Origin Energy Limited · ASX:ORG
Origin Energy — CSFB Asian Energy Conference 2003
23 slides from Origin Energy's conference presentation, Oct 10, 2003
Slide 1: Origin Energy ASX announcement: Presentation to Asian Energy Conference
Origin energy To Company Announcements Office Facsimite 1300 300 021 Company Australian Stock Exchange Limited Date 10 October 2003 From Bill Hundy Pages 23 Subject PRESENTATION TO ASIAN ENERGY CONFERENCE Please find attached a copy of a presentation that Angus Guthrie, Manager investor Relations is
Slide 2: Strategy, Performance and Growth in Contestable Energy Markets
Or Sin Strategy, Performance and Growth in Contestable Energy Markets _ | October 20
Slide 3: A growing market and a growing company
End use sales of electricity, gas and related products and services in Australia exceeds A$32 billion per annum and has been growing steadily as energy consumption increases A GROWING MARKET * Growth in domestic demand for energy has averaged over 4% per annum over the last 20 years even through tim
Slide 4: Reform and privatisation in the energy sector commenced in the mid 1990s
Reform and privatisation in the energy sector commenced in the mid 1990’s but has not been uniformly implemented... Gas Vic Electricity Gas SA Electricity Gas NSW Electricity Gas QLD Electricity Gas WA Electricity Outer Bar Legend Inner Bar Not Contestable _ ....leaving room for continued growth as
Slide 5: Deregulation and privatisation has resulted in over A$54 billion of transactions
Deregulation & privatisation has resulted in over A$54 billion of electricity and gas transaction.......... Cumulative asset sales in the Australian energy sector (including resale of some assets) 70 DLikely Sales 60 ln Progress Completed Sales 50 S = 40 = vw < 30 20 + 10 | 0 opp! oo? es se a Se ...
Slide 6: Origin developed its approach for competing in these markets
Origin developed its approach for competing in these markets based on a financial proposition and a complementary business strategy e Financial Objective - Steady and predictable cashflows - EPS growth of 10-15% pa ¢ Business Strategy - Positioned in the competitive (rather than regulated) segments
Slide 7: Australian Energy Industry Structure
Australian Energy Industry Structure Natural Gas ,- —- ~-- ~~ ~~~ ~~ Origin maintains an equity . investment in Envestra and , Electricity , provides Asset Management ! Regulated monopoly businesses | Competitive segments Origin is focused on contestable segments where there is greater potential for
Slide 8: The competitive advantages of Origin's businesses
The competitive advantages of Origin’s businesses were identified and strategies adopted to enhance them......... rea eS ES ESE TES TEST eo 1 «Gas focussed | .Market driven I «Local geoscience/operational expertise len see fem sm scale = I 1 .Dual fuel capability I | -Supply, risk management, and ma
Slide 9: Origin has implemented this strategy through projects and acquisitions
Origin has implemented this strategy through a combination of internally developed projects and acquisitions........ Mt Stuart Coal Seam Gas Perth Basin Worsley Quarantine SEA Gas Pipeline Ladbroke Grove Powercor & CitiPower Page & Offshore Otway Basin BassGas Project e Upstream - Otway: Thylacine &
Slide 10: Strong growth in the company's operations and profits
....-which has resulted in strong growth in the company’s operations and profits 2,500 2.2 2P Reveves (PJe) Customers (millions) 2,000> U 2.0 5 P ° EBITDA by Segment (AS, millions) up 67% 1,500 4 8) 1.6 4 1,000 4 1.45 500 + 1.24 o+ 1.0 + ne Jun 00 Jun 01 Jun 02 Sep-03 Jun 00 Jun01 Jun 02 Sep 03 1000
Slide 11: Earnings per share has grown 86% through the last three annual results
Earnings per share has grown 86% through the last three annual results (CAGR 23%) 60 54 ¢ Origin’s capital base has increased by 16% following the equity raising in 2001, DRP and employee share plans 50 = |@ CFPS GEPS @ DPS 40 + « Nonetheless EPS has increased 23% 30 4 on a compound basis ¢ Cashflow
Slide 12: Origin targets top third performance on a TSR basis
Origin targets top third performance on a TSR basiz...... 400% Total Shareholder Return Peer Sector Companies in| Annualised ‘o 1 March 2000 to 12 September 2003 ASX 100 TSR Origin Energy Ltd 43% Alinta Gas * 29% Santos Ltd 19% 75% . Woodside Petroleum 15% z R s 2 Australian Gas Light 14% com an = e
Slide 13: Opportunities for Further Development
j Or isin Opportunities for Further Development 2
Slide 14: Medium term growth projects requiring capital expenditure of $1.4 billion
In the medium term growth projects requiring capital expenditure of $1.4 billion are already being developed...... ¢ Current free cash flow will 700 _ cover the majority of the 450 capital required for this FY '03 Free j 400 Cash Flows organic growth 350 $350 mill. pa ¢ Conservative gearing of 29% a
Slide 15: Longer term opportunities for new developments
Longer term the energy industry in Australia provides continuing opportunities for new developments Coal Seam Gas e Upstream - Offshore Otway and Bass Basins - Coal seam gas (CSG) ¢ Retail one - Consolidation & margin growth ¢« Generation - Demand growth for gas fired generation - Renewables ydney O
Slide 16: New infrastructure and acreage awards in the Otway and Bass Basins
= New infrastructure and “ acreage awards are opening _up opportunities in the Otway and Bass Basins e Following the Thylacine and Geographe gas discoveries the | offshore Otway has attracted / many new players > VICIP44 ¢ Prospectivity centres ona reservoir fairway known as the Shipwreck Trough VIC
Slide 17: Leading position in commercialisation of CSG resources
Origin has established the leading position in the commercialisation of CSG resources in Australia........ “ c e Origin has been involved in CSG for 7 coal Seam Gas Reserves In Queensland . . . . years in Australia and is now seeing the commercial reward for diligent technical efforts 1,500 Others @
Slide 18: In Retail, opportunities exist to build scale
In Retail, opportunities exist to build scale through market growth/consolidation and margin expansion Eastern Australian energy retailers: market share by energy accounts Source: ESAA, AGA Government B Origin @ Listed entities ™@ Other listed entities Origin Retail Margins 6 5 a EBIT / Sales (%) w
Slide 19: Growth of the Generation business to 883 MW
Origin has grown the Generation business from a few MW in the mid 90’s to 883 MW of gas turbine & cogeneration plant 3,500 « Over 530 MW is contracted to Peak Demand & Generation Capacity 34 parties, while 250 MW is 3,000 contracted to the Retail division through a tolling 2,500 - @ Annual NEM Peak
Slide 20: Portfolio of renewable generation projects
Origin has established a portfolio of renewable generation projects that provide value in an uncertain environment Renewables - MRET*°GWh e Wind: Option to acquire 50% equity Possible requirements interest in Challicum Hills and plans for development of the Kemmiss Hill Rd and Troubridge wind farms
Slide 21: Origin will continue to deliver value to shareholders
Origin will continue to deliver value to shareholders through: ¢ A strategic position that has differentiated Origin from other energy companies in Australia ¢ A focus on risk management and improving the performance of existing businesses ¢ Growth from prospects generated within the business and ac
Slide 22: For more information
For more information. For more information on Origin Energy please contact Angus Guthrie Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61-2-9220 6558 Mobile: + 61-4-1786 4255 Fax: +61-2-9235 1661 Alternatively visit our website www.originenergy.com.au and follow the p
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