Slide 1: Centrica E&P and Bayerngas Norge Joint Venture
centrica Centrica E&P and = ee : Bayerngas Norge Joint Venture — 17 July 2017
Slide 2: Disclaimer
centrica 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
Slide 3: Transaction overview
Transaction overview * Combination of Centrica’s E&P business with Bayerngas Norge Group to create a newly incorporated independent JV - Centrica to contribute its European E&P business and make a series of deferred payments’ totalling ~£340m, post-tax, between 2017-22 for 69% of the JV - Stadtwerke
Slide 4: Strategic rationale
centrica Strategic rationale * Like-minded shareholders; strategic alignment on the role of E&P * Complementary mix of producing and development assets with strong positions in NW Europe e centrica * Robust, self-financing entity with attractive financial E&P profile, enabling reinvestment and distr
Slide 5: Joint Venture financial framework
centrica Joint Venture financial framework * Objective to create a sustainable European E&P business * Capable of self-financing through operating cash flow in a range of price environments, including the Centrica low case of $35/bbl Brent and 35p/th NBP gas JV expects to invest ~80% of post-tax ope
Slide 6: Impact on Centrica Group
centrica Impact on Centrica Group Increases reserves / production ratio and reduces net decommissioning liabilities by combining Centrica’s mature E&P portfolio with Bayerngas’ early life-cycle assets Reduces Centrica’s share of annual production into the range ~30-40mmboe and share of capital expen
Slide 7: A leading independent European E&P company
centrica A leading independent European E&P company Reserve ranking of UK, Netherlands, Norway and Denmark combined (mmboe, excludes Majors) eo & x & eS Ff 2 FL se Oo DS KF OD F F LD PF of a cS y we er 6" of ¥ 3 ¥ os eo OS we RC € OF io « oe “ae & ox 3 9 wv RS we s sf w ue a cig x vt we es ¥ x fo er
Slide 8: A leading independent European E&P company
centrica A leading independent European E&P company 2017 ] ranking of UK, Netherlands, Norway and Denmark combined (mmboe, excludes Majors) aN Sg Ss ELS s > SD ra £ dS SS 4? se & OD <y & oe oe D> OD &. we yo ry # oF FFF e ie e 8 < vs rom oe * ef os s & <° of oP Me SS ee & Ss ¢ SS ‘2 Ve ey ee ee SES
Slide 9: Complementary positions in North West Europe
centrica Complementary positions in North West Europe 50-55 2017e production from 27 fields mmboe 625 2P reserves and 2C resources mmboe! Reserves and resources are natural gas 66% 2017 production from operated fields 1. 409mmboe of 2P reserves and 216mmboe of 2C resources NoRWefp SE nt Norway iA UK
Slide 10: % of reserves and resources E&P
% of reserves and resources E&P
Slide 11: Strong European E&P capabilities
centrica Strong European E&P capabilities * Operated and non-operated assets * Onshore and offshore operations * Deep subsurface knowledge of Irish Sea, UK SNS, Norwegian CS and Barents Sea Over 650 employees Main offices in Aberdeen, Stavanger, Oslo and Hoofdorp Source: Centrica and Bayerngas resul
Slide 12: Strategic rationale
centrica Strategic rationale * Like-minded shareholders; strategic alignment on the role of E&P * Complementary mix of producing and development assets with strong positions in NW Europe e centrica * Robust, self-financing entity with attractive financial E&P profile, enabling reinvestment and distr