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TNB Handbook Period Ended Dec17
TNB Handbook Period Ended Dec17
TNB Handbook Period Ended Dec17
Prepared by:
COE Investor Relations
CONTENTS
1. INTRODUCTION TO TENAGA
2. INCENTIVE BASED REGULATION (IBR)
3. BUSINESS STRATEGY & DIRECTION
4. DIVIDEND POLICY
5. FINANCIAL HIGHLIGHTS
2
INTRODUCTION TO TENAGA
INSTALLED CAPACITY
6.4% TNB : 54.3%
IPP : 45.7% Period
FY’14 FY’15 FY’16 FY’17 Ended
Dec’17
10% 37.2% TNB - Peninsula
Installed Capacity 10,814 11,708 12,904 12,880 13,108
48% (MW)
42%
Total units sold (Gwh) 108,102 110,837 115,505 116,586 39,562
4
INTRODUCTION TO TENAGA
Industry Regulatory Framework
PRIME MINISTER
/CABINET
Holds
‘Golden’
Share
28.1%
Ministry of Finance/ MINISTRY of ENERGY,
SEDA
GREEN TECHNOLOGY
Khazanah Nasional Berhad Malaysia
AND WATER (KeTTHA)
33.7%
14.1% 24.1%
Other Corporations &
Govt. Agencies :
ECONOMIC PLANNING UNIT (EPU)
Public Foreign
EPF 11.8% - Develops and complements
Privatisation Policy
PNB 14.6% ENERGY COMMISSION - Evaluates and selects IPPs
Others 7.3% (Regulator) - Recommends ESI policies
- Promote competition
- Protect interests of
consumers Policy Maker
Shareholders - Issue licenses
- Tariff regulation
As at Dec’17
1. INTRODUCTION TO TENAGA
2. INCENTIVE BASED REGULATION (IBR)
3. BUSINESS STRATEGY & DIRECTION
4. DIVIDEND POLICY
5. FINANCIAL HIGHLIGHTS
6
INCENTIVE BASED REGULATION (IBR)
The Move Towards Better Regulation
*Source: EC 8
INCENTIVE BASED REGULATION (IBR)
Imbalance Cost Pass-Through (ICPT) Comprises Two Components
Generation Specific
Fuel Cost Pass Through
Cost Adjustment
(FCPT)
(GSCPT)
9
TNB REMAINS NEUTRAL FROM FUEL FLUCTUATION
Incentive Based Regulation (IBR) & Imbalanced Cost Pass-Through (ICPT)
Jan Jul Dec Jan Mar Jun Jul Dec Jan Jun Jul Dec Jan Jun Jul Dec Jan
P1 P2 P3 P4 P5 P6 P7 P8 RP2
RM5.4 billion
Total ICPT Rebate Approved to be Passed
Through to Customers up to December 2017
Source: Regulatory Economics & Planning, TNB
* Comprises of: RM 523.23 million total imbalance cost for period Jan- Jun 2017 and RM 780 million to continue the current ICPT rebate of 1.52 sen/kWh.
10
INCENTIVE BASED REGULATION (IBR)
IBR ENTITIES
1
In RP1, these 2 entity are grouped as
Price –Cap entity
11
INCENTIVE BASED REGULATION (IBR)
BASE TARIFF
Average Tariff by IBR Entities (sen/kwh)
39.45
Base Tariff
38.53
46.93
Commercial
47.92
36.85
Industrial
36.15
32.95
Domestic
31.66
RP2 RP1 12
INCENTIVE BASED REGULATION (IBR)
WACC, RAB, CAPEX & OPEX
No Item RP2
1. WACC 7.3%
CAPEX
3. RP2 Approved CAPEX = RM18.8 bn
13
INCENTIVE BASED REGULATION (IBR)
GENERATION MIX
RP1 RP2
1%
1% 0.1%
5% 4%
4%
44% 33%
61%
47%
14
CONTENTS
1. INTRODUCTION TO TENAGA
2. INCENTIVE BASED REGULATION (IBR)
3. BUSINESS STRATEGY & DIRECTION
4. DIVIDEND POLICY
5. FINANCIAL HIGHLIGHTS
15
TNB 2025 GROWTH ASPIRATION
Aspire to Grow our EBIT to RM20.0 billion by 2025 through Domestic & International
Investment
16
SHAPING SUSTAINABLE FUTURE
Our Strategic Plan 2017
3 STRATEGIC PILLARS
17
EXPANDING GLOBAL FOOTPRINT TO ACHIEVE ASPIRATION
TNB is currently present in more than 5 countries
18
INTERNATIONAL ACQUISITION
Four International Acquisitions to Support Aspiration
30% 30%
Equity interest of GAMA Enerji A.S. Equity interest of GMR Energy Limited.
Assets include a 840MW natural gas- Assets include 2,298MW coal, gas and
fired plant and 117.5MW wind plants solar plants.
50% 80%
Equity interest of Vortex Solar Equity interest of GVO Wind Limited &
Investments S.a.r.l. Blumerang Capital Limited
“TNB is committed to support the national green agenda and minimise the
environmental impact of our business by applying sustainable, efficient operations and
delivering green energy through the application of
appropriate technologies and investments”
TNB RE Targets
by 2025
1,700MW
Actual as at to date
280MW
21
BUILDING RENEWABLE ENERGY PORTFOLIO FOR
GREENER FUTURE
50MW and 30MW Large Scale Solar (LSS) Photovoltaic Plants
50MW 30MW
LSS Photovoltaic Plant LSS Photovoltaic Plant
22
CONTENTS
1. INTRODUCTION TO TENAGA
2. INCENTIVE BASED REGULATION (IBR)
3. BUSINESS STRATEGY & DIRECTION
4. DIVIDEND POLICY
5. FINANCIAL HIGHLIGHTS
23
FY2017 MARKS THE HIGHEST DIVIDEND PAYOUT TO DATE
Continue to Maximise Shareholders Value Through Consistent and Sustainable Dividend
Payout Ratio at 50%
Dividend Policy
Distribution of dividend is based on 30% to 60% dividend payout ratio, based on the reported Consolidated
Net Profit Attributable to Shareholders After Minority Interest, excluding Extraordinary, Non-Recurring items
24
CONTENTS
1. INTRODUCTION TO TENAGA
2. INCENTIVE BASED REGULATION (IBR)
3. BUSINESS STRATEGY & DIRECTION
4. DIVIDEND POLICY
5. FINANCIAL HIGHLIGHTS
25
FINANCIAL HIGHLIGHTS
Solid Finish for a Short Financial Year
5.20
12.55 12.46
11.24 11.16 11.61
4.30
3.79 3.89 3.86
3.49
2.74 2.02
Period Ended
Aug’17
31 Dec’17
* Gross revenue of all subsidiaries excluding SESB, KEV, TNBJ & TNB Capital 28
FINANCIAL HIGHLIGHTS
Growing Market Capitalization
RM105.5bn
RM86.5bn Malayan
Banking Bhd
RM80.2bn Tenaga
Nasional Bhd
RM61.6bn Public bank Bhd
RM60.3bn Petronas Chemicals
Group Bhd
RM49.7bn CIMB Group
+7.1%
Holdings Bhd
RM48.3bn Axiata
IHH Group Bhd
RM46.9bn
Healthcare Bhd
RM40.8bn Maxis Bhd
RM39.7bn Sime Darby
Plantation Bhd
DiGi.Com Bhd
TNB Latest Market Cap. RM89.2bn (2nd), as at 26th Feb’18 29
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 confidential in nature. TNB has the sole copyright to such
IR OFFICERS:
Prepared by:
CoE Investor Relations