Slide 1: Centrica plc Preliminary Results
Centrica plc Preliminary Results for the year ended 31 December 2022
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Centrica shares or other securities. This presentation contains certain forward-looking statements with respect to the financial condition, results, operations and busi
Slide 3: Chris O’Shea, Group Chief Executive
Chris O’Shea Group Chief Executive 3 Centrica plc Preliminary Results 2022
Slide 4: Our balanced portfolio is delivering strong performance
Our balanced portfolio is delivering strong performance • Strong operational performance across the Group – Investing in customer service, support and pricing in Retail – Managing commodity markets very well in Optimisation – Strong Infrastructure availability, volumes and profits • Strong financial
Slide 5: Helping customers and communities through the energy crisis
Helping customers and communities through the energy crisis Customers Colleagues Communities • Invested over £200m in customer • Pay deal and significant one-off • Provided £130m of vulnerable service, support and pricing cost of living support customer support through the WHD – Includes £50m for UK
Slide 6: We are well into Phase 2 of the turnaround and increasingly engaging in Phase 3
We are well into Phase 2 of the turnaround and increasingly engaging in Phase 3 PHASE 1 PHASE 2 PHASE 3 Simplify and de-risk the Stabilise the business Deliver growth portfolio and strengthen and improve operational and position ourselves the balance sheet performance for net zero • Portfolio simpli
Slide 7: Kate Ringrose, Group Chief Financial Officer
Kate Ringrose Group Chief Financial Officer 7 Centrica plc Preliminary Results 2022
Slide 8: Strong financial performance in 2022
Strong financial performance in 2022 Year ended 31 December (£m) 2021 2022 From continuing operations: Adjusted revenue 18,300 33,637 Adjusted gross margin 2,870 5,439 Adjusted operating costs (1,819) (2,223) Adjusted operating profit 1 948 3,308 Net finance cost (187) (143) Group tax charge (incl.
Slide 9: Adjusted operating profit growth
Adjusted operating profit growth Adjusted operating profit Year ended 31 December (£m) 2021 2022 Retail 267 94 British Gas Services & Solutions 121 (9) British Gas Energy 118 72 Bord Gáis Energy 28 31 Optimisation 18 1,444 Centrica Business Solutions (52) 44 Energy Marketing & Trading 70 1,400 Infra
Slide 10: Further robust cash flow generation
Further robust cash flow generation Year ended 31 December (£m) 2021 2022 Year ended 31 December (£m) 2021 2022 EBITDA from continuing operations 1,850 3,993 Free cash flow from continuing operations 1,174 2,487 Tax (140) (574) Interest (231) (126) Dividends received 2 60 Pension deficit payment (36
Slide 11: A strong balance sheet and significant liquidity
A strong balance sheet and significant liquidity • 2022 closing net cash of £1.2bn Liabilities (£bn) • Triennial agreement with pension trustees finalised FY 2020 FY 2021 FY 2022 2 – Roll-forward deficit of ~£850m as at 31 Dec 2022 • Material reduction in decommissioning liabilities 0 • Strong inves
Slide 12: 2023 outlook
2023 outlook • Usual external factors out of our control Spirit, Nuclear and Centrica Storage – Weather, commodity prices, economy hedging positions 2023 2024 • Balanced portfolio and improving foundations Average Average – Well placed to manage a range of environments Volume hedged Volume hedged he
Slide 13: Chris O’Shea, Group Chief Executive
Chris O’Shea Group Chief Executive 13 Centrica plc Preliminary Results 2022
Slide 14: Centrica is a uniquely integrated energy company
Centrica is a uniquely integrated energy company Unlocking synergies across retail, optimisation and infrastructure We are focused and flexible due to the dynamic nature of the environment we operate in We will only invest where the risk is compensated by the available returns We are market led and
Slide 15: We have growth opportunities across the energy value chain
We have growth opportunities across the energy value chain Focusing on delivery… Positioned for growth… Creating Exploring value from optionality… optionality… Nuclear Energy is Services & Bord Gáis is an CBS is focusing Energy Marketing Centrica Storage Spirit has an We have a 20% transitioning Sol
Slide 16: Investing in customer service and delivering customer growth in British Gas Energy
RETAIL We are investing in customer service and delivering customer growth in British Gas Energy Platform migration (m) Touchpoint NPS 2.18 24 13 11 0.04 0.37 FY20 FY21 FY22 FY21 FY22 FY22 (New platform only) Cost per residential energy customer Customers Dual-run IT costs 84 83 9.2 8.9 8.8 8.6 7.8
Slide 17: Engaging with the Regulator on the evolution of UK energy regulation
RETAIL We are engaging with the Regulator on the evolution of UK energy regulation • Energy crisis shows importance of responsible business models and disciplined approach to hedging • Some positive regulatory changes – Market Stabilisation Charge and ban on acquisition tariffs – Recovery of efficie
Slide 18: Better operational metrics in British Gas Services & Solutions
RETAIL Better operational metrics in British Gas Services & Solutions with the focus on improving commercial performance Absence rate Reschedule rate 15.0% 15.0% 12.5% 12.5% 10.0% 10.0% 7.5% 7.5% 5.0% 5.0% 2.5% 2.5% 0.0% 0.0% FY20 FY21 FY22 Jan-22 Jan-23 FY20 FY21 FY22 Jan-22 Jan-23 Engineer NPS Cus
Slide 19: We have growth opportunities across the energy value chain
We have growth opportunities across the energy value chain Focusing on delivery… Positioned for growth… Creating Exploring value from optionality… optionality… Nuclear Energy is Services & Bord Gáis is an CBS is focusing Energy Marketing Centrica Storage Spirit has an We have a 20% transitioning Sol
Slide 20: Adding value from Energy Marketing & Trading capabilities
OPTIMISATION We are adding value from our strong Energy Marketing & Trading capabilities and contractual positions • Leading physical trading and risk management capability • Scalable and digital proprietary platform used across markets • Growth across three pillars - Power & Gas Trading, Countries
Slide 21: Attractive LNG positions and understanding of the global gas market
OPTIMISATION We have attractive LNG positions and a deep understanding of the global gas market LNG physical cargoes moved each year 300 250 200 GasLog vessel Isle of Grain charters 150 100 Sabine Pass 50 Delfin Deepwater Port Qatar 0 2019 2020 2021 2022 Mozambique joint procurement % of Sabine Pass
Slide 22: Investing in flexible and low carbon generation assets for value
OPTIMISATION We are investing in flexible and low carbon generation assets for value Existing assets and in-train projects as at February 2023 Location Capacity Capex Pre-FID Post-FID Operational Cork, Ireland (Whitegate) 445 MW - Brigg, UK 50 MW - Flexible gas-fired Dublin, Ireland 100 MW ~€250m po
Slide 23: We have growth opportunities across the energy value chain
We have growth opportunities across the energy value chain Focusing on delivery… Positioned for growth… Creating Exploring value from optionality… optionality… Nuclear Energy is Services & Bord Gáis is an CBS is focusing Energy Marketing Centrica Storage Spirit has an We have a 20% transitioning Sol
Slide 24: Existing Infrastructure positions performing well with net zero opportunities
INFRASTRUCTURE Existing Infrastructure positions are performing well and all have net zero investment opportunities Nuclear Investment • Strong production in 2022 • 10 year gas storage licence • High asset availability in 2022 • No new exploration • 30bcf capacity Winter 22/23 • Closure dates • In-f
Slide 25: We will invest to grow and strengthen Centrica
We will invest to grow and strengthen Centrica • £200bn industry-wide spend required in UK and Ireland 2021-30 • Strong balance sheet, flexible business model and detailed knowledge of markets key to success • Investing in new retail platforms to position us for decarbonisation • £400m of in-train f
Slide 26: A simpler, de-risked, more efficient company with net zero opportunities
A simpler, de-risked, more efficient company with attractive net zero opportunities • A uniquely integrated energy company engaged in Retail, Optimisation and Infrastructure • Driving improved operational performance for customers – Investing in customer service • Capability and financial strength t
Slide 27: Appendix
Appendix 27 Centrica plc Preliminary Results 2022
Slide 28: Remeasurements, exceptional items and statutory profits
Remeasurements, exceptional items and statutory profits Year ended 31 December (£m) H1 2022 H2 2022 2022 Adjusted operating profit from cont. ops 1,342 1,966 3,308 Onerous energy supply contract provision (1,869) 3,635 1,766 Re-measurements - Upstream, EM&T and Bord Gáis (3,398) 4,602 1,204 Re-measu
Slide 29: Revenue
Revenue Year ended 31 December (£m) 2021 2022 Continuing operations British Gas Services & Solutions 1,513 1,527 British Gas Energy 7,513 13,096 Bord Gáis Energy 1,111 1,771 Centrica Business Solutions 1,981 3,000 Energy Marketing & Trading 6,082 14,441 Upstream 2,282 3,351 Group revenue included in
Slide 30: Adjusted gross margin
Adjusted gross margin Year ended 31 December (£m) 2021 2022 Continuing operations British Gas Services & Solutions 574 504 British Gas Energy 849 1,114 Bord Gáis Energy 136 160 Centrica Business Solutions 143 238 Energy Marketing & Trading 242 1,558 Upstream 926 1,874 Profit Share — (9) Group adjust
Slide 31: Adjusted EBITDA
Adjusted EBITDA Year ended 31 December (£m) 2021 2022 Continuing operations British Gas Services & Solutions 164 38 British Gas Energy 214 154 Bord Gáis Energy 46 52 Centrica Business Solutions (4) 89 Energy Marketing & Trading 119 1,446 Upstream 1,252 2,182 Other 59 32 Total Group EBITDA 1,850 3,99
Slide 32: Adjusted operating profit
Adjusted operating profit Year ended 31 December (£m) 2021 2022 Continuing operations British Gas Services & Solutions 121 (9) British Gas Energy 118 72 Residential energy supply 115 23 Business energy supply 3 49 Bord Gáis Energy 28 31 Centrica Business Solutions (52) 44 Energy Marketing & Trading
Slide 33: Net investment
Net investment Year ended 31 December (£m) 2021 2022 Continuing operations British Gas Services & Solutions (29) (34) British Gas Energy (15) (6) Bord Gáis Energy (36) (38) Centrica Business Solutions (33) (35) Energy Marketing & Trading (7) (10) Upstream (88) (123) Other 1 (24) (12) Net capex (exc.
Slide 34: Free cash flow
Free cash flow Year ended 31 December (£m) 2021 2022 Continuing operations British Gas Services & Solutions 170 (19) British Gas Energy 16 1,283 Bord Gáis Energy 3 81 Centrica Business Solutions 22 (48) Energy Marketing & Trading 206 199 Upstream 835 1,539 Other 62 26 Segmental free cash flow 1,314
Slide 35: Spirit Energy – P&L and KPIs
Spirit Energy – P&L and KPIs 2021 vs 2022 2022 KPIs 2021 2022 Retained Disposed Total Production Gas (mmboe) 23.7 19.1 16.3 2.8 19.1 Production Oil (mmboe) 13.1 4.7 1.2 3.5 4.7 Achieved gas price (p/th) 70 109 94 191 109 Achieved liquids price (£/boe) 44 59 43 64 59 Gas and liquids realisations (£m)
Slide 36: Market commodity prices
Market commodity prices Average Brent oil prices Average UK NBP gas prices Average UK baseload power ($/bbl) (p/th) prices (£/MWh) $101 272p £272 $85 $80 $71 151p £147 £148 141p £129 $42 114p £37 25p 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 as at as at as at as at a
Slide 37: CDP and TCFD
CDP and TCFD • CDP is a global non-profit organisation that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests. It was voted the number one climate research provider by investors. • CDP’s annual environmental disclosure and scorin
Slide 38: A responsible employer
A responsible employer • 94% leadership score based on transparency vs. 78% utility sector average and a 68% average for all responding companies. Received special mention for our disclosure in the categories of ‘Being the most transparent’, ‘Workforce action’ and ‘Supply chain data’. • Spanning a r