Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2004)
47 slides from Origin Energy's shareholder meeting presentation, Oct 20, 2004
Slide 1: Annual General Meeting 20 October 2004
Annual General Meeting 20 October 2004 1
Slide 2: Roland Williams, Non-executive Director
Roland Williams Non-executive Director Page 2 2
Slide 3: Bruce Beeren, Executive Director, Commercial
Bruce Beeren Executive Director, Commercial Page 3 3
Slide 4: Grant King, Managing Director
Grant King Managing Director Page 4 4
Slide 5: Helen Nugent, Non-executive Director
Helen Nugent Non-executive Director Page 5 5
Slide 6: Colin Carter, Non-executive Director
Colin Carter Non-executive Director Page 6 6
Slide 7: Trevor Bourne, Non-executive Director
Trevor Bourne Non-executive Director Page 7 7
Slide 8: Bill Hundy, Company Secretary
Bill Hundy Company Secretary Page 8 8
Slide 9: Origin Energy
Origin energy
Slide 10: Financial Statements
Financial Statements 10
Slide 11: Chairman's Address
Origin energy Chairman’s Address - a
Slide 12: Origin share price has outperformed the ASX 100 since March 2000
Since March 2000, Origin’s share price has increased approx. 500% and has significantly outperformed the ASX 100 Origin Energy Share Price vs ASX 100 Index 7.00 700 Normalised ASX 100 Index (1 Mar 2000 = 100) • Revenues up 24% per annum to $3.56 billion 6.00 600 • Profit after tax up 29% Origin Ener
Slide 13: Acquired controlling interest in Contact Energy
Acquired controlling interest in Contact Energy Page 13 13
Slide 14: Growth projects requiring capital expenditure of around $1 billion
Origin’s growth projects requiring capital expenditure of around $1 billion are being developed Growth capital expenditure estimates and acquisitions compared with free cash flow for FY ‘04 450 • Major Exploration and Estimated Annual Expenditure (A$ million) 400 FY 2004 free Production projects 350
Slide 15: Corporate Governance
Corporate Governance • Compliance with ASX Corporate Governance Council Best Practice Recommendations • Enhanced Remuneration Policy Disclosure • Board Performance Reviews • Sustainability Page 15 15
Slide 16: Origin released its second sustainability report in 2004
Origin released its second sustainability report in 2004 • Lost Time Injury Frequency Rate improved 10% • Investment in reducing greenhouse gas intensity Page 16 16
Slide 17: Chairman's Address
Origin energy Chairman’s Address - a
Slide 18: Origin Energy
Origin energy
Slide 19: Managing Director's Address
Managing Director’s Address 19
Slide 20: Major projects in Origin's capital expenditure program
Major projects in Origin’s capital expenditure program include the following…. Perth Basin oil (50%) CSG projects (24% to 97%) •3 oil discoveries (1st in • Current production 9 PJ/a basin since 1966) producing • 3 major contracts signed Coal seam gas (CSG) 3,000 bopd net over last 2 years •Productio
Slide 21: Contact Energy is an integrated energy producer and retailer
Contact Energy is an integrated energy producer and retailer… …generating over 25% of New Zealand’s electricity and supplying around 600,000 gas and electricity customers Page 21 Source: Contact Energy presentations and Half Year Report for Period to 31 March 2004 21
Slide 22: The price of oil has risen dramatically in recent months
The price of oil has risen dramatically in recent months despite declining contract forward curves Historical Tapis oil price and selected forward curves 80 • Origin is not highly leveraged to the oil 70 market • Crude oil and condensate Tapis oil price (AUD per bbl) 60 make up only 7% of 50 Origin’
Slide 23: Customer churn continues to increase
Customer churn continues to increase…….. Mass Market Churn: Completed & Pending 25% Vic Elec Origin Natural Electricity Vic Gas Customer Gas % Churn: Monthly data annualised 20% SA Elec Numbers NSW Elec (‘000) NSW Gas Jun ‘03 967 851 15% Jun ‘04 967 887 10% Net change +36 . 5% Sources: Graph: Variou
Slide 24: Origin Energy
Origin energy
Slide 25: Financial Statements
Financial Statements 25
Slide 26: Item 2: Election of Directors
Item 2: Election of Directors 26
Slide 27: J Roland Williams
J Roland Williams Page 27 27
Slide 28: Election of Directors – J Roland Williams proxy votes
Item 2: Election of Directors – J Roland Williams Proxy votes received For 289,449,125 Against 854,857 Open 35,652,118 Abstain 878,599 % of proxies which will be voted in favour* of the resolution on a poll 99.02% * Includes For proxies and Open proxies in favour Page 28 of the Chairman, Directors a
Slide 29: Origin Energy
Origin energy
Slide 30: Trevor Bourne
Trevor Bourne Page 30 Origin energy 30
Slide 31: Election of Directors – Trevor Bourne proxy votes
Item 2: Election of Directors – Trevor Bourne Proxy votes received For 289,593,300 Against 615,463 Open 35,708,303 Abstain 917,633 % of proxies which will be voted in favour* of the resolution on a poll 99.09% * Includes For proxies and Open proxies in favour Page 31 of the Chairman, Directors and S
Slide 32: Origin Energy
Origin energy
Slide 33: Resolution 3: Grant of Options to Grant A King
Resolution 3: Grant of Options to Grant A King 33
Slide 34: Purpose of Option Plan
Purpose of Option Plan • The Senior Executive Option Plan was originally approved by Shareholders on 13 November 1995 • Purposes of the Plan are to: – Attract, motivate and retain quality Senior Executives – Create incentive that is linked to shareholder wealth – Provide reward for past performance
Slide 35: The Options Conditions
The Options Conditions • The number of options issued to be dependent upon performance. • Exercise price to be the volume weighted average market price of the 5 days trading before Board approval. • 50% tranche to be issued in August 2005 and the balance in August 2006. • Options exercisable between
Slide 36: Options - Performance Hurdles
Options - Performance Hurdles • 50% of options are exercisable if Origin Total Shareholder Returns (TSR) exceed the 50th percentile of the Reference Group of Companies • The percentage of options that are exercisable increases proportionately from the 50th percentile to 75th percentile • 100% of opt
Slide 37: Reference Group
Reference Group BHP Billiton Sky City Entertainment Coles Myer CC Amatil Fosters Group BlueScope Steel Newcrest Mining Orica Air New Zealand Telstra Ansell Amcor One Steel Woodside Petroleum Mayne Group Rio Tinto Lion Nathan Soul Pattinson Southcorp Billabong Qantas Toll Holdings Westfield Group Lei
Slide 38: Origin Energy
Origin energy
Slide 39: Resolution 3: Grant of options to Mr Grant A King
Resolution 3: Grant of options to Mr Grant A King “That the grant to Managing Director, Mr Grant A King of options to subscribe for up to one million (1,000,000) fully paid ordinary shares in the company over two years, at an exercise price equal to the Origin Energy market price and otherwise on th
Slide 40: Resolution 3 proxy votes received
Resolution 3: Grant of options to Mr Grant A King Proxy votes received For 270,427,488 Against 19,782,198 Open 30,133,136 Abstain 1,660,580 % of proxies which will be voted in favour* of the resolution on a poll 93.19% * Includes For proxies and valid Open proxies in favour of the Chairman, non-inte
Slide 41: Origin Energy
Origin energy
Slide 42: Resolution 4: Increase in Non-Executive Directors' Fees
Resolution 4: Increase in Non-Executive Directors’ Fees 42
Slide 43: Non-Executive Directors' Fees
Non-Executive Directors’ Fees •Positioned in the 75th percentile of companies: – Market capitalisation $2 - $5 billion – Turnover $2 – $5 billion – Total Assets $2.5 – $5 billion – Operating Profit $200 – $500 million Page 43 43
Slide 44: Non-Executive Directors' Fees
Non-Executive Directors’ Fees Year Ending 30 June 2004 2005 Board Fees Chairman $233,333 $340,000 (1) Member $93,333 $105,000 Committee Fees Audit Chairman $26,666 $40,000 Member $13,333 $20,000 Remuneration Chairman $13,333 $13,333 Member $6,666 $6,666 Health, Safety & Environment Chairman $0 $13,3
Slide 45: Resolution 4: Increase in Non-Executive Directors' Fees
Resolution 4: Increase in Non-Executive Directors’ Fees “That the maximum sum of fees payable to the non- executive Directors of the company be increased by $450,000 to $1,400,000 per annum.” Page 45 45
Slide 46: Resolution 4 proxy votes received
Resolution 4: Increase in Non-Executive Directors’ Fees Proxy votes received For 267,539,421 Against 21,824,626 Open 30,109,931 Abstain 2,213,093 % of proxies which will be voted in favour* of the resolution on a poll 92.53% * Includes For proxies and valid Open proxies in favour of the Chairman and
Slide 47: Origin Energy
Origin energy