segment, and correspondingly load utilization has accelerated substantially, rising from 845 MW in March 2025 to 1,054 MW in March 2026, indicating a steady, robust, and highly predictable ramp-up of operational capacity. Next.

In terms of sales contribution, shopping malls, businesses, and accommodation services accounted for 18% of total unit sold, while other sub-sectors contributed 15%. Data centers currently accounted for 6% of our total sales in the first quarter of 2026.

We are honored to have received the Partnership and Ecosystem Collaboration Team Award at the Data Centre Thought Infrastructure Summit 2026, reinforcing our role as a key enabler of Malaysia's digital and data center ecosystem through our Green Lane Pathway initiative. Ladies and gentlemen, turning to our technical performance, our sustained operational application throughout the quarter continues to underpin our earnings resilience, providing a robust foundation for the group's overall performance.

On generation side, the EF factor, equivalent plant availability factor, or input has improved significantly to 91.4% versus 82% last year, reflecting a stronger plant reliability and operation performance across our generation portfolio. Our network performance continued to remain at world-class level.

Our transmission system minutes remained at zero, demonstrating sustained grid reliability and uninterrupted network performance throughout the quarter. For distribution, the System Average Interruption Duration Index, or SAIDI, recorded 11.72 minutes, well within our internal threshold of 47 minutes, reflecting the continued strength and reliability of our distribution network.

Overall, the group's strong technical and operational performance continues to reinforce our earnings, operational stability, and readiness to support growing electricity demand while advancing the nation's energy transition agenda. Moving on to our recent achievement, we continue to strengthen TNB's renewable energy ecosystem through the new BESS deployment, renewable energy expansion, and initiatives supporting long-term system reliability.

We successfully completed and commenced operation of the first 100 MW, 400 MWh BESS Santong project in April 2026, and this marks Malaysia's first grid-connected, full grid-forming BESS project, and was completed ahead of schedule, demonstrating our execution capabilities while enhancing grid flexibility to support increasing renewable energy penetration and intermittency management. Secondly, our Kenyir Hydro Power Stations PPA has been extended from 14th of September to 31st of August 2030.

This extension further strengthens our system reliability, particularly in the eastern region of Peninsular Malaysia. In addition, under the CRES program, we completed the execution of bilateral energy supply contract, or BESc, with Day One in March 2026 for two major renewable energy projects, centralized solar park and hybrid hydro-floating solar projects in Kenyir.

Lastly, two CGPP projects, namely Setiakawan Energy and Selarong Pertama Energy, in which we hold 30% equity stake, have successfully achieved their commercial operation date in March and April 2026, respectively. Overall, this initiative further strengthens renewable energy portfolio and support growing demand for green energy solutions while preserving grid's reliability and energy security.

Building on TNB's recent operational and strategic achievement, we continue to strengthen our growth momentum through strategic partnerships across digital infrastructure, smart city development, and green mobility. Our collaboration with Telekom Malaysia focuses on accelerating green energy and digital infrastructure solutions, while partnership with PKNS support sustainable urban development through district cooling system initiative in Shah Alam.

Meanwhile, our collaboration with Maybank marks TNB Electron's first partnership with a financial institution, further expanding the EV charging ecosystem and supporting Malaysia's green mobility agenda. Overall, this partnership reinforced TNB's long-term growth aspirations while supporting Malaysia's broader energy transition agenda.

I will now pass to CFO to provide a detailed overview of the first quarter financial performance. Go ahead, Badrul.

Thank you, Datuk. I hope most of you have seen our numbers last night.

I've seen some reports. The rest of you guys waiting for today's.

I've seen Hasmi and all has smiled. I hope the number is satisfactory.

We do believe that for our first quarter numbers, we have delivered a stable first quarter profit, which is actually driven by overall improvement of our businesses across all divisions. That's why you have been able to see year-on-year improvement across revenue, EBITDA, as well as core PAT of the company.

If you look at the revenue line, that's increased almost 1.1 billion to 17 billion. This is, of course, as a result of the increase in sale of electricity, as mentioned by Datuk earlier, and volume actually surged by 7% year-on-year in the first quarter, and this was underpinned by data center demand, which continue to be healthy, growing very fast.

Of course, it's small contribution of our sales still, but it's growing very fast, doubling the energy usage in one year, and demand now already at 1,000 90 1,000 MW already. Most importantly, if you look at the malls and businesses just now, which makes up a larger portion of our revenue, continue to grow healthily as well.

This is also indication of the overall growth of the economy. On top of that, of course, we would not deny the fact that the implementation of more cost-reflective RP4 tariff has actually pushed the revenue so that we are able to recover all the investments that we are doing.

If we move on to EBITDA, you'll see that there is a 335 million increase, equivalent to 6.5% to 5.5 billion. To us, this is important, and we're tracking this very closely across the group because this reflect improved efficiency of the company.

EBITDA margin last year was 32.7%, now it's gone up to 34%. This is something that is very close to the management when we need to make sure that cost continue to be contained despite scale-up delivery of the capex, which is much higher last year and this year.

This additional revenue, together with a much more efficient cost control, have enabled us to deliver the adjusted core PAT, adjusted for forex and MFRS 16, of 1.242.5 billion. That's a 6.5% increase.

To us, this is a reflection of the fact that most of these earnings are underpinned by the stability of our regulated business. All in all, I hope you have seen that we have a good start to the year, and we will continue to focus on delivery this year, together with prudent financial management, to deliver the expected financial performance for this year.

Moving along, if you look into capital management of the company, you should have been able to see as well that we are recording a much lower receivable, and actually we are taking a lot of time to make sure that we deploy capital proactively, but of course trying to source the most efficient cost of funding as well. This investment are obviously needed for us to continue growing, but gearing is a major source of this funding.

If you look at our trade receivables compared to March last year, despite a much higher revenue, it's actually lower at 4.1 billion against 4.4 billion that we recorded last year. This is important because you have seen that this is the success of APA framework, which continue to drive collection efficiencies and obviously giving us a much lower receivable collection as well.

Obviously, as far as trend is concerned, we are continue to be very stable below 30 days collection period, and that is a major focus for us as well this year. If you look into the second parameter on regulatory receivables, as of December last year, we had 1.9 billion receivables.

That has gone significantly down to 0.7 billion only as of March 2026. During the year, we actually received 1.3 billion, which is part of the ICPT payment for April to June last year.

If you would recall, RP4 implemented started from January, but we were still on the previous tariff up until June. These are the difference that has been recovered through ICPT.

This is obviously a very important payment for us because not only yes, we wanted to reduce the receivable, this is also a reflection of the fact that government continue to honor what is the framework of the IBR. Whatever that is due to TNB is recovered through quick funds accordingly.

This should give you more confidence that the framework continue to be honored by government. If we move to the third pillar on strategic fundraising and disciplined capital allocation, you would notice that in 2025, we actually reduced our cash holding and pared down a lot of debt to strengthen our balance sheet in 2025.

We know and acknowledge the fact that there is massive investment that needs to be made in '26 and 2027. This year, we are embarking on a lot of fundraising, but we want to make sure that we deploy this capital properly.

This is important for us to spend both regulated and non-regulated capex to fuel the growth of the company going forward. Far, the first issuance we actually did, third issuance of GenCo IMTN sukuk program, which was a 10 billion program, we issued another 1.5 billion in March, tenure between 10 to 25 years, and we have been able to sustain quite a good uptake from the investors.

This was actually corporate sukuk at GenCo level, but it's being used exclusively for our Nenggiri hydro project as well as Sungai Perak hydro life extension project. It is green and all the label that is needed for SRI.

That was quite successful. Then in the second program, we had our TNB Renewables, which issued another 1.05 billion ASEAN Green SRI Sukuk Wakalah.

This is to fund our LSS5 development. With the project being actually pure green sukuk and offtake against TNB's long-term PPA, we actually issued multiple tranches of serial maturity from 3, 4, 5, all the way up to 19 years.

We got a very good take-up as well. This is a project financing at the project level, rated AA without TNB's corporate guarantee, but we actually delivered the funding cost, which is equivalent to AAA of TNB's listed category.

This is because we really got a very good demand, and we have been able to push everybody into much lower, tighter margin under a book-building process. With that two program already done, you would notice as well in April, we established another IMTN sukuk program of 10 billion ringgit.

This would be to finance TNB's regulated business for this year and next year. We are targeting the first issuance of around 4 billion, which will be over the next few days.

We do foresee a good take-up as well, and we believe that this is a reflection of the fact that as far as capex requirements are concerned, we have a very good demand from the market. The depth of the capital market is there, and despite a little bit of geopolitical tension everywhere else in the world, we still have our favorable condition for fundraising this year, and we should be able to optimize our cost of debt further.

On that note, as far as the cost of debt for the company, 2025 was 4.63%, because of the lower cost of borrowing that we have raised over the last 3 months or so, that's gone down slightly to 4.62%. This is, of course, despite the fact that, of course, 95% of our debt are actually fixed rate.

For us, you will see much higher level of gearing this year, but these are all funding required to execute our capital for growth, either RAB or the non-regulated business on the generation side. If we dive in further into our capex program for the year, yes, as far as the group is concerned, regulated is 2.5 billion, but there is also 0.8 billion that we have already deployed for our non-regulated capex, given us a total of 3.3 billion.

For regulated capex, yes, that's actually spread out across the normal three pillars. A lot of it is going to security of supply, demand growth as well, actually same amount, with a little bit more going to energy transition.

Yes, even in the last quarters, we talk about the split between base and contingent capex, but I think as we guided earlier, for us, now it doesn't really matter anymore whether it's base or contingent because both carry the same impact on the P&L as far as the recognition of the income, where the base capex is recovered through the base tariff and the contingent capex will be recovered either through KWIE or through RP5 in the future, but with time value of money. We should be indifferent in that sense.

If we talk about what we have done this year, obviously we are optimizing the reliability of the system. Some of the projects that we have delivered in the first quarter includes the PMU 500 kV Sedenak West, which is around 29% completed already.

That's key to deliver some of the supply to our data center. For ECRL feeder station, 10 of them, we are already on testing stage.

Smart meter, which is a key component of us to enable TOU for all the consumers, that is continue to progress quite healthily. We installed close to 200,000 already this year, a target close to 1 million for the full year.

That brings up the total cumulative to date of already 5.8 million of smart meters enabled consumers. That's more than half of our consumer base today.

Datuk Sam talked just now about our very good system minutes as well as SAIDI minutes. That's continue to be enabled by continuous investment into distribution automation, which is key to us to enable continuous uninterrupted supply to the consumers.

That's already been deployed in 800 substation today this year, and cumulatively we have installed to more than 39,000 of our substations nationwide. That's obviously on regulated capex, which continue to be on track as per our earlier guidance last year that we spent 12 billion capex in regulated capex for 2025, and we guided for 12 to 13 billion numbers for 2026.

We are on track to deliver that. For non-regulated capex, this is two main projects that we are currently doing: Nenggiri project, which is as of March already 73% completed and is on track to COD by second quarter next year; and the other one, Sungai Perak hydro life extension project, where key refurbishment and enhancement activities ongoing, and we expect the first unit at Chenderoh to start operating by fourth quarter this year.

That is a 3- 4-years program where we are progressively refurbishment and replacing the units across Sungai Perak, and they will progressively coming into operation over the next 3, 4 years under a new PPA. Overall, I think this is a reflection of the fact that, yes, last year we scale up our capex from 2024 regulated 9 billion to 12 billion, and we continue to deliver on that momentum.

Yes, there is a much stricter required process for us to get the contingent capex approved, but that continue to be our focus. Once approval is there, we should be able to deliver the capex deployment as planned for the year.

That should continue to sustain the earnings of the company for 2026. With that, I'll pass back to Datuk Sam to cover a bit of the outlook and forward guidance for the company.

Thank you.

Ladies and gentlemen, moving forward, we remain highly encouraged by the positive demand outlook and will continue to execute our strategic priorities with absolute discipline and focus. We have revised our electricity demand growth projection upward between 4.5% to 5.5%, in line with Malaysia's projected GDP growth of between 4% to 5%.

In tandem with this growth trajectory, we are maintaining our group capex guidance of around 18 billion for the year, with approximately 13 billion allocated to the regulated business and 5 billion to the non-regulated business. These investments remain aligned with national priorities to strengthen grid resilience, support rising electricity demand, and accelerate Malaysia's energy transition agenda.

As we continue to expand and modernize our infrastructure, our focus remains on delivering projects that create long-term value and sustainable returns. We will continue to uphold a prudent capital management and optimize our capital structure through disciplined funding strategies.

To our shareholders, we remain committed in honoring our dividend policy while remaining steadfast in delivering long-term shareholder value aligned with the group's performance and financial position. Ultimately, our priority is to ensure sustainable business growth while supporting Malaysia's NETR aspiration and strengthening TNB's position as a leading provider of sustainable energy solutions.

Also pleased to share that we have published TNB Sustainability Statement within the integrated annual report 2025, highlighting the group's continued progress, commitments, and achievements across our ESG agenda. With that, I will conclude my presentation.

Thank you for your attention. Azim, pass it back to you.

This Dharmini from CGS. I have two questions.

First on the GenCo business, it was a very good set of numbers. Congratulations on that.

Could you please help articulate as to what drove that significant improvement? I do notice your efficiencies have improved in terms of operational numbers, but is this sustainable going forward?

Secondly on your fuel margins, it was negative this quarter, which seemed a little odd. Could you help us understand considering we're in a rising coal price environment?

Just one more question on data center demand, it continues to move up. Could you perhaps give us an update on the load utilization?

Is it tracking in line with the step load that they promised as part of the ESA? Thanks.

I think the number one, GenCo's numbers looking really good with a availability of 91%. This is in actual fact quite excellence.

Coming from the background of been running a coal plant with a 91% numbers, I'm truly happy to see that numbers. This is mainly driven by the excellence O&M process that we have put in place.

You look at, currently we are embarking on the continuous-based monitoring initiative that monitors the whole plant integrity and reliability. We look at also the continuous maintenance project and programs that we are doing, and we are looking also in terms of efficiency improvements.

We are also looking at how do we make our plant more reliable and also more efficient. That give us a good number.

This is on top of that you see the high number is actually also help during the session where we lost quite a number of big units in the system. This is where we actually push all our operating generation fleet to fully maximum load to enable them to actually provide the required power during the unavailability of some of the big coal plants in the system.

All right? Fuel margin negative.

All right. You want to take that?

Please.

I think we just need to take a step back and figure out actually the war started actually as of 1st March. January and February actually was lower coal prices, so that means.

Obviously, we have the weighted average of all our stocks. During that period, we had the negative margin in January and February, but that kind of stabilized or starting to reverse in March.

At the rate that things are, based on current rising prices, we think that the overall by towards the end of the year, that should reverse to a positive fuel margin. This is just purely a reflection of the first January and February low coal price, and you would recall that even in that January, February, that's why we had a rebate of the APA.

That shows how low was the coal prices then. That's why we had a negative fuel margin.

With now May, you have started to feel Okay, I'm sure all of you are the top 20, which is not protected by the APA. So 8.5 million of the consumers are protected by APA, but beyond that,

you still feel the surcharge of APA. That's already reflected that the rising coal price, and the fuel margin would eventually turn positive this year.

With regards to data center, utilization is increasing based on the ESA signed. In terms of utilization, we have increased from 2025 around 710 MW, whereas the declared demand is 1,464.

Comes to March, we see the load utilization is at 1054 MW as compared to the declared demand of 1,840 4 840, which is 80% 80 58% load against demand. We are tracking it very closely, and we believe that the data center load will take up as planned.

The likelihood is actually going to get more aggressive this year and also next year. There are plenty of applications actually coming in now.

We had a discussion with MITI recently where the possible of approval of another 16 data centers of hyperscalers scales that is coming into the system. The data centers business does provide a good opportunity for us in terms of electricity growth.

All right.

Hi both. I have two questions related to GenCo.

Number one, is it fair to annualize first quarter performance into the full year? Number two, in terms of stock currently that you guys have and also discussions with suppliers, particularly from Indonesia, how is it look like, especially there's potential export ban and Indonesian suppliers or the government making hard to export coal?

Appreciate we can get more clarity.

I had a discussion expecting a question from you today here just now with regards to the Indonesia's potential export, but okay, let me answer the number one question first. Is it fair to analyze Q1 results?

In my honest opinion of running a power plant for the last 33 years, anything can happen moving forward for the next quarters. We will try our best.

Once we record such a high performance during the first first quarter, what the stations will actually do is actually maintaining that numbers. There'll be hiccups here and there.

There'll be issues here and there. Basically the stations, the operations people knows what actions need to be taken in order for them to maintain that then.

They are trying to maintain for the coal plant a figures of less than 6% unplanned outage rate, and also 4% for the gas turbines and combined cycle. I hope for the best, but certainly we'll strive hard to actually maintain that sort of performance until the end of the year.

In terms of the coal supply potential export ban, recently Indonesian government has come up with what they call it managing the export expectations of the Indonesian government. What they do is actually now they are trying to consolidate the whole supply management into one entity that export Indonesian coal to the rest of the world.

Basically, you've got multiple coal suppliers that deal with one national entity. They call it BUNM, and then this BUNM will deal with the rest of the offtaker of the We have yet to receive a clear guidelines and policies and procedures how they're going to implement it.

I've asked the team to actually go out and engage with the Indonesian government, ESDM, Minerba, and the nations authorities, what will be their concrete procedures and plan in order for them to manage and handle this moving forward. In terms of coal supply to Malaysia, shouldn't be worried because we have a long-term contracts with all our coal suppliers.

They remain committed and adhere to whatever the contractual obligations that they have currently. Rest assured, no problem.

I don't think they'll pull the similar stunt like they did in 2022 in between in January 2022. They put a stop and coal embargo during that period.

This is just a matter of what we call it administrative procedure that they have to in order for them to protect the coal revenue that actually each coal producers is producing in What they do is actually some coal producers are actually not declaring what they invoice and differences, so. They lost a bit of collections then, they're trying to streamline and manage that process, too.

Rest assured, no export ban foreseen for the coming year or next few years, inshallah. All right, thank you.

Hi, Hasmi from CLSA. I have a couple of questions, but I'll start with three first, just to piggyback some of the earlier questions.

On GenCo so far for second quarter, are you seeing the similar kind of performance as first quarter? Historically, have you seen when was the last time you've seen this kind of very good performance?

Secondly, on the Iran war sort of challenges, any sort of pressures from the war that you guys are seeing that worth highlighting, and also especially in terms of you're deploying more and more sort of capex going into this year and next year as well, any sort of issue in procuring some of the long-lead items and all that? Also thirdly, just can you share more colors for those data centers who cannot sort of utilize sort of the committed kind of a utilization that they have sort of agreed before?

What kind of penalty and all that that you guys have discussed with them?

Excuse me. Kamal, be ready to pick up question number three.

Okay. We got Datuk Kamal, Chief Retail Officer, here to pick up data centers questions here.

In terms of performance second quarter, Datuk Seri is not, but I'm seeing a good performance from the GenCo fleet. I've not received any major breakdown to date, and moving forward, there'll be a couple of what do you call it?

scheduled maintenance being planned, but surprises I have not seen. I really hope and pray hard that no surprises will come in for the next year.

We are expecting a good numbers also for GenCo. Taking to considerations GenCo's last year performance, I think this year, inshallah, will be a good performance for GenCo.

We really hope that. On top of that, we are now carrying out quite a number of upgrading and refurbishment work on the all aging GenCo, such as the life extension plan on hydros, Sungai Perak, all those things.

We carry out quite a number of major overhauls actually on all our units in the coal plant. I'm hoping that initiative will actually best a good results in this few coming months.

With regard to Iran war challenges, to date, what we have seen is actually the increase in terms of the gas price. That is the first impact that we've seen, all right?

In terms of the supply, I think we have enough because we are very blessed country. We've got indigenous gas coming to all our plants from the Kertih punya field.

We still require to import LNG, a few vessels of LNG, but almost 800 close to 800 million scf is actually close to 1,000 million scf is actually coming from our indigenous gas. We are quite protected, and it's a subsidized price.

In terms of coal, we're quite secured, no problem. In terms of our supply chain management, we don't see any impact of the Iran war towards all the supply chain management to Tenaga.

Right now, we do have some strategic subsidiaries that provide such as cables, switchgears, and also some of the electrical equipments required for our development of our distribution, also transmission line. More or less what we have scanned around is actually we are quite covered, Hasmi, in terms of the supply chain, and the impact of the Iran war does not impact us directly.

On third question, may I invite Datuk Kamal to provide some insight on the DC.

Thank you, Datuk. Basically, we are seeing a very positive trend with regards to data center.

As data center, the way that they plan their loading is on the set load, right? Normally we see that on the first year, the load is not as per what they they are supposed to meet, but we have all covered under our ESA, our electricity supply agreement, where we cover whatever declared load that they have not met, there is certain penalties that yeah, they have to pay.

You see the new trend the recent trend of data centers who who are already in their second or third year, this is where they ramp up their their load, and most of them meet the minimum 75% or 85% declared load, and some even surpass their declared load. That's why you see from last year, we are talking about year year year year-on-year growth for data center.

That's about 12% growth as against the year before. We are all covered, and we are looking at yeah, being a very good paymaster so far as far as our collection.

We have no issues with the data center, and we see that the trend is a positive trend from their from them. The new demand that is going to MITI keeps on coming in, meaning that we are not looking at them stopping coming to the country.

Of course, there is going to be more what do you call this? coordination with MITI and ST and MIDA to make sure that we we contain in terms of the the growth as per what we want to meet their demand.

Right? That's we're looking at a positive trend of data center.

Right. Thank you.

Thank you. Just follow-up, last three questions.

I think just the first one: You mentioned 16 hyperscalers data centers are under application. Can you probably roughly share where is the location roughly?

Secondly, in terms of the contingent capex timeline for approval, how long does it take if you can give a general sense? Last but not least, just a general comment based on the electricity demand growth that you're seeing right now, how do you see the RP5 capex will pan out?

Just in general comment. Thanks.

Okay.

As data centers, they will try to locate themselves close to the point of interconnection with regards to fiber as well as water and electricity. Those places that we know in Cyberjaya, recently we are looking into Nilai, which is a new place.

Of course, data centers, yeah, their motivation is to look at how do they get a lower land cost, right? Definitely that's one of the motivation factors for those.

Currently, we are looking at still the concentration is on the west coast of Malaysia. Of course, we are looking at some trends that we are now promoting more on the east coast, where we're looking around Kuantan or even Kuala Terengganu, where they do not really need the latency issue there, which we are quite positive that those are the new location of mostly AI data centers, right?

The one that is the hyperscalers more on the west coast of Malaysia, where we're looking at the normal place: Cyberjaya, Meranti Park, Nilai, Nusajaya, Kulai, and lately they are moving more towards the east coast of Johor Bahru, near Pasir Gudang or Pengerang. That's where we are looking at the concentration of the data center.

Right?

As well, I take on the contingent capex approval timeline. Obviously, the first priority for us as far as the regulator is concerned is to utilize the base capex, and some of the contingent capex project, where possible, they also would like us to re-prioritize that into the base capex.

When it is clear that it has to be under contingent capex, then we need to get the approval to make sure that we will be able to recognize that income. The timeline really differs according to the type of deployment.

I can tell you, for example, the smart meter AMI, with TOU being a key enabler for RP4, for the rakyat, everything, that is a high-priority project. When we submit that, we get that approval very quickly because it's very clear that it has to be deployed.

Government wants that to be deployed, very fast approval. There are some other projects that helps to strengthen our operation, such as the distribution automation that I mentioned just now.

The scale and location of the deployment matters. We have to justify where it is being deployed and why it has to be deployed in that location and how it helps the overall delivery of our SAIDI under the KPIs.

It really differs according to project. I think if anything, what would like to comfort you is the fact that the contingent capex that we expect to implement this year, almost 75% of them has already been approved by now.

It is a matter of delivery during the year. Of course, 25% still need to be approved, and that's the challenge in the sense that it's already May.

I need to get the approval, and after the approval, we need to get it delivered so that we can recognize the income during the year. That's why we believe it should be on track.

We're working very hard to deliver those expectations. Process is different, but we are on track with our guided capex for this year.

With regards to RP5, you're really well ahead of time, Hasmi. While we are still struggling to form up the proposal, you already asking how's the capex of RP5.

We are in the process of actually redefining and collecting all information is required to formulate the necessary proposal. Looking ahead at the demands, which is increasing, we probably need I can't say what is the actual amount, but a considerable amount of capex need to be spent.

Probably it's not as big as the RP4 capex because they have actually allowed us to gain a lot of many projects to be executed the RP4 program. Still it will anchor in terms of the system reliability, systems taking into account the affordability of the tariff later on.

In terms of the tariff, the tariff is always in terms of the network charges is always, I would say, 30% of the total tariff structure, 60% is always coming from fuel. Actually we would like to propose is actually in managing a very affordable and sustainable tariff while meeting the system's reliability and also strengthening the system moving forward because we see a lot of demand and this is coming into the system.

On top of that, we are also looking at how do we strengthen the grid system because we probably see a lot more RE penetration into the whole system that requires a lot more grid flexibility in managing intermittency issue. We are looking at many more batteries BESS project coming to the future.

That's where we also get excited about the prospect of a new sector in terms of energy that we can actually play in the energy ecosystem. Right.

Thank you. Thank you for the question.

Hi.

Sorry. Daniel here from Hong Leong.

Just to check, the tax for this quarter is relatively high. Want to check the guidance for the full year, is it still maintained at below 25%?

Yes, Daniel. The long-term guidance that this year, we should land full year at around 24% is still intact.

Yes, I know this quarter we are at 30%, but you should look at that against last year where we was 33%. It's already better, but capital allowance claim has been a bit slow this year for the first quarter.

As far the incentive is concerned, the claiming process actually requires a bit more fine-tuning. We just want to make sure that the earnings and the calculations are proper so that we should be able to get what is entitled to us.

In the first quarter, we are being a bit more prudent on the part of the incentive being claimed. Like I said, full year, tax is obviously once a year affair, by year-end, we do expect us to hit that 24% as guided earlier.

Alright. Second thing is on the capex, regulated capex 2.5 billion.

May I know the breakdown between the contingent and base capex?

The 2.5 billion are all regulated capex, yes. The contingent capex is relatively small for the first quarter, at only around 200 million plus.

This is expected because, like I said, the priority is to deploy the base capex. The contingent capex is much smaller and will be deployed later.

This is the part that, like I said, for us, it doesn't matter anymore the difference as long as the full year we deliver the 13 billion capex, we would get the earnings benefit out of that amount.

Can I confirm, sir? Last year 2025, you guys spent 1.7 billion of the contingent capex.

By right, this quarter, you guys have already start to recognize the allowable return on this 1.7 billion capex already, is it, in the account?

Contingent capex, the financing benefit actually comes in, yes. It comes progressively during the year, so—

This quarter, you spent 200 million, does that mean that next quarter you will start to recognize the 200 million allowable return as well?

Yes. I see.

You only start to recognize it once you already spent on the capex, you recognize every quarter basis? Correct.

Yes.

Okay. Thank you very much.

That's all from me.

Hello. This is Collin from Macquarie.

Just two questions following back on the DC theme. You're saying that on a MITI level, there's still a lot of DC applications coming through.

Just thinking from a supply perspective, how do you look at the ESAs? Are there still room on that front, keeping in mind on your reserve margin?

Then on the other question, also on DC, if there's not enough supply to give out, considering there's a lot of applications, could you potentially look at some of the signed ESAs to ask these offtakers to potentially release some of the unused capacity sign? Thank you.

Of course, in terms of planning for DC, we have this Jawatankuasa JPPET, which is chaired by the Minister on on that with regards to the demand of DC. Certainly, we we pace the demand of DC based on what they declare on year year-on-year basis.

Question number two, whether whether there are any data centers who are not meeting and they want to offload their their declared load, right? Normally we see that the way that this you know that there are two types of data centers in terms of how it's created.

The one that is co-locators, the one that will find tenants. As far as we are concerned, as long as they meet what they declare, then we we are happy to work with them.

Long term with regards to the demand, we are seeing a lot, as as Datuk Datuk CEO mentioned, there's about 16 new data centers already sent in their application to MITI. Certainly we are working with MITI to to see how we meet their demand, and certainly we are also pushing them towards the RE, basically CRES, as as you know.

We have one data center already signed about 1 GW in terms of RE requirement under CRES, and we we we are confident that, more will come in. Of course with the with the APA in play and all that, that will be more attractive to for them to come in and sign that.

Also we're talking to MITI with regards to how the new data center will have to meet up with the the requirement of RE, as well as being more what do you call this? more efficient, right?

These are all the mitigation action that we are talking to MITI to ensure that we do not stifle the the the growth, but at the same time we are encouraging more benefit that that the the country can get from the influx of the data center. Right.

Thank you.

Maybe we can move to take questions.

Hi, good morning, sir. This is Isaac from Affin Hwang.

Just two questions from me, please. Number one is in terms of the country generation mix, I think we are transiting to more gas and RE and less coal in the years ahead, and you are building some new gas plant.

What is the strategy in terms of the procurement of this gas, and is there any room that Tenaga as a group can play when the country demand more maybe imported gas? Is there any business opportunity that you see and you can do?

That's number one. Number two is a quick one.

This is on your RE plans. With the solar panel prices going up and the cost is on the higher, how is that affecting the profitability of your current RE project, and how should we think about the rates for the future solar facility in Malaysia?

Thank you.

I think the number one question with regards to the generation mix, yes, in line with our energy transition, we are not building anymore coal plant, but we're building quite a number of gas plants, especially high-efficiency combined cycle gas plants. Opportunity, yes, there is an play where we can actually enter into the gas supply market that we are positioning it well.

We are working with our counterparts. We're looking at opportunities how actually we can play in that energy ecosystem.

We're looking at the RGTs. We're looking at the importing gas also.

We are positioning ourselves well. Unfortunately, we have not made any announcement on that, but it should come very soon how do we position ourselves as player to the gas market and also an importer of natural gas in the future.

That will definitely come.

Sure. As a country, would we be looking at a national gas aggregator or some similar entity to help with the future?

Yes, they have that idea of having a national aggregator in play, and they have identified us, in actual fact, to become a preferred aggregator for the country since we are the biggest offtaker of gas because our generation portfolio. There is a serious discussion ongoing in Putrajaya and on ST how do we position Tenaga as the key because of our experience and the leveraging on the offtaker strength that we have currently right now.

Okay. Far

now, is it affecting how the rates and profit to be in the future? I know solar sector profit is becoming very competitive nowadays, but we will play in that market.

We've got GenCo, we've got TRE, we've got GSPARX, also on the rooftop solar market, and we look into ways how actually we'll make Tenaga remains competitive in those business. Right.

Hi, this is Max from RHB. Just two very simple questions from me.

Maybe number one, can you just tell us how many months of coal inventory do you have at TNB fuel? Question number two, if you look at your website, in terms of your forecasted EFA for August, you see that the surcharge will actually exceed about 3 cents.

Can I understand that once for cabinet approval for you to exceed 3 cents, do you need to get the approval in the month of July for the actual surcharge or at this point of time of forecast? Given that I believe the high-case scenario if things continue to escalate and you're going to see high surcharges, do you think there will be a risk to your demand for electricity given that the government also mentioned that this are energy inflation risk as well?

Isaac? Isaac, all right, thanks.

Coal inventory, we are hovering between 20 to 30 days. That's our standard inventory levels that all the power stations have to store at any particular power station.

That should last for 30 days punya consumption. Usually you'll see that is hovering between 20 to 30 days, all right, depending on the consumption of power station.

When EFA exceed 3 cents, we are seeing that now the previous one is actually between July last year until April, we are seeing the EFA is only on the rebate region, right? Now moving forward, we're seeing a little bit more on the surcharge side.

According to the cabinet paper, anything that is above 10% from the normal tariff, you go to go and ask the approval from the cabinet. That is the instructions given to us.

For now, we have not seen that happening, but anytime is going above 10% of the simulated tariff, we have to seek an approval from the cabinet. Whenever you see approximately fluctuating between 3 cents and -3 cents, no approval.

It's just a simple pass-through to all the consumers. That will happen.

When it comes to why is it on the high side, it's actually mainly driven by the high LNG prices that we are importing right now. In terms of that structure, whenever we consume 1,000 a certain in terms of the LNG that we import is actually all associated with the Brent Index.

Now the Brent is actually at close to $100 barrel $100 per barrel. Right now, the gas price is now associated with Brent.

The 15% on top of the tier 2 gas price is all associated to the Brent price. We are seeing that little bit of the high side on the gas inflation.

We are still, whenever there is a pressure to actually import gas, we have requested PETRONAS actually to pump in more indigenous gas to the energy sector. That should be able to mitigate the prices moving forward.

High surcharge, okay. I guess that should answer your question, Isaac, right?

The last one, what is the question?

Is there too much surcharge, there is impact on the demand?

I don't think so, but there's certainly a lot of complaint from the netizen. Coming up, I've been monitoring the netizens Facebook and Instagram, and they even got a specific group, please share Facebook, apa?

Bil TNB Melambung. There's a specific group, about 50,000 followers in there.

They discuss everything detail about TNB bills. I'm quite surprised.

They've got time to discuss about electricity. $20 make hell of difference to them.

You want to know about detail, you can always join that group, Isaac, and get more than what I know outside there.

Okay. All right, thanks.

Can you hear me?

Thank you very much. I think just I have a few questions, but first a follow-up to Max's question on EFA representing netizens.

On this, Datuk, I think what we want to understand, maybe if you can share when it comes to the EFA trajectory, right, I understand right now we don't see the need for the surcharge to be beyond 3 cents, but can we understand when it comes to the KWIE fund when it comes to subsidizing the 3 cents, what's the trigger for the fund to actually step and subsidize even if it's still below 3 cents? Just to understand this structure.

I think secondly, this is a second question separate from the EFA. When it comes to the gas and diesel mix generally, we understand that there have been some concern when it comes to gas supply, but moving forward, we also want to roll out more CCGT and the backup fuel is diesel.

Understanding this, currently have we seen any change in terms of seeing increasing some diesel mix in certain power plant, and are we seeing this trajectory to be there in the next few months, for instance, and how does this translate to your forecast when it comes to EFA? That's one.

The second part of this gas and diesel mix for CCGT power plant is that moving forward, do we see in terms of capacity downsizing for the upcoming CCGT power plant awards, as well as coal extension due to this gas and diesel shortages as both fuel are also in current bottleneck? The third question, sorry, I'm just going to lump all questions and make sure I write it on chat so that you can refer to it afterwards.

I think the third question is also on DCs, a follow-up to the rest of the questions. I think for DCs, three parts of the question.

Number one is we are trying to understand for the current framework of the penalty if you may share. Was the framework something that was recently established, and do we see frequent moving forward frequent revision when it comes to this penalty to ensure, okay, if DCs are still not complying, are we going to be stricter when it comes to the penalty structure?

Secondly, for the DC question is that for the upcoming RE mix, you mentioned that we want DC to be able to have some RE mix in the power mix, but is there a certain percentage as a direction? If not, that leads me to my third question because there have been a lot of debate when it comes to depending on RE for DCs for the SEC charges.

I think right now they are still discussing about four options for SEC revision, and one of the issues that if you want to ascertain future SEC charges, we kind of need to know RP5, RP6, RP7 up until RP7 investment kind of base because you want to know for the next 10 to 15 years what's going to be the appropriate SEC charges. On this note, have PETRA or EC, in conversation, talk to you about kind of trying to forecast the upcoming RP5, RP6, RP7, although I understand you mentioned RP5 is still early, but seems like this mechanism is requiring us to actually see what's going to be the future charges?

I think going to stop there. That will be my question.

Izwani, lagi-lagi dah sampai RP7. We have not even started about RP5, and you are already at RP7.

Done, Izwani. EFA trajectory, whenever it exceeds 3 cents and when the KWIE fund will kick in, it is under the purview and jurisdiction of ST.

We do notice that whenever they see actually a surcharge on the high side, ST, with the concurrence of PETRA, do comes in and actually kick KWIE fund to actually absorb certain portion of the surcharge. That I can guarantee.

All right? What will be the fundamentals of them utilizing the KWIE fund, that is under this discretion of ST.

I cannot comment on that one. Question number two, in terms of Indonesian coal supply, right now we do not foresee any disruptions in terms of logistic supply chain.

That's clear because 70% of our portfolio of coal is coming from Indonesia, and it's quite close. Indonesia is quite close to Malaysia.

The vessel can come in within a span of 4, 5 days, actually. The vessel can reach Malaysia.

Most of our vessels are actually Malaysian-flagged vessels. We don't foresee any issue in terms of logistics when it comes to exporting coal between Indonesia to Malaysia.

We also import coal from Australia. That is coming from Australia, also will not be disrupted by the current geopolitical issue in Middle East, all right?

Number two, rest assured, we are covered in that area. On the gas and diesel mix for CCGT plant, in our opinion, diesel is a big no-no to us because it's very expensive.

We always focus on gas, high-efficient gas turbine combined cycle units that we want to plan up future for in order for us to maintain the generation cost in our electrical energy system. In terms of energy, we do use diesel for diesel generators, but that is going to very minimal in nature.

What was the last question, Izwani, if you would? Oh, the SEC charges, eh?

I think that is a deliberation and also a very detailed discussion going on between ST, PETRA, and some of the local players, what is the right SEC charges to be charged to the players. I guess let them be right now.

The SEC charges will be decided, and certainly it's going to benefit not only the industry, also the players. It's currently being deliberated.

They had a discussion yesterday. They had an engagement, I believe, yesterday with regards to the SEC charges, and for now, I may not be able to comment more than what I have said just now.

The new Gen 2026 actually, that one is actually in progress. They are now requesting for request of proposal, and hopefully, inshallah, we'll be participating in the next new Gen 2026 also tender.

Okay? All right, thank you.

Foong, yes, if you look at our capex deployed for first quarter '26 at 2.7 billion, it's 2.5 billion, it's slightly lower than last year's 2.7 billion. That's obviously among others because of the holidays that came in during the first quarter this year.

Really, to us, the difference is minimal. That is really a matter of getting the recognition of the work in progress into our asset register and getting it really registered as regulated asset base.

For us, there's nothing to worry in terms of the quarter-on-quarter difference this year and last year. Just matter of documentations and process.

As far as the remaining approval that we require for contingent capex this year, well, of course, we cannot say for certain that everything will be approved, but we are quite confident that the business case to get that is there. If you talk about the downside risk of the capex this year, I think we are quite sure that as far as the guidance, we committed to 13 billion.

I think yes, if you're talking about a range, I think last year was 12 billion. This year definitely we believe we should hit at least 12.

That's why we're pushing for 13. That's based on the progress and the approval.

I think if you want to be more conservative, then it's the same 12 billion, but we're pushing towards the 13 billion regulated capex. On 1 billion different regulated capex, obviously the earnings impact would have to be counted in there as well.

To us, it will not be lower than the 12 billion that we delivered last year.

Yep, we can hear you. Yes, firstly, thank you for doing this presentation.

I think the first question I had was in terms of rooftop solar, what percentage of the grid supply right now comes from rooftop solar, and how much has been the change in the supply curve as you have seen more rooftop solar come through? Basically what I'm asking is average 4 hours or over average 4 hours in terms of the spread, have that widened in terms of the variability, and how much is that if you can kind of give us some sense of what's going on there around grid stability?

The second question was more related to T&D tariff. How much have you seen the increase in T&D tariff that you booked for this quarter versus last quarter, and if you can give us a guidance of how much will it increase for 2026 over 2025 in absolute T&D tariff?

Okay.

I think Mayank was asking about how much megawatt actually hooked up to the rooftop solar as compared to the how much solar hooked up to the grid. Can I confirm that, Mayank?

I was asking in terms of the actual supply in terms of how much units of rooftop solar are now contributing in terms of supply to the grid.

Mayank, on any normal particular day like today, when we have a maximum demand of around 21 GW, usually for the period of 4 hours between 11:00 to 3:00, we have around 3.6 GW of solar, out of which roughly 1 GW is actually at a grid level, that would be the LSS supply connected directly to the grid, and around 2.5 GW are actually what we call distribution level rooftop, both at the lower voltage as well as what is the normal commercial and residential rooftop solar. If you put it into perspective, roughly around 3.5 to 2.5 at distribution, right, Datuk Kamal?

At fuel mix level, yes. At around 2.5 GW would be out of the 21 GW that we are supplying today.

Mayank, I'm not sure exactly what you are talking about for the T&D tariff for 2026 because you know that the approved base tariff is 45.4, and out of which roughly 11.2 is network tariff. What we have recorded is actually at around 45.7, the T&D tariff actually does not move much compared to what is approved.

Sorry, I was not unmuted. The reason for the network tariff was because obviously you're spending more now on that and you are kind of putting the contingent capex into the numbers as well.

Technically, your network tariff has to be higher this year versus last year, whether it is 2 cents higher or 3 cents, 10 higher. I don't know that numbers.

I was trying to understand where does that fit. I think on the rooftop solar as well, the 2.5 GW that you kind of said, is that actual supply to the grid, or that is the capacity connected to the grid?

Actual supply to the grid, Mayank.

All right, that's clear. Yeah.

On the network tariff just now, Mayank, yes, this is the part when in the last quarter, we talked about the earnings recognition of the contingent capex, that the earnings recognition is similar to the base capex. However, we have made it clear that the contingent capex has not been decided by the government in terms of actual recovery of the cash.

There is two possibility: government allowing us to pass that to the tariff, or government paying us the difference through KWIE, or government bundles that into the next RP5 tariff. If it's bundled into RP5 tariff, it will come with time value of money, but of course we would rather government pay us now through KWIE fund if it's not being passed to the consumer.

At the moment, contingent capex is not translated into the tariff increase yet.

Thank you very much for all the forward-looking questions. As always, please reach out if you have any questions with regards to anything Tenaga, our teams are always available, and our investor teams ready for any clarifications required.

To summarize today's session, our first quarter performance reflects a continued resilience and core strength of TNB's business, and the regulated portfolio continues to serve as our primary earnings anchor, providing strong stability and cash flow visibility, complemented by our disciplined RP4 execution and robust operational performance. We continue to advance our strategic priorities, including strengthening grid resilience, accelerating renewable energy integration, and supporting rising electricity demand, driven by commercial and data center segments.

At the same time, we recorded healthy electricity demand growth, achieved an MSCI ESG rating upgrade to AA for the second consecutive year, and continue to strengthen our sustainability agenda, operational execution capabilities. We remain committed to delivering sustainable returns to our shareholders.

Our dividend policy remain intact, and we expect to sustain the current trend of dividend payments, subject to the group's performance and financial position. Supported by continued demand momentum, disciplined capex execution, and prudent capital management, we remain confident in our ability to deliver sustainable long-term growth moving forward.

Looking ahead, our strategic focus remains firmly anchored on driving Malaysia's energy transition while delivering long-term value for our shareholders. Thank you very much, ladies and gentlemen, and that concludes today's session.

I would like to take this opportunity to wish everybody the blessed Eid al-Adha to all who are celebrating. May this occasion bring joy, peace, and blessings to you and your loved ones, and have a pleasant day ahead.

Assalamu alaikum wa rahmatullahi wa barakatuh.