INVESTOR PRESENTATION - s21.q4cdn.coms21.q4cdn.com/.../4Q2017/Crius-IR-Presentation_Q4-2017.pdf · demand, the value/growth proposition of deregulated energy, the future/success of

INVESTOR PRESENTATIONQ4 2017

2CRIUS ENERGY | INVESTOR PRESENTATION | Q4 2017

FORWARD-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, 2017 (dated March 8,

2018), and (ii) the management's discussion and analysis of the Trust for the three months and year ended December 31, 2017 (dated March 8, 2018), 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 December 31, 2017, unless otherwise noted.

FORWARD-LOOKING STATEMENTS AND NON-IFRS MEASURES

http://www.sedar.com/


CRIUS: A DIVERSIFIED ENERGY COMPANY

ELECTRICITY - NATURAL GAS - SOLAR

BROAD RANGE OF ENERGY PRODUCTS NOT OFFERED BY TRADITIONAL UTILITIES

ACTIVE IN 19 STATES + DC

SERVING OVER 1.4 MILLION CUSTOMERS*

BEST-IN-CLASS RISK MANAGEMENT

FULL SUITE OF SALES CHANNELS AND FAMILY OF BRANDS STRATEGY

*Measured in Residential Customer Equivalents or RCEs. An 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.


KEY METRICS: FINANCIALS

ADJUSTED EBITDAREVENUE

PAYOUT RATIO

DISTRIBUTABLE CASH(in US$ millions) (in US$ millions) (in US$ millions)

GROSS MARGIN(in US$ millions)

EMBEDDED MARGIN(in US$ millions)

$507 $601

$686 $744

$876

2013 2014 2015 2016 2017

$32 $38

$53

$61 $65

2013 2014 2015 2016 2017

$27 $29

$35 $39

$45

2013 2014 2015 2016 2017

$103

$129

$164 $159

$184

2013 2014 2015 2016 2017

146%

99%

58% 58% 64%

2013 2014 2015 2016 2017

$267 $248 $280

$300

$474

2013 2014 2015 2016 2017


363265

375 390

67056

20275

350

615569

819

982

1410

2013 2014 2015 2016 2017

Organic Growth (gross adds) Acquisition Growth (gross adds)

Cumulative Customer Count

KEY METRICS: CUSTOMER GROWTH & ATTRITION

NEW AND CUMULATIVE CUSTOMER GROWTH

(RCEs in 000s)

THE CUSTOMER BASE HAS GROWN BY MORE THAN 250% THROUGH CONSISTENT ORGANIC GROWTH

AND ACCRETIVE ACQUISITIONS.

• APPROXIMATELY 75% OF GROSS CUSTOMER ADDS FROM ORGANIC SALES CHANNELS.

363 321

577

465

1020


SERVICE AREA

CRIUS IS ACTIVE IN

19 STATES IN THE U.S. AND THE DISTRICT OF

COLUMBIA U.S. Source: U.S. Census Bureau; DNV GL Research; Intl. Source: World’s International Energy Consumption, Energy Central; U.S .

Solar Source: U.S. Census Bureau; SEIA.org

LARGE ADDRESSABLE MARKET

100 Million+ eligible customers

27% penetrationU.S.

35 Countries with energy choice

44% Deregulation worldwide

U.S. SOLAR ENERGY

<2%penetration

77Mowner-occupied homes

DEREGULATED ENERGY

INTL.


SALES & MARKETING

COMMERCIAL ENERGY

SMALL & LARGE COMMERCIAL CUSTOMERS AND

MUNICIPAL AGGREGATIONS

BROKERS, AGGREGATORS & CONSULTANTS,

TELESALES

MASS MARKET ENERGY

RESIDENTIAL CUSTOMERS

EXCLUSIVE PARTNERHIPS,

INTEGRATED ENERGY PLATFORM

DOOR-TO-DOOR, TELESALES,

ONLINE & DIGITAL

DIVERSIFIED STRATEGY AND LOW CUSTOMER ACQUISITION COST PROVIDE A COMPETITIVE ADVANTAGE

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

Proprietary, web-

based broker

portal

5-year track record

of success with

Municipal

Aggregations

More than 800

broker

relationships


CORPORATE SOCIAL

RESPONSIBILITY4,710,410,990POUNDS OF CO2 EMISSIONS

AVOIDED IN 2017

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

AWARD WINNING FAMILY OF BRANDS


MERGERS & ACQUISITIONS

POTENTIAL UPSIDE FROM ONGOING M&A ACTIVITY IS ADDITIVE TO ORGANIC GROWTH

COMPLETED 12 ACQUISITIONS IN THE RETAIL ENERGY AND SOLAR INDUSTRIES OVER THE PAST FIVE

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, and a residential electric

customer portfolio from a California based energy retailer in 2017.

All retail energy brands are expected to be consolidated

onto one common technology platform by the end of 2018


BUSINESS UPDATE - ACQUISITION OF U.S. GAS & ELECTRIC INC. (USG&E)

BUSINESS OVERVIEW:

• Leading U.S. retail energy company with solid

organic growth and strong margins per RCE*

• Electricity and natural gas markets

• Residential and small commercial customers

• Approximately 350,000 RCEs

• Customers in 11 states and D.C., in 62

deregulated utility markets

KEY TRANSACTION BENEFITS

• On a pro forma basis as of March 31, 2017:

• ~16% accretive to distributable cash and

expected to deliver strong accretion in 2018,

before accounting for planned synergies

• Robust direct-to-consumer sales channels added

and expected to deliver incremental residential

customer growth

• Increased natural gas customer base from 6% to

14% of total customer portfolio

• Expanded service territory to include the Michigan

and Kentucky natural gas markets

*An 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. **This forward looking information uses assumptions and estimates that have not been projected beyond the end of Crius’ next fiscal year. However, such assumptions and estimates have been expressed over

a three year period as the synergies are expected to be realized over that period.

EXPECTED POST TAX-REFORM

SYNERGIES:

• After-tax synergies to Distributable Cash

of $41 million to $47 million over a three-

year period**

• Annual run-rate after-tax cash

synergies of $10 - $12 million through

restructuring, transition to Crius’

technology platform, renegotiated

credit facility pricing and trading terms

and tax benefits.

• One-time cash tax savings of ~$11

million in net operating losses of

Verengo to offset current and future

taxable income over the next two to

three years.

SYNERGIES OF

$41 - $47 M


Portfolio Optimization Mergers & Acquisitions Customer Engagement 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 integrated energy

product 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

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, energy

efficiency)

• Priority to integrate

residential solar and retail

electricity

KEY STRATEGIC PRIORITIES TO GROW DISTRIBUTABLE CASH THROUGH

MARGIN GROWTH AND COST REDUCTION

STRATEGIC PRIORITIES

FINANCIALS


FINANCIAL METRICS

Q4 2017 Q4 2016 FY 2017 FY 2016 FY 2015

Revenue (US$M) $248.5 $171.4 $875.9 $743.8 $600.5

Gross Margin (US$M) $54.8 $37.5 $184.0 $158.5 $128.9

Gross Margin (% of revenue) 22.1% 21.9% 21.0% 21.3% 21.5%

Selling Expenses (US$M) $11.2 $6.6 $34.4 $28.8 $35.3

G&A Expenses (US$M)* $26.0 $17.3 $102.3 $76.2 $55.1

Adjusted EBITDA (US$M)* $18.0 $13.6 $64.8 $60.8 $38.5

Net Income $36.0 $20.6 $20.2 $44.4 $(74.9)

Distributable Cash (US$M) $13.0 $9.2 $45.0 $38.9 $34.7

Cash Flow from Operations $14.8 $15.2 $13.2 $41.0 $37.3

LTM Payout Ratio (%) 68.5% 62.0% 63.8% 58.1% 58.2%

Cash and Cash Equivalents (US$M) $18.2 $10.9 $18.2 $10.9 $11.2

Total Cash and Availability (US$M) $49.4 $49.9 $49.4 $49.9 $42.9

Adjusted Working Capital (US$M)** $(28.2) $(13.4) $(28.2) $(13.4) $(9.1)

Embedded Margin (US$M)*** $474.0 $299.7 $474.0 $299.7 $279.5

ADJUSTED EBITDA &

DISTRIBUTABLE CASH (US$M)

*General & Administrative expense and Adjusted EBITDA have been adjusted to exclude a loss on sale of the Viridian assets and associated expenses of $7.3 M for FY2016, and FY2017 Adjusted EBITDA excludes $17.5 million for a legal reserve and

associated legal fees. **Adjusted Working Capital is defined as current assets less current liabilities excluding unrealized gains and losses on derivatives. ***Embedded margin represents a five year non-discounted measure of managements estimate of future

electricity and natural gas margins based on forecasted volumes and unit margins for existing customers with appropriate assumptions for customer attrition and renewals. Embedded margin is not intended to take into account expenses such as selling, general

and administrative or financing costs necessary to realize the gross margins. It is only calculated for existing customers and does not factor future customer additions. Embedded margin is a non-IFRS measure.


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:

– Higher margin residential-focused USG&E channels

– Increased focus on small commercial segment

– 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

*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.

$119

$159 $154 $178

$221

FY 2014 FY 2015 FY 2016 FY 2017 PF 2017**

GROSS MARGIN (US$M)

$201

$229

$171 $163 $173

FY 2014 FY 2015 FY 2016 FY 2017 PF 2017**

GROSS MARGIN (US$/RCE, PER YEAR)


$72

$85

$56 $50 $52

FY 2014 FY 2015 FY 2016 FY 2017 PF 2017

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 cost-to-acquire 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 cost-to-acquire

• Pro-forma USG&E blended cost-to-acquire

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

cost-to-acquire channels, such as door-to-

door and telemarketing

SALES, GENERAL & ADMINISTRATIVE EXPENSES

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

COST TO ACQUIRE(Upfront selling expenses* US$ per RCE)

Positive downward cost-to-

serve trends continue and will

further benefit from USG&E

cost-synergies

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 calculated as upfront selling costs per average RCE, deregulated energy only.

Upfront cost-to-acquire remains low, despite uptick in pro-forma cost-to-acquire due to USG&E

higher-margin residential sales channels

$8/RCE of USG&E

synergies

$46

$34

$21 $21

$38

FY 2014 FY 2015 FY 2016 FY 2017 PF 2017


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 generated in a way that maximizes

unitholder value

Payout ratio provides buffer to allow for

variations, one-time items, working capital

investment and other requirements

Reprioritization 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

CAPITAL ALLOCATION


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 3.3M 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%

7%

Over six-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%

4% 4% 4% 4% 4%

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 price0%

-10%

10%


BALANCED RISK PORTFOLIO

CONTRACT TYPE

COMMODITY / GEOGRAPHY

Mid-Atlantic (PJM) represents all or parts of DE, IL, IN, KY, MD, MI, NC, NJ, OH, PA, TN, VA, WV and DC. New York (NY-ISO) represents NY

exclusively. New England (ISO-NE) represents all or parts of CT, MA, ME, NH, RI and VT. Midwest (MISO) represents all or parts of AK, IA, IL, IN, KY,

LA, MI, MN, MO, MS, MT, ND, SD, WI, and Manitoba, Canada. Texas (ERCOT) represents TX exclusively.

• Strong and diversified electricity and natural gas customer base

• Other income streams – including solar and fee revenue – provide further diversification

• Further diversification benefits realized from acquisition of U.S. Gas & Electric

REVENUE EXPOSURE

CUSTOMER SEGMENT

45%

18%

13%

8%

2%

14%

Mid-Atlantic - Electric New England - Electric

Texas - Electric New York - Electric

Midwest - Electric Natural Gas

20%

80%

Credit Check Utility Guaranteed

36%

64%

Commercial Mass Market

70%

30%

Fixed Variable


WHY OWN CRIUS?

HIGH GROWTH BUSINESS

– Demonstrated track record of organic and acquisitive growth

with ~75% of gross customer adds from our diversified sales

channels and differentiated, highly acclaimed family of brands

– Significant growth potential from exclusive 5-year Comcast

partnership and proprietary Integrated Energy Platform

strategy

– Further upside from solar business once fully integrated with

retail energy operations

SUFFICIENT CAPITAL TO GROW

– Low customer acquisition cost

– $49.4 million of cash availability

– ~1x Debt-to-Adjusted EBITDA ratio

STABLE DISTRIBUTIONS

– Large, diversified customer portfolio supported by best-in-

class risk management capabilities

– Distribution increased by ~20% since the beginning of 2016

– Payout ratio of 64%

C$7.82

57 M

C$446 M

C$0.84 / unit

10.7%

~ 6%

Unit Price at 7-Mar-2018

Units Outstanding

Market Capitalization

Annual Distribution

Yield

Management/Board Ownership

KWH.UNToronto Stock Exchange

Total return over

9% since January 1, 2016

Management/Board Ownership reflects interests held by Senior Management

and the Trust Board, including approximately 2 million phantom unit rights

(PURs) that are subject to performance targets.

APPENDIX


Q4 2017 FY 2017

Net (loss) income and total comprehensive (loss) income $36.0 $20.2

Excluding the impacts of:

Finance costs $5.2 $15.3

Provision for (benefit from) income taxes $(3.2) $(22.6)

Depreciation and amortization $12.0 $58.3

EBITDA $50.0 $71.2

Excluding the impacts of:

Unit-based compensation $0.1 $5.9

Change in fair value of derivative instruments $(32.2) $(30.2)

Change in fair value of warrants $(0.3) $0.4

Legal reserve and associated legal fees $0.4 $17.5

Adjusted EBITDA $18.0 $64.8

ADJUSTED EBITDA


Q4 2017 FY 2017

Cash flows from operating activities $14.8 $13.2

Changes in operating assets and liabilities $(4.4) $(37.6)

Cash flows from operating activities excluding changes in operating assets and

liabilities$19.2 $50.8

Finance costs included in financing activities $(5.0) $(15.3)

Maintenance capital expenditures(1) $(1.6) $(3.8)

Unit-based compensation payments - $(4.2)

Legal reserve and associated legal fees $0.4 $17.5

Distributable Cash $13.0 $45.0

Total Distributions $8.9 $28.7

Payout Ratio 68.5% 63.8%

DISTRIBUTABLE CASH AND PAYOUT RATIO

(1) Maintenance capital expenditures consisted of cash flows used in investing activities from the Consolidated Statement of Cash Flows, adjusted to exclude cash flows used in investing activities relating to acquisitions.


CRIUS EXECUTIVE TEAMMichael FallquistChief Executive Officer

• Successful executive and entrepreneur who founded the company in 2009 and led the IPO for Crius Energy on the TSX in 2012

• Served as COO of Commerce Energy and in various roles at Macquarie Group in the U.S. and Australia

• Winner of 2012 Ernst & Young Entrepreneur of the Year Award (NY region – Cleantech category)

• Graduate of Colgate University (BA, Economics) and Cornell University (MBA)

Roop BhullarChief Financial Officer

• Over 12 years of financial leadership in the retail energy industry, both in the U.S. and internationally

• Track record of success raising equity and debt capital

• Formerly with Just Energy, Universal Energy, Commerce Energy, King Country Energy

• Graduate of University of Waikato (BMS/LLB Hons) and UCLA (MBA)

Chaitu ParikhChief Operating Officer

• Over 18 years of operational growth in the retail energy industry

• Leader in business strategy and multi-location operations

• Successful track record in leading mergers & acquisitions

• Former President and CEO of MXEnergy

Barbara ClayChief Legal Officer

• Over 19 years in compliance, law and governance in highly regulated industries

• 9 years in private practice representing energy, communication and financial industry clients for M&A, joint ventures, and complex contract matters

• Graduate of Rutgers University, and earned her J.D. at Pace Law School

Rob CantrellExecutive VP, Commercial

Energy

• Over 21 years of sales leadership

• 10 years in the retail energy industry

• Former President and Chief Operating Officer for TriEagle Energy

Pat McCamleyExecutive VP,

Corporate Development

• Over 21 years of corporate and business development leadership

• Lead the onboarding of Comcast, FairPoint and Cincinnati Bell as strategic energy distribution partners

• Formerly with Skyline Partners, Siemens, Convergys

• Graduate of Pennsylvania State University

Christian McArthurExecutive VP,

Energy Pricing and Supply

• Leader in trading, risk management, customer analytics and forecasting with over 15 years of retail energy expertise

• Led retail supply at Just Energy, oversaw growth from Canadian market to current international footprint

• Led 2 strategic solar acquisitions and launched Crius Solar, a vertically integrated solar and company

• Graduate of Queens University (BASc Engineering Physics) and University of Waterloo (MASc Electrical Engineering)

Kevin McMinnExecutive VP,

Mass Market Energy

• Over 21 years of leadership and operational success with U.S. and international corporations with proven performance in a wide range of industries

• COO of USG&E leading a cultural transition to a customer focused environment, garnering high rankings by JD Power while increasing profitability

• Served as EVP and Board Member of ESPI bringing the company to recognition as #9 of the Top 10 Energy Companies on the INC500/2008

• Successful track record in managing natural gas and power procurement, financial hedging and risk management operations

Ravi ThuraisinghamExecutive VP, Solar

• Over 21 years of solar energy and business development leadership

• Former President of American Solar Direct and co-founder, CEO and Chairman of LightWing Inc., a solar energy sales and technology platform

provider which was acquired by SunEdison and subsequently acquired by Crius

• Graduate of University of Toronto with undergraduate and graduate degrees in Nuclear Engineering, and a CFA Charter holder


David Kerr Chairman, Independent Director

• CEO, Thorium Power Canada Inc.

• Founder, Algonquin Power Income Fund

• Director of 3GS, a private UK corporation

• President of Algonquin Power Corporation, a private renewable energy developer

James AjelloIndependent Director

• Director, American Savings Bank, and SKAI Ventures and Member of the National Academy of

Science Committee on Energy Resource Potential for the U.S. Department of Energy Lands

• Former Executive VP, CFO, Treasurer & Chief Risk Officer of Hawaiian Electric Industries, Inc.

• Former Senior VP of Business Development and Senior VP & GM of Commercial and Industrial

Marketing and President of ReliantEnergy Solutions, LLC

Brian Burden Independent Director

• Director, Trinidad Drilling Ltd.

• Former CFO, TransAlta Corp.

• Former CFO, Molson Coors

Robert HuggardIndependent Director

• Former President, Direct Energy Canada

• Former President, Direct Energy Home and Business Services

• President of Lindaura Consulting

Daniel Sullivan Independent Director

• Director, Choice Property Real Estate Trust

• Director, Allied Properties Real Estate Investment Trust

• Former Consul General for Canada in New York

Michael FallquistDirector & CEO

• Founded Crius Energy, Viridian Energy and forged initial strategic partnerships

• Commerce Energy, Macquarie Group

• Over 11 years in the retail energy industry

CRIUS BOARD OF DIRECTORS

Michael Fallquist Roop Bhullar Kelly Castledine

Chief Executive Officer

203.663.7545

[email protected]

Chief Financial Officer

203.883.9900

[email protected]

Investor Relations

416.644.1753

[email protected]

CONTACT INFORMATION

Documents

INVESTOR PRESENTATION - s21.q4cdn.coms21.q4cdn.com/.../4Q2017/Crius-IR-Presentation_Q4-2017.pdf · demand, the value/growth proposition of deregulated energy, the future/success of