Origin Energy Limited · ASX:ORG
Origin Energy — Shareholder Meeting (October 2006)
59 slides from Origin Energy's shareholder meeting presentation, Oct 25, 2006
Slide 1: Annual General Meeting
Annual General Meeting 25 October 2006 1
Slide 2: The Board – Roland Williams
The Board Roland Williams Non-executive Director Page 2 2
Slide 3: The Board – Bruce Beeren
The Board Bruce Beeren Non-executive Director Page 3 3
Slide 4: The Board – Grant King
The Board Grant King Managing Director Page 4 4
Slide 5: Company Secretary – Bill Hundy
Company Secretary Bill Hundy Company Secretary Page 5 5
Slide 6: The Board – Helen Nugent
The Board Helen Nugent Non-executive Director Page 6 6
Slide 7: The Board – Trevor Bourne
The Board Trevor Bourne Non-executive Director Page 7 7
Slide 8: Origin
Origin energy
Slide 9: Financial Statements
Origin energy Financial St
Slide 10: Chairman's Address
Origin energy Chairman’s
Slide 11: Origin's financial highlights
Origin’s financial highlights cents per share (A$) 80 CFPS 74 • Net profit after tax 70 EPS up 10% to $332 million DPS 63 60 54 53 • Free cash flow 50 up 30% to $583 million 42 42 40 40 • FCF per share up 18% 30 30 31 to 74 cents per share 25 20 19 17 20 15 18 • EPS down marginally 13 10 13 to 41.9
Slide 12: Origin has continued to invest in major growth projects
Origin has continued to invest in major growth projects, including… • Major Exploration and Production Spring Gully projects - coal seam gas - proposed power station − Spring Gully coal seam gas (CSG) − Acquired additional CSG interests SLIVER − BassGas Kupe Gas Field − Otway Gas − Kupe (New Zealand
Slide 13: Origin
Origin energy
Slide 14: Health and safety
Health and safety • Safety performance has not met targets • Our key safety measure of injury frequency rates(1) deteriorated from 5.0 in June 2005 to 5.5 in June 2006 • Safety remains a key focus (1) Number of injuries causing lost time (LTI) for employees and contractors and number of injuries def
Slide 15: Origin
Origin energy
Slide 16: Controlling interest in Contact Energy remains a rewarding investment
Origin Energy’s controlling interest in Contact Energy remains a rewarding investment • Strong profit and cash-flow performance in 2006 • Review of capital structure being undertaken • Development projects include – Otahuhu C tenders sought – Geothermal expansion – Hawea hydro project – Long term LN
Slide 17: Origin
Origin energy
Slide 18: Environment: The Business Case for Early Action
Environment The Business Case for Early Action fo 208 Page 18 alte « aye >elar olarCity 18
Slide 19: Origin
Origin energy
Slide 20: Managing Director's Address
Managing Director’s Address 20
Slide 21: Positioned in competitive segments of the Australian energy industry
Origin has positioned itself in the competitive (rather than regulated) segments of the Australian energy industry… Find Develop Produce Buy Sell … and by implementing this strategy effectively can better manage risk and enhance the range of growth opportunities Page 21 21
Slide 22: Strategies have resulted in significant growth for shareholders
These strategies have resulted in significant growth increasing value for shareholders 80 74 CFPS 70 EPS 60 DPS 63 • Free cash flow per share has grown at a CAGR 25% since listing 54 cents per share (A$) 53 50 42 42 • EPS has increased from 13 cents 40 40 per share in 2000 to 42 cents per 30 31 30 2
Slide 23: Find Develop Produce Buy Sell
Find Develop Produce Buy Sell We explore for gas and oil mostly close to domestic energy markets in Australia and New Zealand. Exploration in these areas provides new opportunities for Origin Energy to supply retail and wholesale markets. Page 23 23
Slide 24: Origin Energy Proved and Probable Reserves
Find Develop Produce Buy Sell Origin Energy Proved and Probable Reserves 3,000 • Origin has increased its 2P Reserves from less than 2,500 1000 PJe in 2001 to over 2400 PJe in 2006 Petajoules Equivalent (PJe) 2,000 • Growth has occurred in 1,500 many areas, particularly in CSG 1,000 • Our reserves r
Slide 25: Major development projects
Find Develop Produce Buy Sell The growth of the company tomorrow is taking form today through the identification, planning, approval and construction of major development projects. Highly capital intensive and taking five or more years to develop, these projects will help drive Origin Energy’s conti
Slide 26: Initial production from Spring Gully has started
Initial production from the Spring Gully field has started to monetise Origin’s substantial reserve base… • $200 million initial development on time, on budget and performing above expectation • Stages 3 & 4 will take production potential to over 85 TJ/d (equivalent to over 30 PJ per annum) • Around
Slide 27: BassGas and Otway Gas Projects
The BassGas Project has completed commissioning and is now contributing to profits… BassGas Project (42.5%) • Operated by Origin • Now on line • Approximate annual production – 20 PJ of sales gas – 1 million barrels of condensate – Over 65,000 tonnes of LPG Otway Gas Project (30.75%) • Operated by W
Slide 28: Kupe gas project has been approved
In New Zealand the Kupe gas project has been approved Kupe Gas Project (50%) • Final investment decision approved on 28 June • Technip awarded offshore and onshore contractor under Alliance arrangement Kupe • First gas expected by mid 2009 • Approximate annual production – 20 PJ of sales gas – 1.7 m
Slide 29: Option to build two base load gas fired power plants
Origin is creating the option to build two base load gas fired power plants in areas where gas is expected to be long… Power Plant Developments Solar • Two power projects being • SLIVER modules continue to be progressed, each up to 1000 scaled up MW at: • 75W module undergoing reliability testing, 1
Slide 30: Gas and oil producing assets and power stations
Find Develop Produce Buy Sell Gas and oil producing Power stations Region assets Region Origin Energy Origin Energy Osborne SA Worsley WA Cooper Basin SA/Qld Bulwer Island Qld Denison Trough Qld Mt Stuart Qld Surat and Bowen Basins Qld Quarantine SA Ladbroke Grove SA Moura (CSG) Qld Roma Qld Peat (C
Slide 31: Producing assets, generation plants and LPG terminals
Producing assets, generation plants and major LPG terminals in Australia and New Zealand Page 31 31
Slide 32: Contact Energy demand, generation and gas supply
Find Develop Produce Buy Sell 30 4,000 4,000 Annual Demand and Generation dispatched (Twh) Contact Gas Supply as at 30 June 2006 Energy Peak Peak Demand and Installed Capacity (MW) 80 25 Demand Demand 70 3,000 3,000 20 60 50 15 2,000 2,000 40 30 10 1,000 1,000 20 5 10 0 0 0 0 2005/06 2006/07 2007/08
Slide 33: Substantial portfolio of equity and contracted natural gas
In Australia Origin has a substantial portfolio of both equity and contracted natural gas available to it… Upstream sales to QAL, Incitec Pivot, Energex AGL, BP, Origin and gas purchase agreements from Significant gas contracts various parties from the South Australian and Queensland Cooper Basin Fi
Slide 34: Origin sells electricity, gas and LPG to over two million customers
Find Develop Produce Buy Sell Origin Energy sells electricity, natural gas and LPG to more than two million customers in Australia, New Zealand and the Pacific. In New Zealand, Contact Energy has more than 594,000 gas and electricity customers. Origin’s Retail business has continued to improve margi
Slide 35: GreenEarth range makes Origin leading green energy provider
In the Retail area our GreenEarth range of products has placed us as the leading green energy provider… • Over 100,000 green energy customers on a range of products • First greenhouse-gas neutral natural gas offering • First solar-electricity retail product • First to launch a light globe giveaway p
Slide 36: Origin
Origin energy
Slide 37: Health and Safety
Health and Safety 25 Injury Frequency Rates • Employee injury frequency 20 per million hours worked rates have improve July 2001 to June 2006 significantly since 2001 15 • However our recent performance has not continued this improvement 10 • Management is continuing to focus on safety as a critical
Slide 38: Origin
Origin energy
Slide 39: Chairman's Address Continued
Chairman’s Address Continued 39
Slide 40: The year ahead: continued progress on major projects
The year ahead will be marked by continued progress on the development of major projects… • Increase production from Spring Gully Coal Seam Gas Project • Commercial operation of the BassGas Project has commenced • Commencement of the Otway Gas Project has been delayed to the end of the March quarter
Slide 41: Financial Statements
Origin energy Financial St
Slide 42: Resolution 2: Adoption of Remuneration Report
Resolution 2: Adoption of Remuneration Report 42
Slide 43: Resolution 2: Adoption of Remuneration Report
Resolution 2: Adoption of Remuneration Report Proxy votes received For 345,863,796 Against 20,582,573 Open 14,554,651 Abstain 2,163,189 % of proxies which will be voted in favour* of the resolution on a poll 94.60% * Includes For proxies and Open proxies in favour of the Chairman, Directors and Secr
Slide 44: Origin
Origin energy
Slide 45: Resolution 3: Election of Directors
Resolution 3: Election of Directors 45
Slide 46: Kevin McCann
Kevin McCann Origin energy 46
Slide 47: Resolution 3: Election of Directors – Kevin McCann
Resolution 3: Election of Directors – Kevin McCann Proxy votes received For 359,651,141 Against 7,251,953 Open 14,547,375 Abstain 1,713,740 % of proxies which will be voted in favour* of the resolution on a poll 98.10% * Includes For proxies and Open proxies in favour of the Chairman, Directors and
Slide 48: Origin
Origin energy
Slide 49: Resolution 3: Election of Directors
Resolution 3: Election of Directors 49
Slide 50: Helen Nugent
Helen Nugent Page 50 50
Slide 51: Resolution 3: Election of Directors – Helen Nugent
Resolution 3: Election of Directors – Helen Nugent Proxy votes received For 365,708,403 Against 1,822,218 Open 14,651,130 Abstain 939,301 % of proxies which will be voted in favour* of the resolution on a poll 99.52% * Includes For proxies and Open proxies in favour of the Chairman, Directors and Se
Slide 52: Origin
Origin energy
Slide 53: Resolution 4: Grant of options and rights to Mr Grant King
Resolution 4: Grant of options and offer of rights to shares to Mr Grant King 53
Slide 54: Resolution 4: Grant of options and rights to Mr Grant King
Resolution 4: Grant of options and offer of rights to shares to Mr Grant King Proxy votes received For 294,753,190 Against 54,095,373 Open 6,709,243 Abstain 19,342,639 % of proxies which will be voted in favour* of the resolution on a poll 84.79% * Includes For proxies and Open proxies in favour of
Slide 55: Origin
Origin energy
Slide 56: Resolution 5: Increase in Directors' Fees
Resolution 5: Increase in Directors’ Fees 56
Slide 57: Resolution 5: Increase in Directors' Fees
Resolution 5: Increase in Directors’ Fees Proxy votes received For 349,131,728 Against 17,364,591 Open 6,665,791 Abstain 1,997,205 % of proxies which will be voted in favour* of the resolution on a poll 95.35% * Includes For proxies and valid Open proxies in favour of the Chairman and Secretary Page
Slide 58: Origin
Origin energy
Slide 59: Annual General Meeting
Annual General Meeting 25 October 2006 59