Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2010)
76 slides from Origin Energy's shareholder meeting presentation, Oct 29, 2010
Slide 1: Annual General Meeting
Celebrating ga decade of growth Annual General Meeting 29 October 2010
Slide 2: Important Notice
Important Notice This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose of any g , in anyy jjurisdiction (including securities in Origin, ( g the USA). ) This p presentation is for information p purposes p only, y, is in a summaryy form,, an
Slide 3: The Board
Celebrating ga decade of growth The Board 3
Slide 4: The Board - J Roland Williams
The Board J Roland Williams CBE Independent p Non-Executive Director 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 p Non-Executive Director 6
Slide 7: The Board - Grant A King
The Board Grant A King Managing g g Director 7
Slide 8: Company Secretary
Company Secretary Andrew C Clarke Company p y Secretaryy & Group p General Counsel 8
Slide 9: The Board - Helen M Nugent
The Board Helen M Nugent AO Independent p Non-Executive Director 9
Slide 10: The Board - Gordon M Cairns
The Board Gordon M Cairns Independent p Non-Executive Director 10
Slide 11: The Board - Karen A Moses
The Board Karen A Moses Executive Director Finance and Strategy gy 11
Slide 12: The Board - John H Akehurst
The Board John H Akehurst Independent p Non-Executive Director 12
Slide 13: Celebrating a decade of growth
Celebrating ga decade of growth 13
Slide 14: Chairman's Address
Celebrating ga decade of growth Chairman’s Address
Slide 15: Total Shareholder Returns of 28% per annum since listing
Total Shareholder Returns of 28% per annum since listing I d Indexed d to t 100 from f 21 F February b 2000 tto 30 JJune 2010 4
Slide 16: We have delivered market leading performance for our shareholders
We have delivered market leading performance for our shareholders over manyy yyears Compound Average Growth Rate since listing: g • Total Shareholder Return: 28% • Dividends per Share: 24% • Earnings per Share: 17% • Underlying Profit: 23% • Productive Capital: 16% 5 Page 16
Slide 17: We are seeing an increasing number of investors in Origin
We are seeing an increasing number of investors in Origin 180,000 160,000 140,000 120,000 100,001 an d abo ve 100,000 10,001-100,000 80 000 80,000 5 001-10 000 5,001-10,000 1,001-5,000 60,000 1-1,000 40 000 40,000 20,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 6 Data as at 30 June 2
Slide 18: Origin's Underlying Profit increased by 10%
Origin’s Underlying Profit increased by 10% Statutory Profit (1) $612 million down 91% Statutory Earnings per Share (1) 69.7 cps down 91% Group OCAT(2) $965 million up 21% Underlying EBITDA $1,346 million up 10% U d l i P Underlying Profit fi $585 million illi up 10% Underlying Earnings per Share 66
Slide 19: A fully franked final dividend of 25 cps has been declared
A fully franked final dividend of 25 cps has been declared 19
Slide 20: Operating in an uncertain policy environment
Operating in an uncertain policy environment 20
Slide 21: Bipartisan support to reduce emissions to 5% below 2000 levels
There is bipartisan support to reduce emissions to 5% below 2000 levels by 2020… • There is bi-partisan agreement on a 5% reduction in Australia’s carbon emissions by b 2020 • However renewables and energy efficiency will not deliver the 5% reduction target alone • To do this Australia needs to redu
Slide 22: A carbon price of $20-40 per tonne would drive fuel substitution
A carbon price in the range $20-40 per tonne would drive substantial fuel substitution for baseload power generation • In the absence of a carbon signal: ¾ new baseload gas fired generation is not being built ¾ new baseload coal fired generation is unlikely to be built • New power stations being bui
Slide 23: Our community footprint is expanding beyond Australia
Our community ‘footprint’ is expanding beyond Australia These activities bring economic benefits to local communities, but they also have impacts that people may regard as disruptive 23
Slide 24: Origin is committed to consultation with local communities
Origin is committed to consultation with local communities… …and listening to their feedback when planning and executing projects 24
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Slide 26: Origin's growth is matched by the growth in our people
Origin’s growth is matched by the growth in our people • Employee numbers increased to 4,400 • Safety S f t iis our fi firstt priority: i it ¾Total Recordable Incident Frequency Rate(1) improved to 5.9 ¾This represents a 38% improvement on the prior year (1) Measures the total number of recordable i
Slide 27: Diverse experience, backgrounds, views and skills
We recognise having people with diverse experience, backgrounds, views and skills is essential to meeting the needs of our business • It I iis our iintention i to set measurable, bl numerical i l targets iin k key areas that drive outcomes for women in our workforce • Those targets will be made publ
Slide 28: Your Board visited several of the Company's assets
Your Board has been active during the year and visited several of the Company Company’ss assets Otway Gas Project Kupe opening Mortlake Power Station 28
Slide 29: Chairman's Address
Celebrating ga decade of growth Chairman’s Address 29
Slide 30: Managing Director's Address
Celebrating ga decade of growth Managing Director’s Address 30
Slide 31: Strategy has delivered growth in underlying earnings
Origin’s strategy has delivered growth in underlying earnings through the deployment of capital in value enhancing activities Source: Origin Source: Origin Compound Annual Growth Rates Compound Annual Growth Rate Underlying Profit: 23% Productive Capital: 16% Earnings per Share: 17% 31
Slide 32: Cullerin Range Wind Farm provided a full year's contribution
Cullerin Range Wind Farm provided a full year’s contribution • Commercial Operation date of 1 July 2009 • 30 MW across 15 turbines • Annual A l capacity it factor f t off 41% ffor the th full f ll year • Located near Goulburn, New South Wales • Cullerin Range will save around 100,000 tonnes of carbo
Slide 33: Mt Stuart Power Station expansion completed November 2009
The Mt Stuart Power Station expansion was completed in November 2009 • Peaking power station • 126 MW expansion to 414 MW • Located in Townsville, Queensland • Currently kerosene-fired and capable of being converted to natural gas • GE E Energy g 9E gas g turbine t bi Mt Stuart Power Station 33
Slide 34: Kupe Gas Project officially opened in March 2010
The Kupe Gas Project was officially opened in March 2010 after a short and successful commissioning period • Construction and commissioning p completed • Reliable plant operation established • Initial 2P reserves increased by 11% in aggregate across all products Kupe onshore production facilities 34
Slide 35: Origin increased its interest in the Otway Gas Project to 67%
Origin increased its interest in the Otway Gas Project by 36% to 67% • The transaction with Woodside Energy was completed in March 2010 for $520 million • Origin assumed Operatorship on 1 July 2010 • The project includes three major offshore developments • Remaining 2P reserves in the project increa
Slide 36: Te Huka Power Station commissioned in 2010
The Te Huka Power Station was commissioned in 2010 and is the first stage of geothermal development on the Tauhara geothermal steamfield • 23 MW binary geothermal plant • NZ$100 million investment • Produces enough renewable energy to power around 23,000 homes Te Huka geothermal power station 36
Slide 37: Darling Downs Power Station completed July 2010
Darling Downs Power Station, completed in July 2010, is Australia’s largest gas-fired baseload power station • 630 MW baseload combined cycle gas plant • Emits less than half the greenhouse gas and requires less than three per cent of the water used by a typical water-cooled coal-fired power station
Slide 38: Growing the business across the energy value chain
Origin continues to grow the business and seek new opportunities across the energy value chain Retail Transformation SLIVER APLNG Geothermal Exploration Mortlake Power Station 38
Slide 39: Pursuing opportunities to drive continued growth
Over the next year Origin is pursuing a wide range of opportunities to drive continued growth both domestically and internationally A final investment Expanding markets Pursuit of a Exploration decision by for energy in portfolio of opportunities in Australia Pacific Australia and New renewable ener
Slide 40: APLNG project progressing towards a final investment decision
The APLNG project continues to progress on track to be technically ready for a final investment decision at the end of the year Timing Milestone (Calendar Years)) 9 Initial Advice Statement (IAS) submitted Q1 2009 9 Project declared as Significant by the Q2 2009 Queensland Government Q 9 Curtis Isla
Slide 41: NSW Energy Industry Reform process opportunity
The NSW Energy Industry Reform process provides Origin with an opportunity to further g grow its position p in Australian energy gy markets Origin g Origin g 20% 23% Source: market data, eastern Australia 41
Slide 42: The renewable energy target will drive generation developed to 2020
The renewable energy target (RET) will drive the type of generation developed between now and 2020 to meet underlying growth in demand • Origin modelling suggests over 6 6,000 000 MW Represents mandated 2020 of new wind capacity required by 2020 renewable energy target • Increasing gas fired peaking
Slide 43: Portfolio of wind and baseload renewable options
Origin has positioned itself to respond to the RET with a portfolio of wind and baseload renewable options • Origin has sufficient Renewable Energy Certificates ((RECs)) to meet its mass market customer requirements for the medium term • Origin’s wind development pipeline has a high average capacity
Slide 44: Pursuing development of geothermal technologies
Origin is pursuing the development of geothermal technologies both in Australia and overseas… Origin is well positioned to develop geothermal energy through: • its interest in Contact Energy; • the Innamincka JV and adjacent dj t permits it iin Australia; • its geothermal JV in Indonesia; and • its
Slide 45: Evaluating a hydro-electric scheme on the Purari River
Origin is evaluating the development of a hydro-electric scheme on the Purari River in western PNG • Approximately 1,800 MW of renewable baseload electricity • Reliable R li bl source off power ffor remote villages and rural communities in PNG • Power would also be exported to: • far north Queenslan
Slide 46: Investing in solar PV technology
Origin is continuing to invest in solar PV technology through its 50:50 joint venture with Micron in the US and through conventional solar PV in Australia • Transform Solar is a 50:50 joint venture between Origin and Micron Technology Inc • Objective of joint venture is to focus on development of ph
Slide 47: Continued offshore and international drilling in 2011
In 2011 Origin will continue with the expanded level of offshore and international drilling activity seen in 2010 …including two appraisal wells in the Khorat Plateau in Th il d Thailand… …seismic in …appraisal activities Vietnam... in the Ironbark CSG permit (Origin 100%)... …two t exploration l ti
Slide 48: Managing Director's Address
Managing Director’s Address 48
Slide 49: Chairman's Address
origin Chairman’ s Address Together we can make a difference.™ 49
Slide 50: Pursuing opportunities to drive continued growth
Over the next year Origin is pursuing a wide range of opportunities to drive continued growth … A final investment Expanding markets for Pursuit of a Exploration decision by Australia energy in Australia portfolio of p pp opportunities in Pacific LNG on its LNG and New Zealand, renewable energy Aust
Slide 51: Financial Statements
origin Financial Statements Together we can make a difference.™ 51
Slide 52: Slide 52
Slide 53: Resolution 2: Re-election of Director
Resolution 2: Re-election of Director 53
Slide 54: Resolution 2 - Gordon Cairns
Resolution 2 Gordon Cairns Independent p Non-Executive Director 54
Slide 55: Resolution 2: Proxy votes received
Resolution 2: Election of Director – Gordon Cairns Proxy votes received: For 398,493,945 Against 2,152,323 Open 15,820,928 Abstain 930 328 930,328 55
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Slide 57: Resolution 3: Remuneration Report
Resolution 3: Remuneration Report p 57
Slide 58: Resolution 3: Proxy votes received
Resolution 3: Remuneration Report Proxy votes received: For 383,952,868 Against 15,839,141 Open 15,411,760 Abstain 2 192 236 2,192,236 58
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Slide 60: Resolution 4: Increase in aggregate cap of Non-executive Directors' remuneration
Resolution 4: Increase in aggregate cap p of Non-executive Directors’ remuneration 60
Slide 61: Resolution 4: Proxy votes received
Resolution 4: Increase in aggregate cap of Non Non-executive executive Directors Directors’ remuneration Proxy votes received: For 386,429,358 Against 14,255,958 Open 7,371,082 Abstain 1 357 687 1,357,687 61
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Slide 63: Resolutions 5 and 6: Grant of long term incentives
Resolutions 5 and 6: Grant of long g term incentives 63
Slide 64: Resolution 5: Grant of long term incentives to Mr Grant A King
Resolution 5: Grant of long g term incentives to Mr Grant A King – Managing Director 64
Slide 65: Resolution 5: Proxy votes received
Resolution 5: Grant of long term incentives to Mr Grant A King – Managing Director Proxy votes received: For 380,588,953 Against 20,004,441 Open 7,375,377 Abstain 1 448 060 1,448,060 65
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Slide 67: Resolution 6: Grant of long term incentives to Ms Karen Moses
Resolution 6: Grant of long g term incentives to Ms Karen Moses – Executive Director 67
Slide 68: Resolution 6: Proxy votes received
Resolution 6: Grant of long term incentives to Ms Karen Moses – Executive Director Proxy votes received: For 379,779,608 Against 20,325,694 Open 7,410,161 Abstain 1 462 869 1,462,869 68
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Slide 70: Resolution 7: Adoption of new constitution
Resolution R l ti 7:7 Adoption of new constitution 70
Slide 71: Resolution 7: Proxy votes received
Resolution 7: Adoption of new constitution Proxy votes received: For 396,974,301 Against 2,441,876 Open 16,315,336 Abstain 1 665 661 1,665,661 71
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Slide 73: Resolution 8: Renewal of proportional takeover provisions
Resolution R l ti 8:8 Renewal of proportional takeover provisions p 73
Slide 74: Resolution 8: Proxy votes received
Resolution 8: Renewal of proportional takeover provisions Proxy votes received: For 397,127,186 Against 2,401,113 Open 16,312,449 Abstain 1 552 520 1,552,520 74
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Slide 76: Annual General Meeting
O origin Annual General Meeting Together we can make a difference.™