AGL Energy Limited · ASX:AGL

AGL Energy — Macquarie Connections Australian Conference 2006

20 slides from AGL Energy's conference presentation, May 5, 2006

  1. Slide 1: AGL Energy: Positioned for Growth and Value Creation

    AGL Energy Positioned for Growth and Value Creation Michael Fraser Group General Manager - Merchant Energy Macquarie Connections Australian Conference 5 May 2006

  2. Slide 2: Disclaimer

    Disclaimer The information in this presentation:  is not an offer or recommendation to purchase or subscribe for securities in The Australian Gas Light Company or to retain any securities currently held  does not take into account the potential and current individual investment objectives or the f

  3. Slide 3: Market Positioning

    Market Positioning  Pure play, focused energy company  Australia’s largest retail customer base: ~3m  ~3.5m*  Substantial and growing upstream portfolio  Substantial and identified pipeline of growth opportunities  Well positioned to create a world class integrated energy company:  Capturing

  4. Slide 4: Executed & Proposed Growth Opportunities

    Executed & Proposed Growth Opportunities 21-Dec-2005 31-Oct-2005  Amended gas supply  Southern Hydro arrangements with acquisition Gippsland Basin Producers 27-Oct-2005 15-Nov-2005  Proposed  Sydney CSM Project 50% 31-Jan-2006  95MW Hallett wind 17-Feb-2006 Townsville Power interest  PNG Upstr

  5. Slide 5: Market Leading Customer Base

    Market Leading Customer Base AGL * Origin Energy EnergyAustralia Energex TRUEnergy Integral Energy Western Power Country Energy Ergon Energy Aurora Energy 3.0 3.5 million million *Includes AGL and ActewAGL customer accounts. Post 33% AGL/Alinta transaction ~ 3.5m customer accounts. 5

  6. Slide 6: Diversified Generation Portfolio

    Diversified Generation Portfolio Key: Hydro Gas Brown coal  Cogeneration Landfill and biogas * Post AGL/Alinta transaction WA Cogeneration  2 x 140 MW* - 33% NSW Hydro 52.5 MW  Hallett Victorian Hydro 180 MW 592.7 MW  Loy Yang A Bairnsdale 94 MW* 2,120 MW (32.5%) Somerton (dispatch control/no eq

  7. Slide 7: Ongoing Electricity Market Growth

    Ongoing Electricity Market Growth*  Peak demand continues to grow ahead of base demand Source: NEMMCO July 2005 * Demand & Supply NEM 7

  8. Slide 8: Diversified & Flexible Gas Portfolio

    Diversified & Flexible Gas Portfolio PNG Project PNG 10% Equity 1500 PJ Cooper Surat CSM Basin 335 PJ 605 PJ Sydney CSM 50% Equity Contract Gas (remaining under contract) Equity Gas Gippsland 1200 PJ 8

  9. Slide 9: Ongoing Gas Market Growth

    Ongoing Gas Market Growth  PNG Gas & CSM complementary - help further underwrite demand growth  Most independent forecasts reflect growth in excess of 50% over next decade Source: ABARE 9

  10. Slide 10: Upstream PNG Investment - Update

    Upstream PNG Investment - Update  JV entry completed  Announced 16 January 2006  Signed 1,500 PJ binding SPA  Participating in JV meetings  Final upstream Project payments on sanction and financial close  PNG oil sales generating surplus cash for investing in Gas Project  On track to meet ear

  11. Slide 11: Camden Gas Project - Update

    Camden Gas Project - Update  Since AGL’s acquisition of 50% interest in November 2005  AGL has become operator  35 on-site employees  2P reserves up 30%  Production ramping up  ~70 wells to be drilled by mid-2007  Hunter test wells look promising  AGL has developed in-house skills focused on

  12. Slide 12: Power Generation – Development Projects

    Power Generation – Development Projects  National growth opportunities of considerable scale Key: Hydro Gas Bluff 45 MW1 Brown coal Hallett 95 MW F Cogeneration Hallett 250 MW1 Landfill and biogas Townsville 370 MW1 * Post AGL/Alinta transaction New Wind Farm New Hydro New Gas Fired Leafs Gully 300

  13. Slide 13: Hallett Wind Farm - Update

    Hallett Wind Farm - Update Type S88 Suzlon Wind Turbines Region SA –Hallett Power Station Capacity ~95 MW (45 x 2.1MW) Status  EPC contract executed with Suzlon  Construction scheduled to commence Q3 2006  Initial commissioning planned Q4 2007  Anticipate fully operational March 2008  Leverage

  14. Slide 14: Hallett Gas Generation Expansion - Update

    Hallett Gas Generation Expansion - Update Type Open Cycle Gas Turbine Region Hallett Power Station - SA Capacity ~ 250MW Status  Tender for EPC issued early May 2006  Financial viability continues to be HallettPower Hallett WindStation Farm assessed, final investment decision targeted 2H06  Const

  15. Slide 15: Townsville Power Station - Update

    Townsville Power Station - Update Type Combined Cycle Gas Turbine Region Townsville - Queensland Capacity ~370MW Status  Site lease & connection options under negotiation  Planning & approvals (EIS) works underway  Off take being negotiated  Financial viability continues to be assessed  Constru

  16. Slide 16: Leafs Gully Power Station - Update

    Leafs Gully Power Station - Update Type Open Cycle Gas Turbine Region Appin - NSW Capacity 300MW, 2 x 150MW Gas Turbines (stage one) Existing Bulk Water Lines Existing 330kv Transmission Status Line  Planning & approval works underway Existing  Financial viability continues to be assessed Gas Pipe

  17. Slide 17: Bogong Hydro Power Station - Update

    Bogong Hydro Power Station - Update Type Francis Turbines Region Kiewa Scheme - Victoria Capacity ~130MW (88GWh) Status  Development approval granted  Tender responses due May 2006  Financial viability continues to be assessed  Construction planned to commence Sept/Oct 2006  Anticipate commissi

  18. Slide 18: Energy Supply Chains – Capturing Value & Growth

    Energy Supply Chains – Capturing Value & Growth  Strategically positioned across energy supply chains  Well positioned for future opportunities   Power Upstream Gas Generation Gas Renewable   Storage Generation Retail & wholesale Electricity Haulage markets Hedge Contracts Portfolio   Gas Su

  19. Slide 19: AGL Energy: Positioned for Growth and Value Creation

    AGL Energy Positioned for Growth and Value Creation Michael Fraser Group General Manager - Merchant Energy Macquarie Connections Australian Conference May 2006

  20. Slide 20: Further Information & Contacts

    Further Information & Contacts A full range of information on AGL including annual reports, presentations and financial results is available from our website: www.agl.com.au alternatively, contact Graeme Thompson Head of Investor Relations The Australian Gas Light Company phone: +61 2 9921 2789 mobi

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