Slide 1: Earnings Conference Call Third Quarter 2013
Earnings Conference Call Third Quarter 2013 November 1, 2013
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 third quarter results
NextEra Energy delivered strong third quarter results NextEra Energy Overview • FPL: – Net income growth driven by continued investment in the business – All major capital projects are on track – Incremental investment opportunities are progressing well • Energy Resources: – Adjusted EPS growth driv
Slide 4: FPL delivered solid earnings growth during the quarter due to investments that benefit customers
FPL delivered solid earnings growth during the quarter due to investments that benefit customers Florida Power & Light Results – Third Quarter Net Income EPS ($ MM) $422 $392 $0.99 $0.93 2012 2013 2012 2013 4
Slide 5: FPL's earnings per share grew 6 cents year-over-year, driven primarily by continued investment
FPL’s earnings per share grew 6 cents year-over-year, driven primarily by continued investment in the business Florida Power & Light EPS Contribution Drivers EPS Growth Regulatory Capital Invested(1) Third Quarter $B FPL – 2012 EPS $0.93 30 $28.0 $25.6 Drivers: 25 New investment growth and other $0.
Slide 6: Florida's economy continues to gradually improve
Florida’s economy continues to gradually improve Florida Economy Florida Unemployment Rate(1) Florida Building Permits(2) 12% 12,000 10% 10,000 8% 8,000 6% 6,000 4% 4,000 2% 2,000 0% 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Florida Consumer
Slide 7: FPL's weather-adjusted volume was up slightly compared with the third quarter of last year
FPL’s weather-adjusted volume was up slightly compared with the third quarter of last year Customer Characteristics – Third Quarter 2013 Retail kWh Sales Customer Growth(1,3) (Change vs. prior-year quarter) (Change vs. prior-year quarter) Customer Growth & Mix 0.5% 100 80 + Usage Growth Due to Weath
Slide 8: Energy Resources' adjusted earnings per share increased ~18% versus Q3 2012
Energy Resources’ adjusted earnings per share increased ~18% versus Q3 2012 Energy Resources Results(1) – Third Quarter GAAP Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $281 $0.66 $190 $281 $0.45 $0.66 $162 $0.38 $44 $0.10 2012 2013 2012 2013 2012 2013 2012 2013 8 (1) See Appendix for recon
Slide 9: Energy Resources' contribution to adjusted EPS increased 7 cents over the comparable quarter
Energy Resources’ contribution to adjusted earnings per share increased 7 cents over the comparable quarter primarily due to new asset additions Energy Resources Third Quarter Adjusted EPS(1) Contribution Drivers $0.60 $0.02 ($0.03) $0.08 $0.45 $0.40 $0.38 $0.20 $0.00 Q3 2012 New Gas Customer Supply
Slide 10: The Energy Resources team continues to drive execution on our growth plans
The Energy Resources team continues to drive execution on our growth plans Energy Resources Development Highlights • Canadian wind program progressing as planned – ~125 MW of Canadian wind COD in Q3 • Continue to execute on backlog of ~800 MW of contracted U.S. solar projects • Good progress on incr
Slide 11: NextEra Energy's adjusted earnings per share increased 17 cents versus the prior year quarter
NextEra Energy’s adjusted earnings per share increased 17 cents versus the prior year comparable quarter NextEra Energy EPS Summary(1) – Third Quarter GAAP 2012 2013 Change FPL $0.93 $0.99 $0.06 Energy Resources $0.10 $0.66 $0.56 Corporate and Other ($0.05) ($0.01) $0.04 Total $0.98 $1.64 $0.66 Adju
Slide 12: Balance sheet strength and credit play an important role in our strategy
Balance sheet strength and credit play an important role in our strategy NextEra Energy 2014 Credit Metric Targets(1) Moody’s Baa Range NEE Target • CFO Pre-WC/Debt 13% - 22% 20% • Debt Capitalization 45% - 55% 50% Fitch A Range NEE Target • FFO/Debt 20% - 26% 21% • FFO/Interest 4.5x - 5.6x 5.2x S&P
Slide 13: Distributable cash flow in 2014 is expected to be strong
Distributable cash flow in 2014 is expected to be strong 2014 Expected Distributable Cash ($ billions) NEE Capital Holdings FPL Consolidated Adjusted EBITDA(1) $2.3 - $2.6 $4.1 - $4.3 Plus: Monetization of Tax Benefits 0.2 - 0.3 N/A Less: Limited Recourse Debt Service (0.9) - (1.0) (0.1) Less: Maint
Slide 14: NextEra Energy Adjusted Earnings Per Share Expectations
NextEra Energy Adjusted Earnings Per Share Expectations Upper half of 2013 $4.70 - $5.00 2014 $5.05 - $5.45 Long-term 5% to 7% CAGR through 2016 off growth rate a 2012 base 14
Slide 15: Q&A Session
15 Qé&A Session NExTera’ ENERGY 2
Slide 16: NEXT@Cra’
NEXT@Cra’ ENERGY &
Slide 17: Appendix
17 Appendix NExTera’ ENERGY 2
Slide 18: Distributable Cash Debt Detail
Distributable Cash Debt Detail YE 2012 Expected 2014(1) Notes ($ MM) ($ B) FPL Senior debt and bank loans $7,837 $8.4 - $8.6 Debt excluded from Distributable Cash slide Storm-recovery bonds and other $492 Secured by FPL customer bill surcharge FPL long-term debt, excluding current maturities $8,329
Slide 19: 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 20: NextEra Energy Resources Projected 2014 Portfolio Financial Information
NextEra Energy Resources Projected 2014 Portfolio Financial Information (as of September 9, 2013) Equivalent Equivalent Equivalent 1 1 2 3 Expected Gross Margin % Gross EBITDA Remaining Following Generation Range Margin Range Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expira
Slide 21: NextEra Energy Resources Projected 2015 Portfolio Financial Information
NextEra Energy Resources Projected 2015 Portfolio Financial Information (as of September 9, 2013) Equivalent Equivalent Equivalent 2 2 3 4 Expected Gross Margin % Gross EBITDA Remaining Following Generation Range Margin Range Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expira
Slide 22: Energy Resources' existing assets are 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 • $1/MMBtu change in 14% New natural gas ≈ 6 - 7 cents Investment(2) in adjusted EPS(5) 13% 51% Other (3) Contracted Assets(4) (96% hedged) 22% Merch
Slide 23: 2013 Wind Production Index
2013 Wind Production Index(1)(2) 110% 108% 106% 105% 105% 105% Long-Term 102% Average 99% 100% 97% 97% 95% 95% 93% 93% 92% 90% 86% 85% Jan Feb Mar Q1 Apr May Jun Q2 Jul Aug Sep Q3 YTD A 1% change in the wind production index equates to roughly 1 cent of adjusted EPS for the remainder of 2013 and 3 -
Slide 24: Market risk will be mitigated by our significantly hedged position over the next several years
Market risk will be mitigated by our significantly hedged position over the next several years Energy Resources Equivalent Gross Margin Contracted or Hedged(1) 99% 100% 100% 100% 100% 100% 96% 93% 89% 80% 60% 40% 20% 0% 2013 2014 2015 2016 Existing New (1) Projected equivalent gross margin includes
Slide 25: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) Asset/(Liability) Balance as of 6/30/13 $339.5 Amounts Realized During 3rd Quarter 24.2 Primary Drivers: Change in Forward Prices (all positions) 51.7 Revenue Hedges – Gas & Power Prices $18.9 Subtotal – Income Statement 75.9 All
Slide 26: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ 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 27: 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 9/30/13 4Q 2013 2014 2015 2016 2017 - 2034 2013 - 2034 Natural gas related positions $ 420.3 $ (14.6) $ (67.5) $ (68.0) $ (79.6) $ (190.6) $ (420.3) Spark sp
Slide 28: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings to GAAP Net Income (Three Months Ended September 30, 2012) Florida Power Energy Corporate & (millions, except per share amounts) & Light Resources Other NextEra Energy, Inc. Net Income (Loss) $ 392 $ 44 $ (21) $ 415 Adjustments, net of income taxes: Net unrealized
Slide 29: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings to GAAP Net Income (Three Months Ended September 30, 2013) Florida Power Energy Corporate & (millions, except per share amounts) & Light Resources Other NextEra Energy, Inc. Net Income (Loss) $ 422 $ 281 $ (5) $ 698 Adjustments, net of income taxes: Net unrealized
Slide 30: 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 31: 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 and FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses of compromise of sensitive customer data; risks to NextEra Energy and FPL of volatility in
Slide 32: NEXT@Cra’
NEXT@Cra’ ENERGY &