AGL Energy Limited · ASX:AGL

AGL Energy — Securities Institute of Australia presentation 2003

18 slides from AGL Energy's conference presentation, Oct 23, 2003

1. Slide 1: Securities Institute of Australia Presentation

   SECURITIES INSTITUTE OF AUSTRALIA Presentation by Greg Martin, Managing Director - 23 October 2003 1 SIA Presentation 23 October 2003

2. Slide 2: North America - August 2003

   NORTH AMERICA - AUGUST 2003 2 SIA Presentation 23 October 2003

3. Slide 3: North America - August 2003

   NORTH AMERICA - AUGUST 2003 3 SIA Presentation 23 October 2003

4. Slide 4: North America - August 2003

   NORTH AMERICA - AUGUST 2003 Empire State Building looms over darkened city skyline 4 SIA Presentation 23 October 2003

5. Slide 5: Steps to the Incident

   14 STEPS TO THE INCIDENT AAP/Wall Street Journal A series of interconnected events cascading to “System Black” … 5 SIA Presentation 23 October 2003

6. Slide 6: Lessons for Australia

   LESSONS FOR AUSTRALIA • Supply/Demand Balance • Peak Electricity Demand • Transmission System Constraints • Complex Regulatory System 6 SIA Presentation 23 October 2003

7. Slide 7: Supply/Demand Balance

   SUPPLY/DEMAND BALANCE NEMMCO SOO - NSW Supply / Demand Balance 7 SIA Presentation 23 October 2003

8. Slide 8: Supply/Demand Balance

   SUPPLY/DEMAND BALANCE NEMMCO SOO - VIC & SA Supply / Demand Balance 8 SIA Presentation 23 October 2003

9. Slide 9: Peak Electricity Demand

   PEAK ELECTRICITY DEMAND Load Shape Comparison 9 SIA Presentation 23 October 2003

10. Slide 10: Transmission System Constraints

    TRANSMISSION SYSTEM CONSTRAINTS Snowy to Victoria 1950s 1,900MW Snowy to NSW 1950s 3,100MW Heywood (Vic - SA) 1980 500MW/300MW Directlink (Qld-NSW) 2000 180MW QNI (Qld - NSW) 2001 1000MW/750MW Murraylink (Vic - SA) 2002 220MW Basslink (Tas - Vic) 2005 600MW/300MW 10 SIA Presentation 23 October 2003

11. Slide 11: Complex Regulatory System

    COMPLEX REGULATORY SYSTEM Australian Energy Regulatory Structure Generation/ Transmission Distribution Retail Wholesale ACCC ACCC Vic – ESC Vic – Minister & NECA NECA NSW – IPART ESC NEMMCO WA – OffGar (gas) SA – ESCOSA NSW – Minister & (electricity) & SAIPAR IPART (gas) SA – ESCOSA QLD – QCA QLD –

12. Slide 12: AGL Strategy & Positioning

    AGL STRATEGY & POSITIONING • Portfolio of Businesses Across the Energy Value Chain • Positions of Market Leadership in Retail Energy: – Wholesale electricity portfolio • Power Generation: – Greenfields – Brownfields – Investments in existing plants 12 SIA Presentation 23 October 2003

13. Slide 13: Energy Sales & Marketing

    ENERGY SALES & MARKETING Market leading energy retailer 3 million customer base Wholesale energy position Brand & Gas Electricity energy Customer numbers* 1.4million 1.7million know-how Energy Sales 155.2PJ 21 208 GWh * Includes ActewAGL customers 13 SIA Presentation 23 October 2003

14. Slide 14: Wholesale Electricity

    WHOLESALE ELECTRICITY Typical Portfolio Structure 14 SIA Presentation 23 October 2003

15. Slide 15: Power Generation Strategy

    POWER GENERATION STRATEGY Two distinct elements: • Vertical integration positions with control of trading/dispatch - where appropriate • Stand-alone power generation investments Benefits: • Earnings diversification • Portfolio diversification • Additional growth opportunities Another plank in AGL’s

16. Slide 16: Peaking Power Generation

    PEAKING POWER GENERATION Somerton (Vic) • Peaking operation • 150 MW • Gas fired Hallett (SA) • Peaking operation • 180 MW • Gas/distillate fired Benefits: • Enhancing the retail electricity business • Wholesale electricity risk mitigation Further investment as demand grows ... 16 SIA Presentation 2

17. Slide 17: Loy Yang Power

    LOY YANG POWER • Conditional Share Sale Agreement signed - extension to Dec 2003 • AGL investment of $200m for 35% stake • Lowest cash operating cost base load generator in the NEM • 40 plus years fuel supply Loy Yang investment is aligned with AGL strategy: • Increased investment in important part

18. Slide 18: Securities Institute of Australia Presentation

    SECURITIES INSTITUTE OF AUSTRALIA Presentation by Greg Martin, Managing Director - 23 October 2003 18 SIA Presentation 23 October 2003

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