FINANCIAL HIGHLIGHTS · GOVERNANCE TRANSPARENCY INDEX, FINDINGS AND RECOGNITION 2016 Industry Excellence – Consumer Services Merit Award for CG Disclosures –9th Place 9TH ANNUAL

FINANCIAL HIGHLIGHTS

27th ANNUAL GENERAL MEETING 2

3

FY2017 FY2016 YoY

EBITDA Margin 32.6% 33.2% 0.6ppt

Profit After Tax RM6.91 bn RM7.32 bn 5.6%

Capital Expenditure RM12.06 bn RM11.39 bn 5.9%

FINANCIAL POSITION FOR FINANCIAL YEAR 2017 INTACT

• Stable EBITDA Margin from Effective Implementation of ICPT Mechanism under IBR Framework

• Sustained Capital Expenditure of RM12.06bn During FY’17

27th AGM

5.1 5.6 4.7 6.0 5.0 4.2 5.2-5.7**

3.1

4.3

3.8

2.52.2

4.0

1.0

0.0

2.0

4.0

6.0

8.0

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

GDP* Demand Growth

%

* Based on Calendar Year** Year 2017 – forecast figure 4

2016

BNM REPORT (GDP)

4.2%

2018(f)

5.0–5.5%

2017(f)

5.2–5.7%

ELECTRICITY DEMAND GROWTH IN FY201727th AGM

TNB Electricity Demand Growth (Peninsula) vs. Malaysian GDP

527th ANNUAL GENERAL MEETING

PERFORMANCE INDICATORS

STABLE FINANCIAL PERFORMANCE IN FY2017

6

5.6

6.26.6 6.4

5.4

2.0

4.0

6.0

8.0

FY'13* FY'14 FY'15 FY'16 FY'17

* FY2013 restated

Revenue from Non-Regulated

Business (RM bn) 4Return on Assets

(ROA)(%)

31.0

35.0 35.134.2

36.6

24.0

26.0

28.0

30.0

32.0

34.0

36.0

38.0

FY'13* FY'14 FY'15 FY'16 FY'17

Company CPU

(sen/kwh) #1

# Exclude Finance Cost

3

5.4

6.46.1

7.36.9

2.0

4.0

6.0

8.0

FY'13* FY'14 FY'15 FY'16 FY'17

Profit After Tax

(RM bn) 2

2.2

2.5 2.6 2.7

3.3

1.0

2.0

3.0

4.0

FY'13 FY'14 FY'15 FY'16 FY'17

** Gross revenue of all subsidiaries excluding SESB, KEV, TNBJ & TNB Capital

**

27th AGM

SOLID TECHNICAL PERFORMANCE IN FY2017

7

64.2

55.0 49.7 49.7 50.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

FY'13 FY'14 FY'15 FY'16 FY'17

0.4

0.1

0.8

1.5

0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

FY'13 FY'14 FY'15 FY'16 FY'17

Transmission

System Minutes (mins)

1 Distribution SAIDI (mins) 2

88.1 85.5

88.8 88.1 88.5

60.0

70.0

80.0

90.0

100.0

FY'13 FY'14 FY'15 FY'16 FY'17

Equivalent Plant

Availability Factor (EAF)(%)* 3

27th AGM

*Including TNB wholly-owned generating capacity in Peninsular Malaysia

STEADY PERFORMANCE OF TNB POWER PLANTS

For FY2017, TNB power plants recorded:

• Equivalent Availability Factor (EAF) at 88.5%

• Equivalent Unplanned Outage Factor (EUOF) at 2.7%

88.1

85.5

88.8 88.1 88.5

FY2013 FY2014 FY2015 FY2016 FY2017

Availability* (%)

6.2 7.1

3.9 4.42.7

FY2013 FY2014 FY2015 FY2016 FY2017

EUOF* (%)

*Including TNB wholly-owned generating capacity in Peninsular Malaysia 8

27th AGM


KEY HIGHLIGHTS

SOLID MILESTONES AND DELIVERABLES TO MAXIMIZE

SHAREHOLDERS RETURN

10

STABLE RETURN

FROM EFFECTIVE

IBR

IMPLEMENTATION

2

Incentive Based

Regulation (IBR) &

Imbalanced Cost

Pass-Through (ICPT)

3SUCCESSFUL

ESTABLISHMENT OF

5 BILLION SUKUK

PROGRAM (IMTN)

IMTN to support TNB

growth

CONTINUOUS

EXPANSION IN

DOMESTIC AND

GLOBAL MARKET

1

i. 50% stake of 365MW

Solar PV farm in

United Kingdom –

Vortex Solar

ii. 1,000 MW Coal Plant

- Janamanjung 5

iii. 50MW Large Scale

Solar at Kuala Langat

Selangor – TNB

Sepang Solar

iv. 30MW Large Scale

Solar at Bukit

Selambau, Kedah

4

HIGHER RANGE OF

DIVIDEND PAYOUT

RATIO

30% to 60% dividend

payout ratio of PATAMI

27th AGM

11

STEADY STREAM OF POWER GENERATION TO SUPPORT

THE NATION GROWTH1,000MW Commissioned and 3,490MW in the Pipeline

1

1,000MW (Coal)COD:

28th Sep 2017

Janamanjung Unit 5

2,000MW (Coal) COD:

U1: 15th Jun 2019

U2: 15th Dec 2019

Jimah East Power

70%COMPLETED

COD:

1st Nov 2018

1,440MW (Gas)

COD:

1st Jul 2020

Southern Power Generation

7%50MW (Solar)

TNB Sepang Solar

32%

27th AGM

BUILDING RENEWABLE ENERGY PORTFOLIO FOR

BETTER FUTURE

12

Vortex Solar

Improve TNB RE

Portfolio

Diversify TNB

current

international

portfolio

Low risk,

stable return

assets in

advanced

energy

market

Stable economic

and regulatory

framework

Strategic

partnership

that creates

synergies

• Vortex Solar assets include 24

operational solar PV Farm across

England and Wales with net installed

capacity of about 365MW.

• Total cash consideration : GBP86.0 mn.

1

50% Ownership of Vortex Solar in United Kingdom

27th AGM

TNB REMAINS NEUTRAL FROM FUEL FLUCTUATION

Incentive Based Regulation (IBR) & Imbalanced Cost Pass-Through (ICPT) 2

13

Source: Regulatory Economics & Planning

Jan

2014 2015 2016 2017

Interim

Regulatory

Period

First

Regulatory

Period (RP1)

Dec Jan JanJul Jul Dec Jun Dec Jan Jul DecMar

2.25

rebate

2.25

rebate

1.52

rebate

JulJun Jun

Base Tariff

38.53

sen/kWh (726.99) (1,085.67) (762.03)

1.52

rebate

(758.03)

Jan

2018

P1 P2 P3 P4 P5 P6 P7 P8 RP2

Second

Regulatory

Period (RP2)

RM mn

sen/kWh

RM5.4 billion Total ICPT Rebate Approved to be Passed Through

to Customers up to December 2017

1.52

rebate

(766.33)

ICPT

review

every 6

months

1.52

rebate

*(1303.23)

* Comprises of: RM 523.23 million total imbalance cost for period Jan- Jun 2017 and RM 780 million to continue the current ICPT rebate of 1.52 sen/kWh.

27th AGM

3

14

OVERSUBSCRIPTION OF RM2.0 BILLION SUKUK

INDICATES STRONG MARKET CONFIDENCE

NoTenor

(years)

Issue Size

(RM Million)

1. 15 500

2. 20 1,500

First Issuance from the Approved Islamic Medium Term Note Programme (IMTN) of RM5.0 billion

RM 2.0 billion

First Issuance – 3rd August 2017

27th AGM

FY2017 MARKS THE HIGHEST DIVIDEND PAYOUT TO DATE

15

Continue to Maximise Shareholders Value Through Consistent and Sustainable Dividend

Payout of RM3.5 Billion

Dividend Policy

Distribution of dividend is based on 30% to 60% dividend payout ratio, based on the

reported Consolidated Net Profit Attributable to Shareholders After Minority Interest,

excluding Extraordinary, Non-Recurring items

25.029.0 29.0 32.0

61.0

FY2013 FY2014 FY2015 FY2016 FY2017

26.1% 25.5% 27.0% 24.7%

50.0%

Dividend Payout

(PATAMI)

Dividend Paid Per

Share (sen)

427th AGM


BUSINESS STRATEGY & DIRECTION

68 GREAT YEARS OF KEEPING THE LIGHTS ON

17

OUR STRATEGY

TNB’s strategy to achieve our aspiration of becoming amongst the leading

corporations in the energy & related business globally is centred on five focus areas:

TNB Aspires to Become a Domestic and Global Champion27th AGM

SHAPING SUSTAINABLE FUTUREOur Strategic Plan 2017 - 2025 Towards Achieving Continuous Growth

18

Future Generation

Sources

Grid of the Future

Winning the Customer

3 STRATEGIC PILLARS

27th AGM

TNB 2025 GROWTH ASPIRATION Aspire to Grow our EBIT to RM20.0 billion by 2025 through Domestic & International

Investment

19

27th AGM

EXPANDING GLOBAL FOOTPRINT TO ACHIEVE ASPIRATION

REMACO O&M Services for Shuaibah IWPP

IWPP: Shuaibah 900MW Power880,000 m3 / day water

150,000 m3 / day water

IPP: Liberty Power Ltd 235MW

IPP, IWPP & Development Projects

Supply & Services

REMACO O&M for Shuaiba North Co-Gen 780MW Power;

204,000 m3 / day water (Kuwait)

Development of the Sumatera – Peninsular Malaysia HVDC Interconnection, coal-fired

power plant & coal mine mouth projects

REMACO O&M services for Bong Hydro Plant in Pakistan

REMACO O&M for 225MW Sabiya Power Generation &

Water Distillation Plant (Kuwait)

30% equity ownership

in GAMA Enerji A.S.

Equity ownership

REMACO O&M for 210MW Doha West Power Generation

& Water Distillation Plant (Kuwait)

20


in GMR Energy Limited

TNB is currently present in more than 5 countries

REMACO O&M services for 1,223 MW Balloki Power Plant in

Pakistan


in Vortex Solar Investments S.a.r.l..

27th AGM


ACCOLADES

ACCOLADES : FINANCIAL

22

10TH ANNUAL BEST DEAL

& SOLUTION AWARDS 2016

Best Foreign Currency Bond Deal of

the Year 2016 in Southeast Asia

• TNB Global Ventures Capital for

its US$750 million Sukuk Wakala

2

ASSET ASIAN AWARDS 2017

TNB Global Ventures Capital for its

US$750 Million Wakala Sukuk

• Best Corporate Sukuk

BRAND FINANCE’S GLOBAL TOP 50

UTILITY BRANDS IN 2017 OR UTILITIES

50 (2017)

Fastest growing brand in the Utilities

50 list

Ranked 24th in 2017, rose 15 spots

from 2016

1

3

27th AGM

ISLAMIC FINANCE NEWS (IFN) AWARDS

DEALS OF THE YEAR 2016

Sime Darby TNBES Renewable Energy

Term Financing-i Facility

• Malaysia Deal of the Year

• Project & Infrastructure Deal of

the Year

23

3THE EDGE BILLION RINGGIT CLUB

2017

Super Big Cap Companies, More

Than RM40 Billion Market

Capitalisation

• Best CR Initiatives

• Highest Returns to Shareholders

Over Three Years

• Highest Growth in Profit After Tax

Over Three Years

6

2017 AUSTRALASIAN

REPORTING AWARD

Gold Award for Excellence in

Content Reporting

45

ACCOLADES : FINANCIAL27th AGM

SHARE GUIDE

ASSOCIATION

MALAYSIA (SGAM) ICT

AWARD 2016

Malaysia IT User Group

Category: Unmanned

Aerial Services (UAS)

Project

ASIA GEOSPATIAL

EXCELLENCE AWARD

2016

Implementation of

Unmanned Aerial Systems

(UAS) for Utilities Asset

Management

24

RED HAT INNOVATION

AWARDS APAC 2016

Infrastructure Category

32

1

ACCOLADES : TECHNICAL27th AGM

201

4

ASIA - PACIFIC RISK

MANAGEMENT AWARDS 2017

Asia-Pacific Risk

Management Team of the

Year

ASIAN UTILITY

INNOVATORS AWARDS 2017

Best Digital

Transformation Project

6

25

5

ASEAN ENERGY AWARDS

2016

Energy Management in

Buildings and Industries -

Large Building Category -

Wisma TNB Jalan Timur,

Malaysia

1st Runner-up

4

ACCOLADES : TECHNICAL27th AGM

201

4

26

12

MSWG MALAYSIA – ASEAN

CORPORATE

GOVERNANCE

TRANSPARENCY INDEX,

FINDINGS AND

RECOGNITION 2016

Industry Excellence –

Consumer Services

Merit Award for CG

Disclosures – 9th Place

9TH ANNUAL GLOBAL

CSR SUMMIT & AWARDS

2017

Best Workplace

Practises Award – Gold

Best Community

Programme Award –

Gold

THE BRANDLAUREATE

BEST BRANDS AWARD

2016 – 2017

Brand of the Year for

Best Performing

Government-Linked

Company

• Energy & Power

Category

3 4

11TH EMPLOYER

BRANDING AWARDS 2017

Malaysia Best Employer

Brand Award

ACCOLADES : CORPORATE GOVERNANCE, CSR & BRAND27th AGM

ACKNOWLEDGEMENTS

• The Government of Malaysia;

• Ministry of Energy, Green Technology and Water and other Ministries;

• The Energy Commission; and

• Other agencies for all the assistance rendered.

Our thanks also to our VALUED SHAREHOLDERS and

CUSTOMERS for their loyalty and trust

Special thanks to all our EMPLOYEES for their dedication and commitment.

Our Appreciation Goes To…

27

27th AGM

THANK YOU

27th AGM

Documents

FINANCIAL HIGHLIGHTS · GOVERNANCE TRANSPARENCY INDEX, FINDINGS AND RECOGNITION 2016 Industry Excellence – Consumer Services Merit Award for CG Disclosures –9th Place 9TH ANNUAL