Agl Energy Limited · ASX:AGL
Agl Energy — Investor Presentation (December 2007)
15 slides from Agl Energy's investor presentation, Dec 17, 2007
Slide 1: AGL Energy Moving Forward
AGL Energy Moving Forward Michael Fraser Managing Director & CEO 17 December 2007
Slide 2: Disclaimer
Disclaimer The information in this presentation: ∙ Is not an offer or recommendation to purchase or subscribe for securities in AGL Energy Limited or to retain any securities currently held ∙ Does not take into account the potential and current individual investment objectives or the financial situa
Slide 3: Financial Outlook
Financial Outlook •• Re-confirm Re-confirmunderlying underlyingNPAT NPATforecast forecastof of$330 $330to to$360 $360million million •• EPS EPSrange range76 76to to83 83cents cents FY2008 FY2008 •• EBITDA EBITDA$830 $830to to$875 $875million million •• Total Totalannual annualdividend dividend52 52t
Slide 4: Financial Outlook
Financial Outlook More relevant guidance metrics Delivering shareholder returns is the overriding financial focus Future guidance around NPAT & EBITDA • EBITDA provides market with greater clarity around operational business performance / cash generation Cease practice of providing medium term earni
Slide 5: The Integrated Strategy
The Integrated Strategy Building a world class customer focused energy company Gas Renewable Thermal Production Generation Generation Upstream Supply • Leverage leading retail position to capture value and growth opportunities Capturing value & growth Capturing value & growth Upstream equity gas The
Slide 6: The Integrated Strategy: Medium term goals
The Integrated Strategy Medium term goals Upstream Gas Generation Gas Renewable Thermal • ~1500 to 2000PJ (2P) over Production Generation Generation • Currently ~3700MW of medium term capacity owned or operated Upstream Supply & under construction (~300MW under const.) • Made up from: Capturing valu
Slide 7: Value Creation Opportunities
Value Creation Opportunities Corporate • Cost initiatives - Organisational downsizing substantially complete - IT outsourcing contracts executed Retail • Broader benefits from whole of system Project Phoenix ‘capability build’ • Adjustments / planned removal of retail price controls • Reduced churn
Slide 8: Project Phoenix - Update
Project Phoenix - Update Release 1 “Live” Completed • Detailed design and build: ― design, configuration & build of all strategic retail business processes, voice architecture, interfaces, reports & industry regulated enhancements ― rationalisation of retail products & rates: ~1,100 to 78 strategic
Slide 9: Project Phoenix – Value Creation
Project Phoenix – Value Creation Delivering world class, scaleable customer management capability The Phoenix initiative is founded on As at 15 December 2008, Release 1 has imperatives to improve service been successfully executed and all the standards, achieve cost leadership and key objectives of
Slide 10: Renewable Energy – Value Creation
Renewable Energy – Value Creation A paradigm shift in market functioning AGL existing renewable portfolio (owned & operated) leads market • 646 MW Hydro • 55 MW Cogeneration, Landfill, Biomass, Bagasse and Solar • 90 MW Wind (off-take and O&M contract) Under construction • 140 MW hydro ― Bogong expa
Slide 11: Conclusion
Conclusion Moving forward • FY2008 ― EBITDA $830 to $875 million ― Underlying NPAT $330 to $360 million ― Dividend 52 to 55 cps fully franked • FY2009 ― EBITDA $870 to $915 million ― Underlying NPAT $360 to $390 million • 1st Phoenix transfer of 1.2 million customers successfully migrated, project r
Slide 12: Further information
Further information A range of information on AGL Energy Limited including ASX & Media Releases, presentations, the inaugural 2007 Annual Report and financial results as well as historical ‘The Australian Gas Light Company’ Scheme Booklets, Annual Reports, Sustainability Reports, presentations and f
Slide 13: Appendices
Appendices y,
Slide 14: Expanded Renewable Energy Target
Expanded Renewable Energy Target • By 2020, an additional 35,500 GWh of renewable energy will be required. This will require the construction of around 11,600 MW of new renewable capacity with total investment of $27.1 b (based upon 35% CF and $2.3 million per MW) • It is not clear what the target t
Slide 15: Hydro Update
Hydro Update Major Dam Levels – week ending 8 Dec 07 Location GL Metres % Full Dartmouth (~180MW) 662.56 412.52 16.95% Yearly % Change -1.31% Min op level 1,260 432.00 32% Eildon (~135MW) 813.21 261.29 24.39% Yearly % Change +10.8% Min op level 100 237.6 3% Rocky (~241MW) 25.75 N/A 91.36% Yearly % C