AGL Energy Limited (ASX:AGL)

ASM 2021

← View all transcripts

Sep 22, 2021

Good morning, ladies and gentlemen. My name is Peter Wachten, and I'm your Chairman. Welcome to AGL's 2021 Annual General Meeting, my first meeting as Chairman of AGL. I'd like to start the meeting by acknowledging the traditional land owners of the land on which I'm sharing say my respects to the traditional owners of those lands and their elders past, present and emerging. Nineteen conference call. We had originally intended to hold this year's meeting as a physical meeting in Melbourne, but given the extent of lockdowns throughout Australia in light of the potential health risks created by the COVID-nineteen pandemic, we decided it was time period to host this year's meeting online. Every effort has been made to ensure that the meeting runs smoothly thousand and one, and the shareholders have the full ability to participate. However, if you encounter any technical issues which preclude you time attending the meeting live. A recording and transcript of the meeting will be available on our website after the meeting. 18 months. Shareholders have the opportunity to ask questions in this online meeting format. If you're a shareholder or 20, attorney or representative or shareholder and wish to ask a question about an item of business, select the messaging tab at the top of the platform. At the top of that tab, there is a section for you to type your question. 2nd question. If you have a question already prepared, please submit it now on the platform so that we can answer as many questions as possible when we come to the relevant agenda item. 2018. I ask that you please keep your questions brief 2,000,000,000. To use this service, please pause the broadcast on the Lumi platform and then click on the link Thunder Asking Audio Questions. A new page will open where you will be prompted to enter your name 2nd question and the topic of your question before being connected. You will listen to the meeting on this page while waiting to ask your question. Time and if questions are particularly lengthy, we may need to summarize them in the interests of time. To assist with the smooth running of the meeting, Liz McNamara, Executive General Manager, Corporate Affairs, will read out the name of the shareholder and their question. Nineteen. We will give all shareholders present a reasonable opportunity to ask questions, but it is possible that not all questions will be answered today. A number of shareholders also submitted questions in advance of the meeting. Individual responses have been sent of those shareholders ahead of the meeting. We'll also address key themes raised in my address and in the Managing Director and CEO's address. 18. I now confirm that a quorum is present, and I declare the meeting open. Eighteen. If you are eligible to vote at this meeting, a new voting tab will shortly appear on your screen. 2,000,000. To cast your vote, simply select one of the options. There's no need to hit a submit or enter button thousand as the vote is automatically recorded. You may submit your votes at any time. Twenty nineteen. I will now explain the running order for today's meeting. In a moment, I'll make a few remarks about the results for the 2021 financial year and about other topical matters. Then Graham Hunt, AGL's Managing Director and CEO will speak. We will then attend to the formal business of the meeting. 18. As I mentioned, eighteen. I now declare the poll open. I would now like to introduce my fellow directors who are joining us today via 2,000,000 online platform. They are John Stanhope, Jacqueline Hay, Patricia Mackenzie Diane Smithegander Mark Bloom and our Managing Director and CEO, Graeme Hunt. Also attending this meeting today is our company's Secretary, John $1,000,000,000 and the Chief Financial Officer, Damian Nix, as well as other members of the executive team. 18 months. AGL's external auditors, Deloitte, are also attending this meeting. Senior audit partner, Jason Thorne, is available to answer any relevant questions you may wish to ask later in the meeting. Eighteen, and I thank him for attending today. Let me start off by acknowledging that 21 was an extremely challenging year for AGL and a very disappointing year for shareholders. Nineteen. The acceleration of key operating and market headwinds that we have been foreshadowing for a number of years have now materialized. Nineteen-twenty nineteen. Although the extent and impact of those headwinds on our business and industry, especially in the form of declining energy prices and the impact of COVID-nineteen have proven to be far greater than anyone expected. Eighteen. It is also beyond question that the pace of transition towards a decarbonized future in Australia has rapidly increased. And that is Australia's largest electricity generator and therefore the largest emitter of greenhouse gases. 18 months ago. This is also having a direct impact on the value and share price of our business. AGL is already committed to achieving net 0 admissions by 2,050. And your Board recognizes that we must time challenge ourselves to see how we can enhance this commitment. We believe this is possible, but it must $1,000,000,000 by keeping the lights on and continuing to provide reliable and affordable energy as we and others invest thousand, the change that is needed to bring new renewable energy sources into the market. Eighteen. Let me be very clear. Your Board understands that shareholders are very unhappy with where the AGL share price is today, and we acknowledge the financial performance of the company over the last past 12 months is not acceptable to shareholders or directors. Eighteen. So what are we doing about it? I'll firstly briefly summarize the financial performance for the past year, $1,000,000,000 that explain the measures that we are taking to address the challenges facing your company. Firstly, as I have acknowledged, FY 'twenty one was a very difficult year for shareholders, where we recorded a statutory loss after tax of $2,058,000,000,000 This compares with a statutory profit after tax of just over $1,000,000,000 in the 2020 financial year. The FY 2021 results included charges totaling 2.929 $1,000,000,000 associated with Oniurf's contract provisions and an increase in environmental restoration provisions $1,000,000 announced on 4th February 2021. Charges were also associated with the cessation of Cripp Point project and costs associated with acquisitions and restructuring. Underlying profit after tax for the 2021 financial year, which AGL regards as a more useful measure of company performance, was $537,000,000 down 34% on the previous year, and in line with the revised guidance range we provided in December 2020. Lower electricity demand due to COVID-nineteen lockdowns, mild weather and increasing penetration from roof top solar as well as the fact that some of our older lower priced legacy gas supply contracts rolling off and new contracts are being entered into at higher current prices. The final unfranked dividend of $0.34 per share will be paid on the 29th September 2021. When added to the interim dividend of $0.41 per share, which included the $0.10 special dividend. The total dividend for the 2021 financial year was $0.75 per share. Disappointing result, it is important to note that the wholesale electricity price is the single largest driver of AGL's earnings. And these wholesale prices have fallen to an extent not seen since 2012. $1,000,000 in the past 3 years alone, prices have halved. AGL has for some time been foreshadowing market headwinds 1,000,000 wholesale prices. However, it's fair to say that the extent of the fall has surprised many credible market analysts 1,000 observers. We are not alone in experiencing the impact of the decline in wholesale electricity prices, thousand, which has also significantly affected others in the industry. Given the prevailing low price environment, nineteen. That is why we have committed to reducing our operating costs by £150,000,000 by the end of FY 2022 and reducing and sustaining capital expenditure by €100,000,000 by FY 'twenty three. We have also announced $1,000,000 sale of $400,000,000 of non core assets by the end of FY 'twenty 2. Eighteen-twenty 19. As another measure to conserve capital, we announced the cessation of the special dividend program and an intention to underwrite the dividend $1,000,000 reinvestment plan for FY 'twenty one final and FY 'twenty two interim dividends. Eighteen. While your Board recognizes the impact on shareholders of no longer receiving the proposed special dividend eighteen and the dilution caused by the dividend reinvestment program, it is prudent to conserve capital ahead of the proposed demerger next year. These measures will also allow AGL to fund long term value adding 18 growth investments such as AGL's equity share in Power's acquisition of TILT Renewables and the development of the Torens Island battery. Graham and I will speak about that and the demerger a little later on. 18. In the short term, we are also focused on other measures to improve business performance. Eighteen. In our Integrated Energy business, we are focused on delivery of the cost and sustaining CapEx reductions mentioned earlier, Managing Increasing Price Volatility Through Optimizing Our Plant Operations, Hedging and Delivering on Grid Scale Battery Growth and successful recontracting of short mid term gas supplies. In customer markets, $1,000,000 We're focused on continued organic growth in services to customers, delivery of significant sustained $1,000,000,000 cost efficiencies, successful integration and optimization of recent acquisitions and growth in our commercial industrial segment, expansion of our energy solutions to them offering to take leading market position in that area. We are also continuing to build on our track record of the last 2 decades of investing in a renewable energy future. In the past few years alone, AGL has directly invested around $2,000,000,000 in firmed renewable projects, including over $180,000,000 in the construction of the 250 Megawatt Torens Island Battery. Thousand and one. The battery will support the growth of intermittent renewable energy in South Australia and will be the first to begin construction within AGL's planned 850 Megawatt National Battery Rollout. 18. Before turning to the earnings outlook for FY 'twenty 2, I'd like to briefly highlight thousand positive news for our shareholders from FY 'twenty one. We made some significant acquisitions throughout the year, Click Energy and Amazon customers to AGL during FY 'twenty one, following the acquisition of Click Energy in September 20 20. In March 2021, AGL acquired 2 of Australia's largest commercial solar businesses, Solgen and EFI. These acquisitions complement and strengthen AGL's existing solar capabilities, enabling AGL to deliver more tailored and innovative thousand Energy Solutions for Businesses. Also in March, AGL acquired 51% of OVO Energy Australia, which has provided AGL with exclusive Australia access to Palooza, OVO's advanced customer experience and energy Flexibility Platform. We have also, through our 20% interest in power, recently acquired interest in the TILT Renewables. This transaction will further support our orderly transition away from coal fired generation. Today, we confirm the earnings outlook for the 2022 financial year being within the range $220,000,000 to $340,000,000 provided as part of the full year financial year 'twenty one results in August. I recognize that this guidance represents a material reduction session on FY 'twenty one, which reflects again a material step down in wholesale electricity earnings thousand hedging positions established when wholesale prices were materially higher progressively roll off and the non recurrence thirds of Loy Yang Insurance proceeds. I'll now talk about what we are doing to address the challenges currently facing AGL's business. The cost, capital management and growth measures I have already outlined and 3 important measures that are needed to improve business performance amid challenging market conditions. However, your Board recognizes that the pace of change continues to accelerate, reinforcing the rationale for our proposed demerger. Eighteen. We are creating 2 distinct businesses that will be category leaders in their own areas. With AGL Australia as Australia's largest multiproductenergyretailer of essential services and Exel Energy is Australia's largest electricity generator. The proposing merger will give each business the freedom, focus and clarity to execute their own respective strategies and growth agendas, 18,000,000 while playing an equally important but different role in Australia's energy transition. The Board considers the proposed demerger will be in the best interest of shareholders by protecting shareholder value and enabling each business to focus on their respective strategic opportunities and challenges $1,000,000 presented by the accelerating energy transition. I'd now like to take a few moments to discuss 2 Board matters. At the conclusion of the AGM, John Stanhope will retire from the Board. 18 months. On behalf of the Board, I'd like to sincerely thank John for over 12 years of very invaluable service to AGL. 18 months. Jacqueline Hay will retire by rotation at the end of the meeting and is standing for reelection at today's meeting. Eighteen. For the reasons set out in the notice of meeting, the Board recommends that shareholders vote in favor of the reappointment of Jacqueline. 18 months. Also standing for election to the Board is Ashjane Sharif, a retail shareholder who has nominated himself as a candidate for election. For the reasons set out in the notice of meeting, the Board does not consider the election of Mr. Sharif to be in the best interest of the company and recommend shareholders vote against the appointment of Ashayin Sharif. 18 months. However, the Board does recognize that further skills and expertise in climate change risk, ESG Governance and Industry Transition Are Required on the AGL Board. And a search twenty two. We are on track to appoint a new Board member with those skills in the first half of FY 'twenty two. Eighteen. In addition to appointing an additional Director to the AGL Board this year, we recognize that additional skills will also be required on the boards of each of Axle Energy and AGL Australia. Following the update of the AGL Board skills matrix in FY 'twenty one. All skills matrices for Axcel Energy and AGL Australia we're prepared, and we have also consulted with and received input from a number of investors and other stakeholders on the appropriate skills required for the new entities going forward. In particular, skills and experience in energy transition, ESG, Technology, Customer Experience, Project Development and Finance have been identified as priority areas. Eighteen. The Board is currently undertaking a search process for directors with these skills with a view to appointing some additional directors to AGL Energy ahead of the demerger, but also to ensure that each entity is well placed to appoint additional directors following the demerger. Eighteen. I'll now speak briefly about 2 resolutions that we received from a small group of shareholders for consideration at the AGM. These are Items 6A and 6B in the notice of meeting. Of AGL for the reasons detailed in the notice of meeting, and the Board recommends that shareholders vote against these items. Item 6B is contingent on the outcome of Item 6A being the special resolution to amend $30,000,000 Based on the proxy and direct votes received ahead of the meeting and the number of votes that I've been informed are represented at this meeting today. Item 6A will not receive sufficient support from shareholders to be passed. And therefore, as advised to shareholders in the notice of meeting, Item 6B will not be put to the meeting. However, we recognize that Item 6B has received level of support from shareholders ahead of the meeting, and we will give shareholders an opportunity to ask questions about these resolutions later in the meeting. I want to assure shareholders that AGL takes the matters raised shareholders' resolutions, Item 6A and 6B, very seriously. And they are matters that the Board considers 2,000,000,000 to consider very, very carefully. Item 6B requests the Board disclose in association with the forthcoming demerger scheme documents, short term short, medium and long term targets questions in Scope 1, 2 and 3 emissions of the proposed demerge company as for both Axcel Energy and AGL Australia. And those disclosures are aligned with articles 2 1A and 41 of the Paris Agreement. 18 months of 2019. We will now begin the Q1 of 2019. We will now begin the Q1 of 2019. We will now begin the Q1 of 2019. We will now begin the Q1 of 2019. We will now begin the Q1 of 2019. Transformation capital will align with those targets and details of how Axcel Energy and AGL Australia's remuneration policies 1 incentivized projects progress against those targets. AGL understands the critical importance of the decarbonization of the electricity sector and the need to lean into the transition as never before. Eighteen. We also already operate the largest portfolio of renewable assets of any ASX listed company, and we have invested more than $2,000,000,000 directly in renewable projects. Eighteen. It's often easy to simplify the challenges facing Australia's energy industry. Renewables have grown at record phase and aging thermal assets are playing a diminished role. AGL and its proposed demerged entities will work with governments, regulators and other stakeholders to define a responsible pathway to transition to a decarbonized electricity sector as soon as practical. We are already putting this into action and 3rd, we're right proceeding with the closure of the Ladell power station, which commences next year and will lead to a 23% reduction $1,000,000 in emissions by the end of 2024. We're also actively engaging with all stakeholders to understand and their perspectives and concerns. The success and speed of the transition will require and effective level of coordination between government, regulators and industry. And the Board does not believe eighteen. It will require the right policy and investment settings and a focus on customers from all market participants. $1,000,000 It will also require a market design that supports an orderly transition. 18 months ago. Despite the challenges and uncertainty facing the energy industry, AGL has already made a number of commitments in relation to climate change, including a commitment to net 0 by 2,050 as part of our climate statement released last year. But we know more is required, thousand and one, work is underway to define the decarbonization roadmaps for both Axcel Energy and AGL Australia. 18. These roadmaps will be informed by scenario analysis and will consider the settings of short, medium and long term targets and and we'll become an integral part of the strategies of these businesses. This work will include analysis and impact on our business commitments and related to the Paris Accord and deliberations that will come from the UN Climate Change Conference, COP26 in November. It will inform decisions on how both companies thousand and one, appropriately lean into the transition as never before. Further details of these roadmaps twenty two will be included in the demerger scheme documents to be sent to shareholders during the Q4 of FY 'twenty two. Thousand and one, there is no doubt that both new organizations will be committed to the challenge of doing more eighteen and will play a critical part in the decarbonization of Australian Energy. 2019 guidance. The scheme documents will also describe the business strategies for both entities, including capital allocation and emission targets. Eighteen. If the proposed demerger proceeds, Axcel Energy and AGL Australia also intend to put their respective twenty nineteen. If the demerger does not proceed, AGL will put its climate reporting to a non binding advisory vote thousand shareholders at its 2022 Annual General Meeting. Finally, eighteen. I wish to make some comments on the 2nd item on today's agenda, the remuneration report. 18 months. The Chair of the Board's People and Performance Committee, Diane Smith Gander, will speak to the remuneration report in more detail shortly. At the 2020 AGM, 46.5% of shareholders voted against approval of the 2020 remuneration report. This resulted in AGL incurring a first strike. 18 months. I want to assure you that your Board takes the feedback it receives on AGL's remuneration practices seriously. Since 2020 AGM, AGL has consulted with stakeholders to seek to understand the concerns that led to the 1st strike, and these discussions have influenced the setting, assessment and disclosure key management personnel remuneration and outcomes for FY 'twenty one. I'm pleased to say that the resolution to be put to the meeting in relation to the 2021 remuneration report has received sufficient support $5,000,000 will not be put to the meeting today. In summary, 18 months. Despite FY 'twenty one being a challenging year for AGL, I'm optimistic about the future for AGL and its shareholders. Nineteen. We have a comprehensive program in place to improve performance, to lean harder into the energy transition and to respond to the evolving operating environment. In particular, the 2022 financial year will be 2nd year in AGL's history as the proposed demerger is progressed. The Board is intending to hold shareholder meetings in the Q4 of FY 'twenty two for shareholders to consider the demerger proposal. As I mentioned earlier, 2019 outlook. The Board considers the proposed demerger will position us best to meet existing and future challenges of the company, eighteen, including through refreshed Board and management teams that are focused and have the appropriate skills and experience nineteen to respond to evolving ESG expectations, the energy transition and new technologies. Thousand and one. It's now my pleasure to invite Graeme Hunt, your CEO, to address you. Following Graeme's address, we'll move to the formal business of the meeting. Eighteen. Thank you, Peter, and good morning, everyone. It's my pleasure to be joining you today, albeit virtually, after what has been a very challenging yet pivotal year for AGL. The Chair has talked about company performance, but I'd like to reiterate how disappointing 10th to deliver a strategy that will protect and deliver future value for you, our shareholders. While we expect conditions to remain challenging into the next year. I am confident in our strategic direction and our team to manage the business through the energy transition and demerger. Eighteen. The underlying momentum of the business is strong. And amidst the challenging conditions, it is still important to reflect on the achievements and hard work over the year. Eighteen. This short video provides a snapshot 18. The Chair has provided a summary of our FY 'twenty one results, 1st quarter, we've touched on business performance as well as confirming our guidance for FY 'twenty two. Today, I'll provide more detail on operational performance, strategy execution and outlook as well as recap our proposed merger plans. But first, let me focus on safety. Thousand and one. I'm pleased to say that there was an overall improvement in our health, safety and environmental performance, illustrated by a marked reduction in total injury frequency rate 2.3 per 1000000 hours worked, which has now trended lower in consecutive years. However, it is critical that this The need for this ongoing rigor was reinforced in late 2020 when one of our people was seriously injured in an incident at the Liddell Power Station. Nineteen. We are very thankful that this employee is recovering well and has commenced the return to work process. Thousand and one. Safety remains our utmost priority and we continue to thoroughly review high risk tasks and strengthen our safety protocols nineteen-twenty 20. Another key focus for AGL is employee engagement. FY 'twenty one employee engagement score fell 11 percentage points from the previous year. Albeit disappointing, nineteen. This result was understandable given the significant challenges in energy markets, ongoing challenges prevented by COVID-nineteen fatigue nineteen, as well as uncertainty arising from our demerger plans. We are working hard to address engagement through a strong internal communication 18 months ago, as well as the timely establishment of new organization structures to provide our staff with greater clarity. $1,000,000 Moving now to operating and financial performance. We know this has not been good enough and understand that we need to do more to protect shareholder value. Nineteen. With that said, I'd like to take you through some of the conditions under which we have been operating. FY 'twenty one was certainly one of the toughest thousand and one. Wholesale electricity prices were at levels not seen since 2012. Energy demand was impacted by ongoing lockdowns in our major capital cities, mild weather and increasing penetration from rooftop solar, 18, while at the same time, energy supply increased through the connection of large grid scale projects. The confluence of a decrease in demand and an increase in supply have applied material pressure on wholesale electricity prices over the year. 2.5%. We also saw challenges in our wholesale gas business as low cost legacy supply contracts matured, which translated into lower margins. AGL has a highly flexible gas portfolio, and we will continue to execute on our supply strategy nineteen-twenty 20.5% to meet customer demand from existing and new domestic supply sources as well as proposed third party gas import projects. AGL also continues to competitively recontract medium term volumes to augment the gas portfolio nineteen-twenty 19. In response to the challenging operating environment and resulting impact on the company's financial performance. We are pursuing initiatives to preserve liquidity and ensure we have sufficient financial flexibility. 2023. These targets are in addition to the capital preservation $1,000,000 from the termination of the special dividend, the full underwrite of the final dividend and the announced sale of approximately $400,000,000 of non core assets. To deliver on our strong OpEx and CapEx targets, operationally, we are thinking differently about how we run our coal fired operations. 2.3% growth. Today, rather than maximizing generation across the year, we are focused on maximizing our generation when demand is at the highest levels. Eighteen. This means the plants don't need to be available all of the time, and we can optimize maintenance schedules and costs. 18 months. As such, we are working on ensuring our preventative maintenance is efficient and scheduled in off peak periods, 2,000,000,000,000,000 founding to the transition of our energy system. We have taken steps to make our plants more flexible. Nineteen. We have lowered the minimum generation levels at Bayswater to reduce the run periods when demand is low and spot prices are below our marginal running costs. Things to improve plant efficiency, and we'll implement additional initiatives throughout this financial year. Eighteen. In customer markets, our previous investment in systems and our ongoing focus on simplification and digitization continued to deliver sustained operating cost efficiencies, assisting in the delivery of our cost targets. Thousand and one. Despite the challenges we have faced this year, AGL has continued to deliver on its strategy. Customer service growth remains strong in FY 'twenty one. Thousand and fifty four,000 new services through good organic growth and the Click Energy acquisition, 2,000,000,000,000,000,000,000,000,000,000, which is a very strong growth driver. Against the backdrop of a highly competitive market, 18 months ago. Customer operating costs were also driven lower for a 2nd straight year on the back of material thousand and one. AGL's telecommunication products were launched in February this year, and we are already seeing steady growth and the anticipated benefits of customer loyalty, 1,000,000 multi product growth and tenure coming to fruition. Notably, 98% of AGL's telecommunications sales to date 1st quarter and a part of an energy telco bundle. In addition, we have expanded our carbon neutral offering across all AGL products $1,000,000,000 to support our growth ambitions and decarbonization pathway. The acquisitions of Solgen, Etho and TILT via our 20% interest in power 2,000,000,000,000 of cash flow generation. These acquisitions also build on our long term 30% history of investment in renewables and support our commitment to transition away from coal fired generation. Twenty four. We remain on track to deliver on our plans for at least 8 50 megawatts of grid scale batteries by FY 'twenty four. During the year, a final investment decision was reached on a 2 50 Megawatt Torrens Island battery, nineteen-twenty 19. This energy storage infrastructure positioned at our strategic sites nineteen-twenty 19. We'll be critical in helping to firm renewable generation entering the national electricity market. 1st in our decarbonization journey. And I'm pleased to say that we have made progress in each of our 5 climate statement commitment areas, which will not only help us on the path to net 0 emissions by 2,050, but also in challenging ourselves to aim higher. Nineteen. We believe we can deliver on our leadership role in accelerating the energy transition, while also ensuring Our thermal assets remain available for as long as they are needed to support the affordable, stable and sustainable provision of electricity. Nineteen. Now turning to our outlook. Nineteen guidance. As the Chair noted earlier, our short term outlook remains challenged, and our guidance for FY 'twenty two largely reflects the continuation of market and operating headwinds, nineteen-twenty 19, which have impacted energy market in recent years. As such, we expect the year on year decline in overall earnings to be driven by a material step down 1,000,000 wholesale electricity earnings. As hedging positions established when wholesale electricity prices were higher progressively roll off and a small impact to wholesale gas gross margin from maturity of low priced legacy gas supply contracts. In addition, the Loy Yang II insurance proceeds received in FY 'twenty one will not reoccur. $1,000,000 These impacts are expected to be partially offset by the $150,000,000 of targeted operating cost initiatives, which we are working very hard to deliver. $1,000,000 Markets continue to experience market volatility. Prices have fluctuated significantly and demand continues to be impacted by both COVID-nineteen lockdowns and milder than usual weather conditions. These factors will continue to impact our business as we navigate COVID-nineteen nineteen-twenty 20 and the transition away from coal fired power towards firm renewables. Encouragingly, we have seen Some improvement in forward wholesale electricity pricing in recent months. And given that AGL produces some of the lowest cost generation in the national electricity market, nineteen-twenty 19. We are well positioned to benefit from any sustained recovery in wholesale electricity prices, the single biggest driver of AGL's earnings. Nineteen. As we see the pace of change continuing to accelerate in energy markets, we are further assured and committed to our proposed emerging strategy thousand and one, we're pleased to create 2 new entities, both with the clarity of purpose and agility to lead the energy transition in their own ways, eighteen-twenty 18 months ago, while protecting and delivering value for shareholders. AGL Australia would execute on its customer led multi product strategy backed by a flexible trading, $1,000,000 supply and storage position. At Axcel Energy, we would ensure the safe and efficient operation of our thermal generation asset base nineteen. I'm pleased to say that good progress is being made on our demerger plans. The internal separation of our IT systems key corporate functions are advancing further key management personnel and high level organization, progressing the funding and capital structures for both entities. 18 months ago. Importantly, you, our value proposition, will be held in the Q4 of FY 'twenty 2. $1,000,000 expected to be held in the Q4 of FY 'twenty two. A scheme booklet containing detailed information about the $1,000,000,000 merger and the 2 proposed entities, including their expected asset allocation, capital 2019 Energy Transition Plans will be sent to you prior to the scheme meeting. This will thousand and one. This is a very challenging time for electricity generators and retailers, and AGL must 1,000,000,000,000 and charting an exciting next chapter in our 180 year plus history. Eighteen. In closing, this difficult operating environment we are facing will continue to test our resilience as an organization. However, I'm confident that the decisive actions we are taking today will enable us to protect shareholder value as we create 2 leading organizations eighteen and prepare for a cleaner, more sustainable future. I'm immensely proud of the dedication and hard work thousand and one of our people during these challenging conditions, and I assure you we will continue to strive to deliver for our customers, communities and most importantly, you, our valued shareholders. Nineteen. Thank you, Graham. $1,000,000 It's now time to address the formal business of the meeting. The notice of meeting sets out 6 items of business. As I mentioned earlier, Item 5, the conditional spill resolution, will not be put to the meeting because the company did not receive a second strike in relation to the 2021 remuneration report. $1,000,000 Item 6B is contingent on the outcome of Item 6A being the special resolution to amend AGL's constitution. Given the proxies received for the resolution to amend the constitution and the votes represented at this meeting today. Item 6A will not receive sufficient support from shareholders to be passed, and Item 6B will not be put to the meeting. However, shareholders will have the opportunity to speak on or ask questions about $1,000,000 each item of business, including Item 6B, and the proxies for each item will be shown and released to the ASX. Votes will be counted immediately following the meeting and the results will be notified to the ASX before the end of today and posted on the company's website. Turning now to the first item of business. AGL published its 2021 Annual Report in August, eighteen, which contains full information about the company's financial and operating performance during the year. Under the company's constitution and the Corporations Act, there is no requirement to our shareholders to vote to adopt the accounts. However, you may ask questions or make comments on the 2021 Annual Report and the management performance of AGL. 18 months. As I mentioned earlier, Jason Thorne from Deloitte is available to answer questions relevant to the audit. 2 and a copy of the written questions Deloitte received ahead of the meeting are available on the platform under the documents tab, thousand and one, if any shareholder would like to review them. I will now ask Jason to outline the questions received by Deloitte ahead of the meeting, thousand, which Deloitte determined to be relevant to the content of the auditors' report or the conduct of the audit and Deloitte's responses to questions. So, Jason? Thank you, Chairman. As previously stated, the company has received question from a shareholder in accordance with Section 250PA of the Corporations Act 2,001. In our capacities auditor, we have provided a question list to the company that has been made available to members on the virtual platform today. The question outlined on the question list does, in our view, relate to the conduct of our audit for the year ended 30 June 2021 2019. Before responding to the specific question, thousand and one's annual report. In addition to providing our opinion, our report describes the basis for that opinion, thousand and one. The key audit matters, the responsibilities of the directors for the preparation of the financial report and our responsibilities for the audit 2019 financial report. I will now respond to the question. Auditing standards require an 2nd question to identify and assess risks of material misstatement through understanding the entity, its environment and its internal control, Amongst others, we identified risks of material misstatement in relation to the quantum and timing of impairment charges, 2019 guidance for the quarter, the quantum and timing of onerous contract provisions, both of which arose as a consequence of the accelerated deterioration 2 long term wholesale energy market forecasts subsequent to 30th June 2020. 2019. The quantum and timing of changes to AGL's environmental rehabilitation provisions, and the associated disclosures made in the financial report. Our assessment of the risks of material misstatement It also included considering the appropriateness of the timing of the recognition of the outcomes of AGL's 3 yearly review thousand and one of its environmental rehabilitation provisions. We then designed and implemented audit procedures thousand and nine-eighteen, along with a reference to the disclosures made by the company. Upon completion of those audit procedures, 2,000,000. That concludes my response to the question outlined in the question list. I will pass back to you, Chairman. Thank you. Thank you very much, Jason. I'd now like to open the meeting for discussion. 18. Please, Liz, could you please let me know if there are any questions relevant to this item? 2.9%. The first question comes from Helen Manning of the Australian Shareholders Association. Thank you, Helen. Thank you for that question, and thank you for the Australian Shareholders Association for eighteen's showing continued interest in the company. To answer that question, I think I need to give some context to give you a view about the excitement that we feel is and certainly I feel towards the future thirds of the organization. As many of you are aware, AGL has had some very successful years thousand built on acquisitions that were made of generating plants in the last decade and building what was called or is called a vertically integrated company with generation through to $30,000,000 trading through to customers. The changes and market forces that are now applicable to AGL are very different. Wirtiga integrated model provided us with record profits 2018 2020 and over $2,600,000,000 was returned to shareholders in terms of share buybacks $1,000,000 and dividends during that period of time. The model worked. The model now is not, in my view, 18% as a Board applicable to the future of the organization. The model has to address very rapid transition away from fossil fuels into renewables. Eighteen-twenty 18. And despite having the largest renewable portfolio on the ASX, the implications of having combination between coal fired generation and renewables, the access to capital that that means into the future and the direction and policy settings that are appropriate for carbon heavy coal fired generation thousand and one's renewables and customers are actually very different. On that basis, our share price, seventeen, which is not acceptable in anybody's terms over the last 12 months. It is reflective things and Graeme has mentioned that. The overarching influence on share price is the value of electricity, wholesale electricity prices that give us revenue as an organization. Thousand and one $1,000 a megawatt hour. And in the last 12 months, due to a greater level of supply, uncertainty on policy 2,000,000 progressive decommissioning of coal fired generation. The electricity prices dropped enormously, going from $95 to $100 a megawatt hour down to in the order of $35 to $40 a megawatt hour. Thousand lowgram. As highlighted, there's been a pickup of that number in recent times. There is it's still a significant impact on our revenue streams. AGL's share price is absolutely a bellwether for energy pricing. And on that basis, although we see relatively subdued activity in terms of pricing over the next few years. Moving beyond that, the pricing will eighteen session and how fast the renewables generation picks up. However, at $35 $40 a Megawatt Hour. No one will be making any money, and it's hard to demonstrate 18 months. So coming back to the question, why do you invest and what do you see in AGL? Customer business away from the carbon heavy business is one 30s logical and compelling in present market circumstances and how the market is moving. Coal fired generation will remain an absolutely critical part of stability on the national electricity market for many years to come. Right now, the capacity of other generation, including renewables, to make up thousand shortfall when the sun goes down and the wind doesn't blow is just not there for us things to be able to withdraw and shut down our coal fired generation without proper coordination with regulators, with governments and sustaining a reliable, affordable supply of electricity to our customer base. Will be a critical element of the future and will have a substantial role in Managing the Transition Away from Hydrocarbon Generation. Eighteen. It will be very much subject to where you think coal prices and sorry, electricity prices will go. Nineteen, we think in the medium and long term, that is likely to be higher than it is on historical low that we've seen in the last 12 months. Axcel Energy also has the ability to leverage its significant real 18,000,000,000 in terms of connections, its talented workforce, and it has the capacity to build on and unprecedented way, energy hubs that can drive renewables within If you look then at AGL Australia, AGL Australia has an unprecedented customer base of close to 4 €2,500,000 value accreting business that is substantial. It will also have connections initially in offtake agreements to Aksel, but it also will have the strategies and mandate and flexibility to continue to drive the renewable transition and will attract, we believe, the appropriate capital, which Axcel Energy will struggle to do into the future, but the appropriate capital and multiple that will drive the value in AGL $1,000,000 in AGL Australia's share price. We think separation is the way forward. Thousand and one, we also believe that the vertical integrated company is probably something of the past. And driving that transition will give both entities leadership 1 side carbon heavy business and the transition and an active role in leading that transition nineteen-twenty 20,000,000 with a view to, electricity pricing and energy hub development and on the other side, the renewables with thousand substantial access to capital and a different multiple and a different direction. Now both companies have a slightly different or fundamentally different attitude to some of the regulatory changes that we think are necessary. So again, the separation 2 companies with distinct value upside is absolutely the way forward and addresses the significant challenge of the transition over the next 15, 20 years. Thousand and one. So I'm excited about the future of AGL. I'm extremely disappointed with the performance in the last 12 months. And clearly, the accelerated transition thousand and one requires us to move to different models and drive our business in different ways. And I believe the way forward, enunciated with the separation, is the way forward for AGL. I should say that this opportunity through the AGM is one for shareholders to expressed frustration for the Board to take its medicine, but also an opportunity for the Board to highlight thousand direction going forward with the company. And I'd like to take that opportunity over the next short while to at least give you thousand and one, the reasons behind performance or lack of and the commitment that we as a Board have So hopefully, that gives you some context telling us to why you should own shares and the next, obviously, 12 months or so are critical in our future. Portfolio. It is a fantastic platform, along with our customer base, for future growth 2019. The next question is from Helen Manning of the Australian Shareholders Association. Shareholders will be wanting to know why AGL is ones, which answered hopefully your first question. We think the evolution of our business does require us to time split the carbon heavy piece of our business, the coal fired generation away from our renewables business and customer base. Eighteen. There are compelling reasons to do that, including differences in the way we would like to see both sides of the business in terms of regulation, and there's compelling reasons for our renewable and customer piece to command a higher level of access to capital 2nd and a different and trade at a different multiple. Accel Energy definitely has an upside in its exposure to the power pricing and its unprecedented real estate value thousand in terms of building energy hubs in our key areas. We have a great workforce, and we need to work with our workforce and communities to help them best address the transition as well. But certainly, we have all the prerequisites thousand and one along with our partners to drive growth in that area as well. Details of that undoubtedly will be provided in the $30,000,000 scheme document. But I also think, and Graham signaled it, that we would be taking further advice and input from our shareholders and other stakeholders in the lead up to the publishing of the scheme document. Eighteen, and we think it's critical to and value adding to have that input from shareholders things as we go through this evolution of this great company. The next question is thousand and one, 2019, and we're now in free fall, declining 45% since the demerger was announced in March and 80% from its high in early 2017. What are the Board and the senior executives doing to arrest this decline? Is AGL's timidity around the early closure of its coal 5 power stations coming at the expense of shareholders' best interests. Thank you, Dan, and OCCR for the question. I'll reiterate that the impact on share prices absolutely very significant drop in wholesale energy pricing, which impacted our revenue streams for the year. Due to COVID lockdowns, the ongoing and growing impact during the day of renewables and a broad supply, substantial supply of electricity at various times during the day, which again has driven down pricing. I think some of the initiatives that have been put forward by governments has also factors towards carbon heavy assets and investments in carbon heavy companies has also led to some thousand bicarbon Heavy Industries, including AGL. I suppose the key area that I'd like to highlight is that a shareholder wrote to me in a letter a couple of days ago and pointed out that on 15th September at 10 p. M, 18% and some 80% plus of the NEM was being provided by coal fired generation. And whether we like it or not, 1,000,000 coal fired generation is a critical part as other generations, especially focused on renewables and firm renewables, is built. A KPMG report 18 months or so ago highlighted that remove or take fossil fuel generation down to 20% of the NIM nineteen would require some $50,000,000,000 in investment in renewables to allow that thousand and seven. We believe we need to lead into the transition as never before. 18 months. And on that basis, we are carrying out the appropriate analysis to be able to provide 2 Apply Paris agreements and into our capital allocation and our rewards for our people. On that basis, I think the application of early thousand and one of the largest coal fired stations is not necessarily a big driver right now for us nineteen with respect to share price performance. Other factors are clearly thousand and one, albeit that I believe the Board is absolutely of one mind to work hard to and others to assure a smooth landing and a smooth transition. The next question 2,000,000,000,000 staggering impairments in FY 'twenty one, while the share price has continued to free fall. The company's current plans and therefore valuations thousand and one, the Paris Agreement. I note investors have been writing to companies and governments demanding financial accounts be aligned with global climate goals. So how much more value destruction can shareholders expect to see when the value of AGL's coal assets is bought into line 2.5 degree Celsius warming scenario. Well, firstly, thank you, David, significant impairments recorded in FY 'twenty one, driven significantly by a change in value of our renewable power purchase agreements, which were signed between 2,006 2012 3rd high levels of pricing, and it undoubtedly was a response to much, much lower thousand electricity pricing and forced that change in valuation. We have made a commitment to be carbon neutral or emissions neutral by 2,050. And I would dispute that our qualified assets are aligned to 3 Degrees C plus warming scenario. And certainly, we remain very committed 2 doing our role to meet Paris agreements. We've made a commitment earlier today to all of that and no changes even as late as the COP meeting that's coming up in Glasgow over the next couple of weeks and 2 our modeling. And as part of the overall direction of the companies, both AGL and Axcel, nineteen. We will be publishing our strategy, and undoubtedly, our strategy was with respect to how we manage the transition, we're very, very well aware that the expectations of investors and shareholders generally are changing strategy on behalf of the 2 companies. So I think we're making progress on that with more to come prior to and in the scheme document. And undoubtedly, the scheme will be a quasi comment on our direction with respect to climate change and our role in the transition. Thousand shares. At the same time, it is the underwriter of our dividend reinvestment plan. This morally questionable and duplicitous shortfall. I believe it more likely about Macquarie making proprietary trading profits for itself ahead of its corporate client AGL's best interests down AGL's share price further undermining shareholders' confidence in AGL and willingness to take up the DRP, 2019 guidance, thereby allowing Macquarie to profitably cover its short position with a larger than normal shortfall of DRP stock at suppressed prices. 2.3rd question to the Board. 1, do you think this behavior is acceptable? And 2, do you think we should use Macquarie's services in the future? Nineteen. Andrew, thank you. Thank you for your comments. I would like to reiterate that I think the process that Macquarie is doing with the DRP is one that is standard banking practice during the price setting. Of these things do require them undoubtedly to cover their risk with appropriate time shorting. The reality is that this is, I think, was a very difficult decision for the Board to go ahead thousand and dividend. Will we use Macquarie into the future? Macquarie is, like all Investment Banks, subject to competition from other people who can provide services. As I say, I think the process with the DRP has led undoubtedly to share price weakness. 2,000,000,000 in reality, the story around the core future investment in AGL remains extremely strong. The next question is from Mrs. Helen Costa. Thousand and forty eight. I now learned that AGL relies on coal to source over 80% thousand and forty eight. How can this stance be regarded as consistent with its claim to be climate neutral? Isn't it 2,000,000,000. The real test of climate neutrality and acting on climate about how high the renewable energy percentage is and taking steps to move away thousand and fifty. Helen, thank you very much for your question. The reality for AGL is and we haven't hidden any of this is a significant part of AGL is presently based on coal fired generation. I think we make up somewhere around 30% of the NIM nineteen in terms of our capacity to provide power from coal. We've highlighted that, that's not a long term sustainable position for the company, and we've made a commitment to be carbon neutral by 2,000 and thirty. The reality is that we need to make an orderly transition from call to other forms of energy, and I'll do that in conjunction with the reality that our generation is still required nineteen, and I also highlight that the Board is leaning in through its different direction with respect to company structure leading into this transition as never before, and we certainly are reviewing what things that can be done both through Axle Energy and AGL Australia in terms of redoubling our commitments to that transition from a different stance, Axcel to AGL Energy. So I this remains work in progress, but one that we are making material progress on. Nineteen. The next question is from Mr. Mamoon Reza. AGL's plummeting share price can't simply be attributed to market conditions as other energy companies have fared better over the last 12 months. Why is the share price still falling? And what will the Board do to earn back thank you for your question, Mr. As I look out, plummeting share price has been covered in some of the discussions I've had before. In actual fact, our peer group or some of our peer group within the market have also seen substantial and other ways of managing the present transition risk. Look, we've outlined where we think the direction of the organization is going. We are committed to the demerger of our 2 entities and separating the coal fired generation primarily with its upside in energy hubs steps away from our customer base in renewables. We think that is the way forward and will allow each of those companies to appropriately address the challenges of transition to a different and decarbonized Australia. It also allows a very coherent direction and discussion with various stakeholders to drive that transition in an orderly way. I think the direction is one that will deliver shareholder value in the medium and long term and appropriately address the sensitivities of the transition with many of our shareholders and investors. The next question is from Mr. Alastair Anderson. What is AGL's stance on nuclear? 18. At the moment, we have no nuclear and no study of nuclear activity or nuclear generation in our portfolio. Twenty nineteen. The next question is from Mr. Austin Hunt. Could you please elaborate on the speculated demerger that was proposed 2022. Additionally, can you provide any insight into how assets and finances would be split between these two entities if it is to proceed? Thank you, Mr. Hunt, for your question. Look, we are, as I say, enunciated in both my speech and Graham's speech about the importance of the demerger. There is material that was published on 30th June around that time, which provides a lot of information about thirty, which assets go where, and there's also information around the capital splits and some of the financing that is represented within that split. There is no doubt that many shareholders want to see more information, and that information is being actively worked on and will be published around in the scheme document. There'll be updates and strategy updates around that prior to the scheme doctorate being published, but this remains work in progress. I would encourage you to look though at the information that's already been published, which is on our website. And as I say, more to come. I think we're a little disappointed it's taking thousand and one time to get to this. But reality is some of the approvals that are needed to get the merger are actually not in our control, and we remain a little cautious about the time frame that we will take to get those approvals from regulators and others. But Q2 next year is down for time for publishing the scheme document. The next question is from Mr. Stephen Main. After our share price peaked at over 26 $1,000,000 in April 2017. It today opened at around $5.72 giving us a market capitalization of 20.5 billion. However, we claim to have net assets of 5.5 billion. Does this mean further write downs thank you, Stephen, and thank you for your e mail earlier this morning. I'm going to ask our CFO, Damien Nicks to answer the question and provide any detail on the covenants. So Damien, Good morning, everyone. Just briefly on the question from Stephen Maim. Thank you for the question. When we assess Your second part of the question is in relation to bank covenants. I refer you to the accounts for the year where we state that we more than $600,000,000 in unused cash facilities as part of our debt facilities, and we continue to have strong 2,000,000,000 and I think, Chair, that answers broadly that question. Nineteen. Thank you, Damien. We might move to the next question then. The next question is from Mr. Robert Cascimento. Why have the directors not issued comments or statements 2. Thank you for your question, Robert. Readjust their portfolio because we're not in the ASX Top 50. We believe, again, the direction thirds of the company will see us move towards that top 50 or into that top 50 as soon as we can. Thousand. We are presently engaged with a number of parties on studying and working the feasibility of hydrogen eighteen in our energy hubs, and we'll continue to push those opportunities as we can reasonably eighteen. We are looking much more at green hydrogen than other types, but it's certainly an area of technology which we are pushing hard with our partners. The next question is from John Calder. Again, I'll pass this question across to Graeme Hunt, our CEO, and let him give you an update on 18,000,000,000. We have been involved in Rooftop Solar for many years at different levels, but as covered in both my speech and the Chairman's speech during this solar installers, Solgen and Ifo that are involved not only in rooftop solar in residential, but years and has been a part of AGL's activities for many years. The next question is, Tomago Aluminium Smelter follows through with its plan to go 100% renewable by 2029. Doesn't this mean base water thousand and thank you, Ms. Givian, for the question. We undoubtedly are already in discussions with Tomago for the long term thousand supply of power to its business, renewable power and a combination of whatever they require. 20.20 is a very significant customer to us, and those discussions are ongoing. Thousand and one at a competitive price for the future. The next question is from Kevin Dally. Exel Energy is likely to be treated in the media as a pariah company no matter what it proposes to do. For example, Exel Energy, Australia's largest emitter. Well, I suppose first off, I would not characterize Axcel Energy as a pariah. Thousand and one of the key drivers and air conditioners and cook their meals every evening. I understand and AGL has already eighteen as the largest emitter in Australia. And we've outlined ways that we think we can thirds of our footprint in that way and transition to other forms of energy appropriately as well as providing responsible supply of power, pursuing right now, and it will be whatever it will be in terms of that strategy and the timing of the company. We've highlighted that that's not a long term sustainable position for the company and we've made a commitment to be carbon neutral by 2,050. The reality and I'll do that in conjunction with the reality that our generation is still required on the NIM. I highlight that we're the largest we have the largest renewable portfolio on the assets. Leading into this transition as never before, and we certainly are reviewing what things that can be done both through Axle Energy and AGL Australia in terms of redoubling our commitments to that transition from a different stance, Axcel to AGL Energy. So I this remains work in progress, but one that we are making material progress on. The next question is from Mr. Mamoon Reza. AGL's plummeting share price can't simply be attributed to market time question. As I look out, plummeting share price has been covered in some of the discussions I've had 4. In actual fact, our peer group or some of our peer group within the market thousand people with different portfolios and other ways of managing the present transition risk. Time outlook. We've outlined where we think the direction of the organization is going. We are committed to the demerger of our 2 entities and separating the coal fired generation primarily nineteen with its upside in energy hubs away from our customer base in renewables. We think that is the way forward time will allow each of those companies to appropriately address the challenges of transition to a different and decarbonized Australia. Session in an orderly way. I think the direction is one that will deliver shareholder value in the medium and long term and appropriately address the insensitivities thousand and one of the transition with many of our shareholders and investors. The next question is from Mr. Alastair At the moment, we have no nuclear and no study of nuclear activity thousand nuclear generation in our portfolio. Thank you, Mr. Austin Hunt. Could you please elaborate on the 2. Thank you, Mr. Hunter, for your question. Look. We are, as I say, enunciated in both my speech and Graham's speech about the importance of the demerger. There is material that was published on 30th June around that time which provides a lot of information about which assets likely which assets go where, and there's also information around the capital splits and some of the financing and that information is being actively worked on and will be published session in the scheme document. There'll be updates and strategy updates around that prior to the scheme document being published, this remains work in progress. I would encourage you to look, though, at the information that's already been published, which is on our website. 18 months ago, and as I say, more to come. I think we're a little disappointed it's taking a long time to get to this, but reality is some of the approvals that are needed to get the merger happening are actually not in our control, and we remain a little cautious about the time frame that we will take to get those approvals from regulators and others. But Q2 next year is down for the time for publishing the scheme document. The next question is from Mr. Stephen Main. After our share price peaked at over $26 in April 2017, it today opened at around $5.72 giving us a market capitalization of only DKK3.4 billion. However, we claim to have a net assets of DKK5.5 billion. 2.5% to 3% in debt. Could the auditor also please comment on the €2,100,000,000 disparity between market value and book value? Thank you, Stephen, and thank you for your e mail early this morning. I'm going to ask our CFO, Damian Nicks, thanks to answer the question and provide any detail on the covenants. So Damian, I can see you're there. Just briefly on the question from Stephen Mone. Thank you for the question. When we assess the asset carrying value, we assess a number of factors, but Looking at the long term cash flows of the organization. Your second part of the question is in relation to bank covenants. I refer you to the accounts for the year where we state that we have more than $600,000,000 in unused cash thousand and six, we continue to have strong support for our banks. Look, I won't go through all of the individual covenants time question. Thank you, Damien. We might move to the next question then. The next question is from Mr. Robert Cascimento. 2. Thank you for your question, Robert. Look, we exited exit top 50 shareholders on the NASDAQ's in early September. We believe that hopefully that, that will be a temporary time process, but reality is too that certain investors will thousand and one, we've got to readjust their portfolio because we're not in the ASX Top fifty. We believe, again, the direction thirds of the company. We'll see us move towards that top 50 or into that top 50 as soon as we can. Time. We are presently engaged with a number of parties on studying and working the feasibility of hydrogen thousand in our energy hubs, and we'll continue to push those opportunities as we can reasonably eighteen. We are looking much for green hydrogen than other types, but it's certainly an area of technology, which we are pushing hard with our partners. The next question is from John Calder. Again, I'll pass this question across to Graeme Hunt, our CEO, and let him give you an update on thousand and one, where we're at with Rooftop Solar. So Graham, over to you. Thanks very much, Chairman. Nineteen. We have been involved in Rooftop Solar for many years at different levels. But as covered in both my speech and the Chairman's speech, that are involved not only in rooftop solar in residential, but at an industrial commercial Question is from Jane Gibeon. If Tomago Aluminium smelter follows through with its plan to go 100% renewable by 2029, doesn't this 20% base water power station is rendered economically unviable. What is the plan to provide renewable energy to retain Tomago's business? Thank you, Ms. Givian, for the question. We undoubtedly are already in discussions with Tomago for the long term supply of power to its business, renewable power and a combination of whatever they require. 20.20 is a very significant customer to us, and those discussions are ongoing. And certainly, we're eighteen. The next question is from Kevin Dally. Xcel Energy is likely to be treated in the media as a pariah company no matter what Well, I suppose, first off, I would which is an essential part of the NIM so people can turn on their heaters and air conditioners and cook their meals thousand and eight every evening. I understand and AGL has already seen as the largest emitter in Australia, nineteen, we've outlined ways that we think we can reduce our footprint in that way and transition to other forms of energy appropriately as well as providing responsible supply of power, which is required to the market. I think I've outlined a lot of the plans that we anticipate or we are pursuing right now. And it'll be whatever it'll be in terms of that strategy and the timing of that transition, which we're working on right now. I would hope that you'd see value in Axcel's share price and have confidence in that transition. The next question is from Mr. Scott and Tracy Andrews. Can we expect that a dividend will be paid in FY 'twenty two? IES. The next question is from Mr. Kevin Dally. What is AGL's attitude Well, thanks for the question, Kevin, and I appreciate this. This highlights a little bit of a difference between if you are a coal fired generator, coal fired generation in the NEM as a required part 2 supply power as and when needed. If you're in the renewables space in AGL Australia, you might not be so committed to such a move. And I think what we're seeing in thousand governments and regulated spaces, unfortunately, a continuing lack of cohesion around what works and what doesn't work, but there's been very good and active dialogue about the future of the NEM after 2025, and we look forward as AGL and then Axcel to play a significant role in helping to come promote sensible solutions for that. Nineteen. The next question is from Benjamin Gallat. Why is Xcel Energy receiving such a large share of AGL Energy upon demerger? Thank you for the question, Mr. Gallat. Look, the final size and shape of thousand shareholding that AGL Energy may have is subject to ongoing study and will be part of the thousand and thirty. Thank you for your question, Ms. Judd. Certainly, we are seeing and have seen a change in Ambuland Financiers and indeed insurance companies 2 business, carbon heavy piece of the business. However, I should say that Axcel Energy, in its discussions thirds with its financiers, old and new, is receiving very strong support from our banking group, and thousand and one on a number of renewable and energy hub initiatives that we see as being important for AXL. Nineteen. That is a reason for the demerger to allow AGL Australia not to be necessarily The next question is from David and Debbie Ziegler. How did the Board consider fully the impact on the business of carbon border adjustment and to AGL Australia. It is absolutely to continue to supply a mix of coal and renewables in the short term, but shifting heavily to renewables into the future. I believe both companies XL through its energy hubs and AGL Energy, through its broader portfolio of renewables, are able to provide thousand competitive cost competitive and reliable supply out into the future. The next Question is from Stephen Main. With the proposed demerger, is it right to assume that the retail consumer business will take on 2,000,000 AGL debt because its profits are more reliable and sustainable going forward. Time question. I'll partially answer that and again ask Damien to reply. He's managing the bank discussions on a daily basis things right now. It's certainly we believe we have very strong bank support for both entities, and we see that the capital access to capital for both AXL and AGL Australia remains strong. But Damian, you might add to that? 18 Thank you, Stephen, again for your question. If I refer you again back to the 30 June announcement where we talked about the split of where the debt was likely to go. And back in 30 June, we talked about $800,000,000 going into Axcel with the balance going into AGL Australia. So your position that more will go into AGL Australia That's correct. And that's on the basis of us working with the banks and working through what the cash flows of each of those entities will look like between now The next question is from Mamun Reza. If renewable energy source is cheaper than thermal, then why not plan 2,000,000 Thank you for your question, Mr. Erez. Look, the experience that everybody sees across the NIM is that renewables is not necessarily cheaper than coal fired generation, $30,000,000,000 not confirming capacity. And as I mentioned earlier, when the prices were at $35 $40 Renewables in terms of getting money back operating costs and a return on investment remains challenged. It is a reality that thousand and one, although cost of capital for renewals and renewables may make investments in lower returning projects attractive. We're seeing that certainly in AGL's renewable portfolio, but I think it's a misnomer to say it's cheaper because it's 1, the wind isn't blowing and the sun is not shining. Obviously, into the future, batteries and our significant investment in batteries things a major part of our future. And with battery technology improving year on year, we anticipate The next question is from Kevin Daly. Instead of leaning into the energy transition, why not leave that to others? 2,000,000. $30,000,000 Look, I think there is a reality. Thanks for your question, Mr. Dally. But the reality is that we have people, we have community sessions, and we have a role to play given where we sit in the supply of electricity to the NEM. Thousand investors are clearly critical to our future. Ongoing access to capital is critical. Thousand private equity has a different view of life on this space. But as far as we're concerned as a public company. We are part of the system, part of the solution, and we're happy to be that way. We, as an organization, can't be 30 minutes in my view from the responsibilities of addressing climate change, and that's part of our core strategy in culture and direction. The next question is from Mr. Jack Bauer. What are AGL's plans to profit from the Thank you for your question, Mr. Bauer. Look, we have a number and 1, certainly a good partnership with a number of parties doing EVs, and it is a significant part of percent growth potential for AGL Australia, and we'll continue to push hard on that with appropriate partners 2 build an EV business and no supply process for that business. The next question is from Mr. Jonathan Hancock. With a big investment in renewables in solar and wind, what plans have been put in place or considerate 2 Well, you're right, Mr. Hancock, many of these assets long dated. We have agreements that are in place for long term renewables 2 to recycle and dispose of that appropriately, but they are long dated and clearly even the technology of how we do that is likely to change over that period of time, but we're certainly aware of the requirement for that, albeit long dated. Nineteen. The next question is from Ms. Adele Walsh. I don't want the demeasure to happen. How can we vote on this Well, our direction is clear. There will not be a capacity to vote on this before the money is spent on the proposal. We genuinely believe it's a good idea to do and it's core to our future. You have to make up your mind as to what you do with your investments, Ms. $1,000,000,000 I hope we've addressed some of your concerns. The next question is from Deborah Ann How can AGL claim to be carbon neutral when the power is still coming from coal? Isn't this just greenwashing? And won't the company get caught out for this? 2. Our commitment is to be carbon neutral by 2,050, regards to managing our carbon emissions and exposure. We'll obviously be part of thousand and the ongoing with ongoing discussions with a range of shareholders. Eighteen. The next question is from Mr. Ashai and Sherif. Will AGL Australia as a demerged entity set the goal of thousand and thirty. Look, I think that will be up to the AGL Australia Board as and when to and part of our overall work with respect to setting strategies for both Vaxel and AGL Australia. And that will be published ad scheme document at the latest following a number of interfaces with shareholders 1st of the stakeholders prior to that time. The AGL Australia Board will then be accountable for those strategies and those targets, and it would be premature of me to set that now while the work is ongoing to finalize what that strategy might be. 18. Apologies. The next question is from Mr. Stephen Main. What was the 2,000,000,000 to AGL Board's view on the widely rorted $90,000,000,000 JobKeeper program. It was very easy to qualify by just 2,000,000,000 forecasted a drop of revenue even if it didn't eventuate. How did AGL play JobKeeper? And are we aware of any I can only speak on a personal basis, Stephen, on this one, and I think I'd be disappointed that, that scheme was utilized in the way it was. Eighteen-twenty 18 model with compensation for all non participants in retail rights trading similar to the 1,230,000,000 and thank you, Mr. Main, for a question. Look, I am we I'm not able to I don't wish to speculate on any capital raising. I don't believe it's appropriate. We have thousand ways and a strong capital process that's ongoing right now with our banks and financiers. And at present time, there's no contemplation of an equity raising, whatever style or shape that you have. The next question is from Altitude Investment. Did AGL use E. ON and Uniper as a case study for the split of AGL Energy into time. Look, we did look at a whole range of companies and examples of how splits things that took place in the performance. Certainly, a number of the renewables companies performed extremely well after that split, though I must say the European market is different to the one that's prevalent in Australia, The next question is from Australian Trade Corporation. Are we losing household energy supply thanks to rooftop solar? 2.5% growth. Does AGL have any plans to expand its market share by adding new retail and industrial customers or supplying overseas markets like Singapore? 18 months. Well, certainly, we have significant plans in our strategy to build on both our retail and C and I customer base, and that is part of our strategy, which will be driven by Axcel Energy. We have looked at supplying certainly in gas trading to places like Singapore. But again, that remains part of the strategy that will be looked at by Acel. The next question is from Hilary Kun. From a shareholder's point of view, it is obvious that the current Board and CEO recognize the need for new directors to the Board with relevant skills for AGL's future directions thousand and one, as described by the Chairman in his early address. So why did the Board not proceed with the process of appointments in order to gain ratification at this AGM? Time. Thank you for your question, Ms. Coon. We have been looking getting an appropriate director or directors thirds into an organization. It's not a 5 minute exercise. There needs to be clarity around what you're offering, thousand and it needs to be a comprehensive process to find the right person. Nineteen. We've been looking for this for a number of months. And to attract the right person, we need to take our time to find the person with the right skills and commitment to take on some of the challenges that AGL has and eventually, hopefully, Acel Energy and AGL Australia. We are very, very committed things to bring on people with substantial experience on energy transition in ESG, but we also need to, for instance, replace time stamp, hope and its financial capabilities and audit processes for Aksel and to look at the broad thousand skills metrics, which is appropriate for the challenges of the company's future. The next question is from Patkumar Patel. 2,000,000. Can you assert your statement again and if it is at all in the best interest of shareholders? Thousand and thousand standard practice in this space. I don't have any further comment on that. The next question is from Peter Brooks, a professor at the Centre for Healthy Health Policy at the Melbourne School of Population and Global Health. 2,000,000,000. The evidence of the harm posed by both the combustion of fossil fuels and climate change itself and in the form of heat related mortality, 2,000,000 litigation on health grounds as a Tier 1 strategic risk. 2,000 and 30 to mitigate these health risks 2. Thank you for your question, Peter. And let me say we continually interface with our communities and thousand workers over their health and health and safety as a critical part of our strategy and culture at AGL. Nineteen. Thank you, Diane. Thank you for that description. Luis, could you please let me know if there are any questions relevant to the resolution to adopt the 2021 remuneration report. The first question on this resolution is from Stephen Mayne. There are 5 proxy advisers in the Australian market. We know that the ASA is recommending and voting against the REM report and the LTI grant for CEO, Graham Hunt. Have any other thousand and Thank you for your questions, Stephen. Look, there is overwhelming support for both the remuneration report and the thousand grant of LGIs to Graham in the voting, and that reflects the support of the various proxy advisers for that vote. I'm sure that we can provide and we'll provide details of the voting after the meeting. The next question is from Adele Walsh. AGL management was able to predict renewables rising and reducing the cost of electricity. Why are we rewarding them? On criteria such as predicting renewables. And I should stress that and also the reduction in price. Reality is today the SGI all our management or senior management has been reset in line with shareholder thousand experience over the last 12 months, and Diane enunciated the reasons for that change. There are no further questions on this resolution. Thank you. Sorry, Chair. There is one further question that's just come in from Dan Gosher. Look, there is no doubt that things. Both AGL Australia and Axcel Energy will look at appropriate remuneration targets for carbon intensity and other objectives that are required in that company based on their strategy for carbon neutrality and benchmarks against those objectives. And on that basis, There are no further questions on that resolution. Thank you, Liz. I'll now put the motion that the remuneration report of AGL for the year ended 30th June 2021 details of the proxy and direct votes that have been cast on this motion are as shown on the screen. Nineteen. Thank you very much. I now turn to the 3rd item of business, which is the reelection of 1 Board endorsed Director and the election of a non 4 endorsed candidate. In accordance with the company's constitution, 2 directors are retiring at this Annual General Meeting, John Stanhope and Jacqueline Hay. Jacqueline is seeking reelection. Also seeking election to the Board is Ashjeen Sharif, who has nominated himself as a candidate for election. The first matter under this item of business concerns the reelection of Jacqueline Hay as the Director. 30 short video we'll now play in which Jacqueline will outline why she is seeking your approval to continue as the Director of your company. 4 hour online meeting today. We thought it prudent for this address to be prerecorded to minimize disruption and the risk of technical issues. 18. Hello, ladies and gentlemen. I really appreciate you joining us today in this virtual mode, and I do thank you for giving me the opportunity thousand and one, I'm an economist by university training and have spent more than 20 years in the technology industry, Ending up as Managing Director for NCHIES, both here in Europe and in Middle East. During this time, I gained a lot of real life leadership experience, thousand and six, I'm the Chairman of the Bank of America Merrill Lynch. Today, I have AN6 Board roles with Qantas, and I'm the Chair of the Bendigo Medallade Bank. These roles enable me to identify best practices across industries and to apply those learnings to the benefit of AGL. I also serve as Chair of the AGL Safety, Customer and Corporate Responsibility Committee as well as being on the Audit and Risk Management Committee. Your company has a proud history, and presently, it does operate in an industry which is experiencing substantial change. Eighteen. We must transform as the world we live and work in requires us to address generational, environmental and social issues 18.5%. This evolution means we are moving from an energy landscape built on baseload thermal power to a future of cleaner, more distributed energy thousand and six, we will require a well considered and responsible approach to balance the needs of all stakeholders thousand and one group gets left behind and also that Australian households and businesses have continued access thousand and Jacqueline Petzwina Director since March 2016. She is considered by the Board to be an independent Director. 11. Ms. Hay enjoyed a successful executive career prior to becoming a full time company director in 2011. Ms. Hay has extensive experience as a Director of ASX listed companies and is currently Chair of Bendigo Bank and the Director of Qantas. 4's existing skills and experience. Ms. Hay also adds considerable strength and leadership to the committees on which she serves, including as Chair of the Safety, Customer and Corporate Responsibility Committee. Therefore, the Board, excluding Jacqueline, recommends shareholders vote in flavor of this resolution. Liz, could you please let me know if there are any questions relevant to the resolution to reelect Jacqueline Hay as a Director? Thank you, Chair. The first question is from Stephen Main. The current AGL constitution provides a range Will the Chair undertake to replicate these features of the constitution in the demerged company, avoiding following the lead of other demerged nineteen. Thank you for your question, Mr. Main. Look, the constitution of axle and AGL Australia is subject to ongoing discussions. Your point The next question is from Stephen Main. As the Chair of Bendigo and Adelaide Bank, could Jacqueline please comment on how much Australia's banks Moving to decline or reduce funding for carbon intensive businesses like AGL, is Bendigo a lender to AGL? I can't speak on behalf of Jacqueline about Bendigo and Adelaide Bank's policies of lending. And I would anticipate that we I'll ask Jacqueline to respond accordingly to Stephen Lane after this meeting. Nineteen. There are no further questions, Chair. Thank you, Liz. I will now put the motion 18 months. Thanks very much. The next matter for consideration is the election of Ashjein Sharif as a Director. Mr. Sharif, a retail shareholder nominated himself as a candidate for election, which was supported by another individual retail shareholder. A short video will now play in which Ash Jain will outline why he's seeking your approval to be appointed as the Director of your company. As with Jacqueline's address, we have pre recorded Ashin's address to minimize disruption and the risk of technical issues. My name is Ashane Sharif. I'm 18 years old and I'm currently a student at the University of Melbourne. I may seem an unlikely candidate for the AGL Board, compelled to nominate myself because while AGL is Australia's biggest climate polluter, it has the size, the scale and the scope thousand and one, and towards clean and reliable renewable energy in order to give my generation and all those to come a shot at a safe future. More than 18,000 people from all over Australia have signed a petition supporting my call for AGL to replace its coal burning power stations with renewables 2,030. All of those people are calling on shareholders like yourselves to do the right thing for the next generation and for AGL as a business. The AGL Board has admitted that it failed to recognize the pace of change in the energy market. Renewables are taking the lead, and AGL is not well placed thousand and six, we're pleased to take advantage of the huge opportunities this presents. The failures of AGL's Board have cost shareholders over $12,000,000,000 in recent years, And AGL share price has nose dived 70% over the past 3 years alone. Financial markets are now moving at lightning pace towards climate action, 2,000,000,000,000. AGL will struggle to gain financial support from banks, insurers and investors if it does not respond commensurately to the climate crisis. As the UN's Intergovernmental Panel on Climate Change and the International Energy Agency all advocate, we must transition away from coal by 2,030 thousand and one, we're pleased to maintain a safer, more livable climate future. It is as simple as that. With the right leadership, AGL can become a genuine renewable energy powerhouse and restore shareholder value to what it once was before the company began purchasing coal burning power stations in 2012. So if you elect me to the Board, here are 5 key steps I would instruct AGL's executive team to deliver throughout the demerger process into Exel and AGL Australia. Firstly, I will push to fully commit to the Paris Agreement emissions reduction targets, including replacing Bayswater and Loy Yang A with renewables by 2,030, providing certainty to the market. This importantly includes implementing transition plans for all workers at Bayswater and Loy Yang A, working closely with unions, relevant governments and other key local stakeholders with our largest customer to Mega Aluminium smelter for AGL to provide renewable energy to as it transitions to mostly renewable power sources by 2029 And commence negotiations with Portland Aluminum Smelter to do the same. Thirdly, I would transform AGL's old power generation sites thousand and nine-twenty 18.5% to be the center of renewable energy industrial precincts using access to land, transmission lines and renewable energy resources as a major competitive advantage. Penultimately, I would position the company to be the preferred supplier of electricity to the rapidly growing list of major businesses 1,030 into growth capital expenditure on new renewable energy production and storage projects. Eighteen. As Australia's biggest climate polluter, AGL has the power to become Australia's biggest climate solution by switching rapidly to renewable energy. I want to be a part of that solution and I want to restore AGL to the great company that it once was and should still be for the sake of all staff, nineteen. Thank you, Arshin, for the video. The Board, assisted by the nominations committee, has carefully considered Mr. Sharif's nomination in the context of the succession planning it undertakes 1,000,000 Non Executive Director's session and is recommended that shareholders vote against necessary selection. 18 months. As I mentioned previously, the Board is currently undertaking succession planning and is seeking to appoint a new Director to the Board with specific 3 years of experience in climate change and ESG in the first half of FY 'twenty two. Liz, could you please thousand and nine. Thank you for your appointment, your question, Mr. Keogh. The appointment of a Board member nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty nineteen-twenty twenty-twenty twenty-twenty twenty-twenty twenty-twenty twenty-twenty twenty-twenty twenty-twenty thousand Directors and or Directors to AGL Energy, and therefore, absolutely not appropriate recommendation to bring on a range of skills, which are necessary 2 drive, both AGL Energy and in the future AGL, AGL Australia and Axcel. Next question is from Stephen Mayne. Could the proxy position be disclosed before the debate on each item rather than after in accordance 2,000,000,000,000 to the ASA best practice AGM guidelines. Did Mr. Sharif, the youngest ever candidate for an ASX 100 Board, 2 Thank you, Mr. Main, for your question. I can confirm that Thank you, Chair. There's no further questions on that resolution. I will now put the motion to the meeting, 13 Sharif be elected as a Director of the company. Details of the proxy and direct votes that have been cast on this motion are 18 months. Thank you very much. I now turn to the 4th item of business, which is the grant of performance rights under the long term incentive plan in the 2022 financial year to the Managing Director thousand CEO, Graeme Hunt. The number of performance rights to be granted to Graeme is 297 297,374 with a 4 year performance period. The number of performance rights that ultimately vestigram will depend on the extent to which the performance conditions have been satisfied over the relevant performance period. AGL's FY 'twenty two long term incentive plan has 2 performance conditions. The first weighted at 75% measures AGL's total shareholder return relative to those of the constituent companies in the S and P ASX 100 Index, being AGL's peer group. 2nd measure weighted at 25% is related to carbon transition, which was first introduced as an LZIP metric in FY 2021. This metric has been included having regard to AGL's climate statement AGL's commitment to reduce its carbon footprint and to facilitate the transition of AGL's generation fleet thousand and one, responsibly over time. We think this metric provides the focus for executives to deliver against AGL's commitment in its climate statement. 20. Following feedback received on the FY 'twenty remuneration report and the ongoing challenge of establishing an appropriate target range return on equity metric. The Board determined not to include return on equity as a performance metric for FY 'twenty two LTIP. 18. The ASX listing rule required that shareholders approve the granting of performance rights thanks to any Director, including the Managing Director. The Board, excluding Graham, recommend shareholders vote in favor of this resolution. Eighteen. Could you please let me know if there are any questions relevant to the resolution to grant performance rights under the LTIP thousand grant hunt. There are no questions for this resolution, Chair. Thank you, Liz. I'll now put the motion to the meeting to approve the grant of 297,000 374 performance rights to Graham Hunt under AGL's long term incentive plan for the year ending 30th June 2022 on the terms set out in the explanatory notes, which accompanies a notice of meeting. And there are the proxy and direct votes for this item on the screen as we speak. 18 months. Please place your online vote for this item if you have not already done so. Nineteen. Thank you. I now turn to the 5th item of business, which is the conditional spill resolution and will not be this will not be put to the meeting today given the company did not receive 2nd strike in relation to the 2021 remuneration report. $1,000,000,000 details of the proxy and direct votes that have been cast on this notion are now shown on this screen. 2.5. So we now move on to Item 6A. And Item 6A concerns a special resolution proposing to amend AGL's constitution to include a new provision that would enable shareholders by ordinary resolution to express an opinion or request information about the way in which a power of the company vested in the Board 10 of the Corporations Act by shareholders representing approximately 0.02% of shares on issue in AGL. The Board has recommended that shareholders vote against this resolution. Detailed reasons are set out on Page 13 of Notice of Meeting. Eighteen. The Board and company are committed to understanding the views of AGL's stakeholders and making a genuine effort to respond to concerns which are raised. The company considers that it has a proven track record of standing and responding to stakeholders' concerns in a way that is cognizant of and balances the competing interests of its different stake stakeholder groups. The Board does not consider that the proposed constitutional amendment would enhance its ability to understand the views sentiments of its shareholders and broader stakeholders. In addition, the Board is concerned that the proposed amendment to the constitution 18. The resolution proposed is a special resolution and this means that it will be passed if at least 75 set of the votes cast by shareholders are in favor of the resolution. The directors unanimously recommend that shareholders vote against these Item 6B is an advisory resolution and will only be considered if Item 6A is passed by special resolution. The Board does not endorse Item 6B and recommends that shareholders vote against it for the reasons set out pages 14 and 15 of the notice of meeting. Item 6b requests the Board disclose in association with the forthcoming demerger scheme documents, short, medium and long term targets thousand and four reductions in the proposed demerge companies, Scope 1, 2 and 3 emissions that are aligned with articles 2.1A and 4.1 of the Paris Agreement, details of how Acel Energy and AGL's capital expenditure, sustaining and growth and transformation will align with the targets and details of how AXL Energy and AGL Australia's remuneration policy will incentivize progress against targets. AGL understands the critical importance of de thousandization of the electricity sector. However, as mentioned earlier, AGL is not currently in a position to make Paris aligned targets to Scope 1, 23 emissions for Acel Energy and AGL Australia. Thousand and In relation to Resolution 6A, The first question is from Stephen Main. Why are Australian Boards so afraid of listening to the opinions of shareholders by way of non binding shareholder resolutions? Eighteen. These are standard practice in the U. S, yet dozens of ASX listed companies have now recommended against these constitutional amendments. Did you consider supporting this move? And will you consider providing such resolutions in the constitution of ExCel? Well, again, Mr. Nain, thank you for your question. The constitution of Axcel and AGL Australia subject to review by the Board and eventually their respective Boards in the event of of AD merger. And your point and sensitivities are noted and will undoubtedly be considered in those 4 deliberations. The next question is from Angela Meyer. The International Energy Agency and UN are both calling for Australia to 1,030 in order to meet the Paris Climate Agreement goals. Does the Board and CEO acknowledge that 2,030 is 2,000,000 Thank you for your question, Ms. Meyer. We certainly recognize that the date of 2,030 is something that is on the table with respect to the UN targets. I believe that 2,030 is a very, very challenging target set for coal closure based on the current pace of regulatory reform and the need for ongoing replacement of coal fired generation within the NEM. As I mentioned earlier on, our targets fleet. We'll be part of the scheme document that will be published in FY 'twenty two. And on that basis, further details of our approach to this will be given in those documents. Eighteen. The next question is from Dan Gosher of VACCR. The presentation on 30 June stated that AGL would disclose detailed climate change 2,000,000 roadmap including specific decarbonization targets for both demerger companies. Can the Chair confirm when this information will be made available thousand and four. Is this information not material to the team at the Vodg? Thank you for your question, Dan. As we've said before, the reality is that we are working very hard on analyzing what the targets thousand stakeholders. The Board will appropriately publish those targets, including capital allocation and incentivization for meeting those targets as part of the scheme document, which will be published next year. I reiterate that that's a commitment we made inevitably for Nymind. The scheme document will be in part a mandate for shareholders to vote and be comfortable with the actions and strategies that each company is taking towards the transition. Eighteen. The next question is from Stephen Main. When disclosing the outcome of the Paris goals and targets resolution and all other resolutions today on your website, Could you please advise how many shareholders voted for and against, similar to what happens with the scheme of arrangement? This will provide a better gauge nineteen. Thank you for your questions, Stephen. We'll review that and revert accordingly. I will revert. Nineteen. The next question is from Deborah Ann Sykes. Do you acknowledge that the UN and International thousand and thirty, so clearly that Australia has to stop burning coal by 2,030 to address climate change. What are your plans to meet this target? Eighteen. I've already said that our targets are subject to review right now and will be our strategy and objectives will be published thirds part of the scheme documents. This will be published next year. Eighteen. Again, we will work very closely with regulators and governments, both federal and state, to apply come up with the right answers that provides Stability and Cost Competitiveness to the NIM. Our leading interest transition will be absolutely described in our scheme documents, and they're being worked on now. The next question is from James Morgan. Thousand and one. As a shareholder, it would seem that the Board is out of step and the share price reflects this. The Board's obsession with coal is similar to Kodak's obsession with analog film. Resolution 6A may help AGL become more relevant. Can the Board indicate how it intends to address the shareholders' broader concerns? Thousand and will be published as part of this AGM. The reality is that the share price Scott, it reflects conditions and operating conditions of the day that don't necessarily reflect 3rd process, which involves commitments to targets that different outlook and the process of how we manage our coal fired generation is one that is linked thousand into the management of the whole NEM. And we can't be independently doing things that A regulations or other commitments don't allow us to do. The The next question is from Dan Gosher. If Australia's largest carbon emitter cannot align itself with the Paris agreement, what chance does Australia have of doing the same? Dan. I think you will see what we will align to and commit to at the time of the scheme thousand document publishing where we're clearly mindful of where that's going and we're clearly mindful that this is an acceleration of an accelerating pace of expectations both from shareholders and investors, banks, etcetera. Eighteen, and that is part of our analysis as we developed the strategy for the scheme document and publishing the rationale for the demerger. Thank you, Chair. There are no further questions on this resolution. Thank you. I'll now put $1,000,000 to shareholders Item 6A, which deals with the proposed constitution amendment. The motion before the meeting is to amend the constitution to insert a new clause, time institution to insert a new clause 32.4, member resolution at the General Meeting as follows. The members in general meeting may, by ordinary resolution, express an opinion or request information about the way in which the power of the company, thousand and one, partially or exclusively vested in the directors has been or should be exercised. However, such a resolution must relate to an issue of material relevance to the company or the company's business and cannot either advocate action thousand, which would violate any law or relate to any personal claim or grievance. Such a resolution is advisory only and does not 9, the Directors of the Company. Details of the proxy and direct votes that have been cast on the Item 6A and A if you have not already done so. Based on the proxy and direct votes received ahead of the meeting, thousand and one, it's apparent that Item 6A for the amendment of AGL's constitution will not be passed. Therefore, Item 6B, which is contingent 18% on amending the constitution will not be put to the meeting today. 18. As mentioned earlier, a poll is being taken on the relevant items of business. If you have not already done so, please indicate your votes fifty resolutions via the online portal. A summary of the proxy votes I hold as a nominated proxy for shareholders 18 in relation to each resolution are shown as shown on the screen. I advised the meeting that I intend to vote all discretionary votes available to me as Chair of the meeting in favor of resolutions 2, thousand remuneration report, 3A, re election of Jacqueline Hay as a Director and 4, grants of performance rights thousand under the LTIP to Graham Hunt. And against Resolution 3b, election of Ashjei and Sharif as a Director, 2006A amendment to the constitution and 6 Paris goals and targets. 18. Ladies and gentlemen, that concludes the formal items of business for today's meeting. The polls will remain open for another 10 minutes. Results of the polling on each resolution put to the meeting 18. I now declare the meeting closed, subject to conclusion of the poll. 18 months.