Agl Energy Limited · ASX:AGL
Agl Energy — Investor Presentation (March 2002)
32 slides from Agl Energy's investor presentation, Mar 20, 2002
Slide 1: Winning in the energy market
Michael Fraser Group General Manager - Energy Sales and Marketing Winning in the energy market 20/03/02
Slide 2: Market environment and AGL position
• Market environment • AGL Position 20/03/02
Slide 3: Gas market size & growth
- Gas market size & growth 20/03/02
Slide 4: Electricity market size & growth
- Electricity market size & growth 20/03/02
Slide 5: Power generation cost structure
Power generation cost structure 20/03/02
Slide 6: Electricity supply
Electricity supply • Focus on new peak load generation - Vic and SA focussed on peak load • Increased interconnection between states - can reduce risk and increase liquidity • Retailers becoming vertically integrated 20/03/02
Slide 7: Gas supply
Gas supply • New fields increasing producer competition • Key decisions on future gas supply being made • AGL adopting portfolio approach - maximises market options - increases security of supply 20/03/02
Slide 8: Customer choice
Customer choice • Industry wide system and process issues • Scale essential for competitiveness • Government intervention is a major issue • Industry rationalisation 20/03/02
Slide 9: AGL market environment / AGL position
• AGL market environment • AGL position 20/03/02
Slide 10: Value chain
i, fame Gas supply/ Value chain: : ission > Gorertion renemiselon 7 Energy ] ‘ Product: Electricity oe Priorities Eastern/SE Seaboard | i |
Slide 11: Victoria, NSW (ACT) & SA account for 65% of the energy revenue pool
Victoria, NSW (ACT) & SA account for 65% of the Australian energy revenue pool 20/03/02
Slide 12: AGL looking to build on existing positions in Vic, NSW and SA
AGL is looking to build on existing positions to capture an increased share of the Vic, NSW (ACT) and SA markets 20/03/02 Percentage of customer relations
Slide 13: Mandatory Renewable Energy Target 2002 - 2010
PIEINTEWWAJBILe} EINVE|A|GY Mandatory Renewable Energy Target 2002 - 2010 GWh’'s [o>} 8 T
Slide 14: Three key performance drivers for the retail energy business
There are three key performance drivers for the retail energy business • Aggregate scale • Efficiency of portfolio • Smart marketing 20/03/02
Slide 15: AGL has the existing scale to grow organically in major profit pools
AGL has the existing scale to grow organically in major profit pools 20/03/02
Slide 16: Three key performance drivers for the retail energy business
There are three key performance drivers for the retail energy business • Aggregate scale • Efficiency of portfolio • Smart marketing 20/03/02
Slide 17: Diversified portfolio of hedge and gas contracts
• Diversified portfolio of electricity hedge contracts • Diversified portfolio flexible wholesale gas contracts 20/03/02
Slide 18: Portfolio of physical generation assets
• Portfolio of physical generation assets • Significant demand side management program 20/03/02
Slide 19: Portfolio of natural gas pipeline capacity contracts
• Portfolio of natural gas pipeline capacity contracts • Transmission network units in the portfolio to hedge numerous inter-regional exposures 20/03/02
Slide 20: Trading strategy: a practical example
Trading strategy: a practical example 20/03/02
Slide 21: PNG Gas Electricity Flow Gas Flow
PNG Gas Electricity Flow Gas Flow Cooper Basin Hallett Somerton 20/03/02 Bass Strait
Slide 22: Gas from PNG or Cooper Basin to Hallett Power Station
Gas from PNG or Cooper PNG Gas Basin to Hallett Power Station Electricity Flow Gas Flow Cooper Basin Hallett Somerton 20/03/02 Bass Strait
Slide 23: Gas from PNG or Cooper Basin to Hallett Power Station
Gas from PNG or Cooper PNG Gas Basin to Hallett Power Station Electricity Flow Gas Flow Cooper Basin Hallett • AGL covers high demand exposures in SA with peaking generation Somerton • Somerton Power Station will hedge exposures in Victoria and South Australia in conjunction with an inter-regional h
Slide 24: PNG Gas Electricity Flow Gas Flow
PNG Gas Electricity Flow Gas Flow • AGL covers high demand exposures in SA with peaking generation • Somerton Power Station will Cooper Basin hedge exposures in Victoria and South Australia in conjunction with an inter-regional hedge Hallett • Gas from PNG or Cooper Basin to Hallett Power Somerton S
Slide 25: Gas can be directed to Sydney
Gas from PNG or Cooper Basin PNG Gas Electricity Flow or Bass Strait can be directed to Sydney Gas Flow Cooper Basin Hallett Somerton NSW imports electricity from Queensland and Victoria 20/03/02 Bass Strait
Slide 26: Three key performance drivers for the retail energy business
There are three key performance drivers for the retail energy business • Aggregate scale • Efficiency of portfolio • Smart marketing 20/03/02
Slide 27: Corporate image survey 2001
Corporate image survey 2001 20/03/02
Slide 28: Corporate image survey: service delivery
MAL INTTIALING UNS) Joluial TY) JSJE}AWVIIChE - AGL NSW 100 AGL Canberra 90 &| Uocal Government - AGLSA 80 ~~ ® _ _—}— Utilities _— ® am — Airlines aa GETTING THROUGH % s ISPs —~ Banks 40 30 20 10 0. 0 10 20 30 40 50 60 70 80 90 100 SERVICE DELIVERY %
Slide 29: Profit differences between Industrial, SME and Residential Customers
Profit differences between Industrial, SME and Residential Customers Small to Medium Industrial Residential Enterprises Profit differences Profit differences Profit differences between customer between regions between States segments within within a State a State 20/03/02
Slide 30: Retain and win the highest value customers
“Retain and win disproportionate share of the highest value customers through superior segmentation, customer management and marketing.” 20/03/02
Slide 31: Scale advantages and efficiency will determine winners
• Participants with scale advantages will be winners • Efficiency of portfolio important for winning • AGL has the No.1 national energy brand • AGL well placed to participate in rationalisation 20/03/02
Slide 32: Mimi: Comfort darlinks, comfort
Mimi “Comfort darlinks, comfort” 20/03/02