Origin Energy Limited · ASX:ORG
Origin Energy — Macquarie Conference 2007
27 slides from Origin Energy's conference presentation, May 3, 2007
Slide 1: Origin Energy ASX announcement: Presentation to Macquarie Conference
Origin energy To Company Announcements Office Facsimite 1300 300 021 Company Australian Stock Exchange Limited Date 3 May 2007 From Bill Hundy Pages 27 Subject PRESENTATION Attached for your information is a presentation being made by Mr Grant King, Managing Director to the Macquarie Conference in S
Slide 2: Australia's leading fuel integrated generator retailer
Slide 3: Important Notice
Important Notice Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect and these statements speak only as of the date of this presentation. This presentation should not be relied upon as a recommendation to buy
Slide 4: A year of significant activity in the development and growth of Origin
This has been a year of significant activity in the continued development and growth of Origin Energy... « Termination of DLC Merger Implementation Agreement with Contact « Kupe Gas Project gets green light to proceed » Expansion of Spring Gully coal seam gas e Adelaide Solar City Project awarded to
Slide 5: A year of considerable change for the industry
.. ina year of considerable change for the industry... « Rise of CSG and demise of PNG pipeline « Privatisation of Queensland energy retail businesses and introduction of full retail contestability « Climate change issues become mainstream « Increasing wholesale electricity prices « Continued consol
Slide 6: Origin's strategy of integration across competitive segments
Origin’s strategy of integration across competitive segments of the energy industry is designed to better manage risk... .. and provides greater opportunities to grow. This strategic approach sees Origin well positioned to benefit from current changes Page 5
Slide 7: CSG reserves have grown from almost nothing to over 4,500 PJ
Since the mid 1990s CSG reserves have grown from almost nothing to over 4,500 PJ, with significant additions coming at regular intervals and estimates of a further 8,000 PJ* of CSG potential Reserves by Company# Production by Company# PJ per year Sales Gas Reserves (PJ CTipperary| _Elpongn i BHPB Ti
Slide 8: Origin carries around 1,400 PJ of 2P CSG reserves
Origin currently carries around 1,400 PJ of 2P CSG reserves and is likely to book significant additional reserves over the next few years 2000 CSG Reserves 24 1750 n CSG Production = 1500 a a ‘ce 18 my 1250 Gy} g = 15 1000 g g2 & 750 = 9 oa a 7 “500 2 61 250 4 <3] 04 2000 2001 2002 2003 2004 2005 20
Slide 9: The PNG pipeline project was premised on securing major gas customers
The PNG pipeline project was premised on securing major gas customers to underwrite the project, but these failed to materialise or were captured by CSG * Since 2002 CSG has secured major contracts for over 1,200 PJ that might otherwise have been targeted by PNG gas including: - Gas to Townsville (M
Slide 10: Origin has managed its gas purchasing and sales to leverage upstream development
Origin has managed its gas purchasing and sales to leverage additional upstream development by reducing contracts to buy gas and securing new loads - particularly in Queensland = ToP to ACQ. HEEB Buy from Origin 8 Buy from Origin JV partners MB Buy from 3rd parties scene Power Generation Retail Sak
Slide 11: Queensland gas and electricity FRC completes retail competition reform
The introduction of Queensland gas and electricity FRC in July 2007 all but completes retail competition reform... Gas Vic Electricity Gas SA Electricity Gas NSW Electricity Gas Qip Electricity Outer Bar Legend Inner Bar Queensland introduction of FRC and sale of major retail businesses leaves only
Slide 12: The acquisition of Sun Retail increased Origin's market share
The acquisition of Sun Retail significantly increased Origin’s share of this market and delivered real integration benefits The geographic diversity of the combined Origin and Sun Retail volumes reduces volatility of the load and therefore the cost of managing that volatility Origin estimates this b
Slide 13: With only NSW yet to privatise, the end game is becoming clear
With only NSW yet to privatise its electricity retail businesses the end game market participants are becoming clear... Eastern Australia Eastern Australia Market share customers: 1998 Market share customers: 2007 Origin Energy Origin Energy 23% Origin Energy Hl Non Government Companies WOrigin EAGL
Slide 14: Origin's advocacy role in climate change and a carbon regime
Over many years Origin has taken an advocacy role in the debate surrounding climate change and a carbon regime... O CRC Researching CO2 AFL) Carbon Neutral by 2009 Carbon | Reduction We’re planting 100,000 trees to say thank you ..as we believe carbon emissions are an unrecognised cost in energy pro
Slide 15: Measuring and reporting greenhouse gas emissions across the supply chain
We have been measuring and reporting our greenhouse gas emissions across our supply chain for several years Production & Purchase Transportation Consumption ~Electrici ‘steam 4Mt So 2 oS OM Emissions arise dai wea oe durin Electricity. purchased| : poe eceeoe: i generation 16.4 Mt | oo : a Tots Emis
Slide 16: Positioning Origin to respond to climate change concerns
We have positioned Origin to respond to increasing concerns around climate change by « Reducing our own emissions - Origin abates GHG emissions from its Australian offices, shops and LPG terminals - This year, extended our emissions reduction program to our air and vehicle travel - Pre-dominantly ge
Slide 17: Gas generation has the lowest CO2 intensity for baseload needs
Gas generation has the lowest CO, intensity of technology currently available for meeting medium term baseload needs CO, emissions reduced per unit electrical output 1600 7 Brown coal pulverised 4 fuel BI In use lack coal pulverised fuel Future 1400 | Brown coal Integrated Drying J Gasification Comb
Slide 18: Origin's leadership position in green energy sales and carbon responsibility
Origin has clearly established its leadership position green energy sales and carbon responsibility... 400,000 350,006 300,000 250,006 260,006 150,000 100.000 50,000 0 .. resulting in retail market differentiation and Green Power Customers in Australia M@ Market 7 @ Origin . Total Green Power custom
Slide 19: Voluntary Carbon Reduction Scheme
We have recently launched a voluntary Carbon Reduction Scheme (CRS) to facilitate companies further reduction in their greenhouse gas emissions Supply Deraried Renewable Generation Energy Efficiency _ Carbon Reduction Scheme Fuel switching Bie Sequestration Fugttive Emission Reduction Other + Promot
Slide 20: Contact's large renewable generation position
Contact has a large renewable generation position which is well placed to benefit from emerging carbon regimes... « Geothermal plans: - Planning two new stations, up to 260 MW of new capacity - NZ$1 billion investment programme subject to economic viability and discussion with Government ¢ Wind gene
Slide 21: Forward contract prices have moved substantially as water shortages persist
Forward contract prices have moved substantially as water shortages impact hydro and Queensland thermal generators S100 pesonenn socsuneenenanoens $95 Forward Curve | | == Monthly Average s00 Victorian Spot and Forward Contract Apr? Spot Price 585 Electricity. Prices . | |MnmEPC end Mar 07 “ & ] {|
Slide 22: Options to develop base load gas fired power stations
Origin has options to develop base load gas fired power stations at Darling Downs, Spring Gully and Mortlake... Energy Demand Peak Demand w a x g 5 we So v a 7 8 ra) y S& a 8 6 a w 8 38 3 Peak Demand and Installed capacity (MW) 8 <7 Annual Demand and Generation dispatched (Twh) a o Origin Retail Loa
Slide 23: A year characterised by transactions in the energy sector
The last year has yet again been characterised by a number of transaction in the energy sector... nar? uP um S' Rg e a vegan, Origin Busy Agr ger®. got od ; pel “GS anto® acquires $1.2, for PP ashes ey Sun Retail Werdiness! L my un Retai °rdiregs "an 6 for $1.2b a NRG Sells “ey, APA in oe ‘0 Austral
Slide 24: The deepening integration of Origin's business
The deepening integration of Origin’s business is increasingly evident... Energy Demand Peak Demand jacity (MW) Origin Retail Natural Gas Supplies (PU) 3s Peak Demand and Installed cap Annual Demand and Generation dispatched (Twh) ° Origin Retail Load ll Origin Generation Permitted Sites .. and will
Slide 25: Increasing returns for shareholders
This will continue to deliver increasing returns for #0 74 1 FCFPS 70 BEPS DPS = 60 & = % 50 a g 40 z 20 g 20 10 0 $10.00 Grigio Enoray 7 ; asxi00 Origin Energy Share Price Performance vs ASX100 $9.00 7 (1 March 2000 to 27 April 2007) $8.00 + $7.00 + $0.00 + t t t t t t t ° 4703/2000 26/02/2001 21/0
Slide 26: Ae tnnaneee
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Slide 27: For more information
For more information. For more information on Origin Energy please contact Angus Guthrie Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61-2-8345 5558 Mobile: + 61-4-1786 4255 Alternatively visit our website www. originenergy.com.au and follow the prompts to the Invest