Slide 1: Centrica plc Annual General Meeting
centrica Centrica plc Annual General Meeting
Slide 2: Rick Haythornthwaite, Chairman
centrica Rick Haythornthwaite Chairman
Slide 3: Live Camera on Individual Directors as they are Introduced
centrica >) Live Camera on Individual Directors as they are Introduced by The Chairman 3 AGM 2018
Slide 4: Live Camera - Rick Haythornthwaite Starts
centrica >) Live Camera - Rick Haythornthwaite Starts 4 AGM 2018
Slide 5: centrica
centrica
Slide 6: Live Camera - Iain Conn Starts
centrica >) Live Camera — lain Conn Starts 6 AGM 2018
Slide 7: Introduction
. centrica Introduction * 2017 a challenging year; weak second half performance * Delivered on 2017 published targets * Phase 1 of strategic repositioning complete * Phase 2 focus on performance delivery and financial discipline * Good financial performance so far in 2018 * On track to achieve full
Slide 8: 2017 financial performance
; ; centrica 2017 financial performance * Adjusted operating profit down 17% to £1.25bn; adjusted earnings down 22% to £698m * Adjusted earnings per share (EPS) down 25% to 12.6p * Adjusted operating cash flow of £2.07bn; EBITDA down 9% to £2.14bn * Centrica Consumer adjusted operating profit down 1
Slide 9: Important questions
; centrica Important questions * Strategy: Are the components of the strategy right and how do they reinforce each other? * Cost efficiency: Potential to offset gross margin pressure and underpin financial confidence? * Resilience: In the face of competition and potential price cap in UK? * Customer
Slide 10: To provide energy and services to satisfy the changing needs of our customers
“To provide • energy and services to satisfy • the changing needs of our • customers” • • •
Slide 11: Fundamental trends in energy and services
; .___ Centrica Fundamental trends in energy and services * Decentralisation of the energy system * Increased choice and power shifting to the customer * Advancements in digital and technology 11 AGM 2018
Slide 12: Centrica's simplified portfolio
Lope “f: . tri Centrica’s simplified portfolio eemenncs Consumer Business peep * UK Home ° UK Business * Spirit Energy * Ireland * North America * Centrica Storage * North America Business (CSL) Home ° Distributed Energy & Power * Connected Home ° Energy Marketing & Trading * Central Power Generatio
Slide 13: Consumer strategic framework
Consumer strategic framework Energy supply * Gas supply * Electricity supply Energy supply In-home servicing * Cover products (protection plans, warranties) * On demand repair and maintenance * Installation (heating & aircon) Peace Home energy of mind management * Home insurance * Energy insight * H
Slide 14: Cumulative hubs and cumulative products
Cumulative hubs (‘000) Cumulative products (‘000)
Slide 15: Local Heroes
centrica Local Heroes Local Heroes cumulative jobs completed ('000) 50 40 Jan17) Apr17 Jul17 Oct17 Jan18 Apr 18 15 AGM 2018
Slide 16: British Gas Rewards
a tri British Gas Rewards cence Total British Gas Rewards sign ups (m) 1.0 0.8 0.6 When you're i it we're with you Search British Gas Rewards 0.4 0.2 Apr 17 Jul 17 Oct 17 Jan 18 Apr 18 16 AGM 2018
Slide 17: 2017 Consumer accounts
centrica 2017 Consumer accounts Customer account holdings (‘000) 26,668 (1,172) : (195) : Collective : | (358) 373 : 25,316 tariff/ white label/; Prepayment 7 AD: agaresenon ; Competitive Connected} Folro : pressures Home i growth Lesserescerescerosceresserescerosserssserosserssseroseresseroeee i 20
Slide 18: 2018 Consumer accounts
centrica 2018 Consumer accounts Customer account holdings oad . i _(39) (119) 91. 3 25,254 Collective a a: “tari ; Prepayment ¢ titi Connected } tariff/ : ompetitive " i white label pressures ooh : APRIL 2017 2018 Choices made: ® UK&! @ NA Underlying holdings movement: ® UK&! ® NA 18 AGM 2018
Slide 19: Business strategic framework
Business strategic framework Energy Supply * Gas supply * Electricity supply Wholesale Energy * Trading partner * Energy commodities & risk products * Central Power Generation Energy supply & wholesale Energy Insight * Energy resource management & monitoring * Operational insights from energy data *
Slide 20: Business energy solutions
. . centrica Business energy solutions 20 AGM 2018
Slide 21: Distributed Energy & Power
Distributed Energy & Power 2017 active customer sites a book 5,000 4,500 4,000 3,500 3,000 Jan Apr Jul Oct Apr 17 Apr 18 centrica Business Sol 21 AGM 2018 centrica
Slide 22: Centrica Consumer and Centrica Business
. . . centrica Centrica Consumer and Centrica Business 22 AGM 2018
Slide 23: Phase of strategic repositioning complete
; ee centrica Phase 1 of strategic repositioning complete * Reduced scale in E&P and Central Power Generation * Divestments totalling £930m * Capital reinvestment shifted towards customer-facing activities * Enhanced capabilities, technology, propositions * £750m p.a. cost efficiency programme deliv
Slide 24: Phase focus
centrica Phase 2 focus * Performance delivery and financial discipline * Intention to divest of nuclear investment by 2020 * 2018-20 financial guidance - Adjusted operating cash flow of £2.1-£2.3bn p.a. - Net debt in the £2.25-£3.25bn range - Capital reinvestment of no more than £1.2bn p.a. * Expect
Slide 25: Phase priorities for performance delivery
ae ; centrica Phase 2 priorities for performance delivery * Demonstrating customer-led gross margin growth * Driving cost efficiency towards being ‘most efficient price-setter’ * Improving organisational effectiveness * Securing the capabilities we need for 2020 and beyond ... while ensuring continu
Slide 26: 2018 Group targets
centrica 2018 Group targets * Adjusted operating cash flow of £2.1bn-£2.3bn * Capital reinvestment <£1.1bn; Spirit Energy capex ~£500m * Expect flat 2018 full year dividend per share of 12.0p * £200m of efficiency savings in 2018 * Like-for-like headcount reduction of around 1,000 in 2018 * Net debt
Slide 27: Trading Update
centrica Trading Update * On track to achieve 2018 targets * Good financial performance to date * Rate of Consumer account losses reduced significantly * Lower full year E&P and nuclear volumes * Good progress on cost efficiency * New innovative products and propositions introduced 27 AGM 2018
Slide 28: UK energy supply - default tariff cap
centrica UK energy supply - default tariff cap * UK Government draft bill published October 2017 * Bill likely to be passed in summer 2018 and be implemented by end of the year * Unintended consequences - cap likely to impact competition, choice and average prices * Centrica ‘14 point plan’ to impro
Slide 29: Summary
centrica Summary * 2017 a challenging year * Phase 1 of Centrica’s strategic repositioning complete * Phase 2 focus on performance delivery and financial discipline * Expect to maintain current dividend subject to delivering targeted AOCF and net debt * Committed to restoring shareholder value and d
Slide 30: Video: Life at Centrica
centrica >) Video: Life at Centrica 30 AGM 2018
Slide 31: Live Camera - Rick Haythornthwaite Starts
centrica >) Live Camera - Rick Haythornthwaite Starts 31 AGM 2018
Slide 32: Live Camera - Rick Haythornthwaite
centrica >) Live Camera - Rick Haythornthwaite 32 AGM 2018
Slide 33: Annual General Meeting
centrica Annual General Meeting Please put your completed Poll Card in one of the boxes on your way out of the meeting room 33 AGM 2018