Agl Energy Limited · ASX:AGL
Agl Energy — Shareholder Meeting (September 2015)
13 slides from Agl Energy's shareholder meeting presentation, Sep 30, 2015
Slide 1: ASX Release: 2015 Annual General Meeting
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 ASX Release 2015 Annual General Meeting 30 September 2015 AGL Energy Limited (AGL) is today holding its 2
Slide 2: Chairman's Opening Remarks: 2015 Financial Results
2015 ANNUAL GENERAL MEETING CHAIRMAN’S OPENING REMARKS Good morning Ladies and Gentlemen. My name is Jerry Maycock and I am your Chairman. Welcome to AGL’s Annual General Meeting of Shareholders. AGL’s Board and senior management are here to report to you today on the state of your company, its perf
Slide 3: Chairman's Remarks: Underlying Profit and Dividend
investments have created, and continue to create, significant net shareholder value. This value includes the profits realised in prior years from the sales of our former gas interests in Papua New Guinea and shareholding in QGC, as well as the ongoing benefits of low priced gas purchase contracts al
Slide 4: Chairman's Remarks: Solar Farms and Generation Acquisitions
large solar farms in western New South Wales. One of these – at Nyngan – is already operational. The other – at Broken Hill – is due to be commissioned soon. However, the rate at which we have committed to further investments of this type has slowed dramatically, in line with other investors, as pol
Slide 5: Chairman's Remarks: Climate Change and New CEO
levels of less than 2 degrees celsius. We are acting to do so whilst taking care of our obligations to our shareholders, and whilst providing a secure, reliable and affordable supply of electricity and gas to our 3.8 million customers. The formal business of this meeting includes consideration of a
Slide 6: 2015 Annual General Meeting: Andy Vesey, Managing Director and CEO
2015 Annual General 1 Meeting Andy Vesey Managing Director and CEO 30 September 2015
Slide 7: FY15 highlights
FY15 highlights 2 Strong result driven by acquisition of Macquarie and underlying business. › Statutory Profit of $218 million, down 61.8% › Underlying Profit of $630 million, up 12.1% » Excluding carbon repeal impact of $118 million NPAT » Macquarie delivered $112 million NPAT which was $38 million
Slide 8: AGL's strategic roadmap
AGL’s strategic roadmap 3 Strategic transformation continues. 1 Organise for Transformation › Align structure with strategy › Create anticipatory culture 2 Drive Productivity › Improve capital allocation › Improve operational efficiency 3 Unlock Growth › Grow Consumer Market’s share of value › Inves
Slide 9: Operating costs and sustaining capex
Operating costs and sustaining capex 4 Targeting $200 million1 of cash flow savings by FY17. Operating cost › Targeting $170 million (real) operating 1,600 cost reduction over FY16-FY17: 70 1,500 1,460 » $100 million – Identified opportunities 2 $ million 1,400 Normalised2 1,360 in major maintenance
Slide 10: Improve capital efficiency
Improve capital efficiency 5 One-off benefit to free cash flow of ~$1.2 billion targeted for FY16 and FY17. Asset Sales One-off Benefits $m › Macarthur (50%) wind farm sold for $532 million Asset Sales 1,000 › Rationalisation of Upstream Gas assets Working Capital Reduction 200 » Cooper Oil interest
Slide 11: Retail strategy
Retail strategy 6 AGL’s retail strategy is to grow its market share of customer value. 1 › Target higher value market segments 2 › Build loyalty with existing customers 3 › Pursue digital solutions 4 › Provide innovative products and services 5 › Understand the unique needs of vulnerable customers 6
Slide 12: New Energy
New Energy 7 Targeting 1 million smart connections by FY20. Exiting under-performing areas › Closing AGL Smarter Living Stores to focus on connected products Unlocking growth › Increased Solar PV revenue by 23% between FY14 and FY15 › Increased commercial energy efficiency project revenue by 41% bet
Slide 13: Outlook
Outlook 8 Transformation to deliver operating cost and cash benefits in FY16. › FY16 Underlying Profit (after tax) expected to be between $650 - $720 million1 » Non cash accounting changes2 expected to reduce pre tax by ~$50 million » New Energy operating loss expected to increase by $25 million3 ›