Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Investor Presentation (February 2016)
35 slides from Nextera Energy's investor presentation, February 2016
Slide 1: Japan Investor Presentation
Japan Investor Presentation February 2016
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
Cautionary Statements And Risk Factors That May Affect Future Results This presentation includes 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: Table of Contents
Table of Contents • NextEra Energy, Inc. Overview (NYSE: NEE) Slide 4 • Florida Power & Light Slide 9 • NextEra Energy Resources Slide 14 • NextEra Energy Partners, LP (NYSE: NEP) Slide 20 • Financial Review Slide 26 • Appendix Slide 29 3
Slide 4: NextEra Energy is comprised of two strong businesses supported by a common platform
NextEra Energy is comprised of two strong businesses supported by a common platform • $48 B market capitalization • 46 GW in operation(1) • $82 B in total assets • Strategic partnership with • The largest individual • The world leader in utility in the nation by electricity generated electric sales(
Slide 5: Built on a foundation of best-in-class operational excellence and financial strength
Built on a foundation of best-in-class operational excellence and financial strength, and focused on clean generation Cost and Reliability Generation Profile 2014 Utility & Corporate Benchmarks 2014 NextEra Energy Fuel Mix MWhs(4) Good Industry 7.4% Nuclear Wind Good 26% 17% Industry ~$24 FL Avg ~97
Slide 6: 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 Adjusted Earnings Per Share(1) North American Presence $5.71 $5.30 $4.97 $4.30 $4.39 $4.57 $3.84 $4.05 $3.49 $3.04 $2.63 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Dividends Per Share Cumulative Capital
Slide 7: Over a sustained period of time, our growth strategy has led to real change in relative position
Over a sustained period of time, our growth strategy has led to real change in relative position Top 20 Global Utility Equity Market Capitalization(1) As of 6/1/2001 ($ MM) As of 12/31/2015 ($ MM) Rank Market Cap Rank Market Cap 1 $38,574 1 $51,730 2 $38,185 2 $49,140 3 $34,476 3 $47,845 NextEra Ene
Slide 8: NextEra Energy: Partnership with NEP
NEP forms an excellent complement to NextEra Energy NextEra Energy: Partnership with NEP • Best-in-class yieldco vehicle through – Strong sponsor with proven development track record – Extensive potential drop down visibility – Well-aligned incentives, using proven MLP-like structure with IDRs • Hig
Slide 9: 9
9
Slide 10: FPL is one of the best utility franchises in the U.S.
FPL is one of the best utility franchises in the U.S. Florida Power & Light Core Strategy Service Territory Superior Customer Value Delivery Strong Customer Financial Virtuous Circle Satisfaction Position Constructive Regulatory Environment • Low Cost • 4.8 MM customer accounts • High Reliability •
Slide 11: Our value delivery is founded on a low cost position and best-in-class operations
Our value delivery is founded on a low cost position and best- in-class operations Operational Cost Effectiveness(1) $100.00 Good Adjusted Regressed Top Decile $/Retail MWh FPL ~$15 Log/Log $10.00 1,000,000 10,000,000 100,000,000 1,000,000,000 Retail MWh (1) FERC Form 1, 2014. Excludes pensions and
Slide 12: FPL's net income is largely a function of capital employed, capital structure and ROE earned
FPL’s net income is largely a function of capital employed, capital structure (equity ratio) and ROE earned Net Income, Regulatory Capital Employed and ROE Net Income Regulatory Capital Employed $1,600 $1,517 $35 $1,400 $1,349 $30 Total 13-Month Net $1,200 $29.3 $25 Average Income $1,000 $27.7 Regul
Slide 13: FPL will file in 2016 for rate relief beginning in 2017
FPL will file in 2016 for rate relief beginning in 2017 Estimated FPL Rate Case Timeline March Late Q2 Q4 2016 Q2 Early Q3 Q3 2016 File formal Quality of Intervenor, Final staff, and FPL Rate rate request service decision by rebuttal hearings (testimony; hearings PSC detailed data testimony expected
Slide 14: NextEra Energy Resources
NEXTeCra’ ENERGY &% RESOURCES _
Slide 15: Energy Resources is a diversified clean energy company whose skills and assets are well aligned to drive growth
Energy Resources is a diversified clean energy company whose skills and assets are well aligned to drive growth Energy Resources Skills and Capabilities Generation Portfolio(1) • Largest, most successful developer of renewables in North America – Consistent strategy to build, own and operate environ
Slide 16: We believe the outlook for our renewables business at Energy Resources has never been stronger
We believe the outlook for our renewables business at Energy Resources has never been stronger Energy Resources Renewables Development • Added over 12 GW of new renewables through 2014 18,000 Wind MW 12,000 Solar MW 6,000 0 2002 2004 2006 2008 2010 2012 2014 • Currently 4 GW of new wind and solar pr
Slide 17: U.S. Federal tax incentives for renewables help offer attractive pricing while economics continue to improve
U.S. Federal tax incentives for renewables help offer attractive pricing while economics continue to improve Extended U.S Federal Tax Credits Wind Production Solar Investment Tax Credit (PTC) Tax Credit (ITC) Start of Potential Start of Potential Construction COD Wind Construction COD Solar Date Dea
Slide 18: Generation retirements create opportunities for coal-to-gas and coal-to-renewables switching
Generation retirements create opportunities for coal-to-gas and coal-to-renewables switching North American Generation Retirements 100 Coal 80 Gas Oil Nuc Cumulative 60 GW 40 20 0 2010 2011 2012 2013 2014 2015 Data Source: Velocity Suite, an ABB Enterprise 18
Slide 19: We have leveraged our skills and capabilities from gas infrastructure activities to expand into the gas pipeline business
We have leveraged our skills and capabilities from gas infrastructure activities to expand into the gas pipeline business Gas Pipeline Assets Sabal Trail and Florida Mountain Valley Pipeline Texas Pipelines(1) Southeast Connection • Energy Resources expects • Energy Resources expects • NEP completed
Slide 20: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 21: We believe NEP is the premier company in the yieldco space
We believe NEP is the premier company in the yieldco space and we are focused on sustaining this position Characteristics of a Great Yieldco NEP • Strong sponsor • Operational excellence • High quality projects • High-profile drop-down visibility • Well-aligned incentives 21
Slide 22: NEP benefits from substantial sponsor strength
NEP benefits from substantial sponsor strength Sponsor Strength Operational Sponsor Excellence Alignment • Largest generator in North America of renewable energy from the wind and sun • ~21 GW in operation(1) • Assets primarily in 25 states and Canada • Portfolio efficiencies driven by scale, techno
Slide 23: NEP has more than doubled the size of its portfolio since the IPO
NEP has more than doubled the size of its portfolio since the IPO NEP Portfolio Additions Renewables Capacity(1) Annualized Rate of DPU(2) 2,072 MW $1.23 $0.75 990 MW IPO Q4 2015 IPO Q4 2015 Average Contract Life(3) Average Counterparty Credit(3,4) A2 21 Years 19 Years A3 IPO 12/31/2015 IPO 12/31/20
Slide 24: The NEP portfolio is diversified by geography and asset mix
The NEP portfolio is diversified by geography and asset mix NEP Portfolio(1) Wind Asset Solar Asset Pipelines (1) Excludes ownership interest in equity method investments As of December 31, 2015 24
Slide 25: NEP's distributable cash flow is driven by OpCo distributions
NEP’s distributable cash flow is driven by OpCo distributions Distribution Policy • The operating subsidiaries Public manage the project entities, Unitholders service debt payments and fund any maintenance CapEx requirements NextEra Energy Partners NextEra Energy • The OpCo manages the cash flowing
Slide 26: Financial Review
NExTera’ ENERGY @ FINANCIAL REVIEW
Slide 27: Our diverse banking relationships have enabled us to secure ~$22 billion in credit
Our diverse banking relationships have enabled us to secure ~$22 billion(1) in credit from over 100 banks that span 20 countries and 4 continents Country Breakdown by Funding Our lending group is large, balanced and well-diversified (1) Reflects corporate credit facilities, commitments and term loan
Slide 28: NextEra Energy is one of the strongest investment-grade rated electric utilities in the U.S.
NextEra Energy is one of the strongest investment-grade rated electric utilities in the U.S. NextEra Energy Ratings(1) Utility Credit Ratings(2) S&P Moody’s Fitch NextEra Energy 40% NextEra Energy Issuer Credit Rating A- Baa1 A- 35% Outlook Stable Stable Stable 30% Florida Power & Light 25% 25% Firs
Slide 29: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS 2 29
Slide 30: NExTera’
NExTera’ ENERGY @
Slide 31: Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 2.34 $ 3.23 $ 3.27 $ 4.07 $ 3.97 $ 4.74 $ 4.59 $ 4.56 $ 4.47 $
Slide 32: 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 33: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) inability or failure to manage properly or hedge effectively the commodity risk within its portfolio; potential volatility of NextEra Energy's results of operations caused by sales of power on the spot market or on a short-
Slide 34: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 35: Definitional information
Definitional information NextEra Energy Partners, LP. Adjusted EBITDA Expectations This presentation refers to adjusted EBITDA expectations. NEP’s adjusted EBITDA expectations represent projected revenue less fuel expense, project operating expenses, corporate G&A, plus other income and deductions i
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