AGL previously advised the market of its intention to improve "operational efficiency" and reinforced its target to achieve a real reduction of $200 million in its normalised operating cost base; and $100 million real reduction in sustaining capital expenditure by FY17.
The company said in its announcement that a significant portion of this these cost improvements was expected to be achieved by June 30, 2016.
AGL last month vowed to close its portfolio of coal-fired power stations by 2050, as part of its revised greenhouse gas policy.
"AGL has an important role to play in transitioning Australia's electricity generation industry to a low carbon future," managing director Andy Vesey said.
"We are already at the forefront of this change, having built approximately $2 billion of renewable generation and committed not to extend the operating life of our coal-fired power stations," he said.
In its latest market update, the company said it would additionally be targeting around $1 billion in non-strategic and under-performing asset divestments by the end of FY17
This included the sale of AGL's 50% interest in the Macarthur wind farm, expected to be completed in the first half of FY16.
The company also said it was targeting working capital reductions of around $200 million by the end of FY17 and would incur restructuring costs of around $20 million pre-tax in FY16' which would be booked as "significant teams".
Vesey said AGL had made significant strides in implementing its transformation strategy, which had revitalised the leadership team and was creating an anticipatory culture.
On a positive note, the company declared a fully-franked final dividend of 34c per share, lifting its total dividends paid for the year to 64c per share.
AGL's underlying profit for the year was up 12.1% to $630 million; revenue was up 2.2% to $10,678 million; and underlying operating cash flow before interest and tax was up $378 million to $1527 million.
"The Macquarie Generation acquisition, which completed in early September 2014, has been a major driver of the significant improvement in profit and operational cash flow, and more than offset the effect of removal of the car on tax,” he said.
AGL said it would provide formal guidance of its FY16 earnings outlook at its AGM on September 30.
