Agl Energy Limited · ASX:AGL
Agl Energy — Shareholder Meeting (October 2013)
9 slides from Agl Energy's shareholder meeting presentation, Oct 23, 2013
Slide 1: 2013 Annual General Meeting
1 2013 Annual Generall Meeting Michael Fraser, Managing Director and CEO 23 October 2013
Slide 2: FY13 Highlights
FY13 Highlights 2 Strong cash performance and profit growth. › Statutory Profit of $388.7 million up 238.3% › Underlying U d l i P fi off $598.3 Profit $598 3 million illi up 24.1% 24 1% › Underlying EPS of 108.8 cents per share up 8.8% › Dividend Di id d per share h up 3.3% 3 3% to t 63.0 63 0 cent
Slide 3: Acquisition of Australian Power & Gas (APG)
Acquisition of Australian Power & Gas (APG) 3 Delivers 10% growth in AGL’s customer base. › Acquisition targeted to complete October APG Customer Numbers 2013 ('000) Electricity El t i it Gas G Total T t l Victoria 121 107 228 › Acquisition increases AGL customer base New South Wales 74 25 99 to 3.8
Slide 4: Record level of retail competition begins to slow
Record level of retail competition begins to slow 4 Customer churn and discounts fall in first quarter of FY14. Customer retention › Record levels of competition in FY13 resulted 125,000 in: 100,000 » Retention activity increasing by 65% 75,000 » Acquisition and retention costs increasing by $20 mil
Slide 5: Regulatory pricing
Regulatory pricing 5 Policy settings begin to improve › SA government implemented price deregulation effective 1 February 2013 › Queensland announces deregulation effective 1 July 2015 › AEMC1 report to NSW government reaffirms that competition is effective » Recommendation for NSW Government to der
Slide 6: Wholesale gas portfolio
Wholesale gas portfolio 6 AGL’s gas portfolio provides substantial upside. AGL Contracted Supply – Maximum Annual Quantity1 › AGL is extremely well placed with a long gas 300 position pos o in Q QLD 250 » QLD sourced supply contracts in place to 200 2027 150 PJ 100 » Existing supply contracts allow
Slide 7: Gloucester Gas Project
Gloucester Gas Project 7 Targeting g g lowest cost g gas supply pp y into Sydney-Newcastle y y market. › FEED underway: » WorleyParsons engaged » Geotechnical and survey work for the pipeline › Cooperation Agreement entered into with Gloucester Council to undertake basin wide water study › Conductin
Slide 8: Project Updates
Project Updates 8 Solar projects › Total project cost of ~$440 million, with funding support provided by ARENA ($166.7 million) and the NSW Government ($64.9 million) › Two sites: Nyngan, NSW (102 MW) and Broken Hill, NSW (53 MW), capacity factor of ~26-27% › Construction to start at Nyngan in Jan 2
Slide 9: Outlook
Outlook 9 Solid operating p gpperformance to continue against g backdrop p of soft demand. › 2014 Underlying Profit (after tax) expected to be between $560m - $610m1,2 » After adjusting j g for a change g in accounting g standards that came into effect on 1 July 2013, this guidance compares with an