AGL Energy Subordinated Notes – Key Financial Ratios

AGL Energy Limited (AGL) confirms the following Financial Ratios for the six month period ended 31 December 2015 (Testing Date). These ratios have been calculated in accordance with the terms of the AGL Energy Subordinated Notes prospectus. 

A Mandatory Deferral Condition exists if the Interest Coverage Ratio is less than the Minimum Level (3.0 times) or the Leverage Ratio is above the Maximum Level (4.0 times) on the immediately preceding Testing Date. A Mandatory Deferral Condition continues until AGL’s Interest Coverage Ratio is at or above the Minimum Level and its Leverage Ratio is below the Maximum Level for two consecutive Testing Dates. 

The Leverage Ratio and Interest Coverage Ratio are tested every six months to determine whether a Mandatory Deferral Condition exists. No Mandatory Deferral Condition existed as at 31 December 2015. 

Terms defined in the AGL Energy Subordinated Notes Prospectus have the same meaning in this notice. 

Interest Coverage Ratio 

The Interest Coverage Ratio is calculated as Operating EBITDA for the relevant six month period divided by Relevant Net Interest Paid for the relevant six month period. 

AGL’s Statutory EBITDA contains items that do not portray the performance of the ongoing business. Operating EBITDA excludes the impact of these items to better illustrate the performance of AGL’s business. Relevant Net Interest Paid is Net Interest Paid less 100% of the interest paid on the Notes. 

The table below shows the Interest Coverage Ratio for the six months ended 31 December 2015, 30 June 2015 and 31 December 2014:

160210_KeyFinRationsTable1

Leverage Ratio 

The Leverage Ratio is calculated as Relevant Net Debt (divided by two) to Operating EBITDA for the relevant six month period. 

AGL’s Statutory EBITDA contains items that do not portray the ongoing performance of the business. Operating EBITDA excludes the impact of these items to better illustrate the performance of AGL’s business. Relevant Net Debt is Adjusted Net Debt less 100% of the outstanding balance of the Notes. 

The table below shows the Leverage Ratio for the six months ended 31 December 2015, 30 June 2015 and 31 December 2014:

160210_KeyFinRationsTable2

About AGL 

AGL is one of Australia's leading integrated energy companies. It is taking action to responsibly reduce its greenhouse gas emissions while providing secure and affordable energy to its customers. Drawing on over 175 years of experience, AGL serves its customers throughout Eastern Australia with meeting their energy requirements, including gas, electricity, solar PV and related products and services. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass.