AGL Energy Limited · ASX:AGL
AGL Energy — FY2004 Earnings Presentation
19 slides from AGL Energy's earnings presentation, August 2004
Slide 1: Supplementary Information: 2004 full year results
Supplementary Information 2004 full year results Greg Martin, Managing Director
Slide 2: Financial Summary: Profit and Loss (excl. significant items)
FINANCIAL SUMMARY Profit and Loss 2003 2004 change (excl. significant items) ($m) ($m) Revenue 3,924.1 4,183.4 + 6.6% Expenses -3,058.7 -3,309.3 + 8.2% Equity accounted share of JV profits 73.1 84.0 + 14.9% EBITDA 938.5 958.1 + 2.1% Depreciation -122.9 -124.3 + 1.1% Amortisation - intangibles -35.6
Slide 3: Financial Summary (cont.): Profit and Loss (reported)
FINANCIAL SUMMARY (cont.) Profit and Loss 2003 2004 change (reported) ($m) ($m) Revenue 4,687.8 4,201.7 - 10.4% Expenses -3,771.2 -3,348.2 - 11.2% Equity accounted share of JV profits 20.6 91.8 + 345.6% EBITDA 937.2 945.3 + 0.9% Depreciation -122.9 -124.3 + 1.1% Amortisation - intangibles -35.6 -40.
Slide 4: Financial Summary (cont.): Balance sheet
FINANCIAL SUMMARY (cont.) Balance sheet 2003 2004 change ($m) ($m) Current Assets 993.6 1,015.5 + 2.2% Non Current Assets 5,400.9 5,558.6 + 2.9% Total Assets 6,394.5 6,574.1 + 2.8% Current Liabilities 608.7 655.5 + 7.7% Non Current Liabilities 585.7 574.3 - 1.9% Interest Bearing Liabilities 2,047.1
Slide 5: Energy Sales and Marketing
ENERGY SALES AND MARKETING 2003 2004 change ($m) ($m) Revenue 3,106.7 3,473.9 + 11.8% Expenses -2,866.0 -3,204.3 + 11.8% EBITDA 240.7 269.6 + 12.0% Depreciation -7.2 -5.3 - 26.4% Amortisation - intangibles -28.8 -35.6 1 + 23.6% - other -8.1 -9.9 + 22.2% EBIT 196.6 218.8 + 11.3% Operating cashflow 99
Slide 6: Energy Sales and Marketing (cont.)
ENERGY SALES AND MARKETING (cont.) Gas Electricity 2003 2004 change 2003 2004 change Customer accounts ('000) AGL 1,322 1,296 - 2.0% 1,568 1,518 - 3.2% ActewAGL 105 107 + 1.9% 146 142 - 2.7% Total 1,427 1,403 - 1.7% 1,714 1,660 - 3.2% Revenue ($m) 1,092.2 1,293.4 + 18.4% 1,923.4 2,104.4 + 9.4% Gross
Slide 7: Energy Sales and Marketing (cont.): Energy Volumes
ENERGY SALES AND MARKETING (cont.) Energy Volumes GAS (PJ) 2003 NSW Vic Other Total Retail 29.6 29.2 58.8 I&C 40.8 20.0 60.8 Wholesale 19.2 2.1 14.3 35.6 Total 89.6 51.3 14.3 155.2 2004 NSW Vic Other Total change Retail 29.0 37.2 66.2 + 12.6% I&C 37.5 25.9 63.4 + 4.3% Wholesale 21.7 1.3 9.4 32.4 - 9
Slide 8: Energy Networks
ENERGY NETWORKS Gas Electricity 2003 2004 change 2003 2004 change ($m) ($m) ($m) ($m) Revenue 324.7 337.0 + 3.8% 178.0 181.9 + 2.2% Expenses -133.4 -132.9 - 0.4% -89.1 -85.3 - 4.3% EBITDA 191.3 204.1 + 6.7% 88.9 96.6 + 8.7% Depreciation -30.3 -32.8 + 8.3% -17.6 -18.5 + 5.1% Amortisation - intangible
Slide 9: Agility
AGILITY 2003 2004 change ($m) ($m) Revenue 379.0 404.3 + 6.7% Expenses -326.6 -345.6 + 5.8% EBITDA 52.4 58.7 + 12.0% EBIT 50.5 55.5 + 9.9% EBIT: Sales 13.3% 13.7% + 0.4% Operating cashflow 60.8 55.5 - 8.7% Average funds employed 0.4 0.9 Assets under management 2003 2004 change - Gas distribution 26,
Slide 10: NZ (incl. NGC - AGL 66%)
NZ (incl. NGC - AGL 66%) 2003 2004 change (A$m) (A$m) Revenue (e xc l s a le pro c e e ds ) 543.1 417.4 - 23.1% Expenses -297.0 -217.5 - 26.8% EBITDA 246.1 199.9 - 18.8% Depreciation -51.5 -36.4 - 29.3% Amortisation - intangibles -2.5 -0.6 - 76.0% - other -53.0 -33.5 - 36.8% EBIT 139.1 129.4 - 7.0%
Slide 11: NGC - AGL 66%
NGC - AGL 66% Reconciliation AGL EBIT to NGC published EBIT 2004 Balance sheet of NGC ($m) consolidated in AGL Jun-04 (A$m) AGL NZ segment EBIT A$ 129.4 Assets 864.0 converted at average FX rate 1.12 Liabilities 594.4 NZ$ 144.9 Net assets 269.6 add/(less) Outside equtiy interests 89.8 differences in
Slide 12: Power Generation
POWER GENERATION 2003 2004 change ($m) ($m) Revenue 46.9 50.7 + 8.1% Expenses -21.5 -14.1 - 34.4% EBITDA 25.4 36.6 + 44.1% Depreciation and amortisation -5.3 -14.9 + 181.1% EBIT 20.1 21.7 + 8.0% Operating cashflow 26.1 36.8 + 41.0% Average funds employed 271.9 348.9 + 28.3% EBIT: avg funds employed
Slide 13: Power Generation (cont.): Loy Yang
POWER GENERATION (cont.) LOY YANG Performance since acquisition in April 2004 Electricity Sales GWh Average price 3,722 $28.4 $/MWh Profit and Loss Summary (estimated) Apr- Jun ‘04 ($m) Electricity sales revenue 105.7 Mining and other revenue 12.6 Expenses - 35.6 Depreciation - 20.7 Interest expense
Slide 14: Reconciliation: Reported vs. Underlying profit
RECONCILIATION 2003 2003 2004 2004 Reported vs. reported significant excl sig. reported significant excl sig. ($m) ($m) ($m) ($m) ($m) ($m) Underlying profit Energy Networks gas 151.9 151.9 164.1 164.1 electricity 64.0 64.0 70.1 70.1 ES&M 196.6 196.6 218.8 218.8 Agility 50.5 50.5 55.5 55.5 Power Gen
Slide 15: Significant Items
SIGNIFICANT ITEMS H1 '04 H2 '04 FY 2004 Power Generation Windimurra power station -4.2 -4.2 APT Windimurra pipeline -4.2 Tax consolidation impact 27.9 23.7 Telecoms Dingo Blue 16.2 COMindico -7.9 -15.6 TransACT -25.0 -32.3 Tax re. Windimurra writedown 0.5 0.5 Net Significant items -20.4 8.1 -12.3 15
Slide 16: Capital Expenditure
CAPITAL EXPENDITURE 2003 2004 ($m) ($m) Stay in business capex 66.0 80.4 Discretionary/ expansionary capex 228.8 134.0 Total capex 294.8 214.4 16
Slide 17: Debt Profile
DEBT PROFILE 2003 2004 change Net Borrowings $1,977.5 m $2,159.1 m 9.2% Interest cover 4.1 x 5.7 x 1.6 x Gearing (D/D+E) (%) 38.5 % 40.6 % 2.1% Average interest rate 6.6 % 6.4 % -0.2% Debt duration 4.7 yrs 4.8 yrs 0.1 yrs Average exchange rate AUD/USD 0.62 USD 0.68 USD -8.8% AUD/NZD 1.15 NZD 1.12 NZ
Slide 18: Key markets in which AGL does business
This diagram ELECTRICITY GENERATION/ TRANSMISSION DISTRIBUTION RETAIL SERVICES shows the MARKET WHOLESALE key markets Power plant generates electricity Transmission network transports Low voltage electricity distributed Residential, commercial and Designing, building operating, in which AGL for supp
Slide 19: 2004 full year results
2004 full year results Greg Martin, Managing Director