Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2022)
32 slides from Origin Energy's shareholder meeting presentation, Oct 19, 2022
Slide 1: Chairman's Address
CHAIRMAN’S ADDRESS ANNUAL GENERAL MEETING 19 OCTOBER 2022 It has been another extraordinary year in energy, shaped by several unprecedented events that influenced the external environment in which Origin operates. The world is facing an energy crisis prompted by the Russian invasion of Ukraine, with
Slide 2: Chairman's Address (continued)
the Beetaloo joint venture, and a strategic review of all other exploration permits, with an intention to exit those permits over time. This review excludes our interests in Australia Pacific LNG. These decisions will enable greater flexibility to allocate capital towards our strategic priorities, w
Slide 3: Chairman's Address: community and Eraring
The Origin Energy Foundation’s extraordinary work contributed $2.6 million during the year to organisations focused on education to help break the cycle of disadvantage and assist young people to reach their potential. Our people donated more than 7,000 hours of their time to Australian charities th
Slide 4: Zero emissions ambition
These targets further build on our strong performance over the last five years, where total Scope 1 and 2 equity emissions declined by 21 per cent between FY2017 and FY2022, against our existing science-based target. We intend to report our progress against our plan annually. We consider that our up
Slide 5: Government engagement and policy
We have had positive engagement with the new government, and we welcome a refreshed focus on energy policy and acknowledgement of the need to encourage investment in renewables, storage and reliable, dispatchable power to support the transition. The clear stated ambition for Australia to achieve net
Slide 6: Board retirement and conclusion
Bruce Morgan will retire at the conclusion of today’s meeting after serving tirelessly on the Origin board for the past 10 years. Bruce has made a lasting contribution to Origin over the past decade, and we will miss him. Thank you, Bruce, we wish you and Julie all the best with what comes next. In
Slide 7: CEO and Managing Director's Address
CEO AND MANAGING DIRECTOR’S ADDRESS ANNUAL GENERAL MEETING 19 OCTOBER 2022 I would like to extend my welcome to those joining online, and for shareholders in Sydney, it is wonderful to be gathered here again on Gadigal land for our Annual General Meeting. I wanted to begin my address by providing fu
Slide 8: FY2022 financial performance overview
It’s certainly an exciting time to be in energy, although not without challenges for Origin, the economy, and society more broadly. Having executed a number of strategic initiatives this year which Scott has already outlined; I believe Origin is in a stronger position to capture opportunities arisin
Slide 9: Energy Markets and Kraken platform
In Energy Markets, our domestic gas business also performed strongly. However, higher commodity prices, domestic supply interruptions, volatile wholesale electricity prices, higher fuel costs, and wet weather, combined to place pressure on earnings from the Energy Markets business during the financi
Slide 10: Customer solutions and renewable energy
Our energy mix and the solutions we offer customers are evolving and with the continued growth of decentralised generation and storage and the rise of internet-enabled devices, the way customers interact with us and use energy at home and in their businesses is evolving too. We are providing custome
Slide 11: Uluru Statement and earnings guidance
Importantly, we announced our public support for the Uluru Statement from the Heart, as part of our strong commitment to diversity, equity and inclusion, and in addition to the targets in our Stretch Reconciliation Action Plan – across the areas of Indigenous employment, recruitment, and cultural le
Slide 12: Energy transition closing remarks
Ultimately, we believe the energy transition will deliver cleaner and more affordable energy for all consumers, but we must work with all our stakeholders to balance the impact of the significant costs to transform the energy system, with the responsibility we have to provide affordable supply. In a
Slide 13: Annual General Meeting October 2022
Annual General Meeting 19 October 2022
Slide 14: Outline
Outline 1. Year in review 2. FY2022 performance highlights 3. Community contribution 4. Eraring closure 5. Climate Transition Action Plan 6. Government engagement 2 19 October 2022 Annual General Meeting
Slide 15: Year in review
Year in review 1. A number of strategic initiatives executed to strengthen Origin for the future: • Refreshed strategy and ambition to lead the energy transition • Completed sale of 10% interest in Australia Pacific LNG • Announced accelerated exit from coal fired power • Announced sale of Beetaloo
Slide 16: FY2022 performance highlights
FY2022 performance highlights • Solid underlying profit performance • Disciplined capital allocation • Total distributions to shareholders for the year of $750 million, including $250 million share buyback • Full year dividend of 29 cents per share • Adjusted net debt fell by $1.8 billion to $2.8 bi
Slide 17: Community contribution
Community contribution 1. Origin Energy Foundation contributed $2.6m to community organisations 2. 7,000 volunteer hours by our people 3. $720,000 given to charities through our employee matched giving program 5 19 October 2022 Annual General Meeting
Slide 18: Eraring closure
Eraring closure 1. Notice submitted to close Eraring as early as August 2025 2. Extensive engagement with employees 3. Continuing to focus safe, reliable operations 4. Progressing plans for 700MW battery onsite 5. $5m community investment fund 6 19 October 2022 Annual General Meeting
Slide 19: Climate Transition Action Plan
Climate Transition Action Plan 1. Excluded from these targets are the potential future emissions from any development of new gas fields. This is because there has been no decision, nor are we close to a decision, to produce those gas resources. However, any development would only occur where it was
Slide 20: Climate Transition Action Plan
Climate Transition Action Plan • Believe our medium-term emissions intensity target and long-term net zero emissions ambition are consistent with the goals of the Paris Agreement1 • Getting to net zero emissions by 2050 will be challenging for society and Origin • Believe decarbonisation provides si
Slide 21: Government engagement
Government engagement • Sound energy policy framework is of vital importance • Encouraged by new Federal Labor Government’s action on climate change, including the legislated 43% reduction in carbon emissions by 2030 target • Provides greater certainty to enable long-term investment decisions • Welc
Slide 22: CEO address
CEO address Frank Calabria 19 October 2022
Slide 23: Outline
Outline 1. An extraordinary year in energy 2. Financial performance 3. Operational performance 4. Strategy and priorities 5. Support for Uluru Statement from the Heart 6. Outlook 11 19 October 2022 Annual General Meeting
Slide 24: An extraordinary year in energy
An extraordinary year in energy • Extraordinary year in global and Australian energy markets • Action needed to sustain system reliability and accelerate energy transition • Actively engaged with governments and regulators on future policy settings • Our strategy and ambition is to lead the energy t
Slide 25: FY2022 performance highlights
FY2022 performance highlights Underlying Profit Underlying EBITDA Free Cash Flow $407 $2,114 $1,062 million million million (23.2 cps) Up $32 million with higher APLNG distributions Up $93 million. Statutory loss of -$1,429 million partly offset by lower Energy Markets operating Up from $2,036 milli
Slide 26: Operational performance
Operational performance Integrated Gas Energy Markets 116% 2P reserves replacement in FY2022 Achieved 98% start reliability for our fleet APLNG continued stable production and of generation assets low cost operations Customer accounts rose by 193,000 Strong field performance allowed focus to 4.5 mil
Slide 27: Our strategy and ambition
Our strategy and ambition Our purpose Getting energy right for our customers, communities and planet Our ambition To lead the energy transition through cleaner energy and customer solutions Our strategic pillars Unrivalled Accelerate Deliver reliable customer renewable and energy through Solutions c
Slide 28: Strategic pillars and priorities
Strategic pillars and priorities Unrivalled customer Accelerate renewable and Deliver reliable energy solutions cleaner energy through the transition • Leading brand providing lowest cost and • Accelerate growth in renewable energy • Provide the energy customers require at superior customer experien
Slide 29: Support for the Uluru Statement from the Heart
Support for the Uluru Statement from the Heart • Origin is proud to support the Uluru Statement from the Heart • Consistent with our strong commitment to diversity, equity and inclusion • An invitation to all Australians to help build a better future by supporting establishment of: • A First Nations
Slide 30: FY2023 outlook
FY2023 outlook The following guidance is provided on the basis that market conditions and the regulatory environment do not materially change FY22 FY23 guidance Energy Markets Underlying EBITDA A$m 365 500 - 650 Integrated Gas - APLNG 100% Production PJ 693 680-710 Capex and opex, excluding purchase
Slide 31: Energy Markets FY2024 outlook
Energy Markets FY2024 outlook • We anticipate further earnings growth in FY2024 Swap price embedded in NSW retail tariff $/MWh − Higher energy prices are being priced 250 Oct 2022 into customer tariffs − Earnings growth subject to coal contracting 200 risk and ~50PJ gas price review outcome May − Ne
Slide 32: 2022 AGM proxy summary as at proxy close
2022 AGM proxy summary as at proxy close Resolution** For Against Proxy’s Discretion Abstain* 2. Election of Dr Nora Scheinkestel 1,055,622,437 98.02% 11,338,844 1.05% 9,990,753 0.93% 1,199,929 3. Re-election of Mr Greg Lalicker 1,056,389,296 98.08% 10,645,798 0.99% 9,965,170 0.93% 1,151,699 4. Adop