AGL Energy Limited · ASX:AGL
AGL Energy — Macquarie Securities Australian Conference 2007
24 slides from AGL Energy's conference presentation, May 3, 2007
Slide 1: ASX statement: Macquarie Securities Australian Conference presentation
AGL Eneray Limited Tel: +61 2 9921 2899 ABN 74 115 061 375 Fax: +61 2 9921 2552 AGL Centre, 72 Christie Street Locked Bag 1837 St Leonards, 2065 St Leonards, 2065 www.agl.com.au asx statement 3 May 2007 The following presentation will be made by Managing Director, Paul Anthony to the Macquarie Secur
Slide 2: Strategy update
agl energy Strategy update paul anthony, managing director & ceo macquarie securities ~ australian conference sydney, may 2007
Slide 3: Disclaimer
disclaimer the information in this presentation: is not an offer or recommendation to purchase or subscribe for securities in agi 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 4: Growing from a position of strength
agl energy growing from a position of strength » Australia’s main integrated energy competitor & largest retailer of gas & electricity + 4.1m customer accounts across NSW, Victoria, South Australia, Queensland & Western Australia (includes 100% of JV’s) * ~1.3m dual-fuel accounts (includes 100% of J
Slide 5: Four corners strategy
four corners strategy 12 months deploying executing targeted acquisition strategy - leading industry consolidation supply electricity _ retail electricity ~ acquired 560,000 customers via AlintaAGL Western Australia JV ~ acquired 473,000 retail customers in QLD ~Bogong (Hydro 140MW) ~Hallet (Wind 9S
Slide 6: Operational Snapshot
Operational Snapshor clades: 100% of IVE 3,300 MW equity expacity 5,600 Mw Gowades +00% 1s Re deveiopinent prustest 75,330 Bis contractes avs ~640 Pos enuity vies 2.300 identified rorewabies & atebn bute gas Biecwiaty 4) Wee go Bee SB BD Geior iasogetaraon (32 HW) a uss isetttar {58.6 20%) Sep ceant
Slide 7: Solid & identified growth opportunities
solid & identified growth opportunities _ Current: O5MW Hallett wind farm, 140MW Bogong hydro, 1OMW McKay Creek hydro, 380MW Townsville gas fired, 410MW Mica Creek gas fired, ~420MW combined wind farm S "developments (Vic), 600MW Leafs Gully gas fired, 491M! f aoe _ Potential: Torrens Island a ee go
Slide 8: The end game: leading industry consolidation
the end game leading industry consolidation * Creating a competitive advantage in a Carbon constrained environment * Leveraging significant purchasing power in Australia * Balancing contract & equity positions in upstream gas and generation — Achieving target of 5,O00MW equity generation — Achieving
Slide 9: Generation portfolio update
generation portfolio update
Slide 10: Wholesale price volatility
wholesale price volatility * Current weather conditions impacting wholesale energy prices across NEM, both spot and forward contract markets — average pool price (spot) increase against pcp approximately 70-80% 2007/2008 Flat Forward Contracts. 12 Month Moving Average Underlying Pool Price —NSW OLD
Slide 11: Enhancing the generation portfolio
enhancing the generation portfolio existing portfolio 2005 ities Somerton ? Hallett ———Spot Price Dispatch MW 4,600 $10,000 4,400 1,200 $1,000 4,000 800 r $100 600 400 $10 200 pe ee 0 ie i $1 0:30 2:00 3:30 5:00 6:30 8:00 9:30 14:00 12:30 14:00 15:30 17:00 = 18:30 20:00 21:30 23:00 Half Hour
Slide 12: Enhancing our natural hedge
enhancing our natural hedge 100% of torrens island power station * acquiring 1,280MW torrens island (Sth Aust) gas fired peaking &.intermediate power station (TIPS) for $417m — transaction close date 2 July 07 * delivers immediate natural hedge between 8 upstream generation and downstream (customer)
Slide 13: Enhancing the generation portfolio: mitigating spot market impacts
enhancing the generation portfolio mitigating spot market impacts % TIPS to deliver added portfolio flexibility and robustness ® 240MW Kiewa (Sthn Hydro) scheme still delivering peaking capacity — current dam level approximately 50%, winter snow fail effectively fills three times per year Actuai mar
Slide 14: A balanced generation portfolio
a balanced generation portfolio ag! continues to develop a robust generation portfolio to manage the risk of market cycles ® Flexible generation type ® Diversity of fuel type (coal, gas & hydro / renewables) ® Diversity of generation type - base, intermediate & peak * Ownership of hydro has provided
Slide 15: Competitive leadership in carbon constrained environment
competitive leadership in carbon constrained environment !
Slide 16: Leading the clean technology market
leading the clean technology market ‘includes off-take agreements & JV’s 2 Includes off-take agreements, 100% of JV’s & development projects 14
Slide 17: Competitive leadership: Chicago Climate Exchange initiative
competitive leadership chicago climate exchange initiative % First utility outside North America to join Chicago Climate Exchange * Avenue to liquid market to trade excess carbon credits % Additional incentive to further invest in domestic emission reduction projects + ~AUS $2 billion already invest
Slide 18: Gas: fuel of choice
gas: fuel of choice existing duration & flexibility *® current gas demand fully contracted for next.10 years * extensive portfolio flexibility within both equity.and contract gas — annual contract quantity (ACQ) ‘up & down’, maximum daily quantity (MDQ), take-or-pay (ToP) and flexible delivery point
Slide 19: The business
the business
Slide 20: Re-engineering delivering results
re-engineering delivering results ® 55% reduction in total FTE’s (full time equivalents) » 5.4% reduction in LTIFR (lost time injury frequency rate) *.70% reduction in billing backlogs (Feb.06.v Dec 06) *® 549% reduction in electricity account transfers » 42% improvement in handling time of customer
Slide 21: Transforming retail: Project Phoenix update
transforming retail project phoenix update ahead of schedule & to cost Targeted Cost to Serve reductions Sw * Consolidating disparate operations * Increasing process automation: customer contact, billing, collections and market processes * Reducing IT complexity and costs: 7 OPEX/ Customer to serve
Slide 22: Earnings outlook
earnings outlook strong earnings! growth to drive TSR * targeting high growth energy sectors % delivering operating scale advantages | * value - adding growth opportunities * identified, ongoing cost savings being delivered * solid interim 07 result - on track to meet FYO7 NPAT of $321m EBITDAZ ($m)
Slide 23: On track
on track mergers & acquisitions ® De-merger complete; 1,660 people transferred out & 70 slip up of shared services % Acquisition integration of SunGas & PowerDirect complete * TIPS integration planning well under way % 30% increase in customer accounts, ~300% increase in equity gas & ~300% increase
Slide 24: Strategy update
agl energy Strategy update paul anthony, managing director & ceo macquarie securities ~ australian conference sydney, may 2007
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