Slide 1: Fourth Quarter 2003 Earnings Teleconference
Entergy Fourth Quarter 2003 Earnings Teleconference J. Wayne Leonard Chief Executive Officer C. John Wilder Executive Vice President and Chief Financial Officer & = February 2, 2004 —~ Entergy
Slide 2: Safe Harbor and Reg G Compliance
Safe Harbor and Reg G Compliance ‘The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: From time to time, Entergy makes statements concerning itsexpectations, beliefs, plans, objectives goals, sk alegies, and fubwe events or performance. Suc
Slide 3: Fourth Quarter Operational Earnings Improved
Fourth Quarter Operational Earnings Improved Earnings Per Share 4002 vs. 4003 @ Operational J] As-Reported [jj operational Utility $ishare 4202 4003 Nuclear $ishare 15 4Q02 Ecs $Ishare 0.11 4002 4003 Parent $ishare (0.03) (0.11) Decreased utility revenues from milder weather partially offset by rate
Slide 4: Higher Than Expected Participation in VSP Increased Related Special Charges
Higher Than Expected Participation in V. Increased Related Special Charges Earnings Per Share 4Q02 vs. 4Q03 0.38 0.33 0.34 4Q02 3 0.17 Special Items Special Items ECS — Impairments/Gain on sale ($0.01) Utility and Nuclear - VSP ($0.52) Total ($0.01) Nuclear — SFAS 143 ($0.03) Total ($0.55) Oo As-Rep
Slide 5: 2003 Operational Earnings Were Strong, Growing in Each Quarter Except the Second
2003 Operational Earnings Were Strong, Growing in Each Quarter Except the Second Quarterly Earnings Per Share Annual Earnings Per Share 02 vs. 03 02 vs. 03 4% Quarter | 24 Quarter | 3 Quarter | 4t Quarter , ional ration: 425 ope! 401 381 173 159 59 1.57157 oe 12 host? = 47 20 039 0330.34 0.38 oz 100
Slide 6: Over 10% Average Annual Operational Earnings Growth Since 98
Over 10% Average Annual Operational Earnings Growth Since 1998 98-03 CAGR Operational Earnings Per Share [JJ Including weather impact 14% 98 - 03; $/share |_| Excluding weather impact 17% il Adjusted for dispro sharing 12% 4.25 4.30 3.81 3.82 2.22 2.22 217 217 585 2.08 Page 5 of 11
Slide 7: 2003 Financial Highlights
2003 Financial Highlights ROIC - Operational ROE — Operational Net Margin - Operational 12 Months Ended; % 12 Months Ended; % 12 Months Ended; % “ay “ey 11.3 107 TA is 10.4 02 03 02 03 02 03 Operating Cash Flow Cash Flow Interest Coverage Net Debt to Net Capital 12 Months Ended; $B 12 Months Ended;
Slide 8: Increased Earnings in 2003 Were Driven by Improved Results at Utility and EK
Increased Earnings in 2003 Were Driven by Improved Results at Utility and EK Operational Earnings Per Share Key Earnings Drivers 02 vs. 03 02 vs. 03 @ Increased revenues from rate increases at EMI and ENOI @ 2% decrease in retail sales due primarily to cogen losses Nuclear e Higher production from f
Slide 9: 2004 Earnings Guidance
2004 Earnings Guidance Operational Earnings Per Share Key Guidance Assumptions 02 vs. 03 Utility, Parent_and Other $4.25 . $4.10 - $4.30 @ Increased revenues due to rate a $3.87 actions and sales growth e Decreased interest and O&M expense @ Increased depreciation expense Nuclear e Increased revenue
Slide 10: Corporate Goals and Milestones
Corporate Goals and Milestones Improve utility ROE |* Before 12/31/04: close an Perryille; resolve EL!'s rate case and EGSI's earnings to top quartile review, file PBR generation plan at ELI and EGS! + On 1/1/05: implement ELI rate increase + Before B/S0/05; file far recovery af ANO steam generator
Slide 11: 2005 Earnings Drivers
2005 Earnings Drivers Estimated Potential Drivers Range of Outcomes EPS Impact vs. 04 Midpt. Urility Sales Growth 1—2% growth $0.10 - $0.20 Supply Plan Acquire OGW vs. 2GW @ $250/Kw $0.00 - $0.05, Rate Case Requests 50% vs. 100% of requested increase $0.10 - $0.20 Competitive Retail 4/1/05 vs. 1/1/0
Slide 12: Q&A Session
Q&A Session = Entergy