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## Review and Results of Operations 

The consolidated profit after income tax attributable to shareholders was $558.7 million (2009/2010 $356.1 million). The Underlying Profit was $431.1 million (2009/2010 $428.9 million). A review of the operations and of the results of those operations of the consolidated entity during the financial year are contained on pages 24 to 31 of this Annual Report. 

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1 Underlying Profit has been prepared with reference to the guidance issued by the Australian Institute of Company Directors and the Financial Services Institute of Australasia. AGL’s policy for reporting Underlying Profit is consistent with this guidance and the Directors have had the presentation of AGL’s Underlying Profit in accordance with this policy independently assessed. 

## Changes in State of Affairs 

In the opinion of the Directors there were no significant changes in the state of affairs of the AGL consolidated entity that occurred during the financial year other than those included in the front section of this Annual Report. 

## Principal Activities 

> Buying and selling of gas and electricity; 

> Construction and/or operation of power generation and energy processing infrastructure; 

> Development of natural gas production facilities; and 

> Exploration, extraction, production and sale of coal seam gas (CSG). 

## Dividends 

The following dividends have been paid or declared by the Directors since 30 June 2010: 

Final dividend of 30.0 cents per share (unfranked) referred to in the previous Directors’ Report and paid on 30 September 2010 

$135.3 million 

Interim dividend of 29.0 cents per share (unfranked) paid on 14 April 2011 

$133.1 million 

Final dividend of 31.0 cents per share (100% franked) payable on 29 September 2011 

$143.0 million 

## Events Subsequent to Balance Date 

Apart from matters discussed elsewhere in this Annual Report, the Directors are not aware of any other matter or circumstance which has arisen since 30 June 2011 that has significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in the future. 

## Likely Developments, Strategies and Prospects 

Further information about likely developments in the operations of AGL and its consolidated entity and the expected results of those operations in the future has not been included in this Annual Report because disclosure of the information would be likely to result in unreasonable prejudice to the consolidated entity. 

## Environmental Regulation 

AGL businesses are subject to a range of environmental laws, regulations and policies as well as project and site–specific environmental permits and approvals issued at both Federal and State Government levels. Table 1 on pages 46 and 47  sets out environmental issues and non–compliances against these requirements that occurred during the reporting period. 

