Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Edison Electric Institute Conference 2024
38 slides from Nextera Energy's conference presentation, November 2024
Slide 1: Edison Electric Institute Conference – NextEra Energy
Edison Electric Institute Conference NextEra Energy November 2024 NextEra Energy 1
Slide 2: Cautionary Statements and Risk Factors That May Affect Future Results
Cautionary Statements and Non-GAAP Financial Other Risk Factors That May Affect Information See Appendix for definition of Future Results This presentation refers to Adjusted Earnings expectations. This presentation includes certain financial measures that forward-looking statements were not prepare
Slide 3: We expect to continue our long track record of creating value for shareholders
We expect to continue our long track record of creating value for Highlights shareholders Reaffirming our long-term financial expectations Continue to expect Energy Resources to develop ~36.5 to ~46.5 GW of new renewables and storage from 2024 to 2027 Expect to have safe harbor equipment to support
Slide 4: NextEra Energy is powered by two industry-leading companies, strengthened by a common platform
NextEra Energy is powered by two industry-leading companies, strengthened by a common platform ~$254 B Enterprise Value1 ~70 GW in Operations2 Largest electric utility World leader in in the U.S. renewables and storage Renewables and Storage Power Delivery & Transmission Market Knowledge Fossil Gene
Slide 5: The power sector is at an inflection point
The power sector is at an inflection point U.S. Power Demand1 (thousand TWh) Renewables and Storage Deployment Forecast2 (GW) ~6x increase vs the last 20 years +55% ~375-450 ~3x growth +9% 2.1 ~140 3.5 3.8 3.8 2000 2020 2040 Last 7 Years Next 7 Years Historical Incremental to 2020 1. Historical: Ene
Slide 6: Renewables and storage are positioned for growth due to their lower costs and speed to market
Renewables and storage are positioned for growth due to their lower costs and speed to market advantages Estimated Costs of Firmed Generation Resources, Renewables & storage represent ~90% of 20301 active interconnection queue positions3 $/MWh New Onshore $25 - $50 Least cost Wind energy and capacit
Slide 7: NextEra Energy is well positioned to capitalize on expected power demand growth in the U.S.
NextEra Energy is well positioned to capitalize on the massive opportunity of expected power demand growth in the U.S. NextEra Energy – Renewables and Storage Capacity Scale, experience and technology grows as the renewables and ~2X ~81 GW storage portfolio grows Lowering costs of renewables and sto
Slide 8: Our unmatched scale, experience and technology enables predictable, superior returns
Our unmatched scale, experience and technology enables predictable, superior returns Transmission & Development gy Distribution o ol Sc Techn Data & Analytics Supply Chain & EPC ale Best Origination & Team Financing Customer Relationships Ex Portfolio Optimization p e ri e n c e Operations NextEra E
Slide 9: Clean energy credits are an engine for U.S. economic growth
Clean energy credits are an engine for U.S. economic growth and NextEra Energy remains well positioned to provide cheap, fast to deploy and carbon free energy Clean energy credits drive U.S. economic growth and enable lower energy prices ~$2.0 trillion Wind and solar capital investment in U.S. infra
Slide 10: Our combined utility and renewables DNA creates unmatched competitive advantages
Our combined utility and renewables DNA creates unmatched competitive advantages We understand every Top 20 U.S. Renewables Operators by Capacity1 part of the energy value chain GW (2023) 34 We are focused on our customers We are low cost and top-decile operators 20 We deeply understand power and tr
Slide 11: Record safety year in 2023 and a record cost-savings effort in 2024
We never stop focusing on continuous improvement with a record safety year in 2023 and a record cost-savings effort in 2024 Safety Project Velocity OSHA Recordable Rate Cumulative Base O&M Savings No. of safety incidents Millions $2,819 100+ AI projects being ~90% improvement in advanced 2.2 safety
Slide 12: We have a long track record of delivering financial growth
We have a long track record of delivering financial growth 20-Year Performance Adjusted Earnings Per Share Dividends Per Share Operating Cash Flow $B 20-Year Total Shareholder Return1 1574% ~9% CAGR ~10% CAGR ~8% CAGR $1.87 $11.3 $3.17 647% 532% $0.62 $0.30 $2.3 2003 2023 2003 2023 2003 2023 NEE S&P
Slide 13: Florida Power & Light Company
Edison Electric Institute Conference Florida Power & Light Company Florida Power & Light 13
Slide 14: As the nation's leading electric utility, FPL is well positioned to power Florida's economy
As the nation’s leading electric utility, FPL is well positioned to power Florida’s economy into the future Largest electric utility in the U.S. with ~5.9 MM customer accounts ~35 GW in operation1 Making smart capital investments for the benefit of customers Areas Served by FPL Natural Gas Nuclear D
Slide 15: FPL has experienced strong growth, and we continue to deliver for our customers
FPL has experienced strong growth, and we continue to deliver for our customers Regulatory Capital Employed Growth2 ($B) ~12% CAGR FPL Average Retail Customers1 (MM) $61.9 $49.3 5.98 5.95 ~4% 5.91 increase 2021 2023 5.88 5.85 5.84 Typical 1,000 kWh Residential Customer Bill3 ($) 5.81 5.80 5.79 GOOD
Slide 16: FPL continues to provide an attractive customer value proposition
FPL continues to provide an attractive customer value proposition Operational Cost Effectiveness1 ($/MWh Non-Fuel O&M) GOOD ~70% lower Superior $38.52 Customer Value $20.06 $11.54 National Average Top Decile FPL Strong Virtuous Customer Financial Circle Satisfaction Position SAIDI2 – Outage Minutes
Slide 17: Hardening, undergrounding and smart grid technology enable us to respond to storms
Hardening, undergrounding and smart grid technology enable us to respond to storms safely and quickly Storm Restoration Days1 / # of Customers Impacted Helene and Milton caused ~680,000 and ~2.0 MM FPL customers to lose power, respectively Milton 4 ~2.0 million – Restored essentially 95% of customer
Slide 18: FPL is recognized as one of the nation's best and most innovative electric providers
FPL is recognized as one of the nation’s best and most innovative electric providers and plans to continue making smart capital investments for the benefit of customers Generation Mix MWh 6% 1% 19% 35% 20% 38% 42% 2003 2023 2033E1 18% 73% 1% 6% 22% 19% Natural Gas Nuclear Solar & Storage Coal Oil Pu
Slide 19: NextEra Energy Resources
Edison Electric Institute Conference NextEra Energy Resources NextEra Energy Resources 19
Slide 20: NextEra Energy Resources is the leading North American clean energy company
NextEra Energy Resources is the leading North American clean energy company ~36 GW1 of generation and storage in operation 20% Solar 6% Nuclear Wind 58% 9% Battery 4% Natural Gas 2% Other States with Project(s) in Operation Wind World leader in wind, solar and storage Natural Gas Nuclear Universal S
Slide 21: After decades of flat demand, load growth has materialized quickly
After decades of flat demand, load growth has materialized quickly and across many parts of the U.S. economy Manufacturing Oil & Gas Data Centers Annual U.S. Manufacturing Permian Basin Load Construction Spend1 Demand for Oil & Gas2 U.S. Data Center Energy Consumption3 Billions GW TWh $250 20 700 18
Slide 22: To meet this rising demand, we are doubling down on our core investment opportunities
To meet this rising demand, we are doubling down on our core investment opportunities Build Renewables and Storage Build Transmission Leverage Our Supporting Businesses NextEra Energy Resources 22
Slide 23: We are the #1 originator for U.S. power and commercial & industrial customers
We are the #1 originator for U.S. power and commercial & industrial customers Energy Resources Renewables and Storage Origination (GW) 20% market share in 3 renewables and storage origination1 3 25+ years serving 2021-2023 Avg. ~8 GW ~11 power customers ~9 ~8 ~7.4 15 years serving 3 commercial & ind
Slide 24: Opportunity to develop 36.5 to 46.5 GW of new renewables and storage through 2027
We believe we have the opportunity to develop 36.5 to 46.5 GW of new renewables and storage through 2027 NextEra Energy Resources Development Program1 As of October 23, 2024; GW 2024 - 2025 2024 - 2025 2026 – 2027 2026 – 2027 2024 – 2027 COD & Backlog Expectations Backlog Expectations Expectations W
Slide 25: Financial Outlook
Edison Electric Institute Conference Financial Outlook NextEra Energy 25
Slide 26: Our capital investment strategy is focused on long-term, consistent revenues and superior returns
Our capital investment strategy is focused on long-term, consistent revenues and superior returns >70%1 <30%1 Rate-regulated return Primarily long-term on capital invested in a contracted investments constructive regulatory with A- counterparty environment credit rating on average FPL & Other Regula
Slide 27: Our diversified and balanced funding plan
Our diversified and balanced funding plan is centered around stable cash flows supplemented by access to well-understood markets NextEra Energy Funding Plan 2024-20271 Billions ~$5 - $6 ~($20) ~$5 - $7 ~$44 - $48 ~$97 - $107 ~$40 - $44 ~$53 - $58 ~($30) - ($36) 2024-2027 Cash Debt Corporate Tax Equi
Slide 28: Well positioned to navigate the current interest rate environment
NextEra Energy is well positioned to navigate the current interest rate environment Interest Rate Sensitivity Estimated Adjusted EPS Impact of +50 bps Interest Rate Increase1 2024 2025 2026 2027 $0.00 ($0.01) – ($0.03) ($0.01) – ($0.03) ($0.03) – ($0.05) NextEra Energy’s notional interest rate hedge
Slide 29: NextEra Energy remains committed to maintaining our strong balance sheet
NextEra Energy remains committed to maintaining our strong balance sheet NextEra Energy ranking amongst 32 S&P 500 Utilities2: FFO-to-Debt CFO Pre-Working FFO Leverage GOOD GOOD Capital-to-Debt GOOD #1 Adj. FFO/Debt 4.9x 18.4% 18.7% 4.3x 14.3% #2 Debt/Adj. EBITDA 13.2% #1 Equity Ratio NextEra Energy
Slide 30: We expect to continue our long track record of creating value for shareholders
We expect to continue our long track record of creating value for shareholders Adjusted earnings per share expectations1,2 Dividend per share1,2 Operating cash flow expectations1 $/share $/share Billions At or above adjusted ~10% EPS growth rate 6%-8% 3.85 - 4.32 15 - 16 3.63 - 4.00 3.45 - 3.70 3.23
Slide 31: Equity unit issuance expectation represents a small and manageable percentage of market share
Driven by strong cash flow growth, our equity unit issuance expectation represents a small and manageable percentage of our market share Over 50% of our capex is being met by our operating cash flow2 Equity Issuances as % of Market Cap1 2.5% 2.3% 2.3% Tax equity and project finance supplements 2.0%
Slide 32: Appendix
Edison Electric Institute Conference Appendix NextEra Energy 32
Slide 33: NextEra Energy's credit metrics remain on track
NextEra Energy’s credit metrics remain on track NextEra Energy Credit Metrics1 S&P A- Range Downgrade Threshold Actual 2023 Target 2024 FFO/Debt 13% - 23% 18% 18.4% >18% Moody’s Baa Range Downgrade Threshold Actual 2023 Target 2024 CFO Pre-WC/Debt 13% - 22% 17% 18.7% >17% CFO-Div/Debt 9% - 17% 12.3%
Slide 34: NextEra Energy Resources Renewables Development Program
NextEra Energy Resources Renewables Development Program1,2 Wind (GW) Solar (GW) Storage (GW) Region 2024 – 2025 2026 – 2027 Region 2024 – 2025 2026 – 2027 Region 2024 – 2025 2026 – 2027 Northeast 0.0 0.0 Northeast 0.4 0.3 Northeast 0.0 0.0 Southeast 0.0 0.0 Southeast 2.5 2.4 Southeast 0.0 0.0 Midwes
Slide 35: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share1 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(2) 2017(2) 2018 2019 2020 2021 2022 2023 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $0.63 $
Slide 36: Definitional Information
Definitional Information NextEra Energy, Inc. Adjusted Earnings Expectations (including subsidiaries as applicable) This presentation refers to adjusted earnings per share expectations. NextEra Energy does not provide a quantitative reconciliation of forward-looking adjusted earnings per share to ea
Slide 37: 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 38: Cautionary Statement And Risk Factors That May Affect Future Results (continued)
Cautionary Statement And Risk Factors That May Affect Future Results (continued) effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's risk management tools associated with its hedging and trading procedures
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