Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2013)
70 slides from Origin Energy's shareholder meeting presentation, Oct 23, 2013
Slide 1: 2013 Annual General Meeting
2013 Annual General Meeting 23 October 2013
Slide 2: Important Notice
Important p Notice Forward looking statements This presentation contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events events. Such statements are not statements of fact and there can be no certainty of outco
Slide 3: The Board - Ralph J Norris
The Board Ralph J Norris KNZM I d Independent d tN Non-executive ti DiDirector t 3|
Slide 4: The Board - Karen A Moses
The Board Karen A Moses E Executive ti DiDirector, t Fi Finance and d St Strategy t 4|
Slide 5: The Board - Bruce G Beeren
The Board Bruce G Beeren N Non-executive ti Director Di t 5|
Slide 6: The Board - Bruce Morgan
The Board Bruce Morgan I d Independent d tN Non-executive ti DiDirector t 6|
Slide 7: The Board - Grant A King
The Board Grant A King M Managing i Di Director t 7|
Slide 8: Company Secretary
Company Secretary Andrew C Clarke G Group General G l Counsel C l and dCCompany Secretary 8|
Slide 9: The Board - Gordon M Cairns
The Board Gordon M Cairns I d Independent d tN Non-executive ti DiDirector t 9|
Slide 10: The Board - Helen M Nugent
The Board Helen M Nugent AO I d Independent d tN Non-executive ti DiDirector t 10 |
Slide 11: The Board - John H Akehurst
The Board John H Akehurst I d Independent d tN Non-executive ti DiDirector t 11 |
Slide 12: 2013 Annual General Meeting
2013 Annual General Meeting 23 October 2013 12 |
Slide 13: Chairman's Address
O origin Chairman’s Address 13 |
Slide 14: Outline
Outline 1. Overview - 2013 financial year 2. Policy environment 3. Reflecting on Origin Origin’ss growth 4. Board and management 5. Conclusion 14 |
Slide 15: 1. Overview – 2013 financial year
1. Overview – 2013 financial year 15 |
Slide 16: 2013 financial results
2013 financial results ($ million) June 13 June 12 Change Statutory Profit 378 980 (61%) Statutory EPS 34.6 cps 90.6 cps (62%) Revenue 14,619 12,935 13% Underlying Profit* 760 893 (15%) Underlying EPS* 69.5 cps 82.6 cps (16%) Group OCAT OCAT* 1 142 1,142 1 781 1,781 (36%) Free cash flow* 1,188 1,415
Slide 17: Origin entered into a new $7.4 billion bank loan facility
Origin entered into a new $7.4 billion bank loan facility to refinance all existing unsecured bank debt on new terms and pricing and extend its debt maturity profile … Origin Debt & Bank Guarantee Pro-forma Maturity Profile as at 30 September 2013^ Recent financing activity: 4,500 4,000 Loan & Bank
Slide 18: Improved disclosure on social and environmental challenges
Social changes and environmental challenges in our sector require improved disclosure ... ... Origin’s Sustainability Report demonstrates greater focus 18 | and transparency on this critical aspect of our business
Slide 19: Public debate about coal seam gas clouded by misinformation
Public debate about coal seam gas has been clouded by misinformation ... 19 | ... and Origin continues to take a leadership position on CSG
Slide 20: Fair representation and treatment of women across the workforce
Origin is focused on fair representation and equitable treatment of women through all levels of our workforce ... 27% WOMEN IN 40% WOMEN IN THE PROFESSIONAL AND WORKPLACE MANAGEMENT ROLES 22% WOMEN ON THE BOARD 11% WOMEN IN 90% WOMEN STILL IN ROLES 1 EXECUTIVE YEAR AFTER MATERNITY MANAGEMENT TEAM LE
Slide 21: 2. Policy environment
O origin 2. Policy environment 21|
Slide 22: Australia must develop a comprehensive policy framework
Australia must develop a comprehensive policy framework ... ... which will allow the nation to capitalise on its resources 22 | position and capture growing market opportunities
Slide 23: Benefits through natural gas development
Australia has the potential to create significant benefits through natural gas development ... ... however, policy must promote investment in exploration 23 | and supply to meet demand
Slide 24: Appropriate climate change policy settings
Australia needs the appropriate climate change policy settings... settings ...without locking the nation into considerably higher future 24 | electricity costs
Slide 25: Energy price deregulation promotes competition
Origin has long advocated for energy price deregulation as it promotes competition competition, investment and innovation ... ... which is in the long-term interest of both consumers and 25 | the broader energy market
Slide 26: 3. Reflecting on Origin's growth
3. Reflecting on Origin’s growth 26 |
Slide 27: Origin built the leading Australian integrated energy company since 2000
Since demerger from Boral in 2000, Origin has built the leading Australian integrated energy company ... The largest Joint developer Growing integrated of Australia resource energy business Pacific LNG’s opportunities in Australia and t two ttrain i CSG to t d domestically ti ll New Zealand LNG proj
Slide 28: Development and growth captured in Annual Reports
The development and growth of the Company ... ... has been captured in our Annual Reports since Origin’s 28 | demerger from Boral
Slide 29: Board and management united in vision
Throughout Origin’s history, the Board and management team have been united in our vision for the Company... Company ...which has become one of the hallmarks of Origin’s success 29 |
Slide 30: First CSG exploration well drilled in 1993
Origin drilled its first CSG exploration well in 1993 ... ... and began acquiring major CSG assets in Queensland in 30 | 1996/97
Slide 31: 4. Board and management
O origin 4. Board and management 31]
Slide 32: 5. Conclusion
O origin 5. Conclusion 32]
Slide 33: Board and management addressing relevant issues
During the past year, Board and management worked to ensure the relevant issues in Origin are being addressed ... ... and your Company is well-placed to continue to deliver 33 |increasing value for shareholders
Slide 34: Chairman's Address
34 | Chairman’s Address O origin
Slide 35: Managing Director's Address
Managing Director’s Address 35 |
Slide 36: Outline
Outline 1. Safety 2. Underlying business performance 3. Trading update and future prospects 4. Conclusion 36 |
Slide 37: Safety performance improved by 15%
Safety performance improved by 15% … TRIFR1 Employee / Contractor hours All 10.0 10 0 3500000 hours 9.0 3000000 8.0 6.7 7.0 2500000 60 6.0 2000000 5.0 1500000 4.0 3.0 1000000 20 2.0 500000 1.0 0 0.0 pr-12 pr-13 un-12 ug-12 Occt-12 ec-12 eb-13 un-13 ug-13 Ap Ap De Au Au Ju Ju Fe 11 Life Saving Rules
Slide 38: 2. Underlying business performance
2. Underlying business performance 38 |
Slide 39: Four key priorities
Origin continues to focus on four key priorities Improving the performance of our existing businesses • Removal of controls on retail pricing reduces risk and improves earnings potential • Stabilising competitive environment reduces churn and improves longer term outlook for margin • Implementation
Slide 40: Underlying Profit of $760m, a 15% reduction
Underlying Profit1 of $760m was a 15% reduction on the prior year … Underlying Profit2 1,000 CAGR 19%3 900 800 700 600 $ million 500 400 300 200 100 0 Financial Year … however this is the second highest Underlying Profit reported t d iin O Origin’s i i ’ hi history t (1) Underlying profit is a non-I
Slide 41: Energy market highly competitive with increased churn
Energy market remained highly competitive with increased churn and discounting … 20 Customer Accounts ('0000) - 7 -23 -20 -40 -48 -60 -80 -100 -112 -120 H1 H2 H1 H2 FY2012 FY2012 FY2013 FY2013 … Origin achieved a considerable improvement in customer acquisition and retention, with this trend continu
Slide 42: New retail systems nearing completion
Investment in new retail systems nearing completion, with all mass market customers now migrated1 … … allowingg deliveryy of new p products and services to help p build better, more direct relationships with customers 42 | (1) Migration of Country Energy customers completed on 9 October 2013.
Slide 43: Leading power generator with 6,010 MW capacity
Origin is the leading power generator in Australia with 6,010 6 010 MW of capacity … Eraring Power Station Station, NSW … and recently completed the acquisition of Eraring Energy, Energy providing further scale and flexibility benefits 43 |
Slide 44: Boosted gas portfolio with recent contracts
Origin has boosted its gas portfolio with recent contracts … Sources and uses of Energy gy Markets’ Recent gas purchases East Coast gas portfolio 200 Additional volumes 3rd party that can be sold contracts into the gas market 150 if none used in generation APLNG /a pu c ases purchases Mass Market /
Slide 45: Investments in Contact's generation portfolio
Recent investments in Contact’s generation portfolio will improve flexibility and lower generation costs … Stratford Peaker Te Mihi geothermal Power Station … resulting in more reliable earnings 45 |
Slide 46: Investments in Exploration & Production assets
Investments in Exploration & Production assets improves reliability and increases production capacity … BassGas Otway … combined with a flexible gas portfolio will enable increased supply into a growing east coast gas market 46 |
Slide 47: Australia Pacific LNG on budget and schedule
Australia Pacific LNG is on budget and on schedule to deliver first LNG by mid-2015 … … creating a step change in Origin’s Origin s earnings and cash flows which will support future growth 47 |
Slide 48: Major Upstream and Downstream milestones met
Major Upstream and Downstream milestones continue to be met Upstream Cable installation in Combabula Gathering works in Condabri Inlet risers at gas processing facility Downstream Curtis Island LNG Tank B – roof raised on 29 July Batam Module Yard – Propane Condensate Module 48 |
Slide 49: Australia Pacific LNG's industry-leading 2P reserves base
Australia Pacific LNG’s industry-leading 2P reserves base includes prime acreage in both known “sweet sweet spots spots” … Australia Pacific LNG permits Australia Pacific LNG Reserves and Resources ((100%)) PJ 20,000 15 000 15,000 10,000 5,000 - Estimated Requirements 1 3P 2P APLNG tenure in the Sur
Slide 50: Origin entered into a new $7.4 billion bank loan facility
Origin entered into a new $7.4 billion bank loan facility to refinance all existing unsecured bank debt on new terms and pricing and extend its debt maturity profile … Origin Debt & Bank Guarantee Pro-forma Maturity Profile as at 30 September 2013^ Recent financing activity: 4,500 4,000 Loan & Bank
Slide 51: Capital expenditure in existing businesses reduced
Capital expenditure in Origin’s existing businesses has reduced significantly … Growth and Acquisition Capex 5 000 5,000 Acquisition APLNG 4,000 Corporate Contact Exploration & Production 3,000 Energy Markets $ million n 2,000 1,000 000 0 2011 2012 2013 Financial Year -1,000 … as these businesses ha
Slide 52: Progressing existing development opportunities
Progressing existing development opportunities … Existing development opportunities Origin continues to prepare existing gas and renewable energy development opportunities for FID to be taken in the medium term: • Gas opportunities such as Ironbark in Queensland and Halladale/Black Watch in the Otwa
Slide 53: 3. Trading update and future prospects
3. Trading update and future prospects 53 |
Slide 54: Trading update
54 | Trading update A sae “ O origin
Slide 55: Managing Director's Address
Managing Director’s Address 55 |
Slide 56: Formal Business
O origin Formal Business 56 |
Slide 57: 1. Financial Report
1 Financial 1. Fi i lRReportt 57 |
Slide 58: Resolutions 2 and 3: Election and Re-election of Directors
Resolutions 2 and 3: Election and Re-election of Directors 58 |
Slide 59: Resolution 2: Election of Mr Bruce W D Morgan
Resolution l 2: Election of Mr Bruce W D Morgan 59 |
Slide 60: Resolution 2: Election of Mr Bruce W D Morgan
Resolution 2: Election of Mr Bruce W D Morgan Bruce W D Morgan Independent Non-executive Director 60 |
Slide 61: Resolution 2: Proxy votes received
Resolution 2: Election of Mr Bruce W D Morgan Proxy votes received: For 563,396,047 Against 6,292,963 Open 14 825 114 14,825,114 Abstain 1,536,426 61 |
Slide 62: Resolution 3: Re-election of Mr Gordon M Cairns
Resolution 3: Re-election of Mr Gordon M Cairns 62 |
Slide 63: Resolution 3: Re-election of Mr Gordon M Cairns
Resolution 3: Re-election Re election of Mr Gordon M Cairns Gordon M Cairns Independent Non-Executive Director 63 |
Slide 64: Resolution 3: Proxy votes received
Resolution 3: Re-election Re election of Mr Gordon M Cairns Proxy votes received: For 563,269,049 Against 6,548,213 Open 14 814 108 14,814,108 Abstain 1,419,180 64 |
Slide 65: Resolution 4: Remuneration Report
Resolution 4: Remuneration Report 65 |
Slide 66: Resolution 4: Proxy votes received
Resolution 4: Remuneration Report Proxy votes received: For 549,406,740 Against 28,920,305 Open 4 648 941 4,648,941 Abstain 2,747,206 66 |
Slide 67: Special Business Resolution 5: Proportional takeover provisions
SPECIAL BUSINESS Resolution 5: Renewal of proportional takeover provisions 67 |
Slide 68: Resolution 5: Proxy votes received
Resolution 5: Renewal of proportional takeover provisions Proxy votes received: For 563,676,500 Against 3,949,490 Open 14 968 421 14,968,421 Abstain 3,456,139 68 |
Slide 69: 2013 Annual General Meeting
2013 Annual General Meeting 23 October 2013 69 |
Slide 70: Important Notice
Important Notice Fi Financial i l iinformation f ti Origin’s Statutory Profit contains a number of items that when excluded provide a different perspective on the financial and operational performance of the business. Income Statement amounts presented on an underlying basis such as Underlying Conso