Reliant Energy
Reliant Energy — Centerpoint Energy — Merger or Acquisition (December 2001)
11 slides from Reliant Energy's merger presentation, Dec 21, 2001
Slide 1: Reliant Energy New Holding Company Formation and Spin-off of Reliant Resources
Reliant Energy New Holding Company Formation and Spin-off of Reliant Resources
Slide 2: Forward Looking Information
Forward Looking Information This presentation includes forward-looking statements. Actual events and results no Energy. differ materially from those projected. Factors that could affect actual results include the timing and impact of future regulatory and legislative decisions, effects of competitio
Slide 3: IPO, Restructure, Spin-off
IPO Sold approximately 20% of unregulated business, Reliant Resources (RRI), in an IPO in May 2001 Restructure Will form CenterPoint Energy (CEP) to be new holding company for Reliant Energy and its subsidiaries Spin-off Will create two independent companies. Plan to distribute 80% stock interest in
Slide 4: IPO of 20% of Reliant Resources
IPO of 20% of Reliant Resources First trading day May 1, 2001 \eeliant 59.8 million total shares of common stock issued to public in the IPO - Total net proceeds of $1.694 billion 240 million shares of RRI common stock retained by Reliant Energy 19.9% public ownership* eae Percent onmership at time
Slide 5: Formation of the New Holding Company
Formation of the New Holding Compan (Reliant \ Energy. New holding company structure approved by shareholder vote on December 17, 2001 New holding company will be called CenterPoint Energy CenterPoint Energy will become the parent company of Reliant Energy Being formed as a part of a corporate restr
Slide 6: Distribution of RRI shares and dividend policy
Spin-off of Reliant Resources Reliant Energy. Plan to distribute 240 million shares of RRI common stock owned by CEP to CEP shareholders through a stock dividend Number of RRI shares distributed for each CEP share owned will depend on the number of CEP shares outstanding at the time of the separatio
Slide 7: Example of Share Exchange and Distribution
Example of Share Exchange and Distribution Nees 100 shares of CEP 100 shares 100 shares of REI of CEP Phares and receive Gisenbuton oF BRE Phares One-for-one conversion ~80 shares of RRI” * Based on distribution ratio calculated using currently eutstanding shares of REl («238 million as of December
Slide 8: Transformation into Two Companies
Transformation into Two Companies € CenterPoint \Reliant Energy W Resources. Regulated energy delivery Competitive energy businesses services businesses - Electricity transmission and distribution - Unregulated power generation - Natural gas distribution - Wholesale eneray trading and marketing - Na
Slide 9: Distinct Investment Alternatives
Distinct Investment Alternatives \epliant € CenterPoint \Reliant Energy \ Resources. Distinct Expected to appeal to investors Expected to attract growth iAUESEORE interested in reliable dividend and value-oriented opportunities income, lower risk, and investors consistent growth Distinct Will strive
Slide 10: Separation Timeline
eparation Timeline \Reliant Process Date (to be) Completed \@ Energy. Announced business separation July 2000 plan Business separation plan approved December 2000 by Public Utility Commission of Texas IPO of ~20% of Reliant Resources May 2001 Special shareholder meeting to December 2001 vote on rest
Slide 11: Reliant Energy New Holding Company Formation and Spin-off
Reliant Energy New Holding Company Formation and Spin-off of Reliant Resources
Centerpoint Energy — Merger or Acquisition (December 2001) on 6ix