Origin Energy Limited · ASX:ORG
Origin Energy — Macquarie Connections Australia Conference 2010
18 slides from Origin Energy's conference presentation, May 5, 2010
Slide 1: ASX announcement cover note for presentation
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 5 May 2010 From Bill Hundy Pages 18 Subject PRESENTATION Attached for your information is a presentation being made at the Macquarie Connections Australia Conference in Sydney by Grant King, Managin
Slide 2: Origin Energy: A Changing World
Macquarie Connections Australia Conference 5 May 2010 - Sydney For personal use only Celebrating a decade of growth Origin Energy A Changing World
Slide 3: Important Notice
Important Notice This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose of any securities in Origin, in any jurisdiction (including the USA). This presentation is for information purposes only, is in a summary form, and does not purport to b
Slide 4: Last year's conference: strong strategic position and carbon policy response
At this conference last year, we talked about Origin’s strong strategic position backed by a robust balance sheet and positioning in response to emerging carbon policy For personal use only Origin is in a strong strategic position with many opportunities to continue to develop and grow the business…
Slide 5: Origin's Balance Sheet
Origin’s Balance Sheet For personal use only
Slide 6: Origin deployed $2.7 billion of balance sheet capacity over the last year
Over the last year, Origin has deployed $2.7 billion of balance sheet capacity to grow and develop the business… Change in Origin’s Available Funding Capacity For personal use only $b • Major growth projects include the Darling 7 Downs and Mortlake power stations, Cullerin Range Wind Farm, Kupe Gas
Slide 7: Support for $2.6 billion of new bank debt facilities
The strength of Origin’s business and financial profile was evidenced by the solid support from domestic and international debt markets for the recent execution of $2.6 billion of new bank debt facilities For personal use only $m Origin Debt & Bank Guarantee Maturity Profile • $2.6 billion of new ba
Slide 8: Net debt of $1.5 billion and gearing of 11%
Origin’s consolidated net debt position at December 2009 was $1.5 billion, representing a gearing ratio of 11%… 8 47% 7 Net Debtonly 7 35% 41% Consolidated Net Debt ($b) Net Debt/(Net Debt + Equity) 6 ($b) 6 35% 5 Net Debt Consolidateduse 5 29% 30% Gearing Level 4 4 24% Series4 3 3 18% For personal
Slide 9: Policy Environment
For personal use only Policy Environment
Slide 10: Dual pathway policy response to climate change
The Federal Government’s policy response to climate change had been following a dual pathway of a mandated Renewable Energy Target combined with a Carbon Pollution Reduction Scheme For personal use only Mt/C02e Australian Electricity Sector Emissions • In the absence of carbon policy, emissions 280
Slide 11: Renewable Energy Target to drive significant renewable investment
The Renewable Energy Target will drive significant investment in renewable energy and the research and development of new renewable generation technology… For personal use only • Origin’s modelling suggests over 6,000 MW of new wind capacity to be built by 2020 to Represents mandated 2020 meet the R
Slide 12: Energy efficiency focus following delay to the CPRS
With a delay to the CPRS, the Federal Government has indicated that it will focus on energy efficiency as a means of reducing carbon emissions… For personal use only Assumed ESOO Energy & Demand Projections Household Appliance Penetration 2002-2008 (% per million people) 100% 12% 2002 2005 2008 Cumu
Slide 13: Direct action may be needed to retire coal fired generation
Without a direct price on carbon, direct action may be needed to provide an incentive for coal fired generation to be retired… • In the absence of a carbon signal, coal fired generation remains For personal use only the cheapest form of base load generation and existing coal fired capacity is unlike
Slide 14: Proposed 40% tax on resources projects
The Federal Government’s proposed new 40% tax on resources projects will have a significant negative impact upon the value of projects… • Despite its name, the Resource Super Profits Tax (RSPT) is a tax on normal profits rather than a For personal use only “super profits” tax • RSPT does not have a
Slide 15: Diversified earnings base and limited RSPT exposure
Origin has a diversified earnings base with the Exploration & Production business representing less than a quarter of current earnings, much of which is not impacted by the RSPT Approximate Gas & Liquids Production FY11 For personal use only Covered by Impacted existing tax FY2009 EBITDA Approximate
Slide 16: Retail energy prices likely to increase
Retail energy prices are likely to increase, driven by current Government policy settings and increasing transmission and distribution network costs… For personal use only • Energy costs are increasing regardless of a carbon signal as international demand for coal and gas grows • The proposed RSPT w
Slide 17: In Summary
In Summary • Origin is in a strong financial position and well placed to fund future growth For personal use only • To the extent that uncertainty exists as to the impact of carbon policies on investment, Origin has a range of investment opportunities available to it that are considered appropriate
Slide 18: Further Information
For personal use only Further Information Angus Guthrie Group Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61 2 8345 5558 Mobile: + 61 417 864 255 Website www.originenergy.com.au
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