AGL Energy Limited · ASX:AGL
AGL Energy — Shareholder Meeting (September 2015)
8 slides from AGL Energy's shareholder meeting presentation, Sep 30, 2015
Slide 1: 2015 Annual General Meeting
2015 Annual General 1 Meeting Andy Vesey Managing Director and CEO 30 September 2015
Slide 2: FY15 highlights
FY15 highlights 2 Strong result driven by acquisition of Macquarie and underlying business. › Statutory Profit of $218 million, down 61.8% › Underlying Profit of $630 million, up 12.1% » Excluding carbon repeal impact of $118 million NPAT » Macquarie delivered $112 million NPAT which was $38 million
Slide 3: AGL's strategic roadmap
AGL’s strategic roadmap 3 Strategic transformation continues. 1 Organise for Transformation › Align structure with strategy › Create anticipatory culture 2 Drive Productivity › Improve capital allocation › Improve operational efficiency 3 Unlock Growth › Grow Consumer Market’s share of value › Inves
Slide 4: Operating costs and sustaining capex
Operating costs and sustaining capex 4 Targeting $200 million1 of cash flow savings by FY17. Operating cost › Targeting $170 million (real) operating 1,600 cost reduction over FY16-FY17: 70 1,500 1,460 » $100 million – Identified opportunities 2 $ million 1,400 Normalised2 1,360 in major maintenance
Slide 5: Improve capital efficiency
Improve capital efficiency 5 One-off benefit to free cash flow of ~$1.2 billion targeted for FY16 and FY17. Asset Sales One-off Benefits $m › Macarthur (50%) wind farm sold for $532 million Asset Sales 1,000 › Rationalisation of Upstream Gas assets Working Capital Reduction 200 » Cooper Oil interest
Slide 6: Retail strategy
Retail strategy 6 AGL’s retail strategy is to grow its market share of customer value. 1 › Target higher value market segments 2 › Build loyalty with existing customers 3 › Pursue digital solutions 4 › Provide innovative products and services 5 › Understand the unique needs of vulnerable customers 6
Slide 7: New Energy
New Energy 7 Targeting 1 million smart connections by FY20. Exiting under-performing areas › Closing AGL Smarter Living Stores to focus on connected products Unlocking growth › Increased Solar PV revenue by 23% between FY14 and FY15 › Increased commercial energy efficiency project revenue by 41% bet
Slide 8: Outlook
Outlook 8 Transformation to deliver operating cost and cash benefits in FY16. › FY16 Underlying Profit (after tax) expected to be between $650 - $720 million1 » Non cash accounting changes2 expected to reduce pre tax by ~$50 million » New Energy operating loss expected to increase by $25 million3 ›