Slide 1: Earnings Conference Call First Quarter 2011
Earnings Conference Call First Quarter 2011 April 29, 2011
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: Non-GAAP Financial Information
Non-GAAP Financial Information This presentation refers to adjusted earnings, which are not financial measurements prepared in accordance with GAAP. Adjusted earnings, as defined by NextEra Energy, represent net income before the mark-to-market effects of non-qualifying hedges and the net effect of
Slide 4: NextEra Energy delivered solid results in the first quarter
NextEra Energy delivered solid results in the first quarter NextEra Energy Highlights – First Quarter 2011 • Florida Power & Light – Net income increased by roughly 7% over the comparable quarter – Increased customer base for five quarters in a row – West County Energy Center Unit 3 nearing completi
Slide 5: NextEra Energy first quarter 2011 adjusted earnings slightly higher; adjusted EPS flat
NextEra Energy’s first quarter 2011 adjusted earnings were slightly higher year over year while adjusted EPS was flat NextEra Energy Results – First Quarter GAAP Adjusted Net Income EPS Earnings EPS ($ millions) ($ millions) $556 $1.36 $386 $392 $0.94 $0.94 $268 $0.64 2010 2011 2010 2011 2010 2011 2
Slide 6: FPL's net income grew approximately 7% year over year
FPL’s net income grew approximately 7% year over year Florida Power & Light Results – First Quarter Net Income EPS ($ millions) $205 $191 $0.49 $0.47 2010 2011 2010 2011 6
Slide 7: FPL EPS Contribution Drivers
FPL’s earnings were driven largely by its increasing rate base FPL EPS Contribution Drivers First Quarter FPL – 2010 EPS $0.47 Drivers: AFUDC $0.01 Clause, primarily solar and nuclear uprates $0.01 Rate base growth and other $0.01 Share dilution ($0.01) FPL – 2011 EPS $0.49 7
Slide 8: Customer Characteristics – First Quarter 2011
FPL is continuing to see improvement in some key customer metrics Customer Characteristics – First Quarter 2011 Retail kWh Sales Customer Growth(1) (Change vs. prior year quarter) (Change vs. previous year) 100 Customer Growth 0.7% 80 60 + Usage Due to Weather -6.7% 40 30,000 # of Customers 20 + Und
Slide 9: Energy Resources Overview
Energy Resources continues to make significant progress on securing PPAs for both wind and solar projects Energy Resources Overview • Secured PPAs for approximately 400 MW of wind projects since the beginning of the year • Extended useful life of newer wind turbine fleet to 30 years – After-tax impa
Slide 10: Energy Resources' first quarter 2011 adjusted EPS decreased roughly 2%
Energy Resources’ first quarter 2011 adjusted EPS decreased roughly 2% year over year Energy Resources’ Results - First Quarter GAAP Adjusted Net Income EPS Earnings EPS ($ millions) ($ millions) $367 $0.89 $196 $189 $0.47 $0.46 $65 $0.16 2010 2011 2010 2011 2010 2011 2010 2011 10 See Appendix for r
Slide 11: Energy Resources adjusted EPS Contribution Drivers
Energy Resources' adjusted EPS was slightly down from the prior year’s comparable quarter Energy Resources Adjusted EPS Contribution Drivers – 2011 First Quarter Energy Resources – 2010 Adjusted EPS $0.47 Drivers: New investments $0.00 Existing assets $0.10 Customer supply businesses and proprietary
Slide 12: Wind Development Update
Energy Resources continues to be successful in signing long- term PPAs Wind Development Update PPAs Secured for Planned • Energy Resources has long- 2011 / 2012 Projects MW term contracts for 953 MW of 1,000 953 MW new wind projects yet to be commissioned Secured 800 400 YTD in – Includes 400 MW of
Slide 13: NextEra Energy EPS Summary – First Quarter 2011
NextEra Energy’s adjusted EPS was flat year over year NextEra Energy EPS Summary – First Quarter 2011 GAAP 2010 2011 Change FPL $0.47 $0.49 $0.02 Energy Resources $0.89 $0.16 ($0.73) Corporate and Other $0.00 ($0.01) ($0.01) Total $1.36 $0.64 ($0.72) Adjusted 2010 2011 Change FPL $0.47 $0.49 $0.02 E
Slide 14: Adjusted Earnings Per Share Expectations
NextEra Energy’s expectations for 2011 adjusted EPS is increasing solely due to the change in estimated useful life of the newer wind fleet Adjusted Earnings Per Share Expectations January 2011 Current View View 2011 $4.25 - $4.55 $4.35 - $4.65 Long-term average annual adjusted EPS growth expected t
Slide 15: NEX Tera
NEX Tera ENERGY &
Slide 16: Q&A Session
16 Q&A Session NExTera’ ENERGY 2
Slide 17: NEX Tera
NEX Tera ENERGY &
Slide 18: Appendix
18 Appendix NExTera’ ENERGY 2
Slide 19: 2011 Portfolio Financial Information
2011 Portfolio Financial Information 1 Expected Adjusted Gross % Adjusted Adjusted EBITDA2 Remaining3 Following4 Generation Margin2 Range Gross Margin Range Contract Year PTC MWs Mwh's $ in millions Hedged $ in millions Life Expiration Contracted Wind6 Midwest 2,576 8,786,137 $570 - $600 99% $495 -
Slide 20: 2012 Portfolio Financial Information
2012 Portfolio Financial Information 1 2 3 4 Expected Adjusted Gross % Adjusted Adjusted EBITDA Remaining Following 2 Generation Margin Range Gross Margin Range Contract Year PTC MWs Mwh's $ in millions Hedged $ in millions Life Expiration 6 Contracted Wind Midwest 2,576 9,317,951 $595 - $625 95% $5
Slide 21: Natural Gas: 10-Year Price Strip
Natural gas prices have increased since the start of the year Natural Gas: 10-Year Price Strip (2011-2020) $/MMBtu 8.00 7.50 04/15/2011 7.00 6.50 6.00 5.50 12/31/2010 5.00 4.50 4.00 Bal 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 21
Slide 22: Wind Resource Performance
Wind Resource Performance Gross1 MWh Production: Actual vs. Long Term Expected Average (Fifteen month trend ended March 31, 2011(2)) 1) MWh production from wind resource prior to reductions for actual and planned outages and curtailments. 2) Includes incremental new wind investment beginning in the
Slide 23: Energy Resources – Wind Portfolio Locations
Energy Resources – Wind Portfolio Locations as of March 31, 2011 Mount Copper Mount Miller Ghost Pine Ashtabula II Midwest Baldwin West Oliver County I&II Wilton I&II Langdon I&II Pubnico Point Ashtabula I&III Stateline North Dakota South Dakota Mower County Butler Ridge Northeast Vansycle I & II We
Slide 24: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) Asset/(Liability) Balance as of 12/31/10 $241.6 Primary Drivers: Amounts Realized During 1st Quarter (21.1) Revenue Hedges – Gas Change in Forward Prices (all positions) (103.7) & Power Prices ($96.2) Subtotal (124.8) All Other –
Slide 25: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) 1st Quarter Asset / Deals Asset / (Liability) Change in Executed Total (Liability) Balance Amounts Forward During Unrealized Balance Description 12/31/10 Realized Prices Period (2) MTM 3/31/11 Natural gas related positions $ 230.
Slide 26: Non-Qualifying Hedges – Summary of Forward Maturity
Non-Qualifying Hedges(1) – Summary of Forward Maturity ($ millions, after-tax) Gain / (Loss) (2) Asset / (Liability) Balance Total Description 3/31/11 2011 2012 2013 2014 2015 - 2032 2011 - 2032 Natural gas related positions $ 127.9 $ (61.2) $ (48.8) $ (11.9) $ (8.1) $ 2.1 $ (127.9) Spark spread rel
Slide 27: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Three Months Ended March 31, 2011) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 205 $ 65 $ (2) $ 268 Adjustments, net of income taxes: Net unrealize
Slide 28: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Three Months Ended March 31, 2010) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 191 $ 367 $ (2) $ 556 Adjustments, net of income taxes: Net unrealiz
Slide 29: Reconciliation of 2010 Adjusted EBITDA to EBITDA
Reconciliation of 2010 Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA) to EBITDA (Full Year Ended December 31, 2010) GAAP Adjustments Adjusted (1) Net income $1,957 ($179) $1,778 Add back interest 979 0 979 (1) Add back income taxes 532 (116) 416 Add back dep
Slide 30: 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
Slide 31: 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
Slide 32: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) markets. NextEra Energy and its subsidiaries will need to adapt to any changes and may face increasing costs and competitive pressures in doing so. NextEra Energy produces the majority of its electricity from clean and rene
Slide 33: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) affect the availability or cost of fossil fuels. The construction, operation and maintenance of nuclear generation facilities involve risks that could result in fines or the closure of nuclear generation facilities owned
Slide 34: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) transmission, distribution, gas infrastructure and other facilities on schedule and within budget may be adversely affected by escalating costs for materials and labor and regulatory compliance, inability to obtain or renew
Slide 35: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) failure of an operating facility of NextEra Energy, for example, may prevent NextEra Energy from performing under applicable power sales agreements which, in some situations, could result in termination of the agreement or
Slide 36: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) placed in service prior to 2013, (2) investment tax credits (ITCs) of 30% of the cost for qualifying wind facilities placed in service prior to 2013, or (3) an election to receive a cash grant of 30% of the cost of qualifyi
Slide 37: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) In addition, NextEra Energy’s and FPL’s financial results would be affected by the impact of severe weather, such as hurricanes, floods and earthquakes, which can be destructive and cause power outages and property damage
Slide 38: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) component of total capitalization, and political, legislative and regulatory actions. There can be no assurance that one or more of the ratings of NextEra Energy, Capital Holdings and FPL will not be lowered or withdrawn en
Slide 39: 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 and liquidity could be materially adversely affected if the rules implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) broaden the scope of
Slide 40: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) tax credits, including, but not limited to, estimates for potential adverse outcomes regarding tax positions that have been taken and the ability to utilize tax benefit carryforwards, such as net operating loss and tax cred
Slide 41: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy and FPL are subject to the potentially adverse operating and financial effects of terrorist acts and threats, as well as cyber attacks and other disruptive activities of individuals or groups. NextEra Energ
Slide 42: 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
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