December 2013 Investor Presentation
Cautionary Statements And Risk Factors That May Affect Future Results Any statements made herein about future operating and/or financial results and/or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, for example, statements regarding anticipated future financial and operating performance and results, including estimates for growth. Actual results may differ materially from such forward-looking statements. A discussion of factors that could cause actual results or events to vary is contained in the Appendix herein and in our Securities and Exchange Commission (SEC) filings. Non-GAAP Financial Information This presentation refers to NEE’s adjusted earnings and NEE’s adjusted EBITDA, which are not financial measurements prepared in accordance with GAAP. Definitions of these measures and quantitative reconciliations of these measures to the closest GAAP financial measure are included in the attached Appendix. Prospective adjusted earnings and adjusted EBITDA amounts cannot be reconciled to net income because net income includes the mark-to-market effects of non-qualifying hedges, OTTI on certain investments and operating results from the solar thermal facilities in Spain, none of which can be determined at this time. Adjusted earnings does not represent a substitute for net income, as prepared in accordance with GAAP. 2
Table of Contents • NextEra Energy, Inc. Overview Slide 4 • Florida Power & Light Slide 12 • NextEra Energy Resources Slide 23 • NextEra Energy Transmission Slide 29 • NextEra Energy, Inc. Financial Review Slide 31 • Appendix Slide 39 3
NextEra Energy is well-positioned for future growth NextEra Energy – Investment Proposition • Above-average and highly visible growth through 2016 – Four years of regulatory certainty at FPL – Strong backlog at Energy Resources with upside potential • Strong and increasing cash flow from operations – Operating cash flow expected to increase at ~10% CAGR from 2013 to 2016 • Moderate risk portfolio – 84% of adjusted EBITDA coming from regulated and long-term contracted operations by 2016 – Highly hedged against commodity price fluctuations • Underpinned by one of the strongest balance sheets in the industry • Leading dividend per share growth – Targeting 55% dividend payout ratio by 2014, implying ~10% dividend per share growth over 2013 4
NextEra Energy is comprised of two strong businesses supported by a common platform • $37.7 B market capitalization (1) • 42,662 MW in operation • $67 B in total assets • One of the largest U.S. electric utilities • U.S. leader in renewable generation • 4.6 MM customer accounts • Assets primarily in 24 states and Canada • 24,665 MW in operation • 17,997 MW in operation Engineering & Construction Supply Chain Nuclear Generation Non-Nuclear Generation (1) Market capitalization as of November 22, 2013; source: FactSet Note: All other data as of September 30, 2013 5
NextEra Energy is built on a foundation of operational excellence and financial strength SAIDI: System Average Interruption Duration Index (1) Utility Credit Ratings (3) 40% Minutes 36% 150 Good FL Industry Average 35% NextEra 125 Energy 100 30% FPL 75 25% 50 25 20% 20% '06 '07 '08 '09 '10 '11 '12 20% Fossil Reliability – EFOR (2) 15% 13% 10% Industry Average 10% 8% 7% 6% 4% 5% Good 4% NextEra Energy 2% 0% A or A ‐ BBB+ BBB BBB ‐ Non ‐ 0% higher Investment '06 '07 '08 '09 '10 '11 '12 Grade (1) SAIDI represents the number of minutes the average customer is without power during that time period Source: FPL as reported to FL PSC; FL Industry Average consists of data from TECO, PEF, and Gulf as reported to FL PSC (2) Equivalent Forced Outage Rate; NextEra EFOR represents FPL Fossil and NEER TH&S; Industry Source: NERC (Large Fossil Generating Peer Companies). 6 (3) From EEI: S&P Utility Credit Ratings Distribution – Financial Update Q2 2013; may not add to 100% due to rounding
NextEra Energy has one of the cleanest emissions profiles among the nation’s top 50 power producers NextEra Energy 2012 Fuel Mix (1) SO 2 Emissions Rates (2) (MWh) (Lbs/MWh) 9.0 Nuclear 7.5 Solar <1% Nuclear 22% Wind 21% 15% Wind Coal 3% 6.0 14% Hydro 1% 4.5 Oil <1% NextEra 3.0 Energy Natural Gas 59% 1.5 0.0 NO x Emissions Rates (2) CO 2 Emissions Rates (2) 3.5 (Lbs/MWh) (Lbs/MWh) 2,500 3.0 2,000 2.5 NextEra Energy 1,500 2.0 NextEra Energy 1.5 1,000 1.0 500 0.5 0.0 0 (1) As of December 31, 2012; may not add to 100% due to rounding. The environmental attributes of NEER's electric generating facilities have been or likely will be sold or transferred to third parties, who are solely entitled to the reporting rights and ownership of the environmental attributes, such as renewable energy credits, emissions reductions, offsets, allowances and the avoided emission of greenhouse gas pollutants. (2) Source for emissions rates: MJ Bradley & Associates 2012 report “Benchmarking Air Emissions of the Largest 7 100 Power Producers in the United States”
In 2012, we continued our long-term record of delivering shareholder value Total Shareholder Return (2) Adjusted Earnings Per Share (1) 20% 50% 47% 18% $3.84 $4.05 $4.30 $4.39 $4.57 16% 40% 15% 36% $3.49 28% 30% $3.04 $2.41 $2.48 $2.49 $2.63 10% 20% 5% 10% 1% 0% 0% One Year Three Year '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 25% 250% Dividends Per Share (3) 23% 228% 20% 200% 170% $1.16$1.20$1.30$1.42$1.50$1.64$1.78$1.89$2.00$2.20$2.40 15% 150% 99% 10% 9% 100% 5% 50% 2% 0% 0% Five Year Ten Year ■ ■ S&P 500 Utility Index ■ NEE S&P 500 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 (1) See appendix slide 46 for reconciliation of adjusted amounts to GAAP amounts (2) Source: Bloomberg; includes dividend reinvestment 8 (3) Split-adjusted
NextEra Energy has one of the leading total shareholder returns on a YTD basis in our industry and outperformed both the S&P 500 and the S&P 500 Utilities Index over the period Top 10 Power Companies (1) – YTD Total Shareholder Return 35% 32.5% 29.0% 29.0% 30% 28.4% 25% 20% 16.5% 16.5% 15% 14.1% 13.5% 11.2% 10% 4.4% 5% 0.8% -3.6% 0% (5%) Source: FactSet as of 11/22/2013; includes dividend reinvestment (1) Top 10 power companies based on market cap as of 11/22/2013 9
At our investor conference in March, we identified potential capital spending of up to $23 B in 2013 to 2016; we have now firmed up ~$19 B of investment opportunities 2013 – 2016 Capital Expenditures (1) • FPL $ MM 25,000 – Includes cap ex for modernizations, incremental storm hardening, reliability/ 20,000 infrastructure improvement, ~$1.3 B peaker upgrades, and Vero ~$3.2 B 15,000 acquisition ~$3.4 B • Energy Resources (2) 10,000 ~$19 B – Includes cap ex for U.S. and Canadian wind programs and ~$11.4 B U.S. solar program 5,000 • Pipelines – Includes cap ex for Sabal Trail 0 Transmission investment and FPL NEER Wind NEER Solar Pipelines Florida Southeast Connection We continue to expect FPL capex to be greater than 60% of the total (1) Most opportunities require additional development and construction activities and/or regulatory approvals. (2) See appendix slide 44 for detail of Energy Resources March 2013 Investor Conference backlog and incremental wind 10 and solar projects.
We are moving forward on ~$7 B of incremental investments Incremental Capital Opportunities 2013 to 2016 Opportunity Status Projected Cap Ex FPL • Storm hardening PSC decision expected in November ~$400 MM • Reliability investment Infrastructure improvements on track ~$700 MM Hearings to be held in December with a • Potential peaker upgrades ~$820 MM decision expected in January FERC Pipelines • FL natural gas pipeline PSC approved FPL’s contracts on ~$1.55 B investments 10/24 (1) Energy Resources (2) • 500 to 1,500 MW of incremental ~1,175 MW signed wind PPAs ~$2.0 B U.S. wind Executed agreement to acquire 250 • Up to 300 MW of incremental MW long-term contracted solar project ~$1.2 B solar 40 MW signed solar PPAs (1) Florida Public Service Commission approval was protested; motion to dismiss pending. (2) See appendix slide 44 for detail of Energy Resources March 2013 Investor Conference backlog and incremental wind and solar projects. 11
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Florida Power & Light is one of the best utility franchises in the U.S. Florida Power & Light (1) • One of the largest U.S. electric utilities • Vertically integrated, retail rate-regulated • 4.6 MM customer accounts • 24,665 MW in operation • $10.1 B in operating revenues • $36 B in total assets (1) All data as of September 30, 2013, except operating revenue which is for the year ended December 31, 2012 13
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