Investor Presentation April 2012
Agenda 1. TRUenergy overview 2. Retail scale and quality 3. Diverse generation portfolio supported by strong fuel position 4. Strong financial position 5. Recent corporate activity 2
TRUenergy Overview
TRUenergy Overview Strong industry fundamentals One of Australia’s largest gas and electricity utilities Vertically integrated, diversified portfolio provides earnings stability Outstanding track record of earnings growth through disciplined acquisition and organic growth Low cost generation portfolio is well positioned for upside through rising wholesale prices Extensive pipeline of development opportunities in retail and generation Financial strength and flexibility Well positioned for a low carbon economy driving efficient energy use Highly experienced management team and Board 4
A strong portfolio of diversified assets Company Overview Power generation The largest privately held supplier of generation output to the National Electricity Market (“NEM”) Diversified and reliable owned and contracted fuel supplies Retail electricity and gas Australia’s third largest energy retailer Market share of 22% across Eastern Australia QLD Retail QLD Retail Gas processing and storage 63,000 accounts 0.1 million accounts Owns the largest underground gas storage facility in Australia Long-term gas storage contracts Brisbane SA Retail 0.2 million accounts 20% interest in Narrabri Delta West (500PJ) Financial and Operational Overview (as at 31 Dec 2011) GenTrader (2,400MW)) NSW/ACT Retail Ownership Hong Kong listed CLP Holdings Limited 1.4 million accounts Total Assets A$9.3b Sydney Adelaide Hallett Power Gross Debt A$2.4b Station (203MW) VIC Retail Revenue* A$6.9b (12 months to 31 Dec 2011) 1.2 million accounts Waterloo Tallawarra Power Tallawarra Power EBITDAF* A$1,047m (normalised) (12 months to 31 Dec 2011) (111MW) Melbourne Cathedral Rocks Station Station (MW) (420MW) (66/33MW) NPAT* A$355m (normalised) (12 months to 31 Dec 2011) Yallourn Power Employees 1,285 FTE Station and Coal Mine Capacity Total installed capacity under management of 5,613 MW (1,480MW) Gas Storage Facility Ecogen Hedge (22PJ Storage; Customers 2.8m accounts (up to 966MW) 500TJ/d Processing) * Includes only 10 months contribution from EnergyAustralia and Delta West Gentrader As at 31 December 2011 TRUenergy has evolved to be one of Australia’s leading vertically integrated and diversified energy companies 5
A scale player in the industry following acquisitions in NSW AGL Origin TRUenergy # Mass Market Customers (‘000’s) (1) Electricity 2,013 3,075 1,967 Gas 1,382 950 840 Generation Capacity (MW) (1,2,3,5) 3,906 5,784 5,613 Generation Output (GWh) (2,3,4) 9,148 17,596 29,603 Total capitalisation at 31 December 2011 7,335 17,269 6,763 (A$m book net debt + equity) S&P / Moody’s Credit Ratings BBB (Negative) / – BBB+ (Stable) / Baa1 (Neg) BBB (Stable) / – NEM-wide Generation Capacity (MW) (1,2,3,5) NEM-wide Energy output (GWh) (2,3,4) Electricity & Gas Retail Customers (1,2) National Market Share % / Million Customers 8,000 20.0% 15.7% 5,784 5,613 16.0% 6,000 4,690 32% 11.3% 11.1% 4,358 4,251 10.0% 5 12.0% 9.7% 3,906 9.3% 27% 4.0 4,000 3,033 22% 4 3.4 8.0% 18% 4.9% 2.8 2,000 3 4.0% 2.3 2 - - TRU MacGen Stanwell CS Int. Origin AGL Origin TRU MacGen Snowy Stanwell AGL Int. 1 Energy Power Hydro Power - Private sector Government owned Origin AGL TRU Other Private sector Government owned Notes 1. As at 31 December 2011 2. TRUenergy analysis; Company presentations; Electricity Statement of Opportunities for the National Electricity Market 2011, Australian Energy Market Operator 3. Based on control and ownership of output; ORG includes Mortlake; AGL includes 32.5% of Loy Yang A (“LYA”); On 24 February 201 2, AGL announced its intention to acquire the remaining interest in LYA, should this transaction be successful, AGL’s generation capacity and output would increase to 5,37 7MW and 19,519GWh, respectively 4. 12 months to 30 June 2011; Inclusive of full year generation for Eraring, Shoalhaven, Mount Piper and Wallerawang 5. Total Registered Capacity with Australian Energy Market Operator TRUenergy is the national No. 1 generator by output and No. 3 energy retailer 6
Experienced management team Managing Director Richard McIndoe Group Executive Group Executive Executive Manager Executive Manager Chief Financial General Counsel & Group Executive Manager Operations Manager Energy Human Resources Information Officer Company Secretary Manager Retail & Construction Markets Services Adrian Merrick James Spence David Lambert Adrian Merrick Gary Martin Michael Hutchinson Mark Collette (Acting) Significant business and industry experience, track record of delivery 7
TRUenergy has evolved from a base load generator to a fully integrated energy company Investment Fully Integrated Acquisition of Roaring 40s Wind Assets Acquisition of Narrabri Horizontal Integration (20%) Iona expansion 2009 Vertical Integration Acquisition of NSW assets 2011 Tallawarra site Standalone Generator commissioned 2009 Acquisition of Merchant Energy Business 2005 Time Acquisition of Yallourn 2001 Base load brown coal Expansion of the I&C Generation expansion Creation of a horizontally generator business through AusPower through acquisition, merger and vertically integrated to track generation growth and Greenfield development company Some vertical integration through AusPower and Acquired direct interest in Portfolio of generating Generation and retail across retailer contracts mass market retailer capacity in different states, states different fuel types, across Australia’s third largest Risks associated with single the merit order generator in a single energy retailer market, long generation position A clear strategy has resulted in a unique group of assets which fit the long term vision 8
Vertical integration is the key strategic driver Load Swing Generation Balanced Capacity Hallett Capacity Retail Mass Market Retail Sold National Contracts Ecogen Bought Electricity Electricity Electricity Contracts Market Business Retail I&C/Business Tallawarra Load Energy Markets Balanced Energy Generation Energy Pricing, forecasting & Mt Piper & Wallerawang green certificates Mass Market Retail Load Outage planning, Yallourn bidding & dispatch Available for Sale Sales Operations & Channels to Market Construction Energy Markets The TRUenergy portfolio is well balanced with significant scale and diversity 9
TRUenergy value chain Retail Fuel Wholesale Markets Markets TRUenergy Energy Operations and Construction Retail Business Units Markets Gas Supply / Mass Market and Contracts Transportation Business Contracts Iona Gas customer Wholesale Gas Market Processing and segments Market Storage Narrabri CSM Industrial Hedging Contracts Gas Supply / Tallawarra Transportation Contracts Hallett Narrabri CSM Mass Market and Hedging Ecogen Business customer segments Yallourn Coal Yallourn Electricity Market Mine Delta West Wholesale Coal Contracts (pool) Industrial Contracts Waterloo Cathedral Wind Rocks 10
Fundamentals of the industry are positive Defensive industry, providing an essential service for households and industry Stable returns and upside through organic growth opportunities Industry participants that are long low cost generation are well positioned to benefit from rising energy prices and demand Carbon certainty and compensation for market participants and investors Opportunities for quality upstream gas developments Industry expected to grow significantly in the next two decades – up to $240B investment required in the domestic electricity and gas sectors by 2030 1 Electricity market frameworks are robust and delivering reliable energy supply to consumers Australian Government is committed to delivering Australia’s energy needs and goals through competitive and well regulated markets and endorses a market based approach to meeting future investment needs 2 1. Department Resources Energy and Tourism forecast 2. Department Resources Energy and Tourism Energy White Paper p xiv 11
Key business strengths Strong market Robust financial position position and strong Vertically integrated credit metrics business model supporting provides a natural investment grade hedge rating Horizontally Proven strong debt diversified retail and market and TRUenergy generation portfolio shareholder support and fuel base Clear carbon strategy and Sound operating actively managed performance environmental issues Experienced management team 12
Retail Scale and Quality
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