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Real Results Real

Real Results Real. 2003 AGL Resources Shareholder Meeting Presented By Paula G. Rosput Chairman, President and Chief Executive Officer. Welcome To. Ten Peachtree Place 2003 AGL Resources Shareholder Meeting AGLR Board of Directors Officers and Management Guests. Then and Now. value.

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Real Results Real

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

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

  3. Then and Now

  4. value Setting Records highest earnings per share highest stock price peak-day send outs customers

  5. value

  6. Today’s Objectives • Review of 2002 Goals and Results • Goals for 2003 • Challenges & Opportunities • AGL Resources Corporate Values

  7. value improve earnings

  8. Cents 1.00 ,90 .80 .70 .60 .50 .40 .30 .20 .10 0 1Q 2Q 3Q 4Q ATG Earnings Per Share (By Calendar Quarter) 2002- $1.84 per share 19% increase over 2001 2002 2001

  9. Strategy or Tactics? • No “new and improved” strategy necessary • Stay the course • Execute with precision • Stick with the fundamentals

  10. ATG Stock Price 2002 Dec 16: Hits $25.00 High

  11. ATG versus S&P and Peer Group 2002 10.7% 2.0% LDC ATG -22.1% S&P 500

  12. CORE EARNINGS Dollars in millions CORE EARNINGS PER SHARE Dollar

  13. ATG 3-Year Stock & Return Index ATG LDCs STOCK PRICE ATG S&P 500 LDCs 4/00 4/01 4/02 4/03 RETURN ON INVESTMENT S&P 500 4/00 4/01 4/02 4/03

  14. 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

  15. 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

  16. value change the regulatory paradigm

  17. Regulatory Highlights

  18. Georgia • Settlement reached • Performance-based plan

  19. Virginia • Weather normalization adjustment

  20. Stability In Rates & Relations Sequent

  21. value accelerate telecom

  22. Our Current Networks Phoenix Metro Atlanta Metro

  23. value our accomplishments

  24. value CORE EARNINGS PER SHARE Dollar SHARE PRICE Dollar $1.84 6% $25 Rate and regulatory stability TOTAL RETURN TO SHAREHOLDERS Percent 11% Expanded AGL Networks

  25. SouthStar Georgia Natural Gas 70% 30% • Improve customer base • Improve service • Enhance quality of earnings

  26. value realities

  27. If You Don’t Drill… …and you consume more – Source: EIA

  28. 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

  29. NYMEX Forward Curve & Volatility Close of Business April 10, 2003

  30. Volatility and Pricing • Use Sequent’s expertise to benefit our customers • Diversify pipelines and storage • Increased LNG use

  31. value goals for 2003

  32. value strengthen ourselves financially

  33. 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

  34. 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

  35. value grow around our existing assets

  36. Meeting Expectations • Wall Street: 5-7% growth • Operate well run utilities • Limited growth • Regulatory restrictions • Slowing regional economies • Keep costs low – raise revenue

  37. Opportunity

  38. value execute flawlessly in every business segment

  39. Not a Luxury – A Necessity • Safety a must • Required commodity • Avoid costly mistakes • Use proven technology • Enhance Sequent’s capabilities using strict risk management framework • Extend system disciplines to SouthStar • Reduce Networks’ sales cycle time

  40. value demonstrate a compelling propositionto our stakeholders

  41. value Committing To Our Stakeholders customers shareholders communities regulators

  42. value governance

  43. Nominations & Corp Gov Finance & Risk Management Audit Corporate Responsibility Compensation Board Committees aglresources.com Executive

  44. value s ^

  45. value seeking honesty Our Core Values

  46. AGLC Cost Per New Meter 2002 2003 AGLC O&M Cost Per Customer 2002 2003 Where We’re 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

  47. value seeking honesty inside the lines generosity of spirit Our Core Values

  48. 2nd Habitat for Humanity house Polar Plunge for Special Olympics MLK Day United Way Tug-A-Plane American Heart Association’s Heartwalk V-Force 32,000 hours in 2002

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