for the period ended 30 June 2015 This presentation does not - PowerPoint PPT Presentation

for the period ended 30 June 2015

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 and businesses of Centrica plc. These statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

Chief Executive

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE Rick k Haythor hornth nthwait waite Iain Conn Jeff Bell Jill l Shedden en Ian Peters s Director, Chairman Chief Executive Chief Financial Officer Group Director, Human Resources Customer Facing Strategy Mark Hanafin fin Mark Hodges Badar Badar Khan President Grant Grant Dawson on Group General Nick k Baird rd Group Managing Director, Centrica Energy Managing Director, British Gas and CEO, Direct Energy Counsel & Company Secretary Corporate Affairs Director 4 INTERIM RESULTS 2015

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE 09:00-10:00 Interims presentation and Q&A 10:00-10:20 Break 10:20-12:30 Strategy presentation and Q&A 12:30-13:30 Buffet lunch 5 INTERIM RESULTS 2015

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE • Commodity prices • UK General Election • Competition and Markets Authority investigation 6 INTERIM RESULTS 2015

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE • Earnings up 15%; EPS of 12.3p; operating cash flow of £1.1bn • Good progress in strengthening balance sheet and financial metrics • Full year outlook broadly unchanged • Senior Management team changes • Strategic review complete 7 INTERIM RESULTS 2015

Chief Financial Officer

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE H1 2015 ∆ % Period ended 30 June H1 2014 15, 5,451 451 Revenue (£m) 15,748 (2%) 1,000 000 1,032 Adjusted operating profit (£m) (3%) 29% 29% 37% Adjusted effective tax rate (8ppt) Grou oup p result lt: 611 611 Adjusted earnings (£m) 530 15% 12. 2.3 10.5 Adjusted earnings per share (p) 17% 3.57 57 Interim dividend per share (p) 5.10 (30%) Jun 2015 ∆% Period ended Dec 2014 4,905 905 5,196 Net debt (£m) (6%) The above adjusted figures are before depreciation of fair value uplifts to property, plant and equipment from Strategic Investments and exceptional items and certain re-measurements. Adjusted operating profit also includes share of JVs and associates before interest and taxation. A definition of the adjusted effective tax rate is provided in the Group Financial Review in the Interim Results announcement. 9 INTERIM RESULTS 2015

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE Aver erage age month h ahead ad Brent nt oil price e ($/boe) Aver erage age month h ahead ad gas prices es 80 70 UK Gas s (p/therm) 60 140 50 120 40 30 100 20 US Gas s (p/therm) 10 80 0 60 Jan Jan 14 Jul Jul 14 14 Jan Jan 15 Jul Jul 15 15 Jan 16 Jan Jul Jul 16 16 UK power r prices es and clean an dark 40 and clean and an spar ark spread ads 20 60 UK Power wer (£/MWh) 0 50 Jan 14 Jan Jul Jul 14 14 Jan Jan 15 Jul 15 Jul 15 Jan 16 Jan Jul 16 Jul 16 40 30 Prices as at 29 July 2015 20 Clean dark rk sprea read (£/MWh) 10 0 Clean spark rk sprea read (£/MWh) -10 Jan Jan 14 Jul 14 Jul 14 Jan Jan 15 Jul 15 Jul 15 Jan 16 Jan Jul Jul 16 16 10 INTERIM RESULTS 2015 10

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE 2015 5 average age UK temper eratur ature 2015 5 average age US North East t temperat eratur ure (degrees Celsius) (degrees Celsius) 25 30 20 20 15 10 10 0 5 -10 0 -20 Jan Jan Feb Feb Mar ar Apr pr May ay Jun Jun Jan Jan Feb Feb Mar ar Apr pr May ay Jun Jun Warmer than normal Colder than normal Seasonal normal temperature 2014 temperature 11 INTERIM RESULTS 2015 11

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE H1 2015 15 ∆ % H1 2014 Period ended 30 June (£m) 656 656 British Gas 455 44% 192 192 41 Direct Energy 368% 23 23 - Bord Gáis Energy nm 116 116 Centrica Energy 526 (78%) 13 13 10 Centrica Storage 30% Adjus justed ed opera eratin ing g prof ofit it 1,000 000 1,032 (3%) (51) Share of JV / associates’ interest and taxation (63) nm Depreciation of FV uplifts to property, plant and (24) 4) (40) nm equipment Grou oup p oper erat ating ing prof ofit it 925 925 929 (0%) The above operating profit figures include share of JVs and associates before interest and taxation and are before depreciation of fair value uplifts to property, plant and equipment from Strategic Investments and exceptional items and certain re-measurements. 12 INTERIM RESULTS 2015 12

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE Opera ratin ing profi fit (£m) H1 2015 15 ∆ % H1 2014 Period ended 30 June 528 528 Residential energy 265 99% 125 125 129 Residential services (3%) 3 61 Business (95%) Brit itis ish Gas Gas 656 656 455 44% Resid identi tial l energ rgy revenue (£m) Resid identi tial l serv rvices ices revenue (£m) Busin iness revenue (£m) and post tax marg rgin in (%) and post tax marg rgin in (%) and post tax marg rgin in (%) 802 802 1,573 4,691 804 804 4,551 1,421 12.6% 12.5% 9.0% 0.1% 3.0% 4.5% H1 H1 2015 H1 2014 H1 H1 2015 H1 H1 2014 H1 H1 2015 H1 H1 2014 H1 The above operating profit figures include share of JVs and associates before interest and taxation and are before depreciation of fair value uplifts to property, plant and equipment from Strategic Investments and exceptional items and certain re-measurements. 13 INTERIM RESULTS 2015 13

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE Opera ratin ing profi fit (£m) H1 2015 15 ∆ % H1 2014 Period ended 30 June 67 67 Residential energy (underlying) 80 (16%) 143 143 12 Business energy (underlying) 1,092% (18) 8) 14 Services nm Direc ect Energy ergy (underlying) 192 192 106 81% - Polar Vortex impact (65) - Direc ect Energy ergy 192 192 41 368% Resid identi tial l energ rgy revenue (£m) Busin iness energ rgy revenue (£m) Serv rvic ices revenue (£m) and post tax marg rgin in (%) and post tax marg rgin in (%) and post tax marg rgin in (%) 1,399 4,814 256 256 4,475 223 223 1,204 3.9% (4.9%) (0.3%) 3.0% 2.1% 1.9% H1 H1 2015 H1 H1 2014 H1 2015 H1 H1 H1 2014 H1 2015 H1 H1 2014 H1 The above operating profit figures include share of JVs and associates before interest and taxation and are before depreciation of fair value uplifts to property, plant and equipment from Strategic Investments and exceptional items and certain re-measurements. The 2014 residential energy and business energy operating profit includes one-off costs associated with the polar vortex. 14 14 INTERIM RESULTS 2015

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE Opera ratin ing profi fit (£m) H1 2015 15 ∆ % H1 2014 Period ended 30 June 1.9 656 656 British Gas 455 44% 192 192 41 Direct Energy 368% 23 23 - Bord Gáis Energy nm 116 116 Centrica Energy 526 (78%) 13 13 10 Centrica Storage 30% Adjus justed ed opera eratin ing g prof ofit it 1,000 000 1,032 (3%) Revenue (£m) and post tax marg rgin in (%) Genera ratio ion (TWh) 400 400 1.1 0.9 5.0% H1 2015 H1 H1 2015 H1 The above operating profit figures include share of JVs and associates before interest and taxation and are before depreciation of fair value uplifts to property, plant and equipment from Strategic Investments and exceptional items and certain re-measurements. 15 15 INTERIM RESULTS 2015

FINANCIAL OPERATIONAL INTRODUCTION PERFORMANCE PERFORMANCE - GAS H1 2015 15 ∆ % H1 2014 Period ended 30 June (£m) 48 48 Operating profit before tax 465 (90%) (23) 3) Operating profit after tax 235 nm Avera rage gas sales pric ice Avera rage liquid id sale les pric ice Euro rope (p/therm) Ameri rica cas s (US$/mmbtu) Euro rope (£/boe) Ameri rica cas s (US$/boe) 56.0 .0 4.0 59.9 .9 78.6 .6 48.8 .8 40.3 .3 2.3 44.7 .7 H1 H1 2015 H1 2014 H1 H1 H1 2015 H1 H1 2014 H1 H1 2015 H1 2014 H1 H1 H1 2015 H1 H1 2014 The above operating profit figures include share of JVs and associates before interest and taxation and are before depreciation of fair value uplifts to property, plant and equipment from Strategic Investments and exceptional items and certain re-measurements. A definition of operating profit after taxation is included in note 4b of the Interim Results announcement. 16 16 INTERIM RESULTS 2015