OCTOBER 2013
Investor Presentation
TSX: KWH.UN
The Company’s presentations may contain forward-looking statements including statements pertaining to
customer revenues and margins, customer additions and renewals, customer consumption levels,
distributable cash and treatment under governmental regulatory regimes. These statements are based
on current expectations that 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 and dependence on certain suppliers. Additional information on these and other
factors that could affect the Company's operations, financial results or distribution levels are included in
the Company’s AIF dated March 28, 2013 which can be accessed through the SEDAR website at
www.sedar.com.
Forward-Looking Statements
2
595,899
RESIDENTIAL CUSTOMER
EQUIVALENTS (RCEs)
$100M
GROSS PROCEEDS
OF NOV. 13, 2012 IPO
$32.1M
CASH AVAILABILITY
AS OF JUN. 30, 2013
3
RETAILERS OF ELECTRICITY, NATURAL GAS AND SOLAR
A Compelling Investment Opportunity
One of America’s largest independent energy retailers
Large, underpenetrated retail electricity, natural gas and solar
markets
Strong multi-channel sales and marketing platform
Mitigated credit and commodity price risk
Proven organic and acquisition growth strategies
4
ATTRACTIVE YIELD OPPORTUNITY
Crius Executive Team
5
Executive Background
Michael Fallquist CEO
Founder of Regional Energy, one of the two predecessor companies that formed to become Crius Energy.
Former COO of Commerce Energy Group.
Also worked for the Macquarie Group as a member of the Central Executive Strategy group and in various
roles with Macquarie Cook Energy.
Roop Bhullar CFO
Former CFO of Regional Energy.
Previously the Finance Director at Commerce Energy Group.
Former Tax Manager at Deloitte where he provided consulting advice to energy clients and co-headed the
specialist M&A group.
Chaitu Parikh COO
Former President and CEO of MXenergy
Prior to being appointed President and CEO, served MXenergy as EVP and CFO
VP and Corporate Controller at The New Power Company
Prior to The New Power Company, held executive positions with AES Power Direct and Alliance Gas.
Jan Fox SVP & General
Counsel
Former SVP & General Counsel of Regional Energy.
Founder and President of JLK Energy Consulting.
Previously the General Counsel at Strategic Energy, a subsidiary of Great Plains Energy.
Cami Boehme SVP of Marketing &
Brand Strategy
Former SVP of Marketing and Brand Strategy at Regional Energy.
Prior to that she was the Associate Director of Marketing for the Huntsman School of Business at Utah
State University.
Crius Board of Directors
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Director Background
Robert Gries Chairman
Founded Public Power, LLC in 2009 and grew it organically and through acquisitions to over 240,000
customers before merging with Regional Energy to become Crius.
Michael Fallquist Director & CEO
See management bios.
James Ajello Independent Director
Chairman of U.S. Department of Energy’s Environmental Management Advisory Board.
Executive VP, CFO, Treasurer & Chief Risk Officer of Hawaiian Electric Industries, Inc., (NYSE: HE).
Former Senior VP of Business Development and Senior VP & GM of Commercial and Industrial Marketing
President of Reliant Energy Solutions, LLC.
Daniel Sullivan Independent Director
Director, Ontario Teachers’ Pension Plan.
Director, Allied Properties Real Estate Investment Trust.
Former Consul General for Canada in New York.
David Kerr Independent Director
CEO, Thorium Power Canada Inc.
Founder, Algonquin Power Income Fund.
Brian Burden Independent Director
Former CFO, TransAlta Corp.
Former CFO, Molson Coors.
Robert Huggard Independent Director
President of Lindaura Consulting.
Former President, Direct Energy Canada.
Former President, Direct Energy Home and Business Services.
Current Service Territories
7
NINE NEW ENERGY MARKETS ADDED SO FAR IN 2013
Electricity: 11 states and
District of Columbia
Natural gas: 7 states and
District of Columbia
Solar: 6 states
Natural Gas
Electricity and Natural Gas
Electricity
Solar
Large Growth Opportunity In Existing Markets
21% 12.4M ELIGIBLE RCEs
P O T E N T I A L R E S I D E N T I A L C U S T O M E R S M A R K E T P E N E T R AT I O N
27.1M ELIGIBLE RCEs
18%
8
EL
EC
TR
ICIT
Y
NA
TU
RA
L G
AS
STRONG GROWTH THROUGH INCREASED
MARKET PENETRATION
NOTE: Data as reported by KEMA as of August 2011, reflecting states in which Crius operated in at time of filing of final prospectus
DISTINCT FOR EACH BRAND
9
Crius Value Proposition
Bundled product offering Competitively priced
green energy
Rewards
and loyalty program
Crius is Growing Rapidly
10
TOTAL RCES HAVE DOUBLED SINCE Q2, 2011
Cu
mu
lative
Cu
sto
me
rs
ResCom Acquisition
PNE Acquisition
2009 2010 2011 2012 2013
Multi-Channel
Sales & Marketing
Platform
Prudent Risk
Management
Simple Business Model
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Multi-Channel Sales and Marketing Platform
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DIVERSIFIED WITH REACH IN ALL
CUSTOMER SEGMENTS
UNIQUE DISTRIBUTION AND CUSTOMER VALUE PROPOSITIONS
EXCLUSIVE MARKETING
PARTNERSHIPS
NETWORK MARKETING
TELEMARKETING & DOOR-TO-DOOR
Telemarketing & Door-to-Door
R E L AT I O N S H I P S W I T H :
Telemarketing Companies
Door-to-Door Companies
Flexible product offerings
Customer reward and loyalty program
Highly focused marketing efforts
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FLEXIBILITY & AGILITY TO CAPITALIZE ON
MARKET OPPORTUNITIES
Leading green energy brand
Targets friends and family
Ideal channel to market
sustainable energy products
~17,700 exclusive
independent contractors
Average 14 customers per
independent contractor
Network Marketing
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PROVEN SCALABILITY IN NEW MARKETS
LEVERAGE BRANDS AND DISTRIBUTION
~3.5M ELIGIBLE SUBSCRIBERS
LARGEST PARTNER RAMPING UP
Low cost-to-acquire and low
cost-to-service
Customer contracts owned
by Crius
Exclusive Telecom Marketing Partnerships
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FIRST YEAR ANNUAL PENETRATION RATE FOR
ELECTRICTY CUSTOMERS
~5%
Licensed from Frontier Communications Corporation (NYSE: FTR)
Licensed from Cincinnati Bell Inc. (NYSE: CBB)
Licensed from FairPoint Communications Inc. (NYSE: FRP)
Diversified Sales
& Marketing
Platform
Prudent Risk
Management
Simple Business Model
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Prudent Risk Management
17
Customer
Credit
Commodity
Exposure
Liquidity
backstopped by
utilities with investment
grade credit
89% of contracts are
variably priced
88% Macquarie Energy
exclusively supplies energy
and hedging products
through a 5-year, $200M
procurement facility and
$25M working capital facility
MITIGATED CREDIT & COMMODITY PRICE RISK
NOTE: Percentages as of June 30, 2013
18 18 18
PROVEN ORGANIC & ACQUISITION
GROWTH CAPABILITIES
Growth Strategies
19
Expand in existing markets and into new states
Aggressively pursue new exclusive marketing partnerships
Strategic acquisitions of small energy retailers
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16.6M Eligible RCEs
Expand Brands in Existing Markets and Into New States
PLAN FOR NATIONAL EXPANSION
Expand in Existing
Markets
39.5M RCEs with
<21% penetration
Rollout brands into all states
Cross sell electricity and
natural gas
Offer solar energy products
Crius brands entering 5
new states and District
of Columbia in 2013
NOTE: Data as of time of filing of final prospectus
TARGETING LARGER SUBSCRIBER BASES
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Build on first mover
advantage with telcos
Enter partnerships
with cablecos Licensed from Frontier Communications Corporation (NYSE: FTR)
Licensed from Cincinnati Bell Inc. (NYSE: CBB)
Licensed from FairPoint Communications Inc. (NYSE: FRP)
Aggressively Pursue New Exclusive Marketing Partnerships
Opportunity to
Consolidate 48 HAVE <200,000
CUSTOMERS
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Highly Fragmented Market: 69 Energy Retailers
FOCUS ON SMALL ENERGY RETAILERS
PROVEN TO BE HIGHLY ACCRETIVE WITH
LOW INCREMENTAL COSTS
Strategic Acquisitions of Small Energy Retailers
NOTE: Data as of time of filing of final prospectus
23
PNE Acquisition
Acquired book of customers from PNE Energy Supply, LLC in
February 2013
Residential and small commercial customer accounts
located in New Hampshire
Highly accretive
Difficult market conditions facilitated acquisition
24
Viridian and SolarCity
Viridian green energy brand begins offering solar products and
services – September 2013
Products and services provided through reseller agreement
with SolarCity, the No. 1 full-service solar provider in U.S.
Viridian leverages existing network marketing channel to enter
growing market with minimal capital investment and risk
Crius can leverage Viridian/SolarCity agreement to expand
into states where it does not currently operate
Initial and Planned Solar Markets
25
OPPORTUNITY TO EXPAND INTO STATES WHERE WE DO
NOT CURRENTLY OPERATE AND STATES WITHOUT
DEREGULATED ENERGY MARKETS
Planned Solar Markets
Initial Solar Markets
26
Q2 2013 Highlights
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595,899 RCEs, up 2.2% from Q1-13 and 20.2% from Q2-12
Revenue of $113.9M
Gross margin of $27.6M or 24.2% of revenue
Adjusted EBITDA of $10.1M or 8.9% of revenue
Cash availability of $32.1M and no long term debt
Other Financial Highlights
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STRAIGHTFORWARD & TRANSPARENT
Simple financing structure
No long-term debt
$200M supply facility
$25M working capital facility
Financial presentation
Expensing of all selling costs
Limited number of EBITDA
adjustments
A Compelling Investment Opportunity
One of America’s largest independent energy retailers
Large, underpenetrated retail electricity, natural gas and solar
markets
Strong multi-channel sales and marketing platform
Mitigated credit and commodity price risk
Proven organic and acquisition growth strategies
29
ATTRACTIVE YIELD OPPORTUNITY
Analyst Coverage
30
George Doumet
Scotia Capital
514.350.7788
Nelson Ng
RBC Capital Markets
604.257.7617
Julien Dumoulin-Smith
UBS Securities
212.713.9848
Contact Information
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Michael Fallquist
Chief Executive Officer
203.663.7545
Roop Bhullar
Chief Financial Officer
203.883.9900
OCTOBER 2013
Investor Presentation
TSX: KWH.UN