AGL Energy Limited · ASX:AGL
AGL Energy — Shareholder Meeting (October 2014)
11 slides from AGL Energy's shareholder meeting presentation, Oct 23, 2014
Slide 1: 2014 Annual General Meeting
2014 Annual 1 General Meeting Presented by – Michael Fraser 23 October 2014
Slide 2: FY14 Highlights
FY14 Highlights 2 Solid result given soft demand conditions. › Statutory Profit of $570 million up 52.0% › Underlying Profit of $562 million down 3.9% › Underlying Operating Cash Flow before interest and tax of $1.1 billion › Underlying EPS of 100.8 cents down 5.2% › Dividends per share of 63.0 cent
Slide 3: Integrated strategy
Integrated strategy 3 Delivering growth and diversity of earnings. Energy Retail Markets ENERGY PRODUCTION Production core › 10,500 MW1 of operating › 2.4 million electricity capacity including 1,720 GAS RENEWABLE THERMAL PRODUCTION GENERATION GENERATION customers2 MW of renewable generation › 1.5 m
Slide 4: Strong Market Positions
Strong Market Positions 4 Scale benefits provide competitive advantage. Largest Generator in the NEM1 Leading Retail Position2 Developing Upstream Business3 11,000 10,000 4,000 9,000 3,500 9,000 8,000 Customer Account Numbers 3,000 7,000 7,000 2P Reserves (2P) 2,500 6,000 2,000 5,000 MW 5,000 4,000
Slide 5: AGL strategic priorities
AGL strategic priorities 5 Optimise and grow core business, develop capabilities for future market. Existing Business Model Future Business Model Vertically Integrated Energy Current Priorities Integrated Energy Supplier Solutions Provider 1 Integrate and maximise value of existing generation/tradin
Slide 6: Macquarie Generation
Macquarie Generation 6 Compelling value for lowest cost, large scale NSW generator. › Macquarie Generation’s key assets are: Lowest Cost Position of Scale in NSW, AGL’s Largest Load Centre1 » Two black coal fired power stations 60 in the Hunter Valley, NSW ▪ Bayswater – 2,640 MW Short Run Marginal C
Slide 7: AGL generation portfolio
AGL generation portfolio 7 Diversified across renewables, gas and coal. Generation Capacity - 10.5 GW2 Generation Sent Out FY14 – 43.3 TWh1 9% 6% 2.2 GW Brown coal 14.7 TWh 3% 8% 22% 5% 4.7 GW Black coal 22.6 TWh 34% 1.9 GW Gas 2.1 TWh 16% 0.8 GW Hydro 1.1 TWh 0.9 GW Wind 2.8 TWh 10.5 GW Portfolio T
Slide 8: Retail core operations
Retail core operations 8 Operational excellence continues to improve customer service. › Seamless integration of Average Speed of Answer e-Billing APG customer base 80 1,000 900 60 800 › Speed to answer down to 700 Seconds 20 seconds 600 Thousands 40 500 400 20 300 › AGL churn down to 14.5% 200 (vs
Slide 9: Regulatory pricing
Regulatory pricing 9 Deregulation of retail markets largely complete. Electricity Gas Regulation continues but allows retail New South Wales Deregulated 1 July 2014 prices to reflect market prices (up 11.7% from 1 July 2014) Queensland Deregulated July 2015 (price monitoring) from 1 Deregula
Slide 10: Gloucester vital for NSW gas supplies
Gloucester vital for NSW gas supplies 10 Waukivory pilot proceeding as per approvals. Eastern Australia Gas Demand for Whole of Market1 › Queensland LNG projects to cause significant shift in Eastern Australia 2,250 supply/demand balance 2,000 › Demand to triple over next 2-3 years 1,750 › Glouceste
Slide 11: Outlook
Outlook 11 Solid performance expected despite carbon removal and soft demand. › 2015 Underlying Profit (after tax) expected to be between $575 - $635 million1,2 › Key factors influencing FY15 Underlying Profit are: » Repeal of carbon » Closure of HCE » Growth in wholesale gas margins » Return to mor