Real ResultsReal

Real ResultsReal

2003 AGL Resources Shareholder MeetingPresented By

Paula G. RosputChairman, President and Chief Executive Officer

2003 AGL Resources Shareholder MeetingPresented By

Paula G. RosputChairman, President and Chief Executive Officer

Welcome ToWelcome To

Ten Peachtree Place

2003 AGL Resources Shareholder Meeting

AGLR Board of Directors

Officers and Management

Guests

Ten Peachtree Place

2003 AGL Resources Shareholder Meeting

AGLR Board of Directors

Officers and Management

Guests

Then and NowThen and Now

Setting RecordsSetting Records

value

highest earnings per sharehighest earnings per share

peak-day send outspeak-day send outs

highest stock price

highest stock price

customerscustomers

value

Today’s ObjectivesToday’s Objectives

Review of 2002 Goals and Results

Goals for 2003

Challenges & Opportunities

AGL Resources Corporate Values

Review of 2002 Goals and Results

Goals for 2003

Challenges & Opportunities

AGL Resources Corporate Values

value

improve earningsimprove earnings

ATG Earnings Per Share (By Calendar Quarter)ATG Earnings Per Share (By Calendar Quarter)

2002- $1.84 per share19% increase over 20012002- $1.84 per share

19% increase over 2001Cents

1.00,90.80.70.60.50.40.30.20.10

0

Cents

1.00,90.80.70.60.50.40.30.20.10

01Q 2Q 3Q 4Q1Q 2Q 3Q 4Q

20022002

20012001

Strategy or Tactics?Strategy or Tactics?

No “new and improved” strategy necessary

Stay the course

Execute with precision Stick with the fundamentals

ATG Stock Price 2002ATG Stock Price 2002

$15

$20

$25

1/2/

2002

2/2/

2002

3/2/

2002

4/2/

2002

5/2/

2002

6/2/

2002

7/2/

2002

8/2/

2002

9/2/

2002

10/2

/200

2

11/2

/200

2

12/2

/200

2

1/2/

2003

$15

$20

$25

1/2/

2002

2/2/

2002

3/2/

2002

4/2/

2002

5/2/

2002

6/2/

2002

7/2/

2002

8/2/

2002

9/2/

2002

10/2

/200

2

11/2

/200

2

12/2

/200

2

1/2/

2003

Dec 16:Hits $25.00 High

Dec 16:Hits $25.00 High

ATG versus S&P and Peer GroupATG versus S&P and Peer Group

10.7%10.7%

2.0%2.0%

-22.1%-22.1%

ATGATG LDCLDC

S&P 500S&P 500

20022002

CORE EARNINGS

Dollars in millions

CORE EARNINGS PER SHARE

Dollar

ATG 3-Year Stock & Return IndexATG 3-Year Stock & Return Index

-60

-40

-20

0

20

40

60

80

To

tal R

etu

rn (

%)

-60

-40

-20

0

20

40

60

80

To

tal R

etu

rn (

%)

LDCsLDCs

ATGATG

S&P 500S&P 500

4/00 4/01 4/02 4/034/00 4/01 4/02 4/03

4/00 4/01 4/02 4/034/00 4/01 4/02 4/03

LDCsLDCs

ATGATG

S&P 500S&P 500

STOCK PRICESTOCK PRICE

RETURN ON INVESTMENTRETURN ON INVESTMENT

ATG Outperforming Blue-chip StocksATG Outperforming Blue-chip Stocks

30%

40%

50%

60%

70%

80%

90%

100%

Home Depot

Coca-Cola

GE

IBM

Wal-Mart

Microsoft

AGL Resources

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

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

ATG Outperforming Its Peers, TooATG 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

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

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

NICOR Atmos Energy Western Gas Resources

KeySpan Energy Peoples Energy Piedmont Natural Gas

AGL Resources

value

regulatory paradigmregulatory paradigm

change thechange the

Regulatory HighlightsRegulatory Highlights

GeorgiaGeorgia

Settlement reachedPerformance-based plan

Settlement reachedPerformance-based plan

VirginiaVirginia

Weather normalization adjustment

Weather normalization adjustment

Stability In Rates & RelationsStability In Rates & Relations

SequentSequent

value

accelerate telecomaccelerate telecom

Our Current NetworksOur Current Networks

Atlanta MetroAtlanta Metro

Phoenix MetroPhoenix Metro

value

our accomplishmentsour accomplishments

$25$25

6%6%$1.84$1.84

CORE EARNINGS PER SHARE

Dollar

SHARE PRICE

Dollar

TOTAL RETURN TO SHAREHOLDERS

Percent

11%11%

value

Expanded AGL NetworksExpanded AGL Networks

Rate and regulatory stabilityRate and regulatory stability

SouthStarSouthStar

70%70% 30%30%

Georgia Natural GasGeorgia Natural Gas

Improve customer baseImprove serviceEnhance quality of earnings

Improve customer baseImprove serviceEnhance quality of earnings

value

realitiesrealities

If You Don’t Drill…If You Don’t Drill…

Source: EIASource: EIA …and you consume more – …and you consume more –

0

500

1000

1500

2000

2500

3000

3500

0

500

1000

1500

2000

2500

3000

3500

Storage Will Fall & Prices RiseStorage Will Fall & Prices Rise

Source: EIASource: EIA

Mar 01 Mar 02 March 03Mar 01 Mar 02 March 03

$

10

9

8

7

6

5

4

3

$

10

9

8

7

6

5

4

3

Historical range of storage volumes 1998-2002Weekly storage volumesNatural gas spot prices

Historical range of storage volumes 1998-2002Weekly storage volumesNatural gas spot prices

$3.000

$3.500

$4.000

$4.500

$5.000

$5.500

$6.000

$6.500

May

-03

Aug-03

Nov-03

Feb-04

May

-04

Aug-04

Nov-04

Feb-05

May

-05

Aug-05

Nov-05

Feb-06

May

-06

Aug-06

Nov-06

Feb-07

May

-07

Aug-07

Nov-07

Feb-08

May

-08

Aug-08

Nov-08

Feb-09

MONTH/YEAR

US

D

$3.000

$3.500

$4.000

$4.500

$5.000

$5.500

$6.000

$6.500

May

-03

Aug-03

Nov-03

Feb-04

May

-04

Aug-04

Nov-04

Feb-05

May

-05

Aug-05

Nov-05

Feb-06

May

-06

Aug-06

Nov-06

Feb-07

May

-07

Aug-07

Nov-07

Feb-08

May

-08

Aug-08

Nov-08

Feb-09

MONTH/YEAR

US

D

NYMEX Forward Curve & VolatilityNYMEX Forward Curve & Volatility

Close of Business April 10, 2003Close of Business April 10, 2003

Volatility and PricingVolatility and Pricing

Use Sequent’s expertise to benefit our customers

Diversify pipelines and storage

Increased LNG use

Use Sequent’s expertise to benefit our customers

Diversify pipelines and storage

Increased LNG use

value

goals for 2003goals for 2003

value

ourselvesourselves

financiallyfinancially

strengthenstrengthen

Equity OfferingEquity 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

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

Post-OfferingPost-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

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

value

around ouraround our

existing assetsexisting assets

growgrow

Meeting ExpectationsMeeting Expectations

Wall Street: 5-7% growth

Operate well run utilities Limited growth

Regulatory restrictions

Slowing regional economies

Keep costs low – raise revenue

Wall Street: 5-7% growth

Operate well run utilities Limited growth

Regulatory restrictions

Slowing regional economies

Keep costs low – raise revenue

OpportunityOpportunity

value

flawlesslyflawlessly

in every business segmentin every business segment

executeexecute

Not a Luxury – A NecessityNot 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

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

value

a compellinga compelling

propositionto our stakeholders

propositionto our stakeholders

demonstratedemonstrate

Committing To Our StakeholdersCommitting To Our Stakeholders

value

customerscustomers

communitiescommunitiesregulatorsregulators

shareholdersshareholders

value

governancegovernance

CompensationCompensationCorporateResponsibilityCorporateResponsibility

AuditAudit

Finance & Risk ManagementFinance & Risk Management

Nominations &Corp Gov

Nominations &Corp Gov

Board CommitteesBoard Committees

ExecutiveExecutive aglresources.comaglresources.com

value

^̂ss

Our Core ValuesOur Core Values

honesty

valueseeking

Where We’re Doing ItWhere We’re Doing It

Reducing leak response time

Creating appointment times

Payment history improvement at SouthStar

Hold and handle times down at our Customer Care Center

Reducing leak response time

Creating appointment times

Payment history improvement at SouthStar

Hold and handle times down at our Customer Care Center

$1100

$1000

$900

$1100

$1000

$900

AGLC Cost PerNew Meter

AGLC Cost PerNew Meter

2002 20032002 2003

$140

$130

$120

$140

$130

$120

AGLC O&M CostPer Customer

AGLC O&M CostPer Customer

2002 20032002 2003

Our Core ValuesOur Core Values

generosityof spirit

inside

the

lines

honesty

valueseeking

V-ForceV-Force

32,000 hoursin 2002

32,000 hoursin 2002

2nd Habitat for Humanity house2nd Habitat for Humanity housePolar Plunge for Special OlympicsPolar Plunge for Special Olympics

American Heart Association’s HeartwalkAmerican Heart Association’s Heartwalk

MLK DayMLK Day

United Way Tug-A-PlaneUnited Way Tug-A-Plane

Volunteer of the YearVolunteer of the Year

Timothy DasherMeter Reader

Savannah service center

Timothy DasherMeter Reader

Savannah service center

AGLR EmployeesAGLR Employees

What’s Good For The Company?What’s Good For The Company?

20022002 the value is “here”the value is “here”

marketers & constituentsmarketers & constituents

continuing to find the valuecontinuing to find the value

20032003

strengthen our financesstrengthen our finances

flawless executionflawless execution

asset useasset use

value

value

the realthe real

is still here at

is still here at

value

the realthe real

is still here at

is still here at