Company Announcements Office Facsimile 1300 135 638 To AS X - - PDF document

Origin Energy Limited ACN 000 051 696 • Level 45 Australia S quare, 264-278 George S treet, S ydney NS W 2000 GPO Box 5376, S ydney NS W 2001 • Telephone (02) 8345 5000 • Facsimile (02) 9252 1566 • www.originenergy.com.au

To

Company Announcements Office

Facsimile 1300 135 638 Company

AS X Limited

Date

19 June 2014

From

Helen Hardy

Pages

12

S ubj ect

CEN Presentation at UBS Conference Attached herewith is a copy of an announcement released to the NZX by Contact Energy today. Origin Energy holds 53.09%

• f quoted ordinary shares in Contact Energy Limited.

Regards Helen Hardy Company S ecretary

02 8345 5000 – helen.hardy@

• riginenergy.com.au

UBS Conference

Dennis Barnes Chief Executive Officer

19 June 2014

Disclaimer

This presentation may contain projections or forward looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks. Although management may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realised. Furthermore, while all reasonable care has been taken in compiling this presentation, Contact accepts no responsibility for any errors or omissions. This presentation does not constitute investment advice.

2

February 2014

3

• 1,000

2,000 3,000 4,000 5,000 6,000 1H 12 2H 12 1H 13 2H 13 1H 14 2H14* Generation volume (GWh)

Contact generation mix

Thermal Hydro Geothermal

Business set up to deliver stable cashflows

Focus on efficiency and lower capital expenditure will increase free cashflow

4

• Second largest electricity retailer in New

Zealand

• Competitive pricing across New Zealand
• Significant LPG and natural gas businesses

enhance Contact’s energy offering Second largest gas and electricity retailer in New Zealand Flexible portfolio allows management of variable operating conditions

• Generation evenly spread across hydro,

geothermal and thermal fuel sources

• Contact owns and operates New Zealand’s
• nly commercial gas storage facility
• Increasingly renewable portfolio with a

declining cost of energy

3,920 4,092 4,210 4,333 4,188 4,067 2,000 4,000 6,000 8,000 10,000 FY11 FY12 FY13 Mass market Commercial and industrial

Electricity sales

GWh

8,253 8,280 8,277

1 1

(1) Source: Contact results presentation and monthly operating statistics. * June 2014 generation mix projection

Current capital investment programme has come to an end

5

Te Mihi Power Station commissioned

• 166MW geothermal power station

commissioned May 2014 » Maximises resource consent at the iconic Wairakei geothermal field » Adds a net 114MW to Contact’s portfolio as first stage replacement for the 56 year old Wairakei plant

• Further reduces cost of energy

Retail transformation live

• SAP ‘go-live’ in the retail business April 2014

» Completes the SAP transformation of Finance, Procurement, Asset Management and Retail systems » Stabilisation proceeding better than planned

• Advanced segmentation model has been built

which will leverage the data capabilities of SAP

• System provides opportunities to lower our cost

to serve whilst enhancing customer experience

Methanol linked gas prices and a lack of long-term gas certainty have supported a transition from gas generation to geothermal and wind

6

• Trend of geothermal and wind displacing

thermal generation continues » Contact’s Te Mihi geothermal power station commissioned May 2014 (equivalent to ~11 PJ/a of gas from a CCGT power station) » MRP (Ngatamariki geothermal and Meridian (Mill Creek wind)

• Gas to methanol has absorbed

significant gas volumes. Methanex restarted the Waitara Valley plant and refined the Motunui plant, during 2013, increasing capacity to 90 PJe/year usage of natural gas

Geothermal Wind Gas Coal

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

New Zealand non-hydro energy supply (based on GWh of generation)

Electricity generation Cogeneration Methanex Other demand

50 100 150 200 250 2008 2009 2010 2011 2012 2013 2014 PJ

Sources of gas demand

(1) Source: New Zealand Ministry of Business, Innovation & Employment, and Contact Energy modelling (2) Source: New Zealand Ministry of Business, Innovation & Employment 1 2

Pohokura Maui Kapuni Kupe Mangahewa Other 20 40 60 80 100 120 140 160 180 200 2005 2006 2007 2008 2009 2010 2011 2012 2013 Production (PJ)

Gas production by field

Gas production has remained stable, despite extensive exploration, with no major gas discoveries for many years

7

• Gas to methanol (similar to gas to LNG in Australia) has supported gas prices in New

Zealand, driving an increase in gas exploration activity

2 4 6 8 10 12 14 16 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Years

Years of remaining reserves (P50)

1 1 (1) Source: New Zealand Ministry of Business, Innovation & Employment, and Contact Energy modelling

Thermal generation remains critical to supporting wind and hydro volatility

Contact has retained options to maximise the value of future gas contracts, with decisions driven by the market value of capacity

• Contact remains without any significant contracted gas for the 2015 calendar year

8

• A number of options exist to manage
• ur gas position beyond the end of 2014

» Contract additional gas with a preference for flexibility » Invest in the injection/extraction capacity of Ahuroa Gas Storage to improve management of contracted gas » Contract generation from third- parties to match sales

• Gas storage allows patient approach to

contracting new gas

• Contact is well placed to access further

geothermal generation if required » Tauhara consented (250 MW) - next largest and most competitive undeveloped resource

43 PJ 29 PJ 3 PJ Stored gas potential 17 PJ 10 20 30 40 50 CY13 CY14 CY15 PJ/year

Contact's contracted gas volumes

Take-

• r-pay

40 PJ Take-

• r-pay

24 PJ

A stable regulatory environment is important given the long-term nature of our business

9

• Labour-Green proposed reforms

» New Zealand election to be held 20 September 2014 » Opposition policies include a proposal to remove the wholesale market to reduce electricity prices » The current market structure is delivering competition and security of supply » Charging for water is an issue with broader implications than the electricity generation sector alone and needs careful consideration

• Carbon policy

» New Zealand’s Emissions Trading Scheme continues to operate » Government has not signed up to the second commitment period of the Kyoto protocol limiting access to all cheaper international units from 2015

• Transmission pricing

» Originally proposed to be introduced in 2016. Delays in the process makes introduction before 2017/18 seem unlikely

Summary

10

• Current capital and refinancing programme

complete

• Strong operational focus continues
• Competitive advantage in investment in

fuel and plant flexibility and enterprise wide systems

• Tauhara – next most competitive

generation development in New Zealand

Any questions?