Agl Energy Limited · ASX:AGL
Agl Energy — Shareholder Meeting (2004)
15 slides from Agl Energy's shareholder meeting presentation, 2004
Slide 1: Annual General Meeting 2004
2004 Annual General Meeting Greg Martin, Managing Director
Slide 2: 2003-2004 Priorities
2003 -2004 PRIORITIES Enhancing businesses Performance within AGL’s core asset portfolio Building & developing Platform positions of market leadership Retail capability and People organisational effectiveness 2
Slide 3: Business Segment Performance
BUSINESS SEGMENT PERFORMANCE Percentage Change in EBIT 2004 vs 2003 12.0% 8.0% 4.0% 0.0% -4.0% -8.0% -12.0% Power New Gas Electricity Sales & Agility Energy Generation Zealand Network Network Marketing Investments 2004 21.7 129.4 164.1 70.1 218.8 55.5 86.7 EBIT ($m) Good underlying results across th
Slide 4: AGL's Business Portfolio
AGL’S BUSINESS PORTFOLIO ELECTRICITY MARKET GENERATION/ TRANSMISSION DISTRIBUTION RETAIL SERVICES WHOLESALE ENERGY ENERGY CHILE AGILITY* HCE POWER ASSETS NETWORKS SALES & GAS- MARKETING VALPO LOY YANG A ELGAS APT (32.5%) ACTEWAGL (50%)• (30%)• (50%)* GAS MARKET PRODUCTION/ TRANSMISSION DISTRIBUTION
Slide 5: Power Generation
POWER GENERATION Landfill Gas Gas Fired Wind farm PPA Coal Fired Acquired a 32.5% interest in Loy Yang Power in April 2004 Canunda Cawse Greenfield Rockingham Hallett Growth opportunities Starfish Hill Gosnells Nowra - Peaking power plant Coopers Brewery Loy Yang A - Renewable Energy Werribee Somert
Slide 6: Energy Networks
ENERGY NETWORKS Increase in network customer sites Gas: 3.6% Electricity: 2.5% Customer Connections Gas: 924,600 Victorian electricity New South Wales network gas network Electricity: 279,100 Continued organic growth 6
Slide 7: Agility
AGILITY Third party revenue: Currently 17% Forecast 25% (in 2006) Tasmania office opened in Feb 2004 Now with offices and operations across Australia Agility Contracts Water Electricity network Gas pipeline Power generation Gas network Continuing to win new customers nationally 7
Slide 8: Agility - Market Opportunities
AGILITY - MARKET OPPORTUNITIES Agility’s target market - $9.2bn Strategic Asset Strategic infrastructure Management planning/advice Electricity distribution Value created for client Water Infrastructure asset Planning: 1-3 yr Asset spending programs Gas distribution Management Gas transmission 12 mt
Slide 9: Energy Sales and Marketing
ENERGY SALES AND MARKETING Dual fuel accounts: 2004: 864,000 % change: 9.1% (on prior year) SA Vic NSW Total Customer accounts: 2004: 3.1 million % change: -2.5% Gas Electricity Good performance in increasingly competitive markets 9
Slide 10: Energy Retailing - A Margin Game
ENERGY RETAILING - A MARGIN GAME REVENUE Invoice 3.1 million $3.4 bn customers WHOLESALE Purchase gas ($1.9 bn) ENERGY COSTS & electricity TRANSPORT & Transport gas & ($1.0 bn) DIST’N COSTS electricity ($0.3 bn) OPERATING 5.7 m customer calls p.a. COSTS 4 call centres 14.5 million bills p.a. > 600,0
Slide 11: Sustaining Our Business
SUSTAINING OUR BUSINESS Our Customers • Providing a safe & reliable supply of energy • Responding to changing service expectations Our Community • Engaging & giving back to make a difference • ‘Energy for Life’ tangibly supports the community Our Environment • Minimising our own & our customers’ env
Slide 12: Energy Market Growth Profile
ENERGY MARKET GROWTH PROFILE Forecast growth in energy demand 50% $30 billion of energy infrastructure to be built by 2020 0% Future activity based on organic 2004 2008 2012 2016 2020 growth and sector consolidation Gas Electricity Continued growth in demand for energy 12
Slide 13: Operating Performance Update
OPERATING PERFORMANCE UPDATE • Retail – Competition for customers remains strong (especially in Victoria) – Maintaining & increasing market share after losses early in financial year • Weather – 2004 winter slightly warmer than last year • Loy Yang Power – Solid business performance offset by low wh
Slide 14: 2004-2005 Priorities
2004 - 2005 PRIORITIES • Increasing Shareholder Value – Organic growth – Greenfield opportunities – Optimal capital structure • Strengthening the business platform – Improve efficiency to compete effectively – Acquisition opportunities • Building people and organisational capabilities 14
Slide 15: Annual General Meeting 2004
2004 Annual General Meeting Greg Martin, Managing Director