Tokyo Investor Presentation February 2013
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 continues to focus on executing against its strategic objectives… NextEra Energy – Overview Above-average growth prospects: • – At FPL, investing capital to improve customer value – At Energy Resources, 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 relative to adjusted earnings in • 2014 (up from 49% (1) ), translating to expected dividend growth of ~10% per year (1) Average dividend payout ratio from 2002-2011 3
…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 4
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) 70,000 60,000 NextEra Energy 50,000 42,179 MW 40,000 30,000 20,000 10,000 0 Cumulative Capital Deployed Revenue (3) ($ B) ($ B) NextEra Energy $50.8 $20 $15.3 B $41.3 $34.7 $15 $28.9 $22.8 $10 $8.2 $10.9 $14.4 $17.5 $5 $6.4 $3.4 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 5 (1) NextEra Energy presence as of December 31, 2012 (2) As of January 16, 2013; Source: SNL, except for NextEra Energy as of December 31, 2012 (3) Source: FactSet data for S&P Electric Utilities Index components for the 12 months ended December 31, 2011
NextEra Energy is a premier U.S. power company comprised primarily of two strong businesses supported by a common platform… • $30.5 B market capitalization (1) 42,179 MW in operation • • $64 B in total assets • One of the largest U.S. electric utilities • U.S. leader in renewable generation • 4.6 MM customer accounts • Assets in 24 states and Canada • 24,057 MW in operation • 18,122 MW in operation Engineering & Construction Supply Chain Nuclear Generation Non-Nuclear Generation 6 (1) Market capitalization as of February 6, 2013; source: FactSet Note: All other data as of December 31, 2012
…built on a foundation of operational excellence and financial strength… SAIDI: System Average Interruption Duration Index (1) Utility Credit Ratings (2) Minutes Good 150 30% 28% FL Industry Average 125 NextEra Energy 100 FPL 25% 23% 21% 75 20% 50 16% 25 '06 '07 '08 '09 '10 '11 15% Fossil Reliability – EFOR (3) 10% 10% Industry Average 7% 8% 5% 5% 6% Good 4% NextEra Energy 0% 2% A or A- BBB+ BBB BBB- Non- higher Investment 0% Grade '06 '07 '08 '09 '10 '11 '12 (1) SAIDI represents the number of minutes the average customer is without power during that time period 7 Source: FPL as reported to FL PSC; FL Industry Average consists of data from TECO, PEF, and Gulf as reported to FL PSC (2) Source: Edison Electric Institute: S&P Utility Credit Ratings Distribution – Financial Update Q2 2012 (3) Equivalent Forced Outage Rate; NextEra EFOR represents FPL Fossil and NEER TH&S; Industry Source: NERC (Large Fossil Generating Peer Companies).
…with one of the cleanest emissions profiles among the nation’s top 50 power producers… NextEra Energy 2012 Fuel Mix (1) SO 2 Emissions Rates (MW) (Lbs/MWh) Hydro 1% 9.0 Solar Nuclear 1% 7.5 14% 6.0 Wind 24% 4.5 NextEra Natural Gas 3.0 Energy 55% Coal 1.5 2% Oil 0.0 3% NO x Emissions Rates CO 2 Emissions Rates (Lbs/MWh) (Lbs/MWh) 3.5 2,500 3.0 2,000 2.5 NextEra Energy 1,500 2.0 NextEra Energy 1.5 1,000 1.0 500 0.5 0.0 0 8 (1) Megawatt capacity as of December 31, 2012; may not add to 100% due to rounding Source for emissions rates: MJ Bradley & Associates 2012 report “Benchmarking Air Emissions of the Largest 100 Power Producers in the United States”
…and a proven track record of building businesses and delivering growth FPL Cumulative Capital Employed (1) Adjusted Earnings Per Share (2) $25.1 $3.84 $4.05 $4.30 $4.39 $4.57 $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 '12 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 Energy Resources Cumulative Wind Growth Dividends Per Share (3) (MW) 10,057 $1.16$1.20$1.30$1.42$1.50$1.64$1.78$1.89$2.00$2.20$2.40 7,5448,2988,569 6,375 5,077 2,7192,7583,1924,016 1,745 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 9 (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) Split-adjusted
Over an extended period of time, we have been successful in attaining our goal of outperforming our industry NextEra Energy Performance vs. Industry 10-Year CAGR Ending December 31, 2012 S&P 500 Utilities NextEra S&P 500 Index Energy Adjusted EPS (2001-2011) (1) 8.0% 0.7% 6.3% (2) Dividend per Share (3) 7.4% 5.4% 7.5% Total Shareholder Return (4) 98.6% 169.7% 227.8% (1) Source: Bloomberg and NextEra Energy company filings; adjusted EPS as defined by NextEra Energy may not be the same as similarly titled measures of other companies. 10 (2) See Appendix for reconciliation of adjusted amounts to GAAP amounts (3) Source: Bloomberg; Dividend per Share 10-year CAGR from 2002 to 2012 (4) Source: FactSet; Total shareholder return from December 31, 2002 to December 31, 2012
NextEra Energy delivered solid financial results in 2012 NextEra Energy Year in Review At FPL: • – Continued to deliver outstanding customer value – Continued execution on major capital projects – Achieved satisfactory outcome of base rate case At Energy Resources: • – Moved forward with record renewables backlog Added roughly 1,500 MW of U.S. wind in 2012 On track to add approximately 600 MW of Canadian wind by the end of 2015, with the majority in 2014 On track to add roughly 900 MW of solar by the end of 2016 At Lone Star Transmission: • – On track to achieve Q1 2013 COD target 11
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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 • 24,057 MW in operation • $10.1 billion in operating revenues • $34.9 billion in total assets 13 (1) All data as of December 31, 2012; operating revenues for the 12 months ended December 31, 2012
Our strategy at FPL is founded on the “virtuous circle” Customer Satisfaction Superior Constructive Virtuous Circle Customer Value Regulatory Delivery Environment Strong Financial Position 14
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