Tenaga Nasional Bhd · MYX:TENAGA
Tenaga Nasional Bhd — Investor Presentation (November 2022)
21 slides from Tenaga Nasional Bhd's investor presentation, November 2022
Slide 1: Tenaga Nasional Berhad Presentation to Investors
TENAGA NASIONAL BERHAD PRESENTATION TO INVESTORS Investor Relations Group Finance Division November 2022
Slide 2: Overview Corporate Profile
Overview Corporate Profile TNB is the largest electricity utility company in Malaysia and a trailblazer in Sole Network & Retail Provider in the country’s energy transition Peninsular Malaysia Sabah Electricity Sdn Bhd (SESB) Our grid network & retail business are governed by (83% owned by TNB) the
Slide 3: New Energy Division Portfolio
Overview Corporate Profile We are also a global player; through our New Energy Division (NED), we strive to future proof our business by expanding our RE footprint and establishing strategic partnerships with leading RE players NED’S PORTFOLIO 2021 2016 • Equity stake: 100% • Equity stake: 30% • Cap
Slide 4: Composition of BOD
Overview Composition of BOD CHAIRMAN EXECUTIVE DIRECTOR/CEO DATO' SRI HASAN BIN ARIFIN DATO' INDERA IR. BAHARIN BIN DIN Senior Independent Non-Independent Independent Non-Executive Directors Non-Executive Directors Non-Executive Directors ONG AI LIN GOPALA KRISHNAN DATO' Ir. NAWAWI JUNIWATI BINTI DA
Slide 5: Financial Performance Overview
Results at a Glance Financial Performance Overview Fair 9MFY22 financial performance supported by the higher Group electricity demand of 7.2% year-on- year, in line with Malaysia economic growth REVENUE EBITDA PROFIT AFTER TAX +6.6% EBITDA margin (without ICPT) 43.0% 40.4% ICPT (without ICPT) 15,917
Slide 6: Technical Performance Overview
Results at a Glance Technical Performance Overview Solid generation and world-class network performance support our Group earnings Target 82.80% EAF performance secured generation 82.80% 83.84% assets’ capacity revenue Equivalent Plant Availability Factor, EAF (Generation) % 9MFY22 9MFY21 Internal 2
Slide 7: Dividend
Dividend We continue to offer long-term value for our shareholders by delivering sustainable dividends 56% 59% 56% 7.5% 7.7% 53% 47% DIVIDEND POLICY 3.9% 4.3% 2.5% as at June 2022 We will continue to honour our dividend policy of 30% to 60% dividend payout 50.0 ratio, based on the reported Consolida
Slide 8: Regulated Business
Regulatory Regulated Business Our regulated business is governed by the Incentive-Based Regulation (IBR) framework which provides stable returns to the Group while ensuring a more efficient energy sector The IBR mechanism provides: • Clear and transparent regulatory framework • Consistent and stable
Slide 9: IBR Regulatory Period (RP3) Parameters
Regulatory IBR Regulatory Period 3 (RP3) Parameters The Government has approved the RP3 parameters and we have secured higher CAPEX with a fair WACC for the next 3 years (2022-2024) Base Tariff sen/kWh 38.53 39.45 39.45 39.95 RP3 determination (2022 -2024) Regulated Business 11.77 12.40 13.65 13.75
Slide 10: ICPT Mechanism
Regulatory ICPT Mechanism To date, the Government has successfully managed the impact of fuel prices volatility for the past 16 ICPT* cycles since 2015 RP2 RP2 Extension RP3 RP1 (2015 – 2017) (2018 – 2020) (Jan 2021 – Jan 2022) (Feb 2022 – 2024) ICPT Implementation (2015 - 2022) 7,000 1,672 948 1,14
Slide 11: Malaysia's Journey Towards Net Zero Commitments
Global Shift Towards Net Zero Malaysia’s Journey Towards Net Zero Commitments The Malaysian Government’s commitment towards net zero at COP26; our Energy Transition Plan supports the nation’s climate commitments Key focus areas to facilitate the transition to carbon neutrality Malaysia Climate Encou
Slide 12: Energy Transition Plan: Net Zero & Coal Free by 2050
TNB’s Energy Transition Plan Net Zero & Coal Free by 2050 To future proof our business; Energy Transition Plan 2050 was launched in August 2021 outlining our bold aspiration to achieve net zero emissions and be coal free by 2050 TNB’s sustainability journey is anchored on "Reimagining TNB“ with ESG
Slide 13: Malaysian Generation Mix
TNB’s Energy Transition Plan Malaysian Generation Mix The nation's current generation mix reflects the diversification required for security of supply, and will continue to shift as we take a responsible approach towards energy transition Malaysian Generation Mix (%) Forecast Scenario under Net Zero
Slide 14: TNB's Fast-Track Sustainability Agenda
TNB’s Energy Transition Plan TNB’s Fast-Track Sustainability Agenda TNB’s fast-track sustainability agenda will see major shifts across the value chain in meeting our ESG commitment while ensuring business growth GenCo NED Grid EV GenCo aims to capture estimated ~USD7 bil equity investment by Regula
Slide 15: Energy Transition Plan Investment
TNB’s Energy Transition Plan Investment Pathway will require investment of 10-20 B MYR yearly over next 30 years Indicative TNB CAPEX3 (MYR B) Legend Green hydrogen hub Decarbonization trailblazer (new green tech)1 60 Retail Decarbonization trailblazer (conventionals) International RE champion2 Regu
Slide 16: EBIT Growth
TNB’s Energy Transition Plan EBIT Growth We will bring our emissions intensity to net zero while growing our EBIT by ~140% TNB GHG emissions intensity Projected EBIT 20,000 (tCO2e / MWh) 19.0 0.70 (RM bil) 0.59 0.60 16,000 Future0.50 Generation Sources & New Green Business 12,000 58% 0.40 8.0 0.30 8
Slide 17: Future Generation Sources & New Green Business
Latest Development Future Generation Sources & New Green Business To date, our future generation sources have made significant progress through healthy pipeline of projects; ensuring business growth while supporting the Group’s decarbonisation agenda Emission Avoidance COD (Equivalent to CO2 emissio
Slide 18: Grid of the Future
Latest Development Grid of the Future As for the network infrastructure, our continuous investment in grid modernisation will spur regional interconnection expansion while further strengthen our position in the Energy Transition space Regional interconnections RP3 Approved 13% (RM2.54 bil) Supportin
Slide 19: Winning the Customer
Latest Development Winning the Customer We continue to win customers trust, evidenced through robust growth seen in GSPARX and exciting developments in the Electric Vehicle (EV) space EV GSPARX (Charging Infrastructure & Platform) GSPARX is committed in generating new revenue stream to the Group as
Slide 20: Disclaimer
Disclaimer This presentation and discussion may contain forward looking statements by Tenaga Nasional Berhad related to financial trends for future periods. Some of the statements contained in this presentation or arising from this discussion which are not of historical facts are statements of futur
Slide 21: Thank You
THANK YOU For further enquiries, kindly contact us at: Investor Relations Office: Investor Relations Team: Investor Relations Ms. Sarah Keok Chui San Group Finance Division +603 2108 2126 Tenaga Nasional Berhad 4th Floor, TNB Headquarters [email protected] No.129, Jalan Bangsar, 59200 Kuala Lumpur,
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