Energy Developments (ASX: ENE) Australian Resources, Energy & Utilities Conference

19 June 2014

Greg Pritchard

Managing Director

Leaders in Remote and Clean Energy

Disclaimer

Important Notice and Disclaimer

This presentation:
• Is not a recommendation to buy, sell, hold, borrow against, mortgage or deal in connection with Energy
Developments Limited ABN 84 053 410 263 (EDL) shares/securities in any way
• Is limited in scope and covers only part of EDL's operations
• May contain forward looking statements, all of which are predictions only, and are subject to inherent risks, changes and uncertainties, including factors and risks specific to the industry in which EDL operates, as well as Government policy, general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets. Actual events or results may differ materially from the events or results anticipated, expressed or implied in any forward looking statement
Some the views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by EDL.
EDL and its directors and employees disclaim any liability for any loss arising from the use of this presentation or any information in it for any purpose and in any context to the maximum extent permitted by law.

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EDL - Market Leaders in <100MW Power >850MW distributed power generation

• Remote Energy 338MW
• Waste Coal Mine Gas 253MW
• Landfill Gas 262MW

Scale

Diversified

Long life assets

Long dated contracts

Blue chip counterparties

Capability

Growth

Strong profitability

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Key Highlights

1 Scale

2 Diversification

3 Incumbency


Blue Chip

4 Counterparties

5 Capability

6 Growth


Strong

7 Profitability

- 853MW of distributed power generation

- #1 market positions in Australia

- 82 projects across 3 continents

- >80% contracted; >50% capacity based revenue

- Long life assets and contracts

- Track record of recontracting

- BHPB; Anglo American; AngloGold Ashanti; Glencore

- Horizon Power; Power & Water Corporation

- Commitment to Zero Harm

- Centralised, integrated O&M and asset management

- 101MW commissioned/acquired in FY14 YTD

- 39MW in commissioning/construction

- FY13: EBITDA $177m; NOCF $131m; ROE 18.9%

- FY14 EBITDA: $179m - $185m

- Progressive div. policy; FY14 at least 22cps fully franked


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Long Dated Contracts with Blue Chip Counterparties


Asset capacity (MW)

Weighted average contractual years and asset life

Blue Chip Counterparties

Remote Energy (338 MW)
2030+
Clean Energy (515 MW)
2030+

-

5 10

15

Contracted years remaining

Asset life



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Our Capability - Safety and People Highly experienced team with a strong track record of safely managing and growing the business

Safety


Target Zero Harm

Industry-leading safety performance

Zero LTIs in past 16 months (in excess of 1.4 million hours worked)

One medically treated injury in last 16 months

(TRIFR: 1.00)

People


Strategies in place to attract and retain key talent

Improved MW/ FTE from 1.48 in

FY11 to 1.84 in FY13

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Our Capability - Asset Management

EDL Installed MW by Engine OEM 1

OTHER, 184

MW, 22%

CAT, 347 MW,

42%

DEUTZ, 128 MW,

15%


JEN, 174 MW,

21%

1 EDL estimate only, subject to various assumptions

Asset management planning and condition based monitoring reducing maintenance costs

In-house O&M, central control and adjacent operations reduces operational labour cost

Strong track record of consistent KPI improvements, including

Increased capacity factors

Cost savings programs

Potential for efficiency improvements in older units

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Executing Growth - $350m successfully invested since FY12 McArthur River - in partnership with Glencore

• Supporting Glencore's McArthur River mine expansion
- Doubling capacity and increasing mine life to 2038
• 24MW gas power station since 1995
• 20 year Power Purchase Agreement for 68MW

- 53MW Wärtsilä expansion
- Continued utilisation of existing 24MW power station
• ENE's largest remote energy power station at COD in
January 2014

Moranbah North - in partnership with Anglo American


• Supporting Anglo's commitment to reducing carbon emissions and gas extraction costs
• 45MW WCMG power project since 2008
• 18MW expansion underpinned by:
- 25 year WCMG supply extension with Anglo
- Network support agreement with Powerlink
• At COD (expected July 2014) total installed capacity will increase to 63MW

ENE continues to deliver accretive growth projects in a challenging market

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Executing Growth - Envirogen Acquisition Rationale

• 43MW bolt on to existing 193MW WCMG business
• Adds Glencore and Vale as 3rd and 4th
WCMG customers
• Long dated mine lives at two major sites - Oaky Creek and Integra (Glennies Creek)
• Scope for significant synergies from
performance improvement

Integration

• ENE OHSE standards and SPIRIT
values; lifted operating performance
• Removed outsourced O&M and
corporate overhead
• Applying ENE experience and practices to drive higher capacity factors and asset returns
• Excess gas future potential expansion
• Potential consolidation benefits - German Creek and Oaky are 7km apart

Tahmoor

• Glencore Xstrata

• Expected mine life to 2028

• 7.3MW

Oaky Creek

• Glencore Xstrata managed mine

• Expected mine life to 2046

• 21MW

Integra (Glennies Creek)

• Vale operated mine

• 11.7MW

Teralba

• Glencore Xstrata; mine closed

2001

• 3.1MW

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Executing Growth - Upstream LNG Key Terms

1. Purchase of 7 generator sets totaling 21MW for
~$21m in April 2014
- Initial 12-18 month rental agreement with Clarke
Energy Australia for upstream LNG electrification
- Options to acquire a further 12 generator sets totaling 36MW of contracted capacity on similar terms for ~$30m
2. Potential for
- Extension of initial lease agreement
- Subsequent utilisation in ENE WCMG or wider growth projects

Rationale

• Attractive economics with accelerated EBITDA expected from initial sale/ leaseback
• Asset redeployment into ENE business post lease
- Reduces capital costs for future projects
- EPC relocation terms locked in at acquisition
• Extends clean energy footprint closely adjacent to
WCMG assets

Reedy Creek, QLD

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Regulatory Update - RET Review

• EDL has a long history of working with Governments to deliver GHG abatement and renewable energy targets around the world

• Private sector needs certainty that the regulatory framework under which it invests will be grandfathered in the event of policy change, so those investments are not stranded

• Although the energy industry is weary of ongoing regulatory change there is a degree of confidence this can be managed through grandfathering existing investments should any material policy changes be made

"This is a Government which is determined to keep faith with businesses which have made investment decisions honestly and fairly on the basis of government policy."

Prime Minister Hon Tony Abbott MP 27 Feb 2014

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Summary 1. Market leaders in <100MW power 2. Differentiated and diversified business in a challenging market 3. Proven capability to deliver and operate bespoke distributed power solutions for our

customers, safely and on time/ budget

4. Long life assets and contracts with blue chip counterparties 5. Strong profitability and well capitalised

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