TNB IAR 2019v2 PDF

Tena ga N as i on al B erh ad (TN B)
Inside This Report

OVERVIEW OF TNB 01
Our Strategy
040 Future Generation Sources
GOVERNANCE 06
042 Grid of the Future
002 Our Reporting Journey 086 P
rotecting Value Through
044 Winning the Customer
• Scope and Boundary of Reporting Effective Governance
046 Future Proof Regulations
• Our Reporting Suite
004 Overview of TNB Our Capitals
• Our Vision 048 Financial Capital SUSTAINABILITY
• Our Mission 050 Manufactured Capital STATEMENT 07
• About Us 052 Natural Capital
• Who We Serve 054 Intellectual Capital 100 About This Statement
• O ur Credit Ratings 056 Human Capital 101 Sustainability at TNB
• O ur Shareholding Structure 058 Social and Relationship Capital 107 Spirit of Responsibility
• G eneration Fuel Mix 108 Delivering Sustainable Value
060 Our Scorecard
• Our Customers’ Profile 113 Feature Story: Reliable Energy
006 How We Are Structured With Affordable Tariffs
008 Our Value Chain PERFORMANCE REVIEW 114 Customer Centricity
010 O ur International Footprint 062 Financial Highlights 116 Feature Story: Smart Meters
• Where We Operate 063 Group Quarterly Financial 117 Minimising Environmental
Performance Impacts
064 Six-Year Group Financial Summary 119 Climate Change
KEY MESSAGES 02 065 Six-Year Group Growth Summary

066 Simplified Group Statement of
120 Feature Story: myGreen+ and
mGATS
Financial Position 121 Enhancing Capabilities
015 Chairman’s Letter to Shareholders
• Total Assets 126 Prioritising Health, Safety and
018 President/Chief Executive Officer’s
• Total Liabilities & Equities Personal Well-Being
Review
068 Statement of Value Added 128 Strengthening Partnerships
069 Distribution of Value Added Brightening Surrounding
070 Core Revenue Communities
2019 KEY HIGHLIGHTS 03 071 Financial Calendar 129 Feature Story: Rural
Electrification
072 Investor Relations
026 Awards and Achievements • TNB Share Price, FBM KLCI 134 Feature Story: My Brighter Future
030 Group Business Model Index and Volume Traded In
032 Key Highlights FY2019
• Financial Highlights SHAREHOLDERS’
INFORMATION 08
LEADERSHIP 05 135 N
otice of the 30 th Annual General
04
MANAGEMENT DISCUSSION
& ANALYSIS Meeting
076 Corporate Information
138 Statement Accompanying Notice
077 Organisational Structure
STRATEGIC BUSINESS REVIEW of the 30 th Annual General
078 Board of Directors
Meeting
034 Our Operating Environment 080 Our Board of Directors
• Industry Review and Outlook 082 Our Senior Management • Proxy Form
Cover Rationale
Our cover design encapsulates our transformation journey towards our aspiration to become a renewables leader in the ASEAN region,
whilst ensuring sustainable business growth and value creation. We will continue to empower the progress of the people and the Nation,
with our extensive suite of products and services.
We will achieve this by leveraging on innovation and emerging technologies, diversifying our energy sources, upgrading into digitally-
enabled networks, enhancing customer experience and working towards a stable and sustainable regulatory landscape.
In tandem with this, we will continue to inculcate sustainability practices into all our operations to ensure we meet future challenges,
build fruitful relationships and create value for all our stakeholders.
Te n a g a N a s i o n a l B e r h a d I nte g rate d A n n ua l R eport 2019 PG. 002
Our Reporting
Journey
As the largest electricity utility in Malaysia, we are a key contributor to Nation building. In
recent years, we have also embarked on our sustainability agenda through efforts such as
renewable energy and other environmental as well as social initiatives as we seek to add value
to all our stakeholders. We believe these activities will not only take Tenaga Nasional Berhad
(TNB) into the future, but also continue to grow our business in the long term as we transform
ourselves into to be one of the world’s top 10 global utility by 2025.
This report aims to deliver a transparent, concise and balanced overview of our business
direction, strategies and performance as well as an assessment of our ability to create value.
SCO PE AND BOU N D A R Y OF R E POR T I N G
This report provides information relating to our strategy and business model, performance, prospects and governance, for the
period 1 January 2019 to 31 December 2019, unless otherwise stated.
REPORTING FRAMEWORK TARGETED READERS FORWARD-LOOKING STATEMENTS

In producing this report, we are guided This report is primarily intended to address This report contains certain forward-
by the International Integrated Reporting the information requirements of our looking statements with respect to TNB’s
Framework (IIRF) of the International shareholders and prospective investors. financial position, results, operations and
Integrated Reporting Council (IIRC). Other The information also includes the way we businesses. These statements and forecasts
reporting requirements and frameworks create value for other key stakeholders, have uncertainty as they describe future
applied are the Main Market Listing including our employees, customers, events and depend on assumptions that
Requirements of Bursa Malaysia Securities regulators and the community. may change in the future.
Berhad (MMLR), the Corporate Governance
Guide (3rd Edition) issued by Bursa
Malaysia, the Malaysian Code on Corporate
Governance 2017 (MCCG) and the
Companies Act 2016.
OUR STRATEGY OUR CAPITALS
FINANCIAL CAPITAL INTELLECTUAL CAPITAL
Refers to the pool of funds that is available Refers to intangibles associated with
to the organisation for use in the an organisation’s brand and reputation,
production of goods or the provision of knowledge-based intangible systems
Future Generation Sources services, which includes funds obtained as well as intellectual property such
through financing or generated by means as patents and copyrights.
of productivity.
MANUFACTURED CAPITAL HUMAN CAPITAL
Grid of The Future Refers to manufactured physical objects Refers to the competencies and
that are available to an organisation for capabilities of an organisation’s
use in the production of goods or the employees, including their motivations
provision of services, including physical to innovate.
infrastructure or technology, such as
equipment and tools.
Winning The Customer
SOCIAL AND
NATURAL CAPITAL
RELATIONSHIP CAPITAL
Refers to resources such as water, fossil Refers to the relationships between
fuels, solar energy, crops and carbon sinks, an organisation, its stakeholders and
which cannot be replaced and are other networks, and the ability to share
Future Proof Regulations essential to the functioning of the information to enhance individual and
economy as a whole. collective well-being.
PG. 003
OV ERV I E W O F T N B
CONTENTS REGULATIONS COMPLIED
INT E G RATE D
ANNUAL RE POR T • Provides a comprehensive • Companies Act 2016
2019
assessment of the Group’s • Main Market Listing Requirements of
performance for 2019 and Bursa Malaysia Securities Berhad
outlook for 2020
• Malaysian Code on Corporate Governance
2017
CORP ORAT E GOVERNANCE &

FINANCIAL S TAT EM ENT S 2 019
OUR RE PO RTI N G SU I T E
At TNB, we produce a range of corporate reports for the benefit of our stakeholders, to provide them with critical information
on our business operations and performance. Our 2019 Annual Report Suite provides a comprehensive account of our value
creation activities. Our Integrated Report is a key document in the suite and should be read in conjunction with the Corporate
Governance & Financial Statements 2019.
OUR REPORTING SUITE COMPRISES
Disclosures Reporting Framework
Integrated Report (IR) 2019 • MCCG by Securities Commission
TNB’s IR has been produced with the objective of providing our stakeholders with • MMLR
a comprehensive overview and a balanced assessment of our financial and non-
• IIRF by the IIRC
financial performance.
• Companies Act 2016
Our stakeholders are informed of our strategy, businesses and performance, approach
to governance and risks as well as future aspirations. • Malaysian Financial Reporting Standards
(MFRS)
The report demonstrates our accountability and strengthens the trust of our
stakeholders. • International Financial Reporting Standards
(IFRS)
Corporate Governance & Financial Statements (CGFS) 2019 • MCCG by Securities Commission
TNB’s CGFS presents detailed reporting of Corporate Governance Statements, including • Corporate Governance Guide (3rd Edition)
Corporate Governance Overview Statement, Board Nomination and Remuneration issued by Bursa Malaysia
Committee Report, Board Audit Committee Report, Board Risk Committee Report
• MMLR
and Statement on Risk Management and Internal Control.
• Companies Act 2016
Our CGFS also includes our Audited Financial Statements consisting of Directors’
Report, and Independent Auditors’ Report. • MFRS
The CGFS provides detailed governance and financial disclosures to our shareholders, • IFRS
investors, analysts and other interested parties.
TNB’s Board of Directors (Board) acknowledges its responsibility in ensuring the integrity of this Integrated Report, which in the
Board’s opinion addresses issues that are material to the Group’s ability to create value and fairly presents the integrated
performance of TNB.
This report has been prepared in accordance with the IIRC <IR> Framework.
Overview
of TNB
TO BE AMONG THE LE ADING

O UR VISIO N
C O R P O R AT I O N S I N E N E R G Y A N D
R E L AT E D B U S I N E S S E S G L O B A L LY
OUR MISSIO N
WE ARE COMMIT TED TO E XCELLENCE IN O UR

PRODUC TS AND SERVICES
TNB is the largest electricity utility in Malaysia and a leading

utility company in Asia with an international presence in
United Kingdom, Kuwait, Turkey, Saudi Arabia, Pakistan,
India and Indonesia. Since our listing on 28 May 1992, we
ABOU T US
have grown from strength to strength to become a utility

that is responsive to the needs of our stakeholders and
the marketplace. In all of our endeavours, we are driven by
our firm belief that we have a responsibility to improve the
lives of the people of Malaysia. We therefore look forward to
continuing to ensure a better and brighter tomorrow for us
all.
W E H AV E S ER V ED O U R I N D U S T R I A L , C O M M ER C I A L A N D R E S I D EN T I A L
C U S T O M E R S I N M A L AY S I A F O R O V E R 7 0 Y E A R S .
W HO WE SERVE
INDUSTRIAL COMMERCIAL RESIDENTIAL

Our industrial customers engage Our commercial customers are our Our residential customers represent the
in the manufacture of goods and second-largest source of electricity majority of Malaysia’s estimated 32.68
services. Although they make up sales, carrying out the business and million population. As our largest market,
the smallest segment of our commercial activities which drive our they drive us to deliver excellence in our
customers, they also account for economy. products and services.
the majority of our electricity sales.
PG. 005
OUR CUSTOMERS’ PROFILE
B R E A K D OW N O F C U S TO M E R S
OUR CREDIT RATINGS (P enin s ular Malay sia o nl y )
INTERNATIONAL RATING AGENCY OTHERS INDUSTRIAL

1.0% 0.3%
Standard &
Poor’s Ratings
BBB+ Moody’s
Investors
A3 89,975 30,520
Services (S&P) Stable Services Stable COMMERCIAL
(Moody’s) 17.0%
1,575,198
LOCAL RATING AGENCY
TOTAL
RAM Rating
Services
AAA Malaysian
Rating
AAA IS / 9.25
Million
Berhad (RAM) Stable Corporation AAA Stable DOMESTIC
Berhad 81.7%
(MARC) 7,553,229
OUR SHAREHOLDING STRUCTURE

C U S TO M E R BA S E G R OW T H
17.6%
27.3%
2.32%
a n in cr e a s e f r o m F Y 2018
TNB
Foreign Shareholding
13.8% Shareholding
CUSTOMER SATISFACTION INDEX (CSI)
Pacific Africa
8.1
0.1% 0.1%
7.1% 18.1%
Asia 16.1%
Europe 30.2%
26.3%
Total Government
Agencies 68.6% TOTAL ENERGY SOLD
North America
43.3% P E R S E C TO R
Khazanah Nasional Berhad
Permodalan Nasional Berhad OTHERS*
Employees Provident Fund Board 3.0% INDUSTRIAL
38.6%
Other Government Agencies
Local Corporation & Retail DOMESTIC
Foreign Shareholding 23.6%
123,252.0
GENERATION FUEL MIX GWh
in P e nin s ula r M al ay s ia f o r F Y 2019
COMMERCIAL
Hydro
3.10% Solar
34.8%
Others
0.60%
0.10%
* O
thers includes Agriculture, Mining, Public Lighting,
EGAT, LPL, TNBI (UK WIND)
E N E R GY U N I T S S O LD BY R E G I O N
122,101.7GWh
Gas
42.30% Coal
53.90%
(P e n in s ul a r M al ay s i a a n d S ab ah)
1,150.3GWh
(P ak i s t a n , U n ite d K in g d o m)
How We Are
Structured
TNB TNEC GMR ENERGY
TNB FUEL MANJUNG CONSTRUCTION
LMT CAPITAL
LIMITED
SERVICES SDN. BHD. 30%
FIVE SDN. TNB SDN. BHD. LEKIR BULK (Dormant)
SDN. BHD. BHD. WESTERN (Dormant) TERMINAL 100%
ENERGY SDN. BHD.
100% 100% 100% SAUDI-MALAYSIA
BERHAD
100% 50% WATER &
100% BANGSAR ELECTRICITY CO.
TNB ENERGY PELABUHAN LESS 1 SHARE LTD.
JANAMANJUNG SYSTEMS LUMUT SDN. LUMUT 50%
TNB PRAI
SDN. BHD. BHD. MARITIME
SDN. BHD. SDN. BHD. TERMINAL
100% 100% SDN. BHD. MALAYSIAN
100% 100%
SELESA SHOAIBA
ENERGY LBT TWO SDN.
100% BHD. (Dormant) CONSORTIUM
ALLO TNB SYSTEMS SDN. BHD.
NORTHERN SDN. BHD.
TNB PASIR TECHNOLOGY
ENERGY (Dormant) TREK KEMBARA 20%
GUDANG SDN. BHD. BERHAD SDN. BHD.
70% 100%
ENERGY 100% (In Members’
SDN. BHD. 100% Voluntary Winding Up)
INDEPENDENT
100% ABRAJ POWER
SEGMEN KEMBARA
INTERNATIONAL
TNB COOLING SDN. BHD.
LTD.
ENGINEERING LLC AIRPORT (In Members’
TNB TOPAZ COOLING Voluntary Winding Up) 100%
ENERGY CORPORATION 49%
ENERGY
MALAYSIA SDN. BHD. 100%
SDN. BHD. SUPPLY
TRANSFORMER 100% SDN. BHD.
100% POWER AND
MANUFACTURING 77%
INTEGRAX ENERGY
SDN. BHD.
BERHAD INTERNATIONAL
100% TNEC TOMEST
OPERATIONS ENERGY
(MAURITIUS)
TNB RETAIL 100% LTD.
AND MANAGEMENT
SDN. BHD. MAINTENANCE SDN. BHD.
SDN. BHD. (In Members’ Voluntary 100%
100% (Dormant) Winding Up)
100% 51%
Te n a g a N a s i o n a l B e r h a d
100% 100% 100% 100%

100% TNB TNB
UNIVERSITI TNB
TNB RESEARCH TENAGA ENERGY INTERNATIONAL
GLOBAL SDN. BHD. NASIONAL SERVICES SDN. BHD.
100%
CAPTIVE (L) SDN. BHD. SDN.
TNB BHD.
LTD
CONNAUGHT 100% 40% 50% 100%
100%
BRIDGE
TNB LABS GUNUNG VORTEX TENAGA
SDN. BHD. SDN. BHD. TENAGA
UNITEN R&D 100% SOLAR INVESTMENTS
100% SDN. BHD.
SDN. BHD. INVESTMENTS UK LTD
TENAGA
TNB S.A.R.L.
E MOBILITY
100% INTEGRATED YAYASAN SOLUTIONS
100% SDN. BHD. 100% 100%
LEARNING CANSELOR
TNB-IT TNBX SOLUTION UNIVERSITI VORTEX TENAGA
SDN. BHD. 100% TENAGA SOLAR UK WIND
SDN. SDN. BHD. NASIONAL 70%
VENTURES
LIMITED
BHD. TNB MAEVI UK LTD
100% RENEWABLES SDN. BHD.
SDN. BHD.
TNB GLOBAL 100%
VENTURES GVO WIND
100% 49% 40%
CAPITAL LIMITED*
BERHAD TNB BUKIT METROSPHERE FTJ BIO POWER
100% SELAMBAU HYDRO TERSAT SDN. BHD.
SOLAR SDN. SDN. BHD. 100%
TNB POWER BHD.
100% BLUEMERANG
GENERATION
CAPITAL
TNB SDN. BHD. 100% 49% 20% LIMITED*
SEPANG GSPARX SDN. SD PLANTATION JANA
SOLAR BHD. TNBES RENEWABLE LANDFILL SDN.
SDN. BHD. ENERGY SDN. BHD. BHD.
* GVO Wind Limited and Bluemerang Capital Limited Group of Companies are detailed out on pages 121 to 124 of the Corporate Governance & Financial
Statements 2019.
PG. 007
30% SAUDI-MALAYSIA
OPERATION &
OASIS PARADE MAINTENANCE SERVICES LEGEND:
100% COMPANY LIMITED
SDN. BHD.
Subsidiaries Simple Investments
GAMA ENERJI
ANONÎM ȘÎRKETÎ Associates Trust Foundations
TNB OPERATIONS
30% & MAINTENANCE Joint Ventures
INTERNATIONAL 10% ALIMTIAZ
OPERATION &
LTD. MAINTENANCE
GLOBAL POWER 100% COMPANY ASSOCIATES
ENERJÎ SANAYÎ VE LIMITED
TÎCARET ANONÎM 49% FIBRECOMM NETWORK (M) SDN. BHD.
ȘÎRKETÎ TRICHY ENERGY
TRICHY
LIMITED 20% TEKNOLOGI TENAGA PERLIS CONSORTIUM SDN. BHD.
100% (Dormant) POWER
LIMITED
100% (Dormant)
20% GB3 SDN. BHD.
ARUNA 100% 20% JIMAH ENERGY VENTURES HOLDINGS SDN. BHD.
SERVICIOS
TNB REMACO
INTEGRALES PAKISTAN 100% JIMAH ENERGY VENTURES SDN. BHD.
S.L.U. (PRIVATE) LIMITED
100% 100% JOINT VENTURE
50% SEATRAC SDN. BHD. (Dormant)

TENAGA WHR 1
TENAGA CABLE SDN. BHD.
INDUSTRIES
SDN. BHD. 100% SIMPLE INVESTMENTS
76% PERUSAHAAN OTOMOBIL ELEKTRIK (MALAYSIA)

20%
SDN. BHD. (In Winding Up)
GMR TENAGA
OPERATIONS
10% LABUAN REINSURANCE (L) LTD.
TNB REPAIR AND AND
TNB VENTURES MAINTENANCE
MAINTENANCE 8.91% FEDERAL POWER SDN. BHD.
PRIVATE
SDN. BHD. SDN. BHD. LIMITED
100% 100% 50% TRUST FOUNDATIONS
YAYASAN TENAGA NASIONAL
RETIREMENT BENEFIT TRUST FUND
DORMANT COMPANIES
100% 70% 60%
TNB JIMAH EAST KAPAR ENERGY 100% TNB CAPITAL (L) LTD.
POWER POWER SDN. VENTURES SDN.
DAHARKI BHD. BHD. 100% TNB RISK MANAGEMENT SDN. BHD.
LTD.
100% TNB HIDRO SDN. BHD.
100% TNB TRANSMISSION NETWORK SDN. BHD.

100%
TNB LIBERTY 100% TNB GENERATION SDN. BHD.
POWER
LIMITED 60% 100% TNB DISTRIBUTION SDN. BHD.
TENAGA
SWITCHGEAR 100% TNB ENGINEERS SDN. BHD.
SDN. BHD.
100% TNB PROPERTIES SDN. BHD.
83%
SABAH 100% TNP CONSTRUCTION SDN. BHD.

60%
ELECTRICITY
SDN. BHD. TSG ORMAZABAL 40% KM METRO-TNB PROPERTIES SDN. BHD.
SDN. BHD.
100% ORION MISSION SDN. BHD.
100% 95%
100% LAHAD DATU HOLDINGS SDN. BHD.
ELOPURA PT. TENAGA NUSA
POWER BAKTI (Dormant)
SDN. BHD. 51%
100% LAHAD DATU ENERGY SDN. BHD.
SOUTHERN EASTERN SABAH POWER CONSORTIUM

50%
34% POWER SDN. BHD.
TENAGA MIDDLE GENERATION 70% SEPANG POWER SDN. BHD.

EAST ELECTRIC SDN. BHD.
CONTRACTING L.L.C MANJUNG ISLAND ENERGY BERHAD
(Subsidiary as defined by MFRS 10, 11 and 12)
The information is as at 17 March 2020.

Our
Value Chain
GENERATION GRID
As the key component of our electricity production, the Generation The Grid Division links the power produced
Division is entrusted to operate and maintain TNB’s portfolio by our Company and IPPs throughout
of power generating assets, comprising of thermal generation Peninsular Malaysia with the Distribution
facilities and major hydro-generation schemes in Peninsular Division’s network. Electricity is also
Malaysia. In addition, the Division also supports the operations and transmitted directly to large industrial
maintenance of six (6) Independent Power Producers (IPPs). customers via the National Grid.
NUMBER OF POWER PLANTS MAXIMUM DEMAND ON 18 APRIL 2019
47 Plant s 18, 566 MW

for Peninsular Malaysia
for wholly-owned power plants in Peninsular Malaysia only
LENGTH OF DOMESTIC TRANSMISSION NETWORK

TOTAL DOMESTIC GENERATING CAPACITY
2 3, 96 4 Circuit-KM
10,617. 53 MW for wholly-owned transmission network Peninsular Malaysia
for wholly-owned power plants in Peninsular Malaysia DOMESTIC TRANSMISSION SUBSTATIONS
456 Unit s
AVAILABILITY for wholly-owned transmission network Peninsular Malaysia
Equivalent Availability Factor (EAF)
NUMBER OF TRANSMISSION TRANSFORMERS OPERATED
83. 35 % 1, 304 Unit s
for wholly-owned power plants in Peninsular Malaysia
for wholly-owned transmission network Peninsular Malaysia
RELIABILITY SYSTEM MINUTES

Equivalent Unplanned Outage Factor (EUOF)
0. 27 Minutes for Peninsular Malaysia
6.63 % which has been consistently below the 2-minute mark since FY2009
for wholly-owned power plants in Peninsular Malaysia

SYSTEM RESILIENCE
ZERO Load Los s for Peninsular Malaysia

for the 500kV system since FY2008
SYSTEM AVAILABILITY
99.78 % for Peninsular Malaysia

PG. 009
DISTRIBUTION NETWORK RETAIL
The Distribution Network Division is responsible The Retail Division strives to win our
for the asset lifecycle of the Nation’s distribution customers by building long-term
electricity supply system to the end-users, and meaningful relationship through
ensuring an uninterruptible supply of power to continuous ongoing customer centric
businesses and homes. approaches.
LENGTH OF DOMESTIC DISTRIBUTION NETWORK TOTAL NUMBER OF CUSTOMERS
683,008 Circuit-KM 9. 25 Million

for wholly-owned distribution network Peninsular Malaysia Customers in Peninsular Malaysia
DISTRIBUTION SUBSTATIONS UNITS SOLD IN 2019
83, 467 Unit s 116, 525. 41 GWh

for wholly-owned distribution network Peninsular Malaysia
sales by wholly-owned retail Peninsular Malaysia
NUMBER OF DISTRIBUTION TRANSFORMERS OPERATED
87,113 Unit s
for wholly-owned distribution network Peninsular Malaysia
ELECTRICITY DISTRIBUTED
116, 525. 41 GWh

for Peninsular Malaysia
SERVICE RELIABILITY
System Average Interruption Duration Index (SAIDI)
48 .13 min/cus t / yr for Peninsular Malaysia

2018: 48.22 min/cust/yr
Our International
Footprint
WH ERE WE OPERA T E
UNITED KINGDOM
Power Plant
TENAGA WIND VENTURES UK LTD

(100% Equity)
Capacity:
26.1MW
VORTEX SOLAR INVESTMENTS S.A.R.L.
(50% Equity)
Capacity:
365MW
Total Capacity:
391.1 M W
Energy Source:
• Wind • Solar
KUWAIT
Power Plant
SABIYA POWER GENERATION &

WATER DISTILLATION PLANT
Capacity:
225MW
DOHA WEST WATER DISTILLATION
STATION
Capacity:
240MW
SHUAIBA NORTH POWER Operations & Management
GENERATION & WATER Services TURKEY
DISTILLATION PLANT
Capacity: – Maintenance Services Agreement
Power Plant
900MW – Mechanical Works
DOHA WEST PLANT
204,000 m 3 /day water GAMA ENERJI A.Ş.
(30% Equity)
– Instrumentation & Control Systems
Total Capacity: Capacity:
SHUWAIAKH PLANT
1,365MW DOHA WEST PLANT 1,102MW

Energy Source:
Energy Source:
• Wind • Natural Gas
• Natural Gas • Distillate
• Hydro
LEGEND:
Active Contracts Completed
PG. 011
PAKISTAN
Power Plant
LIBERTY POWER LTD

(WHOLLY-OWNED)
Capacity:
235MW
Total Capacity:
INDIA
235MW
Energy Source:
Power Plant
• Natural Gas
GMR ENERGY LTD
(30% Equity) Operations & Management
Capacity: Services
2,299MW – TNB REMACO & BALLOKI POWER PLANT
(as at September 2019, including the
NATIONAL POWER PARK MANAGEMENT
capacity of Barge)
COMPANY LIMITED – Balloki Power Plant
Energy Source:
Capacity:
• Coal • Natural Gas 1,223MW

• Solar
– LARAIB ENERGY LIMITED
– Bong Hydro Plant
Capacity:
84MW
– HUB POWER COMPANY LTD
– Diesel Power Plant
Capacity:
225MW
SAUDI ARABIA
Power Plant
INDONESIA
SHUAIBAH INDEPENDENT WATER & POWER
PROJECT (IWPP) (6% Equity)
Interconnection
Capacity:
1,190MW PT PLN (PERSERO)

Development of the Sumatra –
WATER DESALINATION ASSETS Peninsular Malaysia High Voltage Direct
Capacity: Current Interconnection
1,039,000 m 3 /day
Capacity:
Energy Source:
Fuel Oil
600MW
Energy Source:
Operations & Management Services
Development of a
– TNB REMACO for Shuaibah IWPP
System to System
Capacity: Interconnection
900MW
KEY MESSAGES
15
Chairman’s Letter to Shareholders
18
President/Chief Executive Officer’s Review
The management and employees of TNB
wish to convey our sincerest gratitude and
utmost respect to Tan Sri Leo Moggie for his
contribution as the Chairman of TNB over the last
16 years.
Tan Sri Leo’s vast industry experience and knowledge,

honed from his days as the Nation’s Energy Minister and
his extensive service in TNB, have provided astute and
progressive stewardship to the organisation over the years.
He will be well remembered for his equitable point of view,
uncompromising standards for excellence, as well as his
unassuming personality; steadily providing guidance and
confidence to TNB throughout the organisation’s journey
through an ever-changing landscape.
We will remember him fondly as TNB’s longest-serving

Chairman, and wish him a happy and peaceful retirement.
Thank you, Tan Sri Leo Moggie.

PG. 015
Chairman’s Letter
to Shareholders
K E Y M E S S AG E S
DEAR VALUED SHAREHOLDERS
The year 2019 was significant for TNB at the organisational and industry levels. While the Group celebrated
the momentous occasion of our 70 th anniversary, we also witnessed the industry enter a new era marked
by increased liberalisation and competition brought about by the Malaysian Electricity Supply Industry
(MESI) 2.0 reform initiatives.
TAN SRI AHMAD BAD RI M O HD Z AHIR

Ch a ir m a n
As a utility that has served the Nation’s power needs for seven decades, transformation ANNUAL ELECTRICITY
is integral to our DNA. We have transformed from the Central Electricity Board (CEB) SALES (GWh)
2 .7%
to the National Electricity Board (Lembaga Letrik Negara, or LLN) and, finally, TNB.
Starting off as a state-owned entity, we have evolved our operations at key turning
points in our history, the last being when we were privatised and encountered competition
for the first time with the introduction of Independent Power Producers (IPPs) in the
1990s. HIGHER
Transformation, therefore, is nothing new, and has been managed well as we remain
true to our commitment to ‘keep the lights on’ whilst balancing the energy trilemma;
to provide safe and reliable electricity supply in an environmentally sustainable manner
and at a cost that is equitable for all stakeholders. With this as our primary focus, we TOTAL DIVIDEND
have powered the Nation’s economic progress over the years, and are now in the midst
RM1.00*
of our own strategic blueprint: Reimagining TNB 2025. As its name suggests, our strategy
is to transform ourselves and bring about profound changes across our operations, from
what we do to how we do it. The objective is to create value for all our stakeholders
p e r o rd i n ary share
as we strengthen our business model at its core.
* Inclusive of RM0.50 special dividend
per ordinary share
Chairman’s Letter to Shareholders
Since Reimagining TNB unfolded in 2016 PERFORMANCE IN 2019 bringing the total dividend per share to
we have invested substantially in RM1.00, amounting to RM5.69 billion.
renewable energy (RE) to contribute The year saw TNB continue to grow from This is TNB’s highest dividend payout to
towards low-carbon generation through strength to strength and achieve date, which has been made possible by
our participation in the Large Scale Solar commendable performance, with a efficient operations as well as effective
(LSS) programmes locally and other substantial 18.7% increase in profit after capital management. I would like to
opportunities internationally. Downstream, tax (PAT) to RM4.45 billion. This was the commend all the relevant teams for their
we are empowering customers by result of a 1.1% increase in revenue to remarkable performance.
enabling them to generate energy for RM50.94 billion as well as enhanced
their own use, and feeding any excess performance by our international
power into the grid. To this end, we have businesses, which are reaping the benefits CREATING A BRIGHTER FUTURE
in 2019 provided an avenue for customers of turnaround programmes implemented.
While rewarding our shareholders, I am
to purchase green energy through proud to say that TNB has further
Malaysian Green Attribute Tracking Based on our results, I am pleased to
deepened our commitment to
System (mGATS) and myGreen+ schemes share that the Board has approved a
sustainability efforts via programmes that
for those who wish to purchase green final single-tier dividend of 20.0 sen per
have been instituted to give back to
energy for their consumption without share. This adds to the interim single-tier
society, and especially to empower those
having to commit to any on-site dividend of 30.0 sen per ordinary share
who are marginalised. Two areas were
generation installation. and bringing the total to 50.0 sen per
featured prominently in our community
share for financial year 2019, which
initiatives – education and the environment
Efforts such as these have been well translates into a payout ratio of 56.0%
– and it gives me great pleasure to share
received, leading to TNB achieving a of the Group’s adjusted profit after tax,
some of the highlights for the year 2019.
Customer Satisfaction Index (CSI) of 8.1 amortisation and minority interests
for four consecutive years. More importantly, (PATAMI). Of note, it is the third
Various initiatives have been implemented
they position TNB on a firm footing to consecutive year that we have offered a
targeting students from the lowest 40%
meet the challenges of an open industry. dividend at the higher end of our stated
income bracket (B40). They include the
The ultimate objective of MESI 2.0 is to policy of paying between 30% and 60%
provision of basic school supplies to 6,100
better serve the end consumer. As an of our adjusted PATAMI.
students through our Ceria ke Sekolah
organisation that has always placed the programme; 3,564 scholarships for tertiary
rakyat above all else, we fully embrace As a token of appreciation to our loyal
studies in Science, Technology,
this new industry paradigm. Indeed, we shareholders, in conjunction with our
Engineering and Mathematics under the
are doing all we can to ensure its 70th anniversary, we are also offering a
second installation of our flagship
successful implementation. special dividend of 50.0 sen per share,
Dermasiswa My Brighter Future
programme; and the delivery of corrective
glasses to 600 students under our Better
Brighter Vision initiative organised in
partnership with Tun Hussein Onn Eye
Hospital. In addition, between 2019 to
2020, we extended financial assistance
to 150 secondary school students,
specifically those in Form Three, from
B40 families to attend development
programmes of their choice outside
school.
In terms of education, we reached out

to 6,991 students and 536 teachers in
eight Trust Schools through a programme
undertaken with Yayasan Amir to enhance
teachers’ classroom effectiveness. We also
awarded TNB Scholarships/Financial
Assistance to 1,862 recipients through
TNB strives to win customer trust and loyalty over the long-term through effective engagement, Yayasan Tenaga Nasional scholarships
quality of service and exceptional customer experience.
and convertible loans.
PG. 017
We are excited to be a part of the
Nation’s journey towards what we envision
as a brighter future and look forward to
contributing in any way we can to
restructure the industry so as to ensure
its sustainability and, by extension, the
sustainability of all stakeholders
concerned.
ACKNOWLEDGEMENTS
I would like to thank the Government

for all efforts undertaken to develop a
sustainable electricity supply industry,
and for engaging industry players to
ensure that policies are in the best
interest of all relevant stakeholders. At
the same time, I would like to
acknowledge our suppliers, business
partners, financiers and shareholders for
their continued support which has been
instrumental in TNB becoming the energy
powerhouse that we are today.
One of our conservation initiatives in caring for the environment include planting of mangrove
tree saplings in coastal environments. I would also like to express a heartfelt
gratitude to my predecessor, Tan Sri Leo
Our environmental actions have OUTLOOK Moggie, who led TNB as its Chairman
traditionally centred on tree planting in for 16 years with great passion and insight
order to offset our carbon emissions. This There can be no doubt that our industry into the industry. Under his leadership,
year, we planted no less than 4,200 is on the cusp of an exciting period of TNB transformed tremendously to
mangrove saplings in coastal environments innovation and technological change. become a dynamic energy player poised
that n ot on ly h elp to r estor e the Digitalisation and green technologies will to lead the industry as it undergoes
ecosystem but also serve to protect create new possibilities for electric utilities further liberalisation.
against tidal waves, floods and other to deliver our products and services in
potential disasters. In addition, we a clean, reliable and affordable fashion, Above all, I would like to say terima kasih
expanded our firefly colony conservation and to afford our customers greater to the entire TNB family for your
programme beyond Kampung Kuantan, choice and control over the way they commitment to go beyond the call of
Kuala Selangor (Selangor) to include use electricity. We believe, moving keeping the lights on, to empowering
Kampung Yak Yah, Kemaman forward, that we will see increasing great progress and change. TNB has been
(Terengganu), Kampung Sungai Timun, synergies between innovative digital there for the nation as it has evolved.
Rembau (Negeri Sembilan) and Kampung technologies from beyond the utility Today, as our own industry transforms,
Dew, Taiping (Perak). Through these industry merge with increased adoption we will continue to be there, powering
programmes, we not only help to preserve of RE to create new and exciting the transformation as only an organisation
the firefly ecosystem but also the sustainable possibilities. with our 70 years of experience, expertise
livelihood of locals who depend on and management skills can.
tourists to the colonies.
We are excited to be part of

the Nation’s journey towards
what we envision as a TAN SRI AHMAD BADRI MOHD ZAHIR
brighter future. Chairman
President/Chief Executive Officer’s

Review
DEAR VALUED SHAREHOLDERS
It is both an honour and privilege to present TNB’s Integrated Annual Report 2019 following my appointment
as the Group’s President/Chief Executive Officer in April 2019. An honour, given TNB’s 70-year legacy of
powering the nation; and a privilege given the trust bestowed in navigating the utility in these times of
systemic change.
DAT U K S E R I A M I R H A MZ A H B I N A Z I Z A N
P r e s i d e nt /Ch i e f E xe cut i v e O f f i ce r
PROFIT AFTER TAX We are experiencing a great transition in the global energy space in response to
18.7%
environmental and business imperatives which can broadly be categorised as the
4Ds – decarbonisation, decentralisation, digitalisation and deregulation. Decarbonisation
is the industry’s response to climate change with greater focus on renewable
Growth from 201 8 energy (RE) sources such as solar and wind. Decentralisation is to do with the
creation of greater efficiency, flexibility and resilience in electricity production
through distributed generation and storage in a decentralised grid architecture.
GROUP REVENUE Digitalisation provides the IT infrastructure needed to support decentralisation.
RM50.94
Finally, deregulation is the ultimate goal of creating efficiencies in energy industries
such that they are able to operate as open markets, determined by the forces
of supply and demand.
B illion
1.1% i n c r ea s e f ro m 2 01 8
The 4Ds are becoming more pertinent to TNB as liberalisation and reform of the
MESI gains momentum. In September 2019, the Government announced the
MESI 2.0 Reform Initiatives, a master plan aimed at transforming the industry,
making it more efficient and competitive.
PG. 019
Amid concerns that MESI 2.0 will be sector thus future proofing the industry To prepare for MESI 2.0
disruptive to TNB’s performance, I’m for the benefit of all players and
The year 2019 marked a significant
pleased to share that TNB had already consumers.
milestone for TNB as we became the
anticipated these changes and has been
first to bring in an liquified natural gas
preparing for them even prior to 2016, A key focus area for TNB currently is to
(LNG) cargo from a third party –
when we launched our own 10-year support the successful roll-out of MESI
demonstrating TNB’s pledge and
strategic plan – Reimagining TNB 2025 2.0 reforms. We have been engaging with
commitment in supporting the
(RT). This focuses on what we believe to our Government and Regulators on MESI
Governments’ initiative on natural gas
be fundamental to a leading global 2.0, providing research-based analysis
market liberalisation. This saw our
electric utility company, namely: diversified and input to ensure its objectives are
subsidiary, TNB Fuel Services Sdn. Bhd.
generation sources including renewables; met with minimal impact to the security
secure LNG for our gas power plants at
a digitalised, efficient grid; and the best and affordability of supply.
a competitive price. The successful
customer service, in delivering products
delivery of this maiden LNG cargo into
and services beyond the sales of kWh, We look forward to a future MESI
the system tested the governance and
that creates more value and better characterised by greater choice, stronger
operationalisation of the Third Party
experiences for our customers. incentives for efficiency, and a push
Access (TPA) system for gas, enabling
towards sustainability, and we remain
stakeholders to learn from the experience,
Set for the period 2016-2025, in 2019 we steadfast in our commitment to serving
thus supporting the aspirations of the
began reviewing our strategic plan in line the rakyat with a better, brighter future
Government for an open fuel market
with MESI 2.0 and revised some of our via continued collaboration with the
under MESI 2.0.
objectives in accordance to the current Government and our Regulators in setting
situation and future outlook. We also MESI on the pathway to successful
Another key development during the
established certain signposts along our reforms together.
year was obtaining shareholders’ approval
journey to guide us and ensure we are
to create two separate subsidiaries to
on track towards achieving our aspirations.
As a result, we believe that RT will be
able to navigate the company towards
achieving its aspirations, during this period
of industry transition in the midst of the
4Ds.
MESI 2.0
Our world-class electricity industry today

is a product of several decades of reform,
forward-looking policies, and an
orientation towards continuous
improvements by the Government.
Consequently MESI 2.0 reforms, which
aims to alleviate sector efficiency,
robustness and sustainability, is embarking
on its reform journey from a position of
significant strength.
As the system is highly interdependent,

this means that detailing of the reform
initiatives would require careful
consideration of our unique starting point
and critical preconditions, with the aim
to ‘do no harm’ to an already well-
performing system. With thoughtful
design of the reforms, proper planning
and correct sequencing of implementation,
we believe MESI 2.0 will safeguard the
sustainability of the Malaysian electricity Datuk Seri Amir Hamzah bin Azizan shares his direction on how TNB gears up and prepares
to face the challenges of MESI 2.0.
better manage our generation and retail plants in preparation for the expected Our System Minutes, meanwhile, came in
businesses following through from our introduction of a capacity and energy at 0.27 minutes, less than 0.35 minutes in
2018 exercise to split the Retail Division market. Both TNB Retail and TNB Power 2018, making it the 11th year that we have
from the Distribution Division. This Generation are expected to be operational kept consistently below two-minute.
approval from our shareholders gives the as wholly owned subsidiaries of TNB by
nod to proceed with preparations to the start of Q3 2020. In addition, we deployed another 120,677
establish TNB Retail Sdn. Bhd. and TNB smart meters in Melaka, Klang Valley and
Power Generation Sdn. Bhd. by July 2020, Putrajaya/Cyberjaya to close the year with
each with its own board and management HIGHLIGHTS OF THE YEAR 2019 a total of 281,066 smart meters. We will
for undiluted business focus and the In preparing for the disruptions that are accelerate the installation process as we
means to raise capital for further re-shaping the global energy industry, seek to meet our target of having
enhancement of core functions. and MESI 2.0 more specifically, we have 1.5 million smart meters by end of 2020.
continued to strengthen our operations,
We are also taking steps to ensure our achieving significant progress, which With a resilient performance in 2019, we
operations across the entire value chain further strengthen our leadership position unfortunately faced significant challenges
are able to hold their own against in a rapidly evolving industry. due to major outages at key power plants.
competition. Plant assessments and This is something we take seriously and
upgrades are ongoing while we continue have committed resources to address
to ensure the delivery of the Grid of the Enhancing Our Grid the underlying operational issues as we
Future including the Advanced Metering In 2019, we completed RM6.9 billion worth maintain our goal of assuring security of
Infrastructure (AMI) – one of the many of grid enhancements in line with the supply at all times.
enablers for a more competitive industry Incentive Based Regulation (IBR)-approved
environment. investment plan. These include the Value Generation
installation of 2,441 new substations and
TNB Retail will enhance collection 26,471 additional circuit-km of new lines. A key highlight of the year for TNB was
efficiency, promote rooftop solar generation We also upgraded 3,850 distribution the successful completion and
as well as push beyond kWh service substations to allow for faster response commercialisation of our 2,000MW Jimah
offerings such as multi-utility billing, fibre- through remote operations, which East Power Plant in Port Dickson, Negeri
to-the-home broadband, and sales of contributed to a further lowering of our Sembilan. Unit 1 of the plant, with a
third-party products. Meanwhile, TNB System Average Interruption Duration Index capacity of 1,000MW, was commercialised
Power Generation will focus on improving (SAIDI) from 48.22 minutes in 2018 to 48.13 on 22 August 2019 followed by Unit 2
the performance of our domestic power minutes per customer per year in 2019. on 27 December 2019. Both units utilise
ultra-supercritical technology, an efficient
coal-burning technology with 40%
efficiency as compared to a conventional
coal-fired power plant which has a 36%
efficiency. Meanwhile, the 2 x 720MW
combined cycle gas-fired Southern Power
Generation in Pasir Gudang, in which we
have 51% equity, made steady progress
and was 98% complete as at year end.
In addition, we continued to expand our

plant turnaround programme to include
three hydro and four thermal stations
during the year. The programme in TNB
Janamanjung Sdn. Bhd. (TNBJ) has been
completed while TNB Connaught Bridge
Sdn. Bhd. (CBSB), TNB Prai Sdn. Bhd.
(PRAI), Stesen Janaelektrik Tuanku Ja’afar
(TJPS) and Kapar Energy Ventures (KEV),
is now under phase 3. As of the third
quarter of 2019, the programme had
resulted in cost savings of RM121 million
at TNBJ, while an overall potential value
Our completion of grid enhancement worth RM2.2 billion allows faster response through
remote operations and lowers our System Average Interruption Duration Index (SAIDI)
of RM220 million has been identified
significantly. from TNBJ, CBSB, PRAI, TJPS and KEV.
PG. 021
TNB continues to play an important role in driving high-speed broadband (HSBB) access in Malaysia by partnering with Maxis through its
fully-owned subsidiary, Allo Technology Sdn. Bhd.
A setback was experienced in the fourth Retailing More than kWh Cyberjaya and Bangsar South bringing
quarter, when two units in TNBJ and the total number of homes to 39,000.
TNB Retail is our customer-facing division
KEV experienced prolonged forced In 2018, a wholly-owned subsidiary, Allo
responsible not only for sales, electricity
outages due to technical faults. While Technology Sdn. Bhd. (Allo), was
connection and bill collection; it is also
both units were back online by the first established to manage our HSBB business.
our interface with customers for beyond
quarter of 2020, this event served as a In December, Allo signed an Access
electricity related ventures such as solar
crucial reminder that we cannot afford Agreement with Maxis for the telco to
self-generation.
to be complacent. Operational excellence provide HSBB services riding on our
is one of our top priorities, and we will infrastructure.
During the year, we saw an increase in
further strengthen our asset reliability
the retail self-generation business under
framework to prevent future forced Meanwhile, we continued to enhance our
the Net Energy Metering (NEM) scheme
outages. customer service with an enhanced
and Supply Agreement for Renewable
myTNB app and portal, and the installation
Energy (SARE) managed by our wholly-
In the RE space, we are making good of more tablets as well as payment kiosks
owned subsidiary, GSPARX Sdn. Bhd.
progress in the 30MW LSS plant in Bukit across our Kedai Tenaga. We also engage
GSPARX secured 126 new contracts with
Selambau, Kedah, which was 87% regularly with customers through seminars
industrial, commercial and residential
completed as at end December. In the and other events on energy efficiency.
customers for the installation of solar
United Kingdom (UK), we saw increased I am pleased to share these efforts to
panels with total capacity of 25.2MWp
generation at Vortex Solar Investments serve our customers to the best of our
at customers’ premises.
S.A.R.L. while technology enhancements ability and share that the impact is
of our wind asset, Tenaga Wind Ventures reflected in the high Customer Satisfaction
We also successfully completed a pilot
UK Ltd, resulted in a much-improved Index (CSI). For the fourth year running,
project in Jasin, Melaka under which we
performance. We are also pleased to see we achieved a steady CSI score of 8.1,
provided affordable access to broadband
positive recovery from the turnaround which is higher than the average CSI
service with speeds up to 1Gbps to 1,100
programmes implemented at GAMA score of American and UK utilities over
premises using our fibre optic
Enerji in Turkey, and GMR Energy Ltd in the same period. Additionally, we are
infrastructure. We are now extending our
India. proud of the fact that Malaysia was ranked
HSBB network to another 15,000 premises
fourth in terms of ease of getting electricity
in Melaka, and 24,000 premises in
for the second year running by the World
Bank in its Doing Business report.
The fast pace with which we are rolling SUSTAINABILITY higher career tracks. Currently, we have
out our new solutions, was disrupted in four such programmes targeting different
April and May due to a system glitch Having celebrated our 70th anniversary levels of employees:
leading to a significant number of in 2019, there can be no doubt that TNB
is a sustainable organisation, partly driven • The School Leavers Mobility Programme
complaints on excessively high bills. We
by a strong tradition of capacity and enables staff with only SPM
were able to restore our customer
capability building within the industry. qualifications to acquire the skills and
confidence in light of this disruption
certification needed to qualify for a
thanks to the speed and manner in which
Through Universiti Tenaga Nasional technician or administrative assistant
our tireless retail frontliners proactively
(UNITEN), we have been contributing role.
kept engaging our customers to set things
right. towards the development of skills and • The Non-Executive Certification
talent required by our industry. Today, Programme provides our technicians
we are taking this commitment further and administrative assistants with the
FINANCIAL PERFORMANCE through programmes such as Dermasiswa opportunity to upgrade themselves
My Brighter Future (MyBF) and PROTÉGÉ. with the skills and certification needed
Despite a slowdown in gross domestic
Under MyBF, we provide financial to move up their chosen skill ladder.
product growth in 2019, demand for
assistance to students from the B40
electricity in Peninsular Malaysia continued • Successful technicians and
group to take up undergraduate studies
to grow by 2.7%, contributing to a 1.1% administrative assistants can further
in Science, Technology, Engineering and
increase in Group revenue year on year upgrade themselves through our Non-
Mathematics (STEM). As of December
from RM50.39 billion to RM50.94 billion. Executive Upward Mobility Programme
2019, this programme has been extended
Group PAT, meanwhile, grew by an that leads to a bachelor degree or
to 2,672 students. Under the Government’s
encouraging 18.7% from RM3.75 billion equivalent certification, qualifying
PROTÉGÉ programme, meanwhile, we
to RM4.45 billion driven by improved them for executive positions within
provide on-the-job training to unemployed
performance in our International Business. the Group.
graduates with the objective of enhancing
their employability. While some of the • The Executive Mobility Programme
Turnaround programmes initiated for GAMA
participants are subsequently offered provides executives with the
and GMR are beginning to show positive
full-time employment at TNB, others go opportunity to pursue professional
signs of recovery, with GAMA recording
on to contribute the skills and knowledge certifications and/or postgraduate
higher earnings before interest, tax,
gained in other technology-based degrees.
depreciation and amortisation (EBITDA)
companies.
margin as a result of improved operations
At the same time, through our well-
and GMR executing a restructuring exercise
Internally, continued emphasis on training entrenched and recognised Vendor
through asset monetisation which is
and career development opportunities Development Programme, we continue
expected to benefit its shareholders. Vortex
for our employees saw us clock 1.09 million to build a robust Subject Matter Expert
Solar Investment S.A.R.L. and Tenaga Wind
training hours in 2019. In addition to (SME) ecosystem to support the energy
Ventures UK Ltd, meanwhile, generated
sending employees for training, TNB runs industry. All these efforts contribute
14% and 57% higher EBITDA in 2019
various upward mobility programmes towards enhancing Malaysia’s
respectively compared to the previous year.
that serve to upgrade individuals into competitiveness in a rapidly globalising
marketplace.
As a utility player, we are keenly aware

of how our operations contribute to
climate change and have been pressing
ahead with plans to increase our RE
capacity to 1,700MW by 2025. Upon
completion of our second LSS project in
Bukit Selambau, Kedah our RE capacity
excluding large hydro plants will stand
at 403MW. To meet our target, we are
actively looking for more RE investment
opportunities both domestically and in
the international domain. Meanwhile, in
addition to promoting solar among our
customers, we launched myGreen+ and
The launch of our My Brighter Future (myBF) programme which provides financial aid to B40 mGATS; the former enabling consumers
students was graced by then-Deputy Prime Minister, Dato’ Seri Dr Wan Azizah Wan Ismail. to subscribe to green energy from the
PG. 023
ACKNOWLEDGEMENTS
As MESI 2.0 rolls out, the industry will
be in a state of flux over the next couple
of years. I believe this is a time for even
greater collaboration and cooperation
among all relevant stakeholders to ensure
continued stability and sustainability of
our energy supply. As the main player in
the country’s electricity ecosystem over
the last 70 years, there can be no doubt
that TNB has derived great strength from
the support of various parties. Now, as
the industry opens up, it is even more
critical that all parties – our regulators,
IPPs, fuel suppliers, business partners and
our customers – continue to work together
to see to a seamless transition into the
more dynamic and transparent future
Our collaboration with Malaysian Green Technology and Climate Change Centre (MGTCCC)
has succesfully expanded the network of electric vehicle (EV) charging stations throughout that is envisaged.
the nation.
To our Board of Directors, thank you for
grid, and the latter creating an RE e e ect en anced erfor ance of o r the trust placed in appointing me to the
marketplace based on Renewable Energy generation assets together with full-year position of President/CEO. Thank you also
Certificates which generators can sell to contribution from our new 2,000MW for your wisdom and counsel, which is
customers. Further promoting a low- Jimah East power plant. increasingly important as we navigate
carbon econo e are collaboratin through the current phase of
with the MGTCCC to expand the network At the corporate level, our restructuring transformation. In particular, I would like
of EV charging stations throughout the will be completed by the third quarter to acknowledge the immense
nation. In 2019, we have added 38 new of 2020, when TNB Power Generation contributions of Tan Sri Leo Moggie, who
charging stations all over the country. and TNB Retail become operational. This served as our Chairman for 16 years.
will lead to more efficient generation Tan Sri has been an exceptional leader
In line with the global initiatives on climate and retail operations. In terms of the in the industry – having held senior
change, we are constantly monitoring and latter, we are committed to continuously ministerial positions at the federal and
assessing our Greenhouse Gas (GHG) enhancing our service levels and to grow state levels for over 38 years in addition
emissions. In 2018, we recorded a GHG our offerings, especially those beyond to leading our Board. On behalf of the
emissions intensity of 0.57 tCO2e/MWh. kWh such as rooftop solar products entire warga TNB, we thank you for your
managed by GSPARX. invaluable contributions to TNB and wish
you all the best in a very well-deserved
OUTLOOK Meanwhile, we have completed our retirement.
In light of the shadow cast by the Regulatory Period 3 (RP3) 2021–2023
COVID-19 pandemic, growth projection proposal and have submitted it to the Meanwhile, to all employees, thank you
for Malaysia’s electricity industry is Government in January 2020 for for your hard work and commitment to
uncertain and will be dependent on the consideration by the relevant authorities. TNB which is evident in all we have
Nation’s economic recovery post COVID-19. Negotiations are expected to begin in achieved. Let us continue to do our best
We are closely monitoring the related earnest in the third quarter of the year to deliver on our targets to ensure we
risks and potential impact as well as with the Government’s decision to be keep the lights on for Malaysia in a more
implementing necessary measures to announced in the following quarter. We efficient, effective and sustainable manner.
ensure electricity demands are met in a believe that we have submitted a forward-
sustainable manner. For 2020, we look looking proposal that not only safeguards
forward to the 1,440MW gas-fired plant the reliability and affordability of electricity
in Pasir Gudang, Johor and the 30MW supply but also contributes towards a
LSS in Bukit Selambau, Kedah coming collaborative future in which increased
on-stream in July and December participation from renewables will be
re ectivel t t e a e ti e avin seamless, with no disruption to the grid
or, ultimately, our customers.
resolved the technical issues at TNBJ, DATUK SERI AMIR HAMZAH BIN AZIZAN
President/Chief Executive Officer
2019
KEY HIGHLIGHTS
26
Awards and Achievements
30
Group Business Model
32
Key Highlights
Awards and
Achievements
CSR Malaysia Awards 2019 Best Employer Brand – Graduates’ Choice Award 2019
Company of the Year Award Overall Category – Utilities & Energy Champion – Government-Linked Companies
Company of the Year Award – Education & Conservation
Global Talent Management Congress CIMA Business Partners Challenge for

Awards and 14 th Recruiting & Staffing Shared Services 2019
Best in Class Awards
Champion
Best Social Networking Recruitment Effort
National Annual Corporate Report Awards 2019

Most Outstanding Annual Report of the Year – Gold Award
Industry Excellence Awards – Utilities
PIKOM Unicorn Tech Awards 2019

Technology Organisation Excellence Award
PG. 027
YouTube Malaysia Ad Awards 2019 Human Resources Excellence Awards 2019

Best Storytelling for Occasions Excellence in Employer Branding
KEY HIGHLIGHTS
20 1 9
MSWG-ASEAN Corporate Governance Awards
2018
Excellence Award for CG Disclosure (5th Place)
Excellence Award for Overall CG & Performance
(5th Place)
14 th Employer Branding Awards 2019-2020

Malaysia Best Employer Brand Awards 2019
14 th Employers’ Federation of
Pakistan Best Practices Awards on
OSH 2018
2019 International ARC Awards
2nd Prize Power Utility & Allied Sector
SHARE/GUIDE ICT Award 2019
33rd Annual Celebration of the World’s – TNB Repair and Maintenance
TNB Cyber Threat Intelligence Framework Project Best Annual Reports – Silver Winner (Kasur, Punjab)
Awards and Achievements
Global HR Excellence Awards 2019 Human Resources Asia Recruitment Awards 2019
Award for Use of Media & Other Recruitment Methods Most Innovative Recruitment Strategy – In House
Malaysia Cyber Security Awards 2019

Cyber Security Project of the Year – TNB Threat Intelligence for
ICS Project Global HR Excellence Awards 2019
Award for Career Fairs, Campus Recruitment
The ASIAMONEY Awards 2019

Most Outstanding Company in
Malaysia – Utilities Sector
Asian Power & Energy Innovation Awards 2019
Customer Services & Retail Processes - Winner
Transmission & Distribution Networks & Field Operations – Winner
PG. 029
IDC Digital Transformation Awards

Operating Model Master – Unmanned Aerial Vehicle
KEY HIGHLIGHTS
20 1 9
HR Asia Best Companies to Work
for in Asia 2019 Awards
Certificate of Achievement
SSON Impact Awards 2019

Customer Centricity Impact Award – Bronze
Change Management Impact Award – Honorary Mention
Human Resources Minister Award 2019

Large Service Sector
World Branding Awards 2019-2020

Brand of the Year – Energy – Power
Global HR Excellence Awards 2019

Best HR Organisation To Work For
Group
Business Model
O U R S T R AT E GY OUR C API TAL S
F UTURE GENER A TI O N SO U R C ES F IN AN C IAL C AP IT AL
Top Priorities Shareholders’ Funds Total Borrowings Effective Weighted Average

Cost of Funds (%)
• Growing TNB’s renewable capacity RM59,282.1 RM45,411.7 4.8% 5.1%
4.7% 5.0% 5.0% 5.1%
• E
xpansion of capacity into selected million million
international strategic markets with strong
growth prospects
• Improving performance of existing generation
FY2015 FY2016 FY2017 FY2017* FY2018 FY2019
fleet (restated)
For more information, please refer to page 48 * Financial Period Ended 31 December 2017
For more information, please refer to page 40

M AN UF AC T UR E D C AP IT AL
Total
GRID OF THE F U TU R E
15,101.6MW
Top Priorities
734,835(1) 45.66%
6,895.37 MW
17.19%
2,596.32 MW
1.50%
226.58 MW
Circuit kilometres of Coal-fired plant Large Hydro plant Oil-fired plant
transmission and
• U pgrading existing network infrastructure distribution lines 92,213(1) 33.17% 2.47%
into a smart, automated and digitally-enabled Primary and secondary 5,009.92 MW 373.42 MW
substations. Gas-fired plant Renewables plant
network
• Optimising network’s productivity, efficiency For more information, please refer to page 50
and reliability
• L everaging innovation in the network to
N AT UR AL C AP IT AL
transform customer experience
Fuel Use (2)
COAL OIL GAS DISTILLATE
361,956.3 TJ 783.8 TJ 193,147.7 TJ 5,386.4 TJ

WINNING THE C U STO M ER
IN T E LLE C T UAL C AP IT AL
Top Priorities
RESEARCH AND OPERATIONAL AND TECHNOLOGY AND BUSINESS
DEVELOPMENT SERVICE INNOVATIONS MODEL INNOVATIONS
• Enhance experience through all customer
journeys
• Growth through innovation of new solutions
and service offerings
• Strengthen digital presence via digital H UM AN C AP IT AL
solutions, interactions and enterprise
Employee Gender
Employees
36,307
TNB Group 79.2% 20.8%
F UTURE PRO O F R EG U L A TI O NS MALE FEMALE
Top Priorities For more information, please refer to page 56
• W
orking together with key stakeholders S O C IAL AN D R E LAT IO N S H IP C AP IT AL
towards a stable and sustainable regulatory
landscape Customers Trade-Union
Create Build Government Vendors

For more information, please refer to page 46 Value Trust
Investors Communities
Employees

PG. 031
FY2019 FIGURES
Input from the six capitals ensure we maintain a sustainable business. We recognise that an organisation depends on all forms of
capitals, not just financial capital to contribute to the success of our business models. Our ability to enhance the stocks or values of
these capitals are essential to the growth of our business.
T H E VA L U E S CR E AT E D AN D I TS I MPACT
ECONOMIC O P E R AT IN G P R O FIT
Suppliers and
Contractors
Capital Providers Employees RM8,206.8
million
Fuel and Other Staff Expenses 9,364.0
Shareholders Total 9,072.0
Operating Costs
dividends RM3,747.7 8,627.6
KEY HIGHLIGHTS
8,206.8
RM3,014.1 million
Fuel cost million 6,875.6
20 1 9
RM10,847.9
million Government and
Regulators
Lenders Financial cost
Other Operating cost
RM3,382.7 Taxes 3,014.0
RM28,965.9 million
million RM1,032.7
million
COMMUNITY FY2015 FY2016 FY2017 FY2017* FY2018 FY2019

(Restated)
26 5,426 14,111 P R O F IT AT T R IB UTA B LE

T O O W N E R S O F TH E C OMPA NY
Adopted Schools Number of Graduate Number of school
Students Assisted students assisted
RM4,529.2
million
CUSTOMERS
7,367.6
6,904.0
CSI:
6,118.4
Total Energy Units Total Energy Sold Peninsular Malaysia Sabah
Sold(3): by Region (GWh)
8.1 7.9 4,529.2
122,101.4 116,525.4 3,723.7
GWh SAIDI: 2,622.3

Peninsular Malaysia Sabah
Customer 48.13 205.31

Accounts(5):
FY2015 FY2016 FY2017 FY2017* FY2018 FY2019
9.9
5,576.0 SYSTEM MINUTES: (Restated)
1,070.8
million Peninsular Malaysia
Sabah
0.27 13.41 * Financial Period Ended 31 December 2017
International (4)
Notes:
ENV IRONMENT
(1) For TNB operations in Peninsular Malaysia and
Sabah only.
(2) From power plants which TNB has controlling

Emissions Emissions Mitigated(6) Non-Carbon Energy
stake for period FY2019.
Intensity(6)
(3) From domestic power plants which TNB has
0.57 5,750,636.42 2,969.74 invested and have power purchasing agreement

for domestic customers.
tCO2e/MWh tCO2e MW (4) Unit sold by wholly-owned TNB international
Greenhouse Mitigation due to TNB’s use of (1) 19.66% of TNB’s equity power plants only.
Gas Emissions Non-Carbon generation, (2) Energy generating capacity
(5) Including 9.3 million customers in Peninsular
efficiency across value chain, (3)
Intensity Malaysia and 0.6 million customers in Sabah.
Clean coal technology, (4) Advanced
combined cycle power plant, (5) (6) For TNB operations in Peninsular Malaysia only
Electric vehicles, (6) Tree planting for the period of FY2018.
Key
Highlights
FINANCIAL HIGHLIGHTS
UN IT DE M A ND EBIT D A M ARG IN
G ROWT H
2 .7% 36.1%
OPE RATIN G E X P E NS E S RET U RN ON ASSET S (ROA)*
IN C RE ASE / ( D E C R E A S E )
RM(293.2)
MILLION
2 .8%
* Based on adjusted net profit
N E T PROFIT A T T R I B U T A B L E C AP EX
T O OWN E R S O F T H E CO M P A NY
RM4,529.2
MILLION
RM11,261.7
MILLION
M ARK E T C A P I T A L I S A T I O N AVERAG E C OAL P RIC E
RM75,408.1
MILLION
USD79.3
MT
T OT AL ASS E T S T OT AL REVEN U E
RM178,847.2
MILLION
RM50,939.7
MILLION
MANAGEMENT
DISCUSSION & ANALYSIS
STRATEGIC BUSINESS PERFORMANCE REVIEW

REVIEW 62 Financial Highlights
34 Our Operating Environment 63 Group Quarterly Financial
• Industry Review and Outlook Performance
64 Six-Year Group Financial
Our Strategy Summary
40 Future Generation Sources 65 Six-Year Group Growth
42 Grid of the Future Summary
44 Winning the Customer 66 Simplified Group Statement of
46 Future Proof Regulations Financial Position
• Total Assets
Our Capitals • Total Liabilities & Equities
48 Financial Capital 68 Statement of Value Added
50 Manufactured Capital 69 Distribution of Value Added
52 Natural Capital 70 Core Revenue
54 Intellectual Capital 71 Financial Calendar
56 Human Capital 72 Investor Relations
58 Social and Relationship Capital • TNB Share Price, FBM KLCI
Index and Volume Traded in
60 Our Scorecard FY2019
STRATEGIC BUSINESS REVIEW
Our Operating
Environment
Industry Review and Outlook
As a result of several decades of industry restructuring, forward-looking policies and an orientation towards continuous improvements,
Malaysia today has one of the most secure and reliable electricity systems in the world. However, there is no room for complacency
given major shifts in the global environment driven by an energy transition, climate change, disruptive technologies and customer
innovations – all of which are happening at unprecedented speed and scale. It is within this context that the broad plan to
reform the MESI 2.0 reform initiatives were developed.
Broadly, the future MESI should seek to balance five objectives: 1) maintain security of supply; 2) drive efficiency to support
affordability; 3) maintain fair shareholder value to ensure continued investments in the system; 4) elevate Malaysia’s green agenda;
and 5) ensure we continue to deliver a world-class customer experience.
Maintain security World-class

of supply with customer
Fair shareholder experience
Enabling the future
sufficient reserve returns to ensure economy
margins continued More products and
investment in the better services to
High level of system system
reliability with SAIDI at end consumer with Strengthening
or below 50 mins wider range of environmental
choices
stewardship
Protecting vulnerable
segments
Facilitating private
Security Efficiency Value Green Experience sector investments
Transitioning to the
workforce of the future
Increase energy
Efficient efficiency by 8%1
performance and
service delivery Reduction of
emissions intensity
by 45% by 20302
Contribute to Malaysia’s economic

Future proof
development
1 EE targets from National Energy Efficiency Action Plan 2016-2025

2 Emissions intensity refers to CO2 equivalent emissions per GDP
PG. 035
S u pp l y S e c u r i t y
Using widely accepted parameters such as the SAIDI and System Minutes, security of supply in Malaysia has improved
significantly over the years and, today, is considered to be high. In 2019, Peninsular Malaysia achieved a SAIDI of 48.13 minutes
per customer, which is 30% lower than SAIDI recorded 10 years ago, in 2009. Our transmission network, meanwhile, operates
at world-class standards, recording system minutes of 0.27 minutes. These achievements are among the best in Southeast
Asia, putting us on par with developed electricity systems/industries such as France and the UK.
Another measure of system security and reliability is the reserve margin, which represents the amount of generation capacity
available in reserves over and above system peak demand. The regulator has set the target of maintaining the reserve margin
between 25% to 28% while ensuring cost efficiency. In 2019, our reserve margin stood at 32% and is expected to remain
above 31% from 2020 until 2025.
Moving forward, however, as the volume of RE increases, there will be greater decentralisation and bidirectional, intermittent
electricity flows, necessitating an enhanced grid infrastructure to maintain reliability. Towards this end, TNB is investing in
various technologies to ensure a Grid of the Future that is resilient, efficient and sufficiently flexible to manage RE.
D I S C U S S I O N & A N A LYS I S
M A N AG EM EN T
SA I DI (minutes/customer/year)
55 49.66 49.71 50.24 48.22 48.13

min min min min min min
2014 2015 2016 2017 2018 2019
Efficiency and Affordability
Efficiency of the system is reflected in the tariffs. In this ASEAN average tariff comparison
regard, Malaysia’s performance is once again very
encouraging, as we offer one of the most affordable RM/kWh
0.6 0.59
tariffs in Southeast Asia. Our domestic tariff is lower
Avg. Tariff: 0.42 RM/kWh
than that in Indonesia, Singapore, Thailand, and the 0.5
0.43 0.43
Philippines; while our commercial and industrial tariffs 0.39
0.4 0.35
are below average in some cases. 0.34
0.3
The IBR framework put in place in 2014 as part of the
0.2
MESI 1.0 drives greater efficiencies in the grid and retail
segments. This framework enforces a prudent investment 0.1
regime and efficiency improvements – the benefits of
0.0
which are passed on to customers.
Philippines Singapore *Thailand *Malaysia *Vietnam *Indonesia
It also establishes a financially sustainable framework Note:

for the system as a whole through the setting of tariffs * indicates subsidised (or under-priced) markets, subsidy calculated
as estimated cost of supply minus actual tariff
based on efficient system costs. Tariffs are reviewed – Average tariff quoted for Malaysia during Regulatory Period 2 (2018-
every three years, i.e. for every new Regulatory Period. 2020), while average tariff for all other countries taken as of 2018.
In addition, the tariffs can be adjusted every six months
under the Imbalance Cost Pass-Through (ICPT) mechanism Source: Energy Market Consulting Associates (EMCa)
to reflect the cost of production based on market-driven
fuel prices.
Our Operating Environment
F a ir S ha reho l d e r V a l u e
Over the past decade, over RM100 billion has been invested throughout the Malaysian electricity value chain. This has been
enabled by progressive and business-friendly investment frameworks that encourage private sector investments such as the
Power Purchase Agreement (PPA) and IBR frameworks.
Investors in Malaysia today have a high degree of familiarity and confidence in the industry given its decades-long track
record. Today, performance is being sustained by the IBR framework, which has been very positively received as it creates
greater transparency of efficiency levels for the different segments of the electricity supply value chain, from generation to
transmission and distribution.
Continued robustness and transparency of the energy industry will be critical to maintain investors’ confidence in the system.
At the same time, it is crucial that private sector investment continues to be encouraged by enabling fair returns as this
would further strengthen the sustainability of the industry for all relevant stakeholders.
G oing G reen e r
In 2019, the total installed RE capacity in Peninsular Malaysia stood at 8% excluding large hydro plants; and 16% with the
contributions of the country’s dams in Peninsular Malaysia. In terms of GWh, RE contributed 4% to our total generation,
which is comparable with other Southeast Asian countries.
While it is crucial that MESI addresses our Nation’s green objectives and contributes to the global decarbonisation agenda,
it is equally important that the reforms are carried out in a gradual and phased manner to protect the interests of the
system, the environment and consumers.
Looking forward, the Government has announced a progressive target of RE capacity for Malaysia. To achieve this, several
initiatives are already under way including the LSS bidding programme and the NEM scheme.
In 2019, two new incentives were introduced; the expansion of the SARE programme to include solar leasing, and the joint
announcement by the Energy Commission (EC) and TNB on the myGreen+ initiative, a green rider tariff scheme that allows
customers to purchase green energy without having to invest in their own RE installation.
Realising the importance of RE as a potential new source of growth in a changing energy market, TNB will continuously
participate in these initiatives and aspires to become the ASEAN leader in RE. TNB’s wholly-owned subsidiary, TNB Sepang
Solar Sdn. Bhd. was awarded by the EC to develop a LSS project (50MWac) through the first cycle of the competitive bidding
exercise. The project successfully achieved its Commercial Operation Date (COD) on 23 November 2018, and its units generated
as at December 2019 was 110.1GWh.
Additionally, TNB Bukit Selambau Solar Sdn. Bhd. was also successful in securing a LSS project through the second cycle of
the competitive bidding process. The PPA was signed on 19 March 2018. TNB Bukit Selambau Solar will operate a solar facility
located in Kuala Muda, Kedah, with a 30MWac capacity. Its progress as of 31 December 2019 was at 87% and its PPA expected
COD is 31 December 2020.
1,016MWh units subscribed by

customers supporting green
energy
Establish Renewable Energy

Certificates marketplace through
Malaysian Green Attribute Tracking
System (mGATS) with 700,000MWh
Our second LSS project is currently under construction in Bukit Selambau, tradable units
Kedah and it is expected to generate 30MW by end of 2020.
PG. 037
Cu stom e r Exc e l l e n c e
TNB has been enhancing our service delivery over the years In terms of power connection, Malaysia ranked 4th in the
along with corporatisation and then privatisation of the industry. World Bank’s Ease of Getting Electricity 2019 and 2020
Today, as we are poised for further liberalisation of the sector rankings, with a score of 99.3, placing us ahead of countries
and the potential entry of new players, it is more important such as the UK, France and Singapore, and marking a
than ever to establish TNB as the preferred energy provider. significant improvement from our 2012 ranking of 59. This
measures the procedures, time and costs involved for a
Consequently, we have been investing in digital channels to business to be connected to the grid. TNB also excels in
interact with our more than 9.2 million customers; we are Customer Empowerment and Satisfaction according to
engaging with and educating customers about RE; we are Singapore Power’s Smart Grid Index.
also empowering them to better manage their consumption
and bills. As a result, we managed to increase our CSI from In addition, TNB was named Brand of the Year in the power
7.0 in 2009 to 8.1 in 2016, maintaining this until 2019. category of the World Branding Awards for 2019-2020.
8.0 8.1 8.1 8.1 8.1
8.0 7.5 7.6
7.2
M A N AG EM EN T
6.0
4.0
2.0
0
2012 2013 2014 2015 2016 2017 2018 2019
Our CSI achieved 8.1 for the fourth consecutive year and benchmarks competitively against CSI in the UK market and the American Customer
Satisfaction Index scores.
Malaysia’s ranking in the World Bank’s Ease of Getting Electricity

8th rank 4th rank
8th rank
13th rank
21st rank
28 rank
th 27th rank
59th rank
2012 2013 2014 2015 2016 2017 2018 2019

Source: World Bank Doing Business Report
O u tl ook for TNB
Looking forward, TNB intends to go beyond traditional investments in grid expansion to develop the Grid of the Future.
This includes digitalising the grid to improve operational efficiency, as well as deploying technologies that enable distributed
energy resources and the electrification of mobility, appliances and industry. We believe that the IBR framework already
provides a robust platform to plan and prioritise such future investments.
Meanwhile, we acknowledge the opportunity to better serve our customers. Indeed, rapidly evolving customer expectations,
combined with new solutions made possible by disruptive technologies, place increasing pressure on TNB to step up our
innovation game to meet our customers’ needs.
We remain steadfast in our commitment to serving the rakyat with a better, brighter future, and look forward to continued
collaboration with our Government and regulators on setting the pathway to deliver a stronger, more innovative and resilient
electricity supply industry.
Our
Strategy
TO BE ONE OF
THE WORLD’S
TOP 10 GLOBAL
UTILITY BY 2025
STR A T E G I C PI LLA R S & KEY PRIORITIES :
F U T U R E GE N E R AT IO N SO URCES GRI D OF THE FUTURE

R E I M A G I N I N G T N B 2 0 1 7 - 2 0 2 5
Top Priorities Top Priorities
• Growing TNB’s renewable capacity • U pgrading existing network infrastructure into

• Expansion of capacity into selected international a smart, automated and digitally-enabled
strategic markets with strong growth prospects network
• Improving performance of existing generation • Optimising network’s productivity, efficiency
fleet and reliability
• L everaging innovation in the network to
transform customer experience
PG. 039
M A N AG EM EN T
W I N N I N G T H E CUST O ME R FUTURE PROOF REGU L A TI ONS
Top Priorities Top Priorities
• Enhance experience through all customer • W

orking together with key stakeholders towards
journeys a stable and sustainable regulatory landscape
• Growth through innovation of new solutions
and service offerings
• Strengthen digital presence via digital solutions,
interactions and enterprise
STRATEGIC BUSINESS REVIEW – OUR STRATEGY
Future Generation
Sources
The future of generation lies in renewable and low-carbon
sources of energy as stakeholders gravitate towards
decarbonisation to mitigate climate change.
OVERVIEW
TNB seeks to increase our generation capacity to

meet an anticipated steady increase in demand
for energy along with population growth and
economic development. At the same time, we are
committed to reducing our carbon footprint in
support of global climate change initiatives. To
meet global energy needs in a sustainable manner,
we are diversifying our energy sources with increased
emphasis on RE while ensuring optimal operations
of our existing 15GW fleet of generators.
Our efforts towards sustainability diversifies across various RE sources such as LSS
project.
TABLE FOR NUMBER OF PLANT
Number of Total installed Equity Electricity Capacity under

power plants capacity capacity sent out construction
(MW) (MW) (GWh) (MW)
Wholly-owned
Coal 2 4,080.00 4,080.00 25,853.60
Gas 8 4,186.43 4,186.43 24,004.55
Non-carbon 38 2,619.76 2,619.76 4,088.57 30.00
Others
Majority-owned
Coal 2 3,600.00 2,360.00 10,856.45
Gas 2 923.40 577.82 1,163.02 1,440.00
Non-carbon 59 103.95 85.49 424.18
Others 18 207.93 172.58 375.14
Minority-owned
Coal 2 1,650.00 455.37 9,442.00
Gas 1 853.00 245.66 3,000.21
Non-carbon 34 639.73 264.48 1,149.95 180.00
Others 1 900.00 54.00 6,932.68
DEVELOPMENTS IN 2019
OPERATIONAL EFFICIENCY
Following the success of the pilot turnaround programme conducted at TNB Janamanjung, where a total value of RM121 million
in enhanced efficiencies has been realised up to 2018, the programme was rolled out to our plants in Connaught Bridge, Prai,
Port Dickson and Kapar, where it is currently in Phase 3 (Initiatives Implementation). Meanwhile, Phase 1 (Assessment) has begun
at the SSJ Sungai Perak, SSJ Cameron Highlands and SSJ Kenyir hydro stations; Pasir Gudang Energy, Putrajaya and Gelugor
thermal stations with an estimated total initial impact worth RM85 million. To ensure the programme’s success, its working
structure is chaired and overseen by our Chief Generation Officer.
PG. 041
We are continuously enhancing the We are committed to ensuring sustainable Through our ICBDM exercises, we strive to
sustainability of our thermal plants and productive employment to our generation mitigate and manage the impact of natural
through implementation of 154 energy employees through the establishment of disasters to the community around our Sungai
efficiencies initiatives Generation Academy Perak Hydroelectric stations
Further enhancing our asset performance, we have strengthened our operational systems and approach via:
• T h e i n c l u s i o n o f c o s t , • Deployment of generation- • Intelligent Predictive and • Optimised inventory levels

performance and risk in all wide digital dashboard that Diagnostic Monitoring across domestic plants to
decisions tracks business and plant (IPDM) which will provide ensure inventory items are
performance alerts on deviation from capitalised and depreciated
predicted and measured accordingly while identifying
values in real time defective and obsolete
items for disposal
For more information on our generation asset performance, please refer to ‘Manufactured Capital’ on pages 50 and 51 in Our
Capitals section.
FUEL SOURCING COMPETENCY BUILDING
M A N AG E M E N T
A highlight was to test the TPA mechanism implemented in We continue to develop a strong pipeline of generation SMEs
the gas supply industry, as part of MESI 2.0. For the first time throughout the organisation. In 2019, a total of 80 executive
ever, following a government request, our subsidiary TNB Fuel and non-executive participants graduated from the sixth and
Sdn. Bhd. purchased LNG from the open market for use by our seventh SME programmes conducted at the Generation Academy.
plants in Connaught Bridge and Port Dickson. The exercise was For 2020, we expect another 82 graduates to be produced as
completed successfully, with LNG purchased at below the we continue to develop our talent pipeline to achieve our Future
domestic regulated price, its savings shared between TNB and Generation Sources strategy. SDG 8
the rate payers. This indicates viability of the mechanism in an
open fuel market.
DISASTER MANAGEMENT
At the same time, a dedicated bypass conveyor system was In 2019, Integrated Community-Based Disaster Management
completed at the Lekir Bulk Terminal (LBT) on 27 June, further (ICBDM) exercises were conducted around the Cameron Highlands,
safeguarding the security of coal supply from LBT to TNB Kenyir and Sungai Perak Hydroelectric Stations to enhance the
Janamanjung. emergency response plans and create awareness of possible
flooding among local authorities and residents. We also continued
ENERGY EFFICIENCY to educate the local populations on the functions of dams with
respect to flood mitigation, water supply and irrigation. To
More than 154 programmes have been identified to improve the further improve our dam safety management, we participated
energy efficiency of our thermal stations, carrying potential savings in the 2019 International Conference on Dam Safety Management
of RM100 million per annum. To ensure the success of these and Engineering. SDG 11
programmes, an Energy Efficiency War Room has been set up
to monitor energy consumption at the stations while a specialist
team has been put together at our headquarters to conduct
energy audits and provide energy efficiency solutions. SDG 7
OUTLOOK
The 2 x 720MW combined cycle gas-fired Southern Power Generation plant in Pasir Gudang, Johor, in which we will have
51% equity, was 97.8% complete at year end. Once commissioned in July 2020, it will be the world’s first Combined Cycle
Gas Turbine (CCGT) plant to use 9HA.02 gas turbine technology with efficiency exceeding 60%.
We expect to complete the Ulu Jelai-Telom transfer tunnel scheme on schedule in August 2020. This project is expected
to increase the amount of firm energy for Ulu Jelai Hydroelectric plant by 40%.
In line with preparations for MESI 2.0, we are setting up a new subsidiary, TNB Power Generation to manage all our domestic
generation assets, including their development, as well as our subsidiaries TNB Repair and Maintenance Sdn. Bhd. (REMACO)
and Integrax Berhad. Its focus will be to optimise the performance of generation assets and services under its portfolio.
Grid of
the Future
The grid of the future is fully automated and digitalised,
supporting bidirectional flow in a decentralised system that
empowers self-generation and greater energy efficiency
among consumers.
OVERVIEW
Since the beginning, we have been building and operating a

national grid superhighway to ensure we are able to ‘keep the
lights on’ for all our customers. With the superhighway, we will
be able to safely transfer power from other regions into the central
area of Peninsular Malaysia, which accounts for 45% of the entire
peninsular’s electricity demand. At the same time, we are digitalising
and automating our grid to ensure greater reliability as more
RE-based electricity is generated, in line with the Government’s
ambition for RE to make up at least 20% of the national generation
mix. To manage the intermittent nature of RE and other demands,
we have outlined a Grid of the Future (GoTF) strategy which
At TNB, we continue to strive to provide greater system reliability
continues to guide us in developing a modern, intelligent grid. and quality through our outlined 10-year transmission Grid of
the Future (GoTF) strategy.
GRID STATISTICS
TRANSMISSION LINES TRANSMISSION SUBSTATIONS ELECTRICITY TRANSMITTED PEAK DEMAND

Wholly-owned Wholly-owned Wholly-owned Wholly-owned
23,964 Circuit-KM 456 substations 128,213GWh 18,566MWh

Majority-owned Majority-owned Majority-owned Majority-owned
2,926 KM 46 substations 6,631GWh 1,001MWh

DISTRIBUTION LINES DISTRIBUTION SUBSTATIONS ELECTRICITY DISTRIBUTED
Wholly-owned Wholly-owned Wholly-owned
683,008 KM 83,467 substations 116,525GWh

Majority-owned Majority-owned Majority-owned
24,937 KM 8,244 substations 6,781GWh
KEY DEVELOPMENTS
A key development in 2019 was to outline long-term strategic plans for both our high-level transmission grid (operating at 132kV
– 500kV) and medium/low-level distribution grid (operating at 240V – 33kV). Due to their different operating levels and proximity
to customers, our transmission and distribution grids are driven by different sets of parameters, and require separate plans to
address their individual complexities.
GRID STRATEGY
Our 10-year transmission grid strategy framework (2019-2029) addresses six key objectives:
1. Sustain system reliability and quality through enhanced 4. Increase grid productivity through digital workforce
infrastructure planning and adoption of maintenance
5. Drive sustainability with world-class safety culture, an
best practices
open data platform and skilled technicians
2. Enhance grid intelligence through smart technology,
6. Accelerate capacity building through the development
digitalisation and intelligent operations
of more SMEs at Grid Academy
3. Improve stakeholder and customer engagement
PG. 043
We are committed to ensuring sustainable We are continuously improving the resilience We are increasingly digitalising our
and productive employment to our network of our network through increased automation operations and services to ensure
employees through the establishment of both so as to improve the safety of the cities, regions sustainable consumption of natural
Grid and Distribution Network Academies and nation we serve resources
Our five-year distribution grid framework (2020-2025) allows ENHANCING DISTRIBUTION GRID INTELLIGENCE
us to address the expected industry changes as a result of
MESI 2.0 by focusing on nine key areas: Four major initiatives are ongoing to enhance our distribution
performance: Distribution Automation (DA), Geospatial Information
1. Developing a smarter distribution grid which will be more System (GIS), AMI and Mobility Solution for our field force.
efficient and resilient to enable distribution level energy
transactions • DA integrates Supervisory Control and Data Acquisition
(SCADA) technologies with field equipment technologies
2. Transforming workforce capability by building capacity
such as earth fault indicators and SCADA-rised circuit breakers
and improving productivity
allowing for remote restoration of supply in the event of
3. Understanding of regulatory rules and framework power outages. As at year end, 16,004 substations have been
4. Adoption of high safety culture automated under the DA initiative, representing 17.5% of
5. Preparation for industry liberalisation all substations in Peninsular Malaysia. SDG 11
6. Digitalisation of current work process and culture • GIS is a computer-based tool that analyses and stores
geographic data, providing accurate asset location, detailed
7. Establishment of platform for distribution related services
asset information and network connectivity to enhance our
and solutions
service while reducing costs and enabling better decision
8. Enhancing accountability and focus on certain business making. During the year, we completed the mapping of all
areas through subsidiarisation
M A N AG E M E N T
medium voltage (MV) distribution assets in Peninsular Malaysia
9. Building commercial capability except Perak, which is targeted for completion by March
2020. Meanwhile, low voltage (LV) mapping was completed
Both these frameworks have been crucial in outlining our Grid for Cheras and Putrajaya/Cyberjaya. To expedite the process
Asset Investment Plan for the upcoming RP3, from 2021-2023, for the remaining seven stations in this phase of deployment,
which focuses on six important areas: the team will embark on mobile mapping.
1. Grid system expansion to cater for system expansion and • AMI is an integrated and intelligent system of smart meters
mitigation of system constraints that supports RE initiatives such as NEM and enables
customers to monitor and reduce their energy usage. Since
2. Refurbishment of existing network infrastructure
this initiative began in 2018, we have installed 281,066 smart
3. Risk reduction through safety and environment compliance meters in Melaka, Klang Valley and Putrajaya/Cyberjaya. SDG 12
4. Establishing self-healing grid that will allow for immediate • Mobility Solution provides important data for field workers to
and reliable mitigation of system disruptions carry out their functions effectively. As at year end, 12 mobility
5. Data analytics and digital intelligence to drive operational solution modules had been rolled out, increasing field force
excellence productivity through simplification of tasks, elimination of
6. Smart tools for more efficient maintenance work paperwork and automation of data collection. SDG 12
For more information on our transmission and distribution asset

TALENT PIPELINE
performance, please refer to ‘Manufactured Capital’ on pages
50 and 51 in Our Capitals section. To enhance our competencies and capabilities, we set up a
Grid Academy and a Distribution Network Academy where 30
transmission and 30 distribution SMEs received training during
the year on leadership, financial and technical skills. SDG 8
OUTLOOK
Fifteen strategic initiatives have been mapped to achieve the objectives of our transmission grid strategic plan. These will
continue to be rolled out in 2020 and beyond. In 2020 itself, we will continue to engage with key stakeholders on the
need to complete the existing 500kV grid superhighway interconnections, the backbone of our Grid of the Future.
Among the core initiative for 2020 is the rollout of AMI in Melaka, Klang Valley and Putrajaya/Cyberjaya to meet the target
of 1.5 million AMI deployed. In addition to improved billing and metering quality, AMI deployment is key in ensuring that
MESI 2.0 reforms on retail liberalisation are delivered.
2020 will also be the year in which we will be negotiating on the development plans for RP3. We submitted our proposal
in December 2019 and look forward to the start of discussions at the end of the first quarter of 2020.
Winning the
Customer
In line with impending competition in the energy market,
it is imperative to not only provide reliable supply of
electricity but to become a customer-centric organisation
which offers meaningful customer experience by meeting
all our customers’ energy-related needs along with the
best service delivery.
OVERVIEW
With competition comes empowerment, where our customers will be given the choice to shop for the best rates, best experience
and wider range of services that extend beyond conventional energy solutions. In response to this, among others, TNB is increasing
focus towards digitalisation in our solutions and service delivery whilst engaging more closely with our customers on energy
efficiency, to increase literacy and provide customers with the tools to manage their consumption while generating or simply
opting to purchase green energy.
Customer-centricity remains our top priority as we continue to explore and enhance our solutions and services to provide seamless and
meaningful experience for our 9.25 million customer base.
CUSTOMERS
519,308
505,239
488,270
9,000,000
452,469
471,943
8,000,000
92,906
84,409
98,479

96,167
88,811
7,000,000
7,553,229
7,378,425
7,181,846
6,984,366
6,920,122
6,000,000
1,453,805
1,553,607
1,575,198
1,475,313
1,510,341
2,000,000
1,600,000
5,504
6,042
6,335
5,824
6,129
1,200,000
2,827
1,598
1,589
1,553
1,991
800,000
65,888
70,402
75,463
67,944
72,554
30,520
27,668
28,867
29,749
14,459
28,321
13,733
14,261
400,000
11,721
4,313
38
53
28
45
34
0
2019
2019
2019
2019
2019
2019
2016
2016
2016
2016
2016
2016
2018
2018
2018
2018
2018
2018
2015
2015
2015
2015
2015
2015
2017
2017
2017
2017
2017
2017
Domestic Commercial Industrial Mining Streetlight Others

PG. 045
We continue to ensure access to We are committed to ensuring sustainable We are contributing to building
sustainable energy for our customers and productive employment to our retail resilient and inclusive infrastructure
through our new products such as employees through the establishment of our with our venture to provide HSBB
mGATs, REC and GSPARX solar rooftop Retail Academy access to undeserved areas
ACHIEVEMENTS IN 2019
BETTER AND BRIGHTER SERVICE NEW PRODUCT OFFERINGS
At TNB, we deliver our services and interactions towards “Click”, Another key achievement was to launch two solutions to promote
“Call” and “Come Over” channels. We continuously enhance our a greener lifestyle. In October, we extended the option to
solutions to give our customers what they want in an increasingly subscribe to green energy through myGreen+ and mGATS. With
digital-savvy world, anchoring on three digital pillars, interactions, the rollout of myGreen+, customers may purchase green energy
solutions and enterprise. We also concurrently focus on enhancing attributes without installing their own solar rooftops or other RE
the delivery and interactions at all our Kedai Tenaga. Moreover, systems. Similarly, through mGATS, we have successfully established
during the year, we further enhanced the performance and a marketplace for the trade of Renewable Energy Certificates
features for the myTNB app and portal towards customer needs (RECs), each carrying the value of 1MWh of RE. By year end,
to be more user friendly, while adding Twitter and Instagram myGreen+ had attracted 46 subscribers who signed up for a
as part of our social media platforms. total of 1,016MWh of energy. SDG 7
In order to delight the customers who like to visit our Kedai Meanwhile, beginning 1 January 2019, NEM has been made
Tenaga outlets, we have equipped all our Kedai Tenaga with more attractive by eliminating the differential between selling
easy-to-use tablets, enabling customers to carry out their and purchase price. Every 1kWh exported back to the grid will
M A N AG E M E N T
transactions digitally, thus avoid having to queue. We have also be offset against 1kWh consumed. This has led to an increase
installed almost 300 payment kiosks nationwide that offer in the number of NEM customers to approximately 1,273 with
increased payment options and increase in credit limit to facilitate an installed capacity of about 74.5MW in Peninsular Malaysia.
towards our customers’ needs. Since introducing these payment In 2019, our subsidiary GSPARX secured 139 solar rooftop
kiosks, the number of over-the-counter transactions has indeed contracts with a total capacity of 25.3MW. SDG 7
seen a reduction, allowing our customer officers to focus on
providing more on value-add advisory services and personalised Further encouraging the adoption of EV we continue to partner
solutions. the Malaysian Green Technology Corporation (MGTC) to increase
the ChargEV station facilities in major cities. A model of the
In order to ensure we always exceed our customers’ experience ChargEV was exhibited at the International Greentech & Eco
and provide increasingly higher levels of service, we continuously Products Exhibition & Conference Malaysia 2019 held in Kuala
enhance our Retail employees’ competencies. Our Retail Lumpur from 9-11 October 2019.
Academy was set up in November 2019 and has successfully
delivered its first batch of 142 employees. In addition to Retail
Academy, almost 2000 frontliners also attended our “Delivering BEYOND KWH
Customer-Centric Solutions” courses to reinforce our ‘service Beyond energy, we are leveraging our extensive fibre optics
from the heart’ culture, while almost 600 employees underwent infrastructure to provide HSBB access to underserved areas in
functional and soft skills training. SDG 8 Malaysia. In 2019, we completed our National Fiberisation and
Connectivity Plan (NFCP) pilot in Jasin, Melaka, through which
For more efficient meter-reading and bill delivery, we equip we made available access to broadband speeds up to 1Gbps
our meter readers with personal digital assistants (PDAs) which, to 1,100 premises. This is in addition to our existing consumer
together with the availability of more convenient channels of fibre network that is connected to 24,000 homes and 200
payment, has contributed to improvement in our overall offices within Malaysia’s Multimedia Super Corridor designated
collections. In 2019, our collection rate increased to 88.4%, areas (i.e. Cyberjaya and Bangsar South). SDG 9
which is above the industry benchmark of 88% and our Aged
Debt to Revenue ratio successfully dipped to below 4% for the
first time. CUSTOMER SATISFACTION
Through focus on customer centricity, we are proud to have

successfully created memorable experiences and driven better
customer engagements at our key touchpoints. To this end, our
CSI achieved 8.1 for the fourth consecutive year, benchmarking
competitively against CSI in the UK and United States markets.
OUTLOOK
With the setting up of TNB Retail, there will be more and great focus to increase our service delivery standards and to
exceed customer experience. New solutions will continuously be developed while we continue to enhance existing offerings
such as rooftop solar and smart home solutions. All these efforts are made in our bid to become the retailer of choice for
our customers.
At the same time, we will complete the deployment of our NFCP network in 2020 to cover approximately 100,000 premises
leveraging our 18,000km of fibre network across Peninsular Malaysia.
Future Proof
Regulations
As the energy industry in Malaysia enters a new phase of
liberalisation, it is important to protect the interests of all
relevant stakeholders – from producers to end users – to
ensure sustainability of the system.
OVERVIEW
As TNB aspires to become a global energy solutions player with

a growing portfolio of international businesses, we need to
ensure readiness not just for domestic but also international
regulations as these evolve. Domestically, we have always
provided input to the regulators in establishing policies that
impact the industry, even before the first MESI reform initiatives
began in 2009. Our ultimate objective is to work in tandem
with local Governments/Regulators in the countries where we
operate in order to develop policies and regulations that would
contribute towards truly sustainable industries for all.
The Trial LNG Cargo Shipment demonstrates TNB’s commitment to supporting

the Governments’ aspirations of an open fuel market under MESI 2.0
MESI 2.0
In September 2019, the Government announced it was embarking on industry reforms via MESI 2.0 with the aim of delivering
reforms across the value chain. The potential reforms are as follows:
Fuel Open fuel procurement for power generators, allowing them to source their own fuel to optimise costs
Generation Gradual introduction of a capacity and energy market while maintaining existing PPAs
Grid Enable TPA to the grid system for electricity transmission and distribution while ensuring that the Grid
is able to facilitate distributed energy resources under the GotF
Retail Facilitate greater choice in the retail segment, allowing players to offer new products and services
Governance In ensuring a competitive and transparent system and eventual opening of the market, enhance governance
of Single Buyer (SB) and the Grid System Operator (GSO) in a move towards an Independent Market
Operator
MESI 1.0 reforms that were launched in 2009 significantly strengthened the overall governance of the sector with the ring-
fencing of SB and GSO. It introduced a robust and transparent framework for setting tariffs that incentivises efficiencies while
enabling the system to recover its costs and fair returns.
In many ways, these reforms have been responsible for creating a strong foundation for MESI 2.0 which aim to ensure sector
efficiency, robustness and sustainability. Therefore it is crucial that reforms “do no harm” to an already strong and stable industry.
As reforms being considered for market liberalisation are heavily interdependent, the unique starting point of MESI should be
taken into consideration when designing reform initiatives. Translating thoughtfully designed reforms into positive outcomes
requires careful sequencing of enablers and initiatives as well as rigorous implementation. It is therefore prudent for the reforms
to be carried out in a gradual and controlled manner.
Overall, we recognise the need for the sector to further evolve, as reforms are needed to enable the massive technology transition
and prepare for the demand of new future-proof jobs. A MESI built on the foundation of a strong regulatory framework, presents
a distinctive opportunity to be an economic catalyst for Malaysia.
PG. 047
The extension of the EPWA We are currently upgrading our interconnection Our continued support for the APG
agrement will allow us to continue with Singapore as part of our efforts to improve will pave way for the trading of non
to purchase non carbon energy the resilience of our national grid and nation’s carbon energy amongst the ASEAN
from Laos PDR for our customers supply reliability countries
IMBALANCE COST PASS-THROUGH
In 2019, the Government continued with the Imbalance Cost Pass-Through (ICPT) mechanism for two six-month cycles, beginning
in January and then July 2019. ICPT is a tariff adjustment mechanism that allows for the pass-through of variation in fuel costs
and generation costs into the customer’s tariff in Peninsular Malaysia via surcharge or rebates accordingly. The Government
announced the pass-through of additional generation costs of RM948 million for the January – June 2019 period, and RM1,148 million
for the July – December 2019 period. The additional cost was mainly due to the increase in coal prices that were on average
higher than the forecasted coal price set under the base tariff of USD75 per MT. Higher electricity demand has also resulted in
the increase in the fuel and generation cost for the period.
Malaysia Power Sector Fuel Prices (RM/GJ)
40
35
30
LNG
25
M A N AG EM EN T
20
Piped Gas
15
10
Coal
5
0
Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19
CROSS-BORDER INTERCONNECTIONS
TNB has been actively supporting the realisation of the ASEAN MALAYSIA-SINGAPORE INTERCONNECTION
Power Grid (APG) through cooperation with our ASEAN
The interconnection between Peninsular Malaysia and Singapore
counterparts and pursuing interconnection initiatives with
acts as a mutual energy transfer in times of need. Realising
Malaysia’s bordering countries. SDG 17
the opportunities of power trade in the future as part of achieving
APG aspirations, both TNB and Singapore Power have agreed
LAO PDR – THAILAND – MALAYSIA POWER INTEGRATION
to upgrade the existing 250MW HVAC lines connecting both
PROJECT
countries into 2 x 550MW HVAC lines. The cable upgrading
The Energy Purchase and Wheeling Agreement (EPWA) between work will be completed in 2020. SDG 11
Laos PDR, Thailand and Malaysia is the first multilateral energy
trading initiative in ASEAN under which Malaysia purchases hydro SUMATRA – PENINSULAR MALAYSIA INTERCONNECTION
power of up to 100MW from Laos PDR via Thailand. Given the
Finally, TNB and PT PLN (Persero), Indonesia are further analysing
project’s successful implementation in 2017, all parties agreed to
the possibility of connecting Peninsular Malaysia with Sumatra
a two-year extension from 1 January 2020 which will allow for the
and entered into a Memorandum of Understanding on the
purchase of electricity up to 300MW. SDG 7
25 September 2019.
OUTLOOK
Our immediate focus is our corporate restructuring that will include the creation of two separate subsidiaries to better
manage our generation and retail businesses; continuing our transformation journey under Reimagining TNB 2025; working
with our Government and Regulator on safeguarding the reliability and affordability of electricity supply via the determination
for tariffs in our RP3; and supporting the design and extensive implementation of the Governments aspirations under MESI
2.0 reforms.
STRATEGIC BUSINESS REVIEW – OUR CAPITALS
Financial
Capital
We recognise the importance of managing our financial capital efficiently in order to be able to support our daily operations
and growth plans while providing sufficient returns to our valued shareholders and fulfilling our obligations to other providers
of financial capital.
OVERVIEW 2019 Highlights

EBITDA Margin (%)
TNB Group recorded a revenue of RM50.94 billion for the
financial year 2019, marking an increase of 1.1% compared to
40
the financial year 2018. This was supported by 2.7% growth 36.1
in gigawatt hours (GWh) demand which resulted in a 0.9% 35 33.2 32.6
32.2 32.3
or RM0.42 billion increase in total electricity sales.
30
26.5
Profit attributable to the owners of the Company for the
25
financial year 2019 was RM4.53 billion compared to RM3.72 billion
in the previous financial year. 20
Group EBITDA, meanwhile, was RM18.40 billion with a margin 15

of 36.1% compared to RM13.37 billion and 26.5% margin in
10
2018. The increase was mainly contributed by lower impairments
and a decrease in operational expenses. 5
0
The Group’s PAT – impacted by regulatory adjustments which
2015 2016 2017 2017* 2018 2019
were returned to the industry, forex transaction losses, finance Restated
cost and fair value changes of financial instrument – came in
at RM4.45 billion. * Financial Period Ended 31 December 2017
BORROWINGS
TNB’s strong financial standings are backed by its credit ratings accorded by both local and international rating agencies (AAA
Stable by RAM, AAAis/AAA Stable by MARC, A3 Stable by Moody’s and BBB+ Stable by S&P) was able to tap into local and
international funding sources including the capital market, banks and other financial institutions.
We are governed by our Treasury Policy in managing forex and interest rate exposures with the objective of protecting the
Group’s profit from material adverse movements due to rate fluctuations.
We have been managing our short-term forex exposures through hedging a minimum of 50% of known foreign currency exposure
up to a 12-month period through forward exchange contracts and natural hedges.
2019 Highlights
Borrowings Currency Mix (RM’million) Debt Maturity Profile (RM’million)
1.3%
5.3% 0.1% RM598.7 4,000 3,867.2
RM2,414.8 RM52.9
17.3% 3,000
RM7,873.2
Total 2,000 1,824.2

RM45,411.7 1,613.2
million 1,025.9 1,020.0
1,000
76.0%
RM34,472.1
0
FY2020 FY2021 FY2022 FY2023 FY2024
MYR USD JPY GBP PKR
PG. 049
DIVIDEND
For the financial year 2019, TNB’s Board of Directors had approved a total RM5.69 billion in dividend payout. This includes a
special dividend of 50.0 sen per share on top of a core dividend of 50.0 sen. The total dividend issuance of RM1.00 per ordinary
share as compared to 53.3 sen in financial year 2018 is a record high and definite indicator of TNB’s strong fundamentals.
The core dividend payout amounting to RM2.84 billion translates to a 56.0% dividend payout ratio from the Group’s adjusted
PATAMI of RM5.08 billion. This is consistent with our Dividend Policy of providing shareholders between 30% and 60% of the
Group’s consolidated net PATAMI excluding extraordinary, non-recurring items.
In compliance with the Companies Act 2016, we applied prudent financial risk management by assessing the Group’s solvency
and ability to settle short-term loan obligations in deciding on our dividend issuance.
The Board decided on payment of the special dividend in a show of appreciation to our loyal shareholders for their continuous
support.
M A N AG EM EN T
2019 Highlights
Total Dividend RM (sen)
100
50.0
80
60
44.0
23.0 20.0
40
22.0
20 19.0 30.3 30.0
21.4
17.0
10.0 10.0
0
2015 2016 2017 2017 2018 2019
Restated*
Interim Final Single tier dividend Special
Dividend Distribution (%)
60 55.8 56.0
50.0
50
44.0
40
30
26.8
20 24.5
7.5
10
4.3 3.9
2.6 2.2 1.4
0
2015 2016 2017 2017 2018^ 2019^
Restated*
Dividend Payout of Group PATAMI (%) Dividend yield (%)
^ Dividend Payout of Adjusted Group PATAMI (excluding special dividend)

* Financial Period Ended 31 December 2017
Manufactured
Capital
Our assets are critical to the smooth functioning of our operations and form the backbone of our business model.
ASSET KEY ACTIVITIES IN 2019 FOCUS IN 2020
POWER GENERATION ASSETS • Added 1,400MW to Group equity capacity • Creation of TNB Power Generation
through commercialisation of 2,000MW ultra o per at i ng a s a w h o lly - o w n e d
Thermal generation plants: supercritical coal Jimah East Power plant subsidiary
• 6 coal-fired • Strengthened plant operations with completion • Commercialisation of 1,440MW
• 11 gas-fired of turnaround programme at Janamanjung; and Southern Power Generation plant
• 19 oil/distillate-fired rollout of turnaround programme to 11 other by July 2020
plants/hydro stations • Commercialisation of 30MW LSS
Non carbon plants: • Successfully conducted a trial cargo of LNG at Bukit Selambau by December
• 12 large hydro plants under the gas TPA framework which was 2020
• 119 RE (mini hydro, solar, wind) consumed by Tuanku Jaafar Power Station and • Completion of tunnel works at Ulu
Connaught Bridge Power Station Jelai Hydroelectric Project by
• TNB Generation Division sustained ISO 55001 August 2020
certification by SIRIM • Phase 3 (implementation) of
turnaround programme at CBSB,
PRAI, TJPS and KEV throughout
2020
POWER NETWORK ASSETS • Domestic networks continued to achieve world- • Deployment of 1.2 million smart
class performance – with transmission system meters in selected area of Klang
Transmission network assets minutes at 0.27 minutes and SAIDI at 48.13 Valley and Putrajaya/Cyberjaya
• 26,890 circuit km of transmission • Completed RM6.91 billion worth of domestic • Completing RM5.79 billion worth
network network enhancement, including: of domestic network enhancement
• 502 transmission substations – 26,472 circuit km of network and 2,441 new • ISO 55001 recertification
substations • Formation of a centralised grid
Distribution network assets – Installation of 120,677 smart meters, now control tower to strengthen delivery
• 707,945 circuit km of distribution totalling 281,066 of strategic plan, grid digitalisation
network – Automation of 3,850 distribution substations, initiative and Grid Academy talent
• 91,711 distribution substations adding to a total of 7,522 automated development
substations in RP2
– 10-year transmission network strategic plan
(2019-2029) developed, to address changes
in line with TNB’s strategic plan and expected
industry changes as a result of MESI 2.0
• 5-year distribution network strategic plan (2020
-2025) developed to ensure the delivery of both
TNB’s strategic plan and industry reform MESI 2.0
• Mapping of MV asset and customers for electrical
distribution using GIS
• TNB has installed 326,053 units of LED for the
streetlight relamping project as at December 2019
NON-POWER ASSETS • Completion of our HSBB pilot project in Jasin, • Extension of our HSBB network to
Melaka involving 1,100 premises passes approximately 100,000 premises
• 5.2 mil sq ft of office and operational • Continued efforts to optimise TNB real estates including expansion beyond Jasin
work space costs and utilisation at reduced costs and higher to about 15,000 premises in Melaka
• 18,000 km of fibre optic network service level • M anag e a ll T N B ’ s r e a l e s ta te
• 4,026 vehicles • Establish TNB’s Fleet Service Centre along with development projects which
staff upskilling to better improve quality contribute to a total costs for
• Upgrading of TNB’s fleet with installation of GPS RM1.4 billion
tracking for 800 frontline field crew for improve • Digitalisation of TNB’s fleet
response time management current process and
manual system
PG. 051
2019 Highlights
EQUIVALENT AVAILABILITY FACTOR (EAF)
100 93.26
88.51 91.49 89.92
90 83.35
79.65 80.69
80 73.28 71.89
70
60
50
40
30
20
10
0
FY2017 FY2018 FY2019
M A N AG EM EN T
Peninsular Malaysia Sabah International
EQUIVALENT UNPLANNED OUTAGE FACTOR (EUOF)
14
11.91
12
10.17
9.55
10
8
6.63
6 4.85
4 3.24
2.69 2.88
1.82
2
0
FY2017 FY2018 FY2019
Peninsular Malaysia Sabah International
SYSTEM MINUTES & SYSTEM AVERAGE INTERRUPTION DURATION INDEX (SAIDI)

SAIDI - Peninsular SAIDI - Sabah
50.24
50 48.22 48.13 300
262.68 267.87
40 250
205.31
200
30
150
20
100
10 50
0 0
FY2017 FY2018 FY2019 FY2017 FY2018 FY2019
System Minutes - Peninsular System Minutes - Sabah

0.40 50
0.35 45 42.97
0.35
40
0.30 0.27 35
0.25 0.23
30
0.20 25
0. 1 5 20
10.92 13.41
15
0. 1 0
10
0.05 5
0 0
FY2017 FY2018 FY2019 FY2017 FY2018 FY2019
Natural
Capital
We seek continuously to minimise our carbon footprint while ensuring all emissions and effluents meet regulatory standards.
At the same time, we are committed to reduce our use of natural resources and to protect the country’s rich biodiversity.
APPROACH KEY ACTIVITIES IN 2019 FOCUS IN 2020
Protect natural heritage • Conducted biodiversity management programmes at three Continued protection, conservation
through biodiversity- (3) of our 12 hydroelectric stations, including: and recovery of natural capital in
enhancing programmes o Establishment and monitoring of Kelah fish sanctuaries the areas where we operate
o Collaboration with State Government, Department of
Wildlife and National Parks, Department of Forestry, Forest
Research Institute of Malaysia and along various local
universities to protect and conserve Sungai Perak and
Hulu Terengganu Hydroelectric Station’s Catchment
o Development of a fish resources management plan to
improve the sustainability of fish populations impacted
by operations of hydroelectric plants
o Multiple awareness programmes involving secondary
school students to preserve and protect local river
ecosystems
• Reforestation within TNB project sites by planting of tropical
rainforest species at Ulu Perdik, Hulu Langat at Akekchep
Sungai Tiang and at Hulu Terengganu Hydroelectric Station
• Expanded firefly colony conservation programme from
Kampung Kuantan in Kuala Selangor, Selangor to Kampung
Yak Yah in Kemaman, Terengganu; Kampung Sungai Timun
in Rembau, Negeri Sembilan; and Kampung Dew in Taiping,
Perak
Protect the environment • Water usage in plants, substation and buildings (2018) was Establish baseline for GHG emission
through proper effluents, 8,047 megalitres
emission and waste • Four of our conventional power plants complied with the
management new Clean Air Regulations enforced in July 2019, while the
remaining were issued with Clean Air Regulations License
to Contravene
• Ensured effluents met regulated minimum standards based
on DOE requirements
• Adopted best practices in scheduled waste management
and recycled used parts
Adoption of sustainable • Continued retrofitting TNB premises to enhance building Continued improvement of our
business practices across our energy efficiency (EE), resulting in 782MWh of saved energy sustainable business practices
value chain • Identified more than 154 EE initiatives at our thermal stations
• Established an online GHG Emission Management System
(GEMS) to track our emissions systematically
• 29 ChargEV stations installed and 49 potential sites identified
• Promoting green energy by introducing tradable RE
Certificate (MGATS) and optional green tariff (myGreen+)
• Our Generation Division continues to be certified ISO 14001
Environmental Management System
• Publication of Sustainability Report
PG. 053
M A N AG EM EN T
5.75 million tCO2e
of GHG Emissions were mitigated in 2018
TNB’s GHG Emission*
tCO2e/MWh tCO2e
0.60 40,000,000
37,117,610
33,503,804 35,000,000
0.58
29,061,190 30,000,000
0.57
25,000,000
0.56
0.55
20,000,000
0.54
0.54
15,000,000
10,000,000
0.52
5,000,000
0.50 0
FY2016 FY2017 FY2018
Total Emissions (tCO2e)

Emission Intensity (tCO2e/MWh)
* Emission mitigated for FY2016 - FY2018, figures for FY2019 are in progress TNB has been a long-standing supporter in conserving firefly colonies
in Malaysia.
Intellectual
Capital
As we seek to future proof TNB, it is imperative to continuously enhance our intellectual capital in order to support our operational
and technology needs.
MANAGEMENT APPROACH KEY ACTIVITIES IN 2019 OUTLOOK
Research & development
Investment into new • Invested RM81 million into environmental management, power delivery Continue to invest
technologies that would and power generation research via TNB Research Sdn. Bhd. in 2019 in research and
benefit the energy sector • Entered into collaboration with Malaysia Space Agency (Angkasa) on development as one
electromagnetics and vibration technology of the key enablers
• Set up a Scanning Electron Microscope (SEM) lab that has been in addressing the
accredited by the Department of Standards Malaysia oncoming industry
• UNITEN was a recipient of the Leaders in Innovation Fellowship from wide challenges
the Royal Academy of Engineering, UK
• Formation of innovation working group to plan and further strengthen
research and commercialisation processes
• Development of an in-house hydro turbine control system that is able
to upgrade performance of existing Pelton turbine
Operational & service innovations
Develop innovations to • Collaboration with Vietnam Electricity (EVN) to further enhance EVN
optimise operations, enhance maintenance practice through the adoption of Condition Based
asset management and Maintenance methodology
reduce costs • Our internally deployed Integrated Community Based Disaster
Management (ICBDM) system to manage and mitigate hydroelectric
dam environmental risks is being considered by Electricite Du Laos for
use at five of their hydroelectric dams
• Enhancement of existing floating solar photovoltaic system enabling
higher system power output
Technology and business model innovations
Invest in innovation to • Entered into partnership with SWCorp to develop a biogas technology Continue to focus on
enhance revenue from anaerobic digestion of food waste, its business model and establish business Innovation
a potentially new revenue stream for TNB for B2C, B2B and B2G
• Developed a Minimum Viable Product (MVP) of Digital Market Place with the aim of
and identified the first three solutions to be offered on the marketplace creating value for our
• Developed TNB’s first net zero energy home showcase through leveraging customers
on services and offerings from within the TNB group
• Piloting EV car-sharing platform in partnership with SOCAR
2019 Highlights
R&D Investment (RM million)
^
Breakdown of R&D ^ investment by research area
120 117.4 117.4 16.3% 16.3%

105.7
100
81.7
80 72.9
59.6
60 26.6%
40 40.8%
20
Conventional thermal generation
0 Renewable energy and environment sustainability
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Enhancing grid network
^ R&D performed by subsidiary TNB Research Sdn. Bhd. Others – power quality, management systems
PG. 055
TNB’S FIRST NET ZERO ENERGY HOME SHOWCASE
HOW ZERO NET ENERGY HOME WORKS

1. Energy is generated from solar panel.
2. Inverter will convert Direct Current (DC) to alternating
Current (AC) to supply electricity to the house load.
3. Energy is generated from solar roof tiles.
4. Hybrid Inverter will convert Direct Current (DC) to
Alternating Current (AC) to supply electricity to the
house load.
5. Battery Storage will be charged from solar roof tiles
and will be used when there is demand.
6. Smart appliances will use the electricity generated
M A N AG E M E N T
from the solar panel & roof tiles.
HOW SOLAR TREE WORKS

7. Energy is generated from solar panel on top of the
tree structure. An appliance connected to the power
source at the solar tree will be generated from
solar.
HOW EV CHARGING WORKS

8. EV charging station is powered up by grid to change
EV cars.
R&D PROJECTS THAT HAVE BEEN TURNED INTO SERVICE:
PROJECT DESCRIPTION
Resolves problems associated with the environmental effects of soil contaminated by

Soil Bioremediation Technology
transformer oils
An automated easy-to-use solution for collecting and disposing trash/garbage in water bodies
Trash Buster Craft
such as reservoirs, rivers, streams, dams and lakes
Boiler Tube Inspection System Cutting-edge innovation to enable visual inspection of the inner surface of boiler tubes
Transchrom Enhances the ability to detect transformer failure
Advanced Security Surveillance Cutting-edge technology combined with sensitive hybrid connectivity, enables law enforcement
System to prevent crime and theft
Standardisation RMU Operating

Innovative tool that can be used to operate different SF6 Ring Main Unit (RMU) brands
Handle
Advanced methods to determine the chemical make-up, quality and regulatory compliance
Solid Fuel Testing Technologies
for coal, metallurgical coke, biomass fuels, and other solid carbon-based fuels
Human
Capital
We recognise the immense value of our human capital and seek to build the capabilities and competencies of our people in
order to realise their full potential while ensuring their health and safety.
Human resource management
Inculcate data-driven culture • Formed HR analytics community of practice comprising 35 • Develop mid- and long-term
in human resource (HR) individuals who have obtained HR Analytics Foundation & HR strategy (2020-2025) to
through analytics capability, Intermediate certification, with six (6) members also completing ensure alignment with new
while establishing data Enterprise Data Analyst (EDA) programme HR business model post RT
governance framework • Five (5) high-impact HR analytics studies are ongoing while • Embark on culture
HR Data Governance Framework has been developed and transformation programme
implemented throughout TNB
Develop HR as trusted • Proactive management of Group’s medical expenses to ensure • Review HR policies and
strategic business driver in expenses growth is kept below 5% processes to ensure relevance
catalysing business growth • Flexible working hours introduced for executives to the new business model
and cost efficiency
Safe & healthy work environment
Create a safe and healthy • Successfully reduced Loss Time Injury Frequency (LTIF) rate • Target to achieve Generative
workplace eliminating work- in 2019 by 30% in comparison to the previous year Safety Culture score of 4.5
related injuries and illnesses • Strengthened our company wide Health, Safety and Environment by 2021
(HSE) management system and audit standards through the • Establish wellness profiles
adoption of a Health, Safety and Environment Management for all TNB employees, and
System (HSEMS) manual reach out to employees who
• Implementation of Behavior Assessment Program (BAP) and may need support in
re-enhanced Defensive Riding training module resulted in a overcoming health issues
40% reduction in motor vehicles incident among meter readers
group-wide
• Launched HSE wallet mobile app to promote the reporting of
Potential Incident (Unsafe Act & Unsafe Condition) by employees,
resulting in 72,577 hazards being reported in the year
• Implementation of Tenaga Safety Culture & Spiritual Hour
Activation Program focusing on transforming the hearts and
mind of employee towards achieving Generative Safety Culture
• Developed Safety Health Committee (SHC) Online platform
focused on mitigating local HSE issues
Encourage adoption of • Total Wellness Programme and awareness sessions conducted
healthy lifestyle among at 159 TNB stations nationwide to date, through which we
employees have compiled basic health data on 15,687 employees
• Provision of wellness facilities, eight (8) certified healthy
cafeterias and 61 TNB gyms equipped with latest equipment
and certified trainers, in our larger workplaces
• Allocation of one (1) hour per week for Total Wellness programme,
while encouraging employees to go for yearly medical check-ups
Talent management & development
Building leadership readiness • Delivered 108% leadership readiness for senior management
positions across the Group
• To date, 113 employees have undergone our in-house experiential
learning programme which combines classroom lessons with
mission-based work assignments
• 32 leadership talent selected to participate in our corporate
MBA programme with UNITEN in partnership with Melbourne
Business School, University of Melbourne
• 38,000 hours allocated for leadership training
PG. 057
Talent management & development
Maintain core competencies • Total of 1.09 million training hours, averaging six (6) man-days
and build new capabilities of training per employee
in technology and innovation • 2,100 participants involved in the in-house upward mobility
programme in 2019
• Establishment of four (4) academies to develop functional
SMEs adept in both technical and business matters
o Grid Academy – developed 32 transmission grid SMEs in
2019
o Distribution Network Academy DNA – developed 30
Business Leaders in 2019
M A N AG EM EN T
o Generation Academy – developed 80 generation SMEs in
2019
o Retail Academy – launched in November 2019 with 142
participants
2019 Highlights
Employee Breakdown by Employee Category Employee Breakdown by Generation
20,000 18,813 15,000 14,546
16,000 12,000
12,000 9,000
8,000 6,000 5,327

3,809
3,415 3,821
4,000 2,426
3,000
1,607 1,825
1,220
270 65 14 1 221 270
0 0
Non-Executives Executives Management Senior Management Gen Z Millennials Gen X Baby Boomers
Man Women Man Women
Annual LTIF Employee Engagement
s c or e h a s i m p r ove d b y 3% c om p a red t o 2 0 1 8
2.5
89% 89%
2.08
2.0
1.5 1.44 1.47 LTIF by business activities in 2017

to 86%
in 2018
and in 2019
Generation – 0.42
1.06
1.0 Transmission – 0.66
Distribution – 1.12
0.5
Retail – 3.72
0.0
2016 2017 2018 2019
Social and Relationship

Capital
We recognise the contributions of our stakeholders to TNB and seek to create value for them as we build relationships based
on integrity and trust.
Investors
Provides the investment community • Successfully addressed the investment community’s concerns on MESI Reform Continue to proactively engage the
with transparent, clear and holistic 2.0 and the Group’s business strategy and direction through various engagement investment community to address
picture of the Group’s performance forums any concerns raised and to avoid
and prospects through proactive • Achieved Investor Relations survey score of 85.3%, marked the highest score ever misrepresentation with regards to
engagements. recorded the Group’s performance and strategy
moving forward
Continuously create long-term value
for the shareholders. Exploring innovative solutions
and best practice to improve
communication and engagement in
order to better serve the investment
community
Trade unions
Maintain harmonious relationship • Concluded the 9th Collective Agreement between management and executive Negotiate and conclude latest
with unions and involve leaders in union representing majority of TNB’s executive officers, Persatuan Eksekutif TNB Collective Agreement (2020-2022)
labs, syndications, meetings and • Collaborate to resolve various work and workers related issues through Joint between management and
field trips Consultative Council between management representatives and union leaders at representative of the three unions
corporate level, division level and state/zone level for each of TNB’s three registered
unions and two workers associations Continue to maintain harmonious
• Continue to maintain open door policy in which union leaders are able to access relationship between company and
any of the senior management members including CEO to discuss and deliberate employees
of issues close to our workers heart
Customers
Forge meaningful relationships via • Deployed 281,066 smart meters in Melaka, Klang Valley and Putrajaya/Cyberjaya
increased focus towards customer’s • Continued to provide Home Energy Reports, Home Energy Management System,
choice and literacy, quality customer Energy Performance Contracts (EPCss) to promote energy efficiency and sustainable
service, innovative solution and lifestyles
ef fective communication and • Conducted 37 energy efficiency sessions to increase literacy and awareness to
engagement government agencies, NGOs, community leaders, universities, schools, as well as
TNB staff
• Helped 1,155 customers install RE systems and feed into the grid through NEM
and SARE
• Achieved CSI score of 8.1 for the fourth consecutive year, for quality service delivery
and experience across all channels
Vendors/suppliers
We support local businesses as far • RM9.3 billion spent on local suppliers in FY2019 Continue our efforts to support and
as possible to spur the local • We treat all our suppliers fairly and with integrity, establishing strong working develop our local vendors through
economy with our suppliers and contractors, based on mutual respect our vendor development programmes
Community
Ensure Malaysians in rural and • Connected electricity supply to 13 remote villages, reaching 270 household as Develop and implement student
remote areas have access to part of our Rural Electrification Programme development framework that will
electricity • Under the Better Bright Shelter Programme, we helped to provide temporary allow us to run programmes to
accommodation at Hospital Melaka for families whose members are undergoing improve underprivileged students
Contribute to higher standard of treatment there. This brings the number of hospitals supported by this programme leadership and soft skills
living by ensuring Malaysians have to three
proper homes to live in • We built/upgraded 212 homes and rewired another 93 homes under our Home Complete our commitment to deliver
for the Needy Programme and Home rewiring Programme benefitting underprivileged electricity supply to 30 remote
Uplift marginalised communities families villages, connecting 615 houses to
through education • Provided assistance to 1,862 students for tertiary studies under Yayasan Tenaga the grid
Nasional scholarships and convertible loans
• Contributed to 26 under-performing schools nationwide under the Trust Schools
Programme and PINTAR school adoption programme, benefitting total of 7,111 students
• Provided Ceria ke Sekolah school sets to 6,100 underprivileged students
• Our Dermasiswa My Brighter Future programme assisted 3,564 B40 students to
take up STEM subjects at qualified Malaysian universities and colleges total of
RM6 million towards hockey development in the country
PG. 059
2019 Highlights
Home Energy Management System (HEMS) helps domestic customers
270 households in remote areas are now connected to the grid monitor their electricity consumption, automate their home appliances
M A N AG EM EN T
as part of our Rural Electrification Programme. and improve their home security, through a downloadable app.
MyBF dermasiswa
Kirthiga Krishnamoorthy, 19 Ling Kiong Mau, 21 Muhamad Akidd Mohd Sharif, 22

Diploma in Civil Engineering, Degree in Civil Engineering, Degree in Electrical Engineering
Politeknik Shah Alam Universiti Malaysia Sarawak Technology (Power Industry),
“When MyBF Dermasiswa offer came “The letter from TNB was a blessing. Universiti Teknikal Malaysia Melaka
along, it felt like a gift from heaven. It took away my worries and from “The MyBF Dermasiswa means a lot
My dream now is to be a civil that moment on, I managed to focus to students from lower-income
engineer and again don the vest I on my studies as I didn’t have to families like me. It helps to boost
wore playfully as a child.” worry about money anymore.” our motivation and morale to further
our studies and keep working hard.”
Our Social Circle The Notable achievement of our 2019

festive campaign:
TNB Twitter
19,133
followers
Youtube Malaysia Ad Awards
2019
TNB Instagram
28,817
Best Storytelling for
Occasions for TNB
followers Raya 2019 Konvoi
Epik Fantastik.
TNB Careline
282,166
followers
Our
Scorecard
31.08.2015 31.08.2016 31.08.2017 31.12.2017 31.12.2018 31.12.2019
Return on asset 6.6% 6.4% 5.4% 5.3%(5) 3.2% 2.8%
Generation market share(1) 48.0% 52.3% 52.3% 50.6% 49.9% 51.42%
Customer satisfaction index(4) 8.0 8.1 8.1 N/A(4) 8.1 8.1
Corporate reputation index(4) 76% 82% 81% N/A(4) 88% 87%
Equivalent availability factor(2) 88.76% 88.08% 88.51% 84.96% 89.92% 83.35%
Equivalent unplanned outage factor(2) 3.85% 4.44% 2.69% 4.46% 3.24% 6.63%
0.77 1.47 0.23 0.05 0.35 0.27

Transmission system minutes(1)
minute minute minute minute minute minute
System average interruption duration

49.66 49.71 50.24 18.05 48.22 48.13
index(1) (SAIDI) minutes/customer/year
Transmission losses(1) 1.47% 1.28% 1.29% 1.30% 1.43% 1.35%
Distribution losses(1) 6.21% 6.11% 6.21% 6.13% 6.62% 6.30%
Employee engagement score(3) 85% 89% 89% N/A(4) 86% 89%
(1)
For Peninsular Malaysia only.
(2)
TNB’s wholly-owned generating capacity in Peninsular Malaysia.
(3)
TNB conducts its employee engagement survey biennially. The scores for both FY2016 and FY2017 are based on survey conducted in
FY2016.
(4)
The respective surveys was not conducted during this 4-month Annual Report period.
(5)
Financial Period Ended 31 December 2017 (Restated).
PERFORMANCE REVIEW
Key Financial
Highlights
GROUP COMPANY
FINANCIAL YEAR ENDED 31 DECEMBER 31.12.2019 31.12.2018 31.12.2019 31.12.2018
PROFITABILITY (RM Million)

Revenue 50,939.7 50,392.5 47,242.3 47,063.3
Operating profit 8,206.8 6,875.6 6,562.6 6,070.8
Profit before taxation and zakat 5,477.7 5,046.6 2,872.5 4,314.1
Net profit attributable to owners of the Company 4,529.2 3,723.7 1,965.0 3,218.6
KEY BALANCE SHEET DATA (RM Million)

Property, plant and equipment 109,966.0 111,445.5 71,345.7 83,921.1
Total assets 178,847.2 153,695.0 172,364.2 125,141.5
Total borrowings 45,411.7 47,832.4 19,488.1 21,637.0
Total liabilities 119,565.1 94,643.1 122,869.5 73,411.4
Share capital 11,446.1 11,446.1 11,446.1 11,446.1
Shareholders’ equity 59,282.1 59,051.9 49,494.7 51,730.1
SHARE INFORMATION
Per share (sen)
Basic earnings 79.64 65.62
Diluted earnings 79.64 65.39
Dividend (sen):
– Interim 30.00 30.27
– Final 20.00 23.00
– Special 50.00 –
Net assets per share attributable to owners of the Company 1,019.6 1,017.0
FINANCIAL RATIOS
Return on assets – ROA (%) 2.8 3.2
EBITDA margin (%) 36.1 26.5
Debt-equity (net of cash) ratio 0.53 0.50
PG. 063
Group Quarterly
Financial Performance
FY2019
RM Million Q1 Q2 Q3 Q4 Year
Revenue 13,244.8 12,876.0 12,641.8 12,177.1 50,939.7
Operating in‑come 221.5 226.9 328.3 354.3 1,131.0
Operating profit 2,505.9 2,072.5 2,278.6 1,349.8 8,206.8
Profit before taxation and zakat 2,073.6 1,082.8 1,546.5 774.8 5,477.7
Profit attributable to owners of the Company 1,556.8 1,116.2 1,202.9 653.3 4,529.2
Earnings per share (sen) – basic 27.38 19.63 21.15 11.49 79.64
Dividend per share (sen) – 30.0^ – 70.0*# 100.0
FY2018
M A N AG E M E N T
RM Million Q1 Q2 Q3 Q4 Year
Revenue 12,274.0 12,497.9 13,073.8 12,546.8 50,392.5
Operating income 182.5 199.9 191.6 251.1 825.1
Operating profit 2,689.7 2,014.4 1,474.5 697.0 6,875.6
Profit before taxation and zakat 2,415.4 1,523.9 904.6 202.7 5,046.6
Profit attributable to owners of the Company 2,119.7 1,237.3 501.0 (134.3) 3,723.7
Earnings per share (sen) – basic 37.41 21.82 8.83 (2.37) 65.62
Dividend per share (sen) – 30.3^ – 23.0* 53.3
^ interim dividend
* final dividend
#
inclusive a special dividend of 50.0 sens per share
PERFORMANCE REVIEW
Six-Year Group
Financial Summary
GROUP
31.08.2015 31.08.2016 31.08.2017 31.12.2017* 31.12.2018 31.12.2019

YEAR/PERIOD ENDED (Restated)
OPERATING RESULTS (RM Million) 1

Revenue 43,286.8 44,531.5 47,416.9 15,692.2 50,392.5 50,939.7
Operating profit 8,627.6 9,072.0 9,364.0 3,014.0 6,875.6 8,206.8
Profit before taxation and zakat 7,133.7 8,066.8 8,281.8 2,843.5 5,046.6 5,477.7
Profit attributable to owners of the Company 6,118.4 7,367.6 6,904.0 2,622.3 3,723.7 4,529.2
KEY BALANCE SHEET DATA (RM Million) 2

Property, plant and equipment 90,300.3 96,512.7 103,083.7 104,807.6 111,445.5 109,966.0
Total assets 117,135.0 132,902.2 142,012.4 144,250.0 153,695.0 178,847.2
Total borrowings 24,698.9 34,306.7 38,846.5 41,443.7 47,832.4 45,411.7
Total liabilities 69,668.1 80,302.5 84,427.6 86,261.0 94,643.1 119,565.1
Share capital 5,643.6 11,025.8 11,124.9 11,199.6 11,446.1 11,446.1
Shareholders’ equity 47,208.0 52,599.7 57,584.8 57,989.0 59,051.9 59,282.1
SHARE INFORMATION
Per share (sen)
Basic earnings 108.41 130.55 122.00 46.32 65.62 79.64
Diluted earnings 108.41 130.16 121.52 46.21 65.39 79.64
Gross dividend 29.00 32.00 61.00 21.41 53.27 100.00
Net assets per share attributable to owners
of the Company 836.5 928.3 1,009.2 1,007.2 1,017.0 1,019.6
Share price as at reporting date (RM) 11.18 14.74 14.28 15.26 13.60 13.26
FINANCIAL RATIOS
Return on assets – ROA (%) 6.6 6.4 5.4 5.3 3.2 2.8
Return on shareholders’ equity – ROE (%) 16.3 16.1 13.3 13.2 8.3 8.5
Gearing (%) 34.2 39.5 40.3 41.6 44.8 43.4
EBITDA margin (%) 32.2 33.2 32.6 32.3 26.5 36.1
Effective weighted average cost of funds (%) 4.8 5.1 4.7 5.0 5.0 5.1
Interest coverage (%) 14.7 14.2 10.6 9.5 7.9 5.4
Currency mix (RM: Foreign) 78:22 83:17 77:23 79:21 74:26 76:24
Debt-equity (net of cash) ratio 3 0.33 0.33 0.37 0.44 0.50 0.53
1
Amounts for period ending 31 December FY2017 have been restated for the Amendments to MFRS15 which was adopted in FY2018
2
Balances at 31 December 2017 have been restated for the Amendments to MFRS15 which was early adopted in FY2018
3
Cash includes financial assets at fair value through profit or loss (FVTPL)
PG. 065
Six-Year Group
Growth Summary
REVENUE NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS’ EQUITY
(RM MILLION) OWNERS OF THE COMPANY (RM MILLION)
(RM MILLION)
59,282
57,585 57,989 59,052
7,368
6,904 52,600
50,393 50,940
47,417 47,208
6,118
43,287 44,532
4,529
3,724
2,622
15,692
M A N AG E M E N T
FY2015 FY2016 FY2017 FY2017* FY2018 FY2019 FY2015 FY2016 FY2017 FY2017* FY2018 FY2019 FY2015 FY2016 FY2017 FY2017* FY2018 FY2019
(Restated) (Restated) (Restated)
TOTAL ASSETS TOTAL BORROWINGS RETURN ON ASSETS – ROA

(RM MILLION) (RM MILLION) (%)
47,832
178,847 45,412
41,444 6.6
38,847 6.4
153,695
142,012 144,250 34,307
132,902 5.4 5.3
117,135
24,699
3.2
2.8
GEARING INTEREST COVERAGE BASIC EPS

(%) (%) (SEN)
14.7
14.2
44.8 43.4 130.6
41.6 122.0
39.5 40.3
10.6 108.4
34.2
9.5
7.9 79.6
65.6
5.4
46.3
* Financial Period Ended 31 December 2017.

PERFORMANCE REVIEW
Simplified Group Statement

of Financial Position
TOTAL ASSETS
31.3%
61.4%
31.12.2019
16.6%
3.5%
5.6% 72.5%
2.7%
31.12.2018
1.1%
4.4%
0.9%
Property Plant and Equipment Trade and Other Receivables Other Assets
Inventories Deposits, Bank and Cash Balances
PG. 067
TOTAL LIABILITIES
& EQUITIES
5.2%
0.04%
18.8%
3.5%
M A N AG EM EN T
25.4%
2.1% 31.12.2019
5.2%
0.1%
2.1%
6.4%
5.2%
4.4% 3.7%
31.12.2018
7.5%
7.7% 31.1%
Trade and Other Payables Total Borrowings Contract Liabilites

Current Taxation Employee Benefits Other Current and Non Current Liabilities
Consumer Deposits Deferred Taxation
PERFORMANCE REVIEW
Statement of
Value Added
31.12.2019 31.12.2018
VALUE ADDED (RM Million)

Revenue 50,939.7 50,392.5
Operating expenses excluding staff costs and depreciation (29,624.9) (33,677.6)
Net loss on impairment of financial instruments (302.4) (487.3)
Operating income 1,131.0 825.1
Finance income 525.1 423.8
Finance cost (3,382.7) (1,688.5)
Fair value of financial instruments (38.0) 36.7
Foreign exchange gain/(loss) 113.9 (418.3)
Share of results of associates and Joint ventures 52.6 (182.7)
Value added available for distribution 19,414.3 15,223.7
DISTRIBUTION (RM Million)

To employees:
Employment cost 3,747.7 3,685.8
To the Government:
Taxation and zakat 1,032.7 1,301.6
To shareholders:
Dividends 3,014.1 2,931.9
Non-controlling interest (84.2) 21.3
To reinvest to the Group:
Depreciation 10,188.9 6,491.3
Retained profit 1,515.1 791.8
Total distributed 19,414.3 15,223.7

PG. 069
Distribution of
Value Added
19.3%
Employment Cost
60.3%
Depreciation and
Retained Profit 2019 5.3%
Taxation and Zakat
M A N AG EM EN T
15.1%
Dividends and
Non-Controlling Interest
24.2%
Employment Cost
47.8%
Depreciation and
Retained Profit 2018
8.6%
Taxation and Zakat
19.4%
Dividends and
Non-Controlling Interest
PERFORMANCE REVIEW
Core
Revenue
FINANCIAL YEAR ENDED 31 DECEMBER 2019
1.5% 4.2%
0.2% Others* SESB
TNBI (UK WIND) 0.9%

0.2% LPL
TNBI (UK WIND)
1.3%
1.0% Others*
LPL
4.6%
SESB 93.4%
TNB
2019 2018
92.7%
TNB
RM Million TNB SESB LPL TNBI (UK WIND) Others* Total
2019 47,242.3 2,321.3 516.8 103.3 756.0 50,939.7

2018 47,063.3 2,148.4 459.5 79.6 641.7 50,392.5
* Others include Goods & Services, Construction Contracts
GROUP SALES OF ELECTRICITY NUMBER OF CUSTOMERS^

By Sector By Sector
4.6%** 3.0%***
0.3%
0.9%****
19.5% 35.7% 23.6% 38.6% 17.0%
RM49,912.2 123,252.0 RM9.9

Million GWh Million
81.8%
40.2% 34.8%
Industrial Commercial Domestic Others
** Others include Agriculture, Mining, Public Lighting, EGAT, LPL, TNBI (UK WIND), Net Imbalance Cost Pass-Through (ICPT)
and other regulatory adjustment, SESB Tariff Support Subsidy
*** Others include Agriculture, Mining, Public Lighting, EGAT, LPL, TNBI (UK WIND)
* *** Others include Mining, Public Lighting, Agriculture
^ Number of Customers represents TNB and SESB only
PG. 071
Financial
Calendar
ANNOUNCEMENTS OF CONSOLIDATED RESULTS
28 May 2019 27 November 2019

Unaudited consolidated results for the first (1 st) quarter Unaudited consolidated results for the third (3rd) quarter
ended 31 March 2019 ended 30 September 2019
30 August 2019 28 February 2020

Unaudited consolidated results for the second (2nd) quarter Unaudited consolidated results for the fourth (4th) quarter
ended 30 June 2019 ended 31 December 2019
DIVIDENDS
M A N AG EM EN T
Interim Single-Tier Dividend of 30.0 sen per ordinary share Final and Special Single-Tier Dividends of 20.0 sen and
for the Financial Year ended 31 December 2019 50.0 sen per ordinary share respectively for the Financial
Year ended 31 December 2019
30 September 2019 31 March 2020

Entitlement Date Entitlement Date
11 October 2019 16 April 2020

Payment Date Payment Date
ANNUAL GENERAL MEETINGS
12 April 2019 10 April 2020

Notice of 29 th Annual General Meeting and Issuance of Notice of 30 th Annual General Meeting and Issuance of
Integrated Annual Report and Audited Financial Statements Integrated Annual Report and Audited Financial Statements
for the Financial Year ended 31 December 2018 for the Financial Year ended 31 December 2019
14 May 2019 30 June 2020

29th Annual General Meeting 30th Annual General Meeting
COURT CONVENED MEETING
13 January 2020 11 February 2020

Notice of Court Convened Meeting and Issuance of Court Convened Meeting
Explanatory Statement to Shareholders pursuant to Section
369 of the Companies Act 2016 in relation to the Proposed
Internal Reorganisation by way of a Members’ Scheme of
Arrangement under Section 366 of the Companies Act 2016
PERFORMANCE REVIEW
Investor
Relations
WE STRIVE TO MAINTAIN A TRANSPARENT AND STURDY ACTIVE ENGAGEMENTS WITH THE INVESTMENT
RELATIONSHIP WITH THE INVESTMENT COMMUNITY COMMUNITY
In the context of continuous improvement in our disclosure, During the year, our Investor Relations team and the Senior
transparency and corporate governance, the Board and the Management have actively engaged the investment community
Senior Management aim to provide the investment community where we hosted as well as joined one-on-one and group
with transparent, clear and complete picture of the Group’s meetings with our shareholders, analysts and potential investors.
performance and prospect. These include our active participation in investor conferences
and non-deal roadshows, both locally and abroad, to ensure
We have a dedicated investor relations team and multiple that we are able to reach out and engage to as many investors
effective communication channels where we are fully committed as possible. Details of our engagements are as below:
in maintaining high standards in the distribution of relevant
and material information on the development of the Group to
Key Events FY2019 FY2018 FY2017
our investment community such as on business strategies,
financial performance and current initiatives taken in achieving
Number of Analyst Briefing 4 5 4
Reimagining TNB. We believe by consciously and proactively
(Annual/Quarterly Results
engaging our investment community, this will enhance our
Announcement and Special
shareholders’ understanding on the Group’s current and way-
Briefing)
forward plans.
Number of Investor 8 6 7
Our list of communication channels are as follows: Conferences & Non-deal
Roadshows (NDR)
• Quarterly and Full Year Financial Results Announcements
Number of engagements 615 461 454
• Engagement session with the investment community through (analysts/fund managers) via
one-on-one/group meetings, investor conferences and non- in-house/external meetings,
deal roadshows investor conferences and
• IR Corporate Day NDR
• Interactive sessions with shareholders at the Annual General
Meeting IR Calendar of Events for FY2019
• Site Visits to TNB’s power plants
4 January 2019
• IR section in TNB’s website > CIMB 10’ Malaysia Corporate Day (Kuala Lumpur, Malaysia)
• Bursa filings & Press Releases
• Annual Integrated & Sustainability reports 18 January 2019
> CLSA Renewable Day (Kuala Lumpur, Malaysia)
Our investor relations’ section in TNB’s website at www.tnb.com.my
is the key platform for our stakeholders, both local and foreign, 11 – 15 March 2019
to secure the latest as well as historical corporate financial > Nomura NDR (New York, Boston, San Francisco & Los Angeles,
and other investor-related information of TNB. This information USA)
will aid them in making sound investment decisions.
19 March 2019
Furthermore, the Investor Relations team updates the Board > Maybank Invest Malaysia (Kuala Lumpur, Malaysia)
and the Senior Management on our shareholdings, investor
relations activities, consensus from analysts and investment 24 – 25 June 2019
community, as well as share price performance on a regular > CIMB NDR (Singapore)
basis to ensure that the Management is constantly up-to-date
with the market condition. This information will aid them in 2 – 5 July 2019
creating long-term value for our shareholders. > Maybank NDR (London & Edinburgh, UK)
18 July 2019
> TNB Sepang Solar Site Visit (Selangor, Malaysia)
4 September 2019
> Citi’s Malaysia Investor Symposium 2019 (Kuala Lumpur,
Malaysia)
PG. 073
INVESTMENT COMMUNITY’S FEEDBACK As a token of appreciation to our loyal shareholders, in conjunction

with our 70th anniversary, TNB Board of Directors has also
During our various engagement sessions with the investment approved a special dividend of 50.0 sen per share, bringing the
community, the key topics of interest amongst others are as total dividend per share to RM1.00, amounting to RM5.69 billion.
follows: This marks TNB’s highest dividend payout to date.
• MESI 2.0 reform
• Proposed Internal Reorganisation
ANALYST COVERAGE
• Group’s business strategy and performance, both domestic
and international We maintain strong links with our 24 sell-side research analysts
• Updates on Incentive Based Regulation to ensure that all TNB related information which flows to the
• Group Financial results market are accurate and consistent with the Group’s performance
• New business ventures such as broadband and rooftop solar and latest developments.
PV
• Sustainability matters
Affin Hwang AllianceDBS AmInvestment
Investment Bank Research Bank
We appreciate the views and feedback from our shareholders
and investors during these sessions and any key concerns are Bank of America BIMB Securities CGS-CIMB
M A N AG E M E N T
regularly reported to the Board and the Senior Management (BofA) Research Securities
for their deliberation and actions.
Citi Research CLSA Credit Suisse
BUILDING LONG-TERM SHAREHOLDER VALUE

Hong Leong HSBC Global
J.P. Morgan
We are committed in building long-term value for our Investment Bank Research
shareholders and we have been consistently rewarding them
Kenanga Macquarie
through the declaration of interim and final dividend in each KAF Equities
Investment Bank Capital Securities
financial year.
Maybank MIDF Amanah Morgan Stanley
In 2019, TNB Board of Directors has approved a final single Investment Bank Investment Bank Research
tier dividend of 20.0 sen per share, raising the single tier
Public Investment
dividend total to 50.0 sen per share. This translates to a dividend Nomura RHB
Bank
payout ratio of 56.0% from the Group’s Adjusted PATAMI,
effectively hitting the higher tier of the company’s 30% to 60% UBS Global UOB KayHian
TA Securities
dividend policy consistently for the last three (3) financial years. Research Securities
SHAREHOLDER INFORMATION
As at 2 March 2020, Khazanah Nasional Berhad remained as our largest shareholder, with 27.3% of shareholding. Other Government
related agencies cumulatively holds around 41.3% with Permodalan Nasional Berhad at 18.1%, Employees Provident Fund at 16.1%
while others at 7.1%. The balance of 31.4% are held by Other Local Corporations, Malaysian Retail and Foreign Shareholders.
Based on the geographical spread of our foreign shareholding, the largest shareholding base is North America with 43.3%, followed
by our shareholders from Asia (excluding Malaysia) and Europe, which accounted for 30.2% and 26.3% of the shares respectively.
17.6%
27.3% Total Govt.

Agencies 68.6%
Pacific Africa Foreign
0.1% 0.1%
13.8% Ownership by Khazanah Nasional Berhad
Geography
Asia Permodalan Nasional Berhad
Europe 30.2%
26.3% 7.1% 18.1% Employees Provident Fund Board
16.1% Other Government Agencies

Local Corporation & Retail
North America Foreign Shareholding

43.3%
PERFORMANCE REVIEW
Investor Relations
TNB SHARE PRICE, FBM KLCI INDEX AND VOLUME TRADED IN FY2019
Share Price (RM) KLCI Index
TNB KLCI Volume
15.0 1,750
28 Feb’19
AB 4QFY’18 30 Aug’19
14.5 Closing Share AB 2QFY’19
Price: RM13.42 Closing Share 1,700
Price: RM13.96
14.0
1,650
13.5
13.0 1,600
10 Sep’19
Announcement made to
12.5 Bursa Malaysia on Interim 27 Nov’19
Dividend dates for FY2019 AB 3QFY’19 1,550
13 Mar’19 Closing Share Price: RM14.00 Closing Share
12.0 Announcement made to Price: RM13.56
Bursa Malaysia on Final
Dividend dates for FY2019 1,500
Closing Share Price: RM14.00 28 May’19
11.5 AB 1QFY’19
Closing Share Price: RM11.66
11.0 1,450
Volume (million)
25.0
20.0
15.0
10.0
5.0
0
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec -19
LEADERSHIP
76
Corporate Information
77
Organisational Structure
78
Board of Directors
80
Our Board of Directors
82
Our Senior Management
Corporate
Information
BOARD OF DIRECTORS
TAN SRI AHMAD BADRI NORAINI BINTI CHE DAN ONG AI LIN
MOHD ZAHIR Senior Independent Non-Executive Director Independent Non-Executive Director
Chairman
Non-Independent Non-Executive Director GEE SIEW YOONG DATO’ ROSLINA BINTI ZAINAL
(Redesignated as Chairman Independent Non-Executive Director Non-Independent Non-Executive Director
w.e.f. 12 March 2020)
JUNIWATI RAHMAT HUSSIN DATO’ CHEOK LAY LENG

DATUK SERI AMIR HAMZAH Independent Non-Executive Director Independent Non-Executive Director
BIN AZIZAN (Appointed w.e.f. 2 March 2020)
GOPALA KRISHNAN K.SUNDARAM
Non-Independent Executive Director TAN SRI LEO MOGGIE
Independent Non-Executive Director
Non-Independent Non-Executive Director
AMRAN HAFIZ BIN AFFIFUDIN (Cessation of Office as Chairman
w.e.f. 12 March 2020)
SENIOR INDEPENDENT EXTERNAL AUDITORS INVESTOR RELATIONS

NON-EXECUTIVE DIRECTOR Messrs PricewaterhouseCoopers PLT CoE Investor Relations
Noraini binti Che Dan (LLP0014401-LCA & AF 1146) Group Finance Division
Email : [email protected] Chartered Accountants Tenaga Nasional Berhad
Level 10, 1 Sentral 4th Floor, TNB Headquarters
COMPANY SECRETARY Jalan Rakyat No. 129, Jalan Bangsar
Norazni binti Mohd Isa Kuala Lumpur Sentral 59200 Kuala Lumpur
(LS 0009635) P.O. Box 10192 Malaysia
(SSM Practicing Certificate No. 201908000492) 50706 Kuala Lumpur
Telephone : +603-2296 5566
Malaysia
Facsimile : +603-2108 2034
SHARE REGISTRAR
Telephone : +603-2173 1188 Email : [email protected]
Boardroom Share Registrars Sdn. Bhd.
Facsimile : +603-2173 1288
199601006647 (378993-D)
STOCK EXCHANGE LISTING
11th Floor, Menara Symphony
REGISTERED OFFICE Main Market of Bursa Malaysia
No. 5, Jalan Prof. Khoo Kay Kim
Tenaga Nasional Berhad Securities Berhad
Seksyen 13
199001009294 (200866-W) (Listed since 28 May 1992)
46200 Petaling Jaya
Pejabat Setiausaha Syarikat, Tingkat 2
Selangor Darul Ehsan
Ibu Pejabat Tenaga Nasional Berhad CREDIT RATINGS
Malaysia
No. 129, Jalan Bangsar
Local Rating International Rating
Telephone : +603-7890 4700 59200 Kuala Lumpur Agency Agency
Facsimile : +603-7890 4670 Malaysia
Issuer Rating Issuer Rating
Telephone :
+603-2296 5566
DIVIDEND SERVICE PROVIDER RAM Rating AAA Standard & BBB+
Facsimile :
+603-2283 3686
Bursa Malaysia Depository Sdn. Bhd. Services Stable Poor’s Ratings Stable
Website :
www.tnb.com.my Berhad Services (S&P)
198701006854 (165570-W)
TNB Careline :
15454 (RAM)
10th Floor, Exchange Square
(for power outage or
Bukit Kewangan Malaysian AAAIS/ Moody’s A3
TNB street light Rating AAA Investors Stable
50200 Kuala Lumpur
malfunction) Corporation Stable Services
Malaysia Berhad (Moody’s)
: 1-300-88-5454
(MARC)
Telephone : +603-2034 7751 (for billing and
Facsimile : +603-2026 3712 account enquiries)
AMERICAN DEPOSITORY RECEIPTS
Online Whistle : wbis.tnb.com.my
PROGRAMME (ADR)
PRINCIPAL BANKER Blowing
ADR Level 1
Malayan Banking Berhad Information
196001000142 (3813-K) System
AGM HELP DESK
Toll Free : 1-800-888-862
Telephone : +603-2107 4515/4516/4517
(Share Administration Section
Company Secretary’s Office
Tenaga Nasional Berhad)
PG. 077
Organisational
Structure
BOARD OF DIRECTORS
CHIEF
INTERNAL
AUDITOR COMPANY
SECRETARY
CHIEF RISK BOARD
OFFICER COMMITTEES
CHIEF INTEGRITY
DEVELOPMENT
OFFICER
Chief Financial Officer
PRESIDENT/ (Group Finance Division)
CHIEF EXECUTIVE Chief Strategy & Regulatory Officer
OFFICER (Strategy & Regulatory Division)
Chief Ventures Officer

Chief Generation Officer
(Energy Ventures Division)
(Generation Division)
Chief People Officer
LE ADERSHIP
(Group Human Resource Division)
Chief Grid Officer
(Grid Division) Chief Corporate Officer
(Group Corporate Communications
Division)
CORE NON-
Chief Distribution Network Officer Chief Procurement Officer
BUSINESS CORE
(Distribution Network Division)
BUSINESS (Procurement & Supply Chain
Division)
Chief Information Officer

Chief Retail Officer
(Information & Communication
(Retail Division)
Technology Division)
Chief International Officer

(International Asset Group)
Chief Global Business Solutions

(TNB Global Business Solutions
Division)
HEAD HEAD
(Real Estate Ventures) (Legal Services) Single Buyer
HEAD HEAD
(Fleet Management) (Health, Safety Grid System Operator
& Environment)
HEAD Ring-fenced
(Security Services)
Board
of Directors
DATO’ CHEOK LAY LENG
DATO’ ROSLINA
Independent
Non-Executive Director BINTI ZAINAL
(Appointed w.e.f. 2 March 2020) Non-Independent
Non-Executive Director
DATUK SERI AMIR
HAMZAH BIN AZIZAN
NORAZNI BINTI President/Chief
MOHD ISA Executive Officer,
AMRAN HAFIZ GEE SIEW YOONG Non-Independent
Company Secretary
BIN AFFIFUDIN Independent Executive Director
Non-Executive Director
PG. 079
TAN SRI AHMAD BADRI

MOHD ZAHIR JUNIWATI RAHMAT
Chairman, HUSSIN
Non-Independent Independent
Non-Executive Director Non-Executive Director
(Redesignated as Chairman GOPALA KRISHNAN
w.e.f. 12 March 2020) K.SUNDARAM
Independent
TAN SRI LEO MOGGIE NORAINI Non-Executive Director
Non-Independent BINTI CHE DAN
Non-Executive Director Senior Independent ONG AI LIN
(Cessation of Office as Chairman Non-Executive Director Independent
w.e.f. 12 March 2020) Non-Executive Director
LE ADERSHIP
Our Board
of Directors
TAN SRI AHMAD BADRI TAN SRI LEO MOGGIE DATUK SERI AMIR HAMZAH
MOHD ZAHIR Non-Independent BIN AZIZAN
Chairman, Non-Executive Director* President/Chief Executive Officer,
Non-Independent Non-Executive Director* (Cessation of Office as Chairman w.e.f. 12 March 2020) Non-Independent Executive Director*
(Redesignated as Chairman w.e.f. 12 March 2020) * Appointed Director by MoF Inc., the Special Appointed Director by MoF Inc., the Special
* Appointed Director by the Minister of Finance Shareholder of TNB Shareholder of TNB
(Incorporated) (MoF Inc.), the Special
Shareholder of TNB
F F
AMRAN HAFIZ BIN AFFIFUDIN NORAINI BINTI CHE DAN GEE SIEW YOONG
Non-Independent Non-Executive Director* Senior Independent Non-Executive Independent Non-Executive Director
ppointed Director by Khazanah Nasional
A Director
Berhad, the Major Shareholder of TNB
A F NR R L R T
F NR L I
Board at a Glance
COMPOSITION ETHNICITY AGE GENDER
The current Board’s age distribution falls Female Directors currently represent
within the respective age groups as 50% of Board Composition in line
Senior Independent with government aspiration which
follows:
Non-Executive also consistent with Practice 4.5 of
Director the Malaysian Code on Corporate
3 Chinese
1 age 40-49 1 Governance 2017
Non-Independent 1 1
3 Non- 1 3
Executive Director Indian age 70-79
Independent age 50-59
Non-Executive
5 5
Directors
(including the
Independent Chairman)
5
Non-Executive 5
age 60-69 MALE FEMALE
Directors 6 Malay
PG. 081
JUNIWATI RAHMAT HUSSIN GOPALA KRISHNAN ONG AI LIN

Independent Non-Executive Director K.SUNDARAM Independent Non-Executive Director
NR L T R I A R A R I
I
LE ADERSHIP
DATO’ ROSLINA BINTI DATO’ CHEOK LAY LENG
ZAINAL Independent Non-Executive Director
Non-Independent Non-Executive Director (Appointed w.e.f. 2 March 2020)
A F T
A COMMITTED BOARD
Chairman of Board Nomination
Respective NR and Remuneration
SKILLS AND EXPERIENCE MATRIX Committee Committee
Board Audit Board Risk

A Committee R Committee
(No. of Directors)
5
Board Finance Board Long Term
F and Investment L Incentive Plan
Committee Committee
3 Board Tender Board Integrity
T Committee
I Committee
1 1
For complete details of the Board of
Finance & Legal Engineering Others Directors’ Profile, please refer to pages 2 to
Accounting
12 in Corporate Governance & Financial
Statements 2019.
Our Senior
Management
DATUK SERI AMIR HAMZAH NAZMI BIN OTHMAN DATUK FAZLUR RAHMAN
BIN AZIZAN Chief Financial Officer BIN ZAINUDDIN
President/Chief Executive Officer Chief Strategy & Regulatory Officer
GEMC GPC GMTC ComPEC BIC IBRC TMSC GEMC GPC GMTC ComPEC BIC IBRC TMSC GEMC GPC GMTC ComPEC BIC IBRC TMSC
CRSC SESB EC CRSC SESB EC CRSC SESB EC
Ir. ROSLAN BIN ABD RAHMAN DATUK Ir. HUSAINI BIN HUSIN DATUK Ir. BAHARIN BIN DIN
Chief Generation Officer Chief Grid Officer Chief Distribution Network Officer
GEMC GPC GMTC ComPEC BIC TMSC CRSC GEMC GPC GMTC BIC IBRC TMSC CRSC GEMC GPC GMTC BIC IBRC TMSC CRSC
Ir. MEGAT JALALUDDIN BIN DATO’ NOR AZMAN BIN MUFTI DATO’ MUHAMMAD RAZIF BIN
MEGAT HASSAN Chief Ventures Officer ABDUL RAHMAN
Chief Retail Officer Chief People Officer
GEMC GPC BIC IBRC TMSC CRSC GEMC GPC GMTC TMSC CRSC GEMC GPC IBRC TMSC CRSC
PG. 083
DATUK WIRA ROSLAN BIN AMIR MAHMOD BIN ABDULLAH FAZIL BIN IBRAHIM
AB RAHMAN Chief Procurement Officer Chief Information Officer
Chief Corporate Officer
GEMC GPC GMTC TMSC CRSC GEMC GPC ComPEC BIC CRSC GEMC GPC GMTC BIC CRSC
LE ADERSHIP
MOHD SHAHAZWAN MOHAMAD ARIFF BIN ZAINOL NORAZNI BINTI MOHD ISA
BIN MOHD HARRIS Chief Global Business Solutions Company Secretary
Chief International Officer
GEMC GPC BIC CRSC GEMC GPC GMTC IBRC CRSC GEMC GPC CRSC
MEMBERSHIP KEY
GEMC GROUP EXECUTIVE MANAGEMENT COMMITTEE For complete details of the Profile of Senior
Management, please refer to pages 14 to
GPC GROUP PEOPLE COMMITTEE
21 in Corporate Governance & Financial
GMTC GROUP MANAGEMENT TENDER COMMITTEE Statements 2019
ComPEC COMMODITY PROCUREMENT EXECUTIVE COMMITTEE
BIC BUSINESS INNOVATION COUNCIL
IBRC INCENTIVE BASED REGULATION COUNCIL
TMSC TNB MESI 2.0 STEERING COMMITTEE
CRSC CORPORATE REORGANISATION STEERING COMMITTEE
SESB EC SABAH ELECTRICITY SDN. BHD. (SESB) EXECUTIVE COMMITTEE

GOVERNANCE
86
Protecting Value Through Effective Governance
Protecting Value
Through Effective Governance
ABOUT OUR INTEGRATED REPORT (IR)
We believe that Integrated Reporting

requires fundamentally a different way
of reporting on WHAT makes an
01
organisation successful, HOW it creates Our Governance Policy
value over time and WHY it relies on a
much broader set of capitals (or resources) Our Board is committed to the highest standards and levels of governance,
other than just financial capital. IR is ethics and integrity within the Group. The Board recognises that in doing
essentially therefore, a mechanism by so, the Company will maintain the trust of its many stakeholders. To this
which we present the full picture of our end, we work responsibly, with honesty and integrity in order to deliver
Company’s use of all relevant capitals (or value for all stakeholders. We undertake this commitment with unabated
resources). vigour to ensure our operations are carried out safely, our people are
empowered to achieve their goals and there is continuous close engagement
This IR is our primary report to our investors
with stakeholders.
and all other stakeholders.
The Board believes that excellence in corporate governance is vital to
Through our business activities, we take into
achieve the highest standards of professionalism and business ethics
account considerations of our stakeholders as
across the Company’s spectrum of business activities.
we pursue with our strategic goals and to have
positive impact on society and deliver sustainable
In TNB, we embrace world class business practices and robust institutional
shareholder value.
frameworks and constantly review, enhance and strengthen these practices
to ensure we act in the best interest of our stakeholders.
Leading the way for value creation through
good governance TNB, the largest electricity utility in Malaysia, with its core business of
The Board and Management strive to chart our providing electricity utility in the country is a key contributor to nation
business direction and create maximum shared building. Our activities represent the entire electricity production and
value across all spheres, led by our Vision ‘to supply value chain.
be among the leading corporations in energy
and related businesses globally’ as we drive TNB adopts world class governance practices and globally recognised
strategic responses and heed market needs. standards for sustainable practices to ensure sustained strength of our
business segments and services.
We anchor on our shared values of Customer
first, Business excellence, Integrity and Caring We believe that our sustainability agenda through efforts such as renewable
all of which shape our business ethics and energy and other environmental as well as social initiatives will not only
operations and form the backbone of our take TNB into the future, but will also allow us to continue to grow our
business conduct. In the course of doing so, we business in the long-term. In doing so, we are resilient and at the same
do not waver from our goal of continued focus time, flexible in adopting new regulatory changes, responding and adapting
of creating value to our stakeholders. to the challenging and competitive regional and global business
environment.
We respond to risks and opportunities, ensure
relevance and sustainability of the business In TNB, good governance is not a box – ticking exercise. It entails far more
model and acknowledge the needs of all than legislative, regulatory compliance and principles of best practices.
stakeholders. This strategy enables TNB to remain
steadfast in managing our operations supported We believe that good governance with value–driven objectives as its
by good governance and simultaneously, meeting mainstay, contributes to raising values through enhanced accountability,
and delivering financial targets. strong risk and performance management, transparency and effective
leadership.
TNB is committed to the Good corporate governance creates and sustains shareholder value; ensures
that our behaviour is ethical and promotes positive outcomes for all
highest standards of stakeholders.
governance, ethics and
integrity
PG. 087
02
Values-driven objectives of our Board: Pillar of sustainable value-creation
Values-driven objectives of our Board are rooted in corporate governance principles and
best practices espoused in the Malaysian Code on Corporate Governance 2017 (MCCG),
reporting disclosures and increased compliance requirements (Main Market Listing
Requirements of Bursa Malaysia Securities Berhad (MMLR), Companies Act 2016 and other
applicable regulations).
The Board’s governance oversight is guided by its commitment to its responsibilities and
governance objectives. The governance objectives provide a mechanism to measure and
evaluate performance in applying the MCCG principles and outcomes.
• Effective ethical leadership • Governance of functional areas of the Group’s

Strong leadership is critical to value creation. business
The Board sets the tone, provides leadership The Board provides leadership and vision to
and vision and leads the Group ethically, the Group, ensuring sustainable growth and
effectively and responsibly. delivery of the Group’s business for the benefit
of all stakeholders. In the governance of
The Board has the power to shape the Group’s functional areas, good practices prevail.
direction and culture through its corporate
governance philosophy and ethical practices.
In this way the Board ensures that the Group
plays a significant role in society as a major
employer, tax payer, skills provider and • Governing Structures and Delegation
facilitator of the country’s economic growth. The Board provides guidance and oversight
to the Group on the management of risk &
The Board does not place itself in a comfortable internal control and nomination & remuneration
G OV E R N A N C E
setting and does not remain static. Challenge governance through its Board Committees.
and teamwork are essential features of the
Board. In decision-making, Board members
act with independence, competence, diligence,
inclusivity, insight and courage.
• Sustainable Growth and Stakeholders
In providing leadership and vision to the
Group, the Board ensures sustainable growth
• Strategy, performance and reporting and delivery of the Group’s purpose and
The Board takes accountability for the Group’s objectives for the benefit of all stakeholders.
performance. The Board sets the Group’s
strategic aims and ensures that the necessary The Board will ensure a stakeholder inclusive
resources are in place to meet its objectives approach.
and review Management’s performance.
The Board supports the Group in its

implementation of the Group’s value-driven
strategic objectives and achieving them. The
required disclosures in respect of these are
contained in this IR and other reports available
at the Company’s website at www.tnb.com.my.
03
Collective responsibilities of the Board
04
The Board bears legal responsibility to govern the organisation. Engaging with the Company’s
Board members have a collective responsibility and individuals business on strategic matters
do not hold separate authority. Our Board is collectively
responsible for the long term success of TNB and delivering
Although the Board maintains its
sustainable value through oversight of the management of
independence, it is important that
the Group’s business.
it engages with Management on
multiple levels to understand fully
The Board is committed to continuous improvement of our
the Company’s business:
corporate governance principles, policies and practices and
does so through awareness of evolving regulation and best • Board members serve on the
practices. various Board committees and
engage in strategy sessions and
The Board strives to ensure that good governance is practiced other specific matters such as
throughout TNB as a fundamental part of discharging its financial results.
primary governing roles and responsibilities to protect and
• Board debates and approves the
enhance stakeholders’ value and raise the performance of the
Company’s business plan and
Company.
budget. In 2019, the Board dealt
with key focus areas which were
The main functions of the Board include the following:
discussed during the 2019 Board
• formulates, reviews, approves and monitors strategic business Breakout Session, among others
plans, goals and policies are, Malaysia Electricity Supply
• identifies and manages principal risks affecting the Company Industry (MESI) 2.0: Developing
• reviews the adequacy and integrity of the Company’s the Future Electricity Sector
internal control system Blueprint and TNB Participation
• ensures appropriate policies are in place, adopted, executed in Telco and National Fiberisation
effectively and regularly reviewed and Connectivity Plan.
• oversees and evaluates the conduct and performance of
the Management and the Group’s business • Board conducts on-site visits to
• succession planning with regards to Top Management operations and business units and
positions and their remuneration meetings with Management may
• ensures and provides accountability to its members or be requested from time to time.
shareholders and to some extent, towards a wider range
of stakeholders
In doing so, the Board is committed to the following

responsibilities:
• delegates management to a competent senior management
team to implement, execute the Group’s strategies and
policies and ensures the robustness of the process
• ensures that the Company maintains a sound system of
internal control and robust risk management function and
practices to safeguard shareholders’ investment and the
Group’s assets
• safeguards and minimises the impact to the environment
in the course of achieving the Group’s objectives, reflecting
its commitment to economic support for longer term
sustainability with focus on positive impact to the
environment and the community at large
• ensures compliance with appropriate legislation, regulations
and appropriate best practices
• governs disclosures to enable stakeholders to assess
effectively the Group’s performance
PG. 089
05 06
Risk Management Board Independence
Risks arising from a constantly shifting The Board is diverse in demographics, skills and
global Volatility, Uncertainty, Complexity experience.
and Ambiguity (VUCA) market environment
are among the major challenges our The Board comprises 60% of Independent
business faces in progressing with our goal Directors who promote independent judgement
of growing shareholders’ value in a and diverse mind-sets and opinions. All Directors
sustainable manner. must exercise their judgement independently,
irrespective of status. All Directors are assessed
Risk management is fundamental to the annually via the Board Effectiveness Evaluation
Group’s strategy and our electricity utility and Board Independence Assessment. The
business. The pervasiveness of risk in this Directors assessed in 2019 maintained their
industry means that the Board deems risk independent status.
management as an integral part of our
business strategy.
Risk management oversight is carried out

07
by the Board and the Board Risk Committee Board Diversity
(BRC). The BRC is assisted by the Risk
Management Department in discharging The Directors bring with them years of experience
its duties and responsibilities. in managing sustainable business growth and
collectively represent a formidable leadership
The BRC reviews and deliberates Key Risk with diversity of perspectives that support
Indicators reported through a Quarterly effective decision-making.
Risk Dashboard. These indicators provide
early warning or signals of increasing risk In the rapidly transforming and evolving business
exposures to the Group. environment, diversity is important to remain
G OV E R N A N C E
relevant and sustainable. Diversity that embraces
The business environment within which gender, race, ethnicity and skills/experience at
TNB operates, requires us to be vigilant in Board level is a key consideration in our Board
our risk management and to continuously selection process.
ensure effective mitigation are in place.
Female Directors currently represent 50% of the
We have identified six risks that may Board composition in line with the Government’s
prevent the Group from achieving its aspiration and Practice 4.5 of the MCCG.
strategic and long-term objectives, namely,
• Inability to keep pace with changing Diversity at Board level (skills & experience,
customers’ expectations gender, nationality)
• Competency mismatch to drive strategy

• Inability to adapt to changing market Gender
Nationality
environment
100%
• Inability to leverage on available and
50%
new technology Male
• Ineffective engagement and
Malaysian
communication to stakeholders
• Regulatory constraints that can
negatively impact TNB businesses
50%
Female
08 09
Board Skills Board Tenure and Experience
The Board has members with a broad range of A blend of experience and new insight
skills that can help create value in the interests
of all stakeholders.
1
With the appropriate mix of skills and experience
the Board is assured that it is well equipped to
guide and steer TNB’s strategy into the future
and thereby create value.
Executive and
3 Non-Executive
Directors: Age
10%
30%
60 years & above
10% 50 years – 59 years
Skills & 50 years & below

Experience
1
50% 2
Finance & Accounting

Executive and
Engineering Non-Executive
Directors:
Legal Length of
Services
Others 7
Below 1 year
1 – 3 years
Above 3 years
PG. 091
10
Board of Directors
Chairman, Non-Independent Non-Executive Director
TAN SRI AHMAD BADRI MOHD ZAHIR

Chairman: FIC
(Redesignated as Chairman and appointed as Chairman of FIC
w.e.f. 12 March 2020)

AMRAN HAFIZ BIN AFFIFUDIN
Director
Member: FIC, BNRC, BLTIP and BIC
DATO’ ROSLINA BINTI ZAINAL

Director
Member: BAC, FIC and BTC
(Appointed as Director and member of BAC, FIC & BTC w.e.f. 15 March 2019
and 28 March 2019 respectively)
TAN SRI LEO MOGGIE

(Cessation of Office as Chairman w.e.f. 12 March 2020)
NORAINI BINTI CHE DAN GOPALA KRISHNAN K.SUNDARAM

Senior Independent Director Director
G OV E R N A N C E
Chairman: BAC Chairman: BIC
Member: FIC, BNRC, BRC and BLTIP Member: BAC and BRC
GEE SIEW YOONG ONG AI LIN

Director Director
Chairman: BRC Member: BAC, BRC and BIC
Member: BTC
JUNIWATI RAHMAT HUSSIN DATO’ CHEOK LAY LENG

Director Director
Chairman: BNRC and BLTIP (Appointed w.e.f. 2 March 2020)
Member: BTC, BRC and BIC
Non-Independent Executive Director
DATUK SERI AMIR HAMZAH BIN AZIZAN

(Appointed w.e.f. 2 April 2019)
11 12
Ensuring and Protecting Value Our Approach to Compliance
We comply with applicable various

We have adopted the principles and guidelines set out in legislations and regulatory requirements,
ISO 31000:2018, ‘Risk Management – Guidelines’ in the of which are MMLR, MCCG, Companies
design and implementation of the TNB Risk Management Act 2016, Malaysian Financial Reporting
Framework. Standards and International Financial
Reporting Standards.
The framework explicitly brings our focus to the purpose
of risk management, which is for value creation and Appropriate procedures and mechanisms
protection in the achievement of objectives. are in place to ensure full and continuous
adherence to these.
This framework, which is applicable across the Group,
provides a structured and consistent approach to risk We monitor and report on compliance
management for informed decision-making. through the BAC, which is a Board
Committee established by the Board
We have the following in place: to assist the latter in its oversight role.
• clear leadership and commitment through the Our business compliance covers a wide
establishment of the Board Risk Committee (BRC) to range of ethical and regulatory areas,
ensure the Group has in place a sound and robust among others including anti-competition,
enterprise risk management framework. strategic trade, anti-bribery and
• a structured risk assessment process to guide the Group corruption, international sanctions and
to identify, analyse, evaluate and treat risks. data protection.
• an online real-time tool and database of risk information
that is accessible by all employees to enable monitoring, The principles governing our ethical
review and reporting of risks. standards and compliance can be found,
among others, within the TNB Code of
• a risk management policy where all employees are
Ethics, TNB Ethics & Integrity Policy,
accountable and responsible to manage risk and to
TNB Confidentiality Policy, Whistleblowing
continually cultivate a risk culture that is transparent,
Procedure, Corporate Disclosure Policy
collaborative and adaptive.
and the TNB Corporate Integrity
• an independent internal audit function.
Management System Handbook.
• a Group Corporate Governance Framework that monitors
the application of the principles and practices of the
MCCG and other regulatory requirements.
Stakeholders
Trade- Communities
Customers Investors Unions
Government Employees Vendors Non-Governmental

Organisations
PG. 093
15
13 Fair and Responsible Remuneration
Values and Culture The Board strives to ensure that remuneration

is fair and transparent, promoting positive
The Board is committed to a corporate culture outcomes aligned with legitimate
that encompasses and embraces ethical conduct expectations of all stakeholders.
within the Group.
Remuneration of employees is linked to
The Board sets the tone for governance within sustainable value creation objectives in line
the Group. The Board believes that without the with the Group’s strategy. It is based on
right culture to reflect the Group’s moral and distinct performance targets and market
ethical beliefs and standards, employees will benchmarking.
have difficulty embracing the core values and
behaviours which are the embodiment of this
organisation. 16
Driving Innovation
We are cognisant that our culture journey will
continuously evolve in the context of our overall
strategy. As we move forward in an agile, digital, Our Intellectual Capital is borne through the
fast-paced, customer-centric and highly adoption of an innovation led culture which
competitive environment, new mind-sets and encourages innovative thought processes
capabilities will be required to manage and and approaches in meeting our customers’
thrive in this changed corporate landscape. requirements.
To remain relevant and competitive in this

digital age the Board is proactive and places
innovation as one of its governance
responsibilities. The Board acknowledges the
strategic importance of innovation to create
14 sustainable value.
Conflict of Interest 17
G OV E R N A N C E
A Director is prohibited from using his or her Engaging with Investors on
position or confidential or price-sensitive Environment, Social and Governance
information to benefit herself or himself or any (ESG) Matters
related third party, financially or otherwise.
We believe in maintaining the highest

Directors are also required to inform the Board
of conflicts or potential conflicts of interest standards of responsible business practices
that they may have in relation to particular and this is evident in the strong relationships
transaction/business or other directorships. They we have with our stakeholders.
must declare any actual or potential conflict
of interest before hand and shall abstain from We continually engage with stakeholders
the Board’s deliberation. on ESG and strategic matters. The
engagement enables the Board to exercise
A Director may accept other Board appointments constructive influence as and when
provided the appointments do not conflict with
appropriate and to protect their interests.
the Group and/or adversely affect the Director’s
duties.
By continuously engaging with our
A Non-Executive Director should not hold more stakeholders, we are able to keep abreast
than five (5) directorships of listed companies, of evolving social and environmental
as prescribed by the MMLR. expectations.
We use our stakeholders’ insights to fortify

our business strategy with the ultimate aim
of delivering value to society at large.
18
Ethics and Human Rights
An organisation must fundamentally add value for stakeholders by adopting a responsible business philosophy.
At TNB, we believe in doing business responsibly. The Board assumes ultimate responsibility for TNB’s ethics performance
and adherence to human rights principles. This responsibility is delegated to Management which uses various tools to
fulfil its mandate, among others including:
CODE OF ETHICS WHISTLEBLOWING PROCEDURES ETHICS & INTEGRITY POLICY
CORPORATE DISCLOSURE POLICY CORPORATE INTEGRITY MANAGEMENT SYSTEM

HANDBOOK
In our efforts to apply high standards of ethical decision-making, taking stakeholder requirements into consideration
to ensure value creation, we undertook the following actions during the financial year:
TNB has a well-thought-out set of Shared Values made publicly available and communicated to the workforce. First
among the TNB Shared Values is Integrity. The five (5) Principles of Integrity are:
5 PRINCIPLES OF INTEGRITY
PRINCIPLE 1
Adhere to all set rules, regulations and guidelines
PRINCIPLE 2
Perform to our best ability with very high standards
whilst continuously improving the quality of our services
PRINCIPLE 3
Adopt an open and honest attitude in all aspects
PRINCIPLE 4
Deliver products and services to customers as pledged
PRINCIPLE 5
Have pride in contributing towards TNB’s success
The Handbook covers five (5) TNB Corporate Integrity Management System (TCIMS) policies which are Anti Bribery
Policy, Gifts, Hospitality and Related Benefits Policy, Conflicts of Interest Policy, Whistleblowing Policy and Integrity Pact
and Committee Integrity Pledges Policy.
PG. 095
19
Our Board and Board Committees
The Board provides leadership and strategic guidance to safeguard stakeholder value creation within a framework of prudent
and effective controls. This makes it possible for the Group to assess and manage risk to ensure long-term sustainable
development and growth.
The Board is ultimately accountable and responsible for the performance and affairs of TNB and ensures that the Group
adheres to high standards of ethical behaviour.
The Board Committees assist the Board in the discharge of its duties and responsibilities.
Each Board Committee has a formal written Terms of Reference that are effectively delegated in respect of some of the
Board’s responsibilities.
The Board monitors these responsibilities to ensure effective coverage of and control over, the Group’s operations.
TNB Group
Board of Directors:
Board Audit Board Finance and Investment Board Tender

Committee (BAC) Committee (FIC) Committee (BTC)
Chairman: Chairman: Chairman:

• NORAINI BINTI CHE DAN • TAN SRI AHMAD BADRI MOHD ZAHIR • TAN SRI AHMAD BADRI MOHD ZAHIR
(Appointed as Chairman of FIC w.e.f. 12 March (Ceased as Chairman of BTC w.e.f. 12 March
2020) 2020)
• TAN SRI LEO MOGGIE

(Ceased as Chairman of FIC w.e.f. 12 March
2020)
– To oversee the integrity of the financial – Review, monitor and make recommendations – To establish the framework of TNB’s
G OV E R N A N C E
statements in compliance with legal to the Board for approval of the annual Procurement & Supply Chain Policy and
and regulatory requirements and and supplementary budgets, capital budgets Procedures.
applicable accounting standards. and investments of TNB.
– To advise the Board regarding the details
– To assess the effectiveness of the – Review and evaluate, as may be appropriate, and implementation of TNB’s Procurement
Group’s internal control framework information relating to the Company’s & Supply Chain Policy and Procedures
as well as internal and external audit investable assets, its investment policies, framework.
functions. strategies, objectives and activities.
– To assist the Board in regulating the
– The BAC’s TOR is available on the – Monitor and review investments in compliance of Top Management and
Company’s website at subsidiaries and associated companies, and Executive Director with TNB’s Procurement
www.tnb.com.my. to evaluate & consider and make appropriate & Supply Chain Policy and Procedures.
recommendations on proposals for any
new investments/divestments proposed by – To ensure TNB complies with the
the Management. applicable laws, regulations, rules and
guidelines to achieve best business
– To provide input on the valuation of the practices in its procurement of
proposed investments/divestments taking equipments, materials, works and services.
into account compliance with the
Investment Policy, risk management analysis,
findings of the due diligence and written
report from external advisers, as applicable.
19
Our Board and Board Committees (Cont’d)
Board Nomination and Board Risk Board Integrity

Remuneration Committee (BNRC) Committee (BRC) Committee (BIC)
Chairman: Chairman: Chairman:

• JUNIWATI RAHMAT HUSSIN • GEE SIEW YOONG • GOPALA KRISHNAN K.SUNDARAM
– To identify and recommend new nominees – To oversee the establishment and – To manage disciplinary issues and actions
to the Board, Board Committees and implementation of the risk management with regard to employees’ misconduct,
Boards of TNB Group. framework that is embedded into the except for the hearing of appeal of
culture, processes and structures of the executives of grade M15 and above or
– To consider/review the Executive Director Company and is responsive to changes equivalent grade with regard to
and Top Management’s succession in the business environment. disciplinary cases, for which the power
planning. lies with the Board.
– To approve the Risk Management
– To review the Board’s required mix of Policies on behalf of the Board. – To review the disciplinary procedures,
skills, experience and other qualities, whenever applicable, subject to the
including core competencies which Non- – To ensure the principles and Board’s approval.
Executive Directors should bring to the requirements of managing risk are
Board. consistently communicated and
adopted throughout the Company.
– To implement the process formulated by
the Board to assess the effectiveness of
the Board, Board Committees, Self and
Peer.
– To determine and recommend to the

Board the remuneration packages of
Non-Executive Directors/Executive
Directors/Top Management.
– The BNRC’s TOR is available on the Board Long Term Incentive Plan
Company’s website at www.tnb.com.my. Committee (BLTIP)
Chairman:
• JUNIWATI RAHMAT HUSSIN
– To oversee the administration of TNB LTIP and the shares granted

(LTIP Shares) subject to the By-Laws.
– To approve and determine the manner in which the LTIP Shares

are granted and subsequently vested to the selected employees in
accordance with the By-Laws, including inter alia, the determination
of eligibility, grant level, terms of acceptance of offers, terms of
vesting of shares, performance conditions and any other terms and
conditions imposed at the discretion of the BLTIP.
PG. 097
20
Our Group Top Leadership Team
The Group Leadership Team is a diverse and experienced Management team that comprises the following:
DATUK SERI AMIR HAMZAH NAZMI BIN OTHMAN DATUK FAZLUR RAHMAN
BIN AZIZAN Chief Financial Officer BIN ZAINUDDIN
President/Chief Executive Chief Strategy & Regulatory
Officer Officer
Ir. ROSLAN BIN ABD DATUK Ir. HUSAINI DATUK Ir. BAHARIN BIN
RAHMAN BIN HUSIN DIN
Chief Generation Officer Chief Grid Officer Chief Distribution Network
Officer
Ir. MEGAT JALALUDDIN DATO’ NOR AZMAN DATO’ MUHAMMAD RAZIF

BIN MEGAT HASSAN BIN MUFTI BIN ABDUL RAHMAN
G OV E R N A N C E
Chief Retail Officer Chief Ventures Officer Chief People Officer
DATUK WIRA ROSLAN BIN AMIR MAHMOD BIN FAZIL BIN IBRAHIM
AB RAHMAN ABDULLAH Chief Information Officer
Chief Corporate Officer Chief Procurement Officer
MOHD SHAHAZWAN MOHAMAD ARIFF BIN NORAZNI BINTI MOHD ISA

BIN MOHD HARRIS ZAINOL Company Secretary
Chief International Officer Chief Global Business
Solutions
SUSTAINABILITY
STATEMENT
100
About This Statement
101
Sustainability at TNB
107
Spirit of Responsibility
108
Delivering Sustainable Value
113
Feature Story: Reliable Energy with Affordable Tariffs
114
Customer Centricity
116
Feature Story: Smart Meters
117
Minimising Environmental Impacts
119
Climate Change
120
Feature Story: myGreen+ and mGATS
121
Enhancing Capabilities
126
Prioritising Health, Safety and Personal Well-Being
128
Strengthening Partnerships Brightening Surrounding Communities
129
Feature Story: Rural Electrification
134
Feature Story: My Brighter Future
Sustainability
Statement
At TNB, we believe that sustainability
is integral to our strategy to be
amongst the top utility companies
globally. We are committed to
operating as a socially and
environmentally responsible
organisation, nurturing world-class
talents and harnessing continuous
innovation and technology for
continuous growth.
ABOUT THIS STATEMENT

In this Sustainability Statement, we aim to provide clear and transparent information on the management of our material
sustainability matters. We also include our performance, targets and initiatives that are integrated within our corporate and
sustainability strategy.
Our sustainability pillars are the cornerstone of sustainability at TNB:
Governance Economic Environmental Social

Marks our commitment, Defines our continued Defines our commitment to Revolves around how we
driven by our Board to aspiration to provide reliable minimise our environmental develop long-term and
reinforce ethical business and efficient energy in the impact wherever we operate meaningful relationships with
practices and forward-looking local and international under the theme our customers, employees
culture under the theme Electricity Supply Industry (ESI) ‘Environmental Stewardship’. and communities to enhance
‘Spirit of Responsibility’. for a better and brighter future their trust under the theme
under the theme ‘Empowering ‘Embracing Relationships’.
the Nation’.
Reporting Framework, Scope and For the purposes of this statement, the The scope excludes joint ventures and
Boundary scope and boundary of the information supplier activities, unless otherwise stated.
covers TNB’s key business, mainly
This statement was prepared based on
comprising: Please refer to our upcoming Sustainability Report
Bursa Malaysia Securities Berhad’s (“Bursa 2019 for detailed information.
Malaysia”) Main Market Listing Requirements, • TNB Company, which is defined as all
Bursa Malaysia Sustainability Reporting TNB divisions. We have highlighted Reporting Period
Guide 2nd Edition, the Global Reporting the instances where the scope has
Initiative (GRI) Standards: Core Option and been extended to TNB Group, which The statement period covers TNB’s
the GRI Electric Utilities (EU) Sector covers TNB Company and its Financial Year of 2019 (FY2019), which is
Disclosures. We are also progressively subsidiaries. from 1 January 2019 to 31 December 2019.
aligning our sustainability practices to the Where data for FY2019 is not available,
• Operations in Peninsular Malaysia. the most recent data is provided.
United Nations Sustainable Development
Goals (UN SDGs) and are currently studying
We have also indicated where our
the adoption of Task Force on Climate-
disclosures cover international operations.
Related Financial Disclosures (TCFD)
framework.
PG. 101
SUSTAINABILITY AT TNB
Managing Sustainability
Driven by the unprecedented scale of climate change, the world is undergoing energy transition, from a carbon-intensive system
towards a low-carbon and renewables-driven future. The progress towards a sustainable energy future, however, needs to be
delicately balanced against the imperative to develop and sustain the well-being of the nation and communities.
The Energy Trilemma TNB’s Approach

En
Ability to provide Transition of energy TNB remains steadfast in providing affordable electricity to
vir
universal access to system towards the public while improving service quality and minimising
on
affordable, fairly mitigating and

environmental impacts. As such, we take the following approach
m
ty
priced and avoiding potential

en
ui
to address the energy trilemma:

ta
Eq
abundant energy environmental and

lS
gy
for domestic and climate change

us
• Upgrading infrastructure to ensure the reliability of current

er
ta
commercial use. impacts.

En
and future electricity supply

in
ab
ili
• Optimising system efficiency to provide affordable and fair

ty
Energy Security tariffs

Capacity to meet current and future energy demand • Venturing and investing in renewable energy and cleaner
reliably, withstand and recover swiftly from system
power assets
shocks with minimal disruption to supplies.
Source: World Energy Council
Our Sustainability Strategy guides the management of sustainability in our daily operations, enabling the achievement of our
strategic plan for 2017 to 2025, Reimagining TNB, as depicted in the following diagram:
TNB's Sustainability Strategy

In this regard, we have continued our direct
S U S TA I N A B I L I T Y P I L L A R S REIMAGINING TNB
contributions to four (4) of the UN SDGs, namely
Goal 7 (Affordable and Clean Energy), Goal 8
GOVERNANCE (Decent Work and Economic Growth), Goal 13
• Reinforce ethical and safe FUTURE PROOF REGULATIONS
business culture (Climate Action), and Goal 17 (Partnerships for
the Goals). We are taking a progressive step
in our sustainability journey this year by further
ECONOMIC aligning our aspirations and contributions with
• Provide reliable and ef cient
energy for customers FUTURE GENERATION SOURCES the Malaysian Government’s latest development
• Supply electricity To be amongst blueprint, the Shared Prosperity Vision 2030
domestically and internationally the leading (SPV 2030).
corporations in
E N V I R O N M E N TA L energy and related For more information on TNB’s contribution to the
• Support transition to a business globally UN SDGs, please refer to the “What Matters to Us”
low-carbon economy WINNING THE CUSTOMER
• Minimise environmental
section on pages 104 to 105.
S U S TA I N A B I L I T Y
impact
S TAT E M E N T
In FY2019, we are studying the adoption of
SOCIAL the TCFD framework, starting with a climate
• Empower our people
• Inculcate safety culture GRID OF THE FUTURE scenario analysis. We will progressively enhance
• Brighten the lives of our our disclosures in line with TCFD.
communities
07 AFFORDABLE AND
CLEAN ENERGY 08 AND
DECENT WORK
ECONOMIC
GROWTH
13 CLIMATE
ACTION 17 PARTNERSHIPS
FOR THE GOALS
Sustainability Governance
The SDC’s role is to review, evaluate and advise In FY2019, the SDC has discussed the following
TNB’s Group-wide sustainability is overseen by on sustainability and green energy-related matters including, but not limited to:
the TNB Board of Directors (“the Board”) who initiatives prior to further review from other
is also cognisant of the importance of integrating • Review of material matters
relevant committees, including the Board.
sustainability in the strategic direction of the Decisions to escalate issues to higher approving • Sustainability disclosures
organisation, decision-making processes and authorities are subject to our Procurement & • Sustainability projects under TNB Green
operational performance. TNB’s sustainability Supply Chain Policy and Procedures, and Limits Energy Development Fund (TGEDF)
initiatives and performance fall under the of Authority (LOA) guidelines. • GHG emissions assessment and monitoring
purview of the relevant management
• TNB’s contributions to the UN SDGs, SPV
committees, including the Sustainability Sustainability initiatives and their implementation 2030 and future plans
Development Committee (SDC), chaired by the are cascaded to divisions and subsidiaries for • Climate-related disclosures and alignment
President/Chief Executive Officer. incorporation into their respective business and to the TCFD
operational areas.
Sustainability Statement
TNB’S STAKEHOLDER ENGAGEMENT APPROACH

We value the insights and inputs from our stakeholders. We have strengthened our relationships with our key stakeholders via
proactive engagement through various platforms. The table below showcases our key stakeholders, the various engagement
platforms, their areas of interest or concern and how we address it.
Our customers comprise of domestic, commercial and industrial customers, including Small & Medium-
Customers
sized Enterprises and large corporations
Engagement Platforms Frequency of Engagement Areas of Interest or Concern Our Response by Topic
• Customer service outlets • Ongoing • Accessible and reliable supply of • Delivering Sustainable Value,
• Call centre • Ongoing electricity page 108
• myTNB mobile application and • Ongoing • Affordable electricity tariffs • Customer Centricity, page 114
online portal • Energy efficiency
• Customer surveys • Ongoing • Billing and payment platforms
• Social media • Ongoing • New technologies (e.g. smart
• Roadshows • As needed meters)
• Campaigns • Ongoing • Customer service
• Green energy/Renewable Energy
(RE)
The Malaysian Federal and State Governments, parliamentarians, municipal councils, regulators and federal
Government
& state agencies
• Meetings and briefings • Monthly • Regulatory and operational • Our Governing Principles,
• Site visits • As needed compliance page 107
• Round table sessions • As needed • Regulatory framework (including • Delivering Sustainable Value,
• One-to-one engagements • Ongoing Malaysia Energy Supply Industry page 108
• Outreach programmes • Ongoing (MESI) 2.0 and Renewable Energy • Strengthening Partnerships
Transition Roadmap) Brightening Surrounding
• Social and environmental risk of Communities, page 128
new projects and development
• Disaster management
• Cyber security risks and initiatives
• New initiatives and technology
• Nation-building initiatives, including
community development
• Security & reliability of supply
• Accessibility of electricity supply
• Affordable tariff
Investors Institutional and retail investors, analysts and potential investors with interest
• Financial results announcements • Quarterly • Group business strategy and • Delivering Sustainable Value,
• Annual and Sustainability internal reorganisation page 108
Reports • Annually • Malaysia Electricity Supply Industry • Our Governing Principles,
• Investor relations events, (MESI) 2.0 reform page 107
conferences and roadshows • Based on Investor Relations • Changes in the regulatory • Customer Centricity, page 114
• One-to-one and group annual programme framework and electricity supply • Minimising Environmental
engagements • Quarterly industry Impacts, page 117
• Site visits • Operational and financial • Climate Change, page 119
• Annual General Meeting (AGM) • Once/twice a year performance • Enhancing Capabilities, page 121
• Investor Relations Corporate • Annually • Current and future Environment, • Prioritising Health, Safety and
Day Social & Governance (ESG) efforts Personal Well-Being, page 126
• Annually • Strengthening Partnerships
Brightening Surrounding
Communities, page 128
PG. 103
Employees Our 36,307 full-time employees in TNB Group, excluding contractors
• One-to-one engagements • Ongoing • Talent and skill development • Enhancing Capabilities, page 121
• Townhalls • Annually • Career development • Prioritising Health, Safety and
• Turun padang and other • As needed • Employee well-being and Personal Well-Being, page 126
outreach programmes workplace culture
• Online portal (intranet), • Ongoing • Health and safety
newsletters, emails and TV TNB • Employee satisfaction
• Employee surveys • Biannually • Employee engagement on TNB’s
• Corporate Social Responsibility • Ongoing strategies and initiatives
(CSR) events
• Social media • Ongoing
Three (3) registered unions and two (2) workers associations that cover all executive and non-executive
Trade Unions
employees
• Joint meetings and engagement • Annually • Employee welfare and issues • Enhancing Capabilities, page 121
sessions • Collective bargaining
• Negotiations • As needed • Employee engagement on TNB’s
• Collective agreements • As needed strategies and initiatives
• One-to-one engagements • As needed
Vendors 4,750 contractors and suppliers
• One-to-one engagements • As needed • Training and capability development • Delivering Sustainable Value,
• Training and workshops • As needed • Industry support for business page 108
• TNB Vendors Day • Annually growth • Prioritising Health, Safety and
• Outreach programmes • Annually • Potential health and safety impacts Personal Well-Being, page 126
• Procurement processes
Communities Local communities in or near areas where we operate, including those affected by our operations
• Outreach programmes • As needed • Community development and • Strengthening Partnerships
S TAT E M E N T
• CSR events • Ongoing support Brightening Surrounding
• Townhalls • As needed • Communication on development Communities, page 128
• Dialogue sessions • As needed plans and projects • Minimising Environmental
• Sporting events • Annually • Potential health and safety impacts Impacts, page 117
• Potential environmental impacts
Non-Governmental
Consumer associations, environmental groups and chambers of commerce
Organisations (NGOs)
• One-to-one engagements • As needed • Affordable tariffs • Delivering Sustainable Value,

• Outreach programmes • Ongoing • Innovation in technology and page 108
• Seminars and knowledge • Ongoing renewable energy • Minimising Environmental
sharing sessions • Sustainability and potential Impacts, page 117
• Collaboration sessions • As needed environmental impacts
• Quality of service
• Supply reliability
WHAT MATTERS TO US
Our Material Matters and Commitment to the UN SDGs
Our materiality assessment workshop was conducted in FY2017 (ending 31 August 2017) to identify material sustainability matters
that could have significant economic, environmental and social impacts, both to our business and to our stakeholders. We
conduct an annual review of our material matters to determine their importance by considering various factors that would
impact TNB, including the latest industry trends, regulations and sustainability issues, as well as our stakeholders’ interests and
concerns. In FY2019, we reviewed the material matters with Top Management and the SDC, and have concluded that all existing
material matters remain our priorities. As we recognise the urgency and significance of climate change towards the industry
and our business, we have redefined the “Greenhouse Gas (GHG) Emissions” material matter to “Climate Change”, as approved
and endorsed by the SDC. This is to reflect our progressive efforts in line with the Government’s commitment to the Paris
Agreement.
We disclose our management of material matters through our eight (8) topics under four (4) sustainability themes: Spirit of
Responsibility, Empowering the Nation, Environmental Stewardship and Embracing Relationships. We also continue to map our
relevant direct or indirect contribution to the UN SDGs against each topic.
Section Topics Material Matters Contribution to SDGs
Governance Our Governing Principles • Responsible and Ethical Business Indirect SDGs:
Spirit of Promoting ethical and safe practices is driven Practices
Responsibility by the TNB Board and shared by our
management and employees to reinforce a
sound business and forward-looking culture.
Economic Delivering Sustainable Value • Business and Financial Performance Direct SDGs:
Empowering the Regulatory changes in the energy landscape, • Energy Efficiency
Nation along with the shift in focus towards • Fuel Mix Policy
renewable energy and digitalisation require • Efficient Technology and Innovation
TNB to be both cost-effective and efficient • Asset Optimisation Indirect SDGs:
to remain competitive. • Cyber Security Management
• Sustainable Supply Chain
• Reliable Energy and Fair Tariffs
• Renewable Energy
Customer Centricity • Customer Experience Direct SDGs:

We seek to win customer trust and loyalty • Energy Efficiency
over the long-term through effective
engagement, quality of service and
exceptional customer experience. Indirect SDGs:
Environmental Minimising Environmental Impacts • Environment Management Direct SDGs:

Environmental TNB strives to protect and conserve the • Biodiversity Management
Stewardship environment in our operations and decision- • Natural Resource Consumption
making in line with our commitment for • Waste Management
continuous improvement of environmental Indirect SDGs:
performance.
Climate Change • Climate Change Direct SDGs:

We are committed towards reducing our • Renewable Energy
carbon footprint by embracing and • Energy Efficiency
supporting renewable energy generation
and energy efficiency to reduce greenhouse Indirect SDGs:
gas emissions.
PG. 105
Section Topics Material Matters Contribution to SDGs
Social Enhancing Capabilities • Diversity and Inclusion Direct SDGs:

Embracing Our people are essential to TNB’s success. • Workplace Culture
Relationships We strive to continually strengthen our • Employee Engagement
leadership, enhance employees’ performance • Capability Development
and develop talent. Indirect SDGs:
Prioritising Health, Safety and Personal • Safety and Emergency Preparedness Direct SDGs:
Well-Being • Health and Well-being
We prioritise our employees’ occupational
health and safety, and well-being as it not
only facilitates higher workplace productivity Indirect SDGs:
but also builds their sense of confidence
and security.
Strengthening Partnerships Brightening • Community Development Direct SDGs:

Surrounding Communities • Education
We strive to make people’s lives better and • Stakeholder Relationship
brighter by equipping them with necessary
and relevant skills, sustaining the environment Indirect SDGs:
and enhancing their livelihood. We engage
in a wide range of programmes that seek
to leave a long-lasting positive impact on
people and communities.
Please refer to page 106 for more information on our contributions to the four (4) UN SDGs.
S TAT E M E N T
Linking Our Performance to Global Agendas

We have mapped our specific sustainability performance and direct contributions to four (4) UN SDGs. TNB will also continue
to align our strategies, material matters, key performance indicators (KPIs) and targets with the UN SDG agenda.
SDG 7: Affordable and Clean Energy Ensure access to affordable, reliable, sustainable and modern energy for all
Achieving this goal will contribute to economic, environmental, social development and well-being. We are focused on this goal by prioritising
energy efficiency, clean energy technology and related infrastructure.
Relevant performance indicators:
Equivalent Availability Factor (EAF) System Average Interruption System Domestic renewable
83.35% Duration Index (SAIDI) for

Peninsular Malaysia at
Availability
99.78%
energy generation
capacity
Performance for wholly-owned
power plants in Peninsular Malaysia 48.13 minutes/
customer/year
85.39 MW
Please refer to page 110 for more information on our operational performance in FY2019.
Promote sustained, inclusive and sustainable economic growth, full and productive
SDG 8: Decent Work and Economic Growth
employment and decent work for all
We have always placed great importance in creating employment opportunities that value and respect human rights. This goes well beyond
legal compliance or upholding our reputation, as we also strongly believe that this is the backbone of positive business performances across
our value chain.
Total number of new hires Employability rate within six Revenue for FY2019 Total training hours
in FY2019 by TNB Company (6) months upon graduation
RM50,939.70 (general and leadership)
1,398 1.09 million hours

for UNITEN graduates
94% million
SDG 13: Climate Action Take urgent action to combat climate change and its impacts
We support Malaysia’s commitment to the Paris Climate Change Agreement signed at COP 21, recognising the increasing importance of
mitigating and adapting to climate change. In this regard, we seek to reduce our GHG emissions intensity and the environmental impacts
resulting from our operations.
Total GHG emissions Total GHG emissions TNB’s target to grow

mitigation Energy savings from intensity renewable energy capacity
0.57
TNB buildings
5.75 million 782,259kWh
to
1,700MW,
tCO2e tCO2e/MWh both domestically and
internationally by 2025
Strengthen the means of implementation and revitalise the global partnership for
SDG 17: Partnerships for the Goals
sustainable development
We will continue to form partnerships with all stakeholders including Government agencies, industry experts, businesses and NGOs, both within
and outside the energy sector. This is to meet future electricity demands in a sustainable manner, as well as to give back to the community.
Total contribution to community TNB’s partnership with Yayasan TNB’s partnership with TNB Energy Services Sdn. Bhd.
development programmes Kebajikan Nasional (YKN) and Institut telecommunication (TNBES) partnership with Malaysian Green
Jantung Negara Foundation (IJNF) for companies for the National Technology Corporation (MGTC) to install
RM40.25 Better Brighter Shelter programme

focusing on upgrading the dormitories
Fiberisation
Connectivity Plan
and electric vehicle (EV) charging stations
nationwide. To date, 29 stations have
million and transit homes for hospitals been installed
PG. 107
S P I R I T O F RE S PO NSIBILITY
OUR GOVERNING PRINCIPLES
Promoting ethical and safe practices

is driven by the Board and shared
by our management and employees
to reinforce sound business and
forward-looking culture.
KEY FY2019 HIGHLIGHTS:
Full roll out of TNB Introduced new 4,538 employees Related Material Matter(s):
Corporate Integrity reporting channel attended the Integrity • Responsible and Ethical
Management for whistleblowing Engagement Business Practices
System (TCIMS) Programme (IEP)
At TNB, we are committed to conducting and conduct periodic reviews of risks to As part of the TCIMS effort, there was an
business responsibly, with honesty and ensure relevance and effectiveness. In update to the Whistle Blowing procedure.
integrity to strengthen the confidence of upholding high standards, the Management Whistleblowers now have an option to
our stakeholders. The Board is cognisant and Board regularly review and approve make a direct report to five key personnel,
of its crucial role in demonstrating high Group policies, codes and procedures as in addition to the current channels of
standards of corporate governance. The continual improvement for risk mitigation. the Whistle Blowing Information System
Board also ensures this Shared Value of (https://wbis.tnb.com.my/). Further details
integrity is effectively cascaded within the For more information, please refer to Statement can be found at https://www.tnb.com.my/
on Risk Management and Internal Control section
Group. on pages 54 to 59 of CGFS 2019. ethics-governance/whistle-blowing/.
In FY2019, 55 Integrity Engagement

CORPORATE GOVERNANCE INSTILLING A CULTURE OF Programme (IEP) sessions were conducted
AND RISK MANAGEMENT INTEGRITY across the Group and participated by
S TAT E M E N T
Our Corporate Governance Model defines We have retained our certification of ISO 4,538 employees. Another of our key
the conduct we expect from our employees 37001:2016 Anti-Bribery Management initiatives include the TNB-MACC
and external parties across the organisation. System and are implementing the TNB Corruption Prevention Programme, a
It includes the TNB Risk Management Corporate Integrity Management System strategic collaboration with the Malaysian
Framework that governs and integrates (TCIMS) across the Group to drive an Anti-Corruption Commission (MACC) to
risk management into our business and integrity-based culture and compliance provide anti-corruption education and to
decision-making processes, in line with with local and international anti-bribery shape a high-integrity workforce. The
the ISO 31000:2018 Risk Management – standards. programme, held in four series from July
Guidelines. We go beyond compliance to November 2019, was participated by
200 employees.
D EL I V ERING SUSTAINABLE VALU E
EMPOWERING THE NATION
Regulatory changes in the energy

landscape, along with the shift in
focus towards renewable energy
and digitalisation require TNB to
be both cost-effective and efficient
to remain competitive.
Implemented the Jimah East Power RM9.28 billion Related Material Matter(s):
National Fiberisation (2 X 1,000MW) spent on local • Business and Financial • Asset Optimisation
and Connectivity commercially suppliers in Performance • Safety and Emergency
Plan (NFCP) pilot operational in FY2019 • Energy Efficiency Preparedness
project in Jasin, FY2019 • Fuel Mix Policy • Cyber Security Management
Melaka • Renewable Energy • Efficient Technology and
• Reliable Energy and Fair Innovation
Tariffs • Sustainable Supply Chain
OVERVIEW OF OUR ENERGY INDUSTRY LANDSCAPE

FY2019 marks another year of success as we have achieved strong financial growth Generation Fuel Mix in Peninsular
across our businesses, domestically and internationally. This has allowed us to continue Malaysia for FY2019
to create value for our key stakeholder groups through maximised value distribution.
Hydro
To read more on TNB’s business performance and the value distribution to stakeholders, please refer to
3.10% Solar
Performance Review section on pages 62 to 70. Others 0.60%
0.10%
Generation Fuel Mix
The generation fuel mix in Peninsular Malaysia operates on the optimal generation
capacity development plan, established by the Planning & Implementation Committee
for Electricity Supply and Tariff (Jawatankuasa Perancangan dan Pelaksanaan
Pembekalan Elektrik dan Tarif, JPPPET) under the purview of MESTECC. This plan
aims to strike a delicate balance between economic, environmental and energy
security factors. While gas and coal will continue to be the main source of power
generation in the medium term, there will be an increased uptake of renewable
energy (RE) generation, especially solar. Coal
53.90%
Gas
42.30%
Awards won:
“Most Outstanding Utility Sector in Malaysia”
(Asia Money Awards 2019)
PG. 109
HOW WE GENERATE ENERGY

We remain steadfast in achieving our strategic plans over the Renewable and Green Energy
coming years, and the key to strengthening future growth is We continue to work towards achieving our RE target of
the expansion of our generation capacity. We will continue to 1,700MW installed capacity by 2025, both domestically and
assure stable and reliable electricity supply for the nation by internationally. This will contribute to Government’s target of
venturing into new technologies for cleaner power as well as 20% RE generation capacity mix by 2025.
renewables. Our current low-carbon generation portfolio includes
cleaner power assets which emit less GHG as compared to To achieve our RE target, we continue to aggressively venture
conventional assets. into the domestic and international renewables market which
are led by TNB Renewables Sdn. Bhd. (TRe) and International
Cleaner Power Generation Asset Group (IAG), respectively. Internationally, we have invested
For FY2019, one of the most significant achievements in acquiring in RE including solar and wind energy across the United
cleaner power assets is the commencement of operations in Kingdom, Turkey and India. In Malaysia, our RE portfolio is still
the Ultra-Supercritical Coal-Fired (USC) Power Plant of largely contributed by solar. The first LSS in Sepang, Selangor
2 x 1,000MW capacity, Jimah East Power, in Negeri Sembilan. generates 50MW with a System Availability of over 99%. Our
USC Power Plants use an efficient coal-burning technology second LSS is currently under construction in Bukit Selambau,
with 40% thermal efficiency, which differs from conventional Kedah and it is expected to generate 30MW by end of 2020.
coal-fired power plants that have 36% thermal efficiency. This
is TNB’s third USC plant and the fourth one in Malaysia, which
has contributed to the increase in TNB’s installed capacity from
12,369.53MW to 13,469.53MW.
Meanwhile, the Southern Power Generation combined-cycle

gas turbine (CCGT) plant at Pasir Gudang, Johor that is due for
completion by July 2020 uses the 9HA.02 gas turbine technology.
It is expected to achieve a combined-cycle thermal efficiency
exceeding 60%, which is higher than the conventional gas-fired
power plants thermal efficiency and will eventually translate
to lesser GHG emissions.
TNB’s RE Portfolio for FY2019
Mini hydro
Other key highlights for FY2019:
21.76MW
TNB has partnered with governmental and private bodies to install solar PV
panels on Government buildings, residential units, educational institutions as
well as commercial and industrial properties. These partnerships have enabled
TNB to secure a peak generation close to 25MW through more than 100
projects.
Domestic
S TAT E M E N T
Biogass
3.20MW GSPARX Sdn. Bhd. (GSPARX) facilitates the implementation of the Net Energy
Metering (NEM) scheme and the Supply Agreement for Renewable Energy
Biomass
Solar
(SARE). GSPARX has secured rooftop solar PV projects totalling 25MW (24MW
10.00MW
50.43MW for commercial & industrial buildings and 0.5MW for residential buildings) in
FY2019. To date, 0.43MW worth of solar PV projects have been completed
and entered the domestic RE mix.
Wind
143.60MW
The construction of our 20th mini hydroelectric station at Sungai Tersat, Kuala
Berang, Terengganu with a designed capacity of 4MW is currently 70%
completed and is expected to operate in 2020.
TNB is collaborating with Public Works Department (Jabatan Kerja Raya,

International JKR) on RE for the mutual benefit in four areas: the promotion of green
technology by focusing on public awareness and outreach; smart nation by
embarking on industrial revolution 4.0, smart city solutions; precision operation
Hydro by optimising asset management; and research excellence by conducting
131.30MW Solar
391.00MW continuous research initiatives in RE technology.
PRIORITISING OPERATIONAL RELIABILITY AND PERFORMANCE

Given our responsibility to provide reliable electricity, it is imperative that our operations across the value chain performs smoothly,
efficiently and exceptionally. We rely on the synergy between our asset optimisation plans and Business Continuity Management
(BCM) Framework to drive this agenda. The systems in place have resulted in continuous improvement in our operational
performance, for instance, in our SAIDI and SAIFI.
For more information on our performance and initiatives, please refer to our Strategic Business Review section on pages 50 to 51.
The reliability of our operations can be reflected through our performance in the following parameters:
Operational Performance for Peninsular Malaysia
Equivalent Availability Equivalent Unplanned System Availability (%)

Factor (EAF) (%)* Outage Factor
(EUOF) (%)*
99.79 99.79
99.78
88.51 89.92 6.63
83.35
3.24
2.69
Transmission System SAIDI SAIFI

Minutes (Minutes) (Minutes/Customer/Year) (Frequency/Customer/Year)
0.35
50.24 0.84 0.86 0.83
48.22 48.13
0.27
0.23
* Performance for wholly-owned power plants in Peninsular Malaysia FY2017 FY2018 FY2019
Asset Optimisation
Given the importance of energy to national security, our assets are classified as Critical National Information Infrastructure (CNII).
We recognise our responsibility to ensure this infrastructure is maintained and protected, hence we have adopted a holistic
asset management approach to fulfil this need.
Our Asset Management Plan is an effective asset management system with ISO 55001:2014 Asset Management certification
provides TNB the roadmap for achieving greatest value from physical assets by optimising cost, risk and performance across the
asset lifecycle. Under this plan, we outline the implementation activities necessary to realise TNB’s asset management policy,
strategy and objectives. We have also implemented Asset Performance Management System (APMS) as part of our enterprise
asset management solution to establish and verify a holistic view of asset management throughout its lifecycle, thus, facilitating
analysis of investments, operations, maintenance, risks and opportunities, as well as performance and sustainability.
PG. 111
We continue to undertake the following asset management and optimisation initiatives for FY2019:
Project Description
Preventive Maintenance (PM) and Condition- Ensure assets in optimal condition and monitors certain indicators for signs of decreasing
Based Maintenance (CBM) performance or upcoming failure.
Enables early detection of defects, asset replacement and introduction of new technologies.
SAIDI 50 Initiatives
Focuses on reduction in frequency & duration of planned/unplanned outages.
Aims to unlock asset potential and enhance performance of TNB’s generation power plants
Business Turnaround Programme
through cost savings, cost avoidance and better inventory management.
Intelligent Predictive and Diagnostic Utilises a software that enables plant operators to detect anomalies in the operations of
Monitoring (IPDM) System major assets, thus allowing for early preventative actions.
Asset Mid-life Overhaul Enables safer and more cost-efficient overhead line maintenance.
Drones Enhances land planning functions and Geospatial Information System (GIS) data.
Online Monitoring System for Gas Analysis Assesses the condition of transformer bushings and gas-insulated switchgears.
Automatic Fault Analysis and Fault Location Assists operation and maintenance team for faster decision-making during restoration
Identification System processes.
Business Continuity Management through drills against various plant-specific Our cyber security governance is cascaded
emergency scenarios. There were 12 drills to the divisional level throughout the
Our TNB BCM Framework has been
conducted in FY2019. business, with committees specifically
designed to provide a structured approach
tasked to oversee policies, mitigation
in managing business continuity in TNB
We also conducted Integrated Community actions and response plans, as well as
Group by enabling prompt and effective
Based Disaster Management (ICBDM) initiatives to strengthen our defence
response and recovery before, during and
exercises together with local agencies at against cyber threats. For FY2019, we have
after a crisis. Each division uses the BCM
our hydroelectric power plants, as a subset conducted one cyber drill exercise
Framework as a guideline to design and
of ERP. This exercise is tailored specifically covering critical business areas across the
implement a business continuity plan
for communities who live within close organisation. This includes periodic cyber
that specifically caters to their respective
proximity of our hydroelectric power attack simulations, cyber security
business functions. Our customised plans
plants to educate the local residents on awareness sessions for our employees,
that are in place include Emergency
the procedures and actions to be taken and an internal cyber security conference.
Response Plan (ERP) at our power plants
against potential disasters. Examples of
and cyber security management.
activities under ICBDM include evacuation
drills as well as dam safety awareness
For more information, please refer to Statement
briefings and workshops.
on Risk Management and Internal Control section
on pages 54 to 59 of CGFS 2019.
Cyber Security Management
Cyber security at TNB encompasses the
Emergency Preparedness
protection of data integrity and
S TAT E M E N T
All TNB power plants require Emergency accessibility to ensure uninterrupted
Response Plan (ERP) to ensure their power supply from our power transmission
resilience in avoiding disruption to the system. We are safeguarded by our Cyber
power generation business. The Security Operation Model (CSOM) and
effectiveness of ERP is measured by the are ISO 27001:2013 Information Security
ability of the emergency management
team to carry out a timely and appropriate
Management System certified. We conduct
regular audits at the National Load
Awards won:
response. All power plants are required Despatch Centre on relevant critical “Cyber Security Project of the Year 2019”
to design, implement and conduct regular infrastructure. (Malaysia Cyber Security Awards 2019
tests on the effectiveness of their ERP held by CyberSecurity Malaysia)
“Share Guide Association Malaysia (SGAM)

IT Users Group”
(SGAM ICT Conference and Awards 2019
held by SGAM)
UTILISING INNOVATIVE TECHNOLOGY TO PROVIDE EXCELLENT OPERATIONAL PERFORMANCE

TNB is progressively moving towards an integrated system by using technology to deliver greater flexibility and develop products
and services that are accessible to our customers. The implementation of the Grid of the Future involves the digitalisation of
our grid system to accommodate and meet emerging industry demands.
The following projects contribute to the enhancements to our grid infrastructure:
Project Description FY2019 Status/Highlights
Distributed Generation Enhances network visibility, Network visibility enhancements include:

(DG) Infrastructure transparency and reliability for all • Upgrading of sensors and transducers in the related equipment to enable
DG connection. bi-direction flow monitoring
• Installation of Supervisory Control and Data Acquisition (SCADA) at all medium-
voltage (MV) connected DG (RE) for monitoring & visibility
Advanced Metering Enhances meter reading by Deployment of smart meters continued in Melaka (Phase 1), while deployment
Infrastructure (AMI) introducing remote automated in Klang Valley (Phase 2) commenced in November 2019. In FY2019, there were
readings and detailed load profile 281,066 units of smart meters installed primarily in Melaka. Moving on, the next
information, thus enabling better phase of installation will be in selected areas in Klang Valley, with a target to
load management and future tariff install 1.2 million smart meters by 2020.
options.
For information on smart meters, please refer to Feature Story: Smart Meters on page
116.
Mobility Solutions Increases work efficiency amongst There is a roadmap to roll out mobility solutions for projects linked to distribution
field employees. automation, asset management systems, substation maintenance systems and
information systems.
Volt-VAr Optimisation Enables TNB to perform control and This project has delivered a total of 272MVAr, which is an increase from 113MVAr
system network optimisation, which last year.
improves electricity supply quality,
increases its efficiency and provides
electricity savings to customers.
Geospatial Information Provides accurate location Successfully rolled out 11kV CPP Online Approval function and 33kV CPP function to
System (GIS) information to manage, operate and APP users nationwide. In addition, GIS also successfully rolled out 11kV CPP functions
analyse TNB’s network assets. to APP and AD users in Selangor, Perlis, Pulau Pinang, Kelantan and Melaka.
Medium voltage data production has been completed for all states except Perak
which is targeted to be completed by 2020.
Distribution Automation Provides real-time management of To date, 22% out of the 72,729 11kV substations have been equipped with SCADA.
network operations.
Completion of Kuala Perlis-Langkawi Submarine Cable

As part of TNB’s capital expenditure to strengthen the country’s
electricity infrastructure, particularly the Grid connectivity, we are
enhancing the fully automated electric system in Langkawi by
installing a 26.5km submarine cable. The work to lay the submarine
cable was completed in 2019.
Digital Connectivity
We have completed the NFCP Pilot project at Jasin, Melaka in
FY2019 to test the technical, safety and security aspect of the
open-access network and to assess commercial viability of the
wholesale broadband business. The project enabled 1,100 homes
with better broadband coverage with a speed of up to 1Gbps.
We are also in partnership with telecommunication companies to
leverage our network infrastructure and widen the coverage of
broadband access nationwide.
PG. 113
Total Number of Suppliers Total Spent on Procurement

SUSTAINABLE SUPPLY CHAIN
(RM billion)
The scale of TNB supply chain and business provides the opportunity 151 175
373** 0.60
for us to positively influence our suppliers’ and partners’ environmental,
74 0.54 0.40
social and ethical performance. We support Malaysian suppliers and
play a role in strengthening the local value chain ecosystem. We
0.17
are guided by TNB’s Procurement & Supply Chain Policy and
4,141** 3,132 4,514 4,575 6.64 2.28 6.80 9.28
Procedures, and the Procurement Code of Conduct to realise our
FY2017 FPE FY2018 FY2019 FY2017 FPE FY2018 FY2019
values of treating all our suppliers with respect and integrity. 31.12.2017* 31.12.2017*
Local International
* FPE31.12.2017 denotes 1 September 2017 to 31 December 2017

** Data has been restated due to errata
SPV 2030:
FEATURE STORY: Strategic Thrust 6:
UN SDG:
Goal Seven (7)
RELIABLE ENERGY WITH

Regional Inclusion
AFFORDABLE TARIFFS
As the national electricity provider, TNB is committed towards contributing to Goal 7 of the
UN SDGs by providing access to affordable, reliable and sustainable energy for all. TNB is
delicately balancing the energy trilemma to deliver a high quality supply and service while
assisting transformation of MESI to the benefit of Malaysian customers. In pursuing clean
energy, TNB also balances the accessibility and security of electricity supply to achieve the
nation’s long-term development goals and ensure the upliftment of all communities. This goal
is in line with the Government’s SPV 2030 Strategic Thrust (ST) 6 on regional inclusion by
providing affordable and reliable energy.
The electricity tariff model is subject to the Government’s regulatory mechanism, featuring the
Incentive Based Regulation (IBR) framework. IBR is a framework for electricity tariff setting,
with built-in incentives to improve efficiency of regulated entities and give greater transparency
for customers. Under IBR, tariffs comprise the base tariff and Imbalance Cost Pass-Through
(ICPT). The base tariff rate is maintained over a three-year period, while ICPT, which includes
rebates or surcharge, is reviewed every six months.
Base tariff is set to reflect the base cost for fuel and generation,
the capital cost, as well as the operation, maintenance and
administration costs of all the regulated business entities. ICPT,
on the other hand, is another element in the electricity tariff
which acts as an adjustment mechanism to reflect changes in
fuel and generation costs in customers’ tariffs. This is to ensure
financial sustainability and reliability of supply in the system.
(Based on
actual fuel If global fuel prices and generation costs decrease, the difference
prices)
between the price and cost assumptions and the base tariff will
be reflected through rebates for customers and thus, reduce their
S TAT E M E N T
electricity bill. Conversely, an increase in global fuel prices and
generation costs cause a surcharge to be imposed on customers.
Base Subject to Government’s approval, any surcharge as a result of
Tariff
(sen/kWh) additional fuel and generation costs may be cushioned by the
Kumpulan Wang Industri Elektrik (KWIE). Domestic customers
with a monthly consumption of more than 300kWh are subjected
to the ICPT mechanism. However, to lessen the burden of lower-
income groups, domestic customers with a monthly consumption
of 300kWh and below are not affected by the ICPT mechanism.
Source: www.energywatch.com.my
Details on the ICPT rebates and surcharges to the customers can
be found at https://www.tnb.com.my/faq/tariff/.
Additionally, in lower-income households, the Government has a targeted assistance programme to finance their monthly electricity bills, with a
subsidy of up to RM40. Those eligible to the subsidy mainly comprise underprivileged and hardcore poor communities who are registered in the
eKasih system.
The contribution of IBR and ICPT aims to safeguard our customers’ access to affordable energy while supporting a sustainable energy industry.
This is to ensure financial sustainability of the system and give greater transparency and certainty in tariff setting to the customers.
C U S TO ME R CE NTRI CITY
EMPOWERING THE NATION
We seek to win customer trust

and loyalty over the long-term
through effective engagement,
quality of service and exceptional
customer experience.
Customer 281,066 customers 39 Energy Efficiency Related Material Matter(s):

Satisfaction equipped with smart programmes conducted • Customer Experience
Index (CSI) meters primarily in Melaka, for industrial, • Energy Efficiency
at 8.1 with a limited number in commercial and
Klang Valley domestic customers
WINNING AND SUSTAINING enhance our communication with them. protecting our customers’ data and security
OUR CUSTOMERS We constantly value feedback from our is becoming top priority. At TNB, data
customers which will enable us to take privacy and access are managed through
The opening up of the retail space through
proactive actions leading towards the Cyber Security Operating Model
MESI 2.0 in the future will allow customers
continuous improvement in our service (CSOM), policies and security controls. To
to have more choices in both the supply
delivery and customers’ experience. We date, we have implemented over 100
and demand for electricity. Likewise, TNB
have a systematic approach to resolve all security controls as part of the initiatives
is moving into a position where customers
received feedback to ensure that all service to strengthen our online payment security
will play a more significant role in the
requests, complaints, comments, enquiries through the Payment Card Industry Data
electricity supply industry.
and concerns are effectively addressed in Security Standard (PCI DSS). So far, there
a timely manner. have been no reported complaints
Customer Engagement and
regarding breaches of customer privacy
Satisfaction
Safeguarding Customer Privacy or loss of customer data.
We value the insights, feedback and
concerns of our customers, and aim to With the greater integration of technology For more information on cyber security, please refer
in people’s lives as well as big data trends, to page 108 in the “Delivering Sustainable Value”
strengthen their trust in us as well as for section.
the development of new solutions. Thus,
we leverage on our various customer TNB Customers in Peninsular Malaysia in FY2019
interaction channels for strong and regular
engagements. Our annual CSI is the
primary platform to gauge how happy
our customers are with our service delivery
and solutions. Our CSI takes into
consideration several aspects such as Domestic Commercial
TNB’s reputation, branding, reliability of 7,553,229 1,575,198
electricity supply and energy efficiency. TOTAL
In FY2019, we scored 8.1 in our CSI, same 9,248,922
as the previous year.
Recognising the preferred channel of Industrial Others

communication amongst our customers, 30,520 89,975
we have extended our interaction channel
* “Others” consists of mining, street lighting, agriculture, RE generators
through social media platforms such as
Twitter, Facebook and Instagram to
PG. 115
TNB Customers’ Interaction Channels
Click: Call: Come Over:

• myTNB Mobile Application • Contact Centre & Interactive • Kedai Tenaga
• myTNB Portal Voice Response (IVR) • Kiosk
• Social media (@TNBCareLine) • 3rd Party Services
• SMS • Key Account Managers
• Write-in (email)
• Web Chat
SOLUTIONS BEYOND THE kWh

We constantly work towards finding new ways to enrich the lives of our customers. We empower them with tools to navigate
the complexities of the electricity supply industry and deliver a customer-led approach to improve customer experience.
Enabling Smarter Choices for Our Customers

Our smart solutions for customers comprise the AMI initiative and its deployment of smart meters, as well as the energy efficiency
(EE) solutions outlined below:
For more information on smart meters, please refer to the Feature Story: Smart Meters on page 116.
In FY2019, we conducted 39 EE programmes which include the sharing of EE leaflets, gallery walk and EE talk with various
groups such as Government agencies, industrial & commercial users, residential customers, NGOs, community leaders, university
students, school pupils as well as TNB staff. During these programmes, we also promoted our EE solutions and long term
sustainable lifestyle through the following:
Projects Description
Making Electricity Visible (MaEVI) An energy management system that helps customers monitor their electricity
consumption, automate their appliances and improve their home security, through
a mobile application.
Energy Performance Contracts (EPCs) An arrangement between energy services companies and facility owners with
the primary purpose of improving EE through investment in energy efficient
equipment.
Home Energy Report (HER) Provides customers with personalised energy usage reports through myTNB.
Encouraging the Local RE Market through Facilitating Customers’ Needs

We provide several avenues to encourage RE generation and supply amongst our customers including the key initiatives as
shown in the table below. This year, we introduced myGreen+ and mGATS, which are expected to boost green energy development
in Malaysia. myGreen+ provides customers with the option of purchasing green energy without having to install RE fittings while
S TAT E M E N T
mGATS allows customers to purchase Renewable Energy Certificates (REC).
For more information on myGreen+ and mGATS, please refer to the Feature Story: myGreen+ and mGATS on page 120.
Projects that expand the local RE market Description

Feed-in Tariff (FiT) Programme Enables owners of solar PV systems with Feed-in Approvals to supply electricity
to the grid at a fixed price.
Net Energy Metering (NEM) Scheme Promoting prosumers by allowing customers to export the excess energy produced
from their installed solar PV systems on their rooftops or premises to the grid
on a “one-to-one” basis. As of 2019, we have secured 1,273 participants with a
total capacity of 74.5MW.
Via GSPARX, we have implemented beyond-the-meter transactions for SARE

such as solar leasing, Power Purchase Agreement (PPA) or a hybrid of both. To
date, GSPARX has sold solar PV panels to 139 customers with a total capacity
of 25MW.
SPV 2030:
FEATURE STORY: Strategic Thrust 2: UN SDG:
SMART METERS
Key Economic Growth Goal Eight (8)
Activities
In view of Reimagining TNB’s transition towards Grid of the Future journey, TNB is diligently implementing Advanced
Metering Infrastructure (AMI), or also known as Smart Meters to help improve our services efficiently and provide new
customer experience through digitalisation. The initiative aligns with TNB’s commitment towards Goal 8 of the UN SDG
and SPV 2030’s ST2 by driving productivity & digital innovation, and key economic growth activities.
Compared to the conventional electricity meter, smart meters are equipped with additional digital and telecommunication
facilities for two-way communication. This enables the smart meter to record customers’ electricity usage and automatically
communicates the information daily through various channels, primarily using Radio Frequency (RF) and to a lesser extent
Power Line Carrier (PLC) and Cellular Network technologies. This information is available through myTNB mobile application
and myTNB Portal (data down to 30 minutes interval), allowing customers to easily track their previous days’ consumption
data. Through these applications, customers are empowered to manage their energy consumption more efficiently,
resulting in a reduction of electricity bills and carbon footprint.
TNB has set a target of installing 9 million smart meters across Peninsular Malaysia in phases under the AMI initiative
by year 2026. A total of 281,066 smart meters were successfully installed primarily in Melaka and with limited numbers
in Klang Valley as of December 2019. Phase 2 of the initiative targets to install 1.2 million smart meters in selected urban
areas by 2020.
PG. 117
M I N I M I S ING E NVIRONMENTAL IMP ACTS
Environmental Stewardship
TNB strives to protect and conserve

the environment in our operations
and decision-making in line with
our commitment for continuous
improvement of environmental
performance.
Generation Division 4,200 Additional International Related Material Matter(s):

is certified with mangrove saplings Union for Conservation • Environment Management
planted of Nature (IUCN) site at • Natural Resource
Environmental Pergau Dam (Sungai Consumption
Management Perak Hydroelectric • Waste Management
System Station) with 44 • Biodiversity Management
identified fish species
GOVERNING ENVIRONMENTAL NATURAL RESOURCES WASTE MANAGEMENT

MATTERS MANAGEMENT
We seek to practice optimal waste
Protecting the environment in which we The nature of our business requires us to management including reducing waste
operate is one of our key priorities to utilise natural resources, mainly fuel and generation within our businesses and the
maintain business sustainability. In view water, on a large scale. These resources safe disposal, where applicable. Our
of the importance of environmental are essential to generate electricity, and centralised waste management system
conservation, our Generation Division is we are aware of the importance of and practices comply with relevant
certified with ISO 14001:2015 Environmental managing our consumption not just for regulations. All wastes and effluents
Management System. Our environmental business sustainability, but the impact generated from TNB’s power plants are
performance is overseen by the that it has on the environment. managed, disposed and/or discharged as
S TAT E M E N T
Environmental Management Committee per the regulatory requirement set by the
(EMC), which comprises the Environmental We continue to implement initiatives to Department of Environment (DOE). Our
Performance Monitoring Committee enhance our resource efficiency. All our Health, Safety and Environment (HSE)
(EPMC) and the Environmental Regulatory power plants have a system that tracks Guidelines on Scheduled Waste
Compliance Monitoring Committee water consumption monthly under the Management, along with our optimisation
(ERCMC). plant optimisation and waste minimisation programmes further guide our proper
programme, in compliance with ISO waste management.
14001:2015. Any high water consumption
that deviates from the norm will be
investigated and followed up with an
action and mitigation plan. In FY2018,
our total water consumption across all
TNB operations came up to 8,047.94
megalitres.
BIODIVERSITY MANAGEMENT
The nature and scale of our operations, as well as the geographical spread, will raise inherent environmental challenges.
Conservation and management of environmental risks are not only essential to ensure our long-term business sustainability, but
it also benefits the communities where we operate.
TNB works with environmental organisations to understand how to better protect areas that are rich in biodiversity and contribute
to the well-being of our communities. This year, we have continued the International Union for Conservation of Nature (IUCN)’s
Red List study at the Hulu Terengganu Hydroelectric Station, Sungai Perak Hydroelectric Station (Temenggor Dam), and Sungai
Perak Hydroelectric Station (Pergau Dam). In FY2019, a total of RM5.68 million, RM0.26 million and RM1.76 million were spent
on these three sites, respectively.
Key Findings of IUCN Red List Studies as of FY2019
Site:
Site: Sungai Perak Hydroelectric Station (Pergau Dam)
Hulu Terengganu Hydroelectric Station Species Group Number of Species
Species Group Number of Species Fish 0 0 0 0 40 2 2
Fish 0 0 0 0 45 3 3 Terrestrial 0 3 0 6 41 1 3
Terrestrial N/A*
Critically Endangered (CR)
Site: Endangered (EN)

Sungai Perak Hydroelectric
Vulnerable (VU)
Station (Temenggor Dam)
Near Threatened (NT)
Species Group Number of Species Least Concern (LC)
Fish 0 0 0 0 39 2 1 Data Deficient
N/A* Not Evaluated

Terrestrial
* There is no quantitative data for FY2019 as the study on terrestrial species for the site were concluded in FY2018.
These hydroelectric stations continue to pursue and implement other biodiversity-related initiatives, as highlighted below:
Site Initiatives carried out in FY2019

Hulu Terengganu • Forest rehabilitation: Seedlings from forest trees and grass were replanted for the forest
Hydroelectric Station regeneration process in a disturbed site
• Kelah Sanctuary: The Tagal system was implemented at Sungai Tembat and Sungai Sireh
• Environmental Education and Awareness Camp for secondary school students
Sungai Perak • Establishment of Taman Perlindungan Ekosistem Sultan Ismail Petra at Pergau dam
Hydroelectric Station • Pergau Scientific Expedition 2019: This was participated by local universities, Jabatan Perhilitan
and Forest Research Institute of Malaysia (FRIM) and the data obtained was used to facilitate
the State Government’s plan to gazette Taman Perlindungan Ekosistem Sultan Ismail Petra
as a State Park
• Developed Fish Resources Management Plan for sustainable hydroelectric operation and business
model that create potential economic growth to local community via Community Based
Tourism (CBT) programme. This project is a continuity study for a project on natural resources
conservation of Royal Belum State Park, which has been completed last year
PG. 119
C L I M A T E CHA NGE
Environmental Stewardship
We are committed towards a low-

carbon economy by embracing
and supporting renewable energy
generation and energy efficiency
to reduce greenhouse gas emissions.
5,750,636.42 tCO2e Rolled out the Wisma TNB Jalan Anson Related Material Matter(s):
GHG emissions GHG Emissions won First Runner Up in • Climate Change
mitigated (scope 1 Management the National and ASEAN • Renewable Energy
and 2)* System (GEMS) Energy Awards 2019 for • Energy Efficiency
Energy Management in
Building
* Emission mitigated for FY2018, figures for FY2019 are in progress.
ADDRESSING CLIMATE CHANGE change through a more holistic manner OUR CARBON FOOTPRINT
by studying the adoption of the TCFD
Climate change mitigation and adaptation Monitoring carbon footprint helps us to
framework, which will facilitate the
are both equally important and time- identify the business activities that are
management of climate change through
sensitive in tackling today’s climate crisis. more carbon-intensive and thus allowing
the four recommended aspects of
As a response, the Malaysian Government us to develop emissions management
Governance, Strategy, Risks, and Metrics
remains committed to achieve its target plans. To track our carbon footprint
& Targets. This will eventually help
of reducing 45% of GHG emissions through a more systematic approach, we
determine the climate change mitigation
intensity by 2030 relative to the emissions have introduced GEMS in FY2019. We
and adaptation measures for TNB Group.
intensity of GDP in 2005. This consists of have recorded a GHG emissions intensity
35% on an unconditional basis and a of 0.57 tCO2e/MWh in FY2018, which is
S TAT E M E N T
In line with the recommendations from
further 10% upon receipt of climate an increase compared to FY2017, due to
the TCFD Framework, we have initiated a
finance, technology transfer and capacity the addition of TNB power plant. We will
scenario analysis and study to identify
building from developed countries. TNB continuously work towards mitigating our
climate-related risks and opportunities in
is supportive of the Government’s goal GHG emissions through our low-carbon
our business. The study is targeted for
as we transit towards a low-carbon generation assets and EE initiatives.
completion in 2020. Meanwhile, we have
economy. This approach addresses our
conducted a climate risk awareness
stakeholders’ concerns while ensuring For more information on our low-carbon generation,
workshop for the relevant departments please refer to page 109 under How We Generate
business resilience against climate change.
and executives as part of our ongoing Energy.
effort to enhance internal capability and
Our mitigation efforts are reflected
awareness on TCFD and climate change.
through the monitoring of our carbon
footprint, the expansion of low-carbon
The management of climate-related
generation portfolio and cleaner power
matters is currently under the purview of
assets, as well as EE practices. This year,
the SDC, with oversight from the Board.
we are looking into addressing climate
TNB’s GHG Emissions Unit FY2016 FY2017 FY2018
Total emissions (Scope 1 and Scope 2) tCO2e 29,061,190.00 33,503,804.22 37,117,610.37
Emissions mitigated tCO2e 2,359,770.65 6,703,345.15* 5,750,636.42
Emissions intensity tCO2e/MWh 0.55 0.54 0.57
* This data has been restated due to additional emission mitigation from advanced combined cycle technology (TNB Prai Sdn. Bhd.) and electric vehicles.
Managing Energy Efficiency MESTECC awarded Wisma TNB Jalan for Energy. Furthermore, we provided EE
Since 2014, TNB buildings have been Anson, Pulau Pinang as the First Runner training to all TNB employees as well as
undergoing EE improvement programmes Up in the National Energy Awards 2019 conducted a series of EE awareness
via systematic performance management. for Energy Management in Buildings and programmes to develop more energy
Initiatives in the pipeline include Industries – Small/Medium Building managers.
improvement of equipment and enhancing category. This same building went on to
employees’ competencies on EE. win the First Runner Up in the ASEAN As a result of our EE programmes, a total
Energy Awards 2019 for Energy of 782,259kWh were saved this year.
We retrofit facilities across our office Management in Buildings and Industries
buildings to improve EE. Our EE retrofitting under the Small/Medium Building
effort has been recognised, for example, category, awarded by the ASEAN Centre
FEATURE STORY: SPV 2030:

Strategic Thrust 6:
UN SDG:
Goal Thirteen (13)
AND
Regional Inclusion
In line with Malaysia’s ratification of the 2015 Paris Agreement, TNB

is committed towards a low carbon economy by embracing and
supporting RE energy generation and reduction of GHG emissions.
We are cognisant of our role to assist the Government’s target to
achieve 20% RE generation capacity mix by 2025, while also contributing
to the Goal 13 of the UN SDGs on Climate Action and SPV2030’s ST
6 in promoting regional inclusion via green energy accessibility.
In 2019, TNB introduced the Malaysia Green Attribute Tracking System,

(mGATS) and myGreen+ schemes to encourage the uptake of RE.
mGATS provides a platform for corporations, for example, RE generators,
retailers and customers, to trade energy harvested from renewable
sources through the Renewable Energy Certificate (REC). The REC is myGreen+ Updates as of FY2019:
a certificate that represents the delivery of 1MWh of green energy to
the grid and the bearer of REC can directly sell green energy to buyers Total Opening Quota (kWh)
through mGATS. In 2019, TNB issued 700,000 RECs.
37,267,230
The myGreen+ scheme was introduced as an option for customers to
opt for green energy without having to spend on the high initial Subscriptions (kWh)
investment of rooftop solar or other forms of RE generation. This 1,016,000
scheme offers customers a premium tariff of 8 sen/kWh in 100kWh
blocks through a subscription certificate issued by TNB. Since its No. of Customers Subscribed
launch in October 2019, a total of 1,016MWh units subscribed to 46
myGreen+ by customers in supporting green energy.
More details of these two programmes can be found on https://www.tnb.com.my/

Available Quota (kWh)
mygreenplus/.
36,251,230
PG. 121
EN H A N CING CA PABILITIES
Embracing Relationships
Our people are essential to TNB’s

success. We strive to continually
strengthen our leadership, enhance
employee performance and develop
talent.
1.09 million training Established Grid Top 50 best companies Related Material Matter(s):
hours for TNB and Distribution to work in Asia by HR • Diversity and Inclusion
Company Academy Asia Awards • Workplace Culture
• Employee Engagement
• Capability Development
We are committed to attract, develop and retain the right talent as we recognise that the capability of our employees and the
workplace culture are key components in delivering our Reimagining TNB strategy. We have been recognised as an “Employer
of Choice” and are driven to consistently prove it.
Our Human Resources (HR) strategy, HR Leap 6, launched in FY2018, implements HR guiding principles and aligns TNB’s people
development with Reimagining TNB.
HR Leap 6 implements the HR Guiding Principles
HR GUIDING PRINCIPLES
S TAT E M E N T
Focused on People with Care Clarity of Actions with Knowledge Simplicity of Processes with Trust
HR LEAP 6
HR policies and process categorised into 6 pillars
Business Learning Adaptive
Driven Organisation Mindset
RECRUIT RETAIN EXIT
PLAN DEVELOP GROW
Agile Total Legacy

Workforce Motivation
TALENT ATTRACTION AND RECRUITMENT

We are not only focused on recruiting talents with the relevant skills, but also individuals who share the same values as our
organisation.
Our key talent recruitment highlights for FY2019 include:
• Participation in local career • Strategic partnership with • University relationships, such

fairs (International Islamic iCube, a UK-based student as "Tea with Tenaga" and
University Malaysia (IIUM), society to brand TNB in career talks
National Defence University innovation
of Malaysia (UPNM), Universiti
Malaysia Terengganu (UMT),
and Sunway University)
CAREER DEVELOPMENT AND TRAINING Career Development and Training Highlights

Similarly, capability development is an essential part in helping
New targeted interventions
TNB achieve business growth and sustainability. We strive to Total
involving business
create a High-Impact Learning Culture that recognises the value 1,085,160 training simulation and gamification
of learning and provide our people with extensive opportunities hours by TNB Company introduced based on
Competency Gap Analysis
for career growth. In FY2019, over RM183 million was invested
in Learning and Development related initiatives and there was
an average of 6 man-days of training per employee for TNB 38,000 hours for More than RM183
Company. RM10 Million spent to cultivate 705 youth potentials Leadership Training million invested in
through Professional Training and Education for Growing training and development
Entrepreneurs (PROTÉGÉ), is part of the Government’s initiatives
to train graduates who have yet to gain employment.
Since 2018, individualised “Learning Journeys” were rolled out to all employees, providing them with an opportunity to discuss
career aspirations and carve out their chosen career path. As of FY2019, the Learning Journeys have been fully implemented
across core divisions, while implementation is still in progress for other divisions.
CEM Highlights
Career Enhancement Management (CEM)
TNB’s CEM is a platform that helps to closely align an employee’s role to their
38 project specific skillset and competencies throughout their employment period up until
their planned retirement. This is especially useful for periods of transition within
assignments the company as many of the affected individuals will be reskilled for the requirements
in the CEM platform
of their current and future roles.
Key CEM programmes and initiatives include:
• Mindset Change Programmes/Team Enhancement Programmes

• Business Acumen Programmes
2,889 employees • Financial Awareness Programmes

attended the CEM development • Pre-Retirement Programmes
programmes • Project Assignment Forums
• Safety Culture Workshop
CEM Engagement
Score of
91.39%
PG. 123
Division Academies
This initiative is a collaboration with TNB Integrated Learning
Solution Sdn. Bhd. (ILSAS) to develop Subject Matter Experts
(SMEs) who will be able to provide on-the-job technical training
and upskilling within their respective divisions. SMEs play a
significant role in the Division Transformation Programme and
help deliver a sustainable high business performance.
To date, the following divisions have set up their respective academies, and the key highlights for FY2019 include:
Division Academies According to Business Functions
Generation Distribution Network

FY2019 Highlights FY2019 Highlights
Programmes under Generation Academy: Leadership development training
• 47 participants from various divisions and subsidiaries to contribute to Distribution
graduated from Generation Leadership Development Network financials
(GLD) programme • 30 executives attended the first
batch of training. The outcome
• 40 participants from non-executive
included setting KPIs for savings
level graduated from SME Batch 6
in operating expenditure
• 40 participants from executive
level graduated from SME Batch 7
Grid
FY2019 Highlights
Leadership and business acumen skills development programme
• 30 executives attended this 16-week programme
• 19 cost-efficiency projects were initiated
Leadership Development
Leadership development is an integral this strategy. So far, 46 positions have We also offer Master of Business
part of structured succession planning at been identified. Administration (MBA) programme which
TNB. As such, we have identified Internal equips future leaders with strategic
Leadership Competencies and integrated Furthermore, one of our key infrastructures thinking and essential business skillsets
S TAT E M E N T
these desired skills and qualities within is the Leadership Development Centre from one of the leading universities in
our employees’ Competency Assessment (LDC), which specialises in formulating the world. The MBA is offered by Universiti
and Technical Competencies. This assures experiential leadership and development Tenaga Nasional (UNITEN), in partnership
the establishment of a strong network of programmes catered to employees at all with the Melbourne Business School,
capable and confident leaders. levels. A key initiative under the LDC is University of Melbourne, Australia. In
our Leadership Drive (LD). The LD integrates FY2019, 32 selected employees are
Since FY2017, TNB’s Transformation experiential learning with classroom expected to graduate from the fourth
Accelerator Strategy has been supporting lessons and mission-based work cohort of this programme, from February
the delivery of Reimagining TNB by assignments to train employees who 2019 to October 2020.
identifying candidates for the important showcase the potential to become
role of Delta Leaders. Individuals chosen business leaders. To date, there have been
for this position are recognised as being three batches, as below:
able to contribute the most to TNB’s value
• LD Batch One: 32 trainees
creation. They would have shown high
competency in quantitative assessments • LD Batch Two: 11 trainees
and are matched to specific roles to drive • LD Batch Three: 70 trainees
TALENT RETENTION
We strive to retain our employees through competitive benefits and remuneration, meaningful engagements and impactful
career development. It is important for our employees to feel secure in that their well-being is safeguarded and they have
exposure to the necessary learning and capability development.
We offer a range of employee benefits, including:
Medical treatments that cover employees and

Counselling services
their dependents, as well as retirees
Childcare facilities and nurseries Sports and recreation facilities
Housing accommodation and staff quarters
ENGAGING AND LISTENING TO OUR PEOPLE
We encourage two-way communications interim survey before the upcoming EES We will consistently engage our employees
with our employees and leverage on to identify critical areas of improvement to ensure that our workforce is energised
various channels to provide opportunities for immediate action from heads of and focused on creating value and positive
for open discourse on their experience business units. Two (2) EPS have been impacts. With the understanding that
working at TNB. conducted in May and August 2019, which employees require safe channels to express
received a score of 88% and 90% their concerns, or grievances, we have
Our Employee Engagement Score (EES) respectively, showing better rating than also provided a formal grievance policy
survey is conducted biennially to measure EES 2018’s score of 86%. This positive and whistleblowing channel.
engagement level within the organisation. trend highlights that we are moving in
An action plan workshop was conducted the right direction to address our To read more on our Whistle Blowing Procedures,
please refer to the Ethics, Integrity & Trust section
to address areas of improvement raised employees’ needs and effectively on page 62 of CGFS 2019.
in the 2018’s EES. Engagement Pulse empowering them to strive for excellence.
Surveys (EPS) were introduced as an
PG. 125
DIVERSITY AND INCLUSION

TNB values diversity in the workforce and promotes an inclusive environment that respects and nurtures people of different race,
gender, age, disability, religion, and life experience. Diversity in our workforce catalyses innovation which is essential to drive our
business performance and better serve our customers. We are committed to provide equal opportunities and support employees
of diverse abilities and backgrounds to thrive in the workplace. As a result, in FY2019, there was an increase in the percentage
of women in senior management roles and the number of people with disabilities in the organisation. We are planning to
organise more initiatives to promote gender diversity in the future.
Total Number of Employees for TNB Company Employee Breakdown Employee Breakdown
for FY2019 by Gender (%) by Age Group (%)
28,825
32.0 19.0
18.4
16.2
14.4
20.5
20.3
20.0
20.5
Sabah
4
34.2
32.7
37.2
East
80.0
4,290
79.5
79.5
79.7
North
6,128
49.0
48.9
49.6
48.4
Central FY2017 FPE
31.12.2017*
FY2018 FY2019 FY2017 FPE
31.12.2017*
FY2018 FY2019
13,131
South Millenials (<35 years old)
5,272 Female Male

Generation X (35-50 years old)
Baby Boomers (>50 years old)
Women in Senior Management (%) Employees with Disabilities (No.) Employee Turnover by Gender (No.)
7.0 188.0
188.0
6.0 201.0
19.0
4.0
16.7
15.8
4.0
14.7
58.0
1,041.0
57.0
48.0
44.0
1,279.0
1,189.0
33.0
390.0
FY2017 FPE FY2018 FY2019 FY2017 FPE FY2018 FY2019 FY2017 FPE FY2018 FY2019
31.12.2017* 31.12.2017* 31.12.2017*
Female Male Female Male
S TAT E M E N T
Employee Turnover by Employee Turnover Rate by Employee Turnover Rate by
Age Group (No.) Gender (%) Age Group (%)
1.2
2.2
63.0 163.0
2.4
3.3
3.3
0.7
3.4
316.0
333.0
0.7
0.6
67.0
64.0
371.0 59.0
0.4
1.8 1.0**
1,241.0
994.0
845.0
17.0
20.3
0.2
22.9
21.6
4.5
5.7
5.3
7.2
17
FY2017 FPE FY2018 FY2019 FY2017 FPE FY2018 FY2019 FY2017 FPE FY2018 FY2019
31.12.2017* 31.12.2017* 31.12.2017*
Millenials (<35 years old) Millenials (<35 years old)

Generation X (35-50 years old) Generation X (35-50 years old)
Female Male
Baby Boomers (>50 years old) Baby Boomers (>50 years old)

** Data has been restated due to errata.
PRIORITISING HEALTH, SAFETY AND PERSONAL WELL-BEING
We prioritise our employees’

occupational health and safety,
and well-being as it not only
facilitates higher workplace
productivity but also builds their
sense of confidence and security.
Launched the HSE wallet A decrease in the Roll out of the Related Material Matter(s):
mobile application as a Lost Time Injury Total Wellness • Safety and Emergency
platform to practice Frequency (LTIF) BookDoc Mobile Preparedness
Tenaga Safety Culture from 2.08 in Application to • Health and Well-being
and report any potential FY2018 to 1.47 in employees
incidents FY2019
WHAT HEALTH AND SAFETY Safety and Health Committee that workplace and assess the related risks.
MEANS TO US convenes on a quarterly basis to discuss These risks are then further analysed and
their strategic direction for HSE-related addressed through a hierarchy of controls
As a responsible employer, it is important matters, safety performance and before the necessary control action is
to create a safe and healthy workplace mitigations. identified.
and take effort to eliminate work-related
injuries and illnesses. We consistently seek To cascade our safety culture to all Our other initiatives to expedite HSE
to uphold high standards of safety, as employees and workers, we mainly compliance include:
reflected in the progressive certifications leverage on our Tenaga Safety Culture
from OHSAS 18001:2007 Occupational • Conducting various risk assessments,
(TSC) that is centred around four (4) safety such as Chemical Health Risk
Health and Safety Assessment Series to core values, which are Assess, Comply,
ISO 45001:2018 Occupational Health and Assessment (CHRA) and Ergonomic
Intervene and Actively Caring. We continue Risk Assessment (ERA), at relevant
Safety in some of our core divisions. We to implement TNB’s Life-Saving Rules,
have policies and management systems divisions to identify critical risks in our
comprising nine (9) rules on life-saving business operations.
in place, which is complemented by our and injury-prevention measures that
efforts to instil a safety culture that ensures people on site as well as those • Engage an in-house Occupational
encourages shared responsibility values on the road “Get Home Safe”. We also Health Doctor to enable the early
in our employees, workers, suppliers and communicate the best practices and detection of occupational diseases.
surrounding communities. lessons learned across all our business This is in line with the Department
operations through the Behaviour Based Occupational Safety & Health (DOSH)’s
TNB’s Safety and Health Policy guides our Safety programme. OSH Masterplan 2020 which focuses
safety governance framework. We are also on inculcating a sense of responsibility
in the process of implementing the Health, We believe in encouraging employees amongst employees to drive a
Safety and Environment Management and workers to take ownership in ensuring preventative culture at the workplace.
System (HSEMS), which replaces the Safety safety in their respective work areas to • Participating in the Systematic
Excellence Management System. This year, prevent work-related hazards or hazardous Occupational Health Enhancement
the first edition of the HSEMS Manual situations. As such, we empower our Level Programme (SOHELP), which is
was launched by our CEO during our HSE employees and workers to play a role in a strategic partnership with DOSH to
Technical Conference, where all heads of identifying HSE risks. They can utilise the increase the occupational health
business units were present. At the same Hazard Identification, Risk Assessment competency amongst HSE practitioners.
time, TNB has an overarching Health, and Determining Control (HIRADC) This year, five (5) power plants were
Safety and Environment Steering procedures to identify hazards at involved.
Committee, supported by division-level
PG. 127
Behavioural Assessment Programme

This programme is built on the Behaviour Based Safety programme and is catered towards instilling a safety-drive mindset
amongst meter readers who use motorcycles to carry out their jobs. It is designed to complement the Defensive Riding
exercise which was rolled out in 2018. The first phase of implementation for this programme was conducted from April to
July 2019 to meter readers across 88 selected subzones.
Safety Performance, Training and Awareness SUPPORTING EMPLOYEE HEALTH AND WELLNESS
For continual improvement of our health and safety system, We believe that supporting the health and well-being of our
we regularly engage with our employees and workers to gather employees is an integral part of building resilience, work
their feedback. While the divisional Safety and Health Committee satisfaction and high productivity. As such, we conduct various
serves as the main channel to convey HSE-related matters, we programmes and events to promote a healthy lifestyle amongst
also have in place the TNB Safety Information System, Potential our employees and their families. Some highlights for FY2019
Incident Platform, Safety Quality Audit, Safety Quality Enforcement, include:
Safety Inspection and Management by Walk-about, amongst
• The Ministry of Health’s Komuniti Sihat Pembina Negara
others. We are progressively utilising more digital technology
(or “KOSPEN PLUS”) programme, for which TNB is a signatory,
as a key strategic driver for TNB’s HSE business plan. We
focuses on six (6) scopes, healthy diet, no smoking, active
launched the HSE wallet mobile application as a platform to
lifestyle, weight management, health screening and healthy
practice Tenaga Safety Culture and report any potential incidents.
mind.
In FY2019, 72,577 incidents were reported through this application.
• Facilities that are focused on healthy lifestyle and habits
Additionally, we take into account current safety issues in TNB to have been established in several of our workplaces, including
tailor our safety training and awareness sessions for our employees eight (8) certified healthy cafeterias and 61 TNB gyms that
and workers, examples of which include HSE Technical Conference, have the latest equipment and in-house certified trainers.
Gallery Walks, AP Refresher Training and Safety Weeks. • The Total Wellness Programme and corresponding awareness
sessions have been conducted in 159 TNB stations nationwide
In this regard, we have seen a decrease in the Lost Time Injury to date. Through this programme, we have compiled the
Frequency (LTIF) from 2.08 in FY2018 to 1.47 in FY2019. The basic health data of 15,687 employees.
majority of the injuries were due to motor vehicle accidents
• TNB Family Wellness Day saw a turnout of 8,439 employees
and slip, trip and falls.
in April 2019 and 9,921 employees in October 2019. The
event featured several booths providing healthy food, health
TNB’s Safety Performance for FY2019
and cancer marker screenings as well as sports items.
N u m b e r o f L o s t N u m b e r o f L o s t Lost Days Severity • TNB’s Energy Night Run was held on 27 July 2019 in
Time Injuries (LTI) Days Rate (per million conjunction with TNB’s 70th anniversary to not only encourage
man-hours) a healthy lifestyle, but also to educate the public on energy
114 2,565 33.16 conservation. This event saw participation from 3,500
individuals and employees.
Lost Time Injury Frequency (LTIF) We are leveraging on technology to promote a healthy lifestyle
(per million man-hours) through the BookDoc Mobile Application. In FY2019, there
have been over 10,000 downloads by our employees. We have
also launched the BookDoc Premium Programme to encourage
employees to achieve 70 billion steps collectively. A total of
2.08
11,801 TNB employees participated in this programme.
S TAT E M E N T
1.54
1.44
1.47
Moving forward, we aim to establish Wellness Profiles for all

TNB employees. This will serve as a platform to reach out to
employees who may need support and/or help to overcome
FY2017 FPE FY2018 FY2019 their health struggles.
31.12.2017*
However, we regret to report four (4) fatalities this year, all

involving contractors for non-electrical work. As part of our
efforts to mitigate these unfortunate incidents and increase
awareness, we conducted retraining, took steps to improve
workplace safety and reviewed our safety procedures.
S TR E N GTHE NING PARTN ERSH IP S

B R I G H TE NING S URROU N D IN G COMMUNITI E S
We strive to make people’s lives better

and brighter by equipping them with
necessary and relevant skills, sustaining
the environment and enhancing their
livelihoods. We engage in a wide range
of programmes that seek to leave a
long-lasting positive impact to people
and communities.
RM40.25 million Achieved the BOLD2025 212 households Related Material Matter(s):
of total (UNITEN’s strategic plan) benefitted from • Community Development
contributions target to be top 200 by Projek Baiti • Education
and sponsorships 2021 as UNITEN was ranked Jannati and • Stakeholder Relationship
#195 for the QS Asia Program Mesra
Rakyat
At TNB, we aspire to better the lives of surrounding communities by creating positive impacts and contributing to nation-building.
Our investment in community programmes, initiatives and activities help ensure that we are delivering meaningful change for
our stakeholders and beneficiaries, and we also encourage our employees to get involved. In FY2019, we invested a total of
RM40.25 million to community programmes, based on our three beliefs for community upliftment:
Economic and Social Environment Education
We believe that capability, social, We believe that the future of our We believe that education can
and community development planet and next generation depends transform lives of not just one
supports liveability and enhances on our responsible behaviour today. individual but families and
livelihood by uplifting the economic generations.
and social quality of life.
PG. 129
SPV 2030:
RURAL ELECTRIFICATION
Key Economic Growth Goal Seventeen (17)
Activities
It has been our ongoing effort to make electricity accessible to as many Malaysians as possible, especially communities
still without a connection to the national grid. Our strategic actions to realise this commitment contribute towards Goal
17 of the UN SDGs.
We have been working closely with the Government to provide electricity infrastructure in rural areas, Orang Asli settlements,
small estates, islands and other remote villages. This partnership and corresponding initiatives are in line with SPV 2030’s
S TAT E M E N T
ST 2 in providing equitable economic opportunities by improving living conditions.
With the support of the Ministry of Rural Development (Kementerian Pembangunan Luar Bandar, KPLB), the Rural
Electrification Programme (Bekalan Elektrik Luar Bandar, BELB) aims to supply power to villages that are beyond the
operational area of local authorities. We help connect these villages to TNB’s grid lines or through off-grid alternatives,
such as solar hybrids, generator sets, mini hydro and the like, for settlements that are too remote to be connected to our
grid lines. A total of 26 villages have benefitted from this initiative to date, allowing them to have access to basic needs
for their day-to-day activities as well as to create opportunities for economic growth.
With a similar purpose, the Village Street Lighting Project (Projek Lampu Jalan Kampung, LJK), launched in 2002, ensures
that public areas in remote villages such as police stations, religious buildings and roads, are well lit at night to support
safe communal activities. Also funded by KPLB, a total of 37,835 units of street lights were installed in 7,911 villages at a
cost of RM30.76 million.
Additionally, we continued our Home Rewiring Programme that was introduced in 2017. This programme aims to rewire
underprivileged homes in Peninsular Malaysia. It is our target to rewire 1,000 homes through this initiative. To date, 93
homes have been refurbished under this programme, with RM306,399.00 spent in FY2019.
ECONOMIC AND SOCIAL TRANSFORMATION

Homes for Basic Well-being
As part of our efforts to contribute to nation-building, TNB is driven to help raise
the standard of living of marginalised communities as well as work towards sustainable
development for all.
Through the Home for the Needy programme, we provide liveable spaces that have
electricity, water and proper sanitation, by refurbishing or building new homes. In
collaboration with State Governments, the target beneficiaries from this programme
include single parents, senior citizens and individuals with disabilities. This programme
consists of the Projek Baiti Jannati (PBJ), and Program Mesra Rakyat (PMR). In
FY2019, both these programmes benefitted 181 and 31 families, respectively, through
a total contribution of approximately RM9.96 million.
Additionally, the Better Brighter Shelter (BBS) programme provides accommodation

via dormitories and transit homes for families whose members are undergoing
treatment in the hospitals. These facilities benefit folks from the not so well to do
families especially those coming from rural areas or outskirts of the capital Kuala
Lumpur. Since its inception in 2017, there are two (2) Government-owned hospitals
that are linked to this programme: Serdang Hospital and the National Heart Institute
(Institut Jantung Negara, IJN). TNB has formed partnerships with the National
Welfare Foundation (Yayasan Kebajikan Negara, YKN) for Serdang Hospital and the
IJN Foundation for IJN, to focus on upgrading the dormitories and transit homes
at each location respectively. Approximately RM3.49 million has been allocated for
this programme to be implemented from 2017 to 2021. In FY2019, we included
Hospital Melaka within this programme for the period of 2019 to 2023.
Energy Efficient Communities

TNB aspires to support communities by providing energy efficient infrastructure.
Our programme to replace High-Pressure Sodium Vapour streetlights to Light Emitting

Diode (LED) streetlights, which commenced in FY2018, aims to improve cost efficiency
in all state capital cities. LED lights are more energy and cost efficient and reduce
the risk of street lighting failure from 15% to less than 1%. To date, we have installed
326,053 lights out of the 579,080 selected approved cities across Peninsular Malaysia.
With the help of our subsidiary, TNBES, we have carried out a few initiatives to
install RE fittings in community buildings. This includes the installation of smart
self-generative solar PV systems in a newly-built dementia day-care centre, Pusat
Jagaan Harian Dementia in Perak. The installation, which supports the NEM scheme,
is expected to generate about 3,900kWh per month with approximately RM2,000
cost savings from monthly electricity bills.
PG. 131
ENVIRONMENTAL SUSTENANCE
As part of our environmental stewardship, we have been carrying out conservation
efforts to restore forest spaces.
TNB Janamanjung Sdn. Bhd. (TNBJ) has been conducting an annual mangrove planting
programme to improve the protection of coastal environments and encourage the
production of sustainable fisheries in the Janamanjung vicinity. Since 2013, over 1,000
mangrove saplings are planted per year, and to date, we have planted 9,200 saplings.
In FY2019, TNBJ’s mangrove planting initiative took place at Kampung Sungai Tiram,
Lekir, Perak with 3,200 new saplings planted. We have also expanded this mangrove
planting initiative to Group-wide, with 1,000 mangrove saplings planted in Hutan
Simpan, Pulau Ketam, Kuala Perlis.
TNB has also been a long-standing supporter in conserving firefly colonies in Malaysia.
The project was originally a collaboration with the Selangor State Government via
the Kuala Selangor District Council (Majlis Daerah Kuala Selangor, MDKS) to carry
out the project in Kampung Kuantan which has one of the largest firefly colonies in
Southeast Asia. The success of the pilot project resulted in the expansion of locations
to Kampung Yak Yah, Kemaman, Terengganu; Kampung Sungai Timun, Rembau,
Negeri Sembilan; and Kampung Dew, Taiping, Perak. In FY2019, approximately
illion a ent on t i ro ect it illion ent on re earc and
development.
To read more on our biodiversity protection efforts, please refer to the “Minimising Environmental Impacts”
section on page 117.
TRANSFORMING LIVES THROUGH EDUCATION

We make significant investments into education, whether through our educational institutions or community programmes. This
is a testament to our belief that education is an enabler of socioeconomic well-being. We aspire to create long-term positive
impacts to the lives of the current and future generations.
Our key education institutions comprise our EduHub – UNITEN, LDC and TNB ILSAS as well as our foundation, Yayasan Tenaga
Nasional (YTN).
UNITEN – the Energy University

Established in 1997, UNITEN offers opportunities to study in the field of engineering, computing and informatics, energy economics,
and business management to both local and international students at all tertiary education levels. UNITEN has also been a hub
for energy research given TNB’s position in the electricity supply industry.
S TAT E M E N T
UNITEN Highlights
6 UNITEN researchers were awarded

the prestigious Leaders in Innovation
Won 12 gold medals during Fellowship from the Royal Academy
the 30th International of Engineering, United Kingdom
Invention, Innovation &
Technology Exhibition (ITEX)
Top 5 in Malaysia for Engineering
which is the highest number
and Technology in Times Higher
amongst all participants
Education World University Rankings
2020
#195 in QS Asia University

Rankings 2020
Programme Description FY2019 Highlights

Smart UniverCity A collaboration between UNITEN and • Smart Mobility: Two (2) UNITEN electric buses were introduced
TNB to enable UNITEN to become a • Smart Energy: Optimised chiller and air handling units
living lab for smart city solutions. operation using closed-circuit television (CCTV) and video
analytics
• Smart Lifestyle: Student mobile applications (UNITENLife and
Boost) to utilise cashless payment and access latest campus-
wide announcements and updates
Research Highlights UNITEN Research Hub, comprising six • Six (6) research programmes were launched this year with
(6) entities to conduct research the aim to address national issues, for example environmental
focusing on the well-being of society. hazards and dengue hotspot areas, as well as ways to promote
current developments, like decarbonisation, EE and innovation.
TNB Integrated Learning Solution Sdn. Bhd. (ILSAS)

For more than 30 years, ILSAS has been the official training institute for TNB employees and a premier technical training institute
for other professionals in the power and utility business. ILSAS is ISO 9001:2015 certified and has adopted the United Kingdom
Accreditation Service (UKAS) standards for the quality of its training and administration. It has in place a business plan for 2019-
2030 to become a Global Leader Learning Solutions Provider.
ILSAS has Achieved Award won:

314 employees RM120
“Best Exhibitor”
consisting of 148 trainers million (Human Resources Development Fund
in revenue for
FY2019 (HRDF) Conference and Exhibition 2019)
Trained
61,067 individuals
in FY2019 We continue and pursue to maintain the following certifications
and accreditations:
Key initiatives and highlights for ILSAS in FY2019 include: • Approved by the Energy Commission (EC) to carry out
competency courses
• Training programmes related to smart meters, drones,
• Approved as a City and Guilds (UK) Centre
digital innovation amongst others, as well as those carried
out under PROTÉGÉ, Distribution Academy and Retail • Certified as an Institute of Leadership Management (ILM) (UK)
Academy Centre
• Certified as a Department of Occupational Safety and Health
• Collaboration with TNB’s Retail Division to execute capability
(DOSH) Examination Centre
development and application of knowledge (e.g. Retail
Academy and Retail Innovation) • Authorised Centre for Sustainable Energy Development
Authority (SEDA)
Yayasan Tenaga Nasional

Founded in 1993, YTN provides financial aid to various causes, organisations and communities, with the focus on YTN Scholarship
programmes. It is governed by a Board of Trustees and supported by an organisation committee and team.
YTN supported 700 outstanding

Malaysian students in FY2019
RM66.10 million through YTN Scholarships
of total investments for
YTN Scholarships in
FY2019
In FY2019,
1,862 students
have benefitted from the YTN scholarships and
convertible loans to pursue tertiary education
PG. 133
Educational Development Programmes

Promoting High-Quality Education in Schools
We believe that a significant component of improving access to quality education is
through making improvements to schools, the leadership and teaching methods, as
well as instilling a learning culture amongst the students.
Our key initiative, the Trust Schools Programme is a public-private partnership between
the Ministry of Education (MoE) and Yayasan AMIR, a non-profit foundation established
in 2011 by Khazanah Nasional. Teachers are exposed to new teaching and learning
methods that would benefit the students who will be put through an effective co-
curriculum framework.
TNB has also committed RM800,000 respectively to eight (8) schools to improve the
delivery of curriculum and enhance the school management with the view of promoting
sustainable education practices. The eight (8) schools that benefitted from this
programme are:
• Sekolah Menengah Kebangsaan Seri Samudera, Perak;

• Sekolah Kebangsaan Seri Samudera, Perak;
• Sekolah Menengah Kebangsaan Kg. Jawa, Selangor;
• Sekolah Kebangsaan Kg. Jawa, Selangor;
• Sekolah Menengah Kebangsaan Seri Paka, Terengganu;
• Sekolah Kebangsaan Paka 111, Terengganu;
• Sekolah Menengah Kebangsaan Jeli, Kelantan; and
• Sekolah Kebangsaan Jeli 1, Kelantan
Likewise, the Pintar Schools Adoption Programme assists under-performing schools with the view to improve the academic and
extracurricular performance. Initiatives such as motivational camps, tuition classes, examination seminars and workshops, and
hockey trainings are organised at the respective schools. Since 2017, TNB has adopted 18 schools nationwide under this programme.
In FY2019, up to 120 students have benefitted and TNB has contributed a total of RM2.19 million to this programme.
Advocating Equal Learning Opportunities

All students deserve the opportunity to learn, however, underprivileged students
face more barriers and challenges in the pursuit of education. As such, we strive
to help by subsidising school fees and providing supplies.
Our annual Back-to-School programme has been rebranded to Ceria ke Sekolah

and it takes place before the school year starts. TNB had the privilege to sponsor
school supplies, such as school uniforms, bags, shoes and stationeries. This
S TAT E M E N T
programme caters specifically to primary school students from low-income families.
In FY2019, 6,100 students benefitted in 37 locations nationwide.
Launched in 2018, TNB also carries out the B40 Programme with a total of 300
students being adopted to date. This programme is targeted for secondary school
students, specifically those in Form 3, from B40 families. Three (3) schools in Kuala
Lumpur are our beneficiaries: Sekolah Menengah Kebangsaan Bukit Bandaraya,
Sekolah Menengah Kebangsaan Bangsar and Sekolah Menengah Kebangsaan Seri
Pantai. From 2018 to 2020, each student will receive RM1,500 a year and
sponsorships to attend self-development programmes organised by TNB, including
motivational camps and outreach programmes. In addition, we have launched
the Better Brighter Vision programme in partnership with Tun Hussein Onn Eye
Hospital to provide eye screening procedures and corrective glasses for primary
and secondary students from B40 families that need this support. We have
allocated a total of RM67,000 for this programme, which has benefitted 600
students from five (5) schools in Kuala Lumpur.
SPV 2030:
Key Economic Growth Goal Eight (8)
MY BRIGHTER FUTURE Activities
We believe in the immense power of education as a

catalyst for economic empowerment and social mobility.
Education and leadership development largely form our
efforts in social investments, in line with our commitment
to realise Goal 8 of the UN SDGs by improving employability
of the marginalised youths through education. In addition,
this resonates with the SPV 2030’s ST 2 to facilitate
economic growth in the long run.
One of TNB’s key initiative in uplifting marginalised youths

is the Dermasiswa My Brighter Future (MyBF) under YTN.
This programme was established to promote equitable
access to tertiary education, particularly for families in
the B40 bracket registered under the eKasih scheme.
In FY2019, MyBF has awarded scholarships to 3,564 students who are pursuing their tertiary studies in Science, Technology,
Engineering and Mathematics (STEM) as well as Technical and Vocational Education and Training (TVET) subjects at seven
(7) public universities, community colleges and polytechnic institutions in Malaysia. The MyBF scholarship covers tuition fees,
boarding and living expenses throughout the duration of their studies. This enables students to have some financial security,
allowing them to focus on their studies and future careers.
MyBF not only provides financial aid but also the opportunity for students to develop the necessary skills to prepare them
for future success. YTN conducts multiple development programmes for MyBF recipients throughout the year. These
programmes allow students to sharpen their professional and entrepreneurial skills, as well as facilitate networking sessions
between scholars and industry leaders.
Muhamad Akidd Mohd Sharif, a recipient of MyBF scholarship enrolled in BSc Electrical Engineering Technology at Universiti
Teknikal Malaysia Melaka (UTeM), was the first batch of MyBF beneficiaries at UTeM. “I feel very fortunate to have been
offered the MyBF scholarship. I am now motivated to finish my studies and to realise my dream of becoming a professional
engineer. I hope as I graduate, I will be able to support my family and empower my community by sharing my experiences.
I wish to continue YTN’s legacy by establishing an NGO that helps underprivileged youths gain access to tertiary education
and provides opportunities to the less fortunate communities to achieve socio-economic growth.”
At TNB, we believe education is an important tool in our efforts for sustained economic growth and nation-building. Through
YTN, we have invested a total of up to RM21.22 million in FY2019 MyBF programme.
Well Rounded Education through Sports

We recognise that success is not only defined by academic excellence. It is important
for individuals to develop based on their strengths and interests. Therefore, we have
reached out to support students with an interest in sports, specifically hockey. We
contribute towards developing individuals who display great potential in this game
through the National Hockey Development and Thunderbolts Programme, whereby we
adopt sports schools and coach promising individuals. They are mentored by former
national one-line hockey players, who are also TNB employees. Since 2006, several
national players are amongst the alumni of this programme.
The schools adopted under this programme are:
• Sekolah Sukan Bukit Jalil, Selangor;

• Sekolah Sukan Tunku Mahkota Ismail, Johor;
• Sekolah Menengah Kebangsaan Seberang, Temerloh, Pahang; and
• Sekolah Menengah Kebangsaan Anderson, Ipoh, Perak.
In FY2019, TNB sponsored RM4 million to this programme for various leagues and
championships organised by the Malaysian Hockey Confederation. Additionally, up to
RM2 million was contributed to workshops for TNB coaches, allowance for TNB employees
involved in the programme and other activities to promote hockey in Malaysia.
PG. 135
Notice of the
30th Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the Thirtieth Annual General Meeting (30 th AGM) of Tenaga
Nasional Berhad (“TNB” or “the Company”) will be held on Tuesday, 30 June 2020 at 10.00 a.m.
at Dewan Serbaguna, Kompleks Sukan TNB, Jalan Pantai Baru, 59200 Kuala Lumpur, Malaysia to
transact the following businesses:-
AGENDA
AS ORDINARY BUSINESS:
1. To receive the Audited Financial Statements for the Financial Year ended 31 December
2019 together with the Reports of the Directors and Auditors thereon.
Please refer to Explanatory Note (a)
2. To re-elect the following Directors who retire by rotation in accordance with Clause 64(1)
of the Company’s Constitution and being eligible offer themselves for re-election:
(i) Amran Hafiz bin Affifudin Ordinary Resolution 1
(ii) Noraini binti Che Dan Ordinary Resolution 2
Gee Siew Yoong, who holds office until the conclusion of the 30th AGM, has expressed her intention
of not to seek for re-election and shall retain office until the conclusion of the 30th AGM.
Please refer to Explanatory Note (b)
3. To re-elect Dato’ Cheok Lay Leng who was appointed to the Board and retires in accordance
with Clause 63(2) of the Company’s Constitution and being eligible offer himself for re-election. Ordinary Resolution 3
Please refer to Explanatory Note (b)
4. To approve the payment of the following Non-Executive Directors’ fees from the 30th AGM
until the next Annual General Meeting (AGM) of the Company:
(i) Director’s fee of RM30,000.00 per month for the Non-Executive Chairman
(ii) Director’s fee of RM20,000.00 per month for each Non-Executive Director
(iii) Director’s fee of RM7,000.00 and RM5,000.00 per month for TNB Subsidiaries
Category I and II respectively to Non-Executive Chairman. Ordinary Resolution 4
Please refer to Explanatory Note (c)
5. To approve the payment of benefits payable to the Non-Executive Directors (excluding

Non-Executive Directors’ fees) amounting to RM1,885,100.00 from the 30th AGM until the
next AGM of the Company. Ordinary Resolution 5
Please refer to Explanatory Note (c)
6. To re-appoint Messrs PricewaterhouseCoopers PLT, having consented to act, as Auditors of

the Company, to hold office until the conclusion of the next AGM and to authorise the
Directors to fix their remuneration. Ordinary Resolution 6
Please refer to Explanatory Note (d)
AS SPECIAL BUSINESS:
7. Proposed Grant and Allotment of Shares to Datuk Seri Amir Hamzah bin Azizan.
“THAT the Board (save for Datuk Seri Amir Hamzah bin Azizan) be and is hereby authorised
at any time and from time to time, to cause or procure the offering and the allocation to
Datuk Seri Amir Hamzah bin Azizan, the President/Chief Executive Officer of the Company,
S H A R E H O L D ER S ’
I N F O R M AT I O N
of up to 900,000 ordinary shares in TNB (TNB Shares) under the Long Term Incentive Plan
for the Eligible Employees of TNB and Its Subsidiaries and Executive Directors of TNB (LTIP)
as they shall deem fit, which will be vested to him at a future date, subject always to such
terms and conditions of the By-Laws of LTIP.”
“AND THAT the Board be and is hereby authorised to allot and issue new TNB shares
pursuant to the LTIP to him from time to time pursuant to the vesting of his Grant.” Ordinary Resolution 7
Please refer to Explanatory Note (e)
8. To transact any other business of which due notice shall have been given in accordance
with the Companies Act 2016 (Act).
Notice of the 30th Annual General Meeting
FURTHER NOTICE IS HEREBY GIVEN THAT for the purpose of determining a member who shall be entitled to attend this
30th AGM, the Company shall be requesting Bursa Malaysia Depository Sdn. Bhd. (Bursa Depository) in accordance with Clause
45(2) of the Company’s Constitution and Section 34(1) of the Securities Industry (Central Depositories) Act 1991 (SICDA) to issue
a General Meeting Record of Depositors (ROD) as at 23 June 2020. Only a depositor whose name appears on the ROD as at
23 June 2020 shall be entitled to attend the said Meeting or appoint proxy/proxies to attend and/or vote on his/her behalf.
BY ORDER OF THE BOARD
NORAZNI BINTI MOHD ISA

(LS 0009635)
(SSM Practicing Certificate No. 201908000492)
Company Secretary
Kuala Lumpur
10 April 2020
EXPLANATORY NOTES ON ORDINARY BUSINESSES:
(a) Agenda No. 1 is meant for discussion only as the provision of Amran Hafiz bin Affifudin, Appointed Director by Khazanah
Section 340(1)(a) of the Act does not require shareholders’ Nasional Berhad, the major shareholder of TNB, is also standing
approval for the Audited Financial Statements. As such, it is for re-election.
not put forward for voting.
The Board on 28 February 2020, had approved on the
(b) Ordinary Resolutions 1 to 3 – Proposed Re-election of Directors appointment of Dato’ Cheok Lay Leng, as Independent
in accordance with Clauses 64(1) and 63(2) of the Company’s Non-Executive Director with effect from 2 March 2020. With
Constitution his expertise/experience that he may bring to the Board, shall
further strengthen the Board composition and dynamics.
Clause 64(1) of the Company’s Constitution provides among
others, that one-third (1/3) of the Directors at the time being Gee Siew Yoong has expressed her intention of not to seek
of whom have been longest in office shall retire by rotation for re-election and shall retain office until the conclusion of
at the AGM of the Company and shall be eligible for re-election. the Company’s 30th AGM.
Clause 63(2) of the Company’s Constitution provides among The BNRC and Board hereby recommend for the re-election
others, that the Directors shall have power at any time and of each Director who is retiring at the 30th AGM.
from time to time to appoint any other person to be a Director
(c) Ordinary Resolutions 4 to 5 – Non-Executive Directors’
of the Company either to fill a casual vacancy or as an addition
Remuneration
to the existing Directors. Any Director so appointed shall hold
office only until the next following AGM of the Company and Section 230(1) of the Act stipulates among others that the
shall then be eligible for re-election. fees and any benefits payable to the Directors of a listed
company and its subsidiaries shall be approved at a general
The Board Nomination and Remuneration Committee (BNRC)
meeting. As agreed by the Board, the shareholders’ approval
and Board have conducted an assessment on the independence
shall be sought at the 30th AGM on the Non-Executive Directors’
of all Independent Directors including Noraini binti Che Dan
remuneration of the Company and TNB Subsidiaries
and are satisfied that she had complied with the independence
Category I and II through two (2) separate resolutions as follows:
criteria as required by the Main Market Listing Requirements
of Bursa Malaysia Securities Berhad (MMLR) and continues to (i) Ordinary Resolution 4 on the payment of Non-Executive
bring independent and objective judgment to the Board Directors’ fees for the Non-Executive Chairman and each
deliberations. Non-Executive Director from the 30th AGM until the next
AGM of the Company.
The BNRC and Board have also considered the Board Evaluation
including the Self and Peer Assessment results of Noraini binti (ii) Ordinary Resolution 5 on the payment of benefits
Che Dan and Amran Hafiz bin Affifudin and agreed that they (excluding Non-Executive Directors’ fees) to the Non-Executive
have met the Board’s expectation in terms of experience, Directors from the 30th AGM until the next AGM of the
expertise, integrity, competency, commitment and individual Company.
contribution by continuously performing their duties diligently
as Directors of the Company.
PG. 137
The last increment of the Non-Executive Directors remuneration/benefits was made in 2013. The Board on 11 April 2018, engaged
Willis Towers Watson (WTW) to conduct a holistic and independent review of the Non-Executive Directors’ Remuneration with the
aim to determine its market competitiveness and alignment with the latest regulations/corporate governance guidelines in Malaysia.
Overall, TNB is at par with the market, for most of the compensation elements. WTW recommended that the existing remuneration
policy remains and to be reviewed in one (1) to two (2) years time to stay relevant with the market.
The proposed Ordinary Resolution 4 for the payment of fees to the Non-Executive Directors of the Company and its subsidiaries
from the 30th AGM until the conclusion of the next AGM is tabled herewith in line with the provision of the Act and best practices
of corporate governance to ensure full disclosure.
The existing remuneration policy of Non-Executive Directors in TNB and its subsidiaries is as follows:
TNB Board TNB Subsidiaries
Non-Executive Non-Executive
Description Chairman Directors Chairman Directors
Monthly fixed fees RM30,000 RM20,000 Category I Category I

per month per month – RM7,000 – RM5,000
Category II Category II
– RM5,000 – RM3,000
* Meeting Allowances (per meeting)
(i) Board RM2,500 RM2,000 RM1,500 RM1,000
(ii) Board Committees RM2,000 RM1,500 RM1,000 RM800
Benefits Medical, Business Peripherals, Electricity

Bills, Travelling & Telecommunication
and other claimable benefits
* subject to not more than three (3) payments in a month.
In determining the estimated total amount of benefits payable, EXPLANATORY NOTES ON SPECIAL BUSINESS:
the Board has considered various factors including the number
(e) Ordinary Resolution 7 – Proposed Grant and Allotment of
of scheduled and special meetings for the Board, Board
Shares to Datuk Seri Amir Hamzah bin Azizan
Committees and boards of subsidiaries along with the number
of Non-Executive Directors involved. The proposed Ordinary Resolution, if passed, is to empower
the Directors at any time and from time to time to cause or
Payment of Non-Executive Directors’ benefits will be made by
procure the offering and the allocation to Datuk Seri Amir
the Company and its subsidiaries on a monthly basis and/or
Hamzah bin Azizan, the President/Chief Executive Officer of
as and when incurred, provided that the proposed Ordinary
the Company, of up to 900,000 TNB Shares as they shall
Resolution 5 be passed at the 30th AGM. The Board is of the
deem fit, which will be vested to him at a future date, subject
view that it is fair and justifiable for the payment of benefits
always to such terms and conditions of the By-Laws of LTIP,
to the Non-Executive Directors be made as and when incurred,
which was approved at the Extraordinary General Meeting of
after the Non-Executive Directors have discharged their
the Company held on 18 December 2014.
responsibilities and rendered their services to the Company.
The Proposed Grant is the maximum number of TNB Shares
Details of the Directors’ Remuneration for the Financial Year
that may be vested to Datuk Seri Amir Hamzah bin Azizan
ended 31 December 2019 are enumerated on page 41 of the
subject to the stretched individual and Company performance
Corporate Governance Overview Statement of the Corporate
targets set by the Board Long Term Incentive Plan Committee
Governance & Financial Statements 2019.
(BLTIP) and Board, upon the vesting exercise. The BLTIP and
(d) Ordinary Resolution 6 – Re-appointment of Auditors Board (save for Datuk Seri Amir Hamzah bin Azizan) have
deliberated on the proposal and concurred that the proposed
Based on the External Auditors Assessment Result for the
maximum allowable number of TNB Shares allocation is fair
Financial Year under review, the Board Audit Committee and
and reasonable, to link the interest of the Executive Director
S H A R E H O L D ER S ’
Board are satisfied with the quality of service, adequacy of

I N F O R M AT I O N
with the long term shareholders’ value enhancement and long

resources provided, communication, independence, objectivity
term success of the Company.
and professionalism demonstrated by the External Auditors
in carrying out their functions.
Additional Information on Ordinary Resolutions 1 to 3
Being satisfied with the External Auditors’ performance, the
Additional information on the particulars of the retiring Directors,
Board recommends their re-appointment for shareholders’
as required under Appendix 8A of the MMLR is detailed out in the
approval at the forthcoming AGM.
Statement Accompanying Notice of 30th AGM of this Integrated
Annual Report.
Notice of the 30th Annual General Meeting
NOTES:
1. A member of a Company shall be entitled to appoint another person as his/her proxy to exercise all or any of his/her rights to
attend, participate, speak and vote at a meeting of members of the Company, in accordance with Section 334(1) of the Act.
2. Where a member is an authorised nominee as defined in accordance with the provisions of the SICDA, it may appoint up to two
(2) proxies in respect of each Securities Account it holds with ordinary shares in the Company standing to the credit of the said
Securities Account.
3. A member entitled to attend and vote at the Meeting is entitled to appoint not more than two (2) proxies to attend and vote
on his/her behalf. Where a member appoints two (2) proxies, the appointments shall be invalid unless the proportion of the
shareholdings to be represented by each proxy is specified.
4. The instrument appointing a proxy/Proxy Form shall be in writing under the hand of the appointer or of his attorney duly appointed
under a power of attorney. Where the instrument appointing a proxy/Proxy Form is executed by a corporation, it shall be executed
either under its common seal or under the hand of any officer or attorney duly appointed under a power of attorney.
5. A corporation which is a member may by resolution of its Directors or other governing body authorise such person as it thinks
fit to act as its representative at the Meeting in accordance with Clause 51 of the Company’s Constitution.
6. Duly completed Proxy Form must be deposited to the Boardroom Share Registrars Sdn. Bhd., 11 th Floor, Menara Symphony,
No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia not less than 24 hours before
the time appointed for the taking of the poll or no later than 29 June 2020 at 12.00 p.m.
7. Alternatively, you may lodge the Proxy Form via the Boardroom Smart Portal at www.boardroomlimited.my before the abovementioned
cut-off time. For further details on proxy lodgement, kindly refer to the Annexure of the Administrative Details of 30th AGM.
8. Pursuant to Paragraph 8.29A of the MMLR, voting at the 30th AGM of the Company will be conducted by poll.
Registration of Members/Proxies
Registration of members/proxies attending the Meeting will start from 7.00 a.m. on the day of the Meeting and shall remain open
until such time as may be determined by the Chairman of the Meeting. At the closure thereof, no person will be allowed to register
for the Meeting nor enter the Meeting venue. Members/proxies are required to produce identification documents for registration.
Statement Accompanying Notice

of the 30th Annual General Meeting
(Pursuant to Paragraph 8.27(2) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad)
The Directors who are retiring by rotation in accordance with Clause 64(1) of the Company’s Constitution and seeking
for re-election:
(i) Amran Hafiz bin Affifudin
(ii) Noraini binti Che Dan
The Director who was appointed to the Board and is retiring in accordance with Clause 63(2) of the Company’s
Constitution and seeking for re-election:
(i) Dato’ Cheok Lay Leng
The profiles of the above Directors are set out in Board of Directors’ Profile on pages 2 to 12 of the Corporate Governance &
Financial Statements 2019.
Save for Datuk Seri Amir Hamzah bin Azizan and Dato’ Roslina binti Zainal, none of the above Directors has any interest in the
securities of the Company or its Subsidiaries. The details of their shareholdings in the Company is set out in the Directors’ Report
on page 67 of the Corporate Governance & Financial Statements 2019.
Proxy Form
30TH ANNUAL GENERAL MEETING
(Before completing the form, please refer to the notes overleaf)
Number of Ordinary Share(s) held CDS Account No.
– –
I/We,
(FULL NAME OF SHAREHOLDER AS PER NRIC/CERTIFICATE OF INCORPORATION IN CAPITAL LETTERS)
NRIC No./Passport No./Company No. of

(FULL ADDRESS)
(FULL ADDRESS)
Telephone No. being a Member of Tenaga Nasional Berhad, hereby appoints:
FULL NAME OF PROXY AS PER NRIC IN CAPITAL LETTERS NO. OF SHARES PERCENTAGE (%)
Proxy
1 or failing him/her
NRIC No./Passport No.:
Proxy
2 or failing him/her
NRIC No./Passport No.:
TOTAL 100%
* the Chairman of the Meeting, as my/our proxy, to attend and vote for me/us and on my/our behalf at the 30TH ANNUAL GENERAL MEETING
(30TH AGM) of TENAGA NASIONAL BERHAD (“TNB” or “the Company”) to be held at Dewan Serbaguna, Kompleks Sukan TNB, Jalan Pantai
Baru, 59200 Kuala Lumpur, Malaysia on TUESDAY, 30 JUNE 2020 at 10.00 a.m. and/or at any adjournment thereof.
My/Our proxy is to vote as indicated below:
NO. RESOLUTIONS
FOR AGAINST
ORDINARY BUSINESS
Re-election of the following Directors who retire in accordance with Clause 64(1) of the Company’s Constitution:
1. Amran Hafiz bin Affifudin ORDINARY RESOLUTION 1
2. Noraini binti Che Dan ORDINARY RESOLUTION 2
Re-election of the following Director who retire in accordance with Clause 63(2) of the Company’s Constitution:
3. Dato’ Cheok Lay Leng ORDINARY RESOLUTION 3
4. Approval for payment of the following Non-Executive Directors’ fees from the ORDINARY RESOLUTION 4
30th AGM until the next Annual General Meeting (AGM) of the Company:
(i) Director’s fee of RM30,000.00 per month for the Non-Executive Chairman
(ii) Director’s fee of RM20,000.00 per month for each Non-Executive Director
(iii) Director’s fee of RM7,000.00 and RM5,000.00 per month for TNB Subsidiaries
Category I and II respectively to Non-Executive Chairman
5. Approval for payment of benefits to the Non-Executive Directors (excluding ORDINARY RESOLUTION 5
Non-Executive Directors’ fees) from the 30th AGM until the next AGM of the
Company
6. Re-appointment of Messrs PricewaterhouseCoopers PLT as Auditors of the ORDINARY RESOLUTION 6

Company and to authorise the Directors to fix their remuneration
SPECIAL BUSINESS
7. Proposed Grant and Allotment of Shares to Datuk Seri Amir Hamzah bin ORDINARY RESOLUTION 7
Azizan
Please indicate with an “X” in the box provided for each Resolution as how you wish your votes to be cast. If no voting instruction is given,
the proxy(ies) is/are hereby authorised to vote or abstain from voting at his/her/their discretion.
* If you do not wish to appoint the Chairman of the Meeting as your proxy/one (1) of your proxies, please strike out the word “the Chairman
of the Meeting” and insert the name(s) of the proxy(ies) you wish to appoint in the blank spaces provided.
Dated this day of , 2020

Signature(s) or Common Seal of Member(s)
NOTES:
1. A member of a Company shall be entitled to appoint another person as his/her proxy to exercise all or any of his/her rights to attend, participate, speak and
vote at a meeting of members of the Company in accordance with Section 334(1) of the Companies Act 2016.
2. Only members whose names appear in the General Meeting Record of Depositors as at 23 June 2020 shall be entitled to attend the Meeting or appoint proxy(ies)
to attend and/or vote on their behalf.
3. Where a member is an authorised nominee as defined in accordance with the provisions of the Securities Industry (Central Depositories) Act 1991, it may appoint
up to two (2) proxies in respect of each Securities Account it holds with ordinary shares in the Company standing to the credit of the said Securities Account.
4. A member entitled to attend and vote at the Meeting is entitled to appoint not more than two (2) proxies to attend and vote on his/her behalf. Where a member
appoints two (2) proxies, the appointments shall be invalid unless the proportion of the shareholdings to be represented by each proxy is specified.
5. The instrument appointing a proxy/Proxy Form shall be in writing under the hand of the appointer or of his attorney duly appointed under a power of attorney.
Where the instrument appointing a proxy/Proxy Form is executed by a corporation, it shall be executed either under its common seal or under the hand of any
officer or attorney duly appointed under a power of attorney.
6. A corporation which is a member may by resolution of its Directors or other governing body authorise such person as it thinks fit to act as its representative at
the Meeting in accordance with Clause 51 of the Company’s Constitution.
7. Duly completed Proxy Form must be deposited to the Boardroom Share Registrars Sdn. Bhd., 11th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim,
Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia not less than 24 hours before the time appointed for the taking of the poll or no later than
29 June 2020 at 12.00 p.m.
8. Alternatively, you may lodge the Proxy Form via the Boardroom Smart Portal at www.boardroomlimited.my before the abovementioned cut-off time. For further
details on proxy lodgement, kindly refer to the Annexure of the Administrative Details of 30th AGM.
9. Pursuant to Paragraph 8.29A of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, voting at the Meeting will be conducted by poll.
10. Registration of members/proxies attending the Meeting will start from 7.00 a.m. on the day of the Meeting and shall remain open until such time as may be
determined by the Chairman of the Meeting. At the closure thereof, no person will be allowed to register for the Meeting nor enter the Meeting venue. Members/
proxies are required to produce identification documents for registration.
1. Fold Here
AFFIX
STAMP
BOARDROOM SHARE REGISTRARS SDN. BHD.

11th Floor, Menara Symphony
No. 5, Jalan Prof. Khoo Kay Kim
Seksyen 13, 46200 Petaling Jaya
Selangor Darul Ehsan
Malaysia
2. Fold Here To Seal

TENAGA NASIONAL BERHAD 199001009294 (200866-W)
No. 129, Jalan Bangsar, 59200 Kuala Lumpur
Tel: +603 2107 4515 Fax: +603 2107 1086 Email: [email protected]
www.tnb.com.my

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Tena ga N as i on al B erh ad (TN B)

Inside This Report

KEY MESSAGES 02 065 Six-Year Group Growth Summary

SCO PE AND BOU N D A R Y OF R E POR T I N G

REPORTING FRAMEWORK TARGETED READERS FORWARD-LOOKING STATEMENTS

OUR STRATEGY OUR CAPITALS

FINANCIAL CAPITAL INTELLECTUAL CAPITAL

MANUFACTURED CAPITAL HUMAN CAPITAL

CORP ORAT E GOVERNANCE &

OUR REPORTING SUITE COMPRISES

Disclosures Reporting Framework

Integrated Report (IR) 2019 • MCCG by Securities Commission

TO BE AMONG THE LE ADING

WE ARE COMMIT TED TO E XCELLENCE IN O UR

TNB is the largest electricity utility in Malaysia and a leading

have grown from strength to strength to become a utility

INDUSTRIAL COMMERCIAL RESIDENTIAL

INTERNATIONAL RATING AGENCY OTHERS INDUSTRIAL

OUR SHAREHOLDING STRUCTURE

Employees Provident Fund Board 3.0% INDUSTRIAL

100% 100% 100% 100%

50% SEATRAC SDN. BHD. (Dormant)

76% PERUSAHAAN OTOMOBIL ELEKTRIK (MALAYSIA)

YAYASAN TENAGA NASIONAL

RETIREMENT BENEFIT TRUST FUND

100% TNB TRANSMISSION NETWORK SDN. BHD.

SABAH 100% TNP CONSTRUCTION SDN. BHD.

SOUTHERN EASTERN SABAH POWER CONSORTIUM

TENAGA MIDDLE GENERATION 70% SEPANG POWER SDN. BHD.

The information is as at 17 March 2020.

NUMBER OF POWER PLANTS MAXIMUM DEMAND ON 18 APRIL 2019

47 Plant s 18, 566 MW

LENGTH OF DOMESTIC TRANSMISSION NETWORK

for wholly-owned power plants in Peninsular Malaysia DOMESTIC TRANSMISSION SUBSTATIONS

RELIABILITY SYSTEM MINUTES

for wholly-owned power plants in Peninsular Malaysia

ZERO Load Los s for Peninsular Malaysia

99.78 % for Peninsular Malaysia

LENGTH OF DOMESTIC DISTRIBUTION NETWORK TOTAL NUMBER OF CUSTOMERS

683,008 Circuit-KM 9. 25 Million

DISTRIBUTION SUBSTATIONS UNITS SOLD IN 2019

83, 467 Unit s 116, 525. 41 GWh

NUMBER OF DISTRIBUTION TRANSFORMERS OPERATED

116, 525. 41 GWh

48 .13 min/cus t / yr for Peninsular Malaysia

TENAGA WIND VENTURES UK LTD

SABIYA POWER GENERATION &

1,365MW DOHA WEST PLANT 1,102MW

LIBERTY POWER LTD

• Coal • Natural Gas 1,223MW

1,190MW PT PLN (PERSERO)

Tan Sri Leo’s vast industry experience and knowledge,

We will remember him fondly as TNB’s longest-serving

Thank you, Tan Sri Leo Moggie.

TAN SRI AHMAD BAD RI M O HD Z AHIR

Chairman’s Letter to Shareholders

In terms of education, we reached out

We are excited to be a part of the

I would like to thank the Government