Slide 1: Second Quarter 2002 Earnings Teleconference
Entergy Second Quarter 2002 Earnings Teleconference J. Wayne Leonard Chief Executive Officer Cc. John Wilder Executive Vice President and Chief Financial Officer a July 30, 2002 ian En lergy
Slide 2: Safe Harbor
Safe Harbor The following constitutes a “Safe Harbor” statement under the Private Securities Litwation Reform Act of 1995 Investors are cautioned that forward-looking statements contained herein with respect to the revenues, earings, performance, strategies, prospects and other aspects of the busine
Slide 3: 2Q Earnings Add To Our Excellent Track Record
24 Quarter Earnings Add To Our Excellent Track Record Earnings Per Share Earnings Per Share 2000 - 2002 2Q01 vs. 2002 1goo 2900 3q00 4q00 1901 2901 3q01 4aor 2 2002 2Q01 2a02 ii As-Reported i Operational Page3 of 14
Slide 4: Special Items
Special Items 2002 Special Items 102 YTD. $ishare (0.11) (1.15) Eininiments Development Costs Asset impairments Restructuring (1.26) 2002 Special Items %of total Development Costs Asset impairments Bestructui ear structuring 14% M% Gothitiments Paged of 14
Slide 5: Operational Earnings by Business
Operational Earnings by Business Operational Earnings Per Share 2Q01 vs. 2002 $1.17 $1.06 2001 2Q02 Business Key Drivers Ecs e Lower electricity volatility e Lower profitability on gas trading e Increased pipeline revenues due to higher volumes transported Nuclear Higher revenues from addition of IP
Slide 6: Utility Operational Performance Measures
Utility Operational Performance Measures Sales own [Quarterly Highlights | Total sales 23,981 24,262 jl Operational Earnings Per Share increased 1.2% #00! ei 2002 + O&M expense rose 67% primarily due to the storm cost settlement in 0.85 Arkansas es Weather was 2c01 2002 essentially normal O&M Expens
Slide 7: Entergy Nuclear
Entergy Nuclear perational Performance Measures Total Generation “ 78 [Quarterly Highlights | ‘, , 4,208 + Output increased Operational Earnings Per Share im 2001 vs. 2002 due to addition of IP2 5 2001 2002 # Realized price 60% Realized Price increased 12% siMWh » Production costs 0.24 39.88 increas
Slide 8: Energy Commodity Services
Energy Commodity Services perational Performance Measures Times Gas vol y increased 2% Power volatility declined over 44% Operational Earnings Per Share 43 2Q01 vs. 2Q02 17 Lower profitability ‘on gas trading 2001 2002 + Gain/loss ratio declined, but Volatility remained positive 78% + Pipeline throu
Slide 9: Energy Commodity Services
Energy Commodity Services Trading Statistics Average Daily Eamings at Risk $ millions 20 Year-to-Date 10.0 93 56 5.6 o1 02 o1 02 Realization of MTM Eamings at end of 2Q02; % 04.05 03 42% 02 Source of Fair Market Value of Contracts at end of 2Q02; % 02 03 04-05 Total Prices Actively Quoted 73% | 88%
Slide 10: Financial Performance Measures
2 " Financial Performance Measures Retum on Equity Net Margin Operating Cash Flow 12 Months Ended; % 12 Months Ended; % 12 Months Ended; $ billion 19 2.6 2 20 6 1.5 4 1.0 2 os . 00 2@ 4@ 20 40 20 40 20 40 20 98 98 99 99 00 00 014 04 02 2@ 4@ 20 40 20 40 20 40 20 98 98 99 99 00 00 014 04 02 2@ 4a 20
Slide 11: Financial Flexibility Measures
Financial Flexibility Measures Net Debt to Net Capital FFO Interest Coverage Total FFO 12 Months Ended; % 12 Months Ended; % 12 Months Ended; $ billion 60 45 26 55 40 20 50 38 45 30 18 40 2.5 ~ 19 35 20 a0 1.5 os 20 40 20 40 20 40 20 40.20 © 20. 40. 20 40.20 40.2040 20 28: 40 20 40 20 40-20 40 20 98
Slide 12: Wholesale Exposure Is Limited
olesale Exposure Is Limited Forecasted Net Income* Sources Competitive Business % Generation Sold Forward*** % 100% 100% {0% Unregulated 90% Semi- o08 Regulated** 70°% 60% 50 % 96% 00% = ENI Total 40% 30% 20% 10 % Ecs O% 02E 03E 02E 03E *2002 net income was agusted to exclude the EWO restructuring c
Slide 13: 1st Half Results Support Earnings Guidance
1st Half Results Support Earnings Guidance Operational Earnings Per Share 98-02E ? Guidance Midpoint $3.50 $3.12 $e88 $2.22 2” Half of Year 56% 56% 1% Half ane of Year am 98 99 oo 01 O2E Page 13 of 14
Slide 14: Q&A Session
Q&A Session = Entergy