Slide 1: Slide 1
Slide 2: Annual General Meeting 2008
Centrica Annual General Meeting 2008
Slide 3: Roger Carr, Chairman
Roger Carr Chairman centrica
Slide 4: 2007 Performance Review
2007 Performance Review • Strong set of financial results • Volatility in gas & power prices • Global energy issues • Oil prices • Rising energy demand in Asia & Far East • Increasing levels of imported gas to UK • Large wholesale gas price swings in 2007
Slide 5: British Gas – Restored to Viable Profit Margins
British Gas – Restored to Viable Profit Margins • Rise in customer numbers during 2007 • Further investment essential to provide future energy supplies for our customers • January 2008 price rise driven by rising wholesale prices • Leadership position in supporting fuel poor customers
Slide 6: Upstream Investments
Upstream Investments • Increasing proportion of gas & power sourced from our own assets • Newfield acquisition – September 2007 • Langage power station operational in 2009
Slide 7: Annual General Meeting 2008
Centrica Annual General Meeting 2008
Slide 8: Sam Laidlaw, Chief Executive
Sam Laidlaw Chief Executive
Slide 9: Integrated Energy Company
Integrated Energy Company • Transform British Gas • Sharpen the organisation and reduce costs • Reduce risk through increased integration • Build on our growth platforms
Slide 10: Changing Energy Markets
Changing Energy Markets • Sharp increases in wholesale gas and power prices • Percentage of gas imported to the UK is increasing • UK prices now subject to global issues
Slide 11: 2007 Performance
2007 Performance • Strong overall performance • Operating profit up 40% • Earnings up 60% • A year of two distinct halves • Volatility in wholesale gas and power markets
Slide 12: British Gas Residential
British Gas Residential • Performance impacted by wholesale prices • Led retail price reductions, cutting by 20% in spring 2007 • Wholesale price increases from April 2007 reduced second half margins • Price increase in January 2008
Slide 13: British Gas Residential
British Gas Residential • 2007 Cost reduction programme of £139 million • Further £60m savings in 2008 • Improved customer service • Competitive pricing • Industry leading fuel poverty programmes
Slide 14: Business Highlights
Business Highlights • Strong Centrica Energy performance • Record profits in British Gas Services, British Gas Business, Direct Energy and Centrica Storage • Significant investment in new sources of gas and power
Slide 15: Gas – New Fields and New Contracts
Gas – New Fields and New Contracts • Reduce exposure to volatile energy markets • Gas & power resources, renewables and possibly new nuclear
Slide 16: Renewable Energy
Renewable Energy • 40 gigawatt UK target • Lynn & Inner Dowsing – world’s largest offshore wind farm project • 1.5 gigawatt of wind farm capacity in planning stages at a cost of £3 billion • Supportive market and planning framework an essential element for future investment
Slide 17: Growth Businesses
Growth Businesses • Build on strong 2007 performance • British Gas Services • North America • British Gas Business
Slide 18: Delivering Value For Customers And Investors
Delivering Value For Customers And Investors • Continued investment in new sources of gas and low carbon power generation • Energy efficiency initiatives to help manage fuel bills • Remain focused on our chosen strategy
Slide 19: Annual General Meeting 2008
Centrica Annual General Meeting 2008