Slide 1: March 2016 Investor Presentation
March 2016 Investor Presentation
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 8 • NextEra Energy Resources Slide 13 • NextEra Energy Partners, LP (NYSE: NEP) Slide 19 • 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 • $52 B market capitalization(1) • 46 GW in operation(2) • $82 B in total assets • Strategic partnership with • One of the largest electric • The leader in North America utilities in the nation by in electricity gene
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 2015 NextEra Energy Fuel Mix MWhs(4) Good Industry 7.4% Nuclear Wind Good 25% 17% Industry ~$24 FL Avg ~97
Slide 6: We have a 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(1) Total Shareholder Return(2) $5.71 2% 1.4% 70% 65% $5.30 $4.97 0.7% 1% 60% $4.30 $4.39 $4.57 53% $3.84 $4.05 0% 50% $3.49 (1%) 39% $3.04 40% $2.63 (2%) 30% (3%) (4%) 20% (5%) 10% (4.8%) (6%) 0% One Yea
Slide 7: Our growth strategy has led to real change in relative position
Over a sustained period of time, our growth strategy has led to real change in relative position Top 20 Global Utility Equity Market Capitalization(1) As of 6/1/2001 ($ MM) As of 2/26/2016 ($ MM) Rank Market Cap Rank Market Cap 1 $38,574 1 $51,827 NextEra Energy 2 $38,185 2 $50,957 3 $34,476 3 $50,3
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Slide 9: 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 10: 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 11: FPL's strategy continues to result in typical residential bills below averages
FPL’s strategy continues to result in typical residential bills below both Florida and national averages FPL Customer Bill(1) ~$137 ~$122 ~$108 ~$92 (2) (3) (4) (5) FPL FPL Florida National 2006 2016 Average Average (1) Rates based on a typical 1,000 kWh residential bill (2) FPL annual average (3) F
Slide 12: 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 13: NextEra Energy Resources
NEXTeCra’ ENERGY &% RESOURCES _
Slide 14: Energy Resources is a diversified clean energy company
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 15: Energy Resources' renewables program is well positioned for continued success
Energy Resources’ renewables program is well positioned for continued success Energy Resources Development Program(1) • We have exceeded the expectations we discussed in March 2015 for our 2015-2016 renewables development program: March 2015 Investor Conference(2) Current Additional Signed 2015-2016
Slide 16: U.S. Federal tax incentives for completed renewables projects have been extended
U.S. Federal tax incentives for completed renewables projects have been extended through the end of the decade 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 D
Slide 17: Renewable energy development opportunities have never been stronger
Renewable energy development opportunities have never been stronger Drivers for New Renewables • Certainty of U.S. Federal Tax incentives for renewables • Wind technology and efficiency improvements • Solar installation costs and improvements • Potential demand from carbon emissions regulation • Pot
Slide 18: Expanding 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 19: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 20: 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 20
Slide 21: 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); • ~16 GW of renewables in operation by the end of 2016(1) • Assets primarily in 25 states
Slide 22: 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 12/31/2015 IPO 12/31/2015 Average Contract Life(3) Average Counterparty Credit(3,4) A2 21 Years 19 Years A3 IPO 12/31/2015 IPO 12
Slide 23: Seiling I and II Acquisition
Recently announced acquisition is another example of the strong and highly visible runway for future growth that we believe is a core strength of the NEP value proposition Seiling I and II Acquisition • Acquisition from sponsor closed on March 1, 2016: Contract Contract Project Resource MW COD Expir
Slide 24: Seiling I and II Financing
The equity for the acquisition was purchased concurrent with the announcement, demonstrating the relative strength of NEP and its sponsor Seiling I and II Financing • Financing for the Seiling I and II acquisition was pre- funded at the time of announcement – NEP funded the majority of the purchase
Slide 25: NextEra Energy Partners' Adjusted EBITDA and CAFD Expectations
NextEra Energy Partners’ Adjusted EBITDA and CAFD Expectations(1, 2) Adjusted EBITDA CAFD 12/31/15 Run Rate(3) $540 - $580 MM $190 - $220 MM 12/31/16 Run Rate(4) $640 - $760 MM $210 - $290 MM Unit Distributions 2016 $1.38 - $1.41 annualized rate by year end(5) 2016 - 2020 12% - 15% average annual gr
Slide 26: Financial Review
NExTera’ ENERGY @ FINANCIAL REVIEW
Slide 27: NextEra Energy's Adjusted Earnings Per Share Expectations
NextEra Energy’s Adjusted Earnings Per Share Expectations(1) 2016 $5.85 - $6.35 $6.60 - $7.10 2018 (6% - 8% CAGR off a 2014 base) (1) See Appendix for definition of Adjusted Earnings expectations 27
Slide 28: NextEra Energy announced a new dividend policy
NextEra Energy announced a new dividend policy on the second quarter 2015 earnings call NextEra Energy Dividend Expectations Dividend Per Share Growth Dividend Policy • Targeting increased rate of dividend growth $4.30 - $4.60 • Dividend payout ratio expected to increase to 65% by 2018(1) $3.08 • Ex
Slide 29: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS 2 29
Slide 30: NExTera’
NExTera’ ENERGY @
Slide 31: Reconciliation of Earnings Per Share 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: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the unrealized mark-to-market effect of non-qualifying hedges, net OTTI losses on securities held in NextEra Energ
Slide 33: 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 34: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) potential volatility of NextEra Energy's results of operations caused by sales of power on the spot market or on a short-term contractual basis; effect of reductions in the liquidity of energy markets on NextEra Energy's ab
Slide 35: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 36: 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 revenue less fuel expense, project operating expenses, corporate G&A, plus other incom
Slide 37: Definitional information (cont.)
Definitional information (cont.) NextEra Energy Partners, LP Adjusted EBITDA and CAFD Expectations for the acquisition of the Seiling I & II Wind Energy Centers This presentation refers to adjusted EBITDA and CAFD expectations for the acquisition of the Seiling I & II Wind Energy Centers. NEP's adju
Slide 38: 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 39: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) A change in the jurisdictional characterization of some of the Texas pipeline entities' assets, or a change in law or regulatory policy, could result in increased regulation of these assets, which could have material advers
Slide 40: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) Government regulations providing incentives and subsidies for clean energy could change at any time and such changes may negatively impact NEP's growth strategy; NEP's growth strategy depends on the acquisition of projects
Slide 41: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP's arrangements with NEE limit NEE’s liability, and NEP has agreed to indemnify NEE against claims that it may face in connection with such arrangements, which may lead NEE to assume greater risks when making decisions r