Entergy Corporation · NYSE:ETR
Entergy — 41st Edison Electric Institute Financial Conference 2006
18 slides from Entergy's conference presentation, Nov 3, 2006
Slide 1: Edison Electric Institute Financial Conference
415 Edison Electric Institute Financial Conference November 2006 2 rntery
Slide 2: Forward-looking statements
In his presentation and fom time te time, Energy Corporation makes statements conceming ts expectations, bell, plans, objecthes, goals Sateges, and itue everts or perbrmanoe. Such iaemerts ae "bruariooking statements” wibin the meaning ofthe Pate Secures Ligation Retr At of 1005. Athough Entergy Cor
Slide 3: Geographic Scale
Geographic Scale Enteray's Businesses Enteray Nuclese 3000 MW electric AS ponvilty units ovmed at generating capacity + 2 Targest US. nuclear generstor + 227 milion customers + $10billion revenues 1 14000 employees * Selectric utlites (6 regulators) + d contiguous states ~ Arkareas, Louisiana, Missi
Slide 4: Strategy
Strategy © Pursue rate structures that ensure incremental Capital investments are reflected in rates timely © Reduce operating costs through Entergy Continuous Improvement to eam incentives Execute the Generation Supply Plan to diversify and modemize Entergy's fleet Financial Ce eC Other EPS 7 — " "
Slide 5: Impact of Two Storms A Different Future
Impact of Two Storms A Different Future SENS | Estnaedrestcrstion sosteouromer outages GEE tundra or | Feder funding i placefer ifeardy improved levee earn flood protection | protein xem <i reparedeure | Wry Corpo Ener oer orn ss Pure SE TEIETEREETEEEED ae Toe2e | Transmission sbatstons adines od re
Slide 6: Investing and Financing Process
Investing and Financing Process = capacity @ | Assess svsems | Fey Needforresources | * S2se Load 1 Load Following Evaluate options | = 2 @ | tor meeting system | = P's needs (RFP process) | = Fra ) Obtain regulatory | 7 Foserste approval for recovery | © rust 1 On sheet @ | Evauaetinancing |} Sp ch
Slide 7: Strategy
Strategy Operate safe, secure, low-cost plants that exceed industry average performance Execute transactions that drive growth, including both plant acquisitions and EPS Os? 088 (130 105 1.32 management service agreements fx Aiport’ Continue to improve productivity through Gtk fa ek rr Yr Yr operati
Slide 8: New Nuclear Development
Today Standardized designs Combined COL ESP process Wit) comsmission/commumity support, federal incenbyes, EPC contracts, modutsr tabricaton, ie history of the pastneed not be repeated “stead of saying, ‘Nol in my back yard,‘ Giese communities are saying, ‘In our back yard now! + Missiszippi Governo
Slide 9: Distributions to Owners
lan ciail A Distributions to Owne: Target 60% ie Se tae dividend payout over time ‘annually and/or repurchase up to $500M of shares annually Risk-Adjusted With Flexibility to Manage Risk ROIC Credit Ratings/Metrics 06-10 Opportunit 96-10 Opportunity 50-55% Gross Debt to Capital” 10% Sustain BBB/Baa
Slide 10: Operational EPS
Operational EPS 04-07E Guidance and Aspiration Opportunity ‘Aspraton Operational Return ¢ on n Invested Capital 04.05 and Aspiration Opportunity; % 10% 4.40 380 04 05 O6E O7E = OBE-10E 04 05 O6E O7E ‘As: Reported ‘As: Reported 38 499 a7eso 5.40670 73 72 Gross Debt to Capital Ratio 04.05 and Aspirati
Slide 11: Projected Cash Available for Capital Deployment
Projected Cash Available for Capital Deployment O7E-09E; $B a3 (6.1) 26 = | a NetGashFlow Planned Capital Dividends = Gapital Structure 07-09 Gash from Operating Expenditures and Available Activities Other
Slide 12: Projected Capital Expenditures
Projected Capital Expenditures O7E-09E; $B Utility? Parent’ Other Entergy Nuclear Total Maintenance Capital Investing Capital 42 23 19 10 52 Investing Capital - Preliminary O7E-09E; % of Total Potential Portfolio Transformation* Generation (Existing Fleet) Environmental Transmission Business Functio
Slide 13: Supply requirements and decisions
} to] —— OGE supply requirements; GW, % of peak New Resource GW 4% of Peak ‘Supply Decisions: 24 120 ve Requirement 20 100 16 0 2 60 a 40 4 20 0 20 40 60 20 100 % of Annual Hours Load Is Forecasted to Exceed Separate Operational Decisions from Regulatory/Financial Decisions Regulatory Recovery Decis
Slide 14: tin of MyHomeney investment
tin of MyHomeney investment
Slide 15: Earnings: Reconciliation of GAAP to Non-GAAP Measures
Tabled: Earnings. Reconciliation of GAAP To Non GAAP Measures 2008 and 2007 Guidance (Sper share) Consolidated As-Reported excluding EnterayNewOrleans [3] Less Special Heras Uslty, Parent 6 Other Total Utility, Parent & Other Competitive Businesses Enteray Nuclear Energy Commodity Services ‘2008 Gai
Slide 16: Forecasted Cash Available
Tabled: Folested Cash Avaliable Reconcilstion of GAAPto Non-GAAP Mescures 2007-2008 {Sin billionay Nef cash flowprovided by operating activities Less Planned capital exenditures Preferred dividends Ctherimesting cash flove subtotad Common dividends Capital structure changes including net sare repurc
Slide 17: Earnings, Return on Invested Capital and Dividend Payout
Tabled: Earninas, Raturn on hvedied Capita and Diidand Payout Reconcilstion of GAAPta Non-GAAP Measures 2on4-2006 i$ milionsy mos 2008 Consolidated As-Reported Eaminas fal se Preferred Dividends 24 2 Tax Eifeded Interest Expense 252 ‘As-Reported Earnings (inehiding preferred dividends and ‘tac affec
Slide 18: Earnings, Return on Invested Capital and Dividend Payout (continued)
‘Table 4 (continued). Eamings, Retum on Invested Capital and Dividend Payout Reconciliation of GAAP to Non-GAAP Measures 2004-2005 Average Number of Common Shares Outstandina - Diluted fe (in $ per share) Consolidated As-Reported Earninas (a) farce Consolidated Operational Eaminas (hi easter ($ in m
Entergy — 41st Edison Electric Institute Financial Conference 2006 on 6ix