Agl Energy Limited · ASX:AGL
Agl Energy — Morgan Stanley Asia Pacific Summit 2006
22 slides from Agl Energy's conference presentation, November 2006
Slide 1: AGL Energy: Positioned for Growth
agl energy positioned for growth paul anthony, managing director & ceo morgan stanley asia pacific summit november 2006
Slide 2: Disclaimer
disclaimer the information in this presentation: is not an offer or recommendation to purchase or subscribe for securities in ag! energy limited or to retain any securities currently held does not take into account the potential and current individual investment objectives or the financial situation
Slide 3: Introducing AGL Energy
introducing agl energy commencing from a position of strength * Australia’s largest retailer of gas & electricity * ~ 2.8m customers across NSW, Victoria, South Australia and Queensland + ~ 0.8m customers through JVs in the ACT (ActewAGL) & Western Australia (AlintaAGL) * depth & breadth of operatin
Slide 4: Operational Snapshot
1. Operational Snapshot Retail Customer 2M Gas 1.6M Electric 1.3M Dual Fuel fine. ¥s} Generation 1,757 MW Equity 3,258 MW (inc. JVs) Gas Reserves 3,785 Pfs contracted & Haro generation @ as ceneravon Brown coat generation isi} Cogeneration Landfi and biogas generation fp Upstream gas AlintaAGh WA Ma
Slide 5: The Integrated Strategy: The 'Four Corners' Approach
the integrated strategy the ‘four corners’ approach electricity electricity downstream supply upstream supply bute omes _ Influencing regulatory & industry gas gas
Slide 6: The Integrated Strategy: The 'Four Corners' Approach in Action
the integrated strategy the ‘four corners’ approach...in action upstream supply downstream retail electricity electricity - bidding on 800,000 retail customers in Queensland ~2,700MW of new, clean burn generation projects under review - opportunity to convert 540,000 WA gas customers to dual-fuel ac
Slide 7: Managing Peak Demand
managing peak demand * strategic positions in power generation with focus on peak assets to balance downstream price risk and capture share of profit pool as ‘Hallett wind power > it moves to upstream j = ipeperator SSMWIGA) suppliers _ __ Bogotig: 1 4OMW:Cviey'ariel West Kiewa: currently able to me
Slide 8: Carbon Effective Generation
carbon effective generation lincludes off-take arrangements
Slide 9: Upstream Gas
upstream gas gas - the ‘spark-spread’ equation * extensive, contracted commercial reserves of upstream gas in Eastern Australia of ~ 3,785 PJ ensuring wholesale gas costs are Key. maintained at competitive levels RE aS tor contrack * acquisitive growth opportunities ED qauity interests to secure lon
Slide 10: Integration - The End Game
integration - the end game Diversified, -\, Flexible Portfolio \ ---of Equity & : Contract positions managing & mitigating risk * leverage position as one of the largest purchasers of wholesale gas and electricity in Australia reducing cost of supply * achieve appropriate balance between contract an
Slide 11: The Incremental Approach
the incremental-approach Png pipeline project *lack of committed foundation load resulted in cessation of existing FEED * prior project structure did not meet ag! energy investment return criteria * currently exploring potential incremental build approach with upstream producers *retain project deve
Slide 12: Corporate Structure
corporate structure breaking down silos growing competencies optimisation of hedge
Slide 13: Key Financials
key financials forecast income statement EBITDA 746 EBIT 573 Finance costs -61 Profit before tax 512 a “191. Profit after tax : 321 EPS (cents)! 79.8 i The EPS forecast for the year ending 30 June 2007 is based on weighted average shares outstanding of approximately 402.3 million following compietio
Slide 14: Powering Efficiency & Effectiveness
powering efficiency & effectiveness 4250. aooo-| 3500-| 3000-| 2500-| 2000-| Total FTE 1500-| 1000-| so0_| OPEX/Customer te serve FYz006 FY2007 Fyz008 today postPhoenix further savings
Slide 15: Earnings Outlook
earnings outlook strong earnings! growth to drive TSR + strategy to target high growth energy sectors «- operating scale advantages + value-adding growth opportunities + identified, ongoing cost savings | EBITDA. ($m) | earnings per share (cents) ; Neh acu ad 2006 OF in forecast earnings are on a bu
Slide 16: In Summary
in summary key benefits diversified portfolio of assets across Australia with strong growth opportunities solid, identified growth opportunities in ag! energy’s leading retail, power generation and upstream equity gas portfolios a focused business with expert management a focus on maximizing & susta
Slide 17: AGL Energy: Positioned for Growth
agl energy positioned for growth paul anthony, managing director & ceo morgan stanley asia pacific summit november 2006
Slide 18: Further Information/Contacts
further information/contacts a full range of information on AGL including a soft copy of the scheme booklet, prior AGL annual reports, presentations and financial results are available from our website wwiw.2c). ani alternatively, contact 17
Slide 19: Appendices
appendices - agl energy - financial year 2007 dividend makeup - old agl - share price performance, pre demerger through until delisting - agl & alinta - merger/demerger overview 18
Slide 20: AGL Energy - FY07 Dividends
agl energy - fy07 dividends Represents ~8 months of new AAN (Nov 06-Jun 07). Anticipated to be paid in accordance with existing Alinta financial calendar! “Gfemnsconctnctsenatn, «Final div of ~4.8 cps payable Mar 07 «Interim div of ~14.3 cps payable Sept 07 oe, new AGL Energy 35.4 cents 80 cents ae
Slide 21: Old AGL Share Price Performance
old agl share price performance $24.00 . mmm AGL share price All Ordinaries $22.00 ; $20.00 $18.00 $16.00 $14.00 $12.00 r r T r T : r Oct/O5 —- Nov/O5 Dec/OS5 ss Jan/O6 =~ Feb/06— Mar/O6 = Apr/O6 = May/06 = Jun/O6 = Jul/0G-— Aug/O6 = Sep/06 20
Slide 22: AGL/Alinta Merger/Demerger Overview
: overview ag|/alinta merger/demerger - agl energy holds old agl’s existing energy retail, power generation and upstream gas assets together with an initial 33% interest in Alinta’s WA retail and cogeneration business (now AlintaAGL)! - “new Alinta holds the infrastructure assets and investments and