NextEra Energy, Inc. · NYSE:NEE
NextEra Energy — Non-Deal Roadshow (June 2011)
57 slides from NextEra Energy's roadshow presentation, June 2011
Slide 1: Investor Meetings
Investor Meetings Armando Pimentel Executive Vice President and CFO June 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 • $24.1 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: Strategic focus on clean generation results in one of the lowest emissions profiles
Our strategic focus on clean generation assets has resulted in one of the lowest emissions profiles among the nation’s top 50 power producers NextEra Energy 2010 Fuel Mix SO2 Emissions Rates Solar (MWh) (Lbs/MWh) .2% Hydro 1.0% Oil 2.7% Natural Gas Coal 54.2% 3.6% Wind NextEra 11.9% Energy Nuclear 2
Slide 7: One of the strongest balance sheets in the industry
NextEra Energy has one of the strongest balance sheets in the industry, a sign of our commitment to financial discipline Credit Ratings NextEra Energy Ratings(1) Utility Credit Ratings(2) S&P Moody's Fitch NextEra Energy 16 16 • Issuer credit rating A- Baa1 A- NextEra 15 • Outlook Stable Stable Stab
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) – $6.7 B of major generation and advanced metering projects to
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Slide 10: 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 • $10.5 billion in operating revenues FPL Service Territory
Slide 11: FPL customer metrics improving and Florida economy showing stability
FPL is seeing an improvement in some key customer metrics and the Florida economy is showing signs of stability Customer Growth(1) Inactive and (Change vs. previous year) Low-Usage Customers 320 10.0% 310 100 Inactive 300 Accounts 9.5% 80 Inactive 290 Accounts # of 60 (000s) 280 9.0% Low Usage Custo
Slide 12: 2010 base rate settlement agreement
Our 2010 base rate settlement agreement provides acceptable balance and certainty for our customers and our shareholders Base Rate Settlement Agreement • Retail base rates will remain effectively frozen through the end of 2012 • Cost recovery for West County unit 3 will be limited to the projected f
Slide 13: FPL in one of the largest development cycles in its history
FPL is in one of the largest development cycles in its history, the outcome of which will provide significant overall savings to its customers FPL’s Major Capital Projects Approx. Estimated Actual Size Fuel Est./Actual PSC In-Service COD (MW) Facility Name Type Cost ($B) Approved Recovery 2009 2009
Slide 14: Earnings growth at FPL driven by 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 -2014 : 8.7% $30.0 C A G R 2009 ted Estima $25.8 - $26.2 $26.5 - $26.9 $25.0 $24.0 - $24.2 $21.3 - $21.5 $20.0 $19.1 $17.6 $15.0 $10.0 $5.0 $0.0 2009 2010 2011 E 2012 E 201
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 across 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: Diverse portfolio of generating assets
We maintain a diverse portfolio of generating assets, representing a number of technologies and regional diversification Energy Resources: Asset Portfolio Mix(1) Dispatch Region Asset Type Characteristics 2% 15% 10% 22% 44% 30% 28% 35% 27% 1% 60% 14% 8% 4% Midwest Northeast Hydro Natural Gas Base In
Slide 19: Existing portfolio 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 20: Significant investment opportunities and development 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 21: Genesis and Spain projects key to growth plan and solar strategy
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 22: Genesis solar project has 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 23: Spain solar thermal plants expand 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 24: 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 25: Wind generation 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 25
Slide 26: Largest owner of wind assets in the U.S.
Energy Resources is by far the largest owner of wind assets in the U.S., with almost twice as much capacity as the next competitor Top U.S. Wind Developers / Owners 8,078(1) 4,301 MW 3,141 2,316 1,920 1,691 1,360 1,089 1,057 986 Energy Iberdrola HorizonMidAmerican E.On Invenergy Edison Infigen AES D
Slide 27: Power demand 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 (1.1%) (0
Slide 28: Renewable portfolio standards and Ontario feed-in-tariff 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 28
Slide 29: Repowering older 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 30: Success securing 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 31: Utility scale solar growth driven by state renewable standards
Growth in utility scale solar projects is expected to be 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 E 2011 E
Slide 32: Solar energy an attractive growth opportunity
Solar energy presents an 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 – Strong
Slide 33: 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 34: Customer supply and trading 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 35: Gas infrastructure investments provide market intelligence and 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 36: Lone Star
L@®NEStar _— NExTera’ ENERGY Z
Slide 37: Lone Star's CREZ line a regulated growth opportunity
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 38: NextEra Energy
NEX Tera ENERGY &
Slide 39: Key success factors
NextEra Energy’s focus on maximizing the value of current assets and strategically investing in new opportunities has proved successful over the years Key Success Factors • Leverage the significant scale, scope, and Operational skills of our current assets to derive excellence maximum value • Invest
Slide 40: Strategy has delivered superior shareholder returns
NextEra Energy’s strategy has delivered superior returns to our shareholders over the long run Total Shareholder Return(1) 10 years 5 years Year-to-date 107% 48% 11% 57% 8% 20% 6% 12% 15% NextEra S&P S&P 500 NextEra S&P S&P 500 NextEra S&P S&P 500 Energy Electric Energy Electric Energy Electric Util
Slide 41: Dividends and dividend growth a core part of shareholder value
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 42: Appendix
42 Appendix NExTera’ ENERGY Z
Slide 43: 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 44: Cautionary Statement And Risk Factors
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 45: 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 46: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy and FPL operate in a changing market environment influenced by various legislative and regulatory initiatives, including, for example, initiatives regarding regulation, deregulation or restructuring of the
Slide 47: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) require significant capital investment in carbon capture and storage technology, fuel switching, or the replacement of high-emitting generation facilities with lower-emitting generation facilities; or affect the availab
Slide 48: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy’s and FPL’s operating results could suffer if they do not proceed with projects under development or are unable to complete the construction of, or capital improvements to, generation, transmission, distribut
Slide 49: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) dependence on a specific fuel source. The occurrence of any of these effects or events could result in, among other matters, lost revenues due to prolonged outages, increased expenses due to monetary penalties or fines, r
Slide 50: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy depends upon power transmission and natural gas transportation facilities owned and operated by others. If transmission or transportation of sufficient power or natural gas is unavailable or disrupted, Next
Slide 51: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) such as mandated energy efficiency measures, demand side management goals, and economic and demographic conditions, such as population, job and income growth, housing starts and new business formation. NextEra Energy’s and
Slide 52: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) The inability of subsidiaries that have existing project-specific financing arrangements to meet the requirements of various agreements relating to those financings could give rise to a project-specific financing default
Slide 53: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy is an active participant in energy markets. The liquidity of regional energy markets is an important factor in the company's ability to manage risks in these operations. Over the past several years, other m
Slide 54: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) ability to pay upstream dividends or to repay funds to NextEra Energy. The subsidiaries have financial obligations, including, but not limited to, payment of debt service, which they must satisfy before they can fund NextEr
Slide 55: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy and FPL add, modify and replace information systems on a regular basis. Modifying existing information systems or implementing new or replacement information systems is costly and involves risks, including,
Slide 56: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) The ability of NextEra Energy and FPL to obtain insurance and the terms of any available insurance coverage could be adversely affected by international, national, state or local events and company-specific events, as well
Slide 57: NextEra Energy
NEX Tera ENERGY &