Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (November 2012)
74 slides from Origin Energy's shareholder meeting presentation, Nov 12, 2012
Slide 1: 2012 Annual General Meeting
2012 Annual General Meeting 12 November 2012
Slide 2: 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 3: Important Notice
Important Notice Origin’s Full Year Financial Statements for the year ended 30 June 2012 are presented in accordance with Australian Accounting Standards. Segment results, which are used to measure segment performance are disclosed in Note 2 of the 2012 Full Year Financial Statements and are disclos
Slide 4: The Board: Ralph J Norris
The Board Ralph J Norris KNZM I d Independent d tN Non-executive ti DiDirector t 4|
Slide 5: The Board: Karen A Moses
The Board Karen A Moses E Executive ti DiDirector, t Fi Finance and d St Strategy t 5|
Slide 6: The Board: Bruce G Beeren
The Board Bruce G Beeren N Non-executive ti Director Di t 6|
Slide 7: The Board: Trevor Bourne
The Board Trevor Bourne I d Independent d tN Non-executive ti DiDirector t 7|
Slide 8: The Board: Grant A King
The Board Grant A King M Managing i Di Director t 8|
Slide 9: Company Secretary
Company Secretary Andrew C Clarke G Group General G l Counsel C l and dCCompany Secretary 9|
Slide 10: The Board: Helen M Nugent
The Board Helen M Nugent AO I d Independent d tN Non-executive ti DiDirector t 10 |
Slide 11: The Board: Gordon M Cairns
The Board Gordon M Cairns I d Independent d tN Non-executive ti DiDirector t 11 |
Slide 12: The Board: John H Akehurst
The Board John H Akehurst I d Independent d tN Non-executive ti DiDirector t 12 |
Slide 13: 2012 Annual General Meeting
2012 Annual General Meeting 12 November 2012
Slide 14: Chairman's Address
O origin Chairman’s Address 14 |
Slide 15: Outline
Outline 1. Origin as an integrated energy company 2. Reflecting on FY2012 performance 3. Energy policy and community expectations 4. Safety, diversity and philanthropic activity 5. Managing Director’s Address 6 Outlook 6. O l k 7. Conclusion 15 |
Slide 16: 1. Origin as an integrated energy company
1. Origin as an integrated energy company 16 |
Slide 17: Origin has built the leading Australian integrated energy company
Since de-merger g from Boral in 2000,, Origin g has built the leading g Australian integrated energy company … Integrated Supplier of energy An expanding supplier to to growing export portfolio of energy markets markets through energy i A in Australia t li and d A t li P Australia Pacific ifi resour
Slide 18: Substantial increase in free cash flows following Australia Pacific LNG completion
Origin expects to have a substantial increase in free cash flows following the completion of Australia Pacific LNG … … underpinning d i i continued ti d growth th th throughh a range off d development l t options that Origin is pursuing 18 |
Slide 19: 2. Reflecting on FY2012 performance
2. Reflecting on FY2012 performance 19 |
Slide 20: A strong increase in earnings reflecting NSW acquisition
A strong increase in earnings reflecting a full year contribution from the NSW acquisition … Statutory Profit $980 m up from $186 m Statutory EPS 90 6 cps 90.6 up from 19.6 19 6 cps Net items excluded from Underlying Profit $87 m up from ($487) m Underlying Profit $893 m up 33% from $673 m Underlyin
Slide 21: $5.2 billion in undrawn committed debt facilities and cash
Origin has $5.2 billion1 in existing undrawn committed debt facilities and cash … Origin Debt Maturity Profile as at 31 October 2012 2,500 • Unsecured Notes Undrawn committed debt issuance in US 144A facilities market – US$500m 2,000 Drawn debt ($492m) • Subordinated Notes in 1,500 Australian retail
Slide 22: 3. Energy policy and community expectations
3. Energy policy and community expectations 22 |
Slide 23: Stable policy environment needed for energy sector
In order for Australia’s energy and resources sector to deliver on the growing energy needs of the nation and the world ... ... it is imperative we have a stable policy environment that encourages investment, competition and innovation 23 |
Slide 24: Rising cost of energy and customer solutions
With the rising cost of energy impacting the community ... ... we are delivering d li i solutions l i that h provideid customers greater control of their energy use and cost 24 |
Slide 25: Relationships with landholders and local communities
Our relationships with landholders and the local communities in which we operate have been enhanced … … as we continue i to communicate i with i h government, regulators l and d the broader community about our approach to developing CSG 25 |
Slide 26: 4. Safety, diversity and philanthropic activity
4. Safety, diversity and philanthropic activity 26 |
Slide 27: Focus on preventing unsafe actions; Life Saving Rules
Origin will continue to focus on preventing unsafe actions and reinforcing safe behaviours ... ... and has launched eleven Life Saving Rules to help deliver a safe workplace for employees and contractors 27 |
Slide 28: Diversity and 2013 targets
Diversity is recognised in Origin’s Compass as intrinsic to the kind of company we are ... ... and our 2013 targets g span p equal q p payy and retention and the appointment of women to senior roles 28 |
Slide 29: Photo courtesy of The Smith Family
Photo courtesy of The Smith Family 29 |
Slide 30: Managing Director's Address
Managing Director’s Address 30 |
Slide 31: 1. Recent performance of the business
1. Recent performance of the business 31 |
Slide 32: Increased safety focus
We have continued to increase our safety focus … Safety Observations to 30 June 2012 35000 30000 25000 20000 15000 10000 5000 0 … with i h the h bbusiness i recording di more than h 3030,000 000 safety f observations b i 32 |
Slide 33: NSW assets drive growth in Origin's business
NSW assets drive growth in Origin’s business Leading retail position in Australia’s most populous state Eraring Power Station 33 |
Slide 34: Retail transformation: 2.6 million customers migrated
Retail transformation continued with 2.6 million customers migrated to a new billing and customer relationship management system … • Four large scale migrations totalling 2.6 million customers to the new SAP billing platform • Stabilisation activities underway with a focus on improving billing and e
Slide 35: Mortlake Power Station completion
Origin’s generation portfolio has been boosted by the completion of Mortlake Power Station Mortlake Power Station 500 Kv switch yard Mortlake Power Station 35 |
Slide 36: Recent investments in Contact's generation portfolio
Recent investments in Contact’s generation portfolio … Ahuroa g gas storage g facility f y Te Mihi Power Station development Stratford gas-fired peaking project …h have d delivered li d iimproved d portfolio f li fl flexibility ibili which hi h fl flowed d through to an increase in earnings 36 |
Slide 37: Investments to improve production facilities
We have made investments to improve the output of our production facilities … Otway onshore gas facility BassGas offshore platform … with BassGas recently returning to production, and the forward work program for the Mid Life Enhancement project being reviewed 37 |
Slide 38: Australia Pacific LNG
Australia Pacific LNG Condabri development Drilling completions LNG Tank A, September 2012 Pipeline 38 |
Slide 39: Australia Pacific LNG Upstream on track, 20% complete
Australia Pacific LNG Upstream on track and work 20% complete Coil-tubing drill rig Wellhead separator modules Water – brine treatment skid First pipe laid south of Miles Drilling Gathering Gas & Water Facilities Pipeline & Electrification • 127 Phase 1 operated • 788 of 1 1,100 100 operated • 6 (ou
Slide 40: Australia Pacific LNG Downstream on track, 23% complete
Australia Pacific LNG Downstream on track and work 23% complete Curtis Island site, October 2012 LNG Tanks Train 1 – Refrigeration compression columns Curtis Island Mainland / Dredging 1. Site preparation works well advanced • Roll-On Roll-Off facilities on Fisherman’s Landing and Curtis Island 2. E
Slide 41: Australia Pacific LNG milestones to first gas mid 2015
Australia Pacific LNG is on schedule to meet the below milestones to achieve first gas (LNG) in mid 2015 Upstream Milestones Date (CY) Downstream Milestones Date (CY) 2011 and 9 Pipeline Manufacture 2012 9 1st 1 t concrete t LNG T Tanks k A il 2012 April 9 1st concrete Train 1 foundations June 2012
Slide 42: Australia Pacific LNG's 2P reserves base continues to expand
Australia Pacific LNG’s industry leading 2P reserves base continues to expand … PJ 30,000 25,000 • 2P reserves increased over the year by 1,336 PJ to 13,111 PJ 20,000 • 3P reserves increased over the 15,000 year by 1,305 PJ to 16,047 PJ 10,000 5,000 - Estimated Requirements 1 1 3C 2C 3P 2P Ramp and
Slide 43: Exploration and Appraisal Activity
Origin expects to have a substantial increase in free cash flows following the completion of Australia Pacific LNG … Exploration and Appraisal Activity • Ironbark – evaluation activities continued, with surface facilities and gathering networks being installed to support the pilot well project • Ken
Slide 44: Large-scale renewable opportunities in international markets
Pursuing large-scale renewable opportunities in international markets with high prospects and access to growing demand … Chile Chile • 40% interest in Chile’s leading geothermal • Acquired 51%1 interest in one of Chile’s leading exploration company, company Energía Andina S.ASA hydroelectric develop
Slide 45: 2. Public policy and regulatory issues
2. Public policy and regulatory issues 45 |
Slide 46: Public policy and regulatory issues
Public policy and regulatory issues 46 |
Slide 47: Managing Director's Address
Managing Director’s Address 47 |
Slide 48: Chairman's Address
48 | Chairman’s Address O origin
Slide 49: Outlook
Outlook • In conjunction with full year results announced on 23 August 2012, Origin advised that based on then prevailing market conditions it expected: ¾ Underlying EBITDA to increase by around 10%; and ¾ Underlying Profit to be in line with the 2012 financial year. • H Having i reviewed i d actual
Slide 50: Chairman's Address
O origin Chairman’s Address 50|
Slide 51: 1. Financial Report
O origin 1. Financial Report 51|
Slide 52: Resolutions 2 to 5: Election and Re-election of Directors
Resolutions 2 to 5: Election and Re-election of Directors 52 |
Slide 53: Resolution 2: Election of Sir Ralph J Norris KNZM
Resolution 2: Election of Sir Ralph J Norris KNZM 53 |
Slide 54: Resolution 2: Ralph J Norris KNZM
Resolution 2: Ralph J Norris KNZM Independent Non Non-executive executive Director 54 |
Slide 55: Resolution 2: Proxy votes received
Resolution 2: Election of Sir Ralph J Norris KNZM Proxy votes received: For 514,256,791 514 256 791 Against 6,008,144 Open 15,142,903 Abstain 1,776,140 55 |
Slide 56: Resolution 3: Re-election of Mr John H Akehurst
Resolution 3: Re-election of Mr John H Akehurst 56 |
Slide 57: Resolution 3: John H Akehurst
Resolution 3: John H Akehurst Independent p Non-Executive Director 57 |
Slide 58: Resolution 3: Proxy votes received
Resolution 3: Re-election Re election of Mr John H Akehurst Proxy votes received: For 515,013,122 515 013 122 Against 5,114,386 Open 15,255,192 Abstain 1,801,282 58 |
Slide 59: Resolution 4: Re-election of Ms Karen A Moses
Resolution 4: Re-election of Ms Karen A Moses 59 |
Slide 60: Resolution 4: Karen A Moses
Resolution 4: Karen A Moses Executive Director 60 |
Slide 61: Resolution 4: Proxy votes received
Resolution 4: Re-election Re election of Ms Karen A Moses Proxy votes received: For 514,882,778 514 882 778 Against 5,327,968 Open 15,252,038 Abstain 1,721,173 61 |
Slide 62: Resolution 5: Re-election of Dr Helen M Nugent
Resolution 5: Re-election of Dr Helen M Nugent 62 |
Slide 63: Resolution 5: Helen Nugent
Resolution 5: Helen Nugent Independent p Non-Executive Director 63 |
Slide 64: Resolution 5: Proxy votes received
Resolution 5: Re-election Re election of Dr Helen M Nugent Proxy votes received: For 512,623,051 512 623 051 Against 7,611,349 Open 15,205,268 Abstain 1,744,289 64 |
Slide 65: Resolution 6: Remuneration Report
Resolution 6: Remuneration Report 65 |
Slide 66: Resolution 6: Proxy votes received
Resolution 6: Remuneration Report Proxy votes received: For 483,006,251 483 006 251 Against 35,936,017 Open 9,786,012 Abstain 3,152,679 66 |
Slide 67: Resolutions 7 & 8: Grant of long term incentives
Resolutions 7 & 8: Grant of long term incentives to Mr Grant King and Ms Karen Moses 67 |
Slide 68: Resolution 7: Long term incentives to Mr Grant A King
Resolution 7: Grant of long term incentives to Mr Grant A King – Managing Director 68 |
Slide 69: Resolution 7: Proxy votes received
Resolution 7: Grant of long term incentives to Mr Grant A King Proxy votes received: For 497,386,443 497 386 443 Against 22,931,679 Open 9,703,971 Abstain 2,230,020 69 |
Slide 70: Resolution 8: Long term incentives to Ms Karen A Moses
Resolution 8: Grant of long term incentives to Ms Karen A Moses – Executive Director 70 |
Slide 71: Resolution 8: Proxy votes received
Resolution 8: Grant of long term incentives to Ms Karen A Moses Proxy votes received: For 497,168,504 497 168 504 Against 23,084,261 Open 9,681,898 Abstain 2,331,252 71 |
Slide 72: Resolution 9: Approval of potential termination benefits
Resolution 9: Approval of potential termination benefits 72 |
Slide 73: Resolution 9: Proxy votes received
Resolution 9: Approval of potential termination benefits Proxy votes received: For 445,965,177 445 965 177 Against 73,559,817 Open 14,285,407 Abstain 2,797,868 73 |
Slide 74: 2012 Annual General Meeting
2012 Annual General Meeting 12 November 2012