AGL Energy Limited · ASX:AGL
AGL Energy — FY2000 Earnings Presentation
44 slides from AGL Energy's earnings presentation, 2000
Slide 1: The Company: Annual Results Presentation 2000
The Company Annual Results Presentation 2000
Slide 2: Profit Result
Profit Result OPERATING PROFIT AGL Group $249 million up 19.8% AFTER ABNORMALS $450 million up 103.3%
Slide 3: Profit Composition
Profit Composition Attributable to proprietors $450.0m AGL Group Less Abnormals $201.0m Operating Profit $249.0m Adjustments Depreciation Changes aT ($15.6m) GCRA Adjustment $12.6m Tax Adjustments ($15.6m) ($18.6m) After Adjustments $230.4m
Slide 4: Abnormal Items
Abnormal Items APT $161.9m AGL Group Tax Adjustments (net) $34.6m Breakfast Point sale $9.5m Restructuring costs ($20.6m) CGT writeback $15.6m $201.0m
Slide 5: Dividend (c)
Dividend (c) 1999 2000 AGL Group Interim 21 24 24 Final 24 27 23 50 TOTAL 45 51 23 74
Slide 6: What's Been Happening?
What’s Been Happening? New Strategy Australian Pipeline Trust AGL Group Agility Natural Gas Corporation TransAlta NZ ETSA Power IPS Breakfast Point ACTEW/AGL TransAct Gas Valpo Power Station - NZ
Slide 7: Funds Employed ($m)
Funds Employed ($m) 1999 2000 AGL Group Gas Networks 766 858 Electricity Networks 1024 1044 Gas Pipelines 419 40 Energy Sales & Marketing 108 219 New Zealand 285 1809 Other 258 167 TOTAL 2,860 4,136.7 Up 44.6%
Slide 8: EBIT ($m)
EBIT ($m) 1999 2000 AGL Group Gas Networks 156.8 176.5 Electricity Networks 68.4 68.9 Pipelines 52.8 83.7 Energy Sales & Marketing 50.8 67.7 New Zealand 18.4 104 Other 1.7 14.4 TOTAL 348.9 515.2 Up 48%
Slide 9: Cash Flow ($m)
Cash Flow ($m) 1999 2000 AGL Group OPERATING CASH FLOW 297.2 373.3 Less Capex (433.0) (307.3) Less Net Investments (220.8) (790.6) Less Dividends (139.7) (173.6) Plus Shares Issued 65.2 167.2 NET CASH Flow (438.3) (731.0)
Slide 10: Debt/Equity
Debt/Equity $m AGL Group 2020 Debt 1316 Debt 2086 1524 Equity Equity 1999 2000 Debt/Equity 96.8% Debt/Debt + Equity 49.2%
Slide 11: Performance Indicators
Performance Indicators 1999 2000 Earnings Per Share ($) 0.64 0.74 AGL Group (Pre Abnormals) Earnings Per Share ($) 0.68 1.34 (Includes Abnormals) Return On Proprietors Equity (%) 15.2 26.6 (Includes Abnormals) EBIT on Funds Employed (%) 13.6 14.7 Operating Cashflow/Share ($) 0.91 1.11 Coverage Ratio
Slide 12: AGL Australian Footprint
AGL Australian Footprint Energy Sales Electricity AGL Group Gas Pipelines Generation RESPONSE Energy Shop
Slide 13: Energy Infrastructure: Investment, Management
Energy Infrastructure Investment, Management NSW Gas Networks ACT Gas Networks VIC Electricity Networks Gas Pipelines Agility
Slide 14: Energy Infrastructure
Energy Infrastructure TOTAL REVENUE ($m) GAS TRANSMISSION (PJ) 1086 Investment 199 209 881 1999 2000 1999 2000 GAS NETWORKS (PJ) ELEC. DELIVERED (GWh) 3873 4017 108 111 1999 2000 1999 2000
Slide 15: Gas Networks
Gas Networks EBIT $176.5 million (up 12.6%) 25,562km of networks Investment New mains 685km 868,893 sites serviced Growth in new sites 40,754 (up 5.0%) Capex $64m IPART NSW Asset Base Up from $1.185b to $1.667b 22.8% reduction op. cost per site
Slide 16: Gas Networks: Energy Delivered, Sites Serviced
Gas Networks Energy Delivered Sites Serviced 111 PJ 868,893 Contract 549 Investment Business 26,422 Contract 77 PJ Domestic 841,922 Up 5.0% Business 13 PJ Domestic 21 PJ UP 7.1%
Slide 17: Electricity Networks
Electricity Networks EBIT $68.9m (up 0.7%) Investment 6,874 kilometres of networks Serves 256,258 sites 5,198 new sites (up 2.1%) Capex $36m ORG draft decision CMOS reduced to 93.4 minutes/customer
Slide 18: Electricity Networks: Energy Delivered, Sites Serviced
Electricity Networks Energy Delivered Sites Serviced 4,017 GWh 256,258 Business Investment 23,705 Business 3,013 GWh Up 4.4% Domestic 232,553 Up 2.1% Domestic 1,004 GWh Up 1.9%
Slide 19: Agility
Agility Management, Development AGL’s national infrastructure management and services contracting business Established in June 2000 1,182 staff Contracts with AGL, APT, GSE, Ethane Pipeline, GGT Five year EBIT target $100m
Slide 20: Pipelines
Pipelines EBIT $83.7m (up 58.5%) Management 7,000km pipeline Transportation volumes up 5% QLD Carpentaria up 69.2% WA Goldfields up 7.3% WA Mid West completed Roma to Brisbane 80% looped
Slide 21: Energy Sales & Marketing
Energy Sales & Marketing New South Wales Marketing Victoria Australian Capital Territory South Australia Western Australia Northern Territory Energy Services Other retail businesses
Slide 22: Energy Sales & Marketing: Revenue and EBIT
Energy Sales & Marketing TOTAL REVENUE ($m) EBIT ($m) Marketing 1510 67.7 1178 50.8 1999 2000 1999 2000 EBIT/SALES (%) 4.3 4.5 1999 2000
Slide 23: Energy Sales & Marketing: ETSA Power acquisition
Energy Sales & Marketing ETSA Power acquisition Marketing 1.862 million customers 16% of national market NSW domestic gas consumption up 7% VIC domestic electricity consumption up 1.9% SA domestic electricity consumption up 1%
Slide 24: Other Retail Businesses
Other Retail Businesses 12 Franchised Energy Shops Average sales per shop $2.66m Marketing (up from $1.95m) Sales up 64% ($32m) 28,000 appliances sold AGL Response (50% J.V.) Appliance service and repair business Melbourne metro area Almost 20,000 customer visits
Slide 25: Green Energy Projects
Green Energy Projects Sewerage Treatment Plant Werribee Marketing 26,000 MWh p.a. green power output Landfill Gas Projects Whittlesea Shoalhaven Carbon credits
Slide 26: Natural Gas Vehicles
Natural Gas Vehicles 300 buses Marketing Working to secure next 150 7 refuelling sites operating 3 for buses (AGL owns 2) 4 public refuelling sites (all AGL owned) 2 new facilities under construction Local council programmes
Slide 27: Natural Gas Customers and Volume
Natural Gas Customers Volume 868,028 119.3 PJ Contract/ Wholesale 521 Marketing Business Tariff 26,422 Up 2% Contract/ Wholesale 85.8 PJ Up 3% Domestic Tariff 841,085 Business Tariff Up 5% 12.5 PJ Up 1% Domestic Tariff 21.0 PJ Up 7%
Slide 28: Electricity Customers and Volume
Electricity Customers Volume 993,476 9,458 GWh Non Franchise Marketing 2,372 Up 40% Non Franchise 4,010 GWh Up 40% Franchise 991,104 Up 400% Franchise 5,448 GWh Up 380% Includes acquisition of ETSA Power (SA)
Slide 29: ACTEW/AGL
ACTEW/AGL Australia’s first multi-utility Development Electricity/gas network J.V. Over 200,000 customers Water/sewerage operations J.V. Over 130,000 customers
Slide 30: TransAct
TransAct AGL 20% interest ($26.8m) Development ACTEW 26% interest High speed fibre-optic cable system 140kms cable strung, 3,400kms planned Will pass 110,000 sites (end 2002) Telephony, data, video
Slide 31: LPG: Elgas/HCE
LPG Elgas/HCE Investment EBIT $17.7m (up 70.2%) EBIT/FE 20.7% Cavern operating Elgas/HCE natural hedge
Slide 32: Breakfast Point
Breakfast Point Sold to Rosecorp for $152m Investment Abnormal profit (Lot 1) $9.5m (after tax) Expect to settle 2 Lots in 2000/01 Balance of sale over 6 years Clean up 80% complete
Slide 33: AGL New Zealand Footprint
AGL New Zealand Footprint International Electricity Gas Pipelines Generation Energy Sales LPG LIQUIGAS HUTT VALLEY
Slide 34: Natural Gas Corporation (Including TANZ)
Natural Gas Corporation (Including TANZ) AGL 74.4% Investment Revenue $506.8m EBIT (attributable to AGL) $92.5m Funds Employed $1,598m EBIT/FE 10.6%
Slide 35: Natural Gas Corporation customers
Natural Gas Corporation NGC customers 139,000 Investment Gas 69,000 Electricity 70,000 Gas Volume 42.5 PJ (up 11.5%) Electricity Volume 929 GWh Rights Issue
Slide 36: TransAlta NZ
TransAlta NZ NGC 75.8% (since April) Investment 506,664 gas and electricity customers Four generation plants with 460 MW capacity LPG and gas sales Current takeover offer from NGC
Slide 37: Other NZ
Other NZ Trust Power (20.5% AGL) Investment 32 power stations (hydro & wind) 400 MW capacity 220,000 electricity customers Hutt Valley (100% AGL) Natural gas distribution 26,000 sites Same size as Gas Valpo
Slide 38: Australian Pipeline Trust
Australian Pipeline Trust Successful float 13 June 2000 Investment 88% AGL proprietors requests satisfied Trading at 10% premium Assets $1.24 billion Net cash to AGL $754.0m AGL abnormal profit $161.9m Agility management & service contracts Acquisition rights for new AGL projects
Slide 39: Gas Valpo
Gas Valpo Region V gas distributor Development Over 20,000 customers Rehabilitation/conversion completed June 2001 Gas Valpo 100% AGL owned as of July 2000
Slide 40: Leveraging Advantages - Balance Sheet & Skills Base
Leveraging Advantages - Balance Sheet & Skills Base Investment Diversify returns Appropriate capital structures Marketing Widen products and services Increase customer base Management Asset management Contracting business Development New infrastructure projects New market opportunities
Slide 41: Profit ($m)
Profit ($m) After 450 Abnormals AGL Group 221 197 249 148 208 124 Before 178 Abnormals 1996 1997 1998 1999 2000
Slide 42: Earnings/Share (c)
Earnings/Share (c) After 133.8 AGL Group Abnormals 65.7 68 51.6 74 43.4 59.6 63.9 Before Abnormals 1996 1997 1998 1999 2000
Slide 43: Dividends/Share (c)
Dividends/Share (c) 74 AGL Group 45 41 51 36 30 1996 1997 1998 1999 2000
Slide 44: The Company
SOX OD @*RLHO