Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2020)
21 slides from Origin Energy's shareholder meeting presentation, Oct 20, 2020
Slide 1: Chairman's Address Annual General Meeting
CHAIRMAN’S ADDRESS ANNUAL GENERAL MEETING 20 OCTOBER 2020 This is my final AGM, after seven years as Chairman. With your indulgence, I would like to reflect back over those years, what went well and what I am disappointed with. If the primary job of the board is to select the best chief executive of
Slide 2: Chairman's address continued: emissions, Integrated Gas, Foundation
help customers save energy and money, as well as supporting the grid during peak demand events, particularly in summer, are exciting. We are accelerating towards clean energy, through our commitment to halve our Scope 1 and Scope 2 emissions by 2032. We were the first company in Australia to have ou
Slide 3: Remuneration and engagement with Traditional Owners
cycle. It was not serving its purpose in retaining, attracting or incentivising management. Furthermore, it was not creating share ownership, which has the highest correlation with long-term increase in shareholder value. We therefore proposed to replace the LTIP with a heavily discounted scheme tha
Slide 4: Turning to the future, the pace of transition is increasing
Turning to the future, the pace of transition is increasing. We have transformed in the last five years, so the next five will be just as challenging. And this is my one major disappointment. Despite the strong operational performance over recent times, the share price is not where we would like it
Slide 5: CEO and Managing Director's Address
CEO AND MANAGING DIRECTOR’S ADDRESS ANNUAL GENERAL MEETING 20 OCTOBER 2020 Good morning and thank you for joining us for our AGM, which is a little different to previous years. This has been a very challenging year for our customers, communities and people. Many communities continued to face drought
Slide 6: Pandemic response, safety, engagement and dividends
The pandemic caused gas and electricity demand to fall, and Origin responded by utilising the flexibility of our generation assets and wholesale portfolio to adapt to market conditions and mitigate impacts on the business. We’re currently completing maintenance across our generation fleet so we’re r
Slide 7: Unconventional gas strengths and FY2021 guidance
We are continuing to utilise our strengths in unconventional gas development so we can help meet the market’s needs for cleaner, affordable natural gas through the energy transition as a partner to growing intermittent renewables. This expertise is also advantageous as we progress our future fuels s
Slide 8: Conclusion: resilience and cleaner energy future
To conclude, while we face near-term headwinds due to COVID-19 and its impact on energy demand and commodity prices, I hope you share my confidence and optimism about our prospects. Today Origin is far more resilient to commodity cycles than it has been in the past, operationally our performance con
Slide 9: Chairman's Address
Chairman’s Address Gordon Cairns
Slide 10: What has gone well
What has gone well Selection of CEO First class leadership team Stronger culture – purpose & values Top quartile team engagement Customer centric Future energy initiatives
Slide 11: Action on climate change
Action on climate change • Targets set in 2017 and approved by independent Science Based Targets initiative • Reduce Scope 1 and Scope 2 emissions by 50%, and Scope 3 emissions by 25% by 2032 • New short-term target to reduce Scope 1 emissions by 10 per cent on average over FY2021–FY20231 • Announce
Slide 12: What has gone well
What has gone well Renewable energy Integrated Gas competitive on costs Safety Origin Energy Foundation
Slide 13: Governance
Governance 2 new board appointments Long Term Incentive Plan Withdrew Resolution 4
Slide 14: Engagement with Traditional Owners in the Northern Territory
Engagement with Traditional Owners in the Northern Territory Third year of resolutions from ACCR Site visits by CEO and Board Support of the Traditional Owners Northern Land Council
Slide 15: CEO & Managing Director's Address
CEO & Managing Director’s Address Frank Calabria, CEO & Managing Director 20 October 2020
Slide 16: Helping customers and communities through a challenging period
Helping customers and communities through a challenging period … for our Customers … for our Communities • Bushfire, drought & COVID relief • $365 million spent with regional businesses • Reducing prices beyond regulatory requirements • >$2.9 million contributed by the Origin Energy Foundation • Mai
Slide 17: Strong operational and financial performance in FY2020
Strong operational and financial performance in FY2020 Increased Free Cash Flow driving continued debt reduction and disciplined investment in future growth Record production and cash distributions from Australia Pacific LNG Best ever Net Promoter Score Utilised flexibility of generation assets and
Slide 18: Positioning Origin for the future
Positioning Origin for the future Energy Markets Integrated Gas Step change in customer Competitive, low cost upstream gas experience and cost producer (US$29/bbl distribution breakeven in FY2020) Progressing brownfield generation Opportunity to scale low-cost and storage opportunities upstream mode
Slide 19: FY2021 guidance reaffirmed
FY2021 guidance reaffirmed FY2021 will be challenging due to lower commodity prices and uncertainty over impacts of COVID-19 Energy Markets underlying EBITDA lower at $1,150 to $1,300 million • Lower electricity gross profit driven by lower wholesale prices and absorption of higher network costs • L
Slide 20: Advocating for coordinated energy and climate policy
Advocating for coordinated energy and climate policy • Need to balance energy affordability, reliability and emissions reduction, consistent with objective of net zero emissions by 2050. • Market reform must be coordinated under the ESB’s Post 2025 Market Review, focused on customer outcomes. • Gas-
Slide 21: 2020 AGM proxy summary as at proxy close
2020 AGM proxy summary as at proxy close Resolution For Against Abstain* Proxy's Discretion 2. Re-election of Ms Maxine Brenner 997,102,136 93.09% 63,082,308 5.89% 2,654,036 10,892,534 1.02% 3. Adoption of Remuneration Report 897,381,551 83.79% 163,171,188 15.24% 2,618,159 10,344,522 0.97% 4. Equity