Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2023)
27 slides from Origin Energy's shareholder meeting presentation, Oct 18, 2023
Slide 1: Chairman's Address
CHAIRMAN’S ADDRESS ANNUAL GENERAL MEETING 18 OCTOBER 2023 It is my pleasure to welcome you all to Origin’s 24th Annual General Meeting. I also extend that welcome to those joining online, as well as our Origin colleagues. This past year has been an important one in Origin’s history. We gained moment
Slide 2: The energy transition
several major renewable and transmission projects delayed, is Australia is not moving fast enough. The pace of the change is highlighting some key challenges and policy gaps. Chief among them are challenges in the delivery of transmission infrastructure, which is facing significant delays. Transmiss
Slide 3: FY2023 performance highlights
This performance and the progressive strengthening of our balance sheet over recent years, enabled us to pay shareholders total dividends of 36.5 cents per share for the year, representing 66 per cent of the company’s adjusted free cash flow. This was 26 per cent higher than the total dividends paid
Slide 4: Proposed acquisition of Origin
the exchange rate has also moved. Updated information on the consideration will be provided to shareholders ahead of a Scheme Meeting. The Board unanimously recommends that Origin shareholders vote in favour of the Scheme in the absence of a superior proposal, subject to an Independent Expert conclu
Slide 5: Conclusion
Maxine has been an exemplary Origin Director and I recommend her reappointment to you all. Conclusion I finally want to acknowledge the leadership team at Origin and our CEO, Frank Calabria and his colleagues who are seated at the front row of today’s meeting. Despite the additional challenges of th
Slide 6: CEO and Managing Director's Address
CEO AND MANAGING DIRECTOR’S ADDRESS ANNUAL GENERAL MEETING 18 OCTOBER 2023 Introduction It's certainly been another extraordinary year at Origin and in the energy sector more broadly as the awareness and urgency of Australia’s energy transition has greatly increased, bringing with it heightened focu
Slide 7: Operational performance
Operational performance Underlying EBITDA for the Energy Markets division rose by $637 million to $1,038 million as higher wholesale electricity costs in the previous periods were recovered in electricity tariffs, through optimisation of the electricity trading portfolio, and as the cost of coal sup
Slide 8: Strategy
are now expecting an uplift in the lower end of the Energy Markets Underlying EBITDA guidance range. In Integrated Gas, our forecast was for Australia Pacific LNG production to rebound and cash flow to remain strong. We now expect a further improvement in Australia Pacific LNG production towards the
Slide 9: Energy transition
government engage with Origin to delay the closure of Eraring to support reliability of energy supply. We do not shy away from the need to exit all coal-fired power generation as soon as renewable energy, storage and firming generation can replace it, as we have committed to in our climate and emiss
Slide 10: Chairman's address
Chairman’s address Scott Perkins 18 October 2023
Slide 11: Outline
Outline 1. The energy transition 2. FY2023 performance highlights 3. Community contribution 4. Proposed acquisition of Origin 5. Conclusion 2 18 October 2023 2023 Annual General Meeting
Slide 12: The energy transition is accelerating
The energy transition is accelerating • Australia’s target is for 82 per cent renewables by 2030 • The pace of change is highlighting some key challenges • Managing reliability, affordability and community acceptance are key to maintaining support for the transition • Australia has the necessary ski
Slide 13: FY2023 performance highlights
FY2023 performance highlights • Strong operational performance • 36.5 cents per share in total dividends to shareholders • Execution of Origin’s strategy gaining momentum – Accelerating investment in renewables and storage – Australia Pacific LNG operating well and delivering strong cash flow – Cont
Slide 14: Community contribution
Community contribution 1. Origin Energy Foundation contributed more than $2.1 million to community organisations 2. 7,000 volunteer hours by our people 3. Regional procurement 20% of total procurement spend 4. Launched Eraring Community Fund 5 18 October 2023 2023 Annual General Meeting
Slide 15: Proposed acquisition of Origin
Proposed acquisition of Origin 1. Background to the offer 2. Scheme Implementation Deed 3. The Board’s recommendation 4. Next steps in the process 6 18 October 2023 2023 Annual General Meeting
Slide 16: Conclusion
Conclusion • Board and management confident in Origin’s prospects • Execution of strategy gaining momentum • Origin’s customer base, portfolio of assets and team position the company well for the future 7 18 October 2023 2023 Annual General Meeting
Slide 17: CEO's address
CEO’s address Frank Calabria 18 October 2023
Slide 18: Outline
Outline 1. Another extraordinary year 2. Financial performance 3. Operational performance 4. Outlook 5. Strategy and priorities 6. Conclusion 2 18 October 2023 2023 Annual General Meeting
Slide 19: Another extraordinary year
Another extraordinary year • The energy transition is accelerating • Welcome the greater focus on addressing the challenges emerging • Origin’s ambition is to lead the energy transition through cleaner energy and customer solutions • Origin positioned to capture value from the energy transition and
Slide 20: Financial Performance
Financial Performance Statutory Profit Underlying Profit Origin ROCE1 $1,055 $747 14.2% million million Up from $1,429 million Statutory Loss in Up from $407 million in FY2022 Energy Markets’ ROCE 6.7% FY2022 Integrated Gas ROCE 20.2% Adjusted Net Debt Adjusted Free Cash Flow Final Dividend $2.9 $96
Slide 21: Operational Performance
Operational Performance Energy Markets Octopus Energy Integrated Gas Our 20% interest delivered Customer accounts grew to earnings contribution of IG Underlying EBITDA up 4% 4.52 million $240 million (in on higher export LNG prices Underlying EBITDA) Kraken migration of Growth by acquisition to UK's
Slide 22: FY2024 outlook marginally improved
FY2024 outlook marginally improved • Outlook for further growth in Energy Markets, with Underlying EBITDA $1,400- $1,700 million - an uplift in lower end of the previous guidance range • This change is due to improved operational performance and market conditions in recent months, as well as expecte
Slide 23: Our strategy and ambition
Our strategy and ambition Our purpose Getting energy right for our customers, communities and planet Our ambition To lead the energy transition through cleaner energy and customer solutions Our strategic pillars Unrivalled customer Accelerate renewable Deliver reliable energy Solutions and cleaner e
Slide 24: Executing on our strategy
Executing on our strategy To lead the energy transition through cleaner energy and customer solutions Accelerate renewable Deliver reliable energy Unrivalled customer and cleaner energy through the transition Solutions • Kraken migration complete • Construction of phase one • Record cash distributio
Slide 25: Conclusion
Conclusion • Continue to progress the potential acquisition of Origin • Origin represents a highly strategic platform, well placed to benefit from the energy transition • Origin is in a strong position with momentum in performance carrying over into FY2024 • Our focus is on continuing to execute on
Slide 26: 2023 AGM proxy summary as at proxy close
2023 AGM proxy summary as at proxy close Resolution For Against Proxy’s Discretion Abstain* 2. Re-election of Ms Maxine Brenner 959,383,804 92.52% 68,974,016 6.65% 8,576,233 0.83% 12,055,283 3. Adoption of Remuneration Report 1,025,294,620 97.86% 13,987,533 1.33% 8,491,498 0.81% 1,082,318 *Votes by
Slide 27: Thank you
Thank you 10 18 October 2023 2023 Annual General Meeting