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1 To Company Announcements Office Facsimile Company ASX Limited Date 22 August 2013 From Helen Hardy Pages 58 Subject PRESENTATION TO ANALYSTS AND FINANCIAL MARKETS Please find attached a release on the above subject. Regards Helen Hardy Company Secretary helen.hardy@originenergy.com.au Origin Energy Limited ACN Level 45 Australia Square, George Street, Sydney NSW 2000 GPO Box 5376, Sydney NSW 2001 Telephone (02) Facsimile (02)

2 2013 Full Year Results Announcement Financial Year Ended 30 June 2013 Grant King, Managing Director Karen Moses, Executive Director, Finance and Strategy 22 August 2013

3 2 Important Notice Forward looking statements This report contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events. Such statements are not statements of fact and there can be no certainty of outcome in relation to the matters to which the statements relate. These forward looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause the actual outcomes to be materially different from the events or results expressed or implied by such statements. Those risks, uncertainties, assumptions and other important factors are not all within the control of Origin and cannot be predicted by Origin and include changes in circumstances or events that may cause objectives to change as well as risks, circumstances and events specific to the industry, countries and markets in which Origin and its related bodies corporate, joint ventures and associated undertakings operate. They also include general economic conditions, exchange rates, interest rates, the regulatory environment, competitive pressures, selling price, market demand and conditions in the financial markets which may cause objectives to change or may cause outcomes not to be realised. None of Origin Energy Limited or any of its respective subsidiaries, affiliates and associated companies (or any of their respective officers, employees or agents) (the Relevant Persons) makes any representation, assurance or guarantee as to the accuracy or likelihood of fulfilment of any forward looking statement or any outcomes expressed or implied in any forward looking statements. The forward looking statements in this report reflect views held only at the date of this report. Statements about past performance are not necessarily indicative of future performance. Except as required by applicable law or the ASX Listing Rules, the Relevant Persons disclaim any obligation or undertaking to publicly update any forward looking statements, whether as a result of new information or future events. No offer of securities This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose of any securities in Origin, in any jurisdiction.

4 3 Outline 1. Performance Highlights Grant King 2. Financial Review Karen Moses 3. Operational Review Grant King 4. Prospects Grant King 5. Glossary

5 4 1. Performance Highlights Grant King, Managing Director

6 Results Statutory Profit* $378 m down 61% 5 Statutory EPS* 34.6 cps down 62% Net items excluded from Underlying Profit 1 ($382) m down from $87m Underlying Profit* $760 m down 15% Underlying EPS* 69.5 cps down 16% Underlying EBITDA* $2,181 m down 3% Final Dividend Unfranked 25.0 cps - - Group OCAT* 2 $1,142 m down 36% Free cash flow* $1,188 m down 16% Growth Capital Expenditure 3 $905 m down 42% Origin s Cash Contribution to APLNG 4 $561 m down 52% Total Recordable Injury Frequency Rate 6.7 down from * Refer to Glossary in Section 5. (1) A breakdown of Items excluded from Underlying Profit is provided on slide 20. (2) Refer to slide 22 for detail. (3) Based on cash flow amounts rather than accrual accounting amounts; includes capitalised interest and acquisition expenditure (4) Origin s cash contributions to APLNG made via loan repayments. (5) Revised from the previously reported 8.0 due to retrospective data updates.

7 Origin is focusing on four key priorities Improving the Performance of the Existing Businesses Removal of controls on retail pricing reduces risk and improves earnings potential Stabilising competitive environment reduces churn and improves longer term outlook for margin Implementation of retail systems and completion of NSW customer migration improves operating effectiveness and competitive capability Completion of investment to improve availability and capacity of upstream assets and additional gas contracting will provide benefits from increased demand for gas as LNG production commences Completion of Contact s investment in lower cost and flexible generation and commissioning of HVDC interconnector reduces exposure to hydrology and improves reliability of earnings Reduction in employee numbers, business restructuring and asset sales reduce cost base and improve cash flow Delivering the APLNG Project Project on track with first LNG targeted in mid 2015 Calendar Year Managing the Funding of Origin s Investment in APLNG Cash flow from the existing business together with $5.3 billion of undrawn committed facilities and cash at 30 June 2013 to fund $4.1 billion of remaining funding requirement for APLNG 6 Creating Growth Opportunities for the Future Existing opportunities being progressed to be FID-ready to provide medium term growth following completion of APLNG

8 In FY2013 price controls reduced earnings and increased risk Retail price controls must be removed: Regulation of wholesale cost of energy discourages competition around ownership of generation and energy procurement, and encourages shadow bidding of regulators As prices are set in advance, changes in wholesale cost of energy cannot be recovered through changes in tariffs In FY2013 QCA determination reduced wholesale energy cost allowance $110m impact to Gross Profit (net of retail allowance and before mitigation) Higher than expected wholesale energy costs unable to be recovered in previously set tariffs $100m impact to Gross Profit In FY2014 QCA determination had an increased allowance for wholesale energy and retail cost of approximately $80m IPART determination broadly consistent with FY2013 ESCOSA deregulated retail pricing from January 2013 Deregulation Timeline VIC NSW QLD SA Gas 1 Jan 2009 Review expected 1 July Feb 2013 Electricity 1 Jan 2009 in FY July Feb FY2014 pricing decisions and progress on deregulation mean the earnings potential of the business should not be limited by price controls in the future

9 Changing competitive environment sees reduced churn and improved margin outlook Increased competition following the NSW acquisition at a time when Origin s marketing capacity was constrained resulted in reduced average electricity customers of 160,000 and $80 million impact to Gross Profit in FY2013 Despite market churn increasing in all states but QLD in FY2013, Origin s overall churn reduced Customer losses arrested by year end with a net loss of 16,000 customer accounts in FY2013 and second half net gain of 7,000 due to increased acquisition and retention activities, locking in discounts with more customers Origin estimates discounts in FY2013 reduced revenue and margin by approximately $150 million compared to regulated and published tariffs Customer Accounts ('000) H1 FY H2 FY H1 FY H2 FY2013 Changes to competitive environment through Q4 FY2013: Large retailers announcing exit from D2D Discounts beginning to reduce where margins have been under pressure AGL has announced a takeover offer for APG 8 however higher levels of discounting from published tariffs are locked in with an increased number of customers well into FY2014

10 9 Implementation of retail systems and completion of NSW customer migration improves operating effectiveness Following the NSW acquisition in Q3 FY2011 Origin had approximately 2.6m customers being serviced on Origin s legacy systems and 1.6m NSW customers serviced on government legacy systems On acquisition, Origin was required to migrate NSW customers onto Origin systems over a 4 year period at a planned cost of $277m and make TSA payments to the NSW government of $422m. A provision of $303m was established to provide for that part of the cost Origin considered onerous This migration required Origin to complete its Retail Transformation (RT) project to establish new SAP based customer systems which was completed in FY2012 for a capital cost of $260m Early implementation of RT has enabled the migration of NSW customers to be accelerated and it is expected to complete in October 2013, one year ahead of plan, approximately $60m below planned cost and saving $100m of TSA payments Implementation of RT has been challenging Stabilisation spend continued in FY2013 at $34m compared to $33m in FY2012 (post-tax) Disruption of collection activity during implementation of RT in FY2012 contributed to an ageing of debt which has proved difficult to collect in FY2013. Bad and doubtful debt expense increased by $43m (posttax) and has been excluded from Underlying Profit In Q2 FY2013 late bills peaked at 180,000. Late bills have returned to normal levels of 24,000 at year end Program RISE will be implemented in FY2014 to close the gap in operational performance The new SAP system has provided new capabilities in channel management and products and services to customers including online self-serve and e-billing capability All customers will be serviced on the new SAP system by October 2013, driving scale benefits and significantly improving competitive capability

11 Completion of investments in Upstream assets improves reliability and increases production capacity TJe/d Maximum Production Production Potential Potential FY2013 Production ex outages FY2013 Production 1 Kupe Otway Bass Gas PJ/a Sources Uses Additional volumes that can be sold into the gas market if none used in generation Mass Market / C&I Max Production Potential Above ToP 3rd party contracts JV Partners - Contracted APLNG Purchases Equity gas Investment in Upstream assets and planned shutdowns constrained performance in FY2013 Otway production from Geographe 2 commenced BassGas installed accommodation, successful well work overs at Yolla 3 & 4 With completion of these investments and higher plant uptime, Origin expects to benefit from increased contribution from Upstream assets Origin s gas portfolio includes equity gas and contracts, some of which are set at legacy prices Origin has lengthened its contracted position through a gas purchase agreement signed with Beach Energy for up to 173 PJ of gas over 10 years from FY2015 Origin has around 3,000 PJe 2 of 2P equity reserves (3P for Ironbark) and contracted gas and combined with a flexible gas portfolio will enable Origin to increase supply into a growing east coast gas market 10 (1) Subject to nominations and plant and well performance (2) Excluding APLNG

12 Completion of Contact s investment in lower cost and flexible generation and commissioning of HVDC interconnector reduces exposure to hydrology and improves reliability of earnings Contact expects to benefit from resolution of two issues that have previously impacted earnings: Reduction in gas take-or-pay commitments and investment in gas storage and generation will increase flexibility and reduce the marginal cost of generation Completion of the HVDC Inter-Island link will improve connectivity of generation and markets in the North and South Islands and reduce earnings sensitivity to hydro events Completion of Te Mihi geothermal power station will provide additional lower cost generation Pole 1 Decommissioned Pole 3 Commissioned Inter-Island link constrained resulting in price separation 11

13 Number of Employees Reduction in employee numbers, plant closures and asset sales achieved as part of restructuring program will improve cash flow and reduce the cost base OPERATIONAL EFFECTIVENESS H1 FY2013 H2 FY2013 Around 900 achieved by June 2013; higher and earlier than target of 850 by Dec 2013 One-off redundancy costs for headcount reduction program of $24m (post-tax) excluded from Underlying Profit ASSET CONSOLIDATION A review of investment activities and assets has resulted in: Discontinued investment in Transform Solar and Geodynamics Suspension of operations at Kincora gas plant in the Surat Basin and Jingemia oil field in the Perth Basin Sale of future non-core oil and condensate production Pending sale of TAWN assets in NZ Controlled spend on international projects Contact: Sale of gas metering business and non-core land assets. Write-down of wind assets. The current oversupply of capacity and lack of demand indicate little likelihood of development in the foreseeable future 12 (1) Includes Contact; excludes employees from the upstream operations of APLNG

14 APLNG is on track to deliver first LNG by mid-2015, creating a step change in Origin s earnings and cash flows Downstream Project 45% Complete Milestones Timing (FY) Origin and ConocoPhillips form APLNG incorporated JV Q Environmental approvals Q Sinopec 4.3 mtpa foundation customer Q FID1 announced Q Kansai 1.0 mtpa LNG off-take heads of agreement Q Sinopec 3.3 mtpa LNG off-take - marketing completed Q FID2 announced Q First gas and water production from Condabri Central (eastern area) First gas and water production from Reedy Creek (western area) Q Q Main pipelines complete Q Downstream Project 45% Complete Last Train 1 Module set Q First LNG, Train 1 mid-2015 First LNG, Train 2 late

15 $5.3 billion 1 of committed undrawn debt facilities and cash, along with free cash flow from the business, provide sufficient liquidity to fund Origin s investment in APLNG $ million 3,500 3,000 2,500 2,000 1,500 1,000 A$ million 6,000 5,000 4,000 3,000 2, ,000 0 FY2013 Actuals FY2014 FY2015 Energy Markets E&P Contact Corporate APLNG 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Loans & Bank Guarantees - Undrawn Loans & Bank Guarantees - Drawn USPP, Retail Notes, Euro Hybrid & Euro MTN FY2020 FY2021 FY2022 FY2023 FY2024 FY2025+ Reduced spend as existing business matures Origin s APLNG funding requirement $4.1 billion 3 from 1 July Origin has entered into a new $7.4 billion bank loan facility, extending maturities (1) Excludes Contact and bank guarantees. As at 30 June (2) FY2013 Actuals include capitalised interest of $65 million. Forward looking numbers are based on management s estimates of expenditure, and exclude capitalised interest and new opportunities. (3) Forward looking APLNG numbers represent Origin s expected cash contributions, post the Sinopec injection and project finance, rather than Origin s share of total APLNG capital expenditure; based on Origin s shareholding in APLNG of 37.5%; made partially via loan repayments

16 Progressing existing development opportunities to provide medium term growth following completion of APLNG Existing development opportunities Origin continues to prepare existing gas and renewable energy development opportunities for FID to be taken in the medium term: Gas opportunities such as Ironbark in Queensland and Halladale/Black Watch in the Otway Basin Stockyard Hill, a large scale wind project in western Victoria Exploration activities Origin will continue exploration activities to increase its gas resource position, including by participation in projects such as the planned well to be drilled in Canterbury Basin, New Zealand Future renewable opportunities Controlled spend will continue to grow Origin s position in hydro and geothermal resources 15 and preserving offshore renewable opportunities for longer term growth

17 Whilst there are many improving trends in Energy Markets, the lagged effect of FY2013 discounts will delay earnings recovery in FY2014 Improving operational performance of existing business Industry begins LNG production APLNG and GLNG start up Deregulation in QLD Full production from APLNG FY2014 FY2015 FY2016 FY QLD tariffs have increased the allowance for wholesale energy and retail cost Maintaining customer numbers Operational improvements and systems stabilisation Improved availability and capacity of upstream assets Impact of discounting in FY2013 expected to delay margin recovery in FY2014 Revenue from QCLNG gas sales Improved contribution from Energy Markets Revenues from APLNG LNG sales Revenue from GLNG gas sales Price deregulation in QLD retail market Revenue from two full APLNG trains POTENTIAL DEVELOPMENTS: Halladale Black Watch Ironbark Stockyard Hill Price deregulation, competitive stability and improving wholesale market dynamics expected to result in a move to more sustainable long term retail margins Benefits of legacy gas position 16 with earnings growth evident from FY2015, driven by Origin s legacy gas position and APLNG

18 2. Financial Review Karen Moses, Executive Director, Finance and Strategy

19 2013 Financial Highlights ($ million) June 13 June 12 Change Statutory Profit (61%) Statutory EPS 34.6 cps 90.6 cps (62%) Revenue 14,619 12,935 13% Underlying EBITDA* 2,181 2,257 (3%) Underlying EBIT* 1,438 1,598 (10%) Underlying Profit (15%) Underlying EPS 69.5 cps 82.6 cps (16%) Group OCAT 1,142 1,781 (36%) Free cash flow 1,188 1,415 (16%) Free cash flow per share* cps cps (17%) Capital Expenditure 1 1,172 1,680 (30%) Origin s cash contributions to APLNG ,167 (52%) Origin Undrawn Committed Debt Facilities and cash 3 5,251 4,191 25% 18 * Refer to Glossary in Section 5. (1) Capital expenditure is based on cash flow amounts rather than accrual accounting amounts; includes growth and stay-in-business capital expenditure, capitalised interest, acquisition expenditure (2) Origin s cash contributions to APLNG made partially via loan repayments. (3) Excluding Contact and bank guarantees.

20 Underlying EBITDA down 3% to $2,181 million Underlying EBIT down 10% to $1,438 million ($ million) Underlying EBITDA Underlying EBIT Jun 13 Jun 12 change Jun 13 Jun 12 change Energy Markets 1,333 1,562 (15%) 1,038 1,317 (21%) Exploration & Production % % LNG % 5 14 (64%) Contact Energy % % Corporate (42) (81) (48%) (46) (86) (47%) Total 2,181 2,257 (3%) 1,438 1,598 (10%) $ million 2,500 2,000 1,500 1, ,257 FY2012 Underlying EBITDA 2,181 (229) (743) 145 Energy Markets E&P LNG Contact Corporate FY2013 Underlying EBITDA Underlying D&A and ITDA 1,438 FY2013 Underlying EBIT The decline in performance in Energy Markets due to: lower electricity volumes reduced margins due to under recovery of higher cost of energy due to regulatory constraints 19 (1) Restated due to internal restructure of the LNG segment

21 Reconciliation of Statutory Profit to Underlying Profit ($ million) Jun 13 Jun 12 Change Statutory Profit (602) Items Excluded from Underlying Profit APLNG related items (356) (Decrease) / increase in fair value of financial instruments (243) 97 (340) Impairment of assets (33) (407) 374 Other (202) (55) (147) Total Items Excluded from Underlying Profit (382) 87 (469) Underlying Profit (133) Unfavourable foreign exchange movement (-$187m), higher financing costs not able to be capitalised (-$91m), lower gain on dilution (-$79m) Retail Transformation and NSW energy assets transition costs (-$91m), restructure costs (-$24m) APLNG related items: primarily the gain on dilution of Origin s interest in APLNG (+$358m) offset by financing costs related to APLNG funding (-$141m) and foreign currency impacts (-$116m) Fair value of financial instruments: decrease primarily related to structured electricity caps (-$243m) Other primarily includes: Retail Transformation stabilisation of systems (-$35m), increased bad & doubtful debt costs (-$43m) and data centre migration (-$26m) NSW energy assets transition costs (-$65m) Restructuring and redundancy costs (-$24m) 20

22 Statutory Profit down 61%, from $980 million to $378 million 1,200 $ million 1, (87) 893 (76) (84) (38) (11) 760 (382) FY2012 Statutory Profit Net Items excluded from Underlying Profit FY2012 Underlying Profit Underlying EBITDA Underlying Underlying Underlying Underlying D&A Net Tax Noncontrolling and ITDA1* financing Expense* costs* interests* FY2013 Underlying Profit Net items excluded from Underlying Profit FY2013 Statutory Profit Underlying Profit declined 15% reflecting a 3% decline in Underlying EBITDA (down $76m to $2,181m) and: Underlying D&A (up $81m to $695m) 10 months of Mortlake Power Station, increased amortisation from the Otway and Bass basins Underlying net financing costs (up $38m to $255m) reduced capitalised interest for Mortlake partially offset by lower average interest rates Underlying income tax expense (down $76m to $339m) in line with a decrease in Underlying Profit Underlying Profit down 15%, from $893 million to $760 million * Refer to Glossary in Section 5. (1) Share of interest, tax, depreciation and amortisation of equity accounted investees.

23 Group OCAT reduced due to lower Underlying EBITDA, higher working capital, SIB capex and tax paid ($ million) Jun 13 Jun 12 Change Underlying EBITDA 2,181 2,257 (76) Change in working capital (298) (120) (178) Stay-in-business capex (267) (194) (73) Share of APLNG OCAT net of EBITDA (34) 7 (41) Exploration expense (31) NSW acquisition related liabilities (185) (235) 50 Other (54) Tax paid (275) (39) (236) Group OCAT * 1,142 1,781 (639) Net interest paid (436) (366) (70) Oil Sale Agreement Free cash flow 1,188 1,415 (227) Productive Capital* 15,783 14,523 1,260 Group OCAT Ratio* 6.4% 11.5% (5.1%) Increased Energy Markets and E&P receivables Higher expenditure at Eraring and Cooper Basin Decrease in utilisation of non-cash provisions for TSA and onerous hedge contracts Timing differences on higher instalment payments Higher average net debt balances relating to funding capital investments, principally APLNG Proceeds from agreements for the future sale of oil and condensate production from FY2016 to FY months from Mortlake coming online, Retail Transformation, and increased working capital 22 * Refer to Glossary in Section 5. (1) The add-back of non cash equity accounted profits excluding APLNG and movements in other provision balances are included within the Other line item.

24 Segment Cash Flow Returns Operating Cash Flow* 1 Productive Capital 1 OCFR* 1 (%) Jun 13 ($m) Jun 12 ($m) % Change Jun 13 ($m) Jun 12 ($m) % Change Jun 13 ($m) Jun 12 ($m) Energy Markets 812 1,141 (29%) 9,845 8,651 14% 8.2% 13.2% Exploration & Production (37%) 2,063 1,796 15% 11.3% 20.6% Contact Energy % 4,205 3,997 5% 8.9% 7.4% Energy Markets: Lower OCFR through lower EBITDA, higher SIB capex, principally on Eraring, and higher working capital requirements. Higher Productive Capital due to the commissioning of Mortlake Power Station in August 2012 E&P: Lower OCFR due to higher SIB capex during the year and higher working capital requirements. Higher Productive Capital from expenditure on Geographe and capitalisation of BassGas Contact: Higher OCFR due to lower SIB capex during the year and lower working capital requirements. Higher Productive Capital due to the appreciation of the NZ$ and capital program spend 23 * Refer to Glossary in Section 5. (1) Operating Cash Flow, Productive Capital and OCFR are pre-tax balances.

25 Origin has entered into a new $7.4 billion bank loan facility to refinance all existing bank debt on new terms and pricing Strong debt market support Origin has also replaced its standard banking terms, which date back to 2004, with terms that reflect the current scope, size and maturity of its business, providing Origin with financing flexibility for the long term Intention to refinance a portion of FY2018 debt via capital markets at a future time, further diversifying financing sources Origin is fully funded for APLNG 6,000 5,000 4,000 Loans & Bank Guarantees - Undrawn Loans & Bank Guarantees - Drawn USPP, Retail Notes, Euro Hybrid & Euro MTN 6,000 5,000 4,000 A$ million 3,000 2,000 A$ million 3,000 2,000 1,000 1, FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Loans & Bank Guarantees - Undrawn Loans & Bank Guarantees - Drawn USPP, Retail Notes, Euro Hybrid & Euro MTN FY2023 FY2024 FY2025+ The new bank loan has an interest cost consistent with Origin s existing bank debt and will provide financing flexibility for the long term (1) Excludes Contact. (2) Excludes Contact and includes pro-forma adjustment for the new $7.4 billion bank loan facility. 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025+

26 An unfranked final dividend of 25 cps has been determined, representing a payout ratio of 72% of Underlying EPS 60 cents per share Franking Payout Ratio Dec Half Jun Half FY2010 FY2011 FY2012 FY % 100% 100% 50% 77% 70% 61% 72% Ex-dividend date: 27 August 2013 Record Date: 2 September 2013 Payment Date: 27 September 2013 The Dividend Reinvestment Plan will apply to this final dividend with zero discount The final Dividend Reinvestment Plan will not be underwritten The final dividend is unfranked As a result of utilisation of available tax losses and the impact from development projects, including APLNG, Origin does not expect to have sufficient franking credits to frank the final dividend 25 Origin policy is to pay annual dividends set at the minimum of 50 cents or a payout ratio of 60% of annual Underlying EPS

27 3. Operational Review Grant King, Managing Director

28 Energy Markets ($m) 2,000 Underlying EBITDA 1,500 1,000 1,562 1, Jun 12 Jun 13 Higher Gross Profit in Natural Gas (+$35m), Noncommodity and LPG (+$23m) Electricity Gross Profit down $277m Underlying EBIT margin* reduced from 13.6% to 9.6% Customer numbers stabilised through increased retention and acquisition activity Integration of Integral Energy NSW customers completed in January 2013, with all customer to be serviced on SAP by October 2013 Continued investments in systems stabilisation to improve operating effectiveness and competitive capability Since year end, Origin acquired Eraring Energy assets for $50 million, cancelled the Cobbora agreement for a payment to Origin of $300 million, and entered into an eight year coal supply agreement with Centennial Coal 27 * Refer to Glossary in Section 5.

29 The decrease in Energy Markets Underlying EBITDA was due to a decline in Electricity Gross Profit $ million 1,800 1,600 1,400 1,200 1, , Underlying EBITDA Bridge (27) (110) 1 (100) Lower electricity volumes 1425 Reduced margin Electricity Gross Profit down $277m (40) (10) ,333 Lower electricity volumes due to lower usage per mass market customer (-$27m) Unfavourable tariff determination in Queensland (-$110m) Higher wholesale energy costs (-$100m) Increased market competitiveness driving (-$40m) loss of mass market customers predominantly in FY2012 change in customer mix between SME and C&I partially offset by mitigating pricing strategies Increased Gas, LPG and Noncommodity Gross Profit (+$58m) Investment in acquisition and retention activities increasing operating costs (-$10m) 28 with stronger performance from the Natural Gas, LPG and Non-commodity businesses (1) Gross, unmitigated impact of QCA determination.

30 Improvement in billing performance contributed significantly to increased operating cash flow in the second half 600 No.of Unbilled Customers ('000) $ million Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 0 H1 FY2013 H2 FY2013 Delays in bills being issued during the period post SAP implementation have been rectified Late bills peaked in September at 180,000 and have since reduced to 24,000 29

31 Regulatory constraints and competitive pressures restricted the ability to recover higher wholesale energy costs Electricity Performance ($/MWh) Jun 13 Jun 12 Change Revenue Combined Revenue C&I Mass Market Cost of goods sold Network costs (89) (81) (8) Wholesale energy portfolio costs (70) (48) (22) Generation operating costs (7) (6) (1) Energy procurement costs (77) (54) (23) Revenue uplift reflects: recovery of carbon recovery of network costs Recovery of energy costs limited by: QCA tariff determination Increased discounts Higher energy costs reflect: Cost of carbon Increased mandatory green schemes Higher pool prices Total Cost of Goods Sold (165) (135) (30) Gross Profit (6) Reduced unit gross profit Gross profit per customer ($) (11%) driving a reduction in Electricity margin 30 (1) Based on average customer accounts

32 0 H1 FY2012 H2 FY2012 H1 FY2013 H2 FY2013 Electricity Customer Accounts ('000) Electricity Mass Market customer and volume losses predominantly as a result of increased competition during systems implementation have been largely offset by successful tendering of C&I customers TWh TWh 42.3 TWh H1 FY2012 H2 FY2012 H1 FY2013 NSW Vic Qld SA C&I Mass Market H2 FY2013 Improved acquisition and retention activity has stabilised Origin s net customer position Bulk of mass market losses occurred in H1 FY2012 during systems migration FY2012 customer account losses of 200,000 impacted FY2013 average customer accounts by 160,000 (-$80m impact on Gross Profit)

33 QCA tariff determination reduced the allowance for the wholesale cost of electricity Average NEM Pool Price ($/MWh) Higher average pool prices across the NEM of $9/MWh, increasing Origin s wholesale electricity costs 1 by $2.35/MWh Average NEM Pool Price ($/MWh) Flooding at Yallourn (July 2012), QLD trading events (Jan 2013) and planned capacity withdrawals Average Prices Less than $300/MWh Average Prices Greater than $300/MWh Estimated Carbon Cost Volatility: excess generation capacity and mild weather have reduced volatility in the wholesale market over the last three years, reducing cap returns Energy: average wholesale prices were higher across the period due to reduced plant availability and unexpected increases in pool prices impacted Origin s wholesale electricity costs, resulting in margin compression 32 (1) Excluding the increase for the carbon price and mandatory green schemes

34 In FY2013 internal generation covered 37% of Origin s load, including 40% of peak demand, and forms a key part in managing energy procurement costs Eraring Energy On 1 August 2013 Origin acquired the assets of Eraring Energy provides scale and generation flexibility benefits increases output levels from 3,040 MW to 3,120 MW ability to optimise timing and duration of planned outages net payment by Origin of $50 million cancellation of Cobbora Coal Supply Agreement net payment to Origin of $300 million Mortlake Power Station In a related transaction, Origin has entered into a coal supply agreement with Centennial Coal for 24.5 million tonnes over 8 years from FY2015 Mortlake Commercial operations for both units on 21 August 2012 Two units, 550 MW $810m investment (excluding capitalised interest of $160m) 33 Origin has increased the flexibility and scale of its generation portfolio by acquiring Eraring Energy and completing Mortlake

35 Natural Gas Gross Profit up 15%, or $35 million, due to increased Gross Profit per customer Gas Performance ($/GJ) Jun 13 Jun 12 Change Revenue Combined Revenue C&I Mass Market Cost of goods sold Network costs (4.4) (4.0) (0.4) Energy purchase costs (4.4) (3.5) (0.9) Total Cost of Goods Sold (8.8) (7.5) (1.3) Tariff increases include recovery of network, wholesale energy, and carbon cost increases Introduction of the carbon scheme Gross Profit Increased unit gross profit Gross profit per customer ($) % reflecting the diversity of Origin s gas supply portfolio 34 (1) Based on average customer accounts

36 Scale and diversity of Origin s gas position enables Origin to benefit from rising gas prices PJ/a Ironbark Other purchases APLNG purchases Origin equity gas Calendar Year Energy Markets gas portfolio includes Origin s equity gas and contracted gas, some of which is set at legacy prices, totalling around 3,000 PJe 1 Contracted gas position lengthened through gas purchase agreement with Beach Energy for up to 173 PJ of gas over 10 years from FY2015 Transport flexibility allows for the most optimal use of the gas: Generation portfolio Sell into the retail gas market Sell into the wholesale gas market with significant value already captured through recently signed gas contracts 35 (1) Excluding Origin's share in APLNG. Includes 2P conventional reserves and 3P Ironbark reserves.

37 Underlying operational improvements offset by higher acquisition and retention costs to improve the net customer position Cost to serve Jun 13 Jun 12 Change Natural Gas, Electricity & Non-commodity cost to serve (excl. TSA unwind) ($m) (697) (649) (48) TSA provision unwind ($m) Total Natural Gas, Electricity & non-commodity cost to serve ($m) 1 (561) (551) (10) Maintenance costs ($m) (445) (465) 20 Acquisition & retention costs ($m) (116) (86) (30) Average customer accounts ( 000) 3,946 4,057 (111) Higher Underlying bad & doubtful debt expense Accelerated TSA unwind due to planned earlier migration of Country customers in October 2013 Customer numbers stabilised through increased retention and acquisition activity Cost to serve ($ per customer) (142) (136) (6) Cost to maintain ($ per customer) (113) (115) 2 Cost to acquire/retain ($ per customer) (29) (21) (8) Scale Effect: Investment in stabilising customer numbers to protect unit costs and margins Cost per acquire/retain ($ per acquire/retain) 2 (79) (73) (6) 36 (1) Post the impact of the TSA provision unwind and excludes the costs associated with the transition to the new SAP system and integration of the acquired NSW retail business (2) Cost per acquisition/retention = Acquisition and Retention Costs divided by the sum of customer wins (637,000; 545,000 prior year) and retains (841,000; 634,000 prior year).

38 Increased acquisition and retention activity contributed to reduced Origin churn relative to market % Churn: Monthly Data Annualised 30% 25% 20% 15% 10% 5% 0% VIC Qld SA NSW Total Origin, FY2012 Origin, FY2013 Market, FY2012 Market, FY2013 Customer wins and retains ('000) % increase in wins & retains H1 FY2012 H2 FY2012 Retains H1 FY2013 Wins H2 FY2013 VIC: new entrant retailers increased aggressive competition following regulatory pressures in QLD NSW: incumbent retailers maintained competitive activity, and Origin defended market share QLD: retailers ceased proactive activity reflecting QCA impact 37 Origin s increased retention activity has resulted in more customers on discounts

39 Origin lost customers in VIC where competition and churn intensified, but gained customers in the other states, with overall customer numbers stabilising 4,500 Net loss of 16, Customer Accounts ('000) 4,000 3,500 3,000 2,500 2,000 1,500 1, ,116 1,080 1,582 1,585 +9,000 +8,000-36,000 +3,000 Customer Accounts ('000) Gas Net Losses improved from 160,000 in FY2012 to 16,000 in FY2013 Electricity - FY2012 FY FY2012 FY2013 NSW Vic Qld SA Losses in electricity were partially offset with gains in gas reflecting increased dual fuel penetration, particularly in NSW 38

40 All customers will be serviced on the new SAP system by October 2013, one year ahead of schedule, driving scale benefits and improving competitive capability The new SAP system has provided new capabilities in channel management and products and services to customers including online self-serve and e-billing capability Origin customer migrations to SAP Jun 2011 SA customers Oct 2011 VIC customers Dec 2011 NSW & QLD customers Feb 2012 remaining customers Jun 2012 manual migration Data centre migration from March 2012 NSW customer migrations to SAP Stabilisation of RT Improved service levels Enhanced customer satisfaction Better sales performance Normalising billing performance Jan 2013 Integral NSW customers Oct 2013 Integral QLD and Country customers Program RISE through FY2014 Closing the gap in operational performance Significant investment in improved retail capability is nearing completion 39

41 Exploration & Production ($m) 500 Underlying EBITDA Higher commodity prices Lower operating costs including exploration expense Lower production and sales volumes 0 Jun 12 Jun 13 Activities at key producing assets completed Higher production at Otway and BassGas basins due to higher plant availability offset by suspension of gas operations in Surat Basin, and natural field decline in Cooper Basin Origin entered into an agreement for the future sale of oil and condensate production from FY2016 to FY2021 and received a $482 million cash payment 40

42 Production was marginally down on the prior year PJe mmboe FY08 FY09 FY10 FY11 FY12 FY13 Total Liquids SA Cooper & SWQ Perth Surat Bass Taranaki - Onshore Otway - Offshore Kupe Otway Successful completion of a 23-day major planned maintenance shutdown Production from Geographe 2 commenced in July 2013, offsetting the natural decline in the Thylacine reservoir BassGas Back online in October following extended shutdown for the Mid-Life Enhancement Project Successful well workovers at Yolla 3 and 4, resulting in production capability nearing plant capacity Kupe Successful completion of a 25-day major shutdown Cooper Development program gaining momentum following delays due to weather events 41 with activities at key assets boosting asset availability and production capacity (1) Excluding APLNG

43 Current international exploration commitments coming to a close with the drilling of the Canterbury well in New Zealand in FY2014 DEVELOPMENT Otway and Bass basins & Ironbark Drilling of Yolla 5 and 6 wells in Bass Basin in FY2014 subject to rig availability, with timing of installation of export compression and condensate pumping modules to be assessed at a later date Well design and drilling plans, including tendering for rigs, underway for the Halladale/Black Watch in Otway Basin Development of Ironbark continues with dewatering commencing at the Duke 2 and 3 pilot wells, along with the planning for regulatory approvals EXPLORATION Otway Basin Well design and drilling plans, including tendering for rigs, underway for Speculant 3D seismic Exploration spend of $59m in FY2013 will roughly double in FY with some exploration and development activities continuing in Australia

44 LNG ($m) 70 Underlying EBITDA Increased production and sales volumes (100% APLNG) Higher gas prices Dilution of Origin s interest from 42.5% to 37.5% Higher operating costs reflecting higher gas purchases 0 Jun 12 Jun 13 Substantial progress made on the project Upstream & Downstream components 45% complete Project review completed in February 2013, resulted in increased confidence in project delivery, acceleration of Train 2 schedule and a forecast cost of $24.7 billion 2 2P reserves (100% APLNG) up 2% to 13,382 3 PJe, 3P reserves (100% APLNG) up 1% to 16,155 2 PJe 43 (1) Restated from $47 million due to internal changes in the composition of the LNG segment (2) At 31 December 2012 exchange rates (3) For further information on APLNG reserves please refer to the Operating and Financial Review for the year ended 30 June 2013

45 Upstream Project progress - 45% complete and on track Upstream Operated Goals Actual Progress 320 operated well drilled Accomplished: 343 wells drilled 100 diameter-kilometres 1 of gathering installed (equivalent to 170 wells) Eastern gas field facilities 70% complete (related to Train 1) Western gas field facilities 15% complete (related to Train 2) Main pipeline from Condabri to Gladstone 50% complete Accomplished: 161 diameter-kilometres of gathering pipe installed (equivalent to 273 wells) Not accomplished: 63% complete at the end of June Impacted by severe weather events in March Quarter and execution challenges. No impact to critical path. Mitigation plans underway to make up deficit. Accomplished: 32% complete at the end of June Good progress on module construction and compressor delivery Accomplished: 73% complete Cable installation in Combabula Gathering works in Condabri Inlet risers at gas processing facility 44 (1) Calculated by multiplying the diameter of the pipe by the length of the pipe

46 Downstream Project progress - 45% complete and on track Downstream Operated Goals Actual Progress First compressor delivered to site Accomplished: February 2013 First LNG modules delivered to site Accomplished: March 2013 Set first refrigeration compressor Accomplished: May 2013 Set train 1 gas turbine generators Accomplished: April 2013 LNG tanks 35% complete Accomplished: June 2013 Curtis Island LNG Tank B roof raised on 29 July Batam Module Yard Propane Condensate Module 45

47 APLNG is on track to achieve first LNG from Train 1 in mid-2015 and from Train 2 in late 2015 Key near term project goals and milestones Upstream Operated First gas and water production from Condabri Central (eastern area) FY2014 Plan Downstream Q1 Final Train 1 refrigeration compressor set Q1 FY2014 Plan 500 wells drilled Q2 Accommodation camp complete Q1 295 diameter-kilometres of gathering line installed (equivalent to 500 wells) Q2 Complete Train 2 compressor table tops Q2 Condabri Central Train 1 commissioned Q2 Complete loading platform for LNG jetty Q2 First gas and water production from Reedy Creek (western area) Q3 First Train 1 cold boxes (methane and ethylene) delivered to site and set Q2 Main pipelines complete Q3 Last Train 1 Module set Q3 46

48 APLNG capital expenditure for the year was $7.8 billion, with Origin s cash contribution $561 million (A$m) Year to 30 June 2013 Cumulative from FID1 to June 2013 Estimate from FID1 to 1 st sales from Train 2 (A$b) Project Capex 7, , Non-Project Capex: Capitalised O&M 317 Domestic 553 Exploration 221 Total APLNG Capex 8,934 Annual spend peaks in FY2014 in line with upstream development activity Predominantly ongoing SIB capex Ongoing expenditure reflecting committed exploration activity including permit acquisition costs Origin cash contribution 561 2,3 1, At 30 June 2013, APLNG had drawn down US$5.532 billion of the US$8.5 billion project finance facility Origin s remaining contribution is approximately $4.1 billion 3,4 from 1 July 2013 (1) APLNG capital expenditure (100%) derived from APLNG s Financial Statements; on an accruals basis. (2) Via loan repayments. (3) At 37.5% shareholding in APLNG. (4) Partially via loan repayments. (5) At 31 December 2012 exchange rates.

49 Contact Energy ($m) 500 Underlying EBITDA Favourable fuel mix Lower operating costs 0 Jun 12 Jun 13 Lower cost of generation with hydro displacing more expensive thermal generation and lower carbon and gas costs Divestment of non-core gas metering assets and some land assets for NZ$115 million, offset by impairments of wind generation opportunities and other land assets Te Mihi continues commissioning phase with completion expected first half of FY2014 Customer numbers and sales volumes stable despite sustained competition Retail Transformation project progressing towards go-live in late CY2013 Completion of additional HVDC Inter-Island link will improve generation and market connectivity in the North and South Islands and reduce earnings sensitivity to hydro events 48

50 Recent investments in Contact s generation portfolio have delivered improved portfolio flexibility and lower generation costs Benefits of favourable fuel mix realised during the period Higher rainfall resulted in increased hydro generation Stratford Peaker and Ahuroa gas storage increased Contact s ability to respond to market changes and portfolio outages CCGT generation down as less hydro replacement required Further portfolio enhancements close to completion 166 MW Te Mihi geothermal power station has commenced commissioning Leverage the benefits of Retail Transformation from the end of 2013 Steam Field 2 Dump Station (Te Mihi) being used for the first time Significant growth capex is coming to and end with the completion of Te Mihi, which in turn releases free cash flow in FY This, along with completion of the HVDC Inter-Island link, will contribute to more reliable earnings regardless of softening demand or weather driven price volatility

51 4. Prospects Grant King, Managing Director

52 Whilst there are many improving trends in Energy Markets, the lagged effect of FY2013 discounts will delay earnings recovery in FY2014 Improving operational performance of existing business Industry begins LNG production APLNG and GLNG start up Deregulation in QLD Full production from APLNG FY2014 FY2015 FY2016 FY QLD tariffs have increased the allowance for wholesale energy and retail cost Maintaining customer numbers Operational improvements and systems stabilisation Improved availability and capacity of upstream assets Impact of discounting in FY2013 expected to delay margin recovery in FY2014 Revenue from QCLNG gas sales Improved contribution from Energy Markets Revenues from APLNG LNG sales Revenue from GLNG gas sales Price deregulation in QLD retail market Revenue from two full APLNG trains POTENTIAL DEVELOPMENTS: Halladale Black Watch Ironbark Stockyard Hill Price deregulation, competitive stability and improving wholesale market dynamics expected to result in a move to more sustainable long term retail margins Benefits of legacy gas position 51 with earnings growth evident from FY2015, driven by Origin s legacy gas position and APLNG

53 5. Glossary

54 Important Notice Financial information All figures in this report relate to businesses of the Origin Energy Group (Origin, or the Company), being Origin Energy Limited and its controlled entities, for the year ended 30 June 2013 compared with the year ended 30 June 2012 (the prior year), except where otherwise stated. Origin s Financial Statements for the full year ended 30 June 2013 are presented in accordance with Australian Accounting Standards. The Segment results, which are used to measure segment performance, are disclosed in Note 2 of the Financial Statements and are disclosed on a basis consistent with the information provided internally to the Managing Director. Origin s Statutory Profit contains a number of items that when excluded provide a different perspective on the financial and operational performance of the business. Income Statement amounts presented on an underlying basis such as Underlying Consolidated Profit, are non-ifrs financial measures, and exclude the impact of these items consistent with the manner in which the Managing Director reviews the financial and operating performance of the business. Each underlying measure disclosed has been adjusted to remove the impact of these items on a consistent basis. A reconciliation and description of the items that contribute to the difference between Statutory Profit and Underlying Consolidated Profit is provided in slide 20. This report also includes certain other non-ifrs financial measures. These non-ifrs financial measures are used internally by management to assess the performance of Origin s business and make decisions on allocation of resources. Further information regarding the non-ifrs financial measures and other key terms used in this presentation is included in the this Glossary. Non-IFRS measures have not been subject to audit or review. A reference to Contact Energy is a reference to Origin s controlled entity (53.1% ownership) Contact Energy Limited in New Zealand. In accordance with Australian Accounting Standards, Origin consolidates Contact Energy within its result. A reference to Australia Pacific LNG or APLNG is a reference to Australia Pacific LNG Pty Ltd in which Origin had a 50% shareholding in until 9 August 2011, when completion of a share subscription agreement between Australia Pacific LNG and Sinopec resulted in a dilution in Origin s shareholding to 42.5%. Origin s shareholding in Australia Pacific LNG, which is equity accounted in line with Origin s shareholding, was 42.5% as at 30 June This shareholding was subsequently diluted to 37.5% upon completion of Sinopec s increased share subscription in Australia Pacific LNG on 12 July A reference to the NSW acquisition or NSW energy assets is a reference to the Integral Energy and Country Energy retail businesses and the Eraring GenTrader arrangements acquired by Origin in March A reference to $ is a reference to Australian dollars unless specifically marked otherwise. All references to debt are a reference to interest bearing debt only (excludes Australia Pacific LNG shareholder loans). Individual items and totals are rounded to the nearest appropriate number or decimal. Some totals may not add down the page due to rounding of individual components. When calculating a percentage change, a positive or negative percentage change denotes the mathematical movement in the underlying metric, rather than a positive or a detrimental impact. Measures for which the underlying numbers change from negative to positive, or vice versa, are labelled as not applicable. 53

55 Statutory Financial Measures Term Net Debt Non-controlling interest Shareholders Equity Statutory EBIT Statutory EBITDA Statutory effective tax rate Statutory earnings per share Statutory income tax expense Statutory net financing costs Statutory Profit Statutory profit before tax Statutory share of ITDA Meaning Total current and non-current interest bearing liabilities only less cash and cash equivalents. Economic interest in a controlled entity of the consolidated entity that is not held by the Parent entity or a controlled entity of the consolidated entity. Shareholders residual interest in the assets of the consolidated entity after deducting all liabilities, including non-controlling interests. Earnings before interest and tax (EBIT) as calculated from the Origin Consolidated Financial Statements. Earnings before interest, tax, depreciation and amortisation (EBITDA) as calculated from the Origin Consolidated Financial Statements. Statutory income tax expense divided by Statutory Profit before tax. Statutory profit divided by weighted average number of shares. Income tax expense as disclosed in the Income Statement of the Origin Consolidated Financial Statements. Interest expense net of interest income as disclosed in the Origin Consolidated Financial Statements. Net profit after tax and non-controlling interests as disclosed in the Income Statement of the Origin Consolidated Financial Statements. Profit before tax as disclosed in the Income Statement of the Origin Consolidated Financial Statements. The consolidated entity s share of interest, tax, depreciation and amortisation (ITDA) of equity accounted investees as disclosed in the Origin Consolidated Financial Statements. 54