Origin Energy Limited · ASX:ORG
Origin Energy — Macquarie Australia Conference 2018
16 slides from Origin Energy's conference presentation, May 1, 2018
Slide 1: Origin Energy Macquarie Australia Conference
Origin Energy Macquarie Australia Conference Frank Calabria, CEO 1 May 2018
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 market is responding
The market is responding Increased supply Lower forward prices Increased competition Australian wind and solar capacity NSW forward baseload energy prices Market churn 12,000 $120 23% $110 10,000 22% $100 8,000 A$/MWh $90 21% $80 MW 6,000 20% $70 4,000 $60 19% $50 2,000 18% $40 - $30 17% Oct-15 Apr-
Slide 4: National Energy Guarantee
National Energy Guarantee We support the • Investment signal in low emissions and reliable generation at least objectives of the cost to Australian customers NEG • Embedded in National Electricity Law • Gives the market time to solve for material reliability gap Reliability • Builds on existing mark
Slide 5: Our focus is clear
Our focus is clear • Continued balance sheet repair Rebuilding the right to grow • Disciplined capital management • Reducing organisational complexity and cost • Smaller, simpler operating model Step change reduction in • Streamlined processes upstream costs at APLNG • Reducing costs and improving p
Slide 6: Disciplined capital management
Disciplined capital management Debt/EBITDA1 • Upgraded credit rating action following 7x Lattice Energy sale and H1 FY2018 results 6x • Progressing capital management initiatives 5x − ~$20 million p.a. savings from cancelling Debt/EBITDA times 4x $2.9 billion of liquidity 3x Interim Target (3.0 - 3.
Slide 7: APLNG continuing to perform
APLNG continuing to perform APLNG upstream supply1 APLNG domestic price APLNG LNG price TJ/d Two-train 8 8 2,500 Train 1 operation operation al test al test 7 7 2,000 6 6 US$/mmbtu 5 5 A$/GJ 1,500 4 4 3 3 1,000 2 2 1 1 500 - - YTD YTD YTD YTD - Mar-17 Mar-18 Mar-17 Mar-18 Oct-15 Jun-16 Oct-16 Jun-17
Slide 8: Cost out progressing at APLNG
Cost out progressing at APLNG Key Outcomes Initial Targets Metric June 2019 target run rate Cost reduction and Well cost1 A$m/well 1.2 productivity improvement Operating cost2 A$/GJ 1.0 Operating breakeven3 US$/boe <24 Distribution breakeven3 US$/boe <40 (1) Standard unfracked vertical Surat well (2
Slide 9: Transforming the customer experience
Transforming the customer experience ‘Good Energy’ with customers at the heart of everything we do More affordable Customers More Easier and sustainable smarter 9 1 May 2018 2018 Macquarie Conference
Slide 10: Addressing affordability today
Addressing affordability today Increasing supply and helping customers who need it most Monthly generation output1 1,600 • Increasing Eraring output 12-15% in FY2018 1,400 • Supplying gas to bring 240 MW back online 1,200 in South Australia 1,000 • Contracting >1.1 GW of new renewable 800 supply by
Slide 11: Retail market remains competitive
Retail market remains competitive Defending market share and managing for value Origin monthly net customer position Origin YTD customer activity (‘000 customers) 20,000 2,000 15,000 10,000 1,500 5,000 - 1,000 -5,000 -10,000 500 -15,000 -20,000 - FY17 FY18 Wins Retains • Net retail customer loss of
Slide 12: Making energy easier and smarter
Making energy easier and smarter Price transparency with Origin Product innovation Savernator Origin App 12 1 May 2018 2018 Macquarie Conference
Slide 13: Positioned for a low carbon future
Positioned for a low carbon future Origin Installed Renewable Capacity1 Electricity supply 20 15 TWh 10 optimise for movements in prices 5 and volatility - 1H17 1H18 Renewables Coal (Eraring) Gas Other Contracts Spot • Committed to halving emissions in line with the Paris 2°C goal • Portfolio struct
Slide 14: Transitioning to a cleaner, smarter, customer-centric energy future
Transitioning to a cleaner, smarter, customer-centric energy future • Gas to play a key role as a lower emissions firming fuel • Entering FEED for Ironbark Stage 1 in June 2018. Targeting first gas in FY2021/22 Upstream • Origin welcomes the decision by the NT government to lift the moratorium and w
Slide 15: FY2018 guidance unchanged
FY2018 guidance unchanged ✓ Energy Markets FY2018 EBITDA is expected to be in the range of $1.78 - $1.85 billion, provided that market conditions and the regulatory environment do not materially change − On track to increase Eraring output by 12-15% in FY2018 to 15.5 – 16 TWh ✓ Origin’s share of APL
Slide 16: Thank You
Thank You es ©