Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Shareholder Meeting (May 2012)
29 slides from Nextera Energy's shareholder meeting presentation, May 25, 2012
Slide 1: Welcome Shareholders
Welcome Shareholders Jim Robo President and Chief Operating Officer May 25, 2012
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
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 f
Slide 3: Agenda
Agenda • Company overview • 2011 results • Looking forward 3
Slide 4: NextEra Energy has generated substantial and profitable growth for a decade
NextEra Energy has generated substantial and profitable growth for a decade FPL Cumulative Capital Employed(1) Adjusted Earnings Per Share(2) Energy Resources Cumulative Wind Growth Dividends Per Share(3) (MW) (4) 1) Includes retail rate base, wholesale rate base, clause-related investments, and AFU
Slide 5: Outperforming our industry over an extended period of time
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
Slide 6: FPL delivers the best customer value proposition in Florida
FPL contributes to profitable growth by delivering the best customer value proposition in Florida FPL Customer Value Proposition ¢/kWh O&M ¢/kWh: 1996-2011 Fossil Generation Fuel Efficiency 2.50 2.25 2.00 Industry Average (16%) 1.75 1.50 FPL 1.25 1.00 SAIDI: System Average (1) 2011 Residential Inter
Slide 7: NextEra Energy Resources built into a Fortune 500-size company
We have built NextEra Energy Resources into a Fortune 500-size company essentially from the ground up Energy Resources Portfolio(1) • Fortune 500-sized company headquartered in Florida – $4.5 B in operating revenues • U.S. leader in renewable generation – Owns and operates over 8,800 wind turbines –
Slide 8: One of the cleanest emissions profiles in the nation
NextEra Energy has one of the cleanest emissions profiles in the nation NextEra Energy 2011 Fuel Mix(1) SO2 Emissions Rates Hydro 1.0% (MWh) (Lbs/MWh) Solar 0.3% Nuclear 22% Wind 13% Coal 6% NextEra Energy Natural Gas Oil 1.0% 56% NOx Emissions Rates CO2 Emissions Rates (Lbs/MWh) (Lbs/MWh) NextEra E
Slide 9: One of the higher credit ratings in the U.S. power industry
NextEra Energy has one of the higher credit ratings in the U.S. power industry Credit Ratings Utility Credit Ratings(1) NextEra Energy Ratings(2) NextEra S&P Moody's Fitch Energy NextEra Energy Issuer credit rating A- Baa1 A- Outlook Stable Stable Stable Florida Power & Light First mortgage bonds A
Slide 10: Agenda
Agenda • Company overview • 2011 results • Looking forward 10
Slide 11: NextEra Energy delivered a strong performance in 2011
NextEra Energy delivered a strong performance in 2011 2011 Highlights • Record adjusted earnings Adjusted Adjusted of $1.84 B Earnings(1) EPS(1) ($ millions) • 22% total shareholder return, outperforming the S&P 500 Electric Utilities Index and the S&P 500 • Raised a record $7.2 B of capital includi
Slide 12: FPL had strong performance across the board in 2011
FPL had strong performance across the board in 2011 2011 Highlights – Florida Power & Light • Best-ever safety performance • Earned an 11.0% ROE and grew net income by 13.0% vs. 2010 • Top-decile performance in O&M(1) and significantly better than the industry average • Industry top-quartile perform
Slide 13: Energy Resources continued strong growth in wind and solar
Energy Resources continued its strong track record of growth in wind and solar 2011 Highlights – NextEra Energy Resources • Entered into contracts for nearly 2,200 megawatts of wind and solar energy – Includes U.S. and Canadian projects – Projects went into service in 2011 or are expected to be plac
Slide 14: Our total return to shareholders was strong in 2011
Our total return to shareholders was strong in 2011 NextEra Energy 2011 Total Shareholder Return 25% 21.9% 21.1% 20% Total 15% Shareholder Return 10% (%) 5% 2.1% 0% NextEra Energy S&P 500 Electric S&P 500 Utilities Index 14 Source: FactSet; Total Shareholder Return from December 31, 2010 to December
Slide 15: Our performance so far this year is very strong as well
Our performance so far this year is very strong as well NextEra Energy YTD 2012 Total Shareholder Return 10% 8.9% 8% 5.6% Total 6% Shareholder Return 4% (%) 2% 0% ‐2% ‐0.7% NextEra Energy S&P 500 Electric S&P 500 Utilities Index 15 Source: FactSet; Total Shareholder Return from December 31, 2011 to
Slide 16: Fortune named us the most admired utility for the 6th year
In March 2012, Fortune named us the most admired utility for the 6th year in a row 2007 2008 2009 2010 2011 2012 NextEra Energy’s accomplishments are getting noticed 16
Slide 17: Agenda
Agenda • Company overview • 2011 results • Looking forward 17
Slide 18: Growth driven by significant capital investments
NextEra Energy’s growth will continue to be driven by significant capital investments NextEra Energy Growth Outlook • FPL has approximately $15 B of capital planned for deployment through 2014(1) – More than $6 B of major generation and advanced metering projects – Retail rate base is estimated to g
Slide 19: Business mix shifting to regulated and long-term contracted by 2014
We expect NextEra Energy’s business mix to continue to shift to a more regulated and long-term contracted business by 2014 Adjusted EBITDA(1) from Adjusted Earnings from Regulated and Long-Term Regulated Businesses Contracted Operations 100% 100% 84% 78% 80% 80% 65% 58% 60% 60% 40% 40% 20% 20% 0% 0%
Slide 20: Adjusted Earnings Per Share Expectations
NextEra Energy’s Adjusted Earnings Per Share Expectations 2012 $4.35 - $4.65 2014 $5.05 - $5.65 NextEra Energy’s adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, and net other than tempor
Slide 21: NextEra Energy is positioned well for further growth
We believe NextEra Energy is positioned well for further growth Summary • FPL offers the best customer value proposition in the state and one of the best in the nation – Lowest typical bill in Florida and 25% below national average – Reliability that is among the best in the nation – Award-winning c
Slide 22: NextEra Energy logo
NEXT@ra’ ENERGY &
Slide 23: Appendix
23 Appendix NExTera’ ENERGY @
Slide 24: Reconciliation of Adjusted Earnings to GAAP Net Income (2010)
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Full Year Ended December 31, 2010) Florida Pow er Energy Corporate & (m illions, except per share am ounts) & Light Resources Other NextEra Energy, Inc. Net Income (Loss) $ 945 $ 980 $ 32 $ 1,957 Adjustments, net of income taxes: Net unreali
Slide 25: Reconciliation of Adjusted Earnings to GAAP Net Income (2011)
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Full Year Ended December 31, 2011) Florida Pow er Energy Corporate & (m illions, except per share am ounts) & Light Resources Other NextEra Energy, Inc. Net Income (Loss) $ 1,068 $ 774 $ 81 $ 1,923 Adjustments, net of income taxes: Net unrea
Slide 26: Reconciliation of Adjusted EPS to EPS
NextEra Energy, Inc. Reconciliation of Adjusted Earnings Per Share to Earnings Per Share 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Earnings Per Share (assuming dilution) $2.34 $1.38 $2.53 $2.48 $2.34 $3.23 $3.27 $4.07 $3.97 $4.74 $4.59 Adjustments: Net unrealized mark-to-market (gains)
Slide 27: Reconciliation of 2011 Adjusted EBITDA to Net Income
Reconciliation of 2011 Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Other (Adjusted EBITDA) to Net Income (Full-Year Ended December 31, 2011) GAAP Adjustments Adjusted Net income $1,923 ($86) (1) $1,837 Add back interest 1,034 0 1,034 Add back income taxes 529 (57) (1) 47
Slide 28: Cautionary Statement And Risk Factors That May Affect Future Results
Cautionary Statement And Risk Factors That May Affect Future Results This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, bu
Slide 29: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) risks to NextEra Energy and FPL's retail businesses of compromise of sensitive customer data; risks to NextEra Energy and FPL of volatility in the market values of derivative instruments and limited liquidity in OTC markets