May/June 2012 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 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
NextEra Energy is comprised of two strong businesses built on a common platform… A premier regulated utility… …and a diversified, competitive power producer Engineering & Construction Supply Chain Nuclear Generation Non-nuclear Generation 3
Today our position is strong and our outlook is exciting… FPL Energy Resources Increasing capital… Largest ever renewable backlog… $ B • ~1,300 MW of U.S. wind $30.0 • ~600 MW of Canadian wind $25.0 $20.0 • ~900 MW of solar $15.0 • All expected to go into service $10.0 through 2016 $5.0 $0.0 2011 2012 E 2013 E 2014 E (1) Retail Rate Base Other …drives growth through 2014 and …without driving up customer bills beyond $109 Hedge roll-off + PTC roll-off $95 - $97 Average offset by Residential 1,000 kWh Monthly Bill PPA escalators + Contributions from new assets in 2013-2016 2013E 2006 (1) Includes wholesale rate base, clause-related investments, and AFUDC projects 4
…built on a foundation of operational excellence and financial strength… SAIDI: System Average Interruption Duration Index (1) Utility Credit Ratings (2) Minutes Good 175 150 Industry Average 125 NextEra 100 Energy FPL 75 50 25 '03 '04 '05 '06 '07 '08 '09 '10 '11 Fossil Reliability – EFOR (3) 10% Industry Average Good 8% 6% 4% NextEra Energy 2% 0% '03 '04 '05 '06 '07 '08 '09 '10 '11 (1) SAIDI represents the number of minutes the average customer is without power during that time period Source: FPL as reported to FL PSC; Industry Average from EEI Distribution Reliability Survey (2) Source: Edison Electric Institute: S&P Utility Credit Ratings Distribution – Financial Update Q4 2011; percentages may not add to 100% due to rounding; NextEra Energy S&P Rating as of January 1, 2011 (3) Equivalent Forced Outage Rate; NextEra EFOR represents FPL Fossil and NEER TH&S; Industry Source: 5 NERC (Large Fossil Generating Peer Companies).
…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% Solar 16 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 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 6 fuel type for 2010
…and a proven track record of building businesses and delivering growth FPL Cumulative Capital Employed (1) Adjusted Earnings Per Share (2) $3.84 $4.05 $4.30 $4.39 $21.7 $10.0 $10.8 $11.6 $12.3 $13.8 $14.8 $15.9 $17.7 $19.5 $3.49 $3.04 $2.41 $2.48 $2.49 $2.63 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 Energy Resources Dividends Per Share (3) Cumulative Wind Growth (MW) (4) $2.40 8,298 8,569 $2.20 7,544 $1.16 $1.20 $1.30 $1.42 $1.50 $1.64 $1.78 $1.89 $2.00 6,375 5,077 4,016 2,719 2,758 3,192 1,745 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 (1) Includes retail rate base, wholesale rate base, clause-related investments, and AFUDC projects (2) See Appendix for reconciliation of adjusted amounts to GAAP amounts (3) Annualized split-adjusted quarterly dividend; dividend declarations are subject to the discretion of the board of directors of NextEra Energy 7 (4) Projected based upon dividend of $0.60 paid on March 15, 2012
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 Adjusted EPS Growth (CAGR) 2.2% (1) 6.3% (2) Dividends per Share Growth (CAGR) 4.9% (3) 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 similarly titled measures of other companies. 2) See Appendix for reconciliation of adjusted amounts to GAAP amounts 3) Source: Bloomberg 8 4) Source: FactSet; Total shareholder return from December 31, 2001 to December 31, 2011
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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 10
We deliver excellent value 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 – December 2011 (1) $170 Residential 1,000 kWh Bill $150 U.S. Average (2) $130 $128.11 $110 Florida Average $126.01 $90 FPL $70 $96.29 $50 The lowest bill in the state and 25% below the national average (1) Bill comparisons for Florida Power & Light, Tampa Electric, Gulf Power, Progress Energy Florida, and Florida Public Utilities as reported by the Florida Public Service Commission. Bill comparisons for municipal utilities and electric cooperatives as reported by Florida Municipal Electric Association, Reedy Creek Improvement District and Jacksonville Electric Authority (2) U.S. Average, as reported by EEI Typical Bills and Average Rates Report for Summer 2011, published Nov. 2011 11
Value delivery is built on operational excellence and a superior cost proposition FPL O&M Per Retail kWh 2.50 2.28¢ 2.25 2.00 (cents/kWh) Industry Average 1.75 1.64¢ 1.50 FPL (1) 1.25 1.00 (1) Sources: Ventyx (FERC Form 1) and FPL O&M reported annually in the 10-K; Note: 1) Excludes storm recovery 12 costs: $155 MM 2005 and $151 MM 2006; excludes storm disallowance: $52 MM 2006
At FPL, we are investing heavily to improve long-term customer value without driving up customer bills FPL’s Capital Expenditures (1) $4.0 $3.0 $ B $2.0 $1.0 $- 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E FPL’s Major Capital Projects Estimated Approx. Fuel Est. PSC Project Name Approved Recovery In-Service Size (MW) Type Cost ($ B) 2011 1,220 West County Energy Center 3 Gas $0.9 Yes Base $3.1 (2) 2011-2013 490 Nuclear Uprates Nuclear Yes Clause 2013 1,210 Cape Canaveral Modernization Gas $1.0 Yes Base 2014 1,210 Riviera Beach Modernization Gas $1.3 Yes Base 2009-2013 N/A Energy Smart Florida N/A $0.9 Yes (3) Base 2016 1,280 Port Everglades Modernization Gas $1.2 Yes Base (1) 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; forecasted cap ex for years 2012-2014 is based on 3/31/12 10-Q filing (2) Cost range estimated to be between $2.95 - $3.15 billion (3) Revenue requirement impact of ESF project through 2010 approved as part of the 2010 base rate decision 13
FPL submitted its formal base rate filing on March 19 th FPL Base Rate Request • Summary of request: – $516.5 MM base revenue increase effective January 2, 2013 – $173.9 MM step increase coinciding with COD of the Cape Canaveral modernization – Three major drivers: Cape Canaveral cost recovery Less surplus depreciation available to amortize Re-set ROE to 11.25% plus 25 bps performance adder Late January 2, March 19 June Q4 July August 2013 Intervenor, Final Technical File formal Quality of New rates staff, and decision by rate request hearings service effective FPL rebuttal PSC (testimony; hearings testimony expected detailed data schedules) 14
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