Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Q1 2013 Earnings Presentation
30 slides from Nextera Energy's earnings presentation, Apr 30, 2013
Slide 1: Earnings Conference Call First Quarter 2013
Earnings Conference Call First Quarter 2013 April 30, 2013
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: NextEra Energy delivered strong results in the first quarter of 2013
NextEra Energy delivered strong results in the first quarter of 2013 NextEra Energy Overview • At FPL – Maintained a regulatory ROE of 11% – Regulatory capital employed drove net income growth of roughly 20% – Major initiatives on track Nuclear uprate program completed in April 4.5 MM smart meters i
Slide 4: Backlog supports 5% adjusted EPS CAGR through 2016
Our backlog supports 5% adjusted EPS CAGR through 2016 with the potential of up to 7% growth through incremental investment opportunities March 2013 Backlog(1) Incremental Opportunities • FPL • FPL – Base rate increase and GBRA – Storm hardening & reliability in settlement agreement investment Cape
Slide 5: Florida Power & Light Results – First Quarter
FPL produced solid earnings growth during the quarter due to investments that benefited customers Florida Power & Light Results – First Quarter Net Income EPS ($ MM) $288 $0.68 $0.58 $239 2012 2013 2012 2013 5
Slide 6: FPL's earnings per share grew approximately 10 cents quarter-over-quarter
FPL’s earnings per share grew approximately 10 cents quarter- over-quarter, driven primarily by continued investment in the business Florida Power & Light EPS Contribution Drivers EPS Growth Regulatory Capital Invested(1) First Quarter $B FPL – 2012 EPS $0.58 $30.0 $27.1 $25.0 $23.7 Drivers: $20.0 N
Slide 7: Florida Economy
Economic indicators continue to improve across the state Florida Economy Florida Unemployment Rate(1) (000’s) Florida Employment(2) 8,600 Actual Projected 12% 8,400 10% 8,200 8,000 8% 7,800 7,600 6% 7,400 7,200 4% 7,000 2% 6,800 6,600 0% 6,400 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 2000 20
Slide 8: Customer Characteristics – First Quarter 2013
FPL’s volume metrics remained steady in the first quarter of 2013 Customer Characteristics – First Quarter 2013 Retail kWh Sales Customer Growth(1) (Change vs. prior-year quarter) (Change vs. prior-year quarter) Customer Growth 0.7% 100 80 - Usage from Leap Year -1.2% # of 60 + Usage Change Due to W
Slide 9: Energy Resources' adjusted earnings per share declined 2 cents
Energy Resources’ adjusted earnings per share declined 2 cents versus Q1 2012 Energy Resources Results(1) – First Quarter GAAP Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $221 $0.53 $182 $177 $0.44 $0.42 ($40) ($0.09) 2012 2013 2012 2013 2012 2013 2012 2013 9 (1) See Appendix for reconcilia
Slide 10: Energy Resources First Quarter Adjusted EPS Contribution Drivers
Energy Resources’ adjusted earnings decreased 2 cents over the comparable quarter Energy Resources First Quarter Adjusted EPS(1) Contribution Drivers $0.60 $0.03 ($0.05) $0.04 $0.44 ($0.03) ($0.01) $0.42 $0.40 $0.20 $0.00 Q1 2012 Customer New Existing Gas Interest, G&A, Q1 2013 Adjusted EPS Supply &
Slide 11: Energy Resources First Quarter Unusual Items
Energy Resources excluded three items from adjusted earnings Energy Resources First Quarter Unusual Items • Maine Hydro – Sale closed in Q1 and resulted in $216 MM positive impact to Q1 2013 GAAP earnings • Maine Fossil – Recognized a charge of $41 MM in Q1 2013 GAAP earnings associated with the dec
Slide 12: Potential additional investment in incremental wind and solar
We see the potential for additional investment of $1 B to $3 B in incremental wind and up to $1 B in incremental solar Energy Resources Development Highlights March 2013 Backlog Status • 175 MW of 2013 U.S. wind(1) • On track • ~600 MW of Canadian wind • On track • ~900 MW of solar • On track Increm
Slide 13: NextEra Energy EPS Summary – First Quarter
NextEra Energy’s adjusted earnings per share increased 10 cents versus the prior year comparable quarter NextEra Energy EPS Summary(1) – First Quarter GAAP 2012 2013 Change FPL $0.58 $0.68 $0.10 Energy Resources $0.53 ($0.09) ($0.62) Corporate and Other $0.00 $0.05 $0.05 Total $1.11 $0.64 ($0.47) Ad
Slide 14: Focus for 2013
Focus for 2013 • FPL: – Maintain leading customer value proposition – Continue successful execution on large construction projects Riviera and Port Everglades on track to enter service in 2014 and 2016 – Focus on productivity and cost-effectiveness – Identify incremental capital deployment opportuni
Slide 15: Adjusted Earnings Per Share Expectations
NextEra Energy Adjusted Earnings Per Share Expectations 2013 $4.70 - $5.00 Long-term 5% to 7% CAGR growth rate through 2016 off of a 2012 base 15
Slide 16: Q&A Session
16 Q&A Session NEXTera’ ENERGY
Slide 17: NExTera’
NExTera’ ENERGY @
Slide 18: Appendix
18 Appendix NEXTera’ ENERGY
Slide 19: NextEra Energy Resources 2013 Portfolio Financial Information
NextEra Energy Resources 2013 Portfolio Financial Information (as of March 12, 2013) Equivalent Equivalent Equivalent 1 Expected Gross Margin % Gross EBITDA1 Remaining2 Following3 Generation Range Margin Range Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expiration Contracted
Slide 20: Existing assets largely contracted or hedged for 2013
Energy Resources’ existing assets are largely contracted or hedged for 2013 2013 Equivalent Gross 2013 Balance of Year Margin Contributions(1) Portfolio Sensitivities 5% New Investments(2) • $1/MMBtu change in 12% natural gas ≈ 2 cents in Other (3) 12% Other (3) adjusted EPS(4) 57% 25% Contracted 58
Slide 21: NextEra Energy Resources 2014 Portfolio Financial Information
NextEra Energy Resources 2014 Portfolio Financial Information (as of March 12, 2013) Equivalent Equivalent Equivalent 2 Expected Gross Margin % Gross EBITDA2 Remaining3 Following4 Generation Range Margin Range Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expiration Contracted
Slide 22: Existing assets largely contracted or hedged for 2014
Energy Resources’ existing assets are largely contracted or hedged for 2014 2014 Equivalent Gross Margin Contributions(1) 2014 Portfolio Sensitivities • $1/MMBtu change in 13% 12% New New (2) Investments Investments (2) natural gas ≈ 4-5 cents in adjusted EPS(4) 13% 13% Other (3) 51% 52% Contracted
Slide 23: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges (1) – Summary of Activity Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) ($ millions, after-tax) Asset/(Liability) Balance as of 12/31/12 $400.1 Amounts Realized During 1st Quarter (21.5) Primary Drivers: Revenue Hedges – Gas Change in Forward Prices (al
Slide 24: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1)(1)– Summary of Activity Non-Qualifying Hedges – Summary of Activity ($ millions, after-tax) ($ millions, after-tax) 1st Quarter Asset / Deals Asset / (Liability) Change in Executed Total (Liability) Balance Amounts Forward During Unrealized Balance Description 12/31/12 Reali
Slide 25: Non-Qualifying Hedges – Summary of Forward Maturity
Non-Qualifying Hedges(1) – Summary of Forward Maturity Non-Qualifying Hedges(1) – Summary of Forward Maturity ($ millions, after-tax) ($ millions, after-tax) Gain / (Loss) (2) Asset / (Liability) Balance Total Description 3/31/13 2013 2014 2015 2016 2017 - 2032 2013 - 2032 Natural gas related positi
Slide 26: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings to GAAP Net Income (Three Months Ended March 31, 2013) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 288 $ (40) $ 24 $ 272 Adjustments, net of income taxes: Net unrealized
Slide 27: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings to GAAP Net Income (Three Months Ended March 31, 2012) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 239 $ 221 $ 1 $ 461 Adjustments, net of income taxes: Net unrealized ma
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 That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) failure or breach of NextEra Energy's and FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses of compromise of sensitive customer data; risks to NextEra Energy and FPL of volatility in
Slide 30: NExTera’
NExTera’ ENERGY @