TNB FY2021 Report Card

TNB
FY2021
PERFORMANCE REPORT CARD
• Group Performance Highlights • Delivering RT Value Creations • Delivering RT Enablers
• “Better World · Brighter Lives”








3 DELIVERING RT ENABLERS
CAPITAL ALLOCATION & VALUE CREATION
TNB Capital Allocation framework will be introduced to drive value creation and balance return and risks at group level
Strategy
Setting medium to long term aspirations, priorities and strategic themes
1
Management 4 Cycle 3
Performance review
Stock-take of previous year’s performance and discussion of forward-looking remedial actions
Target and KPI setting
KPIs set for overall organization based on business plan and AOP, and cascaded to individuals
Strategic
5
Planning 2 & Performance
Business Plan
Rolling executable plans with clear targets, initiatives, resource requirements and implementation plans
Budget and AOP
Translation of business plans to annual budgeting and annual operating plans
CORPORATE AND ORGANIZATION STRUCTURE
Corporate Re-organization
- Merger of Corporate Services Division & TGBS - Merger of Subsidiary Management Division with
Strategy & Ventures Division
- Restructuring of International Asset Group (IAG)
TNB Corporate Structure and New Operating Model are continuously reviewed and enhanced to accelerate delivery of Reimagining TNB strategic pillars
as New Energy Division (NED)
DIGITAL AND DATA ANALYTICS
7
key initiatives as foundation to support RT pillars
Corporate Structure and New Operating Model
Operational Structure Review
- Addressing capacity and capabilities demand through continuous collaboration with Corporate & BEs on future structure change
- Quarterly monitoring on TNB Headcounts against IBR RP and RT approved numbers
People Policy & Guidelines
Establishment of:
- People mobility policy
- People mobility guidelines for international duty - Pre-boarding to post off-boarding guidelines for
international duty
TNB digital and data analytics implemented across divisions focusing on 7 key initiatives
1. Process Automation
• Desktop Automation platform established
• 16 Robotic Process Automation (RPA) deployed to handle repetitive, high volume and rule-based digital operation tasks
2. Application Programming
Interface (API)
API CoE formed to drive the integration of strategy, governance, platform and core capabilities
Pilot Studio launched to develop API capabilities and accelerate the above integration initiatives
3. Cloud Transformation
• A robust and secure cloud architecture established with aim to create value through strategic migration to cloud platforms
4. Enterprise Data Governance (EDG)
• Corporate guidelines on data governance published to ensure security and quality of TNB data assets
• Surpassed FY2021 data
maturity assessment target of 2.5
5. Data Analytics
6. Network of the Future (NoTF)
• NoTF Masterplan established -
a holistic telecommunication strategy framework to ensure a reliable, secure and future-ready internal telecommunication network infrastructure
7.
• • •
Cyber Security
Zero disruption to electricity supply and TNB operations due to cyber attack
Continuous improvement to enhance cyber resiliency of IT and OT systems throughout TNB A secure remote-working environment enabled for staff
• Strategic partners engaged for capability building to expedite analytics implementation
• Analytics successfully embedded in various platforms, e.g. in load profile analysis
• •
CULTURE, CAPABILITIES AND PERFORMANCE MANAGEMENT
TNB culture adoption enhanced through continuous communications
• TNB Change Engagement Circle (CEC) plays key role in driving culture adoption
• 95% of TNB Reimagining Culture (RC) plan executed including
Pelaksanaan CEO Turun Padang & Penganugerahan Wira Budaya • TNB employees donated RM4.03mn under Tabung Warga TNB
Prihatin during MCO
Stronger succession planning for C-suites and key positions
• TNB Succession Management Framework approved by Board Nomination and Remuneration Committee (BNRC) in Q3 2021
Performance management, talent management and adoption of TNB core values are reinforced to continuously sustain high performance
Workforce capability enhanced through online platform
• Learning and Development Policy strengthened with incorporation of Digital Learning framework • E-Learning by ILSAS conducted through 1,479 sessions with more than 25k participants
Culture Talent
Capabilities
Performance Management
• 2,178 Learning Journey of various job functions established
• 5,202 job matching completed under TNB Reskilling Malaysia program by ILSAS
TNB performance management reinforced to accelerate delivery of business outcomes
• 75% of C-suites having at least one ready successor
• Succession planning for key positions (SGM level) implemented at all divisions
• JEK performance review enhanced emphasizing forward looking discussion and steering outcomes
• Strategy driven KPI extended and rolled down to all subsidiaries
• Newtop-downapproach&reviewerprocessimplementedforFY2021YearEndEvaluation(YEE)
Capital Allocation
• Capital Allocation Strategy as guidance in developing TNB’s business plan
• Allocate available capital to optimize TNB’s risk and return profile


4 “BETTERWORLD·BRIGHTERLIVES”
ENHANCING VALUE TO TNB is committed to enhance value and maintain strong relationships with our
STAKEHOLDERS
Investors & Government
RM2.29bn
total dividend payout to shareholders
RM53.5bn
6th largest market capitalisation on KLSE index
RM743.8mn
taxation and zakat paid benefiting rakyat and nation
Community & Society
Well-being
132 families benefited from Baiti Jannati and Rumah Mesra Rakyat Programme
> RM4mn
donated to Tabung Warga Prihatin by ~15k Warga TNB
AWARDS
& RECOGNITIONS
Brand & Global Rankings
investors, customers, employees, vendors and the community at large
Customers
RM517mn
government discount disbursed to ~8.3mn customers under PERMAI, PEMERKASA & PEMULIH
RM15mn
rebates on electricity bills for 148k customers affected by floods
419 communication channels established with various stakeholders for convenience of our customers
1,698 graduates produced by UNITEN with 94.5% employability rate
1,671 students sponsored with scholarships and convertible loans worth
RM65.9mn
to pursue tertiary education
Employees
RM65.5mn
invested for employee training and development
740 employees benefited from contract staff absorption policy
Certified professional qualifications
410 MBA, 49 PhD,
382 Professional Engineer (Ir.) and 348 Competent Engineers
RM4mn
contributed to Malaysian Hockey Confederation (MHC)
RM180k
Strategic sponsorship to Asia's No 1 tower runner
Vendors & Suppliers
RM9.8bn
worth of contracts awarded to local vendors
809 vendors participated in Vendor Development Programme (VPD)
88%
Vendors Satisfaction Score
Environment
RM52k
contributed in support of firefly conservation efforts
1,344 trees
planted under Mangrove Planting initiative
Education
Sports
TNB's excellence is continuously recognised at domestic and international level Awards & Recognitions
• Brand of the Year 2021 from World Branding Awards
• Ranked 2nd in Strongest Brands and 16th in Most Valuable
Utilities Brands from 2021 Brand Finance Utilities 50
• Ranked 79th in 2021 S&P Global Platts Top 250 Global
Energy Company
TNB SUSTAINABILITY PATHWAY 2050 (SP2050)
Our Journey Towards SP2050
Achieve Net Zero and Coal-Free by 2050, 35% emission intensity reduction by 2035
SP2050 Strategic Pillars
Evolve the Grid and Grow Renewables
• 2021 ASEAN Coal Awards for Jimah East Power
• 2021 Malaysia Technology Excellence Awards
• 2021 CIO Circle of Excellence Awards
• Bronze in the 2021 Employee Experience Awards
• 2 gold and 1 silver award in the 34th Annual Report Competition
International Awards
TNB is committed to embed and drive sustainability (ESG) agenda in line with global effort to collaboratively enhance the planetary health
• •
Invest in R&D and greener alternative new energy sources Reduce or eliminate emission from current generation fleet
Achieve Zero Fatalities and LTIF < 1.0
1% Profit After Tax (PAT) towards environmental and community related programmes
Invest in Low Emission & Green Technologies
• Expand renewable assets within Malaysia, ASEAN and Europe
• Expand Grid & Distribution to enable increased
demand and lower energy losses
Future
Proof TNB’s Business
Prepared by:
Unlock New Energy revenue stream
• Grow kWh and beyond kWh business
• Grow non regulated business to meet evolving
customer energy demands
Strategic Planning & Performance Department, Strategy & Ventures Division | [email protected]