Slide 1: Fourth Quarter 2002 Earnings Teleconference
Entergy Fourth Quarter 2002 Earnings Teleconference J. Wayne Leonard Chief Executive Officer Don Hintz President C. John Wilder Executive Vice President and Chief Financial Officer & = February 4, 2003 —~ Entergy
Slide 2: Safe Harbor
Safe Harbor The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: investors are cautioned that forward-looking statements contained herein with respect fo the revenues, earnings, performance, strategies, prospects and other aspects of the bus
Slide 3: 2003 and Long-Term Goals / 2002 Financial Metrics
2003 and Long-Term Goals 2002 Financial Metrics Expectations / Performance Continued Excellence Page 2 of 20
Slide 4: Entergy Achieved Its 2002 Goals
Entergy Achieved Its 2002 Goals Grow Operational Earnings 8 —- 10% v Improve Net Margin v Misses aso ely api Ml Strengthen Balance Sheet v es Page 3 of 20,
Slide 5: Fourth Quarter Earnings Rose Sharply
Fourth Quarter Earnings Rose Sharply [Qperational.Eamings Key Drivers] Earnings Per Share Utility 4001 vs. 4002 $Ishare iscreaseawai-eaes a i volumes offset by higher intercompany tax accruals and 4001 4002 higher O&M expenses Nuclear $ishare Addition of Vermont ik Yankee offset by Hi increase in re
Slide 6: 2002 Operational Earnings Were Strong, Growing in Each Quarter
2002 Operational Earnings Were Str Growing in Each Quarter Quarterly Earnings Per Share Annual Earnings Per Share 2001 vs. 2002 2001 vs. 2002 ‘a Quarter | 2 Quarter | 3 Quarter | 4 Quarter 1s [1.06106 1.06 pt? ‘a il es 1001 2001 2002 4001 4002 2001 2002 035 in | As-Reported i Operational Page 5 of 2
Slide 7: Annual Operational Earnings Improved At Each Business
Annual Operational Earnings Improved At Each Business Operational Earnings Per Share Key Earnings Drivers 2001 vs. 2002 $3.23 2001 2001 vs. 2002 $3.81 @ 2% increase in total retail sales e Higher O&M expense -Nucleanl Nuclear @ Significantly higher production @ Improved realized MWh prices @ Increas
Slide 8: Annual Utility Operational Performance Measures
Annual Utility Operational Performance Measures Retail Sales Operational Earnings Per Share sWh 7 2001 vs. 2002 99,956 101,631 Total GWh retail sales increased by 2% due to customer growth and higher 257 2001 2002 mogeuevels 2.46 sf SEM Expense O&M expense rose 19.29 primarily due to ice 1056: storm
Slide 9: Annual Entergy Nuclear Operational Performance Measures
Annual Entergy Nuclear perational Performance Measures = Total Generation Wh 29,953 , Operational Earnings Per Share 22.614 Output increased due 2001 vs. 2002 D | to addition of Vermont Yankee and full year of Indian Point 2 2001 2002 Realized Price 0.88 smn 40.07 ; ; Realized price 0.57 increased 1
Slide 10: Annual Energy Commodity Services Operational Performance Measures
Annual Energy Commodity Services Operational Performance Measures Operational Earnings Per Share 2001 vs. 2002 0.53 0.38 2001 2002 Volumes Traded Befid (gas); TWh (power) 408 181 30 58 2001 2002 BB cas Power Throughput Beflday 2.45 2.40 2001 2002 Gain/Loss Ratio Times 28 Z| 2001 2002 = Gas marketed
Slide 11: 2002 Results / 2003 and Long-Term Goals
an 2003 and 2002 Results a Long-Term Goals Expectations Continued Excellence Page 10 of 20
Slide 12: Operational Earnings Grew By 18%
Operational Earnings Grew By 18% Operational Earnings Per Share | Including weather impact 1998 — 2002; $/share i Excluding weather impact 3.81 3.82 3.12 3.23 3.24 2.80 2.22 247 1.92 2.08 98 99 00 01 02 Annual Growth 8% 35% 16% 18% Page 11 of 20
Slide 13: 2002 Operating Cash Flow Exceeded $2 Billion
2002 Operating Cash Flow Exceeded $2 Billion i aa 2.22 2.18 1.97 1.84 1.39 1998 1999 2000 2001 2002 Page 12 of 20
Slide 14: Returns Increased
Returns Increased Return on Average Invested Capital* Return on Average Common Equity* 2001 vs. 2002; % 2001 vs. 2002; % 11.3 10.0 7.3 7.6 2001 2002 2001 2002 operational Page 13 of 20
Slide 15: Operational Net Margin Reached Six Year High
Operational Net Margin Reached Six Year High Net Margin 1997 - 2002; % 10.4 76 72 5.7 97 98 99 00 01 02 J] As-Reported [fj Operational Page 14 of 20
Slide 16: Credit Metrics Improved
Credit Metrics Improved Net Debt to Net Capital FFO Interest Coverage 2001 vs. 2002; % 2001 vs. 2002; times = 49.7 46.3 43 4.6 2001 2002 2001 2002 Page 15 of 20
Slide 17: 2002 Financial Metrics
2002 Financial 2002 Results Metrics Expectations / Performance Continued Excellence Page 16 of 20
Slide 18: 2003 Financial Objectives
2003 Financial Objectives e Grow earnings to $3.75 - $3.95, Operating excluding disproportionate sharing Performance @ Deliver operating cash flow of $2 billion or more @ Top quartile improvement in net margin Financial Performance Financial Investment Flexibility Returns © Maintain a $750 million m
Slide 19: 2003 Earnings Guidance
2003 Earnings Guidance Operational Earnings Per Share Key Guidance Assumptions 2002 vs. 2003 $3.81 $3.75 - $3.95 e Increased revenues due to $3.60* tate actions and sales growth $0. e Higher O&M and depreciation expense a Nuclear e Increased generation e Decreased O&M expense $ offset by increased o
Slide 20: Additional Items Considered In Guidance
Additional Items Considered In Guidance
Slide 21: Long-Term Financial Objectives
-Term Financial Objectives e Average annual earnings growth of Operating 810% Performance, @ Top quartile cost position @ Top quartile net margin jancial Performance Fin Financial Investment Flexibility Returns e Highly competitive capital structure e Free cash flow reinvested in advantaged aligned
Slide 22: Q&A Session
Q&A Session = Entergy