Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2018)
26 slides from Origin Energy's shareholder meeting presentation, Oct 17, 2018
Slide 1: 2018 Annual General Meeting
2018 Annual General Meeting 17 October 2018
Slide 2: Important Notices
Important Notices 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 certainty of outcome in re
Slide 3: Chairman’s address
Chairman’s address Gordon Cairns 17 October 2018
Slide 4: Outline
Outline 1. Our relationship with Aboriginal communities 2. Our membership of industry organisations 3. The political landscape 4. ‘Good energy’ at Origin 4 17 October 2018 Annual General Meeting 2018
Slide 5: Our relationship with Aboriginal communities
Our relationship with Aboriginal communities • We act lawfully and respectfully with the Traditional Owners around our activities • In the area around the Beetaloo Basin where we hold our exploration permits, the Northern Land Council determines our Native Title holders • We seek to apply the princi
Slide 6: Our membership of industry associations
Our membership of industry associations • Industry association membership allows us to advocate on behalf of our customers and shareholders • We continually assess alignment of the energy and climate policy positions of these associations with our own • We are improving our disclosure in future annu
Slide 7: The political landscape
The political landscape Bringing energy Delivering emissions prices down reductions Transparency Reliability of supply of pricing 7 17 October 2018 Annual General Meeting 2018
Slide 8: Making energy more affordable for our customers
Making energy more affordable for our customers Leading the transition to a clean energy future Creating the right culture Being a good community citizen Delivering for all shareholders 8 17 October 2018 Annual General Meeting 2018
Slide 9: Making energy more affordable for our customers
Making energy more affordable for our customers • Increased supply from Eraring and Pelican Point • Flat or falling tariffs in NSW, QLD, SA and the ACT (having absorbed green scheme and network increases in NSW) • No price rises for customers on hardship program since 2016 • Special discounts for co
Slide 10: Leading the transition to a clean energy future
Leading the transition to a clean energy future Origin’s five pillars 1. Exit coal-fired generation by 2032 2. Significantly grow renewables in our portfolio of decarbonisation: 3. Utilise our strong gas position as a lower-emissions firming fuel 4. Empower customers with cleaner, smarter energy sol
Slide 11: Creating the right culture
Creating the right culture Achieved our lowest ever TRIFR Improved our engagement score Introduced a new purpose and values Diversity and equal pay “I’m genuinely excited that we are moving forward towards a more sustainable energy future.” Sally Bell Origin Portfolio Manager, Sydney 11 17 O
Slide 12: Our new purpose and values
Our new purpose and values Getting energy right for our customers, communities and planet Work as one team, Be the customer Care about Find a Being one Origin champion our impact better way accountable 12 17 October 2018 Annual General Meeting 2018
Slide 13: Being a good community citizen
Being a good community citizen Great education opportunities for • $23 million to support communities since 2010 disadvantaged rural students • The Foundation’s focus, chosen by Origin employees, is to support education programs “For a long time, I was ashamed of my upbringing. But I for disadvantag
Slide 14: FY2018 highlights
FY2018 highlights Share price growth in FY2018 Medium-term outlook supports recommencement of dividends in FY2019, subject to Board approval and no material adverse change in business conditions Underlying Profit Statutory Profit Adjusted Net Debt (continuing operations) $218 million $838 millio
Slide 15: CEO’s address
CEO’s address Frank Calabria 17 October 2018
Slide 16: Outline
Outline 1. ‘Good energy’ 2. Energy Markets performance 3. Addressing affordability 4. Integrated Gas performance 5. Contributing to policy outcomes 6. Outlook 16 17 October 2018 Annual General Meeting 2018
Slide 17: 17 October 2018 Annual General Meeting 2018
17 17 October 2018 Annual General Meeting 2018
Slide 18: Generation and gas sales lifted Energy Markets earnings
Generation and gas sales lifted Energy Markets earnings • Underlying earnings increased to $1.8 billion driven by: • 14% lift in output from Eraring • Higher wholesale prices • 13% increase in natural gas sales 18 17 October 2018 Annual General Meeting 2018
Slide 19: Addressing affordability
Addressing affordability Customer pic Increased supply from power stations putting downward pressure on wholesale prices Secured more gas for the domestic market Rapid rollout of renewables to 2020 Led industry on flat or falling tariffs in NSW, ACT, Queensland and South Australia from 1 Jul
Slide 20: Making energy easier and simpler for customers
Making energy easier and simpler for customers Increasing digital interactions New products and services Online sales up 28% My Account & Mobile App unique visits up 54% Technology pipeline 1,822k 345k 270k Visibility and control Reducing energy cost 1,186k Usage Buster Home HQ Savernator FY17 FY18
Slide 21: Increased contribution from Australia Pacific LNG
Increased contribution from Australia Pacific LNG • Earnings up 67%, driven by: • Recovery in commodity prices • Record production • Net cash flows back to Origin of $363 million • 125 LNG cargoes shipped • Supplies close to 30% of east coast gas market • Progress on plans to be a low cost, globally
Slide 22: Growth opportunities
Growth opportunities • Entered Front End Engineering and Design (FEED) at Ironbark • Preparing to get back on the ground in the highly prospective Beetaloo Basin in 2019 22 17 October 2018 Annual General Meeting 2018
Slide 23: Contributing to policy outcomes
Contributing to policy outcomes • Affordability must be addressed across the supply chain to deliver sustainable reduction in prices • Many of the 56 ACCC report recommendations provide a blueprint for achieving lower prices: Banning unanchored discounts and quoting in dollar-terms Making condit
Slide 24: FY2019 guidance reaffirmed
FY2019 guidance reaffirmed Provided that market conditions and the regulatory and political environment do not materially change to adversely impact operations: Origin expects Underlying Profit to be higher and further debt reduction in FY2019 Energy Markets Corporate/Other • Underlying EBITDA of •
Slide 25: 2018 AGM Proxy Summary as at Proxy Close
2018 AGM Proxy Summary as at Proxy Close Resolution For Against Abstain* Proxy's Discretion 2. Re-election of Mr John Akehurst 1,034,206,515 97.11% 20,742,441 1.95% 3,860,129 10,035,099 0.94% 3. Re-election of Mr Scott Perkins 1,022,458,681 96.01% 32,417,548 3.04% 3,878,984 10,088,971 0.95% 4. Re-el
Slide 26: 2018 Annual General Meeting
2018 Annual General Meeting 17 October 2018