ceo to go in a week, page-4

AGL appoints new CEO




A message from the Chairman

This morning we have announced the appointment of Michael Fraser to the position of Managing Director and CEO for AGL Energy, effective immediately, following Paul Anthony’s cessation of employment with the company.



Michael, who is well known to many of you, is a highly experienced and respected executive who has worked with AGL since 1984 and held a number of senior positions across the business, most recently as Group General Manager of Merchant Energy. His appointment reflects the Board’s view that AGL would benefit from a new management approach to continue the execution of the company’s strategy to build AGL into a world class integrated energy company.



During his time as CEO, Paul Anthony played a leading role in advancing AGL’s strategic objectives and as a result we have achieved substantial scale, improved balance between generation capacity and customer demand and a significant degree of integration earlier than originally envisaged. However, the circumstances leading up to and surrounding the earnings guidance announced last week and other factors have contributed to the Directors’ view that the time has come for a new management approach with strengthened focus on our core operations.



We believe that Michael is the right person to lead the company from this point. He has extensive energy industry experience, is highly respected by his peers, and has a deep operational working knowledge of AGL. As well, Michael has been a significant contributor to the development of AGL’s strategy and is firmly committed to further developing AGL into a world class, customer focussed energy company.



I acknowledge that the events of the past week have been unsettling for everyone. On behalf of the Board I’d like to offer my appreciation to all of you for your efforts throughout this difficult week and ask that you all continue to stay focused on getting on with the task at hand.



I extend my congratulations to Michael on his appointment and ask you all to give him your full support as the new leader of AGL Energy.





Mark Johnson

Chairman




A message from the new Managing Director

It’s my privilege and pleasure to be communicating with all of you this morning as the newly appointed Managing Director and CEO of AGL Energy.



There’s no doubt that the tumultuous events of the past week, including the significant public coverage that AGL has received, have taken a severe toll on the morale of everyone at AGL as well as the confidence of the market and our shareholders.



Restoring that morale and confidence is my critical first priority. Unfortunately it is not going to happen overnight, and it’s going to take the combined resolve and efforts of all of us to re-establish the very strong foundation credentials of our business, as a leading integrated energy company with a great position in all of its operating markets, staffed by highly skilled and talented employees.



As one who’s been with AGL over a very long period, and lived through a great number of changes, one constant has been the solid core of talented, capable and dedicated people that we have at every level and in every corner of our business. I’m committed to working with all of my executive team, their respective leadership groups, and everyone across the business, to maximise every opportunity before us, and to re-build the pride, confidence and engagement that all of us aspire to enjoy.



My immediate task is to lead and complete the business assumptions and operations review that we announced last week and to report on progress at the Annual General Meeting on 8 November.



Mark Johnson and I have briefed the senior leadership group at 8am and will talk to all employees today at 2.30pm from Level 22 Spencer Street, and teleconferenced to all employees. A video of that briefing will be made available via the eNet on Tuesday.



I’m looking forward to meeting many of you over the coming weeks as I settle into this exciting and challenging role. I hope that I can count on your support.



Michael





Michael Fraser

Managing Director & CEO