Slide 1: Second Quarter 2004 Earnings Teleconference
Entergy Second Quarter 2004 Earnings Teleconference J. Wayne Leonard Chief Executive Officer Leo Denault Executive Vice President and Chief Financial Officer & August 2, 2004 aaa 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 rakes staternents concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance.
Slide 3: Reported and Operational Earnings
-Reported and Operational Earnings Earnings Per Share 2Q03 vs. 2Q04 1.14 1.14 2Q03 2Q04 Special items Special Items Utility — River Bend loss provision ($0.28) None Total ($0.28) i As-Reported il Operational Page 2 of 15
Slide 4: Net Cash Flow from Operating Activities
Net Cash Flow from Operating Activities Utility, Parent & Other 2003 vs. 2004; $M Net Cash Flow from Operating 481 ins a S08a: $M “nt Decreased $80M primarily due to timing of recovery of fuel costs 2003 2004 475 530 Entergy Nuclear 2003'vs. 2004;8M Increased over 136 $100M due to fewer planned and
Slide 5: Utility, Parent & Other Quarterly Operational Performance Measures
Utility, Parent & Other Quarterly Operational Performance Measures Earnings Per Share Retail Sales 2Q03 vs. 2004 TWh 236 237 Retail sales were slightly higher with indu: sales growing 4% 2003 2004 083 083 Gig Weather Impact $/Share ous Weather impact __ 2003 2004 was less negative > ko than last yea
Slide 6: Entergy Nuclear Quarterly Operational Performance Measures
Entergy Nuclear Quarterly perational Performance M Earnings Per Share 2Q03 vs. 2004 2003 2004 []Jas-Reported EPS [Jf Operational EPS easures (204 Quarter Highlights Nuclear] Total Generation a GWh 7337 8,196 2003 2004 Realized Price siMWh 39.81 41.33 2003 2004 Production Cost siMWh 20.85 I 18.33 a O
Slide 7: Energy Commodity Services Quarterly Operational Performance Measures
Energy Commodity Services Quarterly Operational Performance Measures Throughput Earnings Per Share Befiday 2003 vs. 2Q04 Throughput was unchanged Production Cost $immbtu $0.138 katte) 2003 2004 Production cost [])As-Reported EPS [Jj] Operational EPS increased Page 6 of 15
Slide 8: Energy Commodity Services Quarterly: Trading Volatility
Energy Commodity Services Quarterly Operational Performance Measures Trading Volatility Gas and Power; % 52 45 2003 2004 [i Gas [Jj Power Average DE@R $M a Gain/Loss Days ratio a ral 2Q03 2Q04 EBITDA / Average DE@R times 60 65 2003 2004 Page 7 of 15
Slide 9: 2004 Earnings Guidance Unchanged
2004 Earnings Guidance Unchanged Earnings Per Share Key Guidance Assumptions 03 vs. 04 $0.38 dispro. sharing $4.25 $4.01 $0. $4.10 - $4.30 0.255 EcS | Utility, Parent_and Other @ Increased revenues due to rate $1.10 - $ Nucleail] actions and sales growth @ Decreased interest and O&M expense e Increa
Slide 10: 2005 Earnings Guidance Initiated
2005 Earnings Guidance Initiated Operational Earnings Per Share Key Guidance Assumptions 04 vs. 05 Utility, Parent_and Other @ Increased revenues due to rate $4.60 -$4.85 actions and sales growth e Increased O&M expenses from Ea _| inflation and supply plan Nucieae e Interest savings e Accretion fro
Slide 11: Earnings Guidance Scenarios
Earnings Guidance Scenarios Earnings Guidance Scenarios Announced Sale of EKLP vs. No Sale Announcement Upon Sale | e Operational EPS will be Announce- revised to reflect treatment ment of Entergy-Koch, LP as No change special item for earnings release purposes due to pending sale e Operational and
Slide 12: Cash Available for Capital Deployment
Cash Available for Capital Deployment Projected Cash Available for Capital Deployment 04E — 06E; $B 6.1 = | 22 (1.3) (1.2) 15 ‘aa 8) Operating Maintenance Preferred & | Free Additional Growth Net of Net Cash Cash Flow Capital Common Cash Debt Capital Proceeds Available Expenditures Dividends Flow Ca
Slide 13: Financial Aspirations
Financial Aspirations Financial Aspirations and Status EPS Growth Near-term: 8-10% © 10-15% EPS growth in 05 vs. 04 midpoint of Long-term: 56% $4.20 ©8-10%EPS growth targeted in 06 driven by intrinsic growth and accretion «56% targeted thereafter Returns 9% ROIC Currently at ~ 7%; ROIC aspiration re
Slide 14: Q&A Session
Q&A Session = Entergy
Slide 15: Appendix — Key Regulatory Cases
Appendix — Key Regulatory Cases Retail Regulatory Cases Recent and Upcoming Events Entergy Procedural schedule 8/2104 — staff and LSPC Order expected 3/05, Louisiana revised in 6/04 intervenors file direct | unless settlement occurs Filed at FERC in 7/04 to _| testimony before then confirm no approv
Slide 16: Appendix — Key Regulatory Cases (Federal)
Appendix — Key Regulatory Cases Federal Regulatory Cases Recent and Upcoming Events a a a Affiliate PPAs | Hearings began 6104; | 12/04— potential ALJ —_| Keyissuesin case are progressing slowly decision process-oriented; contracts can easily be shown to provide benefits to customers Alternative | F