Agl Energy Limited · ASX:AGL
Agl Energy — Merger or Acquisition (February 2016)
84 slides from Agl Energy's merger presentation, Feb 11, 2016
Slide 1: ASX & Media Release: AGL acquires Macquarie Generation assets
AGL Energy Limited Locked Bag 1837 Level 22, 101 Miller St T: +61 2 9921 2999 ABN: 74 115 061 375 St Leonards NSW 2065 North Sydney NSW 2060 F: +61 2 9921 2552 AUSTRALIA AUSTRALIA www.agl.com.au NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ASX & Media Release AGL acquires Macquarie Generatio
Slide 2: Entitlement Offer
Entitlement Offer The Entitlement Offer comprises an accelerated institutional entitlement offer and a retail entitlement offer that includes the ability to trade retail entitlements on the ASX. Under the Entitlement Offer, eligible shareholders are invited to subscribe for 1 new AGL ordinary share
Slide 3: Entitlement eligibility and notes
The Entitlements may only be exercised by eligible retail shareholders, persons with a registered address in Australia or New Zealand and certain categories of investors in Canada (Ontario and Quebec), Denmark, France, Germany, Hong Kong, Ireland, Italy, Japan, the Netherlands, Norway, Singapore, Sw
Slide 4: About AGL and About MacGen
About AGL AGL is one of Australia's leading integrated energy companies and largest ASX listed owner, operator and developer of renewable energy generation in the country. Drawing on over 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upst
Slide 5: Indicative Timetable
Indicative Timetable Institutional Entitlement Offer Date - 2014 Announcement of Entitlement Offer and trading halt Wednesday, 20 August Institutional Entitlement Offer opens Wednesday, 20 August Institutional Entitlement Offer closes Thursday, 21 August Institutional shortfall bookbuild Friday, 22
Slide 6: Shareholder Enquiries
Shareholder Enquiries Eligible retail shareholders will be sent further details about the Entitlement Offer via a shareholder letter to be despatched on or around Thursday, 21 August 2014 and a retail offer booklet to be lodged with ASX on Friday 29 August 2014 and despatched on or around Friday, 29
Slide 7: Macquarie Generation Acquisition
Macquarie Generation 1 Acquisition Michael Fraser CEO & Managing Director Brett Redman Chief Financial Officer 20 August 2014 › Macquarie Generation Acquisition › 20 August 2014 › AGL External NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 8: Disclaimer
Disclaimer 2 This investor presentation (Presentation) has been prepared by AGL Energy Limited (ABN 74 115 061 375) (AGL). This Presentation has been prepared in relation to a pro-rata accelerated renounceable entitlement offer of new AGL ordinary shares (with retail rights trading) (New Shares), to
Slide 9: Disclaimer
Disclaimer 3 Not investment advice This Presentation has been prepared without taking account of any person’s individual investment objectives, financial situation or particular needs. Before making an investment decision, prospective investors should consider the appropriateness of the information
Slide 10: Disclaimer
Disclaimer 4 resources and reserves, acquisition of MacGen assets, coal and gas costs, future carbon prices, estimated mine life, the outcome and effects of the Entitlement Offer and the use of proceeds. The forward looking statements contained in this Presentation are not guarantees or predictions
Slide 11: Disclaimer
Disclaimer 5 The underwriter and their respective advisers, affiliates, related bodies corporate, directors, officers, partners, employees and agents make no recommendations as to whether you or your related parties should participate in the Entitlement Offer nor do they make any representations or
Slide 12: Table of contents
Table of contents 6 › Transaction Overview 7 › Strategic Rationale 10 › Asset Overview 22 › Transaction Funding and Financial Impacts 28 › Conclusion 35 › Supporting slides 37 › Key Risks 44 › Appendices: › Foreign Jurisdictions & Restrictions on Eligibility Criteria 60 › Key Underlying Assumptions
Slide 13: Transaction Overview
7 Transaction Overview › Macquarie Generation Acquisition › 20 August 2014 › AGL External NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 14: Transaction summary
Transaction summary 8 Acquisition accretive to Underlying EPS in FY15. › AGL to acquire the assets of Macquarie Generation (“MacGen”) comprising: » Bayswater (2,640 MW) and Liddell (2,000 MW) coal fired power stations » Hunter Valley Gas Turbines (50 MW), Bayswater B and Tomago development sites, Li
Slide 15: Transaction rationale
Transaction rationale 9 Compelling value proposition for low cost generation assets. Strategy › Acquisition entirely consistent with AGL’s integrated strategy › Conservative valuation approach Compelling Value › Modelled return exceeds both AGL’s cost of capital and investment IRR hurdle of 12%1 Pro
Slide 16: Strategic Rationale
10 Strategic Rationale › Macquarie Generation Acquisition › 20 August 2014 › AGL External NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 17: Long-term coal cost advantage
Long-term coal cost advantage 11 Highly competitive coal position relative to other NSW generators. › Value of MacGen’s fuel position conservatively estimated at $768 million including $596 million in coal contracts: » Substantially contracted until 2025 with low cost coal » Lowest SRMC position amo
Slide 18: Long-term, low cost coal contracts
Long-term, low cost coal contracts 12 Low cost coal contracted to 2025. › Access to multiple, predominantly open-cut, low- MacGen Contracted Coal Volumes1 cost fuel sources › Flexibility to burn high ash coal from surrounding 14.0 mines 12.0 › Long term relationships with three highly 10.0 experienc
Slide 19: AGL's low cost position in NEM
AGL’s low cost position in NEM 13 Leading generation portfolio with low cost positions. Lowest Cost Plant in VIC and NEM Lowest Cost Position of Scale in NSW, AGL’s Largest Load Centre VIC Thermal Merit Order (Ex. Carbon) NSW Thermal Merit Order (Ex. Carbon) Somerton 80 80 SRMC (A$/MWh) SRMC (A$/MWh
Slide 20: Leading integrated position in NEM
Leading integrated position in NEM 14 AGL will be the largest generator, well diversified across fuel sources. Largest Generator in the NEM1 Diversified Generation Mix2 Leading Hedge Position3 12,000 100% 3% Pre Transaction Post Transaction 9% 50 MacGen 90% 8% 17% 45 10,000 AGL (ex. MacGen) 80% 40 1
Slide 21: Rising gas price to alter generation cost stack
Rising gas price to alter generation cost stack1 15 Significant headroom emerging between coal and gas-fired generation2,3. 160 140 $9.00/GJ Gas Price 120 $7.50/GJ Gas Price Short Run Marginal Cost ($/MWhr) $3.90/GJ Gas Price 100 Coal Mac Gen 80 60 40 Over $40/MWh headroom for Macquarie Generation a
Slide 22: NSW supply/demand balance set to improve
NSW supply/demand balance set to improve 16 Declining gas generation to substantially impact supply. › NSW expected to shift from net importer to net QLD Gas Generation and Net QLD-NSW Interconnector Flows1 exporter to Queensland » Increased demand in Queensland from LNG projects (~850 MW) » Reducti
Slide 23: Acquisition model demand assumptions
Acquisition model demand assumptions 17 Assumes closure of Tomago smelter and strong solar PV uptake. › Acquisition model demand assumptions are NSW AEMO Demand (including impact of Solar PV) Projections1 between AEMO 2014 medium and low forecasts › Assumes Tomago aluminum smelter will cease operati
Slide 24: Compelling valuation and deal metrics
Compelling valuation and deal metrics 18 Long term coal contracts provide cost advantage in NSW. › Purchase price includes significant value embedded within MacGen’s: » Long-term, low cost coal contracts » Large existing coal stockpile and coal infrastructure » Strategic location in the Hunter Valle
Slide 25: Valuation upside
Valuation upside 19 Conservative valuation approach. › Tomago » Modelling assumes Tomago smelter shuts in 2017 » Tomago is second quartile on global cost curve1 and EBITDA positive at spot aluminium price2 » Upside if Tomago continues beyond 2017 › Liddell » Capex plan includes all spending needed t
Slide 26: Wholesale electricity markets
Wholesale electricity markets 20 Futures market thinly traded. › Electricity forward curve for FY2014/15-16/17 has dropped from February 2014 to August by ~$4 MWh » Effect for MacGen is partially offset by lower coal cost › EPS accretion statement and valuation is based upon observable forward curve
Slide 27: Improved risk management
Improved risk management 21 Low cost physical generation in NSW provides more balanced hedging. › Provides physical capacity in AGL’s largest load NSW Generation Output Profile1 centre Pre-Transaction Post-Transaction » ~8.8 TWh p.a. and 820k customers 25 Existing consumption » Plus ~2.4 TWh p.a. su
Slide 28: Asset Overview
22 Asset Overview › Macquarie Generation Acquisition › 20 August 2014 › AGL External NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 29: Overview of MacGen
Overview of MacGen 23 MacGen is one of the lowest cost generators in NSW. Overview Location › MacGen comprises two black coal fired power Lismore stations, located in the NSW Hunter Valley Armidale Coffs Harbour » Bayswater (2,640 MW) Tamworth » Liddell (2,000 MW) Narromine Bayswater and Liddell Par
Slide 30: Well-located with significant coal infrastructure
Well-located with significant coal infrastructure 24 MacGen has multiple and low cost recontracting options post 2025. Hunter Valley Coal Supply Chain MacGen: › Access to multiple, low cost coal supply sources - not captive to any mine / Ulan* Wilpinjong* Mangoola* supplier To Moolarben* Muswellbroo
Slide 31: Operational performance improvement
Operational performance improvement 25 Opportunity to improve plant availability. › AGL has developed a whole of life technical MacGen Historical Availability1 strategy which is focused on: » Securing the long term future of Bayswater 100% until at least 2035 Equivalent Availaibility 75% » Managing
Slide 32: Tomago aluminium smelter
Tomago aluminium smelter 26 Electricity contracts in place until 2028. Tomago Overview Tomago Load Profile › Efficient producer with cost in global second quartile1 1,000 › Aluminium production of 542kt in FY132 800 › CSR’s FY14 EBITDA of $402/t3 on share of production 600 MW › Assumed that Tomago c
Slide 33: Tomago aluminium smelter cost curve
Tomago aluminium smelter 27 Tomago attractive cost relative to other smelters globally. 2014 Global Aluminium Cost Curve at A$:US$ 0.911 3,500 3,000 2,500 2014E Cash Costs (US$/t) Current Aluminium spot: Boyne US$2,016/t(2) Tomago Bell Bay Island 2,000 Portland 1,500 1,000 500 0 0 5,000 10,000 15,00
Slide 34: Transaction Funding and Financial Impacts
28 Transaction Funding and Financial Impacts › Macquarie Generation Acquisition › 20 August 2014 › AGL External NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 35: Transaction funding
Transaction funding 29 Funding mix designed to maintain BBB credit rating. › Acquisition funding of $1,582 million: » $1,232 million equity » $350 million debt » Funding mix of 22:78 Debt:Equity strengthens credit metrics › Fully underwritten accelerated renounceable entitlement offer launched today
Slide 36: Pro forma combined Balance Sheet
Pro forma combined Balance Sheet 30 Pro forma Pro forma Pro forma Pro forma AGL Reported 30 Acquisition Acquisition funding for Combined June 20141 ($m) Balance Sheet2 Adjustments 2,3 acquisition Balance Sheet Current assets C ash and cash equivalents 456 - (1,528) 1,528 456 Other financial assets 1
Slide 37: Accounting on acquisition
Accounting on acquisition 31 $156 million to be booked as significant items in FY15. › Enterprise value of $1,548 million made up of: » $1,505 million purchase price1 » $43 million transaction costs: » $23 million before tax of advisory fees » $20 million before tax of funding costs › Acquisition ac
Slide 38: Underlying Profit outlook
Underlying Profit1 outlook 32 Transaction expected to be accretive to Underlying EPS. › MacGen acquisition is expected to be accretive to Underlying EPS for FY15 2,3 and to generate substantial future operating cashflows » Transaction completion early September 2014 » For the period ending 30 June 2
Slide 39: Entitlement offer overview
Entitlement offer overview 33 > 1 for 5 pro-rata accelerated renounceable entitlement offer1 with retail rights trading to raise Offer Size approximately $1,232 million > Approximately 112 million new AGL ordinary shares to be issued (c.20% of issued capital) > $11.00 per new share Offer Price »23.3
Slide 40: Offer timetable
Offer timetable 34 Event Date Trading halt, Institutional Entitlement Offer opens Wed, 20 August 2014 Institutional Entitlement Offer closes Thu, 21 August 2014 Institutional shortfall bookbuild Fri, 22 August 2014 Existing shares recommence trading on ASX Mon, 25 August 2014 Retail Entitlements com
Slide 41: Conclusion
35 Conclusion › Macquarie Generation Acquisition › 20 August 2014 › AGL External NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 42: Summary
Summary 36 MacGen acquisition is another major step in AGL’s strategy. › Delivers ownership of the two lowest cost large scale baseload generators in New South Wales › AGL will have the largest and most competitive generation portfolio in Australia » Increases AGL registered generation capacity to ~
Slide 43: Supporting slides
37 Supporting slides › Macquarie Generation Acquisition › 20 August 2014 › AGL External NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 44: Leading integrated position in NEM
Leading integrated position in NEM 38 AGL now has further substantial low cost physical hedge positions. SA Hedge Position (TWh)1 QLD Hedge Position (TWh)1, 3 Well balanced position, with peak protection Retail cover largely procured from Govt. owned generation • Retail Market Share: • Retail Market
Slide 45: Evolution of MacGen valuation
Evolution of MacGen valuation 39 MacGen impaired PPE by $998m following introduction of carbon tax. › AGL is acquiring MacGen at a cost of $1,548 million › Value written down by ~$1.8 billion in the preceding five years $998m (pre-tax) impairment 4,000 of PPE from introduction of 50.0 carbon tax $1,
Slide 46: Water entitlements provide security of supply
Water entitlements provide security of supply 40 Significant water entitlements and storage capacity. › MacGen has significant water entitlements and MacGen Annual Water Entitlements storage capacity Name Annual Entitlement (GL) » Annual water consumption of 61 GL Major Utility Access License 36 » M
Slide 47: Tribunal conditions
Tribunal conditions 41 Return metrics not affected. › Application to Tribunal: AGL requested that the Tribunal authorise the transaction subject to certain conditions (Conditions) › Tribunal’s Judgment: States that the Conditions had “not been critical” to the Tribunal reaching its view but were acc
Slide 48: Industrial relations
Industrial relations 42 EBA in place for next three years. › EBA operating until December 2016 » Covers ~90% of employees » 3.5% annual wage increase » Four year employment guarantees and protection under sale transaction › MacGen has historically enjoyed a stable and consultative engagement framewo
Slide 49: Low cost position in NEM
Low cost position in NEM 43 Leading generation portfolio with low cost positions across the NEM. NEM Thermal Merit Order (Carbon Exclusive)1,2 Somerton 80 TIPS A TIPS B SRMC (A$/MWh) 60 Yabulu 40 Coal Gas(2) 20 Bayswater Liddell Loy Yang A 0 0 4,000 8,000 12,000 16,000 20,000 24,000 28,000 32,000 36
Slide 50: Key Risks
44 Key Risks › Macquarie Generation Acquisition › 20 August 2014 › AGL External NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 51: Key risks
Key risks 45 1.0 Introduction Investors should be aware that there are risks associated with an investment in AGL. Some of the principal factors which may, either individually or in combination, affect the future operating performance of AGL are set out below. Some are specific to an investment in A
Slide 52: Key risks (cont.)
Key risks (cont.) 46 Downturn in consumption – Levels of energy usage may be adversely affected by a number of economic, social, environmental, regulatory and industry specific conditions outside AGL’s control. Levels of energy usage may also be affected by future technological developments allowing
Slide 53: Key risks (cont.)
Key risks (cont.) 47 2.2 Gas market AGL is exposed to the risk of significant financial loss arising from exposure to physical wholesale gas markets (including risks of failure to receive and/or failure to supply) as well as exposure to the spot market for gas. AGL has a substantial gas portfolio re
Slide 54: Key risks (cont.)
Key risks (cont.) 48 Compliance risk and contractual and other requirements in complex wholesale gas market operations – the price of gas sold to some residential and small commercial and industrial customers is fixed by regulation whereas AGL sources gas to fulfil customer demand either through hig
Slide 55: Key risks (cont.)
Key risks (cont.) 49 2.4 Regulatory environment AGL is required to comply with a number of regulatory obligations, covering matters such as billings, disconnections, marketing practices, customer hardship and call centre performance, as well as regulation in relation to its generation, merchant ener
Slide 56: Key risks (cont.)
Key risks (cont.) 50 risk that is dependent on AGL’s ability to: › influence, and adapt to, energy and related policy; › secure licences and permits required for growth projects; and › influence market design. 2.6 Operating in a competitive market AGL’s retail activities are in fully contestable mar
Slide 57: Key risks (cont.)
Key risks (cont.) 51 2.9 Refinancing AGL’s existing debt tranches will need to be refinanced on their respective maturity dates. AGL may incur increased borrowing costs, or may even be unable to refinance with new debt if its credit profile has deteriorated materially, or if there are reductions in
Slide 58: Key risks (cont.)
Key risks (cont.) 52 2.13 Taxation Taxation positions which AGL has adopted may not be accepted by the relevant taxation authorities. AGL is subject to regular tax risk reviews and audits by the Australian Taxation Office as part of their regular review of big business. The Commonwealth, or (where a
Slide 59: Key risks (cont.)
Key risks (cont.) 53 2.17 Environmental issues Failure to conduct AGL’s activities in accordance with strict controls and processes may cause harm to the environment. Damage to the environment may give rise to significant monetary damages, suspension of operating activities and reputational harm. Ac
Slide 60: Key risks (cont.)
Key risks (cont.) 54 3.2 Access to coal To the extent that MacGen requires coal in excess of the volumes already contracted for or stockpiled, it is exposed to the risk of financial loss arising from an inability to access coal in the required volumes and quality and from volatility in the price at
Slide 61: Key risks (cont.)
Key risks (cont.) 55 3.4 Shift in NSW wholesale electricity risk profile from financial market risk to operational performance risk At present, AGL substantially mitigates its risk of cost of NSW wholesale electricity supply via a variety of financial products mainly financial derivatives. Upon acqu
Slide 62: Key risks (cont.)
Key risks (cont.) 56 3.8 Tomago aluminium smelter MacGen currently holds contracts for approximately 900 MW with the Tomago Aluminium smelter. Tomago Aluminium Corporation has foreshadowed the possibility of the early renegotiation of contracts for the supply of electricity from MacGen to the Tomago
Slide 63: Key risks (cont.)
Key risks (cont.) 57 In particular, statements in this Presentation regarding the impact of the proposed acquisition on AGL’s EPS, credit profile and more generally are based on certain assumptions including: › MacGen is acquired in September 2014; › AEMO low to medium demand cases with spot and con
Slide 64: Key risks (cont.)
Key risks (cont.) 58 4.0 Risk associated with the New Shares 4.1 Risk of dividends not being paid The payment of dividends by AGL is announced at the time of release of AGL’s half year and full year results as determined by the Board from time to time at its discretion, dependent on the profitabilit
Slide 65: Key risks (cont.)
Key risks (cont.) 59 4.3 Risks associated with renouncing rights under the Offer Prices obtainable for retail entitlements may rise and fall over the entitlement trading period. If you sell your entitlements at one stage in the retail entitlement trading period, you may receive a higher or lower pri
Slide 66: Foreign Jurisdictions & Restrictions on Eligibility Criteria
60 Foreign Jurisdictions & Restrictions on Eligibility Criteria › Macquarie Generation Acquisition › 20 August 2014 › AGL External NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 67: Foreign jurisdictions
Foreign jurisdictions 61 This Presentation does not constitute an offer of entitlements or New Shares of AGL in any jurisdiction in which it would be unlawful. Entitlements and New Shares may not be offered or sold in any country outside Australia except to the extent permitted below. Canada (Provin
Slide 68: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 62 f) is either acquiring the entitlements or New Shares as principal for its own account, or is deemed to be acquiring them as principal by applicable law. This Presentation is not, and under no circumstances is to be construed as, an advertisement or a public offerin
Slide 69: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 63 Any financial information contained in this Presentation has been prepared in accordance with Australian Accounting Standards and also comply with International Financial Reporting Standards and interpretations issued by the International Accounting Standards Board.
Slide 70: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 64 In the event that this Presentation, together with any amendment, is delivered to a prospective purchaser of securities in connection with a trade made in reliance on Section 2.3 of NI 45-106, and this Presentation contains a misrepresentation which was a misreprese
Slide 71: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 65 Denmark The information in this document has been prepared on the basis that all offers of Entitlements and New Shares will be made pursuant to an exemption under the Directive 2003/71/EC (Prospectus Directive), as amended and implemented in Member States of the Eur
Slide 72: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 66 › to any legal entity that satisfies two of the following three criteria: (i) balance sheet total of at least €20,000,000; (ii) annual net turnover of at least €40,000,000 and (iii) own funds of at least €2,000,000 (as shown on its last annual unconsolidated or cons
Slide 73: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 67 Pursuant to Article 211-3 of the General Regulation of the AMF, investors in France are informed that (i) no prospectus has been submitted to the approval of the AMF; (ii) the investors, participating in the present offer pursuant to Articles L. 411-2-II-2° of the F
Slide 74: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 68 Ireland The information in this Presentation does not constitute a prospectus under any Irish laws or regulations and this Presentation has not been filed with or approved by any Irish regulatory authority as it has not been prepared for the purpose of an offer of s
Slide 75: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 69 Any subsequent distribution of the entitlements and/or the New Shares in Italy must be made in compliance with the public offer and prospectus requirement rules provided under Decree No. 58 and the Regulation No. 11971 as amended, unless an exception from those rule
Slide 76: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 70 Other than in the entitlement offer, entitlements and New Shares may be offered and sold in New Zealand only to: › persons whose principal business is the investment of money or who, in the course of and for the purposes of their business, habitually invest money; o
Slide 77: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 71 Singapore This Presentation and any other materials relating to the entitlements and the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this Presentation and any oth
Slide 78: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 72 Switzerland The entitlements and the New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This Presentation has been prepared witho
Slide 79: Foreign jurisdictions (contd.)
Foreign jurisdictions (contd.) 73 communicated and will only be communicated or caused to be communicated in the United Kingdom in circumstances in which section 21(1) of FSMA does not apply. In the United Kingdom, this Presentation is being distributed only to, and is directed at, persons (i) who h
Slide 80: Restrictions on eligibility criteria
Restrictions on eligibility criteria 74 Restrictions on Eligibility Criteria to Exercise Retail Entitlements The retail entitlements may only be exercised by eligible shareholders, persons with addresses in Australia or New Zealand and certain categories of investors in Canada, Denmark France, Germa
Slide 81: Key Assumptions
75 Key Assumptions › Macquarie Generation Acquisition › 20 August 2014 › AGL External NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 82: Key assumptions
Key assumptions 76 Effect of MacGen acquisition on earnings. Underlying Profit is the Statutory Profit adjusted for significant items and changes in fair value of financial instruments. Underlying Profit has been presented with reference to the Australian Securities and Investments Commission Regula
Slide 83: Pro forma Adjustments
77 56 forma Adjustments Pro › Macquarie Generation Acquisition › 20 August 2014 › AGL External NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 84: Pro forma adjustments
Pro forma adjustments 78 The Pro forma Adjustments in preparation of the Pro forma AGL Combined Balance Sheet, are summarised below: (a) Pro forma Acquisition Adjustments The Pro Forma Acquisition Adjustments assume a purchase consideration of $1,505 million. In accordance with AASB 3 Business Combi