Entergy Corporation · NYSE:ETR
Entergy — Investor Presentation (April 2021)
34 slides from Entergy's investor presentation, Apr 8, 2021
Slide 1: Building the Premier Utility
sorter Building the Premier Utility April 8, 2021 Investor Meetings
Slide 2: Caution regarding forward-looking statements and Regulation G compliance
Caution regarding forward-looking statements and Regulation G compliance In thi presentation, and from time to time, Entergy Corporation makes certain “fonvard-lookng statements" within the masning ofthe Private Securities Litigation Reform Act of 1985, Such fordarc-looking statements include, among
Slide 3: We exist to grow a world-class energy business
We exist to grow a world-class energy business that creates sustainable value for our four stakeholders 2 = Entergy, WE POWER LIFE™
Slide 4: Clear objectives to create sustainable value
Clear objectives to create sustainable value @ © Grow the Utility... --While managing risk © Steady, predictable © Customer-centric capital plan earnings and © Progressive regulatory mechanisms dividend growth © Solid credit and liquidity © Disciplined cost management programs © New customer solutio
Slide 5: 2021 key deliverables
2021 key deliverables 1Q 2Q 3Q 4Q ¥ MCPS in service + E-MS IRP filing + Liberty County» ~3M advanced ¥ MCPS in rates + Walnut Bend Solar ‘Solar decision meters installed ¥ NOSS in rates decision (APSC) (PUCT) (cumulative) ¥ E-TX 2021 solar RFP announced * E-NO annual FRP filing» OCPS filing + Sunflo
Slide 6: Regulatory updates
Regulatory updates late E-AR FRP + E-AR, Staff, and key parties asking the APSC to approve a revised netting adjustment by 14/2/21 joint fling 4/9/21, which would increase E-AR's 2021 FRP revenues to $40 million (from $1M) ' Filing also proposes an expedited process for APSC to approve implementatio
Slide 7: Investing to improve customer outcomes
Investing to improve customer outcomes Customer solutions drive our investment plan Transmission 2 > ey 2 ty
Slide 8: Robust Utility 2021E-2023E investment plan
Robust Utility 2021E—2023E investment plan 2021E — 2023E capital plan by function +t Distribution and Utility support — $5.4B m1 J Generation - $4.3B £ Transmission — $2.0B
Slide 9: Capital plan will create significant customer benefits
Capital plan will create significant customer benefits Improves reliability and power quality \ © © Strengthens system resiliency | i) Creates platform for innovative products and | services \ Increases customer /- satisfaction i) Facilitates integration of renewables i) Provides customer solutions
Slide 10: Distribution: creating a more resilient grid
Distribution: creating a more resilient grid Distribution and Utility support plan; $B 216-23 = Grid modernization = Utility support = Distribution baseline ‘Bhtergy, ODE 2A cap phan ef Fetrusey 20 we
Slide 11: Distribution plan focused on three major areas
Distribution plan focused on three major areas © @» gat <_— B Reliability improvements Asset renewal / New technologies Highest / quickest infrastructure modernization Foundation for new customer impact ‘Sustainable long-term reliability customer solutions ~~ Positive customer — Reduced frequency an
Slide 12: Generation: modernizing our fleet for cleaner energy
Generation: modernizing our fleet for cleaner energy Generation plan; $B 21E-23E = Renewables = New power generation = Nuclear = Non-nuclear baseline Santer, “2o2tE 202 cami pev ne of Fetrsry 200%, dome ves vec grad deepens ance upaiae wince Fete 202%
Slide 13: New generation to serve customer needs
New generation to serve customer needs Technology advancements will provide more clean options Capital plan includes announced projects: (=) Renewables ( } Power generation (=) Customer solutions + Searcy Solar (2021) + Orange County Power Station | + Customer-sited back-up + Sunflower County Solar
Slide 14: Transmission: supporting reliability and growth
Transmission: supporting reliability and growth Transmission plan; $B 20 21E-23E = Reliability and growth = Asset management energy, “2o2tE 202 cami pev ne of Fetrsry 200%, dome ves vec grad deepens ance upaiae wince Fete 202%
Slide 15: Among the lowest rates in the country
Among the lowest rates in the country Providing access to affordable, clean energy 2019 average retail price by parent company; per kWh Emergency bill-payment assistance to low-income elderly and disabled customers 7.45 ‘Advocacy to ensure funds HEAP: are allocated to help our J customers ‘Baced on
Slide 16: Continuous improvement creates sustainable value
Continuous improvement creates sustainable value Customers Y Strong net promoter scores ¥ Reduced risk Y Increased investment in reliability, sustainability Y Operational excellence ¥ Higher level of service while ‘maintaining low rates energy, oom Permanently eliminate costs out of the business eo
Slide 17: Customer-centric Utility plan
Customer-centric Utility plan Results in steady rate base growth Utility three-year capital plan and depreciation expense'; cumulative $B Cader ay Sern orang Projected rate base'?; $B a 20E 21E 22E 2E
Slide 18: Disciplined cost management
Disciplined cost management O&M flexibility and continuous improvement benefit all stakeholders Mustrative Mustrative O&M flexibility — short-term Continuous improvement — permanent Tailwind flex \ 3 Planned = Planned O&M ° OaM —_: * Permanent Headwind flex cost reductions Time Time Supports steady,
Slide 19: Credit and liquidity
Credit and liquidity Parent debt to total debt"; % FFO to debt'; % < 25% certain items? 215% .:: 4020 Target 4020 Target 2022 + FFO to debt temporarily ower than target due largely to impact of storms + Expectio retum to targeted levels in 2022 once securitization proceeds received | Sistecar teen c
Slide 20: Leader in sustainability
Leader in sustainability 2 rntergy Member of Dow Jones Sustainability Indices Powered by the S&P Global CSA. Entergy is the only U.S. company in the electric utility sector to be included on the DJSI for 19 consecutive years In 2020, perfect scores in v Climate strategy v Environmental reporting v M
Slide 21: Committed to maximizing clean energy
Committed to maximizing clean energy Committed to work with our regulators and other stakeholders to balance reliability and affordability with environmental stewardship Our.clean energy investment strategy Reliability Environmental Affordability stewardship
Slide 22: Years of environmental leadership
20 years of environmental leadership 2001 2006 2011 2020 e © © O- utility Intensified tended , mus - Ce Commitment to voluntarily set. commitment with reduction : goal to stabilize a goal to reduce commitment to achieve greenhouse gas CO, emissions. through 2020 nee uy emissions year-2000 levels by
Slide 23: A track record of results
A track record of results Entergy Utility CO, emission rates; lbs per MWh U.S. power sector average i Net | [] zero
Slide 24: Among the cleanest large-scale fleets in the U.S.
Among the cleanest large-scale fleets in the U.S. CO; emission rates of top 20 privately / investor-owned power producers; Ibs per MWh Entergy Utility Based on MJ Bradley, Benchmarking Air Emissions ofthe 100 Largest Electric Power Producersin the United States, published July 2020(2018data) sere,
Slide 25: Minimal coal generation
Minimal coal generation Coal generation of top 20 privately / investor-owned power producers; MWh Entergy Utility Based on MJ Bradley, Benchmarking Air Emissions ofthe 100 Largest Electric Power Producersin the United States, published July 2020 (2046data) veg eee Less than 5% of 2020 revenue was de
Slide 26: Growing our renewables portfolio
Growing our renewables portfolio Mustrative In service, in progress, and announced-renewables portfolio Bend 0 537 MW inr-serviee——_ + suas : ‘@.~445 MW installations_in progress © 380 MW announced ce REPs-forsolar resources, = —totaling4,000 MW <a Ze
Slide 27: Entergy / Mitsubishi decarbonization collaboration
Entergy / Mitsubishi decarbonization collaboration 2 MITSUBISHI = Entergy, POWER Identified areas of collaboration
Slide 28: Multiple hydrogen pipelines nearby existing plants
Multiple hydrogen pipelines nearby existing plants Ilustrative Hydrogen pipeline infrastructure Multiple hydrogen pipelines nearby Texas industrial corridor o ‘Sabine Power Plant {site for proposed Hydrogen pipelifies Ps fenton 1 1 1 1 1 1 1 1 1 = 1 1 ’ @ Large scale storage (Spindletop) @ Entergy’s
Slide 29: Extensive and transparent sustainability reporting
Extensive and transparent sustainability reporting Sustainability Visit Entergy’s Sustainability page entergy.com/sustainability Sane,
Slide 30: Uniquely positioned to be the Premier Utility
wWgtty = = Uniquely positioned to be the Premier Utility energy, oom Industry leader in critical measures of sustainability Among the lowest retail rates in the U.S. One of the cleanest large-scale generation fleets in the U.S. © ©6090 Robust capital plan to meet our customers’ evolving needs 1) Str
Slide 31: Regulation G reconciliations
Santer, Regulation G reconciliations 30
Slide 32: Regulation G reconciliations
Regulation G reconciliations \Entergy Corporation notes: Due July 2022 650 Due September 2025 800 Due September 2026 750 ‘Due June 2030 600 ‘Due June 2050 600 [Total Entergy Corporation notes 3.400 [Revolver _draw 165 (Commercial paper 1,627 jnamortized debt issuance costs and discounts (38) [Total
Slide 33: Regulation G reconciliations
Regulation G reconciliations Qe, oo “Coed ry rc vo venreeng ‘Total debt, excluding securitization debt @ 23,887 ‘OCF (LT™M) 2,690 JDC-borrowed funds (LTM). (62) ‘Less working capital in OCF (TM): Receivables (139) Fuel inventory (27) ‘Accounts payable 137 Taxes accrued 208 Interest accrued 8 Other w
Slide 34: Abbreviations and acronyms
Abbreviations and acronyms ADIT | Accumulated deferredincome taxes GAAP | U.S. generally accepted accounting principles ‘AFUDC — | Allowance for borrowed funds used during ‘GGNS | Unit 1 ofGrand Gulf Nuclear Station (90% owned or borrowed funds | construction leased by SERI) ‘ALI | Administrative la