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

Company Announcements Office Facsimile 1300 135 638 To AS X Limited 19 June 2014 Company Date Helen Hardy 12 From Pages CEN Presentation at UBS Conference S ubj ect Attached herewith is a copy of an announcement released to the NZX by Contact Energy today. Origin Energy holds 53.09% of quoted ordinary shares in Contact Energy Limited. Regards Helen Hardy Company S ecretary 02 8345 5000 – helen.hardy@ originenergy.com.au Origin Energy Limited ACN 000 051 696 • Level 45 Australia S quare, 264-278 George S treet, S ydney NS W 2000 W 2001 • Telephone (02) 8345 5000 • Facsimile (02) 9252 1566 • www.originenergy.com.au GPO Box 5376, S ydney NS

UBS Conference Dennis Barnes Chief Executive Officer 19 June 2014

Disclaimer 2 This presentation may contain projections or forward looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks. Although management may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realised. Furthermore, while all reasonable care has been taken in compiling this presentation, Contact accepts no responsibility for any errors or omissions. This presentation does not constitute investment advice.

3 February 2014

Business set up to deliver stable cashflows 4 Focus on efficiency and lower capital expenditure will increase free cashflow Second largest gas and electricity Flexible portfolio allows management of retailer in New Zealand variable operating conditions 1 1 Electricity sales Contact generation mix 10,000 6,000 Mass market Commercial and industrial 8,253 8,280 8,277 5,000 8,000 Generation volume (GWh) 4,000 GWh 4,067 4,188 4,333 6,000 3,000 4,000 2,000 4,210 4,092 2,000 3,920 1,000 - 0 1H 12 2H 12 1H 13 2H 13 1H 14 2H14* FY11 FY12 FY13 Thermal Hydro Geothermal • • Second largest electricity retailer in New Generation evenly spread across hydro, Zealand geothermal and thermal fuel sources • • Contact owns and operates New Zealand’s Competitive pricing across New Zealand only commercial gas storage facility • Significant LPG and natural gas businesses enhance Contact’s energy offering • Increasingly renewable portfolio with a declining cost of energy (1) Source: Contact results presentation and monthly operating statistics. * June 2014 generation mix projection

Current capital investment programme has come 5 to an end Te Mihi Power Station commissioned Retail transformation live • • SAP ‘go - live’ in the retail business April 2014 166MW geothermal power station commissioned May 2014 » Completes the SAP transformation of Finance, Procurement, Asset Management » Maximises resource consent at the and Retail systems iconic Wairakei geothermal field » Stabilisation proceeding better than planned » Adds a net 114MW to Contact’s • Advanced segmentation model has been built portfolio as first stage replacement which will leverage the data capabilities of SAP for the 56 year old Wairakei plant • System provides opportunities to lower our cost • Further reduces cost of energy to serve whilst enhancing customer experience

Methanol linked gas prices and a lack of long-term 6 gas certainty have supported a transition from gas generation to geothermal and wind 2 New Zealand non-hydro energy supply 1 Sources of gas demand (based on GWh of generation) 250 100% Coal 90% 200 80% Other 70% demand Gas 150 60% PJ 50% 100 Methanex 40% Wind 30% Cogeneration 50 20% Geothermal Electricity 10% generation 0% 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 2014 • • Gas to methanol has absorbed Trend of geothermal and wind displacing significant gas volumes. Methanex thermal generation continues restarted the Waitara Valley plant and » Contact’s Te Mihi geothermal power station refined the Motunui plant, during 2013, commissioned May 2014 (equivalent to ~11 increasing capacity to 90 PJe/year PJ/a of gas from a CCGT power station) usage of natural gas » MRP (Ngatamariki geothermal and Meridian (Mill Creek wind) (1) Source: New Zealand Ministry of Business, Innovation & Employment, and Contact Energy modelling (2) Source: New Zealand Ministry of Business, Innovation & Employment

Gas production has remained stable, despite 7 extensive exploration, with no major gas discoveries for many years 1 1 Years of remaining reserves (P50) Gas production by field 16 200 14 180 Other 12 160 Mangahewa 10 140 Kupe Production (PJ) Years 120 8 Kapuni 100 6 Maui 80 4 60 2 40 Pohokura 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 • Gas to methanol (similar to gas to LNG in Australia) has supported gas prices in New Zealand, driving an increase in gas exploration activity (1) Source: New Zealand Ministry of Business, Innovation & Employment, and Contact Energy modelling

Thermal generation remains critical to supporting 8 wind and hydro volatility Contact has retained options to maximise the value of future gas contracts, with decisions driven by the market value of capacity • Contact remains without any significant contracted gas for the 2015 calendar year • A number of options exist to manage Contact's contracted gas volumes our gas position beyond the end of 2014 50 » Contract additional gas with a preference for flexibility » Invest in the injection/extraction 40 capacity of Ahuroa Gas Storage to improve management of contracted gas PJ/year 30 » Contract generation from third- Take- parties to match sales or-pay 43 PJ 20 40 PJ • Gas storage allows patient approach to 29 PJ Take- Stored gas contracting new gas or-pay potential 10 24 PJ 17 PJ • Contact is well placed to access further geothermal generation if required 3 PJ » Tauhara consented (250 MW) - next 0 CY13 CY14 CY15 largest and most competitive undeveloped resource

A stable regulatory environment is important 9 given the long-term nature of our business • Labour-Green proposed reforms » New Zealand election to be held 20 September 2014 » Opposition policies include a proposal to remove the wholesale market to reduce electricity prices » The current market structure is delivering competition and security of supply » Charging for water is an issue with broader implications than the electricity generation sector alone and needs careful consideration • Carbon policy » New Zealand’s Emissions Trading Scheme continues to operate » Government has not signed up to the second commitment period of the Kyoto protocol limiting access to all cheaper international units from 2015 • Transmission pricing » Originally proposed to be introduced in 2016. Delays in the process makes introduction before 2017/18 seem unlikely

Summary 10 • Current capital and refinancing programme complete • Strong operational focus continues • Competitive advantage in investment in fuel and plant flexibility and enterprise wide systems • Tauhara – next most competitive generation development in New Zealand

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