Real Results Real

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Real ResultsReal

• 2003 AGL Resources Shareholder Meeting
• Presented By
• Paula G. Rosput
• Chairman, President and Chief Executive Officer

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Welcome To

• Ten Peachtree Place
• 2003 AGL Resources Shareholder Meeting
• AGLR Board of Directors
• Officers and Management
• Guests

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Then and Now
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Setting Records
highest earnings per share
highest stock price
peak-day send outs
customers
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Todays Objectives

• Review of 2002 Goals and Results
• Goals for 2003
• Challenges Opportunities
• AGL Resources Corporate Values

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improve earnings
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ATG Earnings Per Share (By Calendar Quarter)
2002- 1.84 per share 19 increase over 2001
2002
2001
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Strategy or Tactics?

• No new and improved strategy necessary
• Stay the course

• Execute with precision
• Stick with the fundamentals

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ATG Stock Price 2002
Dec 16 Hits 25.00 High
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ATG versus SP and Peer Group
2002
10.7
2.0
LDC
ATG
-22.1
SP 500
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CORE EARNINGS Dollars in millions
CORE EARNINGS PER SHARE Dollar
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ATG 3-Year Stock Return Index
ATG
LDCs
STOCK PRICE
ATG
SP 500
LDCs
4/00 4/01 4/02 4/03
RETURN ON INVESTMENT
SP 500
4/00 4/01 4/02 4/03
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ATG Outperforming Blue-chip Stocks
ATG is trading at 94 of its 52-week high,
outpacing nearly every company in the Dow Jones
Industrial Average index As of April 2, 2003
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ATG Outperforming Its Peers, Too
Trading at 94 of its 52-week high, ATG is
outperforming its energy sector peer group, which
is trading at an average of 80 of the 52-week
high. As of April 2, 2003
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change the
regulatory paradigm
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Regulatory Highlights
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Georgia

• Settlement reached
• Performance-based plan

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Virginia

• Weather normalization adjustment

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Stability In Rates Relations
Sequent
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accelerate telecom
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Our Current Networks
Phoenix Metro
Atlanta Metro
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our accomplishments
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CORE EARNINGS PER SHARE Dollar
SHARE PRICE Dollar
1.84
6
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Rate and regulatory stability
TOTAL RETURN TO SHAREHOLDERS Percent
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Expanded AGL Networks
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SouthStar
Georgia Natural Gas
70
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• Improve customer base
• Improve service
• Enhance quality of earnings

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realities
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If You Dont Drill
and you consume more
Source EIA
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Storage Will Fall Prices Rise
10 9 8 7 6 5 4 3
Historical range of storage volumes
1998-2002 Weekly storage volumes Natural gas spot
prices
Source EIA
Mar 01 Mar 02 March 03
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NYMEX Forward Curve Volatility
Close of Business April 10, 2003
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Volatility and Pricing

• Use Sequents expertise to benefit our customers
• Diversify pipelines and storage
• Increased LNG use

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goals for 2003
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ourselves
strengthen
financially
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Equity Offering

• Completed a 137 million equity offering in
  February
• 6.4 million shares
• Reduced our debt-to-capitalization ratio from 67
  to 57 percent
• Solidified our credit ratings
• Received upgrade to A- by Fitch

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Post-Offering

• Consensus 1.85-1.90
• Includes dilution of 0.10 per share from equity
  offering
• Price has recovered nicely
• Trading in mid-to-high 23 range with healthy
  volumes
• Continued after-market institutional support

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grow
around our
existing assets
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Meeting Expectations

• Wall Street 5-7 growth
• Operate well run utilities
• Limited growth
• Regulatory restrictions
• Slowing regional economies
• Keep costs low raise revenue

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Opportunity
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execute
flawlessly
in every business segment
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Not a Luxury A Necessity

• Safety a must
• Required commodity
• Avoid costly mistakes
• Use proven technology
• Enhance Sequents capabilities using strict risk
  management framework
• Extend system disciplines to SouthStar
• Reduce Networks sales cycle time

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demonstrate
a compelling
propositionto our stakeholders
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Committing To Our Stakeholders
customers
shareholders
communities
regulators
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governance
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Board Committees
aglresources.com
Executive
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s

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Our Core Values
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Where Were Doing It
1100 1000 900

• Reducing leak response time
• Creating appointment times
• Payment history improvement at SouthStar
• Hold and handle times down at our Customer Care
  Center

140 130 120
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Our Core Values
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V-Force
32,000 hours in 2002
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Volunteer of the Year

• Timothy Dasher
• Meter Reader
• Savannah service center

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AGLR Employees
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Whats Good For The Company?
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the real
is still here at
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the real
is still here at
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