Origin Energy Limited · ASX:ORG
Origin Energy — UBS Australian Utilities Conference 2010
26 slides from Origin Energy's conference presentation, Apr 29, 2010
Slide 1: ASX announcement cover note
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 29 April 2010 From Bill Hundy Pages 26 Subject PRESENTATION Attached for your information is a presentation being made at the UBS Australian Utilities Conference in Sydney by Karen Moses, Executive
Slide 2: Celebrating a decade of growth
For personal use only Celebrating a decade of growth Origin Energy 29 April 2010 UBS Australian Utilities Conference Sydney
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: Industry Context
For personal use only Industry Context
Slide 5: Electricity consumption and demand growth projections
Electricity consumption is projected to increase by 1.9% a year on average, whilst electricity demand is projected to grow much faster at 2.6% a year… For personal use only Energy & Demand Growth Projections • Growth in electricity consumption is 25% primarily driven by demographic, economic and pol
Slide 6: Renewable energy target will drive significant investment
The renewable energy target has bi-partisan support and will drive significant investment in renewable energy… For personal use only • Origin’s modelling suggests over 6,000 MW of new wind capacity to be built by 2020 to Represents mandated 2020 meet the RET in the absence of a renewable energy targ
Slide 7: Delay to CPRS shifts attention to energy efficiency
With a delay to the CPRS, attention is expected to shift to energy efficiency and other more “direct” action to reduce carbon… For personal use only • Currently there are energy efficiency certificate schemes in Victoria, South Australia and NSW and a plethora of energy efficiency subsidies and init
Slide 8: Good public policy should be market based and robust
Good public policy should be market based and robust with bi-partisan and multi-jurisdictional support... A number of policies have been introduced with good intentions to reduce carbon For personal use only emissions – for instance each State offers a different subsidy for small scale solar photovo
Slide 9: Eastern Australian domestic gas demand projected to double by 2030
Eastern Australian domestic gas demand is projected to double by 2030, primarily driven by an increased reliance on gas fired power generation… Annual Gas Demand PJ For personal use only • Domestic gas demand in Eastern 2,500 Australia is projected to grow by Impact of additional 3.3% a year on aver
Slide 10: Natural gas reserves in eastern Australia
Natural gas reserves in eastern Australia are sufficient to support both local demand growth and an export channel to market… For personal use only Source: 2007 – 2009 EnergyQuest; pre 2007 Origin Energy from company announcements …with continuing growth in CSG reserves expected through the maturati
Slide 11: Origin's position
For personal use only Origin’s position
Slide 12: Origin's electricity portfolio
Origin’s electricity portfolio is comprised of internal generation, generation under construction, long term contracts and hedges… Peak Demand and Supply Energy Demand And Supply 8,000 35,000 For personal use only 7,000 30,000 6,000 25,000 Energy GWh 5,000 20,000 MW 4,000 15,000 3,000 2,000 10,000 1
Slide 13: Pipeline of generation opportunities
Origin has developed a substantial pipeline of generation opportunities that is well placed to continue to grow… • Base load and peaking portfolio with a For personal use only lower average emissions intensity than the market • Gas fired generation development options provide Origin with opportuniti
Slide 14: Geothermal and solar technologies as alternatives to wind
Origin is pursuing the development of geothermal and solar technologies as potential alternatives to wind… Geothermal For personal use only • 30% non-operated interest in Innamincka Deeps Joint Venture targeting hot fractured rocks • 50% operated interest in Innamincka Shallows Joint Venture investi
Slide 15: Domestic equity and contracted gas portfolio
Origin’s domestic equity and contracted gas portfolio has been positioned to meet the long term demand from gas fired power stations and mass market customers… For personal use only Origin East Coast Domestic Gas Portfolio - Sources and Uses 250 Contract Flexibility 200 Third Party Contracts Origin
Slide 16: Export LNG through Australia Pacific LNG
Origin will access export LNG opportunities through Australia Pacific LNG which is uniquely positioned across known CSG production fairways… • Current production capacity now exceeds For personal use only 240 TJ/day (up to 87 PJ/year) and reserves maturation continues • McConnell Dowell Constructors
Slide 17: Retail
For personal use only Retail
Slide 18: Leading energy retailer in eastern Australia
Origin is a leading energy retailer across gas and electricity markets in eastern Australia and has over 15% of its gas and electricity customers electing to purchase green energy products For personal use only Market Share of Eastern Australian Gas and Electricty Market Share of Customers (1) Green
Slide 19: Distributed tri-generation solutions
Distributed tri-generation can provide customers with a low emission, energy efficient electricity, heating and cooling solution • Australia’s current tri-generation market is largely un-tapped with very low up-take against For personal use only global benchmarks • CSIRO projections suggest total di
Slide 20: Small and large scale solar growth
Origin’s small and large scale solar have continued strong growth as customers seek options to manage their energy solutions… • Sales of residential and commercial solar For personal use only installations in the December 09 half more than doubled compared to the December 08 half • Residential and c
Slide 21: Smart meters and smart grids
Smart meters may be part of a smart grid, but alone do not constitute one… For personal use only Source: DEWHA http://www.environment.gov.au/smartgrid/ … a smart grid requires very substantial investment in energy infrastructure and must be supported by appropriate policies 20
Slide 22: Increasing customer options and engagement
Properly supported, the increasing options available to customers may result in more active engagement in energy management… For personal use only Passive Informed & Active Two way Prosumers Consumers Consumers (consumer and producer = prosumer) Origin Adelaide Solar City In home display Example: Cr
Slide 23: Retail energy prices likely to increase
Retail energy prices are likely to increase, driven by current Government policy settings and increasing transmission and distribution network costs… Projected Composition of Retail Prices • Energy costs are increasing regardless of a For personal use only 100% carbon signal as international demand
Slide 24: Customer churn continues to increase
Customer churn continues to increase in key markets Electricty Market Churn 40% Electricity Market Churn 40% For personal use only Annualised Monthly Transfers 35% (3 Month Rolling Average) Annualised Monthly Transfers (3 Month Rolling Average) 35% VIC 30% 30% • Market churn has increased significan
Slide 25: Retail transformation progressing well
Retail transformation is progressing well with key milestones met to date For personal use only • Origin is transforming its Retail business to improve business process efficiency, optimise cost to serve and further enhance customer service • Origin’s transformation includes the implementation of ne
Slide 26: Further Information
For personal use only Further Information Angus Guthrie Group Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61 2 8345 5558 Mobile: + 61 417 864 255 Website www.originenergy.com.au
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