ASPIRING ALWAYS TO LEAD

Competing Strongly Today And Innovating For Tomorrow

Phil Craig, Executive General Manager, Corporate Affairs

UBS Utilities Conference, 15 June 2012

Important Notice

This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose of any securities

in Origin, in any jurisdiction (including the USA). This presentation is for information purposes only, is in a summary form, and does not

purport to be complete. This presentation does not take into account the investment objectives, financial situation or particular needs

of any investor, potential investor or any other person. No investment decision should be made in reliance on this presentation.

Independent financial and taxation advice should be sought before making any investment decision.

Certain statements in this presentation are in the nature of forward looking statements, including statements of current intention, statements of

opinion and predictions as to possible future events. Such statements are not statements of fact and there can be no certainty of outcome in

relation to the matters to which the statements relate. These forward looking statements involve known and unknown risks, uncertainties,

assumptions and other important factors that could cause the actual outcomes to be materially different from the events or results expressed or

implied by such statements. Those risks, uncertainties, assumptions and other important factors are not all within the control of Origin and cannot

be predicted by Origin and include changes in circumstances or events that may cause objectives to change as well as risks, circumstances and

events specific to the industry, countries and markets in which Origin and its related bodies corporate, joint ventures and associated undertakings

operate. They also include general economic conditions, exchange rates, interest rates, the regulatory environment, competitive pressures, selling

price, market demand and conditions in the financial markets which may cause objectives to change or may cause outcomes not to be realised.

None of Origin or any of its respective subsidiaries, affiliates and associated companies (or any of their respective officers, employees or agents)

(the "Relevant Persons") makes any representation, assurance or guarantee as to the accuracy or likelihood of fulfilment of any forward looking

statement or any outcomes expressed or implied in any forward looking statements. The forward looking statements in this presentation reflect

views held only at the date of this presentation. In addition, statements about past performance are not necessarily indicative of future

performance. Subject to any continuing obligations under law or the ASX Listing Rules, Origin and the Relevant Persons disclaim any obligation or

undertaking to disseminate after the date of this presentation any updates or revisions to any forward looking statements to reflect any change in

expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which such statements are

based.

No representation or warranty, express or implied, is or will be made in relation to the accuracy or completeness of the information in this

presentation and no responsibility or liability is or will be accepted by Origin or any of the Relevant Persons in relation to it. In particular, Origin

does not endorse, and is not responsible for, the accuracy or reliability of any information in this presentation relating to a third party.

All references to "$" are references to Australian dollars unless otherwise specified.

All references to debt refer to interest-bearing debt.

A reference to NEM is a reference to Australia’s National Electricity Market.

2 |

An investment in Origin today provides a stake in a company with a proven

track record of delivering value …

3 |

The largest fuel integrated generation retail business in Australia and New Zealand

• Large and diversified portfolio of physical and contracted fuel supply

• Largest and most diversified generation portfolio

• Largest retail energy customer base

A substantial investment in Australia’s premier coal seam gas resource

• Strong and well aligned joint venture with unrivalled expertise

• Largest 2P CSG reserves to cover domestic and export contracts

• FID taken on first LNG train, FID on second LNG train pending

• Binding sales contracts signed for 8.6 mtpa of LNG

Growing resource opportunities domestically and overseas

• Domestic and international gas exploration opportunities

• Clean energy development opportunities including geothermal and hydro

… through investment in development projects and acquisitions

Origin is Australia’s leading fuel-integrated generator/retailer

4 |

• Large and diversified portfolio

of physical and contracted fuel

supply

• Substantial investment in

Australia’s premier Coal Seam

Gas resource

• Growing resource opportunities

domestically and overseas

• Largest and most diversified

generation portfolio

• Gas-fired, coal-fired and wind

power stations

• Peaking, intermediate and

baseload operation

• Located in all major regions of

the National Electricity Market

• Largest retail energy customer

• 4.4 million customer accounts

(electricity, gas and LPG)

• Operates in all major regions

of the NEM

• Other energy solutions include

solar PV, solar hot water,

electric vehicle charging and

trigeneration

Large, low-cost

fuel position

Diverse and flexible

generation portfolio

Australia’s leading

energy retailer

5 | Sources: (1) ABS, The Australia Institute, CommSec (2) Average household consumption in the National Energy Market, based on ABARE and ABS

1974

Standard home appliances:

• Fridge

• TV

• Radio

• Clothes washer

* Red text represents appliances that are

generally continuously in use

• Toaster

• Iron

• 1 light per room

Average new house size: 130 sqm1

Average household consumption: 4.9 MWh/annum2

2010

Standard home appliances:

• Air conditioner

• Fridge

• Second fridge

• Freezer

• Dishwasher

• Microwave

• Clothes washer

• Clothes dryer

• Computer

• Large screen TV (maybe

several)

• Blue-Ray

• Entertainment system

• Gaming console, iPod, iPad

• Air conditioner

• Hair dryer, hair straightener

• Mobile phone charger

• Halogen down lights

Average new house size: 245 sqm1

Average household consumption: 7.4 MWh/annum2

Average household energy consumption has increased significantly

over the years, driven by changes in lifestyle …

… and sustained demand growth has created price pressure

Sustained consumption growth has driven generation and network

investment, and measures to address carbon emissions …

… that have in turn driven significant increases in energy prices back to consumers 6 |

Long-term electricity consumption has grown by 3.5% p.a.,

reducing to 1.6% p.a. on average in the last ten years with

demand growth flattening and falling since 2008

Source: AEMC, “Possible future retail e electricity price movements

1-July-2011 to 30-June-2014”, released 9 December 2011

0

5

10

15

20

25

30

35

2010-102011-122012-132013-142012-13

Carbon

2013-14

Carbon

c/kWh (nominal)

Possible future retail electricity price movements

LRET

SRES

Feed in tariff

State EE and DM schemes

Other state based schemes

Transmission

Distribution

Wholesale

Retail

Forecast Actual

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0

20

40

60

80

100

120

140

160

180

200

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

Lon

g Te

rm S

mo

oth

ed

Ave

rage

Gro

wth

Rat

e

Ene

rgy

Use

-TW

h

Electricity Use by Industry - ABARE

AgricultureMiningManufacturingElec, Gas, WaterTransportCommercialResidential Lt Avg Growth Rate

While consumers are increasingly concerned about cost-of-living

issues …

… they also have higher expectations regarding service and transparency

7 |

Consumers expect to have instant access to information Energy retailers are limited by the traditional

quarterly meter reading and billing cycles

Origin has invested in retail capability that drives core operational

improvements and the ability to compete today …

… and also enables innovative customer engagement and optionality for the

future, giving customers a sense of control

8 |

• Retail Transformation (SAP implementation) completed successfully, and legacy systems being shut down

• A single SAP billing and customer management platform replacing 6 major and 17 minor systems

• Immediate process and service benefits, with cost-to-serve improvements to come

• Associated investment in leading edge self-service capability and home energy management (Smart) portals

• Ability to build commodity supply into broader customer engagement and solutions, and ultimately holistic

energy management options

Origin Online Service1 gives retail consumers easy access online to buy,

move and manage with Origin 24/7…

Key capabilities include:

• Secure, real time online account

management and bill payment

• The ability to manage gas and electricity

services across one or multiple properties

• E-billing and digital payments

• The ability to review energy usage, payment

and contract history

• Product comparison, quoting and, purchase

(including tracking of contract arrangements)

• Real time property moves or switching to

Origin Energy

… offering customers a secure place for transactions

(1) Origin’s Online Services will be available to SA customers from June 2012, followed by National rollout in August 2012. 9 |

10 |

Origin SMART will provide real-time consumption and bill transparency

Benefits of Origin SMART:

• Reduction in customer churn

• Uplift in customer acquisitions

• Reduction in high bill enquiries

• Reduction in customer complaints

• New smart technology product opportunities

• Demand management and pricing opportunities

Origin’s initial SMART promotion

11 |

www.originenergy.com.au/originsmart/take-a-tour

Initial visibility, understanding and engagement will encourage

customers to consider products and solutions, including solar PV, hot

water, and electric vehicles …

… and lead ultimately to a move from commodity supply to broader home

energy management

12 |

Origin has a proven track record of delivering innovative solutions to

consumers …

• First to offer incentive-based customer reward

schemes instead of discounts, including AFL and

magazine subscriptions

• Pioneered consumer green products

• Only retailer offering green gas

• First retailer to offer produced carbon offsets for

travel and vehicle emissions

• First to offer energy-efficient light bulbs in NSW

• Leader in solar installations

• Leader in SMART solutions

• First to announce electric vehicle charging stations

… which has, and will continue to build brand perceptions and deliver

market share and product sales benefits 13 |

GROWTH AND STABILITY

• Increases non-commodity sales

• Grows market share

• Reduces operating costs

• Protects underlying commodity sales

• Builds brand perceptions

However, innovation works most effectively in a supportive regulatory

environment

• A supportive (or at least non-invasive) regulatory framework is required for Origin and other

energy retailers to deliver innovative products and solutions to consumers

• The ability to introduce innovative solutions, such as Origin’s SMART portal and associated

offerings in Victoria, is facilitated by:

• De-regulation of pricing

• Support for competition and market-based solutions

• Support for the continuing rollout of smart meter infrastructure

• Complete separation of government from asset ownership

• Regulators could support Origin and other retailers by:

• De-regulating energy prices

• Actively supporting retail competition and innovation

• Reducing regulatory burden and red tape

• Avoiding pre-emptive regulation that constrains possible market solutions

14 |

Sometimes regulators can intervene and send the wrong signals

While the recent IPART decision is in line with expectations, if left unchanged, the QCA decision will restrict Origin’s ability to appropriately recover costs, and constrain innovation and customer choice in Queensland

15 |

Queensland retail tariff determination NSW retail tariff determination

• Origin intends to contest the

Queensland Competition Authority (QCA)

final determination on Queensland

regulated retail electricity prices for the

2012-13 financial year

• The NSW Independent Pricing and

Regulatory Tribunal (IPART) final

determination on NSW regulated retail

electricity prices for the 2012-13 financial

year is broadly in line with Origin’s

expectations

• Origin believes the determination

understates the wholesale cost of

supplying electricity to customers, not

allowing for the cost of investment in

generation, either directly or through

long-term contracts

• The final determination better reflects

the cost of providing energy to consumers

in NSW relative to the draft

determination

Digital infrastructure Mixed copper/fibre networks

20% mobile internet

Extensive mobile internet

Paperless interaction

Virtual service

Generation Dominated by coal

Much more gas and alternatives,

including baseload renewables

Distributed generation 12% households solar hot water

5% have solar PV

Mass take-up of distributed generation

• Solar hot water

• Solar PV

• Fuel cells, energy storage

mainstream

• Trigeneration precincts (residential

& commercial)

Electric Vehicles 100% fossil fuel vehicles

Significant proportion of all passenger

cars electric, charged largely at home

at night

SMART 90% dumb meters for mass market

Antiquated system drives service

requests and frustration

Most homes have a smart meter

Customers manage their consumption

• Smart appliances linked by home

networks

• Commercial grade energy demand

management systems

Australia’s energy market will continue to evolve with social and

technological change, and Origin is very prepared …

16 |

Today Tomorrow

… competing strongly today, and innovating for tomorrow

Thank you

17 |

For more information

Kylie Springall

Group Manager, Investor Relations

Email: kylie.springall@originenergy.com.au

Office: +61 2 8345 5288

Mobile: + 61 400 477 393

www.originenergy.com.au