Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2011)
58 slides from Origin Energy's shareholder meeting presentation, Oct 24, 2011
Slide 1: 2011 Annual General Meeting
2011 Annual General Meeting 24 October 2011
Slide 2: Important Notice
Important Notice This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose of any securities in Origin, in any jurisdiction (including the USA). This presentation is for information purposes only, is in a summary form, and does not purport to b
Slide 3: The Board
O origin The Board
Slide 4: The Board: Karen A Moses
The Board Karen A Moses Executive Director, Finance and Strategy 4|
Slide 5: The Board: Bruce G Beeren
The Board Bruce G Beeren Non-Executive Director 5|
Slide 6: The Board: Trevor Bourne
The Board Trevor Bourne Independent Non-Executive Director 6|
Slide 7: The Board: Grant A King
The Board Grant A King Managing Director 7|
Slide 8: Company Secretary
Company Secretary Andrew C Clarke Company Secretary and Group General Counsel 8|
Slide 9: The Board: Helen M Nugent AO
The Board Helen M Nugent AO Independent Non-Executive Director 9|
Slide 10: The Board: Gordon M Cairns
The Board Gordon M Cairns Independent Non-Executive Director 10 |
Slide 11: The Board: John H Akehurst
The Board John H Akehurst Independent Non-Executive Director 11 |
Slide 12: Chairman's Address
O origin Chairman’s Address
Slide 13: Origin secured two major opportunities during the year
During the year, Origin successfully secured two major opportunities … Acquisition of the Integral Energy and Country Energy retail businesses and entry into the Eraring GenTrader arrangements • Last major opportunity to participate in consolidation of the Australian retail energy market • Secured O
Slide 14: Underlying Profit increased by 15% driven by new investments
Origin’s Underlying Profit increased by 15% driven by significant contributions from new investments Statutory Profit $186 million down 70% Statutory Earnings per Share(1) 19.6 cps down 71% Underlying EBITDA $1,782 million up 32% Underlying Profit $673 million up 15% Underlying Earnings per Share(2)
Slide 15: Origin has invested $5 billion and committed $6 billion to Australia Pacific LNG
Origin has invested $5 billion in development and acquisitions and committed $6 billion to fund its share of Australia Pacific LNG Recent funding and capital management initiatives • Raised $2.3 billion of equity via a pro rata entitlement offer • Syndication of a $2.15 billion and US$350 million th
Slide 16: Outstanding operational and financial year, share price movements
While it has been an outstanding year in operational and financial terms … Share Price Movements Indexed to 100, 6 months from April to October 2011 110 105 100 95 90 85 80 ORG 75 ASX200 70 ASX200 Energy Index 65 60 19-Apr 19-May 19-Jun 19-Jul 19-Aug 19-Sep 19-Oct … this success has not been fully r
Slide 17: Australia Pacific LNG has achieved major milestones during the year
Australia Pacific LNG has achieved major milestones during the year … State and Federal approvals of Environmental Impact Statement Binding agreement with Sinopec for 20-year 1-train LNG off-take agreement and Sinopec was issued 15% equity in APLNG Completion of front-end engineering and desig
Slide 18: Australia Pacific LNG is well placed to execute the project
Australia Pacific LNG is well placed to successfully execute all components of the project Strong and aligned joint venture Australia’s largest 2P CSG reserves base Australia’s largest, and world’s largest CSG operators ConocoPhillips owner of Optimised Cascade® Process ConocoPhillips-Bech
Slide 19: Operating in an uncertain policy environment
Operating in an uncertain policy environment Coal seam gas well at Talinga, Qld Cullerin Range Wind Farm, NSW 19 |
Slide 20: Queensland's CSG industry operates in a tightly regulated environment
Queensland’s CSG industry operates in a tightly regulated and transparent environment, which balances the interests of all stakeholders As this becomes better understood, Origin is confident that the public will become increasingly clear about the benefits of the industry 20 |
Slide 21: |
21 |
Slide 22: As Origin grows, our team also grows
As Origin grows, our team also grows • Safety is our first priority: Total Recordable Incident Frequency Rate(1) was 6.0, an increase from 5.6 in the prior year Continued focus on the challenge of improving safety performance • Employee numbers increased to 5,213 Increase of 821 people on the
Slide 23: Improving our diversity
Improving our diversity O origin 23 |
Slide 24: Managing Director's Address
Managing Director’s Address
Slide 25: Origin successfully secured two major opportunities
During the year, Origin successfully secured two major opportunities … Acquisition of the Integral Energy and Country Energy retail businesses and entry into the Eraring GenTrader arrangements Acquired leading retail position in NSW Eraring Power Station The Australia Pacific LNG CSG to LNG project
Slide 26: Completion of NSW energy reform marks end of industry consolidation
The completion of the NSW energy reform process marks the end of industry consolidation … Electricity and Gas Market Share in the NEM Market Share of Generation Capacity(2) NEM Regions(1) NEM Market Share of Generation Capacity (3),(4) Origin TRUenergy Mac. Generation Other Origin Snowy Hydro 19% 33
Slide 27: NSW acquisition increased retail customer base by over 50%
The NSW acquisition led to an increase in Origin’s retail customer base of over 50% … and Electricity customer accounts by Electricity customer accounts Gas and state by567 state 1,636 4,137 NSW 252 VIC The NSW acquisition 1,156 included 1,585 NSW VIC thousand accounts QLD 1,652 1,150 as at 1 March
Slide 28: Retail Transformation project replacing billing systems with SAP
The Retail Transformation project is replacing customer billing and management systems with a new integrated SAP system … • We are progressively moving customers to a new SAP integrated billing and customer management system • 1.3 million customers in South Australia and Victoria have been moved and
Slide 29: Developing new products and business lines for customers
Origin continues to develop its new products and business lines to deliver solutions for customers … Solar and Home Products E-Mobility/Electric Vehicle (EV) • Solar rooftop installations up from Charging 6,449 in FY2010 to 36,840 in FY2011 • First ChargePointTM installed in Australia • Since 2009,
Slide 30: Unique generation portfolio through organic growth and acquisition
Origin has developed a unique generation portfolio through both organic growth and acquisition … FLEXIBILITY FUEL DIVERSITY MW Origin Generation Ramp-Up(1)(2) Origin Generation Capacity(1) by Fuel 12,000 MW 10,000 12,000 8,000 10,000 6,000 8,000 4,000 6,000 2,000 4,000 - 2,000 - Peak Min 30 min 90 m
Slide 31: Origin's owned and contracted power stations
Origin’s owned and contracted power stations Name Type Capacity State (MW) Bulwer Island CCGT, Cog 32 QLD Darling Downs CCGT 630 QLD Mt Stuart OCGT 418 QLD Roma OCGT 74 QLD Ladbroke OCGT 80 SA Uranquinty Power Station Darling Downs Power Station Grove Osborne CCGT, Cog 180 SA Quarantine OCGT 201 SA
Slide 32: Breakdown of a NSW residential electricity bill
Breakdown of a NSW residential electricity bill Source: IPART and Origin analysis 32 |
Slide 33: Energy costs stable as percentage of household expenditure
Energy costs have been stable as a percentage of total household expenditure … Source: ABS, 6 September 2011 … with the average energy bill equivalent to around a cup of coffee a day 33 |
Slide 34: Australia's electricity prices are competitive internationally
Australia’s electricity prices are competitive internationally Source: ABARES, March 2011 34 |
Slide 35: Australia Pacific LNG approved first train of two train project
Australia Pacific LNG has approved development of the first train of its two train CSG to LNG project … Compelling Project Benefits • Leverages strong growth in Asian energy markets • Revenues secured by 20 year contract with Sinopec linked to international oil prices • Significant contribution to O
Slide 36: Comprehensive regulatory regime underpins CSG to LNG projects
A comprehensive regulatory regime underpins CSG to LNG projects ensuring responsible development of these large projects Environmental Impact Statement (EIS) Environmental, social and economic impact assessment State Federal Coordinator General Report Gas Fields Pipeline LNG Facility Environmental a
Slide 37: Australia's longest history of CSG exploration and production
With Australia’s longest history of CSG exploration and production … Origin and APLNG exploration and production permits in the Surat and Bowen basins … Origin will be responsible for Australia Pacific LNG’s upstream operations 37 |
Slide 38: ConocoPhillips operates the downstream project
ConocoPhillips is the operator of the downstream project bringing over 40 years of experience in LNG development … Artist’s impression of the Australia Pacific LNG facility at Laird Point on Curtis Island … including ownership of the Optimised Cascade Technology and a global construction alliance wi
Slide 39: Commitment to local communities and the environment
Australia Pacific LNG continues its commitment to local communities and the environment to operate sustainably … Supporting the Community • Social Impact Management Plan to identify community needs and direct investment • Boosting local skills via apprenticeships, scholarships and training • Regiona
Slide 40: Managing Director's Address
Managing Director’s Address 40 |
Slide 41: Chairman's Address
41 | Chairman’s Address O origin
Slide 42: Outlook
Outlook At the Full Year Results Announcement in August Origin advised that based on operations to date and the then prevailing market conditions the company anticipated: • Underlying EBITDA to increase by around 35 per cent when compared with FY2011 • Underlying Profit to increase by around 30 per
Slide 43: Chairman's Address
O origin Chairman’s Address 43 |
Slide 44: 2011 Annual General Meeting
2011 Annual General Meeting 24 October 2011 44 |
Slide 45: 1. Financial Report
45 | 1. Financial Report O origin
Slide 46: Resolution 2: Re-election of Mr H Kevin McCann AM
Resolution 2: Re-election of Mr H Kevin McCann AM 46 |
Slide 47: Resolution 2: Kevin McCann
Resolution 2: Kevin McCann Independent Non-Executive Director 47 |
Slide 48: Resolution 2: Proxy votes received
Resolution 2: Re-election of Mr H Kevin McCann Proxy votes received: For 511,356,752 Against 3,198,844 Open 14,440,178 Abstain 1,638,360 48 |
Slide 49: Resolution 3: Re-election of Mr Bruce G Beeren
Resolution 3: Re-election of Mr Bruce G Beeren 49 |
Slide 50: Resolution 3: Bruce Beeren
Resolution 3: Bruce Beeren Non-Executive Director 50 |
Slide 51: Resolution 3: Proxy votes received
Resolution 3: Re-election of Mr Bruce Beeren Proxy votes received: For 506,775,519 Against 7,675,451 Open 14,503,315 Abstain 1,679,299 51 |
Slide 52: Resolution 4: Remuneration Report
Resolution 4: Remuneration Report 52 |
Slide 53: Resolution 4: Proxy votes received
Resolution 4: Remuneration Report Proxy votes received: For 493,120,926 Against 20,440,555 Open 8,227,693 Abstain 2,910,891 53 |
Slide 54: Resolution 5: Long term incentives to Grant A King
Resolution 5: Grant of long term incentives to Mr Grant A King – Managing Director 54 |
Slide 55: Resolution 5: Proxy votes received
Resolution 5: Grant of long term incentives to Mr Grant A King Proxy votes received: For 492,427,842 Against 21,637,884 Open 8,157,880 Abstain 2,319,710 55 |
Slide 56: Resolution 6: Long term incentives to Karen A Moses
Resolution 6: Grant of long term incentives to Ms Karen A Moses – Executive Director 56 |
Slide 57: Resolution 6: Proxy votes received
Resolution 6: Grant of long term incentives to Ms Karen A Moses Proxy votes received: For 492,033,226 Against 21,987,465 Open 8,152,774 Abstain 2,359,758 57 |
Slide 58: 2011 Annual General Meeting
2011 Annual General Meeting 24 October 2011