Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Investor Presentation (April 2017)
42 slides from Nextera Energy's investor presentation, April 2017
Slide 1: Japan Investor Presentation
Japan Investor Presentation April 2017
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
Cautionary Statements And Risk Factors That May Affect Future Results This presentation includes forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward- looking statements. The factors that could cause actual results to
Slide 3: Table of Contents
Table of Contents • NextEra Energy, Inc. Overview (NYSE: NEE) Slide 4 • Florida Power & Light Slide 9 • NextEra Energy Resources Slide 14 • NextEra Energy Partners, LP (NYSE: NEP) Slide 20 • Financial Review Slide 28 • Appendix Slide 31 3
Slide 4: NextEra Energy is comprised of two strong businesses supported by a common platform
NextEra Energy is comprised of two strong businesses supported by a common platform • $60 B market capitalization(1) • 46 GW in operation(2,3) • $90 B in total assets(3) • Partnership with • One of the largest electric • The world leader in utilities in the nation by electricity generated from elect
Slide 5: Built on a foundation of best-in-class operational excellence and financial strength
Built on a foundation of best-in-class operational excellence and financial strength, and focused on clean generation Cost and Reliability Generation Profile 2015 Utility & Corporate Benchmarks 2016 NextEra Energy Fuel Mix MWhs(3) Nuclear Wind Industry ~$23 FL Avg ~133 Good 26% 20% FPL ~$14 FPL ~61
Slide 6: NextEra Energy has realized substantial and profitable growth while diversifying its asset base
NextEra Energy has realized substantial and profitable growth while diversifying its asset base Adjusted Earnings Per Share(1) North American Presence $6.19 $5.71 $5.30 $4.97 $4.30 $4.39 $4.57 $3.84 $4.05 $3.49 $3.04 $2.63 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Dividends Per Share Cumulativ
Slide 7: Over a sustained period of time, our growth strategy has led to real change
Over a sustained period of time, our growth strategy has led to real change in relative position Top 20 Global Utility Equity Market Capitalization(1) As of 6/1/2001 ($ MM) As of 4/03/2017 ($ MM) Rank Market Cap Rank Market Cap 1 $38,574 1 $60,263 NextEra Energy 2 $38,185 2 $57,543 3 $34,476 3 $49,5
Slide 8: We have extended NextEra Energy's financial expectations by two years, through 2020
We have extended NextEra Energy’s financial expectations by two years, through 2020 NextEra Energy’s Long-Term Adjusted Earnings Per Share Expectations(1) Expected 6 – 8% • CAGR of 6 – 8% through 2020, off a 2016 base • Expectations reflect the overall strength and diversity of our growth prospects
Slide 9: Florida Power & Light
9
Slide 10: FPL is one of the best utility franchises in the U.S.
FPL is one of the best utility franchises in the U.S. Florida Power & Light Core Strategy Service Territory Superior Customer Value Delivery Strong Customer Financial Virtuous Circle Satisfaction Position Constructive Regulatory Environment • Low Cost • ~4.9 MM customer accounts • High Reliability •
Slide 11: Our value delivery is founded on a low cost position and best-in-class operations
Our value delivery is founded on a low cost position and best- in-class operations Operational Cost Effectiveness(1) $100.00 Good Adjusted Regressed Top Decile $/Retail MWh Log/Log FPL ~$14 $10.00 1,000,000 10,000,000 100,000,000 1,000,000,000 Retail MWh (1) FERC Form 1, 2015. Excludes pensions and
Slide 12: FPL's settlement agreement is designed to help deliver continued outstanding customer value
FPL’s settlement agreement is designed to help deliver continued outstanding customer value FPL’s Base Rate Case Settlement • Effective January 2017 through December 2020 • Retail base revenue increases according to the following schedule: – $400 MM beginning January 2017 – $211 MM beginning January
Slide 13: FPL's net income is largely a function of capital employed, capital structure and ROE
FPL’s net income is largely a function of capital employed, capital structure (equity ratio) and ROE earned Net Income, Regulatory Capital Employed and ROE Net Income Regulatory Capital Employed $2,000 $40 $1,648 $1,727 $35 Total 13-Month Net $1,500 $33.9 $30 Average Income $31.3 Regulatory ($ MM) $
Slide 14: NextEra Energy Resources
NEXTeCra’ ENERGY &% RESOURCES _
Slide 15: Energy Resources is a diversified clean energy company whose skills and assets are well aligned to drive growth
Energy Resources is a diversified clean energy company whose skills and assets are well aligned to drive growth Energy Resources Skills and Capabilities Generation Portfolio(2) • Largest generator in the world of electric power from wind and universal solar energy projects(1) – Consistent strategy t
Slide 16: We believe the outlook for our renewables business at Energy Resources has never been stronger
We believe the outlook for our renewables business at Energy Resources has never been stronger Energy Resources Renewables Development • Added ~16 GW(1) of new renewables through 2016 20,000 Wind 15,000 Solar 10,000 5,000 0 2002 2004 2006 2008 2010 2012 2014 2016 • Delivered ~2.5 GW of wind and sola
Slide 17: Energy Resources' renewables development opportunities have never been stronger
Energy Resources’ renewables development opportunities have never been stronger Drivers for Renewables • Extension and phase down of U.S. Federal Tax incentives for renewables • Improvements in wind and solar technology and declining cost trends • Evaluating repowering opportunities across our fleet
Slide 18: U.S. Federal tax incentives for completed renewables projects have been extended
U.S. Federal tax incentives for completed renewables projects have been extended into the next decade Extended U.S. Federal Tax Credits Wind Production Solar Investment Tax Credit (PTC) Tax Credit (ITC) Start of Start of Construction COD Wind Construction Solar Date Deadline PTC Date ITC During 2016
Slide 19: We have leveraged our skills from gas infrastructure to expand into the gas pipeline business
We have leveraged our skills and capabilities from gas infrastructure activities to expand into the gas pipeline business Gas Pipeline Assets Sabal Trail and Florida Mountain Valley Pipeline Texas Pipelines(1) Southeast Connection • Energy Resources expects • Energy Resources expects • NEP completed
Slide 20: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 21: The NEP portfolio is diversified by geography and asset mix
The NEP portfolio is diversified by geography and asset mix NEP Asset Portfolio(1,2) • Wind assets: – 17 projects – ~2,346 MW • Solar assets: – 5 projects – ~442 MW • Pipeline assets: – Seven natural gas pipelines – ~3 Bcf of contracted and ~4 Bcf total capacity (1) Consolidated projects as of Decem
Slide 22: We believe NEP is a premier distribution growth company
We believe NEP is a premier distribution growth company NEP Investment Highlights High-Quality Portfolio Financial Strength and Flexibility ~2.8 GW 18-Yr A3 Renewables >90% <2.0x ~1.2x Capacity(3) of Project Debt Remaining Counterparty HoldCo Coverage & Tax Equity Contract Life(1) Credit(1,2) ~4 Bcf
Slide 23: NEE provides NEP strong visibility into a large portfolio of long-term contracted assets
NEE provides NEP strong visibility into a large portfolio of attractive, long-term contracted assets Strong Sponsor • Renewables backlog – ~13 GW(1) of renewables currently in service – 2.8 – 5.4 GW of contracted U.S. wind and solar projects expected to come in service in 2017 – 2018 – Announced ~1.
Slide 24: Accretive acquisitions have supported significant growth in CAFD and LP distributions
Accretive acquisitions funded by access to both equity and debt have supported significant growth in cash available for distribution (CAFD) and LP distributions NEP Portfolio Run-Rate CAFD(1) Annualized LP Distributions(3) $230-$290 MM $1.41 $85-$90 MM $0.75 (2) IPO 12/31/2016 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 25: NextEra Energy and NextEra Energy Partners announced a structural modification to IDR fees
NextEra Energy and NextEra Energy Partners announced a structural modification to IDR fees NEP IDR Fee Modification • Based on NEP’s fourth quarter 2016 distribution to current LP unitholders at an annualized rate of $1.41(1) per unit, IDR fees are roughly $56 million per year • From this point forw
Slide 26: With the IDR fee modification, future NEP acquisitions are more accretive to LP unitholders
With the IDR fee modification, future NEP acquisitions are more accretive to LP unitholders NEP IDR Fee Modification Original IDR Fee Waterfall Modified IDR Fee Waterfall Cash Available For Distribution = $4.00/Unit(1) LP IDR Fee LP IDR Fee $1.125 First $1.20/unit $0.075 $1.41 First $1.41/unit $0.00
Slide 27: We have extended NEP's long-term outlook for distribution growth by two years, through 2022
We have extended NEP’s long-term outlook for distribution growth by two years, through 2022 NextEra Energy Partners’ Long-Term Distribution per Unit Growth Expectations(1) Annual 12% - 15% Growth(2) $1.41 Q4 2016 Q4 2022E (1) Represents expected fourth quarter annualized distributions payable in Feb
Slide 28: Financial Review
NExTera’ ENERGY @ FINANCIAL REVIEW
Slide 29: Our diverse banking relationships have enabled us to secure over ~$29 billion in credit
Our diverse banking relationships have enabled us to secure over ~$29 billion(1) in credit from over 110 banks that span 19 countries and 4 continents Funding Breakdown by Country Our lending group is large, balanced and well-diversified 1) Reflects corporate credit facilities, commitments and term
Slide 30: NextEra Energy is one of the strongest investment-grade rated electric utilities in the U.S.
NextEra Energy is one of the strongest investment-grade rated electric utilities in the U.S. NextEra Energy Ratings(1) Utility Credit Ratings(2) S&P Moody’s Fitch NextEra Energy 40% NextEra 40% Energy Issuer Credit Rating A- Baa1 A- Outlook Stable Stable Stable 30% Florida Power & Light 24% First Mo
Slide 31: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS 2 31
Slide 32: NExTera’
NExTera’ ENERGY @
Slide 33: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share Attributable to NextEra Energy, Inc. to Adjusted Earnings Per Share 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 2.34 $ 3.23 $ 3.27 $ 4.07 $ 3.97 $ 4.74 $ 4.59 $ 4.56 $ 4
Slide 34: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the unrealized mark- to-market effect of non-qualifying hedges, net OTTI losses on securities held in NextEra Ener
Slide 35: Cautionary Statement And Risk Factors That May Affect Future Results
Cautionary Statement 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, bu
Slide 36: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) impact of unavailability or disruption of power transmission or commodity transportation facilities on sale and delivery of power or natural gas; exposure of NextEra Energy to credit and performance risk from customers, hed
Slide 37: NextEra Energy Partners
NExTera energy” PARTNERS Z
Slide 38: Definitional information
Definitional information NextEra Energy Partners, LP. Adjusted EBITDA and CAFD Expectations This presentation refers to adjusted EBITDA and CAFD expectations. NEP’s adjusted EBITDA expectations represent projected (a) revenue less (b) fuel expense, less (c) project operating expenses, less (d) corpo
Slide 39: Cautionary Statement And Risk Factors That May Affect Future Results
Cautionary Statement And Risk Factors That May Affect Future Results This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra
Slide 40: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP's business is subject to liabilities and operating restrictions arising from environmental, health and safety laws and regulations; Natural gas operations are subject to numerous environmental laws and regulations, comp
Slide 41: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP may continue to acquire other sources of clean energy, including, but not limited to, natural gas and nuclear projects, and may expand to include other types of assets including, but not limited to, transmission project
Slide 42: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) available to holders of NEP's common units for actions taken by NEP GP that might otherwise constitute breaches of fiduciary duties; NEP's partnership agreement replaces NEP GP's fiduciary duties to holders of its common un