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1 Energy Developments Limited 2012 Full Year Results 22 August 2012 Greg Pritchard Gerard Dover Managing Director Chief Financial Officer

2 Important Notice Forward Looking Statements Statements contained in this presentation, particularly those regarding possible or assumed future performance, estimated earnings of Energy Developments Limited ABN ( EDL or the company ), potential growth of the company, industry growth or other trend projections are or may be forward looking statements. Such statements relate to future events and expectations and therefore involve unknown risks and uncertainties. Actual results may differ materially from those expressed or implied by these forward looking statements. No offer of securities Nothing in this presentation should be construed as an offer to sell or a solicitation of an offer to buy or sell EDL shares in any jurisdiction. Reliance on third party information Certain of the views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by EDL. 1

3 Agenda Highlights Group Financial Results Business Performance Regulatory and Market Update Priorities and Outlook Presenters: Greg Pritchard Gerard Dover Managing Director Chief Financial Officer 2

4 Key Investment Highlights EDL owns and operates a global portfolio of over 700MW of clean and remote energy projects Proven expertise in the development of specialist power projects and emissions abatement solutions Established leadership in key growth markets Well capitalised with disciplined approach to investment opportunities Leading provider of clean energy from land fill and waste coal mine gas (methane) Australia s leading specialist provider of remote power < 100MW segment In-house technical and O&M capability supported by remote condition monitoring and track record of safe and reliable operations Significant brownfield expansions of remote mining operations in Australia Remote Energy demand over next 5-10 years estimated at ~1.5GW Recently announced ~53MW McArthur River power station expansion Incumbent WCMG operator in Australia s quality coking coal regions Increasing land fill access rights in fragmented US market Increasing free cash flow providing opportunities to reinvest A$22.5m of equity capital raised in FY12 A$445m of corporate debt facilities established in FY12 Target return hurdles for new investments 4 Defensive revenue streams Total fixed price revenue: >88%; Capacity based revenue: > 50% Revenues from A-rated counterparties: ~50% Customer focus with track record of contract renewals: >274MW in last 12 months 5 Positioned to benefit from global focus on clean energy Low cost and established clean energy technologies Bi-partisan support for RET and CFI in Australia; continued support for renewables in UK and key US States WCMG and Vent Air Methane business provides low cost carbon abatement solutions 3

5 EDL business overview A global portfolio of Clean Energy assets and a leading Remote Energy business in Australia Australia Clean Energy (Commenced Operations: 1992) Australia Remote Energy (Commenced Operations: 1988) Europe Clean Energy (Commenced Operations: 1997) US Clean Energy (Commenced Operations: 1997) Installed capacity: ~262MW Installed capacity: ~280MW 1 Installed capacity: ~80MW Installed capacity: ~89MW 2 Site MW Site MW Site MW Site MW Appin/Tower 97 WKPP 70 Mucking 21 Lorain County 27 Moranbah North 46 German Creek 32 Lucas Heights 17 Clayton / Springvale 15 Cannington 40 Pine Creek 35 Sunrise Dam 28 McArthur River 24 Other 83 Rainham 17 Pitsea 15 Greece 3 12 Other 15 Carbon Limestone 25 Covel 10 Tessman 8 Taylor 8 Other 55 Other 11 Total 262 Total 280 Total 80 Total 89 Notes: 1. Includes 21MW which are operated and maintained only 2. Includes 12MW US Lorain expansion project (commissioned Jul-12) 3. 50% owned JV 4

6 FY12 Result Highlights Successful year with a significant increase in scale and earnings growth Profitable Growth Investment and Enhanced Scale Operational Improvements Revenue of A$323m, an increase of 24% on FY11 EBITDA 1 of A$135m, up 10% on FY11 Net operating cash flow of A$71m, an increase of 5% on FY11 Investment of A$163m in acquisitions and expansions New debt facilities of A$445m 2 established Installed operational capacity up 115MW 3 (18%) to 711MW Increased Remote Energy capability and leadership: engen acquisition performing in line with expectations with platform for further growth 28MW of projects currently in development or commissioning 61MW of new projects committed Funding in place TRIFR continues to improve (down to 2.1 in FY12 from 4.1 in FY11) MW / Employee increased from 1.6 to 1.7 Continued success in extending key gas and project agreements engen Remote Energy Site German Creek 13MW expansion under development Carbon Limestone (US) Outlook FY13F EBITDA guidance of A$150m to A$160m On-market buy-back announced 6MW commissioned in FY12 Positioned for continuing growth Note: 1. Earnings before interest, tax, depreciation, amortisation and specific items 2. Includes US$20m (exchange rate A$1.00/US$1.00) 3. Includes engen acquisition of 98MW 5

7 Performance Overview 12 months ended 30 June FY12 FY11 FY10 Change FY11 -FY12 Revenue (A$m) % EBITDA before specific items (A$m) % Profit/(loss) before tax (A$m) 11.4 (45.0) 25.3 nm EPS (cents per share) 5.6 (18.4) 10.5 nm Capex and investment (A$m) nm Stay-in-business capex (A$m) nm Net operating cash flow (A$m) % Net debt/ebitda 3 (x) Safety (LTIFR) (49%) Generation (MWh) 3,153 2,952 3,018 +7% Installed capacity (MW) % Underlying business performance remains solid Note: 1. Excludes August 2011 engen acquisition (98MW) 2. French LFG (14MW) and Packington JV (5MW) sold in FY10 3. EBITDA before specific items 6

8 Recent Performance History Installed capacity (MW) Revenue (A$m) 800 CAGR = 7.7% 300 CAGR = 5.8% FY08 FY09 FY10 FY11 FY12 AU Clean Energy AU Remote Energy UK Clean Energy US Clean Energy 0 FY08 FY09 FY10 FY11 FY12 Contracted / Recontracted Black Uncontracted Black Uncontracted Green Total generation (GWh) EBITDA (A$m) 3,750 3,000 2,250 1, CAGR = 8.1% FY08 FY09 FY10 FY11 FY CAGR = 6.2% FY08 FY09 FY10 FY11 FY12 AU Clean Energy AU Remote Energy UK Clean Energy US Clean Energy AU Clean Energy AU Remote Energy UK Clean Energy US Clean Energy Proven track record of operational and financial performance Note: AU Clean Energy and AU Remote Energy cumulatively referred to as Australia by Management 7

9 Number of Employees Frequency Rate (per million hours worked) Safety and People EDL s Health, Safety and Environment track record is its social license to operate and key to continued success Safety Excellent industry-leading safety performance LTIFR improved c.50% to of 76 sites 12 months LTI free to June 2012 Total lost time injury frequency rate Environment Two minor reportable incidents 0 FY00 FY02 FY04 FY06 FY08 FY10 FY12 People Net employee numbers reduced 12% (post engen acquisition) improved MW/FTE from 1.6 in FY11 to 1.7x in FY12 Strategies in place to attract and retain key talent Employee numbers FY08 FY09 FY10 FY11 FY12 EDL Employees engen Employees Moving towards a Zero Harm target globally 8

10 Investing in Growth 218MW of generation have been acquired, developed or are fully funded and in development since FY11 FY12 Acquisition and Expansion Capex Project MW Comments Aug-11 engen 98 Acquisition of ~98MW of remote power generation capacity Dec-11 McArthur River expansion 3 Expansion at existing remote power station Capex (A$m) Jun-12 US brownfield expansions 28 Key US site expansions: Carbon, Lorain and Taylor 0 FY08 FY09 FY10 FY11 FY12 Current / upcoming expansion projects Project MW Comments Stay in business capex Growth capex Acquisitions engen: Acquired in August-2011 Jul-12 Hill Expansion of remote power station Nov-12 Jun-13 German Creek expansion US greenfield site expansions 13 Expansion of WCMG power station 8 Leveraging existing landfill operator relationship McArthur River: Expanded December-2011, further expansions beginning August-2012 Jan-14 McArthur River 53 Further expansion at existing remote power station Target return on capital employed > 10% 9

11 engen Acquisition ~98MW of installed generation focused on remote off-grid mine sites and remote communities EDL RE Asset Locations post acquisition 1 Proven track record Proven track record in industry > 30 years operating experience Focus on fuel efficient customer solutions 2 Low risk revenues Fixed revenues based on installed capacity Customer takes fuel risk 3 High quality customers Horizon Power; AngloGold Ashanti; Barrick Mining Corp; Newmont Well positioned for extensions / expansions 4 Growth platform Platform for further expansions in the key Western Australian market Market demand over next 5-10 years estimated at ~1.5GW 5 Leader in Remote Energy Leading specialist provider of remote power < 100MW in Australia 280MW installed 66MW in development KEY: engen Asset Existing EDL RE Asset Significantly enhanced EDL's position in the Remote Energy market 10

12 Recent Success in Contract Extensions ~274MW of off-take contracts have been agreed or extended since June 2011 Recent off-take renewals Site Counterparty MW Length Contract Type Appin Tower BHP ~74 4 years to 2016 Tolling Services Agreement Carbon Limestone and Lorain County (US) AMP Ohio years to 2021 Power Purchase Agreement MRM Phase 3 Expansion Xstrata ~53 20 years Tolling Services Agreement Cannington mine BHP 40 4 years to 2018 Tolling Services Agreement Sunrise Dam mine AngloAshanti Gold 28 2 year PPA extension Tolling Services Agreement Darlot mine Barrick Gold 12 2 year PPA extension Tolling Services Agreement Taylor County (US) Coweta Fayette Electric 8 15 year PPA extension Power Purchase Agreement MRM Short-term Expansion Xstrata ~3 3 years to 2015 Tolling Services Agreement Yulara CNG Transport Power & Water Corp N/A 7 years to 2018 CNG Supply Agreement Recent supply renewals Site Counterparty MW Length Contract Type Carbon Limestone, Lorain County (US) Republic Services years to 2039 Landfill Gas Supply Agreement Pitsea and Rainham (UK) Veolia years to 2029 Landfill Gas Supply Agreement Taylor County (US) Veolia 8 20 years to 2032 Landfill Gas Supply Agreement Excellent track record of contract renewals Note: 1. Tolling Services Agreement: EDL is paid a fixed capacity tariff for installed generation capacity and a variable energy tariff for electricity generated 2. Power Purchase Agreement: EDL is paid for electricity generated 3. CNG Supply Agreement: EDL is paid for the installed compressed natural gas (CNG) infrastructure and the transport of the CNG 11

13 Agenda Highlights Group Financial Results Business Performance Regulatory and Market Update Priorities and Outlook

14 Income Statement Group results Income Statement (A$m) FY12 FY11 FY10 Change FY11 -FY12 Revenue % Operating EBITDA % Corporate and Development (22.9) (19.7) (15.7) +16% EBITDA before specific items % D&A (59.6) (52.0) (52.2) +15% Net financing costs (38.0) (33.6) (33.6) +13% Profit before tax and specific items % Specific items Business strategy, acquisition, disposal and integration costs (7.3) (11.1) (15.7) (34%) Impairment (39.0) (54.0) (28%) Finance costs 20.1 (17.1) nm Profit before tax 11.4 (45.0) 25.3 nm Tax expense (2.1) 16.2 (8.9) nm Net profit 9.3 (28.8) 16.4 nm Specific Items Commentary Business strategy, acquisition, disposal and integration costs in FY12 includes costs incurred through the engen acquisition and compares to A$11.1m of costs in FY11 that mainly relate to losses on disposal of certain foreign operations and advisory costs Impairment expense in FY12 includes A$26.9m resulting from cessation of the NGAC scheme in June The Australian Government's Clean Energy Future Plan includes a number of legislated changes that may have a positive impact on EDL from 1 July 2012 and are described in more detail on pages 25 and 26. No revenue from these legislative changes will be recorded until the Plan has been finalised and can be reliably measured. Other asset impairments in FY12 are A$12.1m. This compares to A$49m in WKPP impairment and A$5.1 of other impairments in FY11 Finance costs in FY12 relate to a $20.1m exchange gain on settlement of foreign currency loans and capitalised fee write-offs of A$17.1m in FY11 associated with the July 2011 refinancing 13

15 Revenue and EBITDA Group revenue (FY11 to FY12) (A$m) US 19.9 Europe 55.2 (8.6) (3.7) 1 US 20.4 Europe 56.3 US AU AU 2 (7.6) Europe (0.3) US (0.7) AU 2.1 Europe 3.9 US 0.4 AU 67.8 Europe (2.6) US 1.7 US (1.1) AU FY11 Revenue Volume Price New assets FX FY12 Revenue Group Operating EBITDA 1 (FY11 to FY12) (A$m) US 2.7 Europe 34.3 (5.8) 6.4 (2.2) 19.1 (1.8) US 4.3 Europe 31.9 AU Aust AU 2 (5.3) Europe (0.2) US (0.3) AU 2.1 Europe 3.9 US 0.4 AU 1.5 Europe (4.5) US 0.8 AU 18.2 US 0.9 Europe (1.6) US (0.2) AU FY11 Operating EBITDA Volume Price Costs New assets FX FY12 Operating EBITDA Notes: 1. Excludes Corporate and Development costs and specific items 2. Includes changes in capacity-based volume revenues 14

16 Cash Flow Strong and stable cash flow conversion Cash flows (A$m) FY12 FY11 FY10 FY12-FY11 Change EBITDA % Business strategy, acquisition, disposal and integration costs (7.3) (3.9) (15.7) +87% Change in working capital and non-cash items (17.5) (16.3) % Cash from operations % Net finance costs (36.5) (29.8) (32.8) +22% Tax paid (3.4) (5.5) (5.5) (38%) Net operating cash flow % Stay-in-business capex (19.1) (18.4) (18.1) (3%) Net operating cashflow after stay-in-business capex % Commentary Mature technology and operations across all regions producing strong cash flows Cash flows are impacted by timing of generation and sale of green credits Stable stay-in-business capex despite significant increase in MW Opportunities to optimise working capital Change in working capital and non cash items ($Am) FY12 FY11 FY10 Greece JV (3.2) (3.5) (4.3) Change in Green credits on hand (7.8) (7.1) 2.1 Change in Working Capital (6.5) (5.7) 5.0 (17.5) (16.3)

17 Sources and Uses FY12 Sources A$m FY12 Uses A$m Net operating cash flow 70.5 Rights issue proceeds 22.5 Net increase in borrowings 63.2 Other net proceeds 2.0 Cash on hand at 30 June FX on Cash 0.5 Australia Remote Energy United States Clean Energy 44.3 Lease extensions and gas rights 8.0 Other capex 2.8 Stay-in-business capex 19.1 Uses Cash on hand at 30 June Total Sources Total Uses Commentary Appropriate balance of debt and equity used to fund acquisitions and expansions 16

18 Balance Sheet Balance sheet Debt ratios (A$m) FY12 FY11 FY10 Cash Receivables, Inventory, Green Credits and Prepayments Property, Plant and Equipment Goodwill and Intangibles Deferred tax and other assets Total assets Payables and provisions Borrowings and other financial liabilities Interest rate swap liabilities Deferred revenue FY12 FY11 FY10 Net Debt (A$m) Net Debt / EBITDA 1 3.2x 2.7x 2.9x EBITDA 1 / Interest 3.6x 3.7x 3.8x Debt to Assets 56% 52% 51% Average Interest Rate 7.5% 7.1% 7.8% Note: 1. Before specific items Working capital FY12 FY11 FY10 Debtor Days Creditor Days Inventory ($m) Deferred tax liabilities Total liabilities NET ASSETS

19 Funding Strength Current funding facilities New multi-option syndicated corporate facility allows EDL to appropriately finance its large portfolio of small scale generation assets Established in July 2011 Increased to A$425m in June 2012 New US$20m Caterpillar Financial Australia facility agreed in May 2012 for the purposes of Caterpillar equipment purchases No significant refinancing until June 2016 Significant headroom with all debt covenants Net leverage ratio < 3.75x 1 Net interest coverage ratio > 2.50x 1 Total gearing 2 < 65% 1 Current financing activities New financing facilities provide headroom to fund near term growth. EDL continues to assess alternate sources of funding Export Credit Guarantees to support financing of equipment purchases Debt maturity profile facility size Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Feb-18 Funding capacity Syndicated facility Revolver CAT Finance WKPP Multi-Option Syndicated Facility (including revolver) WKPP Project Finance CAT Finance Committed A$425.0m A$142.8m US$20.0m Drawn (at 30 Jun-12) A$372.9m A$127.4m US$10.7m Available A$52.1m A$15.4m US$9.3m Note: 1. Multi Option Syndicated Facility covenant only (i.e. excludes WKPP Project Finance debt) 2. Calculated as total debt to total assets 18

20 Agenda Highlights Group Financial Results Business Performance Regulatory and Market Update Priorities and Outlook

21 Australia Clean Energy Australia s largest landfill gas power generator and largest operator of waste coal mine gas (WCMG) projects Australia Clean Energy (A$m) FY12 FY11 FY10 Change FY11-FY12 Operating capacity (MW) % Revenue (9%) Black (5%) Commentary Higher market black prices offset by reduction in green credit prices Tolling contract extensions achieved but with a lower capacity Costs carefully managed to improve operational efficiency Development of German Creek WCMG expansion (13MW) to be completed by November 2012 Green (22%) Operating costs (33.4) (38.8) (42.7) (14%) Cost of sales (6.1) (9.2) (13.1) (34%) Direct O&M (9.9) (11.9) (13.4) (17%) Indirect O&M (17.4) (17.7) (16.2) (2%) Operating EBITDA (7%) margin (%) Operating EBITDA (A$m) (6.6) FY11 EBITDA Volume Price Costs FY12 EBITDA Note: 1. Includes changes in capacity-based revenues 20

22 Australia Remote Energy Remote Energy business provides essential infrastructure to remote mining operations and towns and communities, beyond the reach of the electricity grid Australia RE 1 (A$m) FY12 FY11 FY10 Change FY11-FY12 Operating capacity (MW) % Revenue % Black % Operating costs (90.6) (39.9) (38.9) 127% Commentary Continued growth across remote energy portfolio with the acquisition of engen in August 2011 Excluding engen, contract negotiations and increased demand for remote energy has resulted in a 4% increase in revenue Expansion project at Hill 60 (WA) (15 MW) was completed in July 2012 and will provide a further uplift in revenues in FY13 Synergy benefits in the RE portfolio include reduction of 35 FTE positions Cost of sales (48.6) (13.1) (14.1) nm Direct O&M (10.8) (6.9) (7.5) +57% Indirect O&M (31.2) (19.9) (17.3) +57% Operating EBITDA % margin (%) (10.5) Operating EBITDA (A$m) (0.8) FY11 EBITDA engen acquisition Volume Price Costs FY12 EBITDA Note: 1. Includes WKPP and engen contribution for 10 months (acquired 31 August 2011) 21

23 Europe Clean Energy EDL's European operations comprise ten LFG sites, mainly located close to London, and the Greece JV Europe (A$m) FY12 FY11 FY10 Change FY11-FY12 Operating capacity (MW) % UK Revenue % Black % Green % UK Operating costs (24.4) (20.9) (21.4) +17% Cost of sales (9.9) (6.8) (8.0) +46% Commentary UK operations experienced gas restrictions from over-tipping and increased outages, offset by stronger wholesale prices Indexed fixed price contracts continue to provide revenue certainty, with green revenues increasing 2% Cost of sales increased due to the renegotiation of certain royalty arrangements as part of landfill gas extensions, yielding a significant NPV uplift UK Government continues to support UK green energy through Renewable Obligation legislation Foreign exchange negatively impacts JV share of profits Direct O&M (8.2) (7.6) (7.7) +8% Indirect O&M (6.3) (6.5) (5.7) (3%) UK Operating EBITDA (7%) margin (%) (5.6) Europe Operating EBITDA (A$m) Share of profits from JVs (9%) 3.9 Europe Operating EBITDA (7%) (0.2) (4.5) (1.6) (0.4) FY11 EBITDA Price Volume Costs FX FY12 EBITDA 22

24 United States Clean Energy Recent expansions in key US states with supportive renewable energy policies US (A$m) FY12 FY11 FY10 Change FY11-FY12 Operating capacity (MW) % Revenue % Black % Green (5%) Operating costs (16.1) (17.2) (18.2) (7%) Cost of sales (2.2) (1.3) (2.4) +69% Direct O&M (6.3) (8.1) (8.0) (22%) Indirect O&M (7.6) (7.8) (7.8) (4%) Operating EBITDA % Commentary US business generation increased due to the partial contribution from expansion projects recently completed at Taylor, Carbon and Lorain (28 MW) Ohio (the location of EDL s largest operating sites) has recently reaffirmed its commitment to renewable energy, underpinning the outlook for green energy Continued focus on operational improvement and efficiencies Further greenfield investment of 8MW expected to commence operation in FY13 New 10 year PPA with AMP Ohio commenced in January 2012 with price increases locked in over the contract Project capex supported by US Treasury grants (US$6.4m recouped in FY12) Operating EBITDA (A$m) (0.2) (0.3) FY11 EBITDA Price Volume New assets Costs FX FY12 EBITDA 23

25 Agenda Highlights Group Financial Results Business Performance Regulatory and Market Update Priorities and Outlook

26 Regulatory Update EDL is manoeuvred through a changing regulatory environment Clean Energy Australia Clean Energy Future legislation, effective 1 July 2012 saw the introduction of a $23/tonne carbon price flowing through to increased National Electricity Market pricing from 1 July Renewable Energy Target ( RET ) scheme has been amended to include WCMG generation assets for a transition period to 2020 RET generation cap for EDL Moranbah North and German Creek power stations has been agreed (528GWh pa) and accreditation completed Carbon Farming Initiative legislation is operational, providing some incentives for EDL s landfill gas sites Formal accreditation process expected to be completed shortly Initiatives have been undertaken to maximise emissions abatement from EDL managed landfill sites NSW Greenhouse Gas Reduction Scheme ( GGAS ) has closed as of 1 July 2012 absence of transitional provisions resulted in write-off of NGAC inventory of $18.8m after tax at 30 June 2012 Clean Energy United States The United States currently has no national renewable energy or carbon abatement policy Ohio, EDL s largest operating market with 59MW of installed generation (64% of total US installed generation), has recently reaffirmed its commitment to the RPS target (25% of all generation from renewable sources by 2025) Under Ohio law, at least 50% of certificates surrendered under the RPS by retailers must be sourced from within Ohio, underpinning the value of EDL s green certificates Clean Energy United Kingdom Current target of 15% of all generation from renewable sources by 2015 No material change EDL will benefit from operating in a more certain regulatory regime 25

27 Australian Carbon Tax Net positive impact on EDL s financial performance Clean Energy Remote Energy Impact on EDL's Black Revenue As existing PPAs expire, EDL expects to negotiate new PPAs or sell direct to the NEM at pricing inclusive of the cost of carbon No impact generation is not grid connected (carbon cost is a pass-through to the counterparty under the PPA or Power Supply Agreement) Impact on EDL's Green Revenue LFG: Certain sites eligible for the creation of ACCUs under the CFI legislation, as well as the continued creation of LGCs under the RET 1 N/A WCMG: German Creek and Moranbah North projects (77MW), will be eligible for the creation of LGCs under the RET, for a transitional period of 8 years (EDL RET cap of 528GWh will translate to 528,000 LGCs per annum) Impact on EDL's Costs The carbon price will not apply to EDL s LFG sites Revenue uplift will exceed the cost, as the emissions intensity of WCMG generation (0.6tCO2- e/mwh) is less than the average for the Queensland grid (0.86tCO2-e/MWh) No impact carbon cost is passed-through to the counterparty under the PPA Clean Energy will be favourably impacted by Australia s Clean Energy Future legislation Note: 1. Subject to finalisation of CFI regulations and the LFG accreditation process 26

28 Agenda Highlights Group Financial Results Business Performance Regulatory and Market Update Priorities and Outlook

29 Priorities in FY13 EDL has five key areas of strategic focus for FY13 1 Development projects commissioned on time and budget AU Remote Energy: MRM (53MW in development for commissioning by January-14), and Hill 60 (15MW by August-12) AU Clean Energy: German Creek (13MW by November-12) US Clean Energy: US greenfield (8MW by June-13) 2 Drive operational improvements across the business Increase capacity factors in Clean Energy Continue to streamline O&M activities and cost base Procurement and working capital efficiencies 3 Extend access agreements to gas supplies Australian Clean Energy focused on extending access to long-dated gas reserves - LFG and WCMG 4 5 Building pipeline in growth markets Continue accessing diversified funding sources Secure and expand capacity with key customers Australian Clean Energy: Extend and expand Bowen Basin WCMG assets Australian Remote Energy: Extend and expand with existing and prospective resources customers and power off-takers US Clean Energy: Further brownfield and greenfield expansions; leverage strong counterparty relationships e.g. Republic (no.2 US waste company) Access broad corporate and project level funding sources Retain strong cash flow for reinvestment in profitable growth Enable bidding for new projects on a fully funded basis 28

30 Outlook EDL expects to achieve a significant uplift in FY13 EBITDA (A$m) 1H12 (Actual) 2H12 (Actual) FY12 (Actual) 1H13 Guidance 2H13 Guidance FY13 Guidance Guidance Key assumptions FY13 Guidance EBITDA Australia UK US Total EBITDA Note: 1. Australia includes Clean Energy, Remote Energy and Corporate Costs Australian ACCU certificate price ($) 21 Australian LGC certificate price ($) 37 AUD:USD Exchange Rate 1.05 AUD:GBP Exchange Rate 0.65 Commissioning of new capacity on the dates shown above Capital management initiatives On-market buy-back Australia UK US Up to A$5m of EDL shares over the next 12 months Does not limit EDL's focus on reinvestment in profitable growth Takes advantage of volatility or weakness in equity markets Amount brought back will depend on market conditions, alternative investment opportunities and other factors FY12 FY13 Low FY13 High FY12 FY13 Low FY13 High FY12 FY13 Low FY13 High FY12 1H 2H Note: 1. Includes corporate costs 29

31 Outlook Forecast Growth in MW from Committed Projects In development and committed project pipeline forecast to increase installed capacity by 13% from FY FY11 Closing Installed MW engen Acquisition US Expansion MRM Expansion FY12 Closing MW Hill 60 Wyandot Sand Valley German Creek Expansion FY13 Forecast MW McArthur River Expansion FY14 Forecast MW Note: 1. Includes committed projects only 30

32 Appendix A Additional information

33 Technology EDL operates proven, reliable, low technology assets Technology Overview Generation Process Example Clean Energy: Landfill Gas Landfill gas (LFG) produced from the anaerobic decomposition of biodegradable waste which has been deposited in landfill sites LFG consists of ~50% methane, with the balance of gas content carbon dioxide and trace amounts of volatile organic gases Methane is 21 times more potent than carbon dioxide in its greenhouse effect on climate change Generating power from landfill gas is a conventional process with few technical barriers to the exploitation of the resource LFG generation is now regarded as one of the most mature and successful renewable energy technologies, providing efficient base load generation Following the completion of the tipping process, waste deposited in the landfill site is covered and allowed to decompose The conditions in the landfill are carefully controlled to promote the production of gases The gases are collected via a system of wells and pipes that extract gas from the site and supply the engines Generation engines are typically containerised, installed onsite and connected to the gas supply and the electricity transmission network Clean Energy: WCMG Pre-draining and post draining of coal seams liberates methane gas trapped within the seam Coal mining process has always required the removal of methane for safety reasons, however, more recently there are also strong environmental and commercial considerations for draining and beneficiating the gas Historically, the methane has been either flared or released directly into the atmosphere, however, given WCMG can be used as a fuel for power generation, there is an opportunity to capture the gas and generate electricity WCMG is extracted from the coal seam through three distinct processes: Surface to in-seam Underground to in-seam Surface to goaf Gas extracted through is then transported via pipeline to an EDL WCMG generation facility Generation engines are typically containerised, installed onsite and connected to the gas supply and the electricity transmission network Power Generation from Waste Coal Mine Gas Remote Energy Remote energy provides electricity to remote towns, communities and mines that are not connected to the electricity network EDL provides power to its customers either on a tolling basis or with a cost pass-through of fuel costs, thereby reducing input cost risk EDL has developed remote area power plants which utilise natural gas (pipeline, LNG or CNG) and/or distillate to economically meet the energy requirements of mining operations, remote towns and communities and other off grid locations Broome Power Station (WKPP) 32

34 FX impact Profit and Loss FX on Revenue FX on Operating Expense FX on Depreciation FX on Financing Costs FX impact - other Net FX Loss before tax (0.8) (3.7) Balance sheet 0.5 Average rate: FY12 FY11 AUD:GBP AUD:USD AUD:EURO (0.9) (3.2) 0.5 (1.0) Closing rate: AUD:GBP AUD:USD AUD:EURO FX on PPE FX on FX on cash FX on and intangibles Investments borrow ings (2.1) -1.3 FX on payables FX on receivables (0.2) FX on others Net impact FY12 33

35 Appendix B Glossary

36 Glossary Term Definition Term Definition ACCU Australian Carbon Credit Units (AU) MWh Megawatt Hour AMP Ohio American Municipal Power - Ohio NEM National Electricity Market (AU) Black Revenues Revenues from the sale of electricity NGAC New South Wales Greenhouse Gas Abatement Certificate CAGR Compound Annual Growth Rate O&M Operations and Maintenance CE Clean Energy PPA Power Purchase Agreements CEF Clean Energy Future (AU) RE Remote Energy CFI Carbon Farming Initiative (AU) REC Renewable Energy Certificate (US) CNG Compressed Natural Gas RET Renewable Energy Target (AU) EDL Energy Developments Limited ROC Renewable Obligation Certificates (UK) engen Energy Generation Pty Ltd RPS Renewable Portfolio Standard (US) GGAS Greenhouse Gas Reduction Scheme (AU) TRIFR Total Recordable Injury Frequency Rate Green Revenues Revenues from the sale of regulatory credits TSA Tolling Services Agreement LFG Landfill Gas UK United Kingdom LGC Large Scale Generation Certificate US United States LTI Lost Time Injury VAM Vent Air Methane LTIFR Lost Time Injury Frequency Rate WCMG Waste Coal Mine Gas MRM McArthur River Mine WKPP West Kimberley Power Project (AU) MW Megawatt 35