Origin Energy Limited · ASX:ORG
Origin Energy — Morgan Stanley Asia Pacific Summit 2008
34 slides from Origin Energy's conference presentation, Nov 11, 2008
Slide 1: ASX announcement cover fax
For personal use only To Company Announcements Office Facsimile 1300 300 021 Company Australian Securities Exchange Limited Date 11 November 2008 From Bill Hundy Pages 34 Subject PRESENTATION Attached for your information is a presentation being made by Ms Karen Moses, Chief Operating Officer to the
Slide 2: 2008 – Deepened Integration Leads to Company Transformation
For personal use only 2008 – Deepened Integration Leads to Company Transformation Morgan Stanley Asia Pacific Summit Singapore, November 2008
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: Agenda
Agenda For personal use only • Highlights • Australia Pacific LNG - CSG to LNG Joint Venture with ConocoPhillips • Valuation of Origin • Operating Highlights • Outlook 3
Slide 5: Highlights
For personal use only Highlights
Slide 6: Origin has been building its integrated business for a number of years
Origin has been building its integrated business for a number of years… For personal use only Fuel Retailer Generator A leading producer of gas in Largest owner and developer A leading wholesaler and Eastern Australia involved in of gas fired electricity retailer of energy & Australia’s the developm
Slide 7: Integrated business provides platform for strong financial performance
Origin’s integrated business has provided a platform for a strong financial performance and continuing underlying earnings growth 9,000 Revenue 1,500 EBITDAF For personal use only Compound annual growth rate: 26% Compound annual growth rate: 23% 7,500 1,200 6,000 900 $millions $millions 4,500 600 3,
Slide 8: Total Shareholder Return significantly in excess of ASX 100
Origin’s Total Shareholder Return has been significantly in excess of returns from the ASX 100… For personal use only Origin’s Compound Annual Growth Rate: 35% 7 … averaging 35% per annum from the demerger
Slide 9: A strong financial performance in a challenging year
A strong financial performance in a challenging year in wholesale gas and electricity markets… Revenue $8,275 million up 29% For personal use only EBITDAF (1) (2) $1,309 million up 12% Statutory Profit $517 million up 13% Underlying Profit $443 million up 20% EPS – Statutory 59.0 cps up 8% EPS – Und
Slide 10: A year of significant developments with progress on major projects
This has been a year of significant developments for Origin with progress on a number of major projects and initiatives… For personal use only • Commenced construction of the 630 MW Darling Downs Power Station and the Quarantine and Mt Stuart power station expansions • Acquired the 640 MW Uranquinty
Slide 11: Australia Pacific LNG - CSG to LNG Joint Venture with ConocoPhillips
For personal use only Australia Pacific LNG - CSG to LNG Joint Venture with ConocoPhillips
Slide 12: Transaction with ConocoPhillips confirms value of Origin's CSG position
Transaction with ConocoPhillips confirms the value and quality of Origin’s CSG position… • ConocoPhillips acquired a 50% share in Australia Pacific LNG, a CSG to LNG For personal use only Joint Venture with Origin, for A$8 billion including an up-front cash payment of A$6.9 billion and a carry for e
Slide 13: Transaction includes all of Origin's CSG reserves & resources
Transaction includes all of Origin’s CSG reserves & resources… For personal use only The transaction also includes: • CSG-related production facilities • Origin’s conventional interests of 44 PJe in the Denison Trough • Existing CSG sales contracts to Origin and third parties Some of Origin’s CSG re
Slide 14: Transaction confirms increasing valuations for CSG resources
Transaction confirms increasing valuations for large scale, high quality, well developed CSG resources capable of supporting multiple train LNG projects… For personal use only Trains 3 & 4 Additional Payments: A$1.4 billion Train 2 Additional Payment: A$690 million Train 1 Additional Payment:
Slide 15: Reserves and resources with significant exploration upside
… that also have significant exploration upside in acreage with attractive development economics Reserves & Resources Included in Transactions For personal use only Source: Origin based on company announced reserves position at the time of transaction announcements Notes: On 7/10/08 Arrow announced
Slide 16: Fully aligned transaction combining Origin and ConocoPhillips capabilities
Fully aligned transaction that combines Origin’s leading position in Australia’s largest CSG to LNG development… For personal use only Upstream LNG Plant LNG Marketing Domestic Gas Operator Origin ConocoPhillips Joint Venture Origin Ownership 50:50 50:50 50:50 50:50 Extent of All gas production LNG
Slide 17: Joint Venture will target first production in 2014
Joint Venture will target first production in 2014… Period Milestone • ConocoPhillips’ recent For personal use only development of Darwin LNG on 2009 Commence FEED time and on budget demonstrates Late 2010 Train 1 FID that it is well placed to fast track 2010/11 Train 2 FID this development 2014 Tra
Slide 18: Transaction transforms Origin's financial position
The transaction with ConocoPhillips transforms the financial position of Origin and provides immediate benefit to Origin’s shareholders For personal use only • Origin has declared an additional dividend of 25 cents per share fully franked to double the 2008 dividend (~A$225 million), providing a new
Slide 19: Valuation of Origin
For personal use only Valuation of Origin
Slide 20: Independent Expert valued Origin at $28.55 to $30.71/share
In September 2008 following the ConocoPhillips transaction the Independent Expert valued Origin at $28.55 to $30.71/share For personal use only $35.00 $30.71 Cash received from $28.55 ConocoPhillips $30.00 CSG Business • In response to the $25.00 Non-CSG Business takeover offer from BG Group, Grant
Slide 21: Operating Highlights
For personal use only Operating Highlights
Slide 22: Investments in new gas production areas to offset Cooper Basin decline
Over the last decade Origin has made a series of investments in new gas production areas to offset the anticipated decline of the Cooper Basin and other mature producing areas… For personal use only • The Cooper Basin is in decline as contract volumes begin to decrease • Origin’s CSG projects have r
Slide 23: Origin has been increasing CSG production to meet contracts
Origin has been increasing CSG production to meet contracted requirements… For personal use only • Origin’s equity share of CSG production reached 131 TJ/d by the year ending 30 June 2008, reinforcing the Company’s position as the largest CSG producer in Australia • At Spring Gully production contin
Slide 24: Committed to build additional 2,096 MW of power generation
Origin has committed to build an additional 2,096 MW of power generation, quadrupling generation capacity by 2010… MW Origin's Generation Capacity For personal use only 6,000 Darling Downs Power Station 560 • 704 MW of Operating capacity 5,000 • 1,850 MW of Committed capacity under 1,450 constructio
Slide 25: Developing a number of renewable energy options
Origin is also developing a number of renewable energy options… Geothermal For personal use only • Origin acquired a 30% joint-venture interest in Geodynamics main project in the Cooper Basin with an initial commitment of $106m to the project • Geodynamics have drilled three wells to-date and a four
Slide 26: Second largest energy retail business in Australia
Over the last decade, Origin has built the second largest energy retail business in Australia… For personal use only Gas & Electricity Customers Jun 08 Jun 07 Year end customer numbers (’000) 2,653 2,675 EBITDAF / Sales 9.9 % 9.2 % EBITF / Sales 9.2 % 8.4 % $ Per Customer: Gross Margin / Customer 29
Slide 27: Wipro Technologies selected as preferred partner for Retail systems
Origin has selected Wipro Technologies as its preferred partner for the next step in evolution of its Retail systems For personal use only • Wipro Technologies, the global IT services business of Wipro Limited (NYSE:WIT) has been selected as the preferred partner in an ongoing project to transform O
Slide 28: Leadership position in green energy sales
Origin has clearly established its leadership position in green energy sales A leading market position* and leading market products For personal use only Origin 30% • At 30 June 2008, Origin had more than • Origin launched its Carbon Pollution 423,000 green energy customers+ (up from Reduction Schem
Slide 29: Outlook
For personal use only Outlook
Slide 30: Growth based on strategy of fuel integrated generator and retailer
The continued growth of Origin is based on our strategy of being a fuel integrated generator and retailer of energy For personal use only Origin continues to invest in assets that grow the business, particularly in the upstream, generation and eventually LNG 29
Slide 31: Projects expected to make initial or increased contributions
In the coming year a number of the projects Origin has been developing are expected to make initial, or significantly increased, contributions to financial performance For personal use only • A full year contribution from the Otway Gas Project • A full year contribution from the oil and gas producti
Slide 32: Major projects expected to contribute after current financial year
Origin will continue to progress the development of several major projects which are expected to make contributions following the end of the current financial year For personal use only • The Kupe Gas Project in New Zealand which is targeting to commence gas production in September Quarter 2009 • Co
Slide 33: 2008 a transforming year with strengthened financial position
2008 has been a transforming year for Origin and its strengthened financial position will enable the company to fund its current growth programme… For personal use only • Origin’s integrated business provides a platform for strong financial performance and continuing growth • Following completion of
Slide 34: Further Information
Further Information For personal use only For more information on Origin 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 t
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