Centrica Plc · LSE:CNA
Centrica — Investor Presentation (May 2016)
10 slides from Centrica's investor presentation, May 5, 2016
Slide 1: Centrica plc Equity placing
Centrica plc Equity placing Investor presentation 5 May 2016
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, JAPAN, AUSTRALIA OR ANY OTHER JURISDICTION WHERE TO DO SO MAY BE PROHIBITED This presentation has been prepared by Centrica plc (the “Company”) solely for use at investor me
Slide 3: Centrica strategy
Centrica strategy • An energy and services company focused on the customer, targeting delivery of both returns and growth • Focus for growth on energy supply, services, connected home, distributed energy & power, energy marketing & trading • £1.5bn reallocation of resources from E&P to customer-faci
Slide 4: Sources and uses of cash at '35/35/35'
Sources and uses of cash at ‘35/35/35’ Other Investment Adjusted operating cash flow Dividends Disposals Interest 2016 2017 2018 Adjusted operating cash flow adjusted for $35/bbl Brent oil price, 35p/th UK gas price and £35/MWh UK power price. Includes benefit of hedging. 4
Slide 5: Strategy implementation
Strategy implementation • Strategy implementation on track - Cutting E&P capex to £500m in 2016 - Delivering cost savings of £200m and 3,000 reduction in direct headcount in 2016 - Holding capital investment (including small acquisitions) below £1bn - Established new customer-facing businesses • Org
Slide 6: Rationale for placing
Rationale for placing • Opportunity to accelerate customer-facing strategy through acquisition of key capabilities and market positions - Two highly attractive acquisitions with leading capabilities, both with double-digit EBITDA growth potential and which will immediately contribute to cash flow an
Slide 7: Agreed to acquire Neas Energy
• Agreed to acquire Neas Energy, one of Europe’s leading providers of energy management and revenue optimisation services - Provides services for 2,500 individual decentralised assets with installed capacity of >8,600MW - New capability through unique route to market systems and expertise; complemen
Slide 8: Credit rating context
Credit rating context • Rating agencies have reacted to falling prices, taking negative actions on commodity exposed companies - Centrica placed on Review for Downgrade by Moody’s and Negative Outlook by S&P Current credit Baa1 BBB+ • Credit metrics challenged in low commodity price environment rati
Slide 9: Key terms of placing
Key terms of placing • Announced on Thursday 5 May 2016 • ~7% of the issued share capital (350 million shares) • Pricing to be determined by an accelerated bookbuild (ABB) • New shares rank pari passu with existing shares • Settlement of the new shares will be on T+2 (Monday 9 May 2016) • Goldman Sa
Slide 10: Summary
Summary • Strategy implementation on track • Long term shareholder value through returns and growth - At least 3-5% p.a. adjusted operating cash flow growth - 10-12% ROACE - Progressive dividend policy tied to confidence in adjusted operating cash flow growth • Strong focus on capital and cash flow