Origin Energy Limited · ASX:ORG
Origin Energy — Debt Investor Presentation (November 2011)
36 slides from Origin Energy's debt investor presentation, Nov 15, 2011
Slide 1: ASX facsimile cover: Origin Energy Notes - Presentation
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 15 November 2011 From Helen Hardy Pages 36 Subject ORIGIN ENERGY NOTES - PRESENTATION Please find attached a release on the above subject. Regards Helen Hardy Company Secretary 02 8345 5023 – helen.
Slide 2: Origin Energy Notes Presentation
For personal use only Presentation ORIGIN ENERGY NOTES November 2011 Peter Rice Group Treasurer Angus Guthrie Group Manager, Investor Relations
Slide 3: Important Notices
Important Notices The information contained in this document (including this Disclaimer) or discussed at the presentation (collectively, the Presentation) has been prepared by Origin Energy Limited (Issuer) in connection with the offer of Origin Energy Notes (Notes) (Offer). The Offer is made pursua
Slide 4: Contents
Contents For personal use only 1. Summary 2. About Origin 3. Financial information 4. Key features of Notes and key risks 5. Offer process 3|
Slide 5: Summary
For personal use only 1. Summary
Slide 6: Offer summary
Offer summary For personal use only • Origin Energy Limited Issuer - S&P/ASX 20 company with a market capitalisation of $15.6 billion(1) - The leading integrated energy company in Australia(2) • Origin Energy Notes (“Notes”) Security • Dated, unsecured, subordinated, cumulative notes Offer size • $5
Slide 7: Notes summary
Notes summary Issuer • Origin Energy Limited For personal use only Security • Origin Energy Notes (“Notes”) Issue price • $100 per Note Maturity date • 20 December 2071, unless redeemed earlier First call date • 20 December 2016 • Floating rate, unfranked cash payments Interest payments • Payable qu
Slide 8: Origin highlights
Origin highlights For personal use only • Leading energy retailer with the largest retail customer base(1) in Australia Integrated supplier to energy • Large, flexible and diversified generation portfolio across multiple fuel sources markets in Australia and and geographic regions New Zealand • Dive
Slide 9: About Origin
For personal use only 2. About Origin
Slide 10: Origin is the leading Australian integrated energy company
Origin is the leading Australian integrated energy company(1) For personal use only • Listed in the S&P/ASX 20 index with a market capitalisation of approximately $15.6 billion(2) and over 5,200 employees(3) • Australia‟s largest energy retailer, servicing approximately 4.5 million electricity, natu
Slide 11: Origin's strategy has delivered growth in underlying earnings
Origin‟s strategy has delivered growth in underlying earnings through the deployment of capital in value enhancing activities (3) (2),(3) For personal use only Underlying EBITDA CAGR 19%(1) Underlying Profit CAGR 22%(1) Productive capital & Free cash flow(3),(4) Productive capital(4) by segment, FY2
Slide 12: An investment in Origin provides access to stable cash flows
An investment in Origin today provides access to stable cash flows from Origin‟s energy markets business For personal use only • Integrated supplier to energy markets in Australia and New Zealand • Australia‟s largest integrated energy retailer(1) with a diverse generation portfolio and fuel supply
Slide 13: Integrated supplier to energy markets in Australia and New Zealand
For personal use only Integrated supplier to energy markets in Australia and New Zealand
Slide 14: Consistent growth as a fuel-integrated generator and retailer
Origin has delivered consistent growth as a fuel-integrated generator and retailer in domestic energy markets in Australia and New Zealand For personal use only Fuel Generation Retail Extensive fuel Australia’s largest Australia’s largest energy position generation portfolio(1) retailer(2) • Strong
Slide 15: Largest energy retailing business in Australia
With 4.5 million electricity, gas and LPG customers, Origin has the largest energy retailing business in Australia(1)… For personal use only • Origin has grown its market share predominantly through acquisition of incumbent retailers and through an organic customer management and growth strategy NEM
Slide 16: Largest physical and contracted generation capacity in the NEM
Origin is now the owner of the largest physical and contracted generation capacity in the NEM… For personal use only Average market Carbon Intensity(2) by NEM Market Share of Generation Capacity(1) Generator Type(3) NEM Market Share of Generation Capacity (3),(4) Origin Brown Coal TRUenergy Black Co
Slide 17: Origin has progressively built its fuel position
Origin has progressively built its fuel position, focussing on gas resources close to markets with potential for demand growth Origin and Australia Pacific LNG 2P Reserves as Production history For personal use only at APLNG Origin and 30 June 2P2011 (1),(2) Reserves(1)(2) PJe PJe mmboe mmboe 140 CS
Slide 18: 52.8% interest in Contact Energy
Origin owns a 52.8% interest in Contact Energy, one of New Zealand‟s leading integrated energy companies For personal use only Fuel Generation Retail Fuel Retailer • Contact Energy buys natural • Contact Energy has 10 owned • Contact Energy has gas from a number of gas and operated power stations ap
Slide 19: Australia Pacific LNG
For personal use only Australia Pacific LNG Artist’s impression of the LNG facility on Curtis Island Origin and Australia Pacific LNG exploration and production permits in the Surat and Bowen basins
Slide 20: Australia Pacific LNG is a strong and aligned joint venture
Australia Pacific LNG is a strong and aligned joint venture that combines Origin‟s Australian CSG experience and ConocoPhillips‟ extensive LNG and CSG capabilities… For personal use only • Australia‟s largest integrated • Integrated energy company • Integrated energy and chemical company energy comp
Slide 21: Australia Pacific LNG major milestones and FID
Australia Pacific LNG has achieved a number of major milestones, culminating in FID on the first phase of its project in July 2011… For personal use only State and Federal approvals of Environmental Impact Statement Binding agreement with Sinopec for 20 year 1-train LNG off-take agreement and Si
Slide 22: An expanding portfolio of energy resource opportunities
For personal use only An expanding portfolio of energy resource opportunities
Slide 23: Expanding and diversified portfolio of energy resource opportunities
Origin is targeting further growth through an expanding and diversified portfolio of energy resource opportunities For personal use only GAS GEOTHERMAL HYDRO WIND SOLAR • Domestic, as • Geothermal • Evaluation of a • Holds up to • Development well as development in hydro-electric 3,000 MW of of sola
Slide 24: Financial information
For personal use only 3. Financial information
Slide 25: Origin has a strong financial profile
Origin has a strong financial profile For personal use only Key capitalisation metrics FY2010 FY2011 Cash 823 728 Total assets 21,834 26,640 Interest bearing liabilities 3,486 4,788 Total liabilities 10,396 13,124 Total equity 11,438 13,516 Key earnings and cash flow metrics FY2010 FY2011 Revenue 8,
Slide 26: Strong balance sheet and diversified debt maturity portfolio
Origin has a strong balance sheet and a diversified debt maturity portfolio with $4.6 billion(1) of undrawn liquidity available For personal use only Origin aims to maintain a diverse debt portfolio with access to a range of debt markets Origin actively manages its funding position and, as requi
Slide 27: Key features of Notes and key risks
For personal use only 4. Key features of Notes and key risks
Slide 28: Key features of Notes
Key features of Notes For personal use only • Unfranked, cumulative, cash payments • Floating rate, payable quarterly, subject to deferral Interest • Calculated as Bank Bill Rate + Margin payments • Margin will be determined under the Bookbuild (expected range of 4.0% to 4.5% pa) • Equates to an ini
Slide 29: Interest deferral
Interest deferral For personal use only • Origin may defer an interest payment at its discretion Optional • Optionally deferred interest payments may generally be paid at any time, and are intended to deferral be paid no later than 5 years from the date of initial deferral • Whilst any optionally de
Slide 30: Key risks
Key risks Risks associated with Notes include: Risks associated with Origin's business include: Notes are subordinated obligations There may be a shortfall of funds to pay all amounts ranking senior to and equally with Notes Volatility in wholesale electricity prices in an event of insolvency of Ori
Slide 31: Offer process
For personal use only 5. Offer process
Slide 32: Offer structure
Offer structure For personal use only For institutional investors who have been invited by UBS or Macquarie to Institutional Offer bid for Notes under the Bookbuild For Australian resident retail clients of Syndicate Brokers who have Broker Firm Offer received a firm allocation under the Bookbuild •
Slide 33: Key dates
Key dates For personal use only Key dates for the Offer Lodgement of prospectus with ASIC 15 November 2011 Bookbuild to determine the Margin 22 November 2011 Announcement of Margin and lodgement of replacement prospectus with ASIC 23 November 2011 Opening Date for the Offer 23 November 2011 Closing
Slide 34: Key contacts
Key contacts For personal use only Origin Energy Peter Rice Group Treasurer (02) 8345 5308 Angus Guthrie Group Manager, Investor Relations (02) 8345 5558 Joint Lead Managers Adam Vise adam.vise@anz.com (03) 9273 3880 Tariq Holdich tariq.holdich@anz.com (02) 9226 6946 Truong Le truong.le@cba.com.au (
Slide 35: End notes
End notes Slide 5 (1) As at 11 November 2011 (2) By market capitalisation, share of NEM scheduled generation and number of customer accounts as at 30 June 2011 For personal use only Slide 6 (1) Based on an indicative Bank Bill Rate of 4.7% pa Slide 7 (1) By market capitalisation, share of NEM schedu
Slide 36: End notes
End notes Slide 15 (1) Includes the NEM registered capacity of scheduled market generation as at 30 June 2011, including scheduled Mortlake Power Station which commences commercial operations in late 2011 (2) Carbon intensity is a measure of carbon dioxide (CO2) emissions per unit of energy that is
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