Slide 1: Strategy, Performance, and Growth: Presentation to International Investors
rigin energy Strategy, Performance, and Growth Delivering Value for Shareholders Presentation to International Investors August 200470.
Slide 2: A growing market, a growing company
End use sales of electricity, gas, and related products and services in Australia exceeds A$32 billion per annum and has been growing steadily as energy consumption increases. Australian End Use Energy Sales and Growth in GDP A GROWING MARKET GROWING MARKET Energy Sales (PJe) GDP (%) A GROWING COMPA
Slide 3: Business strategy: position in competitive segments of energy markets
Origin’s business strategy is to position in the competitive (rather than regulated) segments of the energy markets... Structure of the Australian Gas and Electricity Industry Wholesale pool Coal & oil Contestable segment = __| Origin participation Regulated segment Physical contracts Retail market
Slide 4: Origin targets top third performance on a TSR basis
Origin targets top third performance on a TSR basis... 200% - Total Shareholder Return Peer Sector Companies in] Annualised 1 March 2000 to 25 August 2004 ASX 100 TSR y Origin Energy Ltd A0% 175% + Alinta Gas * 35% Santos Ltd 22% 150% + AGL 17% a Woodside 17% ~ 2 | = 425% 4 § Oil Search 10% m § z z
Slide 5: Effective strategy implementation has resulted in strong growth in operations and profits
The effective implementation of this strategy has resulted in strong growth in the company’s operations and profits 2,500 2P Reserves (PJe} 2.5 an up 118% Customers (millions) 2,000 | EBITDA by Segment (A$, millions) 2.0 | Up 79% : : 600 fe 1,500 + 1.54 500 5 1,000 4 1.04 400 4 500 + 0.5 300 5 o 0.0
Slide 6: This growth has required significant capital expenditure
This growth has required significant capital expenditure. Acquisitions in Retail and generation have provided immediate contributions Jun00 Jun 01 Jun02 Jun03 Jun 04 ($m) ($m) ($m) ($m) ($m) Growth & Acquisitions E&P 47 56 129 179 313 Retail 1 342 78 154 46 Generation 70 46 116 93 8 Networks 15 0 15
Slide 7: Capital expenditure funded from strong cash flows
This capital expenditure has been funded from Origin’s strong cash flows... JunoO Jun0O1 Jun0O2 Jun03 Jun04 (sm) ($m) ($m)-—s ($m) —s (Sm) EBITDA 271 305 405 491 532 Non-cash items (8) (8) (17) 13 2 Change in Working Capital (20) 11 16 39 (48) Stay in business CAPEX (67) (83) (65) (94) (83) Tax/Subv
Slide 8: Conservatively geared balance sheet
..and conservatively geared balance sheet Juno0oO Jun0O1 Jun02 Jun03 Jun04 Net debt ($m) 431 727 633 732 861 Total equity ($m) 1,240 1,328 1,626 1,790 1,939 Debt / (debt + equity) (%) 26% 35% 28% 29% 31% Net interest expense ($m) (30) (32) (43) (49) (45) Net interest cover (x EBIT) 4.4 5.5 5.4 6.1 6
Slide 9: Origin has improved returns per share significantly
Origin has improved returns per share significantly over the last four years. cents per share (A$) Page 9 60 i CFPS 54533 i EPS 7 @ DPS 40 30 B4 J Ls 20 - {19 17 TT } 13 1 ay a id i 4 : - + 6 L Ful 5 00 * Final Dividend - unfranked + Total Dividend - fully franked # Total Dividend - franked to 4 cen
Slide 10: Factors influencing the profit outlook for FY05
There are a number of factors influencing the profit outlook for FY ’05... Cooper Basin production capacity will be fully restored Full year contribution from SEA Gas and Rockgas Perth Basin oil production will increase The BassGas project will start contributing to earnings Further reductions in Re
Slide 11: Growth driven largely by E&P projects already disclosed
Growth within Origin will continue to be driven largely by E&P projects already disclosed to the market... Growth capital expenditure estimates and acquisitions compared with free cash flow for FY ‘04 980 omnes EW €OA growth capex and 400 | Z acquisitions totalling 50 a FY 2008 free | $422 million f
Slide 12: Major projects in the capital expenditure program
Major projects in this capital expenditure program include the following... | Coal Seam Gas - @ Carnarvon Basin Perth Basin Oil (50%) + 3 oil discoveries (1st in basin since 1966) producing 3,000 bopd net, + 2004 target 5,000 bopd net CSG Projects (24% to 94%) + Current production 9 PJ/a net + Contr
Slide 13: Long term goal of EPS growth of 10-15% pa
Origin maintains the long term goal of achieving EPS growth of 10-15% pa through sound strategy, effective acquisitions and internally generated growth 1000 900 4 « The combined growth across Origin’s E 800 4 existing businesses remains strong = | + The acquisition of Contact provides a 2 500 | step
Slide 14: Strategy, Performance, and Growth: Presentation to International Investors
rigin energy Strategy, Performance, and Growth Delivering Value for Shareholders Presentation to International Investors August 200470.