Origin Energy Limited · ASX:ORG
Origin Energy — Macquarie Australia Conference 2012
18 slides from Origin Energy's conference presentation, May 2, 2012
Slide 1: ASX fax cover: presentation lodgement
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 2 May 2012 From Helen Hardy Pages 18 Subject PRESENTATION Attached for your information is a presentation being made at the Macquarie Australia Conference by Mr Grant King, Managing Director. A copy
Slide 2: Origin Energy - Macquarie Australia Conference: Flexibility to Respond
For personal use only Origin Energy Macquarie Australia Conference, 2 - 4 May 2012 Grant King, Managing Director “Flexibility to Respond”
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: An investment in Origin provides a stake in a company with a proven track record
An investment in Origin today provides a stake in a company with a proven track record of delivering value … For personal use only The largest fuel integrated generation retail business in Australia and New Zealand • Large and diversified portfolio of physical and contracted fuel supply • Largest an
Slide 5: Origin has added value by successfully investing capital delivering growth in cash flows
Origin has added value by successfully investing capital that has delivered commensurate growth in cash flows and earnings Productive Capital Free Cash Flow For personal use only 14,000 1,400 CAGR 18%1 CAGR 26%1 12,000 1,200 10,000 1,000 $ million $ million 8,000 800 6,000 600 4,000 400 2,000 200 0
Slide 6: Origin will continue to invest and expects to double productive capital over five years
Origin will continue to invest in growing its business and expects to double productive capital over the next five years … For personal use only APLNG Train 2 APLNG Train 1 Potential gas sales to other LNG projects Start of APLNG gas sales to QCLNG Te Mihi geothermal project Cash flow Legacy fuel up
Slide 7: Origin continues to build value through strong and predictable cash flows and earnings
Origin continues to build value through a business with strong and predictable cash flows and earnings … For personal use only Strong and predictable earnings from the existing business • Extensive fuel position in physical and contracted resources • Large, flexible and diverse generation portfolio
Slide 8: Recent events with a material impact on the business
In the last few months, there have been a number of events that will have a material impact on the business in the short, medium and longer term For personal use only Strong and predictable earnings from the existing business • Comfortable with current analyst consensus for FY2012 earnings Growth in
Slide 9: Recent draft electricity tariff determinations and energy pricing components
Recent draft electricity tariff determinations capture the key structural components of energy pricing … For personal use only • NSW and Queensland draft tariff determinations Average annual NEM pool prices adequately allow for the pass through of network and Origin’s energy procurement costs mitiga
Slide 10: APLNG is on schedule and budget to deliver first gas in 2015
APLNG is on schedule and budget to deliver first gas in 2015 … For personal use only • FID 1 in July 2011; FID 2 expected by mid-2012 • Marketing agreements in place to underpin two trains – Sinopec (7.6 mtpa)1 – Kansai (1.0 mtpa)2 • Sinopec to increase equity holding in APLNG to 25%3 January 2012 •
Slide 11: Legacy fuel contracts will drive earnings growth as wholesale energy prices rise
Legacy fuel contracts set at previously low domestic prices will drive growth in earnings as wholesale energy prices rise For personal use only Australian Domestic Gas Prices PJ/a Origin Sources and Uses of Fuel 12.00 Australian domestic gas 300 10.00 prices expected to increase 8.00 towards export
Slide 12: Announced gas sale with GLNG is linked to international oil pricing
The announced gas sale with GLNG is linked to international oil pricing … For personal use only • Heads of Agreement for gas supply signed on 1 May 2012 • Monetises Origin’s domestic fuel portfolio at international oil-linked pricing • 365 PJ, or 100 TJ per day, over 10 years at Wallumbilla, commenc
Slide 13: Origin signed its largest ever wind power purchase agreement
Origin signed its largest ever wind power purchase agreement … For personal use only • Power purchase agreement for renewable energy from TrustPower’s planned Snowtown II Wind Farm signed on 1 May 2012 • Offtake for 100% output and Renewable Energy Certificates from Snowtown II, expected to commence
Slide 14: Australian energy demand forecasts for 2020 have declined significantly
Australian energy demand forecasts for 2020 have declined significantly over recent years … AEMO – NEM Energy Demand Forecasts (1) For personal use only CHART TO BE MODIFIED 5% reduction in AEMO 2011/12 forecast Forecasts as at March 2012 … creating pressure on recovery of fixed and regulated costs
Slide 15: Renewable Energy Target is not adjusted to reflect actual energy demand
Australia’s Renewable Energy Target is not adjusted to reflect actual demand for energy, resulting in higher costs for consumers For personal use only Energy from Renewables in 20202 TWh • In 2009 the Australian Government set a 70 An actual 20% Renewable Energy Target (RET) for 20% of renewable tar
Slide 16: Rationalisation of carbon reduction policy would help mitigate cost pressures
Rationalisation of carbon reduction policy in Australia would help mitigate cost pressures for households and businesses For personal use only • Unaligned and multifaceted carbon reduction policy results in: – Sub-optimal long term investment decisions – Increased costs for consumers • Policy consol
Slide 17: Future energy opportunities across expanding and diversified portfolio
Origin has recently announced several future energy opportunities across its expanding and diversified portfolio For personal use only GAS GEOTHERMAL HYDRO WIND SOLAR • Domestic and • Habanero-4 • Evaluation of a • Progressing 300- • Currently international gas geothermal hydro-electric 500 MW Stock
Slide 18: Thank you - Further Information
For personal use only Thank you Further Information Kylie Springall Group Manager, Investor Relations Email: kylie.springall@originenergy.com.au Office: +61 2 8345 5288 Mobile: + 61 400 477 393 Website www.originenergy.com.au 17 |