Slide 1: Second Quarter 2003 Earnings Teleconference
Entergy Second Quarter 2003 Earnings Teleconference J. Wayne Leonard Chief Executive Officer C. John Wilder Executive Vice President and Chief Financial Officer aes = July 28, 2003 a Enter. By
Slide 2: Safe Harbor and Reg G Compliance
Safe Harbor and Reg G Compliance ‘The folowing constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: From time to time, Entergy makes statements conceming its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Su
Slide 3: Quarter Highlights
Quarter Highlights Operational Earnings Per Share 2Q02 vs. 2Q03 Net Margin - Operational 12 Months Ended; % ROIC — Operational 12 Months Ended; % 94 7 75 $1.17 $1.17 Jj 2902 2903 2902 2903 ROE - Operational Net Debt to Net Capital 12 Months Ended; % 12 Months Ended; % 10.3 ac 49.1 465 2Q02 2Q03 ~~ 2
Slide 4: As-Reported and Operational Earnings
As-Reported and Operational Earnings Earnings Per Share 2Q02 vs. 2Q03 1.17 4.17 2Q02 2Q03 Special items Special items ECS - asset impairments (0.04) Utility — River Bend loss provision _ (0.28) ECS - turbine commitment 0.10 Total (0.28) ECS - restructuring (0.17) Total (0.11) As-Reported Hi Operatio
Slide 5: Lower Utility and Nuclear Results Offset By Increased Trading
Lower Utility and Nuclear Results Offset By Increased Trading Operational Earnings Per Share 2Q02 vs. 2Q03 $1.17 $1.17 - F $ $ ( (90. 2Q02 2Q03 Utili Earnings Key Eamings Drivers 2Q02 vs. 2Q03 e Decreased sales volume primarily due to industrial customers e@ Lower O&M expense due to absence ofice st
Slide 6: Utility Quarterly Operational Performance Measures
Utility Quarterly Operational Performance Measures Retail Sales . ° GWh Operational Earnings Per Share 7 2Q02 vs. 2003 24,262 23,554 Retail sales decreased by 3% due to mild weather and lower industrial 2002 2003 demand 0.85 0.81 Weather Impact $iShare | Weather impact 20022003 was negative; last 0.
Slide 7: Entergy Nuclear Quarterly Operational Performance Measures
Entergy Nuclear Quarterly perational Performance Measures = Total Generation GWh Output decreased Operational Eamings Per Share 7,449 7,342 1% due to planned 2Q02 vs. 2Q03 and unplanned outages offset by addition of Vermont Sa. 2Q02 2Q03 Yankee Realized Price 0.24 siMWh 0.19 39.88 39.78 Realized pri
Slide 8: Nuclear Output Sold Forward
Nuclear Output Sold Forward Entergy Nuclear Sold Forward Position 4Q02 vs. 2Q03; % sold Sold Forward at 100 91 27 24 241 12/31/02 Sold Forward at 100 98 39 35 28 6/30/03 % Change - +8 +44 +46 +33 4Q02 Average $37 $38 $36 $32 $31 Contract Price ($/MWh) 2Q03 Average $37 $38 $37 $35 $34 Contract Price
Slide 9: Energy Commodity Services Quarterly
Energy Commodity Services Quarterly Operational Performance Measures Operational Eamings Per Share 2Q02 vs. 2Q03 0.21 0.10 2902 2Q03 Throughput Befiday 2.31 ‘gy 1.90 : 2002 2003 Production Cost $immbtu $0.138 $0.096 . 2002 2003 Throughput declined due to limited gas supply and the impact of fuel-swi
Slide 10: Energy Commodity Services Quarterly
Energy Commodity Services Quarterly Operational Performance Measures Trading Volatility Volumes Traded Gas and Power; % Befid (gas); TWh (power) 1 cas [J Power Average De@r $M times Page 9 of 17
Slide 11: Entergy-Koch, LP Cash Flow and Dividends
Entergy-Koch, LP Cash Flow and Dividends Adjusted Operating Cash Flow vs. Eamings Contribution to Entergy 1Q01* - 2Q03; $B 0.6 Entergy-Koch, LP’s OCF minus Net Working Capital Changes 04 \ Dividends to Entergy 2Q02 vs. 2003; $M 0.2 Entergy’s Earnings Contribution 0 0.0 from Enteray-Koch, LP 2Q02 2Q0
Slide 12: Operating Cash Flow Drivers
Operating Cash Flow Drivers Operating Cash Flow 2Q02 vs. 2Q03; $M 449 475 2Q02 2403 Deferred Fuel Balance by Company 2Q03; $M (Over)Under recovered 139 [Annual Reset [i Semi-Annual (J Quarterly [60 Days or Less 3 25 EAl EGSI EGSI ELI EMI ENO! LA TX Deferred Fuel Balance 2Q00 through 2003; $M 300 600
Slide 13: 2003 Operating Cash Flow Forecast
2003 Operating Cash Flow Forecast 2003 Operating Cash Flow Forecast $B oa 1.8-1.9 1t Half Earnings Depreci: 2003 Amort jon’ Working 2003E jon = Capital 2" Half 2003 Page 12 of 17
Slide 14: Expectations for Rest of 2003 - Utility
Expectations for Rest of 2003 - Utility Operational Eamings Per Share Drivers of 2°¢ Half Eamings 2002 vs. 2003 2H02 vs. 2H03 $2.70 - $2.75 S28r Rate actions @ Increased revenues from rate actions at EMI and ENO! Sales changes @ Sales growth due to economic recovery offset by cogeneration loss Incre
Slide 15: Expectations for Rest of 2003 - Nuclear
Expectations for Rest of 2003 - Nuclear Operational Eamings Per Share 2002 vs. 2003 $0.88 2002 $0.85 - $0.90 2003 F Drivers of 2°¢ Half Eamings 2H02 vs. 2H03 Higher capacity factors e No refueling outages at Fitzpatrick, Indian Point 2, and Vermont Yankee Other output increases e Full year addition
Slide 16: Expectations for Rest of 2003 - Energy Commodity Services
Expectations for Rest of 2003 Energy Commodity Services Operational Eamings Per Share Assumptions for 2 Half Eamings 2002 vs. 2003 Income from trading operations @ Earnings from financial and 2 Hall) physical optimization, as well as $0.83 successful execution of point-of view trading strategy Incom
Slide 17: 2003 Earnings Guidance Increased
2003 Earnings Guidance Increased Operational Earnings Per Share Revised Guidance Assumptions 2002 vs. 2003 $4.05 - $4.25 is Utility, Parent $3.76 - $3.95 ity. $0.35 Ecs e Guidance unchanged Nuclear -Nuciganl e Reduced revenue due to unplanned outages Energy Commodity Services @ Increased income from
Slide 18: 2004 Earnings Guidance Released
2004 Earnings Guidance Released 2004 Guidance Assumptions prepa Famanas Per Share Utility, Parent & Other e Increased revenue from sales growth and rate actions e Decreased O&M expense from productivity improvements e Lower interest costs offset by higher depreciation and other expenses Nuclear e In
Slide 19: Q&A Session
Q&A Session = Entergy