TNB Q1 Performance Report Card_v3

TNB
Q1 FY2022
PERFORMANCE REPORT CARD
• Group Performance Highlights • RT Transformation Update
• Sustainability Pathway 2050
FOR INTERNAL USE ONLY


01 GROUP PERFORMANCE HIGHLIGHTS 1 FINANCIAL
TNB financial performance is well above target in Q1 FY2022 mainly due to higher revenue contributed by increased in electricity demand inline with Malaysia’s transition to endemic phase
YTD Target
LMT:RM2.0 bn UMT:RM2.3 bn
Above Target Meet Target
Annual Target
LMT:RM8.10 bn UMT:RM9.2 bn
Below Target
YTD Target
LMT:9.3% UMT:9.5%
Annual Target
LMT:9.3% UMT:9.5%
EBIT*
RM bn
RM2.40 bn
ROE1
RM bn
Revenue
RM bn
15.7bn FY2022 Target: RM50.8bn Q1 Target: RM12.7bn
PAT
RM bn
0.87bn FY2022 Target: RM3.4bn Q1 Target: RM0.86bn
2 CUSTOMER
TNB continues delivering exceptional services to all our customers with Q1 Customer Experience
7.9%
Index (CEI) recorded at 94%
No. of Customer
Q1 FY2022
9.65mil
Dec 2021: 9.60mil
Customer Experience Index
Q1 FY2022
94%
FY2022 Target > 90%
Customer Satisfaction Index
FY2021 CSI Results
8.7
FY2022 Target > 8.6%
Note: FY2022 CSI survey will be conducted in Q4
3 ASSETS GROWTH
Significant TNB international assets growth in Q1 with additional 97.3MWp of operational assets from
onshore wind portfolio in UK
Domestic Generation
GenCo’s Generation market share at 52.8% with contracted capacity of 14.1GW out of total 26.7 GW
International Generation
TNB continues driving value creation from international 4.9GW generation asset (including 97.3MWp1 newly
Grid
RAB:
RM26.59bn
Distribution Network Retail
RAB: 419
4 OPERATIONAL
TNB continues providing high availability and reliability of electricity supply surpassing Q1 key technical
acquired asset)
CEO KPI1
RM32.23bn
Communication Channels
performance indicator targets
YTD EAF (%)
Key Technical Performance Indicators
System Min (mins)
SAIDI (mins)
YTD Target
LMT:79.4% UMT:86.8%
Annual Target
LMT:82.8% UMT:86.8%
YTD Target
Annual Target
LMT:2.0mins UMT:1.5mins
YTD Target
80.50%
0.0072 mins
LMT:0.50mins UMT:0.38mins
11.74 mins
LMT:13.75mins UMT:12.03mins
Above Target Meet Target
Annual Target
LMT:55.00mins UMT:48.11mins
Below Target
5 ORGANISATIONAL
One fatality reported in Q1 FY2022 involving a contractor in Distribution Network Division
Safety*
1
Fatality in Q1 FY2022
Target Zero Fatality
Employee Engagement
85%
(FY2021 Results)
FY2022 Target >85%
Note: FY2022 survey will be conducted in Q4
Successor for C-Suites
8.0
(FY2021 Results)
FY2022 Target >8.0
Note: FY2022 survey will be conducted in Q4
Integrity Index
79.7%
(FY2021 Results)
FY2022 Target 82%
Note: *FY2022 CEO KPI
Note: FY2022 survey will be conducted in Q4


02 RT TRANSFORMATION UPDATE A FUTURE GENERATION SOURCES
GenCo's financial performance exceeds Q1 target mainly contributed by higher demand and gain from increase of fuel price. Nevertheless, high unplanned outages (EUOF) continues to become a challenge
EBIT (RM Bn)
RM0.90bn
Revenue(RM Bn)
RM6.04bn
EUOF (%)
7.22%
Annual Target
LMT:5.37% UMT:4.00%
Productivity (MW/Employee)
4.09 MW/Employee
YTD Target
LMT:0.51bn UMT:0.54bn
Annual Target
LMT:RM2.03bn UMT:RM2.18bn
YTD Target
LMT:RM4.69bn UMT:RM4.83bn
Annual Target
LMT:RM18.76bn UMT:RM19.31bn
YTD Target
LMT:6% UMT:4%
YTD Target
LMT:4.09 UMT:4.10
Annual Target
LMT:4.09 UMT:4.10
New Energy Division (NED) - Despite below target in Q1 EBIT achievement, NED continues to be our key drivers in accelerating TNB's RE capacity growth locally and internationally
EBIT (RM Mn)
-RM13.20mn
GROUND ZERO
GEL and GEAS had significant milestones achieved in Q1 2022 under the Value Protection Plan initiatives whilst Shuaibah remains stable
AMBITION 1
Vantage RE has acquired additional 97.3MWp of operational assets (upon this acquisition, Vantage RE’s total operational RE capacity grew by 23% from 433MW to 530MW)
AMBITION 2
No additional operational assets or near-completion pipeline assets recorded in Q1 FY2022. For record, NED is expected to deliver 200MWp -598MWp in 2022 under Ambition 2
YTD Target
LMT:RM58.75mn UMT:RM157.50mn
Annual Target
LMT:RM235mn UMT:RM630mn
B GRID OF THE FUTURE
Grid Division reported lower EBIT compared to target due to unexpected significant OPEX from state fees (Pahang) which effort is currently been made to recover via relevant IBR mechanism
EBIT (RM Bn)
OPEX (RM Bn)
CAPEX (RM Bn)
Project Delivery Index (Month)
RM0.59bn
YTD Target
LMT:0.63bn UMT:0.65bn
RM0.60bn
LMT:RM0.56bn UMT:RM0.55bn
RM0.28bn
LMT:0.51bn UMT:0.75bn
Annual Target
LMT:RM2.03bn UMT:RM2.69bn
Delay 0.95mth YTD Target
LMT:0.63mth (delay) UMT:-0.17mth (early)
Early
Annual Target
LMT:2.5mth (delay) UMT:-0.5mth (early)
EBIT (RM Bn)
RM0.97bn
OPEX (RM Bn)
RM1.21bn
CAPEX (RM Bn)
RM0.86bn
AMI Installation (Mn)
0.20mn
Annual Target
LMT:RM2.53bn UMT:RM2.58bn
YTD Target
Annual Target
LMT:RM2.34bn UMT:RM2.24bn
YTD Target
Distribution Network Division - Despite lower Q1 IBR CAPEX utilization, DN is on track to achieve most of its FY2022 key performance indicator targets
YTD Target
LMT:0.78bn UMT:0.80bn
Annual Target
LMT:RM3.11bn UMT:RM3.18bn
YTD Target
LMT:RM1.45bn UMT:RM1.37bn
Annual Target
LMT:RM5.81bn UMT:RM5.48bn
YTD Target
LMT:RM1.10bn UMT:RM1.13bn
Annual Target
LMT:RM4.41bn UMT:RM4.50bn
YTD Target
LMT:0.11mn UMT:0.15mn
Annual Target
LMT:0.44mn UMT:0.60mn
C WINNING THE CUSTOMER
Retail Division continues to perform well in its service operations. Nevertheless, Retail is having challenges in meeting its financial targets
EBIT (Regulated) RM Mn
RM32mn
EBIT (Non-Regulated) RM Mn
-RM0.40mn
Revenue (Non-Regulated) RM Mn Prompt Billing %
YTD Target
LMT:RM24mn UMT:RM39mn
Annual Target
LMT:RM280mn UMT:RM290mn
YTD Target
LMT:-RM0.49mn UMT:-RM0.05mn
Annual Target
LMT:RM45.3mn UMT:RM67.5mn
YTD Target
LMT:RM5.93mn UMT:RM6.05mn
Annual Target
LMT:RM45.3mn UMT:RM67.5mn
YTD Target
LMT:95% UMT:98%
Above Target
Meet Target
Below Target
RM5.68mn
98.41%
Annual Target
LMT:95% UMT:98%


D FUTURE PROOF REGULATION
Aligned with the Cabinet’s approval on RP3 implementation, TNB continues to drive and shape for reliable, affordable and sustainable Malaysia electricity supply industry landscape
Incentive Based Regulation (IBR)
TNB secured positive outcome for RP3 (2022-2024), with WACC of 7.3% and sufficient capital & operational expenditure
Malaysia Electricity Supply Industry (MESI)
TNB currently involved in 6 working groups under MyPower towards shaping a future-proof MESI structure
National Energy Policy (NEP)
>80% of KeTSA’s acceptance on TNB’s gas price proposal. NEP is expected to be launched by Government in 2022.
Regulatory Relationship Strength Index (RRSI)
87% RRSI score for FY2021
E SUBSIDIARIES AS GROWTH CATALYST
While TNB subsidiaries1 meets its overall PAT & EBIT targets, its revenue fall short of Q1 FY2022 target
EBIT (RM mn)
107 Annual Target: RM498mn
Q1 Target: RM94mn
Above Target Meet Target
REVENUE (RM mn) 759 Annual Target: RM3900mn
Q1 Target: RM821mn
Below Target
PAT (RM mn)
12 Annual Target: RM84mn
Q1 Target: RM6.5mn
ROIC (%)
4.8 Annual Target: 5.8% Q1 Target: 5.8%
F REIMAGINING TNB EBIT UPLIFT
As of Q1 FY2022, only 16% of 2022 value realization target achieved since most initiatives are still ongoing
RM Mn Genco
29
Q1 Target: RM86mn
DN
189 Annual Target: RM578mn Q1 Target: RM145mn
ICT
15 Annual Target: RM12mn Q1 Target: RM3mn
Above FY2022 Target Meet FY2022 Target Below FY2022 Target
1 Consist of ALLO, TNBES, TNEC, MTM, TCI, TSG, SESB
and the results will only be reflected in Q2 or Q3 onwards
Annual Target: RM343mn
NED
7 Annual Target: RM731mn Q1 Target: RM183mn
Grid
53 Annual Target: RM184mn Q1 Target: RM46mn
P&SC
4 Annual Target: RM151mn Q1 Target: RM43mn
GFinance
5 Annual Target: RM11mn Q1 Target: RM3mn
TGBS
6 Annual Target: RM4mn Q1 Target: RM1mn
Retail GHR
5 Annual Target: RM289mn Q1 Target: RM72mn
Total TNB YTD Q1 Achievement
94 Annual Target: RM31mn Q1 Target: RM8mn
406 Annual Target: RM2461mn Total Q1 TNB Target: RM615mn
03 SUSTAINABILITY PATHWAY 2050
TNB ESG Score has increased from 5.3 (October 2021) to 5.5 (Feb 2022). The increase in ESG score is mainly contributed by better score in “Opportunities in RE” segment (increased from 4.6 to 6.4)
ESG Overall Environment Score
5.5 Annual Target: 5.3 - 5.6 5.6 Annual Target: 5.2 - 5.5 Above FY2022 Target Meet FY2022 Target Below FY2022 Target
Q1 FY2022 TNB KEY MILESTONE
Social Score
6.3 Annual Target: 6.3 - 6.6
Tripartite MoU between TNB Genco, IHI & Petronas to collaborate in Co-Firing Technology for Carbon-Free Ammonia
Governance Score
5.0 Annual Target: 5.1 - 5.4
Launching of Sultan Ibrahim Power Plant, an advanced gas turbine power plant in Pasir Gudang, Johor
Collaboration between TNB & UPM to install 16.18 MWp rooftop solar PV, the largest for a public institution of learning
Govt announced and approved RP3 Implementation effective from Feb 2022 to December 2024
12Jan 14Jan 28Jan 20Feb 22Feb 23Feb 22Mar
TNB and BMW signed a MoU to develop the electric vehicle ecosystem and infrastructure in Malaysia
MoU between TNB & Majlis Bandaraya Ipoh (MBI) to help realize Ipoh as a low carbon smart city by 2030
TNB’s Vantage completed a GBP275 million financing exercise of its solar portfolio assets