A BRIGHTER TOMORROW

BEGINS WITH A BETTER TODAY.

PRESENTATION15th December 2016

26TH ANNUAL

GENERAL MEETING

FINANCIAL HIGHLIGHTS

26th ANNUAL GENERAL MEETING

2

3

FY2016 FY2015 YoY

Electricity Demand Growth 4.0% 2.2% 1.8ppt

Profit After Tax RM7.32 bn RM6.06 bn 20.8%

Capital Expenditure RM11.39 bn RM10.77 bn 5.8%

FINANCIAL YEAR 2016

Improved Profit After Tax From Higher Electricity Demand Growth 26th AGM

ELECTRICITY GROWTH IN PENINSULA

Higher Electricity Demand Growth Mainly Contributed By Warm Weather Condition

7.2 5.1 5.6 4.7 6.0 5.0 4.5**

8.8

3.1

4.33.8

2.5

2.2

4.0

0.0

2.0

4.0

6.0

8.0

10.0

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

GDP* Demand Growth

%TNB Electricity Demand Growth (Peninsula) vs. Malaysian GDP

* Based on Calendar Year** Year 2016 – forecast figure

4

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PERFORMANCE INDICATORS

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Financial Indicators

KEY PERFORMANCE INDICATORS

4.5

5.66.2

6.6 6.4

2.0

4.0

6.0

8.0

FY'12 FY'13* FY'14 FY'15 FY'16

2.3 2.2

2.5 2.6 2.7

1.0

2.0

3.0

FY'12 FY'13 FY'14 FY'15 FY'16

* FY2013 restated

Revenue from Non-Regulated

Business (RM bn) 4

Return on Assets

(ROA)(%)

31.931.0

35.0 35.134.2

24.0

26.0

28.0

30.0

32.0

34.0

36.0

FY'12 FY'13* FY'14 FY'15 FY'16

Company CPU

(sen/kwh) #

1

# Exclude Finance Cost

3

6

26th AGM

4.4

5.4

6.4 6.1

7.3

2.0

4.0

6.0

8.0

FY'12 FY'13* FY'14 FY'15 FY'16

Profit After Tax

(RM bn)

2

Technical Indicators

62.3 64.2

55.0 49.7 49.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

FY'12 FY'13 FY'14 FY'15 FY'16

mins

1.0

0.4

0.1

0.8

1.5

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

FY'12 FY'13 FY'14 FY'15 FY'16

mins

88.7 88.1 85.6

88.8 89.3

60.0

70.0

80.0

90.0

100.0

FY'12 FY'13 FY'14 FY'15 FY'16

%

Equivalent Plant

Availability Factor (EAF)(%)*

1

Transmission

System Minutes (mins)

2Distribution SAIDI (mins)

3

7

KEY PERFORMANCE INDICATORS

*Including Janamanjung 1,2,3 & 4 and excluding KEV

26th AGM

TNB POWER PLANT PERFORMANCE

For FY2016, TNB power plants recorded:

• Equivalent Availability Factor (EAF) at 89.3% - Highest plant availability in 5 years• Equivalent Unplanned Outage Factor (EUOF) at 3.7% - Highest plant reliability in 4 years

88.7 88.1

85.5

88.8 89.3

FY2012 FY2013 FY2014 FY2015 FY2016

Availability* (%)

3.66.2 7.0

3.9 3.7

FY2012 FY2013 FY2014 FY2015 FY2016

EUOF* (%)

*Including Janamanjung 1,2,3 & 4 and excluding KEV

Highest Power Plant Availability & Reliability

8

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DIVIDEND

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PROPOSED FINAL DIVIDEND

Interim Single-Tier Dividend

of 10.0 sen per ordinary share

INTERIM DIVIDEND

Total Dividend for FY2016: 32.0 sen per Ordinary Share

Single-Tier Dividend

of 22.0 sen per ordinary sharePROPOSED

FINAL

TOTAL DIVIDEND FOR FY2016: 32.0 sen per ordinary share

Tenaga is committed to pay out dividend based on its Dividend Policy whereby:

Dividend is paid out based on 40%-60% of its Company’s Annual Free Cashflow;

Cashflow from Operations less Normalised Capex and Interest Servicing

BOOK CLOSURE: 20th DEC 2016

PAYMENT: 30th DEC 2016

10

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KEY HIGHLIGHTS

26th ANNUAL GENERAL MEETING

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4 GENERATION

PROJECTS

COMMISSIONED

201

4

KEY HIGHLIGHTS

INCENTIVE BASED

REGULATION (IBR)

&

IMBALANCED

COSTS

PASS-THROUGH

(ICPT)

IMPLEMENTATIONMULTICURRENCY

SUKUK ISSUANCE

3

1

International sukuk

market debut

2

TNB remains neutral from

fuel price fluctuations

Increased TNB generation

market share

4

CHANGE OF

FINANCIAL YEAR

END

Alignment of the

financial year end

12

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4 GENERATION PROJECTS COMMISSIONED

250MW

186MW

1,071MW

375MW COD:

27th Feb 2016

COD:

20th Feb 2016

COD:

15th Aug 2016 (U2)

COD:

3rd Dec 2015 (U1)

31st Dec 2015 (U2)

Hulu Terengganu Hydro

Ulu Jelai HydroConnaught Bridge

Prai

1,882MW Successfully Commissioned

1

13

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INCENTIVE BASED REGULATION (IBR) &

IMBALANCED COST PASS-THROUGH (ICPT) MECHANISMTNB remains neutral from fuel price fluctuations

2

14

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

RM3.33 billion

Total ICPT rebate passed through to customers

up to Dec 2016

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Source: Regulatory Economics & Planning

MULTICURRENCY SUKUK ISSUANCE

TNB Debut in the International Sukuk Market

• The Sukuk transaction marks the return of TNB to the international debt

capital markets after more than 10 years.

• Highlights:

Largest corporate 10-year sukuk issuance from Asia

Largest corporate sukuk in 2016

Largest ever 10-year USD corporate sukuk from a Malaysian corporate

Lowest ever 10-year coupon achieved by a Malaysian corporate

First sukuk in Asia to use Rights of Service as the underlying asset for

the structure

3

USD2.50 bn in nominal value

First Issuance – 19 October 2016Multicurrency Sukuk Program

USD0.75 bn in nominal value

15

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CHANGE OF FINANCIAL YEAR END

Alignment of Financial Year End with Regulator and Government Agencies

• The new financial year will commence from 1 September 2017 to 31

December 2017, covering a period of four (4) months.

• Thereafter, the financial year of the Company shall revert to twelve

(12) months ending 31 December, for each subsequent year.

4

1 September to 31 August

NewCurrent

1 January to 31 December

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BUSINESS STRATEGY & DIRECTION

26th ANNUAL GENERAL MEETING

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BUSINESS STRATEGY & DIRECTIONTNB Aspires to Become a Domestic and Regional Champion

Enabling a Stable

Regulatory Environment

Exceeding Customer

Expectations

Driving Operational Excellence &

Cost Efficiencies

Growing Profitable Business

Transforming our people and leadership

DOMESTIC & REGIONAL CHAMPION

18

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: Enabling a stable regulatory

environment, exceeding customer expectations, driving operational excellence and cost

efficiencies, growing profitable business, and transforming our people and leadership.

26th AGM

BUSINESS STRATEGY & DIRECTIONReshaping TNB Future: Key Pillars of Value

19

26th AGM

Future

Generation

Sources

Grid of the

Future

Winning the

Customer

Anticipating

Future

Regulations

Changes

Aspirations in the Disrupted World

anchored on value creation

1

BUSINESS STRATEGY & DIRECTION

REMACO O&M Services for Shuaibah IWPP

IWPP: Shuaibah (USD2.7bn) 900MW Power

880,000 m3 / day water

150,000 m3 / day water

TNEC JV Al Reef District Cooling, UAE 8,000 RT

TNEC JV BMC District Cooling, UAE 30,000 RT

IPP: Liberty Power Ltd (USD272m)

235MW

IPP, IWPP & Development Projects

Supply & Services

REMACO O&M for Shuaiba North Co-Gen (USD320m)

780MW Power; 204,000 m3 / day water (KUWAIT)

TNEC JV with Abu Dhabi Al Samah for District Cooling

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)

REMACO O&M services for Liberty Power Ltd

REMACO O&M services –HUBCO (Narowal)

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TNB International Footprint : Currently One of the Largest Electricity Company in Asia

30% equity ownership

in GMR Energy*

* Acquisition completed on 4 November 2016

INTERNATIONAL ACQUISITION

GAMA Enerji A.S.

30% Significant Minority Stake in GAMA Enerji A.S.

1

Favourable

macro-economic

environment

Well-established

regulatory

framework

Multiple

avenues for

growth in

Turkish

energy

market

Unique

opportunity to

secure a sizeable

platform in Turkey

Strategic

partnership

that creates

synergies

• On 13 April 2016, TNB had completed the

acquisition of 30% equity interest of GAMA

Enerji A.S. from GAMA Holding A.S.,

International Finance Corporation (IFC)

and IFC Global Infrastructure Fund

Holding.

• Total cash consideration : USD255.0 mn.

• GAMA Enerji A.S. assets includes:

• 840MW natural gas-fired plant

• 45MW wind power plant under

construction

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21

INTERNATIONAL ACQUISITION

GMR Energy Limited

30% Significant Minority Stake in GMR Energy Limited

2

Large & growing

market

Strong

government with

favorable policy

framework

100% FDI

allowed in

generation,

transmission

&

distribution

Regulatory reforms

Strategic

partnership

that creates

synergies

• On 4 November 2016, TNB had completed

the acquisition of 30% equity interest of

GMR Energy Limited via a bilateral

transaction.

• Total cash consideration : USD300.0 mn.

• GMR Energy Limited assets includes

2,298MW coal, gas and solar plants.

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22

ACCOLADES

26th ANNUAL GENERAL MEETING

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ACCOLADES : FINANCIAL

3

1

4

201

4

2

The Edge Billion Ringgit

Club Awards 2015

• Company of the Year

• Best Performing Stock

(>RM10 bn Market Cap)

• Highest Profit Growth

Company (>RM10 bn

Market Cap)

• Highest Profit Growth

Company (Trading/

Services category)

The Edge Billion Ringgit

Club Awards 2016

• Super Big Cap

Companies

(>RM40 bn Market Cap)

• Highest Returns to

Shareholders Over Three

Years

The Asset Asian Awards

2016

Best Islamic Project

Finance Deal

2016 Australasian

Reporting Award

Bronze Award - Annual

Report 2015

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ACCOLADES : TECHNICAL

3

1

4

201

4

2

PFI Asia Best Practice

Citation Award

TNB Janamanjung

Platts Top 250 Asia

Awards 2015

• Energy Company of the

Year (9th place)

• Fastest Growing Energy

Company in Asia (18th

place)

• Ascender of the Decade

Award (36th place)

Frost & Sullivan 2016

Best Practices Award

Power Plant Service

Provider of the Year -

TNB REMACO

Asia Geospatial

Excellence Award

• Implementation of

Unmanned Aerial Systems

(UAS) for Utilities Asset

Management (2016)

• Implementation of

Smartview for Outage

Management in TNB

Distribution (2015)

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ACCOLADES : CORPORATE GOVERNANCE & CSR

3

1

4

201

4

2

Astrid Awards 2016,

New York

Non-Traditional Hardcover

(Silver) -

Annual Report 2015

MSWG - ASEAN Corporate

Governance

Transparency Index,

Findings and

Recognition 2015

Industry Excellence Award

- Port & Utilities

8th Annual Global CSR

Summit & Awards 2016• CSR Leadership Award

(Platinum)

• Best Environmental

Excellence Award (Gold)

– TNB Research

• Best Workplace Practices

Award (Gold)

- TNB Janamanjung

• Best Environmental

Excellence Award (Silver)

- TNB Janamanjung

PEKA CSR Investments

Towards A Greener

Malaysia Award

Winner of the GLC

category

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26

ACKNOWLEDGEMENTS

26th ANNUAL GENERAL MEETING

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ACKNOWLEDGEMENTS

• 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…

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THANK YOU

26th AGM