Slide 1: Annual General Meeting
Annual General Meeting 11 May 2012
Slide 2: Sir Roger Carr, Chairman
Sir Roger Carr Chairman
Slide 3: 2011 Overview
Annual General Meeting 2011 Overview May 11 2012 • Good performance during a period of unprecedented world events – Fukushima and Arab Spring – Economic weakness & Eurozone debt crisis • Regulatory uncertainty and high UK upstream tax rates 3
Slide 4: 2011 Performance review
Annual General Meeting 2011 Performance review May 11 2012 • Operating profit of £2.4bn • Earnings up 3%; Earnings per share of 25.8p • Total tax charge of £891m; 40% effective tax rate • Full year dividend up 8% to 15.4p/share 4
Slide 5: Cash Distribution
Annual General Meeting Cash Distribution May 11 2012 • £3.3bn free cash flow in 2011 • £1.3bn net profit • £1.5bn organic investment programme • 25% of cash flow to taxation • 20% dividend growth over 2 years 5
Slide 6: 2012 Challenges
Annual General Meeting 2012 Challenges May 11 2012 • Securing the right framework for investment • Building on North Sea acquisitions • Working through retail market reforms • Building trust in the sector 6
Slide 7: Summary
Annual General Meeting Summary May 11 2012 • Good performance in challenging market conditions • Delivering investment for growth • Delivering for our customers • Delivering for our shareholders 7
Slide 8: Sam Laidlaw, Chief Executive
Sam Laidlaw Chief Executive
Slide 9: Health, Safety & Environment
Annual General Meeting Health, Safety & Environment May 11 2012 • Safety remains our first priority • LTI rate down 42% to 0.25 per 100k hours worked • Emissions down 28% to 7.9 million tonnes of CO2 • Stronger customer and process safety procedures 9
Slide 10: Strategic priorities unchanged
Annual General Meeting Strategic priorities unchanged May 11 2012 1 Grow British Gas 2 Deliver value from our growing upstream business 3 Build an integrated North American business 4 Drive superior financial returns 10
Slide 11: Grow British Gas: Improved delivery for customers
Annual General Meeting 1 Grow British Gas May 11 2012 • Improved delivery for customers • 4 star rating from Consumer focus • First to reduce prices in 2012 • Services growth • Further progress in new markets 11
Slide 12: Grow British Gas: Building trust with customers
Annual General Meeting 1 Grow British Gas May 11 2012 • Building trust with customers – tariffs simplified – clearer bills – price comparison table • Reducing cost base – £500m programme – Sharpens competitive position and enables investment in growth 12
Slide 13: Deliver value from our growing upstream business
Annual General 2 Deliver value from our growing upstream Meeting May 11 2012 business • Strong asset performance • Deploying distinctive capabilities – North Sea gas reserve additions – First gas at Ensign • Norwegian acquisitions increase reserves by 40% • New strategic relationships with Qatargas
Slide 14: Deliver value from our growing upstream business: UK investment
Annual General 2 Deliver value from our growing upstream Meeting May 11 2012 business • Significant investment required in the UK – Gas development & storage – Wind – New nuclear • Future investment decisions lie ahead • Stable fiscal and regulatory regime critical 14
Slide 15: Build an integrated North American business
Annual General Meeting 3 Build an integrated North American business May 11 2012 • Good progress towards doubling profit • Increased scale in residential and business energy • Building platform for growth in services • Improved performance upstream 15
Slide 16: Drive superior financial returns
Annual General Meeting 4 Drive superior financial returns May 11 2012 • Strong returns from existing assets • Disciplined approach to investment • Healthy balance sheet • Balanced business model 16
Slide 17: Summary
Annual General Meeting Summary May 11 2012 • Robust performance in challenging conditions • Good progress against strategic priorities • Centrica well positioned for further growth 17