TNB
Q2 FY2023
PERFORMANCE REPORT CARD
Group Performance Highlights
Delivering RT Aspirations
Accelerating Responsible Energy Transition
For Internal Circulation Only
1 GROUP PERFORMANCE HIGHLIGHTS
FINANCIAL | TNB recorded a reasonable performance in Q2 FY2023 driven by higher sales of electricity despite various challenges in its business environment
EBIT RM3.95 bn
Q2 Target: RM3.82 - 4.04 bn
FY2023 Target: RM7.64 - 8.08 bn
FUTURE GENERATION SOURCES
GENCO NED
RM0.41 bn RM0.13 bn
PAT RM1.20 bn
Q2 Target: RM1.29 - 1.56 bn FY2023 Target: RM2.57 - 3.12 bn
ROE 5.3%
FY2023 Target : 6.2 - 6.9%
GRID OF THE FUTURE
GRID DISTRIBUTION NETWORK
RM1.31 bn RM1.42 bn
WINNING THE CUSTOMER
RETAIL
RM0.15 bn
OTHERS**
RM0.54 bn
EBIT CONTRIBUTION BY BUSINESSES
Note: **EBIT contributed by subsidiaries and financial adjustment
ASSET GROWTH | TNB's assets from regulated and non-regulated businesses are continously growing in line with RT aspirations
GENERATION ASSET
(Installed: 23,281 MW / Equity: 15,967 MW)
TNB Domestic and International Installed Capacity: 23,281 MW
REGULATED ASSET (RM61.5 bn)
RM27.6 bn
Grid Regulated Asset
FY2022 : RM27.4 bn
RM34.1 bn
DN Regulated Asset
FY2022 : RM33.7 bn
RM0.16 bn*
Retail Regulated Asset
FY2022 : RM0.18bn
*reduced by higher depreciation
DISTRIBUTED GENERATION
294 MW
Retail Rooftop
FY2022 : 241 MW
78%
Domestic
International 22% 27,463 MW*
5,099 MW
* Equivalent to 66% of total generation
capacity in Malaysia (Total domestic
generation capacity = 27,463 MW)
Fuel Type Domestic
International Coal.........................................9,080 ..................1,650 Gas...........................................6,109 ..................1,265 Hydro......................................2,536
.....................318 Solar.............................................1.23
.....................391 NEM............................................ 294
..........................- Mini hydro....................................26
..........................- Biomass and Biogas....................15
..........................- Oil.................................................... - ..................1,190 Wind................................................ - .....................284 TOTAL 18,183 5,099
TNB Domestic and International Equity Capacity: 15,967 MW
Fuel Type Domestic
International Coal.........................................6,790 .....................418 Gas...........................................4,917 .....................368 92%
8%
Hydro...................................... 2,536
.......................82 Domestic
International
14,658 MW
1,310 MW
Solar..............................................80 .....................209 NEM............................................ 294
..........................- Mini hydro....................................26
..........................- Biomass and Biogas....................15
..........................- Oil.................................................... -
......................54 Wind................................................ -
.....................179 TOTAL 14,658
1,310
Total TNB Green Capacity (Installed): 3,987 MW
83%
Brown 19,294 MW
17% Green
3,987 MW
Coal Hydro 10,730 2,854
Gas Solar 7,374 514
Oil NEM 1,190 294
Mini hydro 26
Biomass and Biogas 15
Wind 284
CUSTOMER | TNB continues delivering exceptional services and gained positive brand perception amongst its ~10.7 million customers
Customer Acquisition 10.7 mn customers
Q4 2022: 10.6 mn customers (Including SESB)
Customer Experience Index 95%
FY2022: 95% FY2023 Target: 91 - 93%
Mainstream Media Impact Score
4.0%
FY2022: 4.1% FY2023 Target: 3.6 - 4.0%
OPERATIONAL | TNB continues providing high availability and reliability of electricity supply achieving its Q2 key technical performance indicator targets
EAF
System Minutes
SAIDI
Q2 Target:
26.5 - 24.0 mins
FY2023 Target: 53.0 - 48.0 mins
Q2 Target:
Q2 target:
81.77% - 85.44%
0.19 0.75 - 0.5 mins
84.91%
22.91 FY2023 Target:
mins FY2023 Target:
mins 81.78 - 84.85%
1.5 - 1.0 mins
Q2 Q2 Q2
ORGANISATIONAL
TNB remains committed in upholding excellent safety management and developing future leaders
No. of Fatality
Zero Fatality
FY2023 Target: 0 fatality
Lost Time Injury Frequency (LTIF)
Safety Excellence
Ready Successor for C-suites
75%
FY2023 Target: 75% - 90%
Q2
0.78
Q2
FY2023 Target: 1.50 - 1.00
Exceed Target
Meet Target Below Target
E
T
E
T
E
T
E
T
E
T
E
T
RORAB
FY2023 Target 7.2 - 7.3%
7.4%
RORAB
FY2023 Target 7.1 - 7.2%
CAPEX Utilisation FY2023 Target RM2.84 bn
CAPEX Utilisation FY2023 Target RM4.46 bn
System Availability FY2023 Target ≥99.78%
Smart Meter Installation FY2023 Target 2.85 - 3.0 mn
B T
B T
B
T
B T
B T
B T
2 DELIVERING RT ASPIRATIONS
FUTURE GENERATION SOURCES
GENCO
Revenue
M T
RM14.06 bn
Ensuring the operational excellence of our generating fleet remains the key driver in maximising the long-term profitability of TNB in an environmentally sustainable manner
Q2 Target: RM13.02 - 13.03 bn FY2023 Target: RM26.03 - 26.06 bn
NEW ENERGY DIVISION
REVENUE (RM mn)
YTD revenue of RM397mil has increased by 53% YoY mainly contributed by additional of three months revenue from CEI UK and revenue from LSS1 and LSS2 post consolidation into TRe group
Capacity Payment
M T
RM2.18 bn
Q2 Target: RM2.23 - 2.31 bn FY2023 Target: RM4.52 - 4.69 bn
EUOF
M T
5.10%
Q2 Target: 5.37 - 4.72% FY2023 Target: 5.37 - 4.72%
GRID OF THE FUTURE
|Grid and DN continuously play its critical role in TNB's financial and technical areas through providing sustainable energy security and reliability besides enabling efficient energy transition
DISTRIBUTION NETWORK
7.1% 7.2%
Q2 Target 7.8%
Q2 Actual
RM2.0 bn
Q2 Target RM2.02 bn
Q2 Actual
2.67 mn
Q2 Target 3.04 mn
Q2 Actual
GRID
7.2% 7.3%
Q2 Target Q2 Actual
RM0.91 bn
Q2 Target RM0.79 bn
Q2 Actual
>99.78%
Q2 Target 99.79%
Q2 Actual
PROJECT IN PIPELINE
PROJECT IN PIPELINE (OPERATIONAL & LATE STAGE ASSETS)
(EARLY-STAGE PROJECTS)
15 potential projects were explored consisting of ~3GW operational and development projects.
11 potential projects were explored consisting of ~10GW deal flow pipelines.
WINNING THE | Retail financial performance recorded a steady growth in Q2 in CUSTOMERS
both kwh and beyond kwh business
RETAIL
Regulated Revenue (RM bn)
M T
RM0.707 bn
Q2 Target FY2023 Target
RM0.68 - 0.69 mn RM1.35 - 1.38 mn
SUBSIDIARIES AS GROWTH CATALYST
Revenue
RM2.33 bn
Collection Revenue Parameter (%)
Beyond kWh Revenue (RM mn)
RM18.47 mn
Q2 Target FY2023 Target
RM17.55 - 20.8 mn RM35.1 - 41.6 mn
Q2 Target:
97 - 99%
FY2023 Target
97 - 99%
MT
96.60%
| Challenges in disruptions of global supply chain is still apparent and impacting Subsidiaries performance
EBIT ROIC
Q2 Q2 Q2
Q2 Target: RM2.31 - 2.45 bn Q2 Target: RM200 -209 mn FY2023 Target: RM4.91 - RM5.2 bn FY2023 Target: RM530 - 550 mn
Q2 Target: 4.5 - 4.7% FY2023 Target: 5.1 - 5.3%
RM232 mn
4.6%
Exceed Target
Meet Target Below Target
FUTURE PROOF REGULATION
Incentive Based Regulation (IBR)
As of 02 FY2023, TNB has fully recovered RM10.4 bn (Claim Jan-June 2023) out of RM10.4bn additional generation cost for 1H2023.
TNB continues to work closely with the government in the development of policy that helps to address the energy trilemma while ensuring a sustainable transition towards responsible energy
Malaysia Electricity Supply Industry (MESI)
The outcome of Future Proofing MESI Study by MyPower is aligned with TNB key focus areas comprises of:
1. Adoption of emerging technologies to
support energy transition 2. Grid - Third Party Access 3. Tariff - cross subsidy
4. 5th Generation PPA
5. Fuel - Security of supply 6. Independence of SB and
3
ACCELERATING RESPONSIBLE ENERGY TRANSITION (ET)
2
ET FY2023 Expected Strategy Outcome / Output
YTD Q2 Progress
Energy Sources - Future Generation Sources
1
Increase Renewable Energy
Reduce coal generation capacity
• RM400 mn EBIT
• 0.47GW - 1.22GW (excl. Hydro)
• Capacity Payment Uplift: RM230 mn
• EBIT for Turnaround: RM206 mn
• 1121 MWp (operationalised asset)
• 177 MWp (project in pipeline)
• Way forward on nuclear will be tabled to SETC in September
3
Carbon Management
• Carbon management strategy approved for business decisions
• TNBX has been appointed by NRECC to develop mREC framework for Malaysia market
Energy Vector – Grid of the Future
1
2
3
Smart Grid
Green Hydrogen
Energy Storage
• SGI score 73%
• Approval on Hydrogen venture strategy
• SGI Score 71.4%
• Internal study on Hydrogen being carried out by TNBR and Petronas Research. Study will be consolidated thru joint feasibility study
• Approval on Energy Storage strategy
• Award for 2 MWh BESS & Energy Management System at PTH
• Energy Storage Strategy has been presented to SETC on 12 July. SETC deliberated on the viability of the plan and prioritisation of pathway according to the best financial return as the critical next step
Energy Usage – Winning the Customer
1
2
3
4
5
Electrification of EV
Energy Efficiency
Prosumers
Digital Platform
Smart Cities
• EV Cust adoption: 4114 BEVs
• Total EV Charging Station: 40
• 8.1-8.5 CSI
• myTNBIjo incubated
• myTNBIjo Go-to-market
Q1 FY2024
• 80% progress of Property Master Plan Development (UNITEN & Prai)
• Fleet electrification: Tender for EV Pickup has been awarded to Weststar Maxus for 82 units Tender for 5 units of EV Bike for SSD has been awarded to Forward RT (BluShark)
• MELP to increase awareness on EE.
• To determine impact of soon to be tabled EE &
conservation act
• 145MWp installed
• RM71 mn revenue
• 273 MWp secured
• 70 MWp installed
• In the midst of finalising partnership agreement with Accenture
• EV Charging Platform (Go-To-U): Phase 1 - Installed software on 12 DCFC and 26 AC chargers
• UNITEN Master Layout Plan (MLP) approved by Majlis Perbandaran Sepang
Q2 FY2023 KEY EVENTS
12 April
Gsparx collaborate with AEON for the installation of rooftop solar PV systems across 40 AEON and AEON BiG shopping malls nationwide through Supply Agreement with Renewable Energy (SARE).
8 May 2023
TNB collaborate with Federation of Malaysia Consumer Associations (FOMCA) in organising the World Consumer Rights Day Seminar: Empowering Consumers Through Clean Energy Transition
26 May 23
• TRe-EHCMC MoU to explore potential renewable power generation technologies opportunities in Vietnam
• TNB REMACO-EVNNPS MoU to collaborate in potential energy-related services work in Vietnam, Cambodia, Laos, Myanmar, and Thailand
• TNB Genco-EDL MoU to explore the investment and renewable power generated offtaker and opportunity to export RE in Laos through the Laos-Thailand-Malaysia Power Integration Project (LTM-PIP)
7 May 2023
TNB sealed a Memorandum of Understanding with Glomac Berhad to form a strategic partnership to explore green energy opportunities
18 May 23
TNB's 33rd Annual General Meeting
1 June 23
Formation of a new Sustainability Division
23 June 23
• Gsparx announces exclusive offer of rooftop solar packages for residential customers
• Govt continues to uphold the ICPT mechanism for the next six months from 1 July until 31 December 2023