Investor Presentaiton

On track for targeted $170m opex reduction Real operating expenditure savings of $38m delivered in 1H17 ($m) CPI increase Impact in 1H17: $18m Remaining FY17 forecast: $16m Cost reductions Achieved in 1H17: $38m Remaining FY17 target: $10m 19 10 (4) 1,460 36 (122) 1,380 34 2H16 actual: 659 1H16 actual: 721 15 (48) 1,381 2H17 Reclassification increase target: 675 Impact in 1H17: $5m Remaining FY17 forecast: $10m 1H17 actual: 706 FY15 Normalised CPI M&A Reclassification Reduction FY16 CPI M&A Reclassification Reduction FY17 Actual Target Key consumer metrics Lower volume partly offset by cost discipline AGL Energy in action 1H17 1H16 Change EBIT per customer ($) Average consumer accounts ('000) 3,668 3,708 ↓(1%) Cost to serve per consumer account $36 $37 ↓(3%) Cost to grow per account acquired/retained $82 $95 ↓(14%) 54 54 52 52 Gross margin per consumer $107 $112 ↓(4%) 43 account 37 Net operating costs per $56 $58 ↓(3%) consumer account Net operating costs/gross margin ratio 51.8% 51.8% 1 1H14 1H15 1H16 1H17 20 AGL Energy in action?' 9/2/2017 10

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