Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2014)
55 slides from Origin Energy's shareholder meeting presentation, Oct 22, 2014
Slide 1: 2014 Annual General Meeting
2014 ANNUAL GENERAL MEETING 22 October 2014
Slide 2: Important Notice
Important Notice 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 certainty of outcome in rel
Slide 3: The Board: Helen Nugent AO
The Board Helen Nugent AO Independent Non Non-executive executive Director 3
Slide 4: The Board: Bruce Beeren
The Board Bruce Beeren Non executive Director Non-executive 4
Slide 5: The Board: Maxine Brenner
The Board Maxine Brenner Independent Non Non-executive executive Director 5
Slide 6: The Board: Grant King
The Board Grant King Managing Director 6
Slide 7: The Board: Andrew Clarke
The Board Andrew Clarke Group General Counsel & Company Secretary 7
Slide 8: The Board: John Akehurst
The Board John Akehurst Independent Non Non-executive executive Director 8
Slide 9: The Board: Karen Moses
The Board Karen Moses Executive Director, Director Finance and Strategy 9
Slide 10: The Board: Bruce Morgan
The Board Bruce Morgan Independent Non Non-executive executive Director 10
Slide 11: The Board: Ralph Norris KNZM
The Board Ralph Norris KNZM Independent Non Non-executive executive Director 11
Slide 12: 2014 Annual General Meeting
2014 ANNUAL GENERAL MEETING 22 October 2014 12
Slide 13: Chairman's Address
O origin CHAIRMAN’S ADDRESS
Slide 14: Agenda
Agenda 1. Strategy 2 2. Capital allocation & management 3. Customers 4. Safety 5. Diversity 6. Foundation 7. Corporate social responsibility 14
Slide 15: 1. Strategy
1. Strategy Regional leader in energy markets Regionally significant position in Natural Gas and LNG production Growing position in renewable energy 15 15
Slide 16: 2. Capital Allocation & Management
2. Capital Allocation & Management 16 16 Type footer details here | DD Month YYYY
Slide 17: 3. Customers
3. Customers “Do business with “Help me manage “Talk to me in a “Get the basics right “Make it easy for me me in the way I my bills and energy language I and deliver on your to interact with yyou” prefer and on my p y needs” d ” understand” d t d” promises” i ” terms” 17
Slide 18: 4. Safety
4. Safety 18 Type footer details here | DD Month YYYY 18
Slide 19: 5. Diversity
5. Diversity O . ieee origin
Slide 20: 6. Foundation
6. Foundation 20 Type footer details here | DD Month YYYY 20
Slide 21: 7. Corporate Social Responsibility
7. Corporate Social Responsibility 2121Type footer details here | DD Month YYYY
Slide 22: Summary
Summary 1. Strategy 2 2. Capital allocation & management 3. Customers 4. Safety 5. Diversity 6. Foundation 7. Corporate social responsibility 22
Slide 23: Managing Director's Address
MANAGING DIRECTOR’S ADDRESS 23
Slide 24: 1. Performance
O origin 1. PERFORMANCE
Slide 25: Transformation complete, delivering
During the year we made strong progress on our 4 key priorities Improving the Performance of the Existing Businesses 9 Retail Transformation complete, delivering 9 Expansion of gas margins 9 Increased availability and production from upstream assets following investments operational and cash flow im
Slide 26: Our 2014 Full Year financial highlights
Our 2014 Full Year financial highlights Growth capex and cash Underlying EBITDA Group Operating Cash Flow contributions to APLNG Energy M k t Markets Contact E&P 50.0CPS LNG Corporate 26
Slide 27: Retail Transformation is complete
Retail Transformation is complete 9 SYSTEMS INTEGRATED INTO 1 ABOUT 3.9M RESIDENTIAL & SME CUSTOMERS NOW BILLED FROM SAP 27
Slide 28: We've made great progress over the last year
We’ve made great progress over the last year to ‘get the basics’ right Our focus on operational improvements is delivering higher quality customer outcomes We’ve significantly reduced Our back office teams are Our customer Satisfaction (CSAT) ombudsman complaints (per 1000 completing the majority of
Slide 29: And we're providing customers with new solutions
And we’re providing customers with new solutions to meet their energy needs Customers are taking up new products, solutions and payment options – a clear signal we are heading in the right direction. 30 JUNE ‘We’re Changing’ Retail campaign 573,000 621,000 579,000 93,000 2014 9No more exit fees 30 J
Slide 30: We're stabilising customer numbers
We’re stabilising customer numbers Electricity and Natural Gas Customer Accounts Electricity and Natural Gas Churn Rates 4,500 40% Origin, FY2013 Origin, FY2014 4,000 35% Market, FY2013 Market, FY2014 3,500 30% Customer Accounts ('000) 3,000 25% % Churn 2,500 2,917 2,876 20% 2,000 15% 1,500 10% 1,00
Slide 31: Value captured through signing of gas purchase and sale agreements
Value captured through signing of gas purchase and sale agreements 31
Slide 32: Increased availability and production from Upstream assets
Increased availability and production from Upstream assets following investments Gas and Liquids Production PJe mmboe 120 20.6 Production 17% 100 17 2 17.2 80 13.7 60 10.3 40 6.9 Kupe, New Zealand 20 3.4 0 0.0 FY09 FY10 FY11 FY12 FY13 FY14 Total Liquids SA Cooper & SWQ Perth Surat Bass Taranaki - On
Slide 33: Increased flexibility and lower generation costs at Contact Energy
Increased flexibility and lower generation costs at Contact Energy following investment 33 Te Mihi, New Zealand
Slide 34: APLNG - Upstream Project Progress
APLNG - Upstream Project Progress – 85%* complete and on track Condabri central processing facility here Condabri Central Gas Processing Facility Condabri Central water and brine ponds HY2015 Actual Progress Upstream Operated Goals Plan to 30 Sept 2014 Orana Train 1 mechanical completion p Q1 Accomp
Slide 35: APLNG – Downstream Project Progress
APLNG – Downstream Project Progress – 82%* complete and on track Condabri central processing facility here C ti IIsland Curtis l d LNG ttrains i Curtis Island LNG tanks HY2015 Actual Progress Downstream Operated Goals Plan to 30 Sept 2014 Accomplished: Sept 2014 Complete loading platform for LNG jet
Slide 36: Funding initiatives and improved liquidity position
Funding initiatives and improved liquidity position Origin g Debt & Bank Guarantee Maturityy Profile as at 30 September 2014* Loan & Bank Guarantees - Undrawn 4,500 4,000 Loans & Bank Guarantees - Drawn 3,500 Hybrids, US and EUR PP, 144A & medium term notes A$ million 3,000 2,500 A 2 000 2,000 1,500
Slide 37: Origin is increasing its exposure in conventional and unconventional resources
Australia forecast to emerge as world’s largest LNG exporter with around 85 mtpa1 directed to offshore markets by 2017, four times domestic gas demand Darwin LNG Exporting to Asia Ichthys Pacific markets where ~12 mtpa demand is set to Prelude ~ 3.5 mtpa almost double from 175 mtpa in 2013 to 325 mt
Slide 38: We're progressing opportunities in renewables
We’re progressing opportunities in renewables In Chile In Indonesia Energia Austral, 1000MW hydro Energia Andina, portfolio of 12 240MW Sorik Marapi geothermal project in Patagonia geothermal exploration projects JV in North Sumatra Proposed Cuervo dam site Tinguiririca access road Sorik Marapi 38
Slide 39: 2. Prospects
O origin 2. PROSPECTS
Slide 40: Queensland LNG Projects
Queensland LNG Projects O origin 40
Slide 41: 41
41
Slide 42: 2014 Annual General Meeting
2014 ANNUAL GENERAL MEETING 22 October 2014 42
Slide 43: Formal Business
O origin FORMAL BUSINESS
Slide 44: Financial Report
O origin FINANCIAL REPORT
Slide 45: Resolution 2: Election of Ms Maxine Brenner
RESOLUTION 2: Election of Ms Maxine Brenner Independent Non-executive Director 45
Slide 46: Resolution 2: Election of Ms Maxine Brenner
RESOLUTION 2: Election of Ms Maxine Brenner Maxine Brenner Independent Non Non-executive executive Director 46
Slide 47: Resolution 2: Election of Ms Maxine Brenner
RESOLUTION 2: Election of Ms Maxine Brenner Proxy votes received: For 560,363,372 (96.48%) A i t Against 6,327,189 6 327 189 (1.09%) Open 14,134,051 14 134 051 (2.43%) Abstain 1,428,588 47
Slide 48: Resolution 3: Remuneration Report
RESOLUTION 3: Remuneration Report 48
Slide 49: Resolution 3: Remuneration Report
RESOLUTION 3: Remuneration Report Proxy votes received: For 537,400,613 (93.28%) A i t Against 34,521,550 34 521 550 (5.99%) Open 4,181,302 4 181 302 (0.73%) Abstain 6,133,436 49
Slide 50: Resolutions 4 & 5: Equity grants
RESOLUTIONS 4 & 5: Equity grants to Managing Director Mr Grant A King & Equity grants to Executive Director Ms Karen A Moses 50
Slide 51: Resolution 4: Equity grants to Managing Director
RESOLUTION 4: Equity grants to Managing Director Mr Grant A King 51
Slide 52: Resolution 4: Equity grants to Managing Director
RESOLUTION 4: Equity grants to Managing Director Mr Grant A King Proxy votes received: For 523,103,009 (91.18%) A i t Against 37,071,200 37 071 200 (6.46%) Open 13,562,533 13 562 533 (2.36%) Abstain 8,516,459 52
Slide 53: Resolution 5: Equity grants to Executive Director
RESOLUTION 5: Equity grants to Executive Director Ms Karen A Moses 53
Slide 54: Resolution 5: Equity grants to Executive Director
RESOLUTION 5: Equity grants to Executive Director Ms Karen A Moses Proxy votes received: For 522,871,491 (91.14%) A i t Against 37,236,131 37 236 131 (6.49%) Open 13,572,997 13 572 997 (2.37%) Abstain 8,572,586 54
Slide 55: 2014 Annual General Meeting
2014 ANNUAL GENERAL MEETING 22 October 2014 55