Curriculum Vitae Peter Eben, Director Peter has a broad understanding of the carbon and energy markets through both direct and advisory experience, having worked for AGL, Pulse Energy, United Energy and IKON Energy in wholesale and retail senior management positions as well as at KPMG. Peter is also a qualified actuary with experience working with and for financial services companies and understanding the risk management frameworks and methodologies used by banks and insurance companies. Peter s experience include: Developed strategies for many major energy users to optimise their energy purchasing costs and maximise business value Advised a major Australian company that was interested in entering the contestable electricity and gas markets. Advised on aspects such as retail operations requirements, retail regulatory issues, wholesale risk management and business models. Advised an automotive components manufacturer on the business opportunities for their emissions reduction technology in light of the introduction of the Carbon Pollution Reduction Scheme. This involved understanding the Australian and international environmental markets regulatory landscape and the options for participation in the primary and secondary carbon markets. Assisted a major state Government owned corporation and its Board to understand its exposure to movements in fuel prices and provide guidance regarding available hedging strategies. We then facilitated and provided advice to the company to enable them to implement their hedging strategy and execute appropriate transactions. Advised the Ministerial Council on Energy (Energy Reform Implementation Group) on factors impeding the development of the wholesale gas and electricity markets and structural or market design changes that can be implemented to improve market liquidity. The report was subsequently used by ERIG to make recommendations to COAG regarding impediments and market development opportunities. Reviewed and refined the middle office (wholesale risk management) processes and procedures for an energy retailer, this included applying relevant insights from sources such as CCRO and SCOR. Developed an organisational blueprint for a major energy retailer s wholesale trading, sales and marketing and business sales departments. QUALIFICATIONS Masters of Business Administration, Australian Graduate School of Management Fellow of The Institute of Actuaries of Australia Bachelor of Science (Mathematics), University of New South Wales Bachelor of Commerce (Finance), University of NSW 1
Curriculum Vitae Patricia Boyce, Director Patricia has an extensive background in the energy sector. This includes roles in executive management positions in energy retail companies as well as a lead partner in a major international consultancy. Patricia is currently a visiting fellow at Macquarie University, lecturing in an elective Energy Risk Management as part of the Master of Applied Finance program. Patricia s experience includes: As Lead Client Service Partner for SP AusNet, managed service delivery of multi-disciplinary team to support the Independent Directors of SP AusNet in evaluating the proposed acquisition of Alinta assets from their majority shareholder, Singapore Power International. Her role included participating in the Due Diligence Committee Meetings and being a member of the Independent Directors Committee throughout the process. Provided Independent Expert services to the parties negotiating novel gas contracts in the Western Australian gas market. Reporting to the Company Secretary, undertook a review of the operational and financial risks faced by a major NSW Generator which resulted in a recalibration of their evaluation of their risk profile to include a greater emphasis on operational and project issues. The role included socializing the results of the review with the CEO and senior management in a half day discussion forum. Advised the Queensland Premier and Treasurer on the introduction of Full Retail Competition into the Queensland electricity market. Developed and introduced an elective, Energy Risk Management as part of Macquarie University s Master of Applied Finance program. The course is offered as an elective and is also offered as a short, one day course. Advised the successful Chinese bidder for a minority share of the Intergen Queensland assets on valuation and other energy market issues. For the Chief Operating Officer, reviewed the multi-commodity risk management policy of an integrated Australian energy company, improving the cross-commodity and cross state integration of the policy. Assisted in the roll-out and implementation of the policy. Advised the Queensland Office of Energy on the proposed successor to the Benchmark Price Agreement with Queensland Government owned retailers. QUALIFICATIONS Master of Applied Finance, Macquarie University Graduate Diploma Economics, ANU Bachelor of Commerce, University of Melbourne 2
Seed Advisory Credentials Seed Advisory is a commercial advisory firm offering independent, practical and business focused advice with a specific focus on the energy and renewable sectors. We have a strong track record of delivering on clients objectives and offer flexibility, a hands on approach and value for money. Some examples of the projects the Directors of Seed Advisory have worked on include: Undertook a study to identify and assess the barriers and issues confronting developers installing tri and co-generation in the CBD and Southbank areas and to recommend options for their potential resolution. The report was fact-based and focused on those issues and levers which, if successfully addressed, would assist in removing the current barriers being experienced by developers to the introduction of tri- and cogeneration. Reviewed the process, methodology, and transfer prices for commercial and industrial electricity customers for a major energy retailer. This included assessing the suitability of the methodology to cover risk, reviewing the end to end process for completeness and identifying any gaps and improvement opportunities. The report and findings were presented to the company s Risk Management Committee. Developed and delivered a tailor made leadership training course on the implications and opportunities of the Carbon Pollution Reduction Scheme for a major corporate recovery advisory firm. This included developing relevant case studies and providing insights applicable to the key focus areas of their business. Presenting at numerous forums and seminars for senior business leaders on current legislated requirements from the Department of Climate Change, including requirements under the National Greenhouse and Energy Reporting Act 2007, and the potential impacts of the Emissions Trading Scheme proposed for introduction in 2011. Working with a range of companies looking to provide low carbon solutions, including renewable energy projects, to identify viable commercial proposals, given the short to medium regulatory and commercial outlook for emissions reduction in Australia. Developing the Energy Risk Management elective course that is offered by The Centre for Applied Finance in its Masters Degree, as well as providing a tailored shorter version of the course in conjunction with the Centre to a range of energy market participants. 3
Seed Advisory Credentials (cont) Seed Advisory is a commercial advisory firm offering independent, practical and business focused advice with a specific focus on the energy and renewable sectors. We have a strong track record of delivering on clients objectives and offer flexibility, a hands on approach and value for money. Leading and managing various teams during potential and actual acquisitions and sales of energy businesses, including renewable energy generators such as Hydro, solar and wind. This included reviewing and/ or preparing forecast energy purchase costs, risks, volumes and other wholesale financial information contained in information memorandums. In conjunction with D-Cypha Trade and the Australian Stock Exchange: surveying Australian participants in the over-the-counter and exchange traded electricity derivative markets analysing the reasons behind the growth of the exchange traded sector identifying the issues for companies in the derivatives market resulting from these developments for hedging policy, cash flow management, hedge effectiveness testing, income statement and balance sheets. Advised the Gas Market Leaders Group on the strategic options for the future development of the Australian Natural Gas Wholesale Market. This project provided the framework and general direction to commence the current Short Term Trading Market development currently being undertaken by the industry. Leading the consultancy for the Queensland Government recommending the extension of Full Retail Competition in the retail electricity market. Assisting a new entrant retailer prepare for entry to the South Australian gas market, including understanding the risks associated with swing gas and options for its management Devising and implementing the Enterprise Risk Management approach used by an energy retailer s board to manage its financial and physical exposures in the gas and electricity markets. Augmenting and enhancing the middle office functions of an energy retailer in the lead up to full retail competition. This included revising risk limits, enhancing valuation methodologies and developing new forecasting capabilities and reporting requirements to cater for the new risk exposures arising from full retail competition. 4
Seed Advisory Credentials (cont) Contact Details Seed Advisory Pty Ltd ACN 134 085 866 Level 27, 101 Collins Street Melbourne, Victoria 3000. www.seedadvisory.com.au Patricia Boyce Director m> 0412 254 589 p> +613 9653 9460 f > +613 9653 7373 e> pboyce@seedadvisory.com.au Peter Eben Director m> 0411 207 505 p> +613 9653 9460 f > +613 9653 7373 e> peben@seedadvisory.com.au Advising successful bidders on a range of energy and infrastructure assets on bid parameters relating to the value and risks associated with the proposed acquisition Providing strategic advice to Queensland Treasury Corporation in respect of the benefits, risk and issues of using one or more of the Enertrade s PPAs to manage Ergon s residual franchise load. Managing the internal audits relating to the treasury and trading functions of a number of Australian energy market participants. Significant issues included hedging strategies and hedge effectiveness, cash flow management and compliance with relevant legislation relating to solvency. Advised the Ministerial Council on Energy on the retail market impacts associated with rolling-out smart electricity meters for small customers. Developed financial (business planning) and pricing models for large and new entrant energy retail businesses Reviewed and assessed the methodology and reasonableness of several complex financial models. These were used in assisting in the development of prospectus or information memorandum for debt financing Developed a framework and approach to managing the data quality for a major energy company. This included designing a data dashboard and controls to monitor and manage data accuracy and its implications on financial reporting. Advised a demand side management aggregator on a product and market review for demand side products targeted at energy retailers. This included assessing key market segments, market drivers and commercial opportunities available. In addition we provided insights and research into pricing and commercial implications of current and prospective products to this market. August 2009 5