NextEra Energy, Inc. · NYSE:NEE
NextEra Energy — Shareholder Meeting (May 2011)
42 slides from NextEra Energy's shareholder meeting presentation, May 20, 2011
Slide 1: Welcome Shareholders
Welcome Shareholders Lew Hay Chairman and CEO May 20, 2011
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: Non-GAAP Financial Information
Non-GAAP Financial Information This presentation refers to adjusted earnings and adjusted EBITDA, which are not financial measurements prepared in accordance with GAAP. Adjusted earnings, as defined by NextEra Energy, represents net income before the mark-to-market effects of non-qualifying hedges a
Slide 4: Agenda
Agenda • 2010 results • A history of outstanding growth and value creation • Where we are today • Looking ahead • Awards and recognition 4
Slide 5: Overall, NextEra Energy had strong performance in 2010
Overall, NextEra Energy had strong performance in 2010 2010 Highlights • Delivered roughly 6% Adjusted Adjusted adjusted EPS growth Earnings(1) EPS(1) ($ millions) • Grew adjusted earnings to a record $1.8 billion • Preserved a balanced risk profile between regulated and competitive • Growth at FPL
Slide 6: FPL had a solid operational, regulatory and financial year in 2010
FPL had a solid operational, regulatory and financial year in 2010 NextEra Energy Highlights – Full Year 2010 • Florida Power & Light – Base rate settlement agreement was approved in the fourth quarter – Completed 75-MW Martin solar thermal project on schedule and under budget – Achieved high levels
Slide 7: NextEra Energy Highlights – Full Year 2010 (Cont'd)
Despite a challenging business environment, NextEra Energy Resources had a very productive year NextEra Energy Highlights – Full Year 2010 (Cont’d) • NextEra Energy Resources – Added 754 MW of wind capacity in 2010 – Owned 8,298 MW of wind at year-end 2010 and maintained its position as the leading
Slide 8: Agenda
Agenda • 2010 results • A history of outstanding growth and value creation • Where we are today • Looking ahead • Awards and recognition 8
Slide 9: NextEra Energy has generated substantial and profitable growth for nearly a decade
NextEra Energy has generated substantial and profitable growth for nearly a decade … Cumulative Total Installed Capacity (MW) Capital Deployed ($B) +75% Adjusted EPS ($)(1) Dividends Per Share ($)(2) 7.5% 7% CAGR CAGR . 1) See Appendix for reconciliation of adjusted amounts to GAAP amounts. 2) Annua
Slide 10: Our total return to shareholders has been strong
Our total return to shareholders has been strong Total Shareholder Return(1) 10 years 5 years 1 year 107% 57% 48% 15% 20% 15% 12% 2% 3% NextEra S&P S&P 500 NextEra S&P S&P 500 NextEra S&P S&P 500 Energy Electric Energy Electric Energy Electric Utilities Utilities Utilities Index Index Index 1) Sourc
Slide 11: Agenda
Agenda • 2010 results • A history of outstanding growth and value creation • Where we are today • Looking ahead • Awards and recognition 11
Slide 12: NextEra Energy is one of the largest power companies in the United States
NextEra Energy is one of the largest power companies in the United States by many measures Owned Capacity(1) Revenue(3) 50,000 NextEra Energy 42,588 (Full year 2010) $20 45,000 $18 NextEra Energy $15.3 B 40,000 $16 35,000 $14 30,000 MW $12 $B 25,000 $10 20,000 $8 15,000 $6 10,000 $4 5,000 $2 0 $0 Nu
Slide 13: Earnings come predominantly from regulated, contracted, or hedged assets
NextEra Energy’s earnings come predominantly from assets that are regulated, long-term contracted, or hedged 2010 Adjusted EBITDA(1) Long-Term Contracted 24% Other FPL 7% 50% Hedged 19% 1) Adjusted EBITDA represents net income before interest, taxes, depreciation, amortization, the mark-to-market ef
Slide 14: Our fuel mix gives us a clean emissions profile
Our fuel mix gives us a clean emissions profile NextEra Energy 2010 Fuel Mix SO2 Emissions Rates Solar (MWh) (Lbs/MWh) .2% Hydro 1.0% Oil 2.7% Natural Gas Coal 54.2% 3.6% Wind NextEra 11.9% Energy Nuclear 26.4% NOx Emissions Rates CO2 Emissions Rates (Lbs/MWh) (Lbs/MWh) NextEra Energy NextEra Energy
Slide 15: We continue to be one of the higher rated companies in our industry
We continue to be one of the higher rated companies in our industry Credit Ratings NextEra Energy Ratings(1) Utility Credit Ratings(2) S&P Moody's Fitch NextEra Energy 16 16 • Issuer credit rating A- Baa1 A- NextEra 15 Energy • Outlook Stable Stable Stable Florida Power & Light 10 • First mortgage b
Slide 16: Agenda
Agenda • 2010 results • A history of outstanding growth and value creation • Where we are today • Looking ahead • Awards and recognition 16
Slide 17: Growth is expected to be driven by significant capital investments
NextEra Energy’s growth is expected to be driven by significant capital investments NextEra Energy Growth Outlook • FPL has approximately $10 - $11 B of capital planned for deployment through 2014(1) – $6.7 B of major generation and advanced metering projects to be brought online – Retail rate base
Slide 18: Agenda
Agenda • 2010 results • A history of outstanding growth and value creation • Where we are today • Looking ahead • Awards and recognition 18
Slide 19: Our accomplishments are getting noticed
Our accomplishments are getting noticed No. 1 on Fortune’s “Most Admired” List for Our Sector Five Years in a Row 2007 2008 2009 2010 2011 (1) 19 1) On the 2011 list, NextEra Energy tied for first place with Southern Co.
Slide 20: We have also made the top 10 in the world for our achievements
We have also made the top 10 in the world for our achievements Fortune’s “Top 10 Fortune’s “Top 10 for Social for Innovation” in 2010 Responsibility” in 2011 Apple Statoil Google Ferrovial Nike Walt Disney Amazon Edison SpA Goldman Sachs ENI Procter & Gamble Whole Foods Market McDonald’s Total Intel
Slide 21: World's Most Ethical Companies
In March of 2011, we were named to the “World’s Most Ethical Companies” list for the fifth year in a row World’s Most Ethical Companies • Compiled by Ethisphere magazine, whose mission is to “help corporate executives guide their enterprises toward sustainable competitive advantage through better bu
Slide 22: Top 1 percent of U.S. companies in corporate governance
We are also in the top 1 percent of U.S. companies in corporate governance Corporate Governance • Ranking performed by Governance Metrics International (GMI), the leading provider of corporate governance research and rating services worldwide • List recognizes companies maintaining best-in-class cor
Slide 23: NEXT@Cra’
NEXT@Cra’ ENERGY &%
Slide 24: Appendix
24 Appendix NeExTera’ ENERGY 2
Slide 25: Reconciliation of Adjusted Earnings to GAAP Net Income (2010)
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Full Year Ended Dec. 31, 2010) Florida Pow er NextEra Energy Corporate & (m illions, except per share am ounts) & Light Resources Other NextEra Energy, Inc. Net Income (Loss) $ 945 $ 980 $ 32 $ 1,957 Adjustments, net of income taxes: Net unr
Slide 26: Reconciliation of Adjusted Earnings to GAAP Net Income (2009)
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Full Year Ended Dec. 31, 2009) Florida Pow er NextEra Energy Corporate & (m illions, except per share am ounts) & Light Resources Other NextEra Energy Inc. Net Income (Loss) $ 831 $ 759 $ 25 $ 1,615 Adjustments, net of income taxes: Net unre
Slide 27: Reconciliation of Adjusted Earnings Per Share to Earnings Per Share
Reconciliation of Adjusted Earnings Per Share to Earnings Per Share 2002 2003 2004 2005 2006 2007 2008 2009 2010 Earnings Per Share (assuming dilution) $1.38 $2.53 $2.48 $2.34 $3.23 $3.27 $4.07 $3.97 $4.74 Adjustments: Net unrealized mark-to-market (gains) losses associated with non-qualifying hedge
Slide 28: Reconciliation of 2010 Adjusted EBITDA to Net Income
Reconciliation of 2010 Adjusted EBITDA to Net Income (Full Year Ended Dec. 31, 2010, $ in Millions) GAAP Adjustments Adjusted Net income $1,957 ($179) (1) $1,778 Add back interest 979 0 979 Add back income taxes 532 (116) (1) 416 Add back depreciation & amortization 1,807 0 1,807 Other 0 767 (2) 767
Slide 29: Cautionary Statement And Risk Factors That May Affect Future Results
Cautionary Statement And Risk Factors That May Affect Future Results In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Reform Act), NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) are hereby providing cautionary state
Slide 30: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy’s and FPL’s financial results could be negatively affected if they or their rate-regulated businesses are unable to recover, in a timely manner, certain costs, a return on certain assets or an appropriate ret
Slide 31: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy and FPL operate in a changing market environment influenced by various legislative and regulatory initiatives, including, for example, initiatives regarding regulation, deregulation or restructuring of the
Slide 32: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) require significant capital investment in carbon capture and storage technology, fuel switching, or the replacement of high-emitting generation facilities with lower-emitting generation facilities; or affect the availab
Slide 33: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy’s and FPL’s operating results could suffer if they do not proceed with projects under development or are unable to complete the construction of, or capital improvements to, generation, transmission, distribut
Slide 34: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) dependence on a specific fuel source. The occurrence of any of these effects or events could result in, among other matters, lost revenues due to prolonged outages, increased expenses due to monetary penalties or fines, r
Slide 35: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy depends upon power transmission and natural gas transportation facilities owned and operated by others. If transmission or transportation of sufficient power or natural gas is unavailable or disrupted, Next
Slide 36: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) such as mandated energy efficiency measures, demand side management goals, and economic and demographic conditions, such as population, job and income growth, housing starts and new business formation. NextEra Energy’s and
Slide 37: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) The inability of subsidiaries that have existing project-specific financing arrangements to meet the requirements of various agreements relating to those financings could give rise to a project-specific financing default
Slide 38: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy is an active participant in energy markets. The liquidity of regional energy markets is an important factor in the company's ability to manage risks in these operations. Over the past several years, other m
Slide 39: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) ability to pay upstream dividends or to repay funds to NextEra Energy. The subsidiaries have financial obligations, including, but not limited to, payment of debt service, which they must satisfy before they can fund NextEr
Slide 40: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy and FPL add, modify and replace information systems on a regular basis. Modifying existing information systems or implementing new or replacement information systems is costly and involves risks, including,
Slide 41: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) The ability of NextEra Energy and FPL to obtain insurance and the terms of any available insurance coverage could be adversely affected by international, national, state or local events and company-specific events, as well
Slide 42: NEXT aS,
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