Slide 1: Centrica Annual General Meeting 2011
Centrica Annual General Meeting 2011
Slide 2: Sir Roger Carr
Sir Roger Carr Le | Direct Energy. | Direct Energy 7 1 Ai 2 Home | { c centrica
Slide 3: 2010 Performance review
2010 Performance review • Strong financial performance • Balanced and robust business model • Rising commodity and non-commodity costs
Slide 4: British Gas
British Gas • Competitive energy prices and improved customer service • Marked growth in customer numbers • Continued support for our most vulnerable customers
Slide 5: Upstream and North America
Upstream and North America • Strong operational performance upstream • Organic growth and acquisitions in North America
Slide 6: Global challenges
Global challenges • Political tension in North Africa and the Middle East • Accelerated rise in oil and gas prices • Learning the lessons from Fukushima
Slide 7: UK challenges
UK challenges • UK oil and gas taxes among the highest in the world • Leads to reduced investment in UK North Sea • Climate for £200bn investment impacted
Slide 8: May 2011 Interim Management Statement
May 2011 Interim Management Statement • Challenging business environment • Upstream: Higher commodity prices offset by rising taxes • Downstream: Margins squeezed by higher wholesale prices • More modest growth but still in line with expectations • Full announcement at www.centrica.com
Slide 9: Sam Laidlaw, Chief Executive
Sam Laidlaw Chief Executive Ps, ae i centrica
Slide 10: 2010 Overview
2010 Overview • Profit growth across all businesses • Measurable progress against strategic priorities • Distinctive and integrated structure
Slide 11: 2010 Performance
2010 Performance • £2.4bn operating profit Oil and gas production up 43% British Gas profits up 20% to £1.2bn • Higher tax rate of 37% • Post tax earnings per share - 25.2p • Dividend up 12% to 14.3p per share
Slide 12: Global challenges
Global challenges • Nuclear safety • Volatile energy prices • Growing importance of LNG
Slide 13: Securing our energy supplies
Securing our energy supplies • North Sea remains core to UK energy security • Oil and gas tax of up to 81% • Less UK investment than prior plans
Slide 14: Policy climate
Policy climate • Carbon floor price set • Electricity Market Reform under way • Ofgem Retail Market Review
Slide 15: Energy efficiency
Energy efficiency • Enormous potential for transformation • Commitment to ‘Go Early’ on the Green Deal • Key source of future earnings growth
Slide 16: Grow British Gas….
1 Grow British Gas…. leading the transition to low carbon homes and businesses • 267,000 additional residential customer accounts • 265,000 new services customers • Fixed up to 35,000 boilers a day in December
Slide 17: Grow British Gas….
1 Grow British Gas…. leading the transition to low carbon homes and businesses • More than 300,000 smart meters installed since 2009 • 250,000 homes insulated in the past 12 months • £80m of help for vulnerable customers
Slide 18: Deliver value from our growing upstream business….
2 Deliver value from our growing upstream business…. securing sustainable energy for our customers • Integration of Venture boosts production • First full year contribution from British Energy • Statfjord and Trinidad & Tobago acquisitions • Meeting 60% of demand from our own resources
Slide 19: Build a more integrated North America business….
3 Build a more integrated North America business…. with leading positions in deregulated markets • Clockwork and Wildcat Hills acquisitions • Further acquisition opportunities at attractive prices • Growing residential and business customer base with Gateway acquisition • 6 million customer relation
Slide 20: Deliver superior financial returns….
4 Deliver superior financial returns…. through our operating performance and careful investment choices • 2010 total shareholder return 23% • Strengthened balance sheet • £300m of costs removed in the past three years • Strict investment criteria
Slide 21: Centrica 2011
Centrica 2011 • Downstream - lower consumption and higher costs • Customer gains - British Gas cheapest supplier on average for electricity and dual fuel • Upstream - strong production and enhanced profitability from nuclear and renewables • North America - on track for further growth • Remain focus
Slide 22: Centrica Annual General Meeting 2011
Centrica Annual General Meeting 2011