Slide 1: General Meeting 2009
General Meeting 2009 Old Billingsgate, London Monday, 8 June 2009
Slide 2: Roger Carr
centrica wesourceit wegenerateit weprocessit westoreit wetradeit wesaveit wesupplyit weserviceit
Slide 3: British Energy
British Energy • Announcement on 11 May to enter into certain transactions with EDF to acquire 20% stake in British Energy • Delivers significant benefit to Centrica shareholders: • Reduces exposure to volatile commodity prices • Secures Centrica’s participation in the UK nuclear industry
Slide 4: British Energy
British Energy • Leading supplier of nuclear energy in the UK • Operates eight nuclear power stations and one coal-fired plant • New BE power stations will help secure future UK electricity requirements • Additional power assets will generate more of the electricity we need for our customers • SPE s
Slide 5: General Meeting 2009
General Meeting 2009 Old Billingsgate, London Monday, 8 June 2009
Slide 6: Sam Laidlaw
centrica wesourceit wegenerateit weprocessit westoreit wetradeit wesaveit wesupplyit weserviceit
Slide 7: Why invest in British Energy?
Why invest in British Energy? • Strategic priority to increase gas and power requirements from our own assets • Reduces exposure to short term volatility in wholesale commodity prices • Secures energy supplies for the future • Delivers more stable post-tax earnings – increased shareholder benefit
Slide 8: Why nuclear?
Why nuclear? • Additional source of electricity for our 6 million electricity customers • Increasing gas and power production from our own assets to around 45% • Low carbon source of power • Participation in new nuclear programme provides long term hedge and growth opportunity
Slide 9: Details of transaction
Details of transaction • 20% equity stake in British Energy • Net cash consideration of £1.1billion - restructured from original £3.1billion cash transaction • Partly financed through sale of SPE for €1.325bn • SPE sale is multiple of 13.8 x EBITDA – compares favourably to similar European transacti
Slide 10: Governance package
Governance package • Centrica is a 20% investor in Lake Acquisitions the joint venture holding company • EDF has day-to-day operational control, utilising nuclear expertise • Centrica rights include: • Full information • Board representation on both Lake Acquisitions and British Energy Group • Veto
Slide 11: Nuclear new build
Nuclear new build • Key element of the EDF partnership is participation in UK new nuclear build programme • Centrica option for 20% stake in each new reactor project • Final investment decision on first reactor expected in 2011 • EDF intends initially to build four reactors in the UK • Two reactors
Slide 12: Summary
Summary • Transaction supports group strategy announced two years ago • New nuclear adds to our wide range of investment opportunities • Continue to strengthen North American business • Maintain strong balance sheet
Slide 13: General Meeting 2009
General Meeting 2009 Old Billingsgate, London Monday, 8 June 2009