Slide 1: Centrica plc Interim Results
centrica Centrica plc Interim Results transition to a lower carbon future
Slide 2: Forward-looking statements
centrica Forward-looking statements This presentation includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms anticipates, believes, could, estimates, expects,
Slide 3: Chris O'Shea, Group Chief Executive
centrica Chris O'Shea Group Chief Executive
Slide 4: First half summary
centrica First half summary * Resilient performance overall against the backdrop of Covid-19 * Focus has been on protecting the business and keeping customers warm, safe and supplied with energy ¢ Good customer service levels maintained ¢ Adjusted operating profit down by £56m compared to H1 2019 —
Slide 5: Helping colleagues, customers and communities through COVID-19
centrica Helping colleagues, customers and communities through COVID-19 Colleagues * Appropriate safeguards and PPE in place for field and office-based colleagues * 15,000 colleagues shifted to working from home * Flexible working hours for parents and carers * Variety of options to support mental h
Slide 6: Proposed sale of Direct Energy
centrica Proposed sale of Direct Energy Transaction headlines Strategic rationale © Proposed sale of Direct Energy, comprising North America Home and North America Business, to NRG Energy for $3.625bn (£2.85bn) in cash, on a debt free, cash free basis ¢ Attractive valuation, representing 7.9x 2019 u
Slide 7: Accelerated focus on simplifying and modernising Centrica
centrica Accelerated focus on simplifying and modernising Centrica * Centrica remains a customer-focused energy services and solutions company, helping customers transition to a low carbon future * Significant Group restructure underway, putting the customer at the heart of everything we do and acce
Slide 8: Johnathan Ford, Chief Financial Officer
Pi: Johnathan Ford J Chief Financial Officer Pt
Slide 9: Operating profit
Operating profit ADJUSTED OPERATING PROFIT centrica Period ended 30 June (£m) 2019 2020 A Period ended 30 June 2020 £m UK Home 181 229 27% Adjusted operating profit 343 Ireland 31 30 (3%) Pre-tax exceptional items : (1,036) North America Home 77 99 29% Impairment of E&P assets (381) Centrica Home So
Slide 10: Adjusted operating profit drivers
centrica Adjusted operating profit drivers Covid-19 impacts and mitigations Customer- facing UK default Commodity Upstream / FX performance tariff cap performance Impact: Spirit lower ; (€219m) (£207m) som £343m Mitigations: . £1 éam ens Other Spirit: £126m CSL:(£30m) Nuclear:(£40m) Includes: un UKH
Slide 11: Impacts on operating profit (£m)
Impacts on operating profit (£m)
Slide 12: Robust cash flow and net debt performance
centrica Robust cash flow and net debt performance Period ended 30 June (£m) 2019 2020 EBITDA 1,075 869 Tax (79) (49) Dividends received - 23 Working capital / other (252) 155 Net investment a. (139), ; (187) nclacing small acquisitions) (359) Ee) Divestments 216 117 Exceptional cashflows (175) (61)
Slide 13: A strengthened balance sheet
centrica A strengthened balance sheet * H1 2020 net debt down £0.4bn vs end 2019 to £2.8bn | Debt maturity profile(fm) | Debt maturity profile(fm) (£m) * Strong liquidity 800 Hybrid bonds — £1.3bn of available cash @ Borrowings — £2.96n of undrawn committed credit facilities * Continue to target str
Slide 14: Chris O'Shea, Group Chief Executive
= = no fe (= 2) ™ fe 1 a cs Chris O'Shea 4 > N [ : Group Chief Executive | Rohinton Mistry
Slide 15: We have a clear view on how to deliver the turnaround
centrica We have a clear view on how to deliver the turnaround ¢ We will prioritise and focus on the areas where we can win ¢ We will move our focus from unsustainable tactical cost cutting to strategic commercial growth opportunities in our core businesses ¢ We will reduce management obstacles to g
Slide 16: Our strengths with customers and energy supply
with customers energy supply End-to-end design, install and maintain capabilities with customers Market leading virtual power plant capabilities with customers of total smart thermostats installed Strong wholesale and trading capabilities renewable route engineers and technicians to market capacity
Slide 17: We are restructuring to simplify and modernise the Group
centrica We are restructuring to simplify and modernise the Group =e \ * Reducing the numbers of layers in the company from 9 to 6 * Removing over half the Group's managers * Simpler customer service model with each customers served by only one business unit * Modernising working practices and terms
Slide 18: We have a clear vision for Centrica
We have a clear vision for Centrica * An energy services and solutions company * Simpler, leaner, customer-focused business model * Engaged and empowered colleagues Stable and predictable profits and free cash flow * Reduced risk and a strong balance sheet centrica 18 Interim Results 2020
Slide 19: Appendix
Slide 20: Revenue
Revenue Period ended 30 June (£m) 20191 2020 A UK Home 4,335 4,099 (5%) Weland 468 AB 1088) North America Home 1,366 1,351 (1%) Centrica Home Solutions 34 20 (41%) UK Business 1,023 986 (4%) North America Business 4,225 3,443 (19%) Centrica Business Solutions 120 109 (9%) Energy Marketing & Trading
Slide 21: Adjusted gross margin
centrica Adjusted gross margin Period ended 30 June (£m) 20191 2020 A UK Home 797 778 (2%) Fea ssmmnmnnnannannnnnnning Borsa Soro G8, North America Home 307 277 (10%) Centrica Home Solutions 8 6 (25%) Total Centrica Consumer 1,190 1,145 (4%) UK Business 106 49 (54%) North America Business 155 118 (2
Slide 22: EBITDA
EBITDA Period ended 30 June (£m) 20191 2020 A UK Home 252 304 21% Weland 40 8 6). North America Home 96 112 17% Centrica Home Solutions (39) (19) 51% Total Centrica Consumer 350 436 25% UK Business 27 (30) nm North America Business 7 (25) nm Centrica Business Solutions (16) (17) (6%) Energy Marketin
Slide 23: Adjusted operating profit
Adjusted operating profit Period ended 30 June (£m) 20191 2020 A UK Home 181 229 27% Weland 3 0B. North America Home 77 99 29% Centrica Home Solutions (49) (29) MN% Total Centrica Consumer 240 328 37% UK Business 19 (39) nm North America Business (14) (47) (236%) Centrica Business Solutions (27) (34
Slide 24: Adjusted operating cash flow
Adjusted operating cash flow Period ended 30 June (£m) 20191 2020 A UK Home 150 193 29% Ireland 49 36 (27%) North America Home 83 146 76% Centrica Home Solutions (32) (21) 34% Total Centrica Consumer 250 354 42% UK Business 11 Ae (62%) North America Business (30) 96 nm Centrica Business Solutions (3
Slide 25: Centrica Consumer
Centrica Consumer Period ended 30 June (£m) 2019 2020 A Adjusted operating profit / (loss) UK Home 181 229 27% Energy 86 93 8% Services 95 136 43% Irland 31 eG) North America Home 77 99 29% Energy 80 98 23% Services (3) 1 nm Centrica Home Solutions (49) (29) 41% Centrica Consumer 240 328 37% Adjuste
Slide 26: Centrica Business
Centrica Business Period ended 30 June (£m) 20191 2020 A Adjusted operating profit / (loss) _ c a a UK Business 19 (39) nm North America Business (14) (47) (236%) Centrica Business Solutions (27) (34) (26%) Energy Marketing & Trading (EM&T) 32 115 259% Core EM&T activities 50 142 184% Legacy gas con
Slide 27: Upstream
Upstream Period ended 30 June (£m) 20191 2020 A Adjusted operating profit / (loss) ; . ; . Spirit 90 3 (63%) CSL 58 1 (98%) Nuclear 2 (16) nm Centrica Upstream 150 19 (87%) Adjusted operating cash flow Centrica Upstream 460 302 (34%) 1. Restated to reflect the current operating structure of the Grou
Slide 28: Upstream — Exploration & Production
centrica Upstream — Exploration & Production E&P Upstream production Period ended 30 June (£m) 2019 2020 A (mmboe) Gas and liquids realisations 972 667 (31%) Adjusted operating profit 148 34 (77%) 2019 H1 24.5 ) ) Adjusted operating cash flow 433 283 (35%) f2020H1 23.7 || 246 87 (65%) 020s Free cash
Slide 29: Upstream — Nuclear
centrica Upstream — Nuclear NUCLEAR Period ended 30 June (£m) 2019 2020 A Adjusted operating profit (£) 2 (16) nm Nuclear power generated (GWh) 4,900 4,537 (7%) Achieved power price (£/MWh) 47.5 53.0 12% Achieved power price Power Generated (£/MWh) Total (GWh) The above figures are stated before exc
Slide 30: Net investment
Net investment Period ended 30 June (£m) 20192 2020 Centrica Consumer 81 46 Centrica Business 50 21 Exploration & Production 183 204 Other! 41 27 Capital expenditure (including small acquisitions) 355 298 Netdisposals (216) (111) Group net investment 139 187 1. Other includes Corporate Functions 2,
Slide 31: Commodity prices
centrica Commodity prices Average Brent oil prices Average UK NBP gas prices Average UK baseload ($/bbl) (p/th) power prices (£/MWh) 2019 2020 2021 2019 2020 2021 2019 2020 2021 as at as at as at as at as at. as at O1Jul20 01 Jul 20 O1Jul20 01 Jul 20 O1Jul20 01 Jul 20 Brent oil, UK NBP gas and UK ba
Slide 32: Centrica's climate change ambition and progress
centrica Centrica’s climate change ambition and progress g the transi Help our customers reduce emissions in line with Paris goals 2022 Help our customers reduce their emissions by 15%, by direct (target 2%) and indirect action 2030 Help our customers reduce their emissions by 25%, by direct (target
Slide 33: CDP and TCFD
centrica CDP and TCFD * CDP is a global non-profit 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 Ww CDP provider by investors. CDP’s annual environmental disclosure and scori