TENAGA NASIONAL BERHAD

CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2017

Group Company

Note 2017 2016 2017 2016

RM’million RM’million RM’million RM’million

Revenue 4 47,416.9 44,531.5 44,204.3 41,272.1

Operating expenses 5 (39,074.2) (36,171.0) (36,343.9) (33,297.5)
Other operating income 7 1,021.3 711.5 877.5 704.3
Operating profit 9,364.0 9,072.0 8,737.9 8,678.9
Foreign exchange gain/(loss) 8 7.9 (358.2) 3.8 (305.2)
Share of results of joint ventures 15(a) 25.0 26.0 0 0
Share of results of associates 16 103.3 67.3 0 0
Profit before finance cost 9,500.2 8,807.1 8,741.7 8,373.7
Finance income 9 237.6 299.0 216.9 201.1
Finance cost 9 (1,456.0) (1,039.3) (1,416.9) (1,097.4)
Profit before taxation and zakat 8,281.8 8,066.8 7,541.7 7,477.4
Taxation and zakat 10 (1,369.7) (746.0) (1,246.0) (716.4)
Profit for the financial year 6,912.1 7,320.8 6,295.7 6,761.0

Profit attributable to:

Integrated Annual Report 2017

- Owners of the Company 6,904.0 7,367.6 6,295.7 6,761.0

- Non-controlling interests 8.1 (46.8) 0 0
Profit for the financial year 6,912.1 7,320.8 6,295.7 6,761.0

Sen Sen

Earnings per share:

- Basic 11(a) 122.00 130.55
- Diluted 11(b) 121.52 130.16

156 The notes set out on pages 166 to 261 form an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF
PROFIT OR LOSS AND OTHER
Our
COMPREHENSIVE INCOME Busin
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2017 ess

Group Company

2017 2016 2017 2016

RM’million RM’million RM’million RM’million

Profit for the financial year 6,912.1 7,320.8 6,295.7 6,761.0 Busin
ess
Other comprehensive income/(expense) Cont
ext
Items that will not be reclassified subsequently to profit or loss:
Defined benefit plan actuarial gain/(loss) 24.7 (719.2) (17.1) (627.1)

Items that may be reclassified subsequently to profit or loss:

Perfor
Foreign currency translation differences (184.6) (5.0) 0 0
ma
Fair value of available-for-sale financial assets 33.3 0.1 33.2 0 nc
Share of other comprehensive loss of associates accounted for using e
the equity method (86.2) 0 0 0 Re

Total other comprehensive (expense)/income for the financial year (212.8) (724.1) 16.1 (627.1)
Total comprehensive income for the financial year 6,699.3 6,596.7 6,311.8 6,133.9
Sustai
Attributable to:
nabi
- Owners of the Company 6,691.2 6,643.5 6,311.8 6,133.9 lity
- Non-controlling interests 8.1 (46.8) 0 0 Stat
Total comprehensive income for the financial year 6,699.3 6,596.7 6,311.8 6,133.9 eme

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The notes set out on pages 166 to 261 form an integral part of these consolidated financial statements.
157
 TENAGA NASIONAL BERHAD
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 31 AUGUST 2017

Group Company

Note 2017 2016 2017 2016

RM’million RM’million RM’million RM’million

NON-CURRENT ASSETS
Property, plant and equipment (‘PPE’) 13 103,083.7 96,512.7 75,841.9 74,916.3
Subsidiaries 14 0 0 10,081.5 7,626.2
Joint ventures 15(a) 152.3 138.9 0 0
Associates 16 2,937.8 1,699.3 70.3 70.3
Goodwill on consolidation 17 211.0 211.0 0 0
Investment in unquoted debt security 18 275.7 15.4 0 15.4
Tax recoverable 1,765.1 1,693.2 1,765.1 1,693.2
Deferred tax assets 19 77.0 31.2 0 0
Long term receivables 20 549.7 620.3 694.1 721.3
Amounts due from subsidiaries 21(a) 0 0 455.0 534.7
Finance lease receivable 22(a) 13.8 13.6 0 0
Prepaid operating leases 23(a) 5,353.7 5,172.7 5,241.2 4,990.0
Available-for-sale financial assets 24 71.9 38.6 71.2 38.0
Integrated Annual Report 2017

114,491.7 106,146.9 94,220.3 90,605.4

CURRENT ASSETS
Non-current assets held-for-sale 0 31.6 0 0
Inventories 25 828.7 792.3 261.9 236.1
Receivables, deposits and prepayments 26 8,962.2 8,276.8 6,119.1 5,875.4
Tax recoverable 83.8 125.0 0 0
Finance lease receivable 22(a) 0.7 0.7 0 0
Prepaid operating leases 23(a) 139.1 150.1 129.0 130.9
Amounts due from subsidiaries 21(b) 0 0 3,097.3 1,996.8
Amounts due from joint ventures 0.6 6.0 0 0
Amounts due from associates 226.3 202.4 1.0 18.4
Derivative financial instruments 27 1.2 16.8 0 3.5
Financial assets at fair value through profit or loss (‘FVTPL’) 28 12,221.9 13,182.4 6,097.9 4,693.3
Deposits, bank and cash balances 29 5,056.2 3,971.2 3,335.4 1,953.5
27,520.7 26,755.3 19,041.6 14,907.9

158 The notes set out on pages 166 to 261 form an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 31 AUGUST 2017 Our
Busin
ess

Group Company

Note 2017 2016 2017 2016

RM’million RM’million RM’million RM’million

CURRENT LIABILITIES Busin

Payables 30 (10,245.0) (11,409.1) (6,641.1) (8,786.9) ess
Cont
Finance lease payables 22(b) (329.6) (661.6) (1,149.1) (1,417.2) ext
Derivative financial instruments 27 (10.9) (12.9) 0 (0.4)
Deferred income 31 (1,460.9) (1,139.2) (1,384.9) (1,132.9)
Amounts due to subsidiaries 21(b) 0 0 (1,258.1) (1,029.3)
Amounts due to associates (636.9) (559.5) (628.9) (549.8) Perfor
ma
Current tax liabilities (85.2) (50.6) (58.7) (47.0)
nc
Employee benefits 32 (749.9) (762.3) (738.3) (747.6) e
Short term borrowings 33 (1,808.1) (1,488.8) (290.4) (242.0) Re
(15,326.5) (16,084.0) (12,149.5) (13,953.1)
NET CURRENT ASSETS 12,194.2 10,671.3 6,892.1 954.8
TOTAL ASSETS LESS CURRENT LIABILITIES 126,685.9 116,818.2 101,112.4 91,560.2 Sustai
NON-CURRENT LIABILITIES nabi
Borrowings 34 (37,038.4) (32,817.9) (15,686.6) (10,520.9) lity
Stat
Consumer deposits 35 (5,073.4) (4,551.1) (4,778.2) (4,284.0)
eme
Finance lease payables 22(b) (4,988.9) (5,287.2) (10,722.4) (11,724.7)
Deferred income 31 (993.9) (1,165.6) (691.5) (920.7)
Other liabilities 36 (1,413.1) (1,366.8) (631.7) (581.6)
Deferred tax liabilities 19 (7,728.3) (6,961.9) (6,339.9) (5,472.3) A
Fra
Employee benefits 32 (10,887.3) (11,048.8) (10,442.5) (10,579.8)
me
Government development grants 37 (977.8) (1,019.2) 0 0 wo
(69,101.1) (64,218.5) (49,292.8) (44,084.0) rk
TOTAL NET ASSETS 57,584.8 52,599.7 51,819.6 47,476.2
EQUITY Fina
Share capital 38 11,124.9 5,643.6 11,124.9 5,643.6 ncial
State
Share premium 38 0 5,382.2 0 5,382.2 ment
s
Other reserves 39 (6,128.8) (5,967.2) (5,190.9) (5,258.2)
Retained profits 52,115.3 47,330.0 45,885.6 41,708.6
CAPITAL AND RESERVES ATTRIBUTABLE TO OWNERS OF
THE COMPANY 57,111.4 52,388.6 51,819.6 47,476.2
NON-CONTROLLING INTERESTS (‘NCI’) 473.4 211.1 0 0
TOTAL EQUITY 57,584.8 52,599.7 51,819.6 47,476.2

Addi
tional
Infor
matio
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The notes set out on pages 166 to 261 form an integral part of these consolidated financial statements.
159
 TENAGA NASIONAL BERHAD
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2017

Attributable to owners of the Company

Non
Ordinary Share Other Retained controlling Total
Note shares premium reserves profits interests equity
RM’million RM’million RM’million RM’million RM’million RM’million

Group
At 1 September 2016 5,643.6 5,382.2 (5,967.2) 47,330.0 211.1 52,599.7
Profit for the financial year 0 0 0 6,904.0 8.1 6,912.1
Foreign currency translation reserve 39 0 0 (184.6) 0 0 (184.6)
Fair value of available-for-sale
financial assets 39 0 0 33.3 0 0 33.3
Share of other comprehensive loss of
associates accounted for using the
equity method 39 0 0 (86.2) 0 0 (86.2)
Employee benefits reserve 39 0 0 24.7 0 0 24.7
Total comprehensive (expense)/
income for the financial year 0 0 (212.8) 6,904.0 8.1 6,699.3
Long Term Incentive Plan (‘LTIP’):
- share-based payment expense 39 0 0 237.1 0 0 237.1
Integrated Annual Report 2017

- shares issued 38 99.1 0 (185.9) 86.8 0 0

Dividend paid:
- Final for FY2016 12 0 0 0 (1,243.5) 0 (1,243.5)
- Interim for FY2017 12 0 0 0 (962.0) 0 (962.0)
Capital contribution owing to NCI 0 0 0 0 254.6 254.6
Dividend paid to NCI 0 0 0 0 (0.4) (0.4)
Total transactions with owners 99.1 0 51.2 (2,118.7) 254.2 (1,714.2)
Transition to no-par value
regime on 31 January 20171 5,382.2 (5,382.2) 0 0 0 0
At 31 August 2017 11,124.9 0 (6,128.8) 52,115.3 473.4 57,584.8
1
The Companies Act 2016 (‘Act’), which came into effect on 31 January 2017, abolished the concept of authorised share capital and par value of share
capital. Consequently, the amounts standing to the credit of the share premium account become part of the Company’s share capital pursuant to the
transitional provisions set out in Section 618(2) of the Act. Notwithstanding this provision, the Company may within twenty-four (24) months from the
commencement of Section 74 of the Act, use the amount standing to the credit of its share premium account of RM5,382,186,956.74 for purposes as set
out in Section 618(3) of the Act. There is no impact on the number of ordinary shares in issue or the relative entitlement of any of the members as a result
of this transition.

160 The notes set out on pages 166 to 261 form an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2017 Our
Busin
ess

Attributable to owners of the Company

Non
Ordinary Share Other Retained controlling Total
Note shares premium reserves profits interests equity
RM’million RM’million RM’million RM’million RM’million RM’million
Busin
Group ess
Cont
At 1 September 2015 5,643.6 5,382.2 (5,416.9) 41,599.1 258.9 47,466.9 ext
Profit for the financial year 0 0 0 7,367.6 (46.8) 7,320.8
Foreign currency translation reserve 39 0 0 (5.0) 0 0 (5.0)
Fair value of available-for-sale
financial assets 39 0 0 0.1 0 0 0.1 Perfor
Employee benefits reserve 39 0 0 (719.2) 0 0 (719.2) ma
Total comprehensive (expense)/ nc
e
income for the financial year 0 0 (724.1) 7,367.6 (46.8) 6,596.7
Re
LTIP share-based payment expense 39 0 0 244.6 0 0 244.6
Dividend paid:
- Final for FY2015 0 0 0 (1,072.3) 0 (1,072.3)
Sustai
- Interim for FY2016 12 0 0 0 (564.4) 0 (564.4)
nabi
Gross obligation under put option 39 0 0 (70.8) 0 0 (70.8) lity
Dividend paid to NCI 0 0 0 0 (1.0) (1.0) Stat
Total transactions with owners 0 0 173.8 (1,636.7) (1.0) (1,463.9) eme

At 31 August 2016 5,643.6 5,382.2 (5,967.2) 47,330.0 211.1 52,599.7

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The notes set out on pages 166 to 261 form an integral part of these consolidated financial statements.
161
TENAGA NASIONAL BERHAD
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2017

Non-distributable Distributable

Total
Note equity
RM’million
Ordinary Share Other Retained
shares premium reserves profits
RM’million RM’million RM’million RM’million

Company
At 1 September 2016 5,643.6 5,382.2 (5,258.2) 41,708.6 47,476.2
Profit for the financial year 0 0 0 6,295.7 6,295.7
Fair value of available-for-sale financial assets 39 0 0 33.2 0 33.2
Employee benefits reserve 39 0 0 (17.1) 0 (17.1)
Total comprehensive income for the financial year 0 0 16.1 6,295.7 6,311.8
LTIP:
- share-based payment expense 39 0 0 237.1 0 237.1
- shares issued 38 99.1 0 (185.9) 86.8 0
Dividend paid:
- Final for FY2016 12 0 0 0 (1,243.5) (1,243.5)
Integrated Annual Report 2017

- Interim for FY2017 12 0 0 0 (962.0) (962.0)

Total transactions with owners 99.1 0 51.2 (2,118.7) (1,968.4)
Transition to no-par value regime
on 31 January 20171 5,382.2 (5,382.2) 0 0 0
At 31 August 2017 11,124.9 0 (5,190.9) 45,885.6 51,819.6

At 1 September 2015 5,643.6 5,382.2 (4,875.7) 36,584.3 42,734.4

Profit for the financial year 0 0 0 6,761.0 6,761.0
Employee benefits reserve 39 0 0 (627.1) 0 (627.1)
Total comprehensive (expense)/income for the
financial year 0 0 (627.1) 6,761.0 6,133.9
LTIP share-based payment expense 39 0 0 244.6 0 244.6
Dividend paid:
- Final for FY2015 0 0 0 (1,072.3) (1,072.3)
- Interim for FY2016 12 0 0 0 (564.4) (564.4)
Total transactions with owners 0 0 244.6 (1,636.7) (1,392.1)
At 31 August 2016 5,643.6 5,382.2 (5,258.2) 41,708.6 47,476.2
1
The Companies Act 2016 (‘Act’), which came into effect on 31 January 2017, abolished the concept of authorised share capital and par value of share
capital. Consequently, the amounts standing to the credit of the share premium account become part of the Company’s share capital pursuant to the
transitional provisions set out in Section 618(2) of the Act. Notwithstanding this provision, the Company may within twenty-four (24) months from the
commencement of Section 74 of the Act, use the amount standing to the credit of its share premium account of RM5,382,186,956.74 for purposes as set
out in Section 618(3) of the Act. There is no impact on the number of ordinary shares in issue or the relative entitlement of any of the members as a result
of this transition.
162 The notes set out on pages 166 to 261 form an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2017 Our
Busin
ess

Group Company

2017 2016 2017 2016

RM’million RM’million RM’million RM’million

CASH FLOWS FROM OPERATING ACTIVITIES Busin

Profit for the financial year 6,912.1 7,320.8 6,295.7 6,761.0 ess
Cont
Adjustments for: ext
Taxation and zakat 1,369.7 746.0 1,246.0 716.4
Property, plant and equipment (‘PPE’):
- Depreciation 6,105.0 5,722.2 5,219.2 4,951.2
- Written off 32.3 43.2 23.2 43.2 Perfor
0.3 0.4 ma
- Loss/(Gain) on disposals (1.5) (1.5)
nc
Provision for post-employment benefits 743.8 738.4 695.0 711.0 e
Provision for LTIP 237.1 244.6 188.9 194.6 Re
Foreign exchange translation loss 13.7 390.1 4.6 341.8
Gain on:
- Disposal of non-current assets held-for-sale 0 (2.5) 0 (2.5) Sustai
- Redemption of redeemable preference shares in subsidiaries 0 0 (0.5) (31.1) nabi
(25.0) 0 lity
Share of results of joint ventures (26.0) 0
Stat
Share of results of associates (103.3) (67.3) 0 0 eme
Dividend income (3.1) 0 (69.7) (46.6)
Interest income (258.5) (269.1) (224.2) (316.6)
Interest on borrowings 923.0 521.0 432.7 12.7
(1,093.7) (673.8) A
Release of deferred income (1,420.0) (968.5)
Fra
Release of Government development grants (50.3) (50.2) 0 0 me
Allowance for impairment: wo
- Receivables 667.2 686.6 630.2 680.7 rk

- Investment in subsidiary 0 0 21.4 0

- Amounts due from subsidiaries 0 0 26.7 21.6 Fina
ncial
- Amounts due from associate 0 22.3 0 22.3 State
9.2 0 ment
- Amounts due from joint ventures 28.7 0 s
Reversal of impairment:
- Receivables (152.9) (151.0) (144.9) (137.8)
- Amounts due from subsidiaries 0 0 (45.8) (120.4)
- Amounts due from associate (22.3) 0 (22.3) 0
Changes in fair value of derivatives 1.5 1.3 1.5 0.6
Allowance for inventories obsolescence 299.5 258.9 299.5 258.9
Write-back of inventories obsolescence (297.6) (257.1) (297.6) (257.1)
Inventories written off 43.2 27.5 43.2 27.5
Changes in fair value and accretion of interest 48.4 (43.8) 10.2 127.8
15,399.3 14,463.1 13,659.6 12,989.2

Addi
tional
Infor
matio
n

The notes set out on pages 166 to 261 form an integral part of these consolidated financial statements.
163
 TENAGA NASIONAL BERHAD
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2017

Group Company

2017 2016 2017 2016

RM’million RM’million RM’million RM’million

CASH FLOWS FROM OPERATING ACTIVITIES (CONTINUED)

Inventories (81.5) 22.2 (70.9) (10.7)
Receivables (1,331.5) (698.6) (972.3) (1,132.1)
Payables (1,737.1) (390.4) (3,311.7) 414.9
Subsidiaries balances 0 0 (1,483.7) (638.0)
Associates balances 82.8 (21.9) 118.8 36.6
Joint ventures balances (3.8) (8.8) 0 0
Cash generated from operations 12,328.2 13,365.6 7,939.8 11,659.9
Post employment benefits paid (898.4) (815.4) (882.6) (795.9)
Contributions received 1,243.7 1,099.1 696.6 727.8
Consumer deposits received 522.3 363.8 494.2 345.3
Taxation and zakat paid (639.8) (720.6) (433.2) (473.5)
Net cash flows generated from operating activities 12,556.0 13,292.5 7,814.8 11,463.6

CASH FLOWS FROM INVESTING ACTIVITIES

Integrated Annual Report 2017

Cash considerations paid to acquire:

- Associates (1,387.9) (1,044.6) 0 0
- Unquoted debt security (338.0) 0 0 0
Additional investments in:
- Subsidiaries 0 0 (1,266.7) (1.0)
- FVTPL (69,330.5) (72,325.1) (66,302.0) (62,340.0)
Proceeds from redemptions:
- Redeemable preference shares in subsidiaries 0 0 7.1 108.1
- Unquoted debt security 62.3 0 0 0
Disposals of FVTPL 70,488.7 65,893.6 65,021.0 61,434.0
Dividend income received 53.7 66.9 68.5 46.6
Interest income received 105.9 117.3 34.7 18.2
Property, plant and equipment:
- Additions (12,519.7) (11,142.8) (5,975.2) (6,336.9)
- Proceeds from disposals 182.9 35.9 126.3 11.5
Proceeds from disposal of non-current assets held-for-sale 0 2.9 0 2.9
Advances granted to subsidiaries 0 0 (466.3) (1,596.5)
Repayment of advances from subsidiaries 0 0 62.3 735.3
Net cash flows used in investing activities (12,682.6) (18,395.9) (8,690.3) (7,917.8)

164 The notes set out on pages 166 to 261 form an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2017 Our
Busin
ess

Group Company

Note 2017 2016 2017 2016

RM’million RM’million RM’million RM’million

CASH FLOWS FROM FINANCING ACTIVITIES Busin

Government development grants received 27.0 74.1 0 0 ess
Cont
Long term borrowings: ext
- Drawdowns 5,260.0 10,446.8 5,137.3 1,185.0
- Repayments (749.2) (1,410.1) (126.7) (1,218.7)
Short term borrowings:
- Drawdowns 814.0 969.4 0 0 Perfor
ma
- Repayments (851.2) (942.7) 0 0
nc
Interests paid (1,084.4) (890.3) (533.0) (481.5) e
Dividends paid to shareholders (2,205.5) (1,636.7) (2,205.5) (1,636.7) Re
Dividends paid to NCI (0.4) (1.0) 0 0
Net decrease/(increase) in debt reserve accounts 4.5 (16.1) 0 0
Net decrease/(increase) in cash at bank, held in trust 11.9 (54.4) 0 0 Sustai
Net cash flows generated from/(used in) financing activities 1,226.7 6,539.0 2,272.1 (2,151.9) nabi
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,100.1 1,435.6 1,396.6 1,393.9 lity
Stat
EFFECT OF CHANGES IN FOREIGN CURRENCY 1.3 (6.2) (14.7) 7.8
eme
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF
THE FINANCIAL YEAR 3,411.5 1,982.1 1,953.5 551.8
CASH AND CASH EQUIVALENTS AT THE END OF THE
FINANCIAL YEAR 29 4,512.9 3,411.5 3,335.4 1,953.5 A
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The notes set out on pages 166 to 261 form an integral part of these consolidated financial statements. 165