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Investor Presentaiton

Disciplined capital allocation in a transforming market 1 3 Maintain balance sheet strength consistent with Baa2 credit rating to enable optimal response to opportunities as they emerge Agile Capital approach to drive improved return on equity over time amid rapidly evolving business environment... Optionality: maintain and maximise ability to pivot/exit as objectives evolve Quantum: AGL capital deployed only to level required to achieve strategic objectives Time to value: within appropriately short time-frame relative to uncertainty 2 4 5 agl Maintain target dividend payout ratio of 75 percent of Underlying Profit after tax, franked to 80 percent Continued application of threshold hurdle rate supported by ongoing analysis of cost of capital and appropriate risk adjustment for competing investment classes Return excess cash to shareholders if more accretive opportunities are not identified within reasonable time-frame Investor Day | 13 December 2017 50 50
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