Origin Energy Limited · ASX:ORG
Origin Energy — UBS Utilities Conference 2005
14 slides from Origin Energy's conference presentation, November 2005
Slide 1: UBS Utilities Conference
UBS Utilities Conference November 2005 1
Slide 2: Origin's financial objectives and business strategies
Origin’s financial objectives and business strategies were established to respond to changes in the energy industry in the mid 90’s…. • Financial Objective – Steady and predictable cashflows – EPS growth of 10-15% pa on average • Business Strategy – Positioned in the competitive (rather than regulat
Slide 3: Developing options for growth: Eastern Australian gas demand
Within this strategic positioning Origin has sought to continually develop options for growth…….. Eastern Australian gas demand Origin Energy estimates 2005 900 E a s te r n A u s tr a lia n g a s d e m a n d (P J ) 800 700 600 500 400 300 200 100 0 2002 2004 2006 2008 2010 2012 2014 Year ending Jun
Slide 4: Strategy patiently implemented over the last ten years
This strategy has been patiently implemented over the last ten years…….. 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Building Retail capabilities Spin off of regulated assets => Envestra Energy 21 acquisition (gas retail) Powercor acquisition (electricity retail) CitiPower acquisition (electri
Slide 5: In E&P Origin focussed on finding gas close to markets
In E&P Origin focussed on finding gas close to markets….. 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Building Exploration and Production capabilities <= Legacy position in Cooper, onshore Otway, Bass, Perth, Surat and Bowen Basins Peat CSG acquisition……Australia’s first long term CSG contract
Slide 6: Building generation capabilities in cogeneration and peaking plants
……while in generation Origin has steadily built capabilities in development of cogeneration and peaking plants…. 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Building generation capabilities Investment in small cogeneration facilities Commissioning of Osborne Cogeneration facility - Australia’s
Slide 7: Origin's strategies provide a framework for decision making
Origin’s strategies and knowledge of the industry provides an important framework for decision making Industry Issues Origin Positioning Cost of Capital Competitive advantage in regulated infrastructure was low cost of capital. Envestra spun off with high gearing / secure cash flows. Proceeds invest
Slide 8: Implementation has grown the company's operations and profits
Implementation of Origin’s financial objectives and business strategy has grown the company’s operations and profits 2,500 3.0 2P Reserves Customers EBITDA by business type 2,000 (PJe) 2.5 (millions) (A$, millions) 2.0 1000 1,500 900 1.5 1,000 800 1.0 700 500 600 0.5 500 0 0.0 400 Jun Jun Jun Jun- J
Slide 9: Significant appreciation in Origin's share price and market capitalisation
This has led to a significant appreciation in Origin’s share price and market capitalisation………… Origin Energy Share Price and S&P ASX 100 Index (1 March 2000 to 9 November 2005) $8.00 8.0 • Market Capitalisation: ASX100 Index Normalised (1 March 2000 = 1.0) $7.00 7.0 increased from $0.6 billion in
Slide 10: Project development as the main driver for growth
Looking forward Origin continues to concentrate on project development as the main driver for growth……. Major Projects not yet contributing significantly to Origin’s results Projects approved/under Spring Gully power project CCGT construction Yet to receive investment approval Spring Gully coal seam
Slide 11: Spring Gully production commenced and will ramp up
Production from Spring Gully has commenced and the project will ramp up over the next two years… Spring Gully Coal Seam Gas (Origin 97% - Operator) • Project delivered on time and on budget • First gas delivered June 05: will ramp up over 2 years to help service AGL contract (150 PJ over 15 years);
Slide 12: Power generation development options in Australia and New Zealand
Origin is progressing a number of power generation development options in Australia and New Zealand…… Proposed Spring Gully Power Station • Environmental Impact Statement released for public comment on 9 November • Proposal to construct a high efficiency gas fired power station of around 1000MW (lik
Slide 13: Origin's fundamental strategies and objectives remain unchanged
Origin’s fundamental strategies and objectives remain unchanged. • Financial Objective – Steady and predictable cashflows – EPS growth of 10-15% pa on average • Business Strategy – Positioned in the competitive (rather than regulated) segments of the Australian energy industry – Integrated across th
Slide 14: UBS Utilities Conference
UBS Utilities Conference November 2005 14