Origin Energy Limited · ASX:ORG
Origin Energy — Macquarie Australia Conference 2018
17 slides from Origin Energy's conference presentation, May 1, 2018
Slide 1: ASX cover fax: Macquarie Australia Conference Presentation
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 1 May 2018 From Helen Hardy Pages 17 Subject Macquarie Australia Conference Presentation Please find attached a release on the above subject. Regards Helen Hardy Company Secretary 02 8345 5000 Origi
Slide 2: Origin Energy Macquarie Australia Conference
For personal use only Origin Energy Macquarie Australia Conference Frank Calabria, CEO 1 May 2018
Slide 3: Important Notice
Important Notice For personal use only Forward looking statements This presentation contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events. Such statements are not statements of fact and there can be no certa
Slide 4: The market is responding
The market is responding For personal use only Increased supply Lower forward prices Increased competition Australian wind and solar capacity NSW forward baseload energy prices Market churn 12,000 $120 23% $110 10,000 22% $100 8,000 A$/MWh $90 21% $80 MW 6,000 20% $70 4,000 $60 19% $50 2,000 18% $40
Slide 5: National Energy Guarantee
National Energy Guarantee For personal use only We support the • Investment signal in low emissions and reliable generation at least objectives of the cost to Australian customers NEG • Embedded in National Electricity Law • Gives the market time to solve for material reliability gap Reliability • B
Slide 6: Our focus is clear
Our focus is clear For personal use only • Continued balance sheet repair Rebuilding the right to grow • Disciplined capital management • Reducing organisational complexity and cost • Smaller, simpler operating model Step change reduction in • Streamlined processes upstream costs at APLNG • Reducing
Slide 7: Disciplined capital management
Disciplined capital management For personal use only Debt/EBITDA1 • Upgraded credit rating action following 7x Lattice Energy sale and H1 FY2018 results 6x • Progressing capital management initiatives 5x − ~$20 million p.a. savings from cancelling Debt/EBITDA times 4x $2.9 billion of liquidity 3x In
Slide 8: APLNG continuing to perform
APLNG continuing to perform For personal use only APLNG upstream supply1 APLNG domestic price APLNG LNG price TJ/d Two-train 8 8 2,500 Train 1 operation operation al test al test 7 7 2,000 6 6 US$/mmbtu 5 5 A$/GJ 1,500 4 4 3 3 1,000 2 2 1 1 500 - - YTD YTD YTD YTD - Mar-17 Mar-18 Mar-17 Mar-18 Oct-1
Slide 9: Cost out progressing at APLNG
Cost out progressing at APLNG For personal use only Key Outcomes Initial Targets Metric June 2019 target run rate Cost reduction and Well cost1 A$m/well 1.2 productivity improvement Operating cost2 A$/GJ 1.0 Operating breakeven3 US$/boe <24 Distribution breakeven3 US$/boe <40 (1) Standard unfracked
Slide 10: Transforming the customer experience
Transforming the customer experience ‘Good Energy’ with customers at the heart of everything we do For personal use only More affordable Customers More Easier and sustainable smarter 9 1 May 2018 2018 Macquarie Conference
Slide 11: Addressing affordability today
Addressing affordability today Increasing supply and helping customers who need it most For personal use only Monthly generation output1 1,600 • Increasing Eraring output 12-15% in FY2018 1,400 • Supplying gas to bring 240 MW back online 1,200 in South Australia 1,000 • Contracting >1.1 GW of new re
Slide 12: Retail market remains competitive
Retail market remains competitive Defending market share and managing for value For personal use only Origin monthly net customer position Origin YTD customer activity (‘000 customers) 20,000 2,000 15,000 10,000 1,500 5,000 - 1,000 -5,000 -10,000 500 -15,000 -20,000 - FY17 FY18 Wins Retains • Net re
Slide 13: Making energy easier and smarter
Making energy easier and smarter For personal use only Price transparency with Origin Product innovation Savernator Origin App 12 1 May 2018 2018 Macquarie Conference
Slide 14: Positioned for a low carbon future
Positioned for a low carbon future For personal use only Origin Installed Renewable Capacity1 Electricity supply 20 15 TWh 10 optimise for movements in prices 5 and volatility - 1H17 1H18 Renewables Coal (Eraring) Gas Other Contracts Spot • Committed to halving emissions in line with the Paris 2°C g
Slide 15: Transitioning to a cleaner, smarter, customer-centric energy future
Transitioning to a cleaner, smarter, customer-centric energy future For personal use only • Gas to play a key role as a lower emissions firming fuel • Entering FEED for Ironbark Stage 1 in June 2018. Targeting first gas in FY2021/22 Upstream • Origin welcomes the decision by the NT government to lif
Slide 16: FY2018 guidance unchanged
FY2018 guidance unchanged For personal use only ✓ Energy Markets FY2018 EBITDA is expected to be in the range of $1.78 - $1.85 billion, provided that market conditions and the regulatory environment do not materially change − On track to increase Eraring output by 12-15% in FY2018 to 15.5 – 16 TWh ✓
Slide 17: Thank You
For personal use only Thank You