Slide 1: Centrica plc Interim Results
centrica Centrica plc Interim Results
Slide 2: Disclaimer
centrica 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 with respect to the financial condition, results, operations
Slide 3: Chris O'Shea, Group Chief Executive
Chris O'Shea Group Chief Executive
Slide 4: Turnaround of Centrica continues
centrica Turnaround of Centrica continues * Major transformation of Centrica continues — Focus remains on fixing the basics * First half financial performance overall in line with expectations — Adjusted operating profit and EPS broadly flat vs 2020 — Continuing robust free cash flow generation — Ne
Slide 5: Kate Ringrose, Chief Financial Officer
Kate Ringrose Chief Financial Officer
Slide 6: Group earnings
Group earnings Period ended 30 June (£m) 2020 2021 A From continuing operations: Adjusted revenue 7,726 8,154 428 Adjusted gross margin 1,185 1,154 (31) Adjusted operating costs (919) (856) 63 Adjusted operating profit! 264 262 (2) Net finance cost (124) (96) 28 Group effective tax rate 41% 35% (6pp
Slide 7: Operating profit
centrica Operating profit ADJUSTED OPERATING PROFIT EXCEPTIONAL ITEMS AND STATUTORY PROFIT Period ended 30 June (£m) 2020 2021 A Period ended 30 June (£m) 2021 British Gas Services & Solutions 94 60 (34) Adjusted operating profit from cont. ops 262 British Gas Energy 78 172 94 Pre-tax exceptional it
Slide 8: Adjusted operating profit drivers
centrica Adjusted operating profit drivers Covid-19 and Downstream industrial commodity action and weather Energy services and supply Energy Marketing & Upstream Trading Whitegate CCGT outage (£118m) £58m British Gas S&S: £18m H1 2020 - British Gas Core underlying: Spirit: £71m (£29m) Energy: £27m (
Slide 9: Energy Marketing & Trading gross margin by activity
centrica Energy Marketing & Trading gross margin by activity £m Full year First half 300 250 200 150 100 50 (50) | (100) FY 2017 FY 2018 FY 2019 FY 2020 H1 2020 H1 2021 @ Gas and power trading / Route-to-market @ LNG @ Legacy gas contract 9 Interim Results 2021
Slide 10: Robust cash flow generation and lower net debt
Robust cash flow generation and lower net debt centrica Period ended 30 June (£m) 2020 2021 A Period ended 30 June (£m) 2020 2021 EBITDA from continuing operations 750 682 (68) Free cash flow from continuing operations 504 524 Tax (43) 4 Interest (80) (109) Dividends received 23 1 Dividends — Centri
Slide 11: Balance sheet and pension deficit focus continues
centrica Balance sheet and pension deficit focus continues Balance sheet Debt maturity profile (£m) * Net debt significantly down to £0.1bn 800 @ Hybrid bond foo (first call date) * Continue to target maintaining investment grade credit ratings @ Bonds 400 * Redeemed €750m hybrid at first call date
Slide 12: Summary and outlook
centrica Summary and outlook H1 financial performance in line with last year Full year modelling assumptions from Prelims still valid — Whitegate CCGT outage (up to £40m) — Higher ECO costs (~-£80m) — Restructuring benefits including corporate cost removal (>£100m) Higher commodity prices beginning
Slide 13: Chris O'Shea, Group Chief Executive
centrica Chris O’Shea Group Chief Executive
Slide 14: Progress made on Turnaround
centrica Progress made on Turnaround Colleagues * New modernised terms and conditions in place for UK colleagues * Industrial dispute concluded with new collective agreements * Started recruitment programme to build engineer capacity Customers * New business unit structure and reduced layers embedde
Slide 15: Modernising British Gas Energy
centrica Modernising British Gas Energy * Serving residential and small business customers * British Gas Energy cost to serve down 7% over H1 2021 250k customers on flexible, lower cost ‘software as a service’ platform * Modern and agile customer-focused ways of working Reduced time to bring proposi
Slide 16: Modernising British Gas Services
Modernising British Gas Services * Largest energy services provider in the UK with 7,500 engineers and technicians * Change essential to improve competitiveness and provide a better customer experience * Committed to direct labour model * Q1 2021 impacted by Covid-19 and industrial action — Signs of
Slide 17: Net zero a significant opportunity for Centrica
centrica Net zero a significant opportunity for Centrica * Largest services field force in the UK * Creating new, highly skilled and well paid jobs — Recruiting 1,000 apprentices across 2021 and 2022 Training academies a competitive advantage Expanding range of customer propositions for homes and bu
Slide 18: Creating a more sustainable and profitable company
centrica Creating a more sustainable and profitable company * Major transformation of Centrica continues * Simplifying the business to add long-term shareholder value * Continuing focus on fixing the basics to benefit Centrica now and in the future * Improving colleague engagement critical — Using C
Slide 19: centrica
centrica
Slide 20: H1 2020 adjusted operating profit
H1 2020 adjusted operating profit Small Business centrica Energy’ & Period ended 30 June (£m) 2020 as Seniccn inns reer 2020 Previous segments reported British Gas Metering! costs restated | New segments UK Home - energy 93 (6) 5 (14) 78 British Gas Energy UK Home - services 136 (4) (5) (4) Centrica
Slide 21: Revenue
Revenue Period ended 30 June (£m) 2020' 2021 A Continuing Operations British Gas Services and Solutions 736 722 (2%) British Gas Energy 3,710 3,840 4% Energy Marketing & Trading 1,482 1,991 34% Centrica Business Solutions 802 871 9% Bord Gais Energy 416 484 16% Upstream 982 838, (15%) Group Revenue
Slide 22: Adjusted gross margin
Adjusted gross margin Period ended 30 June (£m) 2020' 2021 A Continuing Operations British Gas Services and Solutions 325 266 (18%) British Gas Energy 497 530 7% Energy Marketing & Trading 148 26 (82%) Centrica Business Solutions "36 75 108% Bord Gais Energy 83 69 (17%) Upstream 96 188 96% Acre ros
Slide 23: EBITDA
EBITDA Period ended 30 June (£m) 2020' 2021 A Continuing Operations British Gas Services and Solutions 130 82 (37%) British Gas Energy 125 220 16% Energy Marketing & Trading 130 (14) nm Centrica Business Solutions (42) 1 nm Bord Gais Energy 38 27 (29%) Upstream 320 336 5% Other 49 30 (39%) EBITDA 75
Slide 24: Adjusted operating profit
Adjusted operating profit Period ended 30 June (£m) 2020' 2021 A Continuing Operations British Gas Services and Solutions 94 60 (36%) British Gas Energy 78 172 121% y 83 158 90% Business energy supply © 3 nm Energy Marketing & Trading 111 (40) nm Core EM&q activities 138 7 (88%) gas contract (27) (7
Slide 25: Net investment
Net investment Period ended 30 June (£m) 2020' 2021 Continuing Operations British Gas Services and Solutions (10) (16) British Gas Energy (21) (13) Energy Marketing & Trading (4) (3) Centrica Business Solutions (15) (15) Bord Gais Energy (10) (13) Upstream (202) (122) Other? (23) (5) Net Investment
Slide 26: Free cash flow
Free cash flow Period ended 30 June (£m) 2020' 2021 A Continuing Operations British Gas Services and Solutions 80 46 (43%) British Gas Energy (37) (58) 57% Energy Marketing & Trading 211 121 (43%) Centrica Business Solutions 93 72 (23%) Bord Gais Energy 26 (7) nm Upstream 150 255 70% Other 24 54 125
Slide 27: Upstream — Exploration & Production
centrica Upstream — Exploration & Production E&P Upstream producti Period ended 30 June (£m) 2020 2021 A (mmboe) Gas and liquids realisations 667 575 (14%) 237 17 Adjusted operating profit 34 113 232% Free cash flow! 141 266 89% H1 2021 17.1 | fe @@Spirit Energy CSLO@ Achieved gas sales price Achiev
Slide 28: Upstream — Nuclear
centrica Upstream — Nuclear NUCLEAR Period ended 30 June (£m) 2020 2021 A Adjusted operating profit (£) (16) (38) 138% Nuclear power generated (GWh) 4,537 4171 (8%) Achieved power price (£/MWh) 53.0 46.5 (12%) Achieved power price Power Generated (£/MWh) Total (GWh) The above adjusted figures are be
Slide 29: Market commodity prices
centrica Market commodity prices Average Brent oil prices Average UK NBP gas prices ($/bbl) (p/th) £79 73p $67 $65 $42 £37 L 2020 2021 2022 2020 2021 2022 2020 = 2021 2022 as at as at as at as at. as at as at 20Jul21 20 Jul21 20Jul21 20 Jul 21 20 Jul 21 20 Jul 21 Average UK baseload power prices (£/
Slide 30: NBP spot price & forward curve evolutions
centrica NBP spot price & forward curve evolutions p/Th Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 — Day Ahead (Spot) =F WD curve on 01-Jul-21 ——FWD curve on 01-Jun-21 —— FWD curve on 04-Jan-21 30 Interim Results 2021
Slide 31: UK weather chart vs seasonal norms
centrica UK weather chart vs seasonal norms January February March April May June 31 Interim Results 2021
Slide 32: CDP and TCFD
centrica CDP and TCFD CDP is a global non-profit that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests. It was voted the number one climate research provider by investors. * CDP’s annual environmental disclosure and scoring proc