Enabling a Stable Regulatory Environment

As one of the larger stakeholders of the Malaysian Electricity Supply Industry (MESI), we have always championed a
fair regulatory environment for all stakeholders. We believe that the recently implemented Incentive Based Regulation
(IBR) and the Imbalance Cost Past Through (ICPT) mechanism are in line with the creation of such an environment. The
implementation of the IBR has ensured that utilities will be allowed to achieve an equitable return on their assets,
provided that they are able to meet both the performance and efficiency levels required by regulators. Furthermore,
the ICPT mechanism has helped mitigate shocks from fluctuating global fuel prices through regularly scheduled
ICPT adjustments in line with any market movements. We are of the view that the implementation of both the IBR and
ICPT marks a turning point in MESI history.

We will continue to support and champion a stable and fair regulatory environment for all stakeholders of MESI, given
the importance of MESI in the continued development of this fair nation.

Exceeding Customer Expectations

At TNB, we always put our customers first in whatever we do. Key to this has been our ability to satisfy our customers
by providing quality, reliable and efficient electricity services at fair and reasonable costs. Throughout the years, TNB
has progressively increased investments in our customer service capabilities. We will continue do so as we look to
transform our customer journey by taking up enterprise-scale digitisation and development of new products and services
offerings. Along with collections transformation, these three elements will form the core focus areas for us to continue our
push to exceed our customers' expectations.

Driving Operational Excellence & Cost Efficiencies

We are a 66-year-old "technical" company. The focus on being operationally excellent and efficient has always been
part of our corporate identity, and is something that we never take for granted.
As such, our operational capability is continuously adapted and operation performances streamlined to increase
cost efficiencies and ensure performance targets are met. Whilst we continue to focus on the key value chains of our
business, namely Generation, Transmission and Distribution, we have also added a fourth focus area: Optimisation
of support functions. We believe that moving forward, corporate optimisation of certain key support functions will
unlock resources which can be invested in growing new markets and service improvements.

Growing Profitable Business

In order to achieve our aspiration to be "Domestic and Regional Champion" (DRC), it is imperative that we
outperform market growth and look to enhance our profitability. We will focus on strengthening our positions in our core
market whilst growing our service offerings to cater to customers across the value chain and increasing sales in
emerging markets. Acquisitions will form an integral part of our growth strategy. We will also focus on growing the
unregulated business segment, both domestically and in global emerging markets, developing our renewable energy
portfolio and energy-related services and the cost and complexity in our existing subsidiaries.

Transforming Our People and Leadership

Our dedicated people are the driving force behind our achievements. Critical in sustaining our growth moving forward
is the ability to attract and develop high quality leaders. We are ambitious in our goal of becoming a DRC, and
require leaders who are just as ambitious and can help us attain our targets. Equally important is the need to ensure
sustainable development of current and future generations of technical and functional talents who will play a decisive
role in the successful execution of our strategies. The implementation of an organisation renewal exercise will further
ensure identification and repositioning of various critical roles and functions whilst optimising our current workforce.