Slide 1: Earnings Conference Call Fourth Quarter and Full Year 2012
Earnings Conference Call Fourth Quarter and Full Year 2012 January 29, 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 solid financial results in 2012
NextEra Energy delivered solid financial results in 2012 by executing on our primary objectives NextEra Energy Overview • At FPL: – Continued to deliver outstanding customer value – Continued execution on major capital projects – Achieved satisfactory outcome of base rate case • At Energy Resources:
Slide 4: FPL invested in efficiency improvements that provide ongoing customer savings
At FPL, we invested in significant efficiency improvements that will provide ongoing savings for our customers FPL Customer Value Proposition SAIDI: System Average # of Minutes Interruption Duration Index(1) O&M ¢/kWh: 1996-2012(2) 150 Industry Average 2.50 2.25 125 FL Industry Average 2.00 100 Indu
Slide 5: FPL's Major Capital Projects
Our modernization projects and nuclear uprates will drive significant fuel savings for FPL customers over the lives of the plants FPL’s Major Capital Projects Modernization Projects Nuclear Uprates • Cape Canaveral is 96% • Completed uprates added complete and is on time and ~395 MW to fleet: under
Slide 6: Base Rate Case Settlement
FPL’s settlement agreement is designed to help FPL continue to provide customers with the lowest bill in the state for at least four more years Base Rate Case Settlement • Main components of settlement: – Effective January 2013 through December 2016 – $350 MM retail base revenue increase effective J
Slide 7: Energy Resources' Highlights
Despite headwinds, Energy Resources executed well on major capital projects and grew adjusted earnings year over year Energy Resources’ Highlights • Commissioned roughly 1,500 megawatts of wind in the U.S., a record for any company in our industry – Also brought our 10,000th megawatt of wind online
Slide 8: Energy Resources' portfolio is shifting to a more contracted business
In response to changing market conditions, Energy Resources’ portfolio is shifting to a more contracted business Energy Resources’ Adjusted EBITDA(1) 100% 11% 15% 15% 75% 20% 26% 40% 50% 59% 65% 25% 49% 0% 2009 2012 2014 Long-Term Contracted Merchant Peripheral Businesses In 2014, we expect 65% of E
Slide 9: Florida Power & Light – 2012 Results
FPL’s EPS contributions increased due to investments in the business that benefit customers Florida Power & Light – 2012 Results Fourth Quarter Full Year Net Income EPS Net Income EPS ($ MM) ($ MM) $256 $1,240 $0.61 $2.96 $216 $1,068 $0.51 $2.55 2011 2012 2011 2012 2011 2012 2011 2012 9
Slide 10: FPL EPS Contribution Drivers – 2012
FPL’s earnings growth was driven primarily by generation and infrastructure investments FPL EPS Contribution Drivers – 2012 ($/share) Fourth Full Quarter Year FPL – 2011 EPS $0.51 $2.55 Drivers: New investment and other $0.04 $0.24 Clause, primarily nuclear uprates $0.04 $0.12 AFUDC $0.02 $0.05 FPL
Slide 11: Florida Economy
Despite some bumps throughout the year, we saw continued progress in Florida’s economic recovery Florida Economy Delinquent Florida Unemployment Rate(1) Mortgages 8% Mortgage Delinquencies(2) 12% 7% 10% 6% 8% 5% 6% 4% 3% 4% 2% 2% 1% 0% 0% Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 2008 Q2 2009 Q2 201
Slide 12: FPL Customer Characteristics
FPL’s volume metrics continue to improve gradually Customer Characteristics (through December 2012) Retail kWh Sales Full- Customer Growth(2) Q4 Year(1) (Change vs. prior-year quarter) 100 Customer Growth 0.8% 0.6% 80 + Usage Growth Due to Weather 0.4% -2.7% # of 60 Customers 34 40 + Underlying Usag
Slide 13: Other Developments
FPL continually seeks opportunities to improve its customer value proposition Other Developments • Issued RFP for third natural gas pipeline to serve Florida – Will provide for 400,000 MMBtu/day of natural gas capacity beginning in 2017 and an additional 200,000 MMBtu/day starting in 2020 – Expect t
Slide 14: Energy Resources – 2012 Results
Despite a challenging year, Energy Resources executed well on major capital projects and grew adjusted earnings year over year Energy Resources – 2012 Results Fourth Quarter Full Year GAAP Net Income EPS Net Income EPS ($ MM) ($ MM) $0.96 $402 $774 $1.85 $687 $1.64 $0.41 $171 2011 2012 2011 2012 201
Slide 15: Energy Resources Fourth Quarter Adjusted EPS Drivers
Energy Resources’ adjusted earnings increased 12 cents over the comparable quarter Energy Resources Fourth Quarter $0.60 Adjusted EPS(1) Contribution Drivers $0.03 ($0.01) $0.42 $0.04 $0.40 $0.06 $0.30 $0.20 $0.00 Q4 2011 New Gas Asset Sales & Customer Supply & Q4 2012 Adjusted EPS Investment Infras
Slide 16: Energy Resources Full Year 2012 Adjusted EPS Drivers
Energy Resources’ adjusted earnings increased 4 cents over the prior year Energy Resources Full Year 2012 Adjusted EPS(1) Contribution Drivers $2.40 $0.06 $0.05 ($0.36) $0.11 $0.08 $2.00 $0.22 ($0.12) $1.62 $1.66 $1.60 Lower pricing ($0.14) $1.20 PTC roll-off ($0.09) Lower wind resource ($0.08) Asse
Slide 17: Wind Production Summary
The percentage of PTCs allocated to investors grew in 2012 and we expect that proportion to continue to grow in 2013 Wind Production Summary 2007 2008 2009 2010 2011 2012 (1) Effective Capacity 4,173 5,388 6,493 7,624 8,386 8,881 Wind Production 11.4 15.4 15.8 20.4 24.6 25.8 Implied Average Capacity
Slide 18: NextEra Energy Results
NextEra Energy’s 2012 adjusted earnings per share increased 4.1% year over year NextEra Energy Results Fourth Quarter EPS Full-Year 2012 EPS GAAP 2011 2012 Change GAAP 2011 2012 Change FPL $0.51 $0.61 $0.10 FPL $2.55 $2.96 $0.41 Energy Resources $0.96 $0.41 ($0.55) Energy Resources $1.85 $1.64 ($0.2
Slide 19: 2012 Actual and Future Financing Plans
2012 marked NextEra Energy’s biggest year of capital investment at both FPL and Energy Resources 2012 Actual and Future Financing Plans 2012 Sources and Uses of Cash Future Financing Plans USES $ MM % • Capital needs in 2013 to Cash to Investing $8,928 90% decline as new investments Common Dividends
Slide 20: Adjusted Earnings Per Share Expectations
NextEra Energy Adjusted Earnings Per Share Expectations 2013 $4.70 - $5.00 2014 $5.05 - $5.65 NextEra Energy’s adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, and net other than temporar
Slide 21: Focus for 2013
Focus for 2013 • FPL: – Maintain leading customer value proposition – Continue execution on large construction projects Fourth nuclear uprate Cape Canaveral in service mid-year Riviera and Port Everglades on track to enter service in 2014 and 2016 – Focus on productivity and cost-effectiveness – Ide
Slide 22: Q&A Session
22 Q&A Session NEXTera’ ENERGY &
Slide 23: NEXT@Cra’
NEXT@Cra’ ENERGY &
Slide 24: Appendix
24 Appendix NEXTera’ ENERGY &
Slide 25: Energy Resources' 2012 Equivalent EBITDA by Asset Category
Energy Resources’ 2012 Equivalent EBITDA by Asset Category(1) ($ MM) Q3 2011 Primary Expectations(2) Actual Driver of Delta Contracted Wind $1,010 - $1,060 $940 Wind resource Contracted Other $445 - $475 $510 Decommissioning fund investment gains Texas Wind $200 - $250 $250 Northeast (Nuclear & Hydr
Slide 26: NextEra Energy Resources 2013 Portfolio Financial Information
NextEra Energy Resources 2013 Portfolio Financial Information (as of December 10, 2012) Equivalent Equivalent Contribution to 1 2 3 Expected Gross Margin % Gross Equivalent Remaining Following 1 Generation Range Margin EBITDA Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expira
Slide 27: Energy Resources' existing assets are largely contracted or hedged for 2013
Energy Resources’ existing assets are largely contracted or hedged for 2013 2013 Equivalent Gross Margin Contributions(1) 2013 Portfolio Sensitivities 6% New Investments(2) • $1/MMBtu change in 12% natural gas ≈ 3 cents in Other (3) adjusted EPS(4) 57% 25% Contracted Assets Merchant Assets (98% hedg
Slide 28: NextEra Energy Resources 2014 Portfolio Financial Information
NextEra Energy Resources 2014 Portfolio Financial Information (as of December 10, 2012) Equivalent Equivalent Contribution to 1 2 3 Expected Gross Margin % Gross Equivalent Remaining Following 1 Generation Range Margin EBITDA Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expira
Slide 29: Energy Resources' existing assets are largely contracted or hedged for 2014
Energy Resources’ existing assets are largely contracted or hedged for 2014 2014 Equivalent Gross Margin Contributions(1) 2014 Portfolio Sensitivities • $1/MMBtu change in 12% New Investments(2) natural gas ≈ 4-5 cents in adjusted EPS(4) 13% Other (3) 51% Contracted Assets (97% hedged) • 1% change i
Slide 30: Wind Resource Performance
Wind Resource Performance Gross1 MWh Production: Actual vs. Long Term Expected Average (Fifteen month trend ended December 31, 20122) 2011 2012 4th QTR YTD 1ST QTR 2nd QTR 3rd QTR 4th QTR YTD Location 3 MW Oct Nov Dec % % MW % MW % MW % MW Oct Nov Dec % % Midwest 2,865 96% 106% 98% 100% 93% 2,865 10
Slide 31: NextEra Energy Resources – Wind Portfolio Locations
NextEra Energy Resources – Wind Portfolio Locations1 December 31, 2012 Mount Copper 54mw Mount Miller 54mw Ghost Pine 81.6mw Ashtabula II 120mw Baldwin 102.4mw Oliver County I&II Midwest 2,865mw 50.6mw / 48mw West 2,875mw Wilton I&II Langdon I&II Pubnico Point 30.6mw 49.5mw / 49.5mw 118.5mw / 40.5mw
Slide 32: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) Asset/(Liability) Balance as of 9/30/12 $405.4 Amounts Realized During 4th Quarter (35.4) Primary Drivers: Revenue Hedges – Gas Change in Forward Prices (all positions) 30.1 & Power Prices $21.1 Subtotal – Income Statement (5.3)
Slide 33: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ 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 34: 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 12/31/12 2013 2014 2015 2016 2017 - 2032 2013 - 2032 Natural gas related positions $ 468.3 $ (97.4) $ (93.6) $ (85.5) $ (82.9) $ (108.9) $ (468.3) Spark spre
Slide 35: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Three Months Ended December 31, 2011) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 216 $ 402 $ 49 $ 667 Adjustments, net of income taxes: Net unreal
Slide 36: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Three Months Ended December 31, 2012) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 256 $ 171 $ 2 $ 429 Adjustments, net of income taxes: Net unreali
Slide 37: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Full Year Ended December 31, 2011) Florida Pow er Energy Corporate & (m illions, except per share am ounts) & Light Resources Other NextEra Energy, Inc. Net Income (Loss) $ 1,068 $ 774 $ 81 $ 1,923 Adjustments, net of income taxes: Net unrea
Slide 38: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Full Year Ended December 31, 2012) Florida Pow er Energy Corporate & (m illions, except per share am ounts) & Light Resources Other NextEra Energy, Inc. Net Income (Loss) $ 1,240 $ 687 $ (16) $ 1,911 Adjustments, net of income taxes: Net unr
Slide 39: Cautionary Statements and Risk Factors That May Affect Future Results
Cautionary Statements 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, b
Slide 40: Cautionary Statements and Risk Factors That May Affect Future Results
Cautionary Statements and Risk Factors That May Affect Future Results risks to NextEra Energy and FPL's retail businesses of compromise of sensitive customer data; risks to NextEra Energy and FPL of volatility in the market values of derivative instruments and limited liquidity in OTC markets; impac
Slide 41: NEXT@Cra’
NEXT@Cra’ ENERGY &