Centrica – Senior Leader Development Programme

ELECTIVE MODULE Managing the Business

Understanding Financials Aim

The aim of this elective module is to understand Centrica’s financial statements and how they relate to our day-to-day operations and how they impact on strategic decision making. Learning objectives 1. Understand Centrica’s company financial statements and be able to calculate financial ratios. 2. Understand investment appraisal techniques to optimise shareholder value. 3. Understand the drivers of shareholder value and how these are affected by decisions being made in each of the business units. Practice • Calculate financial ratios. • Use investment appraisal techniques. • Discuss what drives the Centrica share price. • Understand the importance of Centrica’s financial KPIs and how they link to its financial reporting. • Understand how to calculate key financial ratios, and what they measure. Action plan • Evaluate Centrica’s financial results. • Understand how financial results relate to changes in share price and shareholder value. • Apply Centrica’s financial management terminology and interpret key financial information. • Identify where and how to access key information, and the key steps as a leader in setting, managing, and optimising finances throughout the financial year.

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