ORIGIN ENERGY LIMITED — Capital/Financing Update 2016

Feb 11, 2016

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To Company Announcements Office Company ASX Limited From Helen Hardy Subject Changes to Origin operating segments	Facsimile1300 135 638
	Date 12 February 2016
	Pages 5

Please find attached a release on the above subject.

Regards

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Helen Hardy Company Secretary 02 8345 5000

Origin Energy Limited ACN 000 051 696 • Level 45 Australia Square, 264-278 George Street, Sydney NSW 2000 GPO Box 5376, Sydney NSW 2001 • Telephone (02) 8345 5000 • Facsimile (02) 9252 1566 • www.originenergy.com.au

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ASX/Media Release

12 February 2016

Changes to Origin operating segments

Origin Energy Limited (Origin) announces it has revised its operating segments ahead of the company’s interim financial results for the half year ended 31 December 2015, to be released on 18 February 2016.

The adjustment has been made to reflect Origin’s divestment of its 53.09% interest in Contact Energy which occurred on 10 August 2015, and the decision announced on 20 August 2015 to combine the Exploration & Production and LNG businesses into a single segment called Integrated Gas from 1 July 2015. The new segment reporting format will be used for the presentation of Origin’s interim financial results for the half year ended 31 December 2015. The OFR will include additional information on the performance of the Integrated Gas segment for each of the LNG and E&P operations.

The changes to Origin’s operating segments do not result in any change to the reported statutory or underlying profit for the consolidated group in prior periods.

A summary of the new operating segments is provided below. Appendix 1 includes a restatement and reconciliation of segment EBITDA as well as a summary of the restated earnings from continuing operations for the financial year ended 30 June 2015 and for the half year ended 31 December 2014, using the revised segments.

Segments to be reported in the December 2015 Interim Financial Statements (on a continuing operations basis):

Segment	**Description **
Energy Markets	Integrated provider of energy solutions to retail and wholesale markets
(unchanged)	in Australia andinthePacific.
Integrated Gas	Gas and oil exploration and production interests principally in Australia
	and New Zealand; Origin’s equity accounted investment in Australia
	Pacific LNG, including costs (net of recoveries) incurred by Origin as
	upstream operator and corporate service provider and other costs
	incurred in managing this investment and Origin’s exposure to LNG
	pricingrisk.
Corporate	Corporate activities that arenot allocated to otheroperating segments

For further information please contact:

Media Investors Stephen Ellaway Chau Le Senior External Affairs Manager Group Manager, Investor Relations Ph: +61 2 9375 5834 Ph: + 61 2 9375 5816 Mobile: +61 417 851 287 Mobile: +61 467 799 642

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About Origin Energy

Origin Energy (ASX: ORG) is the leading Australian integrated energy company with market leading positions in energy retailing (approximately 4.3 million customer accounts), power generation (approximately 6,000 MW of capacity owned and contracted) and natural gas production (1,093 PJ of 2P reserves and annual production of 82 PJe). To match its leadership in the supply of green energy, Origin also aspires to be the number one renewables company in Australia.

Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing Australia’s biggest CSG to LNG project based on the country’s largest 2P CSG reserves base.

www.originenergy.com.au

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Appendix 1: Changes to Operating Segments

Divestment of Contact Energy

On 10 August 2015, Origin divested its entire 53.09% interest in Contact Energy, with the proceeds directed towards repaying A$1.4 billion of debt and redeeming NZ$200m of redeemable preference shares. Contact Energy will be classified as a discontinued operation in the upcoming Interim Financial Results for the half year ended 31 December 2015, with the remainder of the business presented on a continuing operations basis. This classification is consistent with that reported in the Financial Statements for the year ended 30 June 2015.

Integrated Gas segment

At the time Origin took the final investment decision on Train 1 of the Australia Pacific LNG project in July 2011 a dedicated segment was established to allow a complete focus on project delivery. With the completion of the project, Origin has recombined the Exploration & Production and LNG businesses into a single segment called Integrated Gas. This will allow Origin to focus on delivering cost saving initiatives as well as safe and reliable operations across all upstream activities.

Restatement of comparative operating segment EBITDA

As a consequence of the above changes, Origin has revised its operating segments as well as the allocation of certain costs previously captured within the Corporate segment.

Comparative segment balances for the financial year ended 30 June 2015 and the half year ended 31 December 2014 will be restated with reconciliations for segment EBITDA provided below.

First Half FY2015 Energy Markets Exploration & Production LNG Corporate Consolidated (Continuing Operations)	First Half FY2015 Energy Markets Exploration & Production LNG Corporate Consolidated (Continuing Operations)	First Half FY2015 Energy Markets Exploration & Production LNG Corporate Consolidated (Continuing Operations)	First Half FY2015 Energy Markets Exploration & Production LNG Corporate Consolidated (Continuing Operations)	First Half FY2015 Energy Markets Exploration & Production LNG Corporate Consolidated (Continuing Operations)	Contact Energy Consolidated (Total)	Contact Energy Consolidated (Total)
		(now Integrated Gas)
Underlying EBITDA (previously reported) Corporate cost reallocations 1) LNG net recovery 2) Other corporate expenses	617 4	208 39 21 5	(18) (21) (9)	846	234	1,080
Underlying EBITDA(restated)	621	273	(48)	846	234	1,080
Full Year FY2015 Energy Markets Exploration & Production LNG Corporate Consolidated (Continuing Operations)					Contact Energy Consolidated (Total)
		(now Integrated Gas)
Underlying EBITDA (previously reported) Corporate cost reallocations 1) LNG net recovery	1,260	399 72 27	(69) (27)	1,662	487	2,149
Underlying EBITDA(restated)	1,260	498	(96)	1,662	487	2,149

• 1) LNG net recovery: Represents costs (net of recoveries) incurred by Origin as Upstream operator and corporate service provider for Australia Pacific LNG, as well as other costs incurred in managing this investment and Origin’s exposure to LNG pricing risk.

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• 2) Other Corporate reallocations: Represents an internal over-allocation of Corporate costs to Integrated Gas and Energy Markets that occurred in 1H FY2015 which was subsequently reversed in 2H FY2015.

A detailed restatement of underlying earnings from continuing operations for the financial year ended 30 June 2015 and the half year ended 31 December 2014 is provided below.

Reconciliation of statutory to underlying earnings First Half FY2015 Full Year FY2015	Reconciliation of statutory to underlying earnings First Half FY2015 Full Year FY2015
Statutory Profit/(loss) (25) (658) Items excluded from underlying profit (371) (1,340) Underlying Profit - from total operations 346 682 Underlying Profit - from continuing operations 316 603 UnderlyingProfit- fromdiscontinued operations 30 79
Summary of underlying earnings from continuing operations First Half FY2015	Full Year FY2015
Underlying EBITDA 846 1,662 Underlying depreciation and amortisation (304) (618) Underlying share of interest, tax, depreciation and amortisation of equity accounted investees (25) (62) Underlying EBIT 517 982 Underlying net financing costs (56) (78) Underlying Profit before income tax and non-controlling interests 461 904 Underlying income tax expense (144) (291) Non-controlling interests’share of Underlying Profit (1) (10)
Underlying Profit - from continuing operations 316 603