Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2021)
31 slides from Origin Energy's shareholder meeting presentation, Oct 20, 2021
Slide 1: Chairman's Address - Annual General Meeting
CHAIRMAN’S ADDRESS ANNUAL GENERAL MEETING 20 OCTOBER 2021 I would like to start by saying that it is a privilege for me to chair this Origin Annual General Meeting, albeit virtualIy. I extend a warm welcome to our shareholders and all my colleagues from Origin who are joining today. I certainly hope
Slide 2: Chairman's address: FY2021 conditions, dividend and outlook
It is no exaggeration to say that Origin has weathered very tough conditions in the 2021 financial year. The external environment, illustrated by the commodity prices that drive our financial performance, went through a period of extraordinary volatility. The oil price, from which our export LNG pri
Slide 3: Three key strategic priorities
Origin remains focused on three key strategic priorities: Firstly, maximising the value of the existing portfolio; Secondly, growing integrated customer solutions; and thirdly, accelerating renewables and cleaner energy. Frank will address the program of operational improvements that underscore the
Slide 4: Climate reporting vote and emissions targets
In August, we announced that we intend to provide shareholders with a non-binding advisory vote on the company’s climate reporting at the 2022 AGM. Origin has been an industry leader in the early adoption of Science Based Targets and transparent reporting of our decarbonisation progress. The 2022 cl
Slide 5: Beetaloo exploration carbon neutral and Native Title engagement
Our intention is for our calendar year 2021 Beetaloo exploration activity to be carbon neutral. We have purchased certified Australian carbon credit units from a nearby Aboriginal carbon farming project to facilitate the offset of greenhouse gas emissions from these activities. Origin’s exploration
Slide 6: Advocacy and industry association disclosures
We have made considerable progress in both our advocacy and disclosures in recent years. Origin publishes a comprehensive annual review of our industry associations memberships and their alignment with the Paris Agreement. Importantly, our advocacy has played a key role in major industry bodies incl
Slide 7: Volunteering and board changes
the year. I’m proud of the fact that our people volunteered more than 8,400 hours during the year, despite significant disruption, to our usual in-person volunteering activities. Also, I would like to acknowledge the dedication of my fellow directors over the past year and the support they have offe
Slide 8: CEO and Managing Director's Address
CEO AND MANAGING DIRECTOR’S ADDRESS ANNUAL GENERAL MEETING 20 OCTOBER 2021 Thanks Scott, and good morning and thank you for tuning into today’s Annual General Meeting. I would like to start by acknowledging the Traditional Owners of the land from which we are webcasting today, the Gadigal people of
Slide 9: Safety and people wellbeing
Ensuring all our people go home safely at the end of every day is always our priority. Our Total Recordable Injury Frequency Rate was stable compared to last year. We will continue to focus on ways to further improve safety performance. Another key focus for the year was the health and wellbeing of
Slide 10: Operational performance
Operational performance There were several operational highlights across Origin’s two businesses. In Integrated Gas, Australia Pacific LNG was outstanding and again demonstrated its assets are world class. Output was safely curtailed when the market was subdued, and ramped up rapidly when demand rec
Slide 11: Octopus Energy and outlook
Octopus Energy Octopus Energy, in which Origin owns a 20 per cent share, continues to impress and the company has now tripled in value to approximately £3 billion (or A$5.5 billion) since we made our initial investment in May 2020. Octopus has emerged as a global leader in energy retailing and techn
Slide 12: Pursuing strategy: maximise value and grow customer solutions
As we pursue our strategy, we are focused on maximising the value of the existing businesses through disciplined capital and cost management, progressing our retail transformation, managing our commodity price risk, continuing to drive down the cost of production at Australia Pacific LNG and unlocki
Slide 13: Coal closures and capacity mechanism
As we look ahead to the closure of more and more coal fired power stations and likely in earlier timeframes than previously earmarked due to increasingly challenging economics, we must make sure the National Electricity Market encourages investment in new firm, dispatchable capacity so we can contin
Slide 14: Annual general meeting - Scott Perkins, Chairman
Annual general meeting Scott Perkins, Chairman 20 October 2021
Slide 15: Outline
Outline 1. Review of FY2021 performance 2. Strategy and priorities 3. Decarbonisation commitments 4. Engagement with Native Title holders 5. Conclusion 2 20 October 2021 Annual General Meeting
Slide 16: Review of FY2021 performance
Review of FY2021 performance 1. Challenging year with highly volatile commodity markets 2. FY2021 financial results impacted by lower commodity prices 3. Continued strong operational performance from both businesses 4. Capital discipline and solid free cash flow 5. Total unfranked dividends of 20cps
Slide 17: Leadership in technology will drive premium customer experience at low cost
Leadership in technology will drive premium customer experience at low cost Technology enhancements New products and services Origin’s platform-based model 159 MW VPP Gamified demand Customer first, data driven proven technology developed in-house Origin 360 EV response Unique operating model Cloud-
Slide 18: Climate change: decarbonisation commitments
Climate change: decarbonisation commitments Committed to Paris Agreement Updating emissions reduction targets consistent with a 1.5°C pathway – Capital allocation process to support these more ambitious carbon commitments Support ‘Say on Climate’ and intend to put our climate reporting to a no
Slide 19: Climate change: performance highlights
Climate change: performance highlights Scope 1 and Scope 2 equity emissions reduced by 8% compared to FY2020 Remain committed to exiting coal-fired power generation by 2032 Equipment upgrades and adoption of new technologies helped lower APLNG emissions Plan to offset emissions for Beetaloo
Slide 20: Engagement with our Native Title holders in the Beetaloo
Engagement with our Native Title holders in the Beetaloo 1. Engagement with our Native Title holders and host pastoralists fundamental 2. Our engagement is guided by the principles of Free, Prior and Informed Consent (FPIC) 3. Origin has the support of the Native Title holders for where our activiti
Slide 21: Engagement with industry associations
Engagement with industry associations • Significant progress on advocacy and disclosure: Comprehensive annual report on industry association memberships and alignment to Paris Agreement Three major industry bodies have adopted more ambitious positions and support net zero by 2050 Origin advoca
Slide 22: Contributing to the community
Contributing to the community • Spent $270m with regional suppliers • Spent $10m with Indigenous businesses • Origin Energy Foundation granted $3 million to community partners • 8,400 volunteer hours by our people 9 20 October 2021 Annual General Meeting
Slide 23: Annual general meeting - Frank Calabria, CEO and Managing Director
Annual general meeting Frank Calabria, CEO and Managing Director 20 October 2021
Slide 24: Our people
Our people Stable Total Recordable Injury Frequency Rate of 2.71 COVID-19 support • pandemic leave • health and wellbeing programs Maintained 74% staff engagement – top quartile ANZ 1) Rolling 12 months at June 2021; compared to 2.6 at June 2020 11 20 October 2021 Annual General Meeting
Slide 25: FY2021 financial results impacted by lower commodity prices
FY2021 financial results impacted by lower commodity prices Statutory Profit/(Loss) Underlying Profit Underlying EBITDA $(2,291) $318 $2,048 million million (-130.2 cps) million (18.1 cps) Operating Cash Flow Adjusted Net Debt FY2021 dividends $964 $4.6 20.0cps million billion unfranked 12 20 Octobe
Slide 26: Continued strong operational performance across both businesses
Continued strong operational performance across both businesses Integrated Gas Energy Markets 94% 2P reserves replacement in FY2021 30k growth in customer accounts to 4.3 million APLNG operational flexibility, Delivered $110 million retail cost responding to changes in market savings since FY2018 de
Slide 27: 20% stake in Octopus
20% stake in Octopus, a global renewable energy, services & technology business Exponential customer growth Global reach increasing 10,000 2,500 8,000 2,000 6,000 1,500 4,000 1,000 2,000 500 - - Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Licensed Kraken customer accounts migrated Octopus Energy customer acc
Slide 28: FY2022 outlook improved as a result of higher commodity prices
FY2022 outlook improved as a result of higher commodity prices • No change to Energy Markets Underlying EBITDA guidance of $450 - $600 million • Improved outlook for APLNG with higher commodity prices and lower AUD/USD rate — August 2021 guidance based on realised oil price of US$68/bbl and AUD/USD
Slide 29: Our strategic priorities are clear
Our strategic priorities are clear Grow integrated 2 Accelerate renewables 1 customer solutions and cleaner energy 3 Maximise value through the transition 16 20 October 2021 Annual General Meeting
Slide 30: Energy market reform
Energy market reform Support customer-first approach to energy reform that maintains reliable and secure supply Support ESB recommendation for carefully designed capacity mechanism that values the availability of dispatchable plant in the market Need signal to encourage investment in new dispatchabl
Slide 31: 2021 AGM proxy summary as at proxy close
2021 AGM proxy summary as at proxy close RESOLUTION For Against Proxy’s Discretion Abstain* 2. Election of Ms Ilana Atlas 1,019,112,359 97.44% 15,880,639 1.52% 10,827,742 1.04% 5,615,314 3. Election of Mr Mick McCormack 1,035,951,981 98.78% 1,968,219 0.19% 10,821,510 1.03% 2,694,369 4. Election of M