Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2007)
28 slides from Origin Energy's shareholder meeting presentation, Oct 31, 2007
Slide 1: Annual General Meeting
Annual General Meeting 31 October 2007 1
Slide 2: Chairman's Address
Chairman’s Address 2 2
Slide 3: Performance highlights
Performance highlights • Revenue $6,456 million up 10% • EBITDAF $1,201 million up 12% • Statutory Profit $457 million up 38% • Underlying Profit $370 million up 10% • EPS – Statutory 54.7 cps up 30% • EPS – Underlying 44.3 cps up 4% • Free cash flow $595 million up 2% • Free cash flow per share 71.
Slide 4: Reconciliation of Statutory Profit and Underlying Profit (After tax)
Reconciliation of Statutory Profit and Underlying Profit (After tax) After tax NPAT 2007 Reconciliation impact ($m) ($m) Underlying Profit 370.2 Change in value of fin. instruments 29.1 Business sale – (Networks) 76.0 Termination of Mt Stuart agreement 13.7 Reduction in NZ tax rate 29.2 Sun Retail o
Slide 5: Total shareholder return
Total shareholder return Origin Energy Total Shareholder Return versus the All Ordinaries Accumulation Index 900 800 700 600 Index Level 500 400 300 200 100 0 Feb-00 Jul-00 Nov-00 Mar-01 Aug-01 Dec-01 May-02 Sep-02 Jan-03 Jun-03 Oct-03 Mar-04 Jul-04 Nov-04 Apr-05 Aug-05 Jan-06 May-06 Sep-06 Feb-07 J
Slide 6: Major investments 2006/07
Major investments 2006/07 • Sun Retail acquisition $1.2 billion • Coal seam gas development $149 million • Kupe Gas Project $97 million • Offshore Otway Gas Project $68 million • Feasibility studies on generation projects $66 million • BassGas Project completed and commissioned 6 6
Slide 7: New projects committed 2006/07
New projects committed 2006/07 • Darling Downs Power Station $780 million • Coal seam gas expansion Darling Downs $500 million Rio Tinto contract $260 million • Quarantine Power Station expansion $80 million 7 7
Slide 8: Safety performance improved by 11%
Safety performance improved by 11% • Injury frequency rates improved from 5.5 to 4.9 • Safety remains a high priority • We are seeking a further improvement this year 8 8
Slide 9: Origin is well positioned as Australia and New Zealand move towards carbon constrained economies
Origin is well positioned as Australia and New Zealand move towards becoming carbon constrained economies Power plant developments Solar • SLIVER® modules continue to be scaled up • Pilot plant in Adelaide operational • Origin is continuing to seek progress commercialisation Potential power station
Slide 10: Managing Director's Address
Managing Director’s Managing Director’s Address Address 10 10
Slide 11: Outline
Outline • Key developments this year • Key changes that will impact the future development of our industry • Factors that will influence our outlook 11 11
Slide 12: Key developments
Managing Director’s Address Key developments 12 12
Slide 13: Acquisition of Sun Retail provided significant exposure to the growing Queensland energy market
Acquisition of Sun Retail provided significant exposure to the growing Queensland energy market • Added Retail Scale − Increased customer numbers from 2.1 million to 3 million • Doubled Origin’s electricity load − Increased annual electricity sales from 16 TWh to 33 TWh • Materially increased LPG bu
Slide 14: The Network business is no longer central to Origin's integrated strategy
The Network business made an important contribution but is no longer central to Origin’s integrated strategy • Businesses sold included: 33.3% interest in the SEA Gas pipeline 17% interest in Envestra Limited Origin Energy Asset Management business Range of smaller complementary assets 14 14
Slide 15: 15
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Slide 16: Darling Downs will be the largest combined cycle power station in Australia
At 630 MW Darling Downs will be the largest combined cycle power station in Australia… … and expansion of Origin’s coal seam gas fields will provide a low cost flexible gas supply 16 16
Slide 17: BassGas Project commenced commercial production in September 2006
BassGas Project commenced commercial production in September 2006 • Origin has a 42.5% interest in the BassGas Project and is the Project Operator • Gross annual production will be approximately 20 PJ of sales gas and 1.4 million barrels of condensate and LPG • Origin is purchasing all of the sales
Slide 18: Commissioning commenced on the Otway Gas Project
Commissioning commenced on the Otway Gas Project with stable production forecast by Woodside by January 2008 • Origin has a 30.75% interest in the Otway Gas Project which is operated by Woodside • Gross annual production will be approximately 60 PJ of sales gas and 1.8 million barrels of condensate
Slide 19: Work has significantly progressed on the Kupe Gas Project
Work has significantly progressed on the Kupe Gas Project which remains on schedule for commercial gas in the first half of 2009 • Origin has a 50% interest in the Kupe Gas Project and is the Project Operator • Gross annual production will be Kupe Deck under construction approximately 20 PJ of sales
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Slide 21: Our integrated strategy helps us manage volatility in wholesale electricity and gas prices
Our integrated strategy helps us manage volatility in wholesale electricity and gas prices that arise in our industry $150 $140 Forward $130 Victorian Spot and Forward Curve Jun 07 • Wholesale electricity markets have Contract Electricity Prices experienced significant short-term $120 $110 $100 Mont
Slide 22: Key changes in our industry
Key changes in our industry 22 22
Slide 23: Origin is well placed to benefit from increasing demand for gas
Origin is well placed to benefit from increasing demand for gas • Over the last 10 years Origin has established a significant portfolio of CSG acreage in Queensland Bowen Basin CSG • Origin’s currently has extensive CSG Fairview and Spring Gully fields 2P reserves: 1,677 PJ reserves 3P reserves: 2,2
Slide 24: 24
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Slide 25: Origin is well positioned to respond to climate change
Origin is well positioned to respond to climate change • Investment in high efficiency gas-fired generation • Investment in SLIVER® technology • Voluntary carbon reduction scheme • Green Power Leader 25 25
Slide 26: Outlook
Outlook 26 26
Slide 27: In Summary
In Summary • An extraordinary year of development and change for your company • We are well placed to continue the development and growth of Origin • Safety remains a high priority • Thank you for your continued support 27 27
Slide 28: a difference. —
a difference. — 9 28