Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Merger or Acquisition (July 2016)
14 slides from Nextera Energy's merger presentation, Jul 29, 2016
Slide 1: NextEra Energy Reaches Agreement to Acquire Oncor Electric Delivery Company
NextEra Energy Reaches Agreement to Acquire Oncor Electric Delivery Company July 29, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “may,” “will,” “anticipate,” “estimate,” “expect,” “project,” “inte
Slide 3: NextEra Energy announces agreement to acquire an 80% interest in Oncor
NextEra Energy announces agreement to acquire an 80% interest in Oncor Electric Delivery Company (Oncor) Transaction Overview • Oncor expected to add an attractive, rate regulated T&D utility to NextEra Energy – NextEra Energy’s proven track record of providing affordable, reliable electric service
Slide 4: Agreement is part of an overall Plan of Reorganization allowing EFH to emerge from bankruptcy
Agreement is part of an overall Plan of Reorganization designed to allow EFH to emerge from chapter 11 bankruptcy Transaction Structure • Overall EFH Plan of Reorganization: – Tax-free spin-off of merchant generation and retail electricity service businesses – NextEra Energy would acquire 100% of th
Slide 5: Expected transaction close in the first quarter of 2017
Based on our current targets for completing key milestones, we expect the transaction to close in the first quarter of 2017 Expected Timeline and Solicitation Rights • Transaction remains subject to certain conditions: – EFH bankruptcy approvals include: Approval of EFH entering into merger agreemen
Slide 6: FPL focus on low bills, high reliability and outstanding customer service
Florida Power & Light’s (FPL) focus is on providing customers low bills, high reliability and outstanding customer service Areas of Focus Typical Customer Bill(1) ~$132 ~$122 ~$108 ~$92 FPL FPL Florida National 2006 (2) 2016 (2) Avg (3) Avg (3) Service Reliability (“SAIDI”)(4) Operational Cost Effec
Slide 7: NextEra Energy is one of the strongest investment-grade rated electric companies in the U.S.
NextEra Energy is one of the strongest investment-grade rated electric companies in the U.S. Strong Financial Position Oncor Current Ratings Corporate Ratings: NextEra Energy (Pre-Announcement) Standard & Poor’s A- BBB+ Moody’s Baa1 Baa1(1) Fitch A- BBB • Transaction expected to strengthen Oncor’s c
Slide 8: NextEra Energy has a long-term track record of delivering value to shareholders
NextEra Energy has 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%)
Slide 9: A proven partner for Texas
A proven partner for Texas NextEra Energy and Texas • Significant presence in Texas since 1999 • Invested $8 B in transmission, power generation, gas pipelines and other operations in Texas • Provides hundreds of competitive jobs • Pays millions of dollars annually in payroll, property taxes and lea
Slide 10: Upon closing, Oncor would become a principal business of NextEra Energy
Upon closing of the transaction, Oncor would become a principal business of NextEra Energy Corporate Structure • One of the largest U.S. electric utilities • Largest transmission and distribution • The leader in North America in electricity • 4.8 MM customer accounts system in Texas generated from t
Slide 11: Combination of NextEra Energy and Oncor expected to create benefits for all stakeholders
Combination of NextEra Energy and Oncor expected to be a compelling opportunity to create benefits for all stakeholders Expected Benefits for All Stakeholders • NextEra Energy’s proven track record of providing affordable, reliable electric service for customers complements Oncor’s operational stren
Slide 12: Q&A
12 Q&A NEXTera’ ENERGY 2
Slide 13: Appendix
13 Appendix NExTera’ ENERGY @
Slide 14: Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share 14