Slide 1: Annual General Meeting 12 May 2014
Annual General Meeting 12 May 2014
Slide 2: Rick Haythornthwaite, Chairman
RICK HAYTHORNTHWAITE Chairman
Slide 3: Sam Laidlaw, Chief Executive
SAM LAIDLAW centrica Chief Executive
Slide 4: Our strategic priorities
Our strategic priorities • Innovate – To drive growth and service excellence • Integrate – Our natural gas business, linked to our core markets • Increase – Our returns through efficiency and continued capital discipline The leading integrated energy company with customers at its core
Slide 5: Good strategic progress
Good strategic progress • Validation of refreshed strategy; investing to secure gas for our customers • Simplified tariffs and improved reporting transparency in UK energy supply; new technologies to help customers take control of their energy bills • Hess and Suncor transactions deliver enhanced sc
Slide 6: Good strategic progress
Good strategic progress • New North Sea gas fields on stream; £1.5bn organic capital expenditure across the Group • £14bn of new gas supply contracts • Acquired 25% stake in Bowland UK shale exploration licence • Realised value through divestments of selected assets
Slide 7: Competition & Markets Authority Inquiry
Competition & Markets Authority Inquiry • Welcome an independent review to help rebuild trust • Strong retail and wholesale competition • Likely two year period of investment uncertainty • Wide scope of reference required to look at drivers of energy bills
Slide 8: Working towards a transparent and affordable UK energy policy
Working towards a transparent and affordable UK energy policy • Detailed discussions with all stakeholders on energy costs and decarbonisation • First supplier to reduce prices following Government changes to ECO programme • No further change expected in residential energy prices this year • Service
Slide 9: Positioning the Group for the future
Positioning the Group for the future • Group-wide £500m cost reduction programme completed • Downstream focus on improving core operations • Cost control and selective capital investment upstream • Strategic review of our gas-fired power assets
Slide 10: Future growth drivers
Future growth drivers • British Gas – Innovative product offerings in British Gas and launched a number of new products • Direct Energy – Services potential and enhanced scale in B2B • Centrica Energy – Refocus investment spending and develop LNG business
Slide 11: Building sustainable performance
Building sustainable performance • Help for vulnerable customers – £380 million spent assisting 1.8 million low income customers in 2013 • Community engagement – Shelter partnership. Ignite social entrepreneurship • Skills and training – More than 350 apprentices recruited in 2013 – Movement to Work
Slide 12: Building sustainable performance
Building sustainable performance • Health & Safety – Lost time injury frequency rate down by 45% – Zero significant process safety events in 2013 • Carbon reduction – CO2 savings since 2010 equivalent to taking 668,000 cars off the road
Slide 13: Summary
Summary • Good strategic progress, robust actions in place across the Group in a challenging environment • Engaging with political stakeholders to help reduce uncertainty and restore investor confidence • Strong cash flow and balance sheet, building a platform for long term growth