Nextera Energy, Inc. · NYSE:NEE

Nextera Energy — Investor Presentation (November 2011)

55 slides from Nextera Energy's investor presentation, November 2011

1. Slide 1: November/December Investor Presentation

   November/December Investor Presentation

2. 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

3. Slide 3: 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 • $23.5 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

4. Slide 4: NextEra Energy is well positioned to capitalize on today's market opportunities

   NextEra Energy is well positioned to capitalize on today’s market opportunities Attractive Investment Opportunity • Visible growth opportunities at all three main businesses • Aligned with fundamental trends driving the industry – Low exposure to new environmental regulation • Underpinned by excelle

5. 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 2011E Adjusted EBITDA Long-Term Contracted 27% FPL Other 52% 4% Hedged 17% Cumulative Capital Deployed ($B) Adjusted EPS(1) .5% $34.7 CAGR 7 $3.84 $4.05 $4.30 $28.9 $3.49 $22.8 $3.

6. Slide 6: Strategic focus on clean generation assets has resulted 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 Hydro (MWh) (Lbs/MWh) 1.0% Solar 16 0.2% Nuclear Wind 26.4% 12 Coal 11.9% 3.6% 8 NextEra Oil Energy 2.7% Nat

7. Slide 7: Attractive upside given the continuing direction of U.S. environmental policy

   …which provides attractive upside given the continuing direction of U.S. environmental policy Summary of EPA Rules Announced Coal Plant Retirements(1) (Cumulative MW 000s) 28.0 EPA Rule Status 25.4 26.4 26.7 23.9 Cross-State Air Pollution Finalized 22.1 Rule (CSAPR) 18.5 SO2 NAAQS Finalized 10.2 Tox

8. Slide 8: Growth opportunities are tangible and weighted toward regulated and long-term contracted

   NextEra Energy’s growth opportunities are tangible and weighted primarily toward regulated and long-term contracted opportunities NextEra Energy Growth Outlook • FPL has ~$10.5 - $11.5 B of capital earmarked for deployment through 2014(1) – Rate base(2) is estimated to grow at an approximate 8.1% an

9. Slide 9: Florida Power & Light is in the midst of the largest development cycle

   • Florida Power & Light is in the midst of the largest development cycle in its history • Estimated 8.1% annual rate base(1) growth from 2011 through 2014 9 1) Rate base includes retail and wholesale rate base, clause-related, and AFUDC projects

10. Slide 10: FPL is in the largest development cycle in its history

    FPL is in the largest development cycle in its history, the outcome of which will provide significant overall savings to its customers FPL’s Major Capital Projects Through 2014 Estimated Approx. Fuel Est. PSC In-Service Size (MW) Facility Name Type Cost ($B) Approved Recovery 2011-2013 450 Nuclear u

11. Slide 11: Proposed Port Everglades modernization

    The proposed Port Everglades modernization, a sister facility to Cape Canaveral and Riviera Beach, is expected to provide significant savings for customers while reducing emissions Port Everglades Modernization Current Port Everglades Plant Modernized Port Everglades Energy Center Capital Cost ($ B)

12. Slide 12: FPL's investments in new generation improve the system heat rate

    FPL’s investments in new generation improve the system heat rate resulting in substantial fuel savings for customers… FPL’s Fossil System Average Heat Rate(1) 10,000 21% 9,635 effic ienc y impr ovem 9,000 ent 8,445 Btu per kWh 8,000 7,900 7,600 7,000 6,000 2001 2006 2011 2016 Actual Actual Projected

13. Slide 13: High quality service to our customers

    …and high quality service to our customers… SAIDI: System Average (1) Interruption Duration Index Frequency of Interruptions Avg. # of Minutes Good Interruptions per customer 175 1.5 32 % Industry Average I mp r 150 ovem ent 125 100 1 FPL 75 50 25 0.5 03 04 05 06 07 08 09 10 03 04 05 06 07 08 09 10

14. Slide 14: Lowest typical electric bill in Florida

    …while providing our customers with the lowest typical electric bill in Florida Florida Electric Utility Residential Bill Comparison(1) For Rates Effective September 2011 $170 Residential Bill (1,000 kWh) Florida Average U.S. Average(2) FPL $150 $124.89 $121.08 $96.54 $130 $110 $90 $70 $50 FPL’s typ

15. Slide 15: Additional investments at FPL will drive an increasing rate base

    Over the next few years, additional investments in generation and infrastructure at FPL will drive an increasing rate base… FPL Rate Base (2011-2014E) $B 1-2014: 8.1% CA GR 201 t ed Estima $30.0 $27.3 - $27.7 $26.4 - $26.8 $25.0 $24.7 - $24.9 $21.7 - $21.9 $20.0 $15.0 $10.0 $5.0 $0.0 2011 E 2012 E 2

16. Slide 16: Retail regulatory return on equity expected to remain constant

    … while retail regulatory return on equity is expected to remain constant Retail Regulatory Return on Equity ROE At or near At or near 12.0% 11.0% 11.0% 11.0% 10.1% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2009 2010 2011E 2012E The planned use of the surplus depreciation amortization should allow FPL to reali

17. Slide 17: Energy Resources has a robust backlog of long-term contracted renewable projects

    • Energy Resources has a robust backlog of long-term contracted renewable projects 17

18. Slide 18: Energy Resources has significant visible growth from tangible projects through 2014

    Energy Resources has significant visible growth from tangible projects through 2014 Estimated Capital Expenditures for Projects with a PPA(1) $4.2 B - $4.6 B Solar $2.1 B - $2.3 B $2.6 B - $3.0 B Solar $1.3 B - $1.5 B Wind $2.1 B - $2.3 B Wind $1.3 B - $1.5 B 2011-2012 2013-2014 In total, Energy Res

19. Slide 19: Why Invest in Renewable Generation?

    Long-term contracted renewable projects offer tangible growth opportunities with attractive returns Why Invest in Renewable Generation? • Attractive returns and visible cash flows with long-term contracts • Growth opportunities not linked to commodities cycle – Demand spurred by state RPS goals • In

20. Slide 20: Energy Resources' backlog of new solar opportunities is significant

    Energy Resources’ backlog of new solar opportunities is significant and is expected to contribute meaningfully to adjusted earnings starting in 2013 Solar Growth Plans – 2011-2016 • 940 MW of already-contracted Planned Solar Projects(1) with Long-Term Contracts solar projects planned for in- service

21. Slide 21: Long-term PPAs for two new solar PV projects

    Energy Resources has long-term PPAs for two new solar PV projects Desert Sunlight McCoy • 550 MW solar PV project • 250 MW solar PV project – Energy Resources owns 50% of – Greenfield development, 100% the project owned by Energy Resources • Expected to begin partial operations in 2013 and reach • E

22. Slide 22: Energy Resources is by far the 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 Energy Resources Wind Growth Cumulative Wind Growth Top U.S. Wind Developers / Owners (MW) (MW) 8,298 (1) 8,078 % : 22 7,544 GR 0 CA 6,375 -201 02 20 5,077 4,301 4,016 3

23. Slide 23: Success securing long-term contracts for wind energy

    Energy Resources continues to be successful securing long- term contracts for wind energy creating a strong development backlog Wind Development Update • In 2011 and 2012, Energy Planned Wind Projects Resources plans to add 1,400 to with Long-Term Contracts(1) 2,000 MW of new wind capacity MW – 1,31

24. Slide 24: Lone Star is a rate-regulated utility in Texas

    • Lone Star is a rate-regulated utility in Texas representing approximately $800 MM of planned investments 24

25. Slide 25: Lone Star's CREZ line represents a significant regulated growth opportunity

    Successful development of Lone Star’s CREZ line represents a significant regulated growth opportunity 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 • Received approval f

26. Slide 26: NEXTera

    NEXTera ENERGY & era L@®NEStar ENERGY 2% BPR pesos ae NExTera’ ENERGY Z

27. Slide 27: Strong adjusted earnings and dividend growth over the past decade

    NextEra Energy has produced strong adjusted earnings and dividend growth over the past decade Adjusted Earnings and Dividends Growth History Adjusted Earnings Per Share(1) Dividends Per Share(2) $4.30 (3) 5 % $2.20 . GR7 $4.05 : 7.4 % $3.84 $2.00 0 CA AGR 1 C $1.89 2-20 $3.49 011 $1.78 0 2-2 20 0 $3

28. Slide 28: Adjusted EPS drivers in the next couple of years

    In the next couple of years, adjusted EPS is expected to be driven by growth at FPL and, to a lesser extent, Energy Resources’ investment backlog 2012 – 2013 Adjusted Earnings Drivers • Growth at FPL is the primary driver – Includes investments designed to help keep customer bills low • Growth at En

29. Slide 29: 2012 growth at FPL offset by headwinds at Energy Resources

    In 2012, growth at FPL and contributions from new assets at Energy Resources are largely offset by headwinds including lower hedge prices and PTC roll-off 2012 Adjusted EPS Drivers • Growth at FPL – Total rate base(1) is expected to grow approximately 14% from 2011, and retail regulatory ROE is expe

30. Slide 30: 2013 drivers of significant adjusted EPS growth

    In 2013, growth at FPL, stronger contributions from new assets at Energy Resources, and weaker headwinds are expected to drive significant adjusted EPS growth 2013 Adjusted EPS Drivers • Growth at FPL – Total rate base(1) is expected to grow approximately 7% from 2012 • At Energy Resources: – Strong

31. Slide 31: Energy Resources' earnings growth will come from multiple sources

    Energy Resources’ earnings growth will come from multiple sources Energy Resources Adjusted Earnings – 2011E-2013E(1) ($ MM) y 6.1% appr oximatel o wth r ate of ual gr mpound ann Co ~ $55 $(205) - $(185) $15 - $25 $35 - $55 $60 - $75 $90 - $115 $740 - $780 $665 - $685 PTC expiration $(65) Merchant p

32. Slide 32: Investments expected to significantly increase cash generation in 2013 and beyond

    The significant investments we are making across the business are expected to significantly increase cash generation in 2013 and beyond 2014 Earnings Drivers and 2013-2014 Cash From Operations Expectations • In 2014, we expect additional earnings contributions from: – Energy Resources’ new projects

33. Slide 33: NextEra Energy's adjusted EPS expectations

    NextEra Energy’s adjusted EPS expectations Adjusted Earnings Per Share Expectations 2011 Low end of $4.35 - $4.65 2012 $4.35 - $4.65 Avg. annual adjusted EPS growth of 5% to 7% 2011 - 2014 through 2014, from a 2011 base of $4.35 to $4.65, equating to a range of $5.05 to $5.65 NextEra Energy’s adjust

34. Slide 34: Solid growth opportunities and strong track record present an attractive value proposition

    NextEra Energy’s solid growth opportunities and strong track record present an attractive value proposition NextEra Energy Value Proposition • Strong organic growth prospects Comparative Earnings driving adjusted EPS growth of 5%- Growth and Dividend Yield 7% through 2014 from a 2011 base 12.0% 10.9

35. Slide 35: Appendix

    35 Appendix NExTera’ ENERGY Z

36. Slide 36: Energy Resources' existing assets are largely contracted or hedged for 2012

    Energy Resources’ existing assets are largely contracted or hedged for 2012 2012 Equivalent Gross Margin Contributions(1) 2012 Portfolio Sensitivities 5% New Investments(5) • $1/MMBtu change in natural gas ≈ 3-4 cents in 11% Other (2) adjusted EPS(3) 55% Contracted 29% Merchant Assets • 1% change in

37. Slide 37: 2012 Portfolio Financial Information

    2012 Portfolio Financial Information Equivalent Equivalent Equivalent Expected Gross Margin1 % Gross EBITDA1 Remaining2 Following3 Generation Range Margin Range Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expiration Contracted Wind4 6,860 21.8 $1,295 - $1,345 97% $1,010 - $1,

38. Slide 38: Energy Resources' existing assets are largely contracted or hedged for 2013

    Energy Resources’ existing assets are largely contracted or hedged for 2013 2013 Equivalent Gross Margin Contributions(1) 2013 Portfolio Sensitivities 13% New • $1/MMBtu change in Investments(5) natural gas ≈ 6-7 cents in 11% Other(2) 50% adjusted EPS(3) Contracted Assets 26% (94% hedged) Merchant •

39. Slide 39: 2013 Portfolio Financial Information

    2013 Portfolio Financial Information Equivalent Equivalent Equivalent Expected Gross Margin2 % Gross EBITDA2 Remaining3 Following4 Generation Range Margin Range Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expiration Contracted 4 Wind 6,860 21.8 $1,285 - $1,335 94% $985 - $1,0

40. Slide 40: 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

41. Slide 41: Cautionary Statement And Risk Factors That May Affect Future Results

    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

42. Slide 42: 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

43. Slide 43: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy’s and FPL’s businesses are subject to risks associated with legislative and regulatory initiatives.  NextEra Energy and FPL operate in a changing market environment influenced by various legislative and regu

44. Slide 44: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.)  create substantial additional costs in the form of taxes or emission allowances;  make some of NextEra Energy’s and FPL’s electric generating units uneconomical to operate in the long term;  require significant capital

45. Slide 45: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.)  Terrorist threats and increased public scrutiny of nuclear generation facilities could result in increased nuclear licensing or compliance costs which are difficult or impossible to predict. NextEra Energy’s and FPL’s ope

46. Slide 46: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.)  inability to properly manage or mitigate known equipment defects throughout NextEra Energy’s and FPL’s generation fleets and transmission and distribution systems;  use of new or unproven technology; and  dependence on

47. Slide 47: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.)  There can be significant volatility in market prices for fuel, electricity and renewable and other energy commodities. NextEra Energy’s inability or failure to hedge effectively its assets or positions against changes in

48. Slide 48: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.)  NextEra Energy and FPL are exposed to risks associated with the creditworthiness and performance of their customers, hedging counterparties and vendors under contracts for the supply of equipment, materials, fuel and othe

49. Slide 49: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.) Disruptions, uncertainty or volatility in the credit and capital markets may negatively affect NextEra Energy’s and FPL’s ability to fund their liquidity and capital needs and to meet their growth objectives, and can also a

50. Slide 50: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.)  NextEra Energy and FPL use derivative instruments, such as swaps, options, futures and forwards, some of which are traded in the over-the-counter (OTC) markets or on exchanges, to manage their commodity and financial mark

51. Slide 51: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.)  The Dodd-Frank Act was enacted into law in July 2010 which, among other things, provides for the regulation of the OTC derivatives market. While the legislation is broad and detailed, substantial portions of the legislati

52. Slide 52: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.)  NextEra Energy’s and FPL’s provision for income taxes and reporting of tax-related assets and liabilities requires significant judgments and the use of estimates. Amounts of tax-related assets and liabilities involve judg

53. Slide 53: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.) Threats of terrorism and catastrophic events that could result from terrorism, cyber attacks, or individuals and/or groups attempting to disrupt NextEra Energy’s and FPL’s businesses, or the businesses of third parties, may

54. Slide 54: Cautionary Statement And Risk Factors (cont.)

    Cautionary Statement And Risk Factors That May Affect Future Results (cont.) The businesses and financial results of NextEra Energy and FPL could be negatively affected by the lack of a qualified workforce, work strikes or stoppages and increasing personnel costs.  NextEra Energy and FPL may not be

55. Slide 55: NEX Tera

    NEX Tera ENERGY &

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