NextEra Energy, Inc. · NYSE:NEE
NextEra Energy — Non-Deal Roadshow (May 2011)
53 slides from NextEra Energy's roadshow presentation, May 2, 2011
Slide 1: Investor Meetings
Investor Meetings Armando Pimentel Executive Vice President and CFO May 2, 2011
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: Non-GAAP Financial Information
Non-GAAP Financial Information This presentation refers to adjusted earnings, which are not financial measurements prepared in accordance with GAAP. Adjusted earnings, as defined by NextEra Energy, represent net income before the mark-to-market effects of non-qualifying hedges and the net effect of
Slide 4: NextEra Energy is a premier U.S. power company comprised of three strong businesses
NextEra Energy is a premier U.S. power company comprised of three strong businesses • $23.6 B market capitalization(1) • 42,588 MW in operation • $53 B in total assets • One of the largest U.S. electric • Successful wholesale generator • Regulated utility in Texas utilities • U.S. leader in renewabl
Slide 5: NextEra Energy has realized substantial and profitable growth while diversifying its asset base
NextEra Energy has realized substantial and profitable growth while diversifying its asset base North American Presence Generation Mix(1) Solar <1% Nuclear Hydro 1% 13% Wind 19% Combined Cycle Natural Gas Oil 11% 40% Natural Gas Coal 2% 13% Cumulative Capital Deployed ($ B) Adjusted EPS(2) .5 % $34.
Slide 6: Focus on maximizing current assets has generated significant returns for shareholders
NextEra Energy’s focus on maximizing the value of current assets and strategically investing in new opportunities has generated significant returns for shareholders Key Success Factors • Leverage the significant scale, Operational scope, and skills of our current excellence Total Shareholder Return(
Slide 7: Dividends and dividend growth remain a core part of value to shareholders
Dividends and dividend growth remain a core part of the overall value to shareholders Dividends Per Share(1) $2.20(2) R : 7.4% $2.00 1 C AG $1.89 -201 $1.78 2002 $1.64 $1.50 $1.42 $1.30 $1.16 $1.20 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (1) Annualized split-adjusted quarterly dividend; di
Slide 8: Growth opportunities weighted toward regulated and long-term contracted
NextEra Energy’s growth opportunities are significant and weighted primarily toward regulated and long-term contracted opportunities NextEra Energy Growth Outlook • FPL has ~$10 - $11 B of capital earmarked for deployment through 2014(1) – $6.5 B of major generation and advanced metering projects to
Slide 9: Business mix expected to shift to more regulated and contracted by 2014
NextEra Energy’s business mix is expected to shift to a more regulated and long-term contracted business by 2014 Adjusted EBITDA(1) Contributions from Regulated and Long-Term Contracted Operations 100% 80% 80% 74% 60% 40% 20% 0% 2010 2014E (1) Earnings Before Interest, Taxes, Depreciation and Amorti
Slide 10: 10
10
Slide 11: Florida Power & Light is one of the best utility franchises in the U.S.
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 • 4.5 MM customer accounts • 23,722 MW in operation • $10.5 billion in operating revenues FPL Service Territory
Slide 12: 2010 settlement agreement provides balance and certainty
We believe our 2010 settlement agreement provides acceptable balance and certainty for our customers and our shareholders Base Rate Settlement Agreement • Retail base rates will remain effectively frozen through the end of 2012 • Cost recovery for West County unit 3 will be limited to the projected
Slide 13: FPL is in one of the largest development cycles in its history
FPL is in one of the largest development cycles in its history, the outcome of which will provide significant overall savings to its customers FPL’s Major Capital Projects Approx. Estimated Actual Size Fuel Est./Actual PSC In-Service COD (MW) Facility Name Type Cost ($B) Approved Recovery 2009 2009
Slide 14: Earnings growth at FPL driven by an increasing rate base
Over the next couple of years, earnings growth at FPL will be driven by an increasing rate base… FPL: Rate Base (2009-2014E) $B $30.0 -2014 : 8.5% CA GR 2009 $25.5 - $25.9 $26.2 - $26.6 t ed $25.0 Estima $23.6 - $23.8 $21.0 - $21.2 $20.0 $19.1 $17.6 $15.0 $10.0 $5.0 $0.0 2009 2010 2011 E 2012 E 2013
Slide 15: Consistent retail regulatory return on equity
… and a consistent retail regulatory return on equity Retail Regulatory Return on Equity ROE 12.0% Up to Up to 11.0% 11.0% 11.0% 10.1% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2009 2010 2011E 2012 E The planned use of the surplus depreciation amortization should allow FPL to realize a retail regulatory ROE at
Slide 16: NextEra Energy Resources
NEXTera’ ENERGY & RESOURCES
Slide 17: Energy Resources has 18,866 MW located across 26 states and Canada
Energy Resources has 18,866 MW located across 26 states and Canada Energy Resources Portfolio(1) • Successful wholesale generator • U.S. leader in renewable generation • 4th largest wind energy owner in Canada • Physical assets in 26 states and Canada • 18,866 MW in operation • $4.6 billion in opera
Slide 18: Energy Resources' existing portfolio can be divided into six segments
Energy Resources’ existing portfolio can be divided into six segments Business Breakdown Today(1) Contracted Wind • 77 projects in 17 states and 3 Canadian provinces 6,589 MW • 14-year weighted average contract life Contracted Gas / • 1,550 MW primarily gas-fired, 1,580 MW gas/oil-fired, 1,454 MW nu
Slide 19: Energy Resources has identified significant investment opportunities and a pipeline
Energy Resources has identified significant investment opportunities as well as a high quality pipeline of future development projects Energy Resources’ Key Drivers 2011-2014 • Successful execution on currently identified key major projects – Genesis and Spain solar projects • Investments in wind an
Slide 20: Genesis and Spain projects are key components of the growth plan
Energy Resources’ Genesis and Spain projects are key components of the overall growth plan and the expansion of its solar strategy Energy Resources’ Key Drivers 2011-2014 • Successful execution on currently identified key major projects – Genesis and Spain solar projects • Investments in wind and so
Slide 21: Genesis solar project has an approved long-term contract
Energy Resources’ Genesis solar project has an approved long-term contract and we began site work in January 2011 Genesis Solar Project • 250 MW solar-thermal trough (SEGS technology) • The long-term power purchase agreement with Pacific Gas & Electric has been approved by the California PUC • Secur
Slide 22: Spain solar thermal plants expand our solar portfolio
Energy Resources’ Spain solar thermal plants represent the opportunity to expand our solar portfolio and earn attractive returns Spain Solar Projects • Spanish government approved projects in December 2009 under a Royal Decree law • Closed on a line of credit, which has made available to us roughly
Slide 23: Additional development opportunities weighed carefully
Additional development opportunities will be weighed carefully based on our ability to secure long-term contracts at favorable terms Energy Resources’ Key Drivers 2011-2014 • Successful execution on currently identified key major projects – Genesis and Spain solar projects • Investments in wind and
Slide 24: Wind generation has been an important growth driver
Wind generation has been an important growth driver for Energy Resources Cumulative Wind Growth MW 9,000 8,298 8,000 7,544 R : 22% G 7,000 01 0 CA 6,375 2-2 6,000 2 00 5,077 5,000 4,016 4,000 3,192 3,000 2,719 2,758 2,000 1,745 1,000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 24
Slide 25: Power demand is a key driver of long-term PPA interest
In the near term, power demand is one of the most important drivers of our customers’ interest in signing long-term power purchase agreements U.S. Demand and Electric Output % Change Electric Output(1) MM MWh Industrial Demand(2) 6.0% 4.5% 4.4% 280 3.9% 3.7% 4.0% 2.5% 2.0% 260 16% 0.0% 240 Decli -2.
Slide 26: Renewable portfolio standards and Ontario feed-in-tariff will drive demand
Over the next few years, states’ renewable portfolio standard targets and Ontario’s feed-in-tariff program will drive North American demand for renewables generation 2011-2015 Cumulative Demand (GW) Energy Resources’ development is focused in areas with high supply gaps 26
Slide 27: Repowering older and less efficient facilities is an attractive opportunity
Repowering older and less efficient facilities represents an attractive opportunity to develop on proven sites and potentially extend contracts with existing counterparties Repowering Opportunities • Repowerings represent 300 to 400 MW of opportunities over 4 years • Older technologies can be replac
Slide 28: Energy Resources continues to secure long-term contracts for wind energy
Amid challenging market conditions, Energy Resources continues to be successful securing long term contracts for wind energy Wind Development Update PPAs Secured for Planned 2011 / 2012 Projects • Energy Resources has long- MW term contracts for 953 MW of 1,000 953 MW new wind projects yet to be 800
Slide 29: Growth in utility scale solar projects expected to accelerate
Growth in utility scale solar projects is expected to accelerate, driven primarily by state renewable portfolio standards Projected U.S. Utility Scale Solar Installations MW 5,000 4,600 4,000 % : 124 G R 2,300 4 CA 3,000 9-201 200 2,300 2,000 1,190 1,100 2,300 1,000 525 575 225 1,100 81 0 2009 2010
Slide 30: Solar energy presents another attractive growth opportunity
Solar energy presents another attractive growth opportunity for Energy Resources Solar Growth Strategy Energy Resources • NextEra Energy is the leading Installed Solar Capacity MW U.S. operator of solar thermal 800 750 and photovoltaic assets • Leveraging our leading position 600 in wind 550 New – S
Slide 31: Modest growth in customer supply, trading, and gas infrastructure
We plan to continue to modestly grow our customer supply, trading, and gas infrastructure businesses, all of which we believe provide incremental value to our generation assets NextEra Energy’s Key Drivers 2011-2014 • Successful execution on currently identified key major projects – Genesis and Spai
Slide 32: Customer supply and trading businesses bring incremental value
Energy Resources’ customer supply and trading businesses bring incremental value to the overall portfolio Customer Supply and Trading Businesses • Optimize our physical assets • Use our physical asset expertise and market knowledge to better inform our hedging and trading decisions • Leverage knowle
Slide 33: Gas infrastructure investments provide market intelligence and attractive returns
Energy Resources’ investments in gas infrastructure provide important market intelligence and attractive returns Gas Infrastructure Shale Gas Production: Return on Investment Shale Gas Production Annual Cash Return on • Partnering with small independent Investment 4-5 Year Simple producers with limi
Slide 34: Lone Star Transmission
L®NEStar SNEStar
Slide 35: Lone Star's CREZ line is a regulated growth opportunity outside FPL
Successful development of Lone Star’s CREZ line represents a regulated growth opportunity outside of FPL Lone Star Transmission CREZ Line • In January 2009, Lone Star was selected by Texas PUC as a CREZ(1) transmission service provider – ~320 mile line – ~$800 million of rate base • Lone Star receiv
Slide 36: NextEra Energy & Resources
NEX Tera ENERGY &
Slide 37: Appendix
37 Appendix NeExTera’ ENERGY 2
Slide 38: Reconciliation of GAAP to Adjusted Earnings per Share
NextEra Energy - Reconciliation of GAAP to Adjusted Earnings per Share Reconciliation of Adjusted Earnings Per Share to Earnings Per Share 2002 2003 2004 2005 2006 2007 2008 2009 2010 Earnings Per Share (assuming dilution) $1.38 $2.53 $2.48 $2.34 $3.23 $3.27 $4.07 $3.97 $4.74 Adjustments: Net unreal
Slide 39: Reconciliation of 2010 Adjusted EBITDA to EBITDA
Reconciliation of 2010 Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA) to EBITDA (Full Year Ended December 31, 2010) GAAP Adjustments Adjusted (1) Net income $1,957 ($179) $1,778 Add back interest 979 0 979 (1) Add back income taxes 532 (116) 416 Add back dep
Slide 40: Cautionary Statement And Risk Factors That May Affect Future Results
Cautionary Statement And Risk Factors That May Affect Future Results In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Reform Act), NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) are hereby providing cautionary state
Slide 41: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy’s and FPL’s financial results could be negatively affected if they or their rate-regulated businesses are unable to recover, in a timely manner, certain costs, a return on certain assets or an appropriate ret
Slide 42: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) markets. NextEra Energy and its subsidiaries will need to adapt to any changes and may face increasing costs and competitive pressures in doing so. NextEra Energy produces the majority of its electricity from clean and rene
Slide 43: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) affect the availability or cost of fossil fuels. The construction, operation and maintenance of nuclear generation facilities involve risks that could result in fines or the closure of nuclear generation facilities owned
Slide 44: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) transmission, distribution, gas infrastructure and other facilities on schedule and within budget may be adversely affected by escalating costs for materials and labor and regulatory compliance, inability to obtain or renew
Slide 45: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) failure of an operating facility of NextEra Energy, for example, may prevent NextEra Energy from performing under applicable power sales agreements which, in some situations, could result in termination of the agreement or
Slide 46: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) placed in service prior to 2013, (2) investment tax credits (ITCs) of 30% of the cost for qualifying wind facilities placed in service prior to 2013, or (3) an election to receive a cash grant of 30% of the cost of qualifyi
Slide 47: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) In addition, NextEra Energy’s and FPL’s financial results would be affected by the impact of severe weather, such as hurricanes, floods and earthquakes, which can be destructive and cause power outages and property damage
Slide 48: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) component of total capitalization, and political, legislative and regulatory actions. There can be no assurance that one or more of the ratings of NextEra Energy, Capital Holdings and FPL will not be lowered or withdrawn en
Slide 49: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy’s and FPL’s financial results and liquidity could be materially adversely affected if the rules implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) broaden the scope of
Slide 50: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) tax credits, including, but not limited to, estimates for potential adverse outcomes regarding tax positions that have been taken and the ability to utilize tax benefit carryforwards, such as net operating loss and tax cred
Slide 51: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy and FPL are subject to the potentially adverse operating and financial effects of terrorist acts and threats, as well as cyber attacks and other disruptive activities of individuals or groups. NextEra Energ
Slide 52: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) The businesses and financial results of NextEra Energy and FPL could be negatively affected by the lack of a qualified workforce, work strikes or stoppages and increasing personnel costs. NextEra Energy and FPL may not be
Slide 53: NextEra Energy & Resources
NEX Tera ENERGY &