Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Investor Presentation (February 2022)
60 slides from Nextera Energy's investor presentation, February 2022
Slide 1: February 2022 Investor Presentation
February 2022 Investor Presentation 1
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
Cautionary Statements And Risk Factors That May Affect Future Results These presentations include forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward-looking statements. The factors that could cause actual results to
Slide 3: NextEra Energy is comprised of strong businesses supported by a common platform
NextEra Energy is comprised of strong businesses supported by a common platform • ~$149 B market capitalization(1) • ~62 GW in operation(2) • ~$141 B in total assets(3) The largest vertically The world leader in integrated electric utility in electricity generated from the United States by retail th
Slide 4: NextEra Energy's strategic focus remains on investing for customers, shareholders, environment
NextEra Energy’s strategic focus remains on investing for the benefit of customers, shareholders, and the environment NextEra Energy Strategic Focus • FPL’s continued smart investments further enhance its best-in- class value proposition – Typical residential bill projected to be the lowest among Fl
Slide 5: Long-term track record of delivering value to shareholders
We have a long-term track record of delivering value to shareholders Adjusted Earnings Per Share Total Shareholder Return(1) $2.55 150% 300% 129% 252% 125% 250% 100% 100% 200% 75% 150% 133% $0.76 49% 50% 100% 74% 25% 50% '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 0% 0% Three Yea
Slide 6: Growth strategy has led to real change in relative position
Over a sustained period of time, our growth strategy has led to real change in relative position Top 20 Global Utility Equity Market Capitalization(1) As of 6/1/2001 ($ MM) As of 2/3/2022 ($ MM) Rank Market Cap Rank Market Cap 1 $38,574 1 $148,671 NextEra Energy 2 $38,185 2 $81,099 3 $34,476 3 $78,6
Slide 7: Core strategy has focused on ESG impacts for more than 25 years
Our core strategy has focused on the importance of ESG impacts for more than 25 years • Vision to be largest, most profitable clean energy provider in the world • Vision informed by our values: • We are committed to excellence • We do the right thing • We treat people with respect • Aim to be the mo
Slide 8: One of the lowest emissions profiles of any utility in North America
We have one of the lowest emissions profiles of any utility in North America Reducing Carbon Emissions(1,2) Average CO2 Emissions Rate: NextEra Energy vs. U.S. Electric Power Sector 75% increase in 1500 clean electricity generation(3) 1300 37% 1100 better CO2 900 ~57 MM tons of Lbs/ avoided CO2 MWh
Slide 9: Well positioned to continue our track record of growth
We are well positioned to continue our track record of growth Wholesale FPL Fleet FPL & Service Solar Under- Electrification Energy Territory Together grounding Services Expansion FPL FPL FPL Solar FPL T&D Generation Hydrogen Battery Infrastructure Modernization Storage Expect >$60 B of capital Capi
Slide 10: Clean energy transformation will further expand and accelerate
We expect the industry’s clean energy transformation will further expand and accelerate over the coming years Disruptive Industry Changes Today Potential Cost per MWh Mid-2020s(1) AI / ($/MWh) Machine Learning Near-Firm Wind $20 - $30 EV & Renewables / Hydrogen Near-Firm Solar Storage $30 - $40 Mobi
Slide 11: Florida Power & Light is recognized as one of the best utility franchises
Florida Power & Light is recognized as one of the best utility franchises in the U.S. Florida Power & Light Company • One of the largest electric utilities in the U.S. • Vertically integrated, retail rate-regulated • More than 5.7 MM customer accounts • ~33 GW in operation(1) • ~$14 B in operating r
Slide 12: Core focus at Florida Power & Light has been consistent for many years
Our core focus at Florida Power & Light has been consistent for many years Areas of Focus • Unyielding commitment to customer value proposition Superior Customer Customer – Low bills Value Delivery Satisfaction – High reliability – Excellent customer service • Focus on efficiency and best-in- class
Slide 13: FPL long-term strategy delivering best-in-class customer value proposition
At FPL, we are continuing to focus on the long-term strategy that has delivered our best-in-class customer value proposition FPL Customer Value Focus Operational Service Cost Effectiveness(1) Reliability(2) ($/Retail MWh) (Minutes) ~58 $13.54 ~10% ~21% $12.19 ~46 Good Reduction Good Improvement in r
Slide 14: Gulf Power performance: low cost, reliable and clean
Our performance at Gulf Power validates that it is possible to be low cost, reliable and clean at the same time Gulf Power Three-Year Execution Summary Operational Service Cost Effectiveness(1) Reliability(2) ($/Retail MWh) (Minutes) ~$32 ~101 Good Good ~40% ~$20 ~60% Reduction Improvement ~43 2018
Slide 15: Energy Resources is the leading North American clean energy company
Energy Resources is the leading North American clean energy company Energy Resources • World leader in electricity generated from the wind and sun • ~28 GW(1) of generation in Wind operation Natural Gas – ~20 GW wind Nuclear Universal Solar – ~4 GW solar Storage – ~2 GW nuclear Other Pipeline – ~2 G
Slide 16: Energy Resources well positioned to benefit from electrification
Energy Resources is well positioned to benefit as the US pursues electrification to deliver economic carbon reductions Competitive Advantages • Scale advantage enabling us to buy, 2020 Top 10 US Capital Investors(1) build and operate cheaper $25 $24 – 5th largest capital spender in U.S.(1) $20 $19 $
Slide 17: Energy Resources competitive advantages and development program
Energy Resources’ competitive advantages position us to continue to capitalize on what we believe is the best renewables development environment in our history Energy Resources Development Program(1) (Signed Contracts as of January 25, 2022) 2021 – 2022 2021 – 2022 2023 – 2024 2023 – 2024 2021 – 202
Slide 18: Decarbonization could create ~$4 trillion investment opportunity through 2050
Decarbonization of the entire U.S. economy could create ~$4 trillion investment opportunity through 2050 2050 Decarbonized U.S. Economy: Growth in Renewables and Storage Opportunity(1) 2020 Capacity 170 GW ~20x ~40x Excess energy 2050 Power 3,550 GW converted to Sector $1,700 B hydrogen to Decarboni
Slide 19: Strong renewables market share driven by competitive advantages
Energy Resources’ strong renewables market share is driven by its competitive advantages MW 2000 31% 2020 Wind PPAs(1) share of 1500 6.5 GW 1000 market 500 0 NEER MW 2020 Solar PPAs(1) 2500 12% 2000 share of 1500 17.8 GW market 1000 500 0 NEER Energy Resources competes against a number of small play
Slide 20: Largest contracted pipeline of battery storage projects in North America
Energy Resources has the largest contracted pipeline of battery storage projects in North America(1) 2020 Battery Storage PPAs(2) MW 1600 1400 1200 31% 1000 share of 4.6 GW 800 market 600 400 200 0 NEER In 2020, Energy Resources had a ~36% share of the solar + storage market(2), highlighting our com
Slide 21: Actively pursuing green hydrogen pilot projects
Energy Resources is actively pursuing green hydrogen pilot projects to serve a variety of markets New Opportunities in Hydrogen Company Application Behind the Green Industrial Industrial Meter Solar H2 Process On-Site Green Hydrogen Fuel Grid Electrical Solar H2 Storage Cell PPA Green Delivery Forkl
Slide 22: Many end-uses for hydrogen make it a leading pathway to zero-carbon
The many end-uses for hydrogen make it a leading pathway to a zero-carbon future across many parts of the U.S. economy Power Sector Transport Industry Buildings Backup Remote Combined Power Generation Trucks Forklifts Ammonia Methanol Heat and Power Hydrogen Recip. Trains on Non- Steel Hydrogen Buse
Slide 23: Raised expectations for 2022 and 2023, extended growth to 2025
We recently raised expectations for 2022 and 2023 and extended expectations for roughly 6% to 8% growth to 2025 NextEra Energy’s Adjusted Earnings Per Share Expectations • Expect adjusted EPS growth $3.35 - in the range of 6% to 8% off $3.60 $3.13 - $3.33 increased 2022 adjusted EPS $2.93 - $3.08 •
Slide 24: NextEra Energy presents a compelling investment opportunity
NextEra Energy presents a compelling investment opportunity NextEra Energy Value Proposition Drill-down of S&P 500 Companies Adj. EPS CAGR(2) 378 Investment grade(1) ~9% ~6% 261 Market capitalization > $25 B Adj. EPS CAGR > 8% past 15 NEE Median S&P 111 years(2) 500 DPS Growth(4) 84 ‘20 – ‘23E Annua
Slide 25: NextEra Energy Partners
NExTera energy’ PARTNERS 2
Slide 26: NextEra Energy Partners is a best-in-class clean energy company
NextEra Energy Partners is a best-in-class clean energy company NextEra Energy Partners’ Portfolio(1) • Stable cash flows supported by: – Long-term contracts with creditworthy counterparties – Geographic and asset diversity • ~8,000 MW of renewables – ~6,640 MW wind – ~1,310 MW solar – ~50 MW storag
Slide 27: NextEra Energy Partners owns one of the largest clean energy portfolios
NextEra Energy Partners owns one of the largest clean energy portfolios in the world World’s Top Generators of Wind and Solar Energy in 2020(1) 70 59 60 50 45 44 44 40 TWh 40 37 30 29 24 21 20 19 10 0 NextEra NEE A B C D E F G H NextEra NEP Energy(2) Energy Partners(3) 1) Competitor production based
Slide 28: NextEra Energy Partners' value proposition
NextEra Energy Partners’ value proposition is driven by its high-quality portfolio, financial strength and flexibility, tax-advantaged structure, and visible growth opportunities Investment Highlights • High quality portfolio with ~14 year remaining contract life(1) Clean Energy – Diversified with ~
Slide 29: Focus on investing in long-term contracted clean energy assets
NextEra Energy Partners continues to focus on investing in long-term contracted clean energy assets with strong creditworthy counterparties and attractive cash flows Growth Strategy Wind Long-Term Organic Wind Solar Contract Growth Clean Strong Energy Operations Technology Attractive Asset to Batter
Slide 30: Acquisitions from Energy Resources provide visibility to continued growth
Acquisitions from Energy Resources provide clear visibility to continued growth at NextEra Energy Partners Energy Resources’ Renewable Portfolio GW Since NextEra Energy Partners’ IPO(1) 50 ~31 GW - ~13 GW 44 GW 40 ~15 GW 30 ~13 GW ~7 GW 20 ~10 GW 10 0 Energy Net MW Placed MW Sold to NEP Current Addi
Slide 31: Well positioned to benefit from significant wind and solar growth
NextEra Energy Partners is well positioned to benefit from the significant wind and solar growth that is expected over the coming years NextEra Energy Partners & Long-Term Renewables Demand U.S. Renewable Energy Capacity through 2030 U.S. Renewables Penetration ~540 GW ~40% ~15% CAGR ~330 GW in MWh
Slide 32: Balance sheet and financing flexibility for future growth
NextEra Energy Partners’ balance sheet and financing flexibility are expected to create a sustainable base for future growth Financial Flexibility • NextEra Energy Partners corporate credit ratings: Convertible PAYGO Tax High-Yield – S&P: BB, stable Equity Equity Debt Portfolio – Moody’s: Ba1, stabl
Slide 33: Convertible equity financings allow efficient common equity issuance
NextEra Energy Partners’ convertible equity financings allow it to efficiently issue common equity over time Illustrative Equity Issuance for Convertible Financings(1) Percent of 10% 8-10% 5-6% 3-4% 2-3% 2-3% 2-3% 2-3% 1-2% 2-3% 0-1% Public Float(2) $900 ~$850 ~$675 ~$600 $600 ~$500 ~$500 ~$525 ~$47
Slide 34: Well-positioned to deliver on long-term growth objectives
NextEra Energy Partners remains well-positioned to deliver on its long-term growth objectives NextEra Energy Partners Adjusted EBITDA and CAFD Expectations Adjusted EBITDA CAFD 12/31/21 Run-Rate(1) $1,635 – $1,795 MM $640 – $720 MM 12/31/22 Run-Rate(2) $1,775 – $1,975 MM $675 – $765 MM Unit Distribu
Slide 35: NextEra Energy Partners presents a compelling investment opportunity
NextEra Energy Partners presents a compelling investment opportunity NextEra Energy Partners Value Proposition Drill-down of S&P 1000 Companies & NextEra Energy Partners Total Return Potential 602 Debt / EBITDA(1) < 5x ~3% 15% - 18% 12% - 15% 77 Dividend yield > 2.5% 8 DPS growth > 60% past 5 years
Slide 36: Appendix
Appendix NexTera’ Nexvera energy’ ENERGY @ PARTNERS Z 36 —
Slide 37: NextEra Energy
NEXTCra’ ENERGY &
Slide 38: Approved 2021 base rate settlement agreement
The approved 2021 base rate settlement agreement keeps bills low and accelerates the U.S.’s largest solar buildout FPL(1) Approved Base Rate Settlement • Unanimous Florida Public Service Commission approval • Key elements of four-year agreement effective January 2022: – Retail base revenue increases
Slide 39: FPL leading with a reliable, modern and clean generation fleet
FPL is leading the industry with a highly reliable, modern and clean generation fleet FPL(1) Clean Energy Generation • Executing one of the world’s largest solar expansions – More than 3,160 MW of solar on combined system(2) – Leads all utilities in the nation with the most solar capacity(3) – Solar
Slide 40: Attracting and retaining a diverse, highly skilled team
We are focused on attracting and retaining a diverse, highly skilled team that can drive innovative solutions for the benefit of customers and shareholders Diverse and Inclusive Teams • Diversity and Inclusion (D&I) D&I Metrics – Executive D&I council Women Minorities – Corporate D&I council – Annua
Slide 41: Commitment to safety
Our commitment to safety is a hallmark of our operating culture and a reflection of our focus on execution Commitment to Safety 2.5 2.2 ~85% improvement in safety 2.0 performance since 2003 1.5 OSHA_ Recordable Rate(1) 1.0 0.5 0.3 0.0 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 1) OSHA Recorda
Slide 42: Building relationships and supporting local communities
We recognize the importance of building relationships and supporting local communities where we live and work Supporting Our Communities >$1.7 B in Over ~$110 B state and >$19 MM local taxes charitable capital invested and fees giving in since 2012(1) paid in 2020 2020 ~$75 MM in FL Office of Tribal
Slide 43: ESG leadership recognized by S&P
NextEra Energy was recently recognized by S&P for its ESG leadership and “best in class” preparedness ESG Highlights(1) Environment Customers(2) • 47% better CO2 emissions rate than • 30% lower bills than the national average industry average in 2020 • 64% better operating costs than industry • Worl
Slide 44: Sustainability governance from board to employees
Our approach to sustainability engages all levels of the company from the board of directors to our employees Sustainability Governance Board of Directors and Board Committees • Oversight of the execution of our strategy including issues which could impact the long-term sustainability of our company
Slide 45: Sound corporate governance and oversight
Our track record of delivering strong financial and operational performance begins with sound corporate governance and oversight Governance Highlights Board Composition(1) Governance Best Practices • 11 of 12 directors are independent • Special meeting threshold of 20% • Independent lead director •
Slide 46: NextEra Energy's credit metrics remain on track
NextEra Energy’s credit metrics remain on track Credit Metrics A- Downgrade Actual Target S&P Range Threshold 2021(1) 2022 FFO/Debt 13%-23% 20% 21.4% >20% Debt/EBITDA 3.5x-4.5x 4.1x <4.5x Baa Downgrade Actual Target Moody’s Range Threshold 2021(1) 2022 CFO Pre-WC/Debt 13%-22% 17% 17.6% >17% CFO-Div/
Slide 47: U.S. Federal tax incentives for renewables extended
U.S. Federal tax incentives for completed renewables projects have been extended into the middle of this decade Extended U.S. Federal Tax Credits Wind Production Solar Investment Tax Credit (PTC) Tax Credit (ITC) Start of Start of Construction COD Wind Construction COD Solar Date Deadline PTC Date D
Slide 48: Reconciliation of EPS to Adjusted EPS
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share(1) (2) (2) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $0.81 $0.82 $1.02 $0.99 $1.1
Slide 49: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the effects of non-qualifying hedges and unrealized ga
Slide 50: 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 51: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) 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 to
Slide 52: NextEra Energy Partners
NExTera energy’ PARTNERS La
Slide 53: NextEra Energy Partners' credit metrics remain on track
NextEra Energy Partners’ credit metrics remain on track Credit Metrics BB Downgrade Actual Target (1) S&P Range Threshold 2021(4) YE 2022 FFO/Debt 12% - 20% 14% 18.1% >15% Ba1 Downgrade Actual Target Moody's (2) Range Threshold 2021(4) YE 2022 Total Consolidated Debt/EBITDA <7.0x >7.0x 6.0x 5.0x - 6
Slide 54: Debt Amortization Schedule
Debt Amortization Schedule(1,2) Quarterly 2022 Fiscal Year Interest Maturity Total Rate Date Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 2023 2024 2025 2026 Thereafter NEE Operating Partners LP 4.25% 2024 - - - - - - 700 - - - 700 NEE Operating Partners LP 4.50% 2027 - - - - - - - - - 550 550 NEE Operating
Slide 55: Expected Cash Available for Distribution (2021 Run-Rate)
NextEra Energy Partners’ Expected Cash Available for Distribution(1) (December 31, 2021 Run-Rate CAFD; $ MM) $1,795-$1,975 ($20-$30) ($140-$150) $1,635-$1,795 ($90-$95) ($135-$175) ($690-$770) ($40-$45) ($10-$20) $640-$720 Project-Level Corporate IDR Fees Adjusted HoldCo Debt Project Debt Pre-Tax Ta
Slide 56: Expected Cash Available for Distribution (2022 Run-Rate)
NextEra Energy Partners’ Expected Cash Available for Distribution(1) (December 31, 2022 Run-Rate CAFD; $ MM) $1,975-$2,175 ($25-$35) ($165-$175) $1,775-$1,975 ($270-$330) ($755-$855) ($40-$45) ($5-$15) $675-$765 (2) Project-Level Corporate IDR Fees Adjusted EBITDA Debt Service Pre-Tax Tax Non-Cash M
Slide 57: Definitional information
Definitional information NextEra Energy Partners, LP. Adjusted EBITDA and CAFD Expectations This presentation refers to adjusted EBITDA and CAFD expectations. NEP’s adjusted EBITDA expectations represent projected (a) revenue less (b) fuel expense, less (c) project operating expenses, less (d) corpo
Slide 58: 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 federal securities laws. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra
Slide 59: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP may not be able to extend, renew or replace expiring or terminated power purchase agreements (PPA), natural gas transportation agreements or other customer contracts at favorable rates or on a long-term basis; If the en
Slide 60: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP's ability to make distributions to its unitholders depends on the ability of NEP OpCo to make cash distributions to its limited partners; If NEP incurs material tax liabilities, NEP's distributions to its unitholders ma
NextEra Energy — Investor Presentation (February 2022) on 6ix