Energy Developments Limited : ASX Release - AGM Speeches and Presentation

For Immediate Release

ASX Release

Building 17

2404 Logan Road

PO Box 4046

Eight Mile Plains Qld 4113

Australia

Main Tel 61 7 3275 5555

Main Fax 61 7 3341 5150

2013 Annual General Meeting - Speeches and Presentation

Attached are:

· the Chairman's speech;

· the Managing Director's speech; and

· a copy of a slide presentation,

for Energy Developments Limited's 2013 Annual General Meeting, to be delivered today.

…………………………………………………………………………………………………

For additional information please contact:

Greg Pritchard Managing Director Energy Developments

Phone: +61 7 3275 5650

Gerard Dover

Chief Financial Officer

Energy Developments

Phone: +61 7 3275 5650

About Energy Developments

Energy Developments Limited ABN 84 053 410 263 (ENE) is an international provider of safe, clean, low greenhouse gas (GHG) emissions energy and remote energy solutions. ENE currently owns and operates a diversified international portfolio of power stations in Australia, the United States, the United Kingdom and Greece from a range of fuel sources including landfill gas, waste coal mine gas, natural gas and liquefied natural gas.

In the year ended 30 June 2013:

· ENE's worldwide operations produced approximately 3.5 million MWh of energy, enough to power over 550,000 homes; and

· ENE's landfill gas power stations around the world, and waste coal mine power stations in Australia abated and avoided approximately 11 million tonnes of carbon dioxide equivalent of GHG emissions, equivalent to removing  3 million cars from the road

Note: in this release, all amounts are Australian dollars unless otherwise specified, and all numbers are approximate unless otherwise specified.

Chairman's Address

Welcome to the 2013 Energy Developments Limited Annual General Meeting.

This year, Energy Developments is celebrating its 25 year anniversary. From a single power station at Pine Creek in the remote Northern Territory back in 1988, EDL is now:

· The largest independent remote energy provider of generation up to 100MW in  Australia;

· The largest waste coal mine gas and landfill to energy generator in Australia; and

· A top 10 landfill gas to energy generator in the United States and the United Kingdom

EDL is a diverse business, with an 800 MW generation asset portfolio spread over some 80 projects across three continents.

In FY13 the Company generated 3.5 million MWh. That's enough to power 370,000 homes. It is fitting that, in this 25th anniversary year, EDL has delivered a record financial result, and the Company is well positioned for continued growth.

The Board and Management's continuous focus on safely improving operational performance and delivering growth in the core business is producing excellent results. This is reflected in a compound average growth rate for the Company's revenue of about 25% over the past three years.

Put into the context of the past 10 years, EDL has delivered a significant increase in capacity installed and revenue, both of which have more than doubled. There has also been a significant increase in the diversity of projects and blue chip customers and an increase in average length of our contracts to both fuel and supply them with low emission energy into the future.

EDL's remote and clean energy portfolios are both focussed on blue chip customers, providing significant growth prospects. Management is very focused on delivering market leading safety, reliability and efficiency performance that our customers are looking for to support their long term mine and other operations. This is being rewarded with contract extensions and new projects.

Just to recap in the 2013 financial year:

· Revenue increased 25% to $403.3.m; EBITDA was up 31% to $177m;

· Total Assets grew by 9% to $935m;

· We increased installed generating capacity from 711 MW last year to 742 MW at 30 June  2013 which is on track to grow to more than 800 MW in the current financial year; and

· We returned $35 million or approximately 22 cents per share to shareholders in the form of a final dividend of 11 cents per share and share buyback of $17.4 million.

The Board expects to see continued strong underlying results and cash generation from the existing business in FY14 with more than 80% of EDL's revenues being generated under fixed price contracts and more than half of that amount being under capacity based arrangements.

On the immediate horizon we have 76 MW of committed projects just completed or in construction and progressing on time and budget. These include:

· the new 5 MW Sand Valley LFG Project in the United States which was successfully constructed and commissioned and started generation in October this year;

· commissioning of the 53 MW McArthur River Mine Expansion which is well advanced, with the overall Project due to start commercial operation in January  2014; and

· construction of the 18 MW Moranbah North Waste Coal Mine Gas Power Project Expansion, which commenced in October this year and is scheduled to be completed in August 2014.

These projects will contribute to the continued growth in second half earnings in FY14 and into FY15.

Beyond this financial year, EDL expects continued strong growth in its core remote and clean energy businesses through brownfield expansions, new projects and acquisitions. With a fair wind it is possible to envisage the Company achieving 1 GW of installed capacity and over $1 billion of total assets in the next 2-3 years.

For FY14, EBITDA guidance is confirmed at between $175 million and $185 million.

The FY13 result generated $131m of net operating cash flow. This enabled $93m of capital investment during the period as well as $35m used for cash returns to shareholders. With over $200m of committed funding and cash in addition to strong operating cash flow, the improving financial position and operating capacity underpins the ability to pay regular franked dividends in future years, increasing on a progressive basis.

The Company was pleased to have recommenced paying dividends and paid an 11 cent partly franked final dividend to shareholders in September this year for the 2013 financial year.

The Company remains focussed on generating strong cash flows, investing appropriately in the current asset base, supporting our customers with brownfield expansions, seeking new greenfield projects and returning capital to shareholders.

As we look forward to the first half results, it is clear that the Company will have insufficient franking credits to enable it to pay a franked interim dividend. Our current expectation is that by the end of the 2014 financial year the Company will be able to access sufficient franking credits to pay a fully franked dividend corresponding to the profits generated in the entire financial year. For that reason we will not pay an interim dividend but rather intend to pay a fully franked final dividend of at least 22 cents per share for the 2014 financial year, subject of course to continued good performance.

It will however, be possible for us to continue to return capital to shareholders in the form of the share buyback that was extended in August this years. As at the 20th November, the Company has returned $12.2 million or approximately 8 cents per share to shareholders in the current year. The share buyback will continue on an ongoing basis however it is not possible to estimate the amount of capital that will be returned to shareholders through this mechanism in the balance of the financial year.

Through the combination of the final dividend and share buyback, we expect to return at least 30 cents per share to shareholders for the 2014 financial year.

Our expectation is that we will continue to progressively increase the level of dividends paid as the cash flows of the business grow and that from the beginning of the 2015 financial year the Company will be in a position to declare and pay interim and final dividends.

As we look toward the second half and beyond, our installed capacity continues to grow and this will underpin continued earnings growth.

The McArthur River Mine and Sand Valley will make full year contributions in FY15, while we also expect the Moranbah North expansion to be in operation for the majority of that year with Commercial Operations planned for around September 2015.

We have begun FY14 in very good health. EDL has scale and diversification with market leading positions. We own and operate long-dated assets and enjoy long term relationships with high quality counterparties.

Our investment in people and processes continues to improve safety and operating performance.

Our investment in new projects continues on time and budget while our pipeline of future projects is expected to maintain the profitable growth experienced over the last three years. The combination of strong operating cash flow and established sources of funding gives the board confidence to invest for future growth, to meet our valued customers' ongoing incremental requirements for generation through tailored brownfields expansions, and to provide strong cash returns to shareholders.

We look forward to the next 25 years of delivering safe, reliable power generation to our valued customers.

I would like to acknowledge those who have contributed to the Company and made the past year such a success.

Thanks to my fellow Directors for their wise counsel during a very busy year.

I would also like to thank Greg Pritchard, our Managing Director, the executive management team and all our 400 employees for their outstanding efforts during the year.

Finally to our shareholders, thank you for being here today and for your ongoing support and confidence in the Company.

distributed by