Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2015)
57 slides from Origin Energy's shareholder meeting presentation, Oct 21, 2015
Slide 1: 2015 Annual General Meeting
2015 ANNUAL GENERAL MEETING 21 October 2015
Slide 2: Important Notices
Important Notices Summary information The material that follows is a Presentation of general background information about Origin's activities current at the date of the Presentation, 21 October 2015. It is information given in summary form and does not purport to be complete. It is not intended to b
Slide 3: Important Notices
Important Notices No offer of securities This Presentation does not constitute investment, legal, tax or other advice, or an inducement or recommendation to acquire or dispose of any securities in Origin, in any jurisdiction. Not for release or distribution in the United States of America This Prese
Slide 4: The Board: John Akehurst
The Board John Akehurst Independent Non Non-executive executive Director 4
Slide 5: The Board: Helen Nugent AO
The Board Helen Nugent AO Independent Non Non-executive executive Director 5
Slide 6: The Board: Steve Sargent
The Board Steve Sargent Non executive Director Non-executive 6
Slide 7: The Board: Maxine Brenner
The Board Maxine Brenner Independent Non Non-executive executive Director 7
Slide 8: The Board: Grant King
The Board Grant King Managing Director 8
Slide 9: The Board: Helen Hardy
The Board Helen Hardy Company Secretary 9
Slide 10: The Board: Scott Perkins
The Board Scott Perkins Independent Non Non-executive executive Director 10
Slide 11: The Board: Karen Moses
The Board Karen Moses Executive Director, Director Finance and Strategy 11
Slide 12: The Board: Bruce Morgan
The Board Bruce Morgan Independent Non Non-executive executive Director 12
Slide 13: 2015 Annual General Meeting
2015 ANNUAL GENERAL MEETING 21 October 2015 13
Slide 14: Chairman's Address
O origin CHAIRMAN’S ADDRESS
Slide 15: Until recently, share price has tracked oil
Until recently, share price has tracked oil ... 120.00 110.00 100.00 90.00 80.00 70 00 70.00 60.00 50.00 40 00 40.00 Origin S&P ASX 100 A$ Brent 15
Slide 16: Commodities downturn has affected share prices of companies across our sector
Commodities downturn has affected share prices of companies across our sector 120.00 110.00 100.00 90.00 80.00 70.00 60 00 60.00 50.00 40.00 30.00 20.00 Origin Company 1 Company 2 Company 3 Company 4 16
Slide 17: APLNG will be competitive even at very low oil prices
APLNG will be competitive even at very low oil prices1 45 US$38-42 40 35 30 US$23-25 US$/boe1 25 20 15 10 5 0 Operating breakeven Distribution breakeven (1) APLNG is expected to have an operating breakeven of US$23-25/boe and a distribution breakeven of US$38-42/boe oil on average during steady stat
Slide 18: 92% Institutional Offer Take-up
92% INSTITUTIONAL OFFER TAKE-UP TAKE UP – VOTE OF CONFIDENCE IN ORIGIN’S FUNDAMENTALS 18
Slide 19: First LNG Production by Australia Pacific LNG Now Weeks Away
FIRST LNG PRODUCTION BY AUSTRALIA PACIFIC LNG NOW WEEKS AWAY 19
Slide 20: We aspire to be a leader in solar
We aspire to be Number 1 in solar WE ASPIRE TO BE A LEADER IN SOLAR 20 20
Slide 21: Origin first energy company globally to make commitments aligned with all 7 climate initiatives
Origin first energy company globally to make commitments aligned with all 7 ‘We Mean Business Coalition’ climate change initiatives Our commitments are: Climate change reporting Responsible engagement on climate policy Adopting a science-based reduction target Pricing carbon to support abatement Bec
Slide 22: Managing Director's Address
MANAGING DIRECTOR’S ADDRESS 22
Slide 23: Origin has announced and begun to implement up to $6.9 billion of initiatives
Origin has announced and begun to implement up to $6.9 billion of initiatives to strengthen the balance sheet Realised in Target in Target in Initiatives Cumulative Total FY2015 FY2016 FY2017 Previously announced initiatives June Energy Markets – reduction in operating costs1 $35m $100m $100m $235m
Slide 24: Our Energy Markets business
Our Energy Markets business Leading market share position Flexible and diverse 6,000 MW A growing solar business with 4.3 million customer generation portfolio accounts 24
Slide 25: Energy Markets mature and stable with strong surplus cash flows
Energy Markets mature and stable with strong surplus cash flows Energy Markets Segment Operating Cash Flow less Growth Capex EBIT / Sales Margin $m 1 000 1,000 15% 800 10% 600 400 5% 200 0 0% FY2012 FY2013 FY2014 FY2015 FY2012 FY20131 FY20141 FY2015 1 (1) Adjusted for carbon impact 25
Slide 26: Flexible and diverse fuel and generation portfolio supplies 4.3 million accounts
Flexible and diverse fuel and generation portfolio supplies 4.3 million Electricity and Natural Gas customer accounts Resources Sales Th Thermal l Electricity El t i it - owned d Electricity FY2015 Renewable Electricity Electricity Gross Profit 36 TWh1 $1,289m Thermal Electricity - purchased Natural
Slide 27: We are actively promoting the benefits of solar
We are actively promoting the benefits of solar 27
Slide 28: Our Integrated Gas business
Our Integrated Gas business 37.5% interest in Australia’s largest CSG to Our Exploration & Production business LNG project with 16,174 PJe of 3P reserves1 has 1,093 PJe of 2P reserves2 across most and 8.6 mtpa of LNG contracts with China major basins and Japan 28 (1) As at 30 June 2015. Includes 6,0
Slide 29: Australia Pacific LNG Upstream is 99% complete
Australia Pacific LNG Upstream is 99% complete* 29 *As at end September 2015
Slide 30: Australia Pacific LNG Downstream is 94% complete
Australia Pacific LNG Downstream is 94% complete* 30 *As at end September 2015
Slide 31: APLNG's reserves position is more than sufficient to support domestic and LNG contracts
APLNG’s reserves position is more than sufficient to support domestic and LNG contracts 100% APLNG Reserves and Resources1,3 APLNG’s Production Capacity PJ PJ/a 25,000 800 Potential sales upside As technologies ( (~100 PJe)) 20,000 C3 improve, low 600 Domestic contracted C2 permeability finding sale
Slide 32: Conclusion
Conclusion 32 O origin
Slide 33: 2015 Annual General Meeting
2015 ANNUAL GENERAL MEETING 21 October 2015 33
Slide 34: Formal Business
O origin FORMAL BUSINESS
Slide 35: Financial Report
O origin FINANCIAL REPORT
Slide 36: 2015 Annual General Meeting
2015 ANNUAL GENERAL MEETING 21 October 2015 36
Slide 37: Resolution 2: Election of Mr Scott Perkins
RESOLUTION 2: Election of Mr Scott Perkins Independent Non-executive Director 37
Slide 38: Resolution 2: Election of Mr Scott Perkins
RESOLUTION 2: Election of Mr Scott Perkins Scott Perkins Independent Non Non-executive executive Director 38
Slide 39: Resolution 2: Election of Mr Scott Perkins
RESOLUTION 2: Election of Mr Scott Perkins Proxy votes received: For 752,166,242 (96.12%) A i t Against 17,635,006 17 635 006 (2.25%) Open 12,791,716 12 791 716 (1.63%) Abstain 3,199,717 39
Slide 40: Resolution 3: Election of Mr Steve Sargent
RESOLUTION 3: Election of Mr Steve Sargent Independent Non-executive Director 40
Slide 41: Resolution 3: Election of Mr Steve Sargent
RESOLUTION 3: Election of Mr Steve Sargent Steve Sargent Independent Non Non-executive executive Director 41
Slide 42: Resolution 3: Election of Mr Steve Sargent
RESOLUTION 3: Election of Mr Steve Sargent Proxy votes received: For 765,490,120 (97.81%) A i t Against 4,356,425 4 356 425 (0.56%) Open 12,738,057 12 738 057 (1.63%) Abstain 3,208,079 42
Slide 43: Resolution 4: Re-election of Mr John Akehurst
RESOLUTION 4: Re-election of Mr John Akehurst Independent Non-executive Director 43
Slide 44: Resolution 4: Re-election of Mr John Akehurst
RESOLUTION 4: Re-election of Mr John Akehurst John Akehurst Independent Non Non-executive executive Director 44
Slide 45: Resolution 4: Re-election of Mr John Akehurst
RESOLUTION 4: Re-election of Mr John Akehurst Proxy votes received: For 744,217,807 (95.18%) A i t Against 25,011,792 25 011 792 (3.20%) Open 12,695,458 12 695 458 (1.62%) Abstain 3,867,624 45
Slide 46: Resolution 5: Withdrawn
RESOLUTION 5: WITHDRAWN Re-election of Ms Karen Moses Executive Director, Finance & Strategy 46
Slide 47: Resolution 6: Re-election of Helen Nugent AO
RESOLUTION 6: Re-election of Helen Nugent AO Independent Non-executive Director 47
Slide 48: Resolution 6: Re-election of Helen Nugent AO
RESOLUTION 6: Re-election of Helen Nugent AO Helen Nugent AO Independent Non Non-executive executive Director 48
Slide 49: Resolution 6: Re-election of Ms Helen Nugent AO
RESOLUTION 6: Re-election of Ms Helen Nugent AO Proxy votes received: For 719,862,415 (91.96%) A i t Against 50,292,980 50 292 980 (6.42%) Open 12,702,907 12 702 907 (1.62%) Abstain 2,934,379 49
Slide 50: Resolution 7: Remuneration Report
RESOLUTION 7: Remuneration Report 50
Slide 51: Resolution 7: Remuneration Report
RESOLUTION 7: Remuneration Report Proxy votes received: For 645,644,651 (86.69%) A i t Against 86,630,564 86 630 564 (11.63%) Open 12,529,085 12 529 085 (1.68%) Abstain 40,967,770 51
Slide 52: Resolutions 8 & 9: Withdrawn
RESOLUTIONS 8 & 9: WITHDRAWN Equity grants to Managing Director Mr Grant A King & Equity grants to Executive Director Ms Karen A Moses 52
Slide 53: Resolution 10: Approval of potential termination benefits
RESOLUTION 10: Approval of potential termination benefits 53
Slide 54: Resolution 10: Approval of potential termination benefits
RESOLUTION 10: Approval of potential termination benefits Proxy votes received: For 743,848,495 (95.19%) A i t Against 25,381,549 25 381 549 (3.25%) Open 12,470,840 12 470 840 (1.60%) Abstain 3,910,018 54
Slide 55: Resolution 11: Amendment to Constitution (Non Board endorsed)
RESOLUTION 11: Amendment to Constitution (Non Board endorsed) 55
Slide 56: Resolution 11: Amendment to Constitution (Non Board endorsed)
RESOLUTION 11: Amendment to Constitution (Non Board endorsed) Proxy votes received: For 50,249,804 (6.46%) A i t Against 712,327,937 712 327 937 (91.60%) Open 15,074,967 15 074 967 (1.94%) Abstain 8,139,973 56
Slide 57: 2015 Annual General Meeting
2015 ANNUAL GENERAL MEETING 21 October 2015 57