Centrica Plc · LSE:CNA
Centrica — H1 2019 Earnings Presentation
11 slides from Centrica's earnings presentation, Jul 31, 2019
Slide 1: Interim Results and Strategic Update — Introductory slides
Centrica ple Interim Results and Strategic Update — Introductory slides for the period ended 30 June 2019 < i) e@ \ centrica
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: Summary
centrica Summary Exceptionally challenging H1 circumstances but momentum into H2 and 2020 Performance . ¢ Consumer account growth in H1. Expect to meet 2019 Group targets ¢ Completing the shift towards the customer, exiting E&P and Nuclear Energy Services and Solutions Company, focused on distinctiv
Slide 4: What to expect
centrica What to expect Focus on distinctive strengths in Energy Services and Solutions: - Energy supply and its optimisation - Services and solutions centred around energy ¢ Growing importance of Home Energy Management and Electric Vehicle Integration — exclusive Ford deal announced today ¢ Reposit
Slide 5: Exceptionally challenging H1 2019
Exceptionally challenging H1 2019 UK energy default tariff cap including Q1 one-off impact Very low UK natural gas prices Nuclear inspection outages at Hunterston B and Dungeness B - Very warm weather in UK and North America Weak adjusted earnings: - Adjusted operating profit of £399m, down 49% - Ad
Slide 6: Growth in consumer accounts in H1 2019
Growth in consumer accounts in H1 2019 Consumer accounts (‘000s) Collective tariff/ white label UK (274) Pe FY 2018 (35) Prepayment (35) 142 a Energy Competitive gains 131 145 a Services growth 140 FY 2018s presented on a like-forlike basis excluding customer accounts relating to the Clockwork US ho
Slide 7: Earnings momentum in H2 2019 and into 2020
centrica Earnings momentum in H2 2019 and into 2020 ¢ FY 2019 earnings expected to be weighted towards H2 due to a number of factors: - Absence of Q1 one-off price cap impact - Hunterston B and Dungeness B expected to come back on line - North America Business margin under contract is H2 weighted -
Slide 8: Portfolio update
centrica Portfolio update ¢ Will exit hydrocarbon production, creating a leading international Energy Services and Solutions provider ¢ Will continue to serve Consumers and Business Customers, with a geographic focus on the UK, Ireland, North America and Continental Europe ¢ Centrica Consumer will f
Slide 9: Business unit decisions
centrica Business unit decisions ¢ UK Home to be fundamentally repositioned, driving structural changes in customer journeys, internal processes and the cost base ¢ Connected Home will be refocused on the UK and Ireland and around Home Energy Management, will be renamed Centrica Home Solutions ¢ Nor
Slide 10: Improving competitiveness
centrica Improving competitiveness ¢ Wholly customer-facing company will enable material simplification and greater focus, unlocking and accelerating significant further efficiency potential ¢ Having reached competitive cost levels on average, Centrica will target becoming the lowest cost provider i
Slide 11: Dividend and capital structure
centrica Dividend and capital structure Pressure on dividends in the near term: - Changed context including impact of UK price cap on operating cash flow - Higher pension cash requirements following triennial valuation - Restructuring costs to achieve targeted cost competitiveness - Lower net debt c