Slide 1: Centrica Annual General Meeting 2010
Centrica Annual General Meeting 2010
Slide 2: Roger Carr, Chairman
Roger Carr Chairman centrica
Slide 3: 2009 Performance Review
2009 Performance Review • Strong set of financial results • Underpinned by a good operating performance • A transformational year for the Group
Slide 4: British Gas
British Gas • Retail price cuts for customers • Competitive prices and improved service delivered customer growth • S t i bl levels Sustainable l l off profitability fit bilit • Continued support for vulnerable customers
Slide 5: Upstream Businesses
Upstream Businesses • Reduced prices for oil and gas business • Increasing our UK sources of energy Venture Production acquisition 20% stake in British Energy • Advantageous position through gas production and low carbon generation mix
Slide 6: International Businesses
International Businesses • North American business well placed for future growth • Exiting our European downstream businesses
Slide 7: May 2010 Interim Management Statement
May 2010 Interim Management Statement • Positive outlook for group earnings • Full announcement at www.centrica.com
Slide 8: Sam Laidlaw, Chief Executive
Sam Laidlaw Chief Executive centrica
Slide 9: 2009 Overview
2009 Overview • Strong set of financial results • Good performance from British Gas • Delivery of Centrica strategy
Slide 10: 2009 Performance
2009 Performance • £1.85 billion operating profit Fall in Centrica Energy profits – due to lower wholesale prices Combined British Gas profits of more than £1 billion • Lower overall tax rate lifted earnings after tax to £1 £1.11 11 billion – up 22% • Post tax earnings per share - 21.7p • 5% inc
Slide 11: Changing energy markets and industry challenges
Changing energy markets and industry challenges • Renewed focus on UK energy policy • UK energy challenges Reduce carbon emissions Secure future energy supplies £200 billion industry investment required • Similar trends emerging in North America
Slide 12: Industry Challenges
Industry Challenges • UK Government climate change targets 80% reduction in UK greenhouse gas emissions by 2050 15% of all UK energy from renewables by 2020 • Decarbonising power generation – with new nuclear and renewables
Slide 13: Delivering change requires a stable investment climate
Delivering change requires a stable investment climate • Market-based structures offer clear price signals to base future investment decisions • £10 billion investment in gas import infrastructure already l d delivered d li d • Carbon price mechanism can deliver investment in low carbon power genera
Slide 14: 2007 Strategic Priorities: The first stage in the journey
2007 Strategic Priorities: The first stage in the journey Our Strategic Priorities •1 Transform British Gas •2 Sharpen the organisation and reduce costs •3 Reduce risk through increased integration •4 Build on our growth platforms • 2007 objectives delivered in 3 years, ahead of schedule • Delivered
Slide 15: UK Downstream – British Gas
UK Downstream – British Gas • Market leading price positions for dual fuel • Significant customer service improvements • Added 140,000 energy customer accounts in 2009 • Added more than 200,000 in 2010 to date • £200m pa cost savings delivered • On track to exceed further £100m pa savings
Slide 16: UK Upstream
UK Upstream • Enhanced scale and capability of gas and oil business through acquisition of Venture • Acquired 20% equity stake in British Energy • Now more than 60% of residential gas and power supplied from our own resources
Slide 17: Building on our growth platforms
Building on our growth platforms • British Gas Business and British Gas Services profits more than doubled in three years • Strong underlying performance in Direct Energy
Slide 18: The Next Stage: Our New Strategic Priorities
The Next Stage: Our New Strategic Priorities 1 Grow British Gas . . . leading the transition to low carbon homes and businesses 2 Deliver value from our growing upstream business . . . securing sustainable energy for our customers 3 B ild an integrated Build i t t d North N th American A i business
Slide 19: Grow British Gas
Grow British Gas . . . leading the transition to low carbon homes and businesses • Developing a UK-wide energy services business • Building on our distinctive capabilities National base of over 9,000 qualified engineers Serving 12 million homes, homes half of all UK households • Capturing new ma
Slide 20: Deliver value from our growing upstream business
Deliver value from our growing upstream business . . . securing sustainable energy for our customers • Maximise value from our investment choices Access to a wide range of opportunities Targeting projects with the strongest returns • Deliver value from our existing assets Transformed scale and
Slide 21: Build an integrated North American business
Build an integrated North American business . . . with leading positions in deregulated markets • Develop leading positions in chosen markets No. 1 or 2 energy supplier Grow our services capability • Improve Impro e returns ret rns from existing e isting b business siness • Increase proportion o
Slide 22: Drive superior financial returns
Drive superior financial returns . . . through operating performance and our investment choices • Strong HSE and operating performance essential • Maintain strong balance sheet • Targeted investment to support strategy and capabilities • Investments to achieve consistent earnings growth
Slide 23: Summary
Summary • 2009 a transformational year for Centrica • Original strategic priorities now delivered • New strategic priorities established • Well positioned for growth in a new low carbon world • We remain focused on shareholder value
Slide 24: Centrica Annual General Meeting 2010
Centrica Annual General Meeting 2010