Slide 1: Earnings Conference Call Third Quarter 2011
Earnings Conference Call Third Quarter 2011 November 4, 2011
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: Florida Power & Light had strong results in the third quarter
Florida Power & Light had strong results in the third quarter and is well-positioned for continued growth NextEra Energy Highlights – Third Quarter 2011 • Florida Power & Light – Earnings per share grew approximately 12% over the prior-year comparable quarter – Florida’s economic recovery continues,
Slide 4: Energy Resources made great strides in growing its backlog of projects
Energy Resources made great strides in growing its significant backlog of tangible projects NextEra Energy Highlights – Third Quarter 2011 • Energy Resources – Entered into approximately 1,000 MW of contracts for new solar and wind projects since the second quarter earnings call – Entered into contr
Slide 5: NextEra Energy's adjusted EPS declined year-over-year
NextEra Energy’s adjusted earnings per share declined year- over-year amid a challenging quarter at Energy Resources NextEra Energy EPS Summary(1) – Third Quarter GAAP 2010 2011 Change FPL $0.74 $0.83 $0.09 Energy Resources $0.93 $0.16 $(0.77) Corporate and Other $0.07 $(0.02) $(0.09) Total $1.74 $0
Slide 6: FPL produced solid earnings growth during the quarter
FPL produced solid earnings growth during the quarter Florida Power & Light Results – Third Quarter Net Income EPS ($ MM) $0.83 $347 $0.74 $308 2010 2011 2010 2011 6
Slide 7: FPL's earnings per share grew approximately 12% year-over-year
FPL’s earnings per share grew approximately 12% year-over- year, driven primarily by rate base growth and returns on clause-related investments FPL Third Quarter EPS Contribution Drivers $1.00 $0.09 $0.02 $(0.01) $(0.01) $0.83 $0.80 $0.74 $0.60 $0.40 $0.20 $0.00 Q3 2010 EPS Rate base Clause, AFUDC S
Slide 8: Illustrative example of potential surplus depreciation amortization
This illustrative example shows the potential surplus depreciation amortization over the next couple of years Surplus Depreciation Amortization Illustrative Example $MM 2010 2011 2012 2013 (3) Total Available for Year $267 $530 $592 - $612 $180 - $220 (1) Less Amount Used/Projected ($4) ($160 - $180
Slide 9: Key customer metrics are mixed
Amid the continuing economic recovery, key customer metrics are mixed Customer Characteristics – Third Quarter 2011 Retail kWh Sales(1) Customer Growth(2) (Change vs. prior-year quarter) (Change vs. previous year) 100 Customer Growth 0.5% 80 60 + Usage Due to Weather -1.8% # of 40 24,000 Customers 2
Slide 10: Many of Florida's economic metrics have shown steady improvement since 2010
Many of Florida’s economic metrics have shown steady improvement since 2010 Florida Economy Retail Sales Index(1) Tourism Taxable Sales(1) December 1999 = 100 12-month moving sum ($ B) 140 135 68 130 64 125 120 60 115 110 56 105 100 52 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-07 Jan-08 Jan-09 Jan-10 J
Slide 11: Energy Resources' adjusted earnings declined
Energy Resources’ adjusted earnings declined primarily as a result of challenging conditions in its customer supply and proprietary trading businesses Energy Resources’ Results(1) – Third Quarter GAAP Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $386 $0.93 $267 $0.64 $204 $0.49 $67 $0.16 201
Slide 12: Energy Resources' adjusted EPS were down $0.15 in the quarter
Energy Resources’ adjusted EPS were down $0.15 in the quarter Energy Resources Third Quarter $0.80 Adjusted EPS(1) Contribution Drivers $0.64 $(0.06) $0.05 $(0.13) $0.60 $0.00 $(0.01) $0.49 $0.40 $0.20 $0.00 Q3 2010 New Existing Gas Customer Supply Corporate Q3 2011 Adjusted EPS Investments Assets I
Slide 13: Energy Resources has significant visible growth from tangible projects through 2014
Energy Resources has significant visible growth from tangible projects through 2014 Estimated Capital Expenditures for Projects with a PPA(1) $4.2 B - $4.6 B Solar $2.1 B - $2.3 B $2.6 B - $3.0 B Solar $1.3 B - $1.5 B Wind $2.1 B - $2.3 B Wind $1.3 B - $1.5 B 2011-2012 2013-2014 In total, Energy Res
Slide 14: Energy Resources has long-term PPAs for two new solar PV projects
Energy Resources has long-term PPAs for two new solar PV projects Desert Sunlight McCoy • 550 MW solar PV project • 250 MW solar PV project – Energy Resources owns 50% of – Greenfield development, 100% the project owned by Energy Resources • Expected to begin partial • Expected to reach full operati
Slide 15: NextEra Energy's adjusted EPS expectations for 2011
NextEra Energy’s adjusted EPS expectations for 2011 2011 Adjusted Earnings Per Share Expectations 2011 Low end of $4.35 - $4.65 NextEra Energy’s adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying h
Slide 16: Adjusted EPS expected to be driven by growth at FPL
In the next couple of years, adjusted EPS is expected to be driven by growth at FPL and, to a lesser extent, Energy Resources’ investment backlog 2012 – 2013 Adjusted Earnings Drivers • Growth at FPL is the primary driver – Includes investments designed to help keep customer bills low • Growth at En
Slide 17: 2012 Adjusted EPS Drivers
In 2012, growth at FPL and contributions from new assets at Energy Resources are largely offset by headwinds including lower hedge prices and PTC roll-off 2012 Adjusted EPS Drivers • Growth at FPL – Total rate base(1) is expected to grow approximately 14% from 2011, and retail regulatory ROE is expe
Slide 18: 2013 Adjusted EPS Drivers
In 2013, growth at FPL, stronger contributions from new assets at Energy Resources, and weaker headwinds are expected to drive significant adjusted EPS growth 2013 Adjusted EPS Drivers • Growth at FPL – Total rate base(1) is expected to grow approximately 7% from 2012 • At Energy Resources: – Strong
Slide 19: Energy Resources' earnings growth will come from multiple sources
Energy Resources’ earnings growth will come from multiple sources Energy Resources Adjusted Earnings – 2011E-2013E(1) ($ MM) xim at ely 6.1% o h r a t e of appr al gro wt annu und Compo ~ $55 $(205) - $(185) $15 - $25 $35 - $55 $60 - $75 $90 - $115 $740 - $780 $665 - $685 PTC expiration $(65) Mercha
Slide 20: 2014 Earnings Drivers and 2013-2014 Cash From Operations Expectations
The significant investments we are making across the business are expected to significantly increase cash generation in 2013 and beyond 2014 Earnings Drivers and 2013-2014 Cash From Operations Expectations • In 2014, we expect additional earnings contributions from: – Energy Resources’ new projects
Slide 21: NextEra Energy's adjusted EPS expectations
NextEra Energy’s adjusted EPS expectations Adjusted Earnings Per Share Expectations 2011 Low end of $4.35 - $4.65 2012 $4.35 - $4.65 Avg. annual adjusted EPS growth of 5% to 7% 2011 - 2014 through 2014, from a 2011 base of $4.35 to $4.65, equating to a range of $5.05 to $5.65 NextEra Energy’s adjust
Slide 22: NEX Tera
NEX Tera ENERGY &
Slide 23: Q&A Session
23 Q&A Session NExTera’ ENERGY 2
Slide 24: NEX Tera
NEX Tera ENERGY &
Slide 25: Appendix
25 Appendix NExTera’ ENERGY 2
Slide 26: 2012 Portfolio Financial Information
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 21.8 $1,295 - $1,345 97% $1,010 - $1,
Slide 27: Existing assets are 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(5) • $1/MMBtu change in natural gas ≈ 3-4 cents in 11% Other (2) adjusted EPS(3) 55% Contracted 29% Merchant Assets • 1% change in
Slide 28: 2013 Portfolio Financial Information
2013 Portfolio Financial Information Equivalent Equivalent Equivalent Expected Gross Margin2 % Gross EBITDA2 Remaining3 Following4 Generation Range Margin Range Contract Year PTC MWs Twh's $ in millions Hedged $ in millions Life Expiration Contracted 4 Wind 6,860 21.8 $1,285 - $1,335 94% $985 - $1,0
Slide 29: 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 13% New • $1/MMBtu change in Investments(5) natural gas ≈ 6-7 cents in 11% Other(2) 50% adjusted EPS(3) Contracted Assets 26% (94% hedged) Merchant •
Slide 30: Wind Resource Performance
Wind Resource Performance Gross(1) MWh Production: Actual vs. Long Term Expected Average (Fifteen-month trend ended September 30, 2011(2)) 2010 2011 3rd QTR YTD 4th QTR YTD 1ST QTR 2nd QTR 3rd QTR YTD Location 3 MW Jul Aug Sep % % MW % % MW % MW % MW Jul Aug Sep % % Midwest 2,496 87% 109% 100% 99% 8
Slide 31: NextEra Energy Resources – Wind Portfolio Locations
NextEra Energy Resources – Wind Portfolio Locations(1) September 30, 2011 Mount Copper Mount Miller Ghost Pine Ashtabula II Midwest Baldwin West Oliver County I&II Wilton I&II Langdon I&II Pubnico Point Ashtabula I&III Stateline North Dakota South Dakota Mower County Butler Ridge Northeast Vansycle
Slide 32: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ MM, after-tax) Asset/(Liability) Balance as of 6/30/11 $194.9 Amounts Realized During 3rd Quarter (14.4) Primary Drivers: ERCOT Spark Spread Change in Forward Prices (all positions) (22.6) Sales ($42.1) Subtotal – Income Statement (37.0) All Other –
Slide 33: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ MM, after-tax) 1st Quarter 2nd Quarter Asset / Deals Asset / Deals (Liability) Change in Executed Total (Liability) Change in Executed Total Balance Amounts Forward During Unrealized Balance Amounts Forward During Unrealized Description 12/31/10 Real
Slide 34: Non-Qualifying Hedges – Summary of Forward Maturity
Non-Qualifying Hedges(1) – Summary of Forward Maturity ($ MM, after-tax) Gain / (Loss) (2) Asset / (Liability) Balance Total Description 9/30/11 4Q 2011 2012 2013 2014 2015 - 2032 2011 - 2032 Natural gas related positions $ 222.8 $ (15.3) $ (80.3) $ (34.9) $ (29.9) $ (62.4) $ (222.8) Spark spread re
Slide 35: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Three Months Ended September 30, 2010) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 308 $ 386 $ 26 $ 720 Adjustments, net of income taxes: Net unrea
Slide 36: Reconciliation of Adjusted Earnings to GAAP Net Income
Reconciliation of Adjusted Earnings(1) to GAAP Net Income (Three Months Ended September 30, 2011) Florida Pow er Energy Corporate & NextEra Energy, (m illions, except per share am ounts) & Light Resources Other Inc. Net Income (Loss) $ 347 $ 67 $ (7) $ 407 Adjustments, net of income taxes: Net unrea
Slide 37: Cautionary Statement And Risk Factors That May Affect Future Results
Cautionary Statement And Risk Factors That May Affect Future Results In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Reform Act), NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) are hereby providing cautionary state
Slide 38: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy’s and FPL’s financial results could be negatively affected if they or their rate-regulated businesses are unable to recover, in a timely manner, certain costs, a return on certain assets or an appropriate ret
Slide 39: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy and FPL operate in a changing market environment influenced by various legislative and regulatory initiatives, including, for example, initiatives regarding regulation, deregulation or restructuring of the
Slide 40: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) require significant capital investment in carbon capture and storage technology, fuel switching, or the replacement of high-emitting generation facilities with lower-emitting generation facilities; or affect the availab
Slide 41: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy’s and FPL’s operating results could suffer if they do not proceed with projects under development or are unable to complete the construction of, or capital improvements to, generation, transmission, distribut
Slide 42: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) dependence on a specific fuel source. The occurrence of any of these effects or events could result in, among other matters, lost revenues due to prolonged outages, increased expenses due to monetary penalties or fines, r
Slide 43: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy depends upon power transmission and natural gas transportation facilities owned and operated by others. If transmission or transportation of sufficient power or natural gas is unavailable or disrupted, Next
Slide 44: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) such as mandated energy efficiency measures, demand side management goals, and economic and demographic conditions, such as population, job and income growth, housing starts and new business formation. NextEra Energy’s and
Slide 45: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) The inability of subsidiaries that have existing project-specific financing arrangements to meet the requirements of various agreements relating to those financings could give rise to a project-specific financing default
Slide 46: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy is an active participant in energy markets. The liquidity of regional energy markets is an important factor in the company's ability to manage risks in these operations. Over the past several years, other m
Slide 47: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) ability to pay upstream dividends or to repay funds to NextEra Energy. The subsidiaries have financial obligations, including, but not limited to, payment of debt service, which they must satisfy before they can fund NextEr
Slide 48: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NextEra Energy and FPL add, modify and replace information systems on a regular basis. Modifying existing information systems or implementing new or replacement information systems is costly and involves risks, including,
Slide 49: Cautionary Statement And Risk Factors (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) The ability of NextEra Energy and FPL to obtain insurance and the terms of any available insurance coverage could be adversely affected by international, national, state or local events and company-specific events, as well
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