Assalamu'alaikum warahmatullahi wabarakatuh, and a very good morning, salam sejahtera. First and foremost, thank you very much for being here to be in the sessions where we share our third quarter performance.

I would like to welcome everyone to this new, I would say, development by Tenaga Nasional, which is the National Energy Centre, which is part of our UNITEN purpose, in which we would like to support the government agenda with respect to the energy transitions. This is where we hope that we can position Tenaga further with respect to the energy transition for the country as well as for the region.

I'm pleased to share some of our performance highlights for the first nine-month of financial year 2025. The group deliver a strong financial performance underpinned by the continued stability of our regulated business with a recorded core profit adjusted for forex translation and MFRS 16 of RM3.26 billion, compared to RM2.7 billion in the corresponding nine-month last year.

This is reflection of our underlying strength of our core business. What we have seen to date is stronger performance across all the four business pillars that we have is driven by all the improvements across those four business pillars.

The first, under the deliver clean generation, Genco overall performance improved, with higher core PAT of RM238.9 million, compared to RM175.8 million in the previous year. This is supported by a strong operational efficiencies, as reflected by an improved equivalent availability factor or known as EAF of 86.9%.

As everybody can remember, Manjung 4 is fully operational since the beginning of of the year. Second, under the developing energy transition network front, we deploy RM8.3 billion of regulated capex comprises of 7.6 billion in base capex and additional 0.7 billion in contingent capex.

This intensified investment demonstrate steady progress in delivering our RP4 commitment, especially in grid investment to ensure reliability of electricity supply and to deliver those projects that related to the demand growth for the country. Third, under dynamic energy solution, happy to share that we are making good progress with respect to the electrification of transport or in the EV space, where we see to date we have 5,000, more than 5,000 EV charge point in the ecosystem contributing to about RM5 million in in revenue.

Within this ecosystem, Tenaga Nasional through our Electron brand install new 94 TNB charge point during the quarter, bringing the total to 160 TNB charge point in our EV network. This is to reinforcing our commitment to support the country growing EV infrastructure.

This is where we see a good momentum and progress with respect to the electrification of transport, especially to the to the mass transport, in this case the cars instead of the heavy vehicle. Lastly, under our driving regulatory evolution, the transition from the ICPT to AFA mechanism effective 1st July 2025 amongst a significant structural improvement.

The AFA mechanism enabled immediate cost recovery compared to the previous six-month lags in the previous ICPT regime. This helps improve TNB cash flow at least by 2% and definitely enhance our planning with respect to the working capital.

Overall, these results reflect our resilience, operational discipline, and continued progress in advancing the energy transition while delivering sustainable value to all the stakeholders. Moving on to our generation growth outlook, momentum remains strong supported by government national capacity plan.

Recently, we received the letter of notification for technical and commercial term covering a total capacity expansion of 1,262 MW across three power stations that are owned by Tenaga Nasional, namely Gelugor, Putrajaya, and Tuanku Jaafar. This, if everybody can recall, is part of the so-called RFP that being put forward by the government under category one, where the government request for proposal with respect to the extension of power plant.

We are glad that we have gotten the results, and this extension strengthen system reliability and ensure that we remain well-positioned to support the Malaysian growing demand, as well as to ensure that the capacity and the revenue that is coming from this power station will continue be will continue be part of TNB revenue in the future. On the second category, the new generation capacity request for proposal, we are awaiting the regulator decision, which focus on the new gas and capacity, and TNB, of course, participate in the the RFP.

We hope that we can get the outcome or results before the end of of the year. In short, this national capacity plans, both extension as well as the new generation capacity, provide a strong visibility and reinforce a favorable outlook for TNB generation growth in the pipeline for the future.

At the same time, let me update some of the progress that we are making with respect to the projects that we are undertaking at the moment. On the domestic front, the project execution across our clean generation portfolio continues to progress well and firmly on track.

The first one is the Nenggiri hydro project. We have now reached 53% completion, and we remain on track to meet the COD target by the mid second quarter of 2027.

Happy to share that major civil works, including roller-compacted concrete, RCC placement for the saddle for the saddle dam are already underway. The second project that we are currently undertaking is the Sungai Piah Sungai Perak Hydro Life Extension Programme has achieved 23% overall progress.

Data collection for all the units has been completed, and this is a rehab project. The project is on track to deliver the first unit at Chenderoh Power Station by the first quarter 2026.

At Kenyir, the plan for the hybrid hydro-floating solar project has reached 70% pre-development progress, and the commercial evaluation is currently in final stage. This is another opportunity for Tenaga to provide clean generation to the customers directly through the CREST program.

On the large solar projects that we are undertaking under the Corporate Green Power Programme or known as CGPP, all three sites continue to progress well, with more than 85% completion, and remain on track to achieve COD. The second project for the large solar is the awarded Large Scale Solar 5 tender is progressing towards achieving financial close by early 2026.

At the same time, we're also taking a project in Sabah together with SESB, which is our majority-owned subsidiary. It's also to expect we also expect to have the financial close by the end of this year, 2025.

Lastly, the Battery Energy Storage System at Lahad Datu, Sabah, in which our subsidiary, TRE, undertaking together with SESB has successfully achieved COD in August 2025, and it is in full operation just now, and it is it did help the so-called provide the energy to the eastern part of of of Sabah. Overall, we have 1.2 gig currently under constructions, reinforcing our clean generation growth platform that we currently have.

On the international front, the third quarter update progress in the United Kingdom, we have achieved our international RE portfolio recorded important milestones this quarter. In the United Kingdom, our greenfield solar project, both Eastfields, 35 MW peak, and Bunkers Hill, about 67 MW peak, have achieved COD in July 2025, contributing a combined of 102 MW peak of new solar capacity to our portfolio, and has started generating revenue for us.

Over in Australia, momentum is equally encouraging. As part of the 1 GW Dinawan Energy Hub, the 357 MW Dinawan Wind Farm Stage 1 has successfully secured support under the Capacity Investment Scheme in Australia.

This provide a long-term revenue assurance for the project and enhance overall cash stability for the future. The second project that we are undertaking in Australia, it is named Walter Creek Solar Project, totaling 265 MW of solar capacity and 300 MW of battery storage.

We have executed the connection process agreement with the Transgrid, which is the transmission operator in Australia. This allow us to move forward with detailed grid impact studies of the connection and the best possible discussion with respect to COD.

In parallel, procurement for the standalone BESS is also ongoing. Meanwhile, for the Mallee Wind Farm project, 400 MW Mallee Wind Farm, we are progressing connection connection planning outside the designated RE zone and have secured the required land easement for the transmission connection, a key enabler for the next development phase.

As you can see that the Australian project with respect to the regulatory requirement, one of the key elements is actually to get access to the connectivity to to the grid. Many of our projects are now at that so-called pre-development stage, securing the grid access, and we believe that we are making a good progress with respect to those in conjunction with cooperation with the local transmission operator.

With this addition, our group secured RE energy capacity now stands at 13.4 GW, of which 4.6 GW is already in operation, while 1.2 GW is under construction, as I summarized the above, and 3.6 in the pipeline stage. This continued growth reinforce TNB position as a meaningful regional RE player while providing diversified income stream over a long over the long term.

Next, we move to investment into the grid. Under our second strategic pillar, develop energy transition network, we're on track to deliver our regulatory targets, having successfully utilized 8.3 billion of regulated transmission and distribution capex.

We invest 3.8 billion to maintain security supply, 3.8 billion to support demand growth, and 0.7 billion capex for energy transition projects, enhancing the grid readiness for higher RE penetration and a greater digitalization embedded to make it a smart grid. Progress of key project: firstly, the for the demand growth, especially data center connection, we have invested around 1 billion, while we are also developing the 500 kV overhead line between Ayer Tawar and Lenggeng project at approximately 0.3 billion to strengthen the backbone of the national grid.

Our 100 MW, 400 MWh Battery Energy Storage System pilot project at Santong continues to progress well, reaching 56% of overall completion. We remain on track to achieve the targeted completion by December 2026.

Meanwhile, at the distribution space, for smart meter, we have overdelivered our FY 2025 full-year 360,000 unit target with around more than 500,000 unit installed at the end of the third quarter 2025, bringing the total 4.1 million units into the system, which is about 45% of our customers. This is also reflecting our strong momentum in empowering the customer energy management, including the new tariff offering of TOU.

This is one of the, I would say, the the intended outcome of the smart meter, providing the customer with the energy management system and supported by the tariff structure of TOU. For distribution automation, as I mentioned, which is important for our supply reliability, we have installed DA system in 2,598 substation at the end of third quarter 2025.

As at October 2025, we have achieved 75% of our 2025 target of 4,026 substations. The projects under the capex, both for transmission and distribution, are well on track.

While our domestic investments ensure the grid is ready for rising demand as well as RE penetration, the next dimension of our strategy is regional integration. Under the ASEAN Power Grid, we are actively developing interconnections that will position Malaysia as a key hub for clean electricity exchange across the region.

Currently, we have about 1.4 GW of existing interconnection capacity with Singapore and Thailand. Looking ahead, we have five potential pipelines interconnection projects enabling the transmission of over 6 GW of combined RE energy, including hydro, solar, as well as wind, with Vietnam, Singapore, Thailand, Sarawak, and Indonesia.

This project will serve as enablers for the regional energy transition and position Malaysia as a central hub for cleaner energy flows. On the business front, we believe this is the foray of Tenaga to have part of the so-called regional market in our revenue, and hopefully we can expand the third pillar in combination of the domestic and international business.

Now we have the opportunity to include the regional business as part of the mainstream of Tenaga revenue. Moving to our third strategic pillar, dynamic energy solution, we see that electricity demand has continued to grow.

For the third quarter 2025, the total unit sold reached more than 99,000 GWh, reflecting sustained demand momentum. This growth was largely underpinned by the commercial sector, which account 70% of the total unit sold.

For the commercial demand, we see that the growth year-on-year is about 7.7%, led by three subsectors: data centers, of course, contributing 5.2%, followed by the malls, business, and accommodation services at 2.2%, and the rest of the commercial sector adding another 0.3%. We see a strong growth with respect to the commercial sector as well as our domestic sector.

In terms of the sales contributions, mall, business, and accommodation services made up 80%, other subsectors contribute 60%, while data centers account for 30% of the total unit sold in 2025. What does it mean is that, yeah, we can see that data center is growing, but in the overall scheme of the subsector so-called unit, now it contribute about 3%.

We still have the majority of the commercial are from the mall and business and accommodation services adding up by the education and also the communication communication sector. We're happy that overall, we have a good subsectors growth not only in data centers, but the other remaining business in the commercial sector.

For data center itself, it continued to anchor the structural demand growth. As for the end of the third quarter, we have 29 projects in the system, which a total maximum demand of 3.8 MW.

Looking ahead, our secure pipeline now stands at 49 projects representing 7.1 GW total maximum demand in the system, underscoring Malaysia role as the digital investment hub. Alongside this robust demand growth, we also seeing positive momentum across our customer-focus energy transition initiative.

Under the EV ecosystem, we continue to advance our EV charging rollout with 160 cumulative charge point installed, including 94 in the third quarter 2025. We remain on track to exceed our TNB-own targets of 250 charge point installed by the year end of 2025, supporting the government EV roadmap, and of course, expanding the charging facilities nationwide.

Year-to-date, our EV charging ecosystem has generated about RM5 million in revenue, of which 1.7 million come from our own TNB charge point. This reflect steady adoption of our charging solutions and validates the growing demand for EV infrastructure.

For the EV charging development, we have introduced the Green Lane Supply Initiative. For this initiative, we have completed around 7 MW of connections, with a target to achieve around 8 MW connection within this year.

Interest continue to grow strongly. We currently have 448 application in pre-consultation, representing representing 130 MW of potential new connection as we move forward.

Moving on to the solar rooftop through GSPARX, uptake remains steady. Since inception in 2019, we have secured more than 3,000 projects representing 538 MW peak of secured capacity.

As of September 2025, we have installed a total of almost 200 MW peak, generating approximately RM80 million in revenue for the first nine-month of this year. We are seeing a strong participation from key segment key customer segment, such as manufacturing, government, as well as from the construction sector.

On energy efficiency, myTNB app is currently adopted by 8 million of our customer base, which represent 80% of the current 10 million customers that we are we having. Over 2.5 million users have now subscribed to myTNB Energy Budget feature, helping save 100 GWh of energy.

At the same time, if we calculate in terms of the carbon emission, it helps avoid more than 75,000 ton of carbon emission as of September 2025. Additionally, as mentioned, the update for the Time of Use scheme has been very encouraging, with about 52,000 customers now optimizing their consumption pattern to manage to better manage the electricity cost.

This initiative reflect our progress in driving customer participation in the energy transition and unlocking growth from the prosumer segment of of our customers. That is the overall four pillars performance as of the third quarter.

Now I will pass to our CFO, Encik Badrul, to provide detailed updates on the third quarter financial performance, please.

Thank you, Dato', and good morning, everyone. Good to see all of you here in UNITEN today.

Since the results last Friday, seems like you guys been doing a lot of work over the weekend. Good to see you here.

I'm pleased to report that for our nine months performance, you've seen that we have a stronger financial performance, which mainly still driven by regulated business, and obviously you will see as well a result of more effective capital management. For the first nine months of 2025, revenue, EBITDA, and PAT across the board have showed positive year-on-year growth.

As of nine months 2025, our revenue actually increased by 18.3% compared to previous year, and you'll notice that this is mainly driven by higher electricity sales. It's important to note that implementation of cost-reflective RP4 approved tariff continue to support revenue, as well as affirming that it will continue to support the stability of our regulated business.

On the EBITDA side, you'll see improvement as well supported by higher revenue, recording increase of 8. 4.8% year-on-year, increasing to 15,088.2 million.

EBITDA margin as well, you'll notice that strengthened to 31.2%, showing improved efficiency across the group. I think this is important to note that as we monitor the EBITDA margin, this shows continued progress of the company where a lot of cost management has been put in place to ensure our stable operation continue to deliver the regulated profit.

At PAT level, you will notice that our profit grew mainly because of the improvement in the operational performance of the company. You'll notice that we are now focusing on core profit after adjusting for forex translation and MFRS 16, which is a much better reflection of the performance of the company.

That figures now is at 3.259 billion, which is an increase of 13.7% year-on-year compared to the same period last year of 2,867.4 billion. I think based on that number, we would like to conclude that as far as the overall performance is concerned, lower net finance cost as well as forex movement actually provided an additional uplift to the performance of the company, but most importantly, core operations remain the main driver of the performance of the company.

For FY 2025, we believe that the group remains on track, supported by resilient operations as well as prudent financial management. This is will make sure that we continue a sustainable performance for the full year this year.

You will notice as well that as far as the group earnings are concerned, we have actually supported by two important pillars that continue to support our operation, importantly, improved generation performance as well as sustained world-class network performance. This is important, as you notice that the network reliability across transmission, distribution continue to deliver our earnings.

As far as generation is concerned, the higher equivalent availability factor of 86.9% in nine months this year is much higher compared to 80% that we achieved same period last year. The improvement actually reflects stronger overall plant performance and the fact that our maintenance and repair and all are delivering the expected performance from the plant.

This is something that a lot of focus is being put across, and we continue to maintain this high availability as well as operational excellence across our plant for this year and many more years to come. For system minutes for transmission, nine months is actually nine months this year is actually at 0.0695 minutes, which is, as reported quarter in and out every quarter, well below our internal threshold of 1.5 minutes.

This is important because, as you notice, a core part of our revenue and profit come from this, and this continue to underscore our commitment to make sure that our regulated business continue to perform and deliver the baseline revenue and profit. This will only make sure that we have a highly reliable and stable earnings as a result of stable transmission network.

For SAIDI distribution minutes, you notice that the numbers for this year improved to 34.99 minutes, compared to 35.72 minutes in nine months 2024. I think this is, again, every quarter we would like to emphasize this because this is an assurance to all of you that stability of our regulated business ensures that we've got better services to our consumers and continue to deliver the earnings of the group.

If we move to a bit more financial metrics that we are collecting, you'll notice that we have a stable collection trend, and regulatory certainty continue to underpin our very resilient cash flow. If you look at our trade receivables and collection, trade receivable remains stable.

It has been around 4.4 to 4.7 billion year-to-date and continue to be stable. This actually also a reflection of stable collection trend, with average collection period which continue to be below 70 days.

This has been at around 27, 28 days, very healthy numbers despite the jump on the revenue, which has grown significantly by 18%. You will notice as well, as far as the AFA mechanism, which has gone into effect as of 1st July 2025, this actually enable us to recover immediately all our generation cost because it is based on forward-looking forecast every month.

This has also helped us in the sense that coal price has now stabilized at around 90 US dollars per ton this year, compared to much higher, 121 US dollars per ton as of September last year. We believe that the fact that fuel prices are stabilizing, we have a strong collection trend, and it is being helped further by the newly implemented AFA mechanism, which will only continue to strengthen our working capital as well as provide us a much healthier cash flow position.

In short, I think this is what you're going to see. We have put a lot more focus in our capital management, which is actually giving us the right result on the pretext of stabilizing fuel prices, strong collection, and this will continue to make sure that we have the liquidity and the strength to make sure that we have the financial resilience for us to continue investing.

This trend that you're seeing today actually will show that we have a strong foundation, enabling us to weather the market condition, and most importantly, enable us to continue our long-term investment plan to make sure that we deliver the energy transition agenda. If we go into a more detail as far as the outcome during the quarter, you will have heard that we've got two reports came out from both S&P and Moody's.

Both international rating agencies actually have reaffirmed their ratings of the company with stable outlook. This is something that is very important, like I said, because you have noticed that we have been investing a lot this year, and we will continue to invest in '26 and '27 as well.

S&P Global Ratings maintained the rating of A- and Moody's continue the rating of A3. I think most importantly, probably this one, some of us, since most of you are equity analysts, you probably don't dive into the detail as far as the credit rating is concerned.

I think we would like to highlight that for S&P Global Ratings, as a matter of fact, yes, we continue to be rated A-, but they have a component where they have a standalone credit rating profile of Tenaga as well. That rating before this was BBB, now that has been upgraded to BBB+.

Before this, a standalone BBB, but we've got two-notch rating upgrade to A- to reflect the sovereign rating. Now, on our own, we have already been upgraded to BBB+, we are only upgraded one-notch reflecting the sovereign nature of the country.

This is affirmation that for as far as S&P Global Ratings concerned, they believe that our cash flow is going to be a lot more resilient going forward, supported by two things. The first one is the AFA mechanism because this will actually stabilize our cash flow and receivable with immediate recovery of generation cost.

They have been tracking our performance in terms of the lease liability, especially the PPAs, and now they are comforted that the overall regulations for Malaysia for PPA enable us to recover all the costs under the power purchase agreements with the IPPs. With those two adjustment to the cash flow forecast of the company, they believe that the cash flow strength of the company will only be better going forward.

Moody's rating, they continue to reaffirm the A3 rating. Obviously, the normal assessment covers the fact that we have a very supportive regulatory regime and tariff reform that has been implemented by government that enhances the revenue visibility and cash flow efficiency.

Obviously, when we talk about the credit rating, usually we'll take it as a blended, more indicative ratio of gearing ratios. I think it's important to note that as far as both Moody's and S&P are concerned, they are actually monitoring a different cash flow profile.

Just to give you some perspective, S&P in particular, they monitor funds from operation as a level of debt, and Moody's, they monitor retained cash flow as a percentage of debt. Yes, I know a lot of you guys are monitoring our overall gearing ratio in particular, but for credit rating purposes, they actually dive in into more detail to make sure that the cash flow are supported by operation cash flow coming forward, especially in an environment where you continue to invest.

I think what we are putting across today is the fact that we believe that, in summary, this recent upgrade and reaffirmation continue to underscore the strength of our credit profile as well as our long-term financial outlook. We always would like to point that as far as S&P in particular, this reflects increasing confidence in the robustness of our fundamentals, as well as the fact that we have a stronger cash flow stability and visibility with minimal risk.

All together, this development reinforce our financial resilience and validate our disciplined approach to financial planning in managing our balance sheet so that we continue to enable our long-term business plan. I think we are very clear as far as we're concerned.

Yes, we are pushing for growth, and we will continue to support the national energy transition and creating continuous value for our stakeholders. With that, I pass back to Dato' Megat to cover on the outlook for the year, Dato'.

Thank you very much, CFO, on the financial performance update. Looking forward, the forward guidance, especially for the next quarter, we anticipate the electricity growth to grow in line with the IBR projection of 2.8% for the year.

This reflect the overall growing economy, particularly from the commercial sector. In terms of our group capex, which we probably have more say in it compared to the so-called demand, we plan to invest a total of around 15 billion this year, with the estimated or projected 12 billion allocated to the regulated business and another 3 billion on the non-regulated business.

Our investment remain aligned with the national priorities, strengthening the grid, supporting demand growth, accelerating Malaysia energy transition, as well as to ensure that the capacity of generation is good for the country. By the end, we expect to strengthen our RE portfolio with an additional of 212 MW peak of capacity, taking to account the commissioning of our 102 MW peak UK solar assets and the upcoming COD of our CGPP projects of 110 MW peak.

On the capital management, as mentioned, we remain fully committed to executing our capex efficiently while maintaining a healthy cash position supported by a prudent working capital management. To our shareholders, we reaffirm our commitment to honor our dividend policy and strive to provide sustainable dividend in the future.

Ultimately, our focus is on ensuring long-term sustainable growth as we advance Malaysia energy transition agenda under NETR, and this is reflected through our future investment that we are committed to deliver. We will continue to position TNB as a leading provider of sustainable and reliable energy solution, creating value for our customers, communities, shareholders, as well as the nation.

With that, thank you very much for the listening.

Thank you very much for the three loaded questions to begin with. On the tax allowance, as everyone understand, this is a tax matter that has been in the system for many years.

That is a questions of the reinvestment allowance. For Tenaga perspective, we are glad that the Federal Court has made a decisions with respect to the clarity on the reinvestment allowance bucket.

As guided by the Federal Court decision, we have submitted the so-called reinvestment allowance claims under 7B. Recently we have received the so-called decision on the reinvestment allowance.

At this very moment, we are still looking at the so-called calculations of the so-called reinvestment allowable allowance. Definitely we'll provide the feedback as soon as we get a better clarity in terms of the details of the allowable reinvestment allowance.

On one aspect, we are happy that the company can move forward with respect to our performance. As reflected today, the third quarter performance or the current performance of Tenaga basically not affected by the situation that we have on the reinvestment allowance.

Anything you want to add?

I think Dato' covered everything already, yeah. Should be okay, yeah.

It's a delicate subject, Dato', yeah.

The contingent capex, 70% utilization still on track. If you look at the three-year period, definitely we are looking at a high percent of the so-called contingent capex.

If we look at the scheme of things with respect to the base and contingent capex, it is only expected that Tenaga will use the so-called base capex first comparatively to the contingent capex. Even not withstanding that, we already utilized the contingent capex in the first months of this year because the way the contingent capex is such is based on the triggering of capex required for a certain category of demand.

If you ask me today, yeah, I think we are very much confident that we can utilize the capex. One of the capex that has been being tasked for us to utilize is actually the contingent capex with respect to the smart meters installations.

That's why you can see from the report just now, we have achieved more than we are targeted. Then again, that is probably for the year.

Then again, that is not the actual target, because the actual target now has moved from 360,000 to complete the whole smart meter installation by this period. Looking at that, definitely the smart meter triggering has happened, and we have start utilize it even though in the first year of the utilization.

If you look from the history of Tenaga, we have always in the last RP able to complete and deliver those capex, and we intend to do the same for this capex allocation that we have for this year as well as the next two years. On the third question, data center underutilized demand, should be a concern?

From Tenaga Nasional perspective, we are actually be aware from day one that data center demand is going to be a step demand, meaning that every month they would be a demand increase. It is not a linear or something that you can expect from the other form of demand growth.

From Tenaga, we feel that looking at the demand growth, it is very much a step approach on a monthly basis, and our retail team is monitoring that. That's why in terms of the generation capacity, I think there are a lot of questions in the past about can the generation capacity cater for it?

I think that question arise because when you look at the demand projected or being asked by data center, they always put the end demand in mind so that we can prepare in terms of the planning. For example, they will ask in their supply application saying that we want a 100 MW data center.

Within those so-called projection, we actually discuss and have a good, I would say, view with respect to the demand growth within that 100 MW, which is a step demand. That's why in terms of the generation capacity, yeah, we mentioned now that 7.1 GW of capacity request.

If you add mathematically our generation and the demand that we have, it may be a concern to many many people. If you look at the growth, the 7.1 is required by a certain year.

It is not today. That's why Tenaga is confident that we can meet the demand.

That's why we actually process the demand, and that is our advice to the government as well. Looking at that growth, I think we are seeing a steady growth of data center, which is part of their planning because the way data center operate as well that they each actually operate in a modular basis, meaning that they can install the so-called CPU or GPU in a modular form based on their so-called client requirement.

If you ask me, we are positive of this, looking at the phased monthly demand growth. It is there, and it will also provide us, Tenaga Nasional, as infrastructure company, the time to build this so-called generation asset as well as our transmission and distribution asset.

We cannot ask for more from the perspective of utility. A good demand with respect to the so-called scheme, and the scale is not too demanding on our infrastructure because we are given the time to actually plan and deliver it.

I think that is my summary with respect to data centers. In the past, I think we have so-called invite the analysts to visit some of data centers, and we are also willing to do that if you feel that is necessary to get the assurance from the data centers players themselves because we are having a good communication with them, and we know what they are up to in that sense, and they also always giving us the so-called heads-up with respect what they require in the coming months.

Thank you.

Thank you very much for the questions, two questions. I take the good one; anything bad, I think I will give to the CFO.

The first one is actually implication for Genco with respect to the extension. As you can see, the PPAs of the power plants normally there is a two-tier pricing mechanism.

There is a period where we earn based on the first-tier tariff, and then the second tier, normally there's a second tariff. With the extension, basically that we'll have a reset, meaning that we will move back to the so-called first tier.

It provide us both the sustainability as well as the potential upside with respect to the revenue for Genco. That's why we are quite excited.

Of course, it is dependent on our performance, but there's a potential for us to go for the upside because it become a reset with respect to the extension. I think the second question, new generation capacity, is there any limit for the bidder can win?

I think in the RFP document, I think it is a public document, there is a range of megawatts specified for the new generation capacity. If I remember correctly, it is about 5,400 to 5,000 MW.

That is the capacity the country is looking at. That's where the bids come about.

I don't think there is any limit for the bidder, but the limit is more if you can say that's a limit, I don't think it's a limit, it is what the industry require. It's about 5,000 MW.

For Tenaga Nasional, we as an incumbent, we feel that we have a good chance. Thank you.

On the second question, it's not bad, actually. Actually, I think it's really our more proactive approach to make sure that we comply with the provision in terms of what has to be impaired and all.

In this particular one, you are right. Actually, it's more of accounting treatment, and this is actually an effort in the way that reflect the true nature.

No, we're not giving up. The collection is actually being underway.

It's just trying to make sure that we follow the accounting standard. Obviously, we are working with specific debtors to make sure that we continue to recover what is due to us.

That's where you can see that to us, yes, this is specific instances, but more importantly, that's why you look at the collections receivable, as well as the ACP that continue to be in there. That's why the collections continue to be strong for us.

Just to add, I think that is the prudent practice that TNB has been doing in the past as well. While we continue to collect, and there are various means, including the last resort is, of course, collection through legal.

Before that, there are two other steps that we are taking to ensure that we get the so-called collection that is due to us. Anything that we collect now become an upside.

That's how I see it. It is probably a good debt provision rather than a bad debt provision.

I'm not an accountant, I can change anything.

On the so-called RFP Category 1, the extension for the three power plants, there are various dates with respect to the start of the extension. What is important is that the extensions will come with the work that for us to ensure the continuity and reliability of the system, we will have to do the so-called rehab of the plant, meaning that we will do a good check with respect to the performance, the current performance, because it is already basically ending of the PPA.

We are going to start doing those planning to do what are the required with respect to ensure that the power plant will continue for the next 5 years of the station. The COD will start around 2028 to 2029, and it is different from each power plant.

In the meantime, the power plant will operate based on the current PPAs. On the second, repowering and Kapar, secure gas turbine, a current status.

For Paka 1, yes, we have had a conversation with the manufacturers, and in particular one manufacturer, we believe we have secured the gas turbine for the project.

Thank you very much, Rachel. On the first question with respect to the so-called loss on the electricity theft, I think we have the figures being quoted for a number of years.

With respect to the so-called TNB perspective, of course we have form a task force with respect to the theft of electricity, especially handling the Bitcoins salmon that has caused the losses to be much bigger than comparatively. The task force is working together with the regulator, Energy Commission, and also the ministry, how best we combat this so-called theft of electricity that is happening currently.

Those figures that you have seen is actually part and parcel of the task force work that the figures that we have identified, and some of those figures we actually have recovered the losses. There are two perspectives: yeah, figures identified, and the other one is actually that is part of the task force work that we have recovered some of those theft of electricity.

With respect to the whole industry perspective, as far as the regulated business, this is actually an industry loss because at the end of the day, the losses is calculated as part of the tariff calculation. It is actually, if I may use the word, it's actually being socialized to the whole industry.

This is where we want to also to encourage the customers, the one that is not basically involved in this is actually affected. Because it is from the industry point of view, it is being socialized.

In that sense, TNB will continue to be aggressive with respect to theft electricity, but at the same time, we want also the public to help us actually report all these cases because the industry is actually at a loss rather than TNB from the perspective of the company itself. That is a theft of electricity.

The second question, I leave it to CFO.

Thanks, Rachel. I'm pleased when people say they think our gearing is relatively low because that's the way we should think about it, because today, as for our gearing level, that's around 52.4%.

You were making references to the regulated industry's guideline. Under the IBR for our regulated business, the overall framework actually allows for 55% gearing ratio.

We believe that there is still some room for us to actually push the gearing ratio to make optimum use of our capital allocations. Like I said, yes, for regulated business that's important, but of course we are very aware that we've got to safeguard our credit rating profiles as well, which, as mentioned earlier, does not tie to specific gearing ratio, but rather the cash flow position of the company as a percentage of that numbers.

We are focusing on this, and you will see hopefully we'll be able to optimize our capital allocation as well as gearing level for both regulated and non-regulated so that we can optimize the return to the shareholders. Thank you.

Thank you, Eliza Teh, on the questions. The first one, for the new gas generation capacity to be announced end of 2025, when will potential plant start up?

This, based on the request for proposal, there is a timeline given or date given for the COD. It is going to be end by 20 2028.

As far as the industry and the regulator is concerned, this is where the expectation of the new generation capacity to be take place. Which is about 4 years from now.

This is also in line with the so-called required construction time of a new power plant between 36 to 42 months. That is the dates as far as the new generation capacity is concerned.

With respect to the power demand of data center, yeah, we give some numbers with respect to the demand to show that there is a growth. In June '25, it was 603 MW.

In September, end of the quarter, 701 MW. I believe in October, it's already 800 and 30 MW.

That is the growth that we are seeing, it is on a monthly basis. I think probably the industry think this is a small number.

This is not. 100 MW is a big number.

Our generation capacity, for example, one of the hydro generation capacity, Chenderoh, for example, is 50 MW. It's a big number.

It is not kilowatt, it's megawatt. It's big in numbers.

I think probably, and if you ask me, I've been in the industry for many many years, and we only see this kind of growth in the early '90s, where we do have the so-called FDI that is coming in with respect to the manufacturing industry from the overseas market, making their Malaysia as their best investment hub. This is actually big.

It is not kilowatt. We are seeing a growth of 100 MW a month.

I think probably that is where electrical engineers like me appreciate it. I think it is a big number with respect to the infrastructure that is required, and of course it is a big number with respect to the sales that we are projecting.

Thank you.

Three questions. Firstly, just a housekeeping.

I saw in the earnings, there was a gain on financial instruments, some RM233 million or something. Could you please explain to us what that was, and is that a recurring feature or non-recurring?

My second question is actually on the financial notes, there was a mention that Tenaga received a letter on 26th November about a approval of investment allowances. Can I check if it's for the future or if it's for the past?

Perhaps the third question again going back to the whole provision, RM10.6 billion. Can we check what will be the steps that Tenaga will be taking going forward to potentially reverse this, or do we think that this is all that we have to pay to the IRB anyway, and there won't be any recoupment?

Thank you so much.

Maybe, Dato', I'll take the question on the provision,

yep.

Sumeet, I think, you all are aware that previously, obviously we claimed the reinvestment allowance under 7A, and after the Federal Court decision, we reviewed our position, and we submitted a claim under 7B, investment allowance. We disclosed in our announcement that we received a letter from MOF on 26th November, that was for investment allowance.

It is for Schedule 7B, and of course it's for future income. The investment allowance is actually from the perspective of the capex previously spent, originally claimed.

That's on the approval. I think most importantly, as well, as far as the amount of 10.6 billion previously disclosed in our quarterly result, as far as the litigations are concerned, you would notice that in the recent announcement, we have also make a statement that we have withdrawn and concluded all the legal arrangement with the tax authorities, for that matter.

All cases has been closed. For accounting purposes, we actually disclosed, as well, in our PYA Note 29 that, as far as the position of the company is concerned, we have actually taken a PYA adjustment to the balance sheet retrospectively to actually reflect the actual situation.

The tax cases was actually for prior years leading up to 2024. It has been reflected as such in prior years adjustment to reflect the actual situation.

As far as the approval letter, obviously I think it's still fresh off the oven, and we are actually still assessing the actual impact of the approval together with our auditors. We should be able, hopefully, share with you direct implication to our effective tax rate going forward, hopefully.

Obviously, we are already in quarter three in December already for 2025. I think as far as the guidance is concerned for 2025, we probably continue to guide it at the current level.

You'll see that nine months, we are at around 29%. Hopefully, however, obviously, going forward, we should be able to have a better, lower effective tax rate.

Bear with us, it's coming through, but we have to take this properly step-by-step to make sure that we get the correct treatment.

Thank you very much, Iwani. I think the question on number one, whether the project award will be to certain players or lump sum, I think that is definitely beyond Tenaga Nasional.

It is the decision by the Energy Commission, I would not want to comment or speculate on those. Thank you.

For the second questions, maybe CFO wants to add?

Thank you, Iwani. I think this just further on to deliberate from what I've mentioned just now.

I think we can inform you that it's not the full amount, but it's a fair amount. I wanted to be clear that I think Iwani have in her questions that 50% guided to foreign investors, that did not come from us.

We did not guide anything, any amount of that approval to anyone. You will understand that all we can say is it's a fair amount, and that's all we can disclose at the moment.

I think what's important is, like I said, we are still assessing the impact. I will not be able to tell you how long and all.

Please bear with us just this time, and to put this into perspective, like Dato' Megat said, this has been there for the last 20 years. We are finally resolving it, just give us a bit more time to actually do it properly this time around.

I think that's really all that we can actually inform you at this point of time,

yep.

As mentioned earlier, this is already December. Tax rate for this year hopefully will be able to manage it a little bit, but in the long term, yes, we do expect the tax rate to go down progressively.

As all of you also would understand that for a big corporates like Tenaga, obviously there are also non-deductible expenses on our balance sheet, including interest restrictions as well as changes in fair value and accretion of interest under MFRS 139. To get to 24% simply like that will take a bit more work for us to get to there.

I think we can guide that yes, it will improve over time as we finalize the impact of the approval by MOF. Last question on RP4 contingent capex, Dato'?

On the last question on RP4 contingent capex, definitely we want the contingent capex to be recognized in RP4 because it is a clear definition that there is a contingent capex. Base and contingent capex is clearly defined under RP4.

I think Iwani made reference to RP3. I think during RP3 period, I would like to say that the contingent capex come after, meaning that in the beginning of RP3, there is no definition of contingent capex.

That's why the capex after discussion with ST comes about in the next RP. I think that is the reason why when we negotiate RP4, we make sure that there is a structured way with respect to addressing the contingent capex.

I think we have gotten that structured way by defining both the base capex and the contingent capex with the so-called projects on both as well as the amount on both base and contingent capex. In that sense, we want to basically make a better definition on the recovery of the capex, and we hope to do so in RP4.

Thank you.

Maybe CFO take the number one?

Yep. Daniel, I think, as mentioned earlier, I think let's be clear that, for the last 20 years, we have claimed under 7A for reinvestment allowance for capex previously spent.

When the Federal Court ruled for us to claim under 7B, we make the application under 7B for the same capex that was spent for the last 20 years. We talk about the approval just now.

Yes. That's why as far as the actual tax liabilities are concerned, we can confirm that as far as payment is concerned, yes, as part of the overall application for 7B application, we actually paid all the tax amount that has been assessed to us.

That's why now we've got the investment approval for future income. Obviously, if we're talking about the cash flow, yes, we have paid it, and that's why we have actually closed all the legal proceeding with the tax authority.

Then obviously, naturally, again, what was the impact going forward? That one, we are still assessing, like I said.

I think it's important to recognize that the overhang in terms of what can happen to us in terms of exposures, in terms of whether it has been settled, finally we put a closure to it. Meaning there is no more exposure in terms of provision or hit to our P&L as far as the exposure is concerned.

Exposures are closed, and it reflects the retrospective adjustments to our balance sheet to reflect actually the fact that our retained earning was built up much higher than it was supposed to for the last 20 years. That's why, retrospectively, we adjust it to retained earning to reflect actually over the last 20 years that would have been the actual retained earning during the years.

That is also in line with the fact that we made the payment for all the tax exposures. That was the closure to it.

Thank you, CFO. For the tax item, I think what Tenaga has done is actually to comply with the regulation with respect to the payment.

I think everybody is aware of the regulation with respect to tax and the payment of tax for the country, and we are actually in compliance in compliance with that. On the second question, the Genco earnings projection, I think the figure that we have shown is the as the end of third quarter figure of 260 million.

We hope that of course, the figure can change towards the end of the year. We hope it's going to be a better figure.

The third quarter, sorry, the third question, RE capacity breakdown of 7.6 GWh in the pipeline. We have a number of pipeline gigawatt in the in our stable.

First is the domestic front, expansion, part of the pipeline is the hydro-floating solar. We have yet to start construction, but it is in our pipeline.

We are talking about 2,000 to 2,500 MW. We have also pipeline with respect to our investment in the UK.

There are a number of potential bid or even securing the land and also the capacity in the UK. We have also the pipeline capacity in Australia.

As everyone remember, we our investment in Australia, we buy a a company that has a right to build RE generation over there. A combination of Malaysia, Australia, as well as the UK provide those so-called RE pipeline of 7.5, 7.6 GW for Tenaga Nasional.

Meaning that our this is part and the foundation for us taking to account the objective of Tenaga in terms of meeting the ESG commitment that we have for the company as well as the for the country.

I guess I'll take this one, Dato'. Yep.

I think, yes, that's why I think it's important to understand that as far as the tax are concerned now, the 7A and 7B, we actually took the position, and this is agreed with our auditor, that we have to treat the two things separately. It's important to note that as far as the previous exposures are concerned, irrespective of whether the approval comes or not, those are already put to closure in terms of the right accounting treatment for it.

In which case was that we have incorrectly filed our tax return for the last 20 years, we have corrected that one through prior year adjustment of 10.6 billion to our retained earning. That is to making sure that as far as exposures and liabilities arising from the previous treatment is already put to close.

This is consistent with the fact that we have already paid the tax assessment as well. Meaning it's settled in terms of that.

There is no more future exposures or anything. It's done for that part.

The approval letter that we got from MOF is actually, yes, in respect of the capex that we are spent in the past, but it's being approved for us to utilize it as investment allowance. Going forward, when we have our income, we would be able to utilize this allowance to actually improve our effective tax rate going forward.

There is no question about the amount is not approved or anything like that, because it is already approved for previous capex that we have spent under the form of investment allowance. Now, going forward, this is what we are assessing in terms of how do we treat the recognition of the investment allowance that was approved by MOF against our future income.

Basically, to put it simply, downside has all been settled. Now it's only upside that we are still assessing the impact for Tenaga.

For the second question on opex, most of you have covered Tenaga very long time, you would know that usually, yes, there is slight uptick in our quarter four opex. Lilian was already nodding her head, because she have seen that so many time over the many years.

Of course, I think we want to make sure that seasonality is adjusted over time, but at the same time, we want it to reflect the actual operation as well as nature of the expenditure on the ground. By nature, however, the fact that all of us human operate on yearly cycles, obviously quarter four, we want to make sure that the i's are dotted and the t's are crossed across all our expenditure.

Naturally, you should expect slightly higher, but nothing unusual. It's just the normal cycle of the reporting of the company.

On question number two, sometimes we also probably have to look from the other lens in that normally in the quarter four, many things get done. Because there is where the so-called the KPIs for the company.

You're actually going to see both, the delivery become heightened in quarter four, and of course we may require opex to be part of the delivery, and it should be also work in tandem. I think that's what we are trying to do.

Yes, there could be an increase in the so-called operating expenses, but we have to make sure that it is also coupled with a better delivery in quarter four. Normally that's what happened because yearly cycle of KPIs take effects towards the end of the year.

Thank you very much, Azim. Ladies and gentlemen in this room as well as over the online, thank you very much for the questions.

As always, please reach out to our investor relations team for any further clarifications. We hope that we have provided a good answer moving forward for the company.

To summarize today's session, the group third quarter performance continue to reflect the stability of our regulated business and the steady momentum from the commercial sector demand, particularly data centers, business services, as well as our retail customers. We also see a strong progress across our strategic initiative right to the ASEAN Power Grid cooperation.

I think all of you will hear more, especially on the APG next year, as we move into the execution mode to strengthen Malaysia position as the regional clean energy hub. As we charge forward under the National Energy Transition Roadmap, we see significant opportunities in RE energy generation, grid modernization, and customer-driven energy solution.

We remain focused on capturing these opportunities responsibly while supporting Malaysia pathway towards net zero 2050. In conclusion, we reaffirm our commitment to driving sustainable growth, enhancing group readiness, and shaping Malaysia long-term energy transition.

For continued trust and support, we remain confident in our ability to build a stronger, greener, and resilient energy future for the nation. Rewarding our shareholders remain a top priority, and we truly value your continued confidence in us.

Once again, thank you very much, and have a pleasant day ahead. Wabillahi taufiq walhidayah wassalamu'alaikum warahmatullahi wabarakatuh.