company CPU Revenue from Non-Regulated (ROA)(%) (sen/kwh) Business (RM bn) % Sen/Kwh RM bn 6.0 34.0 4.0 4.7 4.9 4.5 3
Slide 23: Headline KPIs: 2nd Phase – Technical Indicators
BUSINESS STRATEGY & DIRECTION Headline KPIs : 2nd Phase TNB 20-Year Strategic Plan Continuous Monitoring of Headline KPIs during 2nd Phase Technical Indicators 1 Unplanned Outage Rate 2 T & D Losses (%) (UOR)(%) % % 8.0 7.1 10.0 9.7 9.5 6.2 9.0 6.0 8.4 8.2 4.0 3.5 2.9 2.7 8.0 2.0 0.0 6.0 FY'09 FY'10
Slide 24: Tariff
BNY MELLON NDR, NEW YORK, USA 4 TARIFF 24
Slide 25: Tariff History: Timeline
TARIFF History: Timeline Government reduced gas price Government increased gas price to to RM10.70/mmbtu. In support RM13.70/mmbtu. Another submission of Government efforts to In line with Government effort to to the Government introduce economic stimulus gradually remove subsidies package to mitiga
Slide 26: Electricity Tariff Review
TARIFF Electricity Tariff Review Approval date May 2006 Jun 2008 Feb 2009 Jun 2009 May 2011 Effective date Jun 2006 Jul 2008 Mar 2009 Jul 2009 Jun 2011 Quantum 12% 23 – 24% (3.7%) Neutral 7.1% Gas (RM/mmbtu) 6.40 14.31 10.70 10.70 13.70 Coal (USD/MT) 45.00 75.00 85.00* 85.00* 85.00* Average Tariff (
Slide 27: Benchmarking: Comparison with Regional Countries
TARIFF Benchmarking : Comparison with Regional Countries DOMESTIC COMMERCIAL INDUSTRIAL 27
Slide 28: Dividend
BNY MELLON NDR, NEW YORK, USA 5 DIVIDEND 28
Slide 29: Policy and Yield
DIVIDEND Policy and Yield 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 Interest Servicing Interim Dividend Paid: 10.0 sen Total FY‟13: 25.0
Slide 30: Outlook – Key Takeaways
BNY MELLON NDR, NEW YORK, USA 6 OUTLOOK – KEY TAKEAWAYS 30
Slide 31: Outlook FY2014
OUTLOOK – KEY TAKEAWAYS Outlook FY2014 Group‟s Performance for the FY Ending 31st August 2014 is Expected to Remain Stable 1 DEMAND 2 GAS VOLUME 3 COAL PRICE Improvement in gas supply with Melaka RGT Coal price is expected to Remains steady with the commissioned on 23/5/13. remain stable for the imp
Slide 32: Part Two
BNY MELLON NDR, NEW YORK, USA PART TWO 32
Slide 33: FY2013 Results Highlights
BNY MELLON NDR, NEW YORK, USA FY2013 RESULTS HIGHLIGHTS 33
Slide 34: Results Snapshots
RESULTS HIGHLIGHTS Results Snapshots 3-Month Ended 31st Aug 2013 (4th Quarter FY2013) • Net Profit before Forex Translation of RM0.84 billion (3QFY2013: RM1.38 billion). • Average Coal Price of USD80.8/mt (3QFY2013: USD84.4/mt). • EBITDA margin at 24.0% (3QFY2013: 30.7%). • Net Profit of RM0.22 bill
Slide 35: Adjusted Net Profit (Restated Fuel Cost Compensation)
RESULTS HIGHLIGHTS Adjusted Net Profit (Restated Fuel Cost Compensation) 21.8% Improvement in Adjusted Net Profit Before Forex Translation Mainly Attributed to Lower Coal Price • The Fuel Cost Sharing Mechanism was approved to address the current increased cost borne by Tenaga due to gas shortage. •
Slide 36: Year-on-Year Analysis (Restated Fuel Cost Compensation)
RESULTS HIGHLIGHTS Year-on-Year Analysis (Restated Fuel Cost Compensation for FY2012) Improved Net Profit Resulted from Lower Coal Price & Forex Translation Gain FY2012 RM mn FY2013 1QFY2013 2QFY2013 3QFY2013 4QFY2013 (Restated) Total Units Sold (Gwh) 102,131.5 105,478.9 26,070.4 26,058.7 25,880.7 2
Slide 37: System Weekly Peak Demand (Peninsula) FY2009 to FY2013
RESULTS HIGHLIGHTS System Weekly Peak Demand (Peninsula) for FY2009 to FY2013 37
Slide 38: Coal Requirement
RESULTS HIGHLIGHTS Coal Requirement Average Coal Price for FY2013 was at USD83.6/MT FY‟04 FY‟05 FY‟06 FY‟07 FY‟08 FY‟09 FY‟10 FY‟11 FY‟12 FY‟13 Average Coal Price Tonne (mn) (CIF) (USD/metric 34.0 49.8 52.8 45.3 76.4 90.2 88.2 106.9 103.6 83.6 tonne) 25.0 22.6 20.8 20.8 20.0 18.9 17.8 45% Ongoing ne
Slide 39: 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 40: 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 41: Thank You
BNY MELLON NDR, NEW YORK, USA THANK YOU www.tnb.com.my
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