Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — FY2013 Earnings Presentation
37 slides from Nextera Energy's earnings presentation, Jan 28, 2014
Slide 1: Earnings Conference Call Fourth Quarter and Full-Year 2013
Earnings Conference Call Fourth Quarter and Full-Year 2013 January 28, 2014
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: NextEra Energy delivered strong financial results in 2013
NextEra Energy delivered strong financial results in 2013 by executing on our primary objectives NextEra Energy Overview • FPL: – Net income growth driven by continued investment in the business – All major capital projects are on track – Cost and productivity improvements provide line of sight towa
Slide 4: Excellent progress on major capital projects in 2013
We have made excellent progress on our major capital projects in 2013 FPL Major Capital Projects Modernization Projects Nuclear Uprates • Cape Canaveral completed • Successfully completed our ahead of schedule and under extended nuclear power budget uprate program in April 2013 – COD April 2013 – Ad
Slide 5: Energy Resources executed well on major capital projects
Energy Resources executed well on major capital projects and grew adjusted earnings year over year Energy Resources’ Highlights • 2013 – 2015 U.S. wind development program is on track – 1,425 MW of projects are either already placed in service or are already contracted – Commissioned 250 MW of U.S.
Slide 6: FPL's full-year contribution to EPS increased
FPL’s full-year contribution to EPS increased due to investments in the business that benefit customers Florida Power & Light – 2013 Results Fourth Quarter Full Year Net Income EPS Net Income EPS ($ MM) ($ MM) $1,349 $256 $1,240 $3.16 $248 $0.61 $2.96 $0.57 2012 2013 2012 2013 2012 2013 2012 2013 6
Slide 7: FPL's EPS grew 20 cents year-over-year
FPL’s earnings per share grew 20 cents year-over-year, driven primarily by continued investment in the business Florida Power & Light EPS Contribution Drivers EPS Growth Regulatory Capital Invested(1) Fourth Quarter Full-Year FPL – 2012 EPS $0.61 $2.96 $B Drivers: 30 27.7 25.1 New investment growth
Slide 8: Florida's economy continues to improve
Florida’s economy continues to improve Florida Economy Florida Unemployment Rate(1) Florida Building Permits(2) 12% 12,000 10% 10,000 8% 8,000 6% 6,000 4% 4,000 2% 2,000 0% 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Florida Mortgages 90+ Days
Slide 9: FPL volume metrics improved to pre-recession levels
Many of FPL’s volume metrics improved to pre-recession levels in the fourth quarter Customer Characteristics (through December 2013) Customer Growth(1,3) Retail kWh Sales (Change vs. prior-year quarter) Full- 100 Q4 Year # of 80 Customers 80 Customer Growth & Mix 0.8% 0.6% (000’s) 60 + Usage Growth
Slide 10: FPL – Other Developments
FPL is pursuing opportunities to improve its customer value proposition FPL – Other Developments • Storm hardening plan approved in November • Currently reevaluating peaker upgrade projects – Working with Florida Department of Environmental Protection to measure our existing peaker impact on local a
Slide 11: Energy Resources – 2013 Results
Energy Resources executed well on major capital projects and grew adjusted earnings year over year Energy Resources – 2013 Results Fourth Quarter Full-Year GAAP Net Income EPS Net Income EPS ($ MM) ($ MM) $171 $687 $1.64 $0.41 $556 $1.30 $85 $0.20 2012 2013 2012 2013 2012 2013 2012 2013 Adjusted $17
Slide 12: Energy Resources' adjusted earnings increased 17 cents
Energy Resources’ adjusted earnings increased 17 cents over the prior year Energy Resources Full Year 2013 Adjusted EPS(1) Contribution Drivers $2.40 $0.31 $0.04 ($0.03) ($0.12) $2.00 ($0.02) ($0.01) $1.83 $1.66 $1.60 $1.20 $0.80 $0.40 $0.00 2012 New Gas Existing Corporate, G&A, Asset sales Customer
Slide 13: Percentage of PTCs allocated to investors grew in 2013
The percentage of PTCs allocated to investors grew in 2013 and we expect that proportion to continue to grow in 2014 Wind Production Summary 2008 2009 2010 2011 2012 2013 (1) Effective Capacity (MW) 5,388 6,493 7,624 8,386 8,887 10,117 Wind Production (TWh) 15.4 15.8 20.4 24.6 25.8 29.2 Implied Aver
Slide 14: NextEra Energy's 2013 adjusted EPS increased ~9%
NextEra Energy’s 2013 adjusted earnings per share increased ~9% year over year NextEra Energy Results Fourth Quarter EPS Full-Year EPS GAAP 2012 2013 Change GAAP 2012 2013 Change FPL $0.61 $0.57 ($0.04) FPL $2.96 $3.16 $0.20 Energy Resources $0.41 $0.20 ($0.21) Energy Resources $1.64 $1.30 ($0.34) C
Slide 15: Cash provided by operations increased significantly in 2013
Cash provided by operations increased significantly in 2013 2013 Cash Flow and Financing Free Cash Flow $ MM • Cash from operations increased Cash from Operations $5,098 more than $1 B in 2013 Less: Cash to Investing ($6,123) • Expect cash from operations Common Dividends (1,122) Free Cash Flow Defi
Slide 16: Adjusted Earnings Per Share Expectations
NextEra Energy Adjusted Earnings Per Share Expectations 2014 $5.05 - $5.45 Long-term 5% to 7% CAGR through 2016 off growth rate a 2012 base 16
Slide 17: Focus for 2014
Focus for 2014 • NextEra Energy: – Project Momentum: Implement the many initiatives to underpin our strong cost position – Maintain a strong credit position • FPL: – Maintain leading customer value proposition – Continue execution on large construction projects – Finalize scope for peaking facilitie
Slide 18: Q&A Session
18 Q&A Session NEXTCra’ ENERGY &
Slide 19: NEX Tera
NEX Tera ENERGY &
Slide 20: Appendix
20 Appendix NEXTCra’ ENERGY 2
Slide 21: Energy Resources' 2013 Equivalent EBITDA by Asset Category
Energy Resources’ 2013 Equivalent EBITDA by Asset Category(1) Q3 2012 Primary Expectations Actual Driver of Delta Contracted Wind $1,255 - $1,305 $1,209 Lower wind generation Contracted Other $500 - $530 $536 Texas Wind $335 - $385 $349 Northeast (Nuclear & Hydro) $300 - $330 $313 Spark Spread & Oth
Slide 22: Potential drivers of variability to consolidated adjusted EPS
Potential drivers of variability to consolidated adjusted EPS 2014 Potential Sources of Variability(1) Florida Power & Light • Wholesale (primarily volume) ± $0.02 • Timing of investment ± $0.02 NextEra Energy Resources • Natural gas prices (± $1/MMBtu change) ± $0.03 - $0.04 • Wind resource (± 1% d
Slide 23: NextEra Energy Resources Projected 2014 Portfolio Financial Information
NextEra Energy Resources Projected 2014 Portfolio Financial Information (as of December 6, 2013) Equivalent Equivalent Equivalent 1 1 2 3 Expected Gross Margin % Gross EBITDA Remaining Following Generation Range Margin Range Contract Year PTC MW TWh $ MM Hedged $ MM Life Expiration Contracted 4 Wind
Slide 24: Existing assets largely contracted or hedged for 2015
Energy Resources’ existing assets are largely contracted or hedged for 2015 2015 Equivalent Gross Margin Contributions(1) 2015 Portfolio Sensitivities • $1/MMBtu change in 15% New natural gas ≈ 6 - 7 cents Investment(2) in adjusted EPS(5) 13% 50% Other (3) Contracted Assets(4) (97% hedged) 22% Merch
Slide 25: NextEra Energy Resources Projected 2015 Portfolio Financial Information
NextEra Energy Resources Projected 2015 Portfolio Financial Information (as of December 6, 2013) Equivalent Equivalent Equivalent 1 1 2 3 Expected Gross Margin % Gross EBITDA Remaining Following Generation Range Margin Range Contract Year PTC MW TWh $ MM Hedged $ MM Life Expiration Contracted 4 Wind
Slide 26: 2013 Wind Production Index
2013 Wind Production Index(1)(2) 110% 108% 106% 105% 105% 105% Long-Term Average 103% 102% 99% 100% 98% 97% 97% 97% 95% 95% 93% 93% 92% 90% 89% 86% 85% Jan Feb Mar Q1 Apr May Jun Q2 Jul Aug Sep Q3 Oct Nov Dec Q4 YTD A 1% change in the wind production index equates to roughly 3 – 4 cents of adjusted
Slide 27: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) Asset/(Liability) Balance as of 9/30/13 $415.4 Amounts Realized During 4th Quarter (31.1) Primary Drivers: Revenue Hedges – Gas Change in Forward Prices (all positions) (38.0) & Power Prices ($70.5) Subtotal – Income Statement (6
Slide 28: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) 1st Quarter 2nd Quarter Asset / Deals Asset / Deals Asset / (Liability) Change in Executed Total (Liability) Change in Executed Total (Liability) Balance Amounts Forward During Unrealized Balance Amounts Forward During Unrealized
Slide 29: 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 12/31/13 2014 2015 2016 2017 2018 - 2034 2014 - 2034 Natural gas related positions $ 356.0 $ 13.4 $ (28.2) $ (56.4) $ (53.9) $ (230.9) $ (356.0) Spark spread
Slide 30: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings to GAAP Net Income (Three Months Ended December 31, 2012) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 256 $ 171 $ 2 $ 429 Adjustments, net of income taxes: Net unrealized
Slide 31: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings to GAAP Net Income (Three Months Ended December 31, 2013) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 248 $ 85 $ (6) $ 327 Adjustments, net of income taxes: Net unrealize
Slide 32: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings to GAAP Net Income (Full Year Ended December 31, 2012) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 1,240 $ 687 $ (16) $ 1,911 Adjustments, net of income taxes: Net unreal
Slide 33: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings to GAAP Net Income (Full Year Ended December 31, 2013) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 1,349 $ 556 $ 3 $ 1,908 Adjustments, net of income taxes: Net unrealize
Slide 34: Definitional information
Definitional information NextEra Energy, Inc. Free Cash Flow (Deficit) (Slide 15) NextEra Energy’s Free Cash Flow (Deficit) is defined as net cash provided by operating activities less cash flow used in investing activities less dividends. NextEra Energy Resources, LLC. Adjusted Earnings NextEra Ene
Slide 35: 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 36: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) failure or breach of NextEra Energy's information technology systems; risks to NextEra Energy's retail businesses of compromise of sensitive customer data; risks to NextEra Energy of volatility in the market values of deriv
Slide 37: NEX Tera
NEX Tera ENERGY &