Slide 1: Results Announcement Year Ended 30 June 2003 - Presentation
Origin energy To Company Announcements Office Facsimite 1300 300 021 Company Australian Stock Exchange Limited Date 20 August 2003 From Bill Hundy Pages 21 Subject Results Announcement Year Ended 30 June 2003 - Presentation This Transmittal is confidential. If you have received this document in erro
Slide 2: Final Results Announcement - Full year ended 30 June 2003
Final Results Announcement Full year ended 30 June 2003 20 August 2003 Outline ° ° Performance Highlights Financial Review Operational Review Outlook Uniess otherwise stated, all comparative data are in relation to the prior corresponding period, the financial year ended 30 June, 2002. Origin.
Slide 3: Financial highlights
Financial highlights « Total Revenue $3.4 billion up 38% « EBITDA $491 million up 21% « PAT $162 million up 26% « Basic EPS 24.8¢ up 23% + Free Cash Flow (FCF) $350 million up 37% « FCF per share 53.7¢ up 34% « Capex (incl.acquisitions) $524 million up 30% « Net Debt / Capitalisation 29% up from 28%
Slide 4: Operating highlights
Operating highlights » Higher contributions from retail following acquisition of CitiPower, favourable wholesale position and cessation of Gascor agency payments + Generation result boosted by Mt Stuart acquisition » Net oil production from the Perth Basin exceeds 500,000 barrels to date - strong pr
Slide 5: Profit & Loss
Profit & Loss Jun 03 Jun02 % change ($m) ($m) Total Revenue 3,352.3 2,428.8 38% EBITDA 491.3 404.6 21% EBIT 295.3 230.7 28% Net interest expense (48.7) (42.8) 14% Tax expense (80.2) (54.3) 48% Outside equity interests (4.4) (4.9) (12%) PAT 162.0 128.7 26% Earnings per share (cents) 24.8¢ 20.2¢ 23% F
Slide 6: Group EBITDA up 21% on strong Retail performance and contribution from Mt Stuart
Group EBITDA up 21% on strong Retail performance and contribution from Mt Stuart......... Segments* Jun 03 Jun02 % change ($m) ($m) Exploration & Production 187.6 185.2 1% Retail 232.1 166.8 39% Generation 48.3 30.2 60% Networks 23.4 22.5 4% Total 491.4 404.6 21% .....While Generation segment has be
Slide 7: Profit & Loss; Funding & Interest
Profit & Loss Jun 03 Jun02 % change ($m) ($m) Total Revenue 3,352.3 2,428.8 38% EBITDA 491.3 404.6 21% EBIT 295.3 230.7 28% Net interest expense (48.7) (42.8) 14% Tax expense (80.2) (54.3) 48% Outside equity interests (4.4) (4.9) (12%) PAT 162.0 128.7 26% Earnings per share (cents) 24.8¢ 20.2¢ 23% F
Slide 8: Tax reconciliation and free cash flow
Tax reconciliation Jun 03 Jun 02 ($m) ($m) Profit before tax 246.6 187.9 Prima facie tax 74.0 56.4 add non-deductible amortisation 12.6 16.5 less tax loss benefit 0.0 (11.3) less tax free income (6.2) (4.6) less other permanent differences (0.2) (2.7) equals Tax expense 80.2 54.3 Tax paid* (39.6) (2
Slide 9: Capital expenditure increased on the back of higher SIB and significant acquisitions
Capital expenditure increased on the back of higher SIB and significant acquisitions Jun 03 ($m) Jun 02($m) Stay in business 97.1 64.9 Growth Exploration & Production 128.8 74.3 Retail 19.2 69.8 Generation 3.7 46.0 Networks 0.0 0.1 Total capital expenditure 248.8 255.2 Acquisitions 275.6 148.0 Capex
Slide 10: Origin has steadily grown returns per share
Origin has steadily grown returns per share Cents per share 18] + Free cash flow per share up 34% reflecting the strong contribution of the Retail business and Mt Stuart + EPS is up 23% + A final dividend per share of 5¢ (franked to 2¢) brings total dividend per share to 10¢ (franked to 4¢} + Divide
Slide 11: E&P: EBITDA reflects steady gas production while oil from the Perth Basin makes initial contribution
E&P: EBITDA reflects steady gas production while oil from the Perth Basin makes initial contribution External Sales Revenue & EBITDA ($m) Revenue BJun-03 Jun-02 EBITDA Capex * * includes acquisitions [__] Page 19 + np o o g (wi$} xedey Perth Basin oil offsets sale of Bodalla assets and decline in oi
Slide 12: Net 2P reserves increase of PJe (5 times production)
Net 2P reserves increase of 433 PJe (5 times production} positions Origin to address gas market opportunities Proved and Probable Reserves (PJe*) 2P reserves at 30 June, 2002 1,140 plus Exploration success 82 plus Otway reserves upgrade 232 plus CSG acquisition (July ’02) 164 plus revisions & adjust
Slide 13: Significant progress in the Otway and Bass Basins
Significant progress has continued to be made in the Otway and Bass Basins BassGas Project (37.5%) Otway Gas Project (29.75%) Final Government & JV approval given Construction commenced in January 2003 - now 45% complete Total cost around $450 million to provide 20 PJ and over 1 million barrels of l
Slide 14: Oil and gas developments in the Perth Basin
Oil and gas developments in the Perth Basin have been commercialised with further drilling to come Geraldton aay Woodada \fH Facterti Wh 2 tap. key OCAAEpIN perANiE, Gas pipeting Gas Tels il fini + Hovea field successfully developed with facilities capable of producing in excess of 5000 bopd « Long
Slide 15: Retail business: all areas contributed to the result
Retail business: all areas contributed to the result Natural Gas Electricity LPG Revenue (A$m) 841 1,547 417 Gross Margin (A$m) 131 285 114 Sales - (PJ) 123 Sales - (TWh) 15 LPG (Ktonnes) 479 Total Sales (PJe) 123 54 24 Customer # (‘000) 986 851 200+ * Gross revenue received from customers {includin
Slide 16: A well structured portfolio of contracts enabled access to low pool prices
A well structured portfolio of contracts enabled access to low pool prices whilst maintaining a well covered position $60 $40 4 SAaWh $30 $20 $40 $50 4 Victorian Spot and Forward Contract Electricity Prices Histone Forward Curves - tend to reftact rolling average spot curve with offset nm FY O3/04 R
Slide 17: Generation: EBITDA up 60% to $48.3 million
Generation: EBITDA up 60% to $48.3 million on contributions from Mt Stuart and tolling agreement with Retail 100 + Acquired Mt Stuart in E 904 8 Jun-03 December 2002 ~ t Jun-O2Z =< 804 : 6 + Tolling agreement Be 70) means ail plant is eo 607 contracted with either z 50} 3°4 parties or Origin & 404 R
Slide 18: Origin has established a portfolio of renewable generation projects
Origin has established a portfolio of renewable generation projects that provide value in an uncertain environment Renewables - MRET GWh ¢ Solar: Origin SLIVER® Solar Celt Possible requirements technology tested and commercial viability established. Planning for pilot plant well advanced « Wind: Opt
Slide 19: SEA Gas pipeline: Steady progress made in construction
SEA Gas pipeline: Steady progress made in construction - on budget and on schedule with 530 km laid to mid August ‘en Adelaide Murray Brid Melbourne @ Geelonge:/, Cobden a \ a “fort Campbet 4 ‘, aPortiand oavarenaivictibs SEA Gas: Victoria to South Australia Gas Pipeline : Commissioning scheduled fo
Slide 20: Factors influencing the profit outlook for FY04
There are a number of factors influencing the profit outlook for FY ’04......... . Positives Negatives « Increased oil production « Gas production volumes will from the Perth Basin + Full integration of the CitiPower business will reduce costs . *« Compared to prior period no Gascor payments + Full
Slide 21: Long term goal of EPS growth of 10-15% pa
Origin maintains the long term goal of achieving EPS growth of 10-15% pa through sound strategy, effective acquisitions and internally generated growth............ 600 + Growth of the retail business has delivered significant value and may » 5004 now plateau for a period § 400 4 + A modest decline i