Presentation Investor October 2011
Agenda TRUenergy overview Strong, balanced business model Retail Scale and Quality Diverse generation portfolio supported by strong fuel position Strong financial discipline and position Summary 2
A strong portfolio of diversified assets RETAI L ASSETS* 2.8 million customer accounts Customers ELECTRI CI TY ASSETS^ 5 ,6 1 3 MW Yallourn Coal-fired power station 1,480 Tallawarra A Gas-fired power station 420 Hallett Gas-fired power station 203 Delta Western Gentrader Offtake Coal-fired 2,400 (Mt Piper & Wallerawang) power stations Newport & Jeeralang Offtake from gas-fired plants 966 Waterloo & Cathedral Rocks Wind farms 144 PROSPECTI VE DEVELOPMENT^ 1 ,5 4 6 MW Tallawarra Stage B (permitted) 420 Marulan Gas-fired power station 700 (permitted) Mallee Solar Park Proposal for solar power station 180 Petratherm 10% equity in Paralana 30 geothermal project Stony Gap, Roberstown & Wind farms 216 Waterloo II A & B GAS ASSETS^ Iona gas storage and 22 PJ gas storage facility processing plant Eastern Star Gas 30.8% (> 500PJ of equity CSG: Gunnedah Basin. Subject to shareholder & court approval) Upstream gas Equity in Queensland CSM developments * As at 30 June 2011 ^ As at 30 September 2011 TRUenergy has evolved to be one of Australia’s leading vertically integrated and diversified energy com panies 3
Delivering financial scale OVERVI EW Equity $4.2bn (as at 30 June 2011) Total assets $9.2bn (as at 30 June 2011) Total liabilities $5.0bn (as at 30 June 2011) Draw n net debt $2.6bn (as at 30 June 2011) Revenue $3.0bn* (6 months to 30 June 2011) EBI TDAF $379M* Norm alised (6 months to 30 June 2011) A & B NPAT $148M^ Norm alised (6 months to 30 June 2011) •I ncludes only four months of NSW assets ^ Excludes NSW acquisition costs and stamp duty and only four months of NSW contribution Vertically integrated m odel provides broad optionality 4
A scale player in the industry post-NSW sale AGL Origin TRUenergy # Custom ers ( ‘0 0 0 ’s) Electricity 1,925 3,214 1,984 Gas 1,369 923 827 Generation Capacity ( MW ) 3,116 5,948 5,613 Generation Output ( MW h) ( 1 ) 4,938 18,620 31,416 Total capitalisation at 3 0 June 2 0 1 1 6,813 17,799 6,819 ( A$ m book net debt + equity) S&P / Moody’s Credit Ratings BBB (Stable) / – BBB+ (Stable) / Baa1 (Neg) BBB (Stable) / – NEM- w ide Generation Capacity ( MW ) ( 2 ) Existing NEM- w ide Energy output ( GW h) ( 3 ) Electricity & Gas Retail Custom ers MW GWh National Market Share % Shown in Blue 8,000 Market Share / Million Customers 5,948 5,613 33% 6,000 4,870 20% 5 4.1 4,006 15.4% 27% 3,330 4,000 3,116 3,056 15% 4 23% 3.3 11.2% 9.5% 2.8 9.1% 17% 8.7% 8.3% 10% 3 2,000 6.9% 2.1 5% 2 2.4% 0 Origin TRU MacGen Snowy Stanwell AGL Int. 1 0% Hydro Corp. Power TRU MacGen I nt. Origin CS Loy Stanwell AGL 0 Existing Capacity Post NSW Acquisition Power Energy Yang Pre-Acquisition NSW Acquisitions Origin AGL TRU Ot hers Government Owned Government Owned Exist ing Cust om ers Post NSW Privat isat ion Notes 1. TRUenergy analysis of annual output for Origin and TRUenergy inclusive of estimated full year generation for Eraring/ Shoalhaven and Mount Piper/ Wallerawang 2. Source: Scheduled and Semi-Scheduled capacity for winter 2011/ 12 as per Australian Energy Market Operator (“AEMO”); Based on equity ownership (as per public filings); AGL capacity includes Oaklands Hill and Hallett 5 wind farms; Origin capacity includes Mortlake 3. AGL’s generation (GWh) does not include their 32.5% interest in Loy Yang; International Power includes their 92% interest in Hazelwood Power TRUenergy now the national No. 2 electricity retailer, No. 3 gas retailer, 5 No. 1 generator by output, and No.2 generator by capacity
Experienced m anagem ent team Managing Director Richard McIndoe (1,209 employees) General Director Chief Director Counsel & Director Director Director Corporate Director Financial Operations & Company Energy Retail Information and Human Officer Construction Secretary Markets Adrian Services Government Resources Kevin Michael Mark Collette Merrick David Purvis David Gary Martin Affairs Holmes Hutchinson Lambert Kate Shea Significant business and industry experience, track record of delivery 6
Evolution to reach full integration w ith scale Fully I ntegrated W ith Scale I nvestm ent Roaring 4 0 s Horizontal I ntegration w ind assets acquired 2 0 1 1 Tallaw arra PS com m issioned 2 0 0 9 Proposed Eastern Star upstream CSG 2 0 1 1 Vertical I ntegration Hallett pow er station 2 0 0 7 Roaring 4 0 ’s w ind JV Acquired NSW retail and gentrader Acquired TXU form ed 2 0 0 5 2 0 1 1 Merchant Energy Business 2 0 0 5 Geotherm al investm ent 2 0 0 8 Yallourn/ AusPow er Tallaw arra pow er I ona gas plant station construction 2 0 0 6 expansion 2 0 0 9 Tim e Acquired Yallourn 2 0 0 1 � � � � Base load brown coal Generation expansion via I&C expansion to track Vertically integrated generator acquisition, greenfield generation growth company with national development scale and balance of � � Some vertical integration Gas plant expansion generation and retail � through AusPower I&C Generation portfolio in � Development of Tallawarra � retail business different states, different In-house renewables and power station fuel types, across merit gas expertise � Risks associated with order � Portfolio optimisation via � single generator in a single Reduced emissions power station asset swap � market Acquired direct interest in intensity with AGL mass market retailer � Australia’s third largest energy retailer A clear strategy has resulted in a unique group of assets 7
Key business strengths Strong m arket Robust financial position position and strong Vertically integrated credit m etrics business m odel supporting provides a natural investm ent grade hedge rating Horizontally Proven strong debt diversified retail and m arket and TRUenergy generation portfolio shareholder support and fuel base Clear carbon strategy and Sound operating actively m anaged perform ance environm ental issues Experienced m anagem ent team Robust business m odel 8
Strong, balanced business m odel
Vertical integration is the key strategic driver Load Swing Generation Balanced Capacity Hallett Capacity Mass Market Retail Retail Sold National Contracts Ecogen Bought Electricity Electricity Electricity Contracts Market Business Retail I&C/Business Tallawarra Load Balanced Energy Generation Energy Energy Pricing, forecasting & Mt Piper & Wallerawang Markets 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 w ell balanced w ith significant scale and diversity 1 0
Vertical integration reduces risk and increases flexibility Historical Generation and Retail Load 2 0 1 1 Actual Electricity Position* 18 30.0 16 25.0 14 Peaking Retail Gen Load 12 & Caps 20.0 Swing 10 Swaps Qld/SA TWh TWh 15.0 8 Gas Fired 6 10.0 NSW Delta West 4 5.0 2 Yallourn Vic 0.0 0 2007 2008 2009 2010 Long Short Yallourn EcoGen Tallawarra Other Resi SME Business I&C * As at 31 July 2011 Portfolio allow s us to m axim ise returns in a volatile m arket 1 1
Merit Order • Portfolio of generation assets with strength in both geographic and fuel diversity • TRUenergy’s portfolio of assets and options is well positioned to lead the transition to a low emissions future • TRUenergy’s average weighted short run marginal cost (“SRMC”) to generate is slightly below the NEM weighted average 2 0 1 0 I ndicative Merit Order Wallerawang: 1,000MW Black Coal 440 Hallett: 203MW Gas ( No Carbon Price) 400 Yallourn: 1,480MW Brown Coal 380 Mt Piper: 1,400MW Black Tallawarra: 435MW Gas Newport: 500MW Gas SRMC ($/ MWh) 120 100 80 60 Coal 40 NEM average ($30.6/ MWh) 20 0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Indicative capacity (MW) Excludes semi scheduled capacity (such as wind power) and hydro, which effectively has zero SRMC, and assumes fuel cost is held constant Brown coal (excl. Yallourn) generators highlighted in brown Source: TRUenergy modelling. NEM Average line shown is the aggregate of the SRMC estimated for each generator multiplied by its capacity. TRUenergy’s portfolio is low er than m arket average m erit order w ith or w ithout carbon 1 2
Recommend
More recommend
