Learn how our refreshed strategic priorities position Centrica to best advantage in a rapidly evolving energy world: Innovate to drive service excellence and growth; Integrate our natural gas business, linked to our core markets; and Increase our returns through efficiency and continued capital discipline

1. Strategy update
27 February 2013

2. 2
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 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.
Unless otherwise stated all reported figures include share of JVs and associates after interest and taxation
(except adjusted operating profit which includes 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.

3. Sam Laidlaw
Chief Executive

4. Progress against previous strategic priorities
 Stable BGR profit and market share
 BGS profit up 34%
 Leadership in systems, online and smart
 2P reserves up 50%, production up 50%
 Established significant Norwegian business
 Strong nuclear output and life extensions
 US customer numbers up 75%, DEB power volumes up 54%
 Multi-state services capability
 Gas and liquids production up 50%, resource base trebled
 EPS up 25%
 DPS up 28%
 TSR 36% (FTSE 100: 21%)
Strategic priorities
Grow British Gas
Deliver value from our
growing upstream
business
Build an integrated
North American
business
Drive superior financial
returns
Strategy delivery over past 3 years
4

5. The external environment is evolving
• Gas continues to play a major but changing role in UK and US energy supplies
– the UK is increasingly reliant on imports. LNG will intensify the link between the
UK and global gas markets
– in North America, growing shale production has resulted in low prices and is
opening an opportunity for exports
• In UK power generation, new investment depends on regulatory outcomes
• Downstream trends differ in our markets
– in the UK, affordability is high on the political agenda and energy efficiency and
technology are key to managing energy bills
– in contrast, in North America bills are decreasing and the market environment
is improving
5

6. 2010 2015 2020 2025
Gas has an important role to play in the US and UK
Source: UK – National Grid National Grid Ten Year Statement
US – EIA Annual Energy Outlook 2013 Early Release, central case
• Coal to gas switching in power
• Lower CO2 emissions
• Potential additional industrial
demand growth
• Scope for gas exports
Forecast UK gas demand
2010 2012
8.4 8.0
bcf/d
2015 2020 2025
8.5 8.4
7.8
Forecast demand for power generation
2010 2015
bcf/d
2020 2025
UK - continuing role for gas
1
2
3
4
Forecast residential gas demand
bcf/d
1
2
3
4
Gas currently heats
81% of UK homes
Gone Green scenario
Slow Progression scenario
Gone Green scenario
Slow Progression scenario
2010 2012
64
69
bcf/d
2015 2020 2025
68
71 72
Gas demand for power generation
2009 2010
19 20
bcf/d
2011 2012
21
25
US - new sources of demandForecast US gas demand
6

7. Source: UK – National Grid Ten Year Statement (Slow Progression scenario)
UK more reliant on gas imports
• Traditional supplies declining
• LNG increasing
• UK shale may contribute in the longer-term
7
LNG imports
Europe imports
Norway imports
UK onshore
UKCS
domestic0
2
4
6
8
10
12
2001 2006 2011 2016 2021
29%3% 57% 61% 72% % of supply
from import
UK gas supply (bcf/d)

8. 2000 201220102008200620042002 201820162014
Forward curve
LNG intensifies link between UK and global markets
• UK competing for supply in a global LNG market
• 25 countries importing LNG in 2011 (12 in 2001)
• Spot LNG increased from 6% to 25% of traded
volume between 2005 and 2012
• Regional price spreads are driven by
– North America: abundance of gas
– Asia: oil indexation and growing demand
– Europe: tension between oil indexed and
gas-on-gas pricing
Growing global LNG demand
8 Source: UK – BCG, IHS CERA, ICE, Nymex
20112001
7
2
31
13
Other
India
Spain
UK
Japan
South Korea
France
US
bcf/d
Regional pricing with high volatility
Gas Europe (NBP)
Gas U.S. (Henry Hub)
Gas Asia (Japan LNG)(USD/mmbtu)
0
5
10
15
20

9. Shale gas has transformed the US energy outlook
• Greater certainty about scale and enduring
nature of shale gas in the US given technology
developments
• >20 LNG export projects under consideration
• UK a potential future market for US gas
Shale increasing gas production
9 Source: EIA Annual Energy Outlook 2012; FERC: Federal Energy Regulatory Commission; LNG export project status as at 21 February 2013
LNG export projects are planned
Cameron LNG, LA
(Sempra)
Sabine Pass, LA
(Cheniere)
Lake Charles, TX
(BG/S. Union)
Lavaca Bay LNG,
TX (Excelerate)
Corpus Christi
LNG, TX (Cheniere)
Freeport LNG, TX
(FLNG)
Oregon LNG, OR
(OLNG)
Jordan Cove, OR
(Veresen/OPD)
FERC filing
FERC pre-filing
Under construction
Cove Point, MD
(Dominion)
Shale increasing gas production
1990 2000 2010 2020 2030
100
20
bcf/day
US gas production
0
40
60
80
US demand
Non-Shale
Shale

10. UK Power investments depend on regulatory support
• Spark spreads remain low
• Reserve margins expected to fall for next three
years, leading to market tightening
• Attraction of new investment will depend on
capacity payments, which remain uncertain
• Projects are becoming larger and more complex
• Regulatory uncertainty remains
– CfD design and strike price
• Few equity investors able to take construction risk
• Fixed price will no longer provide a hedge for
downstream volatility
Gas fired generation
10 Source: Argus; 4C Offshore
Renewables
Average offshore wind project characteristics
~100
~500
~1,000
1
Round 1
Round 2
Round 3
Average
size (MW)
9
15
45
8
25
60
Average
water depth (m)
Distance to
shore (km)
1. R3 zones are c.3,500MW but actual projects are likely to be divided into smaller sizes
(£/MWh)
UK power price and clean spark spread
40
60
80
100
20
0
-20
Baseload power
2005 2007 2009 20132011 2015
Clean Spark Spread
Forward curve

11. Downstream: emphasis on affordability in the UK
• Regulatory scrutiny of pricing and product transparency
– building trust a key issue
• Energy efficiency more important for customers and Government
– underlying gas consumption down 15% since 2008
– cost of carbon abatement increasing
11 Source: ONS, economic position of households, Q2 2012 update; European Commission/nVision 2012; Average bills based on national average direct debit rates and at Seasonal Normal Temperature (SNT)
Energy bills increasing
British Gas residential dual fuel energy bill
£/customer/year @SNT
2008 2009 2010 20122011
1,067
944
1,0271,005 Non-commodity
costs
Commodity costs14.8
15.0
15.2
14.4
14.2
14.6
14.0
2008 2009 2010 20122011 2013
Real households’ disposable income per head
£ ‘000 /year,
real 2009
UK consumer confidence
Index, %
Challenging economy, pressure on spending
15.4
-40
-35
-30
-25
-20
-15
-10
-5
0
1,125

12. Downstream: favourable environment in NA
• Improving market environment
– regulators welcoming competition
– ~8m new residential competitive retail customers since 2008 (up 64%)
• Businesses interested in demand response and energy management services
12 Source: Federal Reserve Economic Data: US Department of Commerce, Bureau of Economic Analysis; University of Michigan; KEMA retailer landscape September 2012
Energy bills decreasing
Direct Energy customer energy bills
$/customer/year
2008 2009 2010 20122011
US North
Texas
1,000
1,500
2,000
3,000
500
0
2,500
Income and sentiment improving
35
32
30
2008 2009 2010 20122011 2013
34
33
31
Real households’ disposable
income per head
$ ’000s/year, real 2005
90
50
30
70
60
40
80
US consumer
sentiment index, %

13. 1. Innovate
to drive growth and service excellence
2. Integrate
our natural gas business, linked to our core markets
3. Increase
our returns through efficiency and continued capital discipline
Our strategic priorities
The leading integrated energy company
with customers at its core
13

14. What these priorities mean
14
Share technology and new propositions across the
Atlantic, leveraging our leading positions. Grow in
B2B, services and North American residential
Invest for value in E&P, notably in North America,
and limit capital employed in power. Increase our
presence in LNG and grow optimisation activities
Drive operational and cost efficiency across the
Group, deploy balance sheet capacity where we
see value, return surplus capital to shareholders
1. Innovate
to drive growth and
service excellence
2. Integrate
our natural gas business,
linked to our core markets
3. Increase
our returns through efficiency
and continued capital discipline

15. New organisational structure
• Leverage scale benefits in sales
operations, billing and customer
service
• Share best practice in competitive
energy retailing
• Share innovations and new
products e.g. connected homes
• Deploy expertise across the
Atlantic e.g. B2B and services
• Leverage scale, systems and technology
in the UK and North America
• Share best practice across the Atlantic
International Downstream
• Deliver best in class safety and
environmental performance
• Reduce cost
15
• Leverage technology, reservoir
and geoscience expertise
• Harness project management
capability
• Explore options for North
American exports to UK as well
as to US customers
• Optimise midstream and arbitrage
opportunities
International Upstream
International functional organisation

16. New organisational structure
16
Sam Laidlaw
Chief Executive
• E&P Global
• UK Power
Jill Shedden
Group Director
Human Resources
Grant Dawson
General Counsel &
Company Secretary
Mark Hanafin
Managing Director
International Upstream
• Centrica Storage Ltd
• British Gas Residential
• British Gas Services
• British Gas Business
• North America (excl. E&P)
Chris Weston
Managing Director
International Downstream
Nick Luff
Group Finance
Director

17. 1. Innovate
to drive growth and service excellence
• Lead with great service and efficient operations
• Enable our customers to control their energy use in a simpler, smarter, more efficient way
• Grow in selected markets, building on our leading capabilities
2. Integrate
our natural gas business, linked to our core markets
3. Increase
our returns through efficiency and continued capital discipline
Our strategic priorities
17

18. Our downstream business
18
Benefits of scale in sales operations,
billing and customer service
15.7m residential
energy accounts
• 1.2 bcf/d gas
• 26 TWh electricity
4.1m services
customers
3.5m residential
energy accounts
• 584 mcf/d gas
• 19 TWh electricity
0.4m B2B accounts
• 217 mcf/d gas
• 51 TWh electricity
3.1m services
customer relationships
0.9m B2B accounts
• 248 mcf/d gas
• 17 TWh electricity

19. Distinctive capabilities across downstream
• ‘Five star’ UK customer service rating from Consumer Focus
• Same day service promise in NA and UK
• IT platforms driving scale efficiencies
• UK base of over 11,000 highly trained engineers
• Presence in 78 of top 100 US metropolitan areas – 1,900 US
employee licensed technicians and 1,600 franchisees
• No. 1 UK website, 30% of customers registered online
• Innovative US ‘Free Power Saturdays’ and ‘Power-to-Go’ propositions
• Highly rated connected home products and applications
Customer service
and efficiency
Home and
business services
Innovation
Great brands
19

20. UK:
• Relentless focus on costs, enabled by leading systems and efficiencies
• Energy customer churn 3pp below industry average
20
Great service and efficient operations
Efficiency in energy and
services has improved . . .
British
Gas
Competitor
Average
90
80
70
60
40
20
10
0
30
50
2011 operating cost
per account
9
8
7
6
4
2
1
0
3
5
2011 post-
tax BGR
margin (%)
2009 2012
Material costs
600
575
550
525
500
BGS
product
holdings
per FTE
20
15
10
5
0
2009 2010 2011 2012
Total British Gas Net Promoter Score
35
30
25
20
15
10
5
0
. . . while Net Promoter Score
has been increasing
£ £/job, real
great service and efficient operations

21. US:
• Call centre consolidation reduced costs but maintained service
• Investment in customer information platforms to improve first call resolution
21
Great service and efficient operations
. . . as are Net Promoter ScoresOperational efficiency is increasing…
80
60
40
20
0
-20
Services
Business
Residential
DE operating metrics
US$
Cost to serve/
customer
2009
2012
Opex/
customer
Operating
profit/customer
104
67
167
157
64
76
Direct Energy Net Promoter Score
2009 2010 2011 2012
great service and efficient operations

22. Opportunities to differentiate in residential
• Target attractive customer
segments
bundling products,
services and energy
• Aid customer retention
differentiates British Gas
and Direct Energy from
competitors
• Material contribution to
future operating profit
Simpler, smarter, more efficient energy
• Additional opportunities in connected homes driven by
– smart meter roll-out
– energy efficiency
• Good fit with our digital presence and services capabilities
Power-To-Go
Free Power Saturdays
22
Remote Heating Control
Smart phone
application
Smart Energy Report

23. Source: 1. Lawrence Berkley National Lab
Opportunities to differentiate in B2B
Simpler, smarter, more efficient energy
23
Improving energy
performance in UK
• EPCs – partnering with
major organisations to fund
energy saving measures,
paid via energy bill reduction
• 7 UK partnerships from
standing start
– 5-10 year contracts
– growing book, 5-10%
net margin
• BGB Services 2012 revenue
up 12%
Demand response is already
material in US
• Customers modify electricity
consumption in response to
electricity prices
• Large and growing US
market: from 15GW in 2007
to >30GW in 2012
• Creates a ‘virtual generation’
asset at lower capital and
operational risk than peaking
plants
Distributed generation
poised for growth
• Energy management –
potential for >15 GW of
commercial solar by 2016 in
DEB’s footprint
Reducing churn and improving margins
through additional B2B services
Average Installed Price of
Distributed Solar PV 1
1998 2010
$/W
2011 2012
12
10
8
6
4
2
0
All other costs
PV module

24. A market leading position in North America
• DE downstream ROACE up
from 9% to 13% since 2009
24
Strong growth track record Market leading position
Grow in selected markets
• 400,000 DEB accounts
– small business segment operating
profit has grown 8x since 2009
Direct Energy
underlying operating profit
£m
2009 2010 2011 2012
331
312
234
214
Ontario
CAGR:+16%
North America competitive
residential energy retailers
Energy customers, millions
Direct
Energy
FirstEnergy
Solutions
Just
Energy
TXU
Energy
1.61.6
2.1
2.7
1.1
1.4
Reliant
Energy
Dominion
Retail

25. North America: growth in residential
25
Grow in selected markets
• Product differentiation and effective sales channel
management delivering higher organic growth
– USNE customer base now 1.4m
• New sales channels including improved digital
platform
Organic customer base growth
Residential energy net customer additions (’000)1
% of total
2011 2012
396796
Acquisitive
Organic
100%
80%
60%
40%
20%
0%
Integration of bolt-on acquisitions
• Platform standardisation and staff
consolidation to deliver synergies
• Flexible integration approach to identify
opportunity above investment case
• Identify and retain best practices
(e.g. targeted sales strategies)
Gateway
Vectren
First Choice Power
$90m
$39m
$270m
15%
17%
12%
Cost
IRR
(latest view)2011 acquisitions
1. Excludes Ontario, Alberta regulated, transfers of accounts to DEB and aggregation customers acquired as a result of the 2011 Vectren acquisition

26. Positioned for further growth in North America
26
Grow in selected markets
• 50m homes in deregulated
markets in the US
• Realise scale benefits and
portfolio diversity
• Leverage smart opportunity
Large residential energy market
with room for growth . . .
. . . supported by growth
in Services and B2B
• 13% p.a. growth in
customer relationships
(2009-12)
• Strengthen services
platform and build
protection plan business
Residential Energy market share % of total (2012)
85%77%
Incumbents
Retailers
100%
80%
60%
40%
20%
0%
15%
23%
Direct Energy
DE Services operating profitServices
18
15
28
33£m
2011 201220102009
• Target growth in small
business and through
new offerings (e.g.
demand response)
DE Business operating profit
34
88
110
129£m
2011 201220102009
C&I
Small Business
B2B

27. Growth prospects in downstream
• Operational efficiency and great service to remain
competitive
• New segments (e.g. landlords), affinity partnerships,
and smart meter enabled sales
• Connected homes and businesses to contribute ~£50m
and underpin core propositions
• Near term challenging
• Growth supported by business services
maintain stable
margins
high single digit
growth
mid single digit
growth over time
double in the next
3-5 years
(downstream)
• Organic growth in DER, DEB and DES: customer loyalty in
DER and differentiated products and services
• Bolt-on acquisitions: leveraging our integration expertise
• Attractive adjacencies: leverage our existing customer base
and core capabilities
Operating profit
BGR
BGS
BGB
27

28. International downstream in summary
28
1. Innovate
to drive growth and service excellence
Growth in selected
markets
Simpler, smarter, more
efficient energy
Great service and
efficient operations
Lead with great service and relentless focus on costs,
utilising our unique scale, systems and services capabilities
Enable our customers to control their energy use with
innovative new products and services
Apply our leading capabilities in services and B2B in the UK
and US, build scale in US NE and Texas residential

29. 1. Innovate
to drive growth and service excellence
2. Integrate
our natural gas business, linked to our core markets
• Grow and diversify our E&P portfolio for value
• Develop our midstream business to integrate along the value chain
• Maintain a low carbon power hedge and invest where we see value
3. Increase
our returns through efficiency and continued capital discipline
Our strategic priorities
29

30. Delivering on our strategy
Grow and diversify our E&P portfolio for value
• Larger, more diverse portfolio
• 30 operated fields compared to 6
at the start of 2009
• Sustainable mix of producing,
development and exploration
assets
• Good progress towards existing
production target
– ~75mmboe/a in 2013
including 10mmboe/a in
North America
• 208% Production Replacement
Ratio for 2009-12
30
Global oil & gas
production
mmboe/a
2009
44
75
bcfe/d
1.3
2013e2009
2P reserves 1,2
mmboe
2009
290
633
tcfe
4.0
20132009
2C resources 1
mmboe
60
590
tcfe
4.0
20132009
Trinidad & TobagoNorth America
NetherlandsNorwayUK
1. At 1 January; Netherlands includes UK sector of Markham hub, Norway includes UK sector of Statfjord hub
2. Excludes Rough cushion gas (31mmboe in 2012)

31. 31
Our UK hedge is now in line with our competitors
bth
2009
6.6
2.7
SupplyDemand
Residential pre-tax energy hedge:
Centrica’s changing energy balance1
bth
2009
6.3
4.8
SupplyDemand
Power
Gas
2009 2012
%
2009
CompetitorsCentrica
Centrica hedge ratio vs competitors
Competitors
Pre-tax Post-tax
0
10
20
30
40
50
60
70
80
210
220
230
2009
46
Centrica
1. Demand includes residential energy demand, power station gas requirements and gas required to generate power demand not covered by own gas-fired generation.
Supply includes non-US gas and oil production and the gas equivalent of power generated from non-gas sources (wind power, nuclear power and coal linked purchase contracts).
77
42%
26%
Residential post-tax energy hedge:
46%
77%

32. Distinctive capabilities underpin recent success
• Morecambe field life extended beyond 2025
• Wildcat Hills redevelopment commenced in 2012
• Hydraulic fracturing of tight sands in Southern North Sea
• Ensign, Seven Seas and Atla fields brought into production
• Cygnus FID taken, supported by new £500m tax allowance, peak
production ~110 mmcf/d
• Innovative but proven solutions (e.g. F3-FA self-installing platform)
• 40% 2010-12 exploration success rate, £3.5/boe finding costs
• 22 awards in latest UK and Norwegian license rounds
• Discoveries at Butch, Maria and Rodriguez
• Norwegian assets acquired from Statoil for c.£1bn, alongside
partnership agreement on gas exploration opportunities
• Statfjørd share increased to ~35%
• North American reserves up 65% over 3 years
Recent achievementsDistinctive capabilities
Asset
stewardship
Delivering
mid-sized projects
Exploration in known
subsurfaces
Strategic acquisitions
and partnerships
32
Grow and diversify our E&P portfolio for value

33. Norway –a successful growth story
Production: fastest growing entrant since 2000
• 4 acquisitions between 2008 and 2012
• Statoil and Statfjørd acquisitions outperforming
double-digit IRR acquisition cases
• ~65kboe/d in 2013 from Statfjørd, Kvitebjørn and
Heimdal hubs
Development: capturing upside from our acquisitions
• Portfolio of 8 development assets (5 operated)
• Can sustain current production until at least 2020
• Self-funding from 2013
Exploration: outstanding success
• 37 licences awarded – 95% success rate
• 10 wells drilled, with 60% success rate
• Average finding costs of £2.4/boe
• 10 further exploration wells identified
33
Grow and diversify our E&P portfolio for value
1. Includes UK sector of Statfjørd field
From entry to successful
mid-scale E&P in 5 years
Production assets
Development assets
2P + C
2007 2009 2010 20122011
128117
63
0
375
2008
63
Exploration discoveries
mmboe1

34. Morecambe –extracting value from a mature asset
Production: managing performance and cost
• FEED underway on Barrow terminal optimisation project – potential for
field life extension
• Ongoing terminal reliability and maintenance programmes
Development: adding new reserves
• Rhyl - first Centrica gas development in the East Irish Sea in over 10
years (13mmboe, 80bcf)
• First gas expected Q1 2013, reserves doubled since sanction
• Whitehaven exploration well successful, may add up to 20bcf to
reserves
Exploration: adding new resources
• 3D seismic survey completed in January, first in region since 1993
• Identifying deep pre-Triassic targets under the current reservoir
• First deep exploration well expected 2014
34
Grow and diversify our E&P portfolio for value
North Morecambe
Rhyl
Marram
Bains
Ormonde
Millom
Heysham
Barrow
A highly strategic asset
• One of UK’s largest gas fields
• First gas 1985, peak gas 2000
• 100% owned and operated
• Low operating cost
South Morecambe

35. Western Canada –capabilities in onshore E&P
35
Transforming our business
Production: building scale
• Doubled our 2P reserves and production
• Taking advantage of low gas prices to
acquire long-life assets for value
Development: capabilities in
horizontal wells
• Shifted focus from shallow gas and coal bed methane to more valuable
liquids-rich gas and oil
– average well length increased from ~0.8km to ~ 3km
– drilling programme from 95% vertical wells to 80% horizontal wells
• Unit costs decreased from $5.5/mcf to under $4/mcf
• Well positioned for further growth in North America
Production
2P Reserves
2007 2009 2010 201220112008
mmboebcfe
700
350
0
bcfe/d
0.2
0.1
0.0
mmboe/a
Grow and diversify our E&P portfolio for value
120 12

36. Diversified portfolio with stable production outlook
• Increasing diversification: UK
<25% of production by 2020
• Four developments approved:
Cygnus, Valemon, Kew, Grove
• Development options
represent over 0.5bn boe of
2C resources
• Targeting double-digit returns
from developments
36
Grow and diversify our E&P portfolio for value
0
15
30
45
60
75
90
Global gas & oil production outlook
mmboe/a
Exploration
Development options
Approved developments
North America
Europe, T&T2
Base
1.5 bcfe/d
Typical
investment
~£100m/a
~£1bn/a1
1. Includes ~£100m/a maintenance capital expenditure
2. Base production includes York and Rhyl
2009 2011 2013 2015 2017 2019

37. Deploying further capital in E&P for value
• Consider upstream growth
only where we see value
• Apply rigorous capital discipline
• North America currently an attractive
market for further investment
– good value opportunities
– our gas production is
only ~20% of our NA
gas demand
37
Opportunity to step up from 75mmboe/a towards
100mmboe/a production globally
Grow and diversify our E&P portfolio for value
Norway
• Scale and longevity - exploration
potential
• Further acquisitions around hubs
UK & Netherlands
• Mature assets, declining resources
• Focus on existing hubs
• Bolt-on acquisitions and
divestments to high-grade portfolio
North America
• Opportunity to acquire position in
conventional and unconventional plays
• Scalable with the potential for exports
• Diversifies NBP exposure
Trinidad & Tobago
• Opportunities to deliver value
from our existing positions
• Further exploration potential

38. Value is emerging in US unconventionals
• Natural gas prices recovering as
demand grows and production
adjusts
• Asset prices now more realistic
• Technological advances have
de-risked unconventional
resources and increased well
productivity
38
0
10
20
30
40
50
60
70
80
90
100
110
120
0
1
2
3
4
5
6
7
8
9
10
11
12
Forward curve
$/bbl$/mmbtu
Historic
EV/ EBITDA of Companies
Exposed to Unconventional GasWestern Texas Intermediate
Oil Price
Henry Hub Gas Price
EV/ EBITDA
Multiple1
20152014201320122011201020092008
0
1
2
3
4
5
6
7
8
1. Enterprise value over 12-month forward earnings forecast for selected group of companies exposed to US unconventional gas
Grow and diversify our E&P portfolio for value

39. Significant positions along the gas value chain
800 mmcf/d residential &
business gas demand
1.3 GW CCGT
(126 mmcf/d fuel gas)
Potential investment in gas
production (focus on NA)
Access to 1 bcf/d pipeline &
23 bcf storage capacity
321 mmcf/d supply contract
with Qatargas
1.5bcf/d residential &
business gas demand
4.1 GW CCGT
(175 mmcf/d fuel gas)
10 mmboe/a production
(159 mmcf/d)
39mmboe/a production
UK and NL (588 mmcf/d)
150mmcf/d production
potential development
22mmboe/a production
Norway (270 mmcf/d)
117 bcf of gas storage
(Rough)
566 mmcf/d LNG import at
Isle of Grain
LNG
Upstream
production
Gas demand
Midstream
Positions
1.2bcf/d of European
contracts and storage and
pipeline capacity
Opportunities to link and optimise
our positions along the value chain
39
Develop our midstream business to integrate along the value chain

40. Develop our midstream business to integrate along the value chain
Deploying our midstream capabilities
• Managing price risk, shape,
intermittency and seasonal swing
• Track record in gas and power asset
optimisation
• Assets and positions in UK, North
America, Norway and Benelux across
E&P, power, storage and logistics
• Strategic partnerships
– 0.5 bcf/d supply contract with Statoil
alongside a £1bn upstream asset
acquisition
– 2.4mmtpa (0.3 bcf/d) supply contract
with Qatargas; MoU with QPI
• Market insights from participation across
gas value chain
Asset-backed
optimisation
Procurement
and contracting
40
Our capabilities Opportunities
Grow our optimisation
business, linking our positions
along the gas value chain
Increase our presence in
LNG contracting, securing
energy for our customers

41. Expertise and options in UK storage
• UK has relatively low seasonal storage capacity
• Volatility in gas price may increase with more wind on
the system
• Strong Asian demand may limit LNG imports
• Floor price may be required to promote investment
and provide insurance
41
Develop our midstream business to integrate along the value chain
Rough (existing)
Baird
Caythorpe
% owned by Centrica
Working gas (bcf)
Injection/withdrawal (days)
100%
117
190/90
Rough
100%
4.9
26/30
Caythorpe
70%
108
90/95
Baird
Projects

42. Maximising value from our existing UK power assets
• CCGT: managing the fleet for market recovery
– higher utilisation expected by 2015
– turbine blade upgrade at South Humber and
potential Kings Lynn replant
– ongoing portfolio restructuring
• Nuclear: focus on reliability and life extension
– good performance
– seven year average life extension now assumed
• Wind: management of asset and maintain new options
– Lincs into production and financing complete
Flexible, low carbon generation capacity
Expected increase from existing fleet
42
Maintain a low carbon hedge and invest in power where we see value
Centrica Energy UK equity generation capacity1
6.0
GW
2012
4.1
1.7
0.2
Nuclear
CCGT
Wind
Peak Power
cover ratio2
~ 70%
Centrica Energy UK equity generation output
21.5TWh
2012
9.0
12.0
0.5
2015e
1. Includes Spalding tolling contract
2. Peak power demand from BGR and BGB / maximum CCGT, nuclear and contract power generation capacity

43. Options to invest if we see value
CCGT
• New build options maintained at least cost
• Investment decision subject to improvements in
market outlook and capacity payment outcome
– Kings Lynn 2 (1 GW)
– other sites being considered
Offshore wind
• Pipeline of development opportunities but
challenging environment. Investment requires:
– regulatory certainty around revenues
– steady, predictable timelines
– fast capital cycling
– availability of partners
• Seeking to progress Race Bank to FID
• R3 ‘Celtic Array’ next in pipeline, following
successful Race Bank
Langage Power Station
43
Maintain a low carbon hedge and invest in power where we see value
Offshore wind project pipeline
3,500
3,000
2,500
2,000
1,500
1,000
500
0
MW
2006 2008 2010 2012 2014 2016 2018e
2007 2009 2011 2013 2015 2017e Post
2018
Race Bank
R3 Celtic Array
LID
Lincs
Barrow

44. International upstream in summary
44
2. Integrate
our natural gas business, linked to our core markets
Maintain a low carbon
power hedge and invest
where we see value
Develop our midstream
business to integrate along
the value chain
Grow and diversify our
E&P portfolio for value
• Strong near term growth and good development pipeline
• Build and optimise our portfolio: moving towards 100mmboe/a,
investing only for value
• Greater focus on North America
• Grow our midstream activities to integrate along the gas value chain
and across the Atlantic
– focus on LNG, storage, and asset optimisation
• Further investment in offshore wind with limited capital employed
• Maintain new build CCGT options at least cost
– higher output and margins as market conditions improve

45. Nick Luff
Group Finance Director

46. Our strategic priorities
1. Innovate
to drive growth and service excellence
2. Integrate
our natural gas business, linked to our core markets
3. Increase
our returns through efficiency and continued capital discipline
• Further develop organisational capability
• Continuously focus on safety
• Deliver value to shareholders
46

47. Cash generation
• Highly cash generative business model
– ~£1.8bn free cash flow p.a.
• Significant flexibility in investment choices
across the Group
• Opportunities benchmarked against returns
to shareholders
Sources and uses
Sources Uses
£4.0bn
EBITDA
Normalised cash flows
£1.2bn
£0.9bn
Interest and
tax
Dividends
Other1£0.1bn
Free cash
flow
47 1. Includes working capital, exceptional payments, pension deficit payments

48. Capex profile
• ~£200m p.a. maintenance capex
• ~£1.1bn p.a. to maintain and sustain production
– bring gas and oil projects onstream
– enhance production from existing assets
– includes ~£100m p.a. exploration spend
• ~£400m-£500m p.a. available for ‘growth’ investment
choices, broadly maintaining current levels of net debt
– including additional upstream investment,
offshore wind, new-build CCGT,
gas storage, bolt-on acquisitions
48
Other
maintenance
Upstream gas and oil
(Including maintenance)
‘Growth’ capex
Annualised
capex profile 2013-15
~£0.2bn
~£1.1bn
£0.4bn-
£0.5bn

49. Credit headroom
• Maintain commitment to A3 / A- credit ratings
• Comfortable 2012 metrics, expected to improve in 2013
• Headroom for value-adding acquisitions
49
EBITDA Net
debt
£3.7bn
£4.0bn
Funds from
operations
Adjusted
debt
£3.0bn
£5.2bn
Retained
cash flow
£1.7bn
£5.9bn
Adjusted
debt
57% 29%
For the year ended 31 December 2012

50. Bringing projects on stream
• Bringing £1.5bn of major new projects onstream
between 2013-2015
• Track record of bringing resources into production
– Rhyl discovery in 2009, first gas due early 2013
– York appraisal in 2010, first gas due early 2013
• Balanced portfolio of exploration, development and
production assets
– high grading portfolio through investment choices
50
Capital moving from
pre-productive to productive
2012 2013 2014 2015
First year
of project
earnings
Ensign
Seven Seas
Atla
Lincs
York
Rhyl
Kew
Valemon Cygnus
0.0
£bn1.5

51. Case studies –organic investment decisions
Cygnus
• Strong strategic fit – cornerstone asset
– acquired through Venture Production acquisition
– largest discovery in Southern North Sea for 25 years, £1.4bn total investment
– Centrica share of 2P reserves of 53mmboe
– deploying our expertise through 48.75% non-operated interest
• Shallow field allowance improves full cycle returns to ~10% level and point forward
IRR to >20%
New nuclear
• Potentially attractive option acquired as part of BE acquisition in 2009
• £200m pre FID investment
– good progress in a number of key areas
• Strict financial discipline, decision not to proceed
– increased costs, extended timeline for return on capital
– CFD structure does not provide hedge against downstream price volatility
– existing nuclear JV performing well51

52. Case studies - acquisitions
Statoil strategic partnership
• Delivered step change in scale of Norwegian activities, trebling 2P reserves
– £1bn investment for 117mmboe 2P reserves (including 90mmboe producing
Kvitebjørn field and 21mmboe Valemon development asset)
– building on existing Norwegian position
– leveraging our relationship with Statoil
– specially tailored package - upside through development and exploration
• Broader partnership, including supply contract and exploration MoU
• ~10% IRR, production ahead of investment case
First Choice Power
• Added 200,000 customers in core Texas market, increasing our scale by one third
– high consumption, low-churn incumbent customer base
• Double digit IRR investment case; accretive in first year; five-year payback period
– integration into existing platform completed ahead of plan, delivering synergies
– lower churn
52

53. Operational excellence
• Strong health and safety record
– process and personal safety a core priority
• Strong track record of cost reduction
– on track to deliver £500m Group-wide cost
reduction programme, ensuring we remain
competitive
– half of savings achieved in 2012
– 3,000 roles removed
– 5% reduction in underlying British Gas costs
in 2012
– improved levels of customer service
• Continuous focus on operational efficiency and
cost reduction
53
1. Excludes exploration, bad debt, depreciation, additional investment in growth areas
and the impact of acquisitions
A further £100m of cost savings are targeted within cost of sales
Controllable operating cost base1
2011 2012
£2.3bn
£2.1bn
2013
£1.9bn
Controllable
cost base
Inflationary
impact

54. Dividend growth
• Strong track record of real dividend growth
• £500m share buy back announced in
February 2013
• All investments benchmarked against
returns to shareholders
• TSR of 36% over past 3 years
0
2
4
6
8
10
12
14
16
18
1999 2001 2003 2005 2007 2009 2011
CAGR = 16.5%
DPS (p)
54

55. Sam Laidlaw
Chief Executive

56. Our five year vision for a leading integrated
energy company with customers at its core
• Growing Midstream
business in North
America and Europe,
with emerging presence
in LNG
• Increase linkage between
our gas supply and
demand positions,
maximising value through
midstream optimisation
• Strong and stable UK
retail business, with
growth in services and
adjacent sectors
• More material energy
retail and services
businesses in North
America
• Sustainable and high-
grade portfolio in the
North Sea
• Significant upstream
position in North America
e.g. unconventional gas
• Efficient power plants in
the UK and North
America, maintaining an
appropriate hedge
56
Upstream Midstream Downstream

57. The next 3-5 years
57
1. Innovate
to drive growth and
service excellence
• Stable profits in BGR, growth in BGS and BGB
• Build capabilities in connected homes and businesses
• Double operating profit in North America downstream through
organic growth and acquisition
• Invest for value across our international portfolio, delivering
annual production in the range 75mmboe to 100mmboe
• Link our positions along the gas value chain, emerging
presence in LNG
• Options to invest in UK power generation if we see value,
with partners to share equity risk
• Drive cost efficiency across the Group
• Stay focused on health, safety and environmental performance
• Deploy capital where we see value
• Return surplus capital to shareholders
2. Integrate
our natural gas business,
linked to our core markets
3. Increase
our returns through
efficiency and continued
capital discipline