NRG Home - Retail. Elizabeth Killinger President NRG Retail and Reliant

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1 NRG Home - Retail Elizabeth Killinger President NRG Retail and Reliant

2 NRG Retail Key Themes Solid foundation to consistently deliver on commitments customers & EBITDA Market leadership to innovate products, services and sales Scalable foundation to add products and customers Increasing customer tenure and profitability creates a value multiplier 1

3 Key Platform to the NRG Home Strategy SOLAR NRG Retail NRG Retail provides mass customers compelling options for power and related services in their home as well as providing them power on the go Security Services Distributed Generation Energy Management Protection Plans 2

4 3 The Era of Personal Power

5 Massive Value Capture Opportunity All values in nominal $ per customer Value Build: An Illustration Value Today $1,500 Adj EBITDA: $615 MM 1 EV/EBITDA: 8.0x 2 Customers: ~2.8 MM $1,100 $1,150 ~$3,800 of Per customer value potential $1,750 NRG Conventional Retail Core Add-Ons (e.g., nat gas, protection plans) New Products (e.g., home security, Goal Zero) Home Solar, Net 4 Home Service and Product Cross Selling Represents NRG s mid-point 2015 financial guidance for NRG Home Retail; 2 Assumed value for illustrative purposes; 3 Values represent an 8.0x multiple to assumed annual adjusted EBITDA potential based on internal NRG research; 4 Net additional value assuming no customer acquisition cost offset by a reduction in system power use given solar installation Incremental value will be directly related to how we deliver affordability, resilience and convenience all with a sense of purpose to customers

6 Our Path to Delivering Value Solid Foundation More Value from Existing Customers Adding New Customers Consistent results, leading market position More offerings, deeper relationships and longer contracts Broad ecosystem and new offerings provide more entry points 5

7 Stable Foundation Stable Margins Diversified Generation Platform ($ Millions) Adjusted EBITDA 1 Natural Gas Coal Oil Wind Nuclear $501 $560 $528 $590 $ E 2015E Texas East Installed Capacity 2 (GW) Load Served 3 (TWh) Customers 3 (MM) Represents NRG Retail, excl. C&I; Actuals; 2014 Estimated from 3Q earnings call guidance; 2015 Based on NRG Midpoint Financial Guidance; 2 Installed Capacity as of 9/30/14; Estimated 6 Building momentum on integrated wholesale/retail platform

8 Consistent Customer Growth (Millions) Mass Customer Count 1 ~2.8 ~2.0 ~2.1 ~2.2 ~ E Growth Driven By: Effectively integrating customer and company acquisitions Meeting customers where they are with a great consumer experience Pragmatically managing margins and operating multi-brand strategy Actuals; 2014 Estimated 7 Steadily building the customer portfolio

9 Leading Residential Market Position A Large National Presence and the Leader in Texas Top 5 Energy Retailers (Millions of Residential Customers) Residential ERCOT Share (Customers) # 2 Nationally Champion 2% Other 16% # 1 In TX Gexa 2% Stream 5% Ambit 7% NRG 29% Direct Energy NRG FirstEnergy Just Energy TXU Direct Energy 13% TXU 26% Source: Company Filings, Industry Reporting, NRG Analysis 8 Proven leader - #1 in Texas and #2 in the US

10 Evolution of NRG s Retail Platform REP Expansion ( ) Enhanced Offerings ( ) Complete Energy Solutions (2016+) Hedge for Generation (2009) Acquires Reliant Energy Acquires Green Mountain, Energy Plus, and Dominion/Cirro Acquires RDS, Pure Energy, and Goal Zero; broad launch of Connected Home products in 2015 Provide fully integrated and sustainable power and related solutions for mass customers at home (on or off the grid) and on-the-go 9 Raising the bar for what customers expect

11 Expanding the Product Portfolio Fact: 20% of residential customers in TX are buying more than one product Personal Power Energy Management Distributed Generation Rooftop Solar Security Services Home Services Protection Plans Natural Gas System Power evgo Connected Home Rooftop Solar Protection Plans Energy Subscription Customers Home Energy Appliances Recurring Purchases Goal Zero/ Portable Power Home Services Discrete Purchases 10 Building on the value inherent in already having an energy relationship with the consumer

12 Award Winning Customer Experience Opens the Door to Adding Value Award-Winning Customer Service Winning Mobile/Web Experience 22% above industry standard 11 Deepening the customer relationship

13 Natural Up-Selling Touch Points Event: Enrollment Event: Summer Vacation Fact: NRG enrolls 800K customers per year Multiple Touch Points and Up-Sell Opportunities Event: Contract Renewal or Decision to Go Solar Event: Winter Preparation 12 Creating value through relevant products and meaningful touch points

14 Opportunities for Additional Value in Every Region Texas/Gulf East West/Nationwide Extend Leadership Innovate Optimize Innovate Deepen Customer Relationships Optimize Explore Innovate No Boundaries 13 Approach varies by region, but growth opportunities exist across the U.S.

15 Providing More Services to Customers Illustrative EBITDA Expansion Potential per Retail Customer $500+ Conventional Retail w/core Add-Ons w/new Products Total (e.g., nat gas, protection plans) (e.g., home security, GZ) 14 Products and services beyond system power could more than double customer value

16 Longer Term Relationships Customer Tenure (Years) 20+ Fact: Customers on differentiated offerings have a 5-20% higher retention rate 3 7 System Rooftop Connected Power Solar 1 Home Increasing retention strengthens the overall portfolio

17 Customers Buy More and Stay Longer Increasing Customer Value Additional Share of Wallet and Term ($ Millions) Annual EBITDA Potential >$1 Billion $ ~ Based on midpoint 2015 Financial Guidance Increased Sales + Extending Tenure = Increased Earnings Potential 16

18 Our Path to Delivering Value Solid Foundation More Value from Existing Customers Adding New Customers Consistent results, leading market position More offerings, deeper relationships and longer contracts Broad ecosystem and new offerings provide more entry points Value Multiplier Infinite Possibilities 17