Origin Energy Limited · ASX:ORG
Origin Energy — Macquarie Australia Conference 2016
16 slides from Origin Energy's conference presentation, May 4, 2016
Slide 1: ASX announcement cover fax
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 4 May 2016 From Helen Hardy Pages 16 Subject Macquarie Australia Conference Investor Presentation Please find attached a release on the above subject. Regards Helen Hardy Company Secretary 02 8345 5
Slide 2: Origin Energy: Delivering on Commitments
For personal use only ORIGIN ENERGY DELIVERING ON COMMITMENTS Grant King, Managing Director Macquarie Australia Conference 4-6 May 2016
Slide 3: Important Notices
Important Notices For personal use only Forward looking statements This presentation contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events. Such statements are not statements of fact and there can be no cert
Slide 4: Connecting resources to markets: 2 businesses and 3 priorities
Origin’s strategy of connecting resources to markets is pursued through a clear focus on its 2 businesses and 3 priorities designed to drive continued improvement in Origin’s performance For personal use only A leader in A regionally significant energy markets position in natural gas and LNG product
Slide 5: Oil price and COP21 impacts on Origin's priorities and prospects
Since last year’s Macquarie Conference two external influences have impacted Origin’s priorities and prospects – Oil Price and COP21 For personal use only Increasing global commitment to Fall in Oil Price reduction in carbon emissions 140 Actual and Projected Global Greenhouse Gas Emissions1 120 100
Slide 6: Delivering on commitments to reduce debt and increase resilience
In responding to lower oil prices Origin is delivering on commitments to reduce debt and increase resilience, targeting net debt below $9 billion in FY2017 For personal use only Debt Reduction Cash Preservation Risk Reduction Sale of Contact, reducing Reduced capex Purchased oil put options de
Slide 7: Sale agreements in place for Mortlake and Indonesian geothermal project
Sale agreements in place for Mortlake terminal station and an Indonesian geothermal project, confidence in target of at least $800 million For personal use only • Signed agreements • Mortlake Terminal Station for A$110 million announced on 12 February 2016 • 12.9x FY2017 EBITDA multiple • ~$25 milli
Slide 8: Continued strong performance in Energy Markets
Continued strong performance in Energy Markets For personal use only Strong operational progress to date … Energy Markets Energy Markets Cash Increased Natural Gas contribution Underlying EBITDA Flow From Operating Activities Stabilised Electricity contribution 800 800 Reduced cost to serve 72
Slide 9: Halladale / Speculant development progressing to schedule
Halladale / Speculant development is progressing to schedule and will drive increased production and earnings in FY2017, utilising existing infrastructure in the Otway Basin For personal use only • Final well (Speculant 2 sidetrack) drilled • Speculant 1 and Speculant 2 flow test results as expected
Slide 10: APLNG project largely de-risked with strong operational performance
The APLNG project is now largely de-risked with strong operational performance both in upstream and downstream For personal use only Strong operational progress to date … UPSTREAM PROJECT 100% COMPLETE $1 billion of annual cost reductions implemented DOWNSTREAM PROJECT 97% COMPLETE Train 1 opera
Slide 11: Well positioned for a carbon constrained future
Origin supports measures to reduce global carbon emissions and is well positioned for a carbon constrained future through its gas and renewable portfolio For personal use only World primary energy demand and CO2 emissions Energy in a carbon constrained world Mtoe Gt • The world is facing the challen
Slide 12: Renewables more attractive as solar and wind costs fall
Renewables are more attractive than ever as utility scale solar and wind generation costs fall For personal use only 14TWh of new renewable build required1 LREC price rising and renewables cost falling2 TWh $/MWh 35 140 30 120 Solar PPA 25 100 Wind PPA 20 80 15 60 10 40 5 Existing New Build 20 0 0 F
Slide 13: LREC and generation portfolios placed to accelerate renewables
Origin’s LREC and generation portfolios are uniquely placed to accelerate development of renewables, with two utility scale solar PPAs signed to date For personal use only Origin’s Renewable Certificate (LREC) Position1 Origin’s Energy Position (FY2015) 10 40 9 35 8 Number of LREcs (millions) 30 Poo
Slide 14: Near term milestones
Near term milestones For personal use only Timing Bechtel Performance Test Completed 30 April 2016 Asset sales progress Through FY2016 and FY2017 Strength of operating performance FY2016 Results Train 1 project finance lender tests met and guarantees H1 FY2017 fall away Train 2 completion H1 FY2017
Slide 15: Important Notices
Important Notices For personal use only A reference to Australia Pacific LNG or APLNG is a reference to Australia Pacific LNG Pty Limited in which Origin holds a 37.5% shareholding. Origin’s shareholding in Australia Pacific LNG is equity accounted. A reference to $ is a reference to Australian doll
Slide 16: Thank You
For personal use only THANK YOU For more information Chau Le Group Manager, Investor Relations Email: chau.le@originenergy.com.au Office: +61 2 9375 5816 Mobile: + 61 467 799 642 www.originenergy.com.au 15