Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Investor Presentation (March 2024)
36 slides from Nextera Energy's investor presentation, March 2024
Slide 1: March 2024 Investor Presentation
March 2024 Investor Presentation 1
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 d
Slide 3: NextEra Energy is a leading clean energy company anchored by two industry leaders
NextEra Energy is a leading clean energy company anchored by two industry leaders and supported by a common platform 72 GW $122 B $177 B In Operation(1) Market TotalAssets(3) Capitalization(2) Clean Energy Clean Energy Generation Portfolio Generation Portfolio SupplySupply Chain, Chain, Engineering
Slide 4: Track record of long-term earnings and dividend growth
NextEra Energy has a track record of delivering long-term earnings and dividend growth History of Execution Adjusted Earnings Per Share Dividends Per Share $3.17 $1.87 ~10% CAGR(1) ~11% CAGR(1) $1.24 $0.66 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 4 1) C
Slide 5: Well positioned to extend track record with unique value proposition
And remains well positioned to extend that track record, offering a unique value proposition Financial Expectations(1) Strong earnings …and dividends …and operating cash growth… growth… flow growth Adjusted EPS Dividends Per Share Operating Cash Flow Expectations Expectations(2) Expectations $3.63 -
Slide 6: 2023 delivered strong operational and financial performance at FPL and Energy Resources
In 2023, NextEra Energy delivered strong operational and financial performance at both FPL and Energy Resources 2023 Highlights ~12.9% ~12.5% ~$2 B ~9.3% Awarded in new adjusted EPS adjusted earnings growth of transmission growth at NextEra growth at NextEra regulatory capital projects to NextEra En
Slide 7: Well positioned for growth with regulated investment and contracted renewables
NextEra Energy is well positioned for future growth given its focus on regulated investment and contracted renewables NextEra Energy Business Mix(1) • Florida is one of the >70% <30% • ~20% renewable fastest growing states in origination market share the U.S. • Over 20 years experience • Customer bi
Slide 8: FPL recognized as one of the best and most innovative electric providers
FPL is recognized as one of the best and most innovative electric providers in the U.S. Florida Power & Light Company(1) Largest electric utility in the U.S. ~5.8 MM customer accounts ~5.9 MM customer accounts Areas Served by FPL (in Northwest FL, Counties with Areas ~34 GW in operation Served by FP
Slide 9: FPL focused on customer value, smart capital investments and productivity
FPL is focused on delivering outstanding customer value, smart capital investments and a commitment to productivity FPL’s Areas of Focus Customer Value Proposition • Unyielding commitment to customer value proposition – Low bills, high reliability and Smart Best-in- excellent customer service Capita
Slide 10: FPL continues to modernize its generation fleet
FPL continues to invest in modernizing its generation fleet to deliver clean, affordable energy FPL’s Generation Fleet Modernization Plant Modernization Solar Investments Most fuel-efficient fleet in the Deploying ~$10 B in solar industry with an industry- from 2022 - 2025, adding leading heat rate
Slide 11: FPL invested in innovation and grid hardening
FPL has invested in innovation and grid hardening to provide superior service for customers FPL’s Reliability and Resiliency Investments Transmission Hardening Distribution Hardening • ~96%(1) of • ~49%(1) of distribution transmission towers system underground and poles are concrete or steel Innovat
Slide 12: FPL customer commitment and best-in-class service reliability
FPL’s customer commitment and best-in-class service reliability earned outstanding customer service recognitions FPL’s Customer Service FPL Awards and Recognitions Service Reliability(1) 180 (Minutes) Good 160 140 120 FPL was 100 ~66% better than the national 80 average National One of the in 2022 R
Slide 13: FPL's customer value proposition
We believe FPL is the highest-quality U.S. utility with the industry’s best customer value proposition FPL’s Customer Value Proposition 1,000-kWh Residential Bill(1) Service Reliability(3) Good ~37%lower ~140 thannational ~66% average better than ~$190 ~$158 the national ~47 average ~$121 National S
Slide 14: Energy Resources is North America's most experienced clean energy company
We believe Energy Resources is North America’s most experienced and capable clean energy company NextEra Energy Resources(1) World leader in electricity States with Project(s) in Operation generated from the wind Wind and sun Natural Gas Nuclear ~36 GW(2) of clean energy in Universal Solar operation
Slide 15: Exponential growth in U.S. demand for power
The U.S. is experiencing exponential growth in demand for power Renewables Opportunity Unprecedented Power Demand Driven by Various Sectors Growth in Demand from 2025-2030(2) U.S. 5-year Oil & +56% load growth Gas forecast jumps ~81%(1) year-over- Chemicals +14% year Data +108% Centers 1) Grid Strat
Slide 16: Power demand driving growth for new renewables and storage
Power demand is driving growth for new renewables and storage Renewables & Storage Demand(1) Annual Growth Cumulative Growth Estimated Annual Renewable and Storage Demand 2024-2030(1), GW ~375-450 GW ~13% CAGR ~235 GW 2024 2025 2026 2027 2028 2029 2030 Last ~30 Years 2024-2030 (1990-2023) 1) McKinse
Slide 17: Energy Resources positioned to meet customer needs
Given the challenges our customers are facing today to meet the substantial increase in demand, Energy Resources is positioned well to meet the needs of our customers Customer Challenges Power Commercial & Industrial Not expecting recent load growth Need speed to market Need sites Need product and m
Slide 18: Energy Resources' leading development platform
Energy Resources’ scale, experience and technology offers a leading development platform to serve customer needs Energy Resources’ Development Platform Development Transmission Data & Technology Supply Chain & EPC Origination Financing Portfolio Optimization Operations Our development platform suppo
Slide 19: Proprietary data and technology supports project creation
Energy Resources’ proprietary data and technology supports our ability to create projects with the most value and improve our development success rate Data and Technology Project Siting Resource Assessment • Evaluating 30+ MM land clusters • 50,000+ weather stations per night on ~100 attributes repr
Slide 20: Industry leading ~300 GW development pipeline
Energy Resources has an industry leading ~300 GW(1) development pipeline built and supported by the unique capabilities of our team Development Scale to automate Experience Technology to across the platform to execute select the best sites ~300 GW(1) pipeline ~25 years Automated site developing scre
Slide 21: Energy Resources captures ~20% of renewable and storage origination
Energy Resources is a leader in the market, capturing ~20%(1) of renewable and storage origination Origination Supported by 25+ Years of Experience We have projects We enable speed ~300 GW(2) ~150 GW(2) ~33 GW(3) to market pipeline inter- operating connect portfolio We are a one-stop -shop We are a
Slide 22: Scale and experience lower supply chain and construction risk
Energy Resources leverages its scale and experience to lower risk in supply chain and construction execution while improving returns Supply Chain & Construction Leveraging scale to lower Supplier diversification, supply cost balancing trade policy and cost Scale-enabled ability to redeploy equipment
Slide 23: Balance sheet scale and banking relationships drive competitive advantages
The scale of NextEra Energy’s balance sheet and deep banking relationships drives financial competitive advantages Financing Strong Financial Position Enables Competitive Advantages Access to Capital Scale Preferred allocations $119 B(1) market capitalization Cost of Capital Best rates Financial Str
Slide 24: Scale, experience and technology lower O&M costs
Energy Resources uses its scale, experience and technology to lower O&M costs and achieve scale in ways competitors cannot replicate Operations Predictive Proprietary Commitment Size and Remote maintenance workforce to continuous scale of operations to extend life optimization improvement operating
Slide 25: Energy Resources delivers enhanced renewables returns
Energy Resources delivers enhanced renewables returns for shareholders Renewables Project Returns Expected ROE for our backlog are mid teens for solar and over twenty Operations percent for wind and storage Financing Supply Chain Origination & EPC Data & Technology Development 25
Slide 26: Energy Resources development program
Energy Resources’ strong development platform positions it well to execute on our industry-leading development program of new renewables and storage Energy Resources Development Program(1) (Signed Contracts and Expectations as of January 25, 2024) 2023 - 2024 2023 - 2024 2025 - 2026 2025 - 2026 2023
Slide 27: NextEra Energy presents a compelling investment opportunity
We believe NextEra Energy presents a compelling investment opportunity NextEra Energy vs Top 10 Power Companies(1) NextEra Energy has delivered strong and …and yet, NextEra Energy has one sustained adjusted EPS growth for of the lowest PEG ratios customers and shareholders… Current PEG Ratio(2) 12.6
Slide 28: Appendix
Appendix NexTera’ ENERGY &
Slide 29: FPL has significant investment opportunities for customers
FPL has significant investment opportunities for the benefit of customers FPL 2022 - 2025 Capital Expenditures Projected Recovery Opportunity Status Investment(1) Mechanism SoBRA (2024 and 2025) 24 sites projected to be ~$2.7 B Solar Base Rate Adjustment constructed 2024 and 2025 SolarTogether Phase
Slide 30: NextEra Energy's credit metrics remain on track
NextEra Energy’s credit metrics remain on track NextEra Energy Credit Metrics A- Downgrade Actual Target S&P Range Threshold 2023(1) 2024 FFO/Debt 13% - 23% 18% 18.7% >18% Baa Downgrade Actual Target Moody’s Range Threshold 2023(1) 2024 CFO Pre-WC/Debt 13% - 22% 17% 18.7% >17% CFO-Div/Debt 9% - 17%
Slide 31: Reconciliation of EPS to Adjusted EPS
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share(1) 2013 2014 2015 2016(2) 2017(2) 2018 2019 2020 2021 2022 2023 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $1.12 $1.40 $1.52 $1.56 $2.85 $3.47 $1.94 $1.48 $1.81 $
Slide 32: Reconciliation of GAAP Net Income to Adjusted Earnings (2023)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Twelve Months Ended December 31, 2023) Energy Corporate & NextEra (m illions, except per share am ounts) FPL Resources Other Energy, Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $ 4,552 $ 3,5
Slide 33: Reconciliation of GAAP Net Income to Adjusted Earnings (2022)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Twelve Months Ended December 31, 2022) Energy Corporate & NextEra (m illions, except per share am ounts) FPL Resources Other Energy, Inc. Net Incom e (Loss) Attributable to NextEra Energy, Inc. $ 3,701 $ 285
Slide 34: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations (including subsidiaries as applicable) This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the effects of
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 (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; effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiv