Agl Energy Limited · ASX:AGL
Agl Energy — Investor Presentation (May 2022)
44 slides from Agl Energy's investor presentation, May 6, 2022
Slide 1: AGL Energy Demerger – Investor Presentation
AGL Energy Limited Locked Bag 3013 Level 24, 200 George St T: +61 2 9921 2999 ABN 74 115 061 375 Australia Square NSW 1215 Sydney NSW 2000 F: +61 2 9921 2552 Australia Australia www.agl.com.au ASX & Media Release AGL Energy Demerger – Investor Presentation 6 May 2022 Attached is a presentation in re
Slide 2: 6 May 2022
6 May 2022
Slide 3: Important notice and disclaimer
This presentation contains summary information only about the current activities of AGL Energy Limited (AGL Energy) and its subsidiaries (Group) as at 6 May 2022. If you are an AGL Energy shareholder, you should read AGL Energy’s scheme booklet dated 5 May 2022 (Scheme Booklet) in full before making
Slide 4: Board unanimously recommends voting in favour of the Demerger
The AGL Energy Board unanimously recommends that AGL Energy Shareholders vote in favour of the resolutions to approve the Demerger The Independent Expert has concluded that the Demerger is in the best interests of AGL Energy Shareholders The AGL Energy Directors believe that the Demerger is the best
Slide 5: Demerger Overview, Accel Energy, AGL Australia, Appendices
1 Demerger Overview 3 Accel Energy post Demerger 2 AGL Australia post Demerger 4 Appendices
Slide 6: The Demerger separates AGL Energy into two industry leading companies
The Demerger is the separation of AGL Energy into two industry leading companies that will advance Australia’s new energy future; enabling a responsible transition of Australia’s energy system towards decarbonisation • The Demerger is the separation of AGL Energy into two industry leading companies:
Slide 7: Demerger is the next step in AGL Energy's history of leading change
The Demerger is the next step in AGL Energy’s history of leading change in the energy industry. The AGL Energy Board believes it will create long-term shareholder value and a strong future for both parts of AGL Energy’s business Energy market changes have impacted AGL’s integrated gen-tailer structu
Slide 8: Benefits of the Demerger for AGL Energy Shareholders
The AGL Energy Board believes that the benefits of the Demerger will ultimately deliver AGL Energy Shareholders superior value through the future performance of both AGL Australia and Accel Energy The AGL Energy Board believes the Demerger will: Distinct dividend policies, capital structures and f
Slide 9: Potential disadvantages and risks of the demerger
There are a number of potential disadvantages and risks of the demerger which AGL Energy Shareholders should consider Potential disadvantages of the Demerger The Demerger will reduce the size and diversification of each company Certain benefits of vertical integration will be lost The Demerger will
Slide 10: Voting timetable for the Demerger
Eligible AGL Energy Shareholders are entitled to vote on the resolutions to approve the Demerger on or before the Scheme Meeting on 15 June 2022. Instructions on how to cast your vote are contained in the Scheme Booklet Event Date First court date 5 May 2022 Voting Forms for the General Meeting and
Slide 11: Two industry leading companies: Accel Energy and AGL Australia
The Demerger will create two industry leading companies. Accel Energy will be Australia’s largest electricity generator and AGL Australia will be a leading multi-service energy retailer with 4.5 million customers services^ AGL Energy AGL Australia Accel Energy FY21 Revenue1 A$m 10,942 8,516 2,897 FY
Slide 12: AGL Australia post-Demerger
AGL Australia post-Demerger
Slide 13: AGL Australia Board and Key Management Personnel
AGL Australia Board and Key Management Personnel Non-Executive Board Patricia McKenzie Mark Bloom Wendy Stops Fraser Whineray Jacqueline Hey Chair Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Key Management Personnel Christine Corbett Damien Nicks Jo Eg
Slide 14: AGL Australia: leading multi-service energy provider
AGL Australia will be a leading multi-service energy provider in Australia with 4.5 million* customer services and a strong base of renewables, firming and storage assets COMPANY OVERVIEW ORGANISATION STRUCTURE • 4.5 million customer services* A leading • 24 TWh electricity demand multi-service • 74
Slide 15: AGL Australia portfolio of gas, hydro and battery assets
AGL Australia will develop, operate and manage a portfolio of gas, hydro and battery storage assets Asset State Asset type Nameplate capacity Flexible Generation & Storage Kiewa scheme VIC Hydro 395 Dartmouth scheme VIC Hydro 185 Eildon Power Station VIC Hydro 120 Copeton Power Station NSW Hydro 22.
Slide 16: AGL Australia investment highlights
Stable and growing Leading energy Carbon neutral Attractive Stable financial Experienced board customer base trader backed by a for scope 1 and 2 market dynamics performance and senior management portfolio of generation emissions immediately team • 4.5m customer services and storage assets • Positio
Slide 17: Strategy and growth pillars
Focused on leveraging positive market dynamics and business strengths to deliver on strategy and growth pillars BUSINESS Customer focused culture building upon a Providing business energy solutions Expand the flexible and green portfolio to enable STRATEGY trusted brand to deepen our relationships a
Slide 18: Carbon neutral Scope 1 and 2 from listing; Net Zero by 2040
From listing, AGL Australia will be carbon neutral for Scope 1 and 2 emissions; targeting Net Zero by 2040 for all emissions What we are already doing Our net zero target includes all emissions – energy we WHAT WE ARE DOING produce, procure and our customers use. As we connect Australians to a susta
Slide 19: AGL Australia stable earnings and cash flows
The AGL Board anticipates AGL Australia will have stable earnings and cash flows underpinned by its history as a trusted retailer providing electricity, gas, broadband and other services PRO FORMA HISTORICAL PROFIT AND LOSS PRO FORMA HISTORICAL CASH FLOWS Year ended Year ended Year ended Year ended
Slide 20: AGL Australia capital structure and dividend policy
AGL Australia will target a dividend policy reflecting a payout ratio of approximately 60% - 75% of Underlying NPAT Capital structure Dividend policy • Based on a ratings advisory services process and the credit metrics of the • AGL Australia to adopt a dividend policy targeting the distribution of
Slide 21: Accel Energy post-demerger
Accel Energy post-demerger
Slide 22: Accel Energy Board and Key Management Personnel
Accel Energy Board and Key Management Personnel Non-Executive Board Peter Botten Diane Smith-Gander Graham Cockroft Vanessa Sullivan Chairman Non-Executive Director Non-Executive Director Non-Executive Director Key Management Personnel Graeme Hunt Markus Brokhof Gary Brown Managing Director and CEO
Slide 23: Accel Energy: Australia's largest electricity generator
Accel Energy will be Australia’s largest electricity generator, providing secure, low-cost electricity generation while developing a renewables and low-carbon firming pipeline and supporting the energy transition COMPANY OVERVIEW ORGANISATION STRUCTURE • Over 8 GW of operated capacity Australia’s la
Slide 24: Accel Energy owned and operated generation assets
Accel Energy’s core business is the generation of electricity for sale in the NEM via a ~8.9 GW portfolio of owned and operated electricity generation assets Owned and operated generation assets Asset Asset type Fuel supply Build year Nameplate FY21 sent-out capacity (MW) generation (GWh) Owned mine
Slide 25: Accel Energy investment highlights
Experienced large-scale generator with long-term, Significant electricity infrastructure with ability 1 low-cost fuel supply 4 to repurpose for growth • Lowest cost energy generation assets in NSW and VIC, critical to NEM energy supply • High value assets leveraged to create low emissions integrated
Slide 26: $2.0b Energy Transition Investment Partnership with GIP
The $2.0b Energy Transition Investment Partnership with Global Infrastructure Partners will enable Accel Energy to accelerate the development of its renewable growth pipeline ENERGY TRANSITION INVESTMENT PARTNERSHIP (ETIP) GLOBAL INFRASTRUCTURE PARTNERS • With over A$100 billion of AUM, Global • Acc
Slide 27: Pipeline of approximately 2.7 GW of renewable and firming projects
Accel Energy will have a pipeline of approximately 2.7 GW of high-quality wind, battery, pumped hydro and other low- carbon firming projects, for which Global Infrastructure Partners intends to fund jointly with Accel $2.0 billion of equity funding Target investment Project Capacity Est. capex decis
Slide 28: Accel Energy climate commitments
Accel Energy’s climate commitments seek to balance Australia’s current and future energy needs with the need to responsibly decarbonise Accel Energy to lead a responsible transition, striking a balance between: • Australia’s current and future energy needs • The need to responsibly decarbonise • Rea
Slide 29: Accel Energy financial performance linked to wholesale prices
Accel Energy’s financial performance is linked to wholesale electricity prices PRO FORMA HISTORICAL PROFIT AND LOSS PRO FORMA HISTORICAL CASH FLOWS Year ended Year ended Year ended Year ended Year ended Year ended A$m A$m 30-06-19 30-06-20 30-06-21 30-06-19 30-06-20 30-06-21 Revenue 4,937 3,869 2,89
Slide 30: Accel Energy capital structure and dividend policy
Accel Energy will target a dividend policy reflecting 80% - 100% of free cash flows after servicing net finance costs Capital structure Dividend policy • Based on a ratings advisory service process and the credit metrics of the entity, Accel • Accel Energy to adopt a dividend policy reflecting 80% -
Slide 31: Your vote is important
Your vote is important
Slide 32: Vote: Board believes Demerger is in shareholders' best interests
The AGL Energy Board believes that the Demerger is in the best interests of AGL Energy Shareholders Any questions – please call the • The Demerger of AGL Energy will create a strong future for the two separate AGL Energy demerger Information Line companies, supporting the responsible and orderly tra
Slide 33: Appendices
Appendices
Slide 34: AGL Australia pro forma revenue and EBITDA by segment
PRO FORMA HISTORICAL REVENUE PRO FORMA HISTORICAL UNDERLYING EBITDA (SEGMENT INFORMATION) (SEGMENT INFORMATION) Year ended Year ended Year ended Half-year Year Year ended Year ended Half-year A$m 30-06-19 30-06-20 30-06-21 ended A$m ended 30- 30-06-20 30-06-21 ended 31-12-21 06-19 31-12-21 Customer
Slide 35: Pro forma historical statement of profit and loss
PRO FORMA HISTORICAL STATEMENT OF PROFIT AND LOSS A$m Year ended Year ended Year ended Half-year ended 30-06-19 30-06-20 30-06-21 31-12-21 Revenue 9,292 9,114 8,516 4,242 Expenses (8,588) (8,496) (8,037) (4,039) Share of profits of associates 32 17 9 7 and joint ventures Underlying EBITDA 736 635 48
Slide 36: Reconciliation of historical EBIT to pro forma underlying EBIT
RECONCILIATION OF HISTORICAL EBIT TO PRO RECONCILIATION OF UNDERLYING EBIT TO PRO FORMA HISTORICAL UNDERLYING EBIT FORMA HISTORICAL NPAT Year Year Year Half-year Year Year Year Half-year A$m ended 30- ended 30- ended ended A$m ended 30- ended 30- ended 30- ended 06-19 06-20 30-06-21 31-12-21 06-19 0
Slide 37: AGL Australia pro forma statement of financial position
AGL AUSTRALIA PRO FORMA HISTORICAL STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 AGL Australia Allocation of assets AGL Australia AGL Australia historical balance and liabilities as a historical Pro forma adjustments pro forma sheet as per HY result of proposed balance sheet balance sheet r
Slide 38: AGL Australia pro forma statement of cash flows
AGL AUSTRALIA PRO FORMA HISTORICAL STATEMENT OF CASH FLOWS Year ended 30-06-19 Year ended 30-06-20 Year ended 30-06-21 Half-year ended A$m 31-12-21 Underlying EBITDA 736 635 488 209 Change in working capital & other non-cash items (52) 89 16 159 Net operating cash flows (before capital expenditure,
Slide 39: Accel Energy pro forma revenue and EBITDA by segment
PRO FORMA REVENUE PRO FORMA UNDERLYING EBITDA (SEGMENT INFORMATION) (SEGMENT INFORMATION) Year Year Year Half-year Year Year Year Half-year A$m ended ended ended ended A$m ended ended ended ended 30-06-19 30-06-20 30-06-21 31-12-21 30-06-19 30-06-20 30-06-21 31-12-21 Trading and Origination 6,823 5,
Slide 40: Pro forma historical statement of profit and loss
PRO FORMA HISTORICAL STATEMENT OF PROFIT AND LOSS Year ended Year ended Year ended Half-year ended A$m 30-06-19 30-06-20 30-06-21 31-12-21 Revenue 4,937 3,869 2,897 1,593 Expenses (3,466) (2,502) (1,874) (1,100) Other income - - 120 - Underlying EBITDA 1,471 1,367 1,143 494 Depreciation & amortisati
Slide 41: Reconciliation of historical EBIT and NPAT
RECONCILIATION OF HISTORICAL EBIT RECONCILIATION OF HISTORICAL NPAT TO PRO FORMA UNDERLYING EBIT TO PRO FORMA HISTORICAL NPAT Year Year Year Half-year Year Year Year Half-year A$m ended ended ended ended A$m ended ended ended ended 30-06-19 30-06-20 30-06-21 31-12-21 30-06-19 30-06-20 30-06-21 31-12
Slide 42: Accel Energy pro forma adjustments to financial position
Pro forma Adjustments AGL Australia AGL Australia Financing Retained stake Settlement of Transaction Transfer of AEMO Reclassification Derivative Deferred tax Accel Energy A$m Statutory historical corporate assets structure in AGL Australia deferred costs pool purchase of initial margin pro forma Re
Slide 43: Accel Energy pro forma statements of cash flows
PRO FORMA HISTORICAL STATEMENTS OF CASH FLOWS Year ended Year ended Year ended Half-year ended A$m 30-06-19 30-06-20 30-06-21 31-12-21 Underlying EBITDA 1,471 1,367 1,143 494 Change in working capital & other non-cash items (32) 66 (76) (23) Net operating cash flows 1,439 1,434 1,067 471 (before cap
Slide 44: Investor relations contacts
James Thompson Brett Cox Sophia Li Head of Investor Relations Head of Media Relations Group Treasurer Mobile: +61 403 183 563 Mobile: +61 498 074 613 Mobile: +61 476 809 190 Email: jthompson5@agl.com.au Email: bcox@agl.com.au Email: sli4@agl.com.au neighbourhood. 131 245 Download agl.com.au/ faceboo