Earnings Conference Call Fourth Quarter and Full Year 2014 January 27, 2015
Cautionary Statements And Risk Factors That May Affect Future Results This presentation includes forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such forward-looking statements. The factors that could cause actual results to differ are discussed in the Appendix herein and in NextEra Energy’s and NextEra Energy Partners’ SEC filings. Non-GAAP Financial Information This presentation refers to certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles. Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Appendix herein. 2
NextEra Energy had an outstanding year 2014 Highlights • Adjusted EPS grew 6.6% – Including negative 15 cents per share attributable to NEP launch • Cash flow from operations grew 7.8% – Maintained very strong credit position • Excellent progress on major capital initiatives, including: – (FPL) Riviera Beach and Port Everglades – (FPL) T&D infrastructure enhancements – (NEER) Contracted renewables • Outstanding year for new project origination at Energy Resources – Signed contracts for ~1,400 MW • Moved forward with major pipeline projects – Sabal Trail and Florida Southeast Connection – Mountain Valley • Successful launch of NextEra Energy Partners 3
FPL delivered year-over-year EPS growth of 8 cents in the fourth quarter and 29 cents for the full year Florida Power & Light Results Full Year Fourth Quarter Net Income EPS Net Income EPS ($ MM ) ($ MM ) $286 $0.65 $1,517 $3.45 $0.57 $248 $1,349 $3.16 2013 2014 2013 2014 2013 2014 2013 2014 4
FPL’s earnings growth was primarily driven by investments in the business and an increase in wholesale operations Florida Power & Light EPS Contribution Drivers Regulatory Capital Employed (1) EPS Growth Fourth Full $B Quarter Year 35 FPL – 2013 EPS $0.57 $3.16 $29.3 30 $27.7 Drivers: 25 New investments, incl clauses $0.03 $0.15 20 Wholesale operations $0.04 $0.11 15 10 Other $0.01 $0.03 5 FPL – 2014 EPS $0.65 $3.45 0 2013 2014 Retail Rate Base Other (1) 13 month average; includes retail rate base, wholesale rate base, clause-related investments, and 5 AFUDC projects
Florida’s economy continued to improve in 2014 Florida Economy Florida Unemployment & Florida Case-Shiller Annual Change (2) Labor Participation Rates (1) 12% 65% 20% Oct-14 15% Labor 64% 10% Participation Rate 10% (Right Axis) 63% 5% 8% 62% 0% 6% 61% -5% -10% 60% 4% -15% 59% -20% 2% 58% -25% 0% 57% -30% Jan-07Jan-08Jan-09Jan-10Jan-11Jan-12Jan-13Jan-14 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Florida Consumer Sentiment (4) Florida Building Permits (3) 12,000 95 Dec-14 90 10,000 85 Nov-14 8,000 80 75 6,000 70 4,000 65 60 2,000 55 0 50 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 (1) Source: Bureau of Labor Statistics, Labor participation through Nov 2014, Unemployment through Dec 2014 (2) Source: S&P Dow Jones Indices (FL-MIA MIXR-SA) through October 2014 (3) Three-month moving average; Source: The Census Bureau through November 2014 6 (4) Sources: Bureau of Economic and Business Research through December 2014
FPL’s full year retail sales increased in 2014 Customer Characteristics (through December 2014) Customer Growth (1,3) Retail kWh Sales (Change vs. prior-year period) (Change vs. prior-year quarter) Fourth Full 100 68 Quarter Year 80 UKU Impact Customer Growth & Mix 1.4% 1.2% # of 60 Customers 40 (000’s) + Usage Growth Due to Weather -5.3% 0.0% 20 + Underlying usage growth and other 0.3% 0.1% 0 -20 = Retail Sales Growth -3.7% 1.3% 2007 2008 2009 2010 2011 2012 2013 2014 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Inactive and Low-Usage Customers (2,3) New Meter Connections (2) 10,000 Inactive 10.0% Accounts 310 9.5% 8,000 290 270 9.0% Inactive Low-Usage 6,000 Accounts Customers 250 (000’s) 8.5% 230 4,000 8.0% % of customers using 210 <200 kWh per month (12-month ending) 2,000 7.5% 190 170 7.0% 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 (1) Based on average number of customer accounts for the quarter (2) FPL data, through December 2014 (3) Increases in customers and decreases in inactive accounts reflect the acceleration in customer growth resulting from the automatic disconnection of unknown KW usage (UKU) premises 7
Energy Resources’ 2014 adjusted EPS increased 6 cents over the prior year Energy Resources Results Fourth Quarter Full Year Net Income EPS Net Income EPS ($ MM ) ($ MM ) $985 GAAP: $2.24 $614 $1.39 $1.30 $556 $0.20 $85 2013 2014 2013 2014 2013 2014 2013 2014 Adjusted: Includes $833 $1.89 $178 $0.40 $0.40 $1.83 $173 $780 $0.15 NEP launch impact 2013 2014 2013 2014 2013 2014 2013 2014 Note: See Appendix for reconciliation of adjusted amounts to GAAP amounts 8
Energy Resources’ adjusted EPS growth was largely driven by growth in its contracted renewables portfolio Energy Resources Full Year 2014 Adjusted EPS (1) Contribution Drivers $2.50 (0.04) 0.04 0.01 (0.06) 0.06 (0.09) 0.29 (0.15) $2.00 $1.89 $1.83 $1.50 $1.00 $0.50 $0.00 (2) 2013 New Existing Customer Asset Other Gas Interest NEP 2014 Adjusted EPS Investment Assets Supply Sales Infrastructure Expense Transaction Adjusted EPS & Trading & Restructuring (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts 9 (2) Primarily share dilution
Energy Resources adjusted EBITDA and cash flow from operations increased in 2014 Adjusted Cash Flow from EBITDA (1) Operations $ MM $ MM 2,000 4,000 $1,856 1,900 3,800 1,800 3,600 3,400 1,700 $3,271 1,600 3,200 $2,916 1,500 3,000 $1,441 1,400 2,800 1,300 2,600 2,400 1,200 1,100 2,200 1,000 2,000 2013 2014 2013 2014 (1) See Appendix for definition of Adjusted EBITDA 10
Energy Resources had one of its best ever periods of origination activity for new contracted renewables in 2014 Energy Resources’ Highlights • Development program now well ahead of expectations we shared at our March 2013 Investor Conference • Extremely well positioned to take advantage of end of 2014 extension of PTCs COD Contracts Signed for Wind (MW) 2014 (1) 2013 2015-2016 Delivery United States ~250 ~1,024 ~980 Canada ~125 ~340 ~175 COD Contracts Signed for Solar (MW) 2013 2014 2015-2016 Delivery United States ~280 ~265 ~960 Total ~2,285 MW ~2,115 MW (1) Includes 75 MW of wind brought into service in the first quarter of 2014 and sold in the second quarter of 2014 Note: See Appendix for detail of Energy Resources backlog and incremental wind and solar projects 11
NextEra Energy Partners operated well and delivered results in line with expectations NextEra Energy Partners Results Fourth Quarter 2014 (1) Highlights ($ MM ) • Solid operational performance • Financial results in line with $54 expectations • Announced acquisitions: $32 – Palo Duro acquisition closed on Jan 9, 2015 – Shafter acquisition expected in Q1 2015 Adjusted (2) CAFD (2) EBITDA (1) NEP consolidates 100% of the assets and operations of NEE Operating LP in which both NextEra and NEP LP unitholders hold an ownership interest. 12 (2) See Appendix for definition of Adjusted EBITDA and CAFD and non-GAAP reconciliation
NextEra Energy’s adjusted EPS increased ~7% year-over-year NextEra Energy Results Fourth Quarter EPS Full Year EPS GAAP 2013 2014 Change GAAP 2013 2014 Change FPL $3.16 $3.45 $0.29 FPL $0.57 $0.65 $0.08 Energy Resources $1.30 $2.24 $0.94 Energy Resources $0.20 $1.39 $1.19 Corporate and Other $0.01 ($0.09) ($0.10) Corporate and Other ($0.02) ($0.04) ($0.02) Total $4.47 $5.60 $1.13 Total $0.75 $2.00 $1.25 Adjusted Adjusted 2013 2014 Change 2013 2014 Change FPL $3.16 $3.45 $0.29 FPL $0.57 $0.65 $0.08 Energy Resources $1.83 $1.89 $0.06 Energy Resources $0.40 $0.40 $0.00 Corporate and Other ($0.02) ($0.04) ($0.02) Corporate and Other ($0.02) ($0.02) $0.00 $4.97 $5.30 $0.33 Total $0.95 $1.03 $0.08 Total See Appendix for reconciliation of adjusted amounts to GAAP amounts 13
We expect our operating cash flow to continue to improve NextEra Energy’s Free Cash Flow 2013 2014 2015 Cash Flow from Operations $5.1 B $5.5 B $5.7 B - $6.1 B Capital Expenditures (1) ($6.7) B ($7.0) B ($7.9) B - ($8.5) B Other Investing Activities (2) $0.6 B $0.6 B $1.1 B - $1.5 B Free Cash Flow Before Dividends ($1.0) B ($0.9) B ($1.1) B - ($0.9) B (1) Total capital expenditures represents potential incremental expenditures in addition to already approved projects; includes nuclear fuel and Energy Resources’ capital expenditures from consolidated investments and includes equity investments in unconsolidated joint ventures. Capital expenditure dollars are categorized by the year in which the cash is expected to be spent and not when projects are expected to be placed in service. The figures exclude the capital investments spent prior to 2013. (2) Includes CITC grants 14
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