Presentation Investor October 2011 Agenda TRUenergy overview - - PDF document

October 2011

Investor Presentation

Agenda

TRUenergy overview Strong, balanced business model Retail Scale and Quality Diverse generation portfolio supported by strong fuel position Strong financial discipline and position Summary

2

A strong portfolio of diversified assets

RETAI L ASSETS* Customers 2.8 million customer accounts ELECTRI CI TY ASSETS^ 5 ,6 1 3 MW Yallourn Coal-fired power station 1,480 Tallawarra A Gas-fired power station 420 Hallett Gas-fired power station 203 Delta Western Gentrader (Mt Piper & Wallerawang) Offtake Coal-fired power stations 2,400 Newport & Jeeralang Offtake from gas-fired plants 966 Waterloo & Cathedral Rocks Wind farms 144 PROSPECTI VE DEVELOPMENT^ 1 ,5 4 6 MW Tallawarra Stage B (permitted) 420 Marulan Gas-fired power station (permitted) 700 Mallee Solar Park Proposal for solar power station 180 Petratherm 10% equity in Paralana geothermal project 30 Stony Gap, Roberstown & Waterloo II Wind farms 216 GAS ASSETS^ Iona gas storage and processing plant 22 PJ gas storage facility Eastern Star Gas 30.8% (> 500PJ of equity CSG: Gunnedah

• Basin. Subject to shareholder & court approval)

Upstream gas Equity in Queensland CSM developments

A & B

* As at 30 June 2011

^ As at 30 September 2011

TRUenergy has evolved to be one of Australia’s leading vertically integrated and diversified energy com panies

3

Delivering financial scale

OVERVI EW

Equity $4.2bn (as at 30 June 2011) Total assets $9.2bn (as at 30 June 2011) Total liabilities $5.0bn (as at 30 June 2011) Draw n net debt $2.6bn (as at 30 June 2011) Revenue $3.0bn* (6 months to 30 June 2011) EBI TDAF Norm alised $379M* (6 months to 30 June 2011) NPAT Norm alised $148M^ (6 months to 30 June 2011)

Vertically integrated m odel provides broad optionality

• I ncludes only four months of NSW assets ^ Excludes NSW acquisition costs and stamp

duty and only four months of NSW contribution

A & B

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Notes 1. TRUenergy analysis of annual output for Origin and TRUenergy inclusive of estimated full year generation for Eraring/ Shoalhaven and Mount Piper/ Wallerawang 2. Source: Scheduled and Semi-Scheduled capacity for winter 2011/ 12 as per Australian Energy Market Operator (“AEMO”); Based on equity ownership (as per public filings); AGL capacity includes Oaklands Hill and Hallett 5 wind farms; Origin capacity includes Mortlake 3. AGL’s generation (GWh) does not include their 32.5% interest in Loy Yang; International Power includes their 92% interest in Hazelwood Power

AGL Origin TRUenergy

# Custom ers ( ‘0 0 0 ’s) Electricity 1,925 3,214 1,984 Gas 1,369 923 827 Generation Capacity ( MW ) 3,116 5,948 5,613 Generation Output ( MW h) ( 1 ) 4,938 18,620 31,416 Total capitalisation at 3 0 June 2 0 1 1 ( A$ m book net debt + equity) 6,813 17,799 6,819 S&P / Moody’s Credit Ratings BBB (Stable) / – BBB+ (Stable) / Baa1 (Neg) BBB (Stable) / –

A scale player in the industry post-NSW sale

MW

NEM- w ide Generation Capacity ( MW ) ( 2 )

5,948 4,870 4,006 3,056 5,613 3,330 3,116 2,000 4,000 6,000 8,000

Origin TRU MacGen Snowy Hydro Stanwell Corp. AGL Int. Power

Existing Capacity Post NSW Acquisition Government Owned

Existing NEM- w ide Energy output ( GW h) ( 3 )

GWh

11.2% 9.5% 9.1% 8.7% 8.3% 6.9% 2.4% 15.4% 0% 5% 10% 15% 20%

TRU MacGen I nt. Power Origin CS Energy Loy Yang Stanwell AGL

Pre-Acquisition NSW Acquisitions Government Owned

National Market Share % Shown in Blue Market Share / Million Customers

Electricity & Gas Retail Custom ers

TRUenergy now the national No. 2 electricity retailer, No. 3 gas retailer,

• No. 1 generator by output, and No.2 generator by capacity

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33% 4.1 27% 3.3 23% 2.8 17% 2.1 1 2 3 4 5 Origin AGL TRU Ot hers Exist ing Cust om ers Post NSW Privat isat ion

Managing Director Richard McIndoe (1,209 employees)

Chief Financial Officer Kevin Holmes Director Operations & Construction Michael Hutchinson Director Energy Markets Mark Collette Director Human Resources David Purvis Director Corporate and Government Affairs Kate Shea General Counsel & Company Secretary David Lambert Director Information Services Gary Martin Director Retail Adrian Merrick

Experienced m anagem ent team

Significant business and industry experience, track record of delivery

6

Evolution to reach full integration w ith scale

Yallourn/ AusPow er

Fully I ntegrated W ith Scale Horizontal I ntegration Vertical I ntegration

• Base load brown coal

generator

• Some vertical integration

through AusPower I&C retail business

• Risks associated with

single generator in a single market

• Generation expansion via

acquisition, greenfield development

• Generation portfolio in

different states, different fuel types, across merit

• rder
• Acquired direct interest in

mass market retailer

• I&C expansion to track

generation growth

• Gas plant expansion
• Development of Tallawarra

power station

• Portfolio optimisation via

power station asset swap with AGL

• Vertically integrated

company with national scale and balance of generation and retail

• In-house renewables and

gas expertise

• Reduced emissions

intensity

• Australia’s third largest

energy retailer

I nvestm ent Tim e

Acquired NSW retail and gentrader 2 0 1 1 Tallaw arra PS com m issioned 2 0 0 9 Acquired TXU Merchant Energy Business 2 0 0 5 Acquired Yallourn 2 0 0 1 I ona gas plant expansion 2 0 0 9 Proposed Eastern Star upstream CSG 2 0 1 1 Roaring 4 0 s w ind assets acquired 2 0 1 1

A clear strategy has resulted in a unique group of assets

Tallaw arra pow er station construction 2 0 0 6 Roaring 4 0 ’s w ind JV form ed 2 0 0 5 Hallett pow er station 2 0 0 7 Geotherm al investm ent 2 0 0 8 7

Key business strengths

Robust financial position and strong credit m etrics supporting investm ent grade rating Proven strong debt m arket and shareholder support Clear carbon strategy and actively m anaged environm ental issues Sound operating perform ance Experienced m anagem ent team Horizontally diversified retail and generation portfolio and fuel base Vertically integrated business m odel provides a natural hedge Strong m arket position TRUenergy

Robust business m odel

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Strong, balanced business m odel

Vertical integration is the key strategic driver

Mass Market Retail Load Sold Contracts Load Swing National Electricity Market Generation Energy Bought Contracts

Electricity

Operations & Construction Energy Markets

Hallett Tallawarra Ecogen Yallourn

Electricity

Channels to Market

Mass Market Retail Business Retail

Generation Capacity

Retail Energy Markets

I&C/Business Load Balanced Capacity Balanced Energy Available for Sale Sales

Mt Piper & Wallerawang Pricing, forecasting & green certificates Outage planning, bidding & dispatch

The TRUenergy portfolio is w ell balanced w ith significant scale and diversity

1 0

Vertical integration reduces risk and increases flexibility

2 0 1 1 Actual Electricity Position* Historical Generation and Retail Load

0.0 5.0 10.0 15.0 20.0 25.0 30.0

Long Short

TWh

Yallourn Swaps Vic Delta West NSW Qld/SA Gas Fired Peaking Gen & Caps Retail Load Swing

* As at 31 July 2011

Portfolio allow s us to m axim ise returns in a volatile m arket

1 1

2 4 6 8 10 12 14 16 18 2007 2008 2009 2010

TWh

Yallourn EcoGen Tallawarra Other Resi SME Business I&C

Merit Order

• Portfolio of generation assets with strength in both geographic and fuel diversity
• TRUenergy’s portfolio of assets and options is well positioned to lead the transition to a low

emissions future

• TRUenergy’s average weighted short run marginal cost (“SRMC”) to generate is slightly

below the NEM weighted average

Excludes semi scheduled capacity (such as wind power) and hydro, which effectively has zero SRMC, and assumes fuel cost is held constant Brown coal (excl. Yallourn) generators highlighted in brown Source: TRUenergy modelling. NEM Average line shown is the aggregate of the SRMC estimated for each generator multiplied by its capacity.

TRUenergy’s portfolio is low er than m arket average m erit order w ith or w ithout carbon

440 10,000 15,000 25,000 30,000 35,000 5,000 20 40 60 80 100 120 380 400 20,000

2 0 1 0 I ndicative Merit Order ( No Carbon Price)

SRMC ($/ MWh) Indicative capacity (MW) Yallourn: 1,480MW Brown Coal Mt Piper: 1,400MW Black Coal Tallawarra: 435MW Gas Wallerawang: 1,000MW Black Coal Newport: 500MW Gas

NEM average ($30.6/ MWh)

Hallett: 203MW Gas

1 2

Merit Order

• Portfolio of generation assets with strength in both geographic and fuel diversity
• TRUenergy’s portfolio of assets and options is well positioned to lead the transition to a low

emissions future

• TRUenergy’s average weighted SRMC to generate is slightly below the NEM weighted

average

Excludes semi scheduled capacity (such as wind power) and hydro, which effectively has zero SRMC, and assumes fuel cost is held constant Brown coal (excl. Yallourn) generators highlighted in brown Source: TRUenergy modelling. NEM Average line shown is the aggregate of the SRMC estimated for each generator multiplied by its capacity.

TRUenergy’s portfolio is low er than m arket average m erit order w ith or w ithout carbon

Hallett: 203MW Gas Jeeralang: 466MW Gas Tallawarra: 435MW Gas Mt Piper: 1,400MW Black Coal Wallerawang: 1,000MW Black Coal Yallourn: 1,480MW Brown Coal 10,000 15,000 20,000 460 25,000 30,000 35,000 20 40 5,000 80 100 120 400 420 140 Newport: 500MW Gas 60

2 0 1 0 I ndicative Merit Order ( $ 2 3 / t Carbon)

SRMC ($/ MWh) Indicative capacity (MW)

NEM average ($50.3/ MWh) 1 3

Generation

• Develop generation to support retail load
• Renewables opportunities
• Eventual replacement of carbon intensive generation

Project Pipeline

Technology Project State MW

Peaking gas Marulan

(development approval secured)

NSW 700MW Peaking gas Strzelecki

(site secured)

Vic Up to 800MW Intermediate gas Yallourn

(site secured)

Vic 1,000MW Intermediate gas Tallawarra B

(planning approval secured)

NSW 420MW Peaking/ Intermediate gas Greenfield sites QLD Up to 1,400MW Late Stage Wind Sites Stony Gap, Waterloo II, Robertstown SA 216MW in total Solar PV proposal Mallee Solar Park

(planning approval secured)

Vic Up to 180MW Geothermal Paralana SA 30MW pilot

TRUenergy’s strategy for sustainable grow th

Pipeline of projects to support retail position and m eet clean energy requirem ents

Brisbane Sydney Adelaide Melbourne

NSW Upstream gas; greenfield generation project opportunities Queensland Greenfield generation project opportunities SA Renewables focus VIC Gas developments; Renewables and greenfield generation project opportunities

1 4

Retail Scale and Quality

A strong retail position in a consolidated environm ent

VIC Retail TRUenergy and EA accounts

26% of market

SA Retail TRUenergy and EA accounts

12% of marketarket

Brisbane Melbourne Sydney Adelaide

Queensland Retail TRUenergy and EA accounts

5% of market

NSW/ACT Retail TRUenergy and EA accounts

34% of market TRUenergy Retail Footprint Total accounts ~ 2.8million Electricity accounts ~ 1.98millions Gas accounts ~ 827,000

The com bined business EnergyAustralia and TRUenergy creates a truly national leader w ith ~ 2 3 % share of the national energy m arket

1 6 As at 30 June 2011

Australian energy retail consolidation has led to three m ajor participants

1 2 3 4 5 AGL Origin EA TRUenergy Country Integral Simply Other Customers (# m)

Pre NSW Energy Asset Sales

Country Integral Simply 1 2 3 4 5 AGL Origin EA Lumo Other Customers (# m) TRUenergy

NSW asset sale w as the last opportunity for m ajor retail sector consolidation Market share by retailer in NSW

65% NSW Govt AGL Origin TRUenergy Other

Post NSW Energy Asset Sales

1 7 Lumo

• Drive profit growth and performance

improvements

• Protect strong incumbent position in Vic and NSW
• Organic growth in Queensland and SA
• NSW integration
• Back office improvements, including new customer

care and billing system to reduce cost to serve

Approach to retail m arket position

Strong position in key NEM retail m arkets

Brisbane Sydney Adelaide Melbourne

SA Maintain retail position and some organic growth VIC Protect retail position Queensland Key area for organic retail growth NSW Protect retail position Complete integration

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Diverse generation portfolio supported by strong fuel position

Yallourn 48% Tallawarra 14% Hallett 7% Ecogen 31%

W ith Delta W estern and w ind, TRUenergy has a m ore balanced portfolio of generation assets and fuel

• TRUenergy now has the largest privately-owned energy portfolio
• Delta Western increased generation capacity controlled by TRUenergy by almost 80%
• Reduced TRUenergy’s overall emissions intensity (~ 1.09 to 0.95 sent out vs NEM average

intensity of ~ 0.89)

Brown Coal Gas Black Coal Fuel Mix before Acquisition Fuel Mix w ith Delta W est and Roaring 4 0 s

TRUenergy’s portfolio m ix of brow n coal, black coal, gas fired and w ind generation broadly reflects the Australian generation sector on average

Fuel Mix in the NEM Wind Hydro Others

Yallourn 26% Wallerawang 18% Mt Piper 25% Ecogen 17% Tallawarra 8% Hallett 3.5% Wind 2.5% 43% 15% 21% 21% 3% 2%

Source: AEMO, AER 2010 2 0

• Working level interest of 20% in ESG permits
• Access to over 500 PJ of equity coal

seam gas from Gunnedah Basin

• Hedges rising gas price risk
• Potential development upside
• Experienced partner in Santos

Eastern Star Gas im proves upstream gas position

Ow nership Structure

Santos TRUenergy ESG ESG Perm its*

80% 100% 20%

* PEL 238, PAL 2, PPL 3, Wilga Park Power Station, PEL 433, PEL 434. ESG also has farm-in rights over PELs 6, 427 and 428 in NSW; and PELs 117, 121 and 122 in SA

Tallaw arra A&B Marulan Yallourn Strzelecki

2 1

W ind farm acquisitions and developm ent pipeline

Operational W aterloo South Australia 100% ownership 111MW Cathedral Rocks South Australia 50% ownership 66MW Advanced planning stage Other sites for developm ent options Stony Gap South Australia 100% ownership 123MW Robertstow n South Australia 100%

• wnership

75MW W aterloo I I Bangor (SA) South Australia One Tree Hill (NSW) 100% ownership Dry Plains (NSW) 18MW Bowmans (Vic) Yea (Vic)

• Renewable energy expected to exceed growth in thermal generation, underpinned by RET
• Estimated $25Bn of industry investment required to 2020
• Flexibility to meet REC through most cost effective source:

Build or contract Greater flexibility to m eet REC requirem ents

As at 30 September 2011 2 2

Fixed Price Period July 2 0 1 2 Carbon Scheme commences July 2 0 1 5 Converts to floating price ETS Price/ floor ceiling Initial emission targets period Novem ber 2 0 1 1 Pass Carbon Scheme Legislation (estimated) July 2 0 2 0 5% reduction target Operation Legislation July 2 0 1 8 Floating Price Period

Carbon Policy

Diverse portfolio and TRUenergy clim ate change strategy reduces carbon policy risk

2 0 0 7 - 2 0 1 0

Introduced a cap on carbon intensity and undertook im m ediate action to reduce em issions by 2010

• Sustainable reduction

in 370,000 tonnes of CO2 at Yallourn from 2007 to 2010

2 0 2 0

Cut em issions intensity by 1 / 3 of 2007 levels (from 1.2TCO2/ MWh to 0.8TCO2/ MWh)

2 0 3 5

Reduce em issions by 3 5 % on estimated 1990 baseline by share of the National Electricity Market

2 0 5 0

Reduce em issions by 6 0 % on estimated 1990 baseline by share

• f the National

Electricity Market

TRUenergy’s Targets

2 3

Strong financial discipline and position

*

I m proving financial perform ance

2 0 1 0 Perform ance ( 1 ) Revenue $3,415m 11% on 2009 EBITDAF $627m 25% on 2009 NPAT $202m 40% on 2009 Key drivers

• New projects – Tallawarra Power Station
• Sustained retail margins
• Improved asset performance
• Opex management and bad debt management

2 0 1 1 Perform ance ( 6 m onths to June 3 0 )

• The business continues to perform well in 2011
• Credit rating reaffirmed ‘BBB/ Stable’ by

S&P post NSW announcement

• 4 months contribution from NSW assets
• Excludes Roaring 40s, Petratherm and Eastern Star Gas and normalised to

exclude once off costs (eg NSW assets, Yallourn insurance, etc)

50 100 150 200 250 2008 2009 2010 1H 2010 1H 2011 A$m

CAPEX

200 400 600 800 2008 2009 2010 1H 2010 1H 2011 A$m

EBITDAF

CAGR 2008 ‐2010: 12.0% 29.5% (1) Normalised

1,000 2,000 3,000 4,000 2008 2009 2010 1H 2010 1H 2011 A$m

Revenue

CAGR 2008 ‐ 2010: 10.1% 70.8% 2 5

W eighted Average Debt Maturity is 4 .4 years

Debt Maturity Profile

59% 17% 24% Bank Facilities USPP A$ Bond

Supported w ith BBB stable credit rating and clear intention to m aintain prudent investm ent grade credit profile

Long-term and increasingly diversified debt facilities

• Credit rating upgraded in 2010 to ‘BBB/ Stable’ by S&P
• Total drawn net corporate debt of $2,616M as at 30 June 2011*
• First time USPP issuance in 2010
• “NSW” acquisition bridge $1.2bn + working capital $0.4bn
• 2011 refinancing of term maturities and “NSW” bridge debt (Total New Facilities= $2.05bn)
• Positioning for future debt capital markets issuance to diversify debt sources and tenor

Debt com position

2 6

* Excludes Cathedral Rocks non-recourse debt

Summary

Key business strengths

Robust financial position and strong credit m etrics supporting investm ent grade rating Proven strong debt m arket and shareholder support Clear carbon strategy and actively m anaged environm ental issues Sound operating perform ance Experienced m anagem ent team Horizontally diversified retail and generation portfolio and fuel base Vertically integrated business m odel provides a natural hedge Strong m arket position TRUenergy

Robust business m odel

2 8

Appendix

Plant Ow nership / Contract Capacity ( MW ) Role CO2 intensity ( kg/ kW h) Fuel Type and Arrangem ent

Yallourn (VIC) Own 1,480MW brown coal fired steam turbines (4 units) Baseload 1.40 Own the adjacent brown coal mine, operating licence to 2026 and reserves beyond 2032. Tallawarra (NSW) Own 420MW combined cycle gas turbine (gas and steam units) Base to intermediate 0.36 Supplied from portfolio of long term gas contracts Hallett (SA) Own 203MW open cycle gas turbines (12 units) Peak to super peak 1.06 Supplied from portfolio of long term gas contracts and/ or can be fired on Distillate Mt Piper (NSW) Contract 1,400MW black coal fired steam turbines (2 units) Baseload 0.81 Black coal contracts from mines in the region Wallerawang (NSW) Contract 1,000MW black coal fired steam turbines (2 units) Baseload 0.88 Black coal contracts from mines in the region Newport (VIC) Contract 500MW gas fired steam turbine Peak to intermediate 0.53 Supplied from portfolio of long term gas contracts Jeeralang (VIC) Contract 466MW gas fired steam turbines Peak 0.78 Supplied from portfolio of long term gas contracts

Sum m ary pow er station and fuel profile

Generation portfolio diversified by fuel type, location and role. Generation m ix supports retail load shape and reduces hedging costs and risks

3 0

Overview

• Base load, brown coal thermal plant at Yallourn (South East Victoria)
• Third largest power station in Victoria
• Four independent generating units
• Station located next to the TRUenergy-owned brown coal mine
• Secure, low-cost fuel with mining licenses until at least 2026
• Average availability since privatisation ~89%

2010 Achievements

• Key performance indicators results:

equivalent availability factor 89.5% forced outage rate 3.9%

• Record net generation of 11,644 GWh
• Unit 3 High/Intermediate Pressure turbine upgrade

delivered 15 MW increase for same full load steam flow

• Major contract awarded for installation of coal conveyor

infrastructure for new Maryvale field

`

Installed capacity Details 1,480MW 2 x 360MW 2 x 380MW CO2 intensity (kg/ kWh) 1.40

Yallourn output is equivalent to 2 3 % of electricity dem and in Victoria & 6 % across the NEM

Yallourn provides low cost baseload energy to supply retail custom ers in the NEM

3 1

Overview

• State-of-the-art combined cycle intermediate plant with capacity of 420MW
• Operation commenced on 23 January 2009
• Located on Lake Illawarra ~ 15 km south of Wollongong
• Emits 50-70% less greenhouse gas than traditional coal fired

generators – important generation asset in the transition to a lower carbon intensity

2010 Achievements

• Key performance indicators results:

equivalent availability factor 90.9% forced outage rate 3.6%

• Generation output of 2,550 GWh
• Station met heat rate target and air emissions targets for

NOx and CO2 intensity

Tallawarra Lands

• 600Ha site with potential for land development upside
• Pre-rezoning approval granted

`

Installed capacity Details 420MW Gas and steam turbines CO2 intensity (kg/ kWh) 0.36

Tallaw arra Pow er Station is one of the m ost efficient gas-fired pow er stations in Australia

Tallaw arra provides baseload to interm ediate electricity to the NEM

3 2

`

Installed capacity Details 203MW 12 open cycle gas turbines CO2 intensity (kg/ kWh) 1.06

Overview

• Hallett has an installed capacity of 203MW with 12 quick start open

cycle gas-turbine generators

• The gas is supplied to the station from the Moomba pipeline with back-

up diesel fuel stored on site

2010 Achievements

• All key performance indicators met including:

equivalent availability factor 96% start reliability 98.8% forced outage rate 0.54%

• Installation of an additional gas turbine with capacity of

23MW completed in 2011 increasing capacity to 203MW

Hallett is a peaking plant w hich can provide up to 5 % of South Australia’s electricity capacity

Hallett’s quick start-up provides risk m anagem ent against rapid dem and changes w ithin the custom er base

3 3

Mount Piper Wallerawang Newport Jeeralang

Fuel type Black coal Black coal Gas Gas Size (MW Capacity) 1,400 1,000 500 466 Merit Order Base load Peak load Contract capacity 1,340 960 500 466 Expiry of Operating Life 2043 2029 2019 2019 Carbon Intensity as generated 0.81 0.88 0.53 0.78

Delta W estern GTA Ecogen Hedge

Agreem ents add 3 ,3 6 6 MW of generation capacity

Structured off-takes assist to m atch TRUenergy’s w holesale capacity w ith retail dem and

3 4

`

Installed capacity Details Storage Processing 22PJ/ day 500TJ/ day

Overview

• Iona Gas Plant is an underground gas storage and gas processing

facility near Port Campbell in south west Victoria

• Commissioned in August 1999
• The plant is connected directly to both the Victorian gas system and the

SEAGas Pipeline (transmission pipeline connecting Victoria and South Australia)

• Capacity into Victoria is 260 TJ per day
• Capacity into the SEAGas Pipeline is 165 TJ per day

2010 Achievements

• Commercial availability of 98.8%
• 11 years operation without a Lost Time Injury
• Completed plant expansion in June 2010

Gas contracts

• Portfolio of gas supply contracts from multiple suppliers

I ona underground gas storage capacity represents ~ 2 5 % of peak-day Victorian retail gas dem and

I ona sm oothes TRUenergy’s gas dem and, storing gas during sum m er and providing extra gas for heating in w inter

3 5

NSW integration on track

Sales & Marketing

• Sales channel management
• Marketing services

Contracts

• Registering small/ large customers and

large customer connection points Forecasting & settlem ents

• Load forecasting
• Wholesale settlements

Billing Services

• Bill production and price changes
• Issuing service orders for DNSPs

Collections & Debtor Managem ent Service

• Credit collection & debt recovery
• Complaints and disputes

Custom er Service

• Customer enquiries and ‘up-sales’
• Account mgnt & contract renewals

Business I nform ation Service

• General ledger transactions
• Customer and sales activity data

12 24 36 months Customer transition

TRU TSA Min TSA Max TSA Pre-Purchase 36

3 0 Septem ber Transition Services Agreement Timeline

3 6

Achievem ents against Clim ate Change Strategy

Com m itm ents Achievem ents since 2 0 0 7

Cap carbon intensity

• No construction of new power stations

using traditional, Greenfield coal-fired technologies

Completed construction and began

• peration of Tallawarra power station –

Australia’s most efficient gas fired power station

NSW acquisitions have reduced carbon

intensity of generation portfolio Reduce em issions

• Reduce emissions from electricity

generation and gas processing operations

• Manage waste and water
• Use less intensive fuels for transport and
• perations
• Improve efficiency of corporate offices

Significant carbon reduction at Yallourn

from operational efficiency improvements

Recycled cooling water introduced at

Yallourn

Development of Environment and

Resource Efficiency Plans

Improved sustainability of corporate

• ffices during refurbishment

3 7

Achievem ents against Clim ate Change Strategy

Com m itm ents Achievem ents since 2 0 0 7

I nvest in em erging low and zero em ission technology

• Invest in more renewable energy, such as

wind and solar

• Direct investment to low emission

technologies

• Support research and development

Paralana geothermal project Windfarm investments (Waterloo,

Cathedral Rocks and development sites)

Ignite project Mallee Solar Park proposal

Help custom ers m anage their carbon footprint

• Increase uptake of accredited GreenPower
• Offer energy efficient products and

services

• Help customers to offset emissions
• Support community programs to reduce

emissions

Increased accredited GreenPower

customers by 22,000

Established Energy Management Initiative

team

Launched carbon offset tool Energy efficiency audits in Vic and SA Launched TRUenergy Solar Solutions Partnership with Conservation Volunteers

Australia

3 8

Customer service and back office Oracle platform will replace multiple systems with a single platform:

• Increases customer responsiveness
• Improves cost to serve
• Supports development of innovative products
• System testing well advanced
• Deployment in 2012

Existing schedule for transition

Enhanced custom er care and billing system and integration tim eline

TSA TRUenergy Oracle platform NSW Migration Legacy Systems

Schedules vary but all core services available for 36 months

No migration of customers during TSA. Migrate existing customers

1 March 2 0 1 1 Tim eline ( m onths) 0

1 2 2 4 3 6 3 9

Disclaimer

This presentation may contain forward looking statements and comments about future events, including our expectations about the performance of TRUenergy Group's business. Such comments are not audited and are based on a number of factors that we cannot control and so no representation or warranty is provided by or on behalf of TRUenergy or CLP that they should or will be achieved. We cannot be certain that the comments will be accurate or complete and so they should not be relied on. Please note that, in providing this presentation, TRUenergy has not considered the

• bjectives, financial position or needs of any particular recipient.

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