Origin Energy Limited · ASX:ORG
Origin Energy — Citi Infrastructure & Utilities Conference 2007
38 slides from Origin Energy's conference presentation, Jun 6, 2007
Slide 1: ASX announcement: presentation to Citi Infrastructure and Utilities Conference
Origin energy To Company Announcements Office Facsimite 1300 300 021 Company Australian Stock Exchange Limited Date 6 June 2007 From Bill Hundy Pages 38 Subject PRESENTATION Attached for your information is a presentation being made by Ms Karen Moses, Chief Operating Officer, Australia to the Citi I
Slide 2: Positioning - Citi Infrastructure & Utilities Conference 2007
origin Positioning Citi Infrastru sue 2007
Slide 3: Important Notice
Important Notice Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect and these statements speak only as of the date of this presentation. This presentation should not be relied upon as a recommendation to buy
Slide 4: Outline
Outline » Origin Energy’s Strategy « Electricity Opportunities « Gas Opportunities « Carbon Opportunities
Slide 5: Origin's financial objectives and business strategy
Origin’s financial objectives and business strategy have been established to respond to changes in the energy industry that began in the mid 1990s... * Financial Objective - Steady and predictable cashflows - EPS growth of 10-15% pa on average » Business Strategy - Positioned in the competitive (rat
Slide 6: Origin the leading fuel integrated generator retailer
The effective implementation of these strategies has resulted in Origin becoming the leading fuel integrated generator retailer in the Australian and NZ markets... J | g 3,000 4.0 2P Reserves : 3s Customers 2,500 1 (PJe) 3,800 (millions) Generation Capacity 2,000 5 3,000 4 (MW) 4,506 2,500 4,000 2,0
Slide 7: Origin's business reported across four segments plus Contact
Origin has reported its business across four segments covering its operations in Australia with Contact being reported as a fifth segment 30 June 2006 EBITDA Fe Retail - 2nd largest energy retailer in Australia : +Over 3 million customers, Australia’s 2" largest energy retailer 273, 1,229 «National
Slide 8: Strategies have resulted in significant growth increasing shareholder value
These strategies have resulted in significant growth increasing value for shareholders *° GFCEPS ial a 5 10 BEPS i iA moPS } 63 Bai -~ & Bod 2 pa 5 i 50 i HA a2 ia Va ee a L | A 10 BA Ba ° A A 00 ‘of e2 ‘03 ‘04 05 ‘86 $10.06 1000 $9.06 Origin Energy Share Price Performance vs ASX106 (1 March 2006 to
Slide 9: Focus on sustainability part of business strategy
A focus on sustainability and what it means for the company has always been part of Origin’s business strategy » We have identified and reported on objectives in three key areas: Environmental, Social and Economic » Our Sustainability reports have used an Origin relevant reporting framework, based o
Slide 10: Our Purpose
Our Purpose SRO, ; ous SSR, wan 8 % Together we can Sf J “he ~ make a difference % Yj, “ti, i, ee ay er ites (ee — oC , ra We will be the ‘y % fo leading, most trusted & % , 4 admired energy provider ‘ : in Australia & New Zealand. \ # We will find opportunities across ; ‘the energy supply chain. We
Slide 11: Our Commitments and Principles
Our Commitments define the outcomes that we strive to achieve for key stakeholders... We are committed to: Our Principles are: e Delivering market leading performance to our shareholders ¢ Delivering better value to customers e Creating a rewarding workplace for our employees e Respecting the rights
Slide 12: Electricity Opportunities
Slide 13: Acquisitions have grown Origin's retail business
Through acquisitions Origin has grown its retail business establishing a leading position... 4.0 Customers (miilions) 3.54 The NSW government still owns retail businesses. An inquiry has been initiated by the government that may result Eastern Australia Share of gas and electricity accounts Ergon Co
Slide 14: Origin's baseload and peaking generation interests
Origin currently has interests in 870 MW of baseload and peaking generation in Australia and over 2,200 MW through Contact Energy in New Zealand Australia Plants Capacity (MW) Operation | Fuel Osborne 486 (Cogen} Base Gas Worsley 426 (Cogen} Base Gas Suiwer fsiand 32 (Cogen} Base Gas Mt Stuart 288 (
Slide 15: Wholesale electricity price increases across Australia
Wholesale electricity markets across Australia have recently experienced significant short-term price increases... $400 998 c=] Monthly Average Queensland Spot and Forward Contract, Spot Price Electricity Prices $85 ownvtcurve as at 36/5/67/ $80 878 jammm curve as at 30/6/06| $70 $68 ~~2668 Historic
Slide 16: Tightening supply demand balance
A tightening of the supply demand balance has been predicted for some time and Origin has been positioning to ensure its short-term positions are covered... 350 4 NEM Energy Supply and Dernand, 2000-2025 « Origin is full z= 3304 ig y = 310 | covered for its ae anticipated needs ge 290 4 for FY 07 an
Slide 17: Electricity retail provides opportunity for growth in generation
Origin’s electricity retail business provides a substantial opportunity for growth in generation Hedge Cover Retail Load Jemperature Swing Load Expansion Options MW Expansion at existing sites and permitted greenfield opportunities would increase Origin’s own generation to ~50% of purchase requireme
Slide 18: New Zealand requires new generation; Contact geothermal
New Zealand is also requiring new generation in the medium term with Contact ideally placed to further develop its geothermal resource... .. and has a permitted site at Otahuhu C near Auckland
Slide 19: Expansion opportunities requiring investment in Australia and New Zealand
These expansion opportunities would require investment of approximately $3 billion in Australia and $2 billion in New Zealand Australia Plants Fuel | Scale Indicative gross Status cost Quarantine Power Station Gas 120 MW $0.08 billion Under Construction expans’n Darling Downs Power Station | Gas 500
Slide 20: Gas Opportunities
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Slide 21: Eastern Australia gas demand and contracted supply
Origin’s supply / demand analysis for eastern Australia in 2001 showed large uncontracted demand creating perceived shortfall in local supply... Eastern Australian gas demand Eastern Australian gas demand Origin Energy / ACIL Tasman estimates 2006 Origin Energy estimates 2001 1000 30 [EX Uncontracte
Slide 22: Uncontracted 2P reserves available today
A significant volume of uncontracted 2P reserves are available today... 25,000 20,000 = va So So So = o i=] i=] (=) ? Petajoules (PJ) @ Qld fi NSW @ Gippsland m@ Cooper {3 Bass Otway Contracted Uncontracted 2P Remaining Additional Potential Source: Wood Mackenzie East Austratia Power & Gas Outlook t
Slide 23: Origin's reserves mostly natural gas, over 50% CSG
Approximately 90% of Origin’s reserves are natural gas, with over 50% coming from CSG, and amounting to around 14%* of eastern Australian 2P gas reserves Sales gas & LPG Condensate Crude oil Total ethane PJ Kt KbbI Kbbi Pje Mmboe 2P at 30 June 2005 1,986 1,667 20,266 6,992 2,220 384 Additions and re
Slide 24: Origin's CSG reserves and production
Origin currently carries around 1,400 PJ of 2P CSG reserves and is likely to book significant additional reserves over the next few years, with finding costs around $0.10 per GJ : y CSG Reserves . CSG Production ad = oo ~_ wt 2P Reserves (PJ} Annual Production {PJ} Ne om Ww fF CO a ee 2000 2001 2002
Slide 25: Gas retail and generation growth increase gas production
Origin’s gas retail business together with planned growth in generation provides a major opportunity to increase gas production... ToP to ACG 250 tag Buy from Origi: # Buy from Origin JV partners MM Buy from Id parties “ss Power Generatton SUSE 200 Reni oes as Power generation - potential for Origin
Slide 26: Offshore capex largely complete; BassGas commencing production
Capex on major offshore projects is now largely complete with BassGas commencing production 3 year Upcoming Work Program - LC Bass Basin HE SIT Boed0 sowie Wet vse FRERTE: Seabees 4b Selemic, 4 Well even | nin, aR Bass Strat wae Seismic, $ Weis [EARNER Barris 2e4b Sedamlc, $ Well_| =] 20-Setemc, 1 W
Slide 27: Kupe project progressing
The Kupe project is progressing with production expected in mid 2009 LEGEND EE? origin permit ‘ae, | Gas fiets Jind OE Feld Tasman See oy a | “0 [= Kit KUPE Northtand Basin 9 : Ni Taranaki — Piymoun Basin af] PML = Kupe Gas Project (50%) « Fabrication of the platform jacket in Thailand is near compl
Slide 28: Approved upstream projects capex spend
Origin’s currently approved upstream projects comprise a capex spend of approximately $1.3 billion and have only just begun to contribute to earnings in the current financial year Origin Energy - Approved Upstream Projects Scale Indicative gross cost {and Origin equity%) Status BassGas Project 20 PJ
Slide 29: Carbon Opportunities
Slide 30: Integrated approach to carbon opportunities
Origin has an integrated approach to carbon opportunities focussing on all aspects of the carbon chain Understand & measure Caicutate direct and indirect emissions across the supply chain Offset if emissions can not be reduced or contained offsetting is the way to reduce ones environmental 2” Commit
Slide 31: Measuring greenhouse gas emissions across the supply chain
To understand our impact we measure greenhouse gas emissions and look out for opportunities across our supply chain Production & Purchase Natural gas, LPG and other products Transportation Consumption 5 | Origin production 1.3 Mt Purchases 1.5 Mt , 2.1 Mt Gas Transported = and distributed Natural Ga
Slide 32: Advocacy role in climate change and carbon regime debate
Over many years Origin has taken an advocacy role in the debate surrounding climate change and a carbon regime. “ Carbon Neutrat COPCRC Researching CO2 as x Solar City iezuae; SeQUestration technologies ae fees AFL) The Business Case for Early Action weed ee by 2009 Australion Bastusss Howmitsbis oo
Slide 33: Investing in low carbon emission technologies
Origin is investing in low carbon emission technologies to meet future energy needs 2) Geodynamics Limited SSS SSS GS | Solar » $30m investment in a solar photovoltaic SLIVER project » Produced 75 and 150 watt SLIVER modules » Seeking partnership to accelerate the large-scale production of SLIVER te
Slide 34: Leadership in green energy sales and carbon responsibility
Origin has clearly established its leadership position in green energy sales and carbon responsibility... 400,000 Green Power Customers in Australia 350,000 5 MNarket @ Origin 300,000 4 only 250,000 4 200,000 + 150,000 4 100,000 4 50,000 4 o-4 « In December 2006 GreenPawer customers across Australia
Slide 35: Carbon Reduction Scheme supply portfolio
The Carbon Reduction Scheme is designed to make a difference by drawing on an extensive supply portfolio to support a broad range of products Supply Demand Renewable Generation Reduction Scheme = industrial Emission Reductions Fugitive Emission Reduction Ensuring that for every tonne of carbon offse
Slide 36: Continuing integration of Origin's business will drive growth
The continuing integration of Origin’s business is increasingly evident and will drive Origin’s growth in the years ahead origin
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Slide 38: For more information
For more information For more information on Origin Energy please contact Angus Guthrie Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61-2-8345 5558 Mobile: + 61-4-1786 4255 Alternatively visit our website www.originenergy.com,.au and follow the prompts to the Investo
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