Nextera Energy, Inc. · NYSE:NEE
Nextera Energy — Barclays CEO Energy-Power Conference 2020
37 slides from Nextera Energy's conference presentation, Sep 8, 2020
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference Rebecca Kujawa Executive VP and CFO, NextEra Energy September 8, 2020
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
Cautionary Statements And Risk Factors That May Affect Future Results These presentations include 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: NextEra Energy is comprised of strong businesses supported by a common platform
NextEra Energy is comprised of strong businesses supported by a common platform • ~$137 B market capitalization(1) • ~55 GW in operation(2) • ~$122 B in total assets(3) • The largest electric utility in the United States by retail MWh sales • Provides electric service • The world leader in to over 4
Slide 4: We have a long-term track record of delivering value to shareholders
We have a long-term track record of delivering value to shareholders Adjusted Earnings Per Share Total Shareholder Return(1) $8.37 50% 119% 43% 120% 40% 100% 32% 30% 26% 80% $2.49 60% 48% 53% 20% 40% 10% 20% '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 0% 0% One Year Three Year Di
Slide 5: Our strategy has generated real value for all stakeholders
Our strategy has generated real value for all stakeholders ESG Highlights(1) Environment Customers • 47% better CO2 emissions rate than • 30% lower bills than the national average industry average • 63% better operating costs than industry • World’s leading wind, solar, and battery average storage p
Slide 6: We are well positioned to continue our track record of growth
We are well positioned to continue our track record of growth Wholesale FPL FPL Gas & Service FPL Coal Under- Energy Utility Territory Retirements grounding Services Expansion FPL Hydrogen Battery FPL Solar FPL T&D FPL New Infrastructure Generation Expect Storage $50 B - $55 B of capital FPL deploym
Slide 7: We expect the industry's disruptive factors will further expand and accelerate
We expect the industry’s disruptive factors will further expand and accelerate over the coming years Disruptive Industry Changes Today Potential Cost per MWh Post-2023/2024(1) AI / ($/MWh) Machine Learning Near-Firm Wind $20 - $30 Big Data Renewables / Storage Near-Firm Solar $30 - $40 Natural Gas $
Slide 8: At FPL, we will continue to focus on the long-term strategy
At FPL, we will continue to focus on the long-term strategy that has delivered our best-in-class customer value proposition FPL Customer Value Focus Operational Service Cost Effectiveness(1) Reliability(2) $/Retail MWh minutes ~$11.10 – ~55 ~50 $11.78 ~5% $11.75(4) ~10% Good Reduction Good Improveme
Slide 9: Gulf Power customers have begun to benefit from the NextEra Energy playbook
Gulf Power customers have begun to benefit from execution of the NextEra Energy playbook The NextEra Energy Playbook at Gulf Power Operational Cost Effectiveness(1) Service Reliability(2) $/Retail MWh minutes ~$32 ~101 Good Good ~81 ~20% ~$25 ~20% Reduction Reduction 2018 2019 2018 2019 OSHA Recorda
Slide 10: Energy Resources' renewables development opportunities have never been stronger
We believe Energy Resources’ renewables development opportunities have never been stronger Low Cost Battery Battery Renewables Storage Storage Nuclear/Coal- Nuclear/Coal- Technology to-Renewables to-Renewables Improvements Buy Build Switching Switching Cheaper Cheaper ~80 GW Federal Tax Development
Slide 11: Technology improvements and capital cost declines have improved wind and solar economics
Technology improvements and capital cost declines have significantly improved wind and solar economics Wind & Solar Technology Levelized Cost of Levelized Cost of Electricity from Wind Electricity from Solar (Including Production Tax Credits) (Including Investment Tax Credits) $/MWh $/MWh $70 $160 $
Slide 12: Increased manufacturing capacity has resulted in energy storage cost declines
Increased manufacturing capacity has resulted in energy storage cost declines and the ability to create low-cost near-firm wind and solar Energy Storage Costs Battery Pack 4-Hour Cost Relative to Capacity(1) Battery Storage Adder(2) $/kWh GWh $/MWh $1,400 350 $80 $71-$81 $70 $1,200 300 $60 $1,000 25
Slide 13: Energy Resources backlog of future renewables projects has never been stronger
Energy Resources backlog of future renewables projects has never been stronger Energy Resources Renewables Backlog(1) (MW) ~14,400 ~12,000 ~8,900 ~5,000 ~3,700 ~2,900 ~2,100 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 2019 Q2 2020 Wind Solar Repowering Energy Storage Year to MW Our ~14,400 daterenewa
Slide 14: Energy Resources' distributed generation business is an industry leader
By leveraging Energy Resources’ best-in-class renewables development platform, our distributed generation business is an industry leader Energy Resources – Distributed Generation (DG) Capital Expenditures • Innovative, nimble business responding to the demand for zero-carbon, low-cost ~$3 B renewabl
Slide 15: Benefits of Energy Resources' DG Platform
The DG business has generated benefits throughout the NextEra Energy organization Benefits of Energy Resources’ DG Platform • Develop and expand relationships with buyers that may be interested in other Energy Resources’ products – Customers increasingly interested in other low carbon solutions, dri
Slide 16: The many end-uses for hydrogen make it a leading pathway to a zero-carbon future
The many end-uses for hydrogen make it a leading pathway to a zero-carbon future Power Sector Transport Industry Buildings Backup Remote Ammonia Combined Passenger Trains on non- Power Generation Trucks electrified and heat and Vehicles routes Methanol power Hydrogen Recip. Steel Hydrogen Buses Fork
Slide 17: FPL is proposing a hydrogen pilot project
FPL is proposing a hydrogen pilot project that is consistent with our toe in the water approach Okeechobee Clean Energy Center (OCEC) – Hydrogen Pilot Project FPL Grid • FPL will construct and operate Okeechobee 3 Solar OCEC Combustion a solar and hydrogen system at Energy Center (75 MW) Turbine A 9
Slide 18: Hydrogen provides a pathway to achieving a zero-carbon future
Hydrogen provides a pathway to achieving a zero-carbon future in power as well as through the electrification of transportation and industrial sectors Hydrogen Opportunity(1) Potential 2050 Zero Carbon • NextEra Energy is an early 2019 Renewables Deployment mover in green hydrogen ~5-8x ~19-24x • Wi
Slide 19: We remain well positioned to continue our strong adjusted EPS growth
We remain well positioned to continue our strong adjusted EPS growth NextEra Energy’s Adjusted Earnings Per Share Expectations • Expect 6% - 8% growth $10.00 - through 2021 off our 2018 base $9.40 - $10.75 of $7.70, plus the expected $8.70 - $9.95 accretion from the Florida $9.20 acquisitions of $0.
Slide 20: NextEra Energy Partners
NExTera energy’ PARTNERS 2
Slide 21: NextEra Energy Partners' Portfolio
NextEra Energy Partners is a best-in-class diversified clean energy company NextEra Energy Partners’ Portfolio(1) • Stable cash flows supported by: – Long-term contracts with credit- worthy counterparties – Geographic and asset diversity • ~5,330 MW of renewables – ~4,575 MW wind – ~750 MW solar • ~
Slide 22: Acquisitions from Energy Resources provide visibility to continued growth at NEP
Acquisitions from Energy Resources provide clear visibility to continued growth at NEP Energy Resources’ Renewable Portfolio Since NEP’s IPO(1) GW ~27 GW - ~5 GW 32 GW 30 ~13 GW 25 20 ~9 GW ~5 GW 15 10 ~10 GW 5 0 NEER's MW Placed in MW Sold to NEP Current Additional Current Portfolio Renewables Serv
Slide 23: NEP's balance sheet and financing flexibility are expected to create a sustainable base
NEP’s balance sheet and financing flexibility are expected to create a sustainable base for future growth Financial Flexibility • Financing and construction of organic growth investments remain on track Convertible PAYGO Tax High-Yield Equity • Over the past year, NEP’s Equity Debt Portfolio revolvi
Slide 24: NEP's long-term outlook for distribution growth through 2024 is best-in-class
NEP’s long-term outlook for distribution growth through 2024 is best-in-class NextEra Energy Partners Financial Expectations Annualized LP Distributions(1) Adjusted EBITDA and CAFD(3) Annual $1,225–$1,400 MM 12% - 15% Growth(2) $560–$640 MM $2.40-$2.46 $2.14 Q4 2019 Q4 2020E Q4 2024E 12/31/2020 12/3
Slide 25: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS Z 25
Slide 26: NextEra Energy
NExTera’ ENERGY @
Slide 27: Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc.
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Twelve Months Ended December 31, 2019) Florida Pow er Gulf Energy Corporate & NextEra (m illions, except per share am ounts) & Light Pow er Resources Other Energy, Inc. Net Incom e (Loss) Attributable to Nex
Slide 28: 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 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(1) 2017(1) 2018 2019 Earnings Per Share Attributable to NextEra Energy, Inc. (assuming dilution) $ 2.48 $ 2.34 $ 3.23 $ 3.27 $ 4.0
Slide 29: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the effects of non-qualifying hedges and unrealized ga
Slide 30: 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 31: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's risk management tools associated with its hedging and trading procedures to
Slide 32: NextEra Energy Partners
NExTera energy’ PARTNERS La
Slide 33: Expected Cash Available for Distribution
Expected Cash Available for Distribution(1) (December 31, 2020 Run Rate CAFD; $ MM) $1,370-$1,540 ($20-$30) ($110-$120) $1,225-$1,400 ($165-$215) ($430-$510) ($40-$45) ($5-$15) $560-$640 Project-Level Corporate IDR Fees Adjusted Debt Pre-Tax Tax Non-Cash Maintenance Estimated (2) (3) (4) Adjusted EB
Slide 34: 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 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 federal securities laws. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra
Slide 36: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP may not be able to extend, renew or replace expiring or terminated power purchase agreements (PPA), natural gas transportation agreements or other customer contracts at favorable rates or on a long-term basis; If the en
Slide 37: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP's ability to make distributions to its unitholders depends on the ability of NEP OpCo to make cash distributions to its limited partners; If NEP incurs material tax liabilities, NEP's distributions to its unitholders ma
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