Decline In Profit Before Tax Due To Lower Forex Translation Gain & High Generation Costs

30/04/2014

Kuala Lumpur, 24 April 2014 - Tenaga Nasional Berhad (TNB) today announced a lower Profit Before Tax of RM1.23 billion for the 2nd Quarter of the Financial Year ending 31st August 2014 (FY2014) as compared to RM1.60 billion reported in the previous quarter.

During the quarter, the Group recorded lower effective tax rate mainly due to reversal of over provision for tax expense provided in last financial year, reversal of deferred tax provision to reflect the reduction of corporate income tax rate from 25% to 24% as announced by the Government in Budget 2014 and utilisation of reinvestment allowance incentive during the current period. 3 months ended 28th February 2014 (2nd Quarter FY2014)

Summary of highlights:

• Profit Before Tax declined by 23.0% to RM1.23 billion (1QFY2014 : RM1.60 billion)

• Group Operating Profit declined by 3.7% to RM1.47 billion (1QFY2014 : RM1.52 billion)

• EBITDA margin reduced by 1 percentage point to 27.0% (1QFY2014 : 28.0%)

6 months FY2014

• Profit Before Tax declined by 21.4% to RM2.84 billion (1HFY2013 : RM3.61 billion)

• Group Operating Profit declined by 3.2% to RM2.99 billion (1HFY2013 : RM3.09 billion)

• EBITDA margin reduced by 1.6 percentage point to 27.5% (1HFY2013 : 29.1%)

• Lower Forex Translation Gain of RM133.7 million (1HFY2013 : RM786.0 million)

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