Agl Energy Limited · ASX:AGL
Agl Energy — Investor Day (March 2002)
26 slides from Agl Energy's investor day presentation, Mar 20, 2002
Slide 1: ODDGEHCHSEEEDONAG aay()
ODDGEHCHSEEEDONAG aay()
Slide 2: Strategic overview: Winning energy company
Strategic overview Greg Martin Managing Director - AGL Winning energy company 20/03/02
Slide 3: A better understanding of AGL's plans
A better understanding of AGL’s plans 08:30 Registration & Coffee 08:40-09:50 Introduction and Strategic Overview - Greg Martin 09:50-10:05 Capital Management and Financial Control - John Fletcher 10:05-10:45 Natural Gas Corporation (NGC) Strategy - Phil James 10:45-11:00 Morning Tea 11:00-11:20 AGL
Slide 4: Where are we now? Where do we want to be?
Where are we now? What are we best at? Where do we want to be? How are we going to get there? 20/03/02
Slide 5: Where are we now?
• Industry leader • Diverse operations - different areas, sectors, regimes • History of “better utility” practices • Previous acquisition momentum • Recent performance volatility 20/03/02
Slide 6: What are we best at?
• Buying and selling energy products and services • Managing and servicing energy transportation assets • Managing in a regulated environment • Developing new energy projects 20/03/02
Slide 7: AGL operations across the energy value chain
MHHEIRIE, JRE UUR) Us] INE]sis|ejs/2 Generation / Production Transmission Distribution ACT (ActewAGL Electricity: Victoria NSW | South Australia MM ACT (ActewAGL 50%) Victoria South Australia Western Australia ACT (ActewAGL 50%) Infrastructure Services: Other: LPG (HCE) 7 New Zealand LPG (Elgas 50%)
Slide 8: Market and regulatory outlook
• Full competition unlikely under three years • States will continue with their own agendas • Some price capping will continue • Energy supply and demand will come into balance • Regulation will harmonise across Australia • Easing of heavy handed regulation 20/03/02
Slide 9: What do we want to be?
What do we want to be? • First choice for investors in our sector • First choice Australian dual fuel retailer • Major wholesaler of natural gas and electricity • Leading investor in energy transportation • Most trusted operator of energy infrastructure • The employer of choice in our sector An Aust
Slide 10: How are we going to get there?
How are we going to get there? • Balance portfolio profile across cash flow, assets and risk/return dimensions • Actively manage portfolio - Keep assets of more value to AGL than other natural owners - Maximise synergies between operations • Maintain financial scale • Ensure management focus on core
Slide 11: Exploit efficiencies from a strong core platform
Fully exploit operating & capital efficiencies from a strong core business platform to deliver attractive EPS growth 20/03/02
Slide 12: The vital elements
WUNINTU NYS) E.NEJR|S)Y| JclOWMPAIN}Y The vital elements Strategic Positions Gas & Electricity Focus in Markets Financial Performance Market Leadership Balanced Portfolio Financial Strength
Slide 13: ClovRIE) |T/AlRLG ELT) MAIAIKIE[TS 6)
ClovRIE) |T/AlRLG ELT) MAIAIKIE[TS 6)
Slide 14: Asset value $M
ClojR[PflR}ayT JP]o}R] [0]. | Oe) Asset value $M Related Non Core Core to Core Related ¢ Networks >1,000 Bsst-4\y * NGC 0 - 500
Slide 15: The strategic initiatives
Redefining the Building on our portfolio strengths Changing the Delivering culture maximum returns The strategic initiatives 20/03/02
Slide 16: Rationalisation and re-configuration
• Sell and rationalise businesses that don’t fit • Target to raise $400 million in next 18 months • Invest funds released in core skill businesses • Restructure businesses for maximum capital and operating efficiency Rationalisation and re-configuration 20/03/02
Slide 17: Refocus back on our core
Refocus back on our core 20/03/02
Slide 18: Distribution assets to stay 100% owned
Distribution assets to stay 100% owned • Goal: to have a sustainable, integrated energy business • Spin off would unfavourably change risk/return balance in portfolio • Both businesses use key skills, deliver good cash flow and reliable returns • Acting now would diminish AGL • Other ways to optimis
Slide 19: Completing the business platform
• Filling the gaps in the portfolio • Securing access to competitively priced energy • Capitalise on New Zealand position • Planning for next phase of expansion Completing the business platform 20/03/02
Slide 20: Realising full value: Retail and Infrastructure
Retail • Winning highest value customers in new markets • Defending valued customers in existing markets • Managing margins/controlling costs Infrastructure • Regulatory risk management • Capital efficiency • Cost control • Generate related service revenue Realising full value 20/03/02
Slide 21: Realising full value: Investments and Corporate
Investments • Extracting full value Corporate • Short term cost reductions • Maximise benefits of shared services • Working capital management Realising full value 20/03/02
Slide 22: Enabling change
• Creating a high performance culture • Attracting and retaining the best people • Performance management • Rigorous measurement through “dash-boards” • Reward systems directly linked to performance Enabling change 20/03/02
Slide 23: Enabling change: skills
ClO}RIE) S)K} UUs Financial Operational Skills Skills Return on investments Marketing Entrepreneurial Skills Skills Enabling change
Slide 24: A modern constitution
A modern constitution • Repeal of 1837 Act of Incorporation & by-laws • Repeal sections of Gas Industry Restructuring Act • Abolition of scale voting and shareholding restrictions • Target date unchanged Enabling change 20/03/02
Slide 25: Value drivers
WUNINTU NYS) E.NEJR|S)Y| JclOWMPAIN}Y Value drivers [] Winning Energy Company Steady State Improving Managing Reconfiguring Operations Capital the Business
Slide 26: Winning energy company: satisfied customers, happy investors
WUNINTU NYS) E.NEJR|S)Y| JclOWMPAIN}Y Satisfied Customers Happy Investors @ Positive economic profit and strong cash generation e Strong EPS growth e@ ASX top 40 e Preferred energy supplier e Preferred energy project developer e Eastern seaboard & NZ North Is. market leadership e@ Measured customer