Slide 1: Fourth Quarter Results Presentation
NRG Yield, Inc. Fourth Quarter Results Presentation February 27, 2015
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are subject to certain risks, uncertainties and assumptions and typically can be identi
Slide 3: Safe Harbor Continued
Safe Harbor Continued ADDITIONAL INFORMATION AND WHERE TO FIND IT This presentation may be deemed to be solicitation material in respect of the solicitation of proxies from 2015 Annual Meeting SEC a preliminary proxy statement containing important information about the proposed creation of two new c
Slide 4: Agenda
Agenda Strategic Update David Crane Q&A David Crane Financial Summary Kirk Andrews 3
Slide 5: 2014 Year in Review
1 As updated on November 5, 2014 2 5 year growth rate as of 2014 3 Includes NRG dropdown transactions executed on June 30, 2014 and January 2, 2015. Also includes Alta Wind. 4 Run rate CAFD before debt service associated with acquisition financing 5 As part of the proposed issuance of Class C and D
Slide 6: Financial Summary
NRG YIELD_ Financial Summary
Slide 7: 2014 Financial Summary
1 Pro-Forma Cash as of 12/31/14 balance sheet. Project-level cash acquired is not included in liquidity calculations 2 Includes $38MM of LCs posted for Alta Wind assets 3 Actual Corporate Debt / Corporate EBITDA for the period ending 12/31/14 was 4.42x 4 Pro Forma excludes the impact of borrowings u
Slide 8: 2015 Financial Overview
Illustrative Seasonality Impact 2015 Financial Overview 7 Low Quarterly Operating Results; High Implied Payout Ratio High Quarterly Operating Results; Low Implied Payout Ratio Adj. EBITDA has less volatility than CAFD 1Q CAFD Guidance Impacted by: Additional Interest Expense from convertible Seasona
Slide 9: Proposal for New Share Classes
Proposal for New Share Classes1 Proposed Transaction Rationale Enables NRG Yield to more efficiently raise future equity capital to fund growth while maintaining the strong sponsorship of NRG o Class C shares to become primary source of future equity o Not dependent on additional NRG investment/capi
Slide 10: NRG ROFO Assets Expansion
Project Technology Net MW COD Off-Take Expected to Be Offered 2015 & Beyond Run Rate Adj. EBITDA: $220 MM Run Rate CAFD: $105 MM CVSR PV 128 2013 25-year PPA with PG&E2 Agua Caliente3 PV 148 2014 25-year PPA with PG&E2 Ivanpah4 Solar Thermal 189 2013 20-25-year PPAs with PG&E and SCE2 Other Wind Ass
Slide 11: Home Solar Lease Evaluation
Home Solar Lease Evaluation 10 First Portfolio of Approx. 2,300 Leases from NRG Currently Under Evaluation The NRG Home Solar Lease Portfolio Provides a Significant Source of CAFD Growth Over the Long Term Proposed Structure NYLD and NRG to form partnerships to invest in portfolios of operating and
Slide 12: Q&A
Q&A NRG YIELD_
Slide 13: Appendix
NRG YIELD_ Appendix
Slide 14: Operational Metrics
Operational Metrics 13 1 Top decile and top quartile based on Edison Electric Institute (EEI) 2011 Total Company Survey results 2 Thermal generation is TWh thermal equivalent - includes, electricity, chilled water and steam; Renewables includes Equity Projects 3 Equivalent Availability Factor (EAF)
Slide 15: Reg. G: Actuals
Reg. G: Actuals ($ millions) Three Months Ended Twelve Months Ended 12/31/2014 12/31/2013 12/31/2014 12/31/2013 Net Income / (Loss) (10) 37 81 132 Plus: Income tax (11) 3 4 8 Interest expense, net 69 18 165 50 Depreciation, amortization, and ARO expense 42 22 136 61 Amortization of contracts 10 1 18
Slide 16: Reg. G: 2015 Guidance
Reg. G: 2015 Guidance ($ millions) Q1 2015 Full Year 2015¹ Adjusted EBITDA 125 705 Pro-rata Adjusted EBITDA from unconsolidated affiliates (13) (72) Cash distributions from unconsolidated affiliates 19 38 Cash interest paid (55) (235) Maintenance Capital expenditures (3) (16) Change in other assets
Slide 17: Reg. G: Acquisition Annual Run-Rates
Reg. G: Acquisition Annual Run-Rates ($ millions) Jun 30, 2014 Drop Down Alta Wind1 Jan 2, 2015 Drop Down Total Income Before Taxes 45 35 3 83 Adjustments to net income to arrive at Adjusted EBITDA: Depreciation & Amortization 27 100 81 208 Interest expense, net 28 85 36 149 Adjusted EBITDA 100 220
Slide 18: Reg. G: Growth Pipeline
Reg. G: Growth Pipeline 17 ($ millions) Run Rate Income Before Taxes (44) Adjustments to net income to arrive at Adjusted EBITDA: Depreciation & Amortization 199 Interest expense, net 65 Adjusted EBITDA 220 Cash interest paid (53) Maintenance Capital expenditures (5) Principal amortization of indebt
Slide 19: EBITDA and Adjusted EBITDA non-GAAP definitions
EBITDA and Adjusted EBITDA are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The presentation of Adjusted EBITDA should not be construed as an inference that future results will b