Slide 1: Centrica plc Annual General Meeting
Centrica plc Annual General Meeting 8th May 2017
Slide 2: Rick Haythornthwaite, Chairman
Rick Haythornthwaite Chairman
Slide 3: Live Camera on Individual Directors as they are Introduced
Live Camera on Individual Directors as they are Introduced by The Chairman
Slide 4: Live Camera – Rick Haythornthwaite Starts
Live Camera – Rick Haythornthwaite Starts
Slide 5: Iain Conn, Group Chief Executive
Iain Conn Group Chief Executive
Slide 6: Live Camera – Iain Conn Starts
Live Camera – Iain Conn Starts
Slide 7: Centrica's purpose
Centrica’s purpose Energy and services company Deliver for the changing needs of our customers Delivering long-term shareholder value through returns and cash flow growth Trusted corporate citizen Employer of choice A “21st century energy company”
Slide 8: Focus areas for long term growth
Focus areas for long term growth Energy supply Services Distributed Energy & Power Connected Home Energy Marketing & Trading
Slide 9: Strategic summary
Strategic summary Energy and services company Purpose – “to provide energy and services to satisfy the changing needs of our customers” Long term shareholder value through returns and growth 3-5% per annum operating cash flow growth £750m per annum cost efficiency programme Growth focus
Slide 10: 2016 financial performance
2016 financial performance Adjusted operating profit and earnings up 4% Underlying adjusted operating cash flow growth of 14% Efficiency programme ahead of schedule Net debt down 27% to £3.5bn 2016 full year dividend of 12.0p
Slide 11: Centrica Consumer strategy and progress
Centrica Consumer strategy and progress Energy Supply Services Peace of Mind Home Energy Mgmt. Home Automation • Improved customer • Improved customer • Boiler IQ • ~600k Hive smart • 5 Hive products service service ⎼ ~35,000 sold thermostats ⎼ Multi-device app • Innovative tariffs • ~12,000 enginee
Slide 12: Centrica Business strategy and progress
Centrica Business strategy and progress Energy Supply Wholesale Energy Energy Insight Energy Optimisation Energy Solutions • Improved customer • Strong existing • Growing customer base • New demand response • Integration of ENER-G service capabilities ⎼ ~40k sensors products Cogen capabilities ⎼ Com
Slide 13: Asset businesses
Asset businesses Targeting a 40-50mmboe p.a. E&P business – Focus on UK, Netherlands, Norway – Cygnus gas field performing ahead of expectations – Trinidad & Tobago divestment announced – Exit from Canada targeted in 2017 Exit from wind power generation ownership complete Centrica Storage – Te
Slide 14: 2017 targets
2017 targets Adjusted operating cash flow >£2bn Group capital investment limited to £1bn – E&P capex ~£500m ~£100m incremental growth revenue investment ~£250m of cost efficiencies Like-for-like direct headcount reduction of ~1,500 Net debt in £2.5-£3.0bn range
Slide 15: 2017 trading update
2017 trading update On track to achieve 2017 targets Continued strategic progress, building on 2016 momentum Continuing to execute on all aspects of our strategy announced in July 2015 Warm weather and lower commodity prices since February Focus on driving underlying performance improvemen
Slide 16: UK retail energy market
UK retail energy market CMA investigation concluded and remedies being implemented British Gas customer commitment Competitive market – Over 50 suppliers Focus on customer service – Energy supply complaints down 31% – UK Home Brand NPS up 10 points Standard tariff cheaper than 95% of the m
Slide 17: British Gas household bills and profits
British Gas household bills and profits Breakdown of average British Gas combined gas and electricity bill (£/customer) 1,400 1,200 Profit 1,000 Operating costs Costs 800 Corporation Tax and VAT 600 Environmental and Social Policies social policies Delivery to your home 400 Wholesale energy costs 20
Slide 18: Summary
Summary Robust 2016 performance and 2017 targets on track Good strategic progress Shareholder value through returns and growth Continued focus on Group priorities: – Safety, compliance & conduct – Customer satisfaction & operational excellence – Cash flow growth & strategic momentum – Cost e
Slide 19: Live Camera - Rick Haythornthwaite Starts
Live Camera - Rick Haythornthwaite Starts
Slide 20: Resolutions
Resolutions 1. Report and Accounts 13. Re-election of Director – Lesley Knox 2. Remuneration Report 14. Re-election of Director – Carlos Pascual 3. Dividend 15. Re-election of Director – Steve Pusey 4. Election of Director – Joan Gillman 16. Appointment of Auditors 5. Election of Director – Stephen
Slide 21: Live Camera - Rick Haythornthwaite
Live Camera - Rick Haythornthwaite
Slide 22: Annual General Meeting
Annual General Meeting Please put your completed Poll Card in one of the boxes on your way out of the meeting room.