Tenaga Nasional Berhad

Taklimat Keselamatan Dewan Silara National Energy Centre. Welcome to University Tenaga National. You are now in Dewan Silara National Energy Centre NEC Unit 10. Please follow these instructions in the event of an emergency. Please remain calm and stand by for further instructions to evacuate. In the event of an emergency, the alarm will be activated and ring continuously. Please make sure Make your way calmly to the closest emergency exit. Please exit the building immediately and in an orderly manner. Please proceed to the designated assembly area. Please remain at the assembly area until you receive further instructions. Please seek assistance from personnel on duty in cases of other emergencies. your your cooperation is highly appreciated may the ceremony run smoothly and successfully thank you Good morning, everyone. Thank you for joining our third quarter FY2025 Analyst Briefing. A very warm welcome to Yang Berbahagia, Datuk Insenior Megat Jalaluddin bin Megat Hassan, President and Chief Executive Officer of Tenaga Nasional Berhad, and Chief Financial Officer, Mr. Bardul Hisham Fauzi. I also extend a very warm welcome to each and every one of you joining us today in this hall. We also have 70 attendees joining virtually via Webex. Today's session will be covered in two parts. Our President and CEO, Dato' Magad, will first provide an overview of TNB's group strategy and outlook, followed by our Chief Financial Officer, Mr. Badra, will share TNB's third quarter FY2035 performance. We will then open for Q&A before we end the session at 11am. With that, I am pleased to invite Dato' Insenior Megat Jalaluddin bin Megat Hassan to kick off our session. Thank you.

Assalamualaikum warahmatullahi wabarakatuh and a very good morning. First and foremost, thank you very much for being here to be in the session where we share our third quarter performance and i would like to welcome everyone to this new i would say development by tenaga national which is the national energy center which is part of our unit and purpose in which we would like to support the government agenda with respect to the energy transitions. So this is where we hope that we can position tenaga further with respect to the energy transition for the country as well as for the region. So I'm pleased to share some of our performance highlights for the first nine months of financial year 2025. The group delivered a strong financial performance, underpinned by the continuous stability of our regulated business. We recorded a core profit adjusted for forex transaction and MFRS 16 of RM3.26 billion compared to RM2.7 billion in the corresponding nine months last year. So this is a reflection of our underlying strength of our core business. So what we have seen to date is stronger performance across all the four business pillars that we have. It's driven by all the improvements across those four business pillars. The first under the deliver clean generation. Genco overall performance improved with higher co-operative of RM238.9 million compared to RM1758 million in the previous year. This is supported by a strong operational efficiencies as reflected by an improved equivalent availability factor or known as EAF of 86.9%, and as everybody can remember, Manjung 4 is fully operational since the beginning of the year. Second, under the Developing Energy Transition Network Fund, we deploy RM8.3 billion of regulated CAPEX, comprises of 7.6%. billion in base capex and additional 0.7 billion in quotidian capex this intensified investment demonstrate steady progress in delivering our rp4 commitment especially in great investment to ensure reliability of supply and to deliver those projects that related to the demand growth for the country So under dynamic energy solution, happy to share that we are making good progress with respect to the electrification of transport in the EV space, where we see to date we have more than 5,000 EV charge points in the ecosystem, contributing to about 5 million in revenue. Within this ecosystem, Tenaga National, through our Electron branch, installed a new 94 TNB charge point during the quarter, bringing the total to 160 TNB charge point in our EV network. This is to reinforcing our commitment to support the country's growing EV infrastructure. So this is where we see a good momentum and progress with respect to the electrification of transport, especially to the mass transport, in this case, the cars instead of the heavy vehicles. And lastly, under our driving regulatory version, The transition from the ICPT to AFA mechanism effective 1st July 2025 marks a significant structural improvement. The AFA mechanism enables immediate cost recovery compared to the previous segment likes in the previous ICPT regime. This helps improve TMB cash flow at least by 2%, and definitely enhance our planning with respect to the working capital. So overall, this results reflect our resilience, operational discipline, and continued progress in advancing the energy transition while delivering sustainable value to all the stakeholders. Moving on to our generation gross outlook, momentum remains strong, supported by government national capacity plan. Recently, we received a letter of notification for technical and commercial term, covering a total capacity expansion of 1,262 MW across three power stations that are owned by Tenaga National, namely Glogor, Putrajaya and Tengku Jaffa. This, if everybody can recall, is part of the so-called RFP that's been put forward by the government under Category 1, where the government requests for proposal with respect to the extension of power plant. We are glad that we have gotten the results and this extension strengthen system liability and ensure that we remain well positioned to support the Malaysian growing demand as well as to ensure that the capacity and the revenue that is coming from this power station will continue be part of TMD revenue in the future. On the second category, the new generation capacity request for proposal, we are awaiting the regulatory decision which focuses on the new generation capacity. And TMB, of course, participates in the RIP. And we hope that we can get the outcome of the results before the end of the year. So in short, this national capacity plans, both extension as well as the new generation capacity, provide a strong visibility and reinforce a favorable outlook for TMB generation growth in the pipeline for the future. At the same time, let me update some of the progress that we are making with respect to the project that we are undertaking at the moment. On the domestic front, the project execution across our clean generation portfolio continues to progress well and firmly on track. The first one is the Negeri hydro project. We have now reached 53% completion. and we remain on track to meet the COD target by the second quarter of 2027. Happy to share that major civil works, including roller-compacted concrete, RCC, placement for the settle dam, are already underway. The second project that we are currently undertaking is the Sungai Perak Hydro Life Acceleration Program has achieved 23% overall progress. Data collection for all the units has been completed and this is a rehab project and the project is on track to deliver the first unit at Cendro Power Station by the first quarter 2026. At Kenya, the plan for the hybrid hydro 14 solar project has 70% redevelopment progress and the commercial evolution is currently in the final stage. So this is another opportunity for Tenaga to provide clean generation to the customers directly through the CREST program. On the land solar projects that we are undertaking, under the Corporate Green Power Program or known as CGPP, all three sides continue to progress well with more than 85% completion and remain on track to achieve COD. The second project for the land solar is the awarded last case solar 5 tender. It's progressing towards achieving financial close by early 2026. At the same time, We are also taking a project into Sabah together with SASB, which is our majority-owned subsidiary. And we also expect to have a departure close by the end of this year, 2025. And lastly, the Petri Energy Storage System at Lahadatu, Sabah, in which our subsidiary TRE are taking together with SSB has successfully achieved COD in August 2025 and it is in full operation just now and it is it did help the so-called provide the energy to the eastern part of Sabah. Overall, we have 1.2 GHz currently under construction, reinforcing our clean generation growth platform that we currently have. On the international front, the third quarter update progress in the United Kingdom. We have achieved our international RE portfolio, recorded important milestones this quarter. In the United Kingdom, our greenfield solar project Both Eastfield 35 MW peak and Bunkers Hill about 67 MW peak have achieved COD in July 2025 contributing a combined of 102 MW peak of new solar capacity to our portfolio and has started generating revenue for us. Over in Australia, momentum is equally encouraging. As part of the 1GW Dinawan Energy Hub, the 357MW Dinawan Wind Farm Stage 1 has successfully secured support under the Capacity Investment Scheme in Australia. This provides long-term revenue assurance for the project and enhances overall cash stability for the future. The second project that we are undertaking in Australia, it is named Water Creek Solar Project, totaling 265 MW of solar capacity and 300 MW of battery storage. We have executed the connection process agreement with the Transgrid, which is the transmission operator in Australia. This allows us to move forward with detailed group impact studies of the connection and the best possible discussion with respect to COD. In parallel, procurement for the standalone base is also ongoing. Meanwhile, for the Mali Wind Farm project, 400 megawatt Mali Wind Farm, We are progressing connection planning outside the designated RE zone and have secured the required land instrument for the transmission connection, a key enabler for the next development phase. As you can see that the Australian project, with respect to the regulatory requirement, one of the key elements is actually to get access to the connectivity to the grid. So many of our projects are now at that so-called pre-development stage, securing the grid access, and we believe that we are making a good progress with respect to those in conjunction with cooperation with the local transmission operator. So with this addition, our group secured RE energy capacity now stands at 13.4 gigawatt, of which 4.6 gigawatt is already in operation, while 1.2 gigawatt is under construction, as I summarized the above, and 3.6 in the pipeline stage. This continued goes to reinforce TME position as a meaningful regional RE player, while providing diversified income stream over the long term. Next, we move to investment into the grid. And our second strategic pillar, develop energy transition network, We are on track to deliver our regulatory targets, having successfully utilized 8.3 billion of regulated transmission and distribution capacity. So we invest 3.8 billion to maintain security supply, 3.8 billion to support demand growth, and 0.7 billion capacity for energy transition projects. enhancing the grid readiness for higher RE penetration and a greater digitalization embedded to make it a smart grid. Progress of key project. Firstly, the product demand groups, especially data center connection. We have invested around $1 billion while we are also developing the 300 kV overhead Length between Aya Tawa and Langin Project at approximately 0.3 billion to strengthen the backbone of the national grid. Our 100 MW, 400 MWh battery energy storage system pilot project at Santung continues to progress well, reaching 56% of overall coefficient. So we remain on track to achieve the targeted completion by December 2026. Meanwhile, at the distribution space for smart meter, we have already delivered our financial year 2025 full year 360,000 unit target. with around more than 500,000 units installed at the end of the third quarter 2025, bringing the total 5.1 million units into the system, which is about 45% of our customers. This is also reflecting our strong momentum in empowering the customer energy management, including the new tariff offering of TOU. So this is one of the I would say the intended outcome of the smart meter providing the customer with the energy management system and supported by the terrestrial structure of TOU. For the suction asymmetry, which is important for our supply reliability, we have installed the air system in 2,590 subsessions at the end of third quarter 2025. And as of October 2025, we have achieved 75% of our 2025 target of 4,026 subsessions. So the projects under the CAPEX both for transmission and distribution are well on track. While our domestic investment ensures the grid is ready for rising demand as well as the RE penetration, the net emission of our strategy is original integration. Under the ASEAN power grid, we are actively developing integrations that will position Malaysia as a key hub for clean electricity exchange across the region. Currently, we have about 1.4 GW of existing interconnection capacity with Singapore and Thailand. Looking ahead, we have five potential pipelines interconnection projects, enabling the transmission of over 6 GW of combined RE energy, including hydro, solar, as well as wind with Vietnam, Singapore, Thailand, Sarawak, and Indonesia. This project will serve as enablers for the regional energy transition and position Malaysia as a central hub for cleaner energy flows. On the business plan, we believe this is the foray of tenaga to have part of the so-called regional market in our revenue and hopefully we can expand the third pillar in combination of the domestic and international business. Now we have the opportunity to include the regional business as part of the mainstream of tenaga revenue. Moving to our third strategic pillar, dynamic energy solution, we see that electricity demand has continued to grow. For the third quarter 2025, the total unit sold reached more than 99,000 gigawatt hour, reflecting sustained demand momentum. This growth was largely underpinned by the Commercial sector, which accounts 70% of the total units sold. For the commercial demand, we see that the growth year-on-year is about 7.7%, led by three sub-sectors. Data centers, of course, contributing 5.2%. followed by the malls, business and accommodation services at 2.2% and the rest of the commercial sector adding another 0.3%. So we see a strong growth with respect to the commercial sector as well as our domestic sector. In terms of the sale contributions, malls, business and accommodation, Services made up 80%, other sub-centres contribute 60%, while data centres account for 30% of the total units sold in 2025. So what does it mean is that, yeah, we can see that data centre is growing, but in the overall scheme of the sub-centre, uh so-called unit now it contribute about three percent we still have the majority of the commercial from the mall and business and commercial services adding up by the education and also the communication communication sector So we are happy that overall we have a good sub-sector growth, not only in data centers, but the other remaining business in the commercial sector. For data center itself, it continues to anchor the structural demand growth. As for the end of the third quarter, we have 29 projects in the system. which a total maximum demand of 3.8 megawatt. Looking ahead, our secure pipeline now stands at 49 projects representing 7.1 gigawatt total maximum demand in this term, underscoring Malaysia's role as the digital investment hub. Alongside this robust demand growth, we are also seeing positive momentum across our customer-focused energy transition initiative. Under the EV ecosystem, we continue to advance our EV charging rollout with 160 cumulative charge points installed, including 94 in the third quarter of 2025. So we remain on track to exceed our TMB-owned targets of 250 charge points installed by the year end of 2025, supporting the government EV roadmap and, of course, expanding the charging facilities nationwide. Year-to-date, our EV charging ecosystem has generated about $5 million in revenue, of which 1.7 million come from our own TMB charge point. This reflects steady adoption of our charging solutions and validates the growing demand for EV infrastructure. For the EV charging development, we have introduced the Green Lane Supply Initiative. And for this initiative, we have completed around 7 megawatt of connections with a target to achieve around 8 megawatt connection within this year. Interests continue to grow strongly. We currently have 448 applications in pre-consultation, representing 130 megawatt of potential new connections as we move forward. Moving on to the solar rooftop through G-Spark, update remains steady. Since inception in 2029, we have secured more than 3,000 projects representing 538 MW peak of C-code capacity. As of September 2025, we have installed a total of almost 200 MW peak. generating approximately $80 million in revenue for the first nine months of this year. We are seeing a strong participation from key customer segments such as manufacturing, government, as well as from the construction sector. On energy efficiency, multi-MVFs currently adopted by 8 million of our customer base, which represents 80% of the current 10 million customers that we are having. Over 2.5 million users have now subscribed to my TMB energy budget feature, helping save 100 gigawatt hour of energy. And at the same time, if we calculate in terms of the carbon emission, we have a broad range more than 75,000 tons of carbon emission as of September 2025. Additionally, as I mentioned, the update for the time of use scheme has been very encouraging, with about 52,000 customers now optimizing their consumption pattern to better manage the electricity costs. This initiative reflects our progress in driving customer participation in the energy transition and unlocking growth from the consumer segment of our customers. So that is the overall four pillars performance as of the third quarter. Now I will pass to our CFO, Mr. Badrul, to provide detailed updates on the third quarter financial performance. Please.

Thank you, Dato', and good morning, everyone. Good to see all of you here in Unit 10 today. And since the results last Friday, it seems like you guys have been doing a lot of work over the weekend. So good to see you here. So I'm pleased to report that for our nine-month performance, you've seen that we have a stronger financial performance, which mainly still driven by regulated business. And obviously, you will see as well a result of more effective capital management. So for the first nine months of 2025, revenue EBITDA and PAT across the board have showed positive year-on-year growth. So as of nine months 2025, our revenue actually increased by 18.3% compared to previous year, and you'll notice that this is mainly driven by higher electricity sales. It's important to note that implementation of cost reflective up before approved tariff continue to support revenue, as well as affirming that it will continue to support the stability of our regulated business. On the EBITDA side, you'll see improvement as well, supported by higher revenue, recording increase of 4.8% year-on-year, increasing to $15.088.2 million. EBITDA margin as well, you'll notice that strengthened to 31.2%, showing improved efficiency across the globe. So I think this is important to note that as we monitor the EBITDA margin, this shows continued progress of the company, where a lot of cost management has been put in place to ensure our stable operation continue to deliver the regulated profit. So at PAT level, you will notice that our profit grew mainly because of the improvement in the operational performance of the company. So you'll notice that we are now focusing on core profit after adjusting for Forex Translation and MFRS16, which is a much better reflection of the performance of the company. So that figures now is at $3.259 billion, which is an increase of 13.7% year-on-year, compared to the same period last year of $2.867.4 billion. So I think based on that number, we would like to conclude that as far as the overall performance is concerned, Lower net finance costs as well as forex movement actually provided an additional uplift to the performance of the company. But most importantly, co-operations remain the main driver of the performance of the company. So for FY 2025, we believe that the group remains on track, supported by resilient operations as well as prudent financial management. This will make sure that we continue a sustainable performance for the full year this year. You will notice as well that as far as the group earnings are concerned, we have actually supported by two important pillars that continue to support our operation. It's importantly improved generation performance as well as sustained world-class network performance. So this is important as you notice that the network reliability across transmission distribution continue to deliver our earnings. So as far as generation is concerned, the higher equivalent availability factor of 86.9% in nine months this year is much higher compared to 80% that we achieved same period last year. So the improvement actually reflects stronger overall plant performance and the fact that our maintenance and repair and all are delivering the expected performance from the plant. So this is something that a lot of focus is being put across and we continue to maintain this high availability as well as operational excellence across our plan for this year and many more years to come. For system minutes for transmission, nine months this year is actually at 0.0695 minutes, which is as reported in and out every quarter, well below our internal threshold of 1.5 minutes. This is important because as you notice, a core part of our revenue and profit come from this and this continue to underscore our commitment to make sure that our regulated business continue to perform and deliver the baseline revenue and profit. This will only make sure that we have a highly reliable and stable earnings as a result of stable transmission network. So for SID distribution minutes, you notice that the numbers for this year improved to 34.99 minutes compared to 35.72 minutes in 9 months 2024. So I think this is again, every quarter we would like to emphasize this because this is an assurance to all of you that stability of our regulated business ensures that we've got better services to our consumers and continue to deliver the earnings of the group. So if we move to a bit more financial matrices that we are collecting, you will notice that we have a stable collection trend and regulatory certainty continue to underpin our very resilient cash flow. So if you look at our trade receivables and collection, trade receivable remains stable. It has been around 4.4 to 4.7 billion year to date and continue to be stable. This actually also a reflection of stable collection trend with average collection period which continue to be below 70 days. So this has been at around 27-28 days. So very healthy numbers despite the jump on the revenue which has grown significantly by 18%. So you will notice as well as far as the AFA mechanism which has gone into effect as of 1st July 2025. This actually enable us to recover immediately all our generation cost because it is based on forward looking forecast every month. So this has also helped us in the sense that coal price has now stabilized at around 90 US dollars per ton this year compared to much higher 121 US dollars per ton as of September last year. So we believe that the fact that fuel prices are stabilizing, we have a strong collection trend, and it is being helped further by the newly implemented AFA mechanism, which will only continue to strengthen our working capital, as well as provide us a much healthier cash flow position. So in short, I think this is what you're going to see. We have put a lot more focus in our capital management, which is actually giving us the right result on the pretext of stabilizing fuel prices, strong collection. And this will continue to make sure that we have the liquidity and the strength to make sure that we have the financial resilience for us to continue investing. So this trend that you're seeing today actually will show that we have a strong foundation enabling us to weather the market condition and most importantly enable us to continue our long-term investment plan to make sure that we deliver the energy transition agenda. So if we go into more detail as far as the outcome during the quarter, you will have heard that we've got two reports came out from both S&P and Moody's. So both international rating agencies actually have reaffirmed their ratings of the company with stable outlook. This is something that is very important, like I said, because you have noticed that we have been investing a lot this year and we will continue to invest in 26 and 27 as well. So S&P Global Rating maintain the rating of A- and Moody's continue the rating of A3. But I think most importantly, probably this one, some of us, since most of you are equity analysts, you probably don't dive into the detail as far as the credit rating is concerned. But I think we would like to highlight that for S&P Global Rating, As a matter of fact, yes, we continue to be rated A-, but they have a component where they have a standalone credit rating profile of Tenaga as well. So that rating before this was BBB, so now that has been upgraded to BBB+. So before this, it's standalone BBB, but we've got two NOSH rating upgrade to A- to reflect the sovereign rating. But now, on our own, we have already been upgraded to BBB+. So we are only upgraded one NOSH reflecting the sovereign nature of the country. So this is an affirmation that for as far as S&P global rating is concerned, they believe that our cash flow is going to be a lot more resilient going forward. supported by two things. The first one is the AFA mechanism because this will actually stabilize our cash flow and receivable with immediate recovery of generation costs. And they have been tracking our performance in terms of the least liability, especially the PPAs. And now they are confident that the overall regulation formulation for PPA enable us to recover all the costs under the Power Purchase Agreement with the IPPs. So with those two adjustments to the cash flow forecast of the company, they believe that the cash flow strength of the company will only be better going forward. Moody's rating, they continue to reaffirm the A3 rating. Obviously, the normal assessment covers the fact that we have a very supportive regulatory regime and tariff reform that has been implemented by government that enhances the revenue visibility and cash flow efficiency. So obviously, when we talk about the credit rating, usually we'll take it as a blended, more indicative ratio of gearing ratios. But I think it's important to note that as far as both Moody's and SSP are concerned, they are actually monitoring a different cash flow profile. So just to give you some perspective, S&P in particular, they monitor funds from operation as a level of debt. and moody's they monitor retained cash flow as a percentage of that so yes i know a lot of you guys are monitoring our overall gearing ratio in particular but for credit rating purposes they actually dive in into more detail to make sure that the cash flow are supported by operation cash flow coming forward especially in an environment where you continue to invest So I think what we are putting across today is the fact that we believe that in summary, this recent upgrade and re-information continue to underscore the strength of our credit profile as well as our long-term financial outlook. So we always would like to point that as far as S&P in particular, this reflects increasing confidence in the robustness of our fundamentals as well as the fact that we have a stronger cash flow stability and visibility with minimal risk altogether this development reinforce our financial resilience and validate our disciplined approach to financial planning in managing our balance sheets so that we continue to enable our long-term business plan so i think we are very clear as far as we are concerned yes we are pushing for growth and we will continue to support the nation's energy transition and creating continuous value for our stakeholders With that, I'll pass back to Dato' Megat to cover the outlook for the year, Dato'.

Thank you very much, CFO, on the financial performance update. Looking forward, the forward guidance, especially for the next quarter, we anticipate the elasticity growth to grow in line with the IBR projection of 2.8% for the year. This reflects the overall growing economy, particularly from the commercial sector. In terms of our group cap tax, which we probably have more say in it compared to the so-called demand, we plan to invest a total of around $15 billion this year. with the estimated or projected $12 billion allocated to the regulated business and another $3 billion on the non-regulated business. So our investment remains in line with the national priorities, centering the grid, supporting demand growth during the Malaysia energy transition as well as to ensure that the capacity of generation is good for the country. By the end, we expect to strengthen our RE portfolio with an additional of 212 MW peak capacity, taking into account the commissioning of our 102 MW peak UK solar assets and the upcoming COD of our CGPP projects of 110 MW peak. On the capital management expansion, we remain fully committed to executing our CAPEX efficiently while maintaining a healthy cash position supported by a prudent working capital management. To our shoulders, we reform our commitment to honour our dividend policy and strive to provide sustainable dividend in the future. Ultimately, our focus is on ensuring long-term sustainable growth as we advance Malaysia energy transition agenda under NITR and this is reflected through our future investment that we are committed to deliver. So we will continue to position TNB as a leading provider of sustainable and reliable energy solution, creating value for our customers communities, shareholders as well as the nation. So with that, thank you very much for the listening.

Thank you, Datuk Megat and Mr. Barul, for your presentations. I would like to inform that we have 90 people joining us on WebEx. And let us now transition to the Q&A session. We will begin by taking questions from the attendees here in the room, followed by those joining us on WebEx. With that, I open the floor for questions. Please feel free to raise your hand and our staff will pass the microphone to you and you may proceed to ask your questions. Kindly introduce yourself and share your questions. Thank you.

Thank you very much. I have three questions. This is Jeremy from CGS. My first question is clearly on the taxes. There was the announcement in the Bursa saying that you have been allowed investment allowances. Can we get a bit more clarity as to how much of the $10.5 billion can be clawed back over how many years and how does that impact your effective tax rate moving forward? The second question is, can we get an update on contingent CAPEX? We are now one year into RP4. What's visibility like? Are we still looking at 70% utilization for RP4? And has there been any resolution on the remuneration mechanism for contingent CAPEX? And just a final question on data centers. I think the Deputy Mid-Tigre Minister highlighted there are some concerns on take-up. How should we as analysts as well as investors be reading this? Should we be concerned, firstly, from a tenaga suspected, and secondly, generally in terms of data center demand in Malaysia? Thanks.

Thank you very much for the three loaded questions to begin with. So on the tax allowance, as everyone understands, this is a tax matter that has been in the system for many years. That is a question of the reinvestment allowance. So, from a Tenaga perspective, we are glad that the Federal Court has made a decision with respect to the clarity on the reinvestment allowance bucket and as guided by the Federal Court decision, we have submitted the so-called reinvestment allowance claims under 7B. So recently we have received the so-called decision on the reinvestment allowance. So at this very moment, we are still looking at the so-called calculations of the so-called the investment allowable allowance and definitely we'll provide the feedback as soon as we get better clarity in terms of the details of the allowable investment allowance. So on one aspect, we are happy that the company can move forward with respect to our performance. And as reflected today, the third quarter performance or the current performance of Tenaga basically not affected by the situation that we have on the reinvestment allowance. Anything you want to add?

Yes. I think Datuk covered everything already. It should be okay. It's a delicate subject, Datuk.

The competition cap is 70% still on track. So if you look at the three-year period, definitely we are looking at a high percent of the so-called... quotidian capex. If you look at the scheme of things in respect to the base and quotidian capex, it is only expected that tenaga will use the so-called base capex first comparatively to the quotidian capex. Even notwithstanding that, we are going to... utilize the contingent CAPEX in the first months of this year because the way the contingent CAPEX is suggested is based on the triggering of CAPEX required for a certain category of demand. So if you ask me today, I think we are very much confident that We can't utilize the CAPEX. And one of the CAPEX that has been tasked for us to utilize is actually the contingent CAPEX with respect to the smart meters installations. That's where you can see from the report just now. we have achieved more than we are targeted but then again that is probably for the year but then again that is not the actual target because the actual target now has moved from 360 000 to complete the whole smart meter installation by this period so looking at that definitely the smart meter Triggering has happened, and we have started to utilize it, even though in the first year of the utilization. And if you look from the history of Tenaga, we have always in the last RP able to complete and deliver those CAPEX, and we tend to do the same for this project. for this capital allocation that we have for this year as well as the next two years. On the third question, data center underutilized demand should be a concern. From Tenaga National perspective, we are actually aware from day one that data center demand is going to be a step demand, meaning that every month there would be a demand increase. So it is not linear or something that you can expect from the other form of demand growth. So from tenaga, we feel that looking at the demand growth, it is very much a step approach on a monthly basis, and our retail team is monitoring that. And that's where, in terms of the generation capacity, I think there are a lot of questions in the past about can the generation capacity cater for it. I think that question arises because when you look at the demand projected or being asked by the data center, they always put the end demand in mind so that we can prepare in terms of the planning. For example, they will ask in their supply application saying that we want a 100 megawatt data center. But within those so-called projections, we actually discuss and have a good conversation I will say a view with respect to the demand growth within that 100 megawatt, which is a step demand. So that's why we are, in terms of the generation capacity, yeah, we mentioned now there's 7.1 gigawatt of capacity request. So if you add mathematically our generation and the demand that we have, it may be a concern to many customers. many people. But if you look at the growth, the 7.1 is required by a certain year. It is not today. So that's why Tenaga is confident that we can meet the demand. That's why we actually process it, the demand, and that is our advice to the government as well. So looking at that growth, I think we are seeing a steady growth of data center which is part of their planning because the way data center operate as well that they actually operate in a modular basis meaning that they can install the so called CPU or GPU in a modular form based on their so-called client requirement. So if you ask me, we are positive of this. Looking at the phase monthly demand growth, it is there. And it also provides us, Tenaga National, as an infrastructure company, the time to build this so-called generation asset as well our transmission and distribution asset. So we cannot ask for more from the perspective of utility. A good demand with respect to the so-called scale and the scale is not too demanding on our infrastructure because we are given the time to actually plan and deliver it so I think that is my summary with respect to data centers and in the past I think we have so-called invite the analysts to visit some of data centers. And we are also willing to do that if you feel that it's necessary to get the assurance from the data centers players themselves because we are having a good communication with them. And we know what they are up to in that sense. And they also always giving us the so-called heads up with respect what they require in the coming months. Thank you.

Thank you, Dato. So I open the floor for the next question.

Good morning, Datuk Megat and Encik Badrul. Thank you so much for this analyst briefing. A couple of questions from me. Congrats on the extension of three power plants under the EC's RFP. Can you help us understand in terms of the implications for Genco's earnings from this extension? Would it help Genco's earnings to grow or would it only just help Genco's earnings to sustain at current levels? That's the question on the extension. And also with regards to the new generation capacity, Can you help us understand whether there's a limit on the number of new plants that a bidder can win in this RFP? So that's question number one. Second question is with regards to your bed debt provision. So I think in this quarter, there was a receivable that was reclassified into a bed debt. around RM260 million. Can you give us a bit more colour as to whether this is truly a bad debt or is it just a case of the receivable having aged and you having to provide for it and collections are still underway? And is there more potential to come from this debtor or this receivable? Those are my two questions. Thank you. Sorry, I'm from CIMB.

Thank you very much for the questions. Three questions. I take the good one. The bad one, I leave to the, because it's bad debt, so I leave it. Anything bad, I think I will give to the CFO. So the first one is actually implication for Genco with respect to the extension. As you can see, the PPAs of the power plants, normally there is a two-tier pricing mechanism. There is a period where we earn based on the first-tier tariff, and then the second-tier, normally there is a second tariff. So with the extension, basically that will have a reset, meaning that we will move back to the so-called first-tier. So it provides us both the sustainability as well as the potential upside. with respect to the revenue for Genco. So that's why we are quite excited. Of course, it is dependent on our performance, but there's a potential for us to go for the upside because it becomes a reset with respect to the extension. I think the second question, new generation capacity, is there any limit for the Peter can win? I think in the RFP document, I think it is a public document, there is a megawatt, a range of megawatt specified for the new generation capacity. If I remember correctly, it is about 5,400 to 5,000 megawatt. So that is the capacity the country is looking at. So that's where the bids come about. So I don't think there is any limit for the bidder, but the limit is more, if you can say that's a limit, I don't think it's a limit, it is what the industry requires, it's about 5,000 megawatt. So for Tenaga National, we, as an incumbent, we feel that we have a good chance. Thank you.

On the second question, it's not bad, actually. Actually, this is, I think, it's really our more proactive approach to make sure that we comply with the provision in terms of what has to be impaired and all. But in this particular one, you are right, actually, it's more of accounting treatment. And this is actually an effort in the way that reflects the true nature. And no, we're not giving up. The collection is actually being underway. So it's just trying to make sure that we follow the accounting standard. But obviously, we are working with specific debtors to make sure that we continue to recover what is due to us. That's where you can see that to us, yes, this is specific instances. But more importantly, that's why you look at the collections receivable as well as the ACP that continue to be in there. So that's why the collections continue to be strong for us. Thank you.

Just to add, I think that is the prudent practice that TMB has been doing in the past as well. While we continue to collect and there are various means including the last resort is of course collection through legal but before that there are two other steps that we are taking to ensure that we get the so-called collection that is is due to us so anything that we collect now become an upside that's how i see so it is a probably a good debt provision rather than a bad debt provision i'm not in cotton so i can change anything thank you mr butrell and dato

Maybe we can have another question from the floor.

Hi, good morning. This is Isaac from AppInform. This is a follow-up question actually on phones questions. I mean, it comes to the RFP category one, can we just have some more clarity on when have we started and how long it's the extension, whether it's a optional plus one plus one or how does it work? number two is that when you come to the category two is your parka really powering project and maybe the pullout maybe the uh how that and have you secure all the gas turbine and whatnot thank you yeah so on the uh so-called uh rfp category one there are the extension

For the three power plants, there are various dates with respect to the start of the extension. What is important is that the extensions will come with the work that for us to ensure the continuity and reliability of the system, we will have to do the so-called rehab of the plant, meaning that We will do a good check with respect to the performance, the current performance, because it is already basically ending of the PPA. So we are going to start doing those, planning to do those, what are required with respect to ensure that the power plant works. will continue for the next five years of the station. But the COD will start around 2028 to 2029, and it is different from each power plant. And in the meantime, the power plant will operate based on the current PPAs. On the second, Repowering and Kappa secured a gas turbine, a current status. For Parker 1, yes, we have had a conversation with the manufacturers, and in particular one manufacturer. We believe we have secured the gas turbine for the project.

Thank you, Dato. Maybe we can have another question from the floor before we move to the WebEx. Is there any question from the floor? All right. So now we will now proceed to take question from the analysts who are joining us virtually for those on WebEx. If you have any questions, kindly type your name and the company you represent in the chat box. So, we have first question from Iwani Farzana from PNB. Hi Iwani, we have unmuted you. Kindly proceed your questions. Hi Iwani, we have unmuted you. I think we will proceed first to Rachel Tan from UBS. We have unmuted you. Can you hear us?

Hear me?

Yes, we can hear you.

okay thank you um so i have i have two questions um so the first is on the news show that you know you've lost in excess of five billion ringgit from electricity theft how does this impact uh earnings and is this accounted for in the regulated uh under the regulated business model uh second question is that your gearing ratio looks a bit low for a regulated business Since RP4 documents are not out yet, could I check what the target gearing ratio is for the regulated business, and does this affect your returns, or will you just get 7.3% regardless of the gearing level?

Okay, thank you very much, Rachel, on the first question with respect to the so-called loss on the electricity theft. I think we have the figures being quoted for a number of years. So with respect to the so-called TMB perspective, of course we have from a task force with respect to the theft of electricity, especially handling the Bitcoin's segment that has caused the losses to be much bigger than comparatively. So the task force is working together with the regulator, energy commission and also the ministry, how best we combat this so-called theft of electricity that is happening currently. And those figures that you have seen is actually part and parcel of the task force work. that the figures that we have identified and some of those figures we actually have recovered the losses so there are two perspectives figures identified and the other one is actually that is part of the task force work that we have recovered some of those thefts of electricity so with respect to the whole industry perspective As far as the regulated business, this is actually an industry loss because at the end of the day, the losses is calculated as part of the perish calculation. So it is actually, if I may use the word, it's actually being socialized to the whole industry. This is where we want to also to encourage the customers. The one that is not basically involved in this is actually affected because it is from the industry point of view, it is being socialized. So in that sense, TMB will continue to be aggressive. with respect to theft of electricity, but at the same time, we want also the public to help us actually report all these cases because the industry is actually at a loss rather than the TMB from the perspective of the company itself. So that is theft of electricity. The second question I leave it to Seifu.

Thanks, Rasha. I'm pleased when people say they think our gearing is relatively low because that's the way we should think about it. Because today, as for our gearing level, that's around 52.4%. And you will make references to the regulated industries guideline. So under the rig for our regulated business, the overall framework actually allows for 55% gearing ratio. So we believe that there is still some room for us to actually push the gearing ratio to make optimum use of our capital allocations. And like I said, yes, for regulated business, that's important. But of course, we are very aware that we've got to safeguard our credit rating profiles as well, which, as mentioned earlier, does not ties to specific gearing ratio, but rather the cash flow position of the company as a percentage of debt numbers. So we are focusing on this and you will see hopefully we'll be able to optimize our capital allocation as well as gearing level for both regulated and unregulated so that we can optimize the return to the shareholders. Thank you.

Thank you, Dato' and Mr. Badrul. So we have another question from Eliza Tay from Fidelity. so we have three questions here the first question for new gas generation capacity to be announced and 2025 when will potential plan start up and the second question is what was the power demand in megawatt from data center in 3q 2025 and the third question will be what was the power demand in megawatt from data center in 3q25

Thank you, Elizate, on the questions. The first one, for the new gas generation capacity to be announced end of 2025, when will potential planners set up? So based on the request for proposal, there is a timeline given or date given for the COD so it is going to be end by 2028 so as far as the industry and the regulator is concerned this is where the expectation of the new generation capacity to be taken place so which is about four years from now so this is also in line with the so-called required construction time of a new power plant between 36 to 42 months. So that is the dates as far as the new generation capacity is concerned. With respect to the power demand of data center, we give some numbers with respect to the demand. to show that there is a growth. So in June 25, it was 603 megawatt. In September end of the quarter, 701 megawatt. And I believe in October, it's already 850 megawatt. So That is the growth that we are seeing. So it is on a monthly basis. And I think probably the industry think this is a small number. This is not. 100 megawatt is a big number. Our generation capacity, for example, one of the hydro generation capacity, Cendro, for example, is 50 megawatt. So it's a big number. It is not kilowatt. It's megawatt. It's big in numbers. And I think probably if you ask me, I've been in industry for many, many years. We only see this kind of growth in the early 90s where we do have the so-called the FDI that is coming in. with respect to the manufacturing industry from the overseas market, making Malaysia as the best investment hub. And this is actually big. It is not kilowatt. We are seeing a growth of 100 megawatt a month. So I think Probably that is where electrical engineers like me appreciate it. But I think it is a big number with respect to the infrastructure that is required. And of course, it is a big number with respect to the sales that we are projecting. Thank you.

Thank you, Dato. So we have another question from Sumed Saman from JP Morgan. Hi, Sumed. Can you hear us?

three questions so firstly just a housekeeping um i saw in the the earnings uh there was a gain on financial instruments some 233 million or something uh could you please explain to us what that was and is that a recurring feature or non-recurring uh my second question is Actually, on the financial notes, there was a mention that Tanaka received later on 26 November about approval of investment allowances. Can I check if it's for the future or if it's for the past? And perhaps the third question, again, going back to the whole provision, 10.6 billion ringgit. Can we check what will be the steps that Tanaka will be taking going forward to potentially reverse these? Or do we think that this is all that we have to, you know, pay to the IRB anyway and there won't be any recoupment? Thank you so much.

Maybe I'll take the question on the provision.

So I think you all are aware that previously, obviously, we claimed the reinvestment allowance under 7A. And after the federal court decision, we reviewed our position and we submitted a claim under 7B, investment allowance. So we disclosed in our announcement that we received a letter from MOF on 26 November that was for investment allowance. So it is for Schedule 7B and of course it's for future income. But the investment allowance is actually from the perspective of the CAPEX previously spent originally claimed. So that's on the approval. But I think most importantly as well, as far as the amount of $10.6 billion previously disclosed in our quarterly result, as far as the litigations are concerned, you would notice that in the recent announcement, we have also made a statement that we have withdrawn and concluded all the legal arrangement with the tax authorities for that matter. So all cases have been closed. So for accounting purposes, we actually disclose as well in our PYA Note 29. that as far as the position of the company is concerned we have actually taken a pya adjustment to the balance sheet to risk retrospectively to actually reflect the actual situation so the tax cases was actually for prior years leading up to 2024 so it has been reflected as such in the prior year's adjustment to reflect the actual situation as far as the approval letter obviously i think is still fresh of the oven and we are actually still assessing the actual impact of the approval together with our auditors we should be able hopefully share with you um direct implication to our effective tax rate going forward hopefully but obviously we are already in quarter three in december already for 2025 So I think as far as the guidance is concerned, for 2025, we probably continue to guide it at the current level. You will see that nine months, we are at around 29%. Hopefully, however, obviously, going forward, we should be able to have a better, lower effective tax rate. so bear with us um it's it's coming through but we are we have to take this um properly step by step to make sure that we get the correct treatment thank you mr badroll so we will we will be moving on to the iwani farzana from pnb

So the first question will be, can we check for CAT2 project award? The announcement by year end, will it be only for partial award to certain players or lump sum? And for the second question will be under tax. For ITA, how much exactly was approved? total amount of 50% as guided to foreign investors? And does this approval also guarantee future ITA claim under 7A will be approved? If yes, will the guidance of approximately 30% tax be revised downwards? Additionally, for the approved ITA 2003 until 2024, since it can be deducted from future taxable income What will the strategy allow? Lump sum or if gradually, can you share over the span of how many quarters or years allowed? And the last question will be any update if the contingent cap tax earnings can be recognized in RP4? Or will it be the same case as to what happened in RP3 which means it can only be recognized on P&L in RP5?

Thank you very much, Iwani. I think the question on number one, whether the project award will be to certain players or lump sum, I think that is definitely beyond Tanaka National. It is the decision by the Energy Commission. So I would not want to comment or speculate on those. Thank you. And for the second question, maybe Sefo once more.

Thank you, Wani. I think this is just further on to deliberate from what I've mentioned just now. I think we can inform you that it's not the full amount. But it's a fair amount. And I wanted to be clear that I think you only have in her questions that 50% guided to foreign investors that did not come from us. We did not guide anything, any amount of the approval to anyone. you will understand that all we can say is it's a fair amount and that's all we can disclose at the moment. And I think what's important is, like I said, we are still assessing the impact. So I will not be able to tell you how long and all. So please bear with us just this time. And I mean, to put this into perspective, like Dr. Magat said, this has been there for the last 20 years. We are finally resolving it. So just give us a bit more time to actually do it properly this time around. So I think that's really all that we can actually inform you at this point of time. So and as mentioned earlier, this is already December tax rate for this year will be hopefully we'll be able to manage it a little bit. But in the long term, yes, we do expect. the tax rate to go down progressively but as all of you also would understand that there are for a big corporates like tenaga obviously there are also non-deductible expenses on our balance sheet including interest restrictions as well as changes in fair value and accretion of interest under mfrs 139 so to get to 24 simply like that will take a bit more work for us to get to there but i think we can get that yes it will improve over time as we finalize the impact of the approval by mof and last question on ap4 yeah on the last question on the ap4 cottage and capex uh definitely

we want the Earth-contagion CAPEX to be recognized in RP4 because it is a clear definition that there is a contingent CAPEX. Base and contingent CAPEX is clearly defined under RP4. And I think it only make reference to RP3. I think during RP3 period, I would like to say that the contingent CAPEX come after Meaning that in the beginning of RP3, there is no definition of quotidian CAPEX. So that's why the CAPEX after discussion with ST comes about in the next RP. I think that's the reason why when we negotiate RP4, we make sure that there is a structured way with respect to addressing the quotidian CAPEX. And I think we have gotten that structure way by defining both the base CAPEX and the contingent CAPEX with the so-called projects on both as well as the amount on both base and contingent CAPEX. So in that sense, we want to basically make a better definition on the recovery of the CAPEX.

and we hope to do so in our people thank you thank you dato and mr badra so we have another question coming from daniel from hong kong hi daniel can you hear us hi daniel i think we have unmuted all right um okay uh i think my question is very good answer

want to check if tenaga already accepted all the accounts prior years for these tax issues um does it mean that tenaga has to pay in advance the 10.5 billion first before able to claim the tax uh future i mean the ita in the bridge for offset the future income so first question um second question um for a capacity of a tenaga generation is about 13 gigawatt size generation capacity So based on the reported earnings of Gencore, about $250 million, is it considered a normalized earnings? That means your full years could be roughly just a normalized $400 million for this 13 gigawatt size capacity. Third question, I noticed that you guided on the RE for Tanaga, you have another 7 over gigawatt. Can I get a breakdown of this 7 over gigawatt of RE? That's all from me.

Thank you. We'll take the number one.

I think as mentioned earlier, I think let's be clear that for the last 20 years, we have claimed under 7A for reinvestment allowance for CapEx previously spent. So when the federal court ruled for us to claim under 7 , we make the application under 7 for the same capex that was spent for the last 20 years. So we talk about the approval just now. Yes. So that's why as far as actually the actual tax liabilities are concerned, we can confirm that as far as payment is concerned. Yes. As part of overall application for 7B application, we actually paid all the tax amount that has been assessed to us. So that's why now we've got the approval for investment approval for future income. Obviously, if we're talking about the cash flow, yes, we have paid it. And that's why we have actually closed all the legal proceeding with the tax authority. So then obviously, naturally, again, what was the impact going forward? That one we are still assessing, like I said, but I think it's important to recognize that the overhang in terms of what can happen to us in terms of exposures, in terms of whether it has been settled, that is finally we put a closure to it. So meaning there is no more exposure in terms of provision or heat to our PNL as far as the exposure is concerned. So exposure are close and it reflects the retrospective adjustments to our balance sheet to reflect actually the fact that our retained earnings was built up much higher than it was supposed to for the last 20 years. So that's why retrospectively, we adjusted to retained earnings to reflect actually over the last 20 years that would have been the actual retained earnings during the years. That is also in line with the fact that we made the payment for all the tax exposures. So that was the closure to it.

QCFO? So for the tax item, I think what Tenaga has done is actually to comply with the regulation with respect to the payment. I think everybody is aware of the regulation with respect to tax and the payment of tax for the country. And we are actually in compliance with that. On the second question, the JNCO earnings projection, I think the figure that we have shown is the SDN of third quarter figure of $260 million. We hope that, of course, the figure can change towards the end of the year. We hope it's going to be a better figure. And the third quarter, sorry, the third question, RE capacity breakdown of 7.6 gigawatt hour in the pipeline. So we have a number of pipelines gigawatt in our stable. First is the domestic fund. As mentioned, part of the pipeline is the hydro-floating solar pipeline. We have yet to start construction, but it is in our pipeline. So we are talking about 2,000 to 2,500 megawatt. We have also a pipeline with respect to our investment in the U.K. There are a number of potential bid or even securing the land and also the capacity in the U.K., And we have also the pipeline capacity in Australia. As everyone remember, our investment in Australia, we buy a company that has a right to build. re generation over there so a combination of malaysia australia as well as the uk provide those so-called re pipeline of 7.57.6 gigawatt for tanaka national so meaning that our this is part and the foundation for us taking into account the objective of Tenaga in terms of meeting the EHSG commitment that we have for the company as well as for the country.

Thank you, Dato' and Mr. Badrul. And we have a question from Zihen from Apex. Hi, Zihen. Can you hear us? Hi, Zeehan. I think you have unmuted you.

From Apex Securities. Yeah, so actually only two questions from me. So I'm going to bore you again with text question. So regarding the investment IA claims, right? Since we don't know how much is the amount now, but let's say If, I mean, the amount not approved, right, by Ministry of Finance, will it be straight away booked as tax expense in fourth quarter or how does it work? So that's the first question. And second question is regarding the operating expense, right? So just want to know if for the fourth quarter, whether the operating expense will be more or less stable from third quarter because I think there was precedence where the fourth quarter expense went up a lot. I think it was due to the insurance costs and maybe a bit of return maintenance costs. Yeah, that's all for me.

guess i'll take this one at all yep i think yes uh that's why i think it's important to understand that as far as the texts are concerned now the 7a and 7b we actually took the position and this is agreed with our auditor that we have to treat the two things separately so it's important to note that as far as the previous exposures are concerned irrespective of whether the approval comes or not those are already put to closure in terms of the right accounting treatment for it in which case was that we have incorrectly filed our tax return for the last 20 years so we have corrected that one through prior year adjustment of 10.6 billion to our retained earning So that is to making sure that as far as exposures and liabilities arising from the previous treatment is already put to close. And this is consistent with the fact that we have already paid the tax assessment as well. So, meaning it's settled in terms of that. There is no more future exposures or anything. So, it's done for that part. So, the approval letter that we got from MOF is actually, yes, in respect of the CAPEX that we have spent in the past, but it's being approved for us to utilize it as investment allowance. So going forward, when we have our income, we would be able to utilize this allowance to actually improve our effective tax rate going forward. So there is no question about the amount is not approved or anything like this because it is already approved for previous CAPEX that we have spent under the form of investment allowance. So now going forward, this is what we are assessing in terms of how do we treat the recognition of the investment allowance that was approved by MOF against our future income. So basically to put it simply, downside has all been settled. Now it's only upside that we are still assessing the impact for tenaga. so for the second question on opex um most of you have covered tenaga very long time so you would know that usually yes there is um slight uptick in our quarter for opex leland was already nodding her head so because she has seen that so many times over the many years But of course, I think we want to make sure that seasonality is adjusted over time, but at the same time, we want it to reflect the actual operation as well as nature of the expenditure on the ground. But by nature, however, the fact that all of us humans operate on yearly cycles, obviously, Quarter 4, we want to make sure that everything is, the I's are dotted and the T's are crossed across all our expenditure. Naturally, you should expect slightly higher, but nothing unusual. It's just the normal cycle of the reporting of the company.

On question number 2, sometime we also probably have to look from the other lens, saying that normally in the quarter four, many things get done. Because, you know, this is where the so-called KPIs for the company. So you're actually going to see both. The delivery becomes heightened in quarter four. And of course, we may require OPEX to be part of the delivery. And it should be also work in tandem. I think that's what we are trying to Trying to do, yes, there could be an increase in the so-called operating expenses, but we have to make sure that it is also coupled with the better delivery in quarter four. And normally that's what happens because the yearly cycle of KPIs take effect towards the end of the year.

Thank you, Dato and Mr. Badrul. Due to the time constraints, I think we can have one last question from the floor. since there is no question from the floor. Ladies and gentlemen, at the moment, I believe we have addressed all the questions from the analysts. That is all the time that we have for the Q&A. I would like to thank you for your questions. Now, I will pass to Dato' Insinia Megat Jalaluddin bin Megat Hassan, President and CEO of TNB, for his closing remarks.

Thank you very much, Azim. Ladies and gentlemen, in this room as well as over the online, thank you very much for the questions. As always, please reach out to our Investor Relations team for any further questions. We hope that we have provided a good answer moving forward for the company. To summarize today's session, The group's third quarter performance continues to reflect the stability of our regulatory business and the steady momentum from the commercial sector demand, particularly data centers, business services, as well as our retail customers. We are also seeing strong progress across our strategy initiative right to the ASEAN Power Grid Corporation. I think all of you will hear more, especially on the APG next year as we move into the execution mode to strengthen the Malaysia position as the regional clean energy hub. As we charge forward under the National Energy Transition Roadmap, we see significant opportunities in RE energy generation. grid modernization and customer-driven energy solution. We remain focused on capturing these opportunities reciprocally while supporting Malaysia's pathway towards net-zero 2050. So in conclusion, we reaffirm our commitment to driving sustainable growth, enhancing grid readiness and shaping Malaysia's long-term energy transition. By continued trust and support, we remain confident in our ability to build a stronger, greener, and resilient energy future for the nation. Rewarding our shoulders remains the top priority, and we truly value your continued confidence in us.

once again thank you very much and has a present day ahead thank you ladies and gentlemen we have come to the end of our session on behalf of tenaga national berhad we thank you for your participation in today's briefing for any questions that remain unanswered rest assured that we will promptly address them following this event If you require further clarification or inquiries, feel free to contact our Investor Relations Officers or email us at tenaga-ird at tnb.com.my. To all our attendees, whether present physically or virtually, we appreciate your time and engagement. As you leave the hall, we warmly invite all analysts to help themselves to a light refreshment available at the back. Thank you once again and we look forward to seeing you in future sessions. Take care and have a wonderful day.