Origin Energy Limited · ASX:ORG
Origin Energy — Citigroup Annual Australian Investment Conference 2010
20 slides from Origin Energy's conference presentation, Oct 25, 2010
Slide 1: ASX announcement cover note: presentation
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 25 October 2010 From Helen Hardy Pages 20 Subject PRESENTATION Attached for your information is a presentation being made at the Citigroup Annual Australian Investment Conference in Sydney by Mr Gra
Slide 2: Citigroup Annual Australian Investment Conference - Celebrating a decade of growth
Citigroup Annual Australian Investment Conference Sydney 25 October 2010 For personal use only Celebrating a decade of growth Origin Energy
Slide 3: 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 4: Origin's business built around a fuel position
Origin has built its business around a fuel position which allows it to manage wholesale risks more effectively than its competitors, with the Retail customers providing the long term revenue certainty For personal use only Fuel Generator Retailer Origin’s extensive position in resources Origin’s co
Slide 5: Strategy delivering growth in underlying earnings
The implementation of Origin’s strategy has delivered growth in underlying earnings through the deployment of capital in value enhancing activities EBITDA CAGR 17% Underlying Profit CAGR 23% For personal use only (Earnings per Share CAGR: 17%) (1) Funds Employed CAGR 16% Free Cash Flow (1) CAGR 19%
Slide 6: Origin has significantly increased its dividends over time
Origin has significantly increased its dividends over time. Following the APLNG transaction the Company announced its intention to rebase dividends at 50 cps annually and target a higher payout ratio of at least 60% of Underlying Profit For personal use only Source: Origin Consistent with the previo
Slide 7: One of the top performing listed companies over the last decade
As a result of this growth, Origin has been one of the top performing listed companies over the last decade … For personal use only Origin delivered Total Shareholder Returns from listing to 30 June 2010 of 1282% at a compound average growth rate of 28% Indexed to 100 from 21 February 2000 to 30 Jun
Slide 8: Opportunities to drive continued growth over the next year
Over the next year Origin is pursuing a wide range of opportunities to drive continued growth … For personal use only A final investment Expanding markets Pursuit of a portfolio Exploration decision by Australia for energy in of renewable energy opportunities in Pacific LNG on its LNG Australia and
Slide 9: APLNG 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 For personal use only Milestone (Calendar Years) Initial Advice Statement (IAS) submitted Q1 2009 Project declared as Significant by the Queensland Government Q2
Slide 10: Progress on regulatory approvals, FEED studies and early works
Significant progress has been made on regulatory approvals, FEED studies and early works contracts … Significant FEED and Early Works Contracts Awarded For personal use only • Contracts signed with Savanna Energy Services for the provision of proprietary hybrid drilling and workover rigs for a five
Slide 11: Australian LNG projects largely contracted ahead of APLNG
Australian LNG projects that have planned project commencement dates prior to APLNG have now largely been contracted … LNG Agreements by Project and Buyer (Mtpa) For personal use only Pluto 1 Tokyo Gas Pluto 2 Kansai Electric Fisherman’s Landing Osaka Gas TEPCO PNG LNG Chubu Electric QCLNG Kyushu El
Slide 12: Retail and C&I position provides channel to market for gas and power
Origin’s growing retail and C&I position provides a channel to market for gas production and power generation. The NSW Energy Industry Reform process provides an opportunity to further expand these positions Origin Sources & Uses of Gas For personal use only Origin Electricity Peak Capacity and Peak
Slide 13: Renewable energy target to drive generation development to 2020
The renewable energy target (RET) will drive the type of generation developed between now and 2020 to meet underlying growth in demand For personal use only • Origin’s modelling suggests that, if the mandated renewable target is to be met Represents mandated 2020 predominantly by wind, then over 6,0
Slide 14: Portfolio of renewable energy supply to respond to the RET
Origin has positioned itself to respond to the RET with a portfolio of renewable energy supply… For personal use only • Origin has sufficient RECs to meet its mass market customer requirements for the medium term • Origin initially invested in wind through third parties by underwriting wind farm dev
Slide 15: Developing geothermal technologies in Australia
Origin is pursuing the development of geothermal technologies in Australia with potential to provide significant reliable baseload energy to the NEM … • Origin is well positioned to develop geothermal energy through its interest For personal use only in Contact Energy, the Innamincka JV and adjacent
Slide 16: Investing in solar photovoltaic technology through Transform Solar
Origin is continuing to invest in solar photovoltaic technology through its 50:50 joint venture with Micron in the US … • Transform Solar is a 50:50 joint venture between Origin and Micron Technology Inc to focus on the For personal use only development of photovoltaic technologies • The near term o
Slide 17: Evaluating a hydro-electric scheme on the Purari River in PNG
Origin is evaluating the development of a hydro-electric scheme on the Purari River in western PNG • Capacity to generate approximately 1,800 MW of renewable baseload electricity For personal use only • Reliable source of power for remote villages and rural communities in PNG, transforming the area’
Slide 18: Expanded offshore and international drilling activity in 2011
In 2011 Origin will continue with the expanded level of offshore and international drilling activity seen in 2010 … For personal use only …including two appraisal wells in the Khorat Plateau in Thailand… …seismic in …appraisal activities in Vietnam... the Ironbark CSG permit (Origin 100%)... …two ex
Slide 19: Declining committed growth capital provides funding flexibility
Origin’s forward committed growth capital program is declining providing funding flexibility to address new opportunities For personal use only Source: Origin Source: Origin Origin has significant financial capacity to fund future growth with $3.4 billion of available liquidity including cash and un
Slide 20: Investor Relations contact details
Citigroup Annual Australian Investment Conference Sydney 25 October 2010 For personal use only Celebrating a decade of growth Origin Energy For further information Angus Guthrie Group Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61 2 8345 5558 Mobile: + 61 417 864 25
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