Slide 1: Earnings Conference Call Fourth Quarter and Full Year 2011
Earnings Conference Call Fourth Quarter and Full Year 2011 January 27, 2012
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: 2011: A mixed year – on balance, positive
2011: A mixed year – on balance, positive Disappointments Successes • Financial results below • Outstanding year for Energy expectations Resources’ project backlog – Wind and solar – Growth roughly in line with • Excellent progress on major FPL long-term industry averages projects – West County Ener
Slide 4: FPL will file for rate relief in 2012
FPL will file for rate relief in 2012 FPL 2012 Base Rate Proceeding • Capital investments (averaging $3 B per year between 2011 and 2013) improve system heat rate, lower fuel consumption – Investments benefit customers through lower fuel costs • Test Year Letter filed January 17, 2012 • Estimated $6
Slide 5: Base rate impacts expected to be offset by improved efficiency and lower fuel prices
Base rate impacts are expected to be offset by improved system efficiency and lower fuel prices FPL Base Rate Request: Bill Impacts • Base rates estimated to go up $6.80 per month(1), or 23 cents per day • Total typical residential bill is currently projected to go up about $3.00 per month(1), or no
Slide 6: FPL expects new rates to be effective on January 1, 2013
FPL expects new rates to be effective on January 1, 2013 Estimated FPL Rate Proceeding Timeline Late Late Q2 January 1, Q1 Q2 Early Q3 Q3 Q4 2013 File formal Quality of Intervenor, Final New rates staff, and FPL Rate rate request service decision by effective rebuttal hearings (testimony; hearings P
Slide 7: FPL’s EPS contributions increased due to investments in the business
FPL’s EPS contributions increased due to investments in the business that benefit customers Florida Power & Light – 2011 Results Fourth Quarter Full Year Net Income EPS Net Income EPS ($ MM) ($ MM) $1,068 $945 $216 $0.51 $2.55 $181 $2.29 $0.43 2010 2011 2010 2011 2010 2011 2010 2011 7
Slide 8: FPL’s earnings growth driven by generation and infrastructure investments
FPL’s earnings growth was driven primarily by generation and infrastructure investments FPL EPS Contribution Drivers – 2011 ($/share) Fourth Full Quarter Year FPL – 2010 EPS $0.43 $2.29 Drivers: Rate base growth and other $0.06 $0.20 Clause, primarily solar and nuclear uprates $0.02 $0.08 AFUDC $0.0
Slide 9: FPL’s customer metrics and the Florida economy are improving slowly
FPL’s customer metrics and the broader Florida economy are improving slowly Customer Characteristics – Fourth Quarter 2011 Retail kWh Sales(1) Customer Growth(2) (Change vs. prior-year quarter) (Change vs. previous year) 100 Customer Growth 0.5% 80 60 + Usage Due to Weather -4.4% # of 40 25 Customer
Slide 10: 2011 was a difficult year for Energy Resources
2011 was a difficult year for Energy Resources Energy Resources – 2011 Results Fourth Quarter Full Year GAAP Net Income EPS Net Income EPS ($ MM) $0.96 ($ MM) $402 $980 $2.37 $774 $1.85 $73 $0.17 2010 2011 2010 2011 2010 2011 2010 2011 $800 $1.93 Adjusted $679 $1.62 $143 $128 $0.34 $0.30 2010 2011 2
Slide 11: Energy Resources’ full year results were challenged by adverse market conditions
Energy Resources’ full year results were challenged by adverse market conditions, nuclear outages, and fewer MW of CITC projects in 2011 compared to 2010 Energy Resources’ Adjusted EPS Contribution Drivers – 2011 ($/share) Fourth Full Quarter Year NextEra Energy Resources – 2010 Adjusted EPS $0.34 $
Slide 12: NextEra Energy’s 2011 adjusted earnings per share increased 2%
NextEra Energy’s 2011 adjusted earnings per share increased 2% year-over-year NextEra Energy Results Fourth Quarter EPS Full-Year 2011 EPS GAAP 2010 2011 Change GAAP 2010 2011 Change FPL $0.43 $0.51 $0.08 FPL $2.29 $2.55 $0.26 Energy Resources $0.17 $0.96 $0.79 Energy Resources $2.37 $1.85 ($0.52) C
Slide 13: Our wind business set several new records in 2011
Our wind business set several new records in 2011 Wind Production Summary 2007 2008 2009 2010 2011 Effective Capacity(1) (MW) 4,173 5,388 6,493 7,624 8,386 Wind Production (MM MWh) 11.4 15.4 15.8 20.4 24.6 Implied Average Capacity Factor 31% 33% 28% 30% 34% Total Production Eligible for PTCs (MM MWh
Slide 14: Financing plans support growth while maintaining strong balance sheet
Our financing plans are designed to support the growth in our business while maintaining our strong balance sheet and investment grade credit ratings 2011 Actual and Future Financing Plans 2011 Sources and Uses of Cash(1) Future Financing Plans USES $ MM % • Continued use of broad mix Cash to Invest
Slide 15: Adjusted Earnings Per Share Expectations
Adjusted Earnings Per Share Expectations 2012 $4.35 - $4.65 Average annual adjusted EPS growth 2011 - 2014 of 5% to 7% through 2014, or a range of $5.05 to $5.65 per share in 2014 NextEra Energy’s adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the
Slide 16: Business mix expected to shift to more regulated and long-term contracted
NextEra Energy’s business mix is expected to shift to a more regulated and long-term contracted business by 2014 Adjusted EBITDA(1) from Adjusted Earnings from Regulated and Long-Term Regulated Businesses Contracted Operations 100% 100% 84% 78% 80% 80% 65% 58% 60% 60% 40% 40% 20% 20% 0% 0% 2011 2014
Slide 17: Achievement of 2012 key objectives sets the stage for growth through 2014
Achievement of NextEra Energy’s 2012 key objectives sets the stage for growth through 2014 Critical Success Factors for 2012 • At FPL: – Continue to deliver outstanding customer value – Continue execution on major capital projects – Achieve satisfactory outcome of base rate case • At Energy Resource
Slide 18: Q&A Session
18 Q&A Session NExTera’ ENERGY 2
Slide 19: NEX Tera
NEX Tera ENERGY &
Slide 20: Appendix
20 Appendix NExTera’ ENERGY 2
Slide 21: Energy Resources’ actual adjusted equivalent EBITDA vs initial expectations
The comparison of Energy Resources’ actual adjusted equivalent EBITDA by asset category to the initial expectations as presented in the Q3 2010 earnings materials Energy Resources’ 2011 Adjusted Equivalent EBITDA by Asset Category(1) ($ MM) Initial Primary Expectations(2) Actual Driver of Delta Cont
Slide 22: NextEra Energy Resources 2012 Portfolio Financial Information
NextEra Energy Resources 2012 Portfolio Financial Information Equivalent Equivalent Equivalent Expected Gross Margin1 % Gross EBITDA1 Remaining2 Following3 Generation Range Margin Range Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expiration Contracted Wind4 6,860 21.9 $1,295
Slide 23: Energy Resources’ existing assets largely contracted or hedged for 2012
Energy Resources’ existing assets are largely contracted or hedged for 2012 2012 Equivalent Gross Margin Contributions(1) 2012 Portfolio Sensitivities 5% New Investments(2) • $1/MMBtu change in (99% hedged) natural gas ≈ 4-5 cents in 11% Other (3) adjusted EPS(4) 54% Contracted 30% Merchant Assets •
Slide 24: NextEra Energy Resources 2013 Portfolio Financial Information
NextEra Energy Resources 2013 Portfolio Financial Information 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 Expiration Contracted 4 Wind 6,860 21.9 $1
Slide 25: Energy Resources’ existing assets 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 14% New • $1/MMBtu change in Investments(2) (100% hedged) natural gas ≈ 6-7 cents in 11% Other(3) 49% adjusted EPS(4) Contracted Assets 26% (96% hedg
Slide 26: Wind Resource Performance
Wind Resource Performance Gross(1) MWh Production: Actual vs. Long Term Expected Average (Fifteen-month trend ended December 31, 2011(2)) 2010 2011 4th QTR YTD 1ST QTR 2nd QTR 3rd QTR 4th QTR YTD 3 Location MW Oct Nov Dec % % MW % MW % MW % MW Oct Nov Dec % % Midwest 2,599 91% 93% 85% 90% 85% 2,715
Slide 27: NextEra Energy Resources – Wind Portfolio Locations
NextEra Energy Resources – Wind Portfolio Locations(1) December 31, 2011 Mount Copper Mount Miller Ghost Pine Ashtabula II Midwest Baldwin West Oliver County I&II Wilton I&II Langdon I&II Pubnico Point Ashtabula I&III Stateline North Dakota South Dakota Mower County Butler Ridge Northeast Vansycle I
Slide 28: Non-Qualifying Hedges – Summary of Activity
NextEra Energy Resources Non-Qualifying Hedges(1) – Summary of Activity ($ MM, after-tax) Asset/(Liability) Balance as of 9/30/11 $160.0 Amounts Realized During 4th Quarter (19.2) Primary Drivers: Revenue Hedges – Gas Change in Forward Prices (all positions) 295.5 & Power Prices $352.0 Subtotal – In
Slide 29: Non-Qualifying Hedges – Summary of Activity
NextEra Energy Resources Non-Qualifying Hedges(1) – Summary of Activity ($ MM, 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 Forwar
Slide 30: Non-Qualifying Hedges – Summary of Forward Maturity
NextEra Energy Resources Non-Qualifying Hedges(1) – Summary of Forward Maturity ($ MM, after-tax) Gain / (Loss) (2) Asset / (Liability) Balance Total Description 12/31/11 2012 2013 2014 2015 2016 - 2032 2012 - 2032 Natural gas related positions $ 515.1 $ (117.5) $ (89.3) $ (83.8) $ (68.9) $ (155.6)
Slide 31: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Three Months Ended December 31, 2010) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 181 $ 73 $ 9 $ 263 Adjustments, net of income taxes: Net unrealiz
Slide 32: 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 33: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Full Year Ended December 31, 2010) Florida Pow er 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 unreali
Slide 34: 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 35: Reconciliation of Adjusted to GAAP 2011 Sources and Uses of Cash
Reconciliation of Adjusted to GAAP 2011 Sources and Uses of Cash (Full Year Ended December 31, 2011) USES SOURCES Limited Commercial Recourse FPL Differential Paper, Cash to Common Total Cash From Project Mortgage Membership Corporate Cash, & Total Investing Dividends Uses Operations Debt (net) Bond
Slide 36: Reconciliation of 2011 Adjusted EBITDA to EBITDA
Reconciliation of 2011 Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA) to EBITDA (Full-Year Ended December 31, 2011) GAAP Adjustments Adjusted (1) Net income $1,923 ($86) $1,837 Add back interest 1,034 0 1,034 (1) Add back income taxes 529 (57) 472 Add back d
Slide 37: 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 38: NEX Tera
NEX Tera ENERGY &