Europe Investor Presentation June 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
A brief summary NextEra Energy – Overview • Above-average growth prospects: – At FPL, investing capital to improve customer value – At Energy Resources, record renewables backlog more than offsets commodity headwinds – At Lone Star Transmission, building a regulated transmission company • Portfolio mix shifting toward more regulated and long-term contracted assets • Well-hedged against short-term commodity price volatility • Maintaining strong financial position and balance sheet Targeting 55% payout ratio in 2014 (up from 49% (1) ), • translating to expected dividend growth of ~10% per year 1) Average dividend payout ratio from 2002-2011 3
NextEra Energy is a premier U.S. power company primarily comprised of two strong businesses… • $28.0 B market capitalization (1) • 41,067 MW in operation • $57 B in total assets • One of the largest U.S. electric utilities • Successful wholesale generator • Vertically integrated, retail rate-regulated • U.S. leader in renewable generation • 4.6 MM customer accounts • Assets in 22 states and Canada • 24,460 MW in operation • 16,607 MW in operation A growing, diversified and financially strong company 1) Market capitalization as of June 8, 2012; source: FactSet 4 Note: All other data as of December 31, 2011
…and is well-positioned to capitalize on today’s market opportunities Attractive Investment Opportunity • Visible growth opportunities at both primary businesses • Aligned with fundamental trends driving the industry – Low exposure to new environmental regulation • Underpinned by excellent fundamentals – Superior operating skills – Strong focus on cost and reliability – Very strong credit and liquidity position • Balanced, moderate risk position • Strong track record of adjusted earnings and dividend growth through numerous commodity cycles Attractive + + Visible Growth Operational Financial Investment Opportunities Excellence Strength Opportunity 5
NextEra Energy has realized substantial and profitable growth while diversifying its asset base North American Presence (1) Top Ten U.S. Capacity Owners (2) (MW) 50,000 NextEra Energy 41,067MW 40,000 30,000 20,000 10,000 0 Cumulative Capital Deployed Revenue (3) ($ B) (Trailing 12 Months Reported; $ B) NextEra Energy $20 $15.3 B $41.3 $34.7 $15 $28.9 $22.8 $10 $3.4 $6.4 $8.2 $10.9$14.4$17.5 $5 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 6 1) NextEra Energy presence as of March 31, 2012 2) As of December 31, 2011; Source: SNL, except for NextEra Energy 3) Source: FactSet data for S&P Electric Utilities Index components for the 12 months ended December 31, 2011
NextEra Energy has one of the strongest balance sheets in the industry… Credit Ratings Utility Credit Ratings (1) NextEra Energy Ratings (2) 30% NextEra S&P Moody's Fitch 26% Energy 24% 25% NextEra Energy 21% A- Baa1 A- Issuer credit rating Stable Outlook Stable Stable 20% 15% Florida Power & Light 15% A Aa3 AA- First mortgage bonds F-1 A-2 P-1 Commercial paper 10% 8% Stable Outlook Stable Stable 6% 5% NextEra Energy Capital Holdings BBB+ Baa1 A- Sr. unsecured debentures 0% A-2 P-2 F-1 Commercial paper A or A- BBB+ BBB BBB- Non- Stable Stable Stable Outlook higher Investment Grade Our credit rating remains solid and supports our business opportunities at our principal subsidiaries 1) Source: Edison Electric Institute: S&P Utility Credit Ratings Distribution – Financial Update Q4 2011 7 2) Reflects latest ratings as published by S&P on April 6, 2012, Moody’s on June 6, 2012 and Fitch on April 27, 2012
…and one of the cleanest emissions profiles among the nation’s top 50 power producers… NextEra Energy 2011 Fuel Mix (1) SO 2 Emissions Rates (MWh) (Lbs/MWh) Hydro 1.0% 16 Solar 0.3% Nuclear 22% 12 Wind 13% Coal 8 6% NextEra Energy 4 Natural Gas Oil 56% 1.0% 0 NO x Emissions Rates CO 2 Emissions Rates (Lbs/MWh) (Lbs/MWh) 4 2,500 2,000 3 NextEra Energy 1,500 NextEra 2 Energy 1,000 1 500 0 0 1) As of December 31, 2011; may not add to 100% due to rounding 8 Source for emissions rates : M.J. Bradley & Associates (2010). "Benchmarking the Top 100 Electric Power Producers in the US“ NextEra Energy data derived from internal calculations based on actual generation (MWhs) by fuel type for 2010
Over an extended period of time, we have been successful in attaining our goal of outperforming our industry NextEra Energy Performance vs. Electric Utility Industry 10-Years Ending December 31, 2011 S&P 500 Electric NextEra Utilities Index Energy 2.2% (1) 6.3% (2) Adjusted EPS Growth (CAGR) 4.9% (3) Dividends per Share Growth (CAGR) 7.0% Total Shareholder Return (4) 128.6% 208.7% 1) Source: Company earnings releases; adjusted EPS as defined by NextEra Energy may not be the same as 9 similarly titled measures of other companies. 2) See Appendix for reconciliation of adjusted amounts to GAAP amounts 3) Source: Bloomberg 4) Source: FactSet; Total shareholder return from December 31, 2001 to December 31, 2011
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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 • 24,460 MW in operation • $10.6 billion in operating revenues FPL Service Territory • $31.8 billion in total assets FPL Power Plants FPL Solar Facilities 1) All data as of December 31, 2011; operating revenues for the 12 months ended December 31, 2011 11
Our approach to the business is founded on the “virtuous circle” Customer Satisfaction Superior Constructive Virtuous Circle Customer Value Regulatory Delivery Environment Strong Financial Position 12
We deliver excellent value to our customers… FPL’s Customer Value Proposition Competitive, Award-Winning Clean + + + Superior Affordable Customer Environmental Reliability Bills Service Profile Florida Electric Utility Residential Bill Comparison of Average Typical Monthly Bills from January – March 2012 (1) Residential 1,000 kWh Bill $170 $150 U.S. Average (2) $130 $124.31 Florida $110 Average $125.70 $90 FPL $70 $94.62 $50 The lowest bill in the state and 24% below the national average 1) Average of typical 1,000 kWh January through March 2012 monthly bill data compiled from the Florida Public Service Commission, Florida Municipal Electric Association, Reedy Creek Improvement District Florida Electric 13 Cooperatives Association and Jacksonville Electric Authority. Figures include state gross receipts tax of about 2.5 percent. Florida Average is the average of all bills depicted. Florida Public Utilities Company operates as one utility; however, they have separate bills for Marianna and Fernandina Beach 2) U.S. Average, as reported by EEI Typical Bills and Average Rates Report, as of January 2012
…built on operational excellence and a superior cost proposition O&M Cost per Retail kWh Fossil Heat Rate Btu per kWh Cents per kWh Btu/ O&M kWh ¢/kWh Industry 10,500 10,388 2.40 Average (2) 2.28 Industry 2.20 10,000 Average (1) 10,045 2.00 9,500 Good Good 1.78 1.80 9,000 1.64 1.60 FPL FPL (1) 8,500 1.40 1.28 8,000 1.20 7,803 1.00 7,500 1) Industry average source is Ventix (FERC Form 1) and FPL is O&M as reported annually in the 10-K. 14 2) Source: Platts & Ventix – fossil plants in the U.S. excluding FPL.
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