Q3

TNB Q3
2021
PERFORMANCE REPORT CARD
Group Performance Overview Delivering RT Value Levers Delivering RT Enablers Growth Areas & Outlook


1 GROUPPERFORMANCEHIGHLIGHTS
Against the challenging business environment in 2021, TNB recorded commendable financial achievement as at ending Q3 FY2021
FINANCIAL
TNB EBIT
RM6.5bn
FY2021 Target RM8.18bn - 9.30bn FY2021 Forecast RM8.53bn
EBIT
FUTURE GENERATION SOURCES
REVENUE
RM36.89bn
Q3 FY2020 Actual RM33.65bn FY2021 Forecast RM4.04bn
GRID OF THE FUTURE
PAT
RM2.87bn
FY2021 Target RM3.11bn FY2021 Forecast RM4.04bn
WINNING THE CUSTOMER
GENCO
RM2.08bn
FY2021 Target RM2.03bn - RM2.18bn FY2021Forecast RM2.46bn
CUSTOMER
IAG
RM-0.32bn
FY2021 Target RM2.03bn - RM2.18bn FY2021Forecast RM-211.7mn
GRID
RM2.02bn
FY2021 Target RM2.50bn – RM2.58bn FY2021Forecast RM2.56bn
DISTRIBUTION
RM2.54bn
FY2021 Target RM2.79bn – RM3.19bn FY2021Forecast RM3.11bn
kWh
RM-0.1bn
FY2021 Target RM0.39bn FY2021Forecast RM0.20bn
Beyond kWh
RM-4.2mn
FY2021 Target: RM7.4mn FY2021Forecast: RM-1.98mn
Customer Service Index
Achieved top quartile performance in 2020 CSI of 86% through customer service excellence
Note: FY2021 CSI result will be ready in December 2021
Customer Experience Index
94% 33% Target FY2021 RM2.03bn
Forecast FY2021 RM2.39bn
Social Media Sentiment
TNB continues to deliver exceptional customer experience towards becoming retailer of choice
OPERATIONAL TNB remains committed in delivering world class technical performance
Domestic Generation
GenCo owns 52.7% of overall Generation market-share with a total contracted capacity of 14GW out of 26.7 GW
14,038.53MW
total contracted capacity in Peninsular Malaysia
International Generation
Total international generation capacity of 4.8GW
Negative Social Media Sentiment (%)
Significant reduction of negative social media sentiment mainly due to sharing of PEMULIH discount by Jabatan Penerangan and netizens
!"
• Equitystake:30%
• Capacity:1,102MWingas,
hydro, wind. Water conveyance in Jordan.
• Equitystake:6%effective equity stake
• Capacity:1,190MWIWPP and water desalination of 1,039,000 m3/day.
6%
TENAGAWIND VENTURES UK LTD
• Equitystake:100%
• Capacity:26.6MWinwind
• Equitystake:55%
• Capacity:365MWinsolar
• Equitystake:30% • Capacity:2,064MW in coal, gas, solar
• REprojectsdeveloped:2large scale solar parks2 (123MWp total)
• Services:Investmentasset management
5 power plant1 Coal-fired: 6,440 MW2
7 power plant1 Gas-fired: 5,062 MW2
3 hydro schemes3 Hydro: 2,536 MW
Grid
Distribution Network
M&A
Greenfield
Developer
Retail
Grid Regulatory Asset Base RM26.15bn Length of Domestic Transmission Network
25,413km
Peninsular Malaysia only
EAF
84.42%
FY2021 Target 86.10 % - 86.80 % FY2021 Forecast 83.60 %
ORGANISATIONAL
Distribution Network Regulatory Asset Base
Unit sold 92.77 TWh
Sales of electricity RM37.06bn Peninsular Malaysia only
SAIDI
43.17min/cust/year
FY2021 Target Below 50min Global benchmark
FY2021 Forecast 43.17
RM31.31bn
Number of distribution substations
85,815 unit
Peninsular Malaysia only
System Minutes
0.09min
FY2021 Target Below 1.5min Global benchmark
Organisational drivers are key in providing a lens of the company’s health beyond performance
TNB staff cost saving of RM0.24bn realized against full year target of RM-4mn
HCROI score of 4.01
recorded, well ahead of 2.73 -2.90 target
Contract staff absorption of 85 executives and 322 non-executives
BookDoc enrollment of 62.1% with 10.14 billion steps
TNB recorded Vaccination Completed Rate of 98.4% with 34,585 staffs registered for vaccination


2 DELIVERING RT VALUE CREATIONS
FUTURE GENERATION SOURCES
Driving TNB’s generation capacity growth to meet the needs of the future in a sustainable, reliable and affordable manner
GENCO RM13.4bn
FY2021 Target: RM17.53bn FY2021 Forecast RM17.37bn
New Energy Division
International EBIT (Adjusted)
RM -315.7mn
FY2021 Target RM530mn FY2021 Forecast RM -211.7mn
GRID OF THE FUTURE
GRID
FY2021 Target: 7.3% FY2021 Forecast: 7.6%
DN
FY2021 Target: 7.3% FY2021 Forecast: 9.6%
UOR
6.01%
FY2021 Target 4.26% FY2021 Forecast: 4.87%
Domestic RE Capacity
RM-2mn
FY2021 Target RM39mn FY2021 Forecast RM-9mn
PRODUCTIVITY
4.06 MW/Employee
EBIT BY PLANT
Coal Plants FY2021 Target : RM844.1mn
FY2021 Forecast :RM1,131.6mn Solar Plants
960.7
FY2021 Target: RM23.1mn FY2021 Forecast: RM36.2mn
FY2021 Target: RM428.2mn FY2021 Forecast :RMRM661.5
Ambition 1
Everest - Vantage RE acquired 49% stake in BODL UK that owns 41.5MW offshore wind assets (Blyth 1)
REVENUE
28.5
FY2O21 Target 3.98 MW/Employee FY2021 Forecast 4.06 MW/Employee
Ground 0
Liberty sold at USD54.5mn
(RM226.75mn)
TNBTE divested its investment in the Bajoli Holi CCD for INR1,176mn (~RM67.0mn)
Hydro Plants
928.3
FY2021 Target:
FY2021 Forecast: RM 945.8mn
RM 666.7mn
Gas Plants
578.2
RORAB
8%
CAPEX UTILISATION
RM1.28bn
FY2021 Target RM2.298bn – RM2.4bn FY2021 Forecast RM2.30bn
CAPEX UTILISATION
RM3.3bn
FY2021 Target: RM4.9bn FY2021 Forecast: RM4.9bn
OPEX SAVINGS
RM0.60bn
FY2021 Target: RM1.832bn – RM1.868bn FY2021 Forecast: RM1.77bn
OPEX SAVINGS
RM1.73bn
FY2021 Target: RM5.31bn – RM5.29bn FY2021 Forecast: RM4.95bn
PROJECT DELIVERY INDEX
4.09 month
FY2021 Target: 5 month FY2021 Target: TBC
AMI INSTALLATION
RM1.55mn
FY2021 Target: 1.5mn – 1.8mn FY2021 Forecast: 1.8mn
Securing fair and stable return through IBR framework with increase in assets efficiency and sustaining world class network performance
RORAB
9.6%
Q3 EVENT
Key Events
Submitted revised RP3 in July
Merger of subsidiary management division with Strategy & Ventures Division in July
Dive Holi (“G
Sustainability Pathway 2050 (SP2050) approved by Board on 30th July 2021
Business Plan & AOP completed in July 2021
Merger of corporate services division & TGBS in July


WINNING THE CUSTOMER
Capturing value through transforming customer experience and Beyond kWh business
Beyond kWh
RETAIL
REVENUE
RM1.2bn
FY2021 Target: RM1.78 Bn FY2021 Forecast: RM1.67 Bn
COLLECTED REVENUE PARAMETER (CRP), %
96%
FY2021 Target: 98.5% FY2021 Forecast: 97%
SUBSIDIARIES AS GROWTH CATALYST
kWh
SUBSIDIARIES
REVENUE
RM2.25bn
FY2021 Target:RM3.5bn FY2021 Target:RM3.5bn
EBIT
RM426mn
FY2021 Target:RM684mn FY2021 Target:RM554mn
ROIC
6.2%
FY2021 Target:4.9% FY2021 Target:5.7%
PAT
RM132.2mn
FY2021 Target:RM 251mn FY2021 Target:RM 145mn
EBIT
RM-0.1bn
FY2021 Target: RM0.39 Bn FY2021 Forecast: RM0.20 Bn
REVENUE
RM9.7mn
FY2021 Target: RM35.2Mn FY2021 Forecast: RM22.5Mn
EBIT
RM-4.2mn
FY2021 Target: RM7.4Mn FY2021 Forecast: RM -1.98 Mn
PROMPT BILLING
99%
FY2021 Target: 95% FY2021 Forecast: 99%
RETAIL ACADEMY ENROLLMENT
34.36%
FY2021 Target: 30% Retail employees FY2021 Forecast 30% Retail employees
TNB can seize new growth opportunities and EBIT uplift from its subsidiaries
Note: Contribution from 7 SMD subsidiaries i.e SESB,TCI, MTM, TNBES, Allo, TNEC, TSG.
FUTURE PROOF IBR PERF
Submitted TNB’s revised proposal for IBR RP3 to ST & KETSA in July 2021 with proposed WACC of 7.5%
TNB continues to shape and drive successful outcomes for a stable and sustainable regulatory landscape
MESI
50% of MyPower’s acceptance on TNB’s proposed areas of concerns
NEP
50% of KeTSA’s acceptance on TNB’s gas price proposal
Regulatory Satisfaction Index
Achieved 88.3% Regulatory Satisfaction Index in 2020
Jimah East Power awarded for Clean Coal Technology Utilisation for Large Power Generation by Asean Business Forum in September 2021
stment of GMR Bajoli Hydropower Limited BHH”) on Aug 2021
Budget Challenge completed in Sept 2021
Tabung Prihatin collection RM 3,297,430 in Sept
98.4%
staffs fully vaccinated in September
e i G


3 DELIVERING RT ENABLERS
CAPITAL ALLOCATION & VALUE CREATION
Capital Allocation Framework is currently in the development stage which aims to aligned TNB's delivery with its long term sustainability goals and balance TNB's Risk - Return Profile
1
Setting medium to long term aspirations, priorities and strategic themes
Rolling executable plans with clear targets, initiatives, resource requirements and implementation plans
Capital Allocation
• Establish TNB Capital Capacity
• Allocate available capital to optimize TNB’s
risk / return profile
Performance review
Strategic
Planning process cycle
2
Monthly, quarterly, mid-year 5 Stock-take of previous year’s performance and discussion of forward-looking remedial actions
Annual KPIs set for overall organization based on business plan and AOP, and cascaded to individuals
Target and KPI setting
4
3
Budget and AOP
CORPORATE AND ORGANIZATION STRUCTURE
Strategy
Business Plan
Annual Review Q1
Annual 1+4 Rolling Plan
TNB workforce optimization can be achieved through effective workforce management and adoption of agile organization
Annual
Translation of business plans to annual budgeting and annual operating plans
Corporate Re-organization :
- Merger of Corporate Services Division & TGBS
- Merger or Subsidiary Management Division with Strategy & Ventures Div.
Corporate Structure and New Operating Model
Organizational Structure Review:
- Addressing capacity and capabilities demand through continues 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 Guideline for International Duty and Pre-Boarding to Post Offboarding Guideline for International Duty
DIGITAL AND DATA ANALYTICS
7 key initiatives have been identified as foundation to support digital implementation in TNB.
7 key initiatives of Digital and Data Analytics as foundation to support RT pillars
Enterprise Data Governance (EDG)
Established TNB EDG Framework & Methodology & Data Sharing Guideline.
Network of the Future (NoTF)
Established NoTF masterplan.
Process Automation
17 Bots via Robotic Process Automation (RPA) deployed for TGBS, Procurement & Retail.
5000 TNB Field Crew have been enabled
by field service management automation solution (mobility).
Cyber Security
28 NEW initiatives have been added to CSOM, from the original 39.
61% or 41 initiatives completed to-date.
Application Programming Interface
Set up TNB’s API Platform, running on hybrid cloud.
Established API roadmap and its operating model.
Data Analytics
Cloud Transformation
Enterprise Agreement with AWS and Microsoft Azure for use of public cloud.
CULTURE, CAPABILITIES AND PERFORMANCE MANAGEMENT
TNB culture adoption is strengthened through continuous communications at all level of employees
TNB workforce capability is strengthened to support future ways of working
• LTI Rolled-out to 79% of TNB staff population
• RM 3,297,430 collected under Tabung Warga TNB Prihatin
• TNB Change Engagement Circle (CEC) cadence in place to address
pain points /sentiments raised by divisions related to Living the Identity Barometer
Robust succession management is key to future proof organisational growth
•
Digitally enabled / e-Learning via ILSAS with 153 e-learning modules offered and 632 session conducted with 12,377 participants from TNB
• 2,030 Learning Journey of various job functions established
Developed and maintain data platform (Data Warehouse, Data Visualization, Analytic Sandbox & Data Lake).
Establishment of Data Analytics Strategy and Digital Architecture Framework e.g. DN, Grid.
Culture
Talent
• 26 positions out of 43 (60%) in succession management have been discussed in JIK
• Talent Readiness Analysis have been conducted for all C-suites positions with
Capabilities
Performance Management
Learning and Development Policy is established with incorporation of Digital Learning framework
Strengthen Performance Management & Drive Performance Excellence Mindset
•
• DriveoverallTNBperformancethroughaction-oriented/forward-lookingJEK performance conversation with 1st seating in October 2021
• Succession Management Framework and talent pipeline approved in BNRC in September
• ProposalonReviewerConcept&ModerationreadytobepresentedtoJEKinQ4
• On-goinginitiativetoreinforcePerformanceConversationCultureinTNB,givingfocusto
completed Individual Development Plan (IDP)
all IM (Executives & Supervisor).


4 SUSTAINABILITY & OUTLOOK TNB Sustainability Pathway
TNB is committed to embed the sustainability agenda into our organization in order to seize opportunities in a rapidly transforming business landscape – this is in line with our aspiration to be the leading provider of sustainable energy solutions in Malaysia and internationally
Aspire to achieve Net Zero emissions & be Free by 2050
Commitment of 35% reduction in emission intensity & halving our coal capacity by 2035
Equivalent to Carbon Sequestered by 40 million acres of forests in a year (~1/2 of entire Malaysia covered in forests)
Equivalent to taking 1.1m passenger vehicles off the road for one year
We believe that our sustainability pathway towards 2050 will open new growth opportunities whilst remaining true to our core role
Target of 8.3GW RE by 2025 Commitment of 35% reduction of our emission intensity by 2035 Aspire to achieve Net Zero emissions by 2050
Our Target for 2025
Build scale in renewable generation Improve thermal plant efficiency
Our Commitment to 2035
Significant renewable generation growth 50% reduction in coal generation capacity
Our Aspiration to 2050
Invest and grow our emerging
green technologies including Hydrogen and Carbon Capture & Utilization (CCU)
2050
Aspire to achieve Net Zero Free by 2050
2016
Our Energy Transition journey started here
“Reimagining TNB” (2016 –2020)
2025
TNB RE Target of 8,300MW with an acceleration of RE investments towards 2050
“Reimagining TNB Strategic Refresh”(2020 –2025)
2035
Emission intensity
reduction of 35%
Reduction of coal
capacity by 50%
Our journey for the next 5 years is still guided by Reimagining TNB – the medium term goals to 2025 still remain TNB can drive value creation opportunities and play leading role to reshape Malaysia’s economy through these
6 Game Changers
Building a Global Solar Manufacturing Hub
Electrifying Mobility for Malaysia
Catalysing the economy through
Grid of the Future
Raising National Competitiveness through Energy Efficiency
Advancing connectivity for our
Digital Economy
Reskilling Malaysia by embracing the future of work
Refreshed strategy aligned to Sustainability Pathway (Every 5 years post-2025)
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