AGL Energy Limited · ASX:AGL
AGL Energy — H1 FY2005 Earnings Presentation
16 slides from AGL Energy's earnings presentation, February 2005
Slide 1: Supplementary Information Half Year Financial Results
Supplementary Information Half Year Financial Results 6 months ended December 2004 Greg Martin Managing Director 1
Slide 2: AGL Business Portfolio: Profit and Loss (excl. significant items)
AGL Business Portfolio Profit and Loss six months ended Dec '03 Dec '04 change (excl. significant items) ($m) ($m) Revenue 2,149.1 2,178.0 + 1.3% Expenses -1,660.8 -1,693.8 + 2.0% Equity accounted share of JV profits 47.5 49.3 + 3.8% EBITDA 535.8 533.5 - 0.4% Depreciation -56.1 -59.8 + 6.6% Amortisa
Slide 3: AGL Business Portfolio: Profit and Loss (reported)
AGL Business Portfolio Profit and Loss six months ended Dec '03 Dec '04 change (reported) ($m) ($m) Revenue 2,165.3 2,995.3 + 38.3% Expenses -1,690.0 -1,907.5 + 12.9% Equity accounted share of JV profits 39.6 44.2 + 11.6% EBITDA 514.9 1,132.0 + 119.8% Depreciation -56.1 -59.8 + 6.6% Amortisation - i
Slide 4: AGL Business Portfolio: Balance sheet
AGL Business Portfolio Balance sheet Dec '03 Dec '04 change ($m) ($m) Cash 199.7 629.5 + 215.2% Current Assets 891.7 846.5 - 5.1% Non Current Assets 5,340.2 4,795.2 - 10.2% Total Assets 6,431.6 6,271.2 - 2.5% Current Liabilities 573.3 577.8 + 0.8% Non Current Liabilities 555.8 407.3 - 26.7% Interest
Slide 5: Energy Sales and Marketing
Energy Sales and Marketing … six months ended Dec '03 Dec '04 change ($m) ($m) Revenue 1,791.4 1,801.9 + 0.6% Expenses -1,613.3 -1,644.0 + 1.9% EBITDA 178.1 157.9 - 11.3% Depreciation -2.2 -2.6 + 18.2% Amortisation - intangibles -14.6 -17.8 + 21.9% - other -5.0 -5.2 + 4.0% EBIT 156.3 132.3 - 15.4% O
Slide 6: Energy Sales and Marketing (cont.)
Energy Sales and Marketing (cont.) Gas Electricity Dec '03 Jun '04 Dec '04 change Dec '03 Jun '04 Dec '04 change Customer AGL 1,297 1,296 1,312 1,577 1,518 1,497 accounts ('000) ActewAGL 105 107 108 147 149 150 Total 1,402 1,403 1,420 1,724 1,667 1,647 Revenue ($m) 704.0 697.0 - 1.0% 1,042.0 1,078.0
Slide 7: Energy Sales and Marketing: Mass Market Churn
Energy Sales and Marketing (cont.) Mass Market Churn 25% Vic Elec 20% Vic Gas Monthly C hurn A nnualised % SA Gas 15% SA Elec 10% NSW Gas 5% NSW Elec 0% Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 7 Source: NEMMCO, Vencorp and company esti
Slide 8: Energy Sales and Marketing (cont.)
Energy Sales and Marketing (cont.) GAS (PJ) (6 month to …) Dec '03 NSW Vic SA Other Total Retail 16.2 22.3 0.0 38.5 I&C 19.0 12.9 2.4 34.3 Wholesale 16.3 16.3 Total 35.2 35.2 2.4 16.3 89.1 Dec '04 NSW Vic SA Other Total change Retail 15.4 20.5 0.1 35.9 - 6.8% I&C 19.0 13.6 2.7 35.3 + 2.9% Wholesale
Slide 9: Energy Networks
Energy Networks Gas Electricity 6 months to … Dec '03 Dec '04 change Dec '03 Dec '04 change ($m) ($m) ($m) ($m) Revenue 180.1 177.8 - 1.3% 89.9 96.3 + 7.1% Expenses -70.9 -67.7 - 4.5% -42.8 -45.3 + 5.8% EBITDA 109.2 110.1 + 0.8% 47.1 51.0 + 8.3% Depreciation -15.2 -17.8 + 17.1% -9.0 -9.6 + 6.7% Amor
Slide 10: Agility
Agility 6 months to … Dec '03 Dec '04 change ($m) ($m) Revenue 199.6 210.4 + 5.4% Expenses -171.1 -176.2 + 3.0% EBITDA 28.5 34.2 + 20.0% EBIT 27.0 32.4 + 20.0% EBIT: Sales 13.5% 15.4% + 1.9% Operating cashflow 15.5 32.9 + 112.3% Average funds employed 5.1 1.0 Assets under management 2003 2004 change
Slide 11: Power Generation
Power Generation 2003 2004 change ($m) ($m) Revenue 23.2 23.2 + 0.0% Expenses -3.6 -3.2 - 11.1% EBITDA 19.6 20.0 + 2.0% Depreciation and amortisation -6.7 -7.7 + 14.9% EBIT 12.9 12.3 - 4.7% Operating cashflow 17.6 18.0 + 2.3% Average funds employed 297.2 502.4 + 69.0% EBIT: avg funds employed 4.3% 2
Slide 12: Power Generation (cont.): Loy Yang
Power Generation (cont.) LOY YANG Performance for the 6 months ended 31 December 2004 Electricity Sales GWh Average price (net of contract amortisation) 7,863 $27.8 $/MWh P&L Cash Flow six months to … Dec ‘04 six months to … Dec ‘04 ($m) ($m) Opening cash 96.3 Electricity sales revenue 257.5 Electri
Slide 13: Reconciliation: Reported vs. Underlying profit
Reconciliation Dec '03 Dec'03 2004 2004 Reported vs. reported significant excl sig. reported significant excl sig. Underlying profit ($m) ($m) ($m) ($m) ($m) ($m) Energy Networks gas 89.4 89.4 89.9 89.9 electricity 33.9 33.9 37.4 37.4 ES&M 156.3 156.3 132.3 132.3 Agility 27.0 27.0 32.4 32.4 Power Ge
Slide 14: Capital Expenditure
Capital Expenditure 6 months to … Dec '03 Dec '04 ($m) ($m) Stay in business capex 53.3 48.9 Discretionary/ expansionary capex 50.4 38.4 Total capex 103.7 87.3 14
Slide 15: Debt Profile
Debt Profile Six months to … Dec '03 Dec '04 change Net Borrowings $1,951.4 m $842.2 m -56.8% Interest cover 6.6 x 6.4 x -0.2 x Gearing (D/D+E) (%) 38.3 % 18.1 % -20.2% Average interest rate 6.0 % 6.2 % +0.2% Debt duration 5.9 yrs 6.0 yrs 0.1 yrs Average exchange rate AUD/USD 0.69 USD 0.73 USD -5.5%
Slide 16: Key markets in which AGL does business
This diagram ELECTRICITY GENERATION/ TRANSMISSION DISTRIBUTION RETAIL SERVICES shows the MARKET WHOLESALE key markets in which AGL Power plant generates electricity for supply to national electricity Transmission network transports electricity from generators to Low voltage electricity distributed v