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CRIUS ENERGY | ANALYST DAY | JANUARY 2018 1

ANALYST

DAY 2018JANUARY 30, 2018


FORWARD-LOOKING STATEMENTS AND NON-IFRS MEASURESFORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") that involve substantial known and unknown risks and uncertainties, most of which are beyond the

control of Crius Energy Trust (the "Trust"), including, without limitation, statements pertaining to the objectives of the Trust (including to grow distributions to unitholders, increase valuation, grow customer base, increase customer

lifetime value and reduce costs), the undervaluation/upside of the Trust, forecasted electricity demand, the value/growth proposition of deregulated energy, the future/success of solar energy, the value/growth proposition of solar

energy, the impact of the restructuring transaction on the Trust, access to capital, scalable platform, diversified portfolio, customer churn, Xfinity relationship in 2018, customer revenues and margins, customer additions and

renewals, customer consumption levels, non-IFRS financial measures (including, EBITDA, Adjusted EBITDA, Distributable Cash and payout ratio), Total Shareholder Returns, revenue, cash availability, embedded margin, gross

margin, selling expenses, general and administrative expenses, public float, current yield, annualized distribution, sufficiency of capital, stability of distributions, market penetration, cost-effective growth strategies, growth forecasts,

risk management, accretiveness of acquisitions/transactions, tax treatment of the Trust, impact of U.S. tax reform, treatment under governmental regulatory regimes and expected opening of energy markets. A statement may be

considered a forward-looking statement when it uses what the Trust knows or expects today to make a statement about the future. Forward-looking statements may be identified by words such as anticipate, assume, believe, could,

expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target, will or other similar expressions. Statements that are not historical facts may be considered forward-looking statements and may involve

estimates, assumptions and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. While these statements are based on current expectations,

forward-looking statements inherently involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, impact of weather, levels of customer

natural gas and electricity consumption, rates of customer additions and renewals, fluctuations in natural gas and electricity prices, changes in regulatory regimes and decisions by regulatory authorities, competition, growth of the

U.S. energy industry, dependence on certain suppliers, financial performance, and other business and economic conditions. Additional information on these factors and other factors that could affect the Trust's operations, financial

results or distribution levels are described in (i) the annual information form of the Trust for the fiscal year ended December 31, 2016 (dated March 16, 2017), and (ii) the management's discussion and analysis of the Trust for the

three and nine months ended September 30, 2017 (dated November 13, 2017), which are available on SEDAR under the Trust's issuer profile at www.sedar.com. No assurance can be given that the expectations set forth in this

presentation will ultimately prove to be accurate and, accordingly, such forward-looking statements should not be unduly relied upon. It is not possible for Management to predict new factors that may emerge from time to time, or to

assess in advance the impact of each such factor on the Trust's business, or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in forward-looking statements.

These forward-looking statements are given only as of the date of this presentation and the Trust does not assume any obligation to update or revise any forward-looking statement to reflect new events or circumstances, except as

may be expressly required by applicable securities laws.

This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities of the Trust, and is being provided to interested parties to assist them in their evaluation of the

Trust.

NON-IFRS FINANCIAL MEASURES

Statements throughout this presentation may make reference to EBITDA, Adjusted EBITDA, Distributable Cash and payout ratio, which are non-IFRS financial measures commonly used by financial analysts in evaluating the

financial performance of companies, including companies in the energy industry. Accordingly, Management believes EBITDA, Adjusted EBITDA, Distributable Cash and payout ratio may be useful metrics for evaluating the Trust's

financial performance, as they are measures that Management uses internally to assess performance, in addition to IFRS measures. As there is no generally accepted method of calculating EBITDA, Adjusted EBITDA,

Distributable Cash and payout ratio, these terms as used herein are not necessarily comparable to similarly titled measures of other companies. EBITDA, Adjusted EBITDA, Distributable Cash and payout ratio have limitations as

analytical tools and should not be considered in isolation from, or as an alternative to, net (loss) income or other data prepared in accordance with IFRS. EBITDA is calculated as earnings before interest, taxes, depreciation and

amortization. Adjusted EBITDA is calculated as EBITDA adjusted to exclude any change in the fair value of derivative instruments, change in fair value of non-controlling interest, change in fair value of warrant liability, unit-based

compensation, goodwill impairment and distributions to non-controlling interest. The items excluded from EBITDA and Adjusted EBITDA are significant in assessing the Trust's operating results and liquidity. See the section

entitled "Reconciliation of Net (Loss) Income and Total Comprehensive (Loss) Income to EBITDA and Adjusted EBITDA" in the management's discussion and analysis of the Trust to which such financial information relates for a

reconciliation of EBITDA and Adjusted EBITDA to net loss and comprehensive loss as calculated under IFRS for the relevant periods, the most directly comparable measure in the Trust's consolidated financial statements. See the

section entitled "Distributable Cash and Payout Ratio" in the management's discussion and analysis of the Trust to which such financial information relates for a reconciliation of Distributable Cash to cash flows provided by (used

in) operating activities as calculated under IFRS, the most directly comparable measure in the Trust's consolidated financial statements. Other financial data has been prepared in accordance with IFRS.

All figures in this presentation are presented in U.S. Dollars and are reflective of information available as of September 30, 2017, unless otherwise noted.

http://www.sedar.com/


Michael Fallquist

Chief Executive Officer

Roop Bhullar

Chief Financial Officer

Pat McCamley

EVP, Corporate Development

Chaitu Parikh

Chief Operating Officer

Christian McArthur

EVP, Energy Supply & Pricing

Rob Cantrell

EVP, Commercial Energy

Kevin McMinn

EVP, Mass Market Energy

Ravi Thuraisingham

EVP, Solar Energy

TODAY’S SPEAKERS


MICHAEL FALLQUISTChief Executive Officer

4


2017: THE YEAR IN REVIEW

2%

Distribution

Increase

Q1

2017

JANUARY

MARCH

Q4 2016

Results

Adjusted

EBITDA:

$13.6 million

RCEs: 982,000

Q2

2017

MARCH

APRIL

2%

Distribution

Increase

MAY

Q1 2017

Results

Adjusted

EBITDA:

$14.5 million

RCEs:

1,003,000

Rise

Broadband

joins the

IEP

2%

Distribution

Increase

JULY

U.S. Gas &

Electric

acquisition

successfully

closes

U.S. Gas &

Electric

acquisition and

C$100 million

bought deal

announced

MAY

Q4

2017

2%

Distribution

Increase

OCTOBER

Q2 2017

Results

Adjusted

EBITDA:

$14.1 million

RCEs:

1,028,000

Q3 2017

Results

Adjusted

EBITDA:

$18.3 million

RCEs:

1,446,000

AUGUST

JULY

Q3

2017

NOVEMBER

CREDO

Mobile

joins the IEP

NOVEMBER

U.S. Gas &

Electric wins

Leadership &

Integrity award

SEPTEMBER

Received

$8.0M

forgivable loan

from CT DECD

as incentive to

expand

operations in

Connecticut

JANUARY MARCH

Crius and Comcast

extend exclusive

partnership thru 2022

Crius and Comcast

partner in the

Integrated Energy

Platform (IEP)

Verengo Solar acquisition

successfully closes


OUR HISTORY

States

Products

Channels

Segments

2009

Launches Viridian

Energy

CT

Network

Marketing

Residential

2016

Acquires SunEdison

U.S. direct

residential solar

business

C$72.5M equity

offering plus equity

exchange for 100%

LLC ownership

2011

Partners with

Cincinnati Bell

+ Strategic

Partnerships

+ IL, NY and OH

2013

Partners with

SolarCity

+ Indiana and

Virginia

2014

Acquires Superior

Plus Energy

Services

Acquires HOP

Energy

+ California

2012

Partners with

FairPoint

Communications

Acquires Public

Power

C$100M IPO to

purchase 27% of

Crius Energy LLC

+ DC, DE, ME

and NH

Acquires USG&E

Acquires

Verengo Solar

C$125.5M equity

offering to fund the

USG&E acquisition

2017

+ Michigan and

Kentucky

+ Direct-to-Consumer

2010

Enters into credit

facility with

Macquarie Energy

+ MA, MD, NJ

and PA

+ Small

Commercial

Partners with

Comcast

Acquires TriEagle

Energy

C$46.1M equity

raise to increase

Crius Energy LLC

ownership to 43%

2015

+ Rhode Island

and Texas

+ Broker Network and

Online Sales

+ Large Commercial and

Municipal Aggregations


146%

99%

58% 58% 61%

2013 2014 2015 2016 LTM

$103

$129

$164 $159

$0

$50

$100

$150

$200

$250

2013 2014 2015 2016 LTM

2013 2014 2015 2016 LTM

$507

$601

$267$247

$279$300

$472

2013 2014 2015 2016 LTM

$32$38

$53

$61

2013 2014 2015 2016 LTM

$27$29

$35

$39

2013 2014 2015 2016 LTM

KEY METRICS: FINANCIALSADJUSTED EBITDAREVENUE

PAYOUT RATIO

DISTRIBUTABLE CASH(in millions) (in millions) (in millions)

GROSS MARGIN(in millions)

EMBEDDED MARGIN(in millions)

Pro-Forma USG&E results for Q4 2016, Q1 2017 and Q2 2017 (excluding synergies)

$686$744

$1,004

Q3 2017

*LTM represents the last twelve months ending September 30, 2017.

$91$54

$229


• 250% increase in customer base through consistent organic growth and accretive acquisitions,

supported by improvements in attrition

• Approximately 75% of gross customer adds from organic sales channels

KEY METRICS: CUSTOMER GROWTH AND ATTRITION

265 375 389

525 55

202 75

350

363 320

577

464

875

615 569

819

982

1,446

2013 2014 2015 2016 YTD Q3 2017Acquisition Growth Total Cumulative Customer Count

NEW AND CUMULATIVE CUSTOMER GROWTH

(RCEs in 000s)

AVERAGE MONTHLY ATTRITION

3.3%

3.9%

3.2%

2.4%

2.8%

2013 2014 2015 2016 LTM Q3 2017Organic

Growth

(gross

adds)

(gross adds)


AN AWARD-WINNING FAMILY OF BRANDS

CORPORATE SOCIAL

RESPONSIBILITY4,360,159,531POUNDS OF CO2 EMISSIONS

AVOIDED SINCE 2016

423,498 PASSENGER VEHICLES OFF THE ROAD FOR A YEAR

51,255,268TREE SEEDLINGS FOR TEN YEARS

USG&E ranked by Inc. magazine in the Top

10 fastest growing energy companies

USG&E receives key to the City of Doral,

Florida

Crius creates market for affordable,

responsible energy; helps consumers avoid

46 Million pounds of harmful CO2 through its

Viridian Energy brand

2009

2010

Verengo Solar completes its 1,000th

residential solar installation

USG&E ranked by Inc. magazine as the 3rd

fastest growing private energy marketer

USG&E co-founds ACCES, a consumer

advocacy organization focused on energy

choice

2011

Crius ranks #50 on Direct Selling News

Global 100 list through its Viridian Energy

brand

2012

Verengo Solar is ranked #69 of Top

100 U.S. Job Creators by Hire Power

Awards; earns Angie’s List Super

Service Award

USG&E receives “Good to Great” award

from Greater Miami Chamber of

Commerce

2013

CEO Michael Fallquist named Ernst &

Young Entrepreneur Of The Year® -

Cleantech category, New York

Crius wins Ethos Rising Star Award from

Direct Selling News for its Viridian Energy

brand

USG&E recognized as a Top Workplace by

the South Florida Business Journal and

Florida Trend Magazine

USG&E receives Bronze American Business

Award for “Company of the Year”

Verengo Solar marks 10,000th residential

solar install

2014

Crius ranks #45 on Direct Selling News Global

100 list through its Viridian Energy brand

Crius named Energy Supplier of the Year by

the Energy Marketing Conference

Careerbuilder names Verengo Top Workplace in

Arizona

Verengo ranked in the Top 5 U.S. residential solar

installers by GTM/SEIA

2015

Crius ranked #1 in Customer Satisfaction in

Massachusetts by J.D. Power through its

Viridian Energy brand; USG&E ranked #2 in

Massachusetts by J.D. Power

2015

Crius awarded $10 Million incentive package from

the State of Connecticut

USG&E ranked #1 in Customer Satisfaction by

J.D. Power in Maryland and New Jersey

USG&E brands rank in the Top 3 for Customer

Satisfaction by J.D. Power in CT, MA and NY

Crius ranked #6 in Texas by J.D. Power through

its TriEagle Energy brand

2017

Crius commercial breaks the Energy Research

Top 10 in Broker Satisfaction through TriEagle

USG&E receives the 2016 Energy Marketing

Conferences Leadership and Integrity Award

2013

Source: www.epa.gov/energy/greenhouse-gas-equivalencies-calculator


J.D. Power in New Jersey


J.D. Power in Connecticut

2016

9


PUBLIC MARKET VALUATION BENCHMARKS

(1) Company filings, CapitalIQ and Bloomberg as at January 15, 2018 .

(2) Select US Utilities and Select US IPP’s include companies with energy retail operations

Note: Energy Retailers comprised of Just Energy and Spark Energy; Canadian Home / Energy Services comprised of Enercare, Park land, Superior Plus ; Canadian Utilities comprised of Algonquin, AltaGas, Canadian Utilities, Emera, Enbridge, Fortis, Hydro One, TransCanada; US Utilities

comprised of American Electric Power, CenterPoint Energy, Dominion Resources, Exelon, FirstEnergy, NextEra Energy, South Jersey, The Southern Company; Canadian Contracted IPP’s comprised of Boralex, Brookfield Renewable Partners, Innergex, Northland Power, TransAlta

Renewables; US IPP’s comprised of Calpine, Dynegy, NRG Energy; Integrated Solar comprised of Canadian Solar, First Solar, SunPower Corporation

EV / 2018E EBITDA(1)

Dividend Yield(1)

Crius

Average

Crius

Average

(2) (2)

(2) (2)


9.2%9.6%

6.4%

2.7%

1.8%2.2%

4.4%

1.4%

2.1%

3.3%

0.8%

1.5%

0.8%

5.5%

4.1% 4.3%

Cri

us

Ju

st

En

erg

y

Sp

ark

En

erg

y

S&

P T

SX

S&

P 5

00

TS

X S

ma

ll-C

ap

TS

X D

ivid

en

dA

risto

cra

ts

Con

su

me

r

En

erg

y

Fin

an

cia

ls

Hea

lth

Care

Indu

str

ial

Mate

rials

RE

IT

Tele

co

m

Utilit

ies

CRIUS DIVIDEND YIELD

(1) Bloomberg as at January 15, 2018

(2) TSX Dividend Aristocrats measures the performance of companies included in the S&P Canada BMI that have followed a policy of consistently increasing dividends every year for at least five years

(2)

S&P TSX Sub-Indexes

CRIUS DIVIDEND YIELD VS. INDEXES(1)


DISTRIBUTION UP 8.2% IN 2017; UNIT PRICE UP JUST 11.6% YOY

DISTRIBUTION PER UNIT KWH.UN

$0.175$0.179

$0.182$0.186

$0.190$0.193

$0.197$0.201

$0.205$0.209

Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

(quarterly distribution, C$ per unit) (unit price in C$ per unit)


CRIUS OBJECTIVES

• Crius has delivered a Total Shareholder Return of more than 25% since January 1, 2016 through distribution

increases and unit price appreciation

• Given relative valuation of Crius versus our peer group and strength of our business, management are focused on

improving unit price appreciation over the next few years while remaining committed to our distributions

Customer Growth

INCREASE DISTRIBUTABLE CASH

MARGIN GROWTH

Increase Customer

Lifetime Value

Achieve USG&E

Synergies

REDUCE COSTS

Continuous Cost

Optimization


Portfolio Optimization Mergers & Acquisitions Customer EngagementResidential Integrated

Energy

Commercial Integrated

Energy

Description

• Segment new and existing

customers to provide

differentiated product offers

and service levels

• Acquire U.S. and

international energy

retailers

• Engage customer

continuously throughout life

of relationship

• Develop residential

integrated energy product

strategy

• Develop commercial


strategy

Business

Drivers

• Increase margin, increase

retention

• Reduce risk profile (scale,

diversity), lower costs

(operating leverage),

expand sales channels, new

products or geographies

• Increase retention, enable

cross-sell, customer

acquisition, reduce cost-to-

serve

• Improve customer value

proposition, increase

retention, increase margin,

enhance sales

• Improve customer value

proposition, increase

retention, increase margin,

enhance sales

Activities

• Customer segmentation to

calculate individual

customer lifetime value

• Individualized customer

offers to meet minimum

margin requirements

• Customer service, renewal

and retention segmented on

CLV

• Customer book acquisitions

• Strategic business

acquisitions

• USG&E Integration

• Identify technologies /

strategies to facilitate

ongoing customer

interaction

• Integrate electricity and

natural gas products with

adjacent energy

management products (e.g.

demand response)

• Priority to integrate solar

and retail electricity

• Integrate electricity and

natural gas products with

adjacent energy products

(e.g. demand response,

energy efficiency)

KEY STRATEGIC PRIORITIES TO ACHIEVE MARGIN GROWTH

AND REDUCE COST


CAPITAL ALLOCATION

Uses of Capital Comments

Growth Initiatives Investments in organic customer growth and accretive

acquisitions

Unit Purchases Board has authorized the repurchase of up to 4.4M units

via Normal Course Issuer Bid

Debt Reduction Accelerate repayment of debt where prudent and

accretive to unitholders

Distribution Growth Board has authorized an annualized distribution of

C$0.84 per unit for 2018

1

2

3

4

• Reprioritization of our uses of cash flow with a commitment to maintaining our current distribution levels


ROOP BHULLAR Chief Financial Officer

16


Payout RatioBaseline

Distribution

Distributable Cash Flow

Growth Initiatives

Debt Reduction

Unit Repurchases

Distribution Increases

Baseline distribution hedged for next three years

to December 2020 at floor of C$1.25 and cap of

C$1.40 per US$1.00

Baseline distribution of C$0.8368/unit, or

~C$48M/year, represents a return of ~C$143M in

cash to unitholders over a 3 year period

or ~27% of’ current market cap

Provides flexibility to apply the excess

cashflows we generate in a way that

maximizes unitholder value

Payout ratio provides buffer to allow for

variations, one-time items, working capital

investment and other requirements

CAPITAL ALLOCATIONReprioritization of capital allocation to provide more flexibility in how capital return growth is provided to

unitholders, while maintaining commitment to current baseline distribution.

Discretionary Cash Flow


DEBT• Capital structure remains conservative following the increase in leverage as part of the USG&E acquisition

• As of Q3 2017 ~$80M of net debt representing <1x net debt / Adj. EBTIDA on a pro-forma basis

• Interest coverage of ~5x, on a pro-forma basis, using Adj. EBITDA

• Further debt capacity remains, management comfortable with up to 2x leverage

MACQUARIE CREDIT FACILITY

($56M, Q3 2017)

USG&E SELLERS NOTES

($43M, Q3 2017)

CT DECD LOAN

($6M, Q3 2017)

• Received from Connecticut Department

of Economic Development & Community

Development

• Part of an incentive package for

corporate headquarters lease

• Term of up to 10 years

• 2.0% interest rate

• Repayment of principal deferred for first

four years

• Debt forgiveness or early redemption

based on CT headcount growth targets

• Notional value of loan received of $8.0M

reduced by $1.7M due to accounting

treatment of government grants

• 8-year non-amortizing notes

• 9.5% interest rate

• Initial face value of $47.5M reduced

by expected NWC adjustment

• Ability to partially apply

indemnification claims under the

acquisition agreements against

amounts owing

• Crius facility: $250M limit, $60M working

capital sub-limit, 5.5% plus LIBOR and

volumetric energy fees currently

averaging ~$8.50/RCE per year,

maturity date of Jan 2019

• USG&E facility: $85M limit, 5.5% plus

LIBOR and volumetric energy fees

currently averaging ~$12.50/RCE per

year, maturity date of Dec 2018

• Consolidating the two facilities with

target date of Q1 2018

• Expect to generate synergies via

improved trading terms and improved

pricing


$119.1

$159.3 $154.3 $160.2

$227.3

GROSS MARGIN ($M)

GROSS MARGIN

• Unit margins trended lower from 2015 to 2017 following the

acquisition of TriEagle Energy primarily as a result of the changing

sales channel mix as the portfolio now has a higher proportion of

lower-margin commercial / municipal aggregation customers

• Improved margin profile post-USG&E acquisition due to the

higher-margin, residential and small commercial customer base of

USG&E, which historically generated margins of over $200/RCE

per year

• Management expect the past declining margin trend to moderate

and for margins to remain near current levels, due to:

o Higher margin residential-focused USG&E channels

o Increased focus on small commercial segment

o Strategic initiatives focused on margin enhancement

including portfolio optimization and increased customer

engagement

Management expect a reversal of channel-mix-driven declining unit margin trends, due to focus on

higher-margin residential and commercial customers and strategic initiatives.

$201

$229

$171 $158

$178

GROSS MARGIN ($/RCE, PER YEAR)

FY 2014 FY 2015 FY 2016 LTM Q3 2017* PF LTM 2017**

*LTM figures represent ‘as reported’ i.e., Q4 2016 through Q2 2017 Crius Energy-only and Q3 2017 including USG&E results.

** Pro-Forma figures represent Crius Energy and USG&E unaudited results, excluding synergies.FY 2014 FY 2015 FY 2016 LTM Q3 2017* PF LTM 2017**


SG&A EXPENSES

COST TO SERVE(Fixed G&A* per RCE)

COST TO ACQUIRE(Upfront selling expenses* per RCE)

Positive downward trends

continue and will further benefit from USG&E cost-synergies

Continue to drive fixed G&A / RCE lower

• Focus on cost-control over last several

years, including various restructurings

and workforce rationalizations

• Target USG&E cost synergies expected

to result in savings of $8/RCE

• Operating leverage as fixed costs are

spread over a larger customer base

Upfront CTA trends driven by channel mix

• Downward trend from 2014 to 2017

driven by channel mix for new sales, with

strong growth in commercial and

municipal aggregations, which typically

have minimal upfront CTA

• Pro-forma USG&E blended CTA

increases to ~$40/RCE, due to higher-

upfront CTA channels, such as door-to-

door and telemarketing

$72

$85

$56$51 $50

FY 2014 FY 2015 FY 2016 LTM Q32017

PF LTMQ3 2017

$46

$34

$21

$16

$38

FY 2014 FY 2015 FY 2016 LTM Q32017

PF LTMQ3 2017

Note: * Cost to serve calculated as Fixed G&A (total G&A less variable G&A items, namely, POR fees / bad debt, GRT & other taxes and assessments, per average RCE, deregulated energy only.

** Cost to acquire (CTA) calculated as upfront selling costs per average RCE, deregulated energy only.

Upfront CTA remains low, despite

uptick in pro-forma CTA due to USG&E higher-margin residential sales channels

$42

USG&E

synergies


U.S. TAX REFORM

KEY U.S. CORPORATE TAX LAW CHANGES POTENTIAL IMPLICATIONS FOR CRIUS

• The new law reduces the maximum corporate tax rate of 35% and

replaces it with a flat rate of 21%

• Benefits Crius Distributable Cash, however such benefit is mitigated because of existing tax

shield of cross-border intercompany debt and limitations on interest deductibility (discussed

below)

• Lower federal corporate tax rate reduces federal tax benefit of state tax deduction

• Lower federal corporate tax rate reduces the value of the ~$52M Net Operating Losses (NOLs)

acquired from Verengo from ~$18M to ~$11M

• The deduction for net interest expense will be limited to 30% of an

amount that approximates EBITDA and, beginning in 2022, EBIT

• Reduces the amount of interest that Crius’ U.S. entities can deduct (including intercompany

interest). Based on Management’s preliminary estimates, this is expected to have an immediate

negative impact in 2018

• It is uncertain if states are going to follow the same federal tax treatment

• May reduce the attractiveness of debt financed acquisitions

• Entitled to immediately deduct 100% of the cost of depreciable

tangible assets, including new or used assets acquired in certain

business combinations, for the next 5 years

• Limited impact to Crius as current business and most acquisition opportunities are not capital

asset-intensive

• Investment in capital intensive growth initiatives or asset (vs stock) acquisitions may be more tax

efficient

• It is uncertain if states are going to follow the same federal tax treatment

• A minimum tax imposed on U.S. companies having certain deductible

‘base erosion payments’ made to related foreign companies, such as

interest expense, equal to the excess of 10% of the taxpayer’s

“modified taxable income” (taxable income plus certain ‘base erosion

payments’) over its regular U.S. tax liability

• Theoretically could result in higher U.S. taxes, but based on Management’s preliminary

evaluation and current projections, no material impact expected in the near-term

Note: Based on Managements preliminary understanding of the recent U.S. tax reform changes and is subject to change as Management and its tax advisors continue to evaluate the rule changes and their application to Crius Energy.

Key impacts of recent U.S. tax reform changes based on Management’s preliminary review - benefit of

lower rate mitigated by interest deductibility restriction and reduced value of Verengo NOLs.


No change to initially

estimated underlying

synergies

USG&E SYNERGIES UPDATE

ESTIMATED AFTER-TAX SYNERGIES TO DISTRIBUTABLE

CASH OF $55M-$60M – AS ANNOUNCED IN NOVEMBER 2017

Midpoint

Synergies

G&A synergies $11.0

Gross margin synergies $2.0

Financing cost synergies $2.5

$15.5

Tax -$6.2

Tax effected synergies $9.3

Tax benefit - debt pushdown $3.9

After-tax synergies $13.2

3-year after-tax synergies $39.6

Tax benefit - Verengo NOLs $18.2

$57.8

Post tax-

reform

$11.0

$2.0

$2.5

$15.5

-$4.3

$11.2

$-

$11.2

$33.5

$10.9

$44.4

$10M-$12M cost-synergies through organizational

restructuring, technology systems transition to single platform

and vendor consolidation

$2M synergies to gross margin from application of Crius energy

procurement / risk management capabilities to USG&E portfolio

and improved operational / trading terms from renegotiated

consolidated credit facility (~$1.50/RCE per year synergies)

One-time cash tax savings of $18M in NOLs of Verengo to

offset taxable income over the next 2-3 years

UPDATED TO $41M-$47M FOR

EST. IMPACT OF US TAX REFORM

Benefit from lower

effective blended rate

from ~40% to ~28%

Interest deductibility

restriction limits benefit

of intercompany loans

Lower tax rate reduces

tax benefit of NOLs

No change to underlying synergy targets, however recent U.S. tax reform reduces target 3-year range.

$2M-$3M reductions in financing costs from improved pricing

on renegotiated consolidated credit facility

$4M in cash tax savings from additional tax shield from push-

down of equity proceeds from 2017 USG&E equity offering as

intercompany debt


USG&E INTEGRATION UPDATEKey focus of management in 2018 is integration and achievement of target synergies.

Q4 2017

Q1 – Q2 2018

Q2 – Q3 2018

Q4 2017 – Q4 2018

Q1 2018 – Q4 2018

HR & GL System Consolidation

Phase 1: IT System Consolidation

Call Center Consolidation

IT & Ops Vendor

Consolidation

COST REDUCTION INITIATIVES

$2 $2 $2 $2$3

$11

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 TOTAL

G&A SYNERGIES TIMELINE(ACHIEVEMENT OF RUN-RATE ANNUAL SYNERGIES, $M)

Phase 2: IT

System

Consolidation

Target $10M - $12M run-rate

G&A synergies, made up of:

• Organizational restructuring

and workforce rationalization

• Transition of technology

systems onto single platform

• Vendor consolidation

Tracking 10% ahead of initially

planned $2M annualized run-rate

cost synergies as of year-end

2017


$7 $6

$3

$1 $2

$19

$27

$21

$4 $5

$2 $1 $2

$14

Billing Customer Care Fulfillment Enrollments Overhead Total

Crius USG&E Current Combined(Pre-Integration)

Future Combined(Post-Integration)

Crius USG&E

USG&E INTEGRATION UPDATE

Current Combined Future State

Consolidation of back-office functions results in material reductions in direct cost-to-serve per

customer, which represents a major component of overall target G&A synergies.

• Back-office integration results in ~32% reduction in direct cost-to-serve

• Direct cost-to-serve savings represent ~50% the $10M-$12M G&A synergy target

• Approximately 60% of the cost-to-serve savings generated from billing and fulfillment consolidation

Billing Customer

Care

Fulfillment Enrollments Overhead

Total

32%

reduction

in direct

CTS


Insiders Non-Insiders

UNITHOLDER LOCK-UPS

• Lock-up agreements in place primarily with

founding LLC holders and certain USG&E sellers

to ensure orderly trading of units following

transactions in 2016 and 2017

• Upon the closing of the USG&E acquisition,

10.4M units were subject to lock-up (representing

18% of units outstanding)

• As of January 6, 2018 only 3.2M units remain

subject to lock-up (representing 6% of units

outstanding, with only 2% held by non-insiders)

• Final tranche expires on June 24, 2018

13%

2%

7%

4%

2%

Over 6 month period from closing of USG&E acquisition, 7.2M units, representing 13% or ~C$65M of

KWH units, became freely-tradeable with minimal activity and/or impact to the unit price.

* Insiders comprised of >10% holders and Crius Energy CEO

10%

8%

10%

8%

10%

8%

10%

8%

13%

4%

7%

4% 4% 4%4%4% 4%

2% 2%2% 2% 2%

7/17 8/17 9/17 10/17 11/17 12/17 1/18 2/18 3/18 4/18 5/18 6/18

10

8

6

4

2 4% 4%

2% 2%

Units (

M)

LOCK-UP SUMMARY

KWH.UN unit priceC$9

C$8

C$10


CHAITU PARIKHChief Operating Officer

26


• Energy-Efficiency: Ample supply and low demand

create opportunities for suppliers with products and

services focused on energy-efficiency

• Residential Customer Engagement: Global non-

industry brands poised to enter sector. This is

prompting many established retailers to evolve more

rapidly by using technologies that better engage

customers and protect valuable relationships

• Commercial Sector Competition: Fierce competition

in large commercial and industrial segment weeding

out weaker players / creating barriers to entry

• Grassroots Support for Choice: Widespread

support for expanded energy choice in Colorado and

Virginia may yield another Nevada. Meanwhile,

dockets to consider consolidated supplier billing may

ultimately shift the paradigm in MD & PA

DEREGULATED ENERGY: MARKET UPDATE

U.S. INDUSTRY TRENDS

Data: DNV GL. Retail Energy Outlook, April 2016

WHILE OTHER RETAILERS SLOWED,

CRIUS CONTINUED RAPID GROWTH


2013 2014 2015 2016 LTM 2013 2014 2015 2016 LTM

FUNDAMENTALLY STRONG DEREGULATED ENERGY BUSINESS

CUSTOMERS*(Deregulated Energy Only)ADJUSTED EBITDA

(Deregulated Energy Only)

ANNUAL ORGANIC CUSTOMER ADDS

363,000

265,000

375,000390,000

*A Residential Customer Equivalent or RCE is a unit of measure used by the energy industry to denote the typical annual commodity consumption by a single-family residential customer.

A single RCE represents 100 MMBtu of natural gas or 10 MWh of electricity. Pro-forma USG&E results for Q4 2016, Q1 2017 and Q2 2017.

2013 2014 2015 2016 LTM

615,000569,000

819,000

982,000

1,446,000

$31.7

525,000

$35.1

$55.8

$65.5

$95.0

Q3 2017 YTD Q3

2017

(Deregulated Energy Only)


COMMERCIALENERGY

BUSINESS

29


COMMERCIAL ENERGY

Customer Type

• Focus on small commercial and municipal aggregations in 2018 as large commercial margins are

expected to be negatively impacted by competitive pressures

Competitive

Advantages

Channels

• Awarded the Mass CEA contract,

the largest community aggregation

program in Massachusetts (2nd

largest in the U.S.)

• Launched proprietary, broker portal

in June 2017 focused on small

commercial customer segment

• Recognized with a Top 10 ranking

by independent brokers for ease of

doing business / satisfaction

Commercial

2017 Accomplishments• Small

Commercial

• Municipal

Aggregations

• Large

Commercial

• Telemarketing• Aggregators &

Consultants• Brokers

• Proprietary, web-

based broker

portal

• 5-year track

record of

success with

Muni Aggs

• More than 800

broker

relationships


2018 SALES PRIORITIES: SMALL COMMERCIAL

Commercial Customers

Complexity

Competition

RiskMa

rgin

Customer Size / Usage

• 71% increase in active partners

• 123% increase in RCEs

• 152% increase in total volumes

• 122% increase in gross margin

• 59% increase in number of

contracts

• 40% increase in average

customer size

• Focus on small commercial customer segment will result in higher margins

• Launch of online broker portal in mid 2016 was a catalyst for success in the small commercial

segment

Small Commercial

2017 Accomplishments


2018 SALES PRIORITIES: MUNICIPAL AGGREGATIONS

SUPPLIER

LOCAL

GRID

• 174% increase in RCEs

• 183% increase in volumes served

• 217% increase in booked gross

margin

• Executed deals with 3 new

channel partners

• Large volume opportunities with expected margins greater than large commercial segment

• Strong track record of success – over 80+ communities since 2013 – resulted in record growth in

FY 2017

• Largest community electricity aggregation program in Massachusetts, second

largest in the country

• 23 municipalities participated

• 3-year term starting in January 2018

Municipal Aggregations

2017 AccomplishmentsAcushnet

Attleboro

Carver

Dartmouth

Dedham

Dighton

Douglas

Dracut

Fairhaven

Fall River

Freetown

Marion

Mattapoisett

New Bedford

Northbridge

Norton

Plainville

Rehoboth

Seekonk

Somerset

Swansea

Westford

Westport


COMMERCIAL — KEY INITIATIVES

Relocated

commercial

customer service

function to Texas

to better service

customers

and improve

retention

Customer Service

& Retention

New Product

Development

Expand product

portfolio beyond

core electricity

and natural gas

products

Pricing & Product

Structuring

Dedicated pricing

& supply team

focused on

commercial

customer

segment


MASS MARKETENERGY

BUSINESS

34


MASS MARKET ENERGY

Customer Type

• Mass market growth is a priority in 2018 to enhance portfolio margins

• Expansion of U.S. Gas & Electric sales channels and exclusive partnership contributions (Comcast

relaunch, CREDO Mobile launch) will enhance sales performance versus 2017

• Residential

Competitive

Advantages

• Full suite of

sales channels

and family of

brands strategy

• Access to

millions of

“warm”

customers

• Top rankings

by J.D. Power

for customer

satisfaction

Channels

• Exclusive Partnerships

• Door-To-Door• Online / Digital Marketing

• Telemarketing

• Expanded direct-to-consumer sales

channels through U.S. Gas &

Electric acquisition

• Entered into 5-year extension of

exclusive partnership with Comcast

• Launched Integrated Energy

Platform strategy and added 2

partners

• Received Integrity and Leadership

Award

Mass Market

2017 Accomplishments


2018 SALES PRIORITIES: DOOR-TO-DOOR

• Established a presence in 8

states

• 3 more markets going live in Q1,

including TX, plus 4 more

markets in Q3

• Targeting affluent

neighborhoods for optimal

cross-sell opportunity

DOOR-TO-DOOR2017 Accomplishments:

D2D Program live as of Q3 2017SALES AGENTS

• BACKGROUND CHECKS

• COMPLIANCE AND SALES TRAINING

• RESULTS ARE TRACKED BY REP

• REGULAR FIELD VISITS BY MANAGER

PRODUCTS SOLD

• PROMOTE CROSS-SELLING

• CUSTOM-DESIGNED FOR TARGETS

• ATTRACTIVE TO FIRST-TIME SWITCHERS

CONSUMER REACTION

• CRIUS MAKES WELCOME CALLS

• AVERAGE POST-SALE FEEDBACK

SCORE IS 4.65 / 5

• REGULAR REPORTING OF ANY ISSUES

SALES TACTICS

• TARGETED APPROACH (NIELSEN DATA)

• CONSULTATIVE, TECHNOLOGY-ENABLED

APPROACH (iPADS ETC.)

• TPV CONFIRMATIONS


MASS MARKET - KEY INITIATIVES

• Differentiated products and

service levels based on

customer lifetime value

Customer Segmentation

• Increase frequency

and effectiveness

of customer interactions

Customer Engagement

• Use third party data (e.g. Neilsen)

to target high value customers

and energy consumption data to

improve cross-selling (e.g. solar)

Data Analytics

• Expand product portfolio

beyond core electricity &

natural gas products

• Integrate electricity & solar

New Product

Development


MERGERS &

ACQUISITIONS

38


MERGERS & ACQUISITIONS

• Completed 11 acquisitions in the retail energy and solar industries over past 5 years with all

acquisitions (except U.S. Gas & Electric) funded from available cash

In addition to the above transactions, Crius Energy acquired customer portfolios from PNE in February 2014, HOP Energy in June 2014, Gulf Energy in June 2015, and Big Sky Gas in July 2017.

All retail energy brands are expected to be consolidated

onto one common technology platform by the end of 2018


MARKET CONSOLIDATION

• Merger & Acquisition activity declined in 2017 following a very active period of consolidation, however

“weather bomb” in late Q4 & early Q1 2018 may create acquisition opportunities

• Focus on acquisitions that are accretive to our current market position

• Increase diversification and/or enable / enhance growth in customer segment, geography (e.g. international), channels or products


PAT MCCAMLEYEVP, Corporate Development

41


EXCLUSIVE PARTNERSHIP – BUSINESS CASE

FOR CRIUS: FOR PARTNER:

• Fits with “own the home” strategy to

expand products beyond core offerings

• Reduced churn and increased customer

satisfaction due to bundling

• Opportunity to attract new customers

• Material growth in revenue stream

• Access to millions of quality potential

customers through a “warm” relationship

• Low upfront cost-to-acquire, plus revenue

share based on customer usage

• Low customer attrition rates

• Access to first-time “switchers”

• Reduced cost-to-serve / increased

operational efficiency


EXCLUSIVE PARTNERSHIPS

We provide “white label” energy products to strategic partners who sell under their brand name

to their customers through their sales channels. Crius owns all energy customer relationships.

• Electricity

• Natural Gas

• Solar

• Energy

Operations

• 100% ownership

• Electricity

• Natural Gas

• Energy

Operations

CUSTOMERS

COMMISSIONS

• Licensed to provide

energy service by

PUCO (OH)

• Utility-tested with

Duke Energy

• Acquires customers for CBE

by cross-selling to Cincinnati

Bell customer base under

CBE name

• Cincinnati Bell licenses use of

name and trademarks to CBE

• 100%

ownership

• Licensed to provide energy

service in CA, CT, DC, DE, GA,

IL, IN, MA, MD, MI, NH, NJ, NY,

OH, PA, TX

• Utility-tested in CA, CT, IL, IN,

MA, MD, NH, NJ, NY, OH, PA, TX

• Acquires customers for ER by

cross-selling to IEP Partner

customer base under IEP Partner

Rewards name

• IEP Partner licenses use of name

and trademarks to Crius

• iControl Connected

Home

• Smart Thermostat

• EcoSaver

Franchise

Partner

DIRECT PARTNER MODEL

(formerly FairPoint

Communications)

INTEGRATED ENERGY PLATFORM MODEL

(for direct energy sales)

CUSTOMERS

COMMISSIONS

Evolution of Partner strategy from

Direct to Integrated Energy

Platform model to:

• Increase speed to market and

reduce cost to onboard

• Enhance customer value with


suite

• Increase operational efficiency

• Reduce risk through upfront

set-up fee structure


PARTNERSHIP ROLES AND RESPONSIBILITIES

RESPONSIBILITIES Crius Comcast IEP Partner

Marketing | Retail Supply X X

Marketing | Solar X X

Thermostat HW cost/install X X

iControl Connected Home

(EcoSaver)

X X

Integrated Energy Platform X

Sales/enroll | Retail Supply X

Sales | Solar X

Design/install | Solar X

Energy Management X

Demand Response X


ENERGY REWARDS CUSTOMER EXPERIENCE


PARTNERSHIP BENEFITS: HIGH-POTENTIAL CUSTOMERS

• Integrated Energy customers are over-indexed in all defined categories with Single Family Homes representing 1.5x average user profile

• Usage benchmarks are higher than current Crius Energy customer portfolio comps

HIGH VALUE CUSTOMERS

60%+ from top 5 customer segments(1)2x

WEALTHIER

HOME TECHNOLOGY ENTHUSIAST

65% of home technology enthusiasts expressed interest to switch providers, 2x the general population265%

1) Service provider partner energy customer profile with 15 total company wide segments. Their top segments are the most valuable customers with energy strengthening the relationship

2) Shelton Group Energy Pulse Survey, 2015

Consumers who have a security service are 7x more likely to purchase an integrated energy product

(e.g., solar)7x

SECURITY

45% of customers with >$100k annual income$100k


CURRENT PARTNERS

PartnerPartnership

Start Date

Total

Customer

Base

Total StatesPartnership

Type

June 2011 ~500,000 1 Direct

June 2012; 2017

expansion from

acquisition

~1,000,000 6 Direct

March 2015 ~29,000,000 11 Direct

June 2017 ~200,000 3 IEP

October 2017 ~3,000,000 19 IEP

• Starting in 2018, Management expect to onboard 1-2 new IEP partners annually


COMCAST PARTNERSHIP UPDATE

Massachusetts and New

Hampshire licenses

secured

Executed a 3-year

exclusive agreement for

natural gas and electricity

California supplier license

secured

2015 2016 2017

January

PA and IL launch; first

customer enrolled in PA

May

Retail; Digital

SALES

CHANNELS

NJ market entry

August

CA market entry

October

Outbound Telesales

Lead Capture

Texas market entry

February

CT market entry

Delaware and Maryland

licenses secured

June

MA market entry

December

Announce 5-year extension to

exclusive agreement for natural

gas and electricity

Announce 5-year agreement to

offer Integrated Energy Platform

March

Pennsylvania supplier

licenses secured

March

Connecticut supplier

license secured

September

D.C. supplier licenses

secured; 10,000th customer

enrollment

December

Michigan supplier

license secured

March

April

Aug

2016

Georgia

license

secured

August

Xfinity Home integration

2018

Relaunch of direct sales effort

April

Apr

2018 Multi-Channel Relaunch


RAVI THURAISINGHAMEVP, Solar Energy


• Consistent growth expected in residential

solar market in 2018 and beyond

• Tariffs on modules (Section 201 case)

already absorbed into pricing increases

• Residential market able to absorb price

increases better than utility scale as other

costs higher on a $/W basis

• Tax equity investors expected to increase

focus on residential market as economics in

utility scale projects in light of tariffs will limit

opportunities

SOLAR ENERGY: MARKET UPDATE

U.S. INDUSTRY TRENDS

Continued growth forecasted in residential segment which aligns with Crius’ solar strategy.


SOLAR ENERGY – OVERVIEW & COMPETITIVE ADVANTAGES

Direct

Marketing

Indirect

Sales

Partner

Sales

Crius Solar

Origination

Crius Solar Origination

generates solar leads and

sales through multiple

channels

Financing

Crius Solar Origination

has relationships with

multiple financing

partners

Crius Solar

Fulfillment

Crius Solar Origination pays Crius

Solar Fulfillment to install projects

New

Home

Retrofit

Home builders pay

Crius Solar Fulfillment

to install projects

Other solar companies pay Crius

Solar Fulfillment to install projects

Verengo

Solar

3rd Party

Install

Partners

Crius Solar Fulfillment uses in-

house installation capacity

(Verengo) or installation partners

TIGER - Proprietary Solar Platform

• TIGER, our proprietary technology

platform, manages a customer from

prospect through to installation and

enables third party users

• In-house installation capability in

largest solar market in the U.S.

• “Broker” strategy for financing

products allows us to maximize

customer value proposition

• Future integration with retail energy

operations reduces cost-to-acquire

Competitive Advantages

• Origination and Fulfillment are each structured to be profitable on a stand-alone basis


SOLAR – RECAP OF PROGRESS MADE IN 2017

• Completion of Best-In-Class Solar Platform (TIGER)

• Expanded from one 3rd party PPA to multiple loan, PPA, and cash products in 6 states

• Launched home energy bundle including solar, retail energy, thermostat, and customer engagement reporting

• Established Crius Solar Sales Organization

• Successfully onboarded multiple 3rd party sales companies as originators

• Piloted multiple lead generation partners including internal energy cross-promotions

• Launched first Crius Direct Sales organization from ground-up at end of 2017 in CA

• Launch of Solar Fulfillment Business

• Acquired and fully integrated experienced California installer (Verengo) into Crius Solar

• Obtained contractor licensing and launched installation capabilities in 6 different markets

• Successfully onboarded multiple 3rd party installation partners

• Drove sharp improvements in installation speed and quality across all markets

• Expanded monthly new home installation volume by 30%


SOLAR ENERGY - KEY INITIATIVES

• Crius Solar Origination – focus

solar sales efforts in California

and Massachusetts which have

(1) strong customer value

proposition versus utility price;

and (2) in California, enhanced

margin by utilizing Verengo

installation capability

• Crius Solar Fulfillment – expand

new home business and new

EPC partners

Achieve Profitability Expand Sales Channels

• Immediate opportunities to launch door-to-door

canvassing in Massachusetts and offer solar

through CREDO Mobile (significant California

customer base)

Integrate With Retail Energy Business

• Increase sales opportunities generated from

retail energy business


CHRISTIAN MCARTHUREVP, Energy Supply and Pricing

54


PORTFOLIO OPTIMIZATIONThe goal is increasing Customer Lifetime Value (CLV).

Key Initiatives:

1. Optimization of existing book by identifying high/low value customers

2. Develop product strategies that target new, high CLV customers

3. Implement Customer Experience plan that aligns service levels with customer CLV

Contract

Gross

Margin

Cost to

Acquire /

Serve

Value

over

LifetimeCLV


PRICE DRIVERS ARE CHANGINGEnergy-based costs are declining while fixed COGS are increasing.

• In PJM (which makes up about 50% of Crius Energy’s customer portfolio) fixed costs now make up 50% of the cost stack vs. 25% 4 years ago

PJM, ISONE, NYISO, MISO PJM Only

►These changes alter how we think about customer product and value.


PROFITABILITY VARIES BY SEASONMargin variability will drive seasonal changes in unit margins.

• Crius customer book is mostly comprised of

fixed rate products where revenue is a

function of usage

• With significant rise in fixed costs, unit

margins will vary with changes in customer

volume

• Weather departure from normal will result in

variance in margin from forecast (ex. summer

2017)

$-

$5

$10

$15

$20

$25

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

600 700 800 900 1,000

Rep

ort

ed

Unit M

arg

in (

$/M

Wh)

Mo

nth

ly R

eve

nu

e a

nd

CO

GS

Monthly RCE Load (kWh)

Impact of Higher Fixed Cost on Customer Margin

Fixed Cogs Variable Cogs Revenue Unit Margin


HOW FIXED COSTS ARE DETERMINEDFixed costs are based on customers’ capacity and transmission obligation in most markets

• Obligations are based on individual

customer’s peak hour usage behavior from

prior year

• Individual obligations result in significant

fixed cost distribution within customer

population

• Increase in market rates for capacity and

transmission driving greater dispersion in

customer fixed COGS distribution

0%

10%

20%

30%

40%

$- $0.02 $0.04 $0.06 $0.08 $0.10Pro

ba

bili

ty D

istr

ibu

tio

n

Unitized Fixed Cost ($/kWh)

Distribution of Fixed Cost in PPL Customer Base

2018 PD 2014 PD

Pennsylvania Power and Light (PPL) is a utility in the PJM ISO.


PROFITABILITY VARIES BY CUSTOMER

• High fixed components and individual

customer obligations drive large cost

differential from customer to customer

• Utilities (and most retail suppliers) currently

socialize cost across the customer base

resulting in massive cross-subsidization

• Dispersion in individualized customer pricing

represents massive market opportunity

0%

5%

10%

15%

20%

25%

30%

$- $0.02 $0.04 $0.06 $0.08 $0.10Pro

ba

bili

ty D

istr

ibu

tio

n

Unitized Fixed Cost ($/kWh)

Distribution of Fixed Cost in PPL Customer Base

2018 PD

Pennsylvania Power and Light (PPL) is a utility in the PJM ISO.

Annual

Customer

Margin

Annual

Customer

Margin

►Portfolio Optimization: Keep Customer A and Drive Customer B to Profitable

Product

$350

($50)


HOW WE CONTINUOUSLY IMPROVE CLV

Passive Marketing

Active

Marketing

Ongoing Book Management

• “Wide Net”

acquisition

strategy

• Only enroll customers that

meet minimum requirements

for profitability and customer

value proposition

• Engage

customers to

drive behavior

that enables

higher CLV

• Use demographic

analysis to avoid

areas with high

likelihood of low-

value customers

• Post acquisition,

customers will be

optimized within

“Ongoing Book

Management” strategy

• Develop products that

actively filter customers at

time of acquisition

• Rank all customers based

on cost profiles

Be willing to drop customers that will

never be profitable

• Base future customer pricing and

product offers on value ranking

• Customer experience driven based

on customer value ranking

• Products designed

to limit exposure


KEY INTIATIVES TO DRIVE CLV

Value Quadrant for Retail Customers:Performance: relative value of current contracts

Potential: relative cost to serve based on customer attributes

High

potential

customers

High-value

Customers

Low-value

customers

Over-

performing

customers

Performance

Po

ten

tia

l

• Ranking-based pricing, renewals and customer experience

• Products which require customer to apply for rate

• Products with fixed revenue components

• Device-enabled products that drive favorable customer behavior characteristics

• Modelling correlation against demographics (Nielsen)

APPLICATION-BASED PRODUCT EXAMPLE


• Optimization on customer book is expected yield significant improvement in customer margins over time

• As the customer portfolio is optimized, attrition expected to increase in short-term but show improvement as book

becomes concentrated to higher value customers

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2018 2019 2020 2021 2022 2023

% Im

pro

vem

ent

Quart

erly C

hurn

Impact on Attrition

Forecast Churn (qtr) Baseline Churn

Improvement

0%

5%

10%

15%

20%

25%

30%

35%

$0

$5

$10

$15

$20

$25

2018 2019 2020 2021 2022 2023%

Im

pro

vem

ent

$/M

Wh

Impact on Unit Margin

Baseline Unit Margin Optimization value

Improvement

EXPECTED IMPACT

Below are illustrative examples only:

(illustrative) (illustrative)

Attrition Attrition

Qu

art

erl

y A

ttri

tio

n

$ / M

Wh


MICHAEL FALLQUISTChief Executive Officer

63


CRIUS OBJECTIVES

Customer Growth

INCREASE DISTRIBUTABLE CASH

MARGIN GROWTH

Increase Customer

Lifetime Value

Achieve USG&E

Synergies

REDUCE COSTS

Continuous Cost

Optimization

PORTFOLIO OPTIMIZATION

MERGERS & ACQUISTIONS

CUSTOMER ENGAGEMENT

RESIDENTIAL

INTEGRATED ENERGY

COMMERCIAL

INTEGRATED ENERGY

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