Slide 1: Creating value through the energy transition
Creating value through the energy transition Preliminary results for the year ended 31 December 2024 20 February 2025
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Centrica shares or other securities. This presentation contains certain forward-looking statements, forecasts and projections that reflect the current intentions, belie
Slide 3: Operational delivery and growing confidence
Operational delivery and growing confidence Chris O’Shea Group Chief Executive 3
Slide 4: Strong 2024 performance…
Strong 2024 performance… • Strong operational and financial performance in a more normal market; delivering profitability two years ahead of schedule £ 1.6bn 19.0p 2023: £2.8bn 2023: 33.4p • Investment programme continues to accelerate, generating Adjusted operating profit Adjusted basic EPS attract
Slide 5: … with strong strategic progress
… with strong strategic progress Innovating to deliver Operational Commercial compelling customer Continuously improving to propositions and excellence focus increase efficiency, reduce optimisation optionality costs and enhance customer satisfaction Investing to make Centrica Investing for value mo
Slide 6: Financial resilience driving value creation
Financial resilience driving value creation Russell O’Brien Group Chief Financial Officer 6
Slide 7: Strong financial performance
Strong financial performance £ 2.3bn £ 1.6bn 19.0p 4.5p 2023: £3.5bn 2023: £2.8bn 2023: 33.4p 2023: 4.0p Adjusted EBITDA1 Adjusted operating profit Adjusted basic EPS Full year dividend per share £ 0.6bn £ 1.0bn £ 2.9bn £ 0.7bn 2023: £0.4bn 2023: £2.2bn 2023: £2.7bn 2023: £0.8bn Capital expenditure
Slide 8: Delivery across all segments
Delivery across all segments Infrastructure £ 789m Retail 2023: £1,083m £ 427m Nuclear 2023: £799m £ 1,552m 1 2023: £2,752m1 Adjusted operating profit Optimisation £ 380m 2023: £878m 1. Total adjusted operating profit also includes £(44)m of colleague profit share and Group consolidation adjustment
Slide 9: Cash generation supports growing capital investment
Cash generation supports growing capital investment Year ended 31 December (£m) 2024 Adjusted EBITDA (excl. share of associates) 1,792 £564m Dividends received 355 ENSEK and Highview Power Adjusted EBITDA plus dividends received 2,147 Meter Asset Provider (MAP) Tax (636) Athlone & Dublin peakers Wor
Slide 10: Closing net cash remains strong
Closing net cash remains strong Adjusted net cash and other liabilities (£bn) FY20 FY21 FY22 FY23 H1’24 FY24 2.7 3.2 2.9 1.7 1.6 Supporting long-term liabilities and shareholder returns 1.2 0.7 0.9 (3.0) • Closing net cash of £2.9bn after £1.5bn of shareholder returns since 2023 • Long-term decommis
Slide 11: Relentless focus on value creation
Relentless focus on value creation 01 02 03 04 05 Maximise Maintain a strong Progressive Invest Return sustainable balance sheet dividend for value surplus capital earnings Consistent application of our financial framework 11
Slide 12: Near term financial outlook…
Near term financial outlook… Retail & Optimisation adjusted operating profit for Nuclear, Spirit Energy and 2025/2026 Centrica Energy Storage+ ~£ 0.8bn equivalent to ~£ 1bn EBITDA Business Energy Supply ~£100m-£200m ~£ 0.65bn - £0.85bn + and Bord Gáis Energy Adjusted 2025 EBITDA1 Centrica Energy ~£2
Slide 13: …gives us confidence in future delivery
…gives us confidence in future delivery End of 2028 run-rate EBITDA1 ~ 85% ~£1.9bn ~£ 0.2bn ~£1.6bn ~£ 0.2bn • ~85% of EBITDA from activities underway ~£ 0.2bn ~£1.3bn today ~£ 1.0 bn2 • More rateable earnings profile from new investments • Strong cash conversion, including lower sustaining capital
Slide 14: Attractive returns with half of our investment programme locked in
Attractive returns with half of our investment programme locked in • Attractive returns remain our core focus • £2.0bn capex committed by 2028 – MAP roll-out, up to ~£0.9bn by the end of 2028 – ENSEK acquisition provides long-term optionality – Athlone and Dublin peakers COD1 later this year – Susta
Slide 15: Balance sheet resilience increasing
Balance sheet resilience increasing Investment grade Baa2 stable outlook Long-term Increasing exposure balance sheet liabilities reducing to rateable earnings BBB stable outlook FFO1/Adj. net debt >50% (S&P) ratio Improving Strengthened Reserve £1.0bn cash conversion liquidity position Committed ~£5
Slide 16: Greater financial flexibility
Greater financial flexibility Illustrative balance sheet evolution end-2024 to end-2028 (£bn) (1.0) ~4.5 ~(3.8) 2.9 ~(1.6) (0.5) Up Up to to (1.6) (1.0) (1.6) 2024 Post-tax Pension and Existing Progressive Share Potential Reserve 2028 net net cash cash flow decommissioning investment dividend buybac
Slide 17: Relentless focus on value creation
Relentless focus on value creation 01 02 03 04 05 Maximise Maintain a strong Progressive Investing Return sustainable balance sheet dividend for value surplus capital earnings Targeting £1.6bn Solid BBB / Baa2 2025 dividend increase £4bn investment £500m share buyback end-2028 run-rate EBITDA credit
Slide 18: Delivering against our strategy
Delivering against our strategy Chris O’Shea Group Chief Executive 18
Slide 19: Creating options around the future energy system
Creating options around the future energy system Existing Infrastructure portfolio has been converted to cash Our strategy is to create shareholder value by delivering the energy needed today and the energy security, efficiency and Reinvestment rate1 (%) decarbonisation solutions of the future 100%
Slide 20: The energy system is evolving
The energy system is evolving More electrified… …More intermittent… …More bespoke consumer Global final energy consumption1 (EJ) UK wind share of generation output % propositions Electricity % 20% 32% 42% Greater home energy management engagement Demand side response, has the potential to displace 5
Slide 21: Nuclear and natural gas remain vital
Nuclear and natural gas remain vital Global energy mix will evolve as reliance on coal and oil reduces De-risking our LNG portfolio Global primary energy mix1 (%) Sabine Pass hedged3 (%) Other2 10% Renewables 6% 5% 30 Nuclear Natural Gas 23% 145 7% 49 21% 152 100% 96% Coal 27% 11% 69 81% 14% 86 60%
Slide 22: Our significant role in the Irish power market
Our significant role in the Irish power market Coming soon Galway Dublin Whitegate Dublin & Athlone Galway Athlone 445MW CCGT 2 x 100MW reciprocating engines 334MW OCGT • New 5-year capacity contract: • COD1 in second half of 2025 • 10-year capacity contract: Whitegate €149k/MW p.a from Oct-2028 €21
Slide 23: Positioned to capture growing value from integrated energy propositions
Positioned to capture growing value from integrated energy propositions Continued investment in the British Gas Energy Strong operations in British Gas Services & Solutions customer leading to greater satisfaction provides the platform for commercial innovation Cost per customer1 (£) & Residential A
Slide 24: Investments aligned to our energy market outlook
Investments aligned to our energy market outlook Attractive returns Industrial Portfolio Strategic logic benefit alignment MAP ENSEK Peakers Highview Power Rough/MNZ1 1. MNZ – Morecambe Net Zero 24
Slide 25: Summary
Summary Chris O’Shea Group Chief Executive 25
Slide 26: Creating value through the energy transition
Creating value through the energy transition • Strong 2024 performance gives us confidence in future delivery – Improved operations providing the platform for growth – 2025 outlook remains unchanged Operational Commercial excellence focus • We are building a portfolio with flexibility and future opt
Slide 27: Appendix
Appendix 27
Slide 28: Group financials
Group financials Year ended 31 December (£m) 2024 2023 Adjusted revenue1 24,636 33,374 Adjusted gross margin 3,808 5,217 Adjusted operating costs (2,512) (2,674) Adjusted EBITDA2 2,305 3,500 Adjusted operating profit 3 1,552 2,752 Net finance income/(cost) 44 (39) Adjusted tax charge (incl. JV and a
Slide 29: Revenue
Revenue Year ended 31 December (£m) 2024 2023 British Gas Services & Solutions 1,563 1,597 British Gas Energy 12,065 17,742 Bord Gáis Energy 1,271 1,815 Centrica Business Solutions 2,551 3,522 Centrica Energy 6,128 7,732 Upstream 2,628 2,935 Gross segment revenue included in business performance 26,
Slide 30: Adjusted Gross Margin
Adjusted Gross Margin Year ended 31 December (£m) 2024 2023 British Gas Services & Solutions 633 616 British Gas Energy 1,521 2,141 Bord Gáis Energy 207 139 Centrica Business Solutions 258 309 Centrica Energy 536 1,016 Nuclear 109 349 Spirit Energy 521 302 Centrica Energy Storage+ 51 348 Profit shar
Slide 31: Adjusted EBITDA
Adjusted EBITDA Year ended 31 December (£m) 2024 2023 British Gas Services & Solutions 110 101 British Gas Energy 339 808 Residential Energy Supply 310 782 Small Business Energy Supply 29 26 Bord Gáis Energy 79 21 Centrica Business Solutions 97 141 Business Energy Supply 119 176 Services & Assets (2
Slide 32: Operating Profit
Operating Profit Year ended 31 December (£m) 2024 2023 British Gas Services & Solutions 67 47 British Gas Energy 297 751 Residential Energy Supply 269 726 Small Business Energy Supply 28 25 Bord Gáis Energy 63 1 Centrica Business Solutions 73 104 Business Energy Supply 108 159 Services & Assets (35)
Slide 33: Capital Expenditure and Net Investment
Capital Expenditure and Net Investment Year ended 31 December (£m) 2024 2023 British Gas Services & Solutions (22) (50) British Gas Energy (187) – Bord Gáis Energy (103) (72) Centrica Business Solutions (160) (114) Centrica Energy (40) (47) Nuclear – – Spirit Energy (31) (75) Centrica Energy Storage
Slide 34: Free cash flow
Free cash flow Year ended 31 December (£m) 2024 2023 British Gas Services & Solutions 102 64 British Gas Energy (303) 302 Bord Gáis Energy (35) (146) Centrica Business Solutions (3) 220 Centrica Energy 649 1,354 Nuclear 478 618 Spirit Energy 586 365 Centrica Energy Storage+ 151 253 Other – (20) Segm
Slide 35: Closing Adjusted Net Cash
Closing Adjusted Net Cash Year ended 31 December (£m) 2024 2023 Year ended 31 December (£m) 2024 2023 Adjusted EBITDA1 1,792 3,085 Free cash flow 989 2,207 Dividends received 355 220 Net interest 34 (19) Adjusted EBITDA plus dividends received 2,147 3,305 Pension deficit payments (176) (180) Tax (63
Slide 36: Pension update
Pension update • Triennial pension funding deficit of £504m agreed at 31 March 2024. On a roll-forward basis, using the same methodology and consequent assumptions, the Technical Provisions deficit at 31 December 2024 was ~£450m • Cash contributions of ~£140m p.a. agreed through to 2027 • IAS 19 net
Slide 37: Infrastructure notes
Infrastructure notes 2025 hedging 2026 hedging Total estimated Average Average Volume hedged production / Volume hedged hedged price hedged price generation Spirit Energy 513mmth 111p/th ~695 to 720mmth 273mmth 89p/th Nuclear 5.5TWh £89/MWh ~7.0 to 8.0TWh 1.8TWh £76/MWh Infrastructure (Nuclear, Spir
Slide 38: MAP cash flow
MAP cash flow Modelling a single meter (illustration) MAP Group consolidation (£) Free cash Revenue / EBITDA Capex Depreciation Capex1 Depreciation flow (pre- EBITDA2 adjustment adjustment adjustment tax) Year of ~£(240) - - ~£(240) ~£(40) ~£40 - install3 Year 1+ - ~£25 ~£(16) ~£25 - - ~£3 1. Includ