AGL Energy Limited · ASX:AGL
AGL Energy — The Australian Gas Light Company — Securities Institute Presentation (November 2002)
16 slides from AGL Energy's conference presentation, Nov 27, 2002
Slide 1: The Australian Gas Light Company Securities Institute Presentation
THE AUSTRALIAN GAS LIGHT COMPANY Securities Institute Presentation 27 November 2002
Slide 2: Market Structure Evolving
MARKET STRUCTURE EVOLVING • Australian energy sector consolidating rapidly after privatisation & restructuring period • Strong interest in Australian energy • Major changes in industry ownership & market sector arising from participants - particularly in retail and generation US & European “sector c
Slide 3: AGL Response
AGL RESPONSE • Diversified energy portfolio across regulated and unregulated assets in multiple markets • Economies of scale and margin focus • Developing and • Retail marketing and customer management building upon strategies centred on sustainable long term positions of market customer relationshi
Slide 4: Four Part Corporate Strategy
FOUR PART CORPORATE STRATEGY DELIVERING MAXIMUM RETURNS REDEFINING THE PORTFOLIO COMPLETING BUSINESS PLATFORMS BUILDING CAPABILITIES
Slide 5: A Balanced Portfolio of Energy Businesses
A Balanced Portfolio of Energy Businesses • National Infrastructure • National Infrastructure & Management & Services Management Services • Energy Distribution Networks • Gas Distribution Networks • National Energy Sales & • Wholesale Gas & Gas Processing Marketing • National Energy Metering Funds e
Slide 6: Financial Performance
FINANCIAL PERFORMANCE DELIVERING 2001 2002 % Change MAXIMUM $m $m RETURNS • Solid recovery Underlying net profit ($m) 224.1 247.1 10.2 Operating cash flow ($m) 297.4 344.3 15.8 • Results in line with ROE (%) (Including significant items) 6.3 9.6 52.4 expectations EPS (Excluding significant items) (c
Slide 7: AGL Portfolio Analysis
AGL PORTFOLIO ANALYSIS Core Related Non Core AUSTRALIA • AGL Networks • TransACT • WA Power • AGL Retail • Elgas Generation • Grow and develop • AGL Wholesale • HCE • COMindico core businesses • ActewAGL • Property • Agility • Rationalise or • APT dispose of non core businesses NEW ZEALAND & OTHER •
Slide 8: NGC (AGL 66%) NZ Assets
NGC (AGL66%) NZ ASSETS Transmission System Southdown Cogeneration Power Station (50%) Distribution Networks • Clear strategic Maui Gas Pipeline (NGC Operated) direction Kapuni Gas Treatment Plant Kapuni Cogeneration Plant (50%) • Exited energy Cobb Hydro Station retailing Taranaki Combined Cycle Pow
Slide 9: Energy Retail Market Leadership
ENERGY RETAIL MARKET LEADERSHIP Keys to Success:- • Scale & margin • Energy purchasing costs • Strong risk management focus • Brand recognition AGL has more than 3.1 million retail energy accounts...
Slide 10: Growing the Victorian Retail Business
GROWING THE VICTORIAN RETAIL BUSINESS Melbourne CBD • Wholesale energy purchasing fully integrated • Identified synergy benefits being delivered - on target • Customer churn levels running to expectations Pulse integration proceeding smoothly...
Slide 11: Electricity Risk Management
ELECTRICITY RISK MANAGEMENT TYPICAL PORTFOLIO STRUCTURE • Significant peak demand growth MW • Construction of gas fired peaking plants • Vertical integration to manage costs & 1 3 5 7 9 11 13 15 17 19 21 23 Time (hours) diversify risks Swaps Collars Caps • Structured deals to AGL Generation Demand T
Slide 12: Future Gas Supply
FUTURE GAS SUPPLY PNG TIMOR SEA NORTH WEST SHELF • Negotiating for new gas COOPER • Focus on building a competitive gas portfolio OTWAY KIPPER GIPPSLAND Securing competitively priced gas...
Slide 13: Building Competitive Advantage
BUILDING COMPETITIVE ADVANTAGE • Corporate Conversion completed • Blend of new and home grown employees • An employer of choice • Senior employee remuneration linked to growth in economic profit & goal • Our people achievement • Our systems • Our organisation Creating a high performance culture...
Slide 14: Energy Market Reform
ENERGY MARKET REFORM • AGL supports overall conclusions in COAG Report • Harmonising market rules prerequisite to COAG Energy single national energy regulator Market Review holds promise of • Removal of retail price caps - large providing greater number of regulatory imposts clarity, certainty & the
Slide 15: The Way Forward
THE WAY FORWARD …. • Delivering Maximum Returns Integrating Victorian acquisition • Redefining the Portfolio Rationalising non core businesses • Completing Business Platforms Assessing further opportunities in wholesale electricity • Building Capability Maintaining industry leadership Building on th
Slide 16: The Australian Gas Light Company Securities Institute Presentation
THE AUSTRALIAN GAS LIGHT COMPANY Securities Institute Presentation 27 November 2002
The Australian Gas Light Company — Securities Institute Presentation (November 2002) on 6ix