Earnings Conference Call Third Quarter 2012 October 24, 2012 - PowerPoint PPT Presentation

Earnings Conference Call Third Quarter 2012 October 24, 2012

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 adjusted earnings and 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 and OTTI on certain investments, neither of which can be determined at this time. Neither adjusted earnings nor adjusted EBITDA represents a substitute for net income, as prepared in accordance with GAAP. 2

We are executing well on our 2012 objectives Third Quarter 2012 Highlights Solid financial results despite challenging market conditions • 2012 execution programs remain on track • – At FPL, we continue to invest capital at record rate to deliver superior value to customers – Evidentiary hearing on FPL’s proposed settlement agreement scheduled for November – At Energy Resources, we expect approximately 1,500 MW of new U.S. wind to be in service by year-end Energy Resources continues to add to its record backlog • – Reached agreement to acquire a 165 MW wind project, which is expected to enter service in Q4 2012 – Added first 2013 U.S. wind project to backlog 100 MW project with a 20-year signed PPA, which is not contingent on PTC extension No change to either 2012 or longer-range expectations • 3

FPL delivered solid quarterly earnings growth as a result of continued capital deployment to improve customer value Florida Power & Light Results –Third Quarter Net Income EPS $ MM $0.93 $392 $0.83 $347 2011 2012 2011 2012 4

FPL’s earnings per share grew 10 cents over the comparable quarter, driven by continued investment in the business Florida Power & Light EPS Contribution Drivers EPS Growth Regulatory Capital Invested (1) Third Quarter $B $25.6 FPL – 2011 EPS $0.83 $25.0 $21.7 Drivers: $20.0 New investment growth $0.10 $15.0 All other, net - $10.0 FPL – 2012 EPS $0.93 $5.0 $0.0 Q3 2011 Q3 2012 Retail Rate Base Other (1) Average over the quarter; includes retail rate base, wholesale rate base, clause-related 5 investments, and AFUDC projects

Our modernization projects and nuclear uprates will drive significant fuel savings for FPL customers over the lives of the plants FPL’s Major Capital Projects Nuclear Uprates Modernization Projects Cape Canaveral is 86% St. Lucie Unit 1 and Turkey • • complete and is on time and Point Unit 3 both complete on budget with an expected St. Lucie Unit 2 received • COD in mid-2013 license amendment from Nuclear Regulatory Riviera Beach is 22% complete • Commission (NRC) and is on time and on budget with an expected COD in mid- – Expected to be complete by 2014 year-end Port Everglades modernization Turkey Point Unit 4 will begin • • project is on track with an uprate in fourth quarter expected COD in mid-2016 – Completion expected spring 2013 More than 526 MW of uprates • 6

Economic indicators for Florida are mixed but moving in a positive direction Florida Economy Florida Unemployment Rate (1) Tourism Taxable Sales (2) $B (12 month moving sum) 12% $72 11% $70 10% $68 9% $66 8% $64 7% $62 6% $60 5% $58 4% $56 3% 2% $54 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Florida Consumer Confidence (3) Florida Employment (4) (000’s) 8,500 Actual Projected 95 90 8,000 85 80 7,500 75 7,000 70 65 6,500 60 55 6,000 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 2000 2004 2008 2012 2016 7 (1) Source: Bureau of Labor Statistics, through September 2012 (2) Source: Office of Economic and Demographic Research, through August 2012 (3) Source: UF Bureau of Economic and Business Research, through September 2012 (4) Source: IHS Global Insight, forecast as of September 2012

Florida’s housing market continues to show signs of improvement Florida Housing Market Delinquent Supply of Inventory by Mortgage Delinquencies (1) Mortgages # of Number of Months (2) (%) 8% Months 16 7% 14 Townhouse / 6% Condo 12 5% 10 4% 8 Single - Family 3% 6 4 2% 2 1% 0 0% Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 Change Change Monthly from PY from PY Change Florida Building Permits (4) Case-Shiller Index (3) (%) (%) (%) 60% 40% 4% Impact from 3% 30% 40% Change Homebuyers from 2% 20% Prior Tax Credit 20% 1% Year 10% 0% 0% 0% -1% -10% -20% -2% Monthly -20% -3% Change -40% -30% -4% -60% -40% -5% Jul-04 Jul-06 Jul-08 Jul-10 Jul-12 Jul-04 Jul-06 Jul-08 Jul-10 Jul-12 8 (1) Mortgages past due 90+ days; Source: Mortgage Brokers Association, through Q2 2012 (2) Source: Florida Realtors; data through September 2012 (3) Based on Miami Metropolitan Area (Miami-Dade, Broward & Palm Beach Counties) (4) Three-month average % change from prior year; Source: University of Florida through July 2012

FPL’s volume metrics continue to improve gradually Customer Characteristics – Third Quarter 2012 Retail kWh Sales (1) Customer Growth (2) (Change vs. prior-year quarter) (Change vs. prior-year quarter) 100 Customer Growth 0.7% 80 + Usage Growth Due to Weather 60 -3.2% # of Customers 40 + Underlying Usage Growth, Mix and Other 30 (000’s) 1.6% 20 = Retail Sales Growth -0.9% 0 -20 1Q- 4Q- 3Q- 2Q- 1Q- 4Q- 3Q- 2Q- Inactive and '07 '07 '08 '09 '10 '10 '11 '12 Low-Usage Customers (3) New Service Accounts (3) 320 10.0% 10,000 310 Inactive 300 9.5% Accounts 8,000 290 280 9.0% 6,000 270 Low-Usage Inactive 260 8.5% Customers Accounts (000’s) 250 4,000 % of customers using 240 8.0% <200 kWh per month 230 (12-month ending) 2,000 220 7.5% 210 0 200 7.0% Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 01/07 01/08 01/09 01/10 01/11 01/12 9 (1) Retail sales results in the table exclude the impact of FPL’s change from a fiscal month to a calendar month; actual retail sales decreased 2.8% (2) Based on average number of customer accounts for the quarter (3) FPL data, through September 2012

FPL has signed a settlement with three intervenors; settlement hearing is scheduled for November 19-21 FPL Base Rate Request Proposed Settlement Main components of settlement: • – Effective January 2013 through December 2016 – $378 MM retail base revenue increase effective January 2013 – Allowed regulatory ROE of 10.7% midpoint with a 100 basis point band – Generation Base Rate Adjustment upon COD for modernization projects – Flexibility to amortize remaining surplus depreciation reserve and fossil dismantlement reserve up to $400 MM over four-year term Three major intervenors signed on to settlement agreement: • – Florida Industrial Power Users Group (FIPUG) – South Florida Hospital & Healthcare Association (SFHHA) – Federal Executive Agencies (FEA) Office of Public Counsel (OPC) opposes terms of the settlement • agreement 10

Energy Resources’ adjusted earnings decreased 11 cents over the comparable quarter in 2011 Energy Resources Results– Third Quarter GAAP Adjusted (1) EPS EPS Net Income Net Income $ MM $ MM $204 $0.16 $67 $0.49 $162 $0.38 $44 $0.10 2011 2012 2011 2012 2011 2012 2011 2012 (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts 11

Energy Resources’ adjusted earnings decreased 11 cents over the comparable quarter but we remain comfortable with our full-year outlook Energy Resources Third Quarter Adjusted EPS (1) Contribution Drivers $0.80 $0.06 ($0.21) $0.13 $0.60 $0.49 ($0.06) ($0.03) $0.38 $0.40 $0.20 $0.00 Q3 2011 Customer New Existing Gas Interest, G&A, Q3 2012 Adjusted EPS Supply & Investment Investment Infrastructure and Other (3) Adjusted EPS Trading (2) 12 (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts (2) Includes customer supply businesses and proprietary power and gas trading (3) Includes interest expense, differential membership costs, income tax adjustments, general & administrative expenses, and share dilution