Earnings Conference Call Third Quarter 2016 October 31, 2016 - PowerPoint PPT Presentation

Earnings Conference Call Third Quarter 2016 October 31, 2016

Cautionary Statements And Risk Factors That May Affect Future Results This presentation includes forward-looking statements within the meaning of the federal securities laws. 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 and NextEra Energy Partners delivered strong financial results in the third quarter Third Quarter 2016 Highlights • NEE grew adjusted EPS ~9% over the prior-year comparable quarter • Excellent continued execution at FPL: – Proposed settlement agreement in 2016 base rate proceeding – Received Florida PSC approval to acquire and phase out the coal-fired Indiantown Cogeneration facility – Major capital initiatives on track • Strong progress on development program at Energy Resources: – Backlog of renewables and natural gas pipeline projects remain on track – Signed ~600 MW of new projects for post-2016 delivery since the last call – Moving forward on ~1,300 MW of additional repowering opportunities • NEP delivered strong third quarter results and continued growth – Grew distributions per unit by 26% from prior-year comparable period – On track to deliver continued strong unitholder distribution growth 3

FPL delivered strong earnings growth during the quarter Florida Power & Light Results – Third Quarter Net Income EPS ($ MM) $515 $1.11 $489 $1.07 2015 2016 2015 2016 4

The primary driver of FPL’s earnings growth was continued investment in the business Florida Power & Light EPS Contribution Drivers Regulatory Capital Employed (1) EPS Growth Third $B Quarter 40.0 $34.2 FPL – 2015 EPS 35.0 $1.07 $31.5 30.0 Drivers: 25.0 New Investments 0.07 20.0 15.0 Share Dilution and Other (0.03) 10.0 FPL – 2016 EPS $1.11 5.0 0.0 Q3 2015 Q3 2016 Retail Rate Base Other (1) Average over the quarter; includes retail rate base, wholesale rate base, clause-related investments, and 5 AFUDC projects

Customer growth and strong weather effects drove higher retail sales at FPL Customer Characteristics (through September 2016) Customer Growth (1,3) Retail kWh Sales (Change vs. prior-year quarter) (Change vs. prior-year quarter) 100 80 67 Customer Growth & Mix 1.4% UKU Impact # of 60 Customers + Usage Change Due to Weather 3.2% (000’s) 40 20 + Underlying Usage Change and Other (0.6%) 0 = Retail Sales Change 4.0% -20 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Inactive and Low-Usage Customers (2,3) Florida Unemployment (4) 12% 350 10% Inactive 10% Accounts 300 8% 9% 250 Inactive Low-Usage 6% Accounts Sep-16 Customers (000’s) 200 4% 8% % of customers using <200 kWh per month 150 2% (12-month ending) 100 7% 0% Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 (1) Based on average number of customer accounts for the quarter (2) FPL data, through September 2016 (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 6 (4) Source: Bureau of Labor Statistics through September 2016

Proposed settlement agreement in 2016 base rate proceeding FPL Base Rate Request Proposed Settlement • Key elements of proposed settlement effective January 2017 through December 2020: – Retail base revenue increases according to the following schedule: $400 MM beginning January 2017 $211 MM beginning January 2018 $200 MM expected in mid-2019 when the Okeechobee Clean Energy Center achieves COD – Allowed regulatory ROE of 10.55% with a range of 9.60% to 11.60% – Solar Base Rate Adjustment upon COD for up to 300 MW per year – Flexibility to amortize up to $1.0 B of depreciation reserve surplus plus any reserve amount remaining at the end of 2016 under the 2012 rate agreement • Three intervenors signed on to the settlement agreement: – Office of Public Counsel – South Florida Hospital & Healthcare Association – Florida Retail Federation 7

Energy Resources’ adjusted EPS increased 11 cents from the comparable prior-year quarter Energy Resources Results (1) – Third Quarter GAAP Adjusted EPS Net Income Net Income EPS ($ MM) ($ MM) $379 $0.83 $307 $0.66 $279 $0.60 $225 $0.49 2016 2015 2015 2016 2015 2016 2015 2016 (1) Attributable to NEE, see Appendix for reconciliation of adjusted amounts to GAAP amounts 8

Energy Resources’ adjusted EPS growth was driven primarily by new investments Energy Resources Third Quarter Adjusted EPS (1) Contribution Drivers $0.90 $0.80 $0.27 ($0.09) ($0.02) $0.70 ($0.05) $0.60 $0.60 $0.49 $0.50 $0.40 $0.14 Renewables $0.13 Natural gas pipelines $0.30 $0.20 $0.10 $0.00 Q3 2015 New Gas Existing Corporate G&A, Q3 2016 Adjusted EPS Investment Infrastructure Assets Share Dilution & Adjusted EPS (2) Other (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts (2) Includes charges related to interest expense, income taxes, and rounding 9

We continue to have an outstanding opportunity set for new renewables growth Energy Resources Development Program (1) • Announcing ~2 GW of renewables projects added to backlog – Signed contracts for ~600 MW of new wind projects since last call ~100 MW for delivery in 2017 – 2018 ~500 MW post – 2018 – Additional repowering opportunities for ~1,300 MW of existing U.S. wind • 2017 – 2018 development program: Signed & Additional Current Repowering Forecast Expectations 2017-2018 1,853 – 3,253 2,400 – 3,800 547 (2) U.S. Wind 0 – 300 0 – 300 Canadian Wind 0 125 – 1,025 400 – 1,300 U.S. Solar 275 (3) 1,978 – 4,578 MW 2,800 – 5,400 MW Total 822 MW Total w/ Repowering 2,422 MW (4) (1) See Appendix for detail of Energy Resources’ wind and solar development projects included in backlog (2) Excludes 500 MW signed for post-2018 delivery (3) Excludes 125 MW signed for post-2018 delivery, includes ~60 MW distributed generation 10 (4) Includes ~1,600 MW of repowering projects for completion in 2017-2018

NEP’s third quarter results were driven by portfolio additions over the last year NextEra Energy Partners – Third Quarter Drivers (1) Adjusted EBITDA CAFD ($ MM) ($ MM) $200 $90 ($10) $11 $75 ($1) $174 $180 $80 $160 $11 $70 ($10) $140 $60 $41 ($6) $51 $120 $50 $99 $100 $40 $80 $30 $60 $20 $40 $15 $10 $20 $0 $0 (2) (2) Q3 2015 New Existing IDR Other Q3 2016 Q3 2015 New Existing IDR Other Q3 2016 Adjusted Projects Projects Fees Adjusted CAFD Projects Projects Fees CAFD EBITDA 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; See Appendix for non-GAAP reconciliation (2) Before accounting for debt service, cash available for distribution was $78 MM in Q3 2015 and $129 MM in 11 Q3 2016

NextEra Energy’s adjusted earnings per share increased ~9% versus the prior-year comparable quarter NextEra Energy EPS Summary (1) – Third Quarter GAAP 2015 2016 Change FPL $1.07 $1.11 $0.04 Energy Resources $0.83 $0.66 ($0.17) Corporate and Other $0.03 ($0.15) ($0.18) Total $1.93 $1.62 ($0.31) Adjusted 2015 2016 Change FPL $1.07 $1.11 $0.04 Energy Resources $0.49 $0.60 $0.11 Corporate and Other $0.04 $0.03 ($0.01) $1.60 $1.74 $0.14 Total (1) Attributable to NEE, see Appendix for reconciliation of adjusted amounts to GAAP amounts 12

NextEra Energy has announced proposed transactions with EFH, TTHC and OMI that would result in NextEra Energy owning 100% of Oncor Oncor Transaction Overview • On September 19th, received U.S. Bankruptcy Court approval for EFH to enter into merger agreements – Achieved additional creditor support for EFH merger agreement as well • Reached agreement for an affiliate to merge with Texas Transmission Holdings Corporation, including its ~20% indirect interest in Oncor for merger consideration of ~$2.4 B (1) • Reached agreement to acquire the remaining 0.22% ownership interest in Oncor currently held by Oncor Management Investment, LLC for ~$27 million • Total transaction consideration implies an enterprise value for Oncor of $18.7 B • NextEra Energy expects the accretion from these transactions to enable it to grow at or near the top end of its previously announced 6 – 8% per year adjusted EPS growth rate through 2018, off a 2014 base (1) Subject to adjustment 13