TNB Iar 2021

INTEGRATED
ANNUAL REPORT
2021
CO V E R
R AT I O N A L E
The cover for TNB’s Integrated

Annual Report 2021 is a bold
statement of our aspiration to
become a net zero company by
2050. Our commitment to this
journey is non-negotiable, and
we will reach our destination
without compromising on our
promise to build a better world
and brighten lives. Our cover
for this year’s report feature a
stylised relief that represents
our pathway towards net zero.
As the underlying image shows,
we believe we will secure a
greener, more sustainable world
at our journey’s end. This is a
restatement of our commitment
to sustainability and a
reaffirmation of our belief that a
greener future is a better future
for one and all. Our journey to
net zero starts today and ends
with a brighter tomorrow.
Scan this QR code to

find out more about
TNB from our website.
INSIDE
THIS REPORT
CREATING VALUE
THROUGH STRONG FINANCIAL
WE ARE TNB GOVERNANCE STATEMENTS
06 We Are TNB 58 Our Board at a Glance 182 Directors’ Report

07 Our Investment Case 59 Board of Directors’ Profile 187 Consolidated Statement of Financial Position
• Financial Highlights 72 Company Secretary’s Profile 189 Consolidated Statement of Profit or Loss
• Group Quarterly Financial Performance 73 Senior Management Profile 190 Consolidated Statement of Comprehensive
• Six-Year Group Financial Summary 81 Organisational Structure Income
• Six-Year Group Growth Summary 82 Chairman’s Introduction to 191 Consolidated Statement of Changes in Equity
• Simplified Group Statement of Corporate Governance 194 Consolidated Statement of Cash Flows
Financial Position 84 Principle A: 198 Notes to the Financial Statements
• Statement of Value Added Board Leadership and Effectiveness 341 Statement by Directors
• Distribution of Value Added 98 Principle B: 341 Statutory Declaration
Effective Audit and Risk Management
• Core Revenue 342 Independent Auditors’ Report
108 Principle C:
• Our Credit Ratings
Integrity in Corporate Reporting and
• Shareholding Information Meaningful Relationship with Stakeholders
• Generation Fuel Mix 118 Statement on Risk Management and Internal
Control
• Our Scorecard ADDITIONAL
16 Corporate Structure 125 Additional Compliance Information INFORMATION
18 Our International Footprint
350 Corporate Information

351 Statistics of Shareholdings
354 Net Book Value of Land and Buildings
FROM SUSTAINABILITY 355 Notice of the 32nd Annual General Meeting
OUR LEADERSHIP STATEMENT 358 Statement Accompanying Notice of the 32nd
Annual General Meeting
22 Chairman’s Letter to Shareholders 128 About This Statement • Proxy Form
26 President/Chief Executive Officer’s Review 130 Sustainability at TNB
• TNB’s Sustainability Strategy
• Strong Leadership and Governing
Responsibly
• What Matters Most
CREATING
CONTINUED VALUE • Linking Performance to Global Agenda
• ESG Ratings
• Awards & Recognition
32 The Market Landscape
141 Building the Nation
34 Our Value Creation Model
• Sustainable Infrastructure and Ecosystem
36 Strategic Review NAVIGATION ICONS
• Sustainable Business Expansion
• Future Generation Sources
• Ensuring Reliable Electricity Supply The following icons are used in this
• Grid of the Future
• Customer Centricity Report to indicate where additional
• Winning the Customer
• Sustainable Supply Chain information can be found.
• Future Proof Regulations
151 Environmental Sustainability
44 Mapping Our Performance Against
• Our Response to Climate Change This icons tells you where you
the Capitals
• Minimising Our Environmental Impact
• Financial Capital can find related information in
164 Empowering Our People and Nurturing Talent
• Manufactured Capital this Report.
• Employment Management & Growth
• Natural Capital
173 Brighter Community
• Intellectual Capital This icon tells you where you can
• Contributing to Community Development
• Human Capital find more information online.
• Social and Relationship Capital • Engaging Indigenous People
ABOUT THIS REPORT We Are TNB From Our Leadership Creating Continued Value
Pages 02 - 03
ABOUT THIS REPORT
This Integrated Annual Report Our Capitals

Our value creation activities consume capitals or resources in order to produce value
provides a comprehensive and for intended stakeholders in line with our strategic objectives. These capitals are
balanced account of the activities finite resources, and we make trade-offs between them when deciding to deploy or
sustain our reserves of these capitals. TNB’s capitals are as detailed below:
and prospects of Tenaga Nasional
Berhad (TNB) for the fiscal year
ended 31 December 2021. It aims
to give our stakeholders, including Financial Capital
our shareholders, investors and Funds that are available to TNB to implement our value creation
activities and comprise our shareholders' equity, borrowings
customers, detailed insight into our
and operational income
value creation activities in terms of
the value we create, the trade-offs
in the capitals that we consume, our Manufactured Capital
past and future operating context, Physical assets and infrastructure that are used in the course of
our business operations, such as our power plants, transmission
and our plans and prospects going
and distribution networks, office premises and vehicles
forward.
Natural Capital
Renewable and non-renewable natural resources used by TNB
to generate electricity such as coal, wind, natural gas, liquefied
natural gas, water and sunlight
Intellectual Capital
Intellectual property generated from research and development
(R&D) activities, and investments into new technologies and
innovations
In 2021, TNB announced its intent
to become a net zero company by
2050. This document discloses the
pathway that we will take to get us
Human Capital
there, as well as the sustainability Our people and talent who are responsible for running all aspects
and governance initiatives and of our operations, from our ground staff at our generation plants
improvements we have made to set to our administrative officers and senior leaders
us on our way.
Social and Relationship Capital

The relationships of trust we have with our stakeholders, and the
social approbation created through the reliable and responsible
performance of our roles
02 TENAGA NASIONAL BERHAD • Integrated Annual Report 2021

Creating Value Through Strong Governance Sustainability Statement Financial Statements Additional Information
ABOUT THIS REPORT
Materiality Management Discussion & Analysis

The information disclosed in this document has been deemed Although we have not included a Management Discussion & Analysis (MD&A) in this report,
material to TNB vis-a-vis our material matters. Material matters key components of the MD&A can be found in the following:
are defined as topics that have significant environmental,
social, economic and governance impact on us, and as those Topic
that facilitate stakeholders assessments of us. Our material
matters are derived from a materiality assessment process OVERVIEW OF OUR Pages 6, 18-19 for more information
involving both internal and external stakeholders. For more BUSINESS & OPERATIONS
information about our materiality assessment, please turn to
page 133 of this document.
OUR STRATEGY Pages 36-55 for more information
Reporting Framework
The preparation of this integrated annual report was guided
by the International Integrated Reporting Council’s <IR> DISCUSSION OF OUR FINANCIAL Pages 23 and 27 for more information
Framework. In addition, this report also complies with and is RESULTS AND FINANCIAL POSITION
guided by the following:
REVIEW OF Pages 26-30 for more information

the Main Market Listing Requirements of OPERATING ACTIVITIES
Bursa Malaysia Securities Berhad (MMLR);
the Companies Act 2016;
ANTICIPATED OR Pages 118-124 for more information
the Malaysian Code on Corporate Governance KNOWN RISKS
2021 (MCCG);
the Corporate Governance Guide (4th Edition)
issued by Bursa Malaysia; OUR PROSPECTS Pages 25 and 30 for more information
the Malaysian Financial Reporting Standards

(MFRS); and
the International Financial Reporting Standards (IFRS). Verification and Approval
Our Board acknowledges its responsibility in ensuring the integrity of this Integrated Report,
Scope and Boundary which in its opinion addresses issues that are material to the Group’s ability to create value and
This report covers the activities of TNB and its subsidiaries, fairly presents the integrated performance of TNB.
or “the Group”, for the fiscal year ended 31 December 2021
(FY2021). All material information, including quantitative and Feedback
qualitative data, are reported as at 31 December 2021 unless Our integrated annual report is a work in progress, and any feedback or suggestions for
otherwise stated. In cases where information for FY2021 was improvements in relation to this report is welcome. Please direct all comments to us via email
not available, the most up-to-date material is provided. at cosec@tnb.com.my.
Forward-looking Statements Supplementary Report

Our integrated annual report contains forward-looking
Report Disclosure
statements relating to future expectations. These statements
are premised on current assumptions and circumstances that Our Sustainability Report details the manner in which
are contingent and subject to change. Hence, these forward- Sustainability TNB creates value for our stakeholders, focusing on
looking statements are, by their nature, uncertain and actual Report our environmental, social, economic and governance
results may differ materially from the outcomes expressed or imperatives.
implied by these forward-looking statements.
Reporting Framework
Targeted Readers
This report intends primarily to provide clarity and
• Global Reporting Initiative (GRI) Standards: Core option
information to our stakeholders, specifically our shareholders
• GRI Electric Utilities Sector Disclosures
and investors. Nevertheless, the information contained
• Bursa Malaysia’s MMLR
within this report may likewise be useful to other readers who
• Bursa Malaysia’s Sustainability Reporting Guide 2nd Edition
wish to learn more about our value creation activities and our
• Task Force on Climate-related Financial Disclosures (TCFD) framework
business operations.
• United Nations Sustainable Development Goals (UN SDGs)
TENAGA NASIONAL BERHAD • Integrated Annual Report 2021 03

Section
01
WE ARE TNB
06 We Are TNB
07 Our Investment Case
• Financial Highlights
• Group Quarterly Financial Performance
• Six-Year Group Financial Summary
• Six-Year Group Growth Summary
• Simplified Group Statement of
Financial Position
• Statement of Value Added
• Distribution of Value Added
• Core Revenue
• Our Credit Ratings
• Shareholding Information
• Generation Fuel Mix
• Our Scorecard
16 Corporate Structure
18 Our International Footprint
ABOUT THIS REPORT WE ARE TNB From Our Leadership Creating Continued Value
Pages 06 - 19
WE ARE TNB
Together we brighten
To be a leading provider
lives through innovative
of sustainable energy
and sustainable
OUR OUR solutions in Malaysia
solutions towards a PURPOSE ASPIRATION
and internationally
better world
• We uphold the highest ethical • We know who we are, and we stand

standards and do what is right all by our values
the time • We are empathetic, respectful and
• We are fair, honest and transparent - compassionate to others and the
in everything we do
Integrity
OUR Mindfulness
environment
• We always seek to achieve mutual
benefit for the country, company CORE VALUES • We protect the safety and promote
the wellbeing of our people and the
and customers
AND BEHAVIOURS public
• We trust each other, believe in

teamwork, and win together as one Forward • We are bold, challenge the status quo,
company Collaborative and encourage agility and innovation
Thinking
• We proactively help each other, • We commit to ensuring the
communicate clearly and provide sustainability of TNB in all aspects
constructive feedback • We make informed decisions and learn
• We embrace diversity and inclusivity, and we from our mistakes
Customer
value outside-in perspectives Professionalism
Centricity
• We take full ownership and accountability for our actions • We seek to truly understand customers’ needs and always
• We consistently demonstrate high performance and stay a step ahead
productivity • We continue to build trust by delivering on our promises
• We are result-focused and carry out our duties with discipline • We look for unexpected ways to delight our customers
WHO WE SERVE
INDUSTRIAL COMMERCIAL RESIDENTIAL

We have served our Our industrial customers engage Our commercial customers are our Our residential customers represent
in the manufacture of goods and second-largest source of electricity the majority of Malaysia’s estimated
industrial, commercial and services. Although they make up the sales, carrying out the business and 32.7 million population. As our largest
residential customers in smallest segment of our customers, commercial activities which drive our market, they drive us to deliver
they also account for the majority of economy. excellence in our products and
Malaysia for over 70 years. our electricity sales. services.
OUR
CUSTOMERS’ Residential 8,460,591
PROFILE Commercial 1,721,636
BREAKDOWN OF CUSTOMERS Industrial 34,497

(PENINSULAR MALAYSIA AND SABAH)
Mining 59
Total
10.3 million
Streetlight 87,466
Others 14,917

OUR INVESTMENT CASE
FINANCIAL HIGHLIGHTS
GROUP COMPANY
Financial Year Ended 31 December 31.12.2021 31.12.2020 31.12.2021 31.12.2020
PROFITABILITY (RM Million)

Revenue 52,629.5 43,976.0 48,831.3 40,758.3
Operating profit 8,083.0 7,358.8 6,969.3 7,362.3
Profit before taxation and zakat 4,738.3 4,235.4 2,334.0 3,070.5
Net profit attributable to owners of the Company 3,661.8 3,592.7 1,985.3 2,675.3
KEY BALANCE SHEET DATA (RM Million)

Property, plant and equipment 114,105.6 112,596.1 72,910.5 69,528.7
Total assets 182,600.6 181,433.3 180,153.7 173,180.8
Total borrowings 51,678.2 49,452.6 25,036.3 22,091.3
Total liabilities 124,208.2 123,983.4 134,752.4 126,425.8
Share capital 11,927.6 11,675.2 11,927.6 11,675.2
Shareholders’ equity 58,392.4 57,449.9 45,401.3 46,755.0
SHARE INFORMATION
Per share (sen):
- Basic earnings 64.05 63.06
- Diluted earnings 63.73 62.79
Dividend (sen):
- Interim 22.00 22.00
- Final 18.00 18.00
- Special - 40.00
Net assets per share attributable to owners of the Company 988.60 978.70
FINANCIAL RATIOS
Return on assets (%) 2.6 2.4
EBITDA margin (%) 35.7 40.9
Debt-equity (net of cash) ratio 0.73 0.63
Unit Return CAPEX Average Total

Demand on Coal Assets
Growth Assets* Price
1.7% 2.6% RM
8,459.4 USD
116.2 RM
182,600.6
KEY HIGHLIGHTS
* Based on adjusted net profit million per MT million
Total Market Net Profit Attributable Operating Expenses EBITDA

Revenue Capitalisation to Owners of the Increase/(Decrease) Margin
Company
RM
52,629.5
million
RM
53,481.7
million
RM
3,661.8 million
RM
7,392.0 35.7% million
* Based on adjusted net profit excluding foreign exchange (loss)/gain and costs pertaining to the Group's defined benefit plans

Pages 06 - 19
OUR INVESTMENT CASE
GROUP QUARTERLY FINANCIAL PERFORMANCE
FY2021
RM MILLION Q1 Q2 Q3 Q4 YEAR
Revenue 11,478.0 12,441.0 12,975.4 15,735.1 52,629.5
Operating income 176.7 227.3 144.4 369.7 918.1
Operating profit 2,327.8 2,123.3 2,058.9 1,573.0 8,083.0
Profit before taxation and zakat 1,477.3 1,202.1 1,236.9 822.0 4,738.3
Profit attributable to owners of the Company 958.7 821.5 1,003.8 877.8 3,661.8
Earnings per share (sen) – basic 16.8 14.4 17.6 15.4 64.1
Dividend per share (sen) - 22.0^ - 18.0* 40.0
FY2020
RM MILLION Q1 Q2 Q3 Q4 YEAR
Revenue 11,654.5 10,890.8 11,106.4 10,324.3 43,976.0
Operating income 215.5 130.0 486.7 229.2 1,061.4
Operating profit 2,223.8 1,822.2 1,857.8 1,455.0 7,358.8
Profit before taxation and zakat 1,016.4 1,044.7 1,282.7 891.6 4,235.4
Profit attributable to owners of the Company 717.9 653.3 1,009.6 1,211.9 3,592.7
Earnings per share (sen) – basic 12.6 11.5 17.7 21.3 63.1
Dividend per share (sen) - 22.0^ - 58.0*# 80.0

^
interim dividend
* final dividend
#
inclusive a special dividend of 40.0 sens per share

OUR INVESTMENT CASE
SIX-YEAR GROUP FINANCIAL SUMMARY
GROUP
31.08.2017 31.12.2017 31.08.2018 31.12.2019 31.12.2020 31.12.2021

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

Revenue 47,416.9 15,692.2 50,392.5 50,939.7 43,976.0 52,629.5
Operating profit 9,364.0 3,014.0 6,875.6 8,206.8 7,358.8 8,083.0
Profit before taxation and zakat 8,281.8 2,843.5 5,046.6 5,477.7 4,235.4 4,738.3
Net profit attributable to owners of the Company 6,904.0 2,622.3 3,723.7 4,529.2 3,592.7 3,661.8
KEY BALANCE SHEET DATA (RM Million)2

Property, plant and equipment 103,083.7 104,807.6 111,445.5 109,966.0 112,596.1 114,105.6
Total assets 142,012.4 144,250.0 153,695.0 178,847.2 181,433.3 182,600.6
Total borrowings 38,846.5 41,443.7 47,832.4 45,411.7 49,452.6 51,678.2
Total liabilities 84,427.6 86,261.0 94,643.1 119,565.1 123,983.4 124,208.2
Share capital 11,124.9 11,199.6 11,446.1 11,446.1 11,675.2 11,927.6
Shareholders’ equity 57,584.8 57,989.0 59,051.9 59,282.1 57,449.9 58,392.4
SHARE INFORMATION
Per share (sen)
Basic earnings 122.00 46.32 65.62 79.64 63.06 64.05
Diluted earnings 121.52 46.21 65.39 79.64 62.79 63.73
Gross dividend 61.00 21.41 53.27 100.00 80.00 40.00
Net assets per share attributable to
owners of the Company 1,009.2 1,007.2 1,017.0 1,019.6 978.7 988.6
Share price as at reporting date (RM) 14.28 15.26 13.60 13.26 10.42 9.34
FINANCIAL RATIOS
Return on assets (%) 5.4 5.3 3.2 2.8 2.4 2.6
Return on shareholders’ equity (%) 13.3 13.2 8.3 8.5 7.4 8.0
Gearing (%) 40.3 41.6 44.8 43.4 46.3 47.0
EBITDA margin (%) 32.6 32.3 26.5 36.1 40.9 35.7
Effective weighted average cost of funds (%) 4.7 5.0 5.0 5.1 4.9 4.6
Interest coverage (%) 10.6 9.5 7.9 5.4 4.9 5.0
Currency mix (RM:Foreign) 77:23 79:21 74:26 76:24 75:25 76:24
Debt-equity (net of cash) ratio3 0.37 0.44 0.50 0.53 0.63 0.73
1
Amounts for period ending 31 December FY2017 have been restated for the Amendments to MFRS15 which were adopted in FY2018
2
Balances at 31 December 2017 have been restated for the Amendments to MFRS15 which were adopted in FY2018
3
Cash includes financial assets at fair value through profit or loss (FVTPL)

Pages 06 - 19
OUR INVESTMENT CASE
SIX-YEAR GROUP GROWTH SUMMARY
NET PROFIT ATTRIBUTABLE TO OWNERS

REVENUE SHAREHOLDERS’ EQUITY
(RM MILLION) OF THE COMPANY (RM MILLION)
(RM MILLION)
2017 47,417 2017 6,904 2017 57,585
2017* 15,692 2017* 2,622 2017* 57,989

(Restated) (Restated) (Restated)
2018 50,393 2018 3,724 2018 59,052
2019 50,940 2019 4,529 2019 59,282
2020 43,976 2020 3,593 2020 57,450
2021 52,630 2021 3,662 2021 58,392
TOTAL ASSETS TOTAL BORROWINGS RETURN ON ASSETS

(RM MILLION) (RM MILLION) (%)
2017 142,012 2017 38,847 2017 5.4
2017* 2017* 2017*

144,250 41,444 5.3
2018 153,695 2018 47,832 2018 3.2
2019 178,847 2019 45,412 2019 2.8
2020 181,433 2020 49,453 2020 2.4
2021 182,601 2021 51,678 2021 2.6
GEARING INTEREST COVERAGE BASIC EPS

(%) (%) (SEN)
2017 40.3 2017 10.6 2017 122.0
2017* 2017* 2017*

41.6 9.5 46.3
2018 44.8 2018 7.9 2018 65.6
2019 43.4 2019 5.4 2019 79.6
2020 46.3 2020 4.9 2020 63.1
2021 47.0 2021 5.0 2021 64.1
* Financial Period Ended 31 December 2017

OUR INVESTMENT CASE
SIMPLIFIED GROUP STATEMENT OF FINANCIAL POSITION
TOTAL ASSETS TOTAL LIABILITIES AND EQUITIES
4.7%
26.9% 24.5%
28.3%
2021 1.0% 2021

3.7% 6.5%
5.8%
62.5% 3.9%
1.1%
17.2% 6.8%
4.5%
2.6%
Property, Plant and Equipment Trade and Other Payables Contract Liabilities
Inventories Total Borrowings Other Current and Non Current Liabilities
Trade and Other Receivables Consumer Deposits Share Capital
Deposits, Bank and Cash Balances Employee Benefits Non-Controlling Interests
Other Assets Deferred Taxation Retained Profits and Reserves
5.8%
24.3%
29.7%
27.3%
2020 0.9% 2020

6.4%
3.5%
3.8% 62.1% 3.7%

0.9%
17.4% 7.6%
4.3%
2.3%

Pages 06 - 19
OUR INVESTMENT CASE
STATEMENT OF VALUE ADDED
31.12.2021 31.12.2020
VALUE ADDED (RM Million)

Revenue 52,629.5 43,976.0
Operating expenses excluding staff costs and depreciation (29,878.7) (22,684.2)
Net loss on impairment of financial instruments (940.2) (546.2)
Operating income 918.1 1,061.4
Finance income 221.8 317.7
Finance cost (3,793.3) (3,668.7)
Fair value changes of financial instruments 201.8 124.9
Foreign exchange (loss)/gain (168.5) 26.2
Share of results of associates and joint ventures 193.5 76.5
Value added available for distribution 19,384.0 18,683.6
DISTRIBUTION (RM Million)

To employees:
Employment cost 3,954.2 3,825.8
To the Government:
Taxation and zakat 873.6 619.0
To shareholders:
Dividends 4,568.4 5,235.8
Non-controlling interests 202.9 23.7
To reinvest to the Group:
Depreciation 10,691.5 10,622.4
Retained profit (906.6) (1,643.1)
Total distributed 19,384.0 18,683.6
DISTRIBUTION OF VALUE ADDED
20.4% 20.5%
4.5% 3.3%
2021 2020
50.5% 48.1%
24.6% 28.1%
Employment Cost Dividends and Non-Controlling Interests
Taxation and Zakat Depreciation and Retained Profit

OUR INVESTMENT CASE
CORE REVENUE
0.2% 1.5% 0.3% 1.1%

4.3% 4.9%
0.7% 0.5% 0.8% 0.1%
Peninsular Malaysia
SESB
LPL
2021 TNBI (UK WIND) 2020

TNBI (Vortex)
Others
92.8% 92.8%
Peninsular Malaysia SESB LPL TNBI (UK WIND) TNBI (Vortex) Others* Total
RM Million
2021 48,832.0 2,257.9 368.9 103.6 264.8 802.3 52,629.5
2020 40,825.2 2,160.8 340.0 120.7 39.6 489.7 43,976.0
* Others include Goods & Services, Construction Contracts
GROUP SALES OF ELECTRICITY

BY SECTOR
2.8%** 3.6%***
36.1%
28.2%
24.9%
37.8%
Industrial
Commercial
RM47,048.5 119,040.7
Residential
Million ^ GWh
Others
36.2%
30.4%
** Others include Agriculture, Mining, Public Lighting, Accrued Revenue, Sales Discount, EGAT, LPL, TNBI (UK WIND & Vortex) and other regulatory adjustment, Relief Package from Government, SESB Tariff Support
Subsidy and Merdeka Incentive
*** Others include Agriculture, Mining, Public Lighting, EGAT, LPL, TNBI (UK WIND & Vortex) and Accrued Revenue
^ Exclude Imbalance Cost Pass-Through

Pages 06 - 19
OUR INVESTMENT CASE
OUR CREDIT RATINGS

International Rating Agency Local Rating Agency
Malaysian
Standard & Poor’s Moody’s RAM Rating Rating
Ratings Services Investors Services Services Berhad Corporation
(S&P) (Moody’s) (RAM) Berhad (MARC)
BBB+ A3 AAA AAAIS/

Stable Stable Stable AAA Stable
SHAREHOLDING INFORMATION
As at 31 December 2021, Khazanah Nasional Berhad remained our largest shareholder with 25.6% of shareholding. Other Government-related agencies
cumulatively hold 43.7% with Permodalan Nasional Berhad at 18.4%, Employees Provident Fund at 16.2%, Kumpulan Wang Persaraan at 7.4% and others at 1.7%.
The balance of 30.7% 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 at 50.5%, followed by our shareholders from Asia
(excluding Malaysia) and Europe, which accounted for 35.4% and 14.0% of the shares respectively.
TNB SHAREHOLDING
FOREIGN OWNERSHIP BY GEOGRAPHY
AS AT 31 DECEMBER 2021
s
cie
69.3%
16.2%
en
Ag
0.1% 0.01%
nt
7.4%
14.0%
me
18.4% Pacific Africa

ern
Europe
Gov
1.7%
Total
2021
Foreign
18.6% Shareholding
50.5%
35.4% North
25.6% Asia
America
12.1%
Khazanah Nasional Berhad Employees Provident Fund Board Other Government Agencies Foreign Shareholding
Permodalan Nasional Berhad* Kumpulan Wang Persaraan (Diperbadankan) Local Corporation & Retail
* Comprises total shareholdings held by trust funds managed by Permodalan Nasional Berhad
Note: Shareholding structure as at 31st December 2021
Source: Bloomberg, IPREO and IR internal analysis

OUR INVESTMENT CASE
GENERATION FUEL MIX

0.2%
8.4%
Coal
Gas
Hydro (Large+Mini) 35.2% 2021 Fully/majority owned power plants in Peninsular Malaysia
RE (Solar)
56.2%
OUR SCORECARD
31.08.2017 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021
Return on asset 5.4% 5.3%(4) 3.2% 2.8% 2.4% 2.6%

Generation market share(1) 52.3% 50.6% 49.9% 51.42% 52.21% 52.79%
Customer satisfaction index(3) 81% N/A(3) 81% 81% 86% 87%
Corporate reputation index(3) 81% N/A(3) 88% 87% 81% 88%
Equivalent availability factor (2)
87.13% 85.45% 88.93% 81.77% 87.39% 82.89%
Equivalent unplanned outage factor(2) 3.76% 4.84% 3.84% 7.97% 6.65% 7.85%
Transmission system minutes(1) 0.23 0.05 0.35 0.27 0.08 0.09
minute minute minute minute minute minute
System average interruption duration 50.24 18.05 48.22 48.13 44.95 45.25
index(1) (SAIDI) minutes/customer/year
Transmission losses(1) 1.29% 1.30% 1.43% 1.35% 1.47% 1.60%
Distribution losses(1) 6.21% 6.13% 6.39% 6.30% 6.69% 6.16%
Employee engagement score 89% N/A (3)
86% 89% 89% 85%
(1)
For Peninsular Malaysia only.
(2)
All Coal, Gas and Hydro power plants under TNB Power Generation Sdn. Bhd.
(3)
The respective surveys were not conducted during this four-month Annual Report period.
(4)
Financial Period Ended 31 December 2017 (Restated).
RETURN ON ASSET GENERATION MARKET SHARE(1) EQUIVALENT UNPLANNED OUTAGE FACTOR

(%) (%) (%)
2017 5.4% 2017 52.3% 2017 3.8%
2017 2017 2017

5.3% 50.6% 4.8%
2018 3.2% 2018 49.9% 2018 3.8%
2019 2.8% 2019 51.4% 2019 8.0%
2020 2.4% 2020 52.2% 2020 6.7%
2021 2.6% 2021 52.8% 2021 7.9%

Pages 06 - 19
CORPORATE STRUCTURE
As at 18 March 2022
Tenaga Nasional Berhad

100% TNB POWER GENERATION SDN. BHD. 100% REV PROPERTY HOLDINGS SDN. BHD.
100% Integrax Berhad 100% TNB Repair and Maintenance Sdn. Bhd.
100% REV Horizon Sdn. Bhd.
Integrax Maritime Services Sdn. Bhd. 100%

TNB INTEGRATED LEARNING
100% (Formerly known as LBT Two Sdn. Bhd.) 100% Tenaga WHR 1 Sdn. Bhd. SOLUTION SDN. BHD.
(Dormant)
100% Pelabuhan Lumut Sdn. Bhd. 100% TNB REMACO Pakistan (Private) Limited
100% ALLO TECHNOLOGY SDN. BHD.
100% Lekir Bulk Terminal Sdn. Bhd. 100% Trichy Energy Limited (Dormant)
100% TNB RESEARCH SDN. BHD.
50% Lumut Maritime Terminal Sdn. Bhd. 100% Trichy Power Limited (Dormant)
100% TNB Labs Sdn. Bhd.
Less 1
Share
TNB Operations & Maintenance 40% Gunung Tenaga Sdn. Bhd.

100% LMT Capital Sdn. Bhd. (Dormant) 100%
International Ltd.
100%
TNB ENGINEERING
100% TNB Manjung Five Sdn. Bhd. 100% Oasis Parade Sdn. Bhd. CORPORATION SDN. BHD.
Saudi-Malaysia Operation &

Maintenance Services Company
100% TNEC Construction Sdn. Bhd. (Dormant)
100% TNB Western Energy Berhad 30%
Limited
Alimtiaz Operation & Maintenance 100% Bangsar Energy Systems Sdn. Bhd.
100% TNB Prai Sdn. Bhd. 10%
Company Limited
GMR Tenaga Operations and 70%

Selesa Energy Systems Sdn. Bhd.
100% TNB Northern Energy Berhad 50%
Maintenance Private Limited (Dormant)
100%
TNEC Operations and Maintenance Sdn. Bhd.
100% TNB Janamanjung Sdn. Bhd. 100% TNB RETAIL SDN. BHD. (Dormant)
51%
Tomest Energy Management Sdn. Bhd.
100% TNB Pasir Gudang Energy Sdn. Bhd. 100% TNBX Sdn. Bhd. (In Members’ Voluntary Winding Up)
GSPARX Sdn. Bhd.

77% Airport Cooling Energy Supply Sdn. Bhd.
100% TNB Connaught Bridge Sdn. Bhd. 100%
TNB-IT SDN. BHD.

70% Cooling Energy Supply Sdn. Bhd.
100% TNB Sepang Solar Sdn. Bhd. 100%
MALAYSIA TRANSFORMER 49% Abraj Cooling L.L.C

100% TNB Bukit Selambau Solar Sdn. Bhd. 100%
MANUFACTURING SDN. BHD.
TNB GLOBAL VENTURES CAPITAL BERHAD

100% TNB RENEWABLES SDN. BHD.
100% TNBPG Hydro Nenggiri Sdn. Bhd. 100%
100% TNB Bukit Selambau Solar Dua Sdn. Bhd.

100% TNBPG Hydro Sungai Perak Sdn. Bhd. 100% TNB FUEL SERVICES SDN. BHD.
SD Plantation TNB Renewables Sdn. Bhd.

TNB GLOBAL CAPTIVE (L) LTD.
49% (Formerly known as SD Plantation TNBES
70% Jimah East Power Sdn. Bhd. 100%
Renewable Energy Sdn. Bhd.)
70% Southern Power Generation Sdn. Bhd.* 100% UNIVERSITI TENAGA NASIONAL SDN. BHD.
60% Kapar Energy Ventures Sdn. Bhd. 100% UNITEN R & D Sdn. Bhd.
Yayasan Canselor Universiti Tenaga Nasional
* TNB and its wholly owned subsidiary, TNB Power Generation Sdn. Bhd., own 70% of Southern Power Generation Sdn. Bhd.
** GVO Wind Limited, Bluemerang Capital Limited and Vantage Solar Investments S.A.R.L. Group of Companies are detailed out on pages 222-229 of this Integrated Annual Report.

Legend: Subsidiaries Associates Joint Ventures Simple Investments Trust Foundations
100% TNB TOPAZ ENERGY SDN. BHD. 100% TNB VENTURES SDN. BHD. SIMPLE INVESTMENTS
PERUSAHAAN OTOMOBIL ELEKTRIK

100% TNB ENERGY SERVICES SDN. BHD. 76% Tenaga Cable Industries Sdn. Bhd. 20% (MALAYSIA) SDN. BHD.
(In Winding Up by the Court)
100% Tenaga E Mobility Solutions Sdn. Bhd. 83% SABAH ELECTRICITY SDN. BHD. 10% LABUAN REINSURANCE (L) LTD.
7.8%
FEDERAL POWER SDN. BHD.
70% Maevi Sdn. Bhd. 100% Elopura Power Sdn. Bhd. (Dormant) (Under Judicial Management)
49% Metrosphere Hydro Tersat Sdn. Bhd. 100% ARUNA SERVICIOS INTEGRALES S.L.U. TRUST FOUNDATIONS
YAYASAN TENAGA NASIONAL

40% FTJ Bio Power Sdn. Bhd. 100%
Global Power Enerjî Sanayî Ve Tîcaret
Anonîm Şîrketî RETIREMENT BENEFIT TRUST FUND
20% Jana Landfill Sdn. Bhd. 30% Gama Enerji Anonîm Şîrketî
DORMANT COMPANIES
POWER AND ENERGY INTERNATIONAL TNB CAPITAL (L) LTD.

100%
(MAURITIUS) LTD.
60% TENAGA SWITCHGEAR SDN. BHD. 100%
(In Members’ Voluntary Winding Up)
100% Independent Power International Ltd. 60% TSG Ormazabal Sdn. Bhd. 100% TNB RISK MANAGEMENT SDN. BHD.
Malaysian Shoaiba 100% TNB HIDRO SDN. BHD.

20%
Consortium Sdn. Bhd.
95% PT. Tenaga Nusa Bakti (Dormant)
Saudi-Malaysia Water & Tenaga Middle East Electric 100% TNB TRANSMISSION NETWORK SDN. BHD.
50% 34%
Electricity Co. Ltd. Contracting L.L.C. (Dormant)
100% TNB GENERATION SDN. BHD.
30% GMR Energy Limited ASSOCIATES
100%
TNB DISTRIBUTION SDN. BHD.
49% FIBRECOMM NETWORK (M) SDN. BHD. (In Members’ Voluntary Winding Up)
100% TNB INTERNATIONAL SDN. BHD.
100% TNB ENGINEERS SDN. BHD.
20%
TEKNOLOGI TENAGA PERLIS
100% Vantage RE Ltd. CONSORTIUM SDN. BHD.
100% TNB PROPERTIES SDN. BHD.
100% Tenaga Wind Ventures UK Ltd.

20% GB3 SDN. BHD.
100% TNP Construction Sdn. Bhd.
25%
JIMAH ENERGY VENTURES
100% GVO Wind Limited** HOLDINGS SDN. BHD.
40% KM - Metro TNB Properties Sdn. Bhd.
100% Bluemerang Capital Limited**

100% Jimah Energy Ventures Sdn. Bhd. ORION MISSION SDN. BHD.
100%
Lahad Datu Holdings Sdn. Bhd.

55% Vantage Solar Investments S.A.R.L.** JOINT VENTURE 100%
100%
Lahad Datu Energy Sdn. Bhd.
100% Vantage Solar UK4 Limited 50% SEATRAC SDN. BHD. (Dormant) (In Members’ Voluntary Winding Up)
50%
Eastern Sabah Power Consortium Sdn. Bhd.
70%
SEPANG POWER SDN. BHD.
MANJUNG ISLAND ENERGY BERHAD

(Subsidiary as defined by MFRS 10, 11 and 12)

Pages 06 - 19
OUR INTERNATIONAL FOOTPRINT
UNITED KINGDOM KUWAIT TURKEY
POWER PLANT POWER PLANT POWER PLANT
TENAGA WIND VENTURES UK LTD SABIYA POWER GENERATION & GAMA ENERJI A.S.
(100% Equity) WATER DISTILLATION PLANT (30% Equity)
Capacity: Capacity: Capacity:
26.6MW 252MW 1,134.1MW
VANTAGE SOLAR DOHA WEST POWER GENERATION
INVESTMENTS S.A.R.L. AND WATER DISTILLATION PLANT
(55% Equity) Total Capacity:
Capacity:
170MW
365MW
OPERATIONS & MANAGEMENT
SERVICES
BLYTH OFFSHORE DEMONSTRATOR LIMITED Maintenance Services Agreement
(49% Equity) Mechanical Works
Capacity: DOHA WEST PLANT
41.5MW
Instrumentation & Control Systems
SHUWAIAKH POWER PLANT
DOHA WEST PLANT
ENERGY SOURCE: ENERGY SOURCE: ENERGY SOURCE:
TOTAL CAPACITY: TOTAL CAPACITY: TOTAL CAPACITY:

433.1MW 422MW 1,134.1MW
Legend: Wind Solar Natural Gas Distillate Hydro Fuel Oil Coal
SAUDI ARABIA INDIA PAKISTAN CAMBODIA
POWER PLANT POWER PLANT POWER PLANT Capacity:
SHUAIBAH INDEPENDENT WATER & GMR ENERGY LTD LIBERTY POWER LTD
400MW
POWER PROJECT (IWPP) (30% Equity) (Wholly-owned) MANN & Wartsila Engines
(6% Equity) Capacity: Capacity: Technical Advisory
Capacity:
2,064MW 235MW for EDC HFO Plant
1,190MW (Divested as at 30th November 2021)
WATER DESALINATION ASSETS OPERATIONS & MANAGEMENT

Total Capacity: SERVICES
1,039,000 - TNB REMACO & BALLOKI POWER

PLANT NATIONAL POWER PARK
m3/day MANAGEMENT COMPANY LIMITED
- Balloki Power Plant
Capacity:
1,223MW
ENERGY SOURCE: ENERGY SOURCE: ENERGY SOURCE: ENERGY SOURCE:
TOTAL CAPACITY: TOTAL CAPACITY: TOTAL CAPACITY: TOTAL CAPACITY:

1,190MW 2,064MW 1,458MW 400MW

Section
02
FROM
OUR LEADERSHIP
22 Chairman’s Letter to Shareholders

26 President/Chief Executive Officer’s Review
About This Report We Are TNB FROM OUR LEADERSHIP Creating Continued Value
Pages 22 - 30
CHAIRMAN’S LETTER
TO SHAREHOLDERS
LEADING THE
WAY FOR VALUE
CREATION AND
PRESERVATION
THROUGH GOOD
GOVERNANCE
Dear Stakeholders
The continuation of the
COVID-19 pandemic in 2021
brought about adverse
operating conditions which
threatened the lives and
livelihoods of all Malaysians as
well as the economic well-being
of thousands of businesses
and industries throughout the
country.
DATO’ SRI HASAN BIN ARIFIN

C H A I R MA N

CHAIRMAN’S LETTER
TO SHAREHOLDERS
"I would like to take this opportunity

to urge all of us associated with TNB to
redouble our efforts during this difficult
time to better demonstrate the value we
create for all Malaysians."
During this difficult time, Tenaga Nasional Berhad (TNB) continued to deliver
on our role as the country’s national power provider and ensured access to
reliable and affordable power, keeping the lights on for all Malaysians. I am
pleased to report that we have passed this challenge with flying colours and
credit must go to our staff who have shown the utmost dedication this past
year to TNB’s vision and mission.
Indeed, this is a point that I would like to stress to all our stakeholders. Just
as TNB has a responsibility to the rakyat, so do we as directors, officers and
staff have a responsibility to TNB to ensure that the company meets all its
commitments and aspirations to provide sustainable and reliable energy to
the nation. Our obligation and fiduciary duties are therefore owed to the
company, which, likewise, has a duty to both the country and to you, our
shareholders. It is for this reason that we must demand that the highest
standards of corporate governance be observed throughout the entire TNB
organisation—from the Chairman of the Board to our ground staff responsible
for our operations.
I would like to take this opportunity to urge all of us associated with TNB to
redouble our efforts during this difficult time to better demonstrate the value
we create for all Malaysians.
To achieve our aspiration, TNB strives to provide sustainable and reliable energy
FINANCIAL PERFORMANCE REVIEW for the nation.
Electricity demand in Peninsula Malaysia grew 1.2% year-on-year (yoy) driven
by higher consumption by both residential and industrial customers. TNB’s
subsidiary companies also registered higher contributions in terms of the sale important supplies such as healthcare and medical
of goods and services as the lifting of MCO in 2021 enabled more businesses to equipment, we had deployed mobile generator
operate. Profit After Tax (PAT) for the year reflected this positive development, sets in areas such as temporary control posts
growing 6.9% yoy to RM3.86 billion from RM3.62 billion a year ago. PAT to ensure that our frontliners had the power
for the year necessary to effectively perform their duties. We
After taking all our commitments into consideration, the Board is pleased to reflected are grateful to the efforts and commitments of our
announce that we have declared a final single-tier dividend of 18.0 sen per frontliners, and are committed to doing what we
this positive
share. This, in addition to our interim dividend paid on 15 October 2021, can to support the work that they do.
development,
brings our total dividend payout for the year to 40.0 sen per share, or RM2.29
billion, which is equivalent to 52.8% of our Profit After Tax and Minority growing 6.9% yoy The pandemic aside, Malaysia also experienced
Interests (PATAMI) for the year. This falls within the prescribed range of our to RM3.86 billion severe flooding in several states across the nation,
dividend policy of paying out between 30% and 60% of PATAMI, and reflects from RM3.62 billion which would claim lives and cause damage in the
our continued commitment of creating value for our shareholders. billions of ringgit, as well as displace thousands of
Malaysians from their homes. In light of the severity
EASING THE BURDEN OF THE RAKYAT of the floods, the Board and management were
While we had successfully delivered on our commitments this past year, we unanimous in our decision for TNB to immediately
cannot overlook the fact that the COVID-19 pandemic had extracted a high extend assistance to the rakyat, in addition to
cost from the rakyat and businesses. The suspension of economic activities and deploying all resources necessary to ensure the
health impact of COVID-19 meant that many Malaysians found themselves in INTERIM lights stayed on. To that end, TNB mobilised more
financial distress even as the pandemic continued to stretch thin our country’s DIVIDEND than 2,000 personnel comprising TNB technical
medical resources. To help affected households better manage their finances staff including additional work teams from outside
brings our total
during this troubling time, TNB offered special relief packages including bill the Klang Valley and the 70th Royal Army Engineers
dividend payout
discounts and easy payment plans to ensure that they would not be left in the Regiment Volunteers to repair TNB assets and
dark because of COVID-19. for the year to grid infrastructure. We also placed 665 sets of
40.0 sen generators on standby to provide power in flood-
Our COVID-19 relief efforts also saw us extending support to the nation’s per share, or affected areas, as well as free wiring inspections to
healthcare systems and frontliners who are playing a critical part in helping RM2.29 billion homes severely affected by the floods.
the country manage the impact of the pandemic. In addition to contributing

Pages 22 - 30
CHAIRMAN’S LETTER
TO SHAREHOLDERS
For the rakyat who were affected by the pandemic and the floods, we offered special relief packages to
HIGHLIGHTS
OF THE YEAR help lighten their financial load. These packages, including a 100% one-off rebate on electricity bills for
148,881 customers affected by the floods, provided financial relief and protected these customers from
Social the possibility of power cuts. In addition, TNB extended a one-off RM15 million rebate to flood-affected
We offered special relief packages customers who faced particular hardship due to the severity of the flood damage. Finally, we also made
including 100% one-off rebates financial contributions to the State Governments of Terengganu and Kelantan in assistance of their flood
on electricity bills for relief work.
148,881
affected by the floods
customers
It fills me with great pride to report that TNB staff, in addition to the efforts above, had volunteered and
made personal contributions to help with both COVID-19 and flood relief efforts. Collectively, TNB and
our staff, the latter primarily through the Tabung Warga TNB Prihatin, raised more than RM4 million for the
less fortunate affected by the pandemic and the floods. It is this type of dedication and mindfulness that
goes above and beyond the call of duty which truly demonstrates the value that we, as an organisation,
aspire to create for our stakeholders.
Dato' Sri Hassan bin Arifin and Datuk Ir. Baharin bin Din watering the plants as a symbolic act of TNB's commitment to sustainability, during the townhall session.
FOCUSING ON SUSTAINABILITY
Environment
The floods that occurred in December 2021 had a devastating impact on lives and livelihoods, but what
Malaysia updated its Nationally Determined may be of greater concern is the likelihood of its recurrence. Experts have warned that there will be an
Contribution (NDC) in August 2021, stating increase in the number of climate catastrophes as a result of climate change, and the growing number of
its intention to unconditionally climate disasters in recent years is proof positive of that. Indeed, the world was reminded of the urgency
reduce economy-wide carbon intensity of the situation at the United Nations’ Climate Change Conference (COP26), which was held in Glasgow in
(against gross domestic product [GDP]) of November 2021. At the end of the conference, almost 200 countries including Malaysia, signed a climate
45%
change pact which promises accelerated action to reduce greenhouse gas (GHG) emissions.
by 2030 compared to 2005 level. The Malaysian Government had stepped up its climate change commitments—to not only work towards
becoming a carbon neutral nation by as early as 2050, but also intends to reduce its economy-wide
carbon intensity (against GDP) of 45% in 2030 compared to 2005 level. This target is an increase of
10% from the previous submission to the United Nations Framework Convention on Climate Change
(UNFCCC). We applaud the Government’s ambitious target, and have pledged our support of this goal by
announcing our own net zero emission target that is integral to TNB Sustainability Pathway 2050 (SP2050)
- our roadmap which sets out our sustainability commitments and aspiration while simultaneously
futureproofing our business.
Under the SP2050, TNB aspires to achive net zero emissions by 2050, as well as to reduce 35% of our
emissions intensity and 50% our coal generation capacity by 2035. We will no longer be investing in
greenfield coal plants and aspire to be completely coal-free by our 2050 target year. In addition to the
environmental aspiration, the SP2050 also integrates the other two pillars of sustainability, namely social
and governance to transform TNB into a socially responsible company that exemplifies the highest
standards of governance at all levels of our organisation.

CHAIRMAN’S LETTER
TO SHAREHOLDERS
I would like to add that the goals of the SP2050 are not new OUTLOOK FOR 2022
ambitions for TNB. We have long recognised that clean energy The coming year will see TNB focused on supporting the
in the form of renewables is the way forward for the power Government of Malaysia in rebuilding our nation’s economy.
generation business, and we have already embarked on our Bank Negara Malaysia expects the Malaysian economy to grow
TO ACHIEVE energy transition and grid modernisation plans to support a between 5.5% and 6.5% in 2022, further building on the 3.1%
NET ZERO higher percentage of renewable energy in our grid. Carbon growth that we saw in 2021. Greater economic activity translates
EMISSIONS neutrality has always been a part of this plan, but the timeline into higher demand for electricity, and we must, as the national
by 2050, has been brought forward as TNB actively steps up in response power producer, ensure that we deliver reliable and affordable
as well as to to the clarion call for a better future. TNB is confident that this power to all Malaysian users. Our continuing investments will
reduce 35% of goal remains achievable, and we have adapted our strategy to ensure that our existing infrastructure will operate efficiently
our emissions ensure that we will attain this target. while moving us up the sustainability pathway to transform TNB
intensity and into a greener company in the future.
50% of our coal In addition to our environmental efforts, TNB has continued
generation to deliver initiatives to enhance our standing as a good social The year will also see us operating under the new Regulatory
capacity by citizen and fulfil our goal of building better and brighter Period 3 (RP3) under the Incentive-Based Regulation (IBR)
2035. lives. One of our long-term projects is the conservation of the Framework which will run from February 2022 to December
firefly population in several key locations, including Kampung 2024. Under the RP3, the Government of Malaysia has decided
Kuantan, home to one of the largest firefly colonies in Southeast to prioritise the well-being of the rakyat and has maintained
Asia. In FY2021, we contributed RM52,000 in support of these the current electricity tariff schedule. This decision is one that
conservation efforts. is cognisant of the burdens of the rakyat but also recognises the
commitments that power producers and distributors have to
TNB also continued to support the development of brightening make to modernise and develop our power ecosystem. I would
young minds through Yayasan Tenaga Nasional (YTN), which like to express my thanks to the Government for their continued
SUPPORT THE awards scholarships and convertible loan to students based support of the IBR since 2014 as it remains the best mechanism
DEVELOPMENT on merit, enabling them to pursue higher education locally that balances the needs of both the rakyat and the power sector.
OF BRIGHTENING or abroad. In 2021, we contributed RM65.9 million to 1,671
YOUNG MINDS students, bringing our total awarded since 1993 to over RM1.3 ACKNOWLEDGEMENTS
we contributed billion for over 20,000 recipients. Further complementing our It fills me with great honour to have been given the opportunity
RM119.2 efforts to support education is our My Brighter Future (MyBF) to chair TNB, one of the giants of Malaysian industry. It is with
million to 8,272 programme. A total of RM53.3 million was contributed to help great pride that I accept this role and look forward to a productive
students, bringing these students pursue tertiary education and help them secure year ahead with my fellow Directors. On behalf of the Board,
our total awarded a better future for their families. I would like to extend our appreciation to the former Chairman,
since 1993 to over Dato’ Seri Mahdzir bin Khalid, who has left us following his
RM1.3 billion for We view these social responsibility projects as an essential part appointment as the Minister of Rural Development. We thank
more than 20,000 of who we are and what we do at TNB, and they remain important Dato’ Seri for his efforts and leadership during his short, but
recipients. parts of our identity even as we embark on our SP2050 journey. significant time with us.
Our approach to sustainability is therefore holistic, and takes
into consideration all dimensions of development to create We would also like to express our thanks to the various
sustained and comprehensive value for all our stakeholders, stakeholders whom we have worked with during this past year.
especially the rakyat. In particular, we would like to thank the Government and our
regulatory bodies, customers, business partners, suppliers and
Finally, in the area of governance, we have revised the TNB Group shareholders for their continued support of our mutual cause.
Governance Platform, which is the spine of our management Your contributions have been invaluable, particularly in a year
MALAYSIAN structure, to clearly establish the roles and responsibilities at that was significantly disrupted by pandemic and flood-related
ECONOMY each level of leadership. This revision extends to the way we issues. Last but not least, special acknowledgements must go
expects to grow approach sustainability, where we have reformed the Group's to our TNB staff who have shown true dedication in the face of
between 5.5% Sustainability Development Committee as the Sustainability adversity. I urge you to continue your efforts in 2022 as we will
and 6.5% in Development Council (SDC) chaired by our President/Chief face another year of challenges even as we continue to support
2022, further Executive Officer. the economic recovery of the nation and keep the lights turned
building on the on for the rakyat.
3.1% growth The SDC serves as the strategic platform allowing deliberations
that we saw in of TNB's sustainability direction, and also a platform to monitor Thank you.
2021. and discuss the progress of our sustainability agenda.

Chairman

Pages 22 - 30
PRESIDENT/CHIEF EXECUTIVE
OFFICER’S REVIEW
CREATING
VALUE IN A
SUSTAINABLE
MANNER
THROUGH
OUR STRATEGY
Dear Valued Stakeholders,

The financial year ended 31 December
2021 (FY2021), much like the previous
year, was dominated by issues
related to the COVID-19 pandemic. In
contrast to the previous year, Malaysia
was better prepared to manage
the impact of the virus even as we
transitioned our ways of living and
working to the new normal.
DATUK IR. BAHARIN BIN DIN

P R E S I D E N T/ C H I E F E X E C U T I V E O F F I C E R

OFFICER’S REVIEW
This was aided significantly by the mass rollout of vaccines HIGHLIGHTS

OF THE YEAR
which encouraged governments globally to reopen their
Economy
economies and take bolder measures to reverse the Total Revenue
pandemic-induced decline, and take steps to strengthen the
sustainability of their activities, particularly in the area of
RM52.63 billion
for 2021 representing a yoy
increase of 19.7% from RM43.98
climate change. billion a year ago.
Malaysia’s Electricity Supply Industry (MESI) was had led to Gross Domestic Product (GDP) growth of
similarly affected by the pandemic, with the ebb and 3.1% for the year. The higher electricity sales figure Electricity Sales
flow in economic activity impacting energy sales, also includes the RM4.51 billion from the Imbalanced had increased
19.3%
as well as the execution of our operations. While Cost Pass-Through (ICPT) mechanism, which was in
electricity demand would recover towards the end of an under-recovery position in 2021 owing to higher
the year, the concerted global recovery translated to a fuel prices. Meanwhile, the higher cost of fuel had
yoy to RM51.56 billion from
sudden increase in the demand for fuel which, coupled contributed to an increase in operating expenses
RM43.20 billion for the same
with a bottleneck in supply, saw fuel prices spike. (OPEX), which grew 19.9% to RM44.52 billion from
period in tandem with the
While these factors had contributed to challenging RM37.13 billion in 2020.
resumption of economic activity in
operating conditions, I am pleased to report that TNB
the country, which had led to GDP
had ensured the continuous supply of reliable, secure As a result of the factors above, operating profit for
growth of 3.1% for the year.
and affordable power to the nation. In addition, we 2021 came in at RM8.08 billion, up 9.8% from RM7.36
continued to deliver on our commitments outlined in billion a year ago. Profit After Tax (PAT) grew 6.9%
our Reimagining TNB strategy to make the transition yoy to RM3.86 billion from RM3.62 billion due to the
to renewable energy (RE), modernise our grid and increase in operating profit and the increase in the OPEX
strengthen our customer services. share of results of associates, as well as accounting which grew
Meanwhile, the Government has also announced

ambitious measures to further strengthen and
gains on the fair value of financial instruments. This
was partially offset by higher foreign exchange losses
and tax expenses recognised during the year.
19.9%
to RM44.52 billion from
modernise MESI. Under the 12th Malaysia Plan (RMK- RM37.13 billion in 2020
12), which has received a record-high allocation In terms of the standards of our operational
of RM400 billion for its initiatives, Malaysia aims to performance, TNB continued to maintain world-class
increase its RE capacity to account for 31% of the network standards despite the challenging operating Operating Profit
nation’s generating capacity by 2025, as well as environment. Our power plants continued to operate
provisions outlining the development of green, or
low-carbon, mobility, including electric vehicle (EV)
efficiently and reliably, with the average domestic and
international plant availability exceeding 80% while
RM8.08 billion
up 9.8% from RM7.36 billion
adoption in urban settings. At the same time, the our Transmission System Minutes, a benchmark for
a year ago
Government has also committed itself to become a the minutes of interruption caused by transmission
carbon neutral nation as early as 2050. per year, scored 0.09 minutes. Meanwhile, the System
Average Interruption Duration Index (SAIDI) scored
We are fully supportive of our government’s efforts to 45.25 minutes while our Customer Satisfaction Index
PAT
put the country on a more sustainable footing, which came in at 87%. These metrics put us squarely among
grew
is aligned with the long-term strategy that we have the best power producers in Southeast Asia, and on
put in place for TNB. Our hope is that together, we
will attain our aspiration, to be a leading provider of
sustainable energy solutions while delivering on our
par with systems in developed countries.
As for TNB's workplace safety performance, we

6.9%
yoy to RM3.86 billion from
purpose to make Malaysian lives better and brighter. continued to improve on our safety record with our RM3.62 billion due to the increase
Loss Time Injury Frequency (LTIF) improving to 1.03 in operating profit and the
PERFORMANCE HIGHLIGHTS in 2021 from 1.29 in the previous year. While we have increase in the share of results of
TNB reported a total revenue of RM52.63 billion for done our utmost to reduce work-related fatalities, we associates, as well as accounting
2021 representing a year-on-year (yoy) increase of unfortunately recorded eight incidences during the gains on the fair value of financial
19.7% from RM43.98 billion a year ago. Electricity year. The loss of these lives is regretted and we resolve instruments.
sales had increased 19.3% yoy to RM51.56 billion from to do more in the coming years to prevent injuries
RM43.20 billion for the same period in tandem with the towards our goal of zero fatalities.
resumption of economic activity in the country, which

Pages 22 - 30
OFFICER’S REVIEW
STRATEGY PROGRESS AND UPDATE
Incorporating Sustainability Pathway 2050
In 2021, TNB entered into the second leg of its transformational journey under Reimagining TNB, which remains our primary corporate strategy driving and
guiding our organisation forward. Nevertheless, we recognise that sustainability has grown in priority over the last few years, and we have introduced our
Sustainability Pathway 2050 (SP2050) plan which establishes our sustainability commitments and aspirations building on our energy transition journey
under Reimagining TNB.
SP2050 does not replace Reimagining TNB as our corporate strategy but complements it by setting out our sustainability direction and plans to future-proof
our business. It outlines our long-term sustainability goals over the next 30 years, including our aspiration to achieve net zero emissions by 2050. In addition,
SP2050 also outlines our intermediate goal of reducing 35% of our emissions intensity and 50% of our coal generation capacity by 2035. This is in addition
to our pledge to no longer invest in greenfield coal-fired power plants.
Additional details for SP2050 will be fleshed out in 2022 to chart the long-term plan for the future sustainability of our businesses.
For more information, please refer to Sustainability Statement section, page 130.
Our initiatives are guided by our strategic pillars representing our core business activities described under Reimagining TNB. I am pleased to report that we
have delivered on these commitments in 2021, and would like to highlight some of our value creation activities in these areas.
Strategically Pivoting to Green Generation Future Proofing Our Grid Network
We continued to invest in our generation sources in 2021 as part of our efforts TNB is the owner of the largest electricity transmission and distribution
to address the energy trilemma of security, reliability and sustainability, as network in Peninsular Malaysia with over 25,000km of circuit lines. Our goal
well as power affordability. One of our immediate priorities is to increase our under this pillar is to create a grid that is capable of managing the intermittent
RE generating capacity as outlined by Reimagining TNB, and we will do so by and bi-directional flows of RE, while empowering customers to take control of
expanding both our domestic and international RE holdings. their energy consumption, and allow for more efficient control and oversight
via the implementation of digital innovations.
In 2021, we made significant progress towards this goal after receiving the
go-ahead from authorities to proceed with the Nenggiri 300MW Hydroelectric On the customer side, we installed more than 900,000 smart meters, bringing
Power Plant. The RM5 billion project, which is expected to be completed and our total to over 1.8 million meters installed as at the end of 2021, surpassing
commissioned in 2026, will significantly increase RE in the country. In terms of
our target of 1.5 million meters. These smart meters facilitate bidirectional
domestic solar power, our subsidiary, TNB Renewables Sdn Bhd was shortlisted
transfer of information allowing for the full automation of the billing process
to develop a 50MW block at the Large-Scale Solar 4 @ Mentari (LSS4@Mentari)
and gives customers the capability of monitoring their electricity usage.
project alongside 29 other companies. We have also already signed power
The granular information provided by smart meters benefits not only our
purchase agreements (PPAs) with some of these shortlisted companies to
secure a significant supply of RE into our grid in the coming years. customers, but also enables our operations to identify issues within our grid,
as well as consumer habits to better serve them. Our target is to install 9.1
On the international front, we launched Vantage RE Ltd, a RE investment and million smart meters nationwide by 2026.
asset management company to manage TNB’s RE assets in the UK and Europe.
Recently, Vantage RE purchased a 49% stake in Blyth Offshore Demonstrator TNB also continued to implement Distribution Automation (DA) systems in
Limited (BODL), marking TNB’s maiden entry into the international offshore wind sensitive areas including business centres and industrial zones to expedite
market. BODL currently owns offshore wind assets with total installed capacity restoration time in the event of an outage. In 2021, we successfully installed
of 41.5MW, as well as development rights for a 58.4MW floating offshore wind and commissioned 3,520 substations covering an estimated 2.3 million
project. This acquisition is a statement of TNB's intent to expand its international customers. This brings our total DA installation from 2014 onwards to 20,797
RE portfolio, and also facilitates greater collaboration and knowledge exchange distribution substations accounting for 25% of total distribution stations in
with BODL’s majority shareholder, EDF Renewables (EDFR). Peninsular Malaysia.
Meanwhile, we continued to pare down our investments in non-strategic TNB’s investment into its grid in 2021 has resulted in a Smart Grid Index (SGI)
markets to concentrate our focus in the United Kingdom, Europe and score of 67.9, an improvement of 8.6% from the 62.5 scored in 2020. Our target
Southeast Asia. To that end, we divested two of our assets in South Asia, namely is to raise our SGI to 85 by 2025, and we will do so through the delivery of
TNB Liberty Power Limited in Pakistan and our Compulsorily Convertible initiatives such as the installation of smart meters and DA in our grid.
Debenture (CCD) in GMR Bajoli Holi Hydropower Ltd (GBHH) of India which is
an asset under GMR Energy Limited (GEL). We aim to explore more divestment For more information, please refer to Strategic Review section, pages 38-39, 46.
opportunities going forward in order to further streamline our international
portfolio.
For more information, please refer to Strategic Review section, page 37.

OFFICER’S REVIEW
Through the subsidiary, Vantage RE Ltd, TNB recently purchased a 49% stake in BODL, marking a maiden entry into the international offshore wind market.
HIGHLIGHTS
OF THE YEAR
Bringing Our Customers Along the Energy Transition Journey Strategically Pivoting to
Green Generation
We are committed to transforming ourselves into a customer-centric organisation that puts the customer Vantage RE purchased a
49%
at the heart of everything that we do. In addition to meeting the needs of our customers, our initiatives of
this pillar are designed to empower our customers so that they have the knowledge necessary to control
their energy consumption and participate in the national energy transition programme. stake
in BODL, marking TNB’s maiden entry into
The initiatives we implemented during the year have yielded positive results with our flagship myTNB the international offshore wind market.
web portal and mobile application seeing significant growth numbers. By the end of 2021, the number
of registered subscribers on myTNB had grown 30% compared to the previous year, with 5.5 million TNB
customers having signed up for the service. The last year also saw TNB form the Malaysia Energy Literacy
Programme (MELP) to educate the rakyat on energy issues, such as energy efficiency, sustainability Future Proofing Our Grid Network
and climate change. Education is crucial as we will need the cooperation of all Malaysians if we are to
TNB’s investment into its grid in 2021
successfully transition to a greener future. We leveraged various mediums, including webinars, podcasts
has resulted in a
and videos to expand our reach as widely as possible, and delivered programmes for students in hopes
SGI of
of influencing young minds.
Meanwhile, retail trading of RE picked up in 2021 with total sales of Renewable Energy Certificates (REC)
rising to 612,361MWh, from 483,300MWh in the previous year. We also launched a new solution called
67.9 score
an improvement of 8.6%
Green Energy Tariff (GET) scheme with our government, which also allows domestic, commercial and from the 62.5 scored in 2020
industrial customers to purchase electricity generated from RE sources to reduce their carbon footprints
without having to install their own solar solution.
Finally, TNB’s wholly-owned subsidiary GSPARX continued to grow the sales of its self-generation solar Bringing Our Customers Along the
solutions under the Net Energy Metering (NEM) and Supply Agreement for Renewable Energy (SARE) Energy Transition Journey
schemes. Beginning from NEM 2.0 and continuing to NEM 3.0 (NEM Rakyat) launched in 2021, GSPARX
registered a total of 951 domestic/residential customers to date, bringing the total capacity to 8.25MWp. The number of registered subscribers
Meanwhile, for the commercial, industrial and government segment, GSPARX registers total capacity on myTNB had grown
30%
of 116.61MWp from 204 customers. The commercial and industrial customers would benefit from NEM
NOVA and self-consumption schemes while the government segment will enjoy the special NEM GoMEN
scheme.
compared to the previous year,
For more information, please refer to Strategic Review, page 41. with 5.5 million TNB customers
having signed up for the services

Pages 22 - 30
OFFICER’S REVIEW
Putting Sustainability First
TNB has stepped up the delivery of our sustainability

initiatives in line with our SP2050 targets. At the same time,
Reimagining TNB initiatives complemented the global call to
arms to take real and significant action to mitigate the impact
of climate change. As mentioned earlier, our overall strategy
puts sustainability as one of the core principles in all that we
do, from the generation and distribution of electricity to our
front-facing customer initiatives.
As part of our efforts to further encourage greater

sustainability of our environmental resources, we have
stepped up our efforts to help accelerate Malaysia's transition
to electric mobility to help in the decarbonisation of the
transportation sector. We believe that the decarbonisation
effort would require an all-of-government and all-of-society
approach to work, and hence in 2021, we have started the
ball rolling through the signing of three Memoranda of
Understanding (MoU) with several private companies who
are keen to explore EV in Malaysia. We have also submitted a Dato' Sri Hassan bin Arifin (centre) and Datuk Ir. Baharin bin Din (left) being briefed by the
white paper on EV to various government ministries. Project Director (PMO Electric Vehicle), Ir. Mohd Junaizee bin Mohd Noor (right), on the latest
development of TNB's Electric Mobility Plan.
OUTLOOK FOR 2022 ACKNOWLEDGEMENTS
Following a turbulent 2021 where the economic recovery was derailed following It gives me great honour to have completed my first full year as the President/
a resurgence in COVID-19 cases, 2022 started out with greater optimism as the Chief Executive Officer of TNB. The past year has been a challenging but exciting
global community had integrated the pandemic as part and parcel of daily life. time for TNB, especially now that we have set such ambitious goals before us.
However, as at the time of the publishing of this report, political strife has broken I would like to take this opportunity to express my thanks to the Board of Directors
out in Eastern Europe and escalated into military action, which is threatening whose advice and guidance have made our achievements this past year possible.
to destabilise the nascent global recovery. As a result of the Russian invasion I would also like to extend a very warm welcome to our Chairman, Dato' Sri Hasan
of Ukraine, the price of commodities has spiked even further, which may have Arifin, who joined us in October of last year. I look forward to working together
significant ramifications for power producers such as TNB. with Dato’ Sri in the years to come.
Prior to the conflict, the World Bank had indicated that the global economy On behalf of TNB’s management, I would like to thank the employees of TNB
would expand by 4.1% in 2022, while Bank Negara Malaysia had placed for their continued dedication and sacrifice in achieving our collective purpose
Malaysia’s GDP growth at between 5.5% and 6.5%. Factors contributing to and strategic aspiration. The last two years have been particularly challenging
the recovery would be the resumption of economic activities and a recovery ones, and your perseverance and continued efforts are very much appreciated
in domestic demand. However, these projections are now shrouded by by the entire organisation. The year ahead will come with new challenges and
uncertainty, and it remains to be seen how much Malaysia’s economy and obstacles, and my hope is that we will all pull through it together to make it
markets will be affected by the fallout from the conflict. another successful year for TNB.
Despite the turmoil, we will continue to deliver initiatives guided by our Finally, I would like to express my appreciation to all our stakeholders, including
strategies while remaining focused on enabling the energy transition. Our our shareholders, industry partners and customers, for your continued
efforts to evolve our transmission and distribution network into a grid of support and faith in TNB. It is only through your help and collaborative efforts
the future will continue unabated, with the commencement of RP3 for the that we have been able to accomplish all that we have, and I hope that you
3-year period of 2022-2024. On our generation business, we remain highly will continue to stand by us as we embark on the next leg of our strategy to
focused on further expanding our RE capacity, while continuing to optimise build a greener and more sustainable future. We now stand at a momentous
our existing generation fleet. In addition, we will be fleshing out initiatives time when our actions today, more than ever, will have a direct impact on
that will drive our SP2050 ambitions, which includes our plans for low-carbon the future we leave to the next generation. Let us work together to build a
mobility. brighter and better future.
Lastly, I would like to add that the IBR is a crucial mechanism that maintains Thank you.
the fine balance between ensuring reliable and affordable power for the
rakyat, and the investment needs of the power sector. TNB would like to thank
the Government of Malaysia for their consideration and continued support
for the IBR, particularly at the current time when the rakyat are still managing
the burdens associated with the pandemic and the flooding crisis. Through
prudent implementation of the IBR, we are securing the future of a sustainable DATUK IR. BAHARIN BIN DIN
and effective electric supply industry. President/Chief Executive Officer

Section
03
CREATING
CONTINUED
VALUE
32 The Market Landscape
34 Our Value Creation Model
36 Strategic Review
44 Mapping Our Performance Against
the Capitals
• Financial Capital
• Manufactured Capital
• Natural Capital
• Intellectual Capital
• Human Capital
• Social and Relationship Capital
About This Report We Are TNB From Our Leadership CREATING CONTINUED VALUE
Pages 32 - 55
THE MARKET LANDSCAPE
The COVID-19 pandemic had a

significant impact on Malaysia's overall
economic and sectoral development.
The electricity sector had to adapt,
reassess and re-strategise its long-
term plans to ensure the uninterrupted
operation of the power system while
supporting national recovery.
Another main focus for the energy sector in 2021 was to support the
Government’s economic recovery plan, specifically in regard to its
efforts to safeguard, restart and reshape the Malaysian economy.
Electricity demand in 2021 grew by 1.2% to 111,858GWh from 2020

owing to the resumption of economic activities. Demand is expected
to further grow as the economic recovery intensifies, projected by
Bank Negara Malaysia to be around 5.5% to 6.5% in 2022, up from 3.1%
in 2021. The following sections discuss some of the major trends that
affected the power market landscape in Malaysia. TNB is committed and thus shares a similar target with the Government's pledge in
the 12th Malaysia Plan (12MP), to achieve net zero emissions by 2050.
ENERGY TRANSITION
Growing concerns over climate change and environmental sustainability in growth of the green economy and boost energy sustainability in Malaysia. On
2021 accelerated calls for the transformation of the energy sector to reduce top of that, the government has indicated that it will announce a new National
global dependence on fossil fuels for power generation. This was in response Energy Policy in 2022 to align the development of the Malaysian energy sector
to the growing frequency of climate disasters around the world, including in with global energy transition trends to help the country achieve long-term
Malaysia, which experienced severe flooding in parts of the country towards sustainable competitive advantages.
the end of the year. While the impact of these climate catastrophes has
been devastating, of greater concern is the probability that these climate TNB is fully behind the Government’s target and we have made a similar
catastrophes will recur with increased frequency unless steps are taken to commitment to achieve net zero emissions by the same target year. We have
stem the environmental degradation. outlined our pathway forward towards net zero 2050, and have started to
transition our power generation sources from coal towards renewables. By
It is within this context that the world came together in 2021 to take a 2035, we expect to reduce the intensity of GHG emissions by 35% and cut
major step to address the climate crisis. The United Nations’ Climate Change our coal-fired generation by 50%. Our efforts in this area will not only support
Conference (COP26) held in Glasgow from 31 October 2021 to 13 November the nation’s overall objective but also secure a greener and more sustainable
2021 saw countries pledging to reduce their greenhouse gas (GHG) emissions future for all.
through aggressive structural changes, including quitting coal and focusing
on the development of electric vehicles. These commitments have significant We recognise that there are significant hurdles that we will have to overcome
ramifications for the energy generation business, effectively accelerating along the way, including managing the intermittency of renewables and
energy transition trends to reduce energy-related emissions by transitioning modernising our power grid to handle the energy transition. The energy
from fossil fuels to renewables to generate power. transition will affect the entire value chain of our organisation, from power
generation to distribution, as well as customers' behaviour in their electricity
The Malaysian Government, in advance of COP26, pledged in its 12th Malaysia consumption. We are committed to working together with the Government
Plan to be a carbon neutral country by as early as 2050, and has made a and enhancing all necessary elements of the electric supply industry to
number of commitments to reach that goal, including a commitment to stop achieve the objectives that we have set for ourselves.
building new coal-fired power plants. This ambitious target will accelerate the

THE MARKET LANDSCAPE
INCENTIVE BASED REGULATION (IBR)
The IBR was introduced in 2014 to modernise the electricity supply industry
in Malaysia. It does so by creating a structured and transparent framework for
the setting of tariffs, which secures affordable, reliable and sustainable energy
for our customers, while taking into consideration the capital expenditure
(CAPEX) and operational expenditure incurred by power owners. Through
the IBR, utility companies are accorded the resources to invest and further
upgrade their generation and distribution infrastructure without jeopardising
the energy security of Malaysians.
The IBR sets a base tariff and an Imbalance Cost Pass-Through (ICPT), which
factors in the fluctuation in fuel prices, for a stipulated duration, i.e. the
regulatory period. The Second Regulatory Period (RP2) ended in 2020 and was
due to be replaced by Regulatory Period 3 (RP3) in 2021. Due to the pandemic,
the Government approved a one-year extension to RP2, extending it until
31 December 2021. As a result, the base tariff of 39.45 sen/kWh and the
Electricity Tariff Schedule was maintained for the year.
Alongside the base tariff approval in RP2, the Government had also approved TNB’s
CAPEX of approximately RM7.3 billion for regulated business during the extension.
This covered our spending on several projects, including:
• installing smart meters with an additional 300,000 meters

approved for installation in several major cities under the
Advanced Metering Infrastructure (AMI) project;
• replacing tools and protective equipment, maintaining live lines

FUTURE-PROOFING MESI and wiring new connection; and
In March 2021, the Minister of Energy and Natural Resources (KeTSA) reaffirmed • investing in developing our digital power grid including
that a holistic study will be conducted to review the Malaysia Electricity Supply Distribution Automation, Mobility Solutions, Geographic
Industry 2.0 (MESI 2.0) Reform initiatives announced in 2019. The review will Information System and Volt-Var Optimisation to improve the
examine the initiatives of MESI 2.0 while taking into consideration the current reliability of the distribution grid.
operating environment and economic outlook. The Review will ultimately be
aimed at future-proofing the industry and prepare MESI for the challenges
posed by new disruptive technologies, especially those involving renewable Meanwhile, the Government has granted its approval for the RP3 to run from
energy sources such as solar. In addition, the Review will also ensure that 1 February 2022 until 31 December 2024. With coal prices soaring to a record
MESI remains supportive of the rakyat. This is in line with the Government’s high in 2021—reaching USD270/MT in October 2021—the average applicable
coal price for the July to December 2021 period was higher than the RP2
priorities to revive the country’s economy while protecting the well-being and
Extension base price. The ICPT implementation for the January to June 2022
interests of the people.
period is therefore expected to be in a surcharge position, and the variation in
fuel costs will be addressed by the ICPT mechanism.
TNB recognises that the MESI study will be an important step forward in
securing Malaysia’s long-term prosperity, and have already started preparing TNB submitted recommendations for RP3 in the first quarter of 2021, which
ourselves for all possible future reform scenarios. Our Reimagining TNB detailed our proposal for a fair and reasonable regulatory return, as well as our
strategy, which was put in place in 2016, as well our Sustainability Pathway CAPEX for 2022 which is focused on several key objectives, including:
2050 collectively ensure that we are taking measures to future-proof our • maintaining a safe and resilient network and system;
business, and that we will successfully complete our energy transition without • meeting the growing and changing needs of customers, and
sacrificing financial sustainability or shareholder value creation in doing so. • supporting our energy transition plans.
Our plans are also aimed at charting future growth that is anchored on our
commitment to help create a better world. Our CAPEX proposal for our energy transition projects will ensure that TNB
has the resources to perform the necessary upgrades to our system, in line
TNB is fully supportive of MESI’s direction to evolve and create new with the Government's push to drive the development of renewable energy
opportunities, as well as its push for the development of innovation and in the country. This is detailed in its Malaysia Renewable Energy Roadmap
digitalisation. TNB remains steadfast in its commitment to serving the rakyat (MyRER) launched on 30 December 2021 to further decarbonise the electricity
to create a better world and brighter lives. We look forward to continuing sector. Other items earmarked under our CAPEX proposal will ensure that the
collaborating with KeTSA and MyPOWER to set a future-proofing MESI system remains robust and reliable for continuous and undisrupted supply of
pathway together. electricity to our customers.

Pages 32 - 55
OUR VALUE CREATION MODEL
OUR STRATEGY OUR CAPITALS
FUTURE GENERATION SOURCES

Financial Capital
Shareholders’ Total Effective Weighted Average Cost of Funds (%)
Funds Borrowings
Top Priorities
• Growing TNB’s renewable capacity RM RM
• Expansion of capacity into selected
international strategic markets with strong
58,392.4 51,678.2 4.7 5.0 5.0 5.1 4.9
FY2017 FY2017 FY2018 FY2019 FY2020 FY2021
4.6
growth prospects million million
restated
• Improving performance of existing
generation fleet Please refer to pages 44-45 for more information
Manufactured Capital
Please refer to pages 36-37 for more information
Oil(1)
GRID OF THE FUTURE

Renewable
370.3MW
236.9MW
1.5% 778,514.23 Circuit kilometres of transmission
and distribution line(2)
2.3% Hydro
2,661.0MW
Gas
16.7% 95,665 Primary and secondary
substations(2)
5,747.7MW Coal
Top Priorities 36.1% 6,895.4MW
• Upgrading existing network infrastructure 43.3% 103,968 Primary and secondary
transformers(2)
into a smart, automated and digitally- Equity MW of generating capacity of both domestic and international plants
enabled network
• Optimising network’s productivity, Please refer to pages 46-47 for more information
efficiency and reliability

• Leveraging innovation in the network to Natural Capital Fuel Use (3)
transform customer experience

COAL GAS OIL (1)
451,081.43 TJ 218,739.12 TJ 6,225.62 TJ
WINNING THE CUSTOMER
Intellectual Capital
Top Priorities
• Enhance experience through all customer
Research and Operational and service Technology and business
journeys for service, interaction and Development innovations model innovations
communication channels
• Growth through innovation of new Please refer to pages 50-51 for more information
solutions and service offerings
• Strengthen digital presence via digital
solutions, interactions and enterprise
Human Capital
- Reward structures linked to performance and
Please refer to pages 40-41 for more information Employees RM65.53 million value drivers
34,938 in investment into learning and - An experienced and diverse executive team and
a strong board
FUTURE PROOF REGULATIONS TNB GROUP development - A transformed workforce
Top Priorities Social and Relationship Capital

• Working together with key stakeholders
Customers
towards a stable and sustainable
regulatory landscape Government Trade Union
Investors
Build Create Vendors
Trust Value
Employees Communities
NGO
Please refer to pages 42-43 for more information Please refer to pages 54-55 for more information

OUR VALUE CREATION MODEL
VALUES CREATED AND THEIR IMPACT OUTCOMES
Capital Providers OPERATING PROFIT
Shareholders Total Lenders
Eco
no
dividends
RM4,568.4
Financial Cost
RM3,793.3
RM8,083.0 mil
mic million million
9,364.0
Fuel and Other Operating Costs
8,083.0
8,206.8
7,358.8
6,875.6
Fuel cost
RM15,225.40
million
3,014.0
Other Operating Costs
RM29,609.40
Com
million
11
Adopted Schools
mu
Please refer to pages

144-146 for more
FY2017
FPE 2017*
(Restated)
FY2018
FY2019
FY2020
FY2021
nity
information
30,000
1,699
Primary Students
Graduates
Assisted
Please refer to pages 173-178 for more information NET PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY
Total Energy Units Sold(4):

RM3,661.8 mil
117,214.54GWh
Customer Accounts:
6,904.0
ers
Peninsular
Malaysia 9.66 million
tom
Greenhouse Gas
(GHG) Emissions Sabah 0.66 million
Cus
4,529.2
Intensity(5)
3,661.8
3,723.7
3,592.7
2,622.3
Please refer to pages

2020 2021 147-149 for more
information
0.57 0.55
tCO2e/MWh tCO2e/MWh
GHG Emissions Mitigated(5)
2020 2021
FY2017
FPE 2017*
(Restated)
FY2018
FY2019
FY2020
FY2021
5.99* 7.96
million tCO2e million tCO2e
* Data updated after third party verification
ent
Please refer to pages 48-49
for more information
m
v i ron Notes:
En (1) Oil refers to petroleum-based fuel (inclusive of diesel, oil and distillates).
(2) For operations in Peninsular Malaysia and Sabah.
GHG emissions mitigated due to TNB’s use of (3) From power plants in which TNB has controlling stake for period FY2021.
(1) Renewables (2) Energy Efficiency (4) From domestic power plants which TNB has invested in and has power
(3) Low-carbon generation (4) Tree planting purchasing agreements for domestic customers.
(5) For TNB operations in Peninsular Malaysia only for the period of FY2021.
* Financial Period Ended 31 December 2017

Pages 32 - 55
STRATEGIC REVIEW
FUTURE GENERATION The development of future generation sources

is critical for the transition to greener and more
SOURCES sustainable power.

While energy transition is inevitable, it must nevertheless be managed
carefully to ensure that it addresses the trilemma of energy security,
reliability and sustainability while remaining affordable to the rakyat.
OVERVIEW
In 2021, TNB produced a total of 108,633.54GWh of which 92,538.31GWh
was generated from coal and gas sources, 7,458.22GWh from hydro sources
and 1,163.85GWh from solar and wind sources. Total renewable energy
(RE) made up 7.94% of the total sent out in 2021. We remain committed to
our goal of having RE make up 40% of our total capacity mix by 2025, and
to that end, we are continuing with our efforts to increase our investment
into RE generation by exploring new markets and technologies (e.g.,
offshore wind).
Total installed Capacity under

Number of capacity Equity Capacity Electricity sent out development
power plants (MW) (MW) (GWh) (MW)
Type 2021 2021 2021 2021
Wholly owned
Coal 2 4,080.00 4,080.00 26,134.39 -
Gas 7 3,929.43 3,929.43 22,326.41 -
Non-carbon 94 2,664.46 2,664.46 7,118.97 -
Others - - - - -
Majority owned
Coal 2 3,600.00 2,360.00 20,007.08 -
Gas 3 2,137.83 1,449.19 8,057.33 -
Non-carbon 30 437.13 260.62 711.92 -
Others 49 199.36 165.46 518.34 -
Minority owned
Coal 3 1,650.00 455.37 11,063.63 350
Gas 2 1,265.40 369.09 4,949.47 -
Non-carbon 14 326.80 106.26 791.17 1,380
Others 1 1,190.00 71.40 6,954.82 -

STRATEGIC REVIEW
DEVELOPMENT HIGHLIGHTS
Prioritising Green Investments Globally
Restructuring Vantage RE Ltd was launched in July 2021 with the aim of owning, operating and managing TNB’s portfolio of RE assets in the UK and
Entities to Europe. In addition, TNB’s International Asset Group was restructured into the New Energy Division (NED) to drive TNB’s RE growth and
Enhance establish strategic partnerships with leading global RE players. NED oversees both Vantage RE as well as TNB Renewables, the latter of
Performance which is focused on growing our RE footprint in the domestic and Southeast Asian markets.
Increasing Our We added 42MW into our international RE portfolio through two strategic acquisitions by our wholly-owned subsidiary, Vantage
RE Capacity RE. The first transaction was the purchase of a 500kW single wind turbine in the United Kingdom (UK) in May 2021 while a second
transaction in October 2021 saw Vantage RE acquire a 49% stake in an offshore wind company, Blyth Offshore Demonstrator Limited
(BODL) from EDF Renewables. The BODL transaction added 41.5MW of offshore wind assets, along with further development rights for
a floating offshore wind project of up to 58.4MW in the UK.
Streamlining TNB divested its non-core and low-performing investments in 2021 as part of a portfolio restructuring exercise. In August 2021, we
our Portfolio divested our entire holding of compulsory convertible debentures (CCD) in GMR Bajoli Holi held by our wholly-owned subsidiary, TNB
Topaz Energy Sdn Bhd. We also completed the divestment of our entire 100% stake in TNB Power Daharki Ltd, which owns and operates
a 235MW combined-cycle gas turbine power plant through its wholly-owned subsidiary TNB Liberty Power Limited (LPL), to AsiaPak
Investments Limited. The two divestments are consistent with our strategy to monetise our assets in India and Pakistan, and refocus
our investments in key strategic markets.
Expanding Local Generation
Award-Winning Southern Power Generation Sdn Bhd’s Track 4A Power Plant in Pasir Gudang, Johor was commissioned in 2021, increasing our total
Power Plant generating capacity by 1,440MW. Track 4A is the first commercial power plant to be equipped with twin GE 9HA.02 gas turbines—one
Commissioned of the world’s largest and most efficient power-generating models—making the power station a first-of-its-kind, featuring advanced
technology integration balancing climate awareness, energy affordability, and reliability. The combination of performance, efficiency
and environmental sustainability led to Track 4A being awarded the Plant of the Year by trade publication POWER magazine.
Enhancing the Jimah East Power (JEP) won the Clean Coal Technology Utilisation for Large Power Generation category at the ASEAN Energy Awards
Sustainability 2021 organised by the ASEAN Centre of Energy. The award recognises best practices of cleaner and sustainable coal use and the
of Our Plants transition towards a more sustainable and lower carbon emission. JEP boasts two ultra-supercritical plants, which makes power
generation from coal more efficient.
Nenggiri The RM5 billion Nenggiri Hydroelectric Project in Kelantan was given the go-ahead by the State Government to commence work in
Hydroelectric 2021. When completed in 2027, Nenggiri will have a maximum generating capacity of 300MW and become an important contributor to
Project the nation’s aim of increasing its RE capacity. The Nenggiri dam will also help mitigate floods and function as a water reservoir in the
Progress state of Kelantan, while its construction will have a net positive impact on the socio-economy of the state and country.
OUTLOOK
In terms of our local generation capabilities, we will continue to focus our efforts on maintaining reliability excellence to achieve high availability and
reliability of our key assets. In practical terms, this means meeting all obligations stipulated under the Power Purchase Agreement while ensuring that our
assets perform at optimal levels. We will also be on the lookout to grow our asset base and expand our services in several key areas, including asset-light
services, clean and green plant-ups and repowering opportunities, while exploring new business ventures. Finally, we will also continue with our plant
turnaround programme and implement initiatives to further uplift productivity.
On the international front, we will continue to look for opportunities to grow our RE portfolio while simultaneously exploring new classes of energy
transition-related investments, including energy storage. In terms of our target markets, we will continue to focus on key strategic markets where we
already have a presence, such as the UK. Nonetheless, we are not restricting ourselves to only investing in those markets, as we recognise that there may
be opportunities in other markets and countries with growing global interest in RE from both the supply and demand sides.

Pages 32 - 55
STRATEGIC REVIEW
GRID OF THE A smart and modern grid is essential in

supporting energy transition and enabling
FUTURE the secure, reliable and efficient transport of

renewable energy.
Additionally, our fully-automated modern grid also empowers our
customers to better manage their power usage, as well as facilitate new
transmission models such as peer-to-peer energy trading.
OVERVIEW
The National Grid in Peninsular Malaysia and Sabah connects over 10.32
million homes and businesses and is connected to Thailand’s EGAT grid
system in the north, and to Singapore Power’s grid system in the south.
Our grid assets are managed by two of our core divisions: namely Grid and
Distribution, which manage the transmission network and distribution
network respectively. In Sabah and Labuan, the energy infrastructure is
overseen by Sabah Electricity Sdn Bhd (SESB), in which TNB holds an 80%
stake. SESB is responsible for meeting the growing demand for electricity
by exploring new innovations in generation, transmission and distribution.
GRID STATISTICS
Transmission Lines Transmission Substations Electricity Transmitted Peak Demand
Peninsular 25,185.69 Circuit-km Peninsular 472 Substations Peninsular 124,065GWh Peninsular 18,585MWh
Sabah 3,153 Circuit-km Sabah 49 Substations Sabah 6,525.85GWh Sabah 1,003MWh
Distribution Lines Distribution Substations Electricity Distributed
Peninsular 723,134km Peninsular 86,468 Substations Peninsular 111,858GWh

Sabah 27,042km Sabah 8,676 Substations Sabah 6,093.29GWh

STRATEGIC REVIEW
Transmission Network Distribution Network
The Grid division remained steadfast in its effort to build a Grid of the Future We strive to excel in our role as the Operator of Network, Facilitator of
(GoTF) by continuing to invest prudently into grid modernisation and grid Energy Transition and Enabler of Customer Empowerment. The Smart
intelligence through digitalisation. In 2021, we successfully deployed 10 Utility 2025 (SU2025) Masterplan was established in 2021 to serve as an
high-impact GoTF projects to enhance the overall performance of our grid. integrated roadmap for Distribution Network Division. Under Smart Utility
These are: (SU2025) Masterplan, five target state capabilities have been defined:
• Automatic Fault Analysis • Asset Investment Planning
• Grid Digital Intelligence Management System 1 Resource Optimisation
Infrastructure • GPS Tracker 2 Connected and Smart Workforce
• Asset Performance • Smart Glass 3 Self-Healing Grid
Management System • Air-conditioning 4 Energy Efficiency
• Centralised Tripping Optimisation
5 Empowered Customers
Information System • Security System
• Grid Project Management Optimisation
System In 2021, we continued our efforts to modernise our distribution network
via several major projects as part of the RP2 extension. These include
Meanwhile, we are making progress towards integrating energy industry the implementation of our Advanced Metering Infrastructure (AMI),
best practices by establishing strategic partnerships and collaborations Distribution Automation (DA), Smart Work & Asset Total Solutions
with key partners, such as CIGRE (International Council on Large Electric (SWATS), and Geographic Information System (GIS). AMI surpassed the
Systems) and Elia, a Belgian transmission system operator. In addition, RP2 target of installing 1.5 million smart meters after installing over 1.8
a tripartite collaboration between Grid, Grid System Operator and million by the end of 2021. As for DA, we successfully installed DA systems
Distribution Network to boost demand-side management through on 3,520 substations in 2021, bringing the total number of installations
Conservation Voltage Reduction (CVR) commenced with the first phase to 20,797 distribution substations. Meanwhile, medium voltage GIS data
being successfully implemented at PMU Permas Jaya in October 2021. We production has been completed for all states in Peninsular Malaysia,
also successfully integrated Variable Shunt Reactors into our high voltage while SWATS has established 30 projects for various departments
transmission systems to help stabilise the voltage during load variations. nationwide.
Paving the ESG Journey
Building a GoTF should not be at the expense of the environment and society, and we have taken steps to ensure that our activities have a positive impact
on ESG. The following table provides a summary of our ESG initiatives related to our grid.
Environment: Social: Governance:

• Digitalise our grid through the • Implement Nampak, Dengar dan Rasa • Attain strong financial performance
implementation of SU25 initiatives Selamat (NDRS) initiative and adopt ISO • Implement loss management initiatives
• Refurbish mini hydro and solar hybrid 45001:2018 (Grid and Distribution Network) • Implement SAIDI 50 initiatives
stations to improve worker safety
• Uplift workforce capability through our Grid
• Carry out flood analysis and risk assessments
and Distribution Network Academies and
on our distribution network assets
Engineering Centre
• Replace existing HPSV streetlights with LED • Brighten up rural areas by installation of
to save on power usage streetlights under the Lampu Jalan Kampung
• Build Malaysia's first SF6 gas recycling center programme
to sustainably manage its disposal • Facilitate Bekalan Elektrik Luar Bandar to
electrify kampungs and Orang Asli settlements
OUTLOOK
As part of RP3, we will be investing around RM20 billion in CAPEX on our transmission and distribution grid. The investments will help us to maintain a safe
and resilient network that is capable of meeting the evolving needs of our customers and supporting the energy transition. In addition, we will continue to
work towards our target Smart Grid Index (SGI) score of 85 by 2025 through the implementation of new technology and digital solutions in our grid. We will
also step up our efforts in managing the ESG risks on our assets, and incorporate enhanced ESG measures and ways of working in our operations.

Pages 32 - 55
STRATEGIC REVIEW
WINNING THE TNB is committed to offering superior customer

experiences and empowering customers
CUSTOMER through innovative solutions and consistent

engagements.
This is critical for the long-term sustainability of our business, as well as
in seeking the cooperation of our customers in implementing the energy
transition. Our ultimate aim is to become the energy retailer of choice,
and we will do so by offering unique value propositions to our customers,
building a world-class team with the right culture and DNA, and creating
value for our shareholders.
OVERVIEW
2021 saw TNB’s Retail Division deliver exceptional customer experience
to over 9.6 million customers via various interaction channels, including
our online media, our customer careline and through our physical
Kedai Tenaga. Initiatives were implemented to empower our customers
through the delivery of innovative solutions aimed at helping them take
greater control over their energy consumption habits and their monthly
energy spend. Our Customer Satisfaction Index (CSI) hit a new high of 8.7
in 2021, while our various customer engagement channels individually
received high approval ratings.
BREAKDOWN OF CUSTOMERS ACROSS DIFFERENT SEGMENTS IN MALAYSIA
RESIDENTIAL COMMERCIAL INDUSTRIAL MINING STREETLIGHT OTHERS
Peninsular Malaysia Sabah

10,000,000
544,186
529,185
519,308
9,000,000
505,239
488,270
8,000,000
7,916,405
7,728,407
7,553,229
7,000,000
7,378,425
7,181,846
6,000,000
5,000,000
1,618,284 103,352
1,510,341 92,906
1,575,198 98,479
1,553,607 96,167
1,590,373 99,974
4,000,000
3,000,000
80,881 6,585
70,402 6,042
75,463 6,335
77,991 6,535
32,883 1,614
72,554 6,129
29,749 1,589
31,654 1,603
30,520 1,598
28,867 1,553
2,000,000
138
14,917
1,000,000
14,635
14,459
14,261
13,733
59
53
53
45
38
0
FY2017
FY2018
FY2019
FY2021
FY2017
FY2021
FY2021
FY2017
FY2021
FY2020
FY2018
FY2019
FY2017
FY2020
FY2018
FY2019
FY2020
FY2018
FY2019
FY2017
FY2020
FY2018
FY2019
FY2021
FY2017
FY2020
FY2018
FY2019
FY2021
FY2020

STRATEGIC REVIEW
Continuous Improvement of Customer Experience and Engagement Growth of Non-Regulated Business
The Retail Division reported a record CSI for 2021 of 8.7, with customers reporting TNB’s non-regulated business continues to grow in 2021 as residential and commercial
greater satisfaction in three main areas, namely service levels at TNB’s self-service customers showed greater awareness and interest in energy efficiency and smart
kiosk, the reliability and quality of electricity supply and the performance of energy solutions. Achievements in 2021 include the record sales of 612,361MW of
the myTNB mobile app. Our initiatives to communicate energy efficiency was Renewable Energy Certificates (REC), a positive indicator of the growing interest in
also well received by our customer base and scored 8.5 on the EE CSI. At the clean energy. In addition, we have also seen uptake in the customer demand for
same time, all of TNB’s customer experience channels received uniformly high smart energy solutions including:
feedback from customers, scoring over 92% on the Customer Experience Index
(CEI) from four touchpoints. Specific achievements contributing to the higher CEI • Smart home devices for residential customers
• Energy monitoring systems for commercial and industrial customers
scores include:
• Capacitor bank solutions for customers with low power factors
• Implementing our Virtual Queue Management System at Kedai Tenaga to TNB’s wholly-owned subsidiary Sdn Bhd (GSPARX) which is the point-of-sale for our
expedite service time solar rooftop panels saw increased demand for self-generation solutions under the
• Achieving service delivery times of GSL:99.9% and MSL:99.9% in line with Net Energy Metering (NEM) scheme, registering secured projects of 116.3MWp in 2021.
regulatory requirements
• Ensuring that 99% of our customers received timely and prompt bills GSPARX had also entered into a collaborative agreement with Universiti Tun Hussein
Onn Malaysia (UTHM) on R&D and knowledge sharing in the field of solar energy. As part
Concurrently, Retail Division also arranged targeted engagement sessions in of the collaboration, GSPARX completed the solar installation of a 6.9MWp at UTHM’s
2021 to improve communication with stakeholders yielding highest Regulatory main campus, making it the single largest solar installation at a public institution of
Relationship Strength Index (RRSI) of 95% in 2021. higher learning. We are also working together with the Ministry of Energy and Natural
Resources (KeTSA) to install more solar PV solutions on government buildings through
pilot projects consisting of government agencies, local councils and schools.
Embracing Digitalisation In support of the Government’s Jalinan Digital Negara (JENDELA) initiative, our
subsidiary Allo Technology Sdn Bhd. (Allo) continued to make good progress in
bridging the digital divide and empower Malaysians in underserved areas in Perak,
Digital is the way of the future and TNB is actively integrating digital solutions Melaka, Kedah, Penang, Selangor, Kuala Lumpur and Johor.
throughout the value chain. In 2021, we increased the number of myTNB users
by 30%, increasing the total to 5.5 million TNB customers and saw a substantial Through the Open Access model, Allo has struck strategic collaborations with seven
Retail Service Providers namely Maxis, Astro, Digi, Celcom, U Mobile, Freshtel and
reactivation of dormant accounts. Additionally, we recorded over four million
Redtone, allowing them to expand their reach beyond urban areas.
payment transactions made through myTNB.
Meanwhile, another of our subsidiary, TNB Engineering Corporation Sdn Bhd (TNEC)
In 2021, Retail launched the Digital Billing pilot in Melaka, with the aim to which is involved in the sustainable energy sector has commenced the operation
encourage customers to subscribe for paperless bills. Concurrently, we also and maintenance of the district cooling facility at the KLIA on 1st July 2021 through
launched a pilot for the Energy Budget feature on myTNB to help customers an incorporation of Cooling Energy Supply Sdn. Bhd., a new subsidiary of TNEC, with
better monitor their electricity usage. MAHB’s subsidiary Airport Ventures Sdn. Bhd.
Giving Back to the Community
TNB continued to implement community-focused programmes with two objectives in 2021. The first was to give back to the community by helping to alleviate the burdens of the
less fortunate rakyat and to make a positive change in marginalised communities. Our second objective was to raise the general level of energy literacy to help Malaysians better
understand energy issues and make more informed decisions about electricity use. The following table provides an overview of our community-based initiatives over this past year.
Community ESG Programmes Energy Literacy Programmes

• Electrified around 30 villages via Projek Bekalan Elektrik Luar Bandar • 34 energy efficiency (EE) Awareness Programmes for 45,290 participants nationwide
• Provided one-month rebates to over 148,881 customers affected by the floods in • Held the ‘Pertandingan Kesedaran Kecekapan Tenaga Elektrik Di Rumah, Zero
Kuala Lumpur, Selangor, Pahang, Johor, Negeri Sembilan, Melaka, Kelantan and Karbon dan Kelestarian Alam Sekitar’ in collaboration with Kelab Duta Rimba to
Terengganu foster energy literacy in the younger generation.
• Collaborated with certified contractors to conduct free wiring inspection for more • Online videos on Kempen Kesedaran Pengguna Bijak Tenaga as well as EE
than 1,000 B40 flash flood victims advocacy programmes on local radio stations that helped us communicate our
• Executed rewiring and electrification initiative for 278 houses of indigenous people energy efficiency messaging to a wider audience.
OUTLOOK
Retail Division's initiatives going forward will be guided by five identified retail roles:
• Principal Energy Provider: As the default energy supplier, we will ensure continuity of supply, delivering efficient and effective products and services to all customers
• Preferred Retailer: We aim to be the preferred retailer providing a reliable supply of energy to a selected pool of large key industrial and commercial customers, and
support their activities by providing premium and personal customer service
• Digital Retailer: We will deploy connected data solutions to engage and provide value-added services to our customers and enhance their experience with TNB
• Gentailer: We operate at both ends of the retail value chain through the ownership of RE generation assets and through retailing the generated energy which allows us
to hedge against the market
• Solutions Innovator: We will develop and offer tailored customer solutions based on our values, and develop innovative solutions and services to improve business growth
Our aim in developing these roles is to attain commercially sustainable and scalable returns for our regulated business, as well as new and recurring revenue from the market
for our non-regulated business. Our approach will take differentiated approaches to better market ourselves to the various customer segments, and will see the development
of innovative digital solutions to further grow our footprint.

Pages 32 - 55
STRATEGIC REVIEW
FUTURE PROOF
Imbalance Cost Pass Through (ICPT) Updates
REGULATIONS
The Government maintained the ICPT rebate of 2.0 sen/kWh
throughout 2021 in view of the overall reduction in actual power
generation cost leading up to June 2021 for all customers, including
residential customers with monthly consumption of less than 300kWh.
The balance or excess from total ICPT savings for the period was
channelled to the Kumpulan Wang Industri Elektrik (KWIE) which is
responsible for ensuring the stability of the electricity tariff. Funds
from KWIE were therefore deployed following the spike in fuel prices in
the second half of 2021, with coal prices exceeding USD200 per tonne,
causing fuel and generation cost to increase by RM1.67 billion.
While the spike in fuel prices would typically send the ICPT into a
surcharge position, the Government decided to maintain the tariff rate
and the 2.0 sen/kWh rebate for residential customers for the first half
of 2022. This decision was made in view of the challenges posed by
the pandemic and severe flooding in several states at the end of the
year which had substantial financial implications for a large segment
of society. A total of RM715 million has been allocated from KWIE to
maintain the rebate and absorb the ICPT surcharge. Commercial and
industrial users, however, will be imposed a surcharge of 3.7 sen/kWh to
reflect the increased generation cost.
Leading Malaysia's Energy Transition

TNB operates in the highly regulated electricity
supply industry governed by rules and regulations
TNB made a firm commitment to accelerate and support the nation’s
issued by the Government and other regulatory energy transition programme with the launch of our Sustainability
authorities. Pathway 2050 (SP2050) plan. SP2050 lays out our aim to achieve net zero
emissions by 2050 in line with Malaysia’s green aspirations, and also our
As changes in regulations may have a significant impact on the way we do plans to future-proof our business by focusing on the development of
business and on the sustainability of our enterprise, it is imperative that we green and clean energy. In fulfilment of these commitments, TNB will
engage and collaborate with the regulatory authorities to keep up to date accelerate our efforts to increase the proportion of RE in our installed
on new or proposed changes to the regulatory environment, and to help capacity, as well as develop new solutions that will help the nation reduce
guide and steer the development of the industry. TNB also works closely with its carbon footprint. As part of our journey towards SP2050, we have
the Government to develop strategies and solutions towards reducing the pledged to no longer invest in greenfield coal-fired power plants, and
nation's carbon emissions via energy transition, primarily in the energy sector, reduce our emissions intensity and coal generation capacity to 35% and
but also in the transportation sector through electric vehicle (EV) adoption. In 50%, respectively by 2035.
addition to our initiatives to boost renewable energy (RE) generation capacity,
we also work together with the Government to grow the EV sector in Malaysia.
ASEAN Connections
One of the key takeaways from the United Nations’ Climate Change
OVERVIEW Conference of the Parties (COP26) held in 2021 was the need for greater
Despite the continuing disruptions arising from the COVID-19 pandemic, collaboration between countries to increase RE adoption and allow for
TNB continued to work proactively together with the Government and greater collaboration in the transmission of power. TNB had already
regulatory authorities in 2021 to develop new solutions for the electricity taken a first step in greater regional collaboration as a participant of
supply industry. This included working on policy changes that will have the Lao PDR-Thailand-Malaysia Power Integration Project (LTM-PIP),
long-term impact on the industry, e.g. policies on RE and EV, as well as on ASEAN’s first multilateral energy trading platform, through which
initiatives that will have an impact in the short and medium term, specifically Malaysia purchases electricity from Lao PDR via Thailand’s existing
on the implementation of Regulatory Period 3 (RP3) that runs from February transmission grid. In 2021, TNB imported 0.89GWh of hydro energy from
2022 to December 2024. Lao PDR through the LTM-PIP.

STRATEGIC REVIEW
Enhancing Malaysia’s RE Sector
There has been a renewed urgency over the past few years to accelerate the development of RE as worries over climate change continue to grow. TNB
has likewise accelerated its efforts to develop the sector, further encouraged by the Government’s aspiration to reach net zero status as early as 2050.
Key developments in 2021 are as follows:
• Under the 12th Malaysia Plan (RMKe-12), the Government has committed to increase RE to account for 31% of total installed capacity by 2025. The nation
has also committed to reduce its GHG emission intensity—as a ratio of Gross Domestic Product (GDP)—by 45% by 2030, relative to its 2005 levels.
It also seeks to become a carbon neutral country as early as 2050.
• KeTSA launched the Malaysia Renewable Energy Roadmap (MyRER) which seeks to further decarbonise the Malaysian energy supply industry by 2035. Under
MyRER, emissions intensity, as a ratio of GDP, is expected to further reduce to 60% while RE share of generation capacity will increase to 41% by 2035.
• KeTSA introduced the new Net Energy Metering 3.0 programme (NEM 3.0) for the installation of rooftop solar panels. The quota allocated for NEM 3.0
is 800MW, which has been divided into three categories:
- NEM Rakyat (100MW) for residential customers,
- NEM Gomen (100MW) for government buildings, and
- NEM NOVA (600MW) for commercial and industrial customers.
• The Energy Commission shortlisted 30 companies in 2021 for the development of the Large Scale Solar 4@MEnTARI project (LSS4), with a capacity of
823.06MW out of the offered capacity of 1,000MW. Our wholly-owned subsidiary TNB Renewable Sdn Bhd was shortlisted for a 50MW block for LSS4.
New Enhanced Dispatch Agreement+ (NEDA+) Promoting EV Adoption
NEDA is an industry initiative spearheaded by the Energy Commission to While the decarbonisation of the energy sector is crucial for the energy
improve the efficiency of Malaysia’s power generation sector. Launched transition, it is just as important to decarbonise other sectors, including
in June 2017, NEDA enables eligible power generators without long- the transportation sector, to ensure a holistic approach to the nation’s
term power purchase agreements (PPAs) or service level agreements green aspirations. In focusing on the emissions of the transportation
(SLAs), to sell electricity to the grid. Participation in NEDA is also open sector, TNB has intensified its efforts to accelerate EV adoption and to
to power plants with existing PPAs and SLAs. In 2021, the Commission advance the sector in 2021.
launched NEDA+ to increase participation by introducing new criteria for
participation, including: As part of our efforts to foster a more holistic approach to EV development,
TNB issued an invitation to other stakeholders to work together with us to
develop the sector at the CEO Action Network Roundtable on Low Carbon
• Introducing Solar Power Producer as a new participant category for
Mobility in July 2021. Stressing the importance of an all-of-society approach
Large Scale Solar 3@Mentari (LSS3) generators.
for decarbonisation to work, our approach also places emphasis on the future
• Setting new bidding periods, bidding mechanisms and settlement
economic value of developing local EV expertise. Since then, we have signed
principle where generators are paid at the actual System Marginal
MoUs with several industry stakeholders, including Sime Darby Auto Bavaria
Price (SMP) as opposed to at the bid price in line with international Sdn. Bhd, SOCAR Mobility (M) Sdn. Bhd. and DHL Express (M) Sdn. Bhd.,
best practices. stating our intention to collaborate together on promoting EV adoption.
As at the end of 2021, five generators with a total registered capacity of In addition, we had submitted a white paper on EV to various government
101.3MW had signed up to NEDA+. ministries in 2021, to kick-start discussions on accelerating EV adoption
and EV industry growth.
OUTLOOK
The Government has approved the commencement of RP3 under IBR beginning 1 February 2022, that will run until 31 December 2024. We managed to
secure a fair Weighted Average Cost of Capital (WACC) and sufficient expenditure allowance for the next three years. We believed that the allowed capital
expenditure for RP3 is set to bring significant economic benefits towards stimulating the nation's economic recovery, and we will do our utmost to properly
utilise the allowance towards the benefit of the nation.
We will also continue working with various stakeholders, including the Government, to facilitate the roll-out of EV-friendly policies in line with the
Government's plans highlighted in RMK-12 and the Low Carbon Mobility Blueprint 2021-2030 announced by the Ministry of Environment and Water. We
believe that the Government has recognised the importance of green mobility, as seen from the launch of its Low Carbon Mobility Blueprint in 2021, and
TNB is committed to nurturing this budding industry. As the largest utility in Peninsular Malaysia, we recognise our crucial role as a catalyst for EV adoption,
especially through the provision of EV charging infrastructure.
We remain confident that we can stay ahead in navigating key challenges including the risks posed by climate change and the pandemic, while continuing
our efforts to ensure energy reliability and balancing energy affordability and sustainability, in addressing the Energy Trilemma.

Pages 32 - 55
FINANCIAL CAPITAL
We make use of financial capital in almost all aspects of our activities aimed at creating value for our stakeholders, including our shareholders.
Overview 2021 Highlights

TNB Group’s revenue increased 19.7% year-on-year (yoy) to RM52.63 billion from
RM43.98 billion in 2020. The higher revenue was due to higher electricity sales,
which was in turn driven by higher consumption recorded for both residential
EBITDA MARGIN
and industrial customers, and the upward Imbalance Cost Pass-Through (ICPT) (%)
adjustment due to higher fuel prices. Total electricity sales had risen 19.3% yoy
to RM51.56 billion in tandem with the resumption of economic activity, while
the ICPT surcharge totalled RM4.51 billion as compared against an adjustment of
RM3.03 billion in 2020. 2017 32.6
Profit attributable to the owners of the Company increased 1.9% yoy to RM3.66 2017* 32.3
(Restated)
billion from RM3.59 billion a year ago, while the Group’s Earnings Before Interest,
Taxes, Depreciation and Amortisation (EBITDA) rose 4.4% to RM18.77 billion from 2018 26.5
RM17.98 billion during the same period. However, EBITDA margin had moderated
slightly, to 35.7% from 40.9% the previous year, due mainly to higher operating
2019 36.1
expenses and impairments booked over the course of the year.
TNB Group’s Profit After Tax (PAT) for 2021 came in at RM3.86 billion, up 6.9% 2020 40.9
yoy from RM3.62 billion in the previous year. The higher PAT is due to the higher
operating profit, the increase in share of results of associates, and accounting 2021 35.7
gains on the fair value of financial instruments. This was partly offset by higher
foreign exchange losses and tax expenses during the current year. * Financial Period Ended 31 December 2017
Borrowings
Our financial standing continues to be validated by the strong credit ratings assigned by both local and international rating agencies: AAA/Stable by RAM
Ratings, A3 Stable by Moody’s, BBB+ Stable by S&P and AAA/Stable by MARC. The health of our credit ratings has enabled us to raise funds via local and
international capital markets, banks and other financial institutions. Our foreign exchange (forex) and interest rate exposures continue to be governed by
TNB’s Treasury Policy, which protects the Group’s profit from material adverse movements due to rate fluctuations. We continue to manage our short-term
forex exposures through hedging a minimum of 50% of known foreign currency exposure for up to a 12-month period through forward exchange contracts
and natural hedges.
Credit rating as of 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17
S&P BBB+/Stable BBB+/Stable BBB+/Stable BBB+/Stable BBB+/Stable
Moody's A3/Stable A3/Stable A3/Stable A3/Stable A3/Stable
RAM AAA/Stable AAA/Stable AAA/Stable AAA/Stable AAA/Stable
MARC AAA/Stable AAA/Stable AAA/Stable AAA/Stable AAA/Stable
2021 Highlights
BORROWINGS CURRENCY MIX DEBT MATURITY PROFILE

(RM MILLION) (RM MILLION)
RM2,092.03 RM2,357.00
2021 5,380.14
MYR
USD 2022 3,266.45

RM8,035.86
JPY
2023 1,102.16
GBP
2021 2024 1,349.39
2025 2,856.94
RM39,193.30 2026 and

39,295.80
beyond

FINANCIAL CAPITAL
Dividend Policy
TNB’s Board of Directors approved a total dividend payout of RM2.29 billion for FY2021. This comprises a final dividend of 18.0 sen per share and an interim
dividend of 22.0 sen per share, which brings total dividend payout to 40.0 sen per share, as compared against 80.0 sen per share in FY2020. Our dividend
payment for the year translates to 52.8% of the Group’s Adjusted Profit after Tax and Minority Interests (PATAMI) excluding extraordinary, non-recurring items
of RM4.34 billion.
With this dividend payment, our payout ratio remains within the higher tier of our 30% to 60% dividend policy for the fifth year running, which is in line
with our commitment to create greater value for our shareholders. We adhere to the Companies Act 2016 and apply prudent financial risk management by
assessing the Group’s solvency and ability to settle short-term loan obligations in deciding on the quantum of our dividend payment. The Board believes
that TNB’s dividend payment record strikes the right balance between rewarding our shareholders and ensuring that our operations remain sustainable.
2021 Highlights
TOTAL DIVIDEND RM
(SEN)
Interim Final single tier dividend Special
0 10 20 30 40 50 60 70 80 90 100
2017 17.0 44.0
2017*
(Restated) 21.4
2018 30.3 23.0
2019 30.0 20.0 50.0
2020 22.0 18.0 40.0
2021 22.0 18.0
TOTAL DIVIDEND RM
(SEN)
Dividend Payout of Group PATAMI (%) Dividend yield (%)
60
52.8
50.0 55.8 56.0 58.5
50
44.0
40
30
20
10 7.5 7.7
4.3 3.9 4.3
1.4
0
2017 2017* 2018 2019 2020 2021
(Restated)

Pages 32 - 55
MANUFACTURED CAPITAL
Our manufactured capital comprises power and non-power related assets that have both direct and indirect impact on our operations to provide efficient,
reliable and safe electricity.
Asset Activities and Achievements in 2021 Focus in 2022
Power Generation • Maintained a high Equivalent Availability Factor (EAF) for our • Pursue generation business growth opportunities
Assets domestic power plants (82.9%) . through:
• Received Letter of Notification (LoN) from the Kelantan State - Energy-related service offerings
Thermal generation Government on tariffs of the 300MW Nenggiri hydroelectric plant, - New asset plant-ups leveraging existing
plants: which is ready to kick off in 2022. capabilities and latest technologies
• 7 coal fired plants • TNB Renewables Sdn Bhd shortlisted for 50MW block at Large Scale - Asset renewals through repowering, refurbishing
• 12 gas fired plants Solar 4 @ Mentari (LSS4). or repurposing of existing asset portfolio
• 50 oil, diesel & solar • Agreement from the Energy Commission to commence the Hydro • Develop domestic business and operational excellence
hybrid Life Extension Programme on the Kenyir hydroelectric plant. by scaling up plant turnaround programme and
• Launched Vantage RE Ltd in July 2021 to own, operate and manage
productivity uplift measures implementation.
Non-carbon plants: our RE portfolio in the UK and Europe.
• Explore growth levers such as digital power plant
• 20 Large hydro • Embarked on strategic partnership with Électricité de France (EDF)
technology, energy efficiency, operation and
• 118 renewable following the purchase of 49% stake in Blyth Offshore Demonstrator
maintenance improvement.
energy (mini hydro, Limited (BODL) from EDF Renewables (EDFR) through Vantage RE Ltd.
solar & wind) • Establish a RE platform in Southeast Asia.
• Streamlined international holdings through the divestment of
investments in Liberty Power Limited in Pakistan and GMR Bajoli
Holi Hydropower Private Ltd in India.
Power Network • Domestic networks performed at world-class levels with • Investing around RM 20.1 billion into the transmission
Assets transmission system minutes at 0.09 minutes and System Average and distribution network over the Regulatory Period 3
• 28,338.69 km Interruption Duration Index (SAIDI) at 45.25 minutes per customer. period (2022 - 2024).
of transmission • Increased the Smart Utility Framework score for our Distribution • Installation of an additional 600,000 smart meters
network Network by 30% to 2.4. as part of TNB’s nationwide Advanced Metering
• 521 transmission • Increased our Smart Grid Index score for 2021 to 67.9 from 62.5 in the Infrastructure (AMI) programme in 2022.
substations previous year. • Implement DA at around 3,496 distribution substations
• 750,175.54 circuit • Completed RM6.9 billion worth of domestic network enhancements to further reduce restoration time during outages in
km of distribution including: 2022.
network - Distribution automation (DA) systems at 3,520 substations, bringing
• Adopt more digital technologies into both grid and
• 95,144 distribution overall total to 20,797 distribution substations covering 25% of all
distribution networks.
substations substations in Peninsula Malaysia, benefiting 2.3 million rakyat
- Bringing the total of smart meter installations to over 1.8 million,
surpassing the 1.5 million target set for RP2
• Completed medium voltage Geographic Information System
(GIS) data production for all states in Peninsular Malaysia and Low
Voltage data production in Cheras and Putrajaya/Cyberjaya, as well
as rolling out new functions for GIS.
• Completed installation of replacement LED street lights at all 41
approved cities, as well as 25,000 units through the Lampu Jalan
Kampung programme.
• Obtained SIRIM ISO certifications for Distribution Network, ISO
45001:2018 (Occupational Health and Safety Standard) and ISO
55001:2014 (Asset Management).
Non-Power Assets • Connected a total of 174,341 premises in the states of Melaka, Perak, • Explore options to further electrify TNB’s vehicle fleet in
• 11.23 million sq ft Kedah, Penang, Selangor, Kuala Lumpur and Johor to the Jalinan line with our low-carbon mobility aspirations.
of office and Digital Negara (JENDELA) national high-speed broadband project. • Meet JENDELA target of hooking up an additional
operational work • Signed three Memoranda of Understanding with Sime Motors, 32,374 premises in Johor and 1,780 premises in Penang.
space (Total of 5,696 SOCAR and DHL, to collaborate together on promoting electric • Explore the development of EV fast charging station
premises) vehicle (EV) adoption and developing EV infrastructure. infrastructure along PLUS highways.
• 21,556.74 km of fibre • Completed the digitisation of 14,603 parcels of TNB lands to improve
optic network effectiveness of regulatory & compliance management.
• 4,878 vehicles

MANUFACTURED CAPITAL
2021 Highlights
EQUIVALENT AVAILABILITY FACTOR (For all majority-owned plants) Peninsular Malaysia Sabah International
93.26 94.48 95.61

87.39
81.77 82.89
71.43 71.29 75.11
FY2019 FY2020 FY2021
EQUIVALENT UNPLANNED OUTAGE FACTOR (For all majority-owned plants) Peninsular Malaysia Sabah International
20.05
14.36
11.86
7.97 7.85
6.65
5.50
3.49
1.82
FY2019 FY2020 FY2021
SAIDI - PENINSULAR MALAYSIA SAIDI - SABAH
FY2019 48.13 FY2019 307.97
FY2020 44.95 FY2020 284.15
FY2021 45.25 FY2021 268.05
SYSTEM MINUTES - PENINSULAR MALAYSIA SYSTEM MINUTES - SABAH
FY2019 0.27 FY2019 13.41
FY2020 0.08 FY2020 11.28
FY2021 0.09 FY2021 40.74

Pages 32 - 55
NATURAL CAPITAL
TNB is focused on minimising its environmental footprint given the increasing relevance and severity of global issues related to pollution and climate
change, and in order to protect our country’s natural biodiversity.
Approach Activities and Achievements in 2021 Focus in 2022
Protect natural • Developed a Sustainable Catchment Management Community • Deliver on commitments to the indigenous Orang Asli
heritage through for the Sg. Perak Hydro Scheme with the Orang Asli (Jahai Tribe) communities in Nenggiri, Kelantan via socioeconomic
biodiversity- at Kg. Sungai Tiang, Royal Belum National Park. The scheme initiatives, e.g., by electrifying and improving connectivity
enhancing aims to protect and conserve fish species, sustain fish resources in their villages.
programmes and enhance the livelihood of the local community through the • Develop the appropriate compensation and provide
development of conservation eco-tourism. assistance to Orang Asli communities who will be impacted
by the Nenggiri project, i.e. the 1,115 Orang Asli from 257
families currently residing in Pos Tohoi, Pos Pulat and
Kampung Kuala Wias who will be relocated to two new sites
in Kuala Yai and Ladang Sungai Terah.
Protect the • Several TNB divisions, including TNB Power Generation Sdn. Bhd. • Introduce a new module for scheduled waste management
environment received the ISO14001:2015 certification in 2021. The certification in our online eHSE system.
through proper provides validation to the divisions that their Environmental
effluents and waste Management System meets internationally agreed standards
management and controls their environmental issues in a holistic manner.
• TNB’s Environmental Policy was reviewed and endorsed by
our President/Chief Executive Officer in July 2021 to reflect the
changes in environmental management requirements and
emerging issues.
• Issued our Polychlorinated Biphenyls (PCB) Management
Guidelines in 2021 with the aim of phasing out PCB usage
in transformers by 2025 as part of our efforts to reduce our
environmental impact.
Adoption of • Greenhouse gases (GHG) emissions intensity moderated • Conduct research on climate risk, and mitigation &
sustainable slightly to 0.55 compared to 0.57 in FY2020. Total GHG emissions adaptation measures for thermal and hydro power plants
business practices mitigation increased substantially to 7.96 million tCO2e from in line with the aim of reducing our GHG emissions and
across our value 5.99 million tCO2e as a result of low-carbon generation, RE, EE further enhancing sustainability related strategy.
chain solutions and tree planting programme. • Develop a sustainability framework for TNB Power
• 8,622.07GWh of clean energy generated through TNB's hydro Generation Sdn. Bhd. to mitigate its material impact
and non-carbon generation facilities, representing a significant and develop a more focused roadmap addressing the
increase from the 4,821GWh of clean energy generated in FY2020. generating company’s sustainability issues.
• Grid Division adopted a Green Code of Conduct (GGCC) to
focus on GHG reduction, deforestation control and pollutant
management initiatives.
• Distribution Network adopted various ESG measures in 2021 and
enhanced their effort to factor in climate change risks to their
operational assets through the utilisation of Flood Analysis &
Risk Assessments.
Contributing to a • Increased total renewable energy (RE) generation capacity from • Focus on expanding our RE footprint while reducing our
low-carbon world solar, wind, hydro and mini-hydro to 3,428.4MW carbon footprint through initiatives guided by Reimagining
• Secured closed sales of 40MWp behind-the-meter solar TNB and SP2050.
photovoltaic (solar PV), bring the total amount to 116MWp in • Accelerate development and adoption of TNB’s Ways of
FY2021. Working Sustainably (WoWS), which is a major component
• Accelerated the take up of the Net Energy Metering (NEM) 3.0 of SP2050. WoWS emphasises the need for TNB to transition
Programme and recorded the following sales numbers: towards a more sustainable work culture through five
- NEM NOVA - 231 commercial and industrial customers areas: Green Office Practices, Culture and Values, Improving
- NEM RAKYAT - 2,121 residential customers Operations and Fleet Management, Energy Efficiency, and
- NEM GOMEN - 12 government buildings Natural Resource Consumption.

NATURAL CAPITAL
2021 Highlights
TNB’S GHG EMISSIONS TOTAL WATER CONSUMPTION ACROSS ALL TNB OPERATIONS
Total GHG emissions of Emission Intensity

Scopes 1 and 2 (tCO2e) (tCO2e/MWh) Megalitres
10,000
tCO2e/MWh million tCO2e

0.60 45
39.99 7,771.09
39.26* 8,000
40 7,269.3 7,065.3
0.58 34.03 35
30 6,000
0.57
0.56
25
0.56
0.55 20
0.54 4,000
15
10
0.52
5 2,000
0.50 0
FY2019 FY2020 FY2021
0
FY2019 FY2020 FY2021
* Data updated after third party verification.
7.96
million tCO2e
OF GHG
EMISSIONS
MITIGATED
IN 2021

Pages 32 - 55
INTELLECTUAL CAPITAL
TNB’s efforts to effect the energy transition, future-proof our business and attain greater sustainability requires the further development of intellectual
capital to support our operational and technology needs.
Approach Activities and Achievements in 2021 Focus in 2022
Investments into • Invested RM93.2 million into research and development (R&D) in 2021 to • Allocate around RM150
new technology for develop new technologies and R&D programmes, including: million to fund R&D into new
the energy sector - Carbon Capture and Utilisation R&D programme to develop solutions that emerging technologies that
can capture CO2 emissions from power plants and convert it into value- support our current business
added products and future business areas
- Sustainable CO2 Utilisation System Using Renewable Energy Technology including Decarbonisation,
(CURE) to capture CO2 from flue gas streams Renewable Energy, Energy
- Development of hydro turbine online efficiency monitoring using vent Storage, Electric Mobility,
shaft flow measurement method Smart Cities and Digitalisation.
- Development of a Smart Grid Demonstration Portal that supports Virtual
Energy Manager applications using cloud-computing and Internet-of-
Things (IoT) technologies to be used in Melaka
• Established the TNB Technology Council to streamline and better manage the
Group’s R&D efforts, including managing and monitoring the funding for R&D.
Innovations • Launched seven key corporate digital initiatives, including: • Expanding the scope
to optimise - Established a Center of Excellence for Application Programming Interface and depth of the seven
operations, enhance (API) key digital and and data
asset management - Deployed 16 Robotic Process Automation (RPA) to efficiently execute digital analytics initiatives across the
and reduce costs organisation
routine tasks, such as purchase order transactions, etc.
- Leveraged data analytics for various applications, e.g., load profile analysis - Leverage data analytics
- Established a holistic telecommunication strategy framework for more applications
- Continuous improvement of TNB's cybersecurity posture, resulting in zero across TNB's value chain,
disruption to supply and operations caused by cyber attacks such as underground
cable prediction for our
- Established a robust and secure cloud architecture to prepare for migration
Distribution Network
to cloud platforms
- Develop an enterprise
- Published Enterprise Data Governance guidelines to strengthen TNB's data
employee application to
governance
support WoWL
• Facilitated increased enterprise use of remote working tools in response to
disruptions caused by the pandemic. This is guided by WoWL and includes
the deployment of technology tools such as Virtual Private Networking tools,
Tenaga App Space and collaboration platforms, e.g. Cisco Webex, TNB MyCloud
and Enterprise Content Management. For 2021 Cisco Webex usage, there was a
429% increased in Webex sessions and 399% in Webex attendees as compared
to 2020.
Investments • Made good progress in the TNBR-Korean Consortium Virtual Power Plant (VPP) • Exploring other possible
into potential joint research programme, which started in 2018. The programme explores collaborations with parties
business models the VPP software technology platform and application, and its associated including the Government,
and technology to business model via the demonstration of aggregated Energy Storage System car manufacturers, fleet
create new revenue companies and highway
(ESS) functions. The project also explores joint Engineering, Procurement,
sources operators to strengthen
Construction and Commissioning (EPCC) development between TNB and the
Korean Consortium to optimise ESS and VPP business models. Malaysia’s EV ecosystem.
• Established a Program Management Office to drive the delivery of TNB’s • Explore new business models
EV strategy, which involves working with strategic partners to establish EV for energy storage solutions.
infrastructure across the country.

INTELLECTUAL CAPITAL
Helping Drive the Nation Towards Electric Mobility

TNB is committed to help accelerate the adoption of electric mobility
in Malaysia, in line with our government's effort to decarbonise the
transportation and logistics sector. In 2021, we established TNB’s Electric
Vehicle Program Management Office in July 2021, which reports directly
to TNB’s EV Council. The EV Council is chaired by our President/Chief
Executive Officer and most members of TNB’s top management sit as
council members to ensure that EV initiatives and plans are executed in
line with our overall strategy. Additionally, we presented a white paper
on EV to seven Government ministries to stimulate greater interest in the
sector and accelerate the pace of development.
TNB was also invited to sit as a permanent member of the EV National

Task Force by MITI, putting us in a strong position to steer and guide the
development of the industry. We also worked closely with the government
and regulators to establish a Malaysian EV charging standard. Meanwhile,
we have started exploring various options to boost EV adoption within our
organisation. Measures under consideration include fleet transitions as well
as ecosystem and infrastructure development.
We recognise that a collaborative approach is necessary for the industry

to flourish and have signed a number of Memoranda of Understanding
with various partners, including Sime Darby Motors, SoCAR and DHL, to
collaborate on EV development. EV adoption is also being championed by
the Zero Emission Vehicle Association (ZEVA), a new association formed by
TNB that is open to all parties interested in the green vehicle space.
We expect to see greater development in the EV space as interest in the

industry takes off, and we are committed to working with any partners who
are capable of innovating or introducing new products and services that
can further accelerate the pace of development.
2021 Highlights
R&D INVESTMENT
BREAKDOWN OF R&D PROJECTS BY RESEARCH AREA
(RM MILLION)
14.00%
2016 105.7 21.95%
Digitalisation
2017 117.4
7.92%
RE technology
and sustainability
2018 117.4 Energy
2021 Infrastructure
2019 81.7 12.17% Energy Policy
Others
2020 98.8
2021 93.17 43.97%

Pages 32 - 55
HUMAN CAPITAL
Our people are key enablers in all of TNB’s value creation activities, and we place great emphasis on recruiting, retaining and developing them. We also
seek to create a safe and empowering work environment that enables them to realise their potential.
Management Approach Activities and Achievements in 2021 Outlook

Human Resource Management
Implementing • Planned and executed 19 collective outcomes driven by Seven Cluster • In 2022, we will continue our efforts to build
initiatives under Champions and 19 Squads under our People Catalyst initiative focusing existing human resource (HR) workforce
on addressing seven areas: community capabilities via HR Academy, HR
TNB's Five-year HR - HR Capability & Workforce Strategy, Learning Journey and Coaching & Mentoring
Blueprint - Digital & Data Analytics, initiatives.
(2020-2025) - Culture & Change Management, • We will also continue to anchor on Phase 2 of our
- People Performance Excellence, HR Blueprint, which is focused on the theme of
- Learning & Development, Driving Excellence and Catalysing Growth. This
- Talent Management, and phase will see the deployment of HR targeted
- People Mobility. strategies and intervention to grow a sustainable
• In 2021, the average progress of the 19 collective outcomes came in at 70%. mindset, build commercial and business acumen,
• Introduced an Agile Management Model to foster greater cross- develop a lean and agile organisation, and effect
collaboration across functions while maximising resource utilisation. differentiated and outcome-based performance.
Towards • Continue to deliver culture initiatives in the following areas: • Define and drive overall culture alignment in TNB.
Reimagining - Leadership Role Modelling • Reinvent the Performance Management System
- Communication & Engagement to reshape and reinforce workforce behaviour
Culture - Developing Talent and Skills change.
Safe and Healthy Work Environment
Response • Implemented protocols to monitor employees who tested positive for • Adjust policies and procedures in accordance with
to COVID-19 COVID-19. government position and standard operating
• Personal protective equipment were made available to TNB employees, procedures as the COVID-19 pandemic transitions
pandemic with priority given to frontliners. to the endemic phase.
• Implemented work-from-home arrangements, where applicable.
• Provided counselling services for employees facing mental health
challenges and personal struggles.
• Established and launched the Employee Self Health Declaration portal to
monitor our people’s well- being.
• Established TNB Covid Vaccine Management Task Force in June 2021 as the
coordinating committee to support the implementation of the COVID-19
immunisation programme for TNB employees nationwide.
• 99% of TNB employees fully vaccinated by the end of December 2021.
• Established the Tabung Warga TNB Prihatin (TWTP) fund which collected a
total of RM4,036,675 for rakyat affected by the pandemic and the floods.
HR Digitalisation • Rolled out the HR Governance eLearning Module to all of TNB’s people- • Strengthen digital workforce capabilities and HR
related operating divisions. infrastructure to facilitate TNB's digital adoption
• Increased EDG Data Maturity Assessment Score to 3.2 from 2.9 in 2020. journey.
• Incorporate more digital learning solutions in
TNB Integrated Learning Solutions Sdn Bhd and
Universiti Tenaga Nasional.
Creation of Safety • Improved our HSE Culture level with respect to the Safety Culture Ladder • Continue to enhance Health and Safety
Culture and Safety Culture Assessment (SCA) score, by raising our score to 4.02 procedures and measures to reduce fatalities and
from 3.80 in FY2019. accidents.
• Conducted 12 Safety Cultures Values Activation & Spiritual Hour sessions
online to inculcate safety values in our employees.
• Initiated group-based HSE recognition platforms i.e NDRS League
and Best Safety Health Committee to motivate high HSE performance
amongst TNB divisions, departments and subsidiaries.

HUMAN CAPITAL
Management Approach Activities and Achievements in 2021 Outlook

Safe and Healthy Work Environment (Cont'd.)
Employee Health • Conducted 146 engagement sessions under our Total Wellness Programme. • Enhance employee usage of TNB's BookDoc
and Wellness • Won first place for the Most Active Employer - Ruby Category in the Activ@ app by establishing group-wide employee
Work Challenge organised by Pertubuhan Keselamatan Sosial (PERKESO). wellness challenges through the app.
• Provide health education to employees
through the Health Talk webinar series
- Conduct basic health screening for TNB
employees at various TNB stations
- Launch the MQuit Smoking (Stop
Smoking Program) for TNB employees in
collaboration with The Ministry of Health
Talent Management and Development
Training and • Received Bronze for Best Organisational Upskilling & Reskilling at the Employee • Enhance learning and development
Development Experience Awards 2021 and selected as winner for the Above 1,000 Employees framework and the competency model
category at the LinkedIn Talents Award 2021. framework for TNB staff.
• Invested RM65.53 million into our employees’ learning and development, with total • Enhance digitally-enabled learning to make
training hours for the year coming up to 639,040 training hours. delivery of training more efficient and
• Collaborated with ILSAS to develop subject matter experts in TNB’s core accessible.
business areas through Division Academies.
• Enrolled 918 staff in upskilling and reskilling programmes in 2021.
• FY2021, TNB invested RM9,842,820.76 to provide employment opportunities
to 4,760 individuals and train 2,576 individuals under the Reskilling Malaysia
Programme. Since the inception of this programme in October 2020, TNB has
cumulatively invested RM10,723,220.76 to provide employment opportunities
to 5,202 individuals and trained 3,018 individuals.
2021 Highlights
EMPLOYEE BREAKDOWN EMPLOYEE BREAKDOWN

Men Women Men Women
BY EMPLOYEE CATEGORY BY GENERATION
15,981 14,398
5,087
4,546 3,737
2,815
918 1,540 1,293 1,487 1,554
247 69 13 1 323 733 104
Non-Executives Executives Engineer/ Senior Jawatankuasa Gen Z Millennials Gen X Baby Boomers
Technical roles Management Eksekutif
Kumpulan
ANNUAL LOST TIME INJURY FREQUENCY RATE EMPLOYEE ENGAGEMENT
100
2.14 90
LTIF by business 80
89% 89% 85%
activities 70
1.42 Generation – 0.54 60
1.29
50
1.03 Grid – 0.69
40
Distribution – 0.62 30
Retail – 4.25 20
10
0
2018 2019 2020 2021 2019 2020 2021

Pages 32 - 55
SOCIAL AND RELATIONSHIP

CAPITAL
TNB values all our many stakeholders and conducts regular engagements with them to better understand their needs and build meaningful relationships
of trust.
Approach Activities and Achievements in 2021 Outlook

Investors
Provide the investment • Conducted quarterly analyst briefings and one-on-one/group • Continue to proactively engage the
community with clear, engagements numbering 612 sessions with members of the investment investment community to address any areas
transparent and holistic fraternity of interests with regards to the Group’s
picture of the Group’s performance and strategy moving forward.
performance and prospects
Continuously create long-

term value for shareholders
Employee Trade Unions/Associations
Maintain harmonious • Several engagement sessions were carried out between Management • Continue to maintain good industrial
relationship with employee and the Unions/Associations in the year 2021 to solicit their input and relations climate in the Company with
Unions/Associations understand their concerns prior to key management decisions: harmonious relationship between
and engage leaders in 1. Formulation of policy on Prohibition of Working Under the Management and Employees
syndications, meetings/ Influence of Alcohol and Drugs.
discussions and information 2. Terms and conditions for the absorption of contract employees
sharing into permanent employment.
3. TNB Sustainability Pathway 2050.
4. Terms and conditions on flexible working arrangement under
Tenaga Way of Working (WoWL).
5. Relocation of employees to Platinum Building.
6. Establishment of Warga TNB Prihatin Fund.
Customers
Forge meaningful • Delivered Digital Billing and new Bill Redesign solution to customers in • Incubate and scale innovative digital
relationships via increased Melaka to encourage customers to go paperless and view bills anytime solutions to accelerate digital customer
focus towards customer’s anywhere via myTNB. experience and business values.
choice and literacy, quality • Introduced Energy Budget feature in myTNB for selected customers to
customer service, innovative notify them when their energy usage nears or exceeds their monthly
solutions and effective budget.
communication and • Developed the Malaysia Energy Literacy Programme (MELP) to educate
engagement Malaysians on energy issues, such as energy efficiency, sustainability
and climate change.
• Upgraded physical and digital infrastructure of our Kedai Tenaga to
improve customer service.
• Total customer satisfaction index increased to 8.7 in 2021 from 8.5 in the
previous year.
Vendors and Suppliers
We support local businesses • 97.9% of net total procurement spend was on local vendors or • Develop a transparent connecting platform
when and where possible to contractors. to build relationships between vendors and
spur the local economy • 22% increase in net total procurement spend on Bumiputera vendors purchasers and real-time triggering vendor
as compared against the previous year. performance status to receive immediate
• Conducted vendor initiatives aimed at improving visibility of vendor updates on vendor performance.
performance scores, develop local content framework, promote high- • Develop Corporate Strategy for Relationship
performing vendors, inculcate a safety culture and improve data Framework to sustain vendor relationships.
management of 3,000 active vendors. • Build supplier incentive mechanism system
framework.

SOCIAL AND RELATIONSHIP CAPITAL
Approach Activities and Achievements in 2021 Outlook

Community
Ensure Malaysians in rural • Electrified 30 villages via the Rural Electrification Programme. • As part of TNB SP2050, TNB has set a target
and remote areas have • Completed Phase 10 of the Village Street Lighting Programme with to channel 1% of its profit after tax towards
access to electricity 29,487 street lights installed in 2021. environmental and community-related
• Contributed RM2 million to the National Food Basket Programme in programs.
Contribute to higher collaboration with Yayasan Kebajikan Negara. • Continue to look for opportunities to give
standard of living by • Contributed RM3.05 million and provided 144 new and refurbished back to the communities that we are serving.
ensuring Malaysians have homes to less fortunate Malaysians under TNB’s Home for the Needy
proper homes to live in Programme.
• Allocated RM1.56 million for our Better Brighter Shelter Programme,
Uplift marginalised which provides accommodations for family members of patients from
communities through rural areas who have travelled to cities in search of medical treatment.
education • Awarded RM6.81 million in education funding to 1,768 recipients to
further develop their education at Universiti Tenaga Nasional.
• In FY2021, Yayasan Tenaga Nasional provided a total of RM119.2 million
to 8,271 recipients through financial aid for scholarship, convertible
loan and My Brighter Future programme.
• Contributed RM3 million in clothing and school bags to students
under Ceria ke Sekolah Programme.
• Contributed RM5 million benefitting 3,253 students from 40 schools
throughout Malaysia under the Government’s CERDIK initiative.
• Contributed RM315,000 to 11 schools adopted under the PINTAR
School adoption programme.
2021 Highlights
OUR
SOCIAL CIRCLE
TNB Twitter
30,274 followers
TNB Instagram
50,892 followers
TNB CareLine Facebook
406,308 followers
TNB YouTube
77,000 subscribers
TNB LinkedIn
232,032 followers

Section
04
CREATING VALUE
THROUGH STRONG
GOVERNANCE
58 Our Board at a Glance
59 Board of Directors’ Profile
72 Company Secretary’s Profile
73 Senior Management Profile
81 Organisational Structure
82 Chairman’s Introduction to
Corporate Governance
84 Principle A:
Board Leadership and Effectiveness
98 Principle B:
Effective Audit and Risk Management
108 Principle C:
Integrity in Corporate Reporting and
Meaningful Relationship with Stakeholders
118 Statement on Risk Management and
Internal Control
125 Additional Compliance Information
About This Report We Are TNB From Our Leadership Creating Continued Value
OUR BOARD AT A GLANCE
OUR FINANCE & ENGINEERING

ACCOUNTING
Leadership
Skills And
Experience
Matrix:
Our Directors have vast experience and 4 1 3 4
diverse skills, enabling the Board to provide
informed counsel, rigorous oversight and
critical analyses in leading integrated thinking
in the Group.
LEGAL OTHERS
33%
4 8
Independent
Non-Executive
Gender
Directors
Diversity
3
Non-Independent
8
Non-Executive
Directors 7
67% (including 50 - 60
Chairman) years old
BOARD
Male Female
COMPOSITION
1
Non-Independent
Executive
Director AGE
Board Committees DIVERSITY
Chairman of Respective Committee
A Board Audit Committee 4

F Board Finance and Investment Committee 7 Above
1 to 3
60 years old
1
T Board Tender Committee years Below
50 years old
Board Nomination and Remuneration
NR Committee
R Board Risk Committee 3

Less than
L Board Long Term Incentive Plan Committee 1 year
I Board Integrity Committee

BOARD
Note:
TENURE 2
The above information disclosed represents the More than
number of Directors, excluding Alternate Director. 3 years

CREATING VALUE THROUGH STRONG
Sustainability Statement Financial Statements Additional Information
GOVERNANCE
Pages 58 - 125
BOARD OF DIRECTORS’ PROFILE

Chairman, Non-Independent Non-Executive Director
Appointed Director by the Minister of Finance (Incorporated)
(MOF Inc.), the Special Shareholder of TNB
Nationality / Age / Gender: Academic/Professional Qualification(s):
Malaysian / 68 / Male • Bachelor of Economics, Universiti Malaya, Malaysia

• Attended Management Course at Asian Institute of Management, Manila, Philippines
Date of Appointment:
1 October 2021 Skills, Experience and Expertise:
• Chairman of Pengurusan Aset Air Berhad (2020 - 2021)

Year(s) of Directorship:
• Member of the Malaysian Parliament representing Rompin (2015 - Present)
Less than one (1) year • Chairman of Public Accounts Committee (PAC) (2015 - 2018)
• Board of Directors, UDA Holdings Berhad (2010 - 2015)
Board Committee(s): • Deputy Chief Minister of Pahang (1995 - 1999) and since then, he had been involved in the field
of water management. He was also involved in planning for provision of water supply to Federal
Nil Land Development Authority (FELDA) Negeri Pahang and its rural areas. In addition to that, he also
initiated crucial studies for water supply from Pahang to Negeri Sembilan and Selangor as well as
Board meetings attended in the
on Non-Revenue Water in Pahang
Financial Year:
• Chairman of Lembaga Pembangunan Wilayah Pahang Tenggara (DARA) (1995 - 1998)
• Board of Directors, FELDA (1991 - 1995)
4 / 4 (since appointment date) • Chairman of Lembaga Kemajuan Perusahaan Pertanian Negeri Pahang (LKPP) (1990 - 1999)
Other Directorship(s):
Listed Issuer: Public Company:

• Nil • Nil


President/Chief Executive Officer, Non-Independent Executive Director
Appointed Director by MOF Inc., the Special Shareholder of TNB
Malaysian / 58 / Male • Master of Business Administration - joint MBA programme between Universiti Tenaga Nasional,
Malaysia and Bond University, Australia
Date of Appointment: • Bachelor of Science (Electrical Engineering), Syracuse University, New York, United States of America
• Certified Professional Engineer of Board of Engineers (BEM), Malaysia
1 March 2021
• Member of Institution of Engineers, Malaysia
• Qualified Competent Engineer (up to 33kV)
• Qualified Service Engineer (up to 33kV)
One (1) year
Skills, Experience and Expertise:
Date of Last Re-Election:
• President/Chief Executive Officer, TNB (2021 - Present)
10 May 2021 • Chief Distribution Network Officer, TNB (2018 - 2021)
• Vice President (Distribution), TNB (2012 - 2018)
Board Committee(s): • Senior General Manager (Customer Service & Metering), Distribution Division, TNB (2011 - 2012)
Attends Board Committees’ Meetings • Managing Director, Sabah Electricity Sdn. Bhd. (2007 - 2011)
• Seconded to the Ministry of Energy, Green Technology and Water (KeTTHA), for two (2) and a half
(By Invitation)
years, where he served as the Deputy Director for the Electrical Inspectorate Department in Sabah.
He then became the Director for the Electrical Inspectorate Department in Pahang
Financial Year: • Built his career in TNB during which he had served in various engineering and managerial positions
within the Company, including Business Development, Network Maintenance, Network Planning,
Construction Services, Metering Service and Engineering Services
17 / 17 (since appointment date)

• Nil • Nil

GOVERNANCE
Pages 58 - 125
DATUK SERI ASRI BIN

HAMIDIN @ HAMIDON
Non-Independent Non-Executive Director
Appointed Director by MOF Inc., the Special Shareholder of TNB
Malaysian / 56 / Male • Master of Economics, Hiroshima University, Japan

• Bachelor of Economics (Hons.), Universiti Malaya, Malaysia
Date of Appointment: • Diploma in Public Administration, National Institute of Public Administration, Malaysia
• Completed Harvard Premier Business Management Programme
1 July 2020
Year(s) of Directorship: Skills, Experience and Expertise:
One (1) year • Secretary General of Treasury, Ministry of Finance (2020 - Present)
• Prior to his current position, he had served in various capacities within Ministry of Finance:
Date of Last Re-Election: - Deputy Secretary General (Policy) (2019 - 2020)
- Deputy Secretary General (Investment) (2018 - 2019)
10 May 2021 - Under-Secretary, Government Investment Companies Division (2015 - 2018)
- Deputy Secretary, Government Investment Companies Division (2012 - 2015)
Board Committee(s): - Senior Assistant Secretary (2006 - 2012)
• Assistant Director, Anti-Corruption Agency (1998 - 2005)
T NR L
• Assistant Director, Economic Planning Unit, Prime Minister’s Department (1994 - 1998)

Financial Year:
13 / 20
Listed Issuer: Public Companies:

• Nil • Aset Tanah Nasional Berhad
• DanaInfra Nasional Berhad
• Digital Nasional Berhad
• GovCo Holdings Berhad
• 1Malaysia Development Berhad

DATUK AMRAN HAFIZ

BIN AFFIFUDIN
Non-Independent Non-Executive Director
Appointed Director by Khazanah Nasional Berhad,
the Major Shareholder of TNB
Malaysian / 47 / Male • Bachelor of Science in Commerce (Majoring in Accounting and Finance), the McIntire School of
Commerce, University of Virginia, Charlottesville, United States of America
Date of Appointment: • Attended executive/professional courses at Harvard Business School and London Business School
22 June 2017
• Executive Director, Investments, Head Energy, Iskandar, Leisure & Tourism, Khazanah Nasional
Four (4) years Berhad (2022 - Present)
• Executive Director, Head, Energy & Infrastructure, Khazanah Nasional Berhad (2020 - 2021)
Date of Last Re-Election: • Executive Director, Investments, Khazanah Nasional Berhad (2018 - 2020)
• Director, Investments, Khazanah Nasional Berhad (2013 - 2018)
30 June 2020 • Senior Vice President, Investments (Property/Healthcare), Khazanah Nasional Berhad (2011 - 2013)
• Investment Manager, Ethos Capital Sdn. Bhd. (2009 - 2011)
Board Committee(s): • Principal Consultant/Advisor, Nusa Capital Sdn. Bhd. (2006 - 2009)
• Director, Juwana Group of Companies (2005 - 2006)
F NR L I
• Senior Vice President, Namirah Ventures Pte. Ltd. (2000 - 2005)
• Analyst, Equities Investment, Petroliam Nasional Berhad (PETRONAS) (1998 - 2000)
Board meetings attended in the • Corporate Finance Executive, Group Finance Division, PETRONAS (1997 - 1998)
Financial Year:
19 / 20

• Nil • Iskandar Investment Berhad

GOVERNANCE
Pages 58 - 125
JUNIWATI
RAHMAT HUSSIN
Independent Non-Executive Director
Malaysian / 63 / Female • Bachelor of Science (Hons.) in Chemistry, University of Kent, Canterbury, United Kingdom
• Certificate in International Management, GE
Date of Appointment: • Attended the INSEAD Senior Management Development Programme and Advanced Management
Programme
1 June 2017
• Attended the HENLEY Business School Advanced Management Programme, United Kingdom
Four (4) years
• Vice President & Venture Director, Pengerang Integrated Complex and Chief Executive Officer,
Date of Last Re-Election: PETRONAS Refinery and Petrochemical Corporation Sdn. Bhd. (2013 - 2016)
• Vice President, Human Resource Management Division, PETRONAS (2010 - 2012)
10 May 2021 • Vice President, Education Division, PETRONAS (2009 - 2010)
• Chief Executive Officer, Malaysian Philharmonic Orchestra & Dewan Filharmonik PETRONAS (2005 -
Board Committee(s): 2009)
• General Manager (Marketing & Trading-Chemicals), MITCO Sdn. Bhd. (2003 - 2005)
A T R I
• Senior Manager (Marketing & Trading-Chemicals), MITCO Sdn. Bhd. (2001 - 2003)
• Manager, Human Resource Management, PETRONAS (1997 - 2001)
Board meetings attended in the • Manager, Petrochemicals Business Planning Unit, Petrochemical Division and Manager, Business
Financial Year: Evaluation Department, Corporate Planning Division, PETRONAS (1994 - 1997)
• Executive (Analyst), Refining & Marketing Planning Unit, PETRONAS (1991 - 1994)
• Executive (Refinery), PETRONAS Penapisan (Melaka) Sdn. Bhd. (1991)
19 / 20
• Production Planner (Refinery), PETRONAS Penapisan (Terengganu) Sdn. Bhd. (1988 - 1990)
• Chemist, Process Engineering & Technical, PETRONAS Penapisan (Terengganu) Sdn. Bhd. (1982 - 1987)
• Chemist, Laboratory Services, PETRONAS (1981 - 1982)
• Throughout her career, she has a wide range of hands-on experience in Refinery Operations, Project
Management, Corporate Planning, Human Resource and Marketing & Trading

• Dialog Group Berhad • Malaysia Petroleum Resources Corporation

GOPALA KRISHNAN
K.SUNDARAM
Malaysian / 67 / Male • Bachelor in Law LL.B. (Hons.), Universiti Malaya, Malaysia

• Advocate & Solicitor in the High Court of Malaya
4 July 2018 Skills, Experience and Expertise:
• Partner, Abdullah Chan & Co., Advocates & Solicitors (2012 - Present)
• Consultant, Asian Development Bank (2018 - 2021)
Three (3) years • Leading adviser on the Financial Services Act 2013 and Islamic Financial Services Act 2013
• Independent International Consultant, World Bank (2017 - 2018)
Date of Last Re-Election: • Director, Kuwait Finance House (Malaysia) Berhad (2012 - 2016)
• Held various positions in Bank Negara Malaysia (Central Bank of Malaysia) (1982 - 2012):
10 May 2021 - Project Advisor (2011 - 2012)
- Assistant Governor (2006 - 2011)
Board Committee(s): - Assistant Manager/Deputy Director/Director, Legal Department (1990 - 2006)
- Senior Executive/Assistant Manager, Secretary’s Department (1985 - 1990)
A F R
- Senior Executive, Banking Department (1982 - 1985)

Financial Year:
20 / 20

• Nil • Nil

GOVERNANCE
Pages 58 - 125
ONG AI LIN
Malaysian / 66 / Female • Bachelor of Arts (Hons.) in Economics, University of Leeds, United Kingdom
• Associate of Institute of Chartered Accountants in England and Wales (ICAEW)
Date of Appointment: • Member of Malaysian Institute of Accountants (MIA)
• Member of SIRIM ISO Technical Committee on Information Security
1 August 2018
• Past President of Information Systems Audit & Control Association (ISACA), Malaysia
Three (3) years
• Held various positions in PricewaterhouseCoopers Malaysia:
Date of Last Re-Election: - Partner/Senior Executive Director (1993 - 2016)
- Senior Manager (1991 - 1992)
14 May 2019 • Kassim Chan & Co. (DH&S Malaysia) and DH&S Singapore (1986 - 1991)
• Deloitte Haskins & Sells (DH&S), London, United Kingdom (1978 - 1986)
Board Committee(s):
R A I

Financial Year:
20 / 20
Listed Issuers: Public Companies:

• IHH Healthcare Berhad • FIDE Forum
• RHB Bank Berhad • RHB Islamic Bank Berhad

DATO’ ROSLINA
BINTI ZAINAL
Malaysian / 59 / Female • Master of Business Administration, University of New England, New South Wales, Australia
• Bachelor of Electrical Engineering, Lakehead University, Canada
Date of Appointment(s):
• 28 April 2020 (Redesignated Skills, Experience and Expertise:

as Independent Non-Executive
• Member of Tan Sri Leo Moggie Distinguished Chair in Energy Informatics, Universiti Tenaga
Director) Nasional, Malaysia (UNITEN) (2021 - Present)
• 15 March 2019 (Non-Independent • Advocate, 30% Club, Malaysian Chapter (2021 - Present)
Non-Executive Director) • Director, Universiti Teknikal Malaysia Melaka (UTeM) (2019 - 2020)
• Director, Sapura Energy Berhad (2019 - 2020)
Year(s) of Directorship: • Senior Fellow, Khazanah Research & Investment Strategy, Khazanah Nasional Berhad (2018 - 2019)
• Adjunct Professor, College of Business, Universiti Tenaga Nasional, Malaysia (2016 - 2018)
Three (3) years
• Held various positions in TNB:
- Vice President (Regulatory Economics & Planning) (2015 - 2018)
Date of Last Re-Election:
- Vice President (Planning) (2009 - 2015)
14 May 2019 - General Manager (VPP/Energy Procurement), Planning Division (2008 - 2009)
• Has served Lembaga Letrik Negara/TNB for 33 years in various divisions such as Distribution,
Board Committee(s): Planning, Business Strategy, Regulations, Transmission and Corporate Planning
• Seconded to Economic Planning Unit of the Prime Minister’s Department (1990 - 1992)
NR L F T

Financial Year:
20 / 20

• Malaysia Smelting Corporation Berhad • Nil

GOVERNANCE
Pages 58 - 125
DATO’ IR. NAWAWI

BIN AHMAD
Malaysian / 60 / Male • Master of Engineering Management, Universiti Tenaga Nasional, Malaysia

• Bachelor of Engineering (Electrical), Universiti Teknologi Malaysia, Malaysia
Date of Appointment: • Member of Institution of Engineers, Malaysia
• Registered Professional Engineer with Board of Engineers, Malaysia
16 October 2020
One (1) year • Chairman, Panorama Sdn. Bhd. [Subsidiary of Langkawi Development Authority (LADA)] (2017 - 2018)
• Chairman, Keretapi Tanah Melayu Berhad (KTMB), Multi Modal and Freight Sdn. Bhd. (MMF)
Date of Last Re-Election: (Subsidiary of KTMB) and KTM Distribution Sdn. Bhd. (Subsidiary of KTMB) (2014 - 2018)
• Chairman, KTMB MMC Cargo Sdn. Bhd. (JV company of KTMB and MMC Corporation Berhad) (2016
10 May 2021 - 2018)
• Director, LADA (2010 - 2018)
Board Committee(s): • Chairman of Advisory Board, Kolej Komuniti Langkawi (2008 - 2018)
• Member of Parliament (P.004 Langkawi) (2013 - 2018)
I T NR L
• Member of State Assembly (N02 Kuah) (2004 - 2013)
• Kedah State Executive Councillor (N02 Kuah) (Energy, Works, Environment & Tourism) (2004 - 2008)
Board meetings attended in the • Senior Engineer, TNB (1984 - 2004)
Financial Year:
20 / 20

• Nil • Nil

DATUK RAWISANDRAN
A/L NARAYANAN
Malaysian / 58 / Male • Professional Diploma in Business Management, Asian Management Development Academy PLT,
Malaysia (Oxford Business College, United Kingdom)
Date of Appointment: • Diploma in Business Management, Asian Management Development Academy PLT, Malaysia
(Oxford Business College, United Kingdom)
16 October 2020
One (1) year • Director, National Land Finance Co-Operative Society Limited (2021- Present)
• Director (Business Development), C & S Engineering Management Sdn. Bhd. (2010 - Present)
Date of Last Re-Election: • Secretary of Malaysian Indian Congress (MIC), Selangor (2016 - 2018)
• Senator (2007 - 2010)
10 May 2021 • Member of Kajang Municipal Council (2003 - 2008)
• Member of Sepang District Council (1997 - 2003)
Board Committee(s):
A R L

Financial Year:
20 / 20

• Nil • Nil

GOVERNANCE
Pages 58 - 125
DATUK LAU
BENG WEI
Malaysian / 56 / Male • Master in Business Administration (Majoring in International Business), Universiti Putra Malaysia,
Malaysia
Date of Appointment: • Bachelor of Electrical Engineering (Majoring in Electrical Power), Universiti Teknologi Malaysia,
Malaysia
1 December 2021
Less than one (1) year • Director, Synergy Goldtree Sdn. Bhd. (Present)
• Executive Director, Varia Engineering & Services Sdn. Bhd. (1996 - Present)
Board Committee(s): • Chairman, Lembaga Pelesenan Eksais Wilayah Persekutuan Kuala Lumpur, Dewan Bandaraya
Kuala Lumpur (DBKL) (2020 - Present)
A F • City Advisory Board Member, DBKL (2020 - Present)
• Member, Suruhanjaya Syarikat Malaysia (SSM) (2012 - 2014)
• Executive Director, Royce Pharma Holdings Bhd. (2010 - 2020)
Financial Year: • Director, Focus Dynamic Sdn. Bhd. (2007 - 2010)
• Director, Dream Chorus Sdn. Bhd. (2005 - 2013)
• He started his career in TNB, where he has held various positions within the Company:
1 / 1 (since appointment date) - Regional Head, Transmission Department, TNB (Perak) (2001 - 2003)
- Senior Engineer, Transmission Maintenance, TNB (Kuala Lumpur) (2000 - 2001)
- Regional Head, Transmission Department, TNB (Kelantan & part of Terengganu) (1998 - 2000)
- Primary Equipment Maintenance Engineer, Transmission Maintenance (South 2), TNB
(1995 - 1998)
- Protection Engineer, Meters Protection Department (Southern Region), TNB (Johor)
(1990 - 1999)

• Nil • Nil

DATO’ MERINA
BINTI ABU TAHIR
Malaysian / 56 / Female • Fellow Member of Association of Chartered Certified Accountants (ACCA), FCCA (UK)
• Member of Malaysian Institute of Certified Public Accountants (MICPA), CPA
Date of Appointment: • Member of Malaysian Institute of Accountants (MIA), CA (M)
• Member of ASEAN Chartered Professional Accountant (ASEAN CPA)
1 February 2022 • Professional Member of Institute of Internal Auditors Malaysia (IIAM), CMIIA
Less than one (1) year
• Director, Lembaga Tabung Haji Property Holdings Ltd Group of Companies (2020 - 2021)
Board Committee(s): • Chief Financial Officer, Lembaga Tabung Haji (2020 - 2021)
• Malaysia Airlines Berhad/Malaysian Airline System Berhad:
A F NR - Chief Internal Auditor (2011 - 2014, 2015 - 2020)
- Director, Corporate Services (2014 - 2015)
- Senior Vice President, Commercial Office (2011)
- Regional Senior Vice President, Middle East, Africa & South America (MEASA) (2008 - 2011)
Financial Year:
- General Manager, Finance Support Services (2004 - 2007)
NA • Head, Group Finance, IT & Property, Amanah Capital Partners Berhad (1997 - 2004)
• Sime Darby Berhad:
- Business Development Manager (1996 - 1997)
- Finance & Administration Manager, Sime Darby Travel Sdn. Bhd. & Sime Holidays Sdn. Bhd.
(1994 - 1996)
- Assistant Audit Manager (1991 - 1993)
• Audit Semi-Senior, Messrs Price Waterhouse (now known as Messrs PricewaterhouseCoopers) (1991)

• S P Setia Berhad • Nil

GOVERNANCE
Pages 58 - 125
FAISAL @
PISAL BIN ABDUL GHANI
*Alternate Director to Datuk Seri Asri bin Hamidin @ Hamidon
Malaysian / 43 / Male • Masters in Public Administration, University of Alabama, United States of America
• Bachelor of Business Administration (Finance), Universiti Tenaga Nasional, Malaysia
Date of Appointment: • Diploma in Public Administration, National Institute of Public Administration, Malaysia
1 March 2022
• Senior Private Secretary, Office of Secretary General of Treasury, Ministry of Finance (2021 - Present)
Less than one (1) year • Advisor, World Bank South East Asia Group (2019 - 2021)
• Principal Assistant Secretary, Office of Secretary General of Treasury, Ministry of Finance (2018)
Board Committee(s): • Senior Assistant Secretary, Government Investment MOF Inc. and Privatisation Division, Ministry of
Finance (2007 - 2015)
Nil • Assistant Secretary, MOF Inc. Company Coordination Government Investment Companies Division,
Privatisation and Public Enterprises, Ministry of Finance (2004 - 2007)
Financial Year:
N/A

• Nil • Nil
Declaration by the Board:

• Family Relationship with any Director and/or Major Shareholder of TNB:
None of the Directors has any family relationship with any Director and/or Major Shareholder of TNB.
• Conflict of interest with TNB:
Save as disclosed above, none of the Directors has any conflict of interest with TNB.
• Other than traffic offences, any conviction for offences within the past five (5) years and any public sanction or penalty imposed by the relevant regulatory bodies
during the Financial Year under review:
Other than traffic offences, none of the Directors has been convicted for any offences within the past five (5) years nor has been imposed any public sanction or
penalty by the relevant regulatory bodies during the Financial Year under review.

COMPANY SECRETARY’S PROFILE
NORAZNI BINTI MOHD ISA

Company Secretary
Nationality / Age / Gender: Skills, Experience and Expertise:
Malaysian / 58 / Female • 32 years of vast experience within TNB where she had served in various positions specifically in
legal services, tender & contract management and regulatory management
Date of Appointment: • Deputy Company Secretary and Joint Company Secretary, TNB (2011 - 2012)
• Head of Tender Management Unit, Procurement Division, TNB (2006 - 2011)
31 May 2012
• Manager of Licensing and Compliance Unit, Corporate Communications Department, TNB
(2003 - 2006)
Academic/Professional Qualification(s):
• Manager of Contract Management, Procurement Division, TNB (2002 - 2003)
• Legal Executive in Legal Services Department, Company Secretary’s Office, TNB (1990 - 2001)
• Master of Laws, Universiti Malaya,
Malaysia
• Advanced Diploma in Law, (Institut
Teknologi MARA), (now Universiti
Teknologi MARA), Malaysia
• Diploma in Law, (Institut Teknologi
MARA), (now Universiti Teknologi Listed Issuer: Public Company:
MARA), Malaysia • Nil • Nil
Additional Information:
Family Relationship with any Director and/or Major Shareholder of TNB:

• Nil
Conflict of interest with TNB:

• Nil
Other than traffic offences, any conviction for offences within the past five (5) years and
any public sanction or penalty imposed by the relevant regulatory bodies during the
Financial Year under review:
• Nil

GOVERNANCE
Pages 58 - 125
SENIOR MANAGEMENT PROFILE

President/Chief Executive Officer
Qualification(s):
• Master of Business Administration – joint MBA programme between Universiti Tenaga Nasional, Malaysia and
Bond University, Australia
• Bachelor of Science (Electrical Engineering), Syracuse University, New York, United States of America
• Certified Professional Engineer of the Board of Engineers (BEM), Malaysia
• Qualified Competent Engineer (Up to 33kV)
• Qualified Service Engineer (Up to 33kV)
Working Experience:
• Datuk Ir. Baharin bin Din built his career in TNB serving in various engineering and managerial positions
within the Company, including Business Development, Network Maintenance, Network Planning, Construction
Services, Metering Service and Engineering Services.
• He was seconded to the Ministry of Energy, Green Technology and Water (KeTTHA), for two (2) and a half years,
Nationality / Age / Gender:
where he served as the Deputy Director for the Electrical Inspectorate Department in Sabah. He then became
Malaysian / 58 / Male the Director for the Electrical Inspectorate Department in Pahang.
• He was the Managing Director of Sabah Electricity Sdn. Bhd. from 2007 to 2011, and was promoted to Senior
General Manager (Customer Service & Metering) of TNB in December 2011.
• Datuk Ir. Baharin was made Vice President, Distribution, in January 2012 until July 2018, and was re-designated
1 March 2021 as Chief Distribution Network Officer from 1 August 2018.
• He was appointed as President/Chief Executive Officer of TNB on 1 March 2021.
Management Committee(s):
Directorships In Public Companies and Listed Issuers:
GEMC GPC GMTC COMPEC IEC
• Nil
DATO’ NOR AZMAN BIN MUFTI

Managing Director, TNB Power Generation Sdn. Bhd.
Qualification(s):
• Master of Engineering Management, Universiti Tenaga Nasional, Malaysia

• Bachelor of Engineering (Mechanical), University of Strathclyde, Glasgow, Scotland, United Kingdom
• Diploma in Mechanical Engineering, University of Technology, Malaysia
Working Experience:
• Dato’ Nor Azman bin Mufti has served for 42 years in TNB, holding various positions in Generation Division
portfolios namely Managing Director of TNB REMACO Sdn. Bhd. and Vice President of Energy Ventures Division.
• Prior to the current appointment, he was the Chief Power Generation Officer of Power Generation Division, TNB.
• As the Managing Director of TNB Power Generation Sdn. Bhd., he is responsible for leading and driving GenCo
towards new growth, increased efficiencies, business synergies and greater business development.

• Nil
Malaysian / 61 / Male
1 October 2020
GEMC GPC COMPEC IEC

DATUK IR. HUSAINI BIN HUSIN

Chief Grid Officer
Qualification(s):
• Master of Business Administration, Ohio University, United States of America

• Bachelor of Engineering and Applied Science (Electrical Engineering), Sussex University, United Kingdom
• Diploma in Electrical Engineering, Brighton Technical College, United Kingdom
Working Experience:
• Datuk Ir. Husaini bin Husin has served for more than 36 years in TNB, holding various positions in Transmission
Division, now known as Grid Division.
• As the Chief Grid Officer of Grid Division, he is responsible for the overall performance of TNB’s transmission
business, which focuses on transporting electricity, managing the division’s assets as well as operating and
maintaining transmission network.

• Nil
1 February 2019
GEMC GPC GMTC
WAN NAZMY BIN WAN MAHMOOD

Chief Distribution Network Officer
Qualification(s):
• Master of Engineering (M.Eng.), Universiti Tenaga Nasional, Malaysia

• Bachelor of Science. Rensselaer Polytechnic Institute, United States of America
Working Experience:
• Wan Nazmy’s career in TNB at various engineering and managerial positions began in 1985. These positions
include, Assistant Engineer, Assistant District Engineer, District Manager, Principal Engineer, General Manager
and Senior General Manager. The various scopes that he has served include Business Development, Network
Maintenance and Planning, Construction Services, Engineering Services, Distribution Network Operations and
Asset Management.
• He was appointed to lead TNB’s Business Global Solutions Division as the Chief Global Business Solutions, prior
to his current appointment as the Chief Distribution Network Officer (CDNO).
• Wan Nazmy aspires to take Distribution Network Division to a greater height in its business and operational
performance.
Malaysian / 58 / Male • Additionally, aligning with the national agenda of net zero by 2050, for a more sustainable nation, Wan Nazmy
is also committed to spearheading Distribution Network towards supporting this agenda by materialising the
Division’s target for Smart Utility 2025.
1 March 2021 Directorships In Public Companies and Listed Issuers:
• Nil
GEMC GPC GMTC

GOVERNANCE
Pages 58 - 125
DATUK IR. MEGAT JALALUDDIN

BIN MEGAT HASSAN
Chief Retail Officer
Qualification(s):

• Certified Professional Engineer of the Board of Engineers (BEM), Malaysia
• Bachelor of Engineering (Hons.) (Electrical Engineering), University of Wollongong, Sydney, Australia
Working Experience:
• Datuk Ir. Megat Jalaluddin bin Megat Hassan has served in various positions in TNB.
• Prior to this current position, Datuk Ir. Megat served as the Chief Strategic Officer for six (6) years where he
spearheaded corporate and business transformation for the organisation.
• As the Chief Retail Officer of Retail Division in TNB, he is responsible for delivering the aspirational vision for TNB
as a leading retail company of the future.
Nationality / Age / Gender: • Among his main tasks are to enable growth of TNB’s new retail business covering both core business on the kWh
and new products and services beyond energy and to deliver quality customer experience by expanding TNB
digital services.
1 August 2018
• Nil
GEMC GPC GMTC IEC
NAZMI BIN OTHMAN

Chief Financial Officer
Qualification(s):
• Certified Public Accountant of Malaysian Institute of Certified Public Accountants (MICPA)

• Certified Public Accountant of Australian Society of Certified Practising Accountants (CPA Australia)
• Member of Malaysian Institute of Accountants (MIA)
• Bachelor of Commerce (Accounting), University of Wollongong, Australia
Working Experience:
• Prior to joining TNB, Nazmi bin Othman served in various positions in other companies such as Island & Peninsular
Berhad and MRCB as the Financial Controller of Port Dickson Power Sdn. Bhd., an Independent Power Producer.
• In 1998, he joined TNB and served in various positions before becoming the Chief Investment Management Officer
in 2014.
• He was appointed as Chief Financial Officer, Group Finance with effect from 1 August 2018. Some of his tasks include
monitoring financial related activities, and advising the CEO and the Board of Directors on key financial decisions.
• He leads Group Finance as an active strategic financial partner in driving TNB’s business aspirations, and achieving
Malaysian / 58 / Male the Group's objectives. Besides this, he also ensures continuous improvement and review on key financial areas such
as finance policies & procedures, system efficiency & processes, strategic financial risks and staff competency.
1 August 2018
• Nil
GEMC GPC GMTC COMPEC IEC

DATUK WIRA ROSLAN AB RAHMAN

Chief Regulatory & Stakeholder Management Officer
Qualification(s):
• Bachelor of Science (Hons.) (Electrical Engineering), University of Southampton, United Kingdom
Working Experience:
• Datuk Wira Roslan Ab Rahman joined TNB in 1980 and held various positions within TNB Distributions at
district level in Peninsular Malaysia.
• He also led the company’s Corporate Services from 2012 to 2020.
• He is currently the Country Coordinator for the Heads of ASEAN Power Utilities/Authorities (HAPUA).
• His latest role will focus on TNB’s immediate regulatory objectives and managing our stakeholders towards
effective outcomes for our customers.

Nationality / Age / Gender: • Nil
1 January 2021
GEMC GPC
DATUK FAZLUR RAHMAN BIN ZAINUDDIN

Chief Strategy & Ventures Officer
Qualification(s):
• Fellow of Association of Chartered Certified Accountants, United Kingdom

• Member of Malaysian Institute of Accountants
Working Experience:
• Datuk Fazlur Rahman served for four (4) years in public accounting practices with three (3) years in
PricewaterhouseCoopers Malaysia, Kuala Lumpur, as a Tax Consultant.
• He later served in Shell Malaysia for a decade in various capacities within the corporate and financial management
functions of the company starting from 1995.
• He joined Telekom Malaysia Berhad in 2005 and served in several senior roles with the last position as Vice
President – Business Development. He became the Chief Financial Officer of Naza Group in 2010.
• He was appointed TNB’s Chief Financial Officer/Vice President, Group Finance in July 2012, where he served for six (6) years.
• Datuk Fazlur was appointed as Chief Strategy & Regulatory Officer with effect from 1 August 2018.
• From 1 January 2021, he holds the position of Chief Strategy and Ventures Officer. In this role, he leads the
Malaysian / 52 / Male development and implementation of the long-term strategy for TNB, incorporating the energy transition
trends and the Environmental, Social and Corporate Governance (ESG) agenda. His responsibilities also include
searching for, identifying and evaluating new business areas to venture into, exploring innovation, guiding
TNB Research, a subsidiary of TNB, to research fields relevant to TNB business. In addition, he steers a group of
1 January 2021 subsidiaries in manufacturing, telco, energy efficiency and service business.
Management Committee(s): Directorships In Public Companies and Listed Issuers:
GEMC GPC COMPEC IEC • TNB Global Ventures Capital Berhad

GOVERNANCE
Pages 58 - 125
WAHIZAN BIN ABD RAHMAN

Chief People Officer
Qualification(s):
• Bachelor (Electrical & Electronic), George Washington University, Washington DC, United States of America
• Masters in Business Administration, Universiti Tenaga Nasional, Malaysia
Working Experience:
• Wahizan bin Abd Rahman, began his professional career with TNB in 1987 and has served in various positions for
the past 35 years. He started his career at Generation Power Plants before moving to Distribution Division where
he had stints at Distribution Engineering Department as well as managing business operation in Kuala Lumpur.
• He was the General Manager for Distribution Putrajaya & Cyberjaya before shifting to TNB Headquarters to
continue his career in Human Resource Management.
• His experience in Human Resources include serving as General Manager for Human Resource Planning &
Staffing, Senior General Manager for Human Resource Planning & Development and Senior General Manager for
Human Resource Strategy and Transformation.
• Prior to his appointment as Chief People Officer, he was the Head for People Strategy & Organisation Effectiveness
Malaysian / 58 / Male at Group Human Resource Division.
Date of Appointment: Directorships In Public Companies and Listed Issuers:
1 April 2021 • Nil
GEMC GPC
MOHD ZARIHI MOHD HASHIM

Chief New Energy Officer
Qualification(s):
• M.B.A from INSEAD

• Bachelor of Engineering (Hons) in Electrical and Electronic Engineering from University College London
Working Experience:
• Prior to joining TNB, Zarihi was the Senior Director, Investment and a member of the Investment Committee at
Ekuiti Nasional Berhad. His responsibilities extend across various investment lifecycles from deal origination,
structuring, valuation, due diligence, operational value creation and investment exit.
• He was also the Vice President, Strategic Investment at Permodalan Nasional Berhad. His role was to maximise
total shareholder return from key portfolio companies.
• He also served as the Vice President at Axiata Digital and Axiata Group.
• During his early career, he held various roles in management and I.T consulting with Accenture and A.T. Kearney.
• He was also an engineer at Motorola Semiconductor.
Malaysian / 45 / Male Directorships In Public Companies and Listed Issuers:
• Nil
12 January 2022
GEMC GPC

DATUK FAZIL BIN IBRAHIM

Chief Information Officer
Qualification(s):
• Master of Business Administration, MBA Ohio University, Athens, United States of America
• Bachelor of Science – BSc. Australian National University, Canberra, Australia, (Operations Management &
Computer Science)
Working Experience:
• Datuk Fazil bin Ibrahim started his career with LLN/TNB in 1985, in various roles within the Group, including
Corporate Services, Distribution and Human Resource before being promoted to Head of Corporate Systems &
Application Support, ICT Division in 2006.
• He held the position of Senior General Manager for ICT Division from 2012 to August 2015 and subsequently was
appointed as Chief Information Officer with effect from 1 September 2015.
• He is responsible for TNB's group-wide business information systems & cyber security, technology & digital
strategy, delivery of telecommunication & IT infrastructure, major enterprise solutions and other applications.
• He also oversees business continuity planning, coordinating & monitoring of ICT & Digital initiatives within ICT
Malaysian / 59 / Male Division, group-wide and with external parties.
Date of Appointment: Directorships In Public Companies and Listed Issuers:
1 September 2015 • Nil
GEMC GPC GMTC
AMIR MAHMOD BIN ABDULLAH

Chief Procurement Officer
Qualification(s):
• MSc. In Engineering Business Management (Integrated Graduate Development Scheme, IGDS), University of Warwick,
United Kingdom/University of Technology, Malaysia
• B.Eng. (Hons) in Electrical & Electronic Engineering, Brighton Polytechnic, United Kingdom
• Post Graduate Diploma In Engineering Business Management (Integrated Manager Development Scheme, IMDS),
University of Warwick, United Kingdom/University of Technology, Malaysia
• Other learning exposure and experiences includes attachment at Melbourne Business School (Australia), National
University of Singapore and Disney University, Florida, United States of America
Working Experience:
• Amir Mahmod Abdullah started his career in 1988 with LLN/TNB. He has vast years of experiences ranging from
Customer Service, Maintenance, Planning, Construction to Head of few Cost and Profit Centers.
• Among the special projects led by him were the development of online application system such as Competency Based
Performance Management System, Online Employee Feedback, and Integrated Development of Proton City.
• In 2009, Amir served as Head of TNB Metering and Revenue Management and later, in 2014, he was appointed as the first
Nationality / Age / Gender: Programme Director of TNB’s Smart Meter under Advanced Metering Infrastructure (AMI) which is part of Connected
Grid of the Future.
Malaysian / 55 / Male • In 2016, Amir was assigned to Tenaga Cable Industries Sdn. Bhd. (TNB’s Subsidiary) to transform the loss making cable
company into a more profitable and sustainable company.
Date of Appointment: • In 2018, Amir then served as a Program Director of Procurement Hub Functions and was later appointed as Chief
Procurement Officer in January 2020.
• Amir was one of the first participants of TNB's Leadership Drive programme, and is now an accredited trainer in several
1 January 2020 business areas.
GEMC GPC COMPEC
• Nil

GOVERNANCE
Pages 58 - 125
AHMAD HUSHAIRI BIN IBRAHIM

Chief Global Business Solutions Officer
Qualification(s):
• Bachelor of Science (Electrical Engineering), Syracuse University, New York
Working Experience:
• Ahmad Hushairi bin Ibrahim began his career at TNB in 1986. He has held positions in various divisions including
the Distribution Division, ICT Division and in Retail Operations. He was appointed Chief Global Business Solutions
Officer in November 2021.
• He was appointed General Manager (Strategy Management and Organisation Development), Distribution
Division in 2011 where he was responsible for driving the business plan forward. In 2016, he was appointed
Project Director (Billing and Customer Relation Management) in the Distribution Division and Head of retail
operations in 2018 and Head of Strategy in the Retail Division in January 2021.

• Nil
15 November 2021
GEMC GPC GMTC
NORAZNI BINTI Additional Information on Our Management
MOHD ISA Team:
Company Secretary (i) None of the members of our Management

Team has any family relationship with any
Director and/or Major Shareholder of TNB.
(ii) None of the members of our Management
Team has any conflict of interest with TNB.
(iii) None of the members of our Management
Team has been convicted of any offences
(save for minor traffic offences) within the
past five (5) years, nor has been imposed
any public sanction or penalty by the relevant
regulatory bodies during the Financial Year
under review.
MEMBERSHIP KEY
GEMC
Group Executive Management Committee

GPC
Malaysian / 58 / Female
Group People Committee
Date of Appointment: COMPEC
Commodity Procurement Executive Committee

31 May 2012
GMTC
Management Committee(s): Group Management Tender Committee
IEC
GEMC GPC Her profile is set out in Company Secretary’s Profile on
page 72 of the Integrated Annual Report. Investment Executive Committee

GOVERNANCE
Pages 58 - 125
ORGANISATIONAL STRUCTURE
BOARD OF DIRECTORS
Chief Internal Auditor

BOARD COMPANY
Chief Risk Officer
COMMITTEES SECRETARY
Chief Integrity Development Officer
PRESIDENT/CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER

(Group Finance Division)
CHIEF REGULATORY & STAKEHOLDER

MANAGEMENT OFFICER
(Regulatory & Stakeholder Management
Division)
MANAGING DIRECTOR CHIEF STRATEGY & VENTURES

(TNB Power Generation Sdn. Bhd.) OFFICER
Non-Core Business
(Strategy & Ventures Division)

CHIEF GRID OFFICER
Core Business
(Grid Division) CHIEF PEOPLE OFFICER

(Group Human Resource Division)
CHIEF DISTRIBUTION NETWORK
OFFICER CHIEF NEW ENERGY OFFICER
(Distribution Network Division) (New Energy Division)
CHIEF RETAIL OFFICER CHIEF INFORMATION OFFICER

(Retail Division) (Information & Communication
Technology Division)
CHIEF PROCUREMENT OFFICER

(Procurement & Supply Chain Division)
CHIEF GLOBAL BUSINESS

SOLUTIONS OFFICER
(TNB Global Business Solutions Division)
Ring-fenced
Single Buyer Grid System Operator
HEAD (Corporate Communications)

HEAD (Legal Services)
(Group Corporate Communications
(Legal Services Department)
Department)

CHAIRMAN’S INTRODUCTION TO CORPORATE GOVERNANCE
CLARITY OF PURPOSE, POSITIVE

CULTURE AND STRONG GOVERNANCE
ENABLES US TO CONTINUE
DELIVERING FOR OUR STAKEHOLDERS
Dear Shareholders,
On behalf of the Board, I am pleased to introduce the corporate governance overview for 2021. This,
along with our corporate governance report which is available on our corporate website, continues to
be the Board’s principal method of reporting to shareholders on our governance policies and on our
application of the principles of good corporate governance.
Our strong governance framework, culture and values have continued to play a critical part in enabling us to respond to the pandemic and its economic and
social impact in conjunction with safeguarding the business imperatives which underpin long-term sustainable value creation. As part of the Nation’s critical
infrastructure, our work has never been more important, and I am immensely proud of the outstanding work of our employees across the Group, as they
adjusted to their home and working lives in ways that would have seemed unimaginable before the pandemic. They have risen to the challenge of supporting
the safety of fellow employees and loved ones, whilst continuing to focus on running the business. Working together, they have provided the energy and
critical system support services that the country needs to keep the lights on and to power industry and businesses.
COVID-19 and the Board’s Response

The Board adapted to the changing ways of operating in response to the pandemic. Deploying online video conferencing, the Board held additional meetings to
oversee management’s response and understand the impact on employees, customers, suppliers and business partners. These meetings were attended by the
Group Executive Management Committee (GEMC), together with key members of senior management as necessary. Each meeting started with a report on our
employees, focusing on the measures taken to protect key workers at operational sites, and how the Company was implementing home working arrangements
where possible. The report also provided updates on the well-being of employees as they adapted to changes in their lives and working practices. The Board
also oversaw the operational response to continuing to deliver the Group’s key objectives during the pandemic.
The Board has been kept appraised of the measures being taken and appreciates the open and honest discussions with management and the collegiate
response to the pandemic. The way the business has performed during this period is a testament to the strength of the organisational structures and the
commitment and hard work of employees at all levels.
ROLE OF THE BOARD AND ITS EFFECTIVENESS risks identified and reviewed are contained in the We also actively engage with all our stakeholders,
My role as Chairman is to provide leadership to the Statement on Risk Management and Internal Control including our customers, our communities, our
Board and to provide the right environment to enable on pages 118 to 124. people and our suppliers, as well as with our investors.
each of the Directors, and the Board as a whole, to We are acutely aware that our stakeholders are
perform effectively to promote the success of the STAKEHOLDER ENGAGEMENT struggling with the challenges posed by an uncertain
Company for the benefit of its shareholders and other The Board understands the part the Group can future. We commit to maintaining appropriate and
stakeholders. play in creating a more sustainable Malaysia. We regular dialogue to ensure that our strategy and our
are committed to carrying out our business in a performance objectives reflect their expectations.
It is my view that the Board continues to be highly responsible way and remain focused on improving the Our continuous engagement allows stakeholders to
effective with a good understanding of the Group’s provision of energy services for the benefit of all of our provide feedback on the matters they consider to be
opportunities as well as the threats facing the stakeholders. important and any issues which they would like to be
business. This view is supported by the results of this addressed.
year’s Board and Committee performance evaluations, We engage and consult with employees regularly
which are reported on pages 93 to 94. The Board through employee engagement forums. Such forums
keeps under constant review the threats to the future provide employees with important and up to date
success of the business, the most immediate being the information about key events and give them an
continuing impact of the COVID-19 pandemic. Other opportunity to provide feedback.

GOVERNANCE
Pages 58 - 125
CHAIRMAN’S INTRODUCTION TO CORPORATE GOVERNANCE
BOARD CHANGES
The Board continuously seeks to ensure it has an The resignation of Dato’ Seri Mahdzir bin Khalid took These new appointments have added to the wealth
appropriate mix of diversity, skills, experience and place with effect from 29 August 2021 and the Board of experience/expertise we have on the Board.
expertise to enable it to discharge its responsibilities of Directors also would like to express its appreciation
effectively and to be well equipped in assisting the to Dato’ Seri Mahdzir bin Khalid for his contribution to The Board fulfils Practice 5.2 of MCCG for Large
Company to navigate the range of opportunities and the Company. Companies having a majority of Independent Directors,
challenges ahead. with the number exceeding the minimum requirement
With deep regret we report the demise of Noraini as prescribed by the Main Market Listing Requirements
In view of the need to ensure proper processes are in binti Che Dan, Senior Independent Non-Executive of Bursa Malaysia Securities Berhad (MMLR).
place to manage succession issues at the Board level, Director on 26 August 2021. The Board of Directors
an appropriate process for the selection, nomination would like to place on record their highest gratitude The Board/BNRC continuously review the Board Skills
and appointment of suitable candidates to the Board and appreciation for her guidance and immense Matrix, which serves to identify the skills, knowledge,
has been put in place. contribution given by the late Noraini binti Che Dan to experience and capabilities desired of the Board to
the Board during her tenure as a Director. She was the enable it to meet both current and future challenges
The BNRC is entrusted with the responsibility Chairman of BAC and Member of Board Finance and of the Company. It reflects the appropriate mix of
of assessing and considering the capabilities, Investment Committee (FIC), Board Risk Committee skills, expertise and experience required to address
commitment and qualities of candidates to be (BRC), BNRC and Board Long Term Incentive Plan existing and emerging business and governance
appointed as Board Members as well as Committee Committee (BLTIP). Her stewardship, integrity and issues, to enable Directors to effectively review
members, taking into account the diversity, required wisdom will be deeply missed. Management’s performance.
mix of skills, background, experience/expertise/
knowledge relevant to the Company’s business, The Board on 25 November 2021, approved the The Board approved the BNRC’s recommendation
existing commitment and potential conflict of appointment of Datuk Lau Beng Wei as Independent that in order to strengthen the Board’s composition to
interest prior to recommending to the Board. Non-Executive Director with effect from 1 December be more dynamic, the skills and gaps that have been
2021. He began his career in TNB and currently identified as critical and need to be filled are technical
The Board may appoint a new Director either to fill the Chairman, Lembaga Pelesenan Eksais Wilayah experience, international business experience
a casual vacancy or to add to the existing Directors. Persekutuan Kuala Lumpur, Dewan Bandaraya Kuala and customer centricity. The Board agreed that all
The Minister of Finance (Incorporated) (MoF Inc.), Lumpur. His understanding and knowledge of the Directors appointed during the Financial Year under
being the Special Shareholder of TNB, possesses the Company’s operation and the industry shall facilitate review had met the required skills.
right to appoint up to six (6) Directors. The Company’s the Board in making effective decision making.
Constitution provides that the Company must have at Further to that his qualification and experience have The Board believes that it presently has an
least two (2) Directors but not more than 12 Directors. fulfilled the gap identified through the Board Skills appropriate balance of skills, experience, knowledge
Matrix, of having a Director with technical experience and independence to deliver the Group’s strategy,
As at the date of this statement, there are 12 members on Board. He was appointed as Member of BAC and to enable the Non-Executive Directors to effectively
on the Board excluding Alternate Director; one (1) FIC with effect from 1 December 2021. challenge the views of Management and to satisfy the
Executive Director and 11 Non-Executive Directors, requirements of good governance.
eight (8) of whom are Independent Directors. A new addition to the Board is the appointment of
Dato’ Merina binti Abu Tahir as Independent Non- CULTURE AND GOVERNANCE
These Independent Directors are considered by the Executive Director with effect from 1 February 2022. Strong governance is central to our successful
Board to be independent of Management and free She was also appointed as Chairman of BAC and management of the Group and it provides the
of any business or other relationship or circumstance Member of FIC and BNRC with effect from 1 February framework for the effective delivery of our strategy,
that could materially interfere with the exercise of 2022. fulfilment of our purpose, the creation of value for all
objective, unfettered or independent judgement. our stakeholders and the ongoing development of
She has over 30 years of experience across finance, our sustainable business.
The Board have continued to reshape its membership business development, internal audit, governance/
through the right balance of experience, expertise ethics sectors in both local and international The Board and Management promote openness and
and fresh thinking. companies and had served in several key positions a collaborative culture across the Group. Our people
at Malaysian corporates namely Malaysia Airlines are respected irrespective of their background, are
We saw several movements of the Board during the Berhad/Malaysian Airline System Berhad, Amanah enabled to realise their potential, and contribute to
Financial Year under review. Dato’ Sri Hasan bin Arifin Capital Partners Berhad and Sime Darby Berhad. delivering our purpose and strategy. We have always
was appointed as Chairman/Non-Independent Non- placed, and will continue to place, particular emphasis
Executive Director, with the concurrence of MoF She is a Fellow Member of Association of Chartered on the safety and well-being of our people. The Group’s
Inc., with effect from 1 October 2021 in place of Dato’ Certified Accountants (ACCA), UK and Member of response to COVID-19 highlighted the deep-rooted
Seri Mahdzir bin Khalid upon his appointment as the Malaysian Institute of Certified Public Accountants, sense of caring at all levels, as the business sought to
Minister of Rural Development. Dato’ Sri Hasan bin Arifin Malaysian Institute of Accountants (MIA), ASEAN support employees and wider stakeholders.
is an Appointed Director by MoF Inc., representing the Chartered Professional Accountant and Institute of
interest of TNB’s Special Shareholder. He is neither a Internal Auditors Malaysia. She was past Chairperson Details of how we have applied the Principles that form
member of the Board Audit Committee (BAC) nor Board of ACCA Malaysia Advisory Committee and past the MCCG are provided in our Corporate Governance
Nomination and Remuneration Committee (BNRC) or Council member of the MIA. Report. Underpinning our application of the Principles
other Board Committees in line with the Malaysian Code is our compliance with the MCCG’s Intended Outcomes;
on Corporate Governance as at 28 April 2021 (MCCG). She sits on the Board of S P Setia Berhad, a listed I am pleased to say that, save for Practice 8.2 of
company in Bursa Malaysia Securities Berhad. MCCG and what has been explained in the Corporate
With his experience in the corporate sector, the Board Governance Report, we have generally complied with
believed that he would not only continue the great Faisal @ Pisal bin Abdul Ghani was appointed as the MCCG Principles.
work of his predecessors but also maintain the practice Alternate Director to Datuk Seri Asri bin Hamidin
of good governance, transparency and accountability. @ Hamidon on 1 March 2022, in place of Azmin bin
His wealth of knowledge would be instrumental in Ishak who had ceased office on 10 February 2022.
TNB’s ongoing transformation initiatives and efforts to
recover from the onslaught of COVID-19. DATO’ SRI HASAN BIN ARIFIN
Chairman

PRINCIPLE A:
BOARD LEADERSHIP & EFFECTIVENESS
A SO UND GOV ERN ANCE FR A M E WO R K U NDE R P I NS O U R PU RPO S E A N D

THE BOARD AND ITS GOVERNANCE FRAMEWORK
The purpose of the Board is to provide leadership and direction to the Group’s management within The Company’s governance framework underpins the Company’s operations. In addition to the seven
a framework of controls which enable risk to be adequately assessed and managed. The Board is (7) Board Committees detailed below, the Board has GEMC which comprises of the Top Management.
responsible and accountable to shareholders for the sustainable long-term success of the Company.
Terms of References (TORs) for the Company’s BAC and BNRC are available at www.tnb.com.my.
THE BOARD
Key Roles and Responsibilities
Chairman President/CEO
• Provides leadership to the Company and direction for Management.
• Has collective responsibility and accountability to shareholders for the long-term success of the Group. • Leads the Board. • Has day-to-day responsibility for running the Group’s operations.
• Reviews the performance of Management and the operating and financial performance of the Group. • Ensures an effective Board, including • Recommends to the Board and implements Group strategy.
• Sets strategy. contribution and challenge from the • Applies Group policies.
• Determines risk appetite. Directors. • Promotes TNB’s culture and standards.
• Ensures that appropriate risk management and internal control systems are in place. • Ensures that the Group maintains • Ensures the Directors are properly informed and that sufficient
• Sets the Company’s culture, values and behaviours. effective communication with its information is provided to the Board to enable the Directors to form
• Ensures good governance. shareholders. appropriate judgements.
• Deliberate and approve sustainability strategy and pathway while overseeing TNB’s implementation and
performance on sustainability
The roles of Chairman and President/CEO are held by two (2) separate individuals
Dato’ Sri Hasan bin Datuk Ir. Datuk Seri Asri bin Datuk Amran Hafiz Juniwati Rahmat Gopala Krishnan Ong Ai Lin
Board of Directors Arifin1 Baharin bin Din2 Hamidin @ Hamidon bin Affifudin3 Hussin4 K.Sundaram5
Total Board Meetings Attended

for Financial Year 2021 4/4 100% 17/17 100% 13/20 65% 19/20 95% 19/20 95% 20/20 100% 20/20 100%
TNB BOARD COMMITTEES
Chairman Chairman Chairman Chairman

A Noraini binti Che Dan11 F Datuk Amran Hafiz bin Affifudin3 T Datuk Seri Asri bin Hamidin @ Hamidon NR Juniwati Rahmat Hussin4
Attendance 7/9^ (78%) Attendance 14/14 (100%) Attendance 5/12 (42%) Attendance 4/5^ (80%)
Board Audit Board Board Tender Board
Committee Members Finance And Members Committee Members Nomination Dato’ Roslina binti Zainal6
(BAC) Ong Ai Lin Investment Dato’ Roslina binti Zainal6 (BTC) Dato’ Roslina binti Zainal6 And Attendance 8/8* (100%)
Attendance 13/13 (100%) Attendance 14/14 (100%) Attendance 12/12 (100%)
Committee Remuneration Members
Gopala Krishnan K.Sundaram5 (FIC) Gopala Krishnan K. Sundaram5 Juniwati Rahmat Hussin4 Committee Datuk Seri Asri bin Hamidin
Attendance 13/13 (100%) Attendance 13/13* (100%) Attendance 12/12 (100%) (BNRC) @ Hamidon
Attendance 6/13 (46%)
Datuk Rawisandran a/l Narayanan8 Datuk Lau Beng Wei9 Dato’ Ir. Nawawi bin Ahmad7
Attendance 13/13 (100%) Attendance 1/1* (100%) Attendance 10/10* (100%) Datuk Amran Hafiz bin Affifudin&
Juniwati Rahmat Hussin4 Dato’ Ir. Nawawi bin Ahmad7 Azmin bin Ishak
Attendance 10/10* (100%) Attendance 1/1^ (100%) Attendance 7/7 (100%) Dato’ Ir. Nawawi bin Ahmad7
Total Total Total Total Attendance 13/13 (100%)
Datuk Lau Beng Wei9 Noraini binti Che Dan 11
Datuk Amran Hafiz bin Affifudin3
23.45 Attendance 2/2* (100%) 27.33 Attendance 6/9^ (67%) 17.17 Attendance 2/2^ (100%) 12.58 Azmin bin Ishak
meeting meeting meeting meeting Attendance 7/7 (100%)
Dato’ Roslina binti Zainal6
hours Attendance 3/3^ (100%) hours hours hours
Noraini binti Che Dan11
Attendance 9/10^ (90%)
Key Roles and Responsibilities

To oversee the integrity of the financial statements in To review and recommend to the Board for approval/ To establish the framework of TNB’s Procurement & Supply To identify and recommend new nominees to the Board,
compliance with legal and regulatory requirements approve investment/divestment proposal recommended Chain Policy and Procedures. Board Committees and Boards of TNB Group.
and applicable accounting standards. by Management balancing strategic, financial and risk
and return. To advise the Board regarding the details and To consider/review the Executive Director and Top
To assess the effectiveness of the Group’s internal implementation of TNB’s Procurement & Supply Chain Management’s succession planning.
control framework as well as internal and external To review and approve investment risks and risk Policy and Procedures framework.
audit functions. treatment proposed by Management for new investment/ To review Board’s required mix of skills, experience and
divestment proposals proposed by the Management for To assist the Board in regulating the compliance of other qualities, including core competencies which Non-
investment of value up to RM200.0 million per transaction. Top Management and Executive Director with TNB’s Executive Directors should bring to the Board.
Procurement & Supply Chain Policy and Procedures.
To review and recommend to the Board for approval To implement the process formulated by the Board to
investment risks and risk treatment proposed by To ensure TNB complies with the applicable laws, assess the effectiveness of the Board, Board Committees,
Management for new investment/divestment proposals regulations, rules and guidelines to achieve best business Self and Peer.
proposed by the Management for investment of value practices in its procurement of equipment, materials,
above RM200.0 million per transaction. works and services. To determine and recommend to the Board the
remuneration packages of Non-Executive Directors/
To review, monitor and make recommendations to the Executive Directors/Top Management.
Board for approval in matters pertaining to finance,
including but not limited to budgets and funding To align the Board and Top management reward/
activities. remuneration to Key Performance Indicators (KPIs).
BOARD RESERVED AUTHORITIES

AUDIT AND
FINANCIAL
GOVERNANCE DELEGATED AUTHORITY TO MANAGEMENT
Internal Audit
External Audit PRESIDENT/CHIEF EXECUTIVE OFFICER (President/CEO)
Financial Controls
GROUP EXECUTIVE MANAGEMENT COMMITTEE (GEMC)
GPC GMTC COMPEC

APPROVAL COMMITTEES Group People Group Management Commodity Procurement
Committee Tender Committee Executive Committee
CONSULTATIVE COUNCILS RC TC SDC

Regulatory Council Technology Council Sustainability Development Council

GOVERNANCE
Pages 58 - 125
PRINCIPLE A:
SUPPORTS EFFECTIVE DECISION-MAKING AND THE DELIVERY OF OUR STRATEGY

Total Hours of
Board Meetings
41.33 Overall Percentage of Board
Meetings Attended By
Directors 95.57% Total Hours of Board
& Board Committee
Meetings 158.62
All Directors have complied with the minimum attendance as stipulated in the MMLR, of which being present not less than 50% of the Board meetings held during the Financial Year.
Senior Independent Non-Executive Director (SID) Non-Executive Directors Chief Financial Officer Company Secretary
• Provides a sounding board for the Chairman. • Constructively challenge the Management in all areas. • Has day-to-day responsibility for the management of • Advises the Board on corporate disclosures and
• Acts, if necessary, as a focal point and intermediary for • Scrutinise Management’s performance. the finance function. compliance with Companies Act 2016, securities
the other Directors. • Help develop proposals on strategy. • Leads the Group’s finance activities, risks and controls. regulations and MMLR.
• Ensures that any key issues not addressed by the • Satisfy themselves on the integrity of financial • Represents TNB externally to stakeholders, • Together with the Chairman, keeps the effectiveness of
Chairman or the Executive Management are taken up. information and on the effectiveness of financial shareholders, customers, suppliers, regulatory and the Company’s and the Board’s governance processes
• Is available to shareholders should they have controls and risk management systems. Government authorities and the community. under review.
concerns. • Determine appropriate level of remuneration for • Provides advice on corporate governance issues.
Senior Management. • Facilitates the orientation of new Directors and assists the
Directors’ training and development.
Dato’ Roslina binti Dato’ Ir. Nawawi Datuk Rawisandran Datuk Lau Azmin bin Ishak Datuk Seri Amir Noraini binti Dato’ Seri Mahdzir
Zainal6 bin Ahmad7 a/l Narayanan8 Beng Wei9 (Alternate Director to Hamzah bin Azizan10 Che Dan11 bin Khalid12
Datuk Seri Asri bin Hamidin
@ Hamidon)
20/20 100% 20/20 100% 20/20 100% 1/1 100% 7/7 100% 4/4 100% 12/14 86% 13/14 93%
Chairman Chairman Chairman

R Ong Ai Lin L Dato’ Roslina binti Zainal6 I Gopala Krishnan
Attendance 8/8 (100%) Attendance 1/1 (100%) K. Sundaram5
Board Risk Board Board Attendance 1/1^ (100%)
Committee Members Long Term Members Integrity
(BRC) Juniwati Rahmat Hussin4 Incentive Plan Datuk Seri Asri bin Hamidin @ Hamidon Committee Dato’ Ir. Nawawi bin Ahmad7
Attendance 8/8 (100%) Attendance 1/1 (100%) Attendance 3/3* (100%)
Committee (BIC)
Gopala Krishnan K.Sundaram5 (BLTIP) Datuk Amran Hafiz bin Affifudin3 Members
Attendance 8/8 (100%) Attendance 1/1 (100%) Ong Ai Lin
Datuk Rawisandran a/l Narayanan8 Dato’ Ir. Nawawi bin Ahmad7
Attendance 8/8 (100%) Attendance 1/1 (100%) Juniwati Rahmat Hussin4 Notes:
Attendance 4/4 (100%) 1 Appointed as Chairman w.e.f. 1 October 2021.
Noraini binti Che Dan11 Datuk Rawisandran a/l Narayanan8 2 Appointed as President/CEO w.e.f. 1 March 2021.
Attendance 5/6^ (83%) Attendance 1/1 (100%) Datuk Amran Hafiz bin Affifudin3
Total Total Total 3 Ceased as Member of BTC w.e.f. 25 March 2021.
4 Appointed as Member of BAC and ceased as
26.50 1.08 7.17 Chairman of BNRC & BLTIP w.e.f. 25 March 2021.
meeting meeting meeting 5 Appointed as Member of FIC and ceased as
hours hours hours Chairman of BIC w.e.f. 25 March 2021.
6 Appointed as Chairman of BNRC & BLTIP and
ceased as Member of BAC w.e.f. 25 March 2021.
7 Appointed as Chairman of BIC & Member of BTC,
To oversee the establishment and implementation of To oversee the administration of TNB LTIP and the shares To oversee and conduct disciplinary matters for ceased as Member of FIC w.e.f. 25 March 2021.
the risk management framework that is embedded into granted (LTIP Shares) subject to the By-Laws. TNB personnel, including acting on the advice 8 Appointed as Member of BLTIP w.e.f. 25 March
the culture, processes and structures of the Group and is of the Management, hearing and deciding on 2021.
responsive to changes in the business environment. To approve and determine the manner in which the appeals and enforcing disciplinary proceedings 9 Appointed as Director and Member of BAC & FIC
LTIP Shares are granted and subsequently vested against staff convicted of misconduct.
w.e.f. 1 December 2021.
To approve the Risk Management Framework and to the selected employees in accordance with the
policies on behalf of the Board. By-Laws, including inter alia, the determination of eligibility, To review and make recommendations to the 10 Resigned as President/CEO w.e.f. 28 February
grant level, terms of acceptance of offers, terms of vesting Board of Directors on steps to be taken to establish 2021.
To ensure the principles and requirements of managing of shares, performance conditions and any other terms and a culture of integrity and honesty in all of the 11 Demised and ceased as Chairman of BAC and
risk are consistently communicated and adopted conditions imposed at the discretion of the BLTIP. Company’s business dealings. Member of FIC, BNRC & BRC on 26 August 2021.
throughout the Company.
Following the demise of Chairman of BAC,
To inform business strategy based on the impact of Gopala Krishnan K.Sundaram and Ong Ai Lin
identified sustainability risks and opportunities. were appointed to chair the BAC meetings.
Subsequent to that, Dato’ Merina binti Abu Tahir
To consider sustainability risks as part of the enterprise
risk management process. has been appointed as the new Chairman of BAC
w.e.f. 1 February 2022.
12 Resignation as Chairman w.e.f. 29 August 2021.
^ Reflects the number of meetings attended during

the time the Director held office/was Chairman/
Member of Committee(s).
* Reflects the number of meetings since his/her
Integrity respective appointment to the Board/relevant
Board Committee(s).
Risk Management
Strategy
Sustainability
IEC ICTGC ESC

Investment Executive Information & Communication Technology Energy Supply
Committee (ICT) Governance Committee Committee
EVC SMC HSEC ISC

Electric Vehicle Council Smart Meter Council Health Safety Environment Council Integrity Steering Council

PRINCIPLE A:
OPERATIONS OF THE BOARD

Prior to each Board meeting, the Board shall receive the Chairman Reports of each Board Committee on their deliberation and recommendation at each
meeting. This ensures that each Director is informed of the decisions made including views/comments raised. The Chairman of each Board Committee shall
then table to the Board its report and present the Committee’s recommendation for the Board’s approval accordingly. This permits the Board to raise any
comments/views on all deliberation of the Committees. All deliberations and recommendations must be minuted and approved by each Board Committee and
confirmed by the Chairman of each Board Committee at their respective Board Committee meetings. Under the guidance of the Chairman, all matters placed
before the Board are discussed openly. Presentations and advice are received frequently from senior executives within the Group and from external advisers
to facilitate the decision-making of the Board. In the year under review, the Board has considered a wide range of matters in order to meet its obligations with
discussions revolving around strategy, sustainability and operations of the Group, including that of both main operating subsidiaries, financial aspects of the
Group and on legal, compliance, governance and risk matters. In compliance with COVID-19 restrictions, Board and Committee meetings were held online/
hybrid mode throughout the year. Although this approach presented challenges, it enabled the Group’s usual high standards of governance to be maintained.
For more information, please refer to Sustainability Statement section, which can be found on pages 128 to 179 of our Integrated Annual Report (IAR).
BOARD COMPOSITION AND INDEPENDENCE

The Board has reviewed the independence of each Independent Non-Executive Director. None of the Independent Non-Executive Directors who served
during the year had any material business or other relationship with the Group, and there were no other matters that were likely to affect their independence
of character and judgement as guided by the MMLR. The Board recognises that in view of the characteristics of independence set out in the MCCG, length of
service is an important factor when considering the independence of Independent Non-Executive Directors. The Board adopts a policy that limits the tenure
of its Independent Non-Executive Directors to nine (9) years without further extension, pursuant to Step Up 5.4 of MCCG. Currently, none of the Independent
Non-Executive Directors has served the Board for more than nine (9) years.
OUR GOVERNANCE OF SUSTAINABILITY
Our Adoption of Sustainability Requirements under the MCCG

Practice Details Approach Status of Adoption
4.1 • The Board together with • Enhanced TOR for TNB Group Governance • The current structure allows the Board to assess
management takes responsibility for Platform (TGGP) including SDC, GEMC, and approve sustainability related strategy,
the governance of sustainability in BRC and BNRC will enable and elevate priorities and targets, which will be part of the
the Company including setting the the Management’s responsibility for the annual strategy planning process to monitor and
Company’s sustainability strategy, governance of sustainability holistically for review sustainability performances
priorities and targets the Company • Senior management are members of SDC where
• Strategic management of material sustainability matters are being discussed
sustainability matters should be
driven by senior management
4.2 • The Board ensures that the Company’s • SDC will continue to play its role as • Sustainability strategies, priorities and targets are
sustainability strategies, priorities and a strategic platform to deliberate reported annually within the Integrated Annual
targets as well as performance are Company’s sustainability direction; which Report and Sustainability Report
communicated to its internal and includes sustainability aspiration, plans, • TNB Sustainability Pathway strategy was
external stakeholders commitments, targets and communicate announced publicly and a few engagements being
these to both internal and external conducted to communicate with internal and
stakeholders external stakeholders
4.3 • The Board takes appropriate steps • The BRC has approved TNB Strategic • TNB Strategic Risk and KRI on sustainability related
to ensure they stay abreast with Risks and Key Risk Indicators (KRI) on matters are in place to ensure the Company stays
and understand sustainability sustainability related matters, including abreast and understands sustainability issues
issues, including climate-related risks climate-related risks and opportunities • As such, the BRC deliberates on sustainability risk and
relevant to the Company opportunity as part of its agenda during its sittings
4.4 Performance evaluations of the • Enhanced
• Strategic Planning and • Performance evaluations of senior management
Board and senior management Performance Cycle process include are included in the Strategic Planning and
include review on their performance setting sustainability KPIs and monitoring Performance Management (SPPM)
in addressing Company’s material sustainability performances • In this framework, TNB’s strategy drives its
sustainability risks and opportunities • The Board, with the assistance of the business plan, annual operating plan, budget and
BNRC, reviews senior management performance management process, thus ensures
reward/remuneration to KPIs performance alignment of TNB’s strategies to execution and
including sustainability related indicators performance management
4.5 • Board identify a designated • The Board to designate a senior C-suite to • President/CEO leads the GEMC whose members
(Step Up) person within management to manage sustainability strategically comprised of the Top Management from core
provide dedicated focus to manage and non-core businesses, and spearheading the
sustainability strategically integration of sustainability in the Company

GOVERNANCE
Pages 58 - 125
PRINCIPLE A:
SUMMARY OF BOARD ACTIVITIES IN 2021
Board Charter
The Board is guided by its Charter which sets out the Board’s roles, powers, duties and functions. The Board at its meeting on 24 February 2022 had approved
the review of its Charter. The review was made in accordance with the MCCG, MMLR, Companies Act, 2016, Board current process & procedures, latest
respective Board Committees’ TOR, applicable rules/regulation and governance best practices.
Matters Deliberated By The Board and Its Committees During The Financial Year Ended 31 December 2021
The Board and its Committees engage in key strategic, governance and oversight activities each year. The list below is not exhaustive of all Key Areas of Focus/
Matters Deliberated by the Board and its Committees throughout the Financial Year, but serves to provide stakeholders with an insight into some of the key
matters considered by the Board:
BOARD
• Revenue, Operational and Capital Expenditure Budget for Financial Year • Revision to TNB Limits of Authority
2022 • Risk Management & Insurance Update for Financial Year 2021
• Approval/Status Update on TNB potential investments/divestment • Revised TNB Risk Management Framework
projects • 2021 Integrated Annual Report Statements
• Approval/Status Update/Issues Raised on Operational matters of TNB • Corporate Governance Report 2021
and its Group of Companies • Appointment and Resignation of Chairman & Directors
• TNB Organisation Structure & Governance Platform • Board Evaluation Assessment (BEA) for Board of Directors, Board
• Quarterly Group Performance Committees and Self & Peer FY2021 by Independent Expert
• Audited Financial Statements for Financial Year 2020 • Proposed FY2022 KPIs for President/CEO
• Quarterly Financial Results • Business Continuity Management & Crisis Response for COVID-19
• Interim & Final Dividends pandemic
• Quarterly Risk Dashboard Report • Non-Executive Directors Remuneration Benchmarking Exercise by
• Quarterly Report on Non-Audit Services Independent Expert
• Approval of Procurement within its Approving Authority • Notice of 32nd Annual General Meeting (AGM)
• TNB Divisions/Departments Risk Profiles & Convergence Initiatives
• Quarterly Report on TNB’s Litigation and Arbitration Cases
• Potential Proposals of Local and International Investment, With Focus on • Reviewed/Evaluated Investments in Subsidiaries and Associated
Renewable Energy Companies and Made Appropriate Proposals for any New Investments/
• Strategic Report of Subsidiary Management Department's Subsidiaries Divestments
• Commercialisation of TNB’s Real Estate Assets • TNB International Investments’ Quarterly Performance
• Review of FIC TOR
• Proposed capital structure & financing of TNB wholly owned subsidiaries
• Approval of Procurement within its Approving Authority • Procurement Policies and Procedures
• Procurement Plan and Strategy • COVID-19 Pandemic Impact on TNB Procurement & Mitigation Plans to
• Procurement Issues ensure the continuity of TNB’s Business Operation
• Approval on Granting & Vesting of LTIP Shares
• Management of Disciplinary Cases • Semi Annual Reporting to Malaysian Anti-Corruption Commission

• Quarterly Statistics of Disciplinary Cases • Approval on Amendments to Disciplinary Procedures
• Governing Body Review ISO 37001: Anti-Bribery Management System
• Summaries of the activities of BAC, BNRC and BRC are available in their respective reports of this Integrated Annual Report

PRINCIPLE A:
Material Matters Reserved for the Board
Formulating, reviewing and approving the Company’s strategic business plan
Matters Considered by the Board
The Board plays a pivotal role in reviewing the The Board had approved TNB Sustainability TNB’s Sustainability Pathway supports the
Company’s strategic direction and approving Pathway with an aspiration to achieve net zero nation’s RE plan to increase the share of
corporate strategic initiatives developed by the emissions by 2050, in a bold move towards green energy in its power capacity mix. Our
Management. The Board deliberates annually decarbonisation and Renewable Energy (RE). domestic capacity plan is in tandem with the
the Company’s strategic and business plan as Peninsular Malaysia Generation Development
proposed by the Management, including the This new pathway is a clearer manifestation Plan, based on considerations to balance the
annual capital and revenue budget for the of TNB’s sustainability journey which began in energy trilemma. The focus of our international
ensuing year as well as the KPIs. This will ensure 2016 with the launch of the Reimagining TNB business will be to grow our overall RE
that the KPIs correspond with the Company’s strategic plan. portfolio and serve as the pathfinder for green
annual strategic and business plan. The Board technologies which we can eventually adopt in
reviews and deliberates on the Management’s Under the sustainability pathway, TNB aspires Malaysia.
views/assumptions in ensuring the best to achieve net zero emissions by 2050. This
decisions are reached after considering all aspiration is underpinned by a commitment to More information on the Strategic Direction is
relevant aspects. reduce 35% of its emissions intensity as well as available in Creating Continued Value on pages
50% of its coal generation capacity by 2035. In 32 to 55 of the Integrated Annual Report.
A separate and informal session between the addition, TNB has pledged to ensure its revenue
Board and Top Management, known as the from coal generation plants does not exceed Based on the evaluation for the Financial Year
Board Breakout Session (BBO), is coordinated 25% of its total revenue. under review, the Board collectively concurred
by the Company Secretary’s Office, as and that it has reviewed the Company’s strategic
when the need arises. The BBO is a platform TNB is dedicated to develop energy storage and financial plan as well as monitored its
for the Board and Management to deliberate solutions and is already in discussions with the implementation, including the setting of
and exchange views as well as opinions in Government to implement this as an enabler for suitable KPIs in achieving the Company’s
formulating strategic plans/issues and to RE growth. TNB is also committed to accelerate objectives.
chart the direction of the Group, including the investments in emerging green technologies
reporting of its progress. like green hydrogen, and carbon capture
and utilisation (CCU) as soon as it becomes
Half-year reviews of the business plan and the economically viable.
budget were conducted whereby comparisons
of approved targets against the Company’s TNB remains committed to the Government’s
actual performance were made. green agenda and Malaysia’s commitment
to reduce Greenhouse Gas (GHG) emission
During the Financial Year under review, the intensity of gross domestic product (GDP) by
Board had several sittings of deliberation, 45% by 2030, relative to the 2005 baseline.
emphasizing on the Environmental, Social
& Governance (ESG) way forward for the
Company.
Link to Strategy


GOVERNANCE
Pages 58 - 125
PRINCIPLE A:
Identifying and managing principal risks affecting the Company
The Board, through BRC, is responsible for overseeing the effectiveness The BRC is assisted by the Chief Risk Officer and the Risk Management
and adequacy of the Group’s risk management framework and to Department (RMD) in discharging its duties and responsibilities. The RMD
ensure that it forms part of the Group’s corporate culture. The BRC’s key is responsible for the effective implementation of TNB Risk Management
responsibilities include approving the risk management framework and Framework for informed decision-making. The framework is developed in
policies on behalf of the Board and deliberating the Group’s strategic alignment with ISO 31000:2018.
and key operating risks as well as ensuring appropriate mitigations are
implemented to manage these risks. The BRC continues to diligently exercise its risk oversight responsibilities
by ensuring that risk management is an integral part of strategic planning
During the Financial Year under review, there were eight (8) BRC sittings. and decision making for the achievement of the Group’s strategic
The BRC reviewed the Statement on Risk Management and Internal outcomes and long-term objectives.
Control, which summarises the risk management practices and internal
controls implemented by Management. It also deliberated on KRI that Based on the evaluation for the Financial Year under review, the Board
were developed in alignment with BRC’s and Management’s risk appetite. collectively agreed that it has discharged its roles in identifying principal
risks and in ensuring that the Group has put in place an adequate risk
management framework to effectively monitor and manage the risks of
its operational businesses.
Link to Strategy

Reviewing the adequacy and integrity of the Company’s internal control system
The Board is responsible for ensuring that a sound reporting framework of internal controls and regulatory compliance is in place throughout the
Company. Based on the evaluation for the Financial Year under review, the Board collectively concurred that it has discharged its roles through the BRC/
BAC whereby regular meetings were held in reviewing the effectiveness of the Company’s internal control system.
Details of the Company’s internal control system and its effectiveness are provided in the Statement on Risk Management and Internal Control in this Integrated Annual Report.
Link to Strategy

PRINCIPLE A:
Overseeing and evaluating the conduct and performance of the Company’s businesses
The President/CEO is responsible for managing the day-to-day operations of the Company and implementing the Group strategies and policies as
agreed by the Board. In doing so, he is well supported by the respective Management Committees. The performance of Management is measured
through the Company’s and Group’s quarterly financial performance. The Board, on a continuous basis, is well informed of the progress of Company’s
strategic initiatives and critical operational issues as well as the Group’s performance based on approved KPIs.
Link to Strategy
• Grid of the Future • Future Generation Sources • Winning the Customer
Succession Planning
The Board, assisted by BNRC, is responsible The selection of candidates and appointment The Board/BNRC deliberated on the succession
for developing plans to identify the necessary of Independent Non-Executive Directors by the planning for critical positions in TNB, intended
and desirable competencies and skills of Board/BNRC are made with the assistance of to surface and manage the development of
Directors and succession plans to ensure there independent consultant, whenever necessary. TNB’s future leaders.
is appropriate dynamics of skills, experience,
expertise and diversity on the Board. In The Board of Directors would like to place on The Board is satisfied that BNRC has efficiently
addition, the Board/BNRC also oversee the record their highest gratitude and appreciation discharged its duties pertaining to the
appointment as well as succession planning of for her guidance and immense contribution nomination, remuneration and succession
the Top Management. given by the late Noraini binti Che Dan to the management functions as set out in its TOR.
Board during her tenure as a Director. Her
During the Financial Year under review, there dedication and commitment towards the Board The BNRC annually evaluates the performance
were several new additions to the Board, will be sorely missed. of the President/CEO and Top Management,
duly appointed by the BNRC/Board. With the whose remunerations are directly linked to
departure of Dato’ Seri Mahdzir bin Khalid, Dato’ During the Financial Year under review, several their respective KPIs. The President/CEO’s
Sri Hasan bin Arifin was appointed as Chairman/ movements in the Top Management took place. remuneration package is reviewed by the BNRC
Non-Independent Non-Executive Director, with Ahmad Hushairi bin Ibrahim was appointed as to reflect the contributions made towards
the concurrence of MoF Inc., with effect from 1 Chief Global Business Solutions Officer with the Group’s achievements for the year. The
October 2021. effect from 15 November 2021 in place of BNRC’s views and recommendations on this
Mohammad Ariff bin Zainol who retired on 18 are submitted to the Board for its decision/
The recent appointments to the Board were January 2022. approval.
Datuk Lau Beng Wei and Dato’ Merina binti Abu
Tahir, of whom were appointed as Independent Following the resignation of Mohd Shahazwan Based on the evaluation for the Financial
Non-Executive Directors with effect from bin Mohd Harris on 31 August 2021, the New Year under review, the Board collectively
1 December 2021 and 1 February 2022 Energy Division is now led by Mohd Zarihi bin concurred that succession planning for the
respectively. Mohd Hashim, the Chief New Energy Officer, who President/CEO and Top Management as well
was appointed with effect from 12 January 2022. as for the Company’s future leaders has been
Faisal @ Pisal bin Abdul Ghani was appointed appropriately developed.
as Alternate Director to Datuk Seri Asri bin These appointment were made through
Hamidin @ Hamidon on 1 March 2022, in place intensive deliberations and also taking into
of Azmin bin Ishak who had ceased office on 10 account their qualification/background,
February 2022. Their mix of skills, experience, working experience/expertise, professionalism
expertise and qualifications are analysed prior aptitude and knowledge of the Company/
to their respective appointments. industry.
Link to Strategy

GOVERNANCE
Pages 58 - 125
PRINCIPLE A:
SUPPLY OF INFORMATION AND ACCESS TO ADVICE RE-ELECTION OF DIRECTORS

A Pre-Board meeting is held prior to any Board meeting for the Management Clause 64(1) of the Company’s Constitution provides among others, that one-
to provide the Chairman with insights into the papers that will be deliberated. third (1/3) of the Directors at the time being of whom have been longest in
The agenda of Board meetings is drawn up upon consultation between the office shall retire by rotation at the AGM of the Company and shall be eligible for
Chairman, President/CEO and Company Secretary at the Pre-Board meeting. re-election.
Copies of the agenda and Board papers are circulated to Board Members
via an advanced meeting software which allows the Directors to securely Clause 63(2) of the Company’s Constitution provides among others, that the
access, read and review Board/Committees Documents and collaborate with Directors shall have power at any time and from time to time to appoint any
Directors and Company Secretary electronically or in hard copies at least five other person to be a Director of the Company either to fill a casual vacancy or
(5) working days prior to the meetings. as an addition to the existing Directors. Any Director so appointed shall hold
office only until the next following AGM of the Company and shall then be
Aside Board papers, presentations are provided by the Management to better eligible for re-election.
facilitate the discussion of subject matter. This permits prior review by the
Directors and if necessary, further clarification/additional information are Datuk Amran Hafiz bin Affifudin, Ong Ai Lin and Dato’ Roslina binti Zainal
sought upon deliberation to achieve informed decision making. The core are retiring by rotation in accordance with Clause 64(1) of the Company’s
activities of the Board and its Committees are documented and planned on a Constitution and being eligible, have offered themselves for re-election.
forward agenda. A list of matters arising from each meeting is maintained and
followed up at subsequent meetings. In respect of the new appointments to the Board for the Financial Year, Dato’
Sri Hasan bin Arifin, Datuk Lau Beng Wei and Dato’ Merina binti Abu Tahir
The Company Secretary advises the Board on governance matters, ensuring shall retire at the forthcoming AGM in accordance with Clause 63(2) of the
good information flows within the Board, its committees, the GEMC and Company’s Constitution, and being eligible, have offered themselves for
senior management. The Company Secretary is responsible for ensuring the re-election.
Board complies with all relevant processes and for assessing compliance with
the MMLR, Corporate Disclosure Guidance, the MCCG and the Companies Act The Board recognises that the Directors’ performance are used as basis
2016. An important part of this is effective collaboration with other parties in recommending their re-election to the shareholders. This, in turn, is
across all Group functions. Good training, regular discussions on key issues, determined through their annual evaluation and independence assessment,
and support from those in areas of critical operational risk in evaluating areas which are assessed by the BNRC before any recommendation is made to the
for change are also imperative. Board for deliberation and approval.
The Board and each Director are at liberty to obtain external independent or Based on the annual independence assessment undertaken by the
professional advice as deemed appropriate at the Company’s expense to assist Independent Directors of whom are retiring at the coming AGM, namely
with its decision making. This includes securing the attendance of external Ong Ai Lin, Dato’ Roslina binti Zainal and Datuk Lau Beng Wei, the BNRC/
advisers at meetings and seeking required information from any member of Board are satisfied that these Independent Directors have complied with
the Group’s workforce. the independence criteria as prescribed by the MMLR and continue to bring
independent and objective judgement to the Board.
DIVERSITY
We explain our work promoting diversity on page 169. The table below shows Dato’ Sri Hasan bin Arifin is an Appointed Director by MoF Inc., representing
the gender diversity split on the Board and in the wider workforce as at 31 the interest of TNB’s Special Shareholder. He was appointed to the Board
December 2021: as Chairman/Non-Independent Non-Executive Director with effect from
1 October 2021 in place of Dato’ Seri Mahdzir bin Khalid upon his acceptance of
Male Female Total ministerial position as Minister of Rural Development. The Board had approved
Gender No. % No. % No. the appointments of Datuk Lau Beng Wei and Dato' Merina binti Abu Tahir as
Independent Non-Executive Directors with effect from 1 December 2021 and
*TNB Board (excluding
8 73% 3 27% 11 1 February 2022 respectively.
Alternate Director)
Top Management (comprises
They have exercised the duty of care and diligence as Directors in the best
of GEMC, C-Suite, Senior 260 79% 70 21% 330
interest of the Company, its shareholders and stakeholders. With the new
General Managers)
additions, their expertise/experience shall further strengthen the Board
Senior Managers 613 67% 304 33% 917 composition and dynamics.
Executives 3,174 59% 2,190 41% 5,364
Non-Executives 17,658 85% 3,154 15% 20,812 All retiring Directors named above, through the Board Evaluation Assessment
Total 21,713 79% 5,721 21% 27,434 including Self and Peer Assessment, have met the performance criteria
required of an effective and high-performance Board.
* As at to date, there are 12 members on the Board with an addition of a woman Director, in support
of Practice 5.9 of the MCCG.
In addition, all retiring Directors have declared that they did not have any
existing or potential conflict of interest within or outside the Company that
could affect the execution of their roles as Company Directors.

PRINCIPLE A:
Having considered their professionalism, vast experience, material relationship, As of 18 March 2022, the newly appointed Directors’ Induction Programs
competency, commitment and individuals’ contributions in performing their include:
respective duties, the Board and BNRC are satisfied that all Directors who are • TNB Renewables Sdn. Bhd.: Overview Briefing by Managing Director, TNB
standing for re-election at the 32nd AGM have met the Board’s expectation by Renewables Sdn. Bhd.
continuously discharging their duties diligently as Company Directors. • Allo Technology Sdn. Bhd.: Overview Briefing by Chief Executive Officer,
Allo Technology Sdn. Bhd.
With that, upon the BNRC’s assessment, the Board resolved to support and • Yayasan Tenaga Nasional: Overview Briefing by Director, Yayasan Tenaga
recommend the re-election of each Director who is retiring at the upcoming Nasional
32nd AGM. • Strategy & Ventures Division: Overview Briefing by Chief Strategy &
Ventures Officer
DIRECTORS’ DEVELOPMENT AND INDUCTION • ICT Division : Overview Briefing by Chief Information Officer
To assist the Board in undertaking its responsibilities, a programme of • Group Human Resource Division: Overview Briefing by Chief People
training and development is available to all Directors, with training needs Officer
assessed as part of the Board evaluation procedure. The Board programme • Distribution Network Division: Overview Briefing by Chief Distribution
includes regular presentations from management and informal meetings Network Officer
to build understanding of the business and sector, or in areas recognised • Procurement & Supply Chain Division: Overview Briefing by Chief
as being technically complex. Such training is intended to support a deeper Procurement Officer
understanding as well as equipping the Non-Executive Directors with insight • Group Finance Division: Overview Briefing by Chief Financial Officer
into how TNB’s approach compares with the practices of its peers. All new • TNB Global Business Solutions Division: Overview Briefing by Chief Global
Directors receive a comprehensive and tailored induction programme, Business Solutions Officer
including meetings with Top Management, site visits, and briefings on key • Regulatory & Stakeholder Management Division: Overview Briefing by
operational matters, Board procedures and governance matters. Chief Regulatory & Stakeholder Management Officer
• TNB Retail Sdn. Bhd. : Overview Briefing by Chief Retail Officer
Dato’ Sri Hasan bin Arifin attended his Mandatory Accreditation Programme • TNB Power Generation Sdn. Bhd.: Overview Briefing by Managing Director,
for Directors of Public Listed Companies (MAP) from 6 December 2021 TNB Power Generation Sdn. Bhd.
until 8 December 2021, whilst Datuk Lau Beng Wei attended his MAP from • Grid System Operator Department: An Introduction Briefing by Head Grid
3 September 2018 until 4 September 2018. Datuk Ir. Baharin bin Din also System Operator, Grid Division
attended his MAP from 31 March 2021 until 2 April 2021. Dato’ Merina binti • Grid Division: Overview Briefing by Chief Grid Officer
Abu Tahir had attended the MAP on 15 February 2022 until 17 February 2022. • New Energy Division: Overview Briefing by Chief New Energy Officer
The existing Directors including newly appointed Directors had attended their
MAPs as prescribed under Paragraph 15.08 and Practice Note 5 by the MMLR. During the Financial Year under review, the Directors attended conferences
and professional trainings of which among others as follows:
The Company Secretary’s Office facilitates the Board in organising internal • European Central Bank Legal Conference 2021
and arranging external programmes, training sessions, briefings, workshops • 2022 Ministry of Finance Budget Retreat
and seminars that are relevant to the Directors. These include the annual • 9th Governance in Procurement Conference 2021: Procurement
Board Development Programme (BDP) which is organised in-house as part of Digitalisation For The Future
TNB’s Board Continuing Development Programme. • Achieving the Goals of the 12th Malaysia Plan: What are the Roles for Islamic
Finance?
BDP 2021 was held virtually in collaboration with Messrs • AMLA: General Guidance for Small Law Firms
PricewaterhouseCoopers PLT (PwC) on topic “ESG and Financial Reporting • Artificial Intelligence (AI) for Company Directors and Executives
Implications”. It was held on 11 October 2021, of which was attended by the • Balancing Risk Management with Sustainability Commitment: New
Board, Top Management, Managing Directors of TNB Group of Companies as Expectation of Investment Community
well as selected Senior General Managers. • BDP 2021
• Business Foresight Forum 2021: Transformative Innovation Reshaping
The topic is relevant following the impact of COVID-19 pandemic on the Business Realities In Extraordinary Times (BFF 2021)
Company/industry and being current economic issue besides providing • Board Committees Overview
guidance to the Board to better understand the impact of ESG towards TNB • Board Dynamics: What are the Key GRC Requirement
financial reporting. • Board Transformation & Smart Governance Roundtable Programme
• Business Transformation: Drive Sustainable Performance Results
In addition, a short session was held on 6 October 2021, to update Dato’ Sri • Climate Change: What Will the Next Decade Bring?
Hasan bin Arifin, on TNB’s operation which was attended by Top Management, • Climate Change; Reporting and Sustainability Trends: The Inter-Links
led by the President/CEO. The session also was held to extend a warm welcome Towards Addressing Sustainable Development Goals And Climate Change
to TNB’s new Chairman and to introduce TNB’s Top Management. • Conferencing Future Forward: Next Gen Digital Ecosystem

GOVERNANCE
Pages 58 - 125
PRINCIPLE A:
• Compliance Conference 2021: Shifting the Tide Towards Endemic - ML/TF • Beneficial Ownership Framework & General/Practical Issues
Risks and Challenges • Corporate Board Leadership Symposium 2021
• Constitutional Law Colloquium: Does the Constitution Matter? Lessons • Paving The Way For Profitability Through Sustainability
from the Malaysian Constitution During Times of Crisis • Corruption Risk Management
• Contract & Procurement Fraud • The Updated MCCG
• Cross-Border Registration for VAT. Why, When and How? • Company Secretary: Assistant, Adviser Or Both?
• Cultural Diversity in the Boardroom • MCCG: “What’s New And Their Implication To Listed Company, Its Directors
• Digital Acceleration and Innovation for Business Recovery and Growth And Management”
• Directors’ Training Programme Transformative Innovation: Reshaping • Board Transformational & Smart Governance Roundtable Programme
Business Realities in Extraordinary Times • SSM National Conference 2021: Governing Under New Normal
• ESG Risk Management for Enterprise Workshop • BFF 2021
• Ethics and Integrity Professionalism and Corporate Dilemma • MAICSA Annual Conference 2021: The New Norm: Managing Disruption -
• FCD Module B: Stakeholder Primacy in a Post-Covid Era Resilience And Recovery
• FCD Module E: Preparing the Board for Digital Disruption • Building High Performing Board: Maintain a Governance Framework That
• Global Net-Zero Action 2021 Conference: Transition to A Net-Zero Adds Value To The Business And Safeguard The Company’s Values
Emissions Economy
• Governance in Audit Forum: Audit Evolving Role in the New Normal BOARD EVALUATION
• How to Use “Design Thinking” to Enjoy Digitalization Journey The Board recognises that an objective and well-managed board evaluation
• IAEE Associations Webinar: Texas’ and Other Power Markets After The Big process can lead to substantial improvement in Board effectiveness, bringing
Freeze - Diagnosis and Prognosis significant benefits to the Company. This is achieved through annual
• Integriti E-Seminar Untuk Ketua Setiausaha dan Setiausaha Kerajaan Negeri: performance evaluations, induction programmes for new Board members
You Are Integrity Champion and ongoing Board development activities.
• Khazanah Megatrend Forum 2021: The Innovation of Tomorrow Creating
Our New Collective Narrative In 2021, the Board with the assistance of BNRC, approved the engagement of
• Konvensyen Rangka Kerja Perubahan Iklim Pertubuhan Bangsa-Bangsa Willis Towers Watson (WTW) on 1 July 2021, as Independent Expert for Board
Bersatu Evaluation Assessment FY2021 in support of Practice 6.1 of MCCG whereby
• Launch of World Bank Report: Non-Performing Loans in EAP: Practices and for Large Companies, the Board engages independent experts at least every
Lessons in Times of COVID-19 three (3) years, to facilitate objective and candid board evaluations. The last
• Leadership For Enterprise Sustainability Asia assessment carried out by the independent expert was in 2017.
• Low Carbon Policy: Carbon Neutral Pathway
• MAP
• MIA Virtual Conference 2021 Series: Corporate Board Leadership
Symposium 2021 - Enhancing Governance and Ethics Towards Future
Sustainability
• MIA Virtual Conference 2021 Series: Risk Management Conference 2021 -
Navigating Challenges in Unprecedented Times
• Paving the Way for Profitability Through Sustainability
• Risk Management Conference 2021
• SIDC’s Sustainable and Responsible Investment 2021
• Sustainable Exchange Development Series
• The 3rd New Southern Policy Forum
• The Cooler Earth Sustainability Summit 2021
• The Corporate Governance Landscape In Malaysia: Going Beyond
The Rules
• The Updated MCCG
• Transfer Pricing Aspects of Intragroup Loans and Guarantees Webinar
• WIEF-SIDC Powertalk Webinar 2021
Trainings for Company Secretary during the Financial Year under review:

PRINCIPLE A:
2021 BOARD EVALUATION ASSESSMENT RESULTS The SPA also examines the ability of each Board or Committee member to
The 2021 BEA was conducted by WTW through questionnaires via the WTW give input at meetings and to demonstrate a high level of professionalism
Online Survey System. The questionnaires for the 2021 BEA comprised the and integrity in the decision-making process. It also takes into account the
Board, Board Committees Effectiveness Assessment, Directors and Board ability of each individual member to exercise independent judgement and
Committee members’ Self and Peer Assessment (SPA), as well as a 360 demonstrate objectivity and clarity of thought on issues during deliberations
Degree Assessment by Top Management. In addition, the Directors also had at meetings, provide logical honest opinion, and offer practical and realistic
completed online Saville Wave Assessments to understand their respective advice to the discussions. The feedback from the Top Management was
and collective stewardship styles and WTW had one-on-one online interview also being sought via the 360 Degree Assessment questionnaires. The
sessions with Directors. Management’s feedback on the Board’s role, and the extent of collaboration
between the Board and Management in certain focus areas and in the review/
The effectiveness of the Board is assessed in the areas of the Board’s decision-making process are useful for the Board’s consideration in enhancing
responsibilities and composition, meeting process, administration and its overall effectiveness.
conduct, interaction and communication with Management and stakeholders
and the Board’s engagement, as well as the effectiveness of the Chairman and Based on the 2021 BEA results, each Director scored above a rating of four (4)
the President/CEO. for the peer evaluation indicating that each Director was generally effective
in dispensing his/her responsibilities. Dato’ Sri Hasan bin Arifin was rated as
The assessment of individual Directors’ contribution and performance is an effective Chairman, a good-listener, creating an open and consultative
conducted based on performance criteria which are incorporated in the environment whilst effectively delegating responsibilities and is decisive.
Directors’ SPA questionnaires. Amongst others are:
It was clear that the effectiveness of both the Chairman and President/CEO is
• will and ability to critically challenge and ask the right questions; reflective of the Board’s confidence in them, indicating strong and effective
• confidence to stand up for a point of view and offer advice/guidance; leadership in steering the Company’s direction.
• character and integrity in dealing with potential conflict of interest
situations; The Board is seen to be effective and ensures the integrity of the Company is
• calibre and personality; aligned to regulatory requirements, internal standards and best practices. The
• commitment to serve the Company; Board is committed to its fiduciary duties and assumes the core responsibilities
• due diligence and integrity; of reviewing and monitoring the Group’s strategic plan, overseeing and
• fit and properness; evaluating the conduct of the Group’s business and establishing sound risk
• independence and objectivity; management and internal control frameworks for the Group. The Board
• skills and competencies; and recognises the need to continuously strengthen the composition, structure
• contribution and performance. and diversity in line with its strategic direction whilst ensuring the processes
enhance the efficiency and effectiveness of the Board and its Committees and
The effectiveness of Board Committees is assessed in terms of structure and will continue to identify improvement opportunities.
processes, accountabilities and responsibilities, as well as the effectiveness
of the Chairmen of the respective Board Committees. The SPA for the Board Following the recent appointments of Datuk Lau Beng Wei and Dato’ Merina
Committee members is similar to the Directors’ SPA, which is intended to assess binti Abu Tahir, they shall be considered/applicable for the next BEA for the
their contribution, performance, calibre and personality in relation to the skills, Financial Year ending 31 December 2022.
experience and other qualities they bring to the Board/Board Committees.
Responsibility and Conduct Process and Administration Composition
• Business Strategy and governance and • Board Charter and Committee TORs • Diversity
implementation oversight • Agenda and frequency of meetings • Competencies of the Members
• Risk management and integrity • Sufficient information availability and on a • Board and Committee compositions
• Implementation oversight and monitoring timely basis
of strategies and policies • Culture and dynamics
This year’s process
Each Director
completed the BEA for
the Board and its respective A summarised report
Committees including Self and The BEA analysis was of BEA was tabled to the
Peer Assessment, 360 Degree presented to the BNRC for Board by the Chairman of
Assessment by Top Management, deliberation BNRC with a view to discuss
Online Saville Wave Assessment & areas of improvement
One-on-one online interveiw
sessions with Directors.

GOVERNANCE
Pages 58 - 125
PRINCIPLE A:
EXECUTIVE DIRECTOR AND TOP MANAGEMENT REMUNERATION The LTIP is to retain and reward Top Management to see out the growth and
The remuneration package for the Executive Director is structured to link business strategy aligning to the long-term success of the Company.
rewards to corporate and individual performance. It comprises salary,
allowances, bonuses and other customary benefits as accorded by comparable In summary, TNB strongly believes in performance culture and the
companies. A significant portion of an Executive Director’s compensation remuneration policy serves to pay competitively for sustainable performance
package has been made variable and is determined by performance during while being in line with the shareholders’ interest.
the year against individual KPIs in a scorecard aligned with the corporate
objectives as approved by the Board. The Executive Director recuses himself The Company has opted not to disclose the components of the remuneration
from deliberation and voting on his remuneration at Board meetings. of its Top Management as per Practice 8.2 of MCCG, as such disclosure may
bring disadvantageous to the Company’s business interest. This is further
The BNRC reviews the performance of the Executive Director annually explained in the CG Report.
and submits views/recommendations to the Board on adjustments in
remuneration and/or rewards to reflect the Executive Director’s contributions NON-EXECUTIVE DIRECTORS’ REMUNERATION
towards the Group’s achievements for the year. The Non-Executive Directors are remunerated through fixed monthly fees,
meeting allowances and benefits-in-kind, inclusive of the reimbursement of
The key elements of remuneration package for Top Management are structured utilities bills and business peripherals.
into three (3) components namely (i) the Base Salary, Fixed Allowances and
Benefits (ii) Short Term Incentive (STI) (iii) Long Term Incentive Plan (LTIP). The level of remuneration of Non-Executive Directors reflects the current
demanding challenges in discharging their fiduciary duties, roles and
Appropriate Base Salary needs to be competitive enough to attract and retain responsibilities, whether individually or collectively, as well as the complexity
the relevant talents, of which is determined by the scope of work, experience of the Company’s operations and the industry. The Non-Executive Directors’
and expected performance of a talent. Whereas the fixed allowances are for remuneration/benefits remain unchanged, since 2013.
certain benefits in cash and is not link to base salary.
The Board on 30 September 2021 engaged WTW to undertake Non-Executive
STI is based on yearly performance and paid as bonuses subjected to the Directors’ Remuneration Benchmarking exercise. The review was to conduct a
profitability of the Company and the performance of Top Management. holistic and independent review of the Non-Executive Directors’ remuneration
Performance is measured based mainly on quantitative targets and their and to determine its market competitiveness in Malaysia. The last review was
alignment to the values the Company stands for which would be qualitative made in 2018. Based on the findings, the structure of Non-Executive Directors’
in nature. remuneration (including benefits) is generally aligned with the market practice
and the existing remuneration is recommended to be retained and reviewed in
three (3) years time.
OUR REMUNERATION APPROACH

The Board, through BNRC is to determine an appropriate remuneration policy that aligns remuneration with strategy to drive the long-term success of the
Company and ensure that the Company may continue to attract, retain and motivate quality leaders.
The Directors’ Remuneration Policy is shaped by the following underlying principles:
Alignment with strategy and business objectives
Alignment with shareholders’ interest

Remuneration policy
Fixed Remuneration
Benefits-in-kind
Long-term success of the Company
Consistency and transparency
Reward performance with competitive remuneration
Alignment with market/industry practices
Support Company values

PRINCIPLE A:
DISCLOSURE ON DIRECTORS’ REMUNERATION

Details of each Director’s remuneration for the Financial Year ended 31 December 2021:
Director’s Fees Meeting Allowances Benefits-in-

Salary Company Subsidiaries Company Subsidiaries Emoluments1 Kind2 Total
Name of Directors (RM) (RM) (RM) (RM) (RM) (RM) (RM) (RM)
Executive Directors
Datuk Ir. Baharin bin Din
(Appointed w.e.f. 1 March 2021) 1,300,000.00 - - - - 976,971.50 87,270.60 2,364,242.10
Datuk Seri Amir Hamzah bin
Azizan
(Resigned w.e.f. 28 February 2021) 300,000.00 - - - - 2,301,152.50 33,655.51 2,634,808.01
Non-Executive Directors
Dato’ Sri Hasan bin Arifin - 90,000.00 4,032.263 10,000.00 - - 18,570.45 122,602.71
(Appointed w.e.f. 1 October 2021)
Datuk Seri Asri bin Hamidin @ - 240,000.00 - 49,500.00 - - 18,000.00 307,500.00
Hamidon
Datuk Amran Hafiz bin Affifudin - 240,000.004 - 97,000.004 - - 29,494.39 366,494.39
Juniwati Rahmat Hussin - 240,000.00 - 99,000.00 - - 11,014.95 350,014.95
Gopala Krishnan K.Sundaram - 240,000.00 - 94,000.00 - - 30,740.10 364,740.10
Ong Ai Lin - 240,000.00 - 86,000.00 - - 54,087.65 380,087.65
Dato' Roslina binti Zainal - 240,000.00 - 107,000.00 - - 25,663.20 372,663.20
Dato’ Ir. Nawawi bin Ahmad - 240,000.00 - 85,500.00 - - 49,527.11 375,027.11
Datuk Rawisandran a/l - 240,000.00 - 75,000.00 - - 34,553.39 349,553.39
Narayanan
Datuk Lau Beng Wei - 20,000.00 - 6 ,500.00 - - - 26,500.00
(Appointed w.e.f. 1 December 2021)
Azmin bin Ishak - - - 35,000.00 - - 37,818.03 72,818.03
(Cessation of Office as Alternate
Director w.e.f. 10 February 2022)
Dato’ Seri Mahdzir bin Khalid - 237,096.77 113,365.593 35,000.00 6,000.003 250,000.00 186,364.47 827,826.83
(Resigned w.e.f. 29 August 2021)
Noraini binti Che Dan - 156,774.20 - 70,500.00 - - 202,448.69 429,722.89
(Demised on 26 August 2021)
Total 1,600,000.00 2,423,870.97 117,397.85 850,000.00 6,000.00 3,528,124.00 819,208.54 9,344,601.36
Notes:
1 Contribution to EPF, Bonus, Car Allowance, Ex-Gratia, Gratuity, LTIP, Cash Leave, Recognition Payment and Leave Passage.
2 Utilities Bills, Business Peripherals, Purchase of Handphone, Uniforms, Club Membership, Medical and Travelling Expenses.
3 Payment made by respective Subsidiaries.
4 Paid to Khazanah Nasional Berhad, in respect of Director’s Fees and Meeting Allowances provided for Datuk Amran Hafiz bin Affifudin.

GOVERNANCE
Pages 58 - 125
PRINCIPLE A:
EN S U R I N G S OU N D F I N A N C I AL MANAGEMENT AND ROBUST CONTROLS
NR BOARD NOMINATION AND REMUNERATION COMMITTEE REPORT
BOARD NOMINATION AND Key Activities of The Committee

REMUNERATION COMMITTEE
Dato’ Roslina binti Zainal chairs the BNRC and she is well supported by four (4) Members.
Chairman
During the Financial Year under review, the BNRC held 13 meetings. The BNRC’s key activities in
Dato’ Roslina binti Zainal 2021 included the approval/deliberation of the following:
(Appointed as Chairman w.e.f. 25 March 2021) • Annual Assessment of Independence of Independent Non-Executive Directors;
• BEA of the Board of Directors, its Committees, and each Individual Director;
Juniwati Rahmat Hussin • Assessment of ‘fit and proper’ and performance review of Directors for re-appointment/
Independent Non-Executive Director re-election;
(Ceased as Chairman w.e.f. 25 March 2021) • Recommendation to the Board with regards to Directors who sought re-election at the AGM;
• Assessment of ‘fit and proper’ of potential candidates for proposed appointment as TNB Non-
Executive Directors;
Members • Review of Board Skills Matrix, upon any appointment of potential candidates to the Board;
• Appointment and Resignation of Chairman;
Datuk Seri Asri bin Hamidin @ Hamidon • Appointment and Resignation of Non-Executive Directors;
Non-Independent Non-Executive Director • Review of composition of the Board Committees upon appointment/resignation of Directors;
• Fit and proper assessment of potential candidates for Top Management;
Datuk Amran Hafiz bin Affifudin • Appointment of Top Management due to establishment of respective Divisions/succession
Non-Independent Non-Executive Director planning;
• Review of composition of the Boards of TNB Group for BNRC approval;
Dato’ Ir. Nawawi bin Ahmad • Review of succession planning of Top Management;
• Assessment and Recommendation to the Board on the promotion and renewal of service
contracts of Top Management;
• Review of performance evaluation against assigned KPIs of President/CEO and Top Management;
Dato’ Merina binti Abu Tahir
• Proposed Changes and Alignment of TNB Macro Organisational Structure;
Independent Non-Executive Director • TNB Notice of 32nd AGM;
(Appointed as Member w.e.f. 1 February 2022) • Engagement of Independent Expert for 2021 Board Effectiveness Assessment;
• Engagement of Independent Expert for Non-Executive Directors’ Remuneration Benchmarking
Noraini binti Che Dan Exercise;
Senior Independent Non-Executive Director • TNB Succession Planning Framework;
(Demised on 26 August 2021) • Review of BNRC TOR;
• Review of Board Charter.
For the details of meeting attendance of BNRC members, kindly refer to page 84.
The Committee last reviewed its TOR in January 2021.
KEY ROLES & RESPONSIBILITIES
For detailed roles & responsibilities of the Committee,

please refer page 84.

PRINCIPLE B:
EFFECTIVE AUDIT AND RISK MANAGEMENT
ETHICS, INTEGRITY & TRUST
In 2017, TNB, was one of the first listed corporation to embark on the ISO 37001:2016 Anti Bribery Management System (ABMS) certification. Towards achieving
the certification, TNB launched the TNB Corporate Integrity Management System (TCIMS) to drive an integrity-based culture and a high level of compliance
with local and international anti-bribery standards. TNB on 15 November 2018 was awarded with the ABMS Certification from SIRIM and further in reinforcing
this culture, launched TCIMS Handbook.
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 three (3) behaviours of Integrity are:
BEHAVIOUR 3
BEHAVIOUR 1
BEHAVIOUR 2 We always seek
We uphold highest
3 BEHAVIOURS We are fair, honest to achieve mutual
ethical standards and
OF INTEGRITY and transparent – in benefit for the
do what is right, all the
everything we do country, Company and
time
customers
The Handbook covers five (5) TCIMS policies, namely Anti-Bribery Policy, LIMITS OF AUTHORITY
Gifts, Hospitality and Related Benefits Policy; Conflicts of Interest Policy;
Whistleblowing Policy; and Integrity Pact and Committee Integrity Pledges The Limits of Authority outlines principles to govern decision making within
Policy. the Group, including appropriate escalation and reporting to the Board. The
Board has also delegated to the President/CEO, and through the President/
During the Financial Year under review, surveillance audit by SIRIM was CEO to other Executives, responsibility to manage the Company’s day-to-day
conducted involving Procurement & Supply Chain Division and three activities. The Limits of Authority encompasses both monetary and non-
(3) wholly owned subsidiaries of TNB, namely Malaysia Transformer monetary limits of authority for recommending and approving operational
Manufacturing Sdn. Bhd., TNB Fuel Services Sdn. Bhd. and Tenaga Cable and management decision-making activities prior to its execution. This
Industries Sdn. Bhd., Retail Division and TNB Repair and Maintenance Sdn. allows for balanced effective oversight with appropriate empowerment and
Bhd. successfully retained the ISO 37001 Anti-Bribery Management System accountability of the Management.
certification by SIRIM.
CODE OF ETHICS
A number of trainings & awareness sessions were conducted during the
Financial Year by the Integrity Department to better equip the Company The Board of Directors is guided by a high standard of ethical conduct in
for the implementation of Section 17A of the Malaysian Anti-Corruption accordance with the Code of Ethics for Company Directors as established by
Commission (MACC) Act 2009. These included the following: the Companies Commission of Malaysia.
- Six (6) sessions of Fraud and Bribery Risk Management Workshops; Each Non-Executive Director is supplied with the Non-Executive Directors’
- 15,274 staff and 1,579 vendors/business partners/associates participated Handbook as reference of their professional responsibilities as well as
in the Integrity E-learning. the terms and conditions of their service. The Non-Executive Directors’
- All staff are required to sign the integrity pledge and declare their conflict Handbook is updated as and when the need arises to reflect any changes
of interest via Employee Self Services On-line System annually; of the applicable rules and regulations as well as in the policies/ procedures
- ISO 37001 Internal Audit was carried out by 16 divisions/departments. that govern the conduct of the Directors.
- TNB Integrity Health Index (IHI) has been established to access and
capture relevant information on different attributes and dimensions of
Integrity Health status and performance of an Integrity Health system.
- 15,884 staff participated in the IHI survey FY2021 and the score is 79.74%.
- Signing of Prosedur Tatatertib TNB Edisi Ketujuh between the Management
and the Unions.
- 33 sessions of Integrity roadshows on the Prosedur Tatatertib TNB Edisi
Ketujuh, Pengurusan Kewangan & Liabiliti Korporat.
- 16,920 staff attended the online Integrity Roadshows.
- Published 18 Integrity bulletins and articles.

GOVERNANCE
Pages 58 - 125
PRINCIPLE B:
TNB has a Code of Ethics to govern the conduct of its employees. The provisions WHISTLE BLOWING PROCEDURE
set out in the Code of Ethics ensure compliance with laws and regulations,
sound employment practices, confidentiality and privacy. It also includes The Whistle Blowing Procedure embodies TNB’s commitment to maintaining
provisions on conflicts of interest, giving and accepting business courtesies an open working environment in which employees, contractors and
and the protection and proper use of TNB’s assets and resources. members of the public are able to report instances of unethical, unlawful
or undesirable conduct on a confidential basis without any fear of
TNB’s Code of Ethics also defines how TNB relates to its shareholders, intimidation or reprisal. An independent investigation team investigates all
employees, customers, suppliers and the communities in which it operates. reported concerns and where applicable, provides feedback regarding the
It includes TNB’s general principles on business integrity. All employees are investigation’s outcome.
expected to conduct business in accordance with the applicable laws, rules
and regulations and in a manner to enhance and protect the reputation of The objectives of the Whistle Blowing Procedure are as follows:
TNB. • to detect and address unacceptable conduct;
• to provide employees and contractors with a supportive working
TNB’s Procurement Code of Conduct guides TNB’s Directors and employees as environment in which they feel able to raise issues of legitimate concern
well as all existing and potential suppliers/ contractors including their directors to them and to TNB; and
and employees. TNB believes that all supplier/contractor relationships should • to protect people who report unacceptable conduct in good faith.
be based on principles of good governance such as integrity, accountability,
fairness and a zero-tolerance rule towards bribery and corruption. These Reporting Channels:
principles are enforced in the Procurement Code of Conduct, which is • Online Whistle Blowing Information System (WBIS) - wbis.tnb.com.my
constantly revised to reflect changes in regulations, reputational demands • Email to one (1) of the designated officers by using the Whistle Blowing
and business challenges. Complaint Form, available in Malay & English:
The Procurement & Supply Chain Policy and Procedures provides a set NAME DESIGNATION E-MAIL ADDRESS
of general policy and procedures as guidance in executing procurement
within TNB. The Policy and Procedures enables TNB to obtain the best value Kalivann Chief Integrity kalivann.integrity@tnb.com.my
in procurement, adopt leading business practice, advance TNB’s business Palanivelu Development Officer
priorities, add value to customers and uphold good corporate governance.
Hasbah binti Head, Integrity hasbahh.integrity@tnb.com.my
Hasbullah Development &
TNB’s Code of Ethics and Procurement Code of Conduct are available at their
Culture
respective sections of the Company’s website at www.tnb.com.my.
• Whistle Blowing toll free number: 1-800-888-862

CONFLICTS OF INTEREST
ANTI-BRIBERY POLICY
To foster ethical and independent decision-making, the Company requires
Directors with any direct or indirect interest in a proposal or transaction being
TNB aims to state its position on bribery and related matters and to
considered by the Board or its Committees to declare that interest and recuse
establish key pillars in its structure to protect the Company against any form
himself/herself from the deliberations. The affected Director will take no part
of bribery.
in the decision-making.
Bribery in all its forms related to TNB’s activities is prohibited. It is the

As initiated by Procurement & Supply Chain Division in collaboration with
responsibility of personnel at all levels to act with integrity. TNB holds a
Integrity Department to further strengthen our integrity and transparency in
‘No Gifts’ policy, although certain exceptions are allowed. Integrity Pledges
dealing with the Company’s procurement activities, at each Board Meeting,
must be signed by personnel on a regular basis, as well as a Conflict of
each Director shall sign an Integrity Pact, declaring his/her interest involving
Interest declaration. Business Associates acting on behalf of the Company
procurement/matters to be discussed at the Meeting, to prevent corruption,
shall be managed carefully. Reporting of misconduct by personnel or third
conflict of interest and to maintain confidentiality of information.
parties is expected, with protection provided for all disclosers acting in
good faith.
TNB is committed to enforcing its position, with the Integrity Department

taking on this role. The TCIMS will be assessed and updated on a regular
basis to ensure its effectiveness is maintained.

PRINCIPLE B:
A BOARD AUDIT COMMITTEE REPORT
BOARD AUDIT COMMITTEE The Board Audit Committee (BAC) was established to assist the Board to carry out their oversight and
fiduciary duties and responsibilities.
Chairman BAC’s objectives, authorities and functions are governed by the Terms of Reference (ToR) which
was last reviewed in November 2021. The ToR is accessible on the Company’s official website at
Dato' Merina binti Abu Tahir www.tnb.com.my.
(Appointed as Chairman w.e.f. 1 February 2022) MEMBERSHIP AND MEETINGS
Noraini binti Che Dan As of 31 December 2021, the BAC comprises five (5) members, all of whom are Independent Non-
Senior Independent Non-Executive Director Executive Directors. This composition is aligned with Paragraph 15.09 (1) (a) and (b) of the Bursa
(Demised on 26 August 2021) Malaysia Securities Berhad Main Market Listing Requirements (MMLR), which states that the Audit
Committee must be composed of not fewer than three (3) members and all the Audit Committee
members must be Non-Executive Directors, with a majority of them being Independent Directors.
Members
Noraini binti Che Dan had served as the Chairman of BAC up to 26 August 2021. Subsequent to her
Gopala Krishnan a/l K.Sundaram demise, the existing BAC members i.e. Gopala Krishnan a/l K.Sundaram and Ong Ai Lin have served
Independent Non-Executive Director as the Chairman of BAC. The BAC continues to fulfil the practice stipulated in the Malaysian Code of
Corporate Governance (MCCG) 2021, whereby the Chairman of BAC was not the Chairman of TNB
Ong Ai Lin Board during the year under review.
The governance practices are further strengthened as the BAC fulfils the requirements of Paragraph
Datuk Rawisandran a/l Narayanan 15.09 (1) (c) of MMLR, which requires that at least one (1) member of the committee must be a member
of the Malaysian Institute of Accountants (MIA). As of 31 December 2021, one (1) member of the BAC,
Ong Ai Lin, is a member of MIA.
Juniwati binti Rahmat Hussin

The ToR of BAC requires it to meet at least six (6) times a year. During FY2021, 13 BAC meetings were
Independent Non-Executive Director held. Attendance at all meetings met the requisite quorum as stipulated in the BAC ToR. The Company
(Appointed as Member w.e.f. 25 March 2021) Secretary who is the Secretary to the BAC and the Chief Internal Auditor (CIA) were in attendance
during the meetings. The President/Chief Executive Officer and other officers were invited to the
Datuk Lau Beng Wei meetings to deliberate on matters within their purview.
(Appointed as Member w.e.f. 1 December 2021) After each meeting, the BAC Chairman submits a report on matters deliberated to the Board of
Directors’ meeting for information and attention. Matters reserved for the Board’s approval are tabled
Dato’ Roslina binti Zainal at the TNB Board meetings. Action sheets are issued by the Company Secretary on the decisions made
Independent Non-Executive Director and actions required. These are circulated to management and relevant parties for their actions.
(Ceased as Member w.e.f. 25 March 2021)
KEY ROLES & RESPONSIBILITIES


GOVERNANCE
Pages 58 - 125
PRINCIPLE B:
MAIN ACTIVITIES OF BAC IN FY2021 vi. On a quarterly basis, BAC reviewed the effectiveness of GIA
through evaluation of its performance and competency, and
Based on the 13 meetings held in FY2021, BAC had carried out the following monitoring the sufficiency of resources, to ensure it has the
to effectively discharge its duties and responsibilities as set forth in the BAC required expertise and proficiency to discharge its duties.
ToR:
vii. GIA continued the use of Quality Assurance and Improvement
1. Internal Audit Programme (QAIP) to assess the quality of audit processes
against the Standards established in International Professional
i. Deliberated the adequacy and effectiveness of internal controls Practices Framework (IPPF) issued by Institute of Internal
based on the findings and outcome of the audits conducted Auditors. BAC took note of areas for enhancement identified
and reported by Group Internal Audit Department (GIA) during through internal assessment conducted by a designated quality
the year. The summary of critical findings was presented and assurance team for FY2020. In December 2021, BAC deliberated
deliberated in BAC meetings and where relevant, BAC requested the results of External Quality Assessment Review (in the form
Management to rectify the internal control system based on of self-assessment independent validation) conducted by an
recommendations provided by GIA. independent external assessor. The results of review indicated
GIA’s General Conformance to the IPPF Standards and Code of
ii. Reviewed TNB’s quarterly State of Internal Controls (SOIC) on the Ethics.
adequacy, effectiveness and reliability of internal control system
based on the overall risks/ areas covered by GIA and issues viii. Reviewed GIA’s organisational independence declaration for
reported across TNB and its subsidiaries, as well as the status of FY2020 to facilitate BAC in making relevant disclosures as required
corrective actions implemented by Management. in the MCCG pertaining to independence and objectivity of the
internal audit function. GIA discharged its duties objectively
iii. BAC took note of TNB’s Integrated Assurance Report for FY2020. and independently through the current reporting arrangement
The assurance report provides information on the organisation’s which allows GIA to report functionally to BAC and no conflict of
risk coverage and helps identify gaps and overlaps in risks interest situations were reported for FY2020.
reviewed by the various assurance providers in TNB namely GIA,
internal audit function at subsidiary, compliance management ix. BAC took note of GIA’s Charter which was reviewed as part of
functions at divisions, and health and safety function. an annual exercise. There were no changes made to the Internal
Audit Charter as the existing Charter is deemed adequate and
iv. Approved GIA’s FY2022 Annual Audit Plan and reviewed the consistent with the IPPF requirements.
methodology applied in preparing a risk-based audit plan to
ensure adequacy of audit scope and comprehensive coverage of x. Reviewed the revised BAC ToR before recommending to Board
the Company’s activities. for approval. The ToR was revised to ensure alignment with MCCG
and MMLR requirements, and the current operational practices.
For FY2022, ‘thematic auditing’ has been introduced, where the
audits identified were clustered into general categories based on xi. BAC reviewed and endorsed the proposed FY2022 Key
major concerns of BAC such as safety and health management, Performance Indicators for GIA which were derived based on
financial management, asset management, environmental four (4) Balanced Scorecard perspectives and in alignment with
management, etc. As a result, 132 audits were proposed to be Company’s strategic initiatives.
conducted in FY2022 comprising 70 planned audits, 59 follow-
up audits, two (2) quality assurance reviews and one (1) Long- xii. BAC took note of the various data analytics initiatives applied
Term Incentive Plan (LTIP) review. by GIA in performing the audits approved for FY2020 and
continuous auditing performed at critical/ high risk areas.
The BAC also took cognisance of the resource requirements
including staffing, competencies as well as budgetary
requirements for successful completion of the audit plan.
v. Approved GIA’s revised FY2021 Annual Audit Plan to ensure

pertinence in view of changes in business requirements,
emerging risks and travel restrictions due to COVID-19 pandemic.

PRINCIPLE B:
A BOARD AUDIT COMMITTEE REPORT
2. External Audit 4. Related Party Transactions
i. Reviewed the overall performance and effectiveness of In February 2021, BAC reviewed and recommended to the Board
the external auditor for the period from 1 January 2020 to to approve the related party/recurrent related party transactions
31 December 2020. entered into by TNB Group for the year ended 31 December 2020.
For this purpose, a survey was coordinated by GIA and 5. Annual Reporting
assessments on the effectiveness of the external auditor
were performed by members of BAC and Management. The BAC recommended for Board’s approval the reports to be
assessment focused on four (4) areas namely (i) quality of incorporated in the Integrated Annual Report 2020 namely (i) BAC
service, (ii) sufficiency of resources, (iii) communication and Report, (ii) Statement on Internal Audit Function, (iii) Statement of Risk
interaction, and (iv) independence, objectivity and professional Management and Internal Control, (iv) TNB Sustainability Statement,
scepticism. and (v) Corporate Governance Overview Statement and Corporate
Governance Report.
ii. Reviewed audit fees for quarterly review of the unaudited
consolidated results and annual statutory audit of TNB and its 6. Others
subsidiaries for Board’s approval.
i. Reviewed the proposal for granting and vesting of performance
iii. BAC assessed the independence and objectivity of the external shares as well as restricted shares under the LTIP for Board’s
auditor by reviewing non-audit services provided by the approval.
external auditor to TNB and the Group. The fees for non-audit
services carried out by the external auditor were within the ii. Reviewed the proposed guidance for establishment of ToR for
threshold set in TNB’s Implementation Guideline on Provision subsidiaries’ BAC/Board Risk Committee (BRC)/Board Audit and
of Services by External Auditors. Risk Committee (BARC).
iv. BAC exercised its rights, as stipulated in the ToR, to hold meetings iii. Took note of the proposal on advancing assurance integration
with the external auditor without the presence of Management, between GIA and internal audit functions of subsidiaries within
Executive Directors or Non-Independent Directors to enable the Company. Subsequently, framework for integrated assurance
open discussion with the BAC. This is also in line with the terms in TNB was presented for BAC’s approval. The main objectives
stipulated in MMLR issued by Bursa Malaysia Securities Berhad. of this effort include ensuring adequate coverage of risks,
minimising duplication of work amongst assurance providers,
In FY2021, two (2) meetings were held with the external auditor and strengthening, streamlining and standardising assurance
without the presence of Management and Executive Director activities within TNB.
to reinforce independence of the external audit function of the
Company. iv. Discussed on other key operational matters, as follows:
3. Financial Reporting • Summons/ compounds imposed on TNB by regulatory

authorities for period from 1 January 2021 to 30 June 2021.
BAC reviewed and endorsed the following financial matters before • Credit management matters and strategies, specifically on
recommending to Board for approval: Collection Strategy for Revenue Protection.
• Status of action plan on ownership of substation land.
i. Quarterly unaudited financial results of the Group and the draft
announcements with considerations on key developments
during the period, significant accounting matters, and other
review matters.
ii. Audited financial statement of the Group and of the Company

for the financial year ended 31 December 2020 and agreed that
the financial statements were prepared in accordance with the
relevant standards and regulatory requirements as to give a DATO’ MERINA BINTI ABU TAHIR
true and fair view of the Company’s financial performance. Chairman, Board Audit Committee

GOVERNANCE
Pages 58 - 125
PRINCIPLE B:
R BOARD RISK COMMITTEE REPORT
BOARD RISK COMMITTEE The Board Risk Committee (BRC) was established on 5 June 2013
by the Board of Directors (Board) to assist the Board to carry out its
Chairman
responsibilities. The Board, through the BRC, is responsible to oversee
Ong Ai Lin the effectiveness and adequacy of the Group’s risk management
Independent Non-Executive Director framework and to ensure that it forms part of the Group’s corporate
culture.
Members
ROLE OF COMMITTEE
Juniwati Rahmat Hussin

The main role of the BRC is to assist the Board in ensuring that the Group has in place a sound
Independent Non-Executive Director and robust enterprise risk management framework and that such framework has been effectively
implemented to enhance the Group’s ability to achieve its strategic objectives. This is in line with
Gopala Krishnan K.Sundaram the requirements stated in the Malaysian Code on Corporate Governance and Bursa Malaysia’s Main
Independent Non-Executive Director Market Listing Requirements.
Datuk Rawisandran a/l Narayanan KEY RESPONSIBILITIES

The BRC is guided by its Terms of Reference in carrying out these responsibilities:
Noraini binti Che Dan • Oversee the establishment and implementation of the risk management framework that is
Senior Independent Non-Executive Director embedded into the culture, processes and structures of the Group and is responsive to changes
(Demised on 26 August 2021) in the business environment.
• Approve the risk management framework and policies on behalf of the Board.
• Ensure that the principles and requirements of managing risk are consistently communicated
and adopted throughout the Group.
• Deliberate the Group’s strategic risks as well as key operating risks and risk issues through timely
and regular reports and ensures the implementation of appropriate systems to manage these
risks. It has the authority to direct special investigations, on behalf of the Board, into significant
risk management activities, as and when necessary.
• Approve on behalf of the Board, the risk appetite for the strategic risks and key operating risks
and ensures that actions are taken in a timely manner when risks are outside tolerable ranges.
• Review the adequacy of and to provide independent assurance to the Board of the effectiveness
of the risk management framework implemented in the Group on an annual basis.
HOW THE COMMITTEE OPERATES
The BRC meetings are pre-determined for the following financial year and is thereafter,
communicated to the members with the specific meeting agenda prior to each meeting.
In FY 2021, there were seven (7) BRC sittings and one (1) joint sitting with the Board Finance &
Investment Committee (FIC). Meetings were held virtually or in a hybrid manner, i.e., in-person and
virtually, in view of the COVID-19 pandemic. Prior to the meeting, BRC members were provided with
papers approved for tabling and updates of outstanding matters from previous meetings for the
members’ perusal.
The President/CEO, Chief Risk Officer and Company Secretary, who is also secretary to the BRC,
attended the meetings. Other attendees, internal or external, were invited to deliberate on matters
within their purview. Action sheets were issued by the Company Secretary on decisions made and
action required. These were circulated to Management for their further action. The BRC Chairman
KEY ROLES & RESPONSIBILITIES Reports were tabled at the Board meetings for notification and/or further deliberation on matters
within the purview of the Board.

PRINCIPLE B:
R BOARD RISK COMMITTEE REPORT
MAIN ACTIVITIES OF THE BOARD RISK COMMITTEE The RMD ensures the relevancy of the TNB risk governance documents for
effective implementation of the TNB Risk Management Framework. The
Principal activities performed by the BRC in FY2021 are summarised below: risk governance documents are the TNB Risk Management Framework, TNB
• Approved revisions to the TNB Risk Management Framework and risk Risk Management Policy and four guides, i.e., Risk Assessment Process, Risk
governance documents for group-wide implementation. Review, Risk Report and Key Risk Indicator. These risk governance documents
• Jointly reviewed the Statement of Risk Management and Internal are reviewed annually with the criteria for revision and levels of approving
Control with the Board Audit Committee. The statement summarised authority clearly stated to ensure the documents are robust, practical for
the risk management practices and internal controls implemented by implementation and reflective of the internal and external context.
Management. Assurances from the President/CEO and Chief Financial
Officer were given to the Board that the Group’s risk management and In addition, the RMD is the custodian of the TNB Business Continuity
internal control system is operating adequately and effectively, in all Management (BCM) Framework that is aligned with ISO 22301:2019 Security
material aspects. And Resilience – Business Continuity Management Systems. The framework
• Deliberated the Group’s strategic and key operational risks and mitigating provides a structured approach in managing business continuity in the
measures taken to manage the risks. Additional mitigations to strengthen Group that enables prompt, coordinated and effective response to a crisis
the management of existing and emerging risks were recommended for and maintain continuity of essential activities as well as protecting human
further action. life, assets, reputation and the environment. The framework is the focal
• Reviewed and deliberated Key Risk Indicators (KRIs) that were reported point of reference for business entities to formulate and implement relevant
quarterly through the TNB Risk Dashboard. Relevant business entities business continuity strategies tailored to respective business objectives and
reported the status of action taken to mitigate potential adverse impacts. critical functions.
• Reviewed reports on risk incidents and deliberated the adequacy and
effectiveness of preventive and corrective mitigation. Risk governance
• Jointly approved with the FIC, the TNB Investment Risk Methodology,
including risk parameters and thresholds that are reflective of the Board’s The TNB Risk Management Structure described in the TNB Risk Management
risk appetite, for a structured approach in assessing risks related to Framework document governs the risk management implementation in
potential investments. the Group. The oversight role is executed by the TNB Board of Directors and
BRC, whilst cross-functional risk management matters are deliberated at the
RISK MANAGEMENT Group Risk Management Working Committee (GRMWC) and Subsidiaries Risk
Management Working Committee (SRMWC). Both working committees meet
The BRC is assisted by the Chief Risk Officer and the Risk Management quarterly to ensure that the TNB Risk Management Framework is effectively
Department (RMD) in discharging its duties and responsibilities. implemented in business entities and sufficient resources are committed for
continuous improvement and integration of risk management in business
Risk management and BCM frameworks processes.
Risk management in TNB is governed by the TNB Risk Management In addition, the RMD carries out risk governance activities, which are risk
Framework that provides a structured and consistent approach to risk maturity assessment, desktop risk assessment and risk reviews, that are
management across the Group. The purpose of risk management is to create planned on a 3-year cycle for comprehensive coverage of all business
and protect value and this is exemplified through each element in the TNB entities in the Group. In FY2021, the risk maturity of five (5) business
Risk Management Framework. The framework is developed in alignment entities were assessed and 11 desktop risk assessments were conducted
with ISO 31000:2018 Risk Management – Guidelines. by the RMD. Recommendations for improvement were agreed with the
respective business entity to enhance the implementation and integration
of risk management in day-to-day operations. Reviews of business entity’s
risk profile are facilitated by the RMD to ensure alignment to the TNB Risk
Management Framework.

GOVERNANCE
Pages 58 - 125
PRINCIPLE B:
BCM governance Training & engagement
Oversight of the implementation of the TNB BCM Framework lies with the Risk management trainings at fundamental and intermediate levels are
TNB Corporate BCM Steering Committee, which is chaired by the TNB Crisis conducted by the RMD and administered by the TNB Integrated Learning
Commander appointed by President/CEO. This committee ensures the TNB Solution Sdn. Bhd. (ILSAS) to increase the risk competency of employees
BCM Framework and its implementation are aligned with strategic objectives across the Group. In FY2021, 73 executives completed the risk management
and integrated into business processes with adequate resources committed fundamentals training and 50 executives for the intermediate level.
to strengthen preparedness and enhance capabilities. Additional training and awareness sessions tailored to the needs of TNB
business entities were conducted by the RMD and participated by 326
Preparedness of the corporate crisis command structure is tested through employees. Furthermore, an inaugural risk management training was
drills. In FY2021, the RMD as the corporate BCM secretariat, carried out marketed by ILSAS to external parties and 14 participants from various
two (2) communication drills, one (1) functional drill and one (1) full-scale industries were trained by subject matter experts in RMD.
drill with involvement from President/CEO and C-suites and support from
BCM practitioners across the Group. The functional and full-scale drills In FY2021, the RMD organised 30-minute webinars with topics ranging from
were conducted virtually, in view of the pandemic. In addition, drills to test principles and application of risk management and BCM and lessons learned
preparedness of business entities in crisis scenarios such as floods and dam from past risk events and crisis. 24 webinars were successfully conducted and
safety were carried out according to plan and improvements identified from attended by approximately 1,700 executives, including a session with invited
post-mortems were implemented to close gaps. Chief Risk Officers from TM and Malaysian Resources Corporation Berhad
(MRCB), sharing their risk and BCM experiences with TNB practitioners.
Monitoring & reporting
BCM onboarding sessions were conducted for newly appointed primary
Risks that are identified or reviewed by business entities are registered or alternate Corporate Crisis Management Team members, as and when
and approved by relevant risk owners in the online and real-time TNB Risk necessary, to enhance promptness and effectiveness of response in the event
Information System (TRIS). The RMD maintains the TRIS, which functions as a of a group-wide (national) crisis. Additionally, training sessions on the roles
platform for monitoring and reporting. The risk registers in TRIS is accessible and responsibilities of the primary and alternate members of the Corporate
for viewing by all employees and additional access rights are assigned to Crisis Response Team are held annually. In FY2021, a spokesperson training
relevant parties. These parties, such as risk owners and risk managers, are was provided to the primary Corporate Crisis Management Team members
responsible to ensure the quality and integrity of the risk information in TRIS. to enhance capabilities in responding to stakeholders during crisis.
In FY2021, business entities across the Group submitted two half-year risk The RMD is the secretariat of the Risk Manager and BCM Circles, which are
reports to the RMD, reporting its risk profile, key mitigations, KRIs, lessons communities of risk and BCM practitioners from across the Group. These
learned from risk events and emerging risks unique to its business. The RMD Circles collaborate at least quarterly to spearhead risk and BCM initiatives
thereafter collates and reports the TNB Half-Year Risk Reports to management as well as share knowledge and feedback on effective practices and lessons
for a holistic perspective of the Group’s strategic, operational and emerging learnt, drawing from their experiences implementing risk management and
risks. BCM at respective business entities.
KRIs that provide early warning signals of increasing risk exposures and CONCLUSION
potential risk events are identified, monitored and reported by business
entities. KRIs are developed in alignment with risk appetite of the BRC and The BRC continues to diligently exercise its risk oversight responsibilities by
management and are monitored and reported quarterly to the BRC, GRMWC ensuring that risk management is an integral part of strategic planning and
and SRMWC. KRIs are reviewed annually to ensure relevancy to current decision making for the achievement of the Group’s strategic outcomes and
business strategies and risk exposures in the internal and external context. long-term objectives.
This statement was made in accordance with the resolution of the Board of
Directors dated 24 February 2022.

PRINCIPLE B:
STATEMENT ON INTERNAL AUDIT FUNCTION
TNB’s internal audit function, which is under the purview of Group Internal • Operation and Maintenance
Audit Department (GIA), is established by the Board to provide independent, • Strategic Asset Planning
objective assurance and consulting services designed to add value and • Fuel Management
improve TNB’s operations. • Safety Management
• Project Planning and Management
GIA assists TNB to accomplish its business objectives by bringing a • Procurement, Contract and Vendor Performance Management
systematic, disciplined approach to evaluate and improve the effectiveness • Material Management
of governance, risk management and control processes. • Financial Management
• Human Resource Management
GIA reports directly to the Board Audit Committee (BAC) to preserve its • Integrated Healthcare Management System
independence and objectivity, and administratively to President/CEO to
enable the required stature to fulfil its responsibilities. Based on the audits carried out in FY2021, amongst the key risks covered
are inability to deliver company initiatives and targets, fraud and bribery,
GIA is currently headed by Lizah Abd Wahab who is the Chief Internal Auditor accident leading to fatality/injury and property damage, non-compliance
(CIA). She joined GIA in 2004 and was appointed as the CIA on 1 April 2021. with related regulatory requirements and company policies, critical
She holds a Bachelor of Accounting and Finance degree from Manchester equipment failure causing major blackout, fuel supply disruption, poor
Metropolitan University, United Kingdom and a Master of Business performance of appointed contractors/ suppliers, leakages of confidential
Administration from Universiti Tenaga Nasional and Graduate Certificate data, cyber security threat, and revenue leakages.
in Management from the University of Melbourne. Additionally, she is a
Certified Internal Auditor and obtained a Certification of Risk Management During FY2021, GIA issued a total of 143 reports arising from 70 planned
Assurance from Institute of Internal Auditors (IIA). She brings over 15 years audits, four (4) ad-hoc audits, ten (10) surprise audits, and 59 follow-up
of experience in internal auditing at various areas or functions within TNB. audits. Internal audit reports with significant improvement opportunities
were presented to the BAC for deliberation whilst others were reported in
PRACTICES AND FRAMEWORK the quarterly reporting to BAC.
GIA endeavours to enhance and protect organisational value by providing Subsequently, GIA continuously monitors the implementation of corrective
risk-based and objective assurance, advice and insight. actions and the results are communicated to BAC on a quarterly basis and
to management via GIA Online Corrective Actions Monitoring Dashboard
GIA is guided by the Internal Control Framework of Committee of Sponsoring (GOCAMD) and Corrective Action League Table (CALT) status reporting on a
Organisation of the Treadway Commission (COSO) and Control Objectives monthly and quarterly basis respectively.
for Information and Related Technology (COBIT) in assessing and reporting
the adequacy and effectiveness of the design and implementation of the In view of the COVID-19 pandemic, GIA has adopted flexible audit approaches
organisation’s overall system of internal control, risk management and throughout the year whereby, out of the 70 planned audits, 38 were remote
governance. audits and 32 were hybrid audits (mix of on-site and virtual auditing). As for
remote audits, meetings and interviews were conducted via secure video
Additionally, to effectively manage its functions and perform the audit conferencing platforms, documents were shared via company email and
engagements, GIA adopts the standards and principles outlined in the cloud, and GIA has enhanced the utilisation of data analytics. GIA adjusted to
International Professional Practices Framework (IPPF) issued by IIA, which the flexible audit approaches to ensure completion of the approved FY2021
comprises Core Principles for the Professional Practice of Internal Auditing, Annual Audit Plan.
International Standards for the Professional Practice of Internal Auditing,
Definition of Internal Auditing and Code of Ethics. In providing value to the Company, the internal auditors’ key performance
indicator included value creation in terms of cost saving/recovery or business
SCOPE AND COVERAGE process improvement.
GIA’s responsibilities and scope of internal audit activities are outlined in the In addition to the audit engagements performed, GIA was also actively
Internal Audit Charter which was approved by the BAC. The Internal Audit involved in strengthening the internal control system in the Company
Charter is reviewed annually to ensure relevance and alignment with the through sharing of best practices and knowledge on internal auditing, risk
requirements of IPPF. management and internal controls.
GIA continues to formulate the annual audit plan using a risk-based approach, RESOURCES
taking into consideration TNB’s risk profile, strategic objectives, regulatory
requirements as well as inputs from BAC and senior management. The internal audit activities in FY2021 were performed in-house by a group
of 63 internal auditors with diverse disciplines, as summarised below:
Amongst the key areas reviewed during Financial Year (FY) 2021 include:
• Corporate Governance Compliance Discipline No. of Auditors Percentage (%)
• Strategic and Sustainability Initiatives
• Business Continuity Management Accounting, Finance and Business 31 49
• Whistleblowing and Anti-Bribery Management Engineering 24 38
• Information Technology (IT) and Operational Technology (OT) Security Quantity Surveying 2 3
and Governance
• Social Media Management System and Data Analyst/
6 10
• Management of Legal Cases Information Technology
• Billing and Tariff Management Total 63 100

GOVERNANCE
Pages 58 - 125
PRINCIPLE B:
The total cost incurred in managing the internal audit function for FY2021 As of 31 December 2021, GIA incurred a total cost of RM304,627 on trainings
is RM13.8 million, comprising mainly staff costs and audit activities related and conferences. GIA staff have spent an average of 16.5 days per person
spending, as follows: on internal and external trainings/conferences to enhance their skills,
knowledge and competencies.
Category RM (Million) % of Total Cost
SUMMARY OF GIA’S ACTIVITIES IN FY2021
Staff costs 11.75 85
Operating costs 2.05 15 The following are the key activities undertaken by GIA in FY2021:
Total 13.80 100
• Provided independent and objective assurance on the adequacy of
PROFESSIONAL QUALIFICATION AND CONTINUOUS DEVELOPMENT internal controls implemented to mitigate risk exposures. The reports
on audits performed which consist of observations, improvement
GIA continuously encourages auditors to equip themselves with sufficient opportunities, management responses, deadline and person in
knowledge and skills to ensure that high level of proficiency and due charge for implementation of corrective actions have been issued to
professional care are demonstrated in fulfilling auditors’ responsibilities. respective auditees, senior management and BAC.
• Presented the TNB’s State of Internal Controls to BAC on a quarterly
As at 31 December 2021, there are 26 GIA staff with various professional basis and coverage includes the following:
certifications as shown below: • Audit completion status against the approved audits
• Risks reviewed during audits
NO. OF • Results of internal control assessment covering areas with
CERTIFICATIONS critical findings
• Status of corrective actions including aging for pending actions
CERTIFICATION OBTAINED
• Performed follow-up audits on corrective actions agreed by
Certified Internal Auditor (CIA) 13 management to assess if the actions have been implemented
Certified Information System Auditor (CISA) 4 adequately and timely.
• Coordinated and attended meetings with Risk Management
Certification in Risk Management Assurance (CRMA) 5
Department to deliberate on emerging risks and relevant mitigation
Association of Chartered Certified Accountants plans. Coordination meetings were also conducted with the external
4
(ACCA) auditor to discuss on audit scope/issues to ensure adequate coverage
Chartered Institute of Management Accountants or minimise duplication of effort.
1 • Maintained a Quality Assurance and Improvement Program (QAIP)
(CIMA)
covering internal and external assessments as required in the IPPF
Chartered Accountant (Malaysia) 3 Standards. GIA developed areas for enhancement for continuous
Professional Engineer 2 improvement of the internal audit activity based on the internal
Professional Technologist 6 assessment carried out by a dedicated quality assurance team.
• In accordance with IPPF Standard 1312 which states that external
CISCO Certified Network Associate (CCNA) 3 assessment must be conducted at least once every five (5) years by a
Certified COBIT 3 qualified, independent assessor, GIA had appointed an independent
external assessor for an External Quality Assessment Review [in the
Total 44* form of Self-Assessment Independent Validation (SAIV)]. GIA obtained
Generally Conform to the IPPF Standards and Code of Ethics based on
Note: the review.
* One (1) staff may have more than 1 certification
• Organised GIA’s Webinar Series to provide awareness on internal
controls. Two (2) webinar sessions were conducted in FY2021 relating
In addition to the above, 30% (19 auditors) are in the midst of pursuing their
professional certifications at various levels. to invoicing, and operation and maintenance.
• Showed continuous commitment towards TNB’s core values through
GIA commits to ensure that the level of auditors’ skills, knowledge and the contribution to the needful nation through GIA’s Corporate Social
competencies are maintained as stipulated in the Internal Audit Charter. Responsibility (CSR) program, officewide video and essay competition,
These are accomplished through the following: and culture gamification session for GIA staff.
• Involvement of auditors in conferences and trainings in the area of

auditing, strategic initiatives, leadership and communication, business
acumen, environmental, social and governance (ESG), health, safety
and environment (HSE), data analytics, and personal development.
• Conducted sharing and benchmarking sessions with peer
Government-Linked Companies (GLCs) e.g. Petronas and Malaysia
Airlines to keep abreast with industry best practices.
• Conducted in-house briefing session or knowledge sharing on IIA’s
Code of Ethics and IPPF to keep auditors updated on the required
practices and rules of conduct.
• Promote continuous learning through subscription to online training
modules in Gartner website focusing on audit processes, accounting LIZAH BINTI ABD WAHAB DATO’ MERINA BINTI ABU TAHIR
issues, fraud and internal controls practices. Chief Internal Auditor Chairman, Board Audit Committee

PRINCIPLE C: INTEGRITY IN CORPORATE REPORTING

AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS
BOARD L E A D E R S HIP OF S TA KEHOLDER ENGAGEMENT
We have a well-established programme of engaging with a wide range of stakeholders who are key to the successful delivery of our strategy. These include
shareholders, government, regulators, environmental bodies and trade unions. We know that actions taken today will shape the longer-term performance of
TNB and determine our impact on the wider world, including our contribution to action on climate change. Such engagement broadens our understanding
of the issues we take into account, informs our decision-making and helps to protect the long-term interests of stakeholders.
TNB’s Stakeholder Engagement
We are dedicated to building strong relationships with key stakeholder groups. Through meaningful interactions with our stakeholders, we can leverage their
insights and address any pressing emerging interests or concerns, keeping us focused on key sustainability matters. Ultimately, this will translate into the
strategic management of sustainability in delivering long-term value for our stakeholders.
CUSTOMERS
Our customers comprise residential and non-residential
GOVERNMENT
Our segments. The non-residential or business customers
The Malaysian Federal and State Governments,
Stakeholder come from the commercial, industrial customer
parliamentarians, municipal councils and regulators.
segments, including Government, Large Businesses,
Small & Medium Enterprises (SMEs) and Government.
Customer service outlets Meetings and briefings

Call centre Site visits
myTNB mobile application and online portal Round table sessions
Customer surveys One-to-one engagements
Engagement
Plaftorm Social media Outreach programmes
Roadshows Summits/conferences
Campaigns
1. New technologies (e.g. smart meter offerings, smart 1. Regulatory and operational compliance
solutions, solar solutions, platform solutions) 2. Changes in the regulatory framework and electricity
2. Customer experience and service delivery supply industry
3. Disaster and cyber security management
Areas of 4. Nation-building initiatives, including community and
Interest or capability development
5. Security and reliability of electricity
Concern 6. Affordable tariffs
7. Environmental management
8. Giving back to Nation and Rakyat
9. Local Bumiputera vendor development
• Sustainable Infrastructure and Ecosystems, page 144 • Creating Value Through Strong Governance,
• Social and Relationship Capital, page 54 pages 58-125
• Customer Centricity, page 147 • Manufactured Capital, page 46
• Our Support in Facing COVID-19, page 141 • Social and Relationship Capital, page 54
• Our Support in Facing COVID-19, page 141
Our • Natural Capital, page 48
• How We Are Governed, page 131
Response • Sustainable Infrastructure and Ecosystems, page 144
• Minimising Environmental Impacts, page 162
• Contributing to Community Development, page 173

GOVERNANCE
Pages 58 - 125

The Board is responsible for engagement with stakeholders and ensures that appropriate Board time is given to discussing their concerns and that sufficient resources
are available for the Group to effectively engage. Internally, divisions across the organisation maintain engagement with key stakeholders, ensuring effective
communications channels and mitigation of any concerns. Members of executive management, including Executive Director, provide regular updates to the Board,
to ensure awareness and inform discussions. The Board takes these opportunities to assess and challenge management’s approach relating to engagement.
Legend: Daily All the time Ongoing As needed Quarterly Annually Biannually
INVESTORS EMPLOYEES
Institutional and retail investors, analysts and potential investors Our 34,938 full-time employees throughout TNB Group.
with interest. Only full-time employees, excluding contractors.
Financial results announcements One-to-one engagements (online-based)

Integrated Annual Report and Sustainability Report Townhalls
Investor relations conferences and roadshows Online portal (intranet), newsletters, emails and TV TNB
One-to-one and group engagements Employee surveys
Annual General Meeting (AGM) Social media
Corporate Social Responsibility (CSR) events
Turun padang, brown-bag sessions and other outreach
programmes
Webinars
1. International investments plans 1. Health and safety of employees

2. ESG topics and KPIs 2. Employee well-being and workplace culture
3. Financial sustainability and returns 3. Talent and skills development
4. Other non-regulated business plans 4. Employee satisfaction
5. Impact of energy crisis to TNB with regards to increase in price 5. Employee engagement on TNB’s strategies, policies, and
and availability of supply directions
6. Updates on Regulatory Period 3 (RP3), regulated business and 6. TNB’s strategies and initiatives
MESI 2.0
7. TNB GenCo performance
• Strategic Review, pages 36-43 • Our Support in Facing COVID-19, page 141
• Financial Capital, page 44 • Human Capital, page 52
• Manufactured Capital, page 46 • Social and Relationship Capital, page 54
• Our Support in Facing COVID-19, page 141 • Employment Management and Growth, page 165
• Natural Capital, page 48 • Emphasis on Health, Safety, and Well-being, page 170
• Human Capital, page 52 • Contributing to Community Development, page 173
• Social and Relationship Capital, page 54
• Sustainable Infrastructure and Ecosystems, page 144
• Customer Centricity, page 147
• Climate Change, page 152
• Employment Management and Growth, page 165
• Emphasis on Health, Safety, and Well-being, page 170


TNB’s Stakeholder Engagement
TRADE UNIONS/ASSOCIATIONS VENDORS

Our
3 registered unions and 2 workers associations that 3,238 contractors and suppliers.
Stakeholder
cover all categories of employees.
Joint Consultative Council (JCC) Engagement sessions with key suppliers

Negotiations for Collective Agreements (CA) Training and workshops
Engagement Discussion on issues TNB Vendor Day
Plaftorm Syndication & engagements TNB Vendor Portal
Outreach programmes
1. Mitigation & Resolution of issues 1. Industry support for business growth through
2. Employee well-being technology and solutions
3. Employee engagement regarding strategies and 2. Training and capability development
Areas of
initiatives 3. Potential health and safety impacts
Interest or
4. Impact of new policies or policy revision to 4. Procurement processes
Concern
employees 5. Fraud and bribery awareness
5. CA Compliance 6. New business opportunities and future developments
• How TNB is Addressing A Global Pandemic, • Social and Relationship Capital, page 54
page 137 • Human Capital, page 52
• Human Capital, page 52 • How TNB is Addressing a Global Pandemic, page 137
Our • Employment Management and Relations, page 153 • Sustainable Infrastructure and Ecosystems, page 144
Response • Prioritising Health, Safety and Personal Well-Being,
page 170
Enhance the understanding of Pursue two-way

Our Stakeholder Align the vision with strategies
major issues when engaging communication
Engagement based on mutual trust with
with government, investors, with customers and
Approach: employees and trade unions
vendors and NGOs communities

GOVERNANCE
Pages 58 - 125

NON-GOVERNMENTAL ORGANISATIONS (NGOS) AND

INTERNATIONAL ASSOCIATIONS
COMMUNITIES Consumer associations, think thank groups, environmental
Local communities in or near areas where we operate, including groups, chamber of commerce and international associations, for
those affected by our operations. example the Heads of ASEAN Power Utilities/Authorities (HAPUA)
and Association of the Electricity Supply Industry of East Asia and
Western Pacific (AESIEAP)
Outreach programmes One-to-one engagements

CSR events Outreach programmes
Townhalls Seminars and knowledge sharing sessions
Dialogue sessions Collaboration sessions
Sporting events Social media
Meetings
1. Potential public facilities and basic infrastructure 1. Affordable tariffs

2. Full compliance with the legal and regulatory requirements 2. Innovation in technology and RE
3. Coordination of drill, ERP, crisis 3. Quality of service
4. Energy literacy 4. Supply reliability
5. Accessible and reliable supply of electricity 5. Current and planned ESG efforts
6. Efficiency of services 6. Energy literacy
7. Environment & Occupational safety/health
8. Full compliance with the legal and regulatory requirements
• Social and Relationship Capital, page 54 • Achieving Our Strategic Ambitions, pages 38-45
• Achieving Our Strategic Ambitions, pages 38-45 • Intellectual Capital, page 50
• How TNB is Addressing a Global Pandemic, page 137 • Natural Capital, page 48
• Natural Capital, page 48 • Social and Relationship Capital, page 54
• Minimising Environmental Impacts, page 147 • Human Capital, page 52
• Community Investment and Promoting Education, page 162 • Sustainable Infrastructure and Ecosystems, page 144
• How TNB is Addressing a Global Pandemic, page 137
Legend: Daily All the time Ongoing As needed Quarterly Annually Biannually


ANNUAL GENERAL MEETING
We value and facilitate a direct, two-way dialogue with the shareholders and A total of 1,400 shareholders and proxies representing 3,474,831,414 ordinary
investors. It is our top priority to provide relevant information to shareholders, shares participated online in TNB Fully Virtual 31st AGM as per the Attendance
listen to and understand their perspectives and respond to their feedback. Record issued by TNB Share Registrar. All Directors attended the AGM, including
the Chairmen of respective Board Committees. The Engagement Partner of
Our AGM plays an important role in providing the shareholders with an PwC was also in attendance at the AGM to answer shareholders’ questions on
opportunity to communicate directly with the Chairman and President/CEO the conduct of the audit, the preparation and content of the audit report, the
about the business, governance, financial performance and prospects. It also accounting policies adopted by the Company and the independence of auditors
provides an opportunity for shareholders to raise questions for the Board, Top in the audit process.
Management and the External Auditors on the management and performance
of the Company. Shareholders were provided with similar opportunities online as they would
have had attending the AGM in person. They were able to view presentation on
The Board ensures that shareholders are given sufficient notice and time to the Company’s financial and technical/ operational highlights by the President/
consider the resolutions that will be discussed and decided at the AGM. The CEO, as well as vote and ask questions during the meeting. During the Meeting,
AGM Notice includes explanatory notes that contain further information on the Chairman encouraged the shareholders to post questions to the Board and
the proposed resolutions. It has been the Company’s practice since 2017 as per Management on the proposed resolutions tabled at the AGM. All questions
the MCCG, to issue out the Notice of AGM to the shareholders at least 28 days submitted during the meeting were answered by the President/CEO/Chief
prior to the meeting. Financial Officer/Company Secretary accordingly during the meeting.
The COVID-19 pandemic has had a profound impact to our lives and the safety
of our shareholders, stakeholders, employees and broader community are The 31st AGM was conducted online via BoardRoom’s LUMI AGM. Shareholders/
key considerations for the Board. Accordingly, TNB hosted its 2nd Virtual AGM, proxies were able to view the live webcast of the AGM proceedings, post
the 31st AGM on 10 May 2021 via Remote Participation and Voting (RPV) at questions to the Board/Management and submit their votes in real-time whilst
Dewan Seminar, Kompleks Balai Islam An-Nur, Ibu Pejabat Tenaga Nasional the meeting was in progress. The procedures for RPV facilities were explained in
Berhad, No. 129, Jalan Bangsar, 59200 Kuala Lumpur, Malaysia, the Broadcast the Administrative Details of 31st AGM issued to the shareholders on 9 April 2021.
Venue. Holding a virtual AGM allows our shareholders with the opportunity to
participate in the AGM regardless of their geographical differences. All resolutions of 31st AGM were tabled and approved by the shareholders. All
resolutions were voted by poll and the results were validated by Boardroom
A dedicated link was created in our website within a stipulated timeframe so Corporate Services Sdn. Bhd., the independent scrutineer appointed by the
as to provide the shareholders with all information they needed to attend the Company. The outcomes of poll voting were announced to the market and
meeting, including our virtual AGM online guide on how to use the online posted on the Company’s website on the same day of the AGM.
facility.
The minutes of meeting was made available on TNB’s website at www.tnb.com.my
In line with the Group’s commitment in promoting sustainability as well as no later than 30 business days after the AGM.
to achieve greater cost efficiencies, TNB encouraged its shareholders to go
paperless and to access the digital copy of TNB’s Integrated Annual Report
2021 by downloading it from the Company’s website. Aside from that, TNB
issued out postcards with QR code to the shareholders, consisting the Notice
of 31st AGM, Administrative Details of the 31st AGM, Integrated Annual Report
2020 and Proxy Form to the shareholders, which were also available at the
Company’s website.

GOVERNANCE
Pages 58 - 125

FINANCIAL CALENDAR INVESTOR ENGAGEMENT EFFORTS FOCUSED ON BUILDING CONFIDENCE

AND MAINTAINING TRANSPARENT AND STRONG RELATIONSHIP WITH THE
Announcements of Consolidated Results INVESTMENT COMMUNITY
The Board recognises the importance of maintaining a purposeful relationship

Unaudited consolidated results for the first (1st)
27 May 2021 through effective engagements with shareholders. The Investor Relations (IR) team
quarter ended 31 March 2021
which represents the Senior Management maintains high standards of corporate
disclosures and transparency to the investment community. The IR team clearly
Unaudited consolidated results for the second communicates and disseminates the Company’s strategic and financial updates
26 August 2021
(2nd) quarter ended 30 June 2021 to the investment community. We strive to build confidence and purposeful
relationship through timely and transparent communication via various channels:
Unaudited consolidated results for the third (3rd)
25 November 2021
quarter ended 30 September 2021 • Quarterly and Full Year Financial Results Announcements
• Engagement sessions with the investment community through
Unaudited consolidated results for the fourth One-on-One/Group Meetings and investor conferences
24 February 2022 • AGMs
(4th) quarter ended 31 December 2021
• IR section in TNB’s website
• Bursa filings & Press Releases
Dividends
• Annual Integrated & Sustainability reports
Interim Single-Tier Dividend of 22.0 sen per ordinary share for the Financial
Consistent and meaningful communication with existing as well as potential
Year ended 31 December 2021
investors through various platforms keeps the investment community abreast of
our strategic developments, financial performance and other areas of interests.
30 September 2021 Entitlement Date In addition, the IR team regularly communicates on shareholders’ feedbacks and
other areas of interest to the Senior Management. This encourages two-way
information flow that is essential and mutually beneficial to both parties.
15 October 2021 Payment Date Our investor relations’ section on TNB’s corporate website at www.tnb.com.my
offers investment community a dedicated platform for accessing corporate
financial information as well as investor presentation. Any queries or concerns
Final Single-Tier Dividend of 18.0 sen per ordinary share for the Financial
regarding the Group can be directed to the Investor Relations team, whose contact
details are available on the website.
31 March 2022 Entitlement Date MEANINGFUL ENGAGEMENTS DESPITE THE PANDEMIC
As working from home (WFH) became a norm in spite of the pandemic, the IR
team continues to meaningfully engaged with the investment community
15 April 2022 Payment Date
through available online platforms. During the year, the number of engagements
with analysts and investors was 612 as compared to 586 in 2020 which includes
Annual General Meetings engagements through a planned investor relations programme i.e. investor
conferences and corporate days, engagement sessions with the investment
Notice of Fully Virtual 31st Annual General community through one-on-one/group meetings, analyst briefing for financial
Meeting and Issuance of Integrated Annual results as well as engagement through other communication platforms.
9 April 2021
Report and Audited Financial Statements for
the Financial Year ended 31 December 2020
10 May 2021 Fully Virtual 31st Annual General Meeting
Notice of Virtual 32nd Annual General Meeting

and Issuance of Integrated Annual Report and
29 April 2022
Audited Financial Statements for the Financial
2 June 2022 Virtual 32nd Annual General Meeting


IR CALENDAR OF EVENTS FOR FY2021
Event
CGS-CIMB 13th Annual Malaysia Virtual Analyst Briefing 1QFY2021 Quarterly

6 January 2021 28 May 2021
Corporate Day Results Announcement
7 January 2021 12th Credit Suisse ASEAN Conference 16 June 2021 UBS OneASEAN Virtual Conference
CIMB Premier Roundtable Engagement

13 January 2021 22 June 2021 Affin Hwang RE Conference
Series (PRES)
Analyst Briefing 4QFY2020 Quarterly

26 Febuary 2021 23 June 2021 HSBC Asia Credit Conference
Results Announcement
29 March 2021 JP Morgan Asean Renewable Day 8 July 2021 Maybank Invest ASEAN
24th Credit Suisse Asian Investment Analyst Briefing 2QFY2021 Quarterly

30 March 2021 26 August 2021
Conference Results Announcement
Hong Leong Bursa Stratum on Renewable Nomura Virtual Malaysia Corporate Day
6 April 2021 21 October 2021
Energy 2021
22 April 2021 MUFG Malaysia Day 27 October 2021 UBS ESG Corporate Day 2021
Analyst Briefing 3QFY2021 Quarterly

28 April 2021 Maybank - Bursa, ESG In Investing 26 November 2021
Results Announcement
10 May 2021 31st Annual General Meeting
INVESTMENT COMMUNITY’S FEEDBACK
Based on IR’s engagement sessions with the investment community, the key areas of interest includes:
• Impact of COVID-19 and MCO on energy consumption in Malaysia

• Business strategy and performance
• Environmental, Social and Governance (ESG) and sustainability pathway
• Commitment to achieve net zero by 2050
• Renewable Energy growth opportunities
• Phasing out coal capacity roadmap
• Regulatory development – RP3 progress
• Development on Internal Reorganisation
• Earnings and dividend prospects
• Electric Vehicle space ventures
BUILDING LONG-TERM SHAREHOLDER VALUE
In 2021, TNB Board of Directors has approved a final single tier dividend of 18.0 sen per share, raising the single tier dividend total to 40.0 sen per share. This
translates to a dividend payout ratio of 52.8% from the Group’s Adjusted PATAMI.

GOVERNANCE
Pages 58 - 125

ANALYST COVERAGE
As one of the largest companies by market capitalisation on Bursa Malaysia, we have a wide analyst coverage totaling of 21 sell-side research analysts covering the
stock of which 38% being the coverage from foreign research houses. We maintain a focused relationship with all our analysts for fair demonstration of the company
to the market generally.
Affin Hwang
AmInvestment CGS-CIMB
Investment Bank of America Citi Research CLSA
Bank Securities
Bank
Hong Leong KAF-Seagroatt

RESEARCH ANALYSTS/
Credit Suisse Investment J.P. Morgan & Campbell
RESEARCH HOUSES
Bank Securities
Kenanga Macquarie Maybank MIDF Amanah

Morgan Stanley
Investment Capital Investment Investment Nomura
Research
Bank Securities Bank Bank
Public
UBS Global UOB KayHian
Investment RHB TA Securities BofA Securities
Research Securities
Bank
SHARE PRICE PERFORMANCE
TNB SHARE PRICE, FBM KLCI INDEX AND VOLUME TRADED IN FY2021
Share Price (RM) KLCI Index

9 Sept ’21
15 Mar ’21
Announcement made to Bursa on
11.5 Announcement made to Bursa on final & 1,700.0
FY2021 interim dividend payment
special dividend payment FY2020
Closing Share Price: RM10.26
26 Feb ’21 Closing Share Price: RM10.66 1,650.0
AB 4QFY’20
11.0
Closing Share Price: 1,600.0
RM10.10
1,550.0
10.5
1,500.0
10.0 1,450.0
1,400.0
9.5
1,350.0
26 Aug ’21
28 May ’21 AB 2QFY’21 26 Nov ’21 1,300.0
9.0 AB 1QFY’21 Closing Share AB 3QFY’21
Closing Share Price: Price: RM10.30 Closing Share 1,250.0
RM9.99 Price: RM9.38
8.5 1,200.0
21
21
21
21
21
21
21
21
1
r2
l2
t2
c2
n
ar
ay
v
Ju
Ap
Oc
De
No
Ja
Ju
Au
Fe
Se
M
Note: AB = Analyst Briefing Results Announcement KLCI TNB Share Price


Volume (million)
15.0
10.0
5.0
0.0
Jan 21
Feb 21
Mar 21
Apr 21
May 21
Jun 21
Jul 21
Aug 21
Sep 21
Oct 21
Nov 21
Dec 21
Volume
SHAREHOLDER INFORMATION
As at 31 December 2021, Khazanah Nasional Berhad remained as our largest shareholder, with 25.6% of shareholding. Other Government related agencies
cumulatively hold 43.7% with Permodalan Nasional Berhad at 18.4%, Employees Provident Fund at 16.2%, Kumpulan Wang Persaraan (Diperbadankan) at 7.4%
while others at 1.7%. The balance of 30.7% 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 at 50.5%, followed by our shareholders from Asia
(excluding Malaysia) and Europe, which accounted for 35.4% and 14.0% of the shares respectively.
Please refer to page 14 for more information.
RELATIONSHIP WITH EXTERNAL AUDITORS
The Board maintains a transparent and professional relationship with the The External Auditors can also be engaged to perform non-audit services
External Auditors, with the BAC responsible for recommending the appointment provided such services do not impair either in fact or appearance, the auditors’
or removal of the External Auditors, the approval of their remuneration and the objectivity, judgment or independence. The External Auditors are required to
terms of their engagement to the Board. provide their written assurance of meeting the independence requirements for
each non-audit service undertaken by them for TNB Group.
The Board and the BAC are responsible for reviewing, assessing and monitoring
the performance, suitability and independence of External Auditors. The Board The prohibition of non-audit services is based on three (3) basic principles,
has set a policy on External Auditors which stipulates the guidelines and namely that the External Auditors cannot function in the role of Management;
procedures for the Board and the BAC to assess and monitor the performance cannot audit their own work; and cannot serve in an advocacy role of TNB Group.
and independence of the External Auditors.
The External Auditors shall observe and comply with the By-Laws of MIA in
The policy covers Selection and Appointment, Independence, Conflict of relation to the provision of non-audit services and, if necessary, apply safeguards
Interest, Non-Audit Services, Rotation of Audit Partner (applies to lead audit as stipulated in the By-Laws of MIA.
engagement partner), Annual Reporting, Annual Assessment and Audit Fees.
The Board through BAC, at its meeting on 24 February 2022 had approved the
The appointed Audit Partner by the External Auditors is subject to rotation once review of External Auditors Policy in accordance with Practice 9.2 of the MCCG,
every five (5) financial years. whereby the BAC has a policy that requires a former partner of the External
Auditors of TNB, to observe a cooling-off period of at least three (3) years before
being appointed as a member of BAC. Apart from that, the said review also is
in line with the inclusion of Guidance 9.3 of the MCCG, of which the annual
assessment of External Auditors should also consider information presented in
the Annual Transparency Report of the audit firm.

GOVERNANCE
Pages 58 - 125

The BAC assists the Board in assessing whether the independence of External Auditors has been maintained, having regard to any non-audit related services. The
BAC considered the provision of non-audit fees by the External Auditors for the non-audit services provided to the Group and the Company during the Financial
Year and concluded that the provision of these fees does not compromise or impair the External Auditors’ independence or objectivity.
The Auditors’ Remuneration including Non-Audit Fees for the Company and the Group for the Financial Year ended 31 December 2021 is as follows:
Group Company
RM ‘Million RM ‘Million
Statutory Audit 5.3 1.2
Audit Related Services 1.5 1.5
Total 6.8 2.7
Non-Audit Services:
- Tax Related Services 0.4 0.0
- Other Non-Audit Services 1.6 0.2
Total 2.0 0.2
The Non-Audit Fees did not exceed 50% of the Audit Fees for the Financial PROMOTING SUSTAINABILITY
Year under review, in line with TNB’s External Auditors Policy.
The Board recognises that the Company’s stakeholders are increasingly
All services were procured competitively in accordance with TNB’s interested in understanding its approach and performance in embedding
Procurement & Supply Chain Policy and Procedures and External Auditors sustainability in the organisation.
Policy. Non-audit services can be offered by the External Auditors of the
Group if there are clear efficiencies and value added benefits to the Group. For this Financial Year, TNB has published a Sustainability Statement which
discloses TNB’s efforts and initiatives in managing its material economic,
Based on the External Auditors Assessment Results for the Financial Year environmental and social risks and opportunities. The reporting is guided by
2021, overall, the Company was highly satisfied/satisfied by 96%, an the Global Reporting Initiative (GRI) standard. The Sustainability Statement is
increment of 4.4% compared to the previous Financial Year, with the services on pages 128 to 179 of the Integrated Annual Report.
provided by PwC in term of quality, sufficiency of resources, communication
and interaction and independence, objectivity and professional skepticism. RESPONSIBILITY STATEMENT IN RESPECT OF THE FINANCIAL YEAR
All comments made shall be forwarded to PwC in order to further improve UNDER REVIEW
their services.
The Board is fully accountable for ensuring the Audited Financial Statements
With that, the Board/BAC are satisfied with the quality of service, sufficiency are prepared in accordance with the Companies Act 2016 and the applicable
of resources, communication and interaction and independence, objectivity approved accounting standards set out by the Malaysian Accounting
and professional skepticism demonstrated by PwC in carrying out its duties Standards Board so as to present a true and fair view of the Group’s state of
as External Auditors. affairs and of the profit or loss and cash flow as at the end of the accounting
period.
Being satisfied with the External Auditors’ performance, the Board
recommends their re-appointment for shareholders’ approval at the AGM. In preparing the Audited Financial Statements, the Directors are satisfied
that the applicable approved accounting standards in Malaysia have been
INSIDER TRADING complied with and reasonable and prudent judgements and estimates have
been made. The Audited Financial Statements are also prepared on a going
The Directors and Top Management of TNB are prohibited from trading in concern basis as the Board has a reasonable expectation, after having made
securities or any kind of price-sensitive information and knowledge which enquiries, that the Group has adequate resources to continue its operational
have not been publicly announced, in accordance with the MMLR and existence for the foreseeable future.
relevant provisions of the Capital Markets & Services Act 2007. Notices on the
closed period for trading in TNB’s securities are circulated on a quarterly basis
in advance of each closed period, to Directors and Top Management who are
deemed to be privy to any price-sensitive information and related actions.

STATEMENT ON RISK MANAGEMENT

AND INTERNAL CONTROL
Paragraph 15.26(b) of the Main Market Listing

Requirements of Bursa Malaysia Securities Berhad BOARD & MANAGEMENT COMMITTEES
requires a listed issuer to ensure that its board of
directors makes a statement in its annual report Board and Management continues to ensure the adequacy and effectiveness of the Group’s
about the state of risk management and internal risk management and internal control systems through various committees executing its
control of the listed issuer as a group. Accordingly, responsibilities as stipulated in the terms of reference.
the TNB Board of Directors (Board) is pleased to
provide the following statement that has been The following Board Committees were established to play the oversight role in promoting
prepared and jointly endorsed by the Board governance, transparency and accountability:
Risk Committee and Board Audit Committee, for
purposes of disclosure, in accordance with the Board Audit Committee Board Risk Committee
Statement on Risk Management and Internal
Control: Guidelines for Directors of Listed Issuers Board Tender Committee Board Integrity Committee
endorsed by Bursa Malaysia Securities Berhad.
Board Nomination & Remuneration Committee Board Finance & Investment Committee
This Statement outlines the nature and scope of
the risk management and internal control systems
Board Long Term Incentive Plan Committee
within TNB Group during the year under review.
The scope of this disclosure excludes associated
companies and joint ventures. Subsequently, the following Management Committees are in place to implement and execute
the Group’s risk management and internal control systems for the achievement of short- and
The Board affirms its overall responsibility for the long-term business objectives. The Sustainability Development Council, Electric Vehicle Steering
adequacy and effectiveness of the Group’s risk Council and the Technology Council are established to lead in the sustainability and electric
management and internal control systems. These vehicle initiatives in line with the TNB Sustainability Pathway.
systems are designed to manage rather than
eliminate risks and therefore provide reasonable Group Executive Management Committee
rather than absolute assurance against material
losses, misstatements or other significantly adverse Group People Committee
consequences.
Group Management Tender Committee
COVID-19 PANDEMIC
Commodity Procurement Executive Committee
The COVID-19 pandemic had tested the robustness
of the Group’s risk management and internal control
Investment Executive Committee
systems. The Board and Management continue to
be committed towards ensuring availability and
Energy Supply Committee
reliability of electricity supply to the nation whilst
safeguarding the safety and health of employees
and their families in these challenging times. Information & Communication Technology Governance Committee
Despite the risk exposures and various challenges Regulatory Council

the pandemic had imposed on operations and
employees, the Group continues to remain resilient Sustainability Development Council
in delivering essential services to customers in a
productive and efficient manner. The crisis response Technology Council
team led by the Chief People Officer as the crisis
commander continues to be activated since March Electric Vehicle Council
2020 to provide governance and guidance on
new ways of working, expedite vaccinations for
Smart Meter Council
employees and communicate assurances and latest
developments as well as providing assistance to
Health, Safety and Environment Council
employees and their families affected by COVID-19.
Decisions are escalated to the management
committee chaired by the President/Chief Executive Integrity Council
Officer for group-wide implementation.

GOVERNANCE
Pages 58 - 125

RISK MANAGEMENT
RISK MANAGEMENT FRAMEWORK

TNB Risk Management Framework
Risk management in TNB is governed by the
TNB Risk Management Framework, which
adopts the principles and guidelines set VALUE CREATION &
out in ISO 31000:2018, ‘Risk Management – PROTECTION
Guidelines’. The framework was approved by
the Board Risk Committee (BRC) in January Leadership & Commitment
2019 with the latest revision approved by the
Communication
BRC in the year under review. This framework Business Strategy
Integration
provides a structured and consistent approach
for risk management implementation across Risk Assessment
the Group. The purpose of risk management
is to create and protect value and this is Review, Monitor & Report
exemplified through each element in the TNB
Risk Management Framework. Culture
The implementation of the TNB Risk Management Framework is documented through the TNB risk governance documents, comprising of the TNB Risk
Management Framework, TNB Risk Management Policy and four guides, which are the Risk Assessment Process, Risk Review, Risk Report and Key Risk
Indicator. The TNB Risk Management Framework document describes the criteria and frequency of revision of these risk governance documents and the levels
of approving authority to ensure the documents are robust, practical for implementation and reflective of the internal and external context.
TNB Risk Governance Documents
TNB Risk Management TNB Risk TNB Risk Assessment Risk Review Guide Risk Report Guide Key Risk Indicator Guide
Framework Document Management Policy Process Guide Structured Risk Review Structured and Structured and
Structured and Statement declaring Structured and methodology standardised risk standardised methodology
consistent risk approach TNB’s commitment standardised reporting template to identify, monitor and
to risk management and approach on risk risk assessment report KRI
management methodology
RISK MANAGEMENT POLICY
The TNB Risk Management Policy is a statement of the overall intention and direction of the Group on risk management. It describes the commitment of
the Group to assess risks in alignment to business objectives, integrating risk management in all decision-making processes, anticipating potential risks in
response to changes in the internal and external environments and ensuring that risk information is communicated through a clear and robust monitoring
and reporting structure.
The policy emphasises on the role of all TNB employees, who are responsible and accountable to manage risks related to their actions and decisions by taking
all reasonable care to minimise loss, maximise opportunity and ensure TNB’s reputation is upheld.


LEADERSHIP AND COMMITMENT The establishment of the BRC reaffirms the Board’s commitment to ensure
that the Group has in place a sound and robust enterprise risk management
The TNB Risk Management Structure depicts the leadership and commitment framework and that such framework has been effectively implemented to
of Board and Management in the escalation and cascading of risk information enhance the Group’s ability to achieve its strategic objectives. The BRC is
across all levels. supported by Management through the Group Executive Management
Committee chaired by the President/Chief Executive Officer, the cross-
functional Group Risk Management Working Committee (GRMWC) and
Subsidiaries Risk Management Working Committee (SRMWC), as well as
TNB Risk Management Structure
the Risk Management Department led by the Chief Risk Officer. Assurances
are provided to the Board and Management through internal and external
TNB Board of Directors audits.
In the year under review, the BRC convened seven (7) sittings to deliberate
risk issues and key risk indicators as well as to review the effectiveness
TNB Board Risk Committee of appropriate systems to manage risks. Business entities provided
assurances to the BRC of their risk management and internal controls,
assisting the Board in its decision-making, especially in the management
of potential risks that may prevent the Group from achieving its strategies.
Group Executive Management
Committee
In addition, a joint BRC and Board Finance & Investment Committee
meeting was held in the year under review to deliberate and approve
an investment risk methodology, including risk parameters and
Group/Subsidiaries
Risk Management Working Chief thresholds that are reflective of the Board’s risk appetite. The investment
Committee Risk Officer risk methodology provides a structured approach and adds rigour to
the process of assessing risks related to potential investments. This
methodology forms an integral part of TNB’s growth strategy and
Risk expansion into non-regulated businesses.
Divisions, Departments and Management
Subsidiaries Department
RISK ASSESSMENT PROCESS
Risk
Risk Manager
Owner TNB business entities are guided by the TNB Risk Assessment Process that
provides a structured approach to identify, analyse, evaluate and treat
risks. TNB business entities apply the process in a systematic, iterative
and collaborative manner, drawing on the knowledge and views of
Assurance (Internal and External Audit) stakeholders to develop their respective risk profiles.
The TNB Risk Assessment Process was applied in the assessment of the TNB Strategic Risks that may prevent the Group from achieving its Reimagining TNB
strategies, taking into account internal and external factors. Eleven (11) TNB Strategic Risks were identified and approved by the BRC in the year under review,
which are as follows:
Category No. Risk
External 1. Catastrophic disruptions from external factors

TNB business entities are exposed to unpredictable external events that could catastrophically impact business operations,
profitability and reputation. Examples of external factors are cybersecurity attack, large-scale environmental disaster, pandemic
or economic trade war.
Sustainability 2. Inability to keep pace with global Environment, Social & Governance (ESG) frameworks
It is vital that TNB aligns itself to global ESG commitments and frameworks to fulfill its purpose to brighten lives through
innovative and sustainable solutions towards a better world. Failure to do so could erode market confidence, adversely affect
employee morale and damage TNB’s brand and reputation.

GOVERNANCE
Pages 58 - 125

Category No. Risk
Market 3. Drop in electricity demand

A sustained downward trend of electricity demand in the country would severely affect revenue and profitability, sustainability
of key operations and increase the risk of stranded assets across the electricity supply chain.
4. Unable to be competitive & sustainable in non-regulated businesses (international & domestic)

As TNB continues to diversify its business into non-regulated segments, both domestically and internationally, it is exposed to
markets that are highly competitive and challenging to overcome the common barriers to entry.
Customer 5. Inability to be the electricity provider of choice

TNB would not achieve its aspiration to be the leading provider of sustainable energy solutions in Malaysia if it does not increase
and retain the trust and confidence of Malaysians. Failure to do so could give rise to increasing stakeholders discontent, which
may precipitate the opening up of the entire electricity supply chain, including the network and retail segments.
Financial / 6. Ineffective capital allocation to maximise value creation

Strategy TNB could be at risk of missed opportunities, reduced financial profits and decreased market confidence resulting from biased
or ineffective capital allocation decisions. Capital allocation decisions are to be made judiciously, systematically and data-driven
to reduce risk, maximise value and give fair returns to providers of capital.
Capabilities 7. Gaps in workforce capabilities to deliver Reimagining TNB strategy

It is critical for TNB to focus on developing and deploying new institutional capabilities and increasing workforce diversity in
terms of skill sets and exposure in order to achieve the Reimagining TNB strategies, especially in diversifying into new businesses,
domestically and internationally.
8. Failure to ingrain TNB culture in employees’ behaviour in supporting Reimagining TNB strategy
Culture moulds the direction, beliefs and shared values that shapes employees’ perception, behaviour and understanding.
Failure to enliven the TNB core values in day-to-day decision-making and processes may result in decreased productivity, fraud
or bribery, silo mentality, etc.
Regulatory 9. Unfavourable energy transition & climate change policies & regulations
The Reimagining TNB strategies and targets are anchored on the domestic energy transition and climate change policies
and regulations. Unfavourable changes to these policies such as changes to the domestic Renewable Energy (RE) targets and
legislations, increased severity of non-compliance penalties for carbon emission or imposition of new regulations on carbon
pricing and energy efficiency, may impede the achievement of TNB’s energy transition strategies and targets.
10. Unfavourable Incentive Based Regulation (IBR) regime implementation & outcome
The performance of TNB’s regulated businesses are dependent on the consistent and effective implementation of the IBR
framework and related Regulatory Implementation Guidelines (RIGs). TNB’s financial position may be adversely impacted
should there be unfavourable decisions on key regulated policies such as the Imbalanced Cost Pass-Through (ICPT) and Annual
Regulatory Adjustment.
11. Regulatory Uncertainty

Due to the nature of TNB’s business, it is susceptible to decisions by regulatory stakeholders at the federal and state levels.
Business operations may be delayed or encumbered due to measures and decisions in relation to investment and divestment,
use of natural resources, right of way, etc.
REVIEW, MONITOR AND REPORT
Consequent to the TNB Risk Assessment Process, risks identified by business Half-year risk reports are submitted by business entities to the Risk
entities are registered and monitored through the TNB Risk Information Management Department for consolidation. Group-wide consolidated half-
System (TRIS), an online real-time tool and risk database that is accessible year risk reports, which include reports of emerging risks, are deliberated and
by all employees. Risks are reviewed annually by business entities with endorsed by the GRMWC for onward internal dissemination.
participation and eventual approval from the risk owners.


In the year under review, the Risk Management Department assessed the
risk maturity of five (5) business entities with the objective of assessing the INTERNAL CONTROL
effectiveness of the implementation of the TNB Risk Management Framework.
In addition, Desktop Risk Assessments, which were initiated in the previous GROUP POLICIES AND PROCEDURES
year in view of travelling and movement constraints during the pandemic,
had continued and eleven (11) Desktop Risk Assessments were conducted by Group-wide policies and procedures have been approved by the Board
the Risk Management Department to assess the comprehensiveness of the and Management to ensure ethics and internal control principles and
application of the TNB Risk Assessment Process by business entities. mechanisms are embedded in business operations. These policies and
procedures are consistently reviewed for relevance and effectiveness.
KEY RISK INDICATORS
Key Risk Indicators (KRIs) that provide early warning of increasing risk exposures Among others, the Group policies and procedures in place are:
and potential risk events have been developed by business entities. These KRIs
are developed in consideration of the risk appetite of the BRC and Management. TNB Code of Ethics
The status of KRIs are reported quarterly to the BRC, GRMWC and SRMWC and
mitigating measures are deliberated to address related risk(s) from escalating TNB Ethics & Integrity Policy
beyond tolerable levels.
TNB Risk Management Policy
The KRIs escalated and reported to the BRC monitor risks that would impact
five (5) areas, which are operations, financial standing, regulatory, reputation TNB Confidentiality Policy
and international investment. Other operational KRIs that are deliberated by
the GRMWC and SRMWC enable inter-business collaboration to mitigate risks TNB Asset Management Policy
from a group-wide perspective.
TNB Limits of Authority
The KRIs are reviewed annually for relevancy and adequacy, taking into account
short- and long-term business objectives and changes in the internal and
TNB Procurement and Supply Chain Policy and Procedures
external environments.
TNB ICT Security Policy and ICT Codes of Practice

COMMUNICATION & INTEGRATION
Business entities regularly communicate with internal and external stakeholders TNB Safety & Health Policy
with up-to-date risk information and timely feedback is collated for continual
improvement. It is the role of the business entity to ensure risk management TNB Environmental Policy
forms part of, and not separate from, its objectives, governance, leadership and
commitment, operations and performance management. TNB Security Policy
In light of the pandemic, the Risk Management Department continued to engage TNB Communication Policy
and communicate with approximately 1,700 executives through 24 webinars
(twice monthly) in the year under review. These 30-minute webinars aim to TNB Personal Data Protection Policy
strengthen employees’ risk-thinking mindset through practical applications
of the TNB Risk Management and TNB Business Continuity Management TNB Disciplinary Procedures
frameworks. Moreover, videos of TNB C-Suites communicating their tone from
the top and emphasising the benefits of effective risk management were
TNB Group Financial Policies and Procedures
produced in the year under review. These videos are uploaded into TNB Livewire
for easy viewing and download and are showcased at relevant platforms such
TNB Group Human Resource circulars and guidelines
as webinars and risk review workshops. Continuous efforts are ongoing to
reach out to employees at all levels to integrate risk management into daily
operations.
FINANCIAL AND OPERATIONAL CONTROL FRAMEWORK
CULTURE
TNB Group Financial Policies and Procedures (GFPP) serves as a compulsory
In the year under review, the risk culture described in the TNB Risk Management source of reference for the Group in conducting its operations to manage
Framework was reviewed for consistent application of the six (6) TNB core associated risks. The Group has acted in accordance with generally
values and behaviours that were launched in the previous year. The application accepted accounting principles and the Malaysian Financial Reporting
of these core values and behaviours were described in a risk management Standards. Periodic reviews of actual performance versus budgets, targets,
context to provide clear guidance and communicate the expected behaviour of and performance in prior periods for key functions and major initiatives are
employees in building a sustainable risk culture. carried out and appropriate mitigating and follow-up actions are taken.

GOVERNANCE
Pages 58 - 125

The Board Audit Committee (BAC) reviews the Group’s quarterly financial identifying the digital vision and value levers for ten key business entities.
performance together with Management and these are subsequently Second, developing a clear plan on attracting and developing the right digital
reported to the Board. The quarterly reviews enable the BAC to deliberate talent and for culture change; third, enhancing digital architecture readiness
and assess the Group’s financial results and operational performance. that supports business imperatives; fourth, establishing a digital operating
model, factory and skills hub to host critical in-demand skills and fifth, building
TNB continues to proactively engage with relevant stakeholders for a governance and value realisation framework.
smooth implementation of the IBR framework and ICPT mechanism. The
performance of the regulated business is meticulously monitored through MANAGEMENT INFORMATION SYSTEMS
the IBR performance indicators and dashboards. These are reported
regularly to relevant decision-making committees to ensure effective Leveraging on information and communication technology is vital in promoting
implementation of the IBR framework as well as to the Energy Commission effective and efficient business operations as well as timely and accurate
in compliance with the IBR guidelines. communication with internal and external stakeholders.
The procedures for critical functions and key activities are documented,
communicated to employees and periodically reviewed. Relevant business Examples of key information systems utilised by the Group for that
entities have been consistently maintaining its certification in ISO 9001, ISO purpose are:
14001, ISO 27001, ISO 37001, ISO 45001 and ISO 55001. Internal audits are
conducted to ensure compliance with relevant standards and procedures. Enterprise Resource Management System (ERMS)
STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT CYCLE

Enterprise Human Resources Management System (EHRMS)
A holistic strategic planning process is integral in providing focus and

alignment between aspiration, strategies, performance management and Supervisory Control and Data Acquisition System (SCADA)
the desired strategic outcomes. The Strategic Planning and Performance
Management (SPPM) cycle approved by the Board depicts a 5-part TNB Outage Management Systems (TOMS)
cycle that integrates the capital and budget allocation process with the
performance management cycle. It includes the identification of strategy Billing Customer Relation Management (BCRM)
driven Key Performance Indicators (KPI) based on long-term business
plans and annual operating plans, which are thereafter cascaded to all Employee Self Service (ESS)
levels of employees. The strategy driven KPI methodology is derived from
the Balanced Scorecard concept that focuses on performance measures
from four perspectives, which are financial, customer, internal process and
learning and growth. Super User Privilege Management and Governance, Risk and Compliance
systems have been implemented to control and govern access to core systems
HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT and servers. This is to ensure that access to critical information systems and
confidential information is adequately monitored and controlled. Annual
Job descriptions and responsibilities of approved positions are clearly disaster recovery tests are carried out at the data centres and ICT security
defined and communicated through the internal online platform, People assessments are regularly carried out on systems at the business entities. In
Matters. Workforce requirement planning is carried out and led by Group addition, various enhancements are implemented to strengthen cyber security
Human Resource, mirroring the budget planning cycle with the aim of for Information Technology and Operational Technology systems. In the event
optimising staffing levels and increasing productivity. Employee training of system failure, various mitigations are in place to minimise disruption to
needs are regularly assessed and various programmes are in place to operations.
address competency gaps.
PERSONAL DATA PROTECTION
The TNB Total Wellness Programme that is aimed at educating and
influencing employees towards a healthy lifestyle and work-life balance TNB is committed to safeguard customers’ privacy rights and personal data. TNB
continues to be implemented through the “Vibrant Living – Healthier. was an active contributor in the development of The Personal Data Protection
Together” initiative. This initiative focuses on six (6) scopes, which are a Code of Practice for The Utilities Sector (Electricity), which serves as a guide for
healthy diet, no smoking/vaping, active lifestyle, weight management, the processing and handling of customers’ personal data. The code of practice
basic health screening and mental wellbeing. Weekly “Wellness is aligned with the Personal Data Protection Act 2010 (Section 23) (PDPA),
Wednesday” health talks and awareness sessions conducted online are which protects personal information of an individual being processed for
open to all employees with the aim of increasing awareness on common commercial transaction purposes. The Legal Services Department is committed
health issues and encouraging healthier habits. to consistently educate and communicate the requirements of the PDPA and
the Code of Practice across the Group to heighten awareness and compliance
TNB DIGITAL STRATEGY as well as enhance controls.
The TNB Digital Strategy was established to lay the necessary digital
foundations and direction in supporting the Reimagining TNB strategies.
The digital strategy is implemented through five (5) streams; first,


TNB CORPORATE INTEGRITY MANAGEMENT SYSTEM BUSINESS CONTINUITY MANAGEMENT
The TNB Corporate Integrity Management System (TCIMS) is in place to The TNB Business Continuity Management (BCM) Framework was developed
improve the integrity culture in the Group, reduce the impact of corruption in alignment with ISO 22301:2019 Security And Resilience – Business
or mismanagement and position TNB at par internationally through a Continuity Management Systems. The framework provides a structured
strategic and structured integrity management system. TNB is certified with approach in managing business continuity in the Group that enables prompt,
ISO 37001:2016 Anti-Bribery Management Systems and has put in place a coordinated and effective response to a crisis while maintaining continuity
management system designed to help prevent, detect and respond to bribery of essential activities as well as protecting human life, assets, reputation and
and comply with anti-bribery laws and voluntary commitments applicable the environment. The framework is the focal point of reference for business
to its activities. Annually, TNB employees complete the Integrity Pledge and entities to formulate and implement business continuity strategies tailored
Conflict of Interest declarations via the Employee Self Service system. to their respective business objectives and critical functions.
In addition, with the launch of the latest edition of the TNB Disciplinary The preparedness and effectiveness of the corporate crisis command
Procedures, 33 training and awareness sessions were conducted and structure, of which President/Chief Executive Officer and TNB C-Suites are
attended by approximately 16,920 employees. These sessions highlighted members, is tested annually through drills. In the year under review, a total
changes in the TNB Disciplinary Procedures and exposed employees to the of four (4) drills were carried out; two (2) being communication drills, one (1)
corporate liability provision for bribery and corruption under Section 17A of functional drill and one (1) full-scale drill conducted virtually. Improvements
the MACC Act 2009 as well as advisory on prudent spending and financial identified in drill post-mortems are implemented to enhance capabilities
management. The sessions were conducted in collaboration with the and readiness.
Malaysian Anti-Corruption Commission (MACC) and the Credit Counselling
and Debt Management Agency (AKPK). The TNB BCM framework and continuity strategies at corporate and
business entity levels have proven crucial in the management of the
TENAGA SAFETY CULTURE pandemic and flood crisis that affected the country in the year under
review. In preparation of the anticipated monsoon season, drills with flood
The Tenaga Safety Culture programme aims to inculcate safety as part of the scenarios were conducted at state and regional levels with collaboration
everyday working culture, transforming it from a mere compliance activity. from relevant business entities to enhance coordination and resiliency.
It is based on four core behaviours, which are ‘Assess’, ‘Comply’, ‘Intervene’
and ‘Actively Caring’. Various initiatives are implemented to instill these core
behaviours in each employee, including a spiritual approach to align good CONCLUSION
safety practices with religious teachings. With the convenience of a mobile
application called HSE Wallet that was developed in-house, employees are The Board has obtained assurances from the President / Chief Executive
encouraged to proactively observe and report unsafe acts or conditions as Officer and Chief Financial Officer that the Group’s risk management and
potential incidents and notices, compounds or lawsuits. internal control system is operating adequately and effectively, in all
material aspects. Where weaknesses have been identified, steps to rectify
In the year under review, the Nampak, Dengar & Rasa Selamat (NDRS) them have been put in place.
programme was launched to reinforce strong safety culture values in
all employees. The NDRS programme encourages employees to be The Board is of the view that the risk management and internal control
sensitive to their surroundings, evaluate potential health and safety risks, system in place for the year under review and up to the date of approval
comply with safety requirements and take proactive action to prevent of this statement for inclusion into the annual report, is adequate and
risks from materialising. The NDRS framework includes three elements, effective to safeguard shareholders’ investment, the interests of customers,
which are engineering, education and enforcement, and is supported by regulators and employees, and the Group’s assets.
a consequence management process that rewards safe behaviour and
practices and penalises non-compliance.
REVIEW OF THE STATEMENT
CUSTOMER EXPERIENCE BY EXTERNAL AUDITOR
With attention to customer centricity, a variety of channels, utilising As required by Paragraph 15.23 of the Bursa Malaysia Securities Berhad
the “Click, Call, Come Over” framework, is made available to customers. Main Market Listing Requirements, the external auditors have reviewed
The framework covers a wide range of touch points that enable quality this Statement on Risk Management and Internal Control. Their limited
solutions, services and continuous interaction options to enhance customer assurance review was performed in accordance with Audit and Assurance
experience. A systematic approach is in place for timely resolution of Practice Guide (AAPG) 3 issued by the Malaysian Institute of Accountants.
feedback such as service requests, complaints, comments, enquiries and AAPG 3 does not require the external auditors to form an opinion on the
concerns. In addition, the myTNB web portal and mobile application adequacy and effectiveness of the risk management and internal control
are available to customers to manage their electricity account(s) in one systems of the Group.
location. myTNB allows customers to make express payment of electricity
bills without needing to log in. With the increased use of digital platforms This statement is made in accordance with the resolution of the Board of
during the pandemic, there has been a significant increase in the number of Directors dated 24 February 2022.
registered users in myTNB to approximately 5.5 million users from 1.0 million
users in 2019, where customers are empowered with greater flexibility and
information to manage electricity usage.

GOVERNANCE
Pages 58 - 125
ADDITIONAL COMPLIANCE INFORMATION
(1) UTILISATION OF PROCEEDS RAISED FROM CORPORATE PROPOSALS
Utilisation of Proceeds Raised from Corporate Proposals by the Company during the Financial Year under review:
A Multicurrency Sukuk Issuance Programme of USD2.5 billion (Or its Equivalent In Other Currencies) by TNB Global Ventures Capital Berhad
with TNB as the Obligor
First issuance on 10 October 2016 USD750.0 million
Total utilisation of proceeds as at 31 December 2021 USD717.1 million
Balance of proceeds as at 31 December 2021 USD32.9 million
Second issuance on 1 November 2018 USD750.0 million
Total utilisation of proceeds as at 31 December 2021 USD592.2 million
Balance of proceeds as at 31 December 2021 USD157.8 million
Establishment of Sukuk Wakalah Programme of up to RM5.0 billion by TNB

First issuance on 3 August 2017 RM2.0 billion
Second issuance on 29 August 2018 RM3.0 billion
Utilisation of proceeds as at 31 December 2021 Utilised to finance TNB’s capital expenditure, investment, general
corporate purposes, working capital requirements and settlement of
fees and expenses related to the sukuk programme
Balance of proceeds as at 31 December 2021 - Nil -
Establishment of Sukuk Wakalah Programme of up to RM10.0 billion by TNB

Second issuance on 25 November 2021 RM3.0 billion
Total utilisation of proceeds as at 31 December 2021 RM2.5 billion
Balance of proceeds as at 31 December 2021 RM500.0 million
(2) MATERIAL CONTRACTS
There were no material contracts entered into by the Company and its Subsidiaries involving the interest of the Directors or Major Shareholders, either
still subsisting at the end of the Financial Year or, if not then subsisting, entered into since the end of the previous Financial Year.
(3) RELATED PARTY TRANSACTIONS
The Group has established appropriate procedures to ensure it complies with the MMLR with regards to related party transactions. All related party
transactions are reviewed by the Group Internal Audit Department, following which a Group-Wide Report is submitted to BAC on quarterly basis for
monitoring purposes. The Group did not seek any mandate of its shareholders pertaining to related party transactions during the Financial Year under
review.
STATEMENT ON COMPLIANCE WITH THE REQUIREMENTS OF BURSA MALAYSIA IN RELATION TO APPLICATION OF PRINCIPLES AND ADOPTION OF
BEST PRACTICES LAID DOWN IN THE MALAYSIAN CODE ON CORPORATE GOVERNANCE 2021
(Pursuant to paragraph 15.25 of the MMLR)
The Board has reviewed, deliberated and approved this Statement. The Board is pleased to report to its shareholders that to the best of its knowledge, the
Company has complied with and shall remain committed to attaining the highest possible standards of corporate governance through the continuous
adoption of the principles and best practices of the MCCG and all other applicable laws, save as disclosed above.
Signed on behalf of the Board of Directors in accordance with their resolution dated 24 February 2022.
DATO’ MERINA BINTI ABU TAHIR


Section
05
SUSTAINABILITY
STATEMENT
128 About This Statement

130 Sustainability at TNB
• TNB’s Sustainability Strategy
• Strong Leadership and Governing
Responsibly
• What Matters Most
• Linking Performance to Global Agenda
• ESG Ratings
• Awards & Recognition
141 Building the Nation
• Sustainable Infrastructure and Ecosystem
• Sustainable Business Expansion
• Ensuring Reliable Electricity Supply
• Customer Centricity
• Sustainable Supply Chain
151 Environmental Sustainability
• Our Response to Climate Change
• Minimising Our Environmental Impact
164 Empowering Our People and Nurturing
Talent
• Employment Management & Growth
173 Brighter Community
• Contributing to Community Development
• Engaging Indigenous People
ABOUT THIS STATEMENT
FY2021 has been an unprecedented year for the nation - as Malaysia continued its battle against the COVID-19 pandemic by ramping up on vaccination rates and
trying to adapt to the new normal, we were hit by one of our worst floods since 2015. During this period, we remained steadfast in our commitment to support
the community in the immediate term, whilst tackling the challenges of energy transition to drive sustainable growth that will create value for all stakeholders
in the mid-to-long-term. The path towards sustainability is an important and exciting journey which seeks to power a brighter future for all. With the launch of
our Sustainability Pathway and bold aspiration to achieve net zero by 2050, we stepped up our efforts and established numerous sustainability targets through
a roadmap which is reinforced through group-wide discipline and creative stewardship that will transform how TNB will deliver efficient, secure, clean and
affordable energy across all our operations.
As one of the utilities in the ASEAN region to commit to net zero by 2050, we now focus our efforts in electrification, digitalisation, and decarbonisation driving
measurable value across our sustainability pillars – governance, economic, environmental and social. In this Sustainability Statement (Statement), we share our
sustainability performance for the financial year ended 31st December 2021 (FY2021), including our strategies and targets moving forward.
Reporting Framework, Scope and Boundaries
Our Statement continues to integrate the elements of Bursa Malaysia’s Main Market Listing Requirements (MMLR) and other local and global frameworks and
benchmarks in our disclosure:
Bursa Malaysia Global Reporting Initiative GRI Electric Utilities Sector Task Force on Climate- United Nations
Sustainability Reporting (GRI) Standards: Disclosures related Financial Sustainable Development
Guide (2nd Edition) Core Option Disclosures (TCFD) Goals
framework (UN SDGs)
The scope and boundary of sustainability disclosures have been expanded to include all our subsidiaries (TNB Group). Where information is unavailable, we
will cover our core and non-core business operations in Peninsular Malaysia under the purview of TNB divisions (TNB Company). Unless otherwise stated, this
Statement excludes joint ventures and supplier activities.
External assurance was not sought for this Statement. Nevertheless, we aspire to continue our journey in adopting best practices by seeking external assurance
for our future sustainability disclosures.
Our Statement contains data from the full financial year of FY2021 from 1st January 2021 to 31st December 2021. Where data for FY2021 is not available, the most
recent data is provided. More information will be disclosed in our upcoming Sustainability Report 2021.

Creating Value Through Strong Governance SUSTAINABILIT Y STATEMENT Financial Statements Additional Information
Pages 128 - 179
ABOUT THIS STATEMENT
We have enhanced our Statement to better illustrate our sustainability performance and initiatives against our commitments and targets. The key enhancements
are as follows:
Section in this Statement Key enhancements
Sustainability at TNB • Established TNB’s Sustainability Pathway 2050 (SP2050) outlining a clear roadmap with decadal targets and
key environmental, social and governance & economic (ESG) metrics to guide our sustainability journey for
the next 30 years.
• Expanded our UN SDG Contributions from four (4) to eight (8) SDGs.
• Disclosed our ESG Ratings performance.
• Enhanced governance structure across the Board and Executive level to spearhead TNB’s sustainability
strategy across the Group.
Environmental Sustainability • Conducted strategic engagements with key internal and external stakeholders to address concerns and
obtain buy-ins on new targets and aspirations.
• Enhanced our TCFD disclosure in line with our efforts in developing SP2050.
Empowering our People and • Highlighted our newly introduced TNB Ways of Working Sustainably (WoWS) as part of our shift towards a
Nurturing Talent more sustainable work culture.
Brighter Community • Highlighted TNB’s engagement and efforts towards the indigenous community, critically balancing
sustainable growth and socioeconomic benefits.
Sustainability Performance Highlights for FY2021
Economic Environmental Social

Equivalent Availability Total renewable Total contribution to
Factor (EAF) energy capacity community development
82.89%
Performance for wholly and
3,441.62MW
For domestic (including Sabah)
programmes
RM39.57
majority owned power plants in
million
and international
Peninsular Malaysia
*The above figure excludes investments in
GHG Emissions Mitigated employee training and development
System Availability
99.79% 7.96 million Lost Time Injury

Frequency (LTIF) rate
tCO2e
For TNB operations in Peninsular Malaysia 1.03
Customer Satisfaction Index Fatalities*
87%
GHG Emissions Intensity
0.55 8
*2 are TNB employees and
6 TNB contractors.
tCO2e/MWh Learning and
Spent on Procurement For TNB operations in Peninsular Malaysia
98%
Development Investment
on local suppliers
Waste Generation RM65.53
47,829 million
tonnes Employee Engagement Score (EES)
85%
SUSTAINABILITY AT TNB
TNB’s Sustainability Strategy
Our sustainability strategy is rooted in our Sustainability Pillars, as well as our corporate strategy, Reimagining TNB 2025 (RT). We continue to broaden our
contributions to the UN SDGs. This year, we have expanded our SDG contributions with the inclusion of four (4) additional SDGs, which are SDG3-Good
Health and Well-being, SDG4-Quality Education, SDG9-Industry, Innovation and Infrastructure, and SDG10-Reduced Inequalities. We hope the alignment of
our strategic priorities will enable us to increase value creation for our stakeholders and the nation.
Sustainability Pillars TNB’s Integrated Strategy Reimagining TNB
Governance Future Generation Sources

Marks our commitment, driven by our Board to Outlines our strategies in relation to renewable
reinforce ethical business practices and forward- and low-carbon sources of energy as stakeholders
looking culture under the theme “Strong Leadership gravitate towards decarbonisation to mitigate climate
and Governing Responsibly”. change.
Economic Grid of the Future (GOTF)

Defines our continued aspiration to provide reliable Envisions the grid of the future as being fully
and efficient energy in the local and international automated and digitalised, that empowers self-
Energy Supply Industry (ESI) for a better and brighter To be a leading generation and greater energy efficiency among
future under the theme “Building the Nation”. energy solutions consumers.
in Malaysia and
Environmental Winning the Customer
Defines our commitment to minimise our
internationally Relates to our commitment to not only provide reliable
environmental impacts and address climate change supply of electricity but to become a customer-centric
risks and opportunities towards achieving net organisation which offers meaningful customers’
zero by 2050 under the theme “Environmental experience by meeting all our customers’ energy-
Sustainability”. related needs along with the best service delivery.
Social Future Proof Regulations

Revolves around how we empower our employees Demonstrates how we protect the interests of all
under the theme “Empowering Our People relevant stakeholders to ensure sustainability of the
and Nurturing Talent” and Invest in community system.
development under the theme “Brighter
Community”.
In enhancing our corporate strategy, RT, we launched our SP2050 which further outlines our bold aspiration to achieve net zero emissions and be coal free
by 2050.
Targets
TNB Aspire to achieve net zero and Commit to 1% profit-after-tax

Sustainability 1 coal free by 2050, with 35% 2 Aspire to achieve zero fatalities 3 (PAT) towards environmental
emission intensity reduction by and LTIF rate <1.0 and community-related
Pathway 2050 2035 programmes
Strategic Pillars
Invest in Low Emission & Green Technologies

Invest in research and development (R&D) and greener alternative new energy sources
Reduce or eliminate emissions from the current generation fleet
Evolve the Grid and Grow Renewables

Expand renewable assets within Malaysia, ASEAN and Europe
Future-proof Expand Grid & Distribution to enable increased demand and lower energy losses
TNB’s business
Unlock New Energy Revenue Streams
Grow the kWh & beyond kWh business
Grow unregulated business to meet evolving customer energy demands — including Electric Mobility

Pages 128 - 179
Strong Leadership and Governing Responsibly
Governance Structure
A strong sustainability governance and leadership structure are vital to spearhead our sustainability agenda and provide us with clear and definitive
guidance to achieve our ambitious net zero aspiration. Our sustainability governance is an expansion of TNB’s Governance Model that is aligned with the
principles of the Malaysian Code on Corporate Governance (MCCG).
In FY2021, TNB Group Governance Platform, which is the framework of TNB management committees and sub-committees was revised to delineate clear
roles and responsibilities at each level of leadership, enabling seamless decision making and implementation of sustainability across the organisation. The
previously known Sustainability Development Committee is now reformed to be the Sustainability Development Council (SDC) with the following objectives:
Become a strategic platform to discuss

Serve as a strategic platform to deliberate Become a platform to monitor and discuss
on engagement, communication and
the Group’s sustainability direction, which progress of sustainability plans, including
knowledge-sharing initiatives that can
includes sustainability aspiration, plans, the development and implementation of
enhance sustainability development and
commitments and targets covering ESG TNB’s sustainability agenda
awareness
The SDC which is chaired by TNB’s Chief Executive Officer (CEO) and comprises TNB’s senior management team, had convened twice in FY2021. Commencing
in FY2022, the SDC will meet every two (2) months to discuss relevant sustainability matters. The SDC will escalate the group strategic direction for
sustainability to other relevant committees and/ or the Board of Directors for approval when necessary.
In FY2021, the SDC had discussed on the following:
SP2050 comprises our net zero emission

aspiration, commitment towards health Review of relevance of TNB’s material Addressing the interests and concerns of
and safety, and serving the rakyat for a matters and materiality matrix external and internal stakeholders
Better Brighter Future
Our Sustainability Governance Structure
TNB Board of Directors

TNB’s Board will deliberate and approve TNB’s sustainability strategy and pathway while overseeing its implementation
and performance
Chief Executive Officer (CEO)
Group Executive Management Committee (GEMC)

GEMC will review and endorse sustainability strategy prior to Board presentation
Sustainability Development Council (SDC)

Report
The SDC is responsible for discussing direction related to sustainability strategy, including climate change policy positions sustainability
performance to
taken by the Group SDC periodically
Group Function and Business Units Corporate Strategy & Sustainability Department
• Implementation of sustainability strategy and Report sustainability Ensures overall strategic planning, target setting, and
performance to
initiatives Corporate Strategy sustainability initiatives are tracked and reported through
• Manage sustainability related risks and opportunity & Sustainability comprehensive performance reporting, and are aligned
Department
to long-term sustainability roadmaps

Strong Leadership and Governing Responsibly
Remuneration policies
The Board, with the assistance of the BNRC, reviews the overall remuneration policy of the Non-Executive Directors, Executive Director and top management.
The remuneration policy aims to attract, retain and motivate Directors and top management who will create sustainable value and generate returns for
the Company. Their remuneration packages are structured to link rewards to corporate and individual performance to reflect the contributions towards
the Group’s achievements for the year.
In FY2021, TNB embarked on a phased approach to link remuneration to key sustainability KPIs to ensure accountability from the different levels of management
and steer the Group’s sustainability performance. Moving into FY2022, we will cascade our ESG KPIs to the senior management team as follows:
• TNB ESG rating score
• Zero fatalities and LTIF rate <1.0
• Installed RE capacity
For more information, please refer to Board Leadership and Effectiveness section, pages 86 to 96.
Upholding a Strong Sense of Integrity

We uphold high standards of integrity across the Group. Our efforts go beyond compliance to create a culture of excellence and integrity which has been
embedded as a Core Value under TNB Reimagining Culture:
Three (3) Core value behaviors
Uphold the highest ethical Fair, honest and transparent - in Always seek to achieve mutual
standards and do what is right, all everything we do benefit for the country, company and
the time customers
Key highlights and initiatives for FY2021:
Key Initiatives Our Performance in FY2021

Zero-tolerance rule • The zero-tolerance rule towards bribery and corruption continued to be observed and enforced. The avenue to report
suspicious and unethical conduct is outlined in our Whistleblowing Procedure.
TNB Corporate Integrity • We conducted six (6) Fraud & Bribery Management Workshops.
Management System • We facilitated three (3) ABMS implementation consultation sessions.
(TCIMS) and Anti Bribery • We held two (2) ABMS Internal Auditor Refresher courses.
Management System
(ABMS) Implementation
(ISO 37001 Certified)
Annual Integrity Pledge • All employees are required to sign the annual Integrity Pledge, declare any conflict of interest, and complete the Integrity
and Integrity E-Learning E-Learning Module. In FY2021, The Integrity E-learning module was also rolled out to all active vendors, and was completed
Module by 1,579 vendors.
Collaboration with the • We engaged Bahagian Pendidikan Masyarakat (PenMas) from the Malaysian Anti-Corruption Commission (MACC) to
Malaysian Anti-Corruption strengthen bilateral cooperation between MACC and TNB by conducting awareness training on bribery and corporate
Commission (MACC) liability for TNB employees. The training intends to inculcate and institutionalise integrity in the company.
Integrity Engagement • This programme was aimed to disseminate information and updates on the Prosedur Tatatertib Edisi Ketujuh, create awareness
Programme (IEP) amongst staff on the importance of complying to Section 17A of the MACC Act 2009, and spread awareness on financial
management.
In FY2021, we conducted:
• Two (2) sessions of TNB Integrity Coordinator’s Workshop.
• One (1) session of Mediation Process Training.
• One (1) session of Taklimat Integriti & Seksyen 17A Akta Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) for our vendors.
• Two (2) Awareness Videos for our vendors and for Perubahan dalam Prosedur Tatatertib Edisi Ketujuh, 2021.
• 33 sessions of Integrity roadshows on the Prosedur Tatatertib TNB Edisi Ketujuh, Pengurusan Kewangan & Liabiliti Korporat.
TNB Integrity Health Index • We introduced the Integrity Health Index (IHI) survey and developed the IHI Dashboard in FY2021.
Moving forward, we intend to review our Code of Ethics and develop Organisational Anti-Corruption Plan. To further reinforce the institutionalisation of
integrity in TNB, our management has incorporated the Integrity Health Index (IHI) as part of their Key Performance Indicator in FY2022. The objective of IHI
is to measure and capture relevant information on different attributes and dimensions of integrity health status and performance of the company’s integrity
health system.
For more information, please refer to Ethics, Integrity & Trust, pages 98 to 99.

Pages 128 - 179
What Matters Most
TNB’s material sustainability matters reflect key topics that represents our most significant impacts on the economy, environment, and people, including
human rights. With an in-depth understanding of our material matters, we can better define our strategies and resource allocation plans, thereby positioning
TNB to implement meaningful actions and anticipate sustainability challenges.
Our determination of material matters begins with listening to and communicating with our diverse set of stakeholders to understand their concern.
Thereafter, we bring these considerations into our materiality processes.
To see how we engage with our stakeholders, please refer to Creating Value through Strong Governance, pages 108 to 111.
A comprehensive materiality assessment was conducted in FY2020 involving key internal stakeholders’ inputs and syndication with external stakeholders
to develop our materiality matrix. This year, we reviewed our materiality matrix with our top management and SDC to ensure continuous relevance and
alignment to TNB’s strategies, industry developments, emerging risks and opportunities, and stakeholder concerns.
The materiality review was conducted through the following process:
Identification Prioritisation Validation
The existing material sustainability matters of TNB were reviewed based on the following: We reviewed the The key stakeholder
priority of each material groups and material
Internal factors: External factors: sustainability matter matters were reviewed
Strategic direction and sustainability Bursa’s Sustainability Reporting Guide based on the level and validated with the
strategy of the Group as well as (2nd Edition) and the GRI Standards, of importance to the Senior Management,
identification of interests and concerns industry trends, leading practices from business and its impact SDC and the Board of
through stakeholder engagements. peer benchmarking, and media reviews. on the economy, Directors.
environment, and
people.
As a result, a refreshed list of potential sustainability matters was defined.
For FY2021, we retained the

position and priority of 17 out TNB’s FY2021 Materiality Matrix
of 18 material matters identified
High
Business and
in the previous year. The key Financial
Customer Experience
change during the year was the Performance
repositioning of one material Reliable Energy and Fair Tarif
matter - “Rights of Indigenous Climate Change and
Energy Transition and Innovation Energy Efficiency
People” which was shifted from
Importance to TNB’s Stakeholders
low priority to medium priority to Safety Health and Well Being
reflect our increased engagement Employment Culture Environment Management

with indigenous communities. Cyber Security Management
Capability Development
Responsible and Ethical Business Practice
Sustainable Supply Chain
Community Development and Education
Rights of Natural Resource Consumption
Indigenous People
Waste Management
Biodiversity Management
Tax
Low
Low Importance to TNB’s Business High
Legend: High priority Medium priority Low priority Economic Environmental Social

What Matters Most
We have mapped the 18 prioritised material matters for FY2021 to our corporate strategy, direct and indirect contributions to the UN SDGs, and our 11 strategic risks.
For more information on TNB’s risk management, please refer to the Statement on Risk Management and Internal Control section, pages 118 to 122.
RT Pillars Future Generation Grid of the Winning the Future proof

Legend:
RT Enabler Sources Future Customer Regulations
Sustainability Pillar Material Matter Link to Strategic Risks Link to RT and UN SDGs
Responsible and Ethical Business • Inability to keep pace with global ESG
Practices frameworks
• Unfavourable energy transition and climate
GOVERNANCE Ensuring robust corporate change policies and regulations
Strong Leadership and governance in TNB • Unfavourable Incentive Based Regulation
Governing Responsibly (IBR) regime implementation & outcome
• Ineffective capital allocation to maximise
• Reinforce ethical and value creation
safe business culture • Failure to ingrain TNB culture in employees’
behaviour in supporting Reimagining TNB
strategy
• Regulatory uncertainty
Business and Financial • Catastrophic disruptions from external

Performance factors
• Inability to keep pace with global ESG
ECONOMIC Measures taken to achieve business frameworks
Building the Nation and financial growth • Unfavourable energy transition and climate
change policies and regulations
• Provide reliable and • Unfavourable IBR regime implementation &
efficient energy for outcome
customers • Drop in electricity demand
• Supply electricity • Unable to be competitive & sustainable in
domestically and non-regulated businesses (international &
internationally domestic)
• Inability to be the electricity provider of
choice
value creation
Reliable Energy and Fair Tariffs • Catastrophic disruptions from external

factors
Ensuring the availability, • Inability to keep pace with global ESG
affordability and reliability of frameworks
electricity in the short, medium and • Unfavourable energy transition and climate
long-term, including in the event of change policies and regulations
emergencies and crises • Unfavourable IBR regime implementation &
outcome
• Drop in electricity demand
choice
value creation

Pages 128 - 179
Capital Allocation and Corporate and Digital and Culture, Capabilities and
Legend:
Value Creation Organisation Structure Data Analytics performance management
Customer Experience • Catastrophic disruptions from external

factors
Providing exceptional customer • Unfavourable IBR regime implementation &
ECONOMIC experience by exceeding their outcome
expectations and empowering • Drop in electricity demand
them to become prosumers, while • Unable to be competitive & sustainable in
ensuring data security non-regulated businesses (international &
domestic)
choice
• Failure to ingrain TNB culture in employees’
behaviour in supporting RT strategy
Cyber Security Management • Catastrophic disruptions from external

factors
Safeguarding digital systems from • Inability to be the electricity provider of
cyber security risks, threats and choice
attacks
Sustainable Supply Chain • Catastrophic disruptions from external

factors
Engaging in sustainable supply • Drop in electricity demand
chain practices and strengthening • Unable to be competitive & sustainable in
the local energy ecosystem non-regulated businesses (international &
domestic)
choice
Tax • Unfavourable energy transition and climate

Contributing to government • Unfavourable IBR regime implementation &
revenue through transparent tax outcome
practices • Ineffective capital allocation to maximise
value creation

What Matters Most
We have mapped the 18 prioritised material matters for FY2021 to our corporate strategy, direct and indirect contributions to the UN SDGs, and our 11 strategic risks.
RT Pillars Future Generation Grid of the Winning the Future proof

Legend:
RT Enabler Sources Future Customer Regulations
Energy Transition and • Inability to keep pace with global ESG frameworks
Innovation • Unfavourable energy transition and climate
ENVIRONMENTAL Contributing to the national • Unfavourable IBR regime implementation & outcome
Environmental RE target and driving
Sustainability • Drop in electricity demand
innovation to anticipate
• Unable to be competitive & sustainable in non-
changing trends and build
• Support transition to a regulated businesses (international & domestic)
business resilience
low-carbon economy • Inability to be the electricity provider of choice
• Minimise environmental • Ineffective capital allocation to maximise value
impact
creation
Environmental Management • Inability to keep pace with global ESG frameworks
Ensuring compliance and change policies and regulations
effective management of • Unfavourable IBR regime implementation &
environmental impacts outcome
Climate Change & Energy • Inability to keep pace with global ESG frameworks
Efficiency • Unfavourable energy transition and climate
Efforts to address climate • Drop in electricity demand
change impacts and manage • Inability to be the electricity provider of choice
greenhouse gas (GHG)
emissions
Natural Resource • Catastrophic disruptions from external factors

Consumption • Inability to keep pace with global ESG frameworks
Responsible consumption of change policies and regulations
natural resources including • Unfavourable IBR regime implementation &
fuel and water
outcome
Waste Management • Catastrophic disruptions from external factors

• Inability to keep pace with global ESG frameworks
Effective management • Unfavourable energy transition and climate
of waste from business change policies and regulations
operations • Unfavourable IBR regime implementation &
outcome
Biodiversity Management • Inability to keep pace with global ESG frameworks

• Unfavourable IBR regime implementation &
Pursuing environmental outcome
conservation efforts and
safeguarding biodiversity in
our areas of operation

Pages 128 - 179
Capital Allocation and Corporate and Digital and Culture, Capabilities and
Legend:
Value Creation Organisation Structure Data Analytics performance management
Safety, Health and Well- • Catastrophic disruptions from external factors
being • Inability to keep pace with global ESG frameworks
• Unfavourable IBR regime implementation &
SOCIAL Promoting a working culture outcome
Empowering our People that upholds high standards • Inability to be the electricity provider of choice
and Nurturing Talent of occupational health and • Gaps in workforce capabilities to deliver RT
safety, and protects employee strategy
• Foster a favourable welfare • Failure to ingrain TNB culture in employee’s
working environment behaviour in supporting RT strategy
that boosts employee
morale and Capability Development • Unfavourable energy transition and climate
development change policies and regulations
• Protect safety, health Development of technical and • Unable to be competitive & sustainable in non-
and well-being of our leadership skills for a future regulated business (international & domestic)
employees ready workforce • Gaps in workforce capabilities to deliver RT
strategy
Brighter Community • Failure to ingrain TNB culture in employees
behavior in supporting RT strategy
• Enrich the lives of Employment Culture • Ineffective capital allocation to maximise value
communities by creation
driving socioeconomic Creating a diverse and • Gaps in workforce capabilities to deliver RT
upliftment inclusive culture while closely strategy
engaging with our employees • Failure to ingrain TNB culture in employees
behavior in supporting RT strategy
Community Development • Catastrophic disruptions from external factors

and Education • Inability to keep pace with global ESG frameworks
• Unfavourable IBR regime implementation and
Channeling investments to outcome
community and educational • Drop in electricity demand
programmes to advance • Inability to be the electricity provider of choice
positive socioeconomic
impact
Rights of Indigenous People • Inability to keep pace with global ESG frameworks
• Unfavourable IBR regime implementation and
Engaging with Indigenous outcome
Peoples and respecting their
rights

Linking Performance to Global Agenda
We align our metrics, targets and key initiatives for each material matter with the global agenda. The table below showcases our performance thus far and
defines our future focus areas for our long-term sustainability commitment.
Metrics and Targets FY2021 Result Focus beyond FY2021
UN SDG 3 • Zero fatalities • Fatalities: 8 • Continue to enhance our Health

Good Health and • LTIF < 1.0 (2 employees, 6 contractors) and Safety procedures, and
Well-being • LTIF: 1.03 measures to reduce fatalities
and cases
We promote healthy living and
well-being of our people
UN SDG 4 • Number of students and • Number of students enrolled in • To improve our education
Quality Education trainees in TNB education and UNITEN: 6,681 students framework, facilities, and
learning centres • Number of individuals and TNB funding in supporting quality
• Expenditures on scholarships employees trained by ILSAS: education for all
We provide quality education and convertible loans 36,807 trainees • Enhancing digitalisation
and financial support to the • Number of scholarship and in education for a better
community convertible loans recipients: experience and reachability
10,039 students
• Spent on scholarships and
convertible loans: RM126.01
million
UN SDG 7 • Increase RE capacity to 8.3GW • Total renewable energy • Growing RE assets, both
Affordable and Clean by 2025, (including large hydro) generation capacity: 3,441.62MW domestically and internationally
Energy • Maintain System Average • SAIDI in Peninsular Malaysia at • Expanding Large Scale Solar
Interruption Duration Index 45.25 minutes/customer/year (LSS) and solar photovoltaics
We prioritise energy efficiency, (SAIDI) under 50 minutes/ • System Availability: 99.79% (PV) rooftop installations to
clean energy technology and customer/year through SAIDI 50 • Equivalent Availability Factor boost the solar manufacturing
related infrastructure initiative (EAF): 82.89% performance for sector
wholly and majority-owned • Optimising assets to enhance
power plants in Peninsular system and supply reliability
Malaysia which contributes to
• Transmission system minutes: affordability
0.086 minutes • Enhance GOTF to ensure grid
stability and security to support
variable RE
UN SDG 8 Decent • Tax and zakat contributions • Group Revenue for FY2021: • Sustain strong revenue growth
Work and Economic • Install 9 million smart meters RM52,629.50 million that subsequently leads to high
Growth across Peninsular Malaysia • Group Tax and zakat for FY2021: tax and zakat contributions
in phases under Advanced RM1,036.10 million • Reskilling employees to be
Metering Infrastructure (AMI) (excluding deferred taxation) well equipped for greater
We promote sustainable initiative by 2026 • Smart meters installed in digitalisation and automation
business performance and create FY2021: 1.8 million • Enhancing digital connectivity
employment opportunities to promote inclusive
development

Pages 128 - 179
Metrics and Targets FY2021 Result Focus beyond FY2021
UN SDG 9 • Allocate around 3.5% of our • Percentage of PAT for R&D • Formation of a centralised
Industry, Innovation PAT for our research and investment: 2.41% Technology Council in the end
and Infrastructure development (R&D) activities of FY2021 to manage R&D more
effectively
We build infrastructure, • Develop electric vehicle
and develop innovation to (EV) charging infrastructure
accommodate socio-economic nationwide
growth and low-carbon transition • Expanding on R&D and
of the nation innovation on clean and green
energy
UN SDG 10 • Increase the percentage of • Women in senior management • Continue to empower women
Reduced Inequalities women in senior management role: 23.1% employability and presence
role in management level through
talent and training programmes
We combat inequality regardless
of gender, race, religious beliefs
or economic status within our
organisation
UN SDG 13 • 35% emission intensity • Total GHG emissions mitigated: • Promote energy efficiency
Climate Action reduction by 2035, from base 7.96 million tCO2e • Assessment of Scope 3 GHG
year FY2021 • Total GHG emissions (Scope 1 emissions
• Halve coal generation capacity and 2): 39.99 million tCO2e
We support Malaysia’s by 2035 • Energy savings from 12 TNB
commitment to the Paris • Net zero emissions & coal free buildings: 8,092.20MWh
Agreement and seek to mitigate by 2050 • GHG emissions intensity:
our GHG emissions and 0.55 tCO2e/MWh
environmental impacts, as well as
adapt to climate risks
UN SDG 17 • Commit 1% of our PAT for • Percentage of PAT spent for • Strengthening partnerships
Partnerships for the community programmes community programmes: 1.02% and collaborations for
Goals • Total expenditure on • Total contribution to community community development and
community development development programmes: environmental management
We continue to form partnerships programmes RM39.57 million
with key stakeholders with • Establish a wide range of • Partnership with Ministry of
the objectives to meet future partnerships to promote Rural Development to provide
industry demands and contribute accessible and clean energy as electricity infrastructure in rural
positively to the environment and well as uplift the communities areas
the community

ESG Ratings
We recognise that sustainability is an ongoing journey to which continuous efforts are needed to support the global agenda in mitigating climate change
and achieving the SDG Goals. Various international rating agencies and analysts monitor and rate TNB’s sustainability performance based on different sets
of methodologies. These ESG ratings inform and influence the investor community as well as other interested stakeholders of TNB’s key sustainability risks
and opportunities as well as current performance. This year, for the first time, we have disclosed our key sustainability ratings so as to improve transparency
and credibility among our stakeholders. We at TNB aspire and are committed to strengthen these ratings in the near future.
FTSE4Good ESG Rating CDP

MSCI ESG Rating
This rating allows investors to assess a company’s CDP, formerly known as the Carbon Disclosure
The MSCI ESG Rating is designed to measure a
exposure to, and management of, ESG issues in Project, runs a global disclosure system to support
company’s resilience to long-term, industry material
multiple dimensions. companies, cities, states and regions to measure and
ESG risks as well as how well they manage those
manage their risks and opportunities on climate
risks relative to peers.
change, water security and deforestation.
TNB’s MSCI ESG rating Score FY2021 TNB’s FTSE Russell ESG Rating Score for FY2021 TNB’s CDP Climate Change Score for FY2021
BBB 3.0 D
Awards & Recognition
TNB has also received awards and recognitions over the years for its sustainability reporting and performance. TNB’s FY2021 recognitions include:
World Branding Australasian Reporting Awards Annual Reports Competition (ARC) National Annual Corporate Report
Award (ARA) International Awards Awards (NACRA)
Brand of the Year 2021 in the 14th edition Won a gold, silver, and special award Two gold and a silver award in the Gold award at the 2020 National
of the prestigious World Branding at the Australasian Reporting Awards 34th Annual Report Competition (ARC) Annual Corporate Report Awards
Awards by London-based World (ARA) 2021. International Awards, organised by (NACRA), which was jointly organised
Branding Forum (WBF). New York-based MerComm Inc. by Bursa Malaysia Berhad (Bursa),
• Gold awards for our Integrated Malaysian Institute of Accountants
TNB began receiving Brand of the Year Annual Report 2020. Previously, • Gold awards in the Non- (MIA) and the Malaysian Institute of
recognition for the “Energy-Power TNB was awarded gold in the year Traditional Annual Report Electric Certified Public Accountants (MCPA).
category in 2014 and received the 2017 and 2018, and bronze in 2016. Power Company and Interior
same award consecutively in 2018, Design: Electric Power Company
2019, 2020 and 2021. • Silver award in Sustainability categories,
Reporting.
• Silver award for Cover Photo/
• Special award for Health and Design: Electric Power Company
Safety Reporting. category.

Pages 128 - 179
BUILDING THE NATION
Related Material Matters Feature Story Supporting the Economic Recovery
• Business and Financial Performance Our Support in Facing COVID-19

• Reliable Energy and Fair Tariffs Over the past two (2) years, the COVID-19 pandemic has caused health, socioeconomic and humanitarian
• Customer Experience crises of unprecedented scale and impact. The imposition of a Movement Control Orders (MCO) disrupted
• Responsible and Ethical Business Practices the local economy with a domino effect of negatively impacting livelihoods, disrupting supply chains
• Cyber Security Management and upending businesses, while exacerbating inequalities, poverty and hardships – especially amongst
• Tax the most vulnerable groups. Nonetheless, we have begun to see the situation improving due to effective
vaccination programmes, conducive government support and policies, and the unity of Malaysians. As
the nation traverses through these difficult times, we at TNB are honoured to play our part to work hand-
in-hand with our stakeholders in accelerating the nation towards socioeconomic recovery.
Supporting Stimulating the Safeguarding Our

Our Response to
Customers and Economy Employees
COVID-19
Communities
Supporting the Customers and Communities

TNB has provided various forms of support to our customers and communities facing the adverse effects of the COVID-19 pandemic. In FY2020, we
collaborated with the Government of Malaysia to deliver relief packages such as Pakej Rangsangan Ekonomi 2020 (PRE2020), Pakej Rangsangan Ekonomi
Prihatin (PRIHATIN), Easy Payment Plan (EPP) and Bantuan Prihatin Elektrik (BPE). This year, we collaborated again with the Government of Malaysia to deliver
relief packages such as Pakej Bantuan Perlindungan Ekonomi dan Rakyat Malaysia (Pakej Bantuan PERMAI 2021), Program Strategik Memperkasa Rakyat dan
Ekonomi (PEMERKASA), Program Strategik Memperkasa Rakyat dan Ekonomi Tambahan (PEMERKASA Plus) and Pakej Perlindungan Rakyat dan Pemulihan
Ekonomi (PEMULIH). During the MCO, we also implemented:
i. Easy Payment Plan (EPP) for eligible residential customers until 31st December 2021
ii. No electricity supply disconnection

• During the Movement Control Order (MCO) 3 Phase 1 for all TNB customers
• Until 30th September 2021 for eligible Residential customers with arrears not exceeding six (6) months
Due to the challenges arising from the COVID-19 pandemic, together with the Government, TNB continued to proactively provide various forms of support to our
customers and the communities.

BUILDING THE NATION
Feature Story Supporting the Economic Recovery
Details of our FY2021 initiatives in supporting the National Recovery Plan (NRP):
Period Initiatives Description
1st January – 31st Easy Payment Plan Between 1st January 2021 to 31st December 2021, residential customers (Tariff A) were given the
December 2021 (EPP) Extended Relief flexibility to pay bills at 70% of the current charge amount. The remaining 30% of the charge will be
Package divided equally to be paid over a period from January 2022 to December 2022.
1st January – Pakej Bantuan The Government of Malaysia introduced Pakej Bantuan Perlindungan Ekonomi & Rakyat Malaysia
31st March 2021 Perlindungan Ekonomi (Pakej Bantuan PERMAI 2021). Under this package, six (6) selected commercial sectors that have
dan Rakyat Malaysia been severely affected by the COVID-19 pandemic received a 10% discount on their electricity bills
(Pakej Bantuan PERMAI from 1st January until 31st March 2021. The six (6) business sectors are: hotel operators, theme parks,
2021) convention centers, shopping malls, local airline offices and tour and travel agencies.
The electricity bill support initiative, which was first announced under the PERMAI package has now
been extended under the PEMERKASA and PEMULIH packages.
1st April – Program Strategik PEMERKASA is an extension of Pakej Bantuan PERMAI 2021, whereby the electricity bill discount of
30th June 2021 Memperkasa Rakyat 10% for hotel operators, theme parks, convention centres, shopping malls, local airline offices and
dan Ekonomi tour and travel agencies was extended for an additional 3 months until 30th June 2021.
(PEMERKASA)
1st July – Program Strategik PEMERKASA Plus provides an additional 3 months extension from the PEMERKASA package until
30th September Memperkasa 30th September 2021. Types of tariffs eligible for the discount are Tariff B, C1, C2 and Special
2021 Rakyat dan Agreements that have been approved by the Government.
Ekonomi Tambahan
(PEMERKASA Plus)
1st July – Pakej Perlindungan The electricity bill discount under the PEMULIH Package is given for a period of three (3) months for
31st December Rakyat dan Pemulihan electricity consumption from 1st July 2021 to 30th September 2021 for residential users (Tariff A) up to
2021 Ekonomi (PEMULIH) 900kWh per month and low voltage small and medium enterprises (SMEs). PEMULIH offered targeted
discounts to 9.1 million residential and non-residential users.
• 7.4 million residential customers enjoyed discounts between 5% to 40% for a span of three (3)
months. The rate of PEMULIH Electricity Discount for residential customers (Tariff A) in Peninsular
Malaysia as detailed below:
Electricity usage Total Residential PEMULIH Electricity
Electricity usage (RM)
(kWh) Customers Discount
1kWh - 200kWh RM43.60 and below 2.9 million 40%
201kWh - 300kWh RM43.93 - RM77.00 1.4 million 15%
• 1.6 million SME customers in the low voltage commercial, industrial, and specific agricultural
categories received a 5% discount.
Commercial consumers from the six (6) selected business sectors continued to receive 10% electricity
discount from 1st October 2021 to 31st December 2021 under the PEMULIH Package.

Pages 128 - 179
BUILDING THE NATION
Stimulating the Economy Collectively, these game-changers are expected to deliver a significant
The six (6) game-changers introduced in FY2020 lay out the key focal areas in economic impact between FY2021 to FY2030 by contributing an estimated
which TNB can influence and drive socio-economic revival: RM120 billion in Gross Domestic Product (GDP), and providing up to 4.5
• Catalysing the economy through Grid of the Future million skilled employment opportunities.
• Building a Global Solar Manufacturing Hub
• Raising National Competitiveness through Energy Efficiency Safeguarding Our Employees
• Making Malaysia the Electric Vehicle Hub for ASEAN As the major electricity provider of the nation with approximately 35,000
• Electrifying Mobility for Malaysia Advancing Connectivity for Our Digital strong workforce, we are dedicated to ensure that the occupational health
Economy and safety of our people is of utmost priority and not jeopardised in ‘keeping
• Reskilling Malaysia by Embracing the Future of Work the lights on’, even in the midst of a pandemic. Consequently, the following
measures and controls have been implemented:
Initiative Our Approach Our Performance in FY2021
TNB COVID-19 Vaccine • Promote, campaign and create awareness amongst employees to register 99% of warga TNB are fully vaccinated.
Management Task for vaccination, and address concerns raised by employees related to
Force (CVTF) vaccination.
• Plan, implement and monitor the vaccination enrollment for TNB
employees.
• Coordinate with existing Pusat Pemberian Vaksin (PPVs) and closely
monitor the vaccination availability and progress of TNB employees.
• Work closely with relevant agencies to coordinate the purchase of
vaccines for TNB employees.
• Responsible to periodically report vaccination progress in TNB to senior
management.
Business Continuity Strategic Actions We have invested more than RM21.4

Management • Protocols were implemented to monitor employees who tested positive million towards our COVID-19 Pandemic
Crisis Response Team for COVID-19, while contact-tracing procedures were deployed. Management initiatives including:
(BCM-CRT) • PPE has been made available to all TNB employees, with priority given to
our frontliners which include personnel in Kedai Tenaga, meter readers, • Special Ex-Gratia for 14,544 TNB
and security officers at our premises. employees during MCO: RM7.27
• Work-from-home initiative was implemented, where applicable, to million.
continue operations safely and remotely.
• Masks, face shields, hand sanitisers
Communicating with Our People (84,635 boxes of facemask and 95,726
• Frequent communication to all employees on COVID-19 information and bottles of hand sanitiser distributed
safety measures. to divisions).
• Access to counseling services for employees who face mental health
challenges and personal struggles during this period. •
Building disinfection and preparatory
• Webinars focused towards maintaining mental and physical well-being measures:
while working from home. RM570,400.00.
Standard Operating Procedures (SOPs) •

COVID-19 self-test kits for our
• TNB has established and launched the Employee Self Health Declaration employees:
(ESHD) portal, a daily health check-in platform to monitor our people’s RM2,585,679.29.
well-being.
• Clear SOPs to promote good personal hygiene and social distancing are • Food and general supplies to
consistently communicated and made accessible to all employees. 1,847 TNB staffs due to COVID-19
quarantine.

BUILDING THE NATION
Sustainable Infrastructure and Ecosystem Sustainable Business Expansion
The ASEAN region is gearing towards energy transition through efficient During the COVID-19 pandemic, Renewable Energy (RE) proved to be a fast
equipment and digitalisation of the electricity sector. TNB, in tandem growing source of energy as it gained global market share amidst the volatile
is seeking to digitalise the electricity infrastructure to improve power supply and demand dynamics. In this regard, the international market offers
security and adopt cleaner energy generation sources in future. abundant opportunities for renewables growth and strategic partnerships.
Generation Fuel Mix Green Energy Growth

TNB’s generation fuel mix is dependent on the Peninsular Malaysia Our TNB International Asset Group (IAG) division has been restructured
Generation Development Plan determined by the Planning and into New Energy Division (NED) to focus purely on RE asset management,
Implementation Committee for Electricity Supply and Tariff (JPPPET), partnerships, and growth initiatives. The restructuring involved reorganisation
which is chaired by the Ministry of Energy and Natural Resources (KeTSA). of departments within NED to drive strategic partnership, greenfield projects
This plan is developed based on the underlying principle of balancing the and business development in the RE space. NED streamlines our RE platform
security of electricity supply, affordability and environmental sustainability. to platforms and oversees two key entities: Vantage RE operating out of
the UK to focus on UK and Europe markets, and TNB Renewables based in
In balancing the energy trilemma, the Generation Development Plan will be Malaysia, to focus on the domestic and Southeast Asia markets.
based on a guiding principle of optimum fuel mix to achieve a Herfindahl-
Hirschman Index (HHI) of less than 0.5. This would ensure optimum power Our RE growth strategies focus on the following ambitions:
security by providing adequate diversification of fuel and resources.
1. Leveraging existing assets, capabilities and experience to expand within
The Malaysian Government, ahead of COP26, pledged in its 12th Malaysia UK before entering European RE markets.
Plan to be a carbon neutral country by as early as 2050, and has made a 2. Grow utility business within South East Asia (SEA) region with RE as
number of commitments to reach that goal, including a commitment to market entry point, before venturing into other parts of utility value
stop building new coal-fired power plants. Hence, the coal generation mix chain.
is expected to reduce significantly over the years.
In the domestic renewables industry, we continue to develop renewable
energy generation and market distributed generation solutions including
PENINSULAR MALAYSIA GENERATION FUEL MIX FY2021 rooftop solar photovoltaic (PV) panels, mini hydro, biogas and waste-to-
energy plants through existing programs such as Feed-in Tariff (FiT) and Net
0.88% Energy Metering (NEM).
5.43% 0.15% Coal
Gas Our Focus Description and FY2021 Highlights

Large Scale Solar • To date, TNB operates 50MWac and 30MWac large
Hydro
scale solar farms in Sepang, Selangor and Bukit
Solar Selambau, Kedah respectively.
34.34%
Others GSPARX • TNB’s fully owned subsidiary, GSPARX, focuses on
rooftop solar solutions.
59.20% • To date, a total capacity of 116.3MW has been
secured as compared to 81MW in 2020.
LSS4 Solar Farm • TNB Renewables Sdn Bhd is one of the winning
bidding bidders to develop 50MWp solar farm.
Hydroelectric Power • In November 2021, TNB announced the RM5 billion
In line with the nation’s aspiration to expand renewable energy capacity Plant construction of a 300MW hydroelectric project
and reduce power sector carbon emission intensity of GDP by 45% and in Nenggiri, Gua Musang which is expected to
commence commercial operations in 2027.
60% in 2030 and 2035 respectively, we have projected an increase in low-
carbon fuel and RE by 2035.
For more information, please refer to Customer Centricity - Empowering customers towards
For more information, please refer to Our Response to Climate Change - Expand renewable energy transition, pages 148.
assets within Malaysia, ASEAN, and Europe, pages 156.

Pages 128 - 179
BUILDING THE NATION
Ensuring Reliable Electricity Supply
Internationally, we have a presence in energy-related assets in countries High reliability and quality of electricity supply remain a key factor to
such as Turkey, Kuwait, Saudi Arabia, Pakistan, and the United Kingdom support the national economic recovery post-pandemic. Despite the
(UK). Our growth strategy focuses on markets in the UK, European and South challenges faced in 2021, TNB continues to prioritise improvement of our
East Asia region emphasising on RE assets and technologies to enable our business operations to provide reliable electricity across the value chain.
energy transition. We target to achieve a total of 8.3GW RE globally by 2025,
comprising 5.2GW RE internationally and 3.1GW domestically. Business Continuity Management
Business Continuity Management (BCM) practices are established to
Key Initiatives Descriptions safeguard human lives, assets and the environment in a crisis or disruption,
both natural and technological. TNB’s BCM Framework is the basis on
Setup Vantage RE In July 2021, formed Vantage RE to drive RE growth
which divisions, including power plants, customise and implement their
in the UK and European market.
respective business continuity and emergency response plans. The
Partnership with In October 2021, we developed a strategic effectiveness of these plans are tested at each level of the organisation, from
Électricité de partnership with EDF through acquisition of 49% corporate headquarters to zones and states. Drills were conducted with
France (EDF) stake in EDF’s UK offshore wind farm company (Blyth various scenarios such as wide-area electricity disruptions, cyber security
Offshore Demonstrator Limited (BODL)). The wind intrusions, floods and pandemic. Our Cyber Security Operating Model, ISO
farm has been in operation since 2017 under the 27001:2013 Information Security Management System (ISMS) and Payment
Renewable Obligation Certificates (ROC) subsidy Card Industry Data Security Standard (PCI DSS) certification are also in place
regime that is expected to provide stable revenues. to ensure the confidentiality, integrity and accessibility of TNB’s information
are well protected.
BODL currently owns offshore wind assets including
five turbines with a total installed capacity of Asset Optimisation
41.5MW and further development rights for a Grid of The Future, one of the four RT pillars, is an essential strategy for us
floating offshore wind project of up to 58.4MW. to strengthen our position in the energy transition. The integrated strategy
Divestment TNB continues to streamline its international on advancing and digitalising our distribution network system allows us
portfolio and seeks to monetise assets in non- to accommodate increased renewables in providing sustainable energy
focus markets such as the India and Pakistan, as solutions. Grid modernisation initiatives optimises our assets to improve
seen in the divestment of compulsory convertible power distribution system reliability and efficiency while also paving the
debentures (CCD) issued by India-based GMR way for adoption of new disruptive technologies such as bi-directional
Bajoli Holi Hydropower Private Ltd, and TNB Power power flows from distributed generation, grid storage, and smart meters.
Daharki Ltd in Pakistan.
Our Asset Management Plan is ISO 55001:2014 Asset Management
- Management Systems – Requirements certified. The Plan charts a
OUR PERFORMANCE FOR FY2021 roadmap to achieve the greatest value from physical assets while the Asset
Performance Management System focuses on the management of the
31.06 10 asset’s entire lifecycle.
80 3.2 Large Hydro
Solar (LSS)
Key Initiatives Descriptions
Asset Performance Enables visualisation and analysis of asset

Mini Hydro
Local RE Management System health index in real-time, enabling risk-based
(MW) (APMS) – Phase 2 maintenance and reduced core transmission
Biomass
expenditure. Phase 2 (2022-2023) is expected
Biogas to provide data modelling for asset analytics
2,602.96 and allow full asset class analysis to be done
by substation bay.
137.8 Asset Investment Analyses and evaluates options and viability

Planning for investment in new assets to increase
Solar Management (AIPM) system capability, reliability, and availability.
International
UAV LiDAR System Developed an automated detection
RE Wind
(MW) system to ensure the selection of proposed
391
Hydro transmission line routes will avoid sensitive
185.6
and/or endangered species during planning.
Note: From operations in which TNB has controlling stake

BUILDING THE NATION
Ensuring Reliable Electricity Supply
Key Initiatives Descriptions
Substation Repair & Maintenance (R&M) Substation R&M works via drone inspection will reduce high-risk work, enhance team safety and promote
Process Optimisation new ways of working. This initiative is part of the journey towards increasing efficiency and productivity.
Advance Automatic Fault Analysis Provides automatic detection and detailed fault analysis to improve decision making during unplanned
System (AFA) outage and restoration processes.
Substation Digital Intelligent Development of an open data platform to provide ready access to quality real-time data.
Infrastructure (SDII)
Defense Plan Infrastructure Sustains transmission network stability and availability during disturbances and other power system
Previously reported as Wide Area Monitoring contingencies.
System (WAMS) is now incorporated as part of the
Defense Plan Infrastructure
Advanced Distribution Management Supports the full suite of distribution management optimisation.
System (ADMS)
Distribution Automation (DA) Enables remote monitoring and control of network assets to improve CAIDI and SAIDI.
Distributed Generation (DG) Infra Infrastructure that enhances network visibility, transparency, and reliability for all DG connectors.
Pelan Jalinan Digital Negara (JENDELA) Increases accessibility of high-speed broadband services.
Volt-Var Optimisation (VVO) Manages system-wide voltage levels and reactive power flow to enhance network efficiency and reduce
power losses.
Turnaround Programme Unlocks asset potential and enhances the performance of TNB’s power plants.
Our Performance for FY2021
EQUIVALENT AVAILABILITY FACTOR (EAF) EQUIVALENT UNPLANNED OUTAGE FACTOR (EUOF) TRANSMISSION SYSTEM MINUTES
(%) (%)
2018 88.93 2018 3.84 2018 0.348
2019 81.77 2019 7.97 2019 0.271
2020 87.39 2020 6.65 2020 0.081
2021 82.89 2021 7.85 2021 0.086
PERCENTAGE OF SYSTEM AVAILABILITY SYSTEM AVERAGE INTERRUPTION DURATION SYSTEM AVERAGE INTERRUPTION FREQUENCY
(%) INDEX (SAIDI) INDEX (SAIFI)
2018 99.79 2018 48.22 2018 0.86
2019 99.78 2019 48.13 2019 0.83
2020 99.78 2020 44.95 2020 0.80
2021 99.79 2021 45.25 2021 0.78
Note: For TNB operations in Peninsular Malaysia

Pages 128 - 179
BUILDING THE NATION
Customer Centricity
Customers remain at the heart of our business as

our top priority to serve our customers with reliable, CUSTOMER INTERACTION
affordable, and sustainable services and solutions.
We aim to do so through continuous and effective Digital Non-Digital (Kedai Tenaga & etc)
customer engagements and offering innovative
solutions.
2018 77.92% 22.08%
Flood Relief
In December 2021, Peninsular Malaysia was hit by 2019 79.10% 20.90%
devastating flash floods. Nevertheless, we did our
best to keep the lights on for the nation by supplying
2020 87.00% 13.00%
electricity to Pusat Permindahan Sementara (PPS) via
portable generators.
2021 89.90% 10.10%
To alleviate the financial burden of our customers,
TNB offered a one-off 100% rebate for the electricity
bill to 148,336 residential customers affected by Additional digital customer solutions that TNB implemented in FY2021 include:
floods amounting to RM15.06 million. We also
provided RM2 million in monetary aid to victims of • TNB Temujanji was introduced in September 2021 to empower customers to make an
the flash floods via our Tabung Warga TNB Prihatin appointment to any Kedai Tenaga based on their preferred time and date
(TWTP). • Guaranteed Service Level (GSL) Rebate was rolled out nationwide to allow customers to claim
GSL rebates and track compensation payments via the myTNB app
After the water subsided, we carried out free wiring • Digital Solution for Overvoltage Claim (OVIS) was rolled out to eight (8) business areas to enable
inspections at B40 homes in Selangor, Pahang, and customers from targeted areas to request for overvoltage claim via the myTNB app and myTNB
Kuala Lumpur to ensure the safety of the community web portal
that were affected by the floods.
For more information on our TWTP, please refer to our Feature

Feedback on our myTNB app achieved an impressive 88.25% of 5 Star ratings from a total of 1.7 million
Story – Together with You, page 173. feedback received in FY2021 as compared to the 86% of 5 Star ratings from 396,286 feedback received
in FY2020. The number of customers registered on the web and app has also increased in FY2021 to
Customer Engagement 1.39 million and 5.57 million respectively compared to FY2020 being 1.27 million and 3.11 million
In FY2021, we improved our three (3) main respectively. The number of downloads of the myTNB mobile application increased to 3.77 million
interaction channels from “Click, Call & Come Over” in FY2021 compared to only 1.97 million in FY2020.
to “Click, Call, Come Over & Go Over” to enable us
to proactively meet and engage with our customers Customer Satisfaction
while strictly adhering to safety measures set in TNB has achieved 87% in our Customer Satisfaction Index (CSI) for FY2021, a new all-time high score
place to prevent the spread of COVID-19. from 86% in FY2020. This is our second consecutive year achieving our target CSI score of between
82% to 86%.
As a result of both the pandemic and digitalisation,
TNB continued to see an increase in digital
interactions with our customers in FY2021. Customers
CUSTOMER SATISFACTION INDEX (CSI)
were encouraged to use our digital platforms
such as the myTNB mobile application and myTNB
web portal which provides excellent customer
experience and support to conduct payments and
2018 81%
view bills. However, appointment booking for Kedai
Tenaga visit was also made available through the
2019 81%
myTNB web portal for customers who prefer to
conduct physical transactions.
2020 86%
2021 87%

BUILDING THE NATION
Customer Centricity
Safeguarding Customer Privacy

TNB constantly strives to improve user experience and protect data privacy of customers. To date, we have received zero complaints from third parties or
regulatory bodies regarding data privacy breach by ensuring that we are compliant with relevant regulations, including the Personal Data Protection Act
(PDPA) 2010. Strict security controls are also in place to protect customers’ data privacy such as our Cyber Security Operating Model, Personal Data Protection
Policy, and the use of Payment Card Industry Data Security Standard for online transactions. Overall, we maintain vigilant against the risk of unlawful access
and use of our customers’ data.
Empowering customers towards energy transition

At TNB, we recognise that the journey towards transitioning to cleaner sources of energy is one that the nation must embark on together. As a key electricity
and utilities provider, we empower our customers to join the energy transition journey and become prosumers through a variety of innovative products and
programs. Our FY2021 key highlights are as below:
Initiatives Descriptions Our Performance in FY2021
Feed-in Tariff (FiT) A mechanism for RE asset owners to export solar energy produced to TNB grid at 9,481 FiT projects have been
Programme a fixed price. commissioned with an installed
capacity of 533.77MW.
Net Energy Allows customers in Peninsular Malaysia to export excess energy produced from 11,792 NEM participants making up a
Metering (NEM) their solar PV systems back to the grid. total capacity of 794.19MW.
Scheme
Malaysia Malaysia Green Attribute Tracking System (mGATS) is a national marketplace for In FY2021, 612,361MWh of mRECs has
Renewable Energy Malaysia Renewable Energy Certificate (mREC). Sales of unbundled RECs from LSS been contracted.
Certificate (mREC) and hydroelectric plants stopped in November 2021 to make way for the new
Green Electricity Tariff (GET) programme.
Green Energy Tariff myGreen+ is a green energy tariff program which allows customers the option to 256 customers subscribed to
(myGreen+) purchase green energy without having to spend on the high initial investment of 253.30MWh of RE electricity in FY2021
rooftop solar or other forms of RE system installations. Subscriptions are currently through myGreen+.
sold in 100kWh blocks of RE electricity at 8 sen/kWh.
Moving forward, this initiative will be replaced by GET.
Green Electricity This programme was introduced as an option to enable electricity consumers to Subscriptions for GET programme
Tariff (GET) indirectly purchase green electricity without having to spend on the high initial began on 1st December 2021 for
investment of RE system installations. early reservation and will officially
commence on 1st January 2022. As of
All consumers are eligible for the GET programme which is available in 100kWh 31st December 2021, 232,368MWh has
blocks for residential consumers and 1,000kWh blocks for non-residential been subscribed.
consumers at a rate of 3.7 sen/kWh.
Consumers enrolled in GET programme will receive internationally recognised

mREC after the end of a calendar year.

Pages 128 - 179
BUILDING THE NATION
Initiatives Descriptions Our Performance in FY2021
Rooftop Solar PV TNB’s fully owned subsidiary, GSPARX focuses on solar solutions. GSPARX allows In FY2021, GSPARX clinched 49
(GSPARX) customers (residential, commercial and industrial) to install solar PV at zero new contracts with a total installed
upfront cost and enjoy savings via self-consumption. capacity of 35.3MW. This increased
the cumulative secured capacity to
116.3MW.
Supply Agreement TNB offers SARE, a tripartite agreement between TNB, solar PV investor and In FY2021, 368 contracts were
for Renewable customer. SARE enables single convergence billing to customers for energy taken secured by commercial and industrial
Energy (SARE) from TNB grid and the solar PV system. Currently, SARE is offered to commercial, customers through SARE. This
industrial and government sectors in Peninsular Malaysia. resulted in a total SARE contracted
capacity of 127.66MWp.
We have also taken steps to increase energy efficiency awareness among our customers through key initiatives:
Initiatives Descriptions and Performance in FY2021
Sustainability • We supported the Government through the promotion of the SAVE 2.0 programme which offers RM200 e-rebate vouchers
Achieved via Energy to help customers purchase 4 or 5 Star labelled energy efficient home appliances.
Efficiency (SAVE) 2.0
Energy Efficiency • We collaborated with NGOs to spread awareness on energy savings to school teachers and children.
Awareness • We also supported the ‘Let’s Stay Home, Be Energy Efficient’ competition by Sekolah Kebangsaan Seri Rejo Sari to encourage
Programmes the younger generation to embrace a more sustainable lifestyle.
• TNB collaborated with Kelab Duta Rimba to organise the Electrical Energy Efficiency Awareness Competition which was
participated by 1,562 students nationwide.
Energy Efficiency • In FY2021, a total of 32 energy efficiency online talks were given to various residential and commercial consumers including
Online Talks government association and schools throughout Malaysia.
Energy • TNB Energy Services Sdn Bhd (TNBES) was awarded two (2) EPC projects with Institut Teknologi Petroleum PETRONAS
Performance (INSTEP) and Penang International School (UPLANDS) to improve Energy Efficiency (EE) through investments in energy
Contracts (EPCs) efficient equipment until FY2030.
• The expected annual energy savings from the two (2) EPC projects is approximately 473,402kWh, that is equivalent to 30.3
tCO2e of GHG emission reduction.
Advanced Metering Infrastructure (AMI)

AMI is an integrated and intelligent system that includes smart meters. Its well-equipped digital features provide near real-time data through our myTNB web
portal and mobile app that customers can use to monitor and manage their electricity usage, hence potentially leading to cost savings. Customers with smart
meters will also have access to the myTNB app and Smart Meter Web Portal which provides insights to their energy consumption in half-hourly energy usage
analysis.
We reached our FY2021 target to install 1.5 million smart meters earlier in September 2021. With approval from the Government, we increased our target to
1.8 million smart meters installation, and successfully installed 1,836,919 smart meters in FY2021, with the latest batch being installed in KL Timur, KL Selatan,
Langkawi, Kuala Nerang and Ipoh. Beyond 2021, we target to install 7.5 million smart meters nationwide throughout the Regulatory Period 3 and beyond.

BUILDING THE NATION
Sustainable Supply Chain
TNB intends to establish a Sustainable Supply P&SC Transformation Programme

Chain ecosystem by integrating digitalisation into We are improving our procurement operating model with the introduction of P&SC 2.0
its procurement process. Digital transformation of Transformation Programme launched in July 2021, leveraging on digitalisation and nation-
business process helps to improve efficiency and building agenda. We develop long-term and meaningful relationships through supplier ecosystem
reduce time consumed in manual processing. development program, the Corporate Strategy for Vendor Relationship (CSVR). We optimise value
delivery and productivity enabled by future-proof capabilities and platforms to deliver higher
We support the development of Malaysia’s performance.
business ecosystem by channelling over 98% of our
procurement spend to local suppliers. We reinforce Key Initiatives Descriptions
ethical business practices in our suppliers who have
to abide by TNB Procurement Code of Conduct, Procurement Connected Digitalises planning for procuring, delivery and
Procurement & Supply Chain Policy and Procedures, Planning (PCP) improvements of material and service availability.
Integrity Pact and Anti Fraud and Bribery Policy.
Procurement Cycle Facilitates and guides the end-to-end Procurement
Our wide supply chain network requires us to
Digitalisation (PCD) Lifecycle process via Business Process Management
continuously engage with our suppliers to improve
System.
their ESG practices on various aspects such as health
& safety, environmental stewardship and integrity. Robotic Process Automation Automate business processes to enhance integrity,
(RPA) productivity and efficiency in Purchase Order (PO) award
rotation, contract-to-buy, stock transfer order, product
Our Performance for FY2021 inspection management and material availability
notification.
TOTAL SPENT ON PROCUREMENT
(RM BILLION)
Sistem Maklumbalas Bahan Product and service quality management system.
(SMB)
Local Suppliers International Suppliers
LAPASAR Business platform which allows users to purchase supplies
from a listing of more than 2,000 items (increased from
1,000 from previous year).
2018 9.39 0.11
Contractor and Supplier Provides a centralised platform to evaluate and monitor
2019 9.81 0.10 Evaluation (CASE) the performance of contractors and suppliers from
Purchase Order (PO) Issuance to works completed.
2020 7.06 0.09 TNB Rates and Cost Engineering The platform to standardise rates, Bill of Quantity (BQ)
(TRACE) 1.0 and technical specifications through automation in digital
2021 9.82 0.21 platform replacing the existing manual method.
Vendor Engagement Programme

We continue to engage with our vendors and stakeholders through various programmes and
platforms:
TOTAL NUMBER OF SUPPLIERS

(NO.) TNB Open Day Vendor programme Engagement TNB Procurement
for vendors and Memorandum of Session with & Supply Chain
Total number of Total number of contractors Understanding with Suruhanjaya Tenaga Teh Tarik Session
local suppliers international suppliers
MEDAC (Ministry (ST), Persatuan with vendors and
of Entrepreneur Rakan Niaga contractors
2018 3,402 55 Development and Strategik Malaysia
Cooperatives) (PERNISMA), and
2019 3,067 57 Persatuan Usahawan
Tenaga Malaysia
2020 3,390 52 (PUTM)
2021 3,123 115

Pages 128 - 179
ENVIRONMENTAL SUSTAINABILITY
In line with our Sustainability Pathway 2050 (SP2050) aspiration, TNB is driven to reach the target of reducing 35% of emissions intensity and 50% of coal generation capacity
by 2035.
Related Material Matters Feature Story Shaping TNB’s Net Zero 2050 Aspiration
• Climate Change and Energy Efficiency As a national electricity utility company, TNB is responsible to ensure reliable supply and delicately
• Energy Transition and Innovation balance socioeconomic considerations and conservation of the environment within our sustainability
• Environmental Management strategy. A robust sustainability plan will enable TNB to stay ahead of industry disruptions, centered
• Natural Resource Consumption on decarbonisation, decentralisation, digitalisation and deregulation while managing the interests
• Waste Management and concerns of our multi-stakeholders.
• Biodiversity Management
TNB’s SP2050 which was unveiled in 2021, sets out our green ambition to achieve net zero emissions by
2050. In addition, we have also pledged to ensure our revenue from coal generation plants does not
exceed 25% of our total revenue. To this end, RE will play a critical role in driving our energy transition
and decarbonisation efforts up to 2035, while emerging green technologies become commercially
viable in the 2030s.
SP2050 was shaped through an iterative process that involved multiple strategic internal and external
stakeholder engagements with our leadership team and Board of Directors, employees and unions,
investors, and government, amongst others. The stakeholder engagements discussed the many
challenges we will undoubtedly face to decarbonise from our current coal-dependent business
model and strategies that we will deploy to achieve our net zero aspiration.

TNB’s Sustainability Pathway spans over 30 years to become net-zero emission by 2050
Our Target for 2025 Our Commitment for 2035 Our Aspiration for 2050
Build scale in Significant renewable Invest and grow our emerging
renewable generation and generation growth and 50% green technologies including
improve thermal plant reduction in coal generation hydrogen and carbon capture
efficiency capacity & utilisation (CCU)
2016 2025 2035 2050

Our energy TNB’s renewable energy (RE) Emission intensity reduction Aspire to achieve net zero
transition journey target of 8,300MW with an of 35% emissions and be coal-free by
started here acceleration of RE investments Reduction of coal capacity by 2050
towards 2050 50%
• TNB targets not to take any new stakes in new coal plants and will honour the existing power purchase agreements
• In tandem, TNB intends to significantly ramp up its RE generation portfolio on the path to be coal-free by 2050
• To achieve net zero, TNB will accelerate investments in emerging green technologies (eg. green hydrogen, CCU) - as soon as it becomes economically
viable
As a part of SP2050, we have identified three (3) strategic pillars to drive our efforts towards mitigating climate change and achieving our net zero aspiration.
For more information, please refer to Our Response to Climate Change - Strategy and Risk Management, pages 153 to 158.
Our Response to Climate Change
Task Force on Climate-related Financial Disclosures (TCFD)
Core Elements of Recommended Climate-Related Financial Disclosures
Governance Governance of climate-related

risks and opportunities
Actual and potential impacts
of climate-related risks and
Strategy
opportunities in the business,
strategy, and financial planning
Risk Processes to identify, assess,
Management and manage climate-related
risks and opportunities
Metrics and targets to assess
Metrics &
and manage identified climate-
Targets
related risks and opportunities
The imminent threats of climate change will impact not only our business sustainability but also the wider economy and well-being of the
community. We believe that every one of us will need to play a role in transforming and decarbonising the energy industry.

Pages 128 - 179
TNB has voluntarily adopted the TCFD framework since 2019 to address potential climate-related physical and transition risks and opportunities on our
business strategy and resulting financial impact. Aligned with the recommendations of TCFD, TNB completed our first climate change scenario planning in
2021 to identify the risks, opportunities and strategies associated with 4°C and 2°C warmer scenarios. Correspondingly, our disclosure narrate our undertaking
across the four (4) core elements recommended by TCFD.
Governance Strategy and Risk Management
The Board is committed to strategically integrate sustainability across TNB leverages its Risk Management Framework to identify, assess and
TNB’s business and advancing our sustainability efforts, including climate manage enterprise risks. Climate-related risk has been identified as a
change. TNB’s Board will deliberate and approve the sustainability strategy strategic risk to TNB and is being addressed within our ERM Framework.
and pathway while overseeing TNB’s implementation and performance on On top of the ERM Framework, climate-related risks and opportunities are
sustainability - these include the materiality assessment, the scenario analysis managed by ISO 14001:2018 Environmental Management System.
study and SP2050. The SDC and respective Management Committees are
responsible for managing sustainability and climate risks and opportunities We recognise that both climate-related risks and opportunities have
as well as monitoring performance of related initiatives rolled out by TNB, the potential to impact our business. The task force has divided climate-
with oversight by the Board. TNB’s Sustainability Governance outlines clear related risks into two (2) major categories: (1) risks related to the transition
roles and responsibilities in relation to sustainability and climate change for to a lower-carbon economy; and (2) risks related to the physical impact of
each level of leadership. climate change.
The Board Risk Committee (BRC) oversees the establishment and TNB conducted our inaugural climate change scenario analysis based upon
implementation of the risk management framework that is embedded 2° and 4° warmer external scenarios with two (2) pathways modelled:
into the culture, processes and structures of the Group and is responsive to • A net zero pathway adopting hydrogen technology; and
changes in the business environment. Sustainability and climate risks are • A Nationally Determined Contribution (NDC) pathway focusing on low-
included as part of the enterprise risk management process. carbon gas as a bridge fuel.
Moving forward, the Corporate Strategy and Sustainability function will Through our Seeding Fund research project titled Climate Change Action
monitor and report performance against the SP2050 targets and aspiration towards TNB’s Business Resiliency, we have identified nine (9) transition risks
alongside business performance. and five (5) transition opportunities together with the expected exposure
over the short-term (2030) to long-term (2050) horizon. Overall, TNB will
Principles to guide climate action, particularly on GHG emissions, are have high exposure to most transition risks identified by 2050 and this will
covered under our Environmental Policy, Environmental Management need to be addressed via TNB’s Strategic Pillars to ensure TNB maintains it
System, Sustainability Energy Management (SEM) Framework based on the competitive edge and remains resilient.
ISO 50001:2011 Energy Management System, ASEAN Energy Management
For more information on risk management, please refer to our Statement on Risk Management
System (AEMAS) and Grid Green Code of Conduct. and Internal Control, pages 118 to 122 and What Matters Most section, pages 34 to 137.
For more information on sustainability governance, please refer to Strong Leadership and
Governing Responsibly - Governance Structure, pages 131.
NET ZERO1 NDC2
Transition Risks 2030 Shift 2050 2030 Shift 2050
Carbon price
Introduction of carbon pricing mechanisms.
Stranded assets
Assets that have suffered from unanticipated
or premature write-downs or devaluation.
Divestment
Investment sell-off.
Talent
Requirement to upskill and reskill talent to navigate new technologies.
Reduction in market share

Changes in market demand or consumer sentiment.
Shift in customer behavior

Changing of customer behavior or preferences.

NET ZERO1 NDC2
Transition Risks 2030 Shift 2050 2030 Shift 2050
Low carbon technology

Deployment of low emissions technology.
Emissions reporting obligations

Emissions data monitoring, tracking and reporting.
Exposure to litigation
Fines and judgements driven by environmental and climate activism.
Legend: Risk exposure is low Risk exposure is moderate Risk exposure is significant Risk exposure is high
NET ZERO1 NDC2
Transition Opportunities 2030 Shift 2050 2030 Shift 2050
Electrification
Introduction of EV policy aimed at increasing EV uptake.
Renewable energy growth

Acceleration of renewables expansion.
Low carbon options

Opportunities for beyond kWh solutions.
Shift towards decentralisation

Increasing of system efficiencies.
Diversification of business activities

Diversifying business activities through new technologies and innovation.
Legend: Opportunities exposure is low Opportunities exposure is moderate Opportunities exposure is high
Note:
1. Net Zero Scenario is aligned to commitments countries are making, going beyond NDCs to achieve Net Zero Emissions by 2050 and restrict warming to well below 2°C (i.e. Paris Accord).
2. Nationally Determined Contributions (NDCs) is based on the trajectory associated with global commitments that are aligned to current Nationally Determined Contributions (NDCs) to limit the impact of climate.
Physical climate scenario modelling was carried out for three (3) power plants (Janamanjung - Stesen Janakuasa Sultan Azlan Shah Southern Power Generation
- Sultan Ibrahim Power Plant) and a selection of 100 substations as a start. The scenario modelling analysed climate-related failure and damage risks at each
grid point of the asset sites selected to identify the spatial distribution of the eight (8) climate risks across each site.
The summary of the outcome of the scenario modelling for TNB’s assets are as follows:
• 100 substations: Riverine flooding is the dominant hazard
• TNBJ: Coastal inundation is the clear dominant hazard
• SPG: Coastal inundation is the dominant hazard. Surface water flooding is the next most significant hazard
• SJ Sultan Mahmud: Riverine flooding is the dominant hazard

Pages 128 - 179
The physical risks impact of these assets range from low to high in the long-term horizon, i.e. 2050 as shown below:
IPCC RCP 8.5/4°C3
SJ
SULTAN
Physical Risks 100 substations TNBJ SPG MAHMUD
Coastal Inundation
Rising sea levels and higher incidence of extreme sea events.
Extreme Wind
Changes in wind regimes, sea surface temperature and wind speeds.
Forest Fire
Increased incidence of fire weather due to confluence of days with higher temperatures,
high wind speeds and drier conditions.
Riverine Flood
Increased frequency and intensity of rainfall changing the frequency and intensity of river
flooding.
Soil Movement
Changes in rainfall patterns and drought.
Surface Water Flooding

Increased frequency of extreme rainfall leading to floods.
Freeze Thaw
Changes in the annual freeze and thaw cycles resulting from winter periods that trend
close to freezing point.
Heat
New extremes of high temperatures, more frequent hot days and longer-lasting heatwaves.
Legend: Risk exposure is low Risk exposure is moderate Risk exposure is high
Note:
3. A high emission scenario (or ‘business as usual’) as defined by the Intergovernmental Panel on Climate Change (IPCC).
In response to the climate risks and capitalising on future opportunities in the energy sector, TNB’s carbon mitigation strategy is largely focused upon three
(3) strategic pillars of the SP2050 to ensure its resilience against the modelled pathways.
Invest in Low Emission &

Green Technologies
SP2050
Three (3)
Strategic Pillars
Evolve the Grid and Unlock New Energy

Grow Renewables Revenue Streams

Strategic Pillar 1: Invest in Low Emission & Green Technologies

Our Approach Key Highlights and Performance for FY2021
a) Reduce or eliminate emissions • TNB has committed to no longer investing in greenfield coal plants with Jimah East Power Plant, which
from current generation fleet was commissioned in 2019 being the last coal plant in TNB’s generation portfolio. Existing plants will be
phased out upon expiry of their Power Purchase Agreements (PPA).
• We also invest in asset optimisation programmes to further reduce emissions from our current generation
plants and adopting the latest advancement in technologies for our newest plants.
For more information on optimised assets, please refer to Ensuring Reliable Electricity Supply, pages 144 to 145.
b) Invest in Research and • In anticipation of this growing need, we are allocating 3.5% of our forecasted PAT for our R&D activities
Development (R&D) and from FY2022 onwards. This R&D funding will be strictly managed and monitored by the newly established
alternative green energy Technology Council, which is chaired by CEO.
sources
TNB’s future emerging technology focus areas:
Wind Solar Green Energy Electric Smart

Turbine Panel Hydrogen Storage Mobility City
For more information on R&D, please refer to Intellectual Capital section, pages 50 to 51 and Innovation & Research and Development, page 160.
c) Leveraging on partnerships • TNB’s collaboration with EDF Renewable enables us to benefit from their extensive experience in offshore
and collaboration wind sector across our focus markets - UK, Europe and Southeast Asia regions.
• TNB participated in a joint study into co-firing ammonia at coal power stations to reduce carbon emissions
with IHI Corporation (Japan) and PETRONAS.
For more information on partnerships, please refer to Sustainable Business Expansion – Green Energy Growth, pages 144 to 145.
Strategic Pillar 2: Evolve the Grid and Grow Renewables

a) Expand renewable assets • The progressive transition of our generation portfolio towards low-carbon and renewable energy sources is
within Malaysia, ASEAN, and a fair reflection of our commitment to achieve RE capacity of 8,300MW by 2025. International RE expansion
Europe is a top priority for TNB to thrive in the long-term to significantly ramp up our RE capacity to achieve 66%
capacity mix by 2035.
14% 10%
TNB 24% TNB

Renewables
45% Capacity Capacity
Others
Mix Mix
Coal
FY2021 FY2035
41% 66%
• Our RE growth strategies encompass three (3) dimension which are detailed below:
• Repowering Roadmap
o We expect the renewables to be built under RT to deliver a 5% reduction in our emission intensity
by 2026.
o By early 2030s, we expect our repowering efforts to cleaner sources would enable a further 18%
reduction in our emission intensity.
o The remaining 12% is to be achieved by the end of 2035 through the expiry of 2GW of coal capacity PPAs.
• New Energy Division (NED)
o NED was recently formed to expand the company’s RE portfolio in targeted markets and set up
strategic partnerships with leading RE players to leverage on their technical expertise.
o The NED streamlines our RE expansion arms and oversees two (2) key entities: Vantage RE operating
out of the UK to focus on UK and Europe markets, and TNB Renewables based in Malaysia to focus
on the domestic and Southeast Asia market.

Pages 128 - 179
Strategic Pillar 2: Evolve the Grid and Grow Renewables

a) Expand renewable assets • Renewable Growth

within Malaysia, ASEAN, and o Growing our renewables capacity would be necessary to achieve our aspiration of 35% emission
Europe intensity reduction by 2035.
o We expect to grow an average of 1GW of renewables capacity per year to ensure that 66% of our
capacity is made up of renewable energy sources by 2035.
For more information on RE programmes, please refer to Customer Centricity – Empowering Customer Towards Energy Transition, pages 148 to 149.
b) Expand grid and distribution • TNB will continue to prioritise investments in modernising the national grid into the GOTF to enable a
enable increased demand and smart grid that remains reliable, resilient, smart with digital technology and flexible in meeting the
lower energy losses country’s needs for energy transition.
• Conservation Voltage Reduction (CVR) maintains feeder voltage at the lower end of the acceptable range
to achieve energy and demand savings. This is a collaboration effort between Grid System Operator (GSO),
Grid and Distribution Network (DN) division on piloting the CVR project.
For more information on grid and distribution network initiatives, please refer to Ensuring Reliable Electricity Supply, pages 145 to 146.
Feature Story Nenggiri Hydroelectric Project
Nenggiri Hydroelectric Project (Nenggiri HEP) is a proposed development for 300MW hydroelectric power plant in Kelantan which is expected to commence
development in 2022 and will be completed in 2027. The project is a strategic initiative to expand TNB’s renewable assets while reducing our GHG emissions.
It will play a multi-fold role of climate risk adaptation through flood mitigation and provision of clean water supply to the surrounding community.
Nenggiri HEP is expected to generate over 351.5GWh of electricity annually. It will also avoid 244,000tCO2 emission from power generation activities.
All buildings built under this project will incorporate some aspects of energy-efficient design features in order to reduce energy consumption.
In addition to minimising environmental impacts, Nenggiri HEP is expected to create positive socioeconomic benefits such as providing electricity to rural
areas, social infrastructure, and local job opportunities. Given TNB’s experience in developing three (3) other hydro schemes, extreme care has been given in
ensuring the interests of the Orang Asli community and the wildlife that will be directly affected by the project are protected.
After completion expected in 2027, Nenggiri Hydroelectric Project shall become an important contributor to the nation’s aim of increasing the RE capacity.
For more information on social impacts of the Nenggiri Hydroelectric Project, please refer to Brighter Community – Engaging Indigenous People.

Strategic Pillar 3: Unlock New Energy Revenue Streams

a) Grow unregulated business • TNB is ready to lead Malaysia’s transition into low-carbon mobility, especially in Battery Electric Vehicles
to meet evolving customer (BEV), through collaborative efforts with various stakeholders.
energy demands – including • Between 2019 to 2020, TNB partnered with Malaysian Green Technology and Climate Change Centre
Electric Mobility (MGTC) to install 73 EV charging stations nationwide.
• This year, we have signed three (3) Memorandum of Understanding (MOUs) on low carbon mobility
ventures managed by TNB’s Retail team with:
• Sime Darby Motors Malaysia
o To collaborate on exploring various initiatives to accelerate the adoption of EV.
• DHL
o TNB will install EV charging stations along DHL’s key service routes, which will advance the
electrification of DHL’s fleet.
• SOCAR Mobility Malaysia (SOCAR)
o To leverage on shared demand data on EV usage in Malaysia, as a joint effort to speed up the
adoption of EV, in support of Malaysia’s low carbon mobility ambitions. TNB will leverage on
SOCAR’s data on vehicle usage and travel behaviour, which shall be used to identify key strategic
locations along travel routes for the installation of charging infrastructure.
• EV transportation for TNB staffs and visitors. TNB’s Fleet Management Department (FMD) has procured two
(2) units of electric cars, one (1) unit of electric van and one (1) unit of electric coaster, including fourteen
(14) units of EV chargers comprising ten (10) units of Direct Current (DC) and four (4) units of Alternating
Current (AC) charger types.
b) Grow the kWh and beyond • As customer demand and expectation shifts, we will broaden our product and services offering to grow
kWh business beyond the kWh business by leveraging digitalisation and new technologies.
• TNB Engineering Corporation Sdn. Bhd. (TNEC) has expanded District Cooling System service establishing
24% market share in domestic DCS supply.
• Distribution Network is continuing their efforts to enhance the intelligence, flexibility and reliability of its
network via several SMART projects, which include Advanced Metering Infrastructure (AMI), Distribution
Automation (DA) and Geographic Information System (GIS).
• Conducting a demonstration project on Virtual Power Plant (VPP) technology that utilises energy storage
and digital technologies for energy efficiency and grid services.
• Dewan Bandaraya Kuala Lumpur (DBKL) would be collaborating with TNB, Sustainable Energy Development
Authority (SEDA) and others to construct solar farm and install rooftop solar panels on identified buildings.
Metrics and Targets
The SP2050 enabled us to establish clear climate related targets:
Reduction of emission intensity of

Increase RE Capacity to 8,300MW by Reduction of coal capacity of 50% by
1 2025
2 35% by 2035 and net zero emission 3 2035 and 100% by 2050
by 2050
Steps have been taken to monitor and report progress of our performance against targets beginning FY2022, including enhancing the sustainability
governance roles and cadence.
The key environmental metrics monitored by TNB include carbon emissions, energy and water consumption and waste generation and management. We
utilise our GHG Emissions Management System (GEMS), a web-based data input and processing software for regular monitoring of Scope 1 and 2 GHG
emissions data. We intend to expand the monitoring of our other environmental data via GEMS progressively.

Pages 128 - 179
An internal carbon pricing (ICP) study was recently commissioned to establish the purpose of setting an ICP and pricing mechanism for TNB. TNB’s research
arm, TNBR is also assessing Scope 3 value chain emissions in preparation for embarking on a Science Based Targets (SBTi) accreditation.
SCOPE 1 AND 2 GHG EMISSIONS GHG EMISSIONS INTENSITY GHG EMISSIONS MITIGATED
(million tCO2e) (tCO2e/MWh) (million tCO2e)
Scope 1 Scope 2
2018 37.00 0.19 2018 0.57 2018 5.81
2019 33.79 0.24 2019 0.56 2019 5.39*
2020 39.04* 0.22* 2020 0.57 2020 5.99*
2021 39.80 0.19 2021 0.55 2021 7.96
* Data updated after third party verification

Our GHG emissions mitigation programme via EE initiatives include:

0.65% Initiatives Descriptions
1.07% 0.005%
Green building Balai Islam TNB and Residensi Kelana Jaya are Green
43.49% BuiIding Index (GBI) Certified while the upcoming Jalan
3.58% Pantai commercial-office development has been awarded
0.01% 0.005% with GBI GOLD Design certification. All the certified
buildings are designed with energy efficient features.
• Balai Islam TNB is designed to be energy efficient by
GHG Emissions
utilising daylighting and energy efficient features.
Mitigated in
Double volume with full-height glazing, roof skylight
FY2021
and dome clerestory windows provide excellent
daylighting, meanwhile the complex is installed with
high efficiency LED lights and motion sensors to
reduce building lighting energy usage. The building
is expected to achieve 50% reduction in energy
51.20% consumption compared to a conventional building.
• Residensi Kelana Jaya, TNB quarters with GBI
certification for TNB employees.
• A new commercial-office development at Jalan Pantai
Advanced Combined Cycle Technology
was awarded with GBI Gold Design certification and is
Large Hydro currently under construction.
Clean Coal Technology
Large Scale Solar
Electric Vehicle
LED lighting • Light bulbs in all TNB buildings are replaced with
Small Scale RE
LED lightings to provide better energy efficiency and
Energy Efficiency considerably longer lifespan.
Tree Planting Programme

Innovation & Research and Development
TNB has been actively investing into R&D of new technologies which can assist in climate change mitigation.
Initiatives Descriptions
Renewable Energy Solar PV Cooling Technology
TNBR has successfully developed two (2) types of retrofit PV cooling systems (active and passive cooling systems),
which improve the energy yield of the PV system.
Biogas source from non-POME (Palm Oil Mill Effluent) organics
TNBR is collaborating with other divisions, subsidiaries, and external parties to carry out feasibility study of
biogas plants from non-POME organics, such as food and animal waste.
Exploring suitable crop alternatives for biomass energy generation.
TNBR has developed a technology that improves the fuel properties of empty fruit bunches (EFB).
Pyrolysis of Organic and Plastic waste to Bio-oil (Waste-to-Energy)
TNB is exploring a waste-to-energy system which aims to divert the organic and plastic waste from landfills.
As of FY2021, a trial of the systems is currently in progress.
Green Hydrogen
The research is in its initial stages whereby we are studying the potential use of Two Stage Anaerobic Digestion
Technology (TSAD) on organic waste.
Co-firing Empty Fruit Branch (EFB) Co-firing Feasibility Study
TNBR has embarked on a collaborative effort with TNB Power Generation Sdn. Bhd. (GenCo) in carrying out a
feasibility study for co-firing high quality empty fruit bunch (EFB) pellets in a power plant.
Ammonia-Biomass Coal Firing (ABC) Feasibility Study
GenCo, Jimah East Power plant (JEP), Mitsui & Co and Chugoku collaboratively agreed to conduct a feasibility
study on Co-firing of Biomass and Ammonia in JEP to reduce our coal usage.
Building Resilience Towards Business Continuity Measures

Natural Disasters
Flood management practices such as Flood Analysis and Risk Assessment (FARA), flood drills, community-based
early warning system and flood mitigation upgrade works are carried out to minimise service disruption during
storms and flooding.

Pages 128 - 179
Minimising our Environmental Impact
TNB strives to minimise the environment impact caused by our business Our approach and key FY2021 highlights:
operations and value chains, in line with our commitment to progressively
improve our environmental performance. • Our environmental performance across the Group is under the purview
of the Health, Safety, & Environmental (HSE) Council, which comprises
Governing Environmental Matters of the Environmental Performance Monitoring Committee and
Environmental Regulatory Compliance Monitoring Committee. This
The generation of electricity from our thermal plants inevitably leaves a large organisational framework monitors the environmental performance
environmental footprint, in the form of carbon release, water consumption and compliancy with the various environmental requirements applied
for power plants and fuel consumption. Our environmental management within the Group.
is principally guided by TNB Environmental Policy which was reviewed • Several divisions in TNB have been certified ISO14001:2015 compliant in
in FY2021 to reflect the latest changes in environmental requirement and Environmental Management System (EMS). We are also guided by TNB’s
emerging issues. Health Safety and Environmental Management System (HSEMS) which
outlines environmental risk identification and control requirements
In FY2021, Eleven (11) compounds were received from Department of across all divisions, departments, and business units in TNB. HSEMS was
Environment (DOE) with a total of RM19,000 in monetary value, due to the introduced on the 1st of July 2019, and has strengthened the governance
non-compliance with Environmental Quality Act 1974 (Scheduled Waste of environmental requirement across the Group.
Regulation 2015 & Industrial Effluent Regulation 2009). Our efforts to mitigate • Guided Self-Regulation (GSR), the self-monitoring environmental
this issue include establishing end to end consequences management management tool, has been implemented across all the divisions and
process for compound and lawsuit, devising Strategic Engagement Plan subsidiaries in TNB. In 2021, a GSR score sheet was developed and
(SEP) 2022 – 2025 together with DOE, and conducting regular audits, implemented for the purpose of analysing and identifying gaps for
inspections, and awareness sessions, among others. continuous improvement.
• An environmental awareness training module was developed and
rolled out through ILSAS to improve environmental awareness amongst
employees.
• Our overall commitment towards reducing our environmental impact
is encapsulated in our comprehensive environmental management
policies and guidelines:
- Environmental Policy
- Scheduled Waste Management Guideline
- Polychlorinated Biphenyls (PCB) Management Guidelines
- Grid Division Green Code Conduct
In supporting TNB net zero 2050 aspiration, Grid Division has introduced its Grid Green Code Conduct. The Green Code Conduct shows our commitment
towards ESG that mirrors effort to creating a greener future. We aim to lead as a green responsible grid owner by reducing climate footprint and
promoting sustainability throughout the supply chain, details of which are as follows:
Target Strategies
Grid Division targets to: • GHG reduction initiatives: To focus on reduction of Sulphur
• Align with TNB’s net zero carbon emissions aspiration hexafluoride (SF6) emissions through various initiatives including
• Achieve zero pollution impact on nature recycling of SF6 and exploring the alternative SF6 gas in assets
• Achieve 30% reduction in deforestation within forest reserves by • Deforestation control initiatives: To minimise the impact of
2050 deforestation in accordance with the environmental standards and
promoting biodiversity
• Pollutant management initiatives: Use environmentally friendly
equipment and products

Minimising our Environmental Impact
Focus Our approach and key highlights in FY2021 Performance in FY2021
Natural Resource Water Management There is a slight increase in total water consumption for
Management FY2021 compared to FY2020, due to new asset expansion.
• Closely monitor our water usage at operation sites to
TOTAL WATER CONSUMPTION ACROSS ALL TNB’S OPERATION
ensure minimal risk of water overuse or pollution. IN PENINSULAR MALAYSIA
• Perform monthly tracking of water consumption at (Megalitres)
all TNB assets.
2018 8,047.90
• Investigate any deviation of water consumption
higher from the norm at all power plants and 2019 7,269.30
perform any required follow-up mitigation action
and implementation plans. 2020 7,065.30
• GenCo was recertified with ISO 14001: 2015 in April
2021. 2021 7,771.09
Fuel management Fuel consumption from non-renewable sources to power the

generation plants, are shown below, with a notable increase
• Strive to do our best in managing and reducing any in natural gas consumption in FY2021, reflective of the newly
resulting environmental impact. commissioned SPG.
• Conducted Business Turnaround programme to
TOTAL FUEL CONSUMPTION ACROSS ALL TNB’S OPERATION
improve plant energy efficiency. The programme at IN PENINSULAR MALAYSIA
JEP has been completed in September 2021. (GigaJoules)
396,332,933
181,810,853
2018 687,794
307,793
361,956,288
188,532,460
2019 573,644
783,847
456,964,497
161,785,964 Coal
2020 31,328,099
Natural gas
451,081,428
204,196,092 Distillate fuel
2021 1,093,738
Medium fuel oil
Waste • All hazardous waste are centrally managed and TNB monitors its scheduled waste generation directed to
Management disposed according to our Health, Safety and disposal and diverted from disposal regularly.
Environment (HSE) guidelines on Scheduled Waste
Management, which is in compliance with regulatory SCHEDULED* WASTE GENERATED AND DIVERTED FROM
requirements set by the Department of Environment DISPOSAL
(DOE). (Metric Tonnes)
• Continuous improvement and enforcement of waste
Scheduled* Waste Directed Scheduled* Waste Diverted
management practices are conducted through site to Disposal from Disposal
inspection and internal audits.
• Issuance of the 2nd Edition of Scheduled Waste 2019 33,234 1,549
Management Guideline to enhance waste
management in TNB. 2020 18,121 5,456
• Issuance of Polychlorinated Biphenyls (PCB)
Management Guidelines to phase out PCB usage in 2021 46,667 1,162
TNB by 2025.
• New environmental KPI was introduced in FY2021
* We refer to DOE’s terminology of scheduled waste which means waste that has
that focuses on the Non-Conformity Report (NCR)
hazardous characteristics, and thus has the potential to negatively affect the
closure rate for any environmental audit conducted. environment and public health

Pages 128 - 179
Focus Our approach and key highlights in FY2021 Performance in FY2021
Biodiversity In FY2021, we ramped up our initiatives In FY2021, RM0.35 million was spent to monitor fish species at the
Management to conserve biodiversity surrounding our Sungai Perak Hydroelectric Station (Temenggor Dam).
operation sites:
TOTAL SPEND (RM MILLION) ON IUCN STUDIES AT SUNGAI PERAK
Sungai Perak Hydroelectric Station - HYDROELECTRIC STATION (TEMENGGOR DAM)
Temenggor Dam
• TNB conducted a study on threatened fish
species (based on the International Union 2018 3.53
for Conservation of Nature (IUCN)’s Red
List of Threatened Species) found at the 2019 0.26
Temenggor Dam.
2020 1.80
Cameron Highlands – Jor and Ringlet Lakes
• TNB is running a Pilot Development of
Habitat Rehabilitation and Restoration 2021 0.35
for Sediment Deposit Area in Cameron
Highlands. This project is in collaboration Note:
The study on terrestrial species for the Sungai Perak Hydroelectric Station (Temenggor Dam) was
with the Pahang State Forestry Department
concluded in FY2018. The study on fish species at Hulu Terengganu Hydroelectric Station and
to rehabilitate and restore dredging Pergau Dam, Sungai Perak Hydroelectric Station was concluded in FY2020.
disposal sites at Jor and Ringlet Lakes.
• The rehabilitation works include soil
Key Findings of TNB’s IUCN Red List Studies as of FY2021
treatment, tree planting, nursery
maintenance, and tree growth monitoring.
Total
Species Number Spend
Bukit Selambau Large-Scale Solar (LSS) Site Group of Species (RM)
Plant
• TNB is conducting a study to Sungai Perak Fish 1 0 0 1 57 2 2
Hydroelectric
manage human-macaque conflict 0.35
Station
through Behavioral Ecology and DNA Terrestrial 20 32 46 0 0 0 0 million
(Temenggor
Metabarcoding. Dam)
• The results of the study will allow TNB to
understand the daily activity, behaviour Critically Endangered (CR) Endangered (EN)
and dietary requirements of the macaques
Vulnerable (VU) Near Threatened (NT)
which will be utilised to reduce the chances
of human-macaque conflicts. Least Concern (LC) Data Deficient Not Evaluated

EMPOWERING OUR PEOPLE AND NURTURING TALENT
Related Material Matters
• Safety, Health and Wellbeing

• Employment Culture
• Capability Development
• Community Development and
Education
• Sustainable Supply Chain
• Rights of Indigenous People
The TNB Way of Working (WoWL) framework provides a suitable hybrid work arrangement and the flexibility to our employees
which depends upon the nature of the job.
Feature Story Transforming our Ways of Working
A major component that is currently under development as part of SP2050 Green Office Practices
is TNB Ways of Working Sustainably (WoWS) which emphasises the shift During the COVID-19 pandemic in March 2020, we adopted flexible working
towards a more sustainable work culture. Our WoWS comprises five (5) arrangements with options to Work in Office (WIO), Work from Home (WFH),
main categories; Green Office Practices, Culture and Values, Improving or Work Home Based (WHB). These flexible working arrangements were
Operations and Fleet Management, Energy Efficiency, and Natural Resource primarily driven by compliance to guidelines issued by the Government
Consumption. of Malaysia and implemented as a crisis response with the aim to stop the
spread of the virus amongst employees.
After nearly two (2) years, we decided to reevaluate the impact of our current
Green Office flexible work arrangements on the motivation of our organisation and
Practices employees. Following analyses and engagements with our key stakeholders,
we embarked on a new TNB Way of Working (WoWL) framework supported
by three (3) key drivers – people, process, and technology. Depending on
the nature of the job (i.e. Field Force, Office Based, Shift Based, and Customer
Natural Facing), a suitable hybrid work arrangement encompassing options to
Resource Culture and WIO, WFH, WHB, Work from nearby TNB premises (WFN), and Work from
Consumption Values Anywhere (WFA) was introduced. The WoWL is a subset of the green office
Efficiency TNB Ways
practices category under WoWS.
of Working
Sustainably As accelerated by the pandemic and our SP2050 commitments, we are
also shifting towards a paperless office through rapid digitalisation of our
operations, including but not limited to:
• Training and capability development via e-learning modules;
• Adoption of digital platforms such as cloud storage and Enterprise
Improving Improving
Operations Content Management (ECM) to scan and share documents digitally; and
Energy
Efficiency in and Fleet • Digitalisation of internal processes including the health and safety
TNB offices Management potential incident reporting via the HSE e-wallet.

Pages 128 - 179
Employment Management and Growth
Our employees are our greatest asset. Throughout the COVID-19 pandemic, our people demonstrated a deep sense of responsibility in guaranteeing TNB’s
continued success. Therefore, we strive to nurture an inclusive working environment that grooms strong leaders, promotes high performance, and develops
skilled and agile talent.
Creating a Conducive Workplace

TNB aspires to provide a conducive working environment that is flexible, supportive, and inclusive which encourages employees to live a balanced lifestyle
anchoring three principles – Trust, Empowerment, and Mindfulness.
We comply with all relevant labour laws in the countries we are operating in, including supporting the rights to freedom of association and collective
bargaining. The rights of our non-executive employees are also are well-protected through our unions. In addition to legal compliance, we respect the
inherent human rights for fair and humane treatment of all employees; treating everyone with respect, and having zero tolerance for discrimination,
harassment or bigotry.
HR Guiding Principle and Strategy
We support and align to our Transformation Journey – RT through our Human Resources (HR) strategy which comprises the HR Leap 6, HR Guiding
Principles, and the HR Master Plan 2020 – 2025. We have set four (4) Big Audacious Goals to guide our journey towards delivering the desired outcomes
by 2025.
HR Master Plan 2020 - 2025

Building blocks to deliver the desired outcomes
Mission Harnessing
and Orchestrating Our
Aims and needs
HR Capabilities to be Recognised as a
to support RT Trusted Strategic Business Driver in Catalyzing Business
Growth and Delivering HR Excellence
Four (4) Big

Audacious Goal Maximise Establish a
Key outcomes to Create a Value Workforce Purpose Driven
Build Organisational Synergy & Agility
deliver value to TNB Driven HR Return on Workforce &
Investment (ROI) Environment
Strategic HR Wining Ownership Digital HR

Meaningful Business
Imperatives Mindset & of The Value (Embrace
Outcome
Defines the building Capabilities Chain Digital)
blocks needed to
achieve the overall Unify HR towards a Realignment of HR Strengthen Drive end-to-end Drive an overall
mission throught common purpose operating model digital workforce HR services to employee experience
the support of the through alignment anchoring on the capabilities and deliver high impact that is engaging
collective outcomes in our direction, role and value HR infrastructure outcomes for the and enabling
values, outcomes delivered by HR to to facilitate TNB’s business through through targeted
and guiding the business digital journey a sustainable high interventions,
principles performing and centered around TNB’s
optimised workforce Culture
HR Foundation
HR Operating
Model, HR Policies
& Processes, Data & Technology
Technology as HR Operating Model & Structure HR Policies & Process
Infrastructure
Enabler and
Decisions aligned
with TNB shared TNB Core Value & Behaviours
values

In our effort to disseminate and embed these culture and values within our people, we have conducted several engagement and promotional programmes:
Conducted 17 Divisional Leadership Activation Sessions that

On-going communication efforts on the TNB Identity at
involved the top management and their respective direct
Corporate and Divisional levels via Internal Bulletins,
reports. These sessions were aimed at strengthening the
1 bond in every divisional top team and to equip them with the 2 Facebook, and other platforms. We also embedded elements
of TNB Identity in the TNB Appointment and Offer letters as
motivation and knowledge in driving the TNB strategy and
well as People Development courses and trainings
identity as high performing teams
Conducted Change Engagement Circle (CEC) monthly

Organised three (3) Wira Budaya Awards to recognise
engagement sessions with representatives from all divisions
3 employees who demonstrate exemplary behaviour of our 4 and subsidiaries, to update and share on TNB’s Reimagining
TNB Core Values
Culture (RC) initiatives
As of 2021, TNB Identity reached an impressive 84% roll-down to 22,857 out of 27,050 employees. Moving forward, we established our Value Driven Initiatives
(and Quick Wins 2021) and TNB RC Journey 2022 to 2025, to set the direction for RC initiatives in the years to come.
Our approach in managing and nurturing our human resource:
Approach Key highlights for FY2021

Talent attraction, We searched for fresh talent via various platforms:
recruitment, and
retention is vital Talent Engagement:
to build a strong 1. International Islamic University Malaysia (IIUM) Fly High Career Forum
workforce pipeline 2. UNITEN Forum Sharing Session
3. Virtual Career Pumped-Up Session
Talent Branding Outreach

1. Four (4) talent stories published in electrifying careers social media platforms
We offer competitive Our competitive remuneration and benefit packages that support work-life balance as well as the mental and physical health of
employee benefits our employees include:
packages to maintain • Competitive benefits packages
employee morale, • Childcare facilities and nurseries
and attract and • Housing accommodation and quarters for employees
retain talent • Counselling services
• Sports and recreational facilities
• Career and development opportunities
Employee • We encourage two-way communication with our employees through various engagement channels.
engagement for • Change Engagement Circle (CEC) been mobilised to monitor our employee engagement and culture driven initiatives
open communication throughout the company. The CEC consist of around 50 representatives from various divisions, departments and subsidiaries.
and sharing • Grievance mechanisms are outlined in our Grievance policy which is supported by our Whistleblowing policy and channels
of different such as the Whistle Blowing Information System (WBIS). This serves as a safe platform for employees to channel their
perspectives feedback and concerns.
• Our extensive workforce is represented by three (3) Registered Unions and two (2) Workers Associations comprising of both
executives and non-executive employees. We have always maintained harmonious relations with the unions and are pleased
to note that our union leaders are actively involved in all employee engagement sessions such as labs, syndications, joint
meetings, and technical/field trips.
• Through our biannual Engagement Pulse Survey (EPS), and our biennial Employee Engagement Survey (EES), we are able to
gain an understanding of our strengths and areas for improvement which includes our diversity and inclusion, collaboration,
and job security. The EES conducted in December 2021 received a score of 85%.
• In FY2021, we have maintained a low turnover rate of 3.76% which reaffirms our exemplary efforts in employee management.

Pages 128 - 179
Upskilling & Reskilling Our Workforce

Awards Won
Development and training of our employees is crucial to achieving TNB’s strategic objectives. At TNB,
we support and empower our employees in their learning to ensure they are equipped to become an
Our dedication towards empowering our integral part of our sustainable business growth. TNB aspires to be a learning organisation, focused on
people and nurturing our talent has been creating, acquiring, and transferring knowledge and skills that continuously evolve with new business
recognised through the following awards: needs and global trends.
In FY2021, a new organisation-wide Functional Competency Framework was introduced, focusing on

re-aligning current functional competencies and future capability requirements for the organisation.
As part of the framework, a new Learning Journey Guideline was established.
Employee Experience Awards 2021

TNB received Bronze in the 2021 Employee
Experience Awards under Best Organisational
Upskilling & Reskilling category. Honouring HR’s
commitment to workplace transformation, the
Employee Experience Awards is deeply rooted in
three pillars that are cornerstones for a positive
employee experience which are leadership,
learning and employee engagement.
LinkedIn Top Companies In Malaysia 2021

Out of 15 companies, TNB secured the third
place in LinkedIn’s 2021 Top Companies list in
Malaysia to grow careers. This award recognises
companies that invests in employees to help
them build a professional foundation that sets
them up for success both at the company and
beyond. TNB was analysed for seven key pillars:
ability to advance, skills growth, company
stability, external opportunity, company affinity, Our people are the key enablers in all of TNB’s value creation activities and we are passionate in developing and
gender diversity, and educational background. empowering our employees, to ensure their skills and capabilities are consistent with the new business needs.
FY2021 Highlights
LinkedIn Finalist Talents Award 2021

TNB was announced as the winner of the Best
RM 65.53 million
learning and development investment
639,040
of training hours
Employer Brand on LinkedIn - above 1000
employees.

Initiative Key highlights for FY2021

Division Academies • GenCo Academy: 37 SMEs
A collaboration with TNB Integrated Learning Solution • Grid Academy: 32 SMEs
Sdn. Bhd. (ILSAS) to develop Subject Matter Experts • Distribution Network (DN) Academy: 32 SMEs
(SMEs) and world-class workforce in TNB’s core business • Retail Academy: 1,690 talents enrolled
areas • HR Academy: 30 SMEs (Established in FY2021)
Upskilling & Reskilling Programmes • A total of 918 staff were enrolled in upskilling/reskilling programmes for 2021, namely:
Programmes targeted to upgrade employee skills and - Program Pendidikan Kemahiran Ketukangan (PPKK)
transition - Program Pendidikan Kemahiran Juruteknik (PPKJ)
- Program Pendidikan Kemahiran Penyelenggara Stor (PPPS)
- Program Pendidikan Pembantu Tadbir (PPPT)
- Conversion Programme of Mechanical Technician to Electrical
• 63 people underwent Conversion Programmes to facilitate continued employability among
TNB employees.
Digital Skills Training • Face to face (f2f ) classroom activities were enhanced to provide a digital learning option, or
A collaboration with ILSAS to accelerate digital learning an alternative hybrid approach combining the best of both approaches.
solutions for TNB employees. Variety of e-learning • Digital learning platform and contents employed include byte-sized learning, webinars,
modules allows employees to pace their learning and virtual learning and e-learning.
development • Learning T-Day: 135 editions of bite-sized learning content on Leadership.
• TNB Leadership webinar: 20 webinars conducted.
• ILSAS E-Learning Programme: 632 sessions conducted with 12,377 participants
(20,489 hours training*).
• Total e-learning hours: 281,999 hours.
• Total e-learning modules listed by ILSAS: 153 e-learning modules available.
* Note: This 20,489 hours conducted by ILSAS is part of the 281,999 hours for TNB e-learning
TNB Leadership Competencies & Leadership TNB Leadership Competencies:

Development Centre (LDC) • Continuous leadership learning and development initiatives such as Agile, Virtual Case
Provides experiential leadership development Study and various online courses and simulation programmes.
interventions that aims to develop a surplus of • First-Time Manager Programme (FTM) for Managers level and re-strategise development
leaders that embody TNB Identities. The leadership content for Young Executive Development Programme (YEDP) to strengthen leadership
interventions are diagnosed from TNB’s strategic intent capabilities in role transition.
and employees’ career lifecycle. • Empower Informal Learning (20%) through Group Coaching in FTM.
• Leadership Webinar series featuring internal and external speakers on various current and
future leadership topics.
• In FY2021, 185 sessions were conducted involving a total of 8,533 participants.
TNB Reskilling Malaysia Programme • In FY2021, we conducted five (5) flagship programmes:
Spearheaded by ILSAS, this initiative provides job - Solar Panel Installation
matching opportunities to unemployed members of - Smart Meter Installation
the public as well as training of necessary skills for - Power System Operation and Maintenance
their new roles. All courses under this Programme are - Medium Voltage Electrical Facilities
applicable and open to non-TNB employees. - Low Voltage Electrical Facility
- Other training programme related to MESI and adjacent MESI
This programme is expected to benefit companies in • In FY2021, TNB invested RM9,842,820.76 to provide employment opportunities to 4,760
Malaysia, filling up to 17,500 vacancies over a span of individuals and train 2,576 individuals under the Reskilling Malaysia Programme. Since
three and half years, starting from October 2020, until the inception of this programme in October 2020, TNB has cumulatively invested
early 2024. RM10,723,220.76 to provide employment opportunities to 5,202 individuals and trained 3,018
individuals.

Pages 128 - 179
Advocating for Diversity and Inclusiveness

As one of TNB’s Culture, “Collaborative”, we embrace diversity and inclusivity in our workforce as we believe it offers a greater variety of perspectives and
viewpoints to enable us to adapt to dynamic markets and catalyse creativity and innovation. We strive to ensure all our employees feel trusted and appreciated
for their ideas, presence, and contributions to the organisation regardless of their age, gender, religious affiliation and disability.
Through our Employee Experience (EX) framework, we focus on strengthening diversity and inclusion in the organisation. We do not tolerate any form of
discrimination or harassment (verbal, physical, sexual or visual, including discriminatory comments) as outlined in our Code of Ethics. In the pipeline, we are
developing a diversity and inclusion policy and including it as an indicator in our Employee Engagement Surveys.
Key Highlights in FY2021
• TNB registered as a member of the • This year, there has been about a 5% • TNB continues to promote equal pay for
“30% Club” – which advocates for at least increase of women in senior management men and women based on their roles and
30% representation of all women on all roles for TNB Group, from 95 people in responsibilities as indicated in our HR
boards and top management globally. This FY2020 to 100 people in FY2021 manuals as well as Collective Agreement
demonstrates our commitment to achieve (CA) document with the ratio for basic salary
diversity, equality, and inclusion in our and remuneration at 1:1
organisation
Our Performance in FY2021
FY2018 FY2019 FY2020 FY2021

Total TNB Group Employees 35,516 36,307 35,576 34,938
GENDER DIVERSITY BY LEVEL Male Female
(%)
11.1% 30.4% 20.3% 16.2% 18.4% 19.7% 21.7% 23.1% 38.2% 39.0% 39.3% 39.8% 15.6% 15.2% 15.1% 15.0%
88.9% 84.8% 84.9% 85.0%

83.8% 81.6% 84.4%
79.7% 80.3% 78.3% 76.9%
69.6%
61.8% 61.0% 60.7% 60.2%
2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021
Board Members Senior Management Executives Non-Executives
EMPLOYEE BREAKDOWN BY GENDER EMPLOYEE TURNOVER/ATTRITION BY AGE GROUP

(%) (No.)
2018 79.0 21.0 Male 2018 462 113 1,077 <35
2019 79.0 21.0 Female 2019 457 111 876 36 - 50
2020 78.9 21.1 2020 332 100 873 >50
2021 77.9 22.1 2021 329 152 833
EMPLOYEE BY AGE GROUP EMPLOYEE TURNOVER BY GENDER NEW HIRES BY GENDER

(No.) (No.) (No.)
<35 36 - 50 >50 Male Female Male Female
2018 17,774 12,092 5,650 2018 1,406 245 2018 2,050 387
2019 17,853 13,277 5,177 2019 1,213 231 2019 1,589 410
2020 16,033 14,689 4,854 2020 1,054 251 2020 424 144
2021 14,139 16,249 4,550 2021 1,078 236 2021 649 197

Emphasis on Health, Safety, and Well-being

As a responsible employer, we prioritise the occupational health, safety, and welfare of our employees and contractors. We recognise their inherent human
rights beyond being vital to our operations.
Encouraging Occupational Safety and Health Practices

Safeguarding the lives of both our employees and contractors through robust occupational safety and health systems and practices remains our utmost
priority. We uphold strong safety standards to prevent Occupational injuries and diseases and strive to achieve our targets of having zero fatality at the
workplace and maintaining our LTIF rate at below 1.0. We are also prepared to mitigate the consequences of emergency situations, appropriate to the
magnitude of the emergency, and its potential impact to health, safety as well as the environment.
FY2021 Approach and key highlights:
Health, Safety and Environmental Management System (HSEMS)

We are guided by TNB’s Safety and Health Policy to implement our safety governance framework. TNB Health, Safety and Environment Management
System (HSEMS) has progressively been cascaded across divisions to ensure standardisation of HSE management and governance across the Group.
TNB Group HSE Steering Committee convenes quarterly to discuss safety performance, mitigation measures and the overall strategic direction for
HSE management at TNB.
Key highlights for FY2021 include:
• In FY2021, only • Grid Division, • TNB Occupational • Two (2) TNB • Implementation of Contractor
one (1) HSE Distribution Network Safety and Health HSE Steering Safety Quality Assurance (CSQA)
corporate audit Division, and TNB Policy and TNB Committee that requires contractors under
was conducted (for Power Generation Environmental meetings were the Distribution Network
GSPARX Sdn Bhd) Sdn Bhd maintained Policy has been held during the Division to provide Contractor
due to COVID-19 their ISO 45001:2008 reviewed and year. Safety Quality Assurance (CSQA)
restrictions. certification endorsed. implementation through self-
(Occupational Health declaration of safety compliance
& Safety Management before commencing work.
System).
Accident reduction programmes

In FY2021, the HSE digital platform was established for TNB employees to report any potential incidents (PI) at the workplace. This promoted early
intervention of potential incidents. Meanwhile, the Tenaga Safety Information System (TSIS), captures reports of incidents and near misses which
are then investigated for corrective and preventive actions for improvement to be identified and taken.
• Development of comprehensive Permit-to-Work System Guidelines • Launching of TNB Working at height guidelines, TNB Safe working
which is expected to be a game changer in preventing accidents in Confined Space Guidelines, Permit-to-Work System Guidelines
and fatality. and Contractor Work Permit (CWP) on 8th of October 2021.
HSE Digitalisation (eHSE online system)

In line with greening our office practices, we continue to take strides towards digitalising our HSE practice by progressively rolling out modules in
preparation for the full implementation of our eHSE online system in FY2022.
• Development of a comprehensive chemical management system • Evaluation of Compliance (EOC Module) for our divisions to
in TNB. Through the online system, our divisions are able to digitally conduct self-evaluation for applicable HSE legal requirements and
register the chemicals used at their sites and measure the risk levels. measure their compliance status through eHSE online platform.

Pages 128 - 179
Emergency Response – Flood
In preparation for the monsoon season, TNB released guidelines namely the Electrical Safety Guide During the Monsoon Season and Electrical Safety
Tips During Floods which details out a step-by-step guide to electrical safety during flood occurrences. Precautionary measures were taken including
flood response training for TNB personnel, strategic placement of mobile generator sets and other critical equipment, and operation of flood monitoring
rooms. TNB has also previously taken steps to raise the substation sites and build flood barriers at sub-station entrances to reduce the risk of substations
being inundated and damaged by floods.
During the devastating flash floods that affected Peninsular Malaysia in December 2021, we shut down 647 power substations across Peninsular Malaysia
due to safety considerations.
Implementing Safety Culture

We believe that safety at our workplace goes beyond standards and policies and should be embedded as a culture within our organisation. In 2021, we
attained our targeted Proactive Safety Culture Level whereby our Safety Culture Assessment (SCA) score reached >4.0 at 4.02.
Our Approach and Key Highlights for FY2021:
Tenaga Safety Culture

The Nampak, Dengar dan Rasa Selamat (NDRS) programme aims to enhance awareness on early detection or symptoms of incidents, and was initially
introduced by the Distribution Network Division in FY2020. This year, the programme was extended to TNB Group to boost the Group’s safety culture.
The NDRS model is a holistic approach towards supporting safety culture transformation which comprises of three (3) main elements (3E- Engineering,
Education & Enforcement) and two (2) consequence management aspects namely JB-Julang & Benam. In aligning our safety culture assessment
outcome with the NDRS-Julang & Benam initiatives, we have implemented HSE reward and recognition programs i.e. Potential Incident Competition,
Department HSE League and HSE Monthly Quiz to recognise the efforts and contributions of our employees in elevating HSE performance.
Life Saving Rules (LSR)

• TNB has established nine (9) life-saving rules as part of injury prevention measures since 2017:
Core Rules
Isolate, earth and test Valid permit to work Wear arc flash suit when
before touch mandatory switching
Supplementary Rules
Use fall Obtain Wear helmet/ Caution. No phones No drugs.

protection authorisation safety belt. Suspended while driving No alcohol
before entering No speeding load
confined space
• In 2021, we have further developed and issued guidelines for working at height and confined space.
Risk Assessment
• In TNB, we identify all work-related hazards, assess its related risks, and determine relevant controls are necessary, guided by the Hazard
Identification, Risk Assessment and Determining Control (HIRADC) procedure. In determining the controls required to eliminate hazards
and reduce risks, the hierarchy of controls (i.e. elimination, substitution, engineering control, administrative control and Personal Protective
Equipment (PPE)) is used. The effectiveness of the risk assessment is reviewed annually, or when there are incidents and changes in work
processes. Additionally, PI reported in the digital platform will be assessed to alleviate any potential risk.
Risk assessments conducted by TNB include:
• HSE Risk Assessment (HSERA), • Chemical Health Risk • Noise Risk Assessment (NRA) • Ergonomic Risk Assessment
Environmental Impact Assessment (CHRA) for any to identify work related (ERA) to identify ergonomic
Assessment (EIA), Quantitative work activities that relates to activities with exposure to related risks at the workplace.
Risk Assessment (QRA), Fire hazardous chemicals. noise.
Risk Assessment (FRA), Process
Hazard Analysis (PHA).

Our Performance in FY2021
We have seen an improvement in terms of our safety performance reflected by the decrease in our Group-wide Lost Time Injury Frequency (LTIF) from
1.29 in FY2020 to 1.03 in FY2021.
Indicators 2018 2019 2020 2021

Lost Time Injuries (LTI) Frequency Rate of employees 2.14 1.42 1.29 1.03
Number of fatalities of employees 3 2 1 2
Number of fatalities of contractors 7 6 3 6
Lost Days Severity Rate (per million-man hours) 208.30 153.14 92.72 87.12
In 2021, 22% (5934) of the total employees completed HSE trainings achieving a cumulative of 103,225 training hours, our highest results since 2018.
Training 2018 2019 2020 2021

Number of employees 1762 4539 1027 5943
Percentage of employee trained 6% 16% 4% 22%
Training hours 32,811 69,190 16,813 103,225
We are however deeply saddened to report that there were eight (8) work-related fatalities this year involving two (2) employees and six (6) contractors.
In our efforts to mitigate these events in the future, we are enhancing our safety procedures and conducting more safety awareness and training
sessions across the Group. These include:
Implement NIOSH Tenaga Completion of Inspection

Enhancing safety Enhancement of LSR for contractors, NDRS
Safety Passport (NTSP) 2.0 Module development, to
management procedures, implementation and development of holistic
modules in collaboration be launched in the year
especially for contractors contractor management
with NIOSH 2022
Supporting Employees Health and Wellness

TNB supports our employees to have an
active lifestyle which contributes towards
improvement of health and wellbeing. We have
established mobile applications and health
screening programmes to improve employee’s
physical and mental wellness.
We also conducted wellness programmes for

our staff such as:
Wellness Champion Award
Top 3 highest step count for the year for

male and female staff
Bookdoc Mobile App

The Bookdoc Mobile App helps our employees to engage in an active lifestyle, as they can keep track of their
step count on a daily basis.

Pages 128 - 179
BRIGHTER COMMUNITY
Contributing to Community Development
We recognise our fiduciary responsibility to uplift the nation and aid in the economic recovery while
Awards Won
brightening the lives of our people. Through our various community engagements, we seek to leave a
lasting positive impact on our people and communities.
Our contribution to society has been
recognised through receiving the following In FY2021, we invested a total of RM39.57 million to community programmes which included RM5.43
awards: million for our sports related programmes and the three (3) focus areas:
Economic
Environment Education
and Social
We believe that We believe that the We believe that

Sustainability & CSR Malaysia Awards 2021 capability, social, future of our planet education can transform
TNB was a proud winner at the Sustainability and community and next generation the lives of not just one
& CSR Malaysia Awards 2021, winning the development supports depends on our individual but
Company of the Year award (Energy), and liveability and enhances responsible behaviour families and
Overall Excellence in Social, Education, & livelihood by uplifting today. generations.
Sustainability Initiatives. the economic and social
quality of life.
FY2021 Contributions: FY2021 Contributions: FY2021 Contributions:
The Edge Billion Ringgit Club 2021

RM22.79 million* RM0.24 million RM11.11 million*
TNB took the top spot for The Edge Billion
Ringgit Club’s Best CR Initiatives, Super * The above figures exclude * The above figures exclude scholarships
investments in employee training and and convertible loans from UNITEN &
Big Cap, Above RM40 billion Market development YTN
Capitalisation. We seek to leave a long-lasting
positive impact on people and communities To date, we have contributed a total of RM28.63 million towards assisting the nation to sustain the
and protect the environment with our various country’s health system, with RM1,131,819 been contributed in FY2021 in the form of personal protective
CSR programmes. equipment (PPE) and contributions to communities.
For more information on how we have responded to the COVID-19 pandemic, please refer to our Feature Story - Supporting the
Economic Recovery, pages 141 to 143.
Feature Story Together with You
Tabung Warga TNB Prihatin (TWTP) was introduced in June 2021 with an initial target of RM3 million to
provide financial aid to Malaysians whose livelihoods have been severely impacted by the COVID-19
pandemic. The funds were contributed voluntarily by TNB employees through a direct deduction of
their June or July salary, in a joint effort to provide financial assistance to our fellow Malaysians to
cope through these challenging times.
TWTP successfully raised RM1.63 million in 34 days. In enabling the campaign to have a wider
outreach, our Board of Directors unanimously agreed to double the amount donated by TNB staff,
reaching a total amount of RM3.27 million.
Collection for this TWTP was extended until the end of FY2021. As of December 2021, RM4.04 million
was successfully collected from 15,734 TNB employees with RM3.41 million having been distributed to
6,295 Malaysian citizens affected by the COVID-19 pandemic.
Recipients of the TWTP comprised of members from the B40 group including those listed under
e-Kasih, Jabatan Kebajikan Masyarakat (JKM), Program Perumahan Rakyat Termiskin (PPRT) under
Ministry of Federal Territories and State Zakat centers.
RM2 million from TWTP was allocated to provide financial assistance to victims of the December 2021
flash floods.

BRIGHTER COMMUNITY
Economic and Social Transformation

Electricity is an enabler for development, social welfare, improved healthcare, and socioeconomic growth. With that in mind, we have deployed various efforts
to provide homes to our communities, improve their accessibility to electricity, and promote energy efficiency. We are proud to be a collaborator with the
Government of Malaysia in implementing these efforts as a part of our commitment and responsibility in empowering and progressing the society towards
a better and brighter life.
RURAL DEVELOPMENT
Village Street Lighting (LJK) Programme

The government introduced the Village Street Lighting (LJK) programme
in 2002 with the purpose to ensure public areas in remote villages are well
lit at night, facilitating community safety. TNB in collaboration with the
Government of Malaysia successfully completed Phase 10 of Project LJK in
October 2021 with 29,487 streetlights successfully installed.
Pos Kawalan Tempat Kejadian (PKTK) in Lembah Bertam, Cameron

Highlands
As a contribution to the local community of Lembah Bertam, Cameron
Highlands, TNB allocated RM2.58 million to construct a multi-purpose
BELB Programme hall which will serve as a community center and emergency assembly
TNB with the support from Kementerian Pembangunan Luar Bandar (KPLB), point for the local community during floods or other natural disasters.
supplies power to rural areas such as villages and Indigenous People This hall includes facilities such as a covered futsal court, operation room,
settlements that are not within the operational area of local authorities and prayer room. The facility, which will be managed by the Cameron
through the Rural Electrification Programme (BELB). We connect these Highland District Council (CHDC) is expected to be handed over in 2022.
villages to our grid lines, where possible. For settlements in remote areas As of December 2021, RM2.31 million has been spent for the development
which are not accessible to our grid lines, we utilise off-grid alternatives of this project.
such as solar hybrids, generator sets, and mini hydro. To date, we have
improved connectivity of around 30 villages.
Bakul Prihatin Negara

(National Food Basket Programme)
In our efforts to provide additional relief and assistance
to those affected by the challenges of the COVID-19
pandemic, TNB contributed a total of RM2 million in aid
to the National Food Basket Programme in collaboration
with Yayasan Kebajikan Negara (YKN).

Pages 128 - 179
BRIGHTER COMMUNITY
PROVIDING HOMES FOR COMMUNITY WELL-BEING ENVIRONMENTAL SUSTENANCE PROGRAMMES WITH THE COMMUNITY
Conservation of the natural environment is crucial in safeguarding both
the diversity of flora and fauna, as well as the livelihoods of surrounding
communities.
TNB’s environmental sustenance programmes conducted are as follows:
Mangrove Planting Programme

As a part of our reforestation efforts, we conduct an annual mangrove
planting programme which is spearheaded by our power plants. In FY2021,
RM180,207 was spent towards this initiative.
At the JEP power plant, we planted approximately 1,344 trees in the

surrounding coastal parameters to preserve the mangrove ecosystem
Home for the Needy which is crucial to the local fisheries industry. JEP has been performing
Through our Home for the Needy programme, we have helped tree planting activities in this area since 2021. We partnered with Malaysian
refurbish and build new homes for an additional 144 families in FY2021, Nature Society (MNS) to plant mangrove trees along the access road to the
targeted mainly for single parents, senior citizens and individuals with power plant.
disabilities. This programme is carried out under two (2) concurrent
projects namely Program Baiti Jannati (PBJ) and Program Mesra Rakyat Apart from JEP, this mangrove planting initiative has also been conducted
(PMR). This year, we contributed RM3.05 million to the needy under this in Sg. Limau, Manjung, Perak. Under Phase 2 (2021-2022) of the programme,
programme. a total of 5,000 mangrove trees have been planted by Global Environment
Centre (GEC) in 2021 and another 2,000 trees to be planted in 2022.
Better Brighter Shelter

Through this programme, we provide accommodation facilities for
family members of those who have come from rural areas to receive
medical treatment in the city such as dormitories and transit homes,
for families whose members are undergoing medical treatments.
This service is provided to the underserved communities from rural
areas or the outskirts of Kuala Lumpur. We partnered with Serdang
Hospital’s National Welfare Foundation, the National Heart Institute
(IJN) Foundation, Melaka Hospital. In FY2021, this programme has been
expanded to Raja Perempuan Zainab II, Kota Bharu Hospital.
In FY2021, approximately RM1.56 million was allocated for this

programme, with a breakdown of RM200,000, RM59,000, RM45,000 and Fireflies Conservation Project
RM1.25 million spent on IJN, Serdang Hospital, Melaka Hospital and Raja We are committed to conserving the firefly population through our
Perempuan Zainab II, Kota Bharu Hospital respectively. conservation efforts in Kampung Kuantan, Kuala Selangor, Selangor –
home to one of Malaysia’s largest firefly colonies in Southeast Asia – as
well as Kampung Yak Yah, Kemaman, Terengganu; Kampung Sungai Timun,
Rembau, Negeri Sembilan; and Kampung Dew, Taiping, Perak. In FY2021, we
channeled RM52,000 into these conservation efforts.

BRIGHTER COMMUNITY
Transforming Lives through Education

In FY2021, we continue our commitment to provide accessible education through significant investments in our key educational institutions – UNITEN, ILSAS,
Yayasan Tenaga Nasional (YTN).
UNITEN – The Energy University
Universiti Tenaga Nasional (UNITEN) is devoted to teaching, learning, and research excellence as well as financial sustainability. It is an institution at the forefront
of energy research. Leveraging on TNB’s extensive industry experience in power generation, transmission, distribution, and retail, we offer courses in the fields of
engineering, energy economics, business management, accounting and computing & informatics.
As a subsidiary of TNB, UNITEN aspires to be a globally competitive, energy-focused university by 2025 through the implementation of a 10-year strategic plan:
“Building Opportunities, Living Dreams 2025” (BOLD2025). In FY2021, the strategic plan was updated to BOLD2025 Refresh which supports TNB by:
STRATEGY 1 STRATEGY 2 STRATEGY 3

Allowing TNB to support Improving TNB Group Support TNB’s SP2050
HOW BOLD the National agenda on financial performance targets through energy
REFRESH the Higher Education driven by tax-efficiency research
SUPPORTS TNB Industry and significant revenue,
and OPEX optimisation
This year, UNITEN awarded RM6.81 million to a total of 1,768 recipients. Among the funding and scholarships are:
UNITEN FUNDING AND SCHOLARSHIPS
Dana Pendidikan UNITEN
Danasiswa Pensijilan Tahfiz TAZU-MARA
Dermasiswa YCU
Dermasiswa B40 JPA in cooperation with YCU
UNITEN Sports Excellence Scholarship
Note:
TAZU : Tabung Amanah Zakat UNITEN
YCU : Yayasan Canselor UNITEN
1,699 144th
in the QS Asia University
94.5% 227th in the U.S. News &
World Report Best Global Universities
graduates employability rate
Rankings 2022 for Engineering 2022
Ranked among the world’s Top

Collaboration with Nano-Malaysia in
550
UNITEN PERFORMANCE
universities by QS
Graduate Employability Rankings
IN FY2021
developing 20-kW
proof-of-concept
nanogrid
2022
Successfully secured
RM 3.25 million
Four (4) UNITEN researchers ranked among the
#1
2%
in the world for “percentage of highly
in commercial
cited papers among the top 1% most cited in
funds for two (2) of UNITEN’s innovations under World’s Top Scientists by Stanford
Engineering” in the U.S. News & World Report Best
National Technology Innovation Sandbox (NTIS) University, USA
Global Universities for Engineering 2022
by MOSTI

Pages 128 - 179
BRIGHTER COMMUNITY
TNB Integrated Learning Solution Sdn. Bhd. (ILSAS)

ILSAS is a premier training institution for professionals in the wider power and utility industry, and the
official training institute for TNB. All of the technical capability development programmes conducted • Received the Asian Photovoltaic Industry
by ILSAS are in line with the Malaysian standard requirements. Association (APVIA) Awards for the
Academic Contribution (For Enterprise)
The training modules in ILSAS are also accredited by City & Guilds UK (for technical programmes), and category
Institute Leadership & Management (ILM) UK (for leadership & management training modules).
ILSAS aspires to be the Transformational Learning Platform for TNB and the energy sector in line with its • Received the Energy Institute Award 2021
2019 – 2023 business plan founded on three (3) pillars: (EIAwards) for excellence in providing
innovation learning solutions towards
energy sustainability
ILSAS Vision ILSAS Mission ILSAS Aspiration
• 5th ILSAS International Conference on

Its strategic objectives are as follows Learning and Development (ICLAD)
was conducted under a hybrid mode and
received commendable feedback from
participants
• To build capabilities for current and future organisational strategies by providing learning
solutions to increase individual, team and organisational performance and productivity
• 299 employees with 188 trainers
• To rapidly respond to growth and embed innovation in products and services
• To position ILSAS for a quantum leap growth as a business entity that is cash positive and
sustainable • 36,807 individuals trained
Yayasan Tenaga Nasional (YTN)

YTN was established with the mission to transform lives through excellent education opportunities. Since its establishment in 1993, YTN has been governed by
a Board of Trustees and an organisation committee to provide financial assistance through the award of scholarships and study loans to suitable candidates
based on merit to pursue higher education locally and abroad. To date, we have invested over RM1.3 billion in scholarships and helped over 20,000 students
to achieve their dreams.
In FY2021, YTN provided a total of RM119.2 million to 8,271 recipients through financial aid for scholarship, convertible loan and MyBF programme.
• RM53.3 million in financial aid provided to

MyBF scholars
• 6,600 students benefitted from MyBF

scholarships
• MyBF Student Development Programme

Collaboration with myHarapan to develop
competency and harness the potential of
dermasiswa students in terms of community
engagement, ethics, self-confidence and
other positive values
Our My Brighter Future (MyBF) program aims to provide opportunities to marginalised youth • Collaboration with UNITEN to run the
and families in the B40 bracket to pursue tertiary education in Science, Technology, Engineering & Leadership Exploration and Development
Mathematics (STEM) and Technical & Vocational Education & Training (TVET) at any of seven (7) selected (ULEAD) Programme for scholars
public universities, community colleges and polytechnic institutions in Malaysia. The MyBF scholarship
covers tuition fees, boarding and living expenses of recipients pursuing tertiary education.

BRIGHTER COMMUNITY
SUPPORT FOR EDUCATION
Ceria ke Sekolah Programme Tabung Cerdik (Smart Fund) Programme

Every year, TNB holds the Ceria Ke Sekolah Programme to provide This year, the Government of Malaysia introduced the CERDIK initiative
primary school students from low-income families with adequate to provide laptops, tablets, and internet access to students from low-
school supplies such as clothing (school uniform, pants, and headscarf ), income families. TNB contributed RM5 million to this fund which
school bags and facemasks. In FY2021, RM3 million was channelled by benefitted 3,253 students from 40 schools throughout Malaysia. Digital
TNB into this programme, which benefitted 30,000 students. items contributed include complete sets of laptops, dongles, and sim
cards (15GB for 12 months).
*Picture taken before the COVID-19 pandemic
PINTAR School Adoption Programme National Hockey Development and Thunderbolts

The PINTAR School Adoption Programme was continued in FY2021 Through this programme, TNB employees who were former national
with 11 new schools adopted across Peninsular Malaysia. TNB will hockey players have volunteered to coach promising students from
sponsor a total of RM945,000 for three (3) years (until FY2023) under Sekolah Sukan Bukit Jalil in Kuala Lumpur, Sekolah Sukan Tunku
this programme. Mahkota Ismail in Johor, Sekolah Menengah Kebangsaan Seberang in
Temerloh, Pahang, Sekolah Menengah Kebangsaan Anderson in Perak
This year, RM315,000 was channelled to initiatives focused upon virtual and the newly added school in 2021, Sekolah Menengah Kebangsaan
learning and motivational programmes to encourage improvement in Pengkalan Permatang in Kuala Selangor, Selangor. Since its inception
schools’ academic performance. in 2006, this programme has successfully nurtured several national
hockey players and in FY2021, we contributed RM5.14 million.

Pages 128 - 179
BRIGHTER COMMUNITY
Engaging Indigenous People

TNB has a steadfast commitment towards engaging with the communities we serve, which include Indigenous Peoples or Orang Asli communities.
Initiatives to Engage Orang Asli Communities
We actively engage communities, including the Orang Asli

communities, who live near our operation sites and roll-out
initiatives with the purpose of protecting their well-being
and generating socioeconomic benefits. To date, we have
improved connectivity in around 30 villages through the BELB
Programme which focuses on supplying power to rural areas
such as villages and Orang Asli settlements.
TNB is in the process of developing a strategic communication

tool to facilitate communication between TNB and the Orang
Asli near the Jor Reservoir (Semai Clan). The main objective
of this tool is to discuss sediment disposal works proposed
within the Orang Asli customary land and mediate any
misunderstandings that arise.
Engagement of Orang Asli Communities

regarding the development of Nenggiri
Hydroelectric Project
Nenggiri Hydroelectric Project is a 300MW

hydroelectric project in Kelantan. The construction
work has started in March 2022 and will be
completed in 2027. The project is a strategic
initiative to expand TNB’s renewable assets by
reducing our GHG emissions. It will play multi-
fold roles of climate risk adaptation through flood
mitigation and provision of continuous raw water
supply to the surrounding communities and the
State of Kelantan.
Once completed, the Nenggiri Hydroelectric

Power Plant is expected to generate an annual
minimum energy of 351.5GWh. It is estimated
that it will displace and reduce 244,000 tonnes of
CO2 that would otherwise be released by thermal
power plant operations. Additionally, all buildings
built under this project will incorporate some
aspects of energy-efficient features in order to *Picture taken before the COVID-19 pandemic
reduce energy consumption.
In addition to minimising environmental impact, the project is also expected to create positive socioeconomic benefits such as better social infrastructure and
job opportunities to the surrounding communities. Given TNB’s experience in developing three (3) other hydroelectric schemes, extreme care has been taken in
ensuring the interests of the Orang Asli, local communities and wildlife, which will be directly impacted by the project, are protected.

Section
06
FINANCIAL
STATEMENTS
182 Directors’ Report

187 Consolidated Statement of Financial Position
189 Consolidated Statement of Profit or Loss
190 Consolidated Statement of Comprehensive Income
191 Consolidated Statement of Changes in Equity
194 Consolidated Statement of Cash Flows
198 Notes to the Financial Statements
Note 1: General Information Note 24: Payables

Note 2: Basis of Preparation Note 25: Employee Benefits
Note 3: Summary of Significant Note 26: Consumer Deposits
Accounting Policies Note 27: Borrowings
Note 4: Critical Accounting Note 28: Government Development
Estimates and Judgements Grants
Note 5: Property, Plant and Note 29: Other Liabilities
Equipment (‘PPE’)
Note 30: Share Capital
Note 6: Right-of-Use (‘ROU’) Assets
Note 31: Other Reserves
Note 7: Subsidiaries
Note 32: Revenue
Note 8: Joint Arrangements
Note 33: Operating Expenses
Note 9: Associates
Note 34: Staff Cost
Note 10: Goodwill on Consolidation
Note 35: Other Operating Income
Note 11: Investment in Unquoted
Debt Securities Note 36: Foreign Exchange Gain/
(Loss)
Note 12: Deferred Taxation
Note 37: Finance Income/Cost and
Note 13: Long Term Receivables Fair Value Changes of
Note 14: Amounts Due From/(To) Financial Instruments
Subsidiaries Note 38: Taxation and Zakat
Note 15: Leases Note 39: Earnings Per Share (‘EPS’)
Note 16: Financial Assets at FVOCI Note 40: Dividends
Note 17: Contract Balances Note 41: Commitments
Note 18: Financial Assets at FVTPL Note 42: Contingent Liabilities
Note 19: Derivative Financial Note 43: Significant Related Party
Instruments Disclosures
Note 20: Inventories Note 44: Segmental Reporting
Note 21: Receivables, Deposits and Note 45: Financial Instruments
Prepayments
Note 46: Capital Risk Management
Note 22: Deposits, Bank and Cash
Balances Note 47: Significant Acquisitions
During Current and
Note 23: Assets Classified as Held Preceding Financial Years
For Sale and Liabilities
Directly Associated with Note 48: Events After Reporting
the Assets Held For Sale Period
341 Statement by Directors

341 Statutory Declaration
342 Independent Auditors’ Report
DIRECTORS’ REPORT
The Directors hereby submit their report and the audited financial statements of the Group and of the Company for the financial year ended 31 December 2021.
PRINCIPAL ACTIVITIES
The Group and the Company are primarily involved in the business of the generation, transmission, distribution and sales of electricity and those tabulated in
Note 7 to the financial statements, which also includes the details of the subsidiaries of the Group.
There have been no significant changes in these activities during the financial year.
FINANCIAL RESULTS
Group Company
RM’million RM’million
Profit for the financial year attributable to:

- Owners of the Company 3,661.8 1,985.3
- Non-controlling interests 202.9 0
Profit for the financial year 3,864.7 1,985.3
DIVIDENDS
The dividends paid or declared since the previous financial year ended 31 December 2020 were as follows:
RM’million
In respect of the financial year ended 31 December 2020:

Final single tier dividend of 18.0 sen and a special single tier dividend of 40.0 sen per ordinary share, paid on 16 April 2021 3,308.7
In respect of the financial year ended 31 December 2021:

Interim single tier dividend of 22.0 sen per ordinary share, paid on 15 October 2021 1,259.7
The Directors have approved a final single tier dividend of 18.0 sen per share on 5,726,091,371 ordinary shares in respect of the financial year ended
31 December 2021 amounting to a total of RM1,030.7 million. The dividends will be paid on 15 April 2022.
RESERVES AND PROVISIONS
All material transfers to or from reserves and provisions during the financial year are shown in the financial statements.

Creating Value Through Strong Governance Sustainability Statement FINANCIAL STATEMENTS Additional Information
Pages 182 - 348
DIRECTORS’ REPORT
ISSUE OF SHARES
During the financial year, the paid-up share capital of the Company increased due to the vesting of Long Term Incentive Plan (‘LTIP’) granted to eligible
employees, details of which are disclosed in Note 34 to the financial statements. The new ordinary shares rank pari passu in all respects with the existing ordinary
shares of the Company.
TENAGA NASIONAL BERHAD’S LONG TERM INCENTIVE PLAN (‘LTIP’)
The Company implemented a LTIP on 30 April 2015 for a period of 10 years. The LTIP is governed by the by-laws, which are approved by the shareholders at an
Extraordinary General Meeting on 18 December 2014.
The main features and details of the number of grants over the shares of the Company are set out in Note 34 to the financial statements.
The Company has been granted an exemption by the Companies Commission of Malaysia via letter dated 27 January 2022 from having to disclose in this report
the names of the persons to whom LTIP have been granted under the scheme and details of their holdings pursuant to Section 255(1) and Paragraph 5, Part 1,
Fifth Schedule of the Companies Act 2016 except for information on employees who were granted the offering of up to 278,800 and more ordinary shares under
the LTIP scheme.
The employees of the Company who were granted the offering of up to 278,800 and more ordinary shares under the LTIP scheme are as follows:
Number of Number of
ordinary ordinary
shares granted shares granted
under PS* under RS** Total
Datuk Ir. Baharin bin Din 309,300 180,800 490,100

Datuk Fazlur Rahman bin Zainuddin 285,600 167,600 453,200
Datuk Wira Roslan bin Ab Rahman 282,400 165,700 448,100
Dato’ Nor Azman bin Mufti @ Jaafar 276,100 161,800 437,900
Nazmi bin Othman 214,700 146,200 360,900
Datuk Fazil bin Ibrahim 207,200 125,100 332,300
Datuk Ir. Husaini bin Husin 188,500 128,300 316,800
Datuk Ir. Megat Jalaluddin bin Megat Hassan 181,600 122,300 303,900
Dato’ Ir. Roslan bin Abd Rahman 164,700 120,500 285,200
Wan Nazmy bin Wan Mahmood 156,400 122,400 278,800
* PS - Performance Share Grant

** RS - Restricted Share Grant
None of the subsidiaries’ employees were granted offering representing 278,800 or more ordinary shares under the LTIP scheme.

DIRECTORS’ REPORT
DIRECTORS
The Directors who have held office during the financial year and during the period from the end of the financial year to the date of the report are:
Dato’ Sri Hasan bin Arifin Appointed w.e.f. 1 October 2021
Datuk Seri Asri bin Hamidin @ Hamidon
Datuk Amran Hafiz bin Affifudin
Juniwati Rahmat Hussin
Gopala Krishnan a/l K.Sundaram
Ong Ai Lin
Dato’ Roslina binti Zainal
Dato’ Ir. Nawawi bin Ahmad
Datuk Rawisandran a/l Narayanan
Datuk Lau Beng Wei Appointed w.e.f. 1 December 2021
Dato’ Merina binti Abu Tahir Appointed w.e.f. 1 February 2022
Faisal @ Pisal bin Abdul Ghani (Alternate Director to Datuk Seri Asri bin Hamidin @ Hamidon) Appointed w.e.f. 1 March 2022
Noraini binti Che Dan Demised on 26 August 2021
Dato’ Seri Mahdzir bin Khalid Resigned w.e.f. 29 August 2021
Azmin bin Ishak Cessation of Office as Alternate Director w.e.f. 10 February 2022
The Directors of subsidiaries who have held office during the financial year and during the period from the end of the financial year to the date of the report
are set out in the respective subsidiaries’ statutory accounts and the said information is deemed incorporated herein by such reference and made part thereof.
DIRECTORS’ BENEFITS
During and at the end of the financial year, no arrangements subsisted to which the Company is a party, being arrangements with the object or objects of
enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate, other
than as disclosed in the Directors’ interests in shares and debentures.
Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other than benefits shown under Directors’
Remuneration below and in Note 33 to the financial statements) by reason of a contract made by the Company or a related corporation with the Director or with
a firm of which the Director is a partner, or with a company in which the Director has a substantial financial interest.
INDEMNITY AND INSURANCE COSTS
The Group and the Company have their own Directors and Officers Liability Insurance at a premium of RM447,500 to cover the liability of Directors and Officers
in discharging their duties for the period of 1 November 2021 until 31 October 2022.

Pages 182 - 348
DIRECTORS’ REPORT
DIRECTORS’ INTERESTS IN SHARES AND DEBENTURES
According to the Register of Directors’ Shareholdings required to be kept under Section 59 of the Companies Act 2016, none of the Directors who held office at
the end of the financial year held any shares or debentures in the Company or its subsidiaries during the financial year except as follows:
Number of ordinary shares
As at As at
1.3.2021 Vested Disposed 31.12.2021
Datuk Ir. Baharin bin Din 58,000 22,700 0 80,700
Number of ordinary shares

As at As at
1.1.2021 Acquired Disposed 31.12.2021
Datuk Seri Asri bin Hamidin @ Hamidon 0 10,000 0 10,000

Dato’ Roslina binti Zainal 18,400 0 0 18,400
Ordinary shares granted pursuant to the Company’s LTIP granted to the Director during the financial year are as follows:
As at As at
1.3.2021 Granted Vested Forfeited 31.12.2021
Performance Share Grant (‘PS Grant’)

PS Grant 4 29,100 0 0 (29,100) 0
PS Grant 5 41,800 0 0 0 41,800
PS Grant 6 47,400 0 0 0 47,400
PS Grant 7 0 98,700 0 0 98,700
Restricted Share Grant (‘RS Grant’)

RS Grant 4 5,600 0 (5,600) 0 0
RS Grant 5 16,000 0 (8,000) 0 8,000
RS Grant 6 27,200 0 (9,100) 0 18,100
RS Grant 7 0 56,600 0 0 56,600
DIRECTORS’ REMUNERATION
Group Company
2021 2020 2021 2020
RM RM RM RM
Non-Executive Directors’ fees 2,541,269 2,412,715 2,423,871 2,366,715

Non-Executive Directors’ other emoluments 1,804,282 4,152,817 1,798,282 4,148,817
Executive Directors’ remuneration and other emoluments 4,999,050 4,148,830 4,999,050 4,148,830
9,344,601 10,714,362 9,221,203 10,664,362
In respect of the Directors or past Directors of the Company, there were benefits receivable by the Directors from the Company and its subsidiaries as Directors’ other emoluments for their
services. The estimated monetary value of benefits received by the Directors was RM984,022 (2020: RM3,412,000) for the Group and the Company.

DIRECTORS’ REPORT
STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS
(a) Before the financial statements of the Group and of the Company were prepared, the Directors took reasonable steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and
satisfied themselves that all known bad debts had been written off and that adequate provision had been made for doubtful debts; and
(ii) to ensure that any current assets, which were unlikely to be realised in the ordinary course of business, including the values of current assets
as shown in the accounting records of the Group and of the Company had been written down to an amount which the current assets might be
expected so to realise.
(b) At the date of this report, the Directors are not aware of any circumstances:
(i) which would render the amount written off for bad debts or the amount of the provision for doubtful debts inadequate to any substantial extent; or
(ii) which would render the values attributed to current assets in the financial statements of the Group and of the Company misleading; or
(iii) which have arisen and would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company
misleading or inappropriate.
(c) At the date of this report:

(i) there are no charges on the assets of the Group and of the Company which have arisen since the end of the financial year which secures the liabilities
of any other person; and
(ii) there are no contingent liabilities in the Group and in the Company which have arisen since the end of the financial year.
(d) No contingent or other liability of any company in the Group has become enforceable or is likely to become enforceable within the period of twelve
months after the end of the financial year which, in the opinion of the Directors, will or may affect the ability of the Company and its subsidiaries to meet
their obligations when they fall due.
(e) At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Group
and of the Company which would render any amount stated in the respective financial statements misleading.
(f ) In the opinion of the Directors:

(i) the results of the operations of the Group and of the Company during the financial year were not substantially affected by any item, transaction or
event of a material and unusual nature, except as disclosed in Note 47 to the financial statements; and
(ii) there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and
unusual nature likely to affect substantially the results of the operations of the Group and of the Company for the financial year in which this report
is made, except as disclosed in Note 48.
AUDITORS
The auditors, PricewaterhouseCoopers PLT (LLP0014401-LCA & AF 1146), have expressed their willingness to accept re-appointment as auditors.
Details of the auditors’ remuneration are set out in Note 33 to the financial statements.
This report was approved by the Board of Directors on 17 March 2022. Signed on behalf of the Board of Directors:
DATO’ SRI HASAN BIN ARIFIN DATUK IR. BAHARIN BIN DIN
CHAIRMAN PRESIDENT/CHIEF EXECUTIVE OFFICER

Pages 182 - 348
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2021
Group Company
Note 2021 2020 2021 2020
RM’million RM’million RM’million RM’million
NON-CURRENT ASSETS
Property, plant and equipment 5 114,105.6 112,596.1 72,910.5 69,528.7

Right-of-use assets 6 34,711.2 34,906.3 71,222.0 67,082.9
Subsidiaries 7 0 0 7,463.2 822.8
Joint ventures 8 230.7 200.6 0 0
Associates 9 1,636.4 1,138.6 75.7 75.7
Goodwill on consolidation 10 438.4 434.0 0 0
Investment in unquoted debt securities 11 250.1 265.8 250.1 265.8
Tax recoverable 3,522.4 3,522.4 3,522.4 3,522.4
Deferred tax assets 12 372.6 131.0 0 0
Long term receivables 13 167.1 227.8 41.6 51.7
Amounts due from subsidiaries 14 0 0 5,010.4 11,873.2
Finance lease receivables 15 8.7 10.1 0 0
Financial assets at fair value through other comprehensive income
(‘FVOCI’) 16 62.8 57.6 62.1 56.9
Contract cost assets 17 0.8 0 0 0
Financial assets at fair value through profit or loss (‘FVTPL’) 18 70.0 140.5 68.9 82.3
Derivative financial instruments 19 1.2 0 0 0
155,578.0 153,630.8 160,626.9 153,362.4
CURRENT ASSETS
Inventories 20 1,977.1 1,583.8 167.5 376.5

Receivables, deposits and prepayments 21 10,547.7 6,893.7 8,260.2 5,383.7
Contract assets 17 3,318.2 3,197.8 2,982.0 3,084.5
Contract cost assets 17 111.0 125.3 0 0
Tax recoverable 1,472.7 1,765.5 1,088.1 1,432.5
Finance lease receivables 15 1.3 1.1 0 0
Amounts due from subsidiaries 14 0 0 2,990.6 1,898.5
Amounts due from joint ventures 8 43.5 19.4 0 0
Amounts due from associates 9 342.7 183.5 10.5 3.4
Financial assets at FVTPL 18 2,452.3 6,973.9 631.8 5,244.3
Investment in unquoted debt security 11 50.0 0 50.0 0
Deposits, bank and cash balances 22 6,706.1 6,441.5 3,346.1 2,395.0
27,022.6 27,185.5 19,526.8 19,818.4
Assets classified as held for sale 23 0 617.0 0 0
27,022.6 27,802.5 19,526.8 19,818.4

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Group Company
Note 2021 2020 2021 2020
CURRENT LIABILITIES
Payables 24 (8,596.7) (10,534.1) (4,978.9) (7,908.4)

Contract liabilities 17 (492.3) (420.5) (241.9) (259.3)
Derivative financial instruments 19 (0.4) (1.3) (0.4) (1.3)
Lease liabilities 15 (3,098.9) (3,257.8) (5,393.5) (5,611.4)
Amounts due to subsidiaries 14 0 0 (4,136.3) (1,411.9)
Amounts due to associates 9 (183.8) (237.8) (173.7) (228.1)
Current tax liabilities (43.9) (44.8) (17.8) (30.1)
Employee benefits 25 (768.2) (783.8) (745.7) (764.5)
Consumer deposits 26 (7,040.2) (6,606.0) (6,685.1) (6,263.1)
Short term borrowings 27 (6,992.5) (6,409.1) (4,104.0) (3,492.2)
(27,216.9) (28,295.2) (26,477.3) (25,970.3)
Liabilities directly associated with assets classified as held for sale 23 0 (506.1) 0 0
(27,216.9) (28,801.3) (26,477.3) (25,970.3)
NET CURRENT LIABILITIES (194.3) (998.8) (6,950.5) (6,151.9)
TOTAL ASSETS LESS CURRENT LIABILITIES 155,383.7 152,632.0 153,676.4 147,210.5
NON-CURRENT LIABILITIES
Borrowings 27 (44,685.7) (43,043.5) (20,932.3) (18,599.1)

Derivative financial instruments 19 (38.7) (175.7) 0 0
Contract liabilities 17 (4,355.7) (3,753.7) (3,631.6) (3,020.9)
Government development grants 28 (948.4) (961.2) 0 0
Lease liabilities 15 (26,143.0) (25,471.0) (65,797.0) (59,907.7)
Deferred tax liabilities 12 (8,178.2) (7,805.8) (6,265.3) (6,006.9)
Other liabilities 29 (975.3) (902.3) (683.8) (606.3)
Employee benefits 25 (11,666.3) (13,068.9) (10,965.1) (12,314.6)
(96,991.3) (95,182.1) (108,275.1) (100,455.5)
TOTAL NET ASSETS 58,392.4 57,449.9 45,401.3 46,755.0
EQUITY
Share capital 30 11,927.6 11,675.2 11,927.6 11,675.2

Other reserves 31 (6,813.3) (8,242.7) (5,941.6) (6,918.6)
Retained profits 51,494.1 52,400.7 39,415.3 41,998.4
CAPITAL AND RESERVES ATTRIBUTABLE TO OWNERS OF
THE COMPANY 56,608.4 55,833.2 45,401.3 46,755.0
NON-CONTROLLING INTERESTS (‘NCI’) 7(c) 1,784.0 1,616.7 0 0
TOTAL EQUITY 58,392.4 57,449.9 45,401.3 46,755.0
The notes set out on pages 198 to 340 form an integral part of these consolidated financial statements.

Pages 182 - 348
CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the financial year ended 31 December 2021
Group Company
Note 2021 2020 2021 2020
Revenue 32 52,629.5 43,976.0 48,831.3 40,758.3

Operating expenses 33 (44,524.4) (37,132.4) (42,283.8) (34,033.7)
Net loss on impairment of financial instruments 45 (940.2) (546.2) (342.1) (362.4)
Other operating income 35 918.1 1,061.4 763.9 1,000.1
Operating profit 8,083.0 7,358.8 6,969.3 7,362.3
Foreign exchange (loss)/gain 36 (168.5) 26.2 (46.9) 34.9
Share of results of joint ventures 8 29.3 19.8 0 0
Share of results of associates 9 164.2 56.7 0 0
Profit before finance cost 8,108.0 7,461.5 6,922.4 7,397.2
Finance income 37 221.8 317.7 394.1 223.4
Finance cost 37 (3,793.3) (3,668.7) (4,980.0) (4,738.4)
Fair value changes of financial instruments 37 201.8 124.9 (2.5) 188.3
Taxation and zakat 38 (873.6) (619.0) (348.7) (395.2)
Profit for the financial year 3,864.7 3,616.4 1,985.3 2,675.3
Profit attributable to:

- Owners of the Company 3,661.8 3,592.7 1,985.3 2,675.3
- Non-controlling interests 202.9 23.7 0 0
Sen Sen
Earnings per share:

- Basic 39 64.05 63.06
- Diluted 39 63.73 62.79

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Group Company
Note 2021 2020 2021 2020
Other comprehensive income/(expense)
Item that will not be reclassified subsequently to profit or loss:

- Defined benefit plan actuarial gain/(loss) 989.1 (402.0) 928.7 (403.1)
Items that may be reclassified subsequently to profit or loss:
- Foreign currency translation differences 384.9 (34.3) 0 0
- Financial assets at FVOCI 5.2 (1.3) 5.2 (1.3)
- Share of other comprehensive income (‘OCI’) of associates accounted
for using the equity method 9 17.5 (38.7) 0 0
Total other comprehensive income/(expense) 1,396.7 (476.3) 933.9 (404.4)
Total comprehensive income for the financial year 5,261.4 3,140.1 2,919.2 2,270.9
Attributable to:
- Owners of the Company 5,048.1 3,117.7 2,919.2 2,270.9
- Non-controlling interests 7(c) 213.3 22.4 0 0
Total comprehensive income for the financial year 5,261.4 3,140.1 2,919.2 2,270.9

Pages 182 - 348
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to owners of the Company Non-

Ordinary Other Retained controlling Total
Note shares reserves profits interests equity
RM’million RM’million RM’million RM’million RM’million
Group
At 1 January 2021 11,675.2 (8,242.7) 52,400.7 1,616.7 57,449.9
Profit for the financial year 0 0 3,661.8 202.9 3,864.7

Foreign currency translation reserve 31 0 384.9 0 0 384.9
Fair value changes of financial assets at FVOCI 31 0 5.2 0 0 5.2
Share of OCI of associates accounted for using the
equity method 31 0 17.5 0 0 17.5
Employee benefits reserve 31 0 978.7 0 10.4 989.1
Total comprehensive income for the financial year 0 1,386.3 3,661.8 213.3 5,261.4
LTIP:
- Share-based payment expense 31 0 332.5 0 0 332.5
- Reversal of share-based payment expense 31 0 (37.0) 0 0 (37.0)
- Shares issued 31 252.4 (252.4) 0 0 0
Dividends paid:
- Final dividend for FY2020 40 0 0 (1,026.8) 0 (1,026.8)
- Special dividend for FY2020 40 0 0 (2,281.9) 0 (2,281.9)
- Interim dividend for FY2021 40 0 0 (1,259.7) 0 (1,259.7)
Dividend paid to NCI 0 0 0 (1.0) (1.0)
Redemption of Redeemable Preference Shares by NCI 7 0 0 0 (45.0) (45.0)
Total transactions with owners 252.4 43.1 (4,568.4) (46.0) (4,318.9)
At 31 December 2021 11,927.6 (6,813.3) 51,494.1 1,784.0 58,392.4


Attributable to owners of the Company Non-

Ordinary Other Retained controlling Total
Note shares reserves profits interests equity
Group
At 1 January 2020 11,446.1 (7,763.8) 54,299.5 1,300.3 59,282.1
Profit for the financial year 0 0 3,592.7 23.7 3,616.4

Foreign currency translation reserve 31 0 (33.6) 0 (0.7) (34.3)
Fair value changes of financial assets at FVOCI 31 0 (1.3) 0 0 (1.3)
Share of OCI of associates accounted for using the
equity method 31 0 (38.7) 0 0 (38.7)
Employee benefits reserve 31 0 (401.4) 0 (0.6) (402.0)
Total comprehensive (expense)/income for the
financial year 0 (475.0) 3,592.7 22.4 3,140.1
LTIP:
- Share-based payment expense 31 0 272.2 0 0 272.2
- Reversal of share-based payment expense 31 0 (47.0) 0 0 (47.0)
- Shares issued 31 229.1 (229.1) 0 0 0
Dividends paid:
- Final dividend for FY2019 40 0 0 (1,137.4) 0 (1,137.4)
- Special dividend for FY2019 40 0 0 (2,843.4) 0 (2,843.4)
- Interim dividend for FY2020 40 0 0 (1,255.0) 0 (1,255.0)
Dividend paid to NCI 0 0 0 (2.8) (2.8)
Acquisition of shares from NCI 7 0 0 (11.4) 9.5 (1.9)
Acquisition of Redeemable Preference Shares from NCI 7 0 0 (244.3) (36.8) (281.1)
Subscription of Redeemable Preference Shares by NCI 7 0 0 0 225.3 225.3
Acquisition of new subsidiary 7 0 0 0 98.8 98.8
Total transactions with owners 229.1 (3.9) (5,491.5) 294.0 (4,972.3)
At 31 December 2020 11,675.2 (8,242.7) 52,400.7 1,616.7 57,449.9

Pages 182 - 348

Attributable to owners of the Company

Ordinary Other Retained Total
Note shares reserves profits equity
Company
At 1 January 2021 11,675.2 (6,918.6) 41,998.4 46,755.0
Profit for the financial year 0 0 1,985.3 1,985.3

Fair value changes of financial assets at FVOCI 31 0 5.2 0 5.2
Employee benefits reserve 31 0 928.7 0 928.7
Total comprehensive income for the financial year 0 933.9 1,985.3 2,919.2
LTIP:
- Share-based payment expense 31 0 332.5 0 332.5
- Reversal of share-based payment expense 31 0 (37.0) 0 (37.0)
- Shares issued 31 252.4 (252.4) 0 0
Dividends paid:
- Final dividend for FY2020 40 0 0 (1,026.8) (1,026.8)
- Special dividend for FY2020 40 0 0 (2,281.9) (2,281.9)
- Interim dividend for FY2021 40 0 0 (1,259.7) (1,259.7)
Total transactions with owners 252.4 43.1 (4,568.4) (4,272.9)
At 31 December 2021 11,927.6 (5,941.6) 39,415.3 45,401.3
At 1 January 2020 11,446.1 (6,510.3) 44,558.9 49,494.7
Profit for the financial year 0 0 2,675.3 2,675.3

Fair value changes of financial assets at FVOCI 31 0 (1.3) 0 (1.3)
Employee benefits reserve 31 0 (403.1) 0 (403.1)
Total comprehensive (expense)/income for the financial year 0 (404.4) 2,675.3 2,270.9
LTIP:
- Share-based payment expense 31 0 272.2 0 272.2
- Reversal of share-based payment expense 31 0 (47.0) 0 (47.0)
- Shares issued 31 229.1 (229.1) 0 0
Dividends paid:
- Final dividend for FY2019 40 0 0 (1,137.4) (1,137.4)
- Special dividend for FY2019 40 0 0 (2,843.4) (2,843.4)
- Interim dividend for FY2020 40 0 0 (1,255.0) (1,255.0)
Total transactions with owners 229.1 (3.9) (5,235.8) (5,010.6)
At 31 December 2020 11,675.2 (6,918.6) 41,998.4 46,755.0

CONSOLIDATED STATEMENT OF CASH FLOWS

Group Company
2021 2020 2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments for:
Taxation and zakat 873.6 619.0 348.7 395.2
Property, plant and equipment:
- Depreciation 7,193.4 6,997.3 4,640.8 4,758.5
- Written off 199.5 27.3 197.2 27.3
- Loss/(Gain) on disposals 2.4 (8.2) 2.4 (6.5)
- Abandoned projects 106.7 30.8 5.5 30.8
Right-of-use (‘ROU’) assets:
- Depreciation 3,498.1 3,625.1 5,898.5 5,465.5
- Gain on disposals (4.1) (0.1) (4.1) (0.1)
Provision for post-employment benefits 645.7 686.7 587.6 634.7
LTIP:
- Share-based payment expense 332.5 272.2 229.2 177.8
- Reversal of share-based payment expense (37.0) (47.0) (19.8) (31.5)
Foreign exchange translation loss/(gain) 67.4 (71.6) 18.6 (72.7)
Gain on redemption of Redeemable Preference Shares (‘RPS’) in subsidiaries 0 0 0 (110.8)
Remeasurement gain on previously held interest in an associate 0 (231.3) 0 0
(Gain)/Loss on disposal of subsidiaries (25.1) 0 29.3 0
Share of results of joint ventures (29.3) (19.8) 0 0
Share of results of associates (164.2) (56.7) 0 0
Dividend income (2.4) (3.1) (50.8) (175.6)
Finance income (221.8) (317.7) (394.1) (223.4)
Finance cost on:
- Borrowings 2,175.9 1,924.1 755.6 721.5
- Lease liabilities 1,460.1 1,587.9 4,047.8 3,864.9
- Consumer deposits 170.3 158.7 161.8 151.9
- Others 12.4 19.5 14.8 0.1
Release of:
- Customers’ contributions (269.1) (283.0) (224.5) (237.0)
- Deferred income (247.0) (265.8) 0 0
Government development grants:
- Other operating income (62.8) (66.8) 0 0
- Finance cost (25.4) (21.5) 0 0
Impairment losses on:
- Receivables 1,003.6 623.7 804.5 405.9
- Contract assets 70.8 43.8 64.0 36.7
- Amounts due from subsidiaries 0 0 343.5 290.0
- Amounts due from joint ventures 0 28.4 0 0
- Amounts due from associates 0.2 0.2 0.1 0.2
- Financial guarantees 8.2 0 8.2 0
- Investment in unquoted debt security 102.1 37.6 102.1 37.6

Pages 182 - 348

Group Company
2021 2020 2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES (CONTINUED)
Adjustments for: (continued)

Reversal of impairment losses on:
- Receivables (85.3) (133.4) (79.8) (64.3)
- Contract assets (44.3) (50.5) (36.7) (44.0)
- Amounts due from subsidiaries 0 0 (751.3) (299.1)
- Amounts due from joint ventures (2.6) (3.6) 0 0
- Amounts due from associates (0.2) 0 (0.2) 0
- Financial guarantees 0 0 0 (0.6)
- Investment in unquoted debt security (112.3) 0 (112.3) 0
Impairment losses on investments in:
- Subsidiaries 0 0 719.4 164.5
- Associates 291.8 51.6 0 0
Inventories:
- Provision for obsolescence 182.8 163.7 85.2 105.6
- Write back of obsolescence (85.4) (117.9) (65.4) (117.9)
- Written off 172.9 82.5 73.8 78.2
Changes in fair value of financial instruments (201.8) (124.9) 2.5 (188.3)
Gain on variable lease payments (75.7) (125.8) (520.9) (374.4)
Cash from operations before working capital changes 20,739.3 18,647.8 18,866.5 18,076.0
Inventories (663.5) 216.0 115.4 49.5
Receivables (4,393.1) (2,380.4) (3,568.7) (2,570.0)
Contract balances 17.8 203.8 75.1 279.6
Payables (1,899.6) 1,508.8 (3,031.4) 1,671.6
Subsidiaries balances 0 0 2,274.9 (733.4)
Associates balances (212.0) (76.7) (61.5) (51.5)
Joint ventures balances (22.3) (33.7) 0 0
Cash generated from operations 13,566.6 18,085.6 14,670.3 16,721.8
Post-employment benefits paid (781.5) (787.5) (757.8) (757.0)
Contract liabilities received 1,038.7 938.6 817.8 527.1
Consumer deposits received 263.9 226.4 260.2 230.7
Taxation and zakat paid (743.8) (2,944.5) (118.9) (2,735.5)
Net cash flows generated from operating activities 13,343.9 15,518.6 14,871.6 13,987.1


Group Company
2021 2020 2021 2020
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of subsidiaries net of cash and cash equivalent 0 66.9 0 0

Deferred consideration paid 0 (68.3) 0 0
Net cash inflow from disposal of subsidiaries 221.7 0 221.7 0
Cash consideration paid to acquire an associate (674.7) 0 0 0
Additional investments in:
- Subsidiaries 0 0 0 (882.6)
- Unquoted debt securities 0 (104.9) 0 (104.9)
- Financial assets at FVTPL (68,344.7) (68,925.1) (66,826.5) (66,420.0)
- Joint venture 0 (3.4) 0 0
- Associate 0 (25.1) 0 (25.1)
Proceeds from redemptions:
- RPS in subsidiaries 0 0 0 329.3
- RPS in associates 6.6 42.8 0 0
Disposals of financial assets at FVTPL 73,024.2 70,050.6 71,521.5 68,563.0
Dividend income received 65.3 63.7 47.1 172.5
Finance income received 116.4 130.8 46.3 47.2
- Additions (8,411.3) (6,909.7) (7,710.7) (5,165.0)
- Proceeds from disposals 30.4 188.6 32.7 186.9
Proceeds from disposals of ROU assets 3.5 0.1 3.5 0.1
Advances granted to subsidiaries 0 0 (671.9) (200.6)
Net cash flows used in investing activities (3,962.6) (5,493.0) (3,336.3) (3,499.2)
CASH FLOWS FROM FINANCING ACTIVITIES
Government development grants received 2.2 9.3 0 0

Long term borrowings:
- Drawdowns 3,000.0 3,112.6 3,000.0 3,000.0
- Repayments (4,379.3) (911.3) (3,505.5) (105.5)
Short term borrowings:
- Drawdowns 4,266.1 3,341.9 3,750.0 2,490.0
- Repayments (1,000.8) (3,538.7) (450.0) (2,740.0)
Finance cost paid (2,280.3) (2,224.8) (982.0) (940.3)
Repayments of lease obligations:
- Principal (2,700.2) (2,738.5) (3,853.0) (3,514.8)
- Interest (1,459.8) (1,597.4) (4,018.8) (3,783.8)

Pages 182 - 348

Group Company
2021 2020 2021 2020
CASH FLOWS FROM FINANCING ACTIVITIES (CONTINUED)
Dividends paid to shareholders (4,568.4) (5,235.8) (4,568.4) (5,235.8)

Dividends paid to NCI (1.0) (2.8) 0 0
Acquisition of PEC from NCI 0 (32.4) 0 0
Subscription of RPS by NCI 0 225.3 0 0
Acquisition of RPS from NCI 0 (281.1) 0 0
Redemption of RPS from NCI (45.0) 0 0 0
Acquisition of shares from NCI 0 (1.9) 0 0
Net (increase)/decrease in debt reserve accounts (12.5) 4.1 0 0
Net decrease/(increase) in cash at bank, held in trust 77.3 (34.1) 0 0
Net decrease/(increase) in restricted cash 105.9 (84.6) 0 0
Net decrease in deposits maturing more than 90 days 176.6 2,547.0 0 2,200.2
Net cash flows used in financing activities (8,819.2) (7,443.2) (10,627.7) (8,630.0)
NET INCREASE IN CASH AND CASH EQUIVALENTS 562.1 2,582.4 907.6 1,857.9
EFFECTS OF CHANGES IN FOREIGN CURRENCY 49.8 (0.2) 43.5 (10.0)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL YEAR 5,023.0 2,440.8 2,395.0 547.1
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
(NOTE 22) 5,634.9 5,023.0 3,346.1 2,395.0
The changes in liabilities arising from financing activities have been disclosed in Notes 15, 27 and 28 respectively.

NOTES TO THE FINANCIAL STATEMENTS

31 December 2021
1 GENERAL INFORMATION
The Group and the Company are primarily involved in the business of the generation, transmission, distribution and sales of electricity and those tabulated
in Note 7 to these financial statements, which also includes the details of the subsidiaries of the Group.
There have been no significant changes in these activities of the Group and of the Company during the financial year.
The Company follows the Incentive Based Regulation (‘IBR’) framework for the regulated business.
The Company is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities
Berhad.
The address of the registered office of the Company is Pejabat Setiausaha Syarikat, Tingkat 2, Ibu Pejabat Tenaga Nasional Berhad, No. 129, Jalan Bangsar,
59200 Kuala Lumpur, Malaysia.
2 BASIS OF PREPARATION
The financial statements of the Group and of the Company have been prepared in accordance with the provisions of the Malaysian Financial Reporting
Standards (‘MFRS’), International Financial Reporting Standards (‘IFRS’) and the requirements of the Companies Act 2016 in Malaysia. The Group has taken
into consideration the COVID-19 (Coronavirus) impact and the current economic environment on the basis of preparation of these financial statements.
The Directors continue to consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
The financial statements have been prepared under the historical cost convention, except as disclosed in Note 3 and respective notes in the financial
statements.
The preparation of financial statements in conformity with MFRS requires the use of certain critical accounting estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the reported period. It also requires Directors to exercise their judgement in the process of applying the
Group’s and the Company’s accounting policies. Although these estimates and judgements are based on the Directors’ best knowledge of current events
and actions, actual results may differ. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements are disclosed in Note 4.
(a) Amendments to published standards that are effective and applicable to the Group and the Company.
The Group and the Company have applied the following amendments for the first time:
Effective for financial year beginning on 1 January 2021:
Amendments to MFRS 7 Financial Instruments: Disclosures, Interest Rate Benchmark Reform Phase 2
MFRS 9 Financial Instruments and MFRS 16 Leases
Amendments to MFRS 16 Leases COVID-19-Related Rent Concessions
The amendments listed above did not have any significant impact on the amounts recognised in prior periods and are not expected to significantly
affect the current or future periods.

Pages 182 - 348

31 December 2021
2 BASIS OF PREPARATION (CONTINUED)
(b) New standard and amendments to the published standards that are applicable to the Group and the Company but not yet effective.
The Group and the Company will apply the new standard and amendments to the published standards in the following periods:
Amendments to MFRS 16 Leases COVID-19-Related Rent Concessions beyond 30 June 2021

Amendments to MFRS 3 Business Combinations Reference to the Conceptual Framework
Amendments to MFRS 9 Financial Instruments Annual Improvements to MFRS Standards 2018-2020
Amendments to MFRS 116 Property, Plant and Equipment Proceeds before Intended Use
Amendments to MFRS 137 Provisions, Contingent Liabilities and Onerous Contracts – Cost of Fulfilling a Contract
Contingent Assets
MFRS 17 Insurance Contracts

Amendments to MFRS 101 Presentation of Financial Statements Classification of Liabilities as Current or Non-current
Amendments to MFRS 101 Presentation of Financial Statements Disclosure of Accounting Policies
Amendments to MFRS 108 Accounting Policies, Changes in Accounting Definition of Accounting Estimates
Estimates and Errors
Amendments to MFRS 112 Income Taxes Deferred Tax related to Assets and Liabilities arising from a Single
Transaction
Effective date deferred by Malaysian Accounting Standards Board:
Amendments to MFRS 10 Consolidated Financial Statements and MFRS Sale or Contribution of Assets between an Investor and its Associate
128 Investments in Associates and Joint Ventures or Joint Venture
The adoption of the above applicable new standard, amendments to published standards, interpretations and improvements to existing standards
are not expected to have a material impact on the financial statements of the Group and of the Company except for MFRS 17 for which the Group is
assessing the impact to the financial statements.
There are no other standards, amendments and improvements to published standards and interpretations to existing standards that are not effective
that would be expected to have a material impact on the Group and the Company.
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items that are considered material in relation to
the financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Subsidiaries and basis of consolidation
(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when:
• exposed to, or has rights to, variable returns from its involvement with the entity;
• has the ability to affect those returns through its power to direct the relevant activities of the entity; and
• the existence and effect of potential voting rights are considered only when such rights are substantive when assessing control.
In the Company’s separate financial statements, investments in subsidiaries are stated at cost less accumulated impairment losses. On disposal
of such investments, the difference between net disposal proceeds and their carrying amounts is included in the statement of profit or loss.


31 December 2021
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Subsidiaries and basis of consolidation (continued)
(ii) Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. The characteristics of those
financial statements are:
• the financial statements of the subsidiaries are prepared for the same reporting date as the Company.
• subsidiaries are consolidated from the date on which the Group obtains control, and continue to be consolidated until the date that
such control ceases.
• intragroup balances, transactions and unrealised gains or losses are eliminated in full.
• uniform accounting policies are adopted in the consolidated financial statements for like transactions and events in similar circumstances.
The Group applies the acquisition method to account for business combinations. The consideration transferred for acquisition of a subsidiary
is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred
includes the fair value of any asset or liability resulting from a contingent consideration arrangement and fair value of any pre-existing equity
interest in the subsidiary. Acquisition-related costs are expensed as incurred. Identifiable assets acquired, liabilities and contingent liabilities
assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.
In a business combination achieved in stages, the carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured
at its acquisition-date fair value and the resulting gain or loss is recognised in the statement of profit or loss.
The excess of the consideration transferred, the amount of any NCI in the acquiree and the acquisition-date fair value of any previous equity
interest in the acquiree over the fair value of the Group's share of the identifiable net assets acquired is recorded as goodwill. If this is less than
the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the gain is recognised in the statement of profit or
loss. Refer to Note 10 for accounting policy on goodwill.
NCI is the equity in a subsidiary not attributable, directly or indirectly, to a parent. On an acquisition-by-acquisition basis, the Group measures
any NCI in the acquiree either at fair value or at the NCI’s proportionate share of the acquiree’s identifiable net assets. At the end of the
reporting period, NCI consists of amount calculated on the date of combinations and its share of changes in the subsidiary’s equity since the
date of combination.
All earnings and losses of the subsidiary are attributed to the parent and the NCI, even if the attribution of losses to the NCI results in a debit
balance in the shareholders’ equity.
(iii) Changes in ownership interest
When the Group ceases to consolidate because of a loss of control, any retained interest in the entity is remeasured to its fair value with the
change in carrying amount recognised in the statement of profit or loss. This fair value becomes the initial carrying amount for the purposes
of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously
recognised in OCI in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may
mean that amounts previously recognised in OCI are reclassified to profit or loss. Gains or losses on the disposal of subsidiaries include the
carrying amount of goodwill relating to the subsidiaries sold.
(b) Transactions with NCI
Transactions with NCI that do not result in loss of control are accounted for as transactions with equity owners of the Group. A change in ownership
interest results in an adjustment between the carrying amounts of the controlling and NCI to reflect their relative interests in the subsidiary. Any
differences between the amount of the adjustment to NCI and any consideration paid or received are recognised in equity attributable to owners of
the Group.

Pages 182 - 348

31 December 2021
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Impairment of non-financial assets
Assets that are subject to amortisation are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. Impairment loss is recognised in the statement of profit or loss for the amount by which the carrying amount of the
asset exceeds its recoverable amount. The recoverable amount is the higher of fair value less cost to sell and its value in use (‘VIU’). For the purpose
of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent
of the cash inflows from other assets or groups of assets (cash-generating units).
Non-financial assets other than goodwill previously impaired are reviewed for possible reversal of the impairment at each reporting date. Any
subsequent increase in recoverable amount is recognised in the statement of profit or loss.
(d) Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognised
in the statement of profit or loss as an expense as incurred.
Expenditure on development activities, whereby the application research findings are applied to a plan or design for the production of new or
substantially improved products and processes, is capitalised only when all of the following criteria are fulfilled:
(i) it is technically feasible to complete the intangible asset so that it will be available for use or sale;
(ii) management intends to complete the intangible asset and use or sell it;
(iii) there is an ability to use or sell the intangible asset;
(iv) it can be demonstrated how the intangible asset will generate probable future economic benefits;
(v) adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available; and
(vi) the expenditure attributable to the intangible asset during its development can be reliably measured.
Capitalised development costs are recognised as intangible assets and amortised from the point at which the asset is ready for use on a straight line
method over its useful life.
The expenditure capitalised includes the cost of materials, direct labour and overheads costs that are directly attributable to preparing the assets
for its intended use. Other development expenditure is recognised in the statement of profit or loss as incurred. Development costs previously
recognised as an expense are not recognised as an asset in a subsequent period.
All other significant accounting policies are disclosed in their respective notes.
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continuously evaluated by the Directors and are based on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the circumstances.
The Group and the Company make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equate
to the related actual results. To enhance the information content of the estimates, certain key variables that are anticipated to have a material impact on
the Group’s and the Company’s results and financial positions are tested for sensitivity to changes in the underlying parameters.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
next financial year are outlined below:
(a) Impairment of property, plant and equipment ('PPE')
The Group and the Company assess impairment of assets whenever the events or changes in circumstances indicate that the carrying amount of an
asset may not be recoverable, i.e., the carrying amount of the asset is more than the recoverable amount.
Recoverable amount is measured at the higher of the fair value less cost to sell for that asset and its VIU. The VIU is the net present value of the
projected future cash flows derived from that asset discounted at an appropriate discount rate. Projected future cash flows are based on the Group’s
and the Company’s estimates calculated based on historical, sector and industry trends, general market and economic conditions, changes in
technology and other available information.


31 December 2021
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
next financial year are outlined below: (continued)
(b) Impairment of subsidiaries and associates
The Group and the Company assess impairment of its investment in subsidiaries and associates whenever the events or changes in circumstances
indicate that the carrying amount may not be recoverable i.e. the carrying amount is more than the recoverable amount. Recoverable amount
is measured at the higher of the fair value less cost to sell and its VIU. The VIU is the net present value of the projected future cash flow derived
discounted at an appropriate discount rate. Projected future cash flows are based on the Group’s and the Company’s estimates calculated based
on historical, sector and industry trends, general market and economic conditions, changes in technology and other available information. The
assumptions used, results and sensitivity of the impairment assessments are disclosed in Notes 7 and 9.
(c) Impairment of goodwill
The Group tests goodwill for impairment annually in accordance with its accounting policy and whenever events or change in circumstances
indicate that this is necessary within the financial period. This requires an estimation of the VIU of the cash generating unit to which the goodwill is
allocated. Estimating the VIU requires the Group to make an estimate of the expected future cash flows from the cash generating unit to the Group
and also to apply a suitable discount rate in order to calculate the present value of those cash flows. The assumptions used, results and sensitivity of
the impairment assessment of goodwill are disclosed in Note 10.
(d) Measurement of expected credit loss (‘ECL’) allowance for financial assets
The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Group and the Company use
judgements in making these assumptions and selecting the inputs to the impairment calculation, based on the Group’s and the Company’s past
history, existing market conditions as well as forward looking estimates at the end of each reporting period. Details of key assumptions and inputs
used are disclosed in Note 45.
(e) Restoration costs of leased assets
The Group recognises a provision for restoration costs for leased assets where contracts contain an obligation to remove the asset after the end
of the contract and to restore the site to its original condition. The estimates of the restoration costs are based on the quoted price given by the
external contractor for a particular asset. The provision recognised is the present value of the estimated restoration costs discounted using a risk free
pre-tax rate. An amount equivalent to the provision is recognised within PPE and ROU assets depending on in which category the underlying asset is
recognised, and is depreciated over the useful lives of the related assets. The unwinding of the discount on the provision is included in finance cost.
The details of the provision are disclosed in Note 29.
(f ) Estimation of income taxes
(i) Income tax
Income tax is estimated based on the rules governed under the Income Tax Act, 1967.
Differences in determining the capital allowances, deductibility of certain expenses and subsequent utilisation of reinvestment allowance
may arise during the estimation of the provision for income tax between tax calculated at the statement of financial position date, and the
final submission to the tax authority as a result of obtaining further detailed information that may become available subsequent to the
statement of financial position date.
Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the
income tax provisions and deferred tax balance in the period in which such determination is made.
The Group and the Company have recorded tax recoverable for which the Group and the Company believe that there is a reasonable basis for
recognition. Where the final tax outcome of this matter is different from the amount that was initially recorded, such difference may cause a
material adjustment to the carrying amount of the tax recoverable balance recorded in the period in which such determination is made.

Pages 182 - 348

31 December 2021
(f ) Estimation of income taxes (continued)
(i) Income tax (continued)
On 23 November 2015, the Inland Revenue Board (‘IRB’) had disallowed the Company’s reinvestment allowance (‘RIA’) claims for the Years
of Assessment (‘YAs’) 2013 and 2014 and had issued notices of additional assessments (‘Notices’) of RM2,068.2 million to the Company. The
Company had filed an appeal to the Special Commissioners of the Income Tax (‘SCIT’) against the Notices.
On 28 November 2019, the IRB had also disallowed the Company’s RIA claims for the YAs 2015, 2016 and 2017 by issuing Notices of RM3,977.9
million to the Company. The Company had commenced a judicial review application to the High Court against the said Notices. The leave
application was heard on 5 October 2020 and pending decision, the Company was granted an interim stay against the payment of the
disputed tax.
On 30 December 2020, the Company and the IRB recorded a consent order in relation to the judicial review filed for the YAs 2015, 2016 and
2017. Pursuant to the consent order, the Court had granted a stay of proceedings against the enforcement of the IRB’s notices of additional
assessment and leave to commence judicial review. The substantive hearing which was initially fixed on 16 March 2022 has been vacated by
the High Court. The High Court proceeded to reschedule the hearing to 21 June 2022.
On 13 July 2020, the IRB had also disallowed the Company’s RIA claims for the YA 2018 by issuing notice of additional assessment of RM1,812.5
million to the Company. The Company had commenced judicial review application against the said Notices and the leave application was heard
by the High Court on 21 September 2020 and the High Court had granted leave to the Company to commence judicial review proceedings
against the IRB on 30 September 2020. On 21 January 2021, the Company and the IRB recorded a consent order in relation to the judicial
review filed for the YA 2018.
Pursuant to the consent order, the High Court has granted a stay of proceedings against the enforcement of the IRB’s notice of additional assessment.
Subsequently on 13 January 2022, the High Court heard TNB’s judicial review application and on 8 February 2022, the High Court had allowed with
cost the Company’s judicial review application to set aside the IRB’s notice of additional assessment dated 13 July 2020 for the YA 2018.
The High Court agreed with the Company’s submission that TNB is in the business of manufacturing electricity and as such, TNB is entitled to
claim RIA on the capital expenditure which was incurred in YA 2018 in the course of expanding, modernising and automating TNB’s business.
Separately on 8 February 2022, the IRB had filed a notice of appeal before the Court of Appeal against the decision of the High Court. The Court
of Appeal had fixed a case management on 28 March 2022.
As at 31 December 2021, the Group and the Company recorded a tax recoverable of RM3,522.4 million from the IRB arising from the
resubmission of tax computations for the YAs 2003 to 2006 and 2008 to 2012 pursuant to the explicit approval given by the IRB on 21 January
2013 on the eligibility of the Company in claiming the RIA and the payment of RM1,757.3 million which had been made to IRB in December
2020 in respect of YAs 2016 and 2017.
In addition, the Group and the Company have not recorded the potential additional tax liability arising from the tax impact if the RIA claimed
is disallowed and the Company loses its appeal. The realisation of this tax recoverable and the potential tax liability is dependent on the
outcome of judgement on the RIA claims by the SCIT and by the Kuala Lumpur High Court, including if there is a subsequent appeal by either
party, as disclosed in Note 42.
The Directors have performed an assessment on the tax recoverable of RM3,522.4 million and the potential tax liability based on legal view
obtained from external legal counsel and the facts surrounding its RIA claims. The Directors have exercised judgement that there is sufficient
evidence and case law to support the Company’s appeal against the Notices.
On 16 November 2021, Kapar Energy Ventures Sdn. Bhd.’s (‘KEV’) had commenced a judicial review against the Minister of Finance at the High
Court to challenge the matters on IRB disallowing the interest expenses incurred by KEV in relation to the Redeemable Unsecured Loan Stock
granted to KEV by TNB and Malakoff Corporation Berhad and KEV’s revision of revenue for the YAs 2004 to 2009.


31 December 2021
(f ) Estimation of income taxes (continued)
(i) Income tax (continued)
Based on the legal advice obtained from its tax solicitors, KEV is of the view that it has a good basis in law to contend that the said Notices were
incorrectly raised by the IRB and on this basis the Directors are of the opinion that no provision is required in the financial statements for the
potential tax liability up to the reporting date. Further details on the judicial review are as disclosed in Note 42.
(ii) Deferred tax assets
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences or unused tax losses can be utilised. This involves judgement regarding the future financial performance of the particular entity in
which the deferred tax asset has been recognised, as disclosed in Note 12.
(g) Post-employment employee benefits
The Group and the Company provide both Retirement Benefit Plan and Post Retirement Medical Plan for certain employees. The present value of
the employee benefits obligations depends on a number of factors that are determined on an actuarial basis using certain assumptions. The key
assumptions used in determining the net cost/(income) for the employee benefits include discount rate, medical claim inflation rate and salary
increment rate. Any changes in these assumptions will impact the carrying amount of employee benefits obligations, as disclosed in Note 25.
• Discount rate
The Group and the Company determine the appropriate discount rate at the end of each financial period. This is the interest rate that should
be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In
determining the appropriate discount rate, the Group and the Company consider the interest rates of high-quality corporate bonds that
are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related
employee benefits obligations.
• Medical claim inflation rate
The medical claim inflation rate for general practitioner, hospitalisation, specialist and dialysis medical claims, as determined by the Group and
the Company are based on the annualised increase in average claims over the past 4 years.
• Salary increment rate
The salary increment rate for employees receiving the Retirement Benefit Plan as determined by the Group and the Company is based on
the average salary increment rate for the past 12 years and considerations for price inflation, real salary increase, promotions and Collective
Agreement (‘CA’) negotiation.
(h) Group’s sustainability pathway consideration
The Group’s sustainability pathway is to reduce emission intensity by 35.0%, halve coal generation capacity by 2035, aspire to achieve net zero
emissions and coal free by 2050. Based on this sustainability pathway, the Group has assessed whether climate change risks have affected the
reasonable and supportable assumption used to estimate the cash flow projections and the estimated useful lives of the generation assets. The
revisions and assessments in relation to the climate change and sustainability pathway do not have a material impact on the financial statements of
the Group and the Company. Further details are as disclosed in Note 5.

Pages 182 - 348

31 December 2021
5 PROPERTY, PLANT AND EQUIPMENT (‘PPE’)
Accounting Policy
PPE are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to
the construction or acquisition of the items and bringing them to the location and condition so as to render them operational in the manner intended
by the Group and the Company and allocated according to its components.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the items can be measured reliably. The carrying amount of the replaced part is derecognised.
The cost of major overhaul/inspection is recognised in the asset’s carrying amount as a replacement and the remaining carrying amount of the
previous major overhaul/inspection is derecognised.
Major spare parts and standby equipment are recognised as assets when the Group and the Company expect to use for more than one period.
Similarly, if the spare parts and servicing equipment can be used only in connection with an item of PPE, they are accounted for as PPE.
Gains or losses on disposal of PPE are determined by reference to their carrying amount and are included in profit or loss.
Freehold land and capital work-in-progress are not depreciated. Other PPE are depreciated on the straight line method to allocate the cost to their
residual values over their estimated useful lives, summarised as follows:
Buildings and civil works 10 - 60 years
Plant and machinery 3 - 50 years
Lines and distribution mains 10 - 60 years
Distribution services 25 years
Meters 10 - 15 years
Public lighting 15 - 25 years
Furniture, fittings and office equipment 3 - 15 years
Motor vehicles 5 - 15 years
Residual values and useful lives of assets are reviewed and adjusted if appropriate, on an annual basis.
At the end of the reporting period, the Group and the Company assess whether there is any indication of impairment. If such indications exist, an
analysis is performed to assess whether the carrying amount of the asset is fully recoverable. An impairment loss is recognised if the carrying amount
exceeds the recoverable amount (Note 3(c)).
The Group has revised the estimated useful lives of generation assets based on the trend within the power generation industry and the Group’s
sustainability pathway. Accordingly, the useful lives of the gas fired power plants’ plant and machinery and hydro power plant dams have been
extended for additional 5 years and 40 years respectively, based on the track records and research information available. There was a revision to the
useful lives of the coal fired power plants related assets which is in line with the Group’s aspiration to discontinue coal plants.


31 December 2021
5 PROPERTY, PLANT AND EQUIPMENT (‘PPE’) (CONTINUED)
Transfers/
Exchange Adjustments/
As at rate Reclassification/ As at
1.1.2021 adjustments Additions Disposals Write offs 31.12.2021
RM’million RM’million RM’million RM’million RM’million RM’million
2021
Group
Cost
Freehold land 2,843.6 0 324.9 0 (2.5) 3,166.0
Buildings and civil works 24,075.7 0 20.5 13.3 1,269.7 25,379.2
26,919.3 0 345.4 13.3 1,267.2 28,545.2
Plant and machinery 88,784.1 102.7 295.4 (685.5) 5,799.9 94,296.6

Lines and distribution mains 52,247.2 0 218.2 (83.0) 2,019.0 54,401.4
Distribution services 5,099.3 0 3.6 0 227.8 5,330.7
Meters 3,604.1 0 3.6 (86.8) 490.6 4,011.5
Public lighting 1,676.6 0 0 (0.2) 285.3 1,961.7
Furniture, fittings and office equipment 3,427.5 0.1 457.1 (17.4) 1.7 3,869.0
Motor vehicles 787.0 0 83.8 (30.5) 4.9 845.2
182,545.1 102.8 1,407.1 (890.1) 10,096.4 193,261.3
Capital work-in-progress 14,872.0 0 7,484.9 (259.8) (9,866.4) 12,230.7
197,417.1 102.8 8,892.0 (1,149.9) 230.0 205,492.0
Released on
Exchange Charged disposals/
As at rate for the Transfers/ As at
1.1.2021 adjustments financial year Write offs 31.12.2021
2021
Group
Accumulated depreciation
Buildings and civil works 8,157.7 0 645.5 31.1 8,834.3
Plant and machinery 39,954.9 3.2 3,806.0 (499.1) 43,265.0
Lines and distribution mains 27,583.3 0 1,786.7 (64.4) 29,305.6
Distribution services 3,207.8 0 188.9 0 3,396.7
Meters 2,249.6 0 197.7 (62.9) 2,384.4
Public lighting 559.4 0 117.6 (0.2) 676.8
Furniture, fittings and office equipment 2,518.0 0 412.9 (5.4) 2,925.5
Motor vehicles 590.3 0 38.1 (30.3) 598.1
84,821.0 3.2 7,193.4 (631.2) 91,386.4

Pages 182 - 348

31 December 2021
Transfers/
Exchange Acquisition Asset Adjustments/
As at rate of classified as Reclassification/ As at
1.1.2020 adjustments subsidiary held for sale Additions Disposals Write offs 31.12.2020
RM’million RM’million RM’million RM’million RM’million RM’million RM’million RM’million
2020
Group
Cost
Freehold land 2,509.3 0 0 (1.3) 336.1 (0.5) 0 2,843.6
Buildings and civil works 24,309.5 (0.1) 0 (2.1) 7.9 (173.9) (65.6) 24,075.7
26,818.8 (0.1) 0 (3.4) 344.0 (174.4) (65.6) 26,919.3
Plant and machinery 83,494.7 (32.2) 2,540.5 (504.6) 129.4 (114.6) 3,270.9 88,784.1
Lines and distribution mains 49,192.0 0 0 0 31.8 (18.4) 3,041.8 52,247.2
Distribution services 4,856.4 0 0 0 9.1 0 233.8 5,099.3
Meters 3,270.0 0 0 0 2.9 (20.8) 352.0 3,604.1
Public lighting 1,164.8 0 0 0 0 0.4 511.4 1,676.6
Furniture, fittings and office
equipment 3,029.4 (0.4) 0 (6.0) 484.1 (85.7) 6.1 3,427.5
Motor vehicles 728.0 (0.1) 0 (1.2) 57.8 (13.7) 16.2 787.0
172,554.1 (32.8) 2,540.5 (515.2) 1,059.1 (427.2) 7,366.6 182,545.1
Capital work-in-progress 15,863.1 0 0 (28.5) 6,084.6 (139.3) (6,907.9) 14,872.0
188,417.2 (32.8) 2,540.5* (543.7) #
7,143.7 (566.5) 458.7 197,417.1
Released on
Exchange Asset Charged disposals/
As at rate classified as for the Transfers/ As at
1.1.2020 adjustments held for sale financial year Write offs 31.12.2020
2020
Group
Buildings and civil works 7,509.7 0 (2.0) 627.4 22.6 8,157.7
Plant and machinery 36,309.6 2.3 11.8 3,773.8 (142.6) 39,954.9
Lines and distribution mains 25,816.8 0 0 1,781.0 (14.5) 27,583.3
Distribution services 3,021.7 0 0 186.1 0 3,207.8
Meters 2,093.4 0 0 172.4 (16.2) 2,249.6
Public lighting 465.8 0 0 93.2 0.4 559.4
Furniture, fittings and office equipment 2,279.6 0 (5.2) 326.3 (82.7) 2,518.0
Motor vehicles 569.0 0 (1.2) 37.1 (14.6) 590.3
78,065.6 2.3 3.4 #
6,997.3 (247.6) 84,821.0
Accumulated impairment losses

Plant and machinery 385.6 0 (385.6)# 0 0 0


31 December 2021
Transfers/
Adjustments/
As at Reclassification/ As at
1.1.2021 Additions Disposals Write offs 31.12.2021
2021
Company
Cost
Freehold land 2,558.5 324.9 0 129.9 3,013.3
Buildings and civil works 15,258.0 0 0 482.8 15,740.8
17,816.5 324.9 0 612.7 18,754.1
Plant and machinery 43,489.7 0 (661.6) 2,495.5 45,323.6

Lines and distribution mains 49,389.3 0 (82.9) 2,022.1 51,328.5
Distribution services 4,762.4 0 0 220.2 4,982.6
Meters 3,495.1 0 (86.7) 488.7 3,897.1
Public lighting 1,675.5 0 (0.2) 284.7 1,960.0
Furniture, fittings and office equipment 2,903.1 425.0 (0.8) (3.1) 3,324.2
Motor vehicles 613.3 71.7 (27.7) 5.9 663.2
124,144.9 821.6 (859.9) 6,126.7 130,233.3
Capital work-in-progress 7,896.2 7,130.7 (26.2) (5,796.8) 9,203.9
132,041.1 7,952.3 (886.1) 329.9 139,437.2
Released on
Charged disposals/
As at for the Transfers/ As at
1.1.2021 financial year Write offs 31.12.2021
2021
Company
Buildings and civil works 4,796.1 362.3 (0.1) 5,158.3
Plant and machinery 23,022.4 1,727.5 (471.0) 24,278.9
Lines and distribution mains 26,431.7 1,667.0 (64.4) 28,034.3
Distribution services 2,994.1 172.7 0 3,166.8
Meters 2,172.4 191.2 (62.9) 2,300.7
Public lighting 558.6 117.5 (0.2) 675.9
Furniture, fittings and office equipment 2,086.1 375.3 (0.8) 2,460.6
Motor vehicles 451.0 27.3 (27.1) 451.2
62,512.4 4,640.8 (626.5) 66,526.7

Pages 182 - 348

31 December 2021
Transfers/
Adjustments/
As at Reclassification/ As at
1.1.2020 Additions Disposals Write offs 31.12.2020
2020
Company
Cost
Freehold land 2,512.1 317.8 (0.5) (270.9) 2,558.5
Buildings and civil works 18,156.7 0 (173.4) (2,725.3) 15,258.0
20,668.8 317.8 (173.9) (2,996.2) 17,816.5
Plant and machinery 45,156.6 0 (92.8) (1,574.1) 43,489.7

Lines and distribution mains 46,373.2 0 (18.3) 3,034.4 49,389.3
Distribution services 4,528.6 0 0 233.8 4,762.4
Meters 3,158.3 0 (20.6) 357.4 3,495.1
Public lighting 1,164.7 0 0.4 510.4 1,675.5
Furniture, fittings and office equipment 2,632.9 457.4 (84.7) (102.5) 2,903.1
Motor vehicles 588.6 43.2 (12.3) (6.2) 613.3
124,271.7 818.4 (402.2) (543.0) 124,144.9
Capital work-in-progress 9,967.6 5,331.0 (54.8) (7,347.6) 7,896.2
134,239.3 6,149.4 (457.0) (7,890.6) ^
132,041.1
Released on
Charged disposals/
As at for the Transfers/ As at
1.1.2020 financial year Write offs 31.12.2020
2020
Company
Buildings and civil works 6,005.5 420.7 (1,630.1) 4,796.1
Plant and machinery 24,380.2 1,913.8 (3,271.6) 23,022.4
Lines and distribution mains 24,771.8 1,674.4 (14.5) 26,431.7
Distribution services 2,824.4 169.7 0 2,994.1
Meters 2,018.1 170.5 (16.2) 2,172.4
Public lighting 465.8 93.2 (0.4) 558.6
Furniture, fittings and office equipment 1,967.5 290.4 (171.8) 2,086.1
Motor vehicles 460.3 25.8 (35.1) 451.0
62,893.6 4,758.5 (5,139.7)^ 62,512.4


31 December 2021
Group Company
2021 2020 2021 2020
Net book value

Freehold land 3,166.0 2,843.6 3,013.3 2,558.5
Buildings and civil works 16,544.9 15,918.0 10,582.5 10,461.9
19,710.9 18,761.6 13,595.8 13,020.4
Plant and machinery 51,031.6 48,829.2 21,044.7 20,467.3

Lines and distribution mains 25,095.8 24,663.9 23,294.2 22,957.6
Distribution services 1,934.0 1,891.5 1,815.8 1,768.3
Meters 1,627.1 1,354.5 1,596.4 1,322.7
Public lighting 1,284.9 1,117.2 1,284.1 1,116.9
Furniture, fittings and office equipment 943.5 909.5 863.6 817.0
Motor vehicles 247.1 196.7 212.0 162.3
101,874.9 97,724.1 63,706.6 61,632.5
Capital work-in-progress 12,230.7 14,872.0 9,203.9 7,896.2
114,105.6 112,596.1 72,910.5 69,528.7
* It relates to the recognition of Vantage Solar Investments S.A.R.L. (formerly known as Vortex Solar Investments S.A.R.L.) (‘VSI’) as a subsidiary during the financial year 2020 as
disclosed in Note 47.
#
During the financial year 2020, the carrying amount of TNB Liberty Power Limited (‘LPL’)’s PPE has been reclassified as assets held for sale. On 30 November 2021, the subsidiary
was disposed as disclosed in Note 23.
^
The transfers, adjustments or reclassification includes the PPE amounting to RM3,092.7 million transferred at net book value to TNB Power Generation Sdn. Bhd. (‘TPGSB') during
the financial year 2020.
The title deeds of certain lands are in the process of being registered in the name of the Company and certain subsidiaries.
Net book value of PPE pledged as security for borrowings are disclosed in Note 27.
Included in the capital work-in-progress is interest capitalised during the financial year for the Group and the Company of RM274.4 million (2020: RM466.3
million) and RM249.4 million (2020: RM259.6 million) respectively.
The capitalisation rate used to determine the amount of borrowing cost eligible for capitalisation is 5.3% (2020: 5.5%).

Pages 182 - 348

31 December 2021
6 RIGHT-OF-USE (‘ROU’) ASSETS
Accounting Policy
A lease is a contract, or part of a contract, whereby the lessor conveys to the lessee the right to control the use of an identified asset for a period of
time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the Group and the Company assess whether:
• The contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent
substantially all of the capacity of a physically distinct asset. If the supplier (‘lessor’) has a substantive substitution right, then the asset is not
identified;
• The customer (‘lessee’) has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
• The customer (‘lessee’) has the right to direct the use of the asset. In rare cases where the decision about how and for what purpose the asset is
used is predetermined, the customer (‘lessee’) has the right to direct the use of the asset if either the customer (‘lessee’) has the right to operate
the asset; or the customer designed the asset in a way that predetermines how and for what purpose it will be used.
The Group and the Company as lessees
The Group and the Company lease various buildings, plant and machinery, furniture and fittings, office equipment and motor vehicles. These leases
have tenures between 1 and 25 years. Lease terms are generally negotiated on an individual basis. As for leasehold land, the remaining period of the
respective leases ranges from 4 to 99 years.
(i) Initial recognition
The Group and the Company recognise a ROU asset and a lease liability for all leases conveying the right to control the use of an identified asset
for a period of time.
The ROU assets recognised by the Group and the Company are initially recorded at cost, which comprise the following:
• The amount of the initial measurement of the lease liability;
• Any lease payments made on or before the commencement date of the lease, less any lease incentives received;
• Any initial direct costs incurred by the Group and the Company; and
• An estimate of costs to be incurred by the Group and the Company in dismantling and removing the underlying asset, restoring the site
on which it is located or restoring the underlying asset to the condition required by the lessor.
The lease liability is initially measured at the present value of the lease payments that are not paid at that date. The lease payments are
discounted using the Group’s incremental borrowing rate.
Lease liabilities include the net present value of the following lease payments:
• Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• Variable lease payments that are based on an index or a rate;
• Amounts expected to be payable by the lessee under residual value guarantees;
• The exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.


31 December 2021
6 RIGHT-OF-USE (‘ROU’) ASSETS (CONTINUED)
Accounting Policy (continued)
The Group and the Company as lessees (continued)
(ii) Subsequent measurement
After initial recognition, the Group and the Company measure ROU assets at cost:
• Less any accumulated depreciation;
• Less any accumulated impairment losses; and
• Adjusted for any remeasurement of the lease liabilities.
The Group and the Company measure the lease liability by increasing the carrying amount to reflect interest on the lease liability, reducing the
carrying amount to reflect lease payments made, and remeasuring the carrying amount to reflect any reassessments or lease modifications.
(iii) Extension and termination options
Extension and termination options are included in a number of property and equipment leases across the Group. In determining the lease
term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a
termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain
to be extended (or not terminated).
The assessment of reasonable certainty is reviewed if a significant event or a significant change in circumstances occurs which affects this
assessment and that is within the control of the lessee.
The Group and the Company have elected not to recognise ROU assets and lease liabilities for leases of low-value assets.
If an arrangement contains lease and non-lease components, the Group and the Company apply MFRS 15 to allocate the consideration in the contract
based on the stand-alone selling prices.
A ROU asset and its corresponding lease liability are recognised at the date the leased asset is available for used by the Group and the Company. Each
lease payment is allocated between the principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability for each period. The ROU asset is depreciated over the shorter of the asset’s
useful life and the lease term on a straight-line basis.
At the end of the reporting period, the Group and the Company assess whether there is any indication of impairment. If such indication exist, an
analysis is performed to assess whether the carrying amount of the asset is fully recoverable. An impairment loss is recognised if the carrying amount
exceeds the recoverable amount (Note 3(c)).

Pages 182 - 348

31 December 2021
Exchange Transfers/
As at rate Adjustments/ As at
1.1.2021 adjustments Additions Reclassification 31.12.2021
2021
Group
Cost
Long leasehold land 2,541.6 6.5 68.5 (1.3) 2,615.3
Short leasehold land 24.7 0 0 0.4 25.1
Buildings 129.4 0 16.6 0.4 146.4
2,695.7 6.5 85.1 (0.5) 2,786.8
Plant and machinery 42,935.7 0 3,174.9 0 46,110.6

Furniture, fittings and office equipment 42.1 0 33.6 0 75.7
Motor vehicles 1.4 0 1.4 0 2.8
45,674.9 6.5 3,295.0 (0.5) 48,975.9
Exchange Charged Transfers/

As at rate for the Adjustments/ As at
1.1.2021 adjustments financial year Reclassification 31.12.2021
2021
Group
Long leasehold land 526.1 0.1 40.4 (2.4) 564.2
Short leasehold land 14.7 0 0.8 0.1 15.6
Buildings 81.5 0 28.6 0.2 110.3
622.3 0.1 69.8 (2.1) 690.1
Plant and machinery 10,114.1 0 3,411.9 0 13,526.0

Furniture, fittings and office equipment 31.0 0 15.8 0 46.8
Motor vehicles 1.2 0 0.6 0 1.8
10,768.6 0.1 3,498.1 (2.1) 14,264.7


31 December 2021
ROU
Exchange Acquisition classified Transfers/
As at rate of as held Adjustments/ As at
1.1.2020 adjustments subsidiary for sale Additions Reclassification 31.12.2020
RM’million RM’million RM’million RM’million RM’million RM’million RM’million
2020
Group
Cost
Long leasehold land 2,389.4 (0.7) 175.0 (0.1) 18.8 (40.8) 2,541.6
Short leasehold land 24.7 0 0 0 0 0 24.7
Buildings 107.1 0 0 (1.7) 22.1 1.9 129.4
2,521.2 (0.7) 175.0 (1.8) 40.9 (38.9) 2,695.7
Plant and machinery 42,846.5 0 0 0 100.0 (10.8) 42,935.7

Furniture, fittings and office
equipment 41.4 0 0 0 0.4 0.3 42.1
Motor vehicles 1.1 0 0 0 0.3 0 1.4
45,410.2 (0.7) 175.0* (1.8) #
141.6 (49.4) 45,674.9
ROU
Exchange classified Charged Transfers/
As at rate as held for the Adjustments/ As at
1.1.2020 adjustments for sale financial year Reclassification 31.12.2020
2020
Group
Long leasehold land 493.0 0.1 0 32.7 0.3 526.1
Short leasehold land 14.0 0 0 0.7 0 14.7
Buildings 43.1 0 (0.1) 38.1 0.4 81.5
550.1 0.1 (0.1) 71.5 0.7 622.3
Plant and machinery 6,579.7 0 0 3,537.9 (3.5) 10,114.1

Furniture, fittings and office equipment 15.8 0 0 15.1 0.1 31.0
Motor vehicles 0.6 0 0 0.6 0 1.2
7,146.2 0.1 (0.1)# 3,625.1 (2.7) 10,768.6

Pages 182 - 348

31 December 2021
Transfers/
As at Adjustments/ As at
1.1.2021 Additions Reclassification 31.12.2021
2021
Company
Cost
Long leasehold land 1,236.2 22.7 (3.4) 1,255.5
Short leasehold land 4.5 0 0.2 4.7
Buildings 108.4 77.6 0 186.0
1,349.1 100.3 (3.2) 1,446.2
Plant and machinery 86,772.2 9,909.9 0 96,682.1

Furniture, fittings and office equipment 37.7 28.8 0 66.5
Motor vehicles 0.5 0 0 0.5
88,159.5 10,039.0 (3.2) 98,195.3
Charged Transfers/
As at for the Adjustments/ As at
1.1.2021 financial year Reclassification 31.12.2021
2021
Company
Long leasehold land 310.6 17.7 (1.8) 326.5
Short leasehold land 3.0 0.1 0 3.1
Buildings 68.2 30.6 0 98.8
381.8 48.4 (1.8) 428.4

Motor vehicles 0.5 0 0 0.5
21,076.6 5,898.5 (1.8) 26,973.3


31 December 2021
Transfers/
As at Adjustments/ As at
1.1.2020 Additions Reclassification 31.12.2020
2020
Company
Cost
Long leasehold land 1,452.5 17.1 (233.4) 1,236.2
Short leasehold land 4.5 0 0 4.5
Buildings 91.1 17.3 0 108.4
1,548.1 34.4 (233.4) 1,349.1

Motor vehicles 0.4 0.3 (0.2) 0.5
86,486.6 1,906.5 (233.6) ^
88,159.5
Charged Transfers/
As at for the Adjustments/ As at
1.1.2020 financial year Reclassification 31.12.2020
2020
Company
Long leasehold land 359.9 19.9 (69.2) 310.6
Short leasehold land 2.9 0.1 0 3.0
Buildings 36.1 32.1 0 68.2
398.9 52.1 (69.2) 381.8

Motor vehicles 0.3 0.2 0 0.5
15,680.3 5,465.5 (69.2) ^
21,076.6

Pages 182 - 348

31 December 2021
Group Company
2021 2020 2021 2020
Net book value

Long leasehold land 2,051.1 2,015.5 929.0 925.6
Short leasehold land 9.5 10.0 1.6 1.5
Buildings 36.1 47.9 87.2 40.2
2,096.7 2,073.4 1,017.8 967.3
Plant and machinery 32,584.6 32,821.6 70,179.8 66,105.6

Furniture, fittings and office equipment 28.9 11.1 24.4 10.0
Motor vehicles 1.0 0.2 0 0
34,711.2 34,906.3 71,222.0 67,082.9
* It relates to the recognition of VSI as a subsidiary during the financial year 2020 as disclosed in Note 47.
#
During the financial year 2020, the carrying amount of LPL’s ROU has been reclassified as assets held for sale. On 30 November 2021, the subsidiary was disposed as disclosed in
Note 23.
^
The transfers, adjustments or reclassification includes the ROU assets amounting to RM163.7 million transferred at net book value to TPGSB during the financial year 2020.
The title deeds of certain leasehold lands classified as ROU assets are in the process of being registered in the name of the Company and certain subsidiaries.
Net book value of ROU pledged as security for borrowings are disclosed in Note 27.
7 SUBSIDIARIES
Company
2021 2020
At cost:
Unquoted Ordinary Shares 1,571.8 1,457.9
Redeemable Preference Shares 9,332.7 2,292.1
Shares/Options granted to employees of subsidiaries 307.8 223.0
11,212.3 3,973.0
Less: Accumulated impairment losses (3,749.1) (3,150.2)
7,463.2 822.8


31 December 2021
7 SUBSIDIARIES (CONTINUED)
(a) Movement in unquoted ordinary shares and redeemable preference shares ('RPS') in investments in subsidiaries:
(i) On 15 March 2021, the Company subscribed to an additional 225,000,000 new ordinary shares issued by TNB Power Generation Sdn. Bhd.
(‘TPGSB’), by conversion of amounts due from TPGSB amounting to RM225.0 million.
(ii) On 24 May 2021, the Company subscribed to an additional 500,000 new ordinary shares issued by TNB Renewables Sdn. Bhd. (‘TNBRE’), by
conversion of amounts due from TNBRE amounting to RM500,000.
(iii) On 29 November 2021, the Company subscribed to an additional 1,000,004 ordinary shares issued by TNB Retail Sdn. Bhd. (‘RETAIL’), by
conversion of amounts due from RETAIL amounting to RM1.0 million.
(iv) On 30 November 2021, the Company disposed 30,000,000 ordinary shares amounting to RM120.5 million in TNB Power Daharki Ltd. (‘TPD’),
upon completion of the divestment as disclosed in Note 23. This has resulted in a loss on disposal of RM29.3 million for the Company.
(v) On 23 December 2021, the Company subscribed to an additional 7,900,000 new ordinary shares issued by Allo Technology Sdn. Bhd. (‘ATSB’),
by conversion of amounts due from ATSB amounting to RM7.9 million.
(vi) On 1 June 2021, the Company subscribed to 6,495,000,000 new RPS issued by TPGSB, by conversion of amounts due from TPGSB amounting
to RM6,495.0 million.
(vii) The Company subscribed to 9,112,300 new RPS issued by TNBRE by conversion of amounts due from TNBRE amounting to RM9.1 million on
18 November 2021 (RM5.5 million) and 24 December 2021 (RM3.6 million), respectively.
(viii) On 29 November 2021, the Company subscribed to 54,443,320 new RPS issued by RETAIL, by conversion of amounts due from RETAIL
amounting to RM54.4 million.
(ix) On 23 December 2021, the Company subscribed to 81,600,000 new RPS issued by ATSB, by conversion of amounts due from ATSB amounting
to RM81.6 million.
(x) On 23 December 2021, the Company subscribed to 400,510,578 new RPS issued by Universiti Tenaga Nasional Sdn. Bhd. (‘UNITEN’), by
conversion of amounts due from UNITEN amounting to RM400.5 million.
(b) Movement in accumulated impairment losses for investments in subsidiaries:

(i) Impairment assessment for UNITEN
The investment in UNITEN which was by conversion of amounts due from UNITEN amounting to RM400.5 million, had been fully impaired by
the Company during previous financial years.

Pages 182 - 348

31 December 2021
(b) Movement in accumulated impairment losses for investments in subsidiaries: (continued)

(ii) Impairment assessment for TPD
The impairment of investment in TPD amounting to RM120.5 million has been derecognised upon completion of the divestment on 30
November 2021.
(iii) Impairment assessment for Power and Energy International (Mauritius) Ltd. (‘PEIM’)
During the financial year, the Company had undertaken the impairment assessment of its investment in PEIM, an investment holding
company. The impairment assessment was triggered by the impairment of one of its significant associate, GMR Energy Limited (‘GEL’) for both
current and preceding financial years (Note 9 (b)). Based on the impairment assessment which estimates the cash flows available for dividend
distribution from its investments in GEL and Malaysian Shoaiba Consortium Sdn. Bhd. (‘MSCSB’), the carrying amount of the Company’s
investment in PEIM as at 31 December 2021 exceeded its recoverable amount, hence additional impairment loss of RM300.2 million (2020:
RM149.0 million) was recognised in the current financial year.
The method, key assumptions used in determining the recoverable amount and the effects of changes in the key assumptions for GEL are as
disclosed in Note 9 (b).
The details of the subsidiaries are as follows:

Group’s
effective interest Country of
Name of subsidiary 2021 2020 Principal activities incorporation
Allo Technology Sdn. Bhd. 100% 100% Information technology related services Malaysia
Aruna Servicios Integrales S.L.U.* 100% 100% Investment holding Spain
Subsidiary of Aruna Servicios Integrales

S.L.U.
Global Power Enerjî Sanayî Ve Tîcaret 100% 100% To engage in activities related to building and Turkey
Anonîm Şîrketî* operating electricity production facilities, producing
electricity and/or capacity and distributing the
generated electricity and/or capacity to customers
and/or to legal entities with wholesale trade licences
or retail sale licences and to free consumers
Malaysia Transformer Manufacturing 100% 100% Principally engaged in the business of manufacturing, Malaysia
Sdn. Bhd. selling and repairing distribution, power and
earthing transformers
Orion Mission Sdn. Bhd.* 100% 100% Dormant Malaysia

(In members’ voluntary winding up)
Subsidiary of Orion Mission Sdn. Bhd.
Lahad Datu Holdings Sdn. Bhd.* 100% 100% Dormant Malaysia



31 December 2021
The details of the subsidiaries are as follows: (continued)

Group’s
Subsidiary of Lahad Datu Holdings

Sdn. Bhd.
Lahad Datu Energy Sdn. Bhd.* 100% 100% Dormant Malaysia

Power and Energy International 100% 100% Investment holding Mauritius

(Mauritius) Ltd.*
Subsidiary of Power and Energy

International (Mauritius) Ltd.
Independent Power International Ltd.* 100% 100% Investment holding Mauritius
REV Property Holdings Sdn. Bhd. 100% 100% Investment holding company, property asset Malaysia
management and property facility management
Subsidiary of REV Property Holdings

Sdn. Bhd.
REV Horizon Sdn. Bhd. 100% 100% Property asset management, property project Malaysia
management and property facility maintenance
Sabah Electricity Sdn. Bhd. 83% 83% Business of generation, transmission, distribution and Malaysia
sale of electricity and services in Sabah and the
Federal Territory of Labuan
Subsidiary of Sabah Electricity Sdn. Bhd.
Elopura Power Sdn. Bhd.* 83% 83% Dormant Malaysia
Sepang Power Sdn. Bhd.* 70% 70% Dormant Malaysia

Tenaga Switchgear Sdn. Bhd. 60% 60% Principally engaged in the business of assembling Malaysia
and manufacturing of high voltage switchgears and
contracting of turnkey transmission substations
Subsidiaries of Tenaga Switchgear

Sdn. Bhd.
PT. Tenaga Nusa Bakti* 57% 57% Dormant Indonesia
TSG Ormazabal Sdn. Bhd. 36% 36% Assembling, manufacture, test, reconditioning, Malaysia
distribution and other sources of medium voltage
switchgear and control gear for transmission and
distribution of electric power
TNB Capital (L) Ltd.* 100% 100% Investment holding company Malaysia
TNB Distribution Sdn. Bhd.* 100% 100% Dormant Malaysia

TNB Energy Services Sdn. Bhd. 100% 100% Generating, distributing, supplying, dealing, selling Malaysia
of different kinds of energy sources and related
technical services

Pages 182 - 348

31 December 2021

Group’s
Subsidiaries of TNB Energy Services

Sdn. Bhd.
MAEVI Sdn. Bhd. 70% 70% Providing infrastructure for hosting, data processing Malaysia
services and related activities research and
development on engineering and technology,
export and import of electrical and electronic goods
Tenaga E Mobility Solutions Sdn. Bhd.* 100% 100% Operation of parking facilities for motor vehicles Malaysia
(parking lots), operation of generation facilities that
produce electric energy and engineering services
TNB Engineering Corporation Sdn. Bhd. 100% 100% Principally engaged as turnkey contractors, energy Malaysia
project development specialising in district cooling
system and co-generation including operation and
maintenance works
Subsidiaries of TNB Engineering

Corporation Sdn. Bhd.
Bangsar Energy Systems Sdn. Bhd. 100% 100% Operating an integrated district cooling system for air Malaysia
conditioning systems of office buildings
Subsidiary of Bangsar Energy Systems

Sdn. Bhd.
Selesa Energy Systems Sdn. Bhd.* 70% 70% Dormant Malaysia
Subsidiaries of TNB Engineering

Corporation Sdn. Bhd. (continued)
Cooling Energy Supply Sdn. Bhd. 70% 70% Operation of the concession to operate, maintain and Malaysia
upgrade an existing district cooling co-generation plant
and to supply electricity and chilled water to customer
TNEC Construction Sdn. Bhd. 100% 100% Dormant Malaysia
TNEC Operations And Maintenance 100% 100% The company ceased business and has remained as Malaysia
Sdn. Bhd. investment holding company
Subsidiary of TNEC Operations And

Maintenance Sdn. Bhd.
Tomest Energy Management Sdn. Bhd.* 51% 51% Operating an integrated district cooling system for air Malaysia
(In members’ voluntary winding up) conditioning buildings
TNB Engineers Sdn. Bhd. 100% 100% Dormant Malaysia
TNB Fuel Services Sdn. Bhd. 100% 100% Supplying fuel and coal for power generation Malaysia
TNB Generation Sdn. Bhd. 100% 100% Dormant Malaysia
TNB Global Captive (L) Ltd. 100% 100% Insurance and reinsurance related business Malaysia


31 December 2021

Group’s
TNB Global Ventures Capital Berhad* 100% 100% Investment holding company Malaysia
TNB Hidro Sdn. Bhd. 100% 100% Dormant Malaysia
TNB Integrated Learning Solution Sdn. Bhd. 100% 100% Providing training courses Malaysia
TNB International Sdn. Bhd. 100% 100% Investment holding company Malaysia
Subsidiary of TNB International Sdn. Bhd.
Vantage RE Ltd. 100% 100% Investment holding company United Kingdom

(Formerly known as Tenaga
Investments UK Ltd.)#
Subsidiaries of Vantage RE Ltd.

Investments UK Ltd.)
Tenaga Wind Ventures UK Ltd.# 100% 100% Investment holding company United Kingdom
Subsidiaries of Tenaga Wind

Ventures UK Ltd.
Bluemerang Capital Ltd.# 100% 100% Direct investment holding company of assets involved United Kingdom
in generation and sale of power through renewable
energy (wind turbines) in the UK
Subsidiaries of Bluemerang
Capital Ltd.
BCL Caslterigg Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
electricity in the UK
BCL Gwynt Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
BCL Harmeston Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
BCL Murex Bennacott Ltd.# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
BLC Hunday Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
Ili (Wellgreen) Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
LE18 Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
LE19 Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
Murex Bennacott Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom

Pages 182 - 348

31 December 2021

Group’s
Subsidiaries of Tenaga Wind Ventures

UK Ltd. (continued)
GVO Wind Limited# 100% 100% Direct investment holding company of assets involved United Kingdom
in generation and sale of power through renewable
energy (wind turbines) in the UK
Subsidiaries of GVO Wind Limited
Boghead WT Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
Durpley WT Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
GVO Wind F-1 Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
GVO Wind No. 1 Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom


31 December 2021

Group’s

(continued)

Pages 182 - 348

31 December 2021

Group’s

(continued)
GVO/CME Wind No. 17 Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
GVO/CME Wind No. 18 Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
OGPW No.1 Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
Warren WT Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
Weston Town WT Limited# 100% 100% Operation of wind assets for the generation and sale of United Kingdom
Subsidiaries of Vantage RE Ltd.

Investments UK Ltd.) (continued)
TWV No. 1 Ltd.# 100% - Operation of wind assets for the generation and sale of United Kingdom
Vantage RE No. 1 Ltd.# 100% - Investment holding company United Kingdom
Vantage Solar Investments S.A.R.L. 55% 55% Investment holding company Luxembourg
(Formerly known as Vortex Solar
Invesments S.A.R.L.)#
Subsidiary of Vantage Solar

Investments S.A.R.L.
Investments S.A.R.L)
Vantage Solar UK4 Limited 55% 55% Intermediate holding company England and
(Formerly known as Vortex Solar Wales
UK4 Limited)#


31 December 2021

Group’s
Subsidiaries of Vantage Solar UK4

Limited
UK4 Limited)
TerraForm UK2 Intermediate 55% 55% Intermediate holding company England and
Holdings Ltd.# Wales
TerraForm UK3 Intermediate 55% 55% Intermediate holding company England and
Holdings Limited# Wales
Subsidiaries of TerraForm UK3

Intermediate Holdings Limited
Cambridge Solar Power Limited# 55% 55% Operation of solar assets for the generation and sale of England and
electricity in the UK Wales
SunE Green Holdco2 Ltd.# 55% 55% Direct investment holding company of assets involved England and
in generation and sale of power through renewable Wales
energy (solar) in the UK
Subsidiaries of SunE Green

Holdco2 Ltd.
AEE Renewables UK 31 55% 55% Operation of solar assets for the generation and sale of England and
Limited# electricity in the UK Wales
SunE Project1 Ltd.# 55% 55% Operation of solar assets for the generation and sale of England and

Intermediate Holdings
Limited (continued)
SunE Green Holdco3 Limited# 55% 55% Direct investment holding company of assets involved England and

Holdco3 Limited
Sunsave 10 (Fareham) Ltd.# 55% 55% Operation of solar assets for the generation and sale of England and
Sunsave 15 (Westwood) 55% 55% Operation of solar assets for the generation and sale of England and
Sunsave 20 (KnowIton) 55% 55% Operation of solar assets for the generation and sale of England and

Limited (continued)

Pages 182 - 348

31 December 2021

Group’s
Subsidiaries of SunE
Green Holdco4 Limited
Boyton Solar Park Limited# 55% 55% Operation of solar assets for the generation and sale of England and
KS SPV 24 Limited# 55% 55% Operation of solar assets for the generation and sale of England and
Sunsave 6 (Manston) Ltd.# 55% 55% Operation of solar assets for the generation and sale of England and

Limited (continued)

Holdco5 Limited
MSP Fairwind Limited# 55% 55% Operation of solar assets for the generation and sale of England and
Sunsave 14 (Fenton) Limited# 55% 55% Operation of solar assets for the generation and sale of England and

Limited (continued)

Holdco7 Limited
Brynteg Solar Limited# 55% 55% Operation of solar assets for the generation and sale of England and
Daisy No. 1 Limited# 55% 55% Operation of solar assets for the generation and sale of England and
SE Bury Lane Solar Limited# 55% 55% Operation of solar assets for the generation and sale of England and
SunE Green Energy Ltd.# 55% 55% Operation of solar assets for the generation and sale of England and


31 December 2021

Group’s
Subsidiary of SunE Green

Holdco6 Limited
Sunsave 43 (Epwell) Limited# 55% 55% Operation of solar assets for the generation and sale of England and

Limited (continued)

Holdco9 Limited
SunE Burthy Farm Solar 55% 55% Operation of solar assets for the generation and sale of England and
SunE Little Neath Solar 55% 55% Operation of solar assets for the generation and sale of England and

Limited (continued)
Subsidiary of SunE Green

Holdco13 Limited
SunE Prestop Park Limited# 55% 55% Operation of solar assets for the generation and sale of England and

Limited (continued)
SunE Hill Farm Solar Limited# 55% 55% Operation of solar assets for the generation and sale of England and
SunE Sundorne Grove Solar 55% 55% Operation of solar assets for the generation and sale of England and
Sunsave 11 (Wrockwardine 55% 55% Operation of solar assets for the generation and sale of England and
Farm) Limited# electricity in the UK Wales
Sunsave 17 (Castle Combe) 55% 55% Operation of solar assets for the generation and sale of England and
Sunsave 31 (Horam) Limited# 55% 55% Operation of solar assets for the generation and sale of England and

Pages 182 - 348

31 December 2021

Group’s
Subsidiaries of Vantage Solar UK4

Limited
UK4 Limited) (continued)
Vantage Solar UK Limited 55% 55% Direct investment holding company of assets involved England and
(Formerly known as Vortex Solar in generation and sale of power through renewable Wales
UK Limited)# energy (solar) in the UK
UK2 Limited)#
UK3 Limited)#
TNB Power Daharki Ltd.# - 100% Investment holding company Mauritius

(Divestment of 100% shareholding w.e.f.
30.11.2021)
Subsidiary of TNB Power Daharki Ltd.
TNB Liberty Power Limited# - 100% Operation of power plant and generation of electricity Pakistan
(Divestment of 100% shareholding
w.e.f. 30.11.2021)
TNB Power Generation Sdn. Bhd. 100% 100% Ownership, management and operation of the domestic Malaysia
power plants, renewable energy generation business,
power plant operation and maintenance business and
dry bulk terminal operation business
Subsidiaries of TNB Power Generation

Sdn. Bhd.
Integrax Berhad 100% 100% Investment holding company Malaysia
Subsidiaries of Integrax Berhad
Integrax Maritime Services Sdn. Bhd. 100% 100% Dormant Malaysia

(Formerly known as LBT Two Sdn. Bhd.)
Pelabuhan Lumut Sdn. Bhd. 100% 100% Investment holding Malaysia
Subsidiary of Pelabuhan Lumut

Sdn. Bhd.
Lekir Bulk Terminal Sdn. Bhd. 100% 100% Development, ownership and management of a dry Malaysia
bulk terminal

Sdn. Bhd. (continued)
Jimah East Power Sdn. Bhd. 70% 70% Involved in power generation Malaysia
Kapar Energy Ventures Sdn. Bhd. 60% 60% Generate and deliver electricity energy and generating Malaysia
capacity to TNB
Manjung Island Energy Berhad - - Special purpose company to raise Islamic securities Malaysia
under the Islamic Securities Programme


31 December 2021

Group’s

Southern Power Generation Sdn. Bhd. 70% 70% Generate and deliver electricity and maintain Malaysia
generating capacity to TNB
TNB Bukit Selambau Solar Sdn. Bhd. 100% 100% Operation of generation facilities that produce electric Malaysia
energy
TNB Connaught Bridge Sdn. Bhd. 100% 100% Generate and deliver electricity energy and maintain Malaysia
TNB Janamanjung Sdn. Bhd. 100% 100% Generate and deliver electricity energy and maintain Malaysia
TNB Manjung Five Sdn. Bhd. 100% 100% Generate and deliver electricity energy and maintain Malaysia
Subsidiary of TNB Manjung Five

Sdn. Bhd.
TNB Western Energy Berhad 100% 100% Principally engaged in the construction of 1,000MW Malaysia
coal fired power plant in Lumut, Perak, Malaysia

TNB Pasir Gudang Energy Sdn. Bhd. 100% 100% Carry business of any matter relating to electricity Malaysia
especially the business of generation and supply of
electricity for any purpose in Malaysia
TNB Prai Sdn. Bhd. 100% 100% Generate and deliver electricity energy and maintain Malaysia
Subsidiary of TNB Prai Sdn. Bhd.
TNB Northern Energy Berhad 100% 100% Principally to construct a 1,071MW gas fired power Malaysia
plant in Seberang Perai Tengah, Seberang Perai,
Pulau Pinang, Malaysia

TNB Repair And Maintenance Sdn. Bhd. 100% 100% Providing repair and maintenance services to heavy Malaysia
industries and other related services
Subsidiaries of TNB Repair And

Tenaga WHR 1 Sdn. Bhd.* 100% 100% To carry on the business of establishing, constructing, Malaysia
commissioning, setting up, operating and
maintaining electric power generation systems,
transmission systems/networks, power systems,
generating stations/plants based on waste heat
recovery and/or power efficiency technology
TNB Operations & Maintenance 100% 100% Investment holding Mauritius

International Ltd.

Pages 182 - 348

31 December 2021

Group’s
Subsidiary of TNB Operations &

Maintenance International Ltd.
Oasis Parade Sdn. Bhd. 100% 100% Investment holding Malaysia
Subsidiaries of TNB Repair And

Maintenance Sdn. Bhd. (continued)
TNB REMACO Pakistan (Private) 100% 100% Providing repair and maintenance services to heavy Pakistan
Limited# industries and other related services
Trichy Energy Limited* 100% 100% Dormant India
Trichy Power Limited* 100% 100% Dormant India

TNB Sepang Solar Sdn. Bhd. 100% 100% Operation of generation facilities that produce electric Malaysia
energy
TNBPG Hydro Nenggiri Sdn. Bhd. 100% - Responsible for the domestic power generation assets, Malaysia
with fully integrated end-to-end capabilities
TNB Properties Sdn. Bhd. 100% 100% Dormant Malaysia
Subsidiary of TNB Properties Sdn. Bhd.
TNP Construction Sdn. Bhd.* 100% 100% Dormant Malaysia
TNB Renewables Sdn. Bhd. 100% 100% To carry on business of an investment holding company Malaysia
Subsidiary of TNB Renewables Sdn. Bhd.
TNB Bukit Selambau Solar Dua Sdn. Bhd. 100% - Operation of generation facilities that produce electric Malaysia
energy
TNB Research Sdn. Bhd. 100% 100% Research and development, consultancy and other Malaysia
services
Subsidiary of TNB Research Sdn. Bhd.
TNB Labs Sdn. Bhd. 100% 100% Technical and laboratory services, consultancy and Malaysia
other services
TNB Retail Sdn. Bhd. 100% 100% Managing customer relationships and responsible for Malaysia
sale of electricity and beyond
Subsidiaries of TNB Retail Sdn. Bhd.
GSPARX Sdn. Bhd. 100% 100% Invest and develop RE projects for self-consumption/ Malaysia
self-generation and its related business
TNBX Sdn. Bhd. 100% 100% To act as the single-fronting Malaysia entity for Malaysia
customers to purchase/obtain solutions beyond
the meter. The solutions comprise non-regulated
products and services such as energy efficiency,
renewable energy and smart cities


31 December 2021

Group’s
TNB Risk Management Sdn. Bhd.* 100% 100% Dormant Malaysia
TNB Topaz Energy Sdn. Bhd. 100% 100% Investment holding for developing and investing in Malaysia
overseas power generation projects
TNB Transmission Network Sdn. Bhd. 100% 100% Dormant Malaysia
TNB Ventures Sdn. Bhd. 100% 100% Investment holding company Malaysia
Subsidiary of TNB Ventures Sdn. Bhd.
Tenaga Cable Industries Sdn. Bhd. 76% 76% Manufacturing and distribution of power and general Malaysia
cables, aluminium rods and related activities
TNB-IT Sdn. Bhd. 100% 100% Provision of telecommunication and IT infrastructure Malaysia
solutions and operation and maintenance services
on the telecommunication equipment and data
centre
Universiti Tenaga Nasional Sdn. Bhd. 100% 100% Providing higher education Malaysia
Subsidiaries of Universiti Tenaga

Nasional Sdn. Bhd.
UNITEN R&D Sdn. Bhd. 100% 100% Providing research and development in areas related Malaysia
to engineering, information technology, business,
accountancy, liberal studies and other services
Yayasan Canselor Universiti Tenaga - - A trust established under the provision of Trustees Malaysia
Nasional (Incorporation) Act 1952 (Act 258) to receive and
administer funds for educational and charitable
purposes
Yayasan Tenaga Nasional - - A trust established under the provision of Trustees Malaysia
(Incorporation) Act 1952 (Act 258), for promotion
and advancement of education and for charitable
purposes
#
Audited by a member firm of PricewaterhouseCoopers International Limited which is a separate and independent legal entity from PricewaterhouseCoopers PLT, Malaysia.
* Not audited due to under liquidation or winding up process, qualified for audit exemption under Practice Directive 3/2017 of Companies Commission of Malaysia or do not
require to be audited under the regulation’s of the incorporated country.
Capital and other commitments for the subsidiaries are disclosed in Note 41. Contingent liabilities for the subsidiaries are disclosed in Note 42.

Pages 182 - 348

31 December 2021
(c) Non-controlling interests (‘NCI’)
The NCI is not material to the financial performance, financial position and cash flows of the Group. The NCI information for Southern Power
Generation Sdn. Bhd. ('SPG'), Sabah Electricity Sdn. Bhd. ('SESB') and Jimah East Power Sdn. Bhd. ('JEP'), which contribute to substantial portion of
total NCI is set out below:
Other individually
SPG SESB JEP immaterial NCI Total
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
RM’million RM’million RM’million RM’million RM’million RM’million RM’million RM’million RM’million RM’million
Carrying amount
of NCI 227.0 237.0 369.6 270.2 941.5* 922.7 245.9 186.8 1,784.0 1,616.7
Total
comprehensive
(expenses)/
income allocated
to NCI (10.0) 5.7 99.4 45.4 63.8 18.2 60.1 (46.9) 213.3 22.4
* Included in the carrying amount of NCI in JEP is a redemption of RPS from NCI amounting to RM45.0 million.
The summarised financial information of SPG, SESB and JEP before inter-company eliminations are as follows:
SPG SESB JEP
2021 2020 2021 2020 2021 2020
Summarised statement of financial position
Non-current assets 4,315.2 4,069.2 8,359.6 8,369.4 11,033.8 11,246.1

Current assets 458.1 618.4 2,253.5 2,018.2 1,698.4 1,462.3
Non-current liabilities (3,680.8) (3,681.4) (6,977.6) (7,284.8) (8,753.2) (8,931.9)
Current liabilities (260.3) (140.5) (1,942.7) (1,999.6) (919.1) (780.7)
Net assets 832.2 865.7 1,692.8 1,103.2 3,059.9 2,995.8
Summarised statement of comprehensive income
Revenue 1,462.0 0 2,258.6 2,227.7 3,264.0 2,706.6

(Loss)/Profit after tax (32.9) 5.7 516.4 266.8 212.7 60.5
Other comprehensive expense 0 0 60.1 (3.6) 0 0
Total comprehensive (expense)/income (32.9) 5.7 576.5 263.2 212.7 60.5
Summarised statement of cash flows
Net cash flows generated/(used in) from

operating activities 77.9 (73.8) 1,095.6 1,140.2 850.6 1,278.4
Net cash flows generated/(used in) from
investing activities 91.3 (544.4) (129.7) (327.5) (695.4) (69.8)
Net cash flows (used in)/generated from
financing activities (187.2) 631.2 (688.1) (873.4) (902.6) (619.3)
Net (decrease)/increase in cash and cash equivalents (18.0) 13.0 277.8 (60.7) (747.4) 589.3


31 December 2021
8 JOINT ARRANGEMENTS
Accounting Policy
A joint arrangement is an arrangement over which there is contractually agreed sharing of control by the Group with one or more parties where
decisions about the relevant activities relating to the joint arrangement require unanimous consent of the parties sharing control. The classification of
a joint arrangement as a joint operation or a joint venture depends upon the rights and obligations of the parties to the arrangement. A joint venture
is a joint arrangement whereby the joint venturers have rights to the net assets of the arrangement. Joint operations are joint arrangements whereby
the Company has the rights to the assets and obligations for the liabilities. In respect of its interests in joint operations, the Company shall recognise
in its financial statements the assets that it controls and the expenses and liabilities that it incurs and its share of the income that it earns from the
sale of goods or services.
The Group’s interest in joint ventures is accounted for in the consolidated financial statements using the equity method of accounting.
Equity accounting involves recognising in the consolidated statement of profit or loss, consolidated statement of OCI and consolidated statement
of changes in equity, the Group’s share of profits less losses of the joint ventures based on the latest audited financial statements or management
accounts of the joint ventures, made up to the financial year end of the Group. Where necessary, adjustments are made to the results and net assets
of the joint ventures to ensure consistency of accounting policies with those of the Group. The Group’s investments in joint ventures are recorded
at cost inclusive of goodwill and adjusted thereafter for accumulated impairment losses and the post-acquisition change in the Group’s share of net
assets of the joint ventures.
Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in joint ventures.
Unrealised losses are also eliminated on the same basis but only to the extent of the costs that can be recovered, and the balances that provide
evidence of reduction in net realisable value or an impairment of the asset transferred are recognised in the consolidated statement of profit or loss.
(a) Joint ventures
Group Company
2021 2020 2021 2020
Unquoted shares 88.3 87.5 7.9 7.9

Share of post-acquisition results and reserves 150.8 121.5 0 0
239.1 209.0 7.9 7.9
Less: Accumulated impairment losses (8.4) (8.4) (7.9) (7.9)
230.7 200.6 0 0
Share of net assets of joint ventures 230.7 200.6

Pages 182 - 348

31 December 2021
8 JOINT ARRANGEMENTS (CONTINUED)
(a) Joint ventures (continued)
None of the joint ventures are material individually to the financial position, financial performance and cash flows of the Group.
The aggregated financial information of the Group’s joint ventures is as follows:

2021 2020
Group’s share of results:

Profit after tax and total comprehensive income 29.3 19.8
Amounts due from joint ventures

Amounts due from joint ventures* 65.7 44.2
Less: Accumulated impairment losses (22.2) (24.8)
43.5 19.4
* The Group’s credit policy provides amounts due from joint ventures with a 30 days (2020: 30 days) credit period.
The details of the Group’s joint ventures are as follows:

Group’s effective interest Country of
Name of joint venture 2021 2020 Principal activities incorporation
Seatrac Sdn. Bhd.* 50% 50% Dormant Malaysia
Joint ventures of TNB Energy Services

Sdn. Bhd.
FTJ Bio Power Sdn. Bhd. 40% 40% Generation and distribution of electricity using Malaysia
palm empty fruit bunches as its main fuel
source
Metrosphere Hydro Tersat Sdn. Bhd.* 49% 49% Business related in hydro power plant and Malaysia
general trading
Joint venture of TNB Engineering

Airport Cooling Energy Supply Sdn. Bhd. 77% 77% To develop, design, engineer, procure, construct Malaysia
and finance district cooling projects
in the airport sector, to undertake the
comprehensive operational and maintenance
of district cooling projects in the airport sector
and to carry on the business of producing,
distributing, applying, dealing and selling of
chilled water
Joint venture of TNB Repair And

GMR Tenaga Operations And Maintenance 50% 50% Operation and maintenance of power plants India
Private Limited*


31 December 2021
8 JOINT ARRANGEMENTS (CONTINUED)
(b) Joint operations
The details of the Group's joint operations are as follows:

Group’s effective interest Principal place
Name of joint operation 2021 2020 Principal activities of business
Joint operation of TNB Engineering

TNB Engineering Corporation Sdn. Bhd. & 60% 60% Project Large Scale Solar Photovoltaic Plant at Malaysia
ERS Energy Sdn. Bhd. (‘TNEC-ERS’) Kuala Muda, Kedah
Joint operations of TNB Repair And

TNB Repair And Maintenance Sdn. Bhd. & 50% 50% Maintenance works for instrumental & control Kuwait
Al-Dhow Engineering (‘TNB REMACO & systems and mechanical equipment services
Al-Dhow JV’)#
TNB Repair And Maintenance Sdn. Bhd. & 50% 50% Operation and maintenance services to heavy Kuwait
Kharafi National (‘TNB REMACO & KN JV’)# industries and other related services
The impact of the Group’s joint operations to the Group is immaterial.

#
Audited by a member firm of PricewaterhouseCoopers International Limited which is a separate and independent legal entity from PricewaterhouseCoopers PLT, Malaysia.
* Not audited by PricewaterhouseCoopers PLT, Malaysia.
9 ASSOCIATES
Accounting Policy
Associates are all entities over which the Group has significant influence but not control or joint control, generally accompanying a shareholding of
between 20.0% and 50.0% of the voting rights.
Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting and are initially recognised
at cost. Equity accounting is discontinued when the Group ceases to have significant influence over the associates.
The Group’s share of its associates’ post-acquisition profits or losses is recognised in the statement of profit or loss, and its share of post-acquisition
movements in OCI is recognised in OCI. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment.
When the Group’s share of losses in an associate equals or exceeds its interests in the associate, including any long term interests that, in substance,
form part of the Group’s net investment in the associate, the Group does not recognise further losses, unless it has incurred legal or constructive
obligations or made payments on behalf of the associate. If the associate subsequently reports profits, the Group resumes recognising its share
of those profits only after its share of the profits equals the share of losses not recognised. The Group’s investments in associates include goodwill
identified on acquisition, net of any accumulated impairment losses (Note 3(c)).
Profits and losses resulting from upstream and downstream transactions between the Group and its associates are recognised in the Group’s financial
statements only for the unrelated investor’s interests in the associates. The accounting policies of associates have been adjusted where necessary to
ensure consistency with the policies adopted by the Group.
Dilution of gains and losses in associates are recognised in the consolidated statement of profit or loss.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously
recognised in OCI is reclassified to profit or loss where appropriate.

Pages 182 - 348

31 December 2021
9 ASSOCIATES (CONTINUED)
Group Company
Note 2021 2020 2021 2020
Unquoted shares (a) 3,307.9 2,761.5 75.7 75.7

Share of post-acquisition results and reserves (340.3) (536.1) 0 0
Redeemable Preference Shares 13.2 18.9 0 0
2,980.8 2,244.3 75.7 75.7
Less: Accumulated impairment losses (b) (1,344.4) (1,052.6) 0 0
Less: Deemed disposal of an associate (c) 0 (53.1) 0 0
1,636.4 1,138.6 75.7 75.7
Share of net assets of associates 1,636.4 1,138.6
(a) The Group through its wholly-owned subsidiary, Vantage RE Ltd. (formerly known as Tenaga Investments UK Ltd.), has acquired 49.0% stake in
an offshore wind farm company, Blyth Offshore Demonstrator Limited (‘BODL’) from EDF Renewables, a subsidiary of the French utility company,
Électricité de France for a purchase consideration of RM674.7 million. The Group has assessed and recognised BODL as an associate of the Group
(Note 47).
(b) Impairment assessment for GEL
The Group had undertaken the impairment assessment of its investment in GEL. The assessment was initially triggered by changes in economic
outlook due to COVID-19 in 2020, which resulted in an impairment loss of RM51.6 million. During the current financial year, there were additional
indications such as poor outlook of thermal plants in India as initiatives are renewable energy focused, tight gas supply and the non-recoverability
of regulatory claims caused by uncertainty from the Government of India. Based on the impairment assessment, the carrying value of the Group’s
interest in GEL as at 31 December 2021 has been fully impaired with recognition of an additional impairment loss of RM291.8 million.
Key assumptions used
The recoverable amount was determined based on VIU calculations, which applied a discounted cash flow model of GEL Group for the period of
the remaining useful lives of the respective power plants which range between 14 to 23 years. The cash flows used in the calculations are the most
recent forecasts and projections approved by the Board of Directors and management of GEL Group.
The key assumptions used in determining the VIU were:

2021 2020
Number of operating plants 3 5

Average Plant Availability Factor (%) - 53.7
Average Plant Load Factor (%) 80.0 – 85.0 50.0 – 85.0
Cost of equity (%) 12.8 – 14.0 11.2 – 14.7
The cash flows were discounted using cost of equity based on the risk specific to the plants. The key assumptions take into account the
macroeconomic environment in India and the type of plant.
During the current financial year, there were 2 plants that were not operating and have been considered for disposal, which contributed to a
reduction in the recoverable amount of GEL.


31 December 2021
(b) Impairment assessment for GEL (continued)
Key assumptions used (continued)
The Group’s review includes impact assessment of changes in key assumptions used. Based on that review in 2021, it was concluded that there was
no material change in the base case assumptions that would require an adjustment to the carrying amount of the investment. In 2020, the effects
of the movement in the key assumptions to the recoverable amount are as follows:
Changes in Impact on
assumptions recoverable amount
% Increase Decrease
2020
Plant Availability Factor 5.0 8.8 (8.9)
Plant Load Factor 10.0 154.0 (134.1)
Discount rate 1.0 (48.2) 55.9
(c) During the financial year 2020, the Group acquired an additional 5.0% equity interest in VSI for a consideration of GBP5.1 million (RM28.4 million).
Consequently, the investment in VSI as an associate was deemed disposed resulting in a remeasurement gain of GBP41.9 million (RM231.3 million)
(Note 35). VSI has become a subsidiary of the Group with 55.0% equity interest (Notes 7 and 47).
The aggregated financial information of the Group’s associates is as follows:

2021 2020
Group’s share of results:

- Profit after tax 164.2 56.7
- Total other comprehensive income/(loss) 17.5 (38.7)
Dividend received 66.5 63.7
Foreign exchange gain 7.2 42.7
Amounts due from/(to) associates
Group Company
2021 2020 2021 2020
Amounts due from associates* 350.0 190.8 10.6 3.6

Less: Loss allowances (7.3) (7.3) (0.1) (0.2)
342.7 183.5 10.5 3.4
Amounts due to associates^ (183.8) (237.8) (173.7) (228.1)
* The Group’s and the Company’s credit policy provides amounts due from associates with a 30 days (2020: 30 days) credit period.
^
Credit terms of amounts due to associates is 30 days (2020: 30 days) depending on the terms of the contracts.
The Group has not recognised cumulative losses of RM393.1 million (2020: RM395.3 million) in the current financial year for Gama Enerji Anonîm
Şîrketî (‘Gama Enerji’), as the investment in that associate has been fully written down by the Group. The cumulative losses includes unrecognised
share of profit amounting to RM2.2 million (2020: loss of RM251.8 million) for the current financial year.

Pages 182 - 348

31 December 2021
In the opinion of the Directors, the associates that are material to the Group are BODL, Jimah Energy Ventures Holdings Sdn. Bhd. (‘JEV’), Lumut Maritime
Terminal Sdn. Bhd. (‘LMT’) and GEL. The following summarises the financial information of the associates and reconciled the information to the carrying
amount of the Group’s interest in those associates.
(i) The summarised statement of comprehensive income:

BODL JEV LMT GEL
2021 2021 2020 2021 2020 2021 2020
Revenue 22.5 2,674.1 2,227.9 121.7 114.2 1,098.1 1,002.7

Profit/(Loss) after tax from:
- Continued operation (11.0) 467.7 307.6 17.4 15.0 (51.9) (215.4)
- Discontinued operation 0 0 0 0 0 (0.5) (0.3)
Other comprehensive income/(expense) 17.8 0 0 0 0 (1.4) (0.3)
Total comprehensive income/(expense) 6.8 467.7 307.6 17.4 15.0 (53.8) (216.0)
(ii) The summarised statement of financial position:

BODL JEV LMT GEL
2021 2021 2020 2021 2020 2021 2020
Non-current assets 1,441.0 2,947.6 3,119.9 316.0 340.5 7,217.4 4,453.1

Current assets 152.4 1,395.7 1,128.9 207.6 221.7 1,546.0 637.4
Non-current liabilities (316.9) (1,653.7) (1,296.6) (20.8) (49.1) (4,123.0) (2,350.8)
Current liabilities (80.6) (1,275.6) (1,990.9) (19.8) (37.6) (3,328.6) (1,432.0)
Less: NCI 0 0 0 0 0 (127.4) (91.2)
1,195.9 1,414.0 961.3 483.0 475.5 1,184.4 1,216.5
(iii) Reconciliation of the summarised financial information:

BODL JEV LMT GEL
2021 2021 2020 2021 2020 2021 2020
Group’s share of net assets 586.0 353.5 240.3 241.5 237.8 355.3 365.0
Goodwill 68.5 0 0 37.8 37.8 492.0 482.9
Less: Accumulated impairment losses 0 0 0 0 0 (846.4) (554.6)
Foreign exchange 0 0 0 0 0 (0.9) 7.1
Transaction cost capitalised 6.6 0 0 0 0 0 0
Carrying amount 661.1 353.5 240.3 279.3 275.6 0 300.4
The summarised statement of financial position of GEL has not incorporated the impairment losses recognised during the financial year as disclosed
in Note 9 (b).


31 December 2021
Individually immaterial associates:

2021 2020
Aggregate carrying amount of individually immaterial associates 342.5 322.3

Aggregate amounts of the Group’s share of profit:
- Profit after tax 57.2 37.0
- Other comprehensive income/(expense) 9.1 (38.6)
The details of the Group’s associates are as follows:

Name of associate 2021 2020 Principal activities incorporation
Fibrecomm Network (M) Sdn. Bhd.* 49% 49% Provision of fibre optic transmission network services Malaysia
GB3 Sdn. Bhd.* 20% 20% Design, construction, operation and maintenance of Malaysia
a combined cycle power plant, generation and sale
of electrical energy and generating capacity of the
power plant
Jimah Energy Ventures Holdings Sdn. Bhd.* 25% 25% Investment holding Malaysia
Teknologi Tenaga Perlis Consortium 20% 20% Operating and maintaining an electricity generating Malaysia
Sdn. Bhd.* plant owned by the Company
Associate of Global Power Enerjî Sanayî Ve

Tîcaret Anonîm Şîrketî
Gama Enerji Anonîm Şîrketî* 30% 30% To enter into commitments related to energy Turkey
investments and to carry out industrial, commercial
and business activities
Associate of Independent Power

International Ltd.
Malaysian Shoaiba Consortium Sdn. Bhd.* 20% 20% Acquiring and hold for investment, shares, stocks, Malaysia
debentures in Malaysia or elsewhere
Associate of Oasis Parade Sdn. Bhd.
Saudi Malaysian Operations & Maintenance 30% 30% Operation and maintenance of electricity generation Kingdom of
Services Company Limited* stations and water desalination plants Saudi Arabia
Associate of Orion Mission Sdn. Bhd.
Eastern Sabah Power Consortium Sdn. Bhd. 50% 50% To develop, construct and operate a gas-fired power Malaysia
(In members’ voluntary winding up)* plant and to generate and sell electricity. The
company has not commenced its operation since the
date of incorporation

Pages 182 - 348

31 December 2021
The details of the Group’s associates are as follows: (continued)

Name of associate 2021 2020 Principal activities incorporation
Associate of Pelabuhan Lumut Sdn. Bhd.
Lumut Maritime Terminal Sdn. Bhd. 50% less 50% less Development of an integrated privatised project Malaysia
1 share 1 share encompassing ownership and operations of multi-
purpose port facilities, operation and maintenance
of a bulk terminal, sales and rental of port related
land and other ancillary activities
Associate of Power and Energy

International (Mauritius) Ltd.
GMR Energy Limited* 30% 30% Development, operation and maintenance of power India
generation projects and sale of power to off-takers
Associate of TNB Energy Services Sdn. Bhd.
Jana Landfill Sdn. Bhd.* 20% 20% Generation and distribution of heat and electricity Malaysia
using methane gas from landfill sites
Associate of TNB Renewables Sdn. Bhd.
SD Plantation TNB Renewables Sdn. Bhd. 49% 49% To develop, set up, construct, install, operate and Malaysia
(Formerly known as SD Plantation TNBES maintain renewable energy or biogas power plant
Renewable Energy Sdn. Bhd.) which uses the palm oil mill effluent as its main
source of fuel
Associate of TNB Engineering Corporation

Sdn. Bhd.
Abraj Cooling LLC* 49% 49% Contracting works for the construction of district United Arab
cooling plants Emirates
Associate of TNB Properties Sdn. Bhd.
KM Metro-TNB Properties Sdn. Bhd.* 40% 40% Dormant Malaysia
Associate of TNB Research Sdn. Bhd.
Gunung Tenaga Sdn. Bhd.* 40% 40% Environmental services and research Malaysia
Associate of Vantage RE No. 1 Ltd.
Blyth Offshore Demonstrator Limited* 49% - Ownership, construction and operation of a 42MW United Kingdom
offshore wind farm
* Not audited by PricewaterhouseCoopers PLT, Malaysia.


31 December 2021
The list of contingent liabilities of material associates are as follows:

Potential exposure to Group
2021 2020
GEL
(a) Corporate guarantees 100.8 99.0
(b) Bank guarantees outstanding/Letter of credit outstanding 81.4 102.3
(c) Claims against the GEL Group not acknowledged as debts 35.5 101.3
(d) Matters relating to income tax under dispute 2.2 1.4
(e) Disputed entry tax liabilities 24.8 24.3
(f ) Disputed demand for deposit of fund setup by Water Resource Department 8.8 8.6
(g) Matters related to indirect taxes duty under disputes 9.9 9.8
(h) Dispute on relinquishment charges for modification of transmission lines granted under long term access 0.5 0.5
(i) Custom duties refunds 10.1 9.9
In 2010, a subsidiary of GEL was granted a refund of customs duty which was paid earlier towards the import
of plant and machinery. In 2011, the subsidiary received an intimation from the Office of the Joint Director
General of Foreign Trade (‘DGFT’) for cancellation of duty drawback refund order granted thereby seeking
refund of the amount that has been received earlier.
In the opinion of experts, the management is confident that the duty drawback refund granted earlier was
appropriate and that the cancellation of the duty drawback refund is not tenable. During the financial year
ended 31 March 2015, the matter has been transferred to the Hon‘ble Supreme Court of India and will be
concluded along with other similar cases and is pending finalisation.
(j) Payment of electricity duty towards Chief Electrical Inspectorate, Government of Andhra Pradesh (‘GoAP’) 13.1 12.9
The associate and a subsidiary received demands from the Chief Electrical Inspectorate, GoAP for electricity
duties on generation and sale of electrical energy since the commencement of commercial operations date
of its plants.
Based on internal assessment and expert legal opinion, the management of GEL is confident that the provisions
of Electricity Duty Act and Rules, 1939 in respect of payment of electricity duty are not applicable to GEL.
(k) Appeals and disputes 49.8 48.8
GEL is in dispute with its fuel supplier which is currently being heard at the District Civil Court of Bangalore.
Based on independent legal opinion and internal assessment, the management of GEL is confident that it has
a strong defense against these claims.
(l) Amount payable to vendors 9.9 10.6
GEL Group has an amount payable in foreign currency to certain vendors, which is outstanding for more than
3 years. The GEL Group has applied for condonation of delay with the Reserve Bank of India.
(m) General Electricity International Inc (‘GE’) Arbitration 1.6 1.6
GEL has a remaining amount payable in foreign currency to GE for the outstanding invoices for scheduled
maintenance of gas turbines. GEL is in the process of filing the application for condonation of delay with the
Reserve Bank of India.
348.4 431.0
Gama Enerji
Letters of guarantee, mainly provided to certain regulators within the energy market and Ministry of Water and
Irrigation of Jordan. 20.5 28.2
Total 368.9 459.2

Pages 182 - 348

31 December 2021
10 GOODWILL ON CONSOLIDATION
Accounting Policy
Goodwill arises from a business combination and represents the excess of the aggregate of fair value of consideration transferred, the amount of any
NCI in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the net identifiable assets acquired and
liabilities assumed on the acquisition date. If the fair value of consideration transferred is less than the fair value of the net identifiable assets of the
acquire in the case of a bargain purchase, the resulting gain is recognised in statement of profit or loss.
Goodwill is recognised in the statement of financial position as non-current asset at cost less accumulated impairment losses and tested for
impairment annually. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the CGUs, or groups
of CGUs, that is expected to benefit from synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the
lowest level within the entity at which the goodwill is monitored for internal management purposes. The carrying value of goodwill is compared
to the recoverable amount, which is the higher of VIU and the fair value less costs of disposal. Any impairment is recognised immediately to the
statement of profit or loss and is not subsequently reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill
relating to the entity disposed.
Group
2021 2020
As at the beginning of the financial year 434.0 241.3

Acquisition of a subsidiary* 0 192.1
Effect of changes in exchange rate 4.4 0.6
As at the end of the financial year 438.4 434.0
Group
2021 2020
Classification of goodwill by CGU RM’million RM’million
Local (In Malaysia) 211.0 211.0

Foreign (Other than Malaysia) 227.4 223.0
438.4 434.0
* The goodwill arising from acquisition of a subsidiary is in relation to VSI became a subsidiary of the Group with 55.0% equity interest during the financial year 2020 (Note 47).
Impairment assessment for goodwill
Goodwill is tested for impairment on an annual basis. The carrying value of goodwill is allocated to the Group’s CGUs. The recoverable amount of the
CGU including goodwill, is determined based on its VIU. This VIU calculation applies a discounted cash flow model using cash flow projections based on
forecast approved by management. The forecasts reflect management’s expectations of revenue growth, operating costs and margins for the CGUs based
on current assessment of market share, expectations of market and industry growth.
The discount rate applied to the cash flow forecast refers to the industry’s pre-tax Weighted Average Cost of Capital (‘WACC’).


31 December 2021
10 GOODWILL ON CONSOLIDATION (CONTINUED)
Impairment assessment for goodwill (continued)
(i) Local investments and operations goodwill
The discounted cash flow model used cash flow projections which covered a five-year period and cash flows beyond the projection years are
extrapolated using an estimated terminal growth rate.
The following key assumptions have been applied in the VIU calculation:
2021 2020
% %
Revenue growth rate 2.1 3.3

Pre-tax discount rate 9.9 7.1
Terminal growth rate 1.4 3.3
Based on the Group’s assessment, no impairment losses were required as at 31 December 2021 as the recoverable amount exceeded the carrying
amount.
The Group’s review includes an impact assessment of changes in key assumptions used. Based on the sensitivity analysis performed, it was concluded
that no reasonable change in the base case assumptions would cause the carrying amount of the CGU to exceed its recoverable amount.
(ii) Foreign investments and operations goodwill
The discounted cash flow model used cash flow projections which covered a thirty-year period.
The following key assumptions has been applied in the VIU calculation:
2021 2020
% %
Revenue growth rate (1.6) (0.8)

Pre-tax discount rate 4.4 5.8
Based on the Group’s assessment, no impairment losses were required as at 31 December 2021 as the recoverable amounts exceeded the carrying
amounts.
The Group’s review includes an impact assessment of changes in key assumptions used. The effects of the movement in the key assumptions to the
recoverable amount are as follows:
Changes in Impact on recoverable amount
assumptions Increase Decrease
2021
Revenue growth rate 1.0% 44.3 (44.3)
Pre-tax discount rate 1.0% (222.0) 255.8
2020
Revenue growth rate 1.0% 37.8 (37.8)
Pre-tax discount rate 1.0% (227.4) 262.4

Pages 182 - 348

31 December 2021
11 INVESTMENT IN UNQUOTED DEBT SECURITIES
Accounting Policy
Investment in unquoted debt securities are financial instruments and the accounting policy is disclosed in Note 45.
Group Company
Note 2021 2020 2021 2020
Current
Sukuk Prihatin (a) 50.0 0 50.0 0
Non-current
Unsecured Loan Notes 277.5 253.4 277.5 253.4
Less: Loss allowance (27.4) (37.6) (27.4) (37.6)
(b) 250.1 215.8 250.1 215.8
Sukuk Prihatin (a) 0 50.0 0 50.0
250.1 265.8 250.1 265.8
300.1 265.8 300.1 265.8
(a) The Sukuk Prihatin, issued by the Government, is a Commodity Murabahah (via Tawarruq) with a maturity period of 2 years and matures on
22 September 2022. The profit rate is fixed at 2.0% per annum.
(b) The Unsecured Loan Notes primarily related to the Islamic Medium Term Notes (‘MTN’) facility subscription with a maturity period of 14 years and
matures on 5 May 2034.
Credit risks relating to debt instruments above are disclosed in Note 45(b) of the financial statements.
12 DEFERRED TAXATION
Accounting Policy
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial
statements including those arising from business combinations. Deferred tax is not recognised on goodwill and those arising from initial recognition
of an asset or liability which at the time of the transaction affects neither accounting nor taxable profit or loss.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, unused tax losses and unutilised tax credits can be utilised. Deferred tax is recognised on temporary differences arising on investment
in subsidiaries, joint ventures and associates except where the timing of the reversal of the temporary difference can be controlled and it is probable
that the temporary differences will not reverse in the foreseeable future.
Tax benefit from reinvestment allowance is recognised when the tax credit is utilised and no deferred tax asset is recognised when the tax credit is
receivable.
Deferred tax is measured at the tax rates (and laws) that have been enacted or substantially enacted at the end of the reporting period and are
expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
The Group and the Company will adopt the amendments to MFRS 112 effective 1 January 2023 and recognise deferred tax on its lease transactions
of which the company is a lessee. The Group and the Company will recognise a deferred tax asset and a deferred tax liability for any temporary
differences arising on initial recognition of a lease transaction. Where applicable, a deferred tax asset is recognised as the Group and the Company is
able to benefit from the tax deductions in the future. Any differences between the deferred tax asset and deferred tax liability will be recognised in
the profit and loss. Upon adopting the amendments, the Group and the Company do not expect material adjustments to the retained earnings as the
initial recognition of the lease transactions gave rise to equal and offsetting temporary differences.


31 December 2021
12 DEFERRED TAXATION (CONTINUED)
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the
deferred taxes relate to the same tax authority. The following amounts, determined after appropriate offsetting, are shown in the statement of financial
position:
Group Company
2021 2020 2021 2020
Deferred tax assets:

- Deferred tax assets to be realised after more than 12 months 305.4 50.1 0 0
- Deferred tax assets to be realised within 12 months 67.2 80.9 0 0
372.6 131.0 0 0
Deferred tax liabilities:

- Deferred tax liabilities to be settled after more than 12 months (7,634.7) (7,203.8) (6,000.9) (5,429.0)
- Deferred tax liabilities to be settled within 12 months (543.5) (602.0) (264.4) (577.9)
(8,178.2) (7,805.8) (6,265.3) (6,006.9)
Net total (7,805.6) (7,674.8) (6,265.3) (6,006.9)
The movements during the financial year relating to deferred tax are as follows:
Group Company
2021 2020 2021 2020
As at the beginning of the financial year (7,674.8) (7,658.7) (6,006.9) (6,486.4)
(Charged)/Credited to statement of profit or loss: (Note 38)

- Property, plant and equipment 2,317.6 (2,214.6) (464.9) (495.4)
- Provisions and allowances (1,182.5) 1,802.6 146.5 42.8
- Contract assets 24.0 45.1 24.3 45.1
- Lease liabilities (996.6) 269.5 396.5 345.4
162.5 (97.4) 102.4 (62.1)
Credited to OCI:
- Provisions and allowances (293.3) 127.3 (293.3) 127.3
Transfer as part of internal reorganisation 0 0 (67.5) 414.3
Acquisition of a subsidiary 0 (46.0) 0 0
As at the end of the financial year (7,805.6) (7,674.8) (6,265.3) (6,006.9)
Subject to income tax

Deferred tax assets (before offsetting):
- Provisions and allowances 5,926.5 7,402.3 3,618.9 3,765.7
- Lease liabilities 24.9 15.9 0 0
- Property, plant and equipment 46.7 68.8 0 0
Offsetting (5,625.5) (7,356.0) (3,618.9) (3,765.7)
Deferred tax assets (after offsetting) 372.6 131.0 0 0

Pages 182 - 348

31 December 2021
12 DEFERRED TAXATION (CONTINUED)
The movements during the financial year relating to deferred tax are as follows: (continued)
Group Company
2021 2020 2021 2020
Deferred tax liabilities (before offsetting):

- Property, plant and equipment (11,416.8) (13,756.5) (9,077.6) (8,545.2)
- Contract assets (735.6) (759.6) (735.3) (759.6)
- Lease liabilities (1,651.3) (645.7) (71.3) (467.8)
Offsetting 5,625.5 7,356.0 3,618.9 3,765.7
Deferred tax liabilities (after offsetting) (8,178.2) (7,805.8) (6,265.3) (6,006.9)
The amount of deductible temporary differences, unused tax losses, reinvestment allowance and investment tax allowance for which no deferred tax
assets are recognised in the statement of financial position are as follows:
Group Company
2021 2020 2021 2020
Deductible temporary differences 316.5 951.1 0 0

Tax losses* 2,234.2 3,254.8 0 0
Reinvestment allowance and investment tax allowance 5,826.0 5,821.9 0 0
No deferred tax assets are recognised from the above due to uncertainty of their recoverability. The unabsorbed capital allowances and investment tax
allowance do not expired under current tax legislation.
* The unutilised tax losses arising from a year of assessment (‘YA’) are allowed to be carried forward for utilisation up to 10 consecutive YAs from that YA. The accumulated
unabsorbed tax losses brought forward are expected to expire between YA2028 to YA2030.
13 LONG TERM RECEIVABLES
Accounting Policy
Long term receivables is a financial instrument and the accounting policy is disclosed in Note 45.
Group Company
Note 2021 2020 2021 2020
Financial asset
- Other receivables (a) 79.9 89.2 56.4 68.2
65.1 72.7 41.6 51.7
Non-financial assets
- Advance payment to contractors (b) 0 0.3 0 0
- Indirect tax (c) 102.0 154.8 0 0
167.1 227.8 41.6 51.7


31 December 2021
13 LONG TERM RECEIVABLES (CONTINUED)
(a) Included in the Group and the Company are advances given to staff and other non trade receivables, which are not expected to be received within
12 months from the statement of financial position date.
Credit risks are disclosed in Note 45(b) to the financial statements.
(b) Advance payment to contractors primarily relates to construction of plants which will be utilised against milestone payment invoices, which is more
than 12 months.
(c) Included in the Group is indirect tax receivables which are not expected to be received within 12 months from the statement of financial position
date.
14 AMOUNTS DUE FROM/(TO) SUBSIDIARIES
Accounting Policy
The amounts due from/(to) subsidiaries is a financial instrument and the accounting policy is as disclosed in Note 45.
Company
Note 2021 2020
Non-current
Amounts due from subsidiaries 5,403.0 12,977.3
Less: Loss allowances (392.6) (1,104.1)
(a) 5,010.4 11,873.2
Current
Less: Loss allowances (326.0) (538.3)
(b)(c) 2,990.6 1,898.5
Amounts due to subsidiaries (c) (4,136.3) (1,411.9)
(a) The amounts due from subsidiaries classified as non-current as at 31 December 2020, was inclusive of amounts due from TPGSB amounting to
RM11,211.3 million. On 27 January 2021, the Board of Directors had approved the conversion of the amounts due from a subsidiary in respect of
TPGSB totalling RM11,211.3 million, into 60.0% equity and 40.0% shareholder loan. The equity comprises RM225.0 million ordinary shares and
RM6,495.0 million RPS as disclosed in Note 7.
In February 2021, the Company had finalised and agreed on the terms of reference of the shareholder loan amounting to RM4,491.3 million, based
on the Islamic financing structure, for a profit rate of 3.75% per annum repayable over 15 years.
(b) The amounts due from subsidiaries include amount due from Vantage RE No. 1 Ltd. which is subject to an interest rate of 2.0% per annum, is
unsecured and has no fixed term of repayment.
(c) Amounts due from/(to) subsidiaries classified as current are unsecured, interest free and repayable on demand.
Credit risks are disclosed in Note 45(b) to the financial statements.

Pages 182 - 348

31 December 2021
15 LEASES
Accounting Policy
(a) The Group and the Company as lessors
When the Group and the Company act as lessors, they determine at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, the Group and the Company make an overall assessment of whether the lease transfers substantially all of the risks and
rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; otherwise, then it is an operating
lease.
Operating leases
Leases where the Group and the Company retain substantially all of the risks and rewards of ownership of the leased assets are classified as
operating leases. The Group and the Company recognise lease payments received under operating leases as operating income on a straight-
line basis over the lease term.
Finance leases
If the Group and the Company transfer substantially all of the risks and rewards incidental to ownership of the leased assets, leases are classified
as finance leases. The Group and the Company derecognise the leased assets and recognise the net investment in the lease as a receivable. The
difference between the gross receivable and the present value of the receivable is recognised as unearned finance income. Lease income is
recognised over the term of the lease using the net investment method, which reflects a constant periodic rate of return.
(b) The Group and the Company as lessees
The accounting policy on ROU assets and lease liabilities for lessees are disclosed in Note 6.
(a) Finance lease receivables
The Group’s finance lease receivables arise predominantly from Cooling Energy Supply Agreement (‘CESA’) and Energy Performance Contract (‘EPC’).
Group
Present value of minimum lease
Minimum lease payments payments
2021 2020 2021 2020
Within 1 year 2.2 2.2 1.3 1.1

After 1 year and not later than 2 years 2.0 2.5 1.2 1.4
After 2 years and not later than 3 years 2.0 2.0 1.3 1.2
After 5 years 3.7 5.7 3.1 4.7
11.7 14.2 8.7 10.1
13.9 16.4 10.0 11.2
Less: Unearned finance income (3.9) (5.2)
Present value of minimum lease payment receivable 10.0 11.2
The effective interest rate implicit in the finance lease is approximately 9.5% (2020: 9.5%). The carrying amount of the finance lease receivables
approximate to their fair values.


31 December 2021
15 LEASES (C0NTINUED)
(b) Lease liabilities
Group Company
Note 2021 2020 2021 2020
Lease liabilities (i) 29,241.9 28,728.4 71,190.5 65,519.1

Hire purchase creditors (ii) 0 0.4 0 0
29,241.9 28,728.8 71,190.5 65,519.1
(i) The Group’s and the Company’s obligations under lease liabilities arise predominantly from the power purchase agreements with several
Independent Power Producers (‘IPPs’).
Group Company
2021 2020 2021 2020
Minimum lease payments:

- Within 1 year 4,550.0 4,689.8 9,335.3 9,300.5
- After 1 year and not later than 2 years 3,674.5 3,848.0 7,339.3 7,450.9
- After 2 years and not later than 3 years 3,536.4 3,628.6 7,080.0 6,428.1
- After 5 years 22,619.8 21,543.3 75,792.0 69,923.9
35,882.2 34,842.8 103,799.1 96,153.8
Total minimum lease payments 40,432.2 39,532.6 113,134.4 105,454.3
Future finance charges (11,190.3) (10,804.2) (41,943.9) (39,935.2)
29,241.9 28,728.4 71,190.5 65,519.1
Amount payable under lease liabilities:

- Within 1 year 3,098.9 3,257.4 5,393.5 5,611.4
- After 1 year and not later than 2 years 2,351.0 2,547.6 3,604.6 3,999.2
- After 5 years 17,515.4 16,681.7 51,592.2 46,386.7
26,143.0 25,471.0 65,797.0 59,907.7
29,241.9 28,728.4 71,190.5 65,519.1
The weighted average effective interest rate applicable to the lease liabilities as at the financial year end for the Group and the Company are
5.3% (2020: 5.3%) and 5.8% (2020: 5.9%) per annum respectively. The carrying amounts of the lease liabilities approximate to their fair values.

Pages 182 - 348

31 December 2021
(b) Lease liabilities (continued)
(ii) This represents future instalments under hire purchase of motor vehicles, repayable as follows:
Group
2021 2020
Minimum lease payments:

- Within 1 year 0 0.4
- After 1 year and not later than 2 years 0 0
Total minimum lease payments 0 0.4

Future finance charges 0 0
0 0.4
Amount payable under hire purchase:

- Within 1 year 0 0.4
- After 1 year and not later than 2 years 0 0
0 0.4
Hire purchase creditors are effectively secured as the rights to the leased assets revert to the lessors in the event of default.
The weighted average effective interest rate applicable to the hire purchase creditors as at the financial year end is NIL (2020: 5.0%) per
annum and interest for the financial year is at NIL (2020: 2.7%) per annum for the Group. The carrying amounts of the hire purchase payables
approximate to their fair values.
Reconciliation of lease liabilities during the financial year is as follows:

Group Company
2021 2020 2021 2020
As at the beginning of the financial year 28,728.8 31,306.1 65,519.1 67,438.9

Cash flows (4,160.0) (4,335.9) (7,871.8) (7,298.6)
Non-cash changes
- Additional lease 3,268.2 120.4 10,016.3 1,888.3
- Acquisition of a subsidiary 0 175.0 0 0
- Payables (55.2) (123.3) (520.9) (374.4)
- Finance charges (Note 37(b)) 1,460.1 1,587.9 4,047.8 3,864.9
- Reclassification of liabilities directly associated with assets
classified as held for sale (Note 23) 0 (1.4) 0 0
As at the end of the financial year 29,241.9 28,728.8 71,190.5 65,519.1


31 December 2021
(b) Lease liabilities (continued)
The statement of profit or loss includes the following amounts relating to leases:
Group Company
2021 2020 2021 2020
Depreciation charge of ROU assets (Note 6) 3,498.1 3,625.1 5,898.5 5,465.5

Finance charges (Note 37(b)) 1,460.1 1,587.9 4,047.8 3,864.9
Expense relating to leases of low-value assets (Note 33) 40.4 25.3 39.8 24.4
Expense relating to variable lease payments not included in lease
liabilities 335.9 231.5 281.4 139.2
16 FINANCIAL ASSETS AT FVOCI
Accounting Policy
Financial assets at FVOCI are financial instruments and the accounting policy is disclosed in Note 45.
Group Company
2021 2020 2021 2020
Financial assets at FVOCI 62.8 57.6 62.1 56.9
The Group and the Company have at initial recognition, irrevocably elected to present the fair value changes of these non-trading equity securities in
OCI. The Group and the Company consider this classification to be more relevant as these instruments are strategic investments of the Group and of the
Company and not held for trading purposes.
During the financial year, dividend income was recognised and no investment was disposed. The details of the financial assets at FVOCI are as follows:
Group Company
2021 2020 2021 2020
Labuan Reinsurance (L) Ltd. 62.1 56.9 62.1 56.9

Al-Imtiaz Operation and Maintenance Company Ltd. 0.4 0.4 0 0
Club Memberships
- Sultan Salahuddin Abdul Aziz Shah Club 0.1 0.1 0 0
- Glenmarie Gold Country Club 0.1 0.1 0 0
- Leisure Holidays Bhd 0.1 0.1 0 0

Pages 182 - 348

31 December 2021
17 CONTRACT BALANCES
Accounting Policy
(a) Contract cost assets – Costs to fulfil a contract
The Group recognises a contract cost that relates directly to a contract or to an anticipated contract as an asset when the cost generates or
enhances resources of the Group which will be used in satisfying performance obligations in the future and it is expected to be recovered.
These contract costs are initially measured at cost and amortised on a systematic basis that is consistent with the pattern of revenue recognition
to which the asset relates. An impairment loss is recognised in the profit or loss when the carrying amount of the contract cost exceeds the
expected revenue less expected cost that will be incurred. Where the impairment condition no longer exists or has improved, the impairment
loss is reversed to the extent that the carrying amount of the contract cost does not exceed the amount that would have been recognised had
there been no impairment loss recognised previously.
(b) Trade contract assets
A trade contract asset is recognised when the Group’s and the Company’s rights to consideration are conditional on something other than the
passage of time. A contract asset is subject to impairment in accordance to MFRS 9 ‘Financial Instruments’ (Note 45). Typically, the amount will
be billed within 30 days of the supply of electricity for electricity customers and 60 to 180 days for satisfying the performance obligation for
other revenue streams. An assessment of electricity supplied to customers between the date of the last meter reading and the financial year
end of the Group and the Company (unread and unbilled) was made and it is recognised as trade contract assets. Payment is expected within
30 days from the billing date for all trade receivables.
(c) Trade contract liabilities
A trade contract liability represents the obligation of the Group and of the Company to transfer goods or services to a customer for which
consideration has been received (or the amount is due) from the customers.
Trade contract liabilities primarily relate to contributions paid by electricity customers for the construction of electricity network assets. The
customers’ contributions are expected to be recognised as revenue over a period of 20 years, being the estimated average useful life of the
electricity network assets used to connect the customers to the electricity supply.
Other trade contract liabilities within the Group are relating to students fees. All other trade contract liabilities are expected to be recognised
as revenue over the next 12 months.
(d) Non trade contract assets and liabilities
Non trade contract balances are pertaining to insurance and reinsurance contracts which are recognised in accordance to MFRS 4 ‘Insurance
Contracts’.
Contracts under which the Group accepts significant insurance risk from ceding insurers by agreeing to compensate the ceding insurance if a
specified uncertain future event (the insured event) adversely affects the ceding insurers are classified as insurance contracts.
Assets, liabilities and expenses arising from ceded reinsurance contracts are presented separately from the related assets, liabilities, income and
expenses from the related insurance contracts because reinsurance arrangements do not relieve the Group from its direct obligations to its insured.
Reinsurers’ share of insurance contract liabilities, written premiums ceded to reinsurers, reinsurers’ share of change in the reserve for unearned
premiums and outstanding claims are recognised in the same accounting period as the original policy to which the reinsurance relates and are
presented on the statement of financial position on a gross basis.
Reinsurance assets include reinsurers’ share of insurance contract liabilities and balances due from reinsurers. The amounts recognised as
reinsurers’ share of insurance contract liabilities are measured on a basis that is consistent with the measurement of the liabilities held in respect
of the related insurance contracts.


31 December 2021
17 CONTRACT BALANCES (CONTINUED)
(d) Non trade contract assets and liabilities (continued)
Reinsurance assets are assessed for impairment at each date of the statement of financial position. Such assets are deemed impaired if there is
objective evidence, as a result of an event that occurred after its initial recognition, that the Group may not recover all amounts due and that
the event has a reliably measurable impact of the amount that the Group will receive from the reinsurer. The impairment loss is recognised in
profit or loss.
The Group and the Company have recognised the following assets and liabilities related to contracts with customers:
Group Company
Note 2021 2020 2021 2020
Contract cost assets

- Current 111.0 125.3 0 0
- Non-current 0.8 0 0 0
Contract assets
- Trade (a) 3,169.7 3,197.8 2,982.0 3,084.5
- Non trade 148.5 0 0 0
3,318.2 3,197.8 2,982.0 3,084.5
Contract liabilities
- Current trade 341.1 420.5 241.9 259.3
- Non-current trade 4,355.7 3,753.7 3,631.6 3,020.9
(b) 4,696.8 4,174.2 3,873.5 3,280.2
- Current non trade 151.2 0 0 0
4,848.0 4,174.2 3,873.5 3,280.2
(a) Trade contract assets (i)

Performance obligations completed 3,297.9 3,239.2 3,046.0 3,121.2
Transfer to receivables (3,255.7) (3,505.8) (3,084.5) (3,356.8)
(b) Trade contract liabilities (i),(ii)

Received during the financial year 1,038.7 938.6 817.8 527.1
Release to statement of profit or loss:
- Customers’ contribution (269.1) (283.0) (224.5) (237.0)
- Deferred income (247.0) (265.8) 0 0

Pages 182 - 348

31 December 2021
17 CONTRACT BALANCES (CONTINUED)
The Group and the Company have recognised the following assets and liabilities related to contracts with customers: (continued)
(i) Significant changes in trade contract assets and liabilities
Trade contract assets have increased as the Group and the Company have provided more services ahead of the agreed payment schedules for fixed-
price contracts. The Group and the Company also recognised a loss allowance for trade contract assets.
Trade contract liabilities have increased for the Group and the Company due to larger prepayments or contributions received from customers.
(ii) Revenue recognised in relation to trade contract liabilities
The following table shows how much of the revenue recognised in the current financial year relates to carried-forward trade contract liabilities and
how much relates to performance obligations that were satisfied in a prior financial year:
Group Company
2021 2020 2021 2020
Revenue recognised, included in the trade contract liabilities balances

in relation to preceding year (233.3) (369.4) (183.8) (229.2)
Revenue recognised, included in the trade contract liabilities balances
in relation to current year (282.8) (179.4) (40.7) (7.8)
(516.1) (548.8) (224.5) (237.0)
(iii) Unsatisfied performance obligations in long term contracts
The following table shows unsatisfied performance obligations resulting from long term contracts:
Group Company
2021 2020 2021 2020
Aggregate amount of the transaction price allocated to contracts that

are partially or fully unsatisfied 4,696.8 4,174.2 3,873.5 3,280.2
Management expects 6.2% (2020: 7.9%) of the transaction price allocated to the unsatisfied contracts will be recognised as revenue during the next
financial year. The remaining 93.8% (2020: 92.1%) will be recognised from financial years 2023 to 2042.
In respect of the supply of electricity, the Group and the Company applied the practical expedient to not disclose information related to the
transaction price allocated to the remaining performance obligations, on the basis that revenue is recognised from the satisfaction of the
performance obligations upon the consumption of electricity by the customers.
All contracts for period of one year or less are billed based on services provided. The transaction price allocated to these unsatisfied contracts is not
disclosed.


31 December 2021
18 FINANCIAL ASSETS AT FVTPL
Accounting Policy
Financial assets at FVTPL are financial instruments and the accounting policy is disclosed in Note 45.
Group Company
2021 2020 2021 2020
Financial assets at FVTPL 2,522.3 7,114.4 700.7 5,326.6
Current 2,452.3 6,973.9 631.8 5,244.3

Non-current 70.0 140.5 68.9 82.3
2,522.3 7,114.4 700.7 5,326.6
Financial assets at FVTPL mainly represent investments in unit trusts and students’ loans.
Credit risks relating to financial assets at FVTPL are disclosed in Note 45(b) to the financial statements.
19 DERIVATIVE FINANCIAL INSTRUMENTS
Accounting Policy
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value
at the end of each reporting period.
Fair value changes on derivatives that are not designated or do not qualify for hedge accounting are recognised in the statement of profit or loss
when the changes arise.
Notional
Note amount Assets Liabilities
RM’million RM’million RM’million
Non-hedge accounting qualified derivative financial instruments:

Group
2021
Current
Outstanding foreign currency contracts
Spot foreign currency contract (a) 38.9 0 0
Forward foreign currency contracts (b) 39.2 0 (0.4)
Non-current
Interest rate swap contracts (c) 1,703.5 0 (31.0)
Profit rate swap contracts (d) 342.8 1.2 (7.7)
2,046.3 1.2 (38.7)

Pages 182 - 348

31 December 2021
19 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Notional
Note amount Assets Liabilities
Non-hedge accounting qualified derivative financial instruments: (continued)

Group
2020
Current
Non-current
Interest rate swap contracts (c) 1,746.1 0 (150.2)
Profit rate swap contracts (d) 361.3 0 (25.5)
2,107.4 0 (175.7)
Company
2021
Current
Spot foreign currency contract (a) 38.9 0 0
2020
Current
(a) The Group and the Company entered into a spot foreign currency contract with a spot rate at RM4.1700 (2020: RM NIL) for 1 US Dollar.
(b) The Group and the Company entered into forward foreign currency contracts with forward rates of RM4.1865 (2020: RM4.0520 to RM4.1075) for
1 US Dollar and RM3.6820 (2020: RM3.9630) for 100 Japanese Yen.
(c) The Group entered into two Interest Rate Swap (‘IRS’) contracts that entitled the Group to receive interest at floating rates and obliged to pay interest
at fixed rates of 1.33% per annum and 1.67% per annum on aggregate notional principal of GBP30.7 million and GBP89.3 million respectively.
The Group had an additional IRS contract during the financial year 2020 through VSI, which became a subsidiary of the Group on 1 September 2020
(Note 47). In June 2017, Vortex Solar UK Limited, a wholly-owned subsidiary of VSI has entered into an IRS contract that entitled the Group to receive
interest at floating rates and obligated it to pay interest at fixed rate of 1.37% per annum on aggregate notional amount principal of GBP252.7
million.
(d) The Group entered into a Profit Rate Swap (‘PRS’) contract that entitled TNB Bukit Selambau Solar Sdn. Bhd. to receive profit at floating rates and
obliged to pay profit at a fixed rate of 4.31% per annum on aggregate notional principal of RM134.7 million.
In addition, the Group entered into a PRS contract with effect from 13 February 2020 that entitled TNB Sepang Solar Sdn. Bhd. to receive profit at
floating rates and obliged to pay profit at a fixed rate of 3.15% per annum on aggregate notional principal of RM236.2 million.
Credit risks relating to derivative financial instruments are disclosed in Note 45(b) to the financial statements.


31 December 2021
20 INVENTORIES
Accounting Policy
Inventories are stated at the lower of cost and net realisable value.
Cost of work-in-progress and finished goods comprise raw materials, direct labour and a proportion of the production overheads. Cost is determined
on the weighted average basis and comprises all costs of purchase and other costs incurred in bringing the inventories to their present location and
condition.
Net realisable value is the estimated selling price in the ordinary course of business, less the costs of completion and selling expenses.
Group Company
2021 2020 2021 2020
Fuel and consumables 1,955.2 1,559.8 167.5 376.5

Work-in-progress 12.1 14.0 0 0
Finished goods 9.8 10.0 0 0
1,977.1 1,583.8 167.5 376.5
21 RECEIVABLES, DEPOSITS AND PREPAYMENTS
Accounting Policy
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Other receivables
generally arise from transactions outside the usual operating activities of the Group and the Company. If collection is expected in one year or less (or
in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.
Trade and other receivables are recognised initially at fair value, which is the amount of consideration that is unconditional unless they contain
significant financing components. The Group and the Company hold the trade receivables with the objective to collect the contractual cash flows
and therefore measures them subsequently at amortised cost less accumulated impairment losses. The impairment is determined based on the ECL
model and is further disclosed in Note 45.
Group Company
Note 2021 2020 2021 2020
Trade receivables 6,817.0 5,450.7 5,570.8 4,563.5

Staff advances/loans 55.9 58.5 41.9 42.9
Deposits and prepayments (a) 856.5 1,825.2 516.8 1,586.6
Other receivables (b) 5,527.6 416.8 4,786.1 20.4
Rechargeable job orders debtors (c) 341.6 1,452.3 194.9 1,296.0
Partial payment to contractors 31.2 21.0 1.5 0
13,629.8 9,224.5 11,112.0 7,509.4
Impairment losses on:

- Trade receivables (2,853.3) (2,139.5) (2,698.1) (2,011.2)
- Others (228.8) (191.3) (153.7) (114.5)
(3,082.1) (2,330.8) (2,851.8) (2,125.7)
10,547.7 6,893.7 8,260.2 5,383.7

Pages 182 - 348

31 December 2021
21 RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONTINUED)
The Group’s and the Company’s credit policies provide trade receivables with a range between 30 days to 90 days (2020: 30 days to 90 days) credit period.
Credit risks relating to receivables are disclosed in Note 45(b)(i) to the financial statements.
(a) The recoverable amount of contractual obligation of RM1,161.4 million recognised in financial year 2020 has been utilised and offset against the
purchases of gas over and above the committed volume.
(b) Included in other receivables of the Group and of the Company are amounts due from the Government amounting to RM4,783.0 million (2020:
RM124.2 million) under the Imbalanced Cost Pass Through (‘ICPT’) mechanism and RM373.8 million (2020: RM NIL) for the sales discount given to
the customers.
(c) Included in rechargeable job orders debtors of the Group and of the Company is an amount due from the Government amounting to RM NIL (2020:
RM1,084.0 million) for the sales discount given to the customers.
22 DEPOSITS, BANK AND CASH BALANCES
Accounting Policy
For the purpose of the consolidated statement of cash flows, cash equivalents are held for the purpose of meeting short term cash commitments
rather than for investment or other purposes. Cash and cash equivalents comprise cash in hand, deposits held at call with financial institutions, other
short term investments with original maturity of 3 months or less that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value, and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings in
current liabilities.
Group Company
2021 2020 2021 2020
Cash in hand and at bank 3,845.3 2,520.1 1,844.5 350.8

Deposits with licensed banks and financial institution 2,860.8 3,921.4 1,501.6 2,044.2
6,706.1 6,441.5 3,346.1 2,395.0
The interest rates per annum of bank balances and deposits with licensed banks that were effective as at the end of the reporting date were as follows:
Group Company
2021 2020 2021 2020
% % % %
Bank balances 0.1 – 1.7 0.1 – 1.7 0.1 – 1.7 0.1 – 1.7
Deposits with licensed banks and financial institution 0.1 – 2.1 0.1 – 3.2 0.1 – 0.3 0.1 – 2.3
Deposits with licensed banks have maturity periods ranging from 1 to 365 days (2020: 1 to 365 days) for the Group and 1 to 160 days (2020: 1 to 90 days)
for the Company.


31 December 2021
22 DEPOSITS, BANK AND CASH BALANCES (CONTINUED)
Group Company
2021 2020 2021 2020
Cash and cash equivalents comprise:

- Cash in hand and at bank 3,845.3 2,520.1 1,844.5 350.8
- Deposits with licensed banks and financial institution 2,860.8 3,921.4 1,501.6 2,044.2
Deposits, bank and cash balances 6,706.1 6,441.5 3,346.1 2,395.0

Debt reserve account* (Note 27(b)(iii)) (149.6) (137.1) 0 0
Cash at bank held in trust** (323.9) (401.2) 0 0
Restricted cash (1.3) (107.2) 0 0
Deposits with maturity 90 days and more (596.4) (773.0) 0 0
Total cash and cash equivalents 5,634.9 5,023.0 3,346.1 2,395.0
* Debt reserve account relates to deposits placed with licensed financial institution as part of security obligations for bond financing.
** The cash at bank held in trust is in respect of grants received from the Government by a subsidiary for designated capital projects.
23 ASSETS CLASSIFIED AS HELD FOR SALE AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS CLASSIFIED AS HELD FOR SALE
Accounting Policy
Non-current assets or groups of assets are classified as ‘held for sale’ if their carrying amounts will be recovered principally through a sale transaction
rather than through continuing use. Similarly, liabilities directly associated with the disposal group are also presented separately from other liabilities
in the statement of financial position.
Depreciation ceases when an asset is classified as an asset held for sale. Assets held for sale are stated at the lower of carrying amount and fair value
less costs to sell.
On 30 November 2021, the Group has completed the divestment of its entire 100.0% equity stake in TPD and LPL, subsidiaries of the Group for a
consideration of RM226.9 million (USD54.5 million).
Details of the sale of the subsidiaries are as follows:

2021
RM’million
Consideration received or receivables:

- Cash 221.7
- Deferred consideration 5.2
Total disposal consideration 226.9

Carrying amount of net liabilities sold 192.0
Inter-company settlement (200.5)
Gain on sale before transaction cost and reclassification of foreign currency translation reserve 218.4
Transaction cost (6.4)
Reclassification of foreign currency translation reserve (186.9)
Gain on disposal of subsidiaries 25.1

Pages 182 - 348

31 December 2021
23 ASSETS CLASSIFIED AS HELD FOR SALE AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS CLASSIFIED AS HELD FOR SALE (CONTINUED)
The carrying amounts of the assets and liabilities as at the date of sale, 30 November 2021 are:
30 November 2021
TPD LPL Total
Assets
Property, plant and equipment 0 159.4 159.4
Right-of-use assets 0 1.4 1.4
Inventories 0 1.1 1.1
Receivables, deposits and prepayments 0 353.4 353.4
Tax recoverable 0 9.0 9.0
0 524.3 524.3
Liabilities
Payables (0.1) (300.0) (300.1)
Lease liabilities 0 (1.2) (1.2)
Employee benefits 0 0 0
Borrowings 0 (179.1) (179.1)
Other liabilities 0 (235.9) (235.9)
(0.1) (716.2) (716.3)
Net carrying amount of liabilities (0.1) (191.9) (192.0)
The Group did not have any assets held for sale as at 31 December 2021 as the divestment was completed during the financial year. The details of the
assets held for sale and liabilities directly associated with assets held for sale as at 31 December 2020 are as follows:
2020
TPD LPL Total
Assets classified as held for sale

Property, plant and equipment 0 161.5 161.5
Right-of-use assets 0 1.7 1.7
Inventories 0 1.3 1.3
Receivables, deposits and prepayments 0 443.1 443.1
Tax recoverable 0 9.4 9.4
0 617.0 617.0
Liabilities directly associated with assets classified as held for sale

Payables (0.1) (241.3) (241.4)
Lease liabilities 0 (1.4) (1.4)
Employee benefits 0 (0.6) (0.6)
Borrowings 0 (2.4) (2.4)
Other liabilities 0 (260.3) (260.3)
(0.1) (506.0) (506.1)
Net (liabilities)/assets classified as held for sale (0.1) 111.0 110.9


31 December 2021
24 PAYABLES
Accounting Policy
Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Other payables generally arise from transactions outside the usual operating activities of the Group and the Company. Trade and other payables
are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are
presented as non-current liabilities.
Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost, which is the fair value of the consideration
to be paid in the future for the goods and services received.
Provisions are recognised when the Group and the Company have a present legal or constructive obligations as a result of past events, it is probable
that an outflow of resources will be required to settle the obligations and reliable estimates of the amounts can be made. Where the Group and the
Company expect a provision to be reimbursed by another party, the reimbursement is recognised as a separate asset but only when the reimbursement
is virtually certain. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an
outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood
of an outflow with respect to any one item included in the same class of obligations may be small.
Group Company
Note 2021 2020 2021 2020
Trade payables (a) 5,025.2 7,188.0 2,519.7 5,688.4

Payroll liabilities 1,714.8 1,538.0 1,503.4 1,379.6
Deposits 27.3 28.1 10.4 10.3
Provisions (b) 325.3 285.6 147.0 139.0
Financial guarantee contracts 291.1 282.9 293.4 285.2
Other payables and accruals 1,213.0 1,211.5 505.0 405.9
8,596.7 10,534.1 4,978.9 7,908.4
(a) Included in trade payables of the Group and the Company are obligations amounting to RM791.2 million (2020: RM3,448.8 million), relating to the
Electricity Industry Fund under the IBR mechanism.
Credit terms of trade payables of the Group and of the Company vary from 30 to 60 days (2020: 30 to 60 days) depending on the terms of the contracts.
The loss allowance on financial guarantee contracts are mainly arising from financial guarantees provided by the Company to an associate arising from
the ECL model (Note 45(b)(iv)).
(b) The movements in provision during the financial year are as follows:
Legal/ Capital
RMK* CESS Fund^ Disputes Expenditure Levy Tax Others Total
Group
2021
As at the beginning of the financial year 99.8 101.5 17.4 9.2 55.4 2.3 285.6
(Reversal)/Provisions during the
financial year (94.8) 42.8 37.5 66.3 0 (2.3) 49.5
Utilised during the financial year 0 (9.8) 0 0 0 0 (9.8)
As at the end of the financial year 5.0 134.5 54.9 75.5 55.4 0 325.3

Pages 182 - 348

31 December 2021
24 PAYABLES (CONTINUED)
(b) The movements in provision during the financial year are as follows: (continued)
Legal/ Capital
RMK* CESS Fund^ Disputes Expenditure Levy Tax Others Total
Group
2020
As at the beginning of the financial year 99.4 58.3 57.8 15.7 61.3 424.9 717.4
Provisions/(Reversal) during the
financial year 95.6 48.8 (40.4) 26.0 (4.3) 43.9 169.6
Utilised during the financial year (95.2) (5.6) 0 (32.5) (1.6) (466.5) (601.4)
As at the end of the financial year 99.8 101.5 17.4 9.2 55.4 2.3 285.6

Legal/ Capital
RMK* CESS Fund^ Disputes Expenditure Others Total
Company
2021
As at the beginning of the financial year 99.8 22.6 5.1 9.2 2.3 139.0
(Reversal)/Provisions during the financial year (94.8) 1.7 37.1 66.3 (2.3) 8.0
Utilised during the financial year 0 0 0 0 0 0
As at the end of the financial year 5.0 24.3 42.2 75.5 0 147.0
2020
As at the beginning of the financial year 99.4 12.2 13.2 15.7 13.5 154.0
Provisions/(Reversal) during the financial year 95.6 10.4 (8.1) 26.0 0 123.9
Utilised during the financial year (95.2) 0 0 (32.5) (11.2) (138.9)
As at the end of the financial year 99.8 22.6 5.1 9.2 2.3 139.0
* The RMK is provisions in relation to the development cost of Eleventh Malaysia Plan.
^
CESS Fund is relating to contribution for Electricity Supplies Industry Trust Account (‘AAIBE’).
25 EMPLOYEE BENEFITS
Accounting Policy
(a) Short term employee benefits
Wages, salaries, paid annual leave, bonuses, and non-monetary benefits that are expected to be settled wholly within 12 months after the end
of the period in which the employees render the related services are recognised in respect of employees’ services up to the end of the reporting
period and are measured at the amounts expected to be paid when the liabilities are settled.
(b) Post-employment benefits
The Group and the Company have various post-employment benefit schemes which are either defined contribution or defined benefit plans.
A defined contribution plan is a pension plan under which the Group and the Company pay fixed contributions into a separate entity (a fund)
on a mandatory, contractual or voluntary basis and the Group and the Company have no legal or constructive obligations to pay further
contributions if the fund does not hold sufficient assets to pay all employees benefits relating to employee services in the current and prior
periods.


31 December 2021
25 EMPLOYEE BENEFITS (CONTINUED)
(b) Post-employment benefits (continued)
Defined contribution plans
The Group’s and the Company’s contributions to the defined contribution plans are charged to the statement of profit or loss in the financial
year to which they relate. Once the contributions have been paid, the Group and the Company have no further payment obligations.
Defined benefit plans
The Group and the Company make contributions to the Company’s Retirement Benefit Plan, a defined benefit plan and an approved fund
independent of the Company’s finances. A book provision is also provided by the Group and the Company as the contribution rate required to
fund the benefits under the said plan is in excess of the Inland Revenue maximum limit. The Group and the Company also provided for a Post-
Retirement Medical Plan for certain employees, which is unfunded.
The liability in respect of a defined benefit plan is the present value of the defined benefit obligation at the statement of financial position date
minus the fair value of plan assets. The Group and the Company determine the present value of the defined benefit obligation and the fair
value of any plan assets with sufficient regularity such that the amounts recognised in the financial statements do not differ materially from the
amounts that would be determined at the end of the reporting date.
The defined benefit obligation, calculated using the Projected Unit Credit Method, is determined by an independent actuarial firm, considering
the estimated future cash outflows using market yields at the statement of financial position date of high-quality corporate bonds which have
currency and terms to maturity approximating the terms of the related liability.
The current service cost of the defined benefit plan reflects the increase in the defined benefit obligation resulting from employee services in
the current year. It is recognised in the statement of profit or loss as employee benefits expense.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefits obligation and the fair value of plan
assets. This cost is included in employee benefit expense in the statement of profit or loss. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are recognised directly to the OCI in the period in which they arise. The actuarial gains and
losses are not subsequently reclassified to the statement of profit or loss.
(i) Retirement Benefit Trust Fund (‘RBTF’)
The Group and the Company operate a final salary defined benefit plan. The benefit is made as lump sum payment at retirement or earlier
exits due to death and early retirement. The RBTF has been closed to new entrants since January 2008. Currently, there is no minimum
funding requirement under the law.
The RBTF exposes the Group and the Company to risks from interest rates from defined benefit being greater than expected due to
assumptions such as salary increment or turnover rates not being borne out. The RBTF is also exposed to investment risks in relation to
the assets of the plan.
The funding of the RBTF is based on recommendation of the actuary and approved by the Group and the Company. The contributions by
the Group and the Company are based on 6.0% (2020: 7.0%) of the annual basic salaries of the members. The employees are not required
to contribute to the plan.
The Group and the Company expect to contribute 6.0% (2020: 6.0%) of the annual basic salaries of members to the plan in the next
financial year.

Pages 182 - 348

31 December 2021
(b) Post-employment benefits (continued)
Defined benefit plans (continued)
(ii) Post-Retirement Medical Benefit Scheme (‘PRMBS’)
The Group and the Company operate a post-retirement medical benefits plan in Malaysia. The PRMBS is closed to new entrants. There is
no minimum funding requirement under the current law. The PRMBS is unfunded.
The PRMBS exposes the Group and the Company to risks from interest rates and from defined benefits being greater than expected due
to assumptions such as projection of medical benefit costs and mortality not being borne out.
There has not been any settlement or curtailment during the current financial year.
The movements in the financial statements are as follows:

RBTF PRMBS Total
Defined Fair value Net defined
benefit of plan benefit
obligation asset liability
Group
At 1 January 2021 2,536.4 (1,877.3) 659.1 13,193.6 13,852.7
Included in profit or loss

Current service costs 95.3 0 95.3 0 95.3
Interest cost/(income) 88.1 (69.0) 19.1 531.3 550.4
183.4 (69.0) 114.4 531.3 645.7
Included in OCI
Remeasurement of gain (Note 38):
- Actuarial (gain)/loss arising from:
- financial assumptions (95.3) 0 (95.3) (1,018.3) (1,113.6)
- experience assumptions (92.8) 0 (92.8) (90.2) (183.0)
- demographic assumptions 0 0 0 3.0 3.0
- Return on plan assets excluding interest income 0 11.2 11.2 0 11.2
(188.1) 11.2 (176.9) (1,105.5) (1,282.4)
Others
Contribution paid by the employer 0 (281.5) (281.5) 0 (281.5)
Benefits paid (299.8) 296.8 (3.0) (497.0) (500.0)
(487.9) 26.5 (461.4) (1,602.5) (2,063.9)
At 31 December 2021 2,231.9 (1,919.8) 312.1 12,122.4 12,434.5
Current 217.7 550.5 768.2

Non-current 94.4 11,571.9 11,666.3
312.1 12,122.4 12,434.5


31 December 2021
The movements in the financial statements are as follows: (continued)

RBTF PRMBS Total
Group
At 1 January 2020 2,653.5 (1,700.9) 952.6 12,472.2 13,424.8

209.2 (72.9) 136.3 550.4 686.7
Included in OCI
Remeasurement of loss (Note 38):
- financial assumptions (66.5) 0 (66.5) 677.7 611.2
- experience assumptions 48.7 0 48.7 (26.1) 22.6
- Return on plan assets excluding interest income 0 (104.5) (104.5) 0 (104.5)
(17.8) (104.5) (122.3) 651.6 529.3
Others
Benefits paid (307.9) 296.1 (11.8) (480.6) (492.4)
Reclassification of liabilities directly associated with assets
classified as held for sale (Note 23) (0.6) 0 (0.6) 0 (0.6)
(326.3) (103.5) (429.8) 171.0 (258.8)
At 31 December 2020 2,536.4 (1,877.3) 659.1 13,193.6 13,852.7
Current 268.8 515.0 783.8

Non-current 390.3 12,678.6 13,068.9
659.1 13,193.6 13,852.7

Pages 182 - 348

31 December 2021

RBTF PRMBS Total
Company
At 1 January 2021 2,506.9 (1,875.5) 631.4 12,447.7 13,079.1

156.3 (69.0) 87.3 500.3 587.6
Charged to subsidiaries 23.9 0 23.9 0 23.9
180.2 (69.0) 111.2 500.3 611.5
Included in OCI
Remeasurement of gain (Note 38):
- financial assumptions (95.3) 0 (95.3) (957.3) (1,052.6)
- experience assumptions (92.8) 0 (92.8) (91.1) (183.9)
- demographic assumptions 0 0 0 3.0 3.0
- Return on plan assets excluding interest income 0 11.5 11.5 0 11.5
(188.1) 11.5 (176.6) (1,045.4) (1,222.0)
Others
Benefits paid (296.8) 296.8 0 (476.3) (476.3)
(484.9) 26.8 (458.1) (1,521.7) (1,979.8
At 31 December 2021 2,202.2 (1,917.7) 284.5 11,426.3 11,710.8
Current 217.7 528.0 745.7

Non-current 66.8 10,898.3 10,965.1
284.5 11,426.3 11,710.8


31 December 2021

RBTF PRMBS Total
Company
At 1 January 2020 2,613.3 (1,703.8) 909.5 11,743.6 12,653.1

189.6 (72.9) 116.7 518.0 634.7
Charged to subsidiaries 17.9 0 17.9 0 17.9
207.5 (72.9) 134.6 518.0 652.6
Included in OCI
Remeasurement of loss (Note 38):
- financial assumptions (66.5) 0 (66.5) 663.9 597.4
- experience assumptions 48.7 0 48.7 (15.9) 32.8
- Return on plan assets excluding interest income 0 (99.8) (99.8) 0 (99.8)
(17.8) (99.8) (117.6) 648.0 530.4
Others
Benefits paid (296.1) 296.1 0 (461.9) (461.9)
(313.9) (98.8) (412.7) 186.1 (226.6)
At 31 December 2020 2,506.9 (1,875.5) 631.4 12,447.7 13,079.1
Current 268.8 495.7 764.5

Non-current 362.6 11,952.0 12,314.6
631.4 12,447.7 13,079.1

Pages 182 - 348

31 December 2021
The latest actuarial revaluation for RBTF and PRMBS was carried out in February 2022. The principal actuarial assumptions used in respect of defined
benefit plans are as follows:
Group Company
RBTF PRMBS RBTF PRMBS
% % % %
2021
Discount rates 4.4 - 4.5 4.9 4.4 4.8
Salary increment rate 5.0 - 6.0 N/A 6.0 N/A
Medical cost inflation:
- Inpatient N/A 5.5 N/A 5.5
- Outpatient N/A 4.5 N/A 4.5
Others:
- Specialist N/A 4.5 N/A 4.5
- Dialysis N/A 5.5 N/A 5.5
2020
Discount rates 3.7 - 4.5 4.1 3.7 4.1
Salary increment rate 5.0 - 6.0 N/A 6.0 N/A
Medical cost inflation:
- Inpatient N/A 5.5 N/A 5.5
- Outpatient N/A 4.5 N/A 4.5
Others:
- Specialist N/A 4.5 N/A 4.5
- Dialysis N/A 5.5 N/A 5.5
The effect of a 1.0% movement in the key assumptions to the defined benefit obligation balances are as follows:
RBTF PRMBS
Increase Decrease Increase Decrease
Group
2021
Medical cost trend rate N/A N/A 1,558.0 (1,313.0)
Discount rate (127.3) 141.1 (1,349.1) 1,635.9
Salary increment rate 156.1 (143.1) N/A N/A
2020
Discount rate (149.6) 166.6 (1,584.1) 1,942.5


31 December 2021
The effect of a 1.0% movement in the key assumptions to the defined benefit obligation balances are as follows: (continued)
RBTF PRMBS
Increase Decrease Increase Decrease
Company
2021
Discount rate (124.9) 138.3 (1,258.0) 1,522.1
2020
Discount rate (149.6) 166.6 (1,477.4) 1,807.1
The sensitivity analysis have been provided based on membership data as at 31 December 2021 and considered a change of each principal assumption in
isolation. The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.
The weighted average duration of the Group’s and of the Company’s liabilities are estimated at approximately 7 and 14 years for RBTF and PRMBS
respectively.
Plan assets for RBTF comprise:

Group and Company
2021 2020
% %
Equity instruments - quoted 53.7 53.0

Debt instruments - quoted 17.4 20.8
- unquoted 21.3 17.8
Others 7.6 8.4
100.0 100.0
The plan assets for RBTF did not include any ordinary share of the Company.
The Group’s and the Company’s RBTF are conditional on future employment of the members of the plan. The Group’s and the Company’s PRMBS are not
conditional on future employment and has been fully vested as at 31 December 2021.
26 CONSUMER DEPOSITS
Consumers (with the exception of employees and government departments/agencies) are required to deposit a sum sufficient to cover charges for two
months supply of electricity as allowed under the regulation of the Licensee Supply (Amendment) Regulations 2002. In default of payment of the deposit
within the time specified, the supply to the consumer’s installation may be disconnected, subject to certain conditions laid out in the regulations.
An interest of 2.5% per annum is credited to the consumer’s cash deposit.
Consumer deposits are classified as current liabilities as the amounts shall be refunded within 30 days upon request for termination of electricity supply
by the consumer.

Pages 182 - 348

31 December 2021
27 BORROWINGS
Accounting Policy
Borrowings are recognised initially at fair value, net of transaction costs incurred. In subsequent periods, borrowings are stated at amortised cost
using the effective interest method, any differences between proceeds (net of transaction costs) and the redemption value are recognised in the
statement of profit or loss over the period of the borrowings.
Borrowings are classified as current liabilities unless the Group and the Company have an unconditional right to defer settlement of the liability for at
least 12 months after the statement of financial position date.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the
facilities will be drawdown. In this case, the fee is deferred until the drawdown occurs. The transaction costs are amortised over the tenure of the loan
and recognised in the statement of profit or loss.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time the assets are substantially
ready for their intended use or sale. All other borrowing costs are recognised in the statement of profit or loss in the period in which they are incurred.
As for Government loans at an interest rate which is below the market rate of interest, the differential between the initial carrying value of the loan
based on market rate and the Government rate is recognised as a deferred income and is credited to the statement of profit or loss over the period
necessary to match the interest costs.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the
borrowing costs eligible for capitalisation.
Group Company
Note 2021 2020 2021 2020
Current
Secured:
- Short term loans 201.3 652.0 0 450.6
- Term loans (a) 864.0 697.6 0 0
- Bonds (b) 832.3 1,098.6 0 0
Unsecured:
- Short term loans 1,650.8 237.6 1,403.2 0
- Bankers’ acceptances 872.6 48.4 801.0 0
- Term loans (a)(d) 1,191.3 884.1 1,130.7 830.6
- Bonds (b) 769.1 2,211.0 769.1 2,211.0
- Redeemable Unsecured Loan Stocks (c) 611.1 579.8 0 0
Total short term borrowings 6,992.5 6,409.1 4,104.0 3,492.2
Non-current
Secured:
- Term loans (a) 4,051.9 4,244.5 0 0
- Bonds (b) 18,441.5 18,908.2 0 0
Unsecured:
- Term loans (a)(d) 2,240.9 3,243.4 1,971.0 2,941.7
- Bonds (b) 19,951.4 16,647.4 18,961.3 15,657.4
Total long term borrowings 44,685.7 43,043.5 20,932.3 18,599.1
The short term borrowings carry interest at rates ranging from 0.8% to 8.0% (2020: 0.8% to 8.0%) per annum for the Group and from 0.8% to 9.4% (2020:
0.8% to 9.4%) per annum for the Company.


31 December 2021
27 BORROWINGS (CONTINUED)
Group Company
2021 2020 2021 2020
Portion of borrowings due within 1 year:

- Short term loans 1,852.1 889.6 1,403.2 450.6
- Bankers’ acceptances 872.6 48.4 801.0 0
- Term loans 2,055.3 1,581.7 1,130.7 830.6
- Bonds 1,601.4 3,309.6 769.1 2,211.0
- Redeemable Unsecured Loan Stocks 611.1 579.8 0 0
6,992.5 6,409.1 4,104.0 3,492.2
Borrowings repayable after 1 year:
- After 1 and up to 2 years 1,217.0 929.9 115.9 124.5
- After 2 and up to 5 years 3,853.1 5,252.6 1,742.0 2,413.8
- After 20 and up to 30 years 3,418.5 2,462.2 0 0
- After 30 years 317.5 305.5 317.5 305.5
44,685.7 43,043.5 20,932.3 18,599.1
Group
2021 2020
Net book values of assets pledged as security for borrowings:

Machinery, lines and equipment 30,665.8 29,534.2
Buildings 3,377.8 2,793.8
Land 503.5 528.7
34,547.1 32,856.7

Pages 182 - 348

31 December 2021
(a) Term loans
(i) Term Loan – SESB Federal Government Loans
The Federal Government loans obtained by SESB are secured by the following:
• A debenture creating:
- a first fixed charge over all present and future freehold and leasehold properties including all buildings and fixtures; and
- a first floating charge over all present and future assets of SESB not effectively charged by way of the fixed charge.
• A deed of assignment transferring all SESB’s present and future rights and interests in all sales proceeds or revenue derived from the sale
of electricity generated from the projects funded.
• A deed of assignment transferring all SESB’s present and future rights and interests in the bank accounts in which the loan proceeds are
credited.
The tenure of the loans ranges from 20 to 25 years with a fixed interest rate applicable during the financial year ranging from 0% to 4.0% per
annum.
(ii) Term Loan - TNB Engineering Corporation Sdn. Bhd. (‘TNEC’)
On 20 December 2010, TNEC entered into a 15-year RM73.3 million secured loan, bearing interest at a fixed rate of 5.9% per annum. The loan
will mature on 24 December 2025. The principal is payable in 12 annual instalments.
The term loan is secured by a corporate guarantee from the Company. The term loan also requires TNEC to comply with certain affirmative and
restrictive non-financial covenants.
(iii) Term Loan - Malaysia Transformer Manufacturing Sdn. Bhd. (‘MTM’)
On 2 May 2017, MTM entered into a RM25.0 million unsecured financing facilities under Commodity Murabahah Financing-i with a floating
profit rate of 1.6% plus prevailing Kuala Lumpur Interbank Offered Rate (‘KLIBOR’) per annum and RM50.0 million under Revolving Financing-i
with floating profit rate of 0.75% plus prevailing KLIBOR per annum to partly finance the construction and development of a new plant at
Kapar, Klang. The loan will mature on 29 May 2023.
In addition, on 28 August 2017, MTM obtained a RM35.0 million unsecured Commodity Murabahah Flexi Term Financing-i for the purpose of
part financing the new plant in Kapar, Klang. The loan will mature on 1 November 2023.
(iv) Term Loan - TNB Sepang Solar Sdn. Bhd. (‘TSS’)
On 19 July 2017, TSS entered into a 20-year secured Istisna’ Term Financing-i for a maximum principal of RM280.0 million with a KLIBOR
floating rate plus prevailing margin of 1.2% per annum (for pre-commercial operation date (‘COD’)) and 1.3% per annum (for post-COD) to
finance the construction of a 50MW solar power plant at Kuala Langat.
The borrowings which are repayable from six months after the COD are required to be settled in full by the final maturity date of 30 June 2037.
(v) Term Loan - TNB Bukit Selambau Solar Sdn. Bhd. (‘TNBBSS’)
On 13 December 2018, TNBBSS obtained a RM135.0 million Islamic Facility Agreement from MUFG Bank (Malaysia) Berhad to finance the
construction of a 30MW solar power plant. The tenure of the facility agreement is up to 20 years with a profit rate for pre-COD (KLIBOR+1.0%)
and post-COD (KLIBOR+0.75%) per annum.
The borrowings are repayable from six months after the COD and is required to be settled in full by the final maturity date of 10 December
2038.


31 December 2021
(a) Term loans (continued)
(vi) Term Loan - Tenaga Wind Ventures UK Ltd. (‘TWV’)
On 28 March 2018, TWV entered into a new debt facility of GBP120.0 million for the purpose of refinancing the senior debt facility held by GVO
Wind Limited (‘GVO’) and Bluemerang Capital Limited (‘BCL’). Based on London Interbank Offered Rate (‘LIBOR’) transition exercise, TWV has
entered into addendum agreement in 2021 to reflect the new reference rate which is Sterling Overnight Index Average (SONIA) effective from
January 2022. There has been no material impact for the year ended 31 December 2021.
(vii) Term Loan – Vantage Solar Investments S.A.R.L. (Formerly known as Vortex Solar Investments S.A.R.L.) (‘VSI’)
On 22 June 2017, Vortex Solar UK4 Limited (‘VSUK’), a wholly-owned subsidiary of VSI obtained a bank loan for the purpose of refinancing
the senior debt facility held by Terraform UK3 Intermediate Holdings Ltd. VSUK entered into a loan agreement with the total of eight (8)
lenders including Santander UK Plc (‘Santander’) acting as the facility agent for an amount of GBP337.0 million, that will mature in March
2035. The facility bears interest at a rate per annum equal to LIBOR plus an applicable margin of 1.9% for the first 3 years, 2.1% for subsequent
3 years, 2.3% for subsequent 3 years and thereafter at 2.5% until maturity. As at 31 December 2021, the facility continues to apply LIBOR as
there is a refinancing exercise being initiated. The refinancing exercise is then completed on 23 February 2022 as disclosed in Note 48. Upon
completion, the refinanced facility bears a fixed interest rate 2.8% per annum with no changes to the maturity date.
(b) Bonds or Sukuk
(i) Sukuk - TNB Janamanjung Sdn. Bhd. (‘TNBJ’)
On 25 November 2011, TNBJ established a RM4.9 billion Islamic Securities Programme to finance the construction of a 1,010MW coal-fired
power plant. The tenure of the Sukuk issued from the Islamic Securities Programme ranges from 5 to 20 years with profit rates between 3.8%
and 4.9% per annum.
The Islamic Securities Programme was issued by Manjung Island Energy Berhad (‘MIEB’) which is a special purpose vehicle company
incorporated in Malaysia with a paid up capital of RM2.00 ordinary share. All of the issued shares of MIEB are held by Equity Trust (Malaysia)
Berhad as share trustee for the benefit of certain specified charities, under the terms of a declaration of trust.
The Sukuk issued from the Islamic Securities Programme consists of 2 series and the details of the series are as follows:
(a) Series 1 consists of 15 tranches, with tenures ranging from 5 to 19 years.
(b) Series 2 consists of 1 tranche, with a tenure of 20 years.
(ii) Sukuk - TNB Northern Energy Berhad (‘TNEB’)
On 22 May 2013, TNEB entered into a RM1.6 billion sukuk facility agreement to finance the construction of a 1,071MW gas-fired power plant.
The tenure of the sukuk is 23 years with profit rates between 3.6% and 4.8% per annum. The sukuk facility agreement consists of 39 tranches
with tenures ranging from 4 to 23 years and the sukuk is secured.
(iii) Sukuk - Kapar Energy Ventures Sdn. Bhd. (‘KEV’)
On 5 July 2013, KEV issued a sukuk facility based on the Shariah principles of Ijarah (‘Sukuk Ijarah’) of RM2.0 billion in nominal value. The tenure
of the sukuk ranging from 1 to 13 years with profit rates of 3.8% to 5.0% per annum and the sukuk is secured. The Sukuk proceeds were utilised
for Shariah-compliant purposes, which include refinancing the outstanding Bai’ Bithaman Ajil Islamic Debt Securities (‘BaIDS’), payment of
fees and expenses in relation to the Sukuk Ijarah facility and to meet the general working capital purposes of KEV.

Pages 182 - 348

31 December 2021
(b) Bonds or Sukuk (continued)
(iv) Sukuk - TNB Western Energy Berhad (‘TWEB’)

On 24 January 2014, TWEB entered into a RM3.7 billion sukuk facility agreement to finance the construction of a 1,000MW coal-fired power
plant. The sukuk facility agreement consists of 20 tranches with tenures ranging from 10 to 20 years with profit rates ranging from 5.1% and
5.8% per annum. The sukuk TWEB will be secured and credit-enchanced by the company in the form of Sponsor’s completion support and
sponsor’s rolling guarantee.
(v) Sukuk – Jimah East Power Sdn. Bhd. (‘JEP’)
On 4 December 2015, JEP issued a Sukuk Murabahah of RM9.0 billion in nominal value. The proceeds from the Sukuk Murabahah were
utilised by JEP for shariah-compliant purposes in connection with the financing, design, engineering, procurement, construction, installation,
testing, commissioning, ownership, operation and maintenance of a 2,000MW coal-fired power plant and associated facilities, including the
transmission line and interconnection facilities. The tenure of the facility agreement is 23 years with profit rates between 5.0% and 6.8% per
annum. The sukuk facility agreement consists of 36 tranches with tenures ranging from 6 to 23 years.
(vi) Sukuk - Southern Power Generation Sdn. Bhd. (‘SPG’)
On 31 October 2017, SPG issued a Sukuk Wakalah of RM3.7 billion in nominal value to finance the construction of a 1,440MW gas-fired power
plant and associated facilities, including the interconnection facilities.
The tenure of the facility agreement is 18 years with profit rates between 4.7% and 5.6% per annum. The sukuk facility agreement consists of
28 tranches with tenures ranging from 4.5 years to 18 years.
The Sukuk Wakalah is secured by the following securities:

(a) all property, plant and equipment including the plant, machinery, motor vehicle, furniture, fittings and other equipment of the SPG.
(b) all shares, bonds and securities whether marketable or otherwise and all other interests including but not limited loan capital.
(vii) Sukuk - TNB Global Ventures Capital Berhad (‘TGVC’)
On 4 October 2016, TGVC established a USD2.5 billion Multi-Currency Medium Term Note Sukuk Programme to provide flexibility to the
Company’s fund raising exercise for its future investments.
The Sukuk Programme is unsecured and has the benefit of an unconditional and irrecoverable guarantee from the Company, to meet the
payment obligations of TGVC.
On 19 October 2016, the Company issued a USD750.0 million sukuk for a tenure of 10 years with profit rate of 3.2% per annum.
On 1 November 2018, the Company had a second issuance of USD750.0 million for a tenure of 10 years with a profit rate of 4.9%.
(viii) Sukuk - Islamic Medium Term Note Sukuk Wakalah
On 6 July 2017, the Company established a RM5.0 billion Islamic Medium Term Note Sukuk Wakalah to finance capital expenditure, investment,
general corporate purpose, working capital requirements and/or refinance any existing financing facilities of the issuer and/or its subsidiaries
and to defray any fees and expenses of the Sukuk Programme.
On 3 August 2017, the Company issued RM2.0 billion Sukuk Wakalah which comprised RM500.0 million with 15 years tenure and RM1.5 billion
with 20 years tenure, with profit rates of 5.0% and 5.2% respectively.
On 29 August 2018, the Company issued RM3.0 billion Sukuk Wakalah which comprised RM1.0 billion with 15 years tenure and RM2.0 billion
with 20 years tenure, with profit rates of 4.8% and 5.0% per annum respectively.


31 December 2021
(b) Bonds or Sukuk (continued)
(ix) Sukuk - Islamic Medium Term Note Sukuk Wakalah
On 30 June 2020, the Company established a RM10.0 billion Islamic Medium Term Note Sukuk Wakalah to finance capital expenditure,
investment, general corporate purposes, working capital requirement and/or refinance any existing financing facilities of the Company and/
or subsidiaries and to defray any fees and expenses of Sukuk Wakalah Programme.
On 12 August 2020, the Company issued RM3.0 billion Sukuk Wakalah which comprised RM750.0 million with 10 years tenure, RM750.0 million
with 15 years tenure and RM1.5 billion with 20 years tenure, with profit rates of 2.9%, 3.3% and 3.6% per annum respectively.
On 25 November 2021, the Company issued RM3.0 billion Sukuk Wakalah which comprised RM300.0 million with 7 years tenure, RM300.0
million with 10 years tenure, RM1.2 billion with 15 years tenure and RM1.2 billion with 20 years tenure, with profit rates of 3.9%, 4.1%, 4.5%
and 4.7% per annum respectively.
(c) Redeemable Unsecured Loan Stock (‘RULS’) - KEV
On 29 June 2004, KEV issued RM957.6 million of RULS to the Company and Malakoff Corporation Berhad to finance the acquisition of Stesen
Janaelektrik Sultan Salahuddin Abdul Aziz, Kapar. The RULS bears an interest of 8.0% per annum on the outstanding nominal value of the RULS. The
interest is repayable semi-annually on the last day of the relevant six months period from the issue date of RULS. The RULS is repayable from the third
year from the issue date of RULS as stipulated in the agreement dated 29 June 2004. The RULS has to be settled in full by the final maturity date of
8 July 2029. During the financial year 2020, the RULS has been novated to TPGSB under the internal reorganisation initiative.
(d) Preferred Equity Certificates (‘PEC’)
On 22 December 2017, Kumpulan Wang Persaraan (‘KWAP’) had provided a shareholder loan of GBP46.2 million to VSI through the subscription of
PEC. The financial instrument bears a fixed interest rate of 8.0% per annum and will mature in 2047.
Reconciliation of borrowings from financing activities during the financial year is as follows:
Group Company
2021 2020 2021 2020

Cash flows:
- Drawdowns 7,266.1 6,454.5 6,750.0 5,490.0
- Repayments (5,380.1) (4,450.0) (3,955.5) (2,845.5)
- Finance cost paid (2,280.3) (2,224.8) (982.0) (940.3)
Non-cash changes:
- Finance cost (Note 37(b)) 2,452.7 2,393.4 1,005.0 981.1
- Translation loss/(gain) - foreign term loans (Note 36) 127.5 (82.1) 127.5 (82.1)
- Transfer from payables 39.7 75.4 0 0
- Acquisition of a subsidiary 0 1,876.9 0 0
- Reclassification of liabilities directly associated with assets classified
as held for sale (Note 23) 0 (2.4) 0 0

Pages 182 - 348

31 December 2021
28 GOVERNMENT DEVELOPMENT GRANTS
Accounting Policy
Grants from the government are recognised at their fair values where there is a reasonable assurance that the grants will be received and the Group
will comply with all attached conditions.
Government grants relating to costs are deferred and recognised in the statement of profit or loss over the period necessary to match them with the
costs they are intended to compensate.
Government grants relating to construction of PPE are included in non-current liabilities as deferred income and are credited to the statement of
profit or loss on the straight line method over the expected lives of the related assets.
A subsidiary of the Group obtained Government loans at an interest rate which is below the market rate of interest. The differential between the initial
carrying value of the loan based on market rate and the Government rate is recognised as a deferred income and is credited to the statement of profit
or loss over the period necessary to match the interest costs.
Reconciliation of government development grants from financing activities during the financial year is as follows:
Group
2021 2020
As at the beginning of the financial year 961.2 1,031.3

Received during the financial year:
- Cash 2.2 9.3
- Assets 73.2 7.4
- Government loans 0 1.5
Released to statement of profit or loss:
- Other operating income (Note 35) (62.8) (66.8)
- Finance cost (Note 37(b)) (25.4) (21.5)
As at the end of the financial year 948.4 961.2
The government development grants are provided by the Government mainly for the construction of PPE of RM740.2 million (2020: RM723.0 million) and
the Government loan below market interest rate is RM186.5 million (2020: RM211.9 million).
29 OTHER LIABILITIES
Group Company
Note 2021 2020 2021 2020
Payable to State Government 13.2 16.4 0 0

Retention monies (a) 651.3 590.0 681.0 603.5
Others (b) 310.8 295.9 2.8 2.8
975.3 902.3 683.8 606.3
(a) Retention monies primarily relates to the vendor retention monies for projects with completion period of more than 12 months.
(b) Mainly relates to the provision for restoration cost for certain assets for which there is an obligation to dismantle, remove and restore the sites at the
end of their useful lives amounting RM301.8 million (2020: RM293.1 million).


31 December 2021
30 SHARE CAPITAL
Accounting Policy
Classification
Ordinary shares and non-redeemable preference shares with dividends are classified as equity. Other shares are classified as equity and/or liability
according to the economic substance of the particular instrument.
Distributions to holders of a financial instrument classified as an equity instrument are charged directly to equity.
Share issue costs

Incremental external costs directly attributable to the issuance of new shares or options are shown in equity as a deduction, net of tax, from the
proceeds.
Dividends to shareholders of the Company

Dividends are recognised as liability in the period in which they are declared.
Group and Company

Note 2021 2020
Issued and fully paid:

Ordinary Shares 5,726,091,371 5,704,653,871
Special Rights Redeemable Preference Share (a) 1 1
Total share capital issued and fully paid 5,726,091,372 5,704,653,872
Group and Company

Number of Number of
shares Amount shares Amount
Note 2021 2021 2020 2020
Million RM’million Million RM’million
Issued and fully paid:

Ordinary Shares
LTIP shares issued during the financial year (b) 21.4 252.4 17.8 229.1
(a) Special Rights Redeemable Preference Share (‘Special Share’)
(i) The Special Share would enable the Government through the Minister of Finance Incorporated (‘MOF Incorporated’) to ensure that certain
major decisions affecting the operations of the Company are consistent with the Government’s policies. The Special Shareholder, which may
only be the Government or any representative or person acting on its behalf, is entitled to receive notices of meetings but not to vote at such
meetings of the Company. However, the Special Shareholder is entitled to attend and speak at such meetings.
The Special Shareholder has the right to appoint any person, but not more than six at any time, to be a member of the Board of Directors of
the Company.

Pages 182 - 348

31 December 2021
30 SHARE CAPITAL (CONTINUED)
(a) Special Rights Redeemable Preference Share (‘Special Share’) (continued)
(ii) Certain matters, in particular the alteration of the Articles of Association of the Company relating to the rights of the Special Shareholder,
creation and issue of additional shares which carry different voting rights, the dissolution of the Company, substantial disposal of assets,
amalgamations, merger and takeover, require the prior consent of the Special Shareholder.
(iii) The Special Shareholder does not have any right to participate in the capital or profits of the Company.
(iv) The Special Shareholder has the right to require the Company to redeem the Special Share, at par, at any time.
(b) The Company issued and allotted ordinary shares of 21,426,100 on 27 May 2021 and 11,400 on 2 June 2021 to eligible employees, pursuant to the
letter of offer dated 18 April 2018, 30 April 2019, 6 July 2020 and 27 July 2020 respectively in accordance with the by-laws of the LTIP scheme of the
Company during the financial year ended 31 December 2021.
31 OTHER RESERVES
The Group’s and the Company’s other reserves comprise:

Nature Description
LTIP reserve Arising from the corresponding increase in equity from expenses recognised in profit or loss over the
vesting period of the equity-settled shares based compensation plan for the Group’s and the Company’s
employees as disclosed in Note 34.
Employee benefits reserve Arising from the remeasurements of the net defined employee benefit liability.
Foreign currency translation reserve Arising from the translation of the financial statements of foreign operations whose functional currencies
are different from that of the Group’s presentation currency.
FVOCI reserve Arising from changes in fair value of financial assets at FVOCI.
The movements in each category of reserves are as follows:

Foreign
Employee currency
LTIP benefits translation FVOCI
reserve reserve reserve reserve Total
Group
2021
As at the beginning of the financial year 315.4 (7,718.7) (859.0) 19.6 (8,242.7)
Arising in the financial year 43.1 978.7 402.4 5.2 1,429.4
As at the end of the financial year 358.5 (6,740.0) (456.6) 24.8 (6,813.3)
2020
As at the beginning of the financial year 319.3 (7,317.3) (786.7) 20.9 (7,763.8)
Arising in the financial year (3.9) (401.4) (72.3) (1.3) (478.9)
As at the end of the financial year 315.4 (7,718.7) (859.0) 19.6 (8,242.7)


31 December 2021
31 OTHER RESERVES (CONTINUED)
The movements in each category of reserves are as follows: (continued)

Employee
LTIP benefits FVOCI
reserve reserve reserve Total
Company
2021
As at the beginning of the financial year 315.4 (7,252.9) 18.9 (6,918.6)
Arising in the financial year 43.1 928.7 5.2 977.0
As at the end of the financial year 358.5 (6,324.2) 24.1 (5,941.6)
2020
As at the beginning of the financial year 319.3 (6,849.8) 20.2 (6,510.3)
Arising in the financial year (3.9) (403.1) (1.3) (408.3)
As at the end of the financial year 315.4 (7,252.9) 18.9 (6,918.6)
32 REVENUE
Accounting Policy
Revenue which represents income arising in the course of the Group’s and the Company’s ordinary activities is recognised by reference to each
distinct performance obligation promised in the contracts with customers. Revenue from contracts with customers is measured at its transaction
price, being the amount of consideration which the Group and the Company expect to be entitled in exchange for transferring promised goods or
services to a customer, net of goods and service tax, returns, rebates and discounts. Transaction price is allocated to each performance obligation
on the basis of the relative stand-alone selling prices of each distinct good or services promised in the contract. Depending on the substance of the
respective contract with the customer, revenue is recognised when the performance obligation is satisfied, which may be at a point in time or over
time.
The Group and the Company do not expect any contracts where the period between the transfer of the promised goods or services to the customer
and payment by the customer exceeds one year. As a consequence, the Group and the Company do not adjust any of the transaction prices for the
time value of money.
(a) Electricity revenue
Revenue from the supply of electricity in Peninsular Malaysia is regulated based on certain formulae and parameters as set out in the regulatory
implementation guidance under the IBR framework and as agreed with the regulators.
The contract with customers is for the supply of electricity based on tariff rates as set out in the provision of the Electricity Supply Act 1990.
Collection of the contract consideration from customers is considered probable.
The promise to supply electricity represents a promise to transfer a series of distinct goods that are substantially the same and that have the
same pattern of transfer to the customer. The performance obligation to deliver electricity is satisfied over time as the customers simultaneously
received and consumed the benefits provided by the Group’s and the Company’s performance. Hence, electricity revenue is recognised over
time by the Group and the Company when electricity is consumed by customers.
Generally, customers are billed on a monthly basis. As the amount at which the Group and the Company have a right to invoice corresponds
directly with the value to the customer, the revenue from electricity sales is also recognised on a monthly basis. Payment should be made by
customers within 30 days from the date the bill is issued. An interest charge will be imposed if payment is made later than 30 days after the bill
date.

Pages 182 - 348

31 December 2021
32 REVENUE (CONTINUED)
(a) Electricity revenue (continued)
Electricity revenue includes an estimated value of the electricity consumed by customers from the date of their last meter reading and the
reporting period end. Accrued unbilled revenues recognised as contract assets are reversed in the following month when actual billings occur.
ICPT, a mechanism established under the IBR allows the Company to pass through the volatility in fuel and other generation specific costs
(termed as the ‘Single Buyer Generation Cost’) to the customers, such that the Company remains financially neutral. The Company’s claims
and undertakings under the ICPT mechanism are such that any over or under recovery of costs would be payable to or reimbursable from the
Government, and would be recognised as part of revenue in the period the costs are incurred. Actual base tariff billed to the customers remains
unchanged.
Included in the revenue, is the Annual Regulatory Adjustment (‘ARA’) for the over or under recovery of revenue and other income earned
during the year. The Company has taken into account the principles laid out in the Guidelines on Electricity Tariff Determination under the IBR
for Peninsular Malaysia 2018, where the allowed revenue in each year is calculated as the sum of actual revenue earned and any applicable
adjustments, such as those related to the revenue-cap, price-cap and other income adjustment mechanisms as described in the Guidelines.
Other income which is earned from services not directly related to electricity supply, but are provided using the assets and/or staff of a licensee
is deducted from the revenues to be earned from regulated tariffs.
(b) Goods and services
(i) Sale of goods
Sale of goods is recognised when control of the products has transferred, being when the products are delivered to the customer and there
is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been
transported to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has
accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence
that all criteria for acceptance have been satisfied.
Revenue from these sales is recognised based on the price specified in the contract, net of the estimated discounts. Accumulated
experience is used to estimate and provide for the discounts, using the expected value method, and revenue is only recognised to the
extent that it is highly probable that a significant reversal will not occur. No element of financing is deemed present as the sales are made
with a credit term of an average between 30 to 60 days, which is consistent with market practice. The Group’s obligation to repair or
replace faulty products under the standard warranty terms is recognised as a provision.
A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only
the passage of time is required before the payment is due.
(ii) Rendering of services
Revenue from providing services is recognised over the period in which the services are rendered. Revenue is recognised based on the
actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer
received and uses the benefits simultaneously.
In cases of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered exceed the
payments, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.
If the contract includes hourly fees, revenue is recognised at the amount to which the Group has a right to invoice. The amounts are billed
within 60 to 180 days from satisfying the performance obligations and payment is expected within 30 days from the billing date.


31 December 2021
(c) Construction contracts
Revenue from construction contracts is recognised over time or at a point in time in accordance with performance obligations being satisfied.
Where revenue is recognised over time, the satisfaction of performance obligation is by reference to the stage of completion which is assessed
by reference to the contract costs incurred over the total estimated costs for each contract as at the reporting date. Otherwise, revenue is
recognised at a point in time when the customer obtains control of the assets. The related costs are recognised in profit or loss when they are
incurred.
Where the contracts include multiple performance obligations, the transaction price will be allocated to each performance obligation based
on the stand-alone selling prices. Where these are not directly observable, they are estimated based on expected cost plus margin. If contracts
include sale of goods as a separate performance obligation, revenue from this sale is recognised at a point in time when the goods are delivered,
the legal title has passed and the customer has accepted the goods.
When the consideration of a construction contract cannot be estimated reliably, contract revenue is recognised only to the extent of contract
costs incurred that are likely to be recoverable. An expected loss on a contract is recognised immediately in the statement of profit or loss.
Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases
in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become
known by management.
The amounts will be billed within 60 to 180 days from satisfying the performance obligations and payment is expected within 30 days from
billing date. Advances received are included in contract liabilities.
(d) Customers’ contributions
Contributions received from customers consist of cash and assets in the form of PPE. It is capital contributions for the construction of assets,
used to connect the customers to a network or to provide them with the service.
The customers’ contributions are viewed as indirectly related to the promise of providing supply of electricity to the customers. Supply of
electricity and customers’ contributions are not distinct because the customers cannot benefit from these two services on their own. The
connection infrastructures are to fulfil the obligation to supply electricity to the customers. Both the supply of electricity and customers’
contributions are substantially the same, and have the same pattern of transfer to the customers.
Therefore, connection and the supply of electricity are one performance obligation. It is considered as part of the transaction price for the
overall service provided to the customers and is recognised over time. The customers’ contributions are deferred and recognised over the
period the constructed assets are used to provide electricity to the customers. The contributions are recognised as contract liabilities and
amortised over 20 years, being the estimated average useful life of the assets.

Pages 182 - 348

31 December 2021
Disaggregation of revenue from contracts with customers for the Group and the Company are categorised as follows:
Group Company
2021 2020 2021 2020
Sales:
- Electricity* 51,189.9 42,835.4 48,606.8 40,521.3
- Goods and services 708.9 440.4 0 0
Tariff support subsidy 368.2 367.9 0 0
Construction contracts 93.4 49.3 0 0
Customers’ contributions 269.1 283.0 224.5 237.0
52,629.5 43,976.0 48,831.3 40,758.3
Over time 51,655.0 43,273.6 48,831.3 40,758.3

At a point in time 974.5 702.4 0 0
52,629.5 43,976.0 48,831.3 40,758.3
* Included in the sales of electricity are under recovery of ICPT amounting RM4,509.6 million (2020: over recovery of RM3,034.4 million) and other regulatory adjustments of
RM551.9 million (2020: RM621.0 million).
The revenue of the Group and of the Company are predominantly derived in Malaysia.
33 OPERATING EXPENSES
Group Company
2021 2020 2021 2020
Cost of sales:
- Energy cost 29,868.0 23,787.3 30,649.5 23,288.7
- Transmission cost 1,945.6 1,881.6 1,805.4 1,739.4
- Distribution cost 6,694.0 6,420.5 6,379.2 6,091.4
38,507.6 32,089.4 38,834.1 31,119.5
Administrative expenses 3,142.6 2,915.3 1,903.1 1,764.6
Other operating expenses 2,874.2 2,127.7 1,546.6 1,149.6
44,524.4 37,132.4 42,283.8 34,033.7


31 December 2021
33 OPERATING EXPENSES (CONTINUED)
Operating expenses include the following items:

Group Company
2021 2020 2021 2020
Purchases from Independent Power Producers (‘IPPs’) 8,863.8 8,271.3 18,641.8 15,572.8
Fuel costs 15,225.4 9,514.4 5,213.9 1,498.1
Directors’ remuneration:
- Fees and allowances 3.4 3.2 3.3 3.1
- Other emoluments 1.0 3.4 1.0 3.4
Auditors’ remuneration:
- PricewaterhouseCoopers PLT, Malaysia
- Statutory audit 3.4 3.7 1.2 1.8
- Audit related services 1.5 2.2 1.5 2.2
- Member firm of PricewaterhouseCoopers International Limited
- Statutory audit 1.9 1.1 0 0
- Others
- Statutory audit 0 1.1 0 0
- Non-audit services
- Tax related services 0.4 0.5 0 0
- Other non-audit services 1.6 0.2 0.2 0.2
Staff costs (Note 34)* 3,954.2 3,825.8 2,771.7 2,771.6
- Depreciation 7,193.4 6,997.3 4,640.8 4,758.5
- Written off 199.5 27.3 197.2 27.3
- Abandoned projects 106.7 30.8 5.5 30.8
Right-of-use assets:
- Depreciation 3,498.1 3,625.1 5,898.5 5,465.5
Impairment losses on investment in:
- Associates 291.8 51.6 0 0
Inventories:
- Provision for obsolescence 182.8 163.7 85.2 105.6
- Write back of obsolescence (85.4) (117.9) (65.4) (117.9)
- Written off 172.9 82.5 73.8 78.2
Telecommunication expenses 37.3 78.1 37.2 77.9
Expenses arising from leases:
- Low-value assets (Note 15) 40.4 25.3 39.8 24.4
Research and development expenses 68.3 88.3 67.8 81.5
Receipt of Government subsidies# (310.4) (200.6) 0 0
* This includes the remuneration of the Executive Directors amounting to RM5.0 million (2020: RM4.1 million) for the Group and the Company.
#
This represents the subsidies that SESB received for diesel and medium fuel oil from the Government. The total amount credited in the current year has been offsetted against
energy cost.
The estimated monetary value of benefits received by the Directors was RM984,022 (2020: RM3,412,000) for the Group and the Company.
All non-audit services were procured competitively in accordance with TNB Procurement Policies and Procedures. Non-audit services can be offered by the
external auditors of the Group if there are clear efficiencies and value added benefits to the Group.

Pages 182 - 348

31 December 2021
34 STAFF COST
Group Company
2021 2020 2021 2020
Wages, salaries and bonuses 2,320.4 2,212.1 1,468.6 1,446.0

Defined contribution retirement plan 403.8 403.0 303.6 311.0
Long Term Incentive Plan 295.5 225.2 209.4 146.3
Retirement Benefit Plan 114.4 136.3 87.3 116.7
Post-Retirement Medical Plan 531.3 550.4 500.3 518.0
Other employee benefits 288.8 298.8 202.5 233.6
3,954.2 3,825.8 2,771.7 2,771.6
Details of the retirement benefit and post-retirement medical plans of the Group and of the Company are set out in Note 25.
Long Term Incentive Plan (‘LTIP’)
The Group and the Company operate an equity-settled share-based compensation plan under which the entity receives services from employees as
consideration for equity instruments of the Group.
The fair value of the employee services received in exchange for the grant of the Company’s shares is recognised as an expense in the statement of profit
or loss over the vesting period of the grant, with a corresponding increase in share-based payment reserve in equity.
The total amount to be expensed over the vesting period is determined by reference to the fair value of the shares granted.
Non-market vesting conditions are included in the assumptions to arrive at the number of shares that are expected to vest. At the end of the reporting
period, the Company revises its estimates of the number of shares that are expected to be vested. The impact of the revision of original estimates, if any,
is recognised in the statement of profit or loss, with a corresponding adjustment to share-based payment reserve in equity.
The fair value of shares granted to employees of subsidiaries is allocated to the subsidiaries.
The Company implemented a LTIP on 30 April 2015 for a period of 10 years. The LTIP is governed by the by-laws, which was approved by the shareholders
at an Extraordinary General Meeting on 18 December 2014. LTIP is intended to allow the Company to award the grant of new shares to be vested to
selected employees for the attainment of identified performance objectives.


31 December 2021
34 STAFF COST (CONTINUED)
Long Term Incentive Plan (‘LTIP’) (continued)
(a) The main features of the LTIP
The LTIP comprises a Restricted Share Grant (‘RS Grant’) and a Performance Share Grant (‘PS Grant’). The main difference in the features of the RS
Grant and the PS Grant is the eligibility of the selected employees in terms of their job grades in the Group and the performance targets and/or
performance conditions to be met prior to the offer and vesting of the grant to the selected employees.
The details of the grant are as follows:

(i) RS Grant
The RS Grant is a restricted share grant for all eligible employees selected on a basis designated by the LTIP Committee. The RS Grant will
be awarded annually to the selected employees to be vested over a period of 3 years on a pro-rata basis and after fulfilment of individual
performance targets based on the Group’s performance management system (such as individual performance rating) and certain performance
conditions (such as financial targets) as determined by the LTIP Committee from time to time at its discretion in accordance with the terms and
conditions of the LTIP.
(ii) PS Grant
The PS Grant is a performance share grant for senior executives of the Group and the Executive Director as well as key employees of the Group
selected on a basis designated by the LTIP Committee. The PS Grant will be awarded annually to the selected employees to be vested at the
end of the 3-year period and after fulfilment of certain performance targets and/or conditions at the time of grant and vesting, which may
include, among other factors, total shareholders’ return and the long term financial performance targets/ratios of the Group as determined by
the LTIP Committee from time to time at its discretion in accordance with the terms and conditions of the LTIP. At the point of vesting, the final
award of the PS Grant is based on a multiple of the initial grant whereby the multiple is determined according to the performance targets and/
or conditions. In the event the performance targets and/or conditions are not met by the selected employees, the grant will not be vested to
them at the end of the performance period.
The new ordinary shares to be allotted and issued upon the vesting of the ordinary shares pursuant to the RS Grant and PS Grant will not be
subjected to any retention period or restriction on transfer.
In implementing the LTIP, the grant will be satisfied by way of allotment and issuance of new ordinary shares to the respective RS and PS
grantees upon vesting of the grant.
The LTIP Committee shall decide from time to time at its discretion to determine or vary the terms and conditions of the offer, such as
the eligibility criteria and allocation in each grant, the timing and frequency of the award of the grant, the performance targets and/or
performance conditions to be met prior to the offer and vesting of the grant and the vesting period.

Pages 182 - 348

31 December 2021
(b) Maximum number of new ordinary shares available under the LTIP
The maximum number of new ordinary shares which may be made available under the LTIP and/or allotted and issued upon vesting of the new
ordinary shares under the LTIP shall not be more than 10.0% of the issued and paid-up ordinary share capital of the Company (excluding treasury
shares) at any point in time during the duration of the LTIP.
(c) Basis of allocation and maximum allowable allotment
The total number of new ordinary shares that may be offered to any one of the selected employees and/or to be vested in any one of the grantees
under the LTIP at any time shall be at the discretion of the LTIP Committee (subject to the by-laws and any applicable law).
(d) Eligibility
Employees of the Group and of the Company (including the Executive Director) who meet the following criteria as at the date of offer shall be
eligible to be considered as an eligible employee to participate in the LTIP:
(i) Has attained the age of 18 years;
(ii) Has entered into a full-time or fixed-term contract of employment with, and is on the payroll of any company within the Group and has not
served a notice of resignation or received a notice of termination;
(iii) Whose service/employment has been confirmed in writing;
(iv) Is not a non-executive or independent director of the Company; and
(v) Has fulfilled any other eligibility criteria which has been determined by the LTIP Committee at its discretion from time to time, as the case may be.
The LTIP Committee may determine any other eligibility criteria for the purpose of selecting an eligible employee at any time and from time to time,
at its discretion.
(e) Ranking of the new ordinary shares
The new ordinary shares to be allotted and issued pursuant to the LTIP shall, upon allotment and issuance, rank equally in all respects with the then
existing issued ordinary shares.
The new ordinary shares to be allotted and issued pursuant to the vesting of the grant under the LTIP shall not be entitled to any dividends, rights,
allotments and/or any other distributions, for which the entitlement date is prior to the date on which the new ordinary shares are credited into the
Central Depository System (‘CDS’) accounts of the respective grantees upon vesting of the grant under the LTIP.
(f ) Alteration of share capital and adjustment
If the LTIP Committee so decides (but not otherwise), in the event of any alteration in the capital structure of the Company during the duration of
LTIP, which expires on 29 April 2025, such corresponding alterations (if any) may be made to the LTIP in:
(i) The number of unvested new ordinary shares comprised in a grant; and/or
(ii) The method and/or manner in the vesting of the new ordinary shares comprised in a grant.


31 December 2021
The movement in the total number of share grants during the financial year is as follows:
At At
1.1.2021 Granted Forfeited Vested 31.12.2021
‘000 ‘000 ‘000 ‘000 ‘000
2021
Group
LTIP 4
RS Grant 4,269.4 0 (411.1) (3,858.3) 0
PS Grant 1,384.0 0 (1,384.0) 0 0
LTIP 5
RS Grant 14,773.2 0 (981.1) (7,542.3) 6,249.8
PS Grant 2,259.0 0 (375.9) 0 1,883.1
LTIP 5 Special Grant

RS Grant 24.4 0 0 (12.2) 12.2
PS Grant 83.4 0 0 0 83.4
LTIP 6
RS Grant 29,192.0 0 (1,640.8) (10,024.7) 17,526.5
PS Grant 3,130.4 0 (502.8) 0 2,627.6
LTIP 7
RS Grant 0 37,633.7 (1,145.4) 0 36,488.3
PS Grant 0 3,734.4 (272.6) 0 3,461.8
Company
LTIP 4
RS Grant 2,659.3 0 (145.9) (2,513.4) 0
PS Grant 944.9 0 (944.9) 0 0
LTIP 5
RS Grant 9,992.4 0 (492.7) (5,329.4) 4,170.3
PS Grant 1,607.4 0 (259.2) 0 1,348.2

RS Grant 24.4 0 0 (12.2) 12.2
PS Grant 83.4 0 0 0 83.4
LTIP 6
RS Grant 19,895.3 0 (845.6) (7,078.7) 11,971.0
PS Grant 2,321.4 0 (350.3) 0 1,971.1
LTIP 7
RS Grant 0 25,930.5 (771.4) 0 25,159.1
PS Grant 0 2,737.7 (207.3) 0 2,530.4

Pages 182 - 348

31 December 2021
The movement in the total number of share grants during the financial year is as follows: (continued)
At At
1.1.2020 Granted Transferred* Forfeited Vested 31.12.2020
‘000 ‘000 ‘000 ‘000 ‘000 ‘000
2020
Group
LTIP 3
RS Grant 5,092.4 0 0 (666.3) (4,426.1) 0
PS Grant 1,576.9 0 0 (1,576.9) 0 0
LTIP 4
RS Grant 10,282.4 0 0 (972.6) (5,040.4) 4,269.4
PS Grant 1,634.8 0 0 (250.8) 0 1,384.0
LTIP 5
RS Grant 24,783.1 0 0 (1,723.5) (8,286.4) 14,773.2
PS Grant 2,575.3 0 0 (316.3) 0 2,259.0

RS Grant 0 36.6 0 0 (12.2) 24.4
PS Grant 0 83.4 0 0 0 83.4
LTIP 6
RS Grant 0 29,755.5 0 (563.5) 0 29,192.0
PS Grant 0 3,262.2 0 (131.8) 0 3,130.4
Company
LTIP 3
RS Grant 3,740.0 0 0 (360.3) (3,379.7) 0
PS Grant 1,387.4 0 0 (1,387.4) 0 0
LTIP 4
RS Grant 7,704.9 0 (557.8) (537.9) (3,949.9) 2,659.3
PS Grant 1,450.1 0 (321.9) (183.3) 0 944.9
LTIP 5
RS Grant 19,198.4 0 (1,465.7) (1,133.4) (6,606.9) 9,992.4
PS Grant 2,298.8 0 (433.9) (257.5) 0 1,607.4

RS Grant 0 36.6 0 0 (12.2) 24.4
PS Grant 0 83.4 0 0 0 83.4
LTIP 6
RS Grant 0 23,662.1 (3,357.4) (409.4) 0 19,895.3
PS Grant 0 2,983.4 (548.5) (113.5) 0 2,321.4
* It relates to transfer of shares from the Company to TPGSB.


31 December 2021
The fair value of the share granted is estimated using the Monte Carlo Simulation Model with the following inputs:
Group and Company
LTIP 3 LTIP 4 LTIP 5
RS Grant PS Grant RS Grant PS Grant RS Grant PS Grant
Fair value at grant date RM12.33 - RM11.67^ RM13.96 - RM12.60^ RM11.24 - RM10.20^
RM13.21 RM15.21 RM12.18
Share price at grant date RM13.74 RM13.74 RM15.92 RM15.92 RM12.28 RM12.28
Expected volatility* 16.5% 16.5% 13.3% 13.3% 14.3% 14.3%
Expected dividend yield 3.6% 3.6% 4.4% 4.4% 4.1% 4.1%
Risk-free interest rate** 3.5% 3.6% 3.4% 3.5% 3.4% 3.4%
Grant date 28 March 2017 28 March 2017 18 April 2018 18 April 2018 30 April 2019 30 April 2019
Vesting date 30 April 2020 30 April 2021 30 April 2022
- Tranche 1 30 April 2018 N/A 30 April 2019 N/A 5 June 2020 N/A
- Tranche 2 30 April 2019 N/A 5 June 2020 N/A 27 May 2021 N/A
- Tranche 3 5 June 2020 N/A 27 May 2021 N/A 30 April 2022 N/A
Group and Company

LTIP 5 (Special Grant) LTIP 6 LTIP 7
RS Grant PS Grant RS Grant PS Grant RS Grant PS Grant
Fair value at grant date RM10.00 - RM9.49^ RM10.08 - RM9.08^ RM8.78 - RM7.90^
RM11.62 RM10.99 RM9.60
Share price at grant date RM11.64 RM11.64 RM11.34 RM11.34 RM9.93 RM9.93
Expected volatility* 19.3% 19.3% 19.5% 19.5% 22.5% 22.5%
Expected dividend yield 8.6% 8.6% 4.5% 4.5% 4.0% 4.0%
Risk-free interest rate** 2.2% 2.4% 1.7% 2.1% 2.1% 2.6%
Grant date 6 July 2020 6 July 2020 27 July 2020 27 July 2020 25 May 2021 25 May 2021
Vesting date 30 April 2022 28 April 2023 25 June 2024
- Tranche 1 13 July 2020 N/A 27 May 2021 N/A 30 April 2022 N/A
- Tranche 2 27 May 2021 N/A 28 April 2022 N/A 28 April 2023 N/A
- Tranche 3 30 April 2022 N/A 28 April 2023 N/A 30 April 2024 N/A
^
Market considerations have been included in the consideration of fair value.
* Expected volatility is based on TNB’s 3-year average daily historical volatility.
** Risk-free interest is based on Malaysian Government Securities yield.

Pages 182 - 348

31 December 2021
35 OTHER OPERATING INCOME
Accounting Policy
Other operating income are the non-core revenue received for sales of goods and services rendered by the Group and the Company. Leasing income
is accrued, unless collectability is in doubt. Dividend income is recognised when the shareholders’ rights to receive payment is established. Interest on
late payments is the 1.0% late payment interest charge imposed if payment of electricity bill is made later than 30 days after the bill date in accordance
with the Licensee Supply Regulations 1990. Accounting policy on gain on disposals of PPE are disclosed in Note 5. All others are recognised upon
completion of the rendering of services or sales of goods not in the ordinary course of the Group’s and of the Company’s business.
Group Company
2021 2020 2021 2020
Dividend income from:

- Quoted shares 1.8 3.1 1.7 3.1
- Unquoted shares 0.6 0 0.6 0
- Associates 0 0 46.1 57.6
Leasing income 42.7 44.0 56.4 67.7
Release of Government development grants (Note 28) 62.8 66.8 0 0
(Loss)/Gain on disposals of PPE (2.4) 8.2 (2.4) 6.5
Gain on disposals of ROU 4.1 0.1 4.1 0.1
Interest on late payments 230.0 263.2 207.8 207.6
Minimum charges 51.5 47.5 51.5 47.5
Gain on redemption of Redeemable Preference Shares in subsidiaries 0 0 0 110.8
Sundry receipts 70.2 100.2 135.5 185.3
Project management and consultancy 0 0 0 0
Theft of electricity 113.0 47.5 107.6 43.6
Liquidated damages 57.1 56.3 23.5 56.3
Remeasurement gain on previously held interest in an associate (Note 9 (c)) 0 231.3 0 0
Gain/(Loss) on disposals of subsidiaries 25.1 0 (29.3) 0
Insurance recoveries 72.6 42.4 0 0
Other income 189.0 150.8 158.4 99.1
918.1 1,061.4 763.9 1,000.1
Other income comprises primarily income from sales of scrap and rechargeable works.


31 December 2021
36 FOREIGN EXCHANGE GAIN/(LOSS)
Accounting Policy
(a) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment
in which the entity operates (the ‘functional currency’). The financial statements are presented in Ringgit Malaysia (‘RM’), which is the Company’s
functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions
or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of
profit or loss. However, exchange differences are deferred in OCI when they are attributable to items that form part of the net investment in a
foreign operation.
(c) Group companies
The results and financial positions of the Group’s entities (none of which has the currency of a hyperinflationary economy) that have functional
currencies which are different from the presentation currency are translated into the presentation currency as follows:
(i) Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of
financial position;
(ii) Income and expenses for each statement of profit or loss and OCI are translated at average exchange rates (unless this average is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses
are translated at the rate on the dates of the transactions); and
(iii) All resulting exchange differences are recognised as a separate component of equity.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation
and translated at the closing rate. Exchange differences arising on these items are recognised in OCI.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations are taken to shareholders’ equity.
On the disposal of a foreign operation (that is, a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of
control over a subsidiary that includes a foreign operation, a disposal involving loss of joint control over a joint venture that includes a foreign
operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), the cumulative amount
of the exchange differences relating to that foreign operation recognised in OCI, and accumulated in the separate component of equity, are
reclassified from equity to profit or loss, as part of the gain or loss on disposal.
In the case of a partial disposal that does not result in the Group losing control over a subsidiary that includes a foreign operation, the
proportionate share of accumulated exchange differences recognised in OCI are re-attributed to NCI in that foreign operation, and are not
recognised in profit or loss. For all other partial disposals (that is, reductions in the Group’s ownership interest in associates or joint ventures
that do not result in the Group losing significant influence or joint control) the proportionate share of the accumulated exchange difference is
reclassified to profit or loss.
Group Company
2021 2020 2021 2020
Foreign exchange gain/(loss) comprises:

Translation (loss)/gain – foreign term loans (127.5) 82.1 (127.5) 82.1
Translation gain/(loss) – others 60.1 (10.5) 108.9 (9.4)
Total foreign exchange translation (loss)/gain (67.4) 71.6 (18.6) 72.7
Transaction loss – foreign term loans (14.9) (20.6) (14.9) (20.6)
Transaction loss – others (86.2) (24.8) (13.4) (17.2)
(168.5) 26.2 (46.9) 34.9

Pages 182 - 348

31 December 2021
37 FINANCE INCOME/COST AND FAIR VALUE CHANGES OF FINANCIAL INSTRUMENTS
Accounting Policy
Finance income are interests received from investments or financial instruments.
Investment income earned on the temporary investment of specific borrowing pending their expenditure on qualifying assets is deducted from the
borrowing costs eligible for capitalisation.
Finance income is calculated by applying the effective interest method to the gross carrying amount of a financial asset except for financial assets
that subsequently become credit impaired. For credit impaired financial assets the effective interest rate is applied to the net carrying amount of the
financial assets (after deduction of the loss allowances). The accounting policy on fair value changes are as per disclosed in Note 45.
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised
during the period of time that is required to complete and prepare the asset for its intended use. Qualifying assets are assets that necessarily takes
substantial period of time to get ready for their intended use. Other borrowing costs are expensed in the period in which they are incurred.
Accounting policy on finance charges for lease liabilities and government grants are disclosed in Note 15 and Note 28, respectively.
Group Company
2021 2020 2021 2020
(a) Finance income:

Interest from subsidiaries 0 0 269.3 40.3
Interest from deposits, staff loans and associates 224.2 320.7 124.8 183.1
Less: Reduction of borrowing costs capitalised into PPE (2.4) (3.0) 0 0
221.8 317.7 394.1 223.4
(b) Finance cost:

Finance cost on:
- Borrowings 2,452.7 2,393.4 1,005.0 981.1
- Lease liabilities (Note 15) 1,460.1 1,587.9 4,047.8 3,864.9
- Consumer deposits 170.3 158.7 161.8 151.9
- Others 12.4 19.5 14.8 0.1
Release of government grants (Note 28) (25.4) (21.5) 0 0
Less: Amount capitalised into PPE (276.8) (469.3) (249.4) (259.6)
3,793.3 3,668.7 4,980.0 4,738.4
(c) Fair value changes of financial instruments:

Gain/(Loss) on changes in fair value of financial assets 191.3 206.0 (3.5) 189.4
Gain/(Loss) on changes in fair value of financial liabilities 10.5 (81.1) 1.0 (1.1)
201.8 124.9 (2.5) 188.3


31 December 2021
38 TAXATION AND ZAKAT
Accounting Policy
(a) Income tax
Current tax expense is determined by the expected income taxes payable in respect of the taxable profit for the financial year and is measured
using the applicable tax rates according to the tax laws enacted or substantively enacted at the end of the reporting period in the countries in
which the Company and its subsidiaries operate and generate the taxable profits.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to
interpretation. Provisions are established where appropriate on the basis of amounts expected to be paid to the tax authorities.
Tax is recognised in the profit or loss except to the extent that it relates to items recognised directly in OCI. In this case, the item is recognised
in OCI, net of tax.
The Group and the Company recognise non-current tax recoverable on an undiscounted basis.
(b) Zakat
The Group and the Company recognise its obligation towards the payment of zakat on business income in the statement of profit or loss. Zakat
payment is an obligation and is accrued based on 2.5% of profit before tax and determined according to the percentage of Muslim shareholding
in the Company.
The taxation and zakat for the Group and the Company comprise:
Group Company
2021 2020 2021 2020
Current tax:
- Malaysian corporate income tax 1,011.2 498.8 433.3 310.3
Deferred tax (Note 12) (162.5) 97.4 (102.4) 62.1
Tax expense 848.7 596.2 330.9 372.4
Zakat 24.9 22.8 17.8 22.8
873.6 619.0 348.7 395.2
The analysis of the tax expense is as follows:

Current tax:
- Current financial year 1,040.8 475.1 502.8 297.9
- (Over)/Under accrual in prior financial years (29.6) 23.7 (69.5) 12.4
1,011.2 498.8 433.3 310.3
Deferred tax:
- Origination and reversal of temporary differences (Note 12) (162.5) 97.4 (102.4) 62.1
848.7 596.2 330.9 372.4

Pages 182 - 348

31 December 2021
38 TAXATION AND ZAKAT (CONTINUED)
The explanation of the relationship between tax expense and profit before taxation and zakat is as follows:
Group Company
2021 2020 2021 2020
Tax calculated at the Malaysian corporate income tax rate of 24%

(2020: 24%) 1,137.2 1,016.5 560.2 736.9
Tax effects of:
- Share of results of associates and joint ventures (46.4) (18.3) 0 0
- Income not subject to tax (297.8) (308.7) (136.8) (228.6)
- Expenses not deductible for tax purposes 1,047.9 560.1 536.5 402.1
- Expenses qualifying for double deduction (14.3) (19.6) (9.3) (16.0)
- Current financial year unrecognised temporary differences and
unused tax losses 0 0 0 0
- Foreign jurisdictions 0 11.9 0 0
(Over)/Under accrual of tax in prior financial years (29.6) 23.7 (69.5) 12.4
Recognition and utilisation of previously unrecognised temporary
differences (377.9) (152.5) 20.2 (17.5)
Zakat 24.9 22.8 17.8 22.8
Real Property Gains Tax 0.2 0 0.2 0
Utilisation of reinvestment allowance* (570.6) (516.9) (570.6) (516.9)
Tax and zakat charge 873.6 619.0 348.7 395.2
Average effective tax rate (%) 18.4 14.6 14.9 12.9
* The reinvestment allowance incentive was enacted by the Government through the Finance Act 2020.
The tax charge relating to components of OCI is as follows:

2021 2020
Before tax Tax charged After tax Before tax Tax charged After tax
Group
Defined benefit plan actuarial
gain/(loss) (Note 25) 1,282.4 (293.3) 989.1 (529.3) 127.3 (402.0)
Foreign currency translation differences 384.9 0 384.9 (34.3) 0 (34.3)
Financial assets at FVOCI 5.2 0 5.2 (1.3) 0 (1.3)
Share of OCI of associates accounted for
using the equity method 17.5 0 17.5 (38.7) 0 (38.7)
1,690.0 (293.3) 1,396.7 (603.6) 127.3 (476.3)
Company
Defined benefit plan actuarial
gain/(loss) (Note 25) 1,222.0 (293.3) 928.7 (530.4) 127.3 (403.1)
Financial assets at FVOCI 5.2 0 5.2 (1.3) 0 (1.3)
1,227.2 (293.3) 933.9 (531.7) 127.3 (404.4)


31 December 2021
39 EARNINGS PER SHARE (‘EPS’)
(a) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company for the financial year by the weighted average
number of ordinary shares issued during the financial year.
Group
2021 2020
Profit attributable to owners of the Company (RM’million) 3,661.8 3,592.7

Weighted average number of ordinary shares in issue (’000) 5,717,516 5,697,069
Basic earnings per share (sen) 64.05 63.06
(b) Diluted earnings per share
For the purpose of calculating diluted earnings per share, the profit attributable to owners of the Company for the financial year and the weighted
average number of ordinary shares issued during the financial year has been adjusted for the dilutive effects of all potential ordinary shares such as
the LTIP granted to employees.
Group
2021 2020
Profit attributable to owners of the Company (RM’million) 3,661.8 3,592.7
Weighted average number of ordinary shares in issue (‘000) 5,717,516 5,697,069

Adjustment for LTIP (‘000) 28,592 24,443
Weighted average number of ordinary shares for diluted earnings per share (‘000) 5,746,108 5,721,512
Diluted earnings per share (sen) 63.73 62.79
40 DIVIDENDS
Group and Company

2021 2020
Interim single tier dividend for the financial year 2021 of 22.0 sen per share on 5,726,091,371 ordinary shares
(2020: interim single tier dividend of 22.0 sen per share on 5,704,653,871 ordinary shares) 1,259.7 1,255.0
Approved final single tier dividend for the financial year 2021 of 18.0 sen per share on 5,726,091,371 ordinary
shares (2020: final single tier dividend of 18.0 sen per share and a special single tier dividend of
40.0 sen per share on 5,704,653,871 ordinary shares) 1,030.7 3,308.7
2,290.4 4,563.7
Interim dividends are paid and accounted for in shareholders’ equity as an appropriation of retained profits in the financial year.
The Directors have approved a final single tier dividend of 18.0 sen per share on 5,726,091,371 ordinary shares in respect of the financial year ended
31 December 2021 amounting to a total of RM1,030.7 million. The dividends will be paid on 15 April 2022.

Pages 182 - 348

31 December 2021
41 COMMITMENTS
(a) Capital commitments for 5 years
Group Company
2021 2020 2021 2020
Authorised capital expenditure not provided in the financial statements:

Property, plant and equipment
- Contracted 642.8 988.5 258.4 637.1
- Not contracted 53,628.5 55,365.5 40,618.2 44,093.3
54,271.3 56,354.0 40,876.6 44,730.4
(b) Operating lease commitments - as lessor
The Group and the Company lease out its plants and equipment under non-cancellable operating leases. The lessees are required to pay absolute
fixed lease payments during the lease period. Total future minimum lease receivables under non-cancellable operating leases contracted for at the
reporting date but not recognised as receivables, are as follows:
Group Company
2021 2020 2021 2020
Receivable not later than 1 year 23.5 23.5 61.2 61.5

Receivable later than 1 year and not later than 2 years 0.9 0.9 33.9 34.5
Receivable later than 2 years and not later than 3 years 0.7 0.9 21.1 34.3
Receivable more than 5 years 0.3 0.7 112.6 122.8
26.0 27.0 271.0 296.0
42 CONTINGENT LIABILITIES
Accounting Policy
The Group and the Company do not recognise contingent assets and liabilities other than those arising from business combinations, but disclose its
existence in the financial statements. A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group and of the Company or a present obligation
that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises
in the extremely rare case where there is a liability that cannot be recognised because it cannot be measured reliably. However, contingent liabilities
do not include financial guarantee contracts. A contingent asset is a possible asset that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group and of the Company. The Group and the
Company do not recognise contingent assets but disclose its existence where inflows of economic benefits are probable, but not certain.
Determination of the treatment of contingent liabilities is based on the Group’s and the Company’s view of the expected outcome of the contingencies
after consulting legal counsel for litigation cases and internal and external experts to the Group and the Company for matters in the ordinary course
of business.


31 December 2021
42 CONTINGENT LIABILITIES (CONTINUED)
Group Company
2021 2020 2021 2020
Claims by third parties:

- Contractors 138.1 87.0 138.1 87.0
- Customers 13.9 15.7 13.9 15.7
- Others 271.8 145.0 107.3 116.3
423.8 247.7 259.3 219.0
Trade guarantees and performance bonds 54.4 26.2 0 0
478.2 273.9 259.3 219.0
All third party claims are being resolved and the Directors are of the opinion that their outcomes will not have a material adverse effect on the financial
positions of both the Group and the Company.
On 7 December 2016, the Company and the IRB entered into a consent judgement before the Kuala Lumpur High Court to substitute the judicial
review proceedings with regard to the notices of additional assessment dated 23 November 2015 (‘Notices’) for the YAs 2013 and 2014 arising from the
disallowance of the Company’s reinvestment allowance claims by filing an appeal to the SCIT.
The consent judgement also provides that the IRB will not commence any proceedings relating to the Notices until this matter is determined by the SCIT
and by the High Court, if there is a subsequent appeal by either party. On 15 December 2016, the Company filed notices of appeal against the Notices
to the SCIT according to Section 99(1) of the Income Tax Act 1967. The appeals have since been registered before the SCIT. Meanwhile, for the notices of
additional assessment issued for the YAs 2015, 2016 and 2017, on 30 December 2020, both TNB and IRB have recorded a consent order. Pursuant to the
consent order, the Court has granted a stay of proceedings against the enforcement of the IRB’s notices of additional assessment and leave to commence
judicial review. The substantive hearing which was initially fixed on 16 March 2022 has been vacated by the High Court. The High Court proceeded to
reschedule the hearing to 21 June 2022.
With regards to the notice of additional assessment for the YA 2018, on 21 January 2021, both TNB and IRB have recorded a consent order. Pursuant to the
consent order, the High Court has granted a stay of proceedings against the enforcement of the IRB’s notice of additional assessment. Subsequently on 13
January 2022, the High Court heard TNB’s judicial review application and on 8 February 2022, the High Court had allowed with cost the Company’s judicial
review application to set aside the IRB’s notice of additional assessment dated 13 July 2020 for the YA 2018. The High Court agreed with the submission of
TNB’s legal counsel that TNB is in the business of manufacturing electricity and as such, TNB is entitled to claim RIA on the capital expenditure which was
incurred in YA 2018 in the course of expanding, modernising and automating TNB’s business. Separately on 8 February 2022, the IRB had filed a notice of
appeal before the Court of Appeal against the decision of the High Court. The Court of Appeal had fixed a case management on 28 March 2022.
The Company has obtained legal advice from its tax solicitors on the merits of the cases mentioned above and on this basis the Directors are of the opinion
that no provision is required in the financial statements for the potential tax liability up to the reporting date.
On 29 October 2021, IRB had disallowed the interest expenses incurred by KEV’s in relation to the Redeemable Unsecured Loan Stock granted to KEV by
TNB and Malakoff Corporation Berhad under Section 33(1)(a) of the Income Tax Act 1967 and KEV’s revision of revenue for the YAs 2004 to 2009 and had
issued notices of assessment YAs 2011, 2012 and 2014 and notices of additional assessment for the YAs 2013, 2015, 2016, 2017 and 2018 amounting in
aggregate to RM595.9 million.
On 16 November 2021, KEV had commenced a judicial review against the Minister of Finance at the High Court to challenge the matters arising from
the said Notices. The High Court fixed the hearing of the application for leave for judicial review on 10 February 2022. Due to the request of the Attorney
General Chamber to vacate the hearing for leave for Judicial Review on 10 February 2022, the High Court proceeded to fix the hearing for leave for Judicial
Review on 27 June 2022. The High Court has granted an extension of the interim stay on the enforcement of the Notices until 27 June 2022.
Based on the legal advice obtained from its tax solicitors, KEV is of the view that it has a good basis in law to contend that the said Notices were incorrectly
raised by the IRB and on this basis the Directors are of the opinion that no provision is required in the financial statements for the potential tax liability up
to the reporting date.
Notwithstanding the two tax litigation matters above, the Company continued to claim the tax incentive for YAs 2020 and 2021 whilst KEV continued to
claim tax deductions for YAs 2019, 2020 and 2021 as permitted by the law.

Pages 182 - 348

31 December 2021
43 SIGNIFICANT RELATED PARTY DISCLOSURES
For the purposes of these financial statements, parties are considered to be related to the Group or the Company if the Group or the Company has the
ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa,
or where the Group or the Company and the party are subject to common control or common significant influence.
The related parties of the Group and of the Company are:

(a) Subsidiary companies
Details of the subsidiary companies are shown in Note 7.
(b) Associate companies
Associate companies are those entities in which the Group has significant influence but not control as disclosed in Note 9.
(c) Key Management Personnel (‘KMP’)
KMP are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group and of the
Company either directly or indirectly. The KMP of the Group or of the Company includes Executive Directors and Non-Executive Directors of the
Company and certain members of senior management of the Company.
Whenever exist, related party transactions also include transactions with entities that are controlled, jointly controlled or significantly influenced
directly or indirectly by any KMP or their close family members.
(d) Government-related entities
Government-linked corporations are related to the Group and the Company by virtue of the substantial shareholdings of Khazanah Nasional Berhad
(‘KNB’), with 25.4% (2020: 25.7%) equity interest. KNB is a wholly-owned entity of MoF Incorporated which is in turn owned by the Ministry of
Finance. KNB and entities directly controlled by the Government are collectively referred to as government-related entities to the Group and the
Company.
The Government and bodies controlled or jointly controlled by the Government of Malaysia are related parties of the Group and of the Company.
The Group and the Company enter into transactions with many of these bodies, which include but are not limited to purchasing of goods, including
use of public utilities and amenities, and the placing of bank deposits.
All the transactions entered into by the Group and the Company with the government-related entities are conducted in the ordinary course of the
Group’s and of the Company’s businesses on negotiated terms or terms comparable to those with other entities that are not government-related,
except otherwise disclosed elsewhere in the financial statements.
The Group and the Company are principally involved in the provision of electricity as part of their ordinary operations. These services are carried out
generally on commercial terms that are consistently applied to all customers. These transactions have been established on terms and conditions
that are not materially different from those obtainable in transactions with unrelated parties.
Apart from the individually significant transactions and balances as disclosed elsewhere in the financial statements, the Group and the Company
have collectively, but not individually significant transactions with related parties.


31 December 2021
43 SIGNIFICANT RELATED PARTY DISCLOSURES (CONTINUED)
In addition to the transactions detailed elsewhere in the financial statements, the Group and the Company had the following significant transactions
with the following related parties based on agreed terms during the financial year:
Associate companies KMP
2021 2020 2021 2020
Group
Income:
- Sales of electricity 1.2 1.3 0 0
- Interest income 35.2 9.9 0 0
- Dividend income 66.5 63.7 0 0
- Leasing income 25.6 24.0 0 0
Expenses:
- Purchase of electricity 3,379.4 2,956.6 0 0
- Finance cost on lease liabilities 310.5 364.0 0 0
- Key management compensations:
- Salaries, allowances and bonuses 0 0 22.6 27.9
- Benefits-in-kind 0 0 0.9 3.4
- Defined contribution retirement plan 0 0 2.9 3.6
- Other staff benefits 0 0 0.2 0.4
- LTIP expense 0 0 4.9 8.5
- Leasing expense 0.2 18.9 0 0
Amounts due from 342.7 183.5

Amounts due to (183.8) (237.8)
Investment in unquoted debt security 250.1 215.8

Pages 182 - 348

31 December 2021
43 SIGNIFICANT RELATED PARTY DISCLOSURES (CONTINUED)
In addition to the transactions detailed elsewhere in the financial statements, the Group and the Company had the following significant transactions with
the following related parties based on agreed terms during the financial year: (continued)
Subsidiary companies Associate companies KMP
2021 2020 2021 2020 2021 2020
Company
Income:
- Sales of electricity 30.1 33.4 1.2 1.3 0 0
- Interest income 269.3 33.5 35.2 9.9 0 0
- Dividend income 2.4 114.9 46.1 57.6 0 0
- Leasing income 19.1 36.3 25.6 24.0 0 0
- Redemption of RPS 0 110.8 0 0 0 0
Expenses:
- Purchase of electricity 14,888.4 11,759.1 3,379.4 2,956.6 0 0
- Training fees 2.3 4.2 0 0 0 0
- Finance cost on lease liabilities 2,863.2 2,546.8 310.5 364.0 0 0
- Key management compensations:
- Salaries, allowances and bonuses 0 0 0 0 22.5 27.9
- Benefits-in-kind 0 0 0 0 0.9 3.4
- Defined contribution retirement plan 0 0 0 0 2.9 3.6
- Other staff benefits 0 0 0 0 0.2 0.4
- LTIP expenses 0 0 0 0 4.9 8.5
- Leasing expenses 0 0 0.2 18.9 0 0
Amounts due from 8,001.0 13,771.7 10.5 3.4

Amounts due to (4,136.3) (1,411.9) (173.7) (228.1)
Investment in unquoted debt security 0 0 250.1 215.8
44 SEGMENTAL REPORTING
Segmental reporting is not presented as the Group is principally engaged in the generation, transmission, distribution and sales of electricity and the
provision of other related services, which are substantially within a single business segment and this is consistent with the current practice of internal
reporting. The Group operates primarily in Malaysia.


31 December 2021
45 FINANCIAL INSTRUMENTS
Accounting Policy
Financial instruments comprise financial assets and financial liabilities. The financial assets and liabilities are offset and presented as net amounts in
the statement of financial position. Financial guarantees are part of the financial liabilities and recognised at fair value.
Financial assets
(a) Classification
The Group and the Company classify its financial assets in the following categories: at amortised cost (‘AC’), at FVOCI or FVTPL. The classification
depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.
(i) Financial assets at AC:

• The asset is held within a business model whose objective is to collect the contractual cash flows; and
• The contractual terms give rise to cash flows that are solely payments of principal and interest.
(ii) Financial assets at FVOCI:

• Equity securities which are not held for trading, and which the Group and the Company have irrevocably elected at initial recognition
to recognise in this category. These are strategic investments and the Group and the Company consider this classification to be
more relevant; and
• Debt securities where the contractual cash flows are solely principal and interest and the objective of the Group’s and of the
Company’s business model is achieved both by collecting cash flows and selling financial assets.
(iii) Financial assets at FVTPL:

• Debt instruments that do not qualify for measurement at either AC or FVOCI;
• Equity instruments that are held for trading; and
• Equity instruments for which the Group and the Company have not elected to recognise fair value gains and losses through OCI.
The Group and the Company reclassify debt instruments when and only when its business model for managing those assets changes.
(b) Recognition and derecognition
Regular purchases and sales of financial assets are recognised on the trade-date, the date on which the Group and the Company commit to
purchase or sell the assets. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have
been transferred and the Group and the Company have transferred substantially all the risks and rewards of ownership.
(c) Measurement
(i) Initial recognition
At initial recognition, the Group and the Company measure a financial asset at its fair value plus, in the case of a financial asset not at
FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried
at FVTPL are expensed in the statement of profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment
of principal and interest.

Pages 182 - 348

31 December 2021
45 FINANCIAL INSTRUMENTS (CONTINUED)
Financial assets (continued)
(c) Measurement (continued)
(ii) Subsequent measurement
• Debt instruments
Subsequent measurement of debt instruments depends on the Group’s and the Company’s business model for managing the asset
and the cash flow characteristics of the asset. There are three measurement categories into which the Group and the Company
classify its debt instruments:
- AC: Interest income from financial assets at AC is included in finance income using the effective interest rate method. Any gain
or loss arising on derecognition is recognised directly in profit or loss. Impairment losses are presented as a separate line item
in the statement of profit or loss.
- FVOCI: Movements in the carrying amount of debt instruments classified under FVOCI are taken through OCI. Upon
derecognition of the assets, the cumulative gain or loss previously recognised in OCI is reclassified to the statement of profit or
loss. The interest income from these financial assets is included in the finance income using the effective interest rate method.
The foreign exchange gains and losses and impairment expenses are presented as a separate line item in the statement of
profit or loss.
- FVTPL: Financial assets that do not meet the criteria for AC or FVOCI are measured at FVTPL. A gain or loss on debt instruments
which are measured at FVTPL are recognised in the profit or loss.
• Equity instruments
The Group and the Company have elected to present fair value gains and losses on equity instruments in OCI. The fair value gains
and losses of these instruments will not be reclassified subsequently to the profit or loss. Dividends from such investments are
recognised in the statement of profit or loss as other income. Impairment losses (and reversal of impairment losses) on equity
instruments measured at FVOCI are also reported as other changes in fair value.
(d) Impairment
The Group and the Company assess on a forward looking basis the expected credit losses associated with its debt instruments carried at AC and
FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
The Group and the Company have the following financial instruments that are subject to the ECL model:
(i) Trade receivables
(ii) Trade contract assets
(iii) Non trade receivables:
• intercompany balances
• amounts due from associates/joint ventures
• rechargeable job orders (‘RJO’) debtors
• sundry deposits for rental spaces
• rental receivables
• staff loans/advances
• investment in unquoted debt securities
(iv) Financial guarantee contracts issued
While cash and cash equivalents are also subject to the impairment requirements of MFRS 9, the identified impairment loss was immaterial.
ECL represents a probability-weighted estimate of the difference between the present value of the cash flows according to the contract and
present value of the cash flows the Group and the Company are expected to receive, over the remaining life of the financial instruments. For
financial guarantee contracts, the ECL is the difference between the expected payments to be reimbursed to the holder of the guaranteed debt
instrument less any amounts that the Company expects to receive from the holder, the debtor or any other party.


31 December 2021
(d) Impairment (continued)
The measurement of ECL reflects:

(i) An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
(ii) The time value of money; and
(iii) Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current
conditions and forecasts of future economic conditions.
For trade receivables, trade contract assets and lease receivables, the Group and the Company apply the MFRS 9 simplified approach, which
requires expected lifetime losses to be recognised from initial recognition of the receivables, except for those which are in default or credit
impaired are assessed individually.
For non trade receivables, at each reporting date the Group and the Company measure ECL through a loss allowance at an amount equal to 12
months ECL if credit risk on a financial instrument or a group of financial instruments has not increased significantly since initial recognition.
The Group and the Company use the three-stage approach for non trade receivables which reflect their credit risks and how the loss allowances
are determined for each of those stages. Summary of the assumptions underpinning the Group’s and the Company’s ECL model for non trade
receivables are as follows:
Types of non trade Stage 1 Stage 2 Stage 3
receivables Low credit risk Significant increase in credit Credit impaired
(12 months ECL Model) risk (Lifetime ECL Model) (Lifetime ECL Model)
• Intercompany balances Positive operating cash flows/ Negative operating cash flows Dormant/History of default
Net assets (Total Assets - Total and net liabilities (Total Assets
Liabilities) /Subsidiaries with - Total Liabilities)/ without
assets under construction defaulting on loan
having guaranteed long term repayments
revenue contract and agents
• Amounts due from Positive operating cash flows/ Negative operating cash History of default and currently
associates/joint ventures/ Net assets (Total Assets - Total flows and net liabilities defaulted
investment in unquoted Liabilities) (Total Assets - Total Liabilities)/
debt securities No current default
• RJO debtors Covered by indent/ No indent/downpayment/LOU Accident cases

downpayment/Letter of
Undertaking (‘LOU’)
• Sundry deposits for rental Active contracts Inactive contracts and amounts Inactive contracts and amounts
spaces outstanding less or equal outstanding more than 12
to 12 months months
• Rental receivables Active contracts and amounts Active contracts and amounts Inactive contracts
(net deposits) outstanding less or equal to 3 outstanding more than 3
months months
• Staff loans/advances Current employees Ex-employees with no Ex-employees with default in

default in payment payment

Pages 182 - 348

31 December 2021
(d) Impairment (continued)
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL,
the Group and the Company consider reasonable and supportable information that is relevant and available without undue cost or effort.
This includes both quantitative and qualitative information and analysis, based on the Group’s and the Company’s historical experience and
informed credit assessment including forward looking information, where available.
The gross carrying amount of a financial asset is written off (either partially or fully) to the extent that there is no realistic prospect of recovery.
This is generally the case when either the Group or Company determines that the debtor does not have assets or sources of income that could
generate sufficient cash flows to repay the amounts subjected to the write off. However, financial assets that are written off could still be subject
to enforcement activities in order to comply with the Group’s and the Company’s procedures for recovery of amounts due.
Financial liabilities
The Group and the Company classify its financial liabilities in the following categories: at AC or at FVTPL.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amounts are presented in the statement of financial position (‘SOFP’) when there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability
simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and
in the event of default, insolvency or bankruptcy.
Financial guarantee contracts
Financial guarantee contracts are contracts that require the Group or the Company to make specified payments to reimburse the holder for a loss it
incurs because a specified debtor fails to make payments when due, in accordance with the terms of a debt instrument.
Financial guarantee contracts are recognised as a financial liability at the time the guarantee is issued. The liability is initially measured at fair value
and subsequently at the higher of;
(i) The amount determined in accordance with the ECL model; and
(ii) The amount initially recognised less, where appropriate, the cumulative amount of income recognised in accordance with the principles of
MFRS 15.
The fair value of financial guarantees is determined as the present value of the difference in net cash flows between the contractual payments under
the debt instrument and the payments that would be required without the guarantee, or the estimated amount that would be payable to a third party
for assuming the obligations.
Where guarantees in relation to loans or other payables of associates are provided for no compensation, the fair values are accounted for as
contributions and recognised as part of the cost of the investment.


31 December 2021
(a) Categories of financial instruments
The financial instruments are categorised as follows:

(i) Financial assets and financial liabilities at AC;
(ii) Financial assets and financial liabilities at FVTPL; and
(iii) Financial assets at FVOCI.
Carrying
amount AC FVTPL FVOCI
Financial assets
2021
Group
Investment in unquoted debt securities 300.1 300.1 0 0
Long term receivables 65.1 65.1 0 0
Finance lease receivables 10.0 10.0 0 0
Derivative financial instruments 1.2 0 1.2 0
Financial assets at FVOCI 62.8 0 0 62.8
Trade receivables 3,963.7 3,963.7 0 0
Non trade receivables 6,788.1 6,788.1 0 0
Amounts due from joint ventures 43.5 43.5 0 0
Amounts due from associates 342.7 342.7 0 0
Financial assets at FVTPL 2,522.3 0 2,522.3 0
Deposits, bank and cash balances 6,706.1 6,706.1 0 0
20,805.6 18,219.3 2,523.5 62.8
Company
Non trade receivables 5,591.5 5,591.5 0 0
Amounts due from subsidiaries 8,001.0 8,001.0 0 0
Financial assets at FVTPL 700.7 0 700.7 0
20,926.3 20,163.5 700.7 62.1

Pages 182 - 348

31 December 2021
(a) Categories of financial instruments (continued)

Carrying
amount AC FVTPL FVOCI
Financial assets
2020
Group
Finance lease receivables 11.2 11.2 0 0
Non trade receivables 908.2 908.2 0 0
18,385.5 11,213.5 7,114.4 57.6
Company
Non trade receivables 178.1 178.1 0 0
Amounts due from subsidiaries 13,771.7 13,771.7 0 0
24,601.5 19,218.0 5,326.6 56.9



31 December 2021

Carrying
amount AC FVTPL
2021
Group
Payables 7,001.5 7,001.5 0
Financial guarantee contracts 291.1 291.1 0
Lease liabilities 29,241.9 29,241.9 0
Amounts due to associates 183.8 183.8 0
Borrowings 51,678.2 51,678.2 0
Derivative financial instruments 39.1 0 39.1
Other liabilities 953.1 953.1 0
89,388.7 89,349.6 39.1
Company
Payables 3,381.4 3,381.4 0
Amounts due to subsidiaries 4,136.3 4,136.3 0
Borrowings 25,036.3 25,036.3 0
104,893.0 104,892.6 0.4

Pages 182 - 348

31 December 2021

Carrying
amount AC FVTPL
2020
Group
Payables 6,524.3 6,524.3 0
Borrowings 49,452.6 49,452.6 0
86,286.5 86,109.5 177.0
Company
Payables 3,896.3 3,896.3 0
Amounts due to subsidiaries 1,411.9 1,411.9 0
Borrowings 22,091.3 22,091.3 0
94,036.7 94,035.4 1.3
(b) Financial risk management
The Group and the Company have exposures to the following risks embedded in its financial instruments:
• Credit risk;
• Liquidity risk; and
• Market risk.
Credit risk
Credit risk is the risk of a financial loss to the Group and the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. The Group’s and the Company’s exposures to credit risk arise principally from its receivables from customers, investment in
unquoted debt securities, deposits, bank and cash balances and derivative financial instruments. In addition, the Company’s exposure to credit risk
arises principally from loans and advances to subsidiaries and financial guarantees given to banks in respect of banking facilities granted to certain
subsidiaries and an associate.


31 December 2021
(b) Financial risk management (continued)
Credit risk (continued)
Net loss on impairment of financial instruments are mainly from:

Group Company
2021 2020 2021 2020
Net (losses)/gains on:

Trade receivables
- recognised in profit or loss (961.4) (576.4) (764.5) (388.8)
- reversed 78.7 109.5 77.4 55.6
Trade contract assets

- reversed 44.3 50.5 36.7 44.0
Investment in unquoted debt securities

- reversed 112.3 0 112.3 0
Intercompany balances
- recognised in profit or loss 0 0 (343.5) (290.0)
- reversed 0 0 751.3 299.1
Other non trade receivables

- reversed 6.6 23.9 2.4 8.7
Amounts due from associates

- reversed 0.2 0 0.2 0
Amounts due from joint ventures

- recognised in profit or loss 0 (28.4) 0 0
- reversed 2.6 3.6 0 0
Financial guarantee contracts

- recognised in profit or loss (8.2) 0 (8.2) 0
- reversed 0 0 0 0.6
(940.2) (546.2) (342.1) (362.4)

Pages 182 - 348

31 December 2021
(i) Trade receivables and trade contract assets
Risk management objectives, policies and processes for managing the risk
The Group and the Company have a credit policy in place and the exposures to credit risk are monitored on an ongoing basis. Normally,
financial guarantees given by banks, shareholders or directors of customers are obtained, and credit evaluations are performed on customers
requiring credit over a certain amount.
Exposure to credit risk, credit quality and collateral
The Group’s and the Company’s credit policy provide trade receivables with a 30 to 90 days (2020: 30 to 90 days) credit period. The Group and
the Company have no major significant concentration of credit risk due to their diverse customer base. An impairment has been made for
estimated unrecoverable amounts, determined by reference to past default experience of individual debtors and collection portfolios.
The total trade receivables and trade contract assets and the impairment provided are as follows:
Group Company
2021 2020 2021 2020

Less: Loss allowances (2,853.3) (2,139.5) (2,698.1) (2,011.2)
3,963.7 3,311.2 2,872.7 2,552.3
Trade contract assets 3,388.5 3,241.6 3,046.0 3,121.2

3,318.2 3,197.8 2,982.0 3,084.5
The Group and the Company have other financial assets which are lease receivables, investment in unquoted debt securities and others.
Given the varied nature of the Group’s and of the Company’s customer base, the following analysis of trade receivables by type of customer is
considered the most appropriate disclosure of credit concentration.
Group Company
2021 2020 2021 2020
Industrial 1,438.2 1,263.3 1,430.0 1,249.9

Commercial 2,110.8 1,814.8 2,032.1 1,725.8
Domestic 2,190.6 1,655.8 2,043.4 1,517.7
Specific agriculture 13.8 13.8 13.8 13.8
Mining 3.3 3.4 3.3 3.4
Public lighting 54.8 60.9 48.2 52.9
Others 1,005.5 638.7 0 0
Trade contract assets 3,388.5 3,241.6 3,046.0 3,121.2


31 December 2021
(i) Trade receivables and trade contract assets (continued)
Impairment losses
The loss allowance for the trade receivables and the trade contract assets are as follows:
Individual Expected Collective
Gross impairment loss rate impairment Net
RM’million RM’million % RM’million RM’million
2021
Group
Not past due 1,541.1 (34.6) 0.9 (12.9) 1,493.6
Past due 0-30 days 459.0 (2.4) 5.2 (23.7) 432.9
Past due 31-120 days 950.6 (53.5) 13.4 (119.9) 777.2
Past due 121-240 days 729.6 (93.8) 38.8 (246.6) 389.2
Past due 241-365 days 461.7 (82.0) 52.8 (200.6) 179.1
Past due more than 365 days 2,675.0 (1,388.3) 46.2 (595.0) 691.7
Trade receivables 6,817.0 (1,654.6) (1,198.7) 3,963.7
Trade contract assets 3,388.5 (11.7) 1.7 (58.6) 3,318.2
Company
Not past due 1,232.4 (34.3) 0.7 (8.7) 1,189.4
Past due 0-30 days 344.4 (2.2) 6.1 (20.9) 321.3
Past due 31-120 days 774.9 (53.4) 14.1 (101.6) 619.9
Past due 121-240 days 606.9 (93.8) 43.4 (222.5) 290.6
Past due 241-365 days 382.3 (81.9) 59.8 (179.6) 120.8
Trade receivables 5,570.8 (1,648.0) (1,050.1) 2,872.7

Pages 182 - 348

31 December 2021
Impairment losses (continued)
The loss allowance for the trade receivables and the trade contract assets are as follows: (continued)
Individual Expected Collective
Gross impairment loss rate impairment Net
RM’million RM’million % RM’million RM’million
2020
Group
Not past due 1,396.2 (44.3) 0.7 (9.0) 1,342.9
Past due 0-30 days 385.9 (6.9) 0.9 (3.5) 375.5
Past due 31-120 days 888.7 (113.7) 4.4 (34.3) 740.7
Past due 121-240 days 564.9 (96.4) 9.8 (45.9) 422.6
Past due 241-365 days 355.1 (76.5) 62.8 (174.9) 103.7
Trade receivables 5,450.7 (1,437.3) (702.2) 3,311.2
Company
Not past due 1,146.4 (44.1) 0.6 (6.4) 1,095.9
Past due 0-30 days 289.6 (6.7) 1.0 (2.8) 280.1
Past due 31-120 days 743.9 (113.5) 3.0 (19.1) 611.3
Past due 121-240 days 483.5 (96.3) 8.6 (33.3) 353.9
Past due 241-365 days 303.2 (76.4) 67.4 (152.9) 73.9
Trade receivables 4,563.5 (1,430.4) (580.8) 2,552.3
The Group and the Company apply MFRS 9 simplified approach to measure expected credit losses which uses a lifetime expected loss
allowance for all trade receivables and trade contract assets.
For certain large customers with high risk of default, the Group and the Company assessed the risk of loss for each customer individually based
on their financial information, past trend of payments and external credit ratings, where applicable.

To measure the expected credit losses, trade receivables and trade contract assets have been grouped based on shared credit risk characteristics
and the days past due. The trade contract assets that relate to unbilled customers have substantial same risk characteristics as the trade
receivables for the same types of contracts. The Group and the Company have therefore concluded that the expected loss rates for trade
receivables are a reasonable approximation of the loss rates of the trade contract assets.


31 December 2021
The expected loss rates are based on the payment profiles of sales over a period of 2 to 10 years and the corresponding historical credit losses
experienced within this period. The historical loss rates are adjusted to reflect current and forward looking information on macroeconomic
factors affecting the ability of the customers to settle the receivables. The Group and the Company have identified growth rates of real Gross
Domestic Product (‘GDP’) of Malaysia to be the most relevant factor, and accordingly, adjusts the historical loss rates based on the expected
changes in this factor. As at 31 December 2021, for non-government customers, a combination of growth rates of real GDP and inflation rates
were identified as the most relevant factors.
During the current financial year, as a result of a prolonged COVID-19 impact, the Group and the Company have considered matters such as
lower collection of outstanding debts, suspension of disconnection activities, introduction of Instalment Plan Package which are limited to
certain category of customers, and some other relief packages introduced by the Government in assessing the ECL.
On that basis, the loss allowance was determined for both trade receivables and trade contract assets as reflected in the tables above.
The opening loss allowances for trade receivables and trade contract assets reconciled to the closing loss allowances are as follows:
Trade receivables
Group Company
2021 2020 2021 2020
As at the beginning of the financial year (2,139.5) (1,766.0) (2,011.2) (1,677.8)

Impairment loss recognised (961.4) (576.4) (764.5) (388.8)
Impairment loss reversed 78.7 109.5 77.4 55.6
Impairment written off/(write back) 168.9 93.4 0.2 (0.2)
As at the end of the financial year (Note 21) (2,853.3) (2,139.5) (2,698.1) (2,011.2)
Trade contract assets
Group Company
2021 2020 2021 2020
As at the beginning of the financial year (43.8) (56.6) (36.7) (44.0)

Impairment written off 0 6.1 0 0
As at the end of the financial year (Note 17(a)) (70.3) (43.8) (64.0) (36.7)

Pages 182 - 348

31 December 2021
Trade receivables are secured by deposits in the form of cash and bank guarantees. ECL is not provided on receivable balances fully secured
by deposits. The deposit amounts are reviewed on an individual basis periodically.
Individual receivables which were known to be uncollectible were written off by reducing the carrying amount directly.
Impairment losses on trade receivables and trade contract assets are presented as net impairment losses within operating profit. Subsequent
recoveries of amounts previously written off are credited against the same line item.
(ii) Investment in unquoted debt securities, deposits, bank and cash balances, derivative financial instruments and financial assets at FVTPL
Investments, deposits, bank and cash balances, derivative financial instruments and financial assets measured at FVTPL are liquid securities
and mainly with reputable financial institutions.
Investment in unquoted debt securities are investment in an associate’s financial instruments. The credit risk of this associate is monitored on
a quarterly basis and the loss allowances are provided for accordingly.
The maximum exposure to credit risk is represented by the carrying amounts in the SOFP.
In view of the sound credit rating of counterparties, the Group and the Company do not expect any counterparty to fail to meet its obligations.
The Group and the Company do not have overdue investments that have not been impaired.
The investments, deposits, cash and bank balances and derivative financial instruments are unsecured.
Bank and cash balances are held with banks and financial institutions which have lower credit risks. In addition, some of the bank balances
are insured by Government agencies. Consequently, the Group and the Company are of the view that the loss allowance is not material and
hence, it is not provided for.
The total investment in unquoted debt securities and the impairment provided are as follows:
Group Company
2021 2020 2021 2020
Investment in unquoted debt securities 327.5 303.4 327.5 303.4

300.1 265.8 300.1 265.8


31 December 2021
(ii) Investment in unquoted debt securities, deposits, bank and cash balances, derivative financial instruments and financial assets at FVTPL
(continued)
Impairment losses
The impairment for the remaining investment in unquoted debt securities, deposits, bank and cash balances, derivative financial instruments
and financial assets at FVTPL during the financial year and previous financial year was insignificant.
The loss allowances for investment in unquoted debt securities for the Group and the Company using the general 3-stage approach reconciled
to the opening loss allowances for that provision are as follows:
Stage 1 Stage 2 Stage 3 Total
2021
As at the beginning of the financial year (37.6) 0 0 (37.6)
Impairment loss recognised (102.1) 0 0 (102.1)
Impairment loss reversed 112.3 0 0 112.3
As at the end of the financial year (27.4) 0 0 (27.4)
2020
As at the beginning of the financial year 0 0 0 0
The impact on the carrying value of the investment in unquoted debt securities presented by the stages are as follows:
2021
Gross carrying amount 327.5 0 0 327.5
Less: Loss allowances (27.4) 0 0 (27.4)
Net carrying amount 300.1 0 0 300.1
2020

Pages 182 - 348

31 December 2021
(iii) Non trade receivables
• Intercompany balances
The Company provides unsecured loans and advances to subsidiaries. The Company monitors the results of the subsidiaries regularly.
At the end of the financial year, the maximum exposure to credit risk is represented by their carrying amounts in the SOFP.
The total amounts due from subsidiaries and impairment provided are as follows:
Company
2021 2020

Less: Loss allowances (718.6) (1,642.4)
8,001.0 13,771.7
Impairment losses
Generally, the Company considers loans and advances to subsidiaries having low credit risk. The Company assumes that there is a
significant increase in credit risk when a subsidiary’s financial position deteriorates significantly based on stages determined in the
accounting policy part (d) of this note. As the Company is able to determine the timing of payments of the subsidiaries’ balances
when they are payable, the Company considers the amount payable to be in default when the subsidiaries are not able to pay when
demanded. The Company considers a subsidiary’s balances to be impaired when the subsidiary is:
- unlikely to repay its payables to the Company in full;
- having negative operating cash flows and is in net tangible liabilities position; or
- a dormant entity or has a history of default.
At the end of the financial year, there was no indication that the amounts due from the subsidiaries are not recoverable other than those
which have already been impaired. The Company does not specifically monitor the ageing of advances to the subsidiaries.
During the financial year, there has been reversal of loss allowances due to repayments received and conversion of intercompany
receivables as equity. It is also inclusive of write-off of intercompany receivables due to disposal and liquidations.


31 December 2021
(iii) Non trade receivables (continued)
• Intercompany balances (continued)
The loss allowances for intercompany balances using the general 3-stage approach reconciled to the opening loss allowances for that
provision are as follows:
2021
As at the beginning of the financial year (308.2) (413.6) (920.6) (1,642.4)
Impairment loss written off 15.5 269.4 231.1 516.0
As at the end of the financial year (471.9) (128.2) (118.5) (718.6)
2020
As at the beginning of the financial year (261.1) (1,151.5) (1,281.6) (2,694.2)
Impairment loss transferred 88.4 800.4 153.9 1,042.7
As at the end of the financial year (308.2) (413.6) (920.6) (1,642.4)
The impact on the carrying value of the intercompany balances presented by the stages are as follows:
2021
Gross carrying amount 8,469.1 132.0 118.5 8,719.6
Net carrying amount 7,997.2 3.8 0 8,001.0
2020
Less: Loss allowances (308.2) (413.6) (920.6) (1,642.4)
Net carrying amount 13,533.2 238.5 0 13,771.7

Pages 182 - 348

31 December 2021
• Other non trade receivables, amounts due from associates and joint ventures
Credit risk on other non trade receivables are mainly arising from RJO debtors which are receivables from specific works requested by
customers.
Credit risk also arises from sundry deposits for rental of office spaces from third parties and rental receivables. The Company manages
the credit risk together with the specific leasing arrangements.
Staff advances and staff loans have low credit risk as these are mostly provided to existing staff. These balances are managed on a
monthly basis.
Amounts due from associates and joint ventures are mostly due to transactions within the Group and have a low credit risk. These
balances are managed on a monthly basis.
At the end of the financial year, the maximum exposure to credit risk is represented by their carrying amounts in the statement of
financial position.
The Company receives down payments, LOUs or indents for RJO debtors where works are requested by customers.
The Company receives deposits from third parties for rental of office spaces. For staff loans and staff advances, any repayment is done
through monthly payroll deductions.
In cases of RJO debtors arising from accidental damages to the Company’s assets whereby the third party is identifiable, these amounts
are fully impaired as there is very low prospect of recovery.


31 December 2021
• Other non trade receivables, amounts due from associates and joint ventures (continued)
The total other non trade receivables, amounts due from associates and amounts due from joint ventures and impairments provided are
as follows:
Group Company
2021 2020 2021 2020
Other non trade receivables 7,096.8 1,188.7 5,800.8 360.8

6,853.2 980.9 5,632.3 229.8
Amounts due from associates 350.0 190.8 10.6 3.6

342.7 183.5 10.5 3.4

Less: Loss allowances (22.2) (24.8) 0 0
43.5 19.4 0 0
Impairment losses
Generally, the Group and the Company consider other non trade receivables as having low credit risk. The Group and the Company
assumes that there is a significant increase in credit risk when there is a history of default in payments.
The loss allowances for other non trade receivables using the general 3-stage approach reconciled to the opening loss allowances for
that provision are as follows:
Group
2021
Impairment loss reversed 0.8 0 5.8 6.6
Impairment loss write back 0 0 (0.2) (0.2)
2020
Impairment loss write back (4.1) (0.2) (27.7) (32.0)

Pages 182 - 348

31 December 2021
The loss allowances for other non trade receivables using the general 3-stage approach reconciled to the opening loss allowances for
that provision are as follows: (continued)
Company
2021
Impairment loss recognised 0.7 0.2 (40.9) (40.0)
Impairment loss written off 0 0 0.1 0.1
2020


31 December 2021
The loss allowances for amounts due from associates using the general 3-stage approach reconciled to the opening loss allowances for
that provision are as follows:
Group
2021
2020
Company
2021
2020

Pages 182 - 348

31 December 2021
The loss allowances for amounts due from joint ventures using the general 3-stage approach reconciled to the opening loss allowances
for that provision are as follows:
Group
2021
2020


31 December 2021
The impact on the carrying value of other non trade receivables presented by the stages are as follows:
Group
2021
Gross carrying amount 5,564.3 393.4 1,139.1 7,096.8
Net carrying amount 5,533.3 392.1 927.8 6,853.2
2020
Gross carrying amount 932.0 65.9 190.8 1,188.7
Net carrying amount 905.6 64.8 10.5 980.9
Company
2021
Net carrying amount 5,535.2 93.1 4.0 5,632.3
2020
Gross carrying amount 196.3 39.2 125.3 360.8
Net carrying amount 186.3 38.6 4.9 229.8

Pages 182 - 348

31 December 2021
The impact on the carrying value of amounts due from associates presented by the stages are as follows:
Group
2021
2020
Company
2021
2020


31 December 2021
The impact on the carrying value of amounts due from joint ventures presented by the stages are as follows:
Group
2021
2020
(iv) Financial guarantees
The Company provides financial guarantees to banks in respect of banking facilities granted to certain subsidiaries and an associate. The
Company monitors the ability of the subsidiaries and the associate to service their loans on an individual basis annually.
The maximum exposure to the Group and the Company amounts to RM291.1 million (2020: RM282.9 million) and RM8,799.2 million (2020:
RM2,663.5 million) respectively, representing banking facilities utilised by the subsidiaries and an associate as at the end of the financial year.
The financial guarantees are provided as credit enhancements to the subsidiaries’ and associate’s secured loans.

Pages 182 - 348

31 December 2021
(iv) Financial guarantees (continued)
Exposure to credit risk, credit quality and collateral (continued)
The total financial guarantees and loss allowances provided are as follows:
Group Company
2021 2020 2021 2020
Financial guarantees 291.1 282.9 8,799.2 2,663.5

0 0 8,505.8 2,378.3
Impairment losses
The Company assumes that there is a significant increase in credit risk when a subsidiary or associate has indication of defaulting on its
banking facilities. The Company considers a financial guarantee to be credit impaired when the subsidiary or associate is unlikely to repay its
credit obligation to the bank in full.
The Company determines the probability of default of the guaranteed loans individually using internal information available.
Loss allowance has been recognised mainly arising from the financial guarantee provided by the Group in 2016 to support the loan facility
offered to İç Anadolu Doğalgaz Elektrik Üretim ve Ticaret A.Ş. (‘ICAN’), a subsidiary of Gama Enerji. The ECL is determined based on an internal
assessment of Gama Enerji’s debt servicing ability taking into account of the current adverse macroeconomic conditions in Turkey. The
impairment loss for financial guarantees for the Group and the Company are in Stage 3.
The movement in the loss allowances of financial guarantees during the financial year was:
Group Company
2021 2020 2021 2020

Impairment loss recognised (8.2) 0 (8.2) 0
Impairment loss reversed 0 0 0 0.6
As at the end of the financial year (Note 24) (291.1) (282.9) (293.4) (285.2)


31 December 2021
Liquidity risk
Liquidity risk is the risk that the Group and the Company will not be able to meet its financial obligations as they fall due. The Group’s and the
Company’s exposures to liquidity risk arise principally from its various payables, loans and borrowings. The Group and the Company monitor rolling
forecasts of the Group’s and of the Company’s liquidity requirements.
As of 31 December 2021, the Group’s and the Company’s current liabilities exceeded their current assets by RM194.3 million (2020: RM998.8 million)
and RM6,950.5 million (2020: RM6,151.9 million) respectively.
As the Group’s net current liabilities position is mainly contributed by the Company, cash flow forecast has been prepared for the next 12 months
for the Company taking into account the expected revenue growth rates, customer collection trends, low rate of termination of electricity account
that would crystallise the entire consumer deposit of RM6,685.1 million and one-off transactions expected within the next 12 months. Based on the
cash flow forecast, the Company is able to generate sufficient internal cash flows from operations for the next 12 months from the reporting date to
meet operational and financing needs as and when they fall due.
In addition, as at 31 December 2021, the Group and the Company have undrawn borrowing facilities amounting to RM10,389.0 million (2020:
RM16,902.0 million) and RM9,911.0 million (2020: RM15,612.0 million) respectively to support any cash shortfall while maintaining sufficient
headroom on its undrawn borrowing facilities at all times to ensure the Group and the Company have the financial flexibility.
Surplus cash of the Group and of the Company is invested in profit bearing current accounts, money market deposits and other instruments with
appropriate maturities and sufficient liquidity level to provide sufficient headroom as determined by the cash flow forecasts and to enable the
Group and the Company to discharge liabilities in the normal course of business.

Pages 182 - 348

31 December 2021
Liquidity risk (continued)
The table below summarises the maturity profiles of the Group’s and of the Company’s financial liabilities as at the end of the financial year based
on the undiscounted contractual payments:
Carrying Contractual Below 1 More than 5
amount cash flows year 1-2 years 3-5 years years
2021
Group
Non-derivative financial liabilities
Payables 7,001.5 7,001.5 7,001.5 0 0 0
Lease liabilities* 29,241.9 40,432.2 4,550.0 3,674.5 9,587.9 22,619.8
Amounts due to associates 183.8 183.8 183.8 0 0 0
Borrowings* 51,678.2 67,528.7 7,638.2 2,781.9 12,204.1 44,904.5
Financial guarantee contracts 291.1 291.1 291.1 0 0 0
Other financial liabilities at AC 953.1 975.3 313.5 319.3 40.6 301.9
89,349.6 116,412.6 19,978.1 6,775.7 21,832.6 67,826.2
Derivative financial liabilities
Interest rate swaps 31.0 1,703.5 0 565.6 1,137.9 0
Spot foreign currency contracts 0 38.9 38.9 0 0 0
Profit rate swap contracts 7.7 342.8 0 0 342.8 0
Forward exchange contracts (gross settled):
- Outflows 0.4 39.2 39.2 0 0 0
89,388.7 118,537.0 20,056.2 7,341.3 23,313.3 67,826.2
Company
Payables 3,381.4 3,381.4 3,381.4 0 0 0
Amounts due to subsidiaries 4,136.3 4,136.3 4,136.3 0 0 0
Borrowings* 25,036.3 35,536.7 4,716.2 876.6 7,149.6 22,794.3
Financial guarantee contracts 293.4 8,799.2 8,799.2 0 0 0
104,892.6 165,864.9 30,869.4 8,549.3 27,859.8 98,586.4
Derivative financial liability
Spot foreign currency contracts 0 38.9 38.9 0 0 0
- Outflows 0.4 39.2 39.2 0 0 0
104,893.0 165,943.0 30,947.5 8,549.3 27,859.8 98,586.4


31 December 2021
Liquidity risk (continued)
The table below summarises the maturity profiles of the Group’s and of the Company’s financial liabilities as at the end of the financial year based
on the undiscounted contractual payments: (continued)
Carrying Contractual Below 1 More than 5
amount cash flows year 1-2 years 3-5 years years
2020
Group
Payables 6,524.3 6,524.3 6,524.3 0 0 0
Borrowings* 49,452.6 63,295.0 6,505.3 2,505.3 8,123.8 46,160.6
Financial guarantee contracts 282.9 282.9 282.9 0 0 0
86,109.5 110,763.5 18,531.7 6,647.9 17,582.8 68,001.1
Derivative financial liabilities
Interest rate swaps 150.2 1,746.1 0 95.2 1,650.9 0
Profit rate swap contracts 25.5 361.3 0 0 361.3 0
- Outflows 1.3 93.3 93.3 0 0 0
86,286.5 112,964.2 18,625.0 6,743.1 19,595.0 68,001.1
Company
Payables 3,896.3 3,896.3 3,896.3 0 0 0
Amounts due to subsidiaries 1,411.9 1,411.9 1,411.9 0 0 0
Borrowings* 22,091.3 30,039.7 4,224.3 881.3 2,558.8 22,375.3
Financial guarantee contracts 285.2 2,663.5 2,663.5 0 0 0
94,035.4 144,304.8 22,022.4 8,633.5 21,345.5 92,303.4
Derivative financial liability
- Outflows 1.3 93.3 93.3 0 0 0
94,036.7 144,398.1 22,115.7 8,633.5 21,345.5 92,303.4
* Refer to Note 15 and Note 27 for the average remaining period.

Pages 182 - 348

31 December 2021
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and other prices will affect the Group’s and the
Company’s financial positions or cash flows.
(i) Foreign currency risk
The Group and the Company are exposed to foreign currency risk on sales, purchases and borrowings that are denominated in currencies
other than the respective functional currencies of the Group and of the Company. The currencies giving rise to this risk are primarily USD, JPY
and GBP.
The Group and the Company are required to hedge a minimum of 50.0% of TNB’s known foreign currency exposure up to 12 months period.
The Group and the Company use forward exchange contracts and maintain foreign currency floats to hedge its foreign currency risk.
Exposure to foreign currency risk
The currency exposure of financial assets and financial liabilities of the Group and of the Company at the end of the financial year, expressed
in MYR (if not defined, Malaysian Ringgit) currency units, are as follows:
USD JPY GBP Others
2021
Group
Financial assets
Financial assets at FVOCI 0 0 0 0.4
Receivables 2.8 0 0 0.4
Deposits, bank and cash balances 1,444.7 0 107.2 0
1,447.5 0 107.2 0.8
Payables 7.6 5.5 941.6 3.2
Borrowings 8,035.9 2,092.0 2,357.0 0
8,043.5 2,097.5 3,298.6 3.2
Company
Financial assets
Amounts due from subsidiaries 9.7 0 0 0
Deposits, bank and cash balances 1,444.4 0 0 0
1,454.1 0 0 0
Financial liability
Borrowings 8,035.9 2,092.0 0 0


31 December 2021
Market risk (continued)
(i) Foreign currency risk (continued)
Exposure to foreign currency risk (continued)
The currency exposure of financial assets and financial liabilities of the Group and of the Company at the end of the financial year, expressed
in MYR (if not defined, Malaysian Ringgit) currency units, are as follows: (continued)
USD JPY GBP Others
2020
Group
Financial assets
Financial assets at FVOCI 0 0 0 0.4
Receivables 8.4 0 1.2 0.8
Deposits, bank and cash balances 2,057.4 0 257.7 3.6
2,065.8 0 258.9 4.8
Payables 12.0 0.7 31.0 3.8
Borrowings 7,729.5 2,372.1 2,390.9 0
7,741.5 2,372.8 2,421.9 3.8
Company
Financial assets
Amounts due from subsidiaries 104.7 0 0 0
Deposits, bank and cash balances 2,054.5 0 0 0
2,159.2 0 0 0
Financial liability
Borrowings 7,729.5 2,372.1 0 0

Pages 182 - 348

31 December 2021
(i) Foreign currency risk (continued)
Currency risk sensitivity analysis
A 10.0% strengthening of the foreign currencies against RM at the end of the financial year would have decreased post-tax profit or loss by the
amounts shown below. This analysis assumes that all other variables, in particular interest rates, remained constant and ignores any impact of
forecasted sales and purchases.
Profit or loss/equity
2021 2020
Group
USD (655.7) (682.3)
JPY (209.2) (151.1)
GBP (333.2) (218.3)
Company
USD (654.3) (669.6)
JPY (208.7) (151.1)
A 10.0% weakening of the foreign currencies against RM at the end of the financial year would have had equal but opposite effect on the
above currencies to the amounts shown above, on the basis that all other variables remained constant.
Foreign currency risk for the Group and the Company which have a functional currency other than USD, JPY and GBP are not material and
hence, sensitivity analysis is not presented.
(ii) Interest rate risk
The Group’s and the Company’s investments in fixed rate debt securities and its fixed rate borrowings are not exposed to a significant risk
of change in their fair values due to changes in interest rates. The Group’s and the Company’s variable rate borrowings are exposed to a risk
of change in cash flows due to changes in interest rates. Investment in equity securities and short term receivables and payables are not
significantly exposed to interest rate risk.


31 December 2021
(ii) Interest rate risk (continued)
Exposure to interest rate risk
The interest rate profile of the Group’s and of the Company’s significant interest-bearing financial instruments, based on carrying amounts as
at the end of the financial year were:
Group Company
2021 2020 2021 2020
Fixed rate instruments:

Financial assets 3,268.5 4,115.1 1,884.7 2,140.4
Financial liabilities 78,477.5 75,677.1 96,226.8 87,610.4
Floating rate instrument:

Financial liabilities 2,442.6 2,504.3 0 0
The financial assets are not sensitive to interest rate changes.
A 5.0% change in the interest rates of the financial liabilities with floating interest rates at the end of the financial year would have affected
the Group’s and the Company’s profit or loss and equity by RM0.1 million (2020: RM0.1 million). This analysis assumes that all other variables,
in particular foreign currency rates remained constant.
(iii) Other price risk
Other price risk arises from the Group’s and the Company’s investments in equity securities, debt securities and unit trust funds.
The Group and the Company are exposed to price risk because the investments held are classified on the statement of financial position as
FVOCI and FVTPL. The Group and the Company mainly invest in unit trust funds, primarily in short term deposits as underlying instruments
with minimal price risk.

Pages 182 - 348

31 December 2021
Fair value of financial instruments
The carrying amounts of deposits, bank and cash balances, short term receivables and payables, short term borrowings, short term amount due
from/(to) subsidiaries and short term derivative financial instruments approximate their fair values and are equivalent to nominal values due to the
relatively short term nature of these financial instruments.
The table below analyses financial instruments carried at fair value and those not carried at fair value for which fair value is disclosed, together with
their fair values and carrying amounts shown in the statement of financial position.
The classifications in the fair value hierarchy of the Group’s and of the Company’s assets and liabilities measured at fair value are summarised in the
table below:
Fair value of financial instruments Fair value of financial instruments
carried at fair value not carried at fair value
Total fair Carrying
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total value amount
2021
Group
Financial assets
Investment in unquoted
debt securities 0 0 0 0 0 300.1 0 300.1 300.1 300.1
Long term receivables 0 0 0 0 0 65.1 0 65.1 65.1 65.1
Derivative financial
instruments 0 1.2 0 1.2 0 0 0 0 1.2 1.2
Financial assets at FVOCI 0 62.8 0 62.8 0 0 0 0 62.8 62.8
Financial assets at FVTPL 2,422.3 100.0 0 2,522.3 0 0 0 0 2,522.3 2,522.3
2,422.3 164.0 0 2,586.3 0 365.2 0 365.2 2,951.5 2,951.5
Borrowings 0 0 0 0 2,087.8 48,022.4 0 50,110.2 50,110.2 51,678.2
Other financial liabilities at AC 0 0 0 0 0 973.0 0 973.0 973.0 953.1
instruments 0 39.1 0 39.1 0 0 0 0 39.1 39.1
0 39.1 0 39.1 2,087.8 48,995.4 0 51,083.2 51,122.3 52,670.4
Company
Financial assets
debt securities 0 0 0 0 0 300.1 0 300.1 300.1 300.1
Amounts due from
subsidiaries 0 0 0 0 0 5,010.4 0 5,010.4 5,010.4 5,010.4
Financial assets at FVTPL 600.7 100.0 0 700.7 0 0 0 0 700.7 700.7
600.7 162.1 0 762.8 0 5,369.5 0 5,369.5 6,132.3 6,114.9
Borrowings 0 0 0 0 2,087.8 24,640.1 0 26,727.9 26,727.9 25,036.3
instruments 0 0.4 0 0.4 0 0 0 0 0.4 0.4
0 0.4 0 0.4 2,087.8 25,327.7 0 27,415.5 27,415.9 25,717.7


31 December 2021
Fair value of financial instruments (continued)
The classifications in the fair value hierarchy of the Group’s and of the Company’s assets and liabilities measured at fair value are summarised in the
table below: (continued)
Fair value of financial instruments Fair value of financial instruments
carried at fair value not carried at fair value Total fair Carrying
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total value amount
2020
Group
Financial assets
debt securities 0 0 0 0 0 265.8 0 265.8 265.8 265.8
6,942.5 229.5 0 7,172.0 0 347.4 0 347.4 7,519.4 7,510.5
Borrowings 0 0 0 0 2,164.2 51,194.1 0 53,358.3 53,358.3 49,452.6
instruments 0 177.0 0 177.0 0 0 0 0 177.0 177.0
0 177.0 0 177.0 2,164.2 52,032.9 0 54,197.1 54,374.1 50,512.7
Company
Financial assets
debt securities 0 0 0 0 0 265.8 0 265.8 265.8 265.8
Amounts due from
subsidiaries 0 0 0 0 0 12,108.8 0 12,108.8 12,108.8 11,873.2
5,217.2 166.3 0 5,383.5 0 12,447.0 0 12,447.0 17,830.5 17,574.2
Borrowings 0 0 0 0 2,164.2 22,006.9 0 24,171.1 24,171.1 22,091.3
instruments 0 1.3 0 1.3 0 0 0 0 1.3 1.3
0 1.3 0 1.3 2,164.2 22,608.4 0 24,772.6 24,773.9 22,696.1

Pages 182 - 348

31 December 2021
Fair value of financial instruments (continued)
(i) Policy on transfer between levels
The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused
the transfer.
There were no transfers between levels during the financial year.
(ii) Level 1 fair value
Level 1 fair value is derived from quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.
(iii) Level 2 fair value
Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the financial assets or
liabilities, either directly or indirectly.
Derivative financial instruments
The fair value is estimated by the difference between the contractual forward price and the current forward price for the residual maturity of
the contract.
Non-derivative financial instruments
Fair value, which is determined for disclosure purpose, is calculated based on the present value of future principal and interest cash flows,
discounted at the market rate of interest at the end of the reporting period.
(iv) Level 3 fair value
Level 3 fair values for the financial assets and liabilities are estimated using unobservable inputs.
(v) Interest rates used to determine fair value
The interest rates used to discount estimated cash flows, when applicable, ranging between 0.1% to 8.0% (2020: 0.1% to 8.0%).
Although the Group and the Company believe that their estimates of fair value are appropriate, the use of different methodologies or
assumptions could lead to different measurements of fair value.
The favourable and unfavourable effects of using reasonably possible alternative assumptions have been calculated by recalibrating the
model values using expected cash flows and risk-adjusted discount rates based on the probability weighted average of the Group’s and of the
Company’s ranges of possible outcomes.


31 December 2021
(c) Offsetting of financial assets and financial liabilities
The following financial assets and financial liabilities are subject to offsetting arrangements based on Group policies and procedures:
Group Company
Gross amounts Net amounts Gross amounts Net amounts
Gross amounts set-off in presented in Gross amounts set-off in presented in
recognised the SOFP the SOFP recognised the SOFP the SOFP
Financial assets
2021
Amounts due from associates 342.7 0 342.7 10.5 0 10.5
Amounts due from subsidiaries 0 0 0 10,656.5 (2,655.5) 8,001.0
Amounts due from joint ventures 43.5 0 43.5 0 0 0
2020
Amounts due from associates 183.5 0 183.5 3.4 0 3.4
Amounts due from subsidiaries 0 0 0 14,200.1 (428.4) 13,771.7
Amounts due from joint ventures 19.4 0 19.4 0 0 0
2021
Amounts due to associates (183.8) 0 (183.8) (173.7) 0 (173.7)
Amounts due to subsidiaries 0 0 0 (6,791.8) 2,655.5 (4,136.3)
2020
Amounts due to associates (237.8) 0 (237.8) (228.1) 0 (228.1)
Amounts due to subsidiaries 0 0 0 (1,840.3) 428.4 (1,411.9)
46 CAPITAL RISK MANAGEMENT
The Group’s and the Company’s main objective of capital management is to safeguard the Group’s and the Company’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders. The Group and the Company will also strive to maintain an
optimal capital structure to reduce the cost of capital.
For the purpose of sustaining or changing the capital structure, the Group and the Company may adjust the amount of dividends paid to shareholders,
issue new shares or return capital to shareholders.
In order to be consistent with industry norms, the Group and the Company monitor its capital structure on the basis of the gearing ratio. This ratio is
calculated as total borrowings divided by capital employed. Total borrowings include non-current borrowings, current borrowings and hire purchase as
shown in the consolidated statement of financial position. Capital employed is the summation of total equity and total borrowings.

Pages 182 - 348

31 December 2021
46 CAPITAL RISK MANAGEMENT (CONTINUED)
The gearing ratios are as follows:

Group Company
2021 2020 2021 2020

Total equity 58,392.4 57,449.9 45,401.3 46,755.0
Total capital employed 110,070.6 106,902.9 70,437.6 68,846.3
Gearing ratios 0.47 0.46 0.36 0.32
The Group and the Company have met all externally imposed capital requirements.
47 SIGNIFICANT ACQUISITIONS DURING CURRENT AND PRECEDING FINANCIAL YEARS
(a) Associate acquired by the Group during the financial year ended 31 December 2021 is as follows:
Group’s
Purchase effective Effective
Note consideration interest acquisition
RM’million acquired date
Name of associate
Blyth Offshore Demonstrator Limited (‘BODL’) (i) 674.7 49.0% 18 October 2021
(i) On 18 October 2021, Vantage RE No. 1 Ltd., a wholly-owned subsidiary of Vantage RE Ltd. (formerly known as Tenaga Investments UK Ltd.)
completed the subscription of 30,135,049 ordinary shares representing a 49.0% equity interest in BODL for a purchase consideration of
GBP118.0 million and transaction cost of GBP1.2 million (amounting to RM674.7 million). BODL is principally involved in the ownership,
construction and operation of a 42MW offshore wind farm in Blyth, England as disclosed in Note 9.
(b) Subsidiaries acquired by the Group during the financial year ended 31 December 2020 are as follows:
Group’s
Purchase effective Effective
Note consideration interest acquisition
RM’million acquired date
Name of subsidiaries
Vantage Solar Investments S.A.R.L. (Formerly known as Vortex Solar
Investments S.A.R.L) (‘VSI’) (i) 28.4 55.0% 1 September 2020
Southern Power Generation Sdn. Bhd. (‘SPG’) (ii) 283.0 70.0% 28 September 2020


31 December 2021
47 SIGNIFICANT ACQUISITIONS DURING CURRENT AND PRECEDING FINANCIAL YEARS (CONTINUED)
(b) Subsidiaries acquired by the Group during the financial year ended 31 December 2020 are as follows: (continued)
(i) TNB International Sdn. Bhd. (‘TNBI’), a wholly-owned subsidiary of the Company previously acquired 50.0% of the share capital of VSI
and categorised VSI as an associate. On 1 September 2020, TNBI completed the acquisition of additional 5.0% equity interest in VSI and
subsequently obtained control of VSI resulting in deemed disposal of VSI as an associate (Note 9) and recognition as a subsidiary of the Group
(Note 7). TNBI’s effective interest in VSI is 55.0%. The remaining 45.0% stake in VSI is owned by KWAP. VSI is an investment holding company
and the principal activities of its subsidiary companies are as disclosed in Note 7.
The Group’s profit after tax for the financial year ended 31 December 2020 would have been estimated at RM3,576.5 million if VSI had
been consolidated at the beginning of the financial year ended 31 December 2020. From the acquisition date up to 31 December 2020, VSI
contributed a loss after tax of RM40.3 million.
(ii) On 28 September 2020, the Company acquired an additional 19.0% equity interest in its subsidiary, SPG and 13.0% Class B RPS from SIPP
Energy Sdn. Bhd. for a total consideration of RM283.0 million.
SPG was incorporated on 12 August 2016 as a special purpose vehicle company for the development of a Combined Cycle Gas Turbine Power
Plant in Pasir Gudang, Johor. Previously, the Company owned 51.0% equity interest in SPG. Upon completion of the acquisition, the Company
holds 70.0% equity interest in SPG and SPG remains as a subsidiary of the Group. The principal activities of SPG is as disclosed in Note 7.
48 EVENTS AFTER REPORTING PERIOD
Approval for Regulatory Period 3 implementation
The Government has approved and decided via a letter from Suruhanjaya Tenaga dated 28 January 2022, to implement the Regulatory Period 3 under the
IBR framework for the period of February 2022 to December 2024. The Government has decided to maintain the current electricity tariff schedule for all
customers in Peninsular Malaysia. This decision complies with the rules and regulations under the Regulatory Implementation Guidelines.
Completion of refinancing exercise by Vantage RE Ltd. (formerly known as Tenaga Investments UK Ltd.)
On 23 February 2022, the Group’s wholly-owned subsidiary, Vantage RE Ltd. has completed a GBP275 million (RM1.56 billion) financing exercise through
refinancing of its VSUK portfolio of solar power plants in the United Kingdom. The financing facility with Macquarie Asset Management, arranged by
Standard Chartered Bank, is part of Vantage RE Ltd.’s management initiative to optimise VSUK’s financing structure and providing greater investment
certainty over the longer term.

Pages 182 - 348
STATEMENT BY DIRECTORS
PURSUANT TO SECTION 251(2) OF THE COMPANIES ACT 2016
We, Dato’ Sri Hasan bin Arifin and Datuk Ir. Baharin bin Din, the Directors of Tenaga Nasional Berhad, do hereby state that, in the opinion of the Directors, the
financial statements set out on pages 187 to 340 are drawn up so as to give a true and fair view of the financial position of the Group and of the Company as at
31 December 2021 and financial performance of the Group and of the Company for the financial year ended 31 December 2021 in accordance with Malaysian
Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.
Signed on behalf of the Board of Directors, in accordance with a resolution dated 17 March 2022.
DATO’ SRI HASAN BIN ARIFIN DATUK IR. BAHARIN BIN DIN
CHAIRMAN PRESIDENT/CHIEF EXECUTIVE OFFICER
STATUTORY DECLARATION
PURSUANT TO SECTION 251(1) OF THE COMPANIES ACT 2016
I, Nazmi bin Othman, the Officer primarily responsible for the financial management of Tenaga Nasional Berhad, do solemnly and sincerely declare that the
financial statements set out on pages 187 to 340 are, in my opinion, correct and I make this solemn declaration conscientiously believing the same to be true,
and by virtue of the provisions of the Statutory Declarations Act, 1960.
NAZMI BIN OTHMAN
Subscribed and solemnly declared by the abovenamed Nazmi bin Othman at Kuala Lumpur, Malaysia on 17 March 2022, before me.
COMMISSIONER FOR OATHS

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF TENAGA NASIONAL BERHAD (INCORPORATED IN MALAYSIA) (COMPANY NO. 199001009294 (200866-W))
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Our opinion
In our opinion, the financial statements of Tenaga Nasional Berhad (“the Company”) and its subsidiaries (“the Group”) give a true and fair view of the financial
position of the Group and of the Company as at 31 December 2021, and of their financial performance and their cash flows for the financial year then ended
in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in
Malaysia.
What we have audited
We have audited the financial statements of the Group and of the Company, which comprise the statements of financial position as at 31 December 2021 of the
Group and of the Company, and the statements of profit or loss, statements of comprehensive income, statements of changes in equity and statements of cash
flows of the Group and of the Company for the financial year then ended, and notes to the financial statements, including a summary of significant accounting
policies, as set out on pages 187 to 340.
Basis for opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under
those standards are further described in the “Auditors’ responsibilities for the audit of the financial statements” section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence and other ethical responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute
of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the
IESBA Code.
Our audit approach
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements of the Group and of
the Company. In particular, we considered where the Directors made subjective judgements; for example, in respect of significant accounting estimates that
involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management
override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement
due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into
account the structure of the Group and of the Company, the accounting processes and controls, and the industry in which the Group and the Company operate.

Pages 182 - 348

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the Group and
of the Company for the current financial year. These matters were addressed in the context of our audit of the financial statements of the Group and of the
Company as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matters How our audit addressed the key audit matters
Revenue recognition for sales of electricity We performed the following audit procedures:
Refer to Note 4 – Critical Accounting Estimates and Judgements and Note 32 – • Tested the overall information technology general controls of the billing
Revenue and accounting systems recording the revenue transactions;
Sales of electricity of RM51,189.9 million and RM48,606.8 million is the • Tested the application controls within the billing systems over the
most significant component of the Group’s and the Company’s revenue, following:
respectively, for the financial year ended 31 December 2021. - maintenance of tariff rates in the billing systems;
- accuracy of calculation of amounts billed to customers; and
Revenue from sales of electricity is based on the end customers’ consumption - recording of revenue transactions.
and the related tariff rates, which are governed by the Incentive Based
Regulations imposed by the Energy Commission. • Tested the billings and revenue adjustments on a sampling basis to assess
whether the revenue recognised and revenue adjustments are valid and
We focused on the revenue recognition for sales of electricity as it involves recorded accurately; and
the use of complex billing and accounting systems to process large volumes
of data with different tariffs based on respective customer categories and • Examined the correspondence with the Energy Commission and
consumption. assessed whether there were any material matters that would affect the
implementation of the Incentive Based Regulations.
Based on the above procedures performed, we did not find any material
exceptions.
Tax litigations We performed the following audit procedures:
Refer to Note 4 – Critical Accounting Estimates and Judgements and Note 43 – • Evaluated the Directors’ assessment on the basis of recoverability of the
Contingent Liabilities tax recoverable of RM3,522.4 million in respect of RIA and the potential
tax liabilities in respect of RIA and RULS claims by the IRB by assessing the
Reinvestment allowance (‘RIA’) claims independent legal confirmations obtained from management’s external
legal counsel; and
The Inland Revenue Board (‘IRB’) had disallowed the Company’s RIA claims
for the Years of Assessment (‘YAs’) 2013, 2014, 2015, 2016, 2017 and 2018 • Examined the correspondence between the Company and the tax
and had issued notices of additional assessments (‘Notices’) to the Company, authority and assessed the matters in dispute based on advice from our
amounting in aggregate to RM7,858.6 million. tax experts to review the basis of applying the relevant tax laws.
As at 31 December 2021, the Group and Company recorded a tax recoverable Based on the procedures performed above, we did not find any material
of RM3,522.4 million and have not recorded the potential tax liabilities exceptions to the Directors’ judgement in the treatment of the tax
arising from the tax impact if the RIA claims are disallowed and the Company recoverable balance and the potential tax liabilities.
loses its appeal. Based on the legal advice obtained from its tax solicitors on
the merits of the cases, the Directors are of the opinion that no provision is
required in the financial statements for the potential tax liability up to the
reporting date.


Key audit matters (continued)
Redeemable Unsecured Loan Stock (‘RULS’) claims
On 29 October 2021, IRB had disallowed the interest expenses incurred by

Kapar Energy Ventures Sdn. Bhd. (‘KEV’) in relation to the RULS granted by
the shareholders and revision of revenue for the YAs 2004 to 2009 and had
issued notices of assessment for the YAs 2011, 2012 and 2014 and notices
of additional assessment for the YAs 2013, 2015, 2016, 2017 and 2018
amounting in aggregate to RM595.9 million.
As at 31 December 2021, based on the legal advice obtained from its tax
solicitors, the Group is of the view that it has a good basis in law to contend
the Notices raised by the IRB. The Directors are of the opinion that no
provision is required in the financial statements for the potential tax liability
up to the reporting date.
We focused on this area due to the inherent uncertainties involved in

the outcome of judgement on the RIA and RULS claims by the Special
Commissioners of Income Tax and the Kuala Lumpur High Court, including if
there is a subsequent appeal by either party.
Assessment on carrying value of post-employment benefits We performed the following audit procedures:
Refer to Note 4 – Critical Accounting Estimates and Judgements and Note 25 – • Obtained an understanding of the terms and conditions of the post-
Employee Benefits employment benefit plans; and
As at 31 December 2021, the Group and Company recorded post-employment • Tested the present value of post-employment benefit plans based on the
benefits of RM12,434.5 million and RM11,710.8 million, respectively. actuarial valuation reports by performing the following:
- Discussed with the actuary on the valuation method used and checked
Management assessed the present value of post-employment benefit plans that the valuation method is acceptable in accordance with MFRS 119
by relying on the actuarial valuation reports from an actuary. The actuarial ‘Employee Benefits’;
valuation reports estimated the present value of post-employment benefit - Discussed with the actuary on the key assumptions used in the actuarial
plans based on key assumptions that comprised expected rate of salary valuation and checked the reasonableness by comparing to historical
increases, medical cost inflation and discount rates. data;
- Checked the reasonableness of the discount rates with the assistance
We focused on this area because of the significant estimates made by of our valuation experts by comparing to market yields of high quality
management in determining the present value of post-employment benefit government securities at the reporting date;
plans. - Checked the membership data used in the actuarial models through
inspection of payroll personnel files and other supporting documents;
and
- Compared the fair value of plan assets based on the actuary report
against the trustee’s report.
Based on the procedures performed above, we did not find any material
exceptions to the Director’s estimates of the post-employment benefits
carrying value.

Pages 182 - 348

Impairment assessments of investments in an associate and a subsidiary We have assessed management’s impairment assessments. Our procedures
in relation to management’s impairment assessment include the following:
Refer to Note 4 – Critical Accounting Estimates and Judgements, Note 7 –
Subsidiaries and Note 9 - Associates Group (Investment in an associate)
Management performed impairment assessments of its investment in • Assessed the reliability of management’s forecast through the review of
an associate of the Group and a subsidiary of the Company, which had past trends of actual financial performances against previous forecasted
impairment indicators. As a result, impairment losses totalling RM291.8 results;
million and RM300.2 million at the Group and the Company, respectively,
in respect of the Group’s investment in GMR Energy Limited (‘GEL’) and • Discussed with management the key assumptions used in the discounted
Company’s investment in Power and Energy International (Mauritius) Ltd., future cash flows projections, in particular, the plant load factor by
which comprises investments in GEL and Malaysian Shoaiba Consortium comparing with historical results and market outlook;
Sdn. Bhd. (‘MSCSB’), were recognised during the financial year ended 31
December 2021. • Engaged our internal valuation experts to assess the reasonableness of the
discount rates; and
We focused on this area as the recoverable amounts of the investments in
GEL and PEIM are determined based on the estimated cash flows available • Assessed the adequacy and reasonableness of the disclosures in the
for distribution from its investments, which require judgement on the part of financial statements.
management on the future financial performance and the key assumptions
used, in particular, plant load factor and discount rates for GEL. Company (Investment in a subsidiary)
• Assessed management’s cash flows forecasts to estimate the cash flows

available for distribution as dividends by the subsidiary from its underlying
investments, including tax and financing obligations;
• Compared management’s cash flows forecasts used for GEL with the
Group’s impairment assessment of the associate to ensure the same
underlying cash flows were used; and
• Assessed the adequacy and reasonableness of the disclosures in the

financial statements.
Based on the procedures performed, we noted no significant exceptions.

Assessment of funding requirements and ability to meet the short term We performed the following audit procedures:
obligations
• Assessed the reliability of management’s cash flow forecast for the
Refer to Note 45(b) - Financial Instruments - Financial Risk Management - Company over the period of 12 months from the date of the financial
Liquidity risk statements against previous forecasted results;
As at 31 December 2021, the Group and the Company were in a net • Discussed with management on key assumptions used in the cash flow
current liabilities (‘NCL’) position of RM194.3 million and RM6,950.5 million forecast, including the expected revenue growth rates, customer collection
respectively. trends, low rate of termination of electricity account that would crystallise
the entire consumer deposit and significant transactions that may occur
within the next 12 months in developing the cash flow forecast for the
Company;
• Reviewed past trends of consumer deposits refunds to assess the likelihood

of repayment;
• Checked the borrowing repayment profile of the Company against the

loan agreements; and


As the Group’s net current liabilities position is mainly contributed by the • Checked the extent of undrawn facilities available to the Group and the
Company, cash flow forecast has been prepared for the next 12 months Company.
for the Company, taking into account the expected revenue growth rates,
customer collection trends, low rate of termination of electricity account that Based on the procedures performed above, we did not find any material
would crystallise the entire consumer deposit which amounts to RM6,685.1 exceptions to the Directors’ assessment that the Group and the Company
million and any one-off transactions within the next 12 months. Based on will be able to meet its short term obligations.
the cash flow forecast, the Company is able to generate sufficient internal
cash flows from operations for the next 12 months from the reporting date to
meet operational and financing needs as and when they fall due. In addition,
as at 31 December 2021, the Group and the Company also have undrawn
borrowing facilities amounting to RM10,389.0 million and RM9,911.0 million
respectively.
We focused on this area due to the inherent uncertainties and the judgement
taken by management in forecasting future cash flows and determining
the availability of financing to fund the operations of the Group and the
Company for the next 12 months.
Information other than the financial statements and auditors’ report thereon
The Directors of the Company are responsible for the other information. The other information comprises the Directors’ Report, Statement on Risk Management
and Internal Control and the Board Risk Committee Report, which we obtained prior to the date of this auditors’ report, and the remaining Statements to be
included within the Integrated Annual Report 2021, which is expected to be made available to us after that date. Other information does not include the
financial statements of the Group and of the Company and our auditors’ report thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial statements
The Directors of the Company are responsible for the preparation of the financial statements of the Group and of the Company that give a true and fair view
in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in
Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements of
the Group and of the Company that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the Group’s and the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors
either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

Pages 182 - 348

Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
(a) Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
(b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Group’s and of the Company’s internal control.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
(d) Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the
financial statements of the Group and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group or the Company to cease to
continue as a going concern.
(e) Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company, including the disclosures, and
whether the financial statements of the Group and of the Company represent the underlying transactions and events in a manner that achieves fair
presentation.
(f ) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an
opinion on the financial statements of the Group. We are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with
them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the financial statements of the
Group and of the Company for the current financial year and are therefore the key audit matters. We describe these matters in our auditors’ report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.


REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries of which we have not acted as auditors, are
disclosed in Note 7 to the financial statements.
OTHER MATTERS
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act 2016 in Malaysia and for no other
purpose. We do not assume responsibility to any other person for the content of this report.
PRICEWATERHOUSECOOPERS PLT PAULINE HO

LLP0014401-LCA & AF 1146 02684/11/2023 J
Chartered Accountants Chartered Accountant
Kuala Lumpur
17 March 2022

Section
07
ADDITIONAL
INFORMATION
350 Corporate Information

351 Statistics of Shareholdings
354 Net Book Value of Land and Buildings
355 Notice of the 32nd Annual General Meeting
358 Statement Accompanying Notice of the 32nd
Annual General Meeting
• Proxy Form
CORPORATE INFORMATION
BOARD OF DIRECTORS
DATO’ SRI HASAN BIN ARIFIN ONG AI LIN FAISAL @ PISAL BIN ABDUL GHANI
Chairman Independent Non-Executive Director (Alternate Director to Datuk Seri Asri bin Hamidin
Non-Independent Non-Executive Director @ Hamidon)
(Appointed w.e.f. 1 October 2021) DATO’ ROSLINA BINTI ZAINAL Non-Independent Non-Executive Director
Independent Non-Executive Director (Appointed w.e.f. 1 March 2022)
President/Chief Executive Officer DATO’ IR. NAWAWI BIN AHMAD NORAINI BINTI CHE DAN
Non-Independent Executive Director Independent Non-Executive Director Senior Independent Non-Executive Director
(Demised on 26 August 2021)
DATUK SERI ASRI BIN HAMIDIN @ HAMIDON DATUK RAWISANDRAN A/L NARAYANAN
Non-Independent Non-Executive Director Independent Non-Executive Director DATO’ SERI MAHDZIR BIN KHALID
Chairman
DATUK AMRAN HAFIZ BIN AFFIFUDIN DATUK LAU BENG WEI Non-Independent Non-Executive Director
Non-Independent Non-Executive Director Independent Non-Executive Director (Resigned w.e.f. 29 August 2021)
(Appointed w.e.f. 1 December 2021)
JUNIWATI RAHMAT HUSSIN AZMIN BIN ISHAK
Independent Non-Executive Director DATO’ MERINA BINTI ABU TAHIR (Alternate Director to Datuk Seri Asri bin Hamidin
Independent Non-Executive Director @ Hamidon)
GOPALA KRISHNAN K.SUNDARAM (Appointed w.e.f. 1 February 2022) Non-Independent Non-Executive Director
Independent Non-Executive Director (Cessation of Office as Alternate Director
w.e.f. 10 February 2022)
COMPANY SECRETARY EXTERNAL AUDITORS INVESTOR RELATIONS

Norazni binti Mohd Isa Messrs PricewaterhouseCoopers PLT CoE Investor Relations
(LS 0009635) (LLP0014401-LCA & AF 1146) Group Finance Division
(SSM Practicing Certificate No. 201908000492) Chartered Accountants Tenaga Nasional Berhad
Level 10, 1 Sentral 4th Floor, TNB Headquarters
SHARE REGISTRAR Jalan Rakyat No. 129, Jalan Bangsar
Boardroom Share Registrars Sdn. Bhd. Kuala Lumpur Sentral 59200 Kuala Lumpur
199601006647 (378993-D) P.O. Box 10192 Malaysia
11th Floor, Menara Symphony 50706 Kuala Lumpur
No. 5, Jalan Prof. Khoo Kay Kim Malaysia Telephone : +603-2296 5566
Seksyen 13 +603-2108 2128
46200 Petaling Jaya Telephone : +603-2173 1188 Facsimile : +603-2108 2034
Selangor Darul Ehsan Facsimile : +603-2173 1288 Email : tenaga_ird@tnb.com.my
Malaysia
REGISTERED OFFICE STOCK EXCHANGE LISTING
Telephone : +603-7890 4700 Tenaga Nasional Berhad Main Market of Bursa Malaysia Securities Berhad
Facsimile : +603-7890 4670 199001009294 (200866-W) (Listed since 28 May 1992)
Website : www.boardroomlimited.com/my Pejabat Setiausaha Syarikat, Tingkat 2 Stock Code : 5347
Email : bsr.helpdesk@boardroomlimited.com Ibu Pejabat Tenaga Nasional Berhad Stock Name : TENAGA
No. 129, Jalan Bangsar
DIVIDEND SERVICE PROVIDER 59200 Kuala Lumpur AMERICAN DEPOSITORY RECEIPTS PROGRAMME
Bursa Malaysia Depository Sdn. Bhd. Malaysia (ADR)
198701006854 (165570-W) ADR Level 1
10th Floor, Exchange Square Official Communication Channels:
Bukit Kewangan Telephone : +603-2296 5566 AGM HELP DESK
50200 Kuala Lumpur Facsimile : +603-2283 3686 Telephone : +603-2107 4515/4517
Malaysia Website : www.tnb.com.my (Share Administration Section
TNB Careline : 15454 Company Secretary’s Office
Telephone : +603-2034 7751 (for power outage or Tenaga Nasional Berhad)
Facsimile : +603-2026 3712 TNB street light malfunction)
: 1-300-88-5454
PRINCIPAL BANKER (for billing and account enquiries)
Malayan Banking Berhad Online Whistle : wbis.tnb.com.my
196001000142 (3813-K) Blowing
Information
System
Toll Free : 1-800-888-862
@TNB Careline
@Tenaga_Nasional
@TENAGAofficial
@tenaga_nasional
@Tenaga Nasional Berhad

Creating Value Through Strong Governance Sustainability Statement Financial Statements ADDITIONAL INFORMATION
Pages 350 - 358
STATISTICS OF SHAREHOLDINGS
As at 21 March 2022
SHARE CAPITAL
Issued Shares : 5,726,091,371 Ordinary Shares

One (1) Special Rights Redeemable Preference Share
Voting Right : One (1) vote per ordinary share
ANALYSIS BY SIZE OF SHAREHOLDINGS
No. of Shareholders Total No. of Shareholders No. of Issued Shares Total No. of Issued Shares
Size of Shareholdings
Malaysian Foreigner No. % Malaysian Foreigner No. %
1 - 99 1,975 35 2,010 1.58 60,378 1,008 61,386 0.00

100 - 1,000 56,757 392 57,149 45.03 33,071,245 228,082 33,299,327 0.58
1,001 - 10,000 57,353 580 57,933 45.64 195,672,292 2,388,815 198,061,107 3.46
10,001 - 100,000 8,313 413 8,726 6.88 204,924,840 15,173,683 220,098,523 3.84
100,001 - less than 5% of issued shares 652 456 1,108 0.87 1,396,972,672 669,345,214 2,066,317,886 36.09
5% and above of issued shares 4 0 4 0.00 3,208,253,142 0 3,208,253,142 56.03
Total 125,054 1,876 126,930 100.00 5,038,954,569 687,136,802 5,726,091,371 100.00
ANALYSIS OF EQUITY STRUCTURE
No. of Shareholders No. of Issued Shares % of Issued Shares

No. Category of Shareholders
Malaysian Foreigner Malaysian Foreigner Malaysian Foreigner
1. Individuals 98,154 726 370,145,847 5,857,578 6.46 0.10

2. Body Corporate
a. Banks/Finance Companies 102 1 1,693,409,386 46 29.58 0.00
b. Investment Trusts/Foundation/Charities 7 0 262,362 0 0.00 0.00
c. Other Type of Companies 809 17 49,980,637 6,941,237 0.87 0.12
3. Government Agencies/Institutions 20 0 1,468,124,986 0 25.64 0.00
4. Nominees 25,962 1,132 1,457,031,351 674,337,941 25.45 11.78
5. Others 0 0 0 0 0.00 0.00
Total 125,054 1,876 5,038,954,569 687,136,802 88.00 12.00

DIRECTORS’ SHAREHOLDINGS
No. of Shares
No. Name of Directors
Direct Interest %
1. Dato’ Sri Hasan bin Arifin (Appointed w.e.f. 1 October 2021) 0 0.00
2. Datuk Ir. Baharin bin Din (Appointed w.e.f. 1 March 2021) 80,700 0.00
3. Datuk Seri Asri bin Hamidin @ Hamidon 10,000 0.00
4. Datuk Amran Hafiz bin Affifudin 0 0.00
5. Juniwati Rahmat Hussin 0 0.00
6. Gopala Krishnan K.Sundaram 0 0.00
7. Ong Ai Lin 0 0.00
8. Dato’ Roslina binti Zainal 18,400 0.00
9. Dato’ Ir. Nawawi bin Ahmad 0 0.00
10. Datuk Rawisandran a/l Narayanan 0 0.00
11. Datuk Lau Beng Wei (Appointed w.e.f. 1 December 2021) 0 0.00
12. Dato’ Merina binti Abu Tahir (Appointed w.e.f. 1 February 2022) 0 0.00
13. Faisal @ Pisal bin Abdul Ghani (Appointed w.e.f. 1 March 2022) *25,000 0.00
(Alternate Director to Datuk Seri Asri bin Hamidin @ Hamidon)
Notes:
* Faisal @ Pisal bin Abdul Ghani
- Own Account (20,000)
- Registered with Maybank Nominees (Tempatan) Sdn. Bhd. (5,000)
SUBSTANTIAL SHAREHOLDERS ACCORDING TO THE REGISTER OF SUBSTANTIAL SHAREHOLDERS
No. Name of Substantial Shareholders No. of Shares %
1. Khazanah Nasional Berhad* 1,464,756,853 25.58

2. Employees Provident Fund Board** 917,447,327 16.02
3. Amanah Saham Bumiputera*** 557,399,500 9.73
4. Kumpulan Wang Persaraan (Diperbadankan)**** 419,178,525 7.32
Total 3,358,782,205 58.65
Notes:
* Khazanah Nasional Berhad
- Registered with Citigroup Nominees (Tempatan) Sdn. Bhd. (4,236,039 )
- Registered with CGS - CIMB Nominees (Tempatan) Sdn. Bhd. (4,911,590)
** Registered with Citigroup Nominees (Tempatan) Sdn. Bhd.
*** Registered with AmanahRaya Trustees Berhad
**** Kumpulan Wang Persaraan (Diperbadankan)
- Registered with Citigroup Nominees (Tempatan) Sdn. Bhd. (33,244,734)
TOP 30 SECURITIES ACCOUNT HOLDERS
No. Name of Shareholders No. of Shares %
1. Khazanah Nasional Berhad 1,455,609,224 25.42

2. Citigroup Nominees (Tempatan) Sdn. Bhd. 809,310,627 14.13
Employees Provident Fund Board
3. AmanahRaya Trustees Berhad 557,399,500 9.73
Amanah Saham Bumiputera
4. Kumpulan Wang Persaraan (Diperbadankan) 385,933,791 6.74
5. Permodalan Nasional Berhad 155,611,800 2.72

Pages 350 - 358
No. Name of Shareholders No. of Shares %

Amanah Saham Malaysia 2 - Wawasan
Amanah Saham Malaysia
8. Cartaban Nominees (Tempatan) Sdn. Bhd. 55,785,750 0.98
PAMB For Prulink Equity Fund
9. HSBC Nominees (Asing) Sdn. Bhd. 54,144,251 0.95
JPMCB NA For Vanguard Emerging Markets Stock Index Fund
JPMCB NA For Vanguard Total International Stock Index Fund
Great Eastern Life Assurance (Malaysia) Berhad (Par 1)
12. Lembaga Tabung Haji 47,685,400 0.83
Amanah Saham Bumiputera 2
14. Maybank Nominees (Tempatan) Sdn. Bhd. 43,000,000 0.75
Maybank Trustees Berhad For Public Ittikal Fund (N14011970240)
15. Cartaban Nominees (Asing) Sdn. Bhd. 41,507,262 0.73
Exempt AN For State Street Bank & Trust Company (West CLT OD67)
Amanah Saham Malaysia 3
Amanah Saham Bumiputera 3 - Didik
Employees Provident Fund Board (Nomura)
19. Pertubuhan Keselamatan Sosial 32,210,820 0.56
Public Islamic Dividend Fund
Public Ittikal Sequel Fund
JPMCB NA For Vanguard Fiduciary Trust Company Institutional
Total International Stock Market Index Trust II
Public Islamic Equity Fund
HSBC BK PLC For The Prudential Assurance Company Limited
Employees Provident Fund Board (CIMB PRIN)
Great Eastern Life Assurance (Malaysia) Berhad (Par 3)
27. Cartaban Nominees (Tempatan) Sdn. Bhd. 18,288,450 0.32
PBTB For Takafulink Dana Ekuiti
28. DB (Malaysia) Nominee (Asing) Sdn. Bhd. 15,929,600 0.28
BNYM SA/NV For People’s Bank Of China (SICL ASIA EM)
Public Islamic Select Enterprises Fund
JPMCB NA For Blackrock Institutional Trust Company, N.A.
Investment Funds For Employee Benefit Trusts
Total 4,299,760,929 75.09

NET BOOK VALUE OF LAND AND BUILDINGS
354
LAND BUILDINGS
Property
List Leasehold Freehold Total Built-Up Total
About This Report
No. of Area NBV No. of Area NBV No. of Area NBV Area NBV
Location Lots (sq M) (RM’000) Lots (sq M) (RM’000) Lots (sq M) (RM’000) No. (sq M) (RM’000)
(1) (2) (3) (4) (5) (6) (1+4) (2+5) (3+6) (7) (8) (9)
Perlis 51 156,976 1,680 412 88,183 10,081 463 245,159 11,761 64 6,433 18,431
Kedah 299 1,058,263 14,735 789 2,817,145 126,785 1,088 3,875,408 141,520 364 103,869 227,923
Pulau Pinang 195 693,528 83,914 703 988,909 103,337 898 1,682,437 187,251 375 153,652 784,699
Perak 795 6,164,128 322,695 1,256 10,141,279 388,618 2,051 16,305,407 711,313 1,016 677,948 2,464,760
Selangor 1,009 12,975,256 593,441 1,748 4,820,695 920,961 2,757 17,795,951 1,514,402 1,868 928,931 2,809,011
W.Persekutuan 383 288,394 60,105 539 615,138 210,110 922 903,532 270,215 712 205,794 795,858
TENAGA NASIONAL BERHAD • Integrated Annual Report 2021

Putrajaya/Cyberjaya 9 759,954 13,212 16 1,554 1,706 25 761,508 14,918 65 8,905 38,229
We Are TNB
N.Sembilan 287 1,808,571 135,716 753 1,113,897 250,432 1,040 2,922,468 386,148 258 392,144 1,107,898
Melaka 365 640,502 22,729 1,063 233,320 318,445 1,428 873,822 341,174 91 161,008 213,749
Johor 960 3,485,668 427,711 1,346 1,005,893 315,995 2,306 4,491,561 743,706 554 222,746 1,581,983
Pahang 388 3,249,727 51,652 1,035 293,437 313,364 1,423 3,543,164 365,016 427 375,165 3,651,617
Terengganu 366 6,977,714 29,573 374 11,009,770 142,824 740 17,987,484 172,397 299 560,153 1,678,933
Kelantan 364 1,288,363 8,771 372 2,296,831 27,828 736 3,585,194 36,599 343 352,660 791,414
Sabah 356 6,262,761 80,530 60 4,501,754 35,523 416 10,764,515 116,053 2,748 651,954 416,155
Kuwait 0 0 0 0 0 0 0 0 0 3 1,000 235
United Kingdom 77 6,523,128 214,176 0 0 0 77 6,523,128 214,176 0 0 0
Total 5,904 52,332,933 2,060,640 10,466 39,927,805 3,166,009 16,370 92,260,738 5,226,649 9,187 4,802,362 16,580,895
From Our Leadership
The land and buildings comprise power stations, mini hydros, jetties, dams, substations, residential houses, apartments, holiday bungalows, office buildings, warehouses, stores and workshops.
Creating Continued Value
Pages 350 - 358
NOTICE OF THE 32 ND ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN THAT the Thirty Second Annual General Meeting (32nd AGM) of Tenaga Nasional Berhad (TNB or
the Company) will be held on Thursday, 2 June 2022 at 10.00 a.m., virtually via Remote Participation and Voting (RPV) at
Dewan Seminar, Kompleks Balai Islam An-Nur, Ibu Pejabat Tenaga Nasional Berhad, No. 129, Jalan Bangsar, 59200
Kuala Lumpur, Malaysia (the Broadcast Venue) to transact the following businesses:
AGENDA
AS ORDINARY BUSINESS:
1. To receive the Audited Financial Statements for the Financial Year ended 31 December 2021 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) Datuk Amran Hafiz bin Affifudin Ordinary Resolution 1

(ii) Ong Ai Lin Ordinary Resolution 2
(iii) Dato’ Roslina binti Zainal Ordinary Resolution 3
Please refer to Explanatory Note (b)
3. To re-elect the following Directors who were appointed to the Board and retire in accordance with Clause 63(2) of the
Company’s Constitution and being eligible offer themselves for re-election:
(i) Dato’ Sri Hasan bin Arifin Ordinary Resolution 4

(ii) Datuk Lau Beng Wei Ordinary Resolution 5
(iii) Dato’ Merina binti Abu Tahir Ordinary Resolution 6
Please refer to Explanatory Note (b)
4. To approve the payment of the following Non-Executive Directors’ fees from the 32nd AGM until the next Annual General
Meeting (AGM) of the Company:
(i) Director’s fee of RM30,000.00 per month for Dato’ Sri Hasan bin Arifin, Non-Executive Chairman
(ii) Director’s fee of RM7,000.00 and RM5,000.00 per month for TNB Subsidiaries Category II and III respectively to
Dato’ Sri Hasan bin Arifin, Non-Executive Chairman Ordinary Resolution 7
(iii) Director’s fee of RM20,000.00 per month for the following Non-Executive Directors:
a. Datuk Seri Asri bin Hamidin @ Hamidon Ordinary Resolution 8
b. Juniwati Rahmat Hussin Ordinary Resolution 9
c. Gopala Krishnan K.Sundaram Ordinary Resolution 10
d. Ong Ai Lin Ordinary Resolution 11
e. Dato’ Roslina binti Zainal Ordinary Resolution 12
f. Dato’ Ir. Nawawi bin Ahmad Ordinary Resolution 13
g. Datuk Rawisandran a/l Narayanan Ordinary Resolution 14
h. Datuk Lau Beng Wei Ordinary Resolution 15
i. Dato’ Merina binti Abu Tahir Ordinary Resolution 16
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 RM1,956,200.00 from the 32nd AGM until the next AGM of the Company. Ordinary Resolution 17
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 18
Please refer to Explanatory Note (d)

AS SPECIAL BUSINESS:
To consider and if thought fit, to pass the following Resolution:
7. Proposed Grant and Allotment of Shares to Akmal Aziq bin Baharin.
“THAT the Board (save for Datuk Ir. Baharin bin Din) be and is hereby authorised at any time and from time to time, to cause or
procure the offering and allocation to Akmal Aziq bin Baharin, Electrical Engineer of the Company, being Person Connected to
Datuk Ir. Baharin bin Din, of up to 900 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 to such terms and conditions of the LTIP By-Laws.”
“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 in accordance with the vesting of his Grant.”
Ordinary Resolution 19
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).
FURTHER NOTICE IS HEREBY GIVEN THAT for the purpose of determining a member who shall be entitled to attend this 32nd 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 26 May 2022. Only a depositor whose
name appears on the ROD as at 26 May 2022 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
29 April 2022
EXPLANATORY NOTES ON ORDINARY BUSINESSES:
(a) Agenda No. 1 is meant for discussion only as Section 340(1)(a) of the Act does Through the engagement of Willis Towers Watson (WTW) on 1 July 2021, as
not require shareholders’ approval for the Audited Financial Statements. As such, Independent Expert for 2021 Board Evaluation Assessment, the BNRC and Board
it is not put forward for voting. also considered the Board Evaluation Assessment including the Self and Peer
Assessment results of Datuk Amran Hafiz bin Affifudin, Ong Ai Lin, Dato’ Roslina
(b) Ordinary Resolutions 1 to 6 – Proposed Re-election of Directors in binti Zainal and Dato’ Sri Hasan bin Arifin, and agreed that they have met the
accordance with Clauses 64(1) and 63(2) of the Company’s Constitution Board’s expectation in terms of experience, expertise, integrity, competency,
commitment and individual contribution by continuously performing their
Clause 64(1) of the Company’s Constitution provides among others, that one- duties diligently as Company Directors.
third (1/3) of the Directors at the time being of whom have been longest in
office shall retire by rotation at the AGM of the Company and shall be eligible for The Board on 30 September 2021 approved, with the concurrence of Minister of
re-election. Finance (Incorporated), the Special Shareholder of TNB for the appointment of
Dato’ Sri Hasan bin Arifin as Chairman, Non-Independent Non-Executive Director
Clause 63(2) of the Company’s Constitution provides among others, that the with effect from 1 October 2021.
Directors shall have power at any time and from time to time to appoint any
other person to be a Director of the Company either to fill a casual vacancy or as The Board on 25 November 2021 approved, on the appointment of Datuk
an addition to the existing Directors. Any Director so appointed shall hold office Lau Beng Wei as Independent Non-Executive Director with effect from
only until the next following AGM of the Company and shall then be eligible for 1 December 2021. Subsequently the Board on 27 January 2022 had approved on
re-election. the appointment of Dato’ Merina binti Abu Tahir as Independent Non-Executive
Director with effect from 1 February 2022.
The Board with the assistance of the Board Nomination and Remuneration
Committee (BNRC) conducted an independence assessment of all Independent Pursuant to Clause 63(2) of the Company’s Constitution, Dato’ Sri Hasan bin
Directors including Ong Ai Lin, Dato’ Roslina binti Zainal and Datuk Lau Beng Arifin, Datuk Lau Beng Wei and Dato’ Merina binti Abu Tahir are standing for
Wei, and are satisfied that they have complied with the independence criteria as re-election. With their expertise/experience that they bring to the Board, shall
required by the Main Market Listing Requirements of Bursa Malaysia Securities further strengthen the Board composition and dynamics.
Berhad (MMLR) and continue to bring independent and objective judgment to
the Board deliberations. The BNRC and Board hereby recommend for the re-election of each Director who
is retiring at the 32nd AGM.

Pages 350 - 358
(c) Ordinary Resolutions 7 to 17 – Non-Executive Directors’ Remuneration
Section 230(1) of the Act stipulates among others that the fees and any benefits payable to the Directors of a listed company and its subsidiaries shall be approved at a
general meeting. As agreed by the Board, the shareholders’ approval shall be sought at the 32nd AGM on the Non-Executive Directors’ remuneration of the Company and TNB
Subsidiaries Category II and III through separate resolutions as follows:
(i) Ordinary Resolutions 7 to 16 on the payment of Non-Executive Directors’ fees for the Non-Executive Chairman and each Non-Executive Director separately from the
32nd AGM until the next AGM of the Company.
(ii) Ordinary Resolution 17 on the payment of benefits payable (excluding Non-Executive Directors’ fees) to the Non-Executive Directors from the 32nd AGM until the next
AGM of the Company.
The last increment of the Non-Executive Directors remuneration/benefits was made in 2013. The Board on 30 September 2021 has engaged WTW to undertake Non-Executive
Directors’ Remuneration Benchmarking exercise. Based on the findings, the Non-Executive Directors’ remuneration, inclusive of benefits, is generally aligned with the market
practice. It is recommended for the existing remuneration be retained and reviewed in three (3) years time.
The proposed Ordinary Resolutions 7 to 17 for the payment of Directors’ fees and benefits payable to the Non-Executive Directors of the Company from the 32nd AGM until
the conclusion of the next AGM are tabled herewith in line with the provision of the Act and Guidance 7.2 of the Malaysian Code on Corporate Governance 2021 to ensure
full disclosure.
No separate resolution for Khazanah Nasional Berhad (Khazanah) Nominee Director, Datuk Amran Hafiz bin Affifudin, in lieu of Khazanah’s waiver of Director’s fees and
meeting allowances to its Nominee Directors who are Khazanah employees. The said waiver is applicable to all Khazanah’s investee companies.
The Non-Executive Directors remuneration policy of TNB and its subsidiaries is as follows:
Description TNB Board TNB Subsidiaries

Chairman Non-Executive Chairman Non- Executive
Directors Directors**
Monthly fixed fees RM30,000 per month RM20,000 per month Category I – RM20,000 Category I – RM15,000
Category II – RM7,000 Category II – RM5,000
Category III – RM5,000 Category III – RM3,000
*Meeting Allowances
(per meeting)
(i) Board RM2,500 RM2,000 Category I – RM2,000 Category I – RM1,500
Category II & III – RM1,500 Category II & III – RM1,000
(ii) Board Committees RM2,000 RM1,500 Category I – RM1,500 Category I – RM1,000
Category II & III – RM1,000 Category II & III – RM800
Benefits Medical, Business Peripherals, Utilities Bills, Travelling &
Telecommunication and other claimable benefits
* subject to not more than three (3) payments in a month.

** save for TNB Non-Executive Chairman, none of TNB Non-Executive Directors are currently on the board of TNB subsidiaries.
In determining the estimated total amount of benefits payable, the Board had considered various factors including the number of scheduled and special meetings for the
Board, Board Committees and boards of subsidiaries along with the number of Non-Executive Directors involved.
Payment of Non-Executive Directors’ benefits payable will be made by the Company and its subsidiaries on a monthly basis and/or as and when incurred, provided that the
proposed Ordinary Resolution 17 be passed at the 32nd AGM. The Board is of the view that it is fair and justifiable for the payment of benefits payable to the Non-Executive
Directors be made as and when incurred, after the Non-Executive Directors have discharged their responsibilities and rendered their services to the Company.
Details of the Directors’ Remuneration for the Financial Year ended 31 December 2021 are enumerated on page 96 of the Corporate Governance Overview Statement of this
Integrated Annual Report.
(d) Ordinary Resolution 18 – Re-appointment of Auditors
Based on the External Auditors Assessment Result for the Financial Year under review, the Board Audit Committee and Board are satisfied with the quality of service, adequacy
of resources provided, communication, independence, objectivity and professionalism demonstrated by the External Auditors in carrying out their duties. Being satisfied
with the External Auditors’ performance, the Board recommends their re-appointment for shareholders’ approval at the forthcoming AGM.
EXPLANATORY NOTES ON SPECIAL BUSINESS:
(e) Ordinary Resolution 19 – Proposed Grant and Allotment of Shares
Pursuant to Paragraph 6.06 of the MMLR, any offer and issuance of shares to the director, major shareholder or chief executive and persons connected with them must be
approved by the shareholders at the general meeting stating the specific allotment.
The proposed Ordinary Resolution 19, if passed, is to empower the Directors at any time and from time to time to cause or procure the offering and the allocation to Akmal
Aziq bin Baharin, being Person Connected to Datuk Ir. Baharin bin Din, such number of TNB Shares as they shall deem fit, which will be vested to him for the remaining LTIP
period until 29 April 2025, subject to such terms and conditions of the LTIP By-Laws, which was approved at the Extraordinary General Meeting of the Company held on
18 December 2014.
Datuk Ir. Baharin bin Din and Person Connected to him will abstain from voting on Ordinary Resolution 19.

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 participate and vote at the Meeting is entitled to appoint not more than two (2) proxies to participate 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 at 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 48 hours before the time appointed for the taking of the poll or
no later than 31 May 2022 at 12.00 p.m.
7. Alternatively, you may lodge the Proxy Form online via the Boardroom Smart Portal at https://investor.boardroomlimited.com or by email to
bsr.helpdesk@boardroomlimited.com before the abovementioned cut-off time. For further details on proxy lodgement, kindly refer to the
Administrative Details of 32nd AGM.
8. Pursuant to Paragraph 8.29A(1) of the MMLR, voting at the 32nd AGM of the Company will be conducted by poll.
STATEMENT ACCOMPANYING NOTICE OF

THE 32 ND ANNUAL GENERAL MEETING
(Pursuant to Paragraph 8.27(2) and Appendix 8A 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 profiles of the retiring Directors are set out in Board of Directors’ Profile on
the Company’s Constitution and seeking for re-election: pages 59 to 71 of this Integrated Annual Report.
(i) Datuk Amran Hafiz bin Affifudin Save for Dato’ Roslina binti Zainal who holds 18,400 ordinary shares in the
(ii) Ong Ai Lin Company, none of the above Directors has any interest in the securities of the
(iii) Dato’ Roslina binti Zainal Company or its Subsidiaries.
The Directors who were appointed to the Board and are retiring in accordance
with Clause 63(2) of the Company’s Constitution and seeking for re-election:
(i) Dato’ Sri Hasan bin Arifin

(ii) Datuk Lau Beng Wei
(iii) Dato’ Merina binti Abu Tahir

This page has been intentionally left blank.
This page has been intentionally left blank.
PROXY FORM
32ND 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 appoint:
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 32ND ANNUAL GENERAL MEETING (32nd AGM) of
TENAGA NASIONAL BERHAD (“TNB” or “the Company”) to be held virtually via Remote Participation and Voting (RPV) at Dewan Seminar, Kompleks Balai Islam An-Nur, Ibu Pejabat
Tenaga Nasional Berhad, No. 129, Jalan Bangsar, 59200 Kuala Lumpur, Malaysia (the Broadcast Venue) on THURSDAY, 2 JUNE 2022 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. Datuk Amran Hafiz bin Affifudin ORDINARY RESOLUTION 1
2. Ong Ai Lin ORDINARY RESOLUTION 2
3. Dato’ Roslina binti Zainal ORDINARY RESOLUTION 3
Re-election of the following Directors who retire in accordance with Clause 63(2) of the Company’s Constitution:
4. Dato’ Sri Hasan bin Arifin ORDINARY RESOLUTION 4
5. Datuk Lau Beng Wei ORDINARY RESOLUTION 5
6. Dato’ Merina binti Abu Tahir ORDINARY RESOLUTION 6
Approval for payment of the following Non-Executive Directors’ fees from the 32 AGM until the next Annual General Meeting (AGM) of the Company:
nd
7. (i) Director’s fee of RM30,000.00 per month for Dato’ Sri Hasan bin Arifin, Non-Executive Chairman ORDINARY RESOLUTION 7
(ii) Director’s fee of RM7,000.00 and RM5,000.00 per month for TNB Subsidiaries Category II and III
respectively to Dato’ Sri Hasan bin Arifin, Non-Executive Chairman
8. (iii) Director’s fee of RM20,000.00 per month for the following Non-Executive Directors:
a. Datuk Seri Asri bin Hamidin @ Hamidon ORDINARY RESOLUTION 8
b. Juniwati Rahmat Hussin ORDINARY RESOLUTION 9
c. Gopala Krishnan K.Sundaram ORDINARY RESOLUTION 10
d. Ong Ai Lin ORDINARY RESOLUTION 11
e. Dato’ Roslina binti Zainal ORDINARY RESOLUTION 12
f. Dato’ Ir. Nawawi bin Ahmad ORDINARY RESOLUTION 13
g. Datuk Rawisandran a/l Narayanan ORDINARY RESOLUTION 14
h. Datuk Lau Beng Wei ORDINARY RESOLUTION 15
i. Dato’ Merina binti Abu Tahir ORDINARY RESOLUTION 16
9. Approval for payment of benefits payable to the Non-Executive Directors (excluding Non-Executive Directors’ ORDINARY RESOLUTION 17
fees) from the 32nd AGM until the next AGM of the Company
10. Re-appointment of Messrs PricewaterhouseCoopers PLT as Auditors of the Company and to authorise the ORDINARY RESOLUTION 18
Directors to fix their remuneration
SPECIAL BUSINESS
11. Proposed Grant and Allotment of Shares to Akmal Aziq bin Baharin ORDINARY RESOLUTION 19
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 , 2022

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 26 May 2022 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 participate and vote at the Meeting is entitled to appoint not more than two (2) proxies to participate 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. The Proxy Form may be downloaded from the website at www.tnb.com.my. Duly completed Proxy Form must be deposited at 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 48 hours before the time appointed for the taking of the poll or no later than 31 May
2022 at 12.00 p.m.
8. Alternatively, you may lodge the Proxy Form online via the Boardroom Smart Portal at https://investor.boardroomlimited.com or by email to bsr.helpdesk@boardroomlimited.com before the
abovementioned cut-off time. For further details on proxy lodgement, kindly refer to the Administrative Details of 32nd AGM.
9. Pursuant to Paragraph 8.29A(1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, voting at the Meeting will be conducted by poll.
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 4515/4517 Fax: +603 2107 1086 Email: cosec@tnb.com.my
www.tnb.com.my

TNB Iar 2021

Uploaded by

Copyright:

Available Formats

TNB Iar 2021

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

TNB Iar 2021

Uploaded by

Copyright:

Available Formats

INTEGRATED

The cover for TNB’s Integrated

Scan this QR code to

06 We Are TNB 58 Our Board at a Glance 182 Directors’ Report

350 Corporate Information

ABOUT THIS REPORT

This Integrated Annual Report Our Capitals

Social and Relationship Capital

02 TENAGA NASIONAL BERHAD • Integrated Annual Report 2021

ABOUT THIS REPORT

Materiality Management Discussion & Analysis

REVIEW OF Pages 26-30 for more information

the Malaysian Financial Reporting Standards

Forward-looking Statements Supplementary Report

TENAGA NASIONAL BERHAD • Integrated Annual Report 2021 03

• We uphold the highest ethical • We know who we are, and we stand

• We trust each other, believe in

INDUSTRIAL COMMERCIAL RESIDENTIAL

PROFILE Commercial 1,721,636

BREAKDOWN OF CUSTOMERS Industrial 34,497

06 TENAGA NASIONAL BERHAD • Integrated Annual Report 2021

OUR INVESTMENT CASE

PROFITABILITY (RM Million)

KEY BALANCE SHEET DATA (RM Million)

Unit Return CAPEX Average Total

* Based on adjusted net profit million per MT million

Total Market Net Profit Attributable Operating Expenses EBITDA

TENAGA NASIONAL BERHAD • Integrated Annual Report 2021 07

OUR INVESTMENT CASE

GROUP QUARTERLY FINANCIAL PERFORMANCE

Revenue 11,478.0 12,441.0 12,975.4 15,735.1 52,629.5

Operating income 176.7 227.3 144.4 369.7 918.1

Operating profit 2,327.8 2,123.3 2,058.9 1,573.0 8,083.0

Dividend per share (sen) - 22.0^ - 18.0* 40.0

Revenue 11,654.5 10,890.8 11,106.4 10,324.3 43,976.0

Operating income 215.5 130.0 486.7 229.2 1,061.4

Operating profit 2,223.8 1,822.2 1,857.8 1,455.0 7,358.8

Dividend per share (sen) - 22.0^ - 58.0*# 80.0

08 TENAGA NASIONAL BERHAD • Integrated Annual Report 2021

OUR INVESTMENT CASE

SIX-YEAR GROUP FINANCIAL SUMMARY

31.08.2017 31.12.2017 31.08.2018 31.12.2019 31.12.2020 31.12.2021

OPERATING RESULTS (RM Million)1

KEY BALANCE SHEET DATA (RM Million)2

TENAGA NASIONAL BERHAD • Integrated Annual Report 2021 09

OUR INVESTMENT CASE

SIX-YEAR GROUP GROWTH SUMMARY

NET PROFIT ATTRIBUTABLE TO OWNERS

2017 47,417 2017 6,904 2017 57,585

2017* 15,692 2017* 2,622 2017* 57,989

2018 50,393 2018 3,724 2018 59,052

2019 50,940 2019 4,529 2019 59,282

2020 43,976 2020 3,593 2020 57,450

2021 52,630 2021 3,662 2021 58,392

TOTAL ASSETS TOTAL BORROWINGS RETURN ON ASSETS

2017 142,012 2017 38,847 2017 5.4

2017* 2017* 2017*

2018 153,695 2018 47,832 2018 3.2