Slide 1: Third Quarter 2002 Earnings Teleconference
Entergy Third Quarter 2002 Earnings Teleconference J. Wayne Leonard Chief Executive Officer Don Hintz President C. John Wilder Executive Vice President and Chief Financial Officer a October 30, 2002 ian En ler py
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 thal forward-looking stalements contained herein with respect fo the revenues, earings, performance, strategies, prospects and other aspects of the busi
Slide 3: Quarter Highlights
Quarter Highlights Consolidated EPS Competitive Businesses EPS Operating Cash Flow Operational Operational $B ean er : : 389 $1.24 oar $0.45 0.63 $0.31 3901 3Q02 3Q01 3Q02 3Q01 3Q02 Net Debt to Net Capital 12 Months Ended; % Net Margin — Operational 12 Months Ended; % ROE — Operational 12 Months End
Slide 4: Strong Earnings Growth Continued in the Third Quarter
Strong Earnings Growth Continued in the Third Quarter Earnings Per Share Earnings Per Share 2000 - 2002 3Q01 vs. 3002 4# Quarter 2 Quarter 3" Quarter aot open ie 1.39 _ 4a7 108 4.04, gg1.08 1.08 og 075 0.80 1g00 1001 or | 2000 2a01 2a02 | sq00 sa01 saoz saot aqoz ii As-Reported i Operational Page3 o
Slide 5: Special Items
Special Items 2002 Special Items 2002 Special Items $ishare %of total 0.09 Development Costs Asset Impairments! Gain on Sale Eiriniments 8% Restructuring Development Costs Asset Impairments! Gain on Sale Restructuring Turbine (1.18) ay Commitments Page 4 of 18
Slide 6: Operational Earnings by Business
Operational Earnings by Business Operational Earnings Per Share 3Q01 vs. 302 Business Key Drivers $1.50 Ecs e Reduced pipeline earings due to lower volumes of gas transported $1.24 e Increased trading volumes e Weaker non-nuclear asset results Nuclear e Higher revenues from full quarter of IP2 and p
Slide 7: Utility Operational Performance Measures
Utility Operational Performance Measures Retail Sales GWh Operational Earnings Per Share 29,032 29,906 Total sales 3Q01 vs. 3Q02 increased by 3% Be due to customer 8% growth and higher usage levels 3Q01 3Q02 1.07 O&M Expense ce siMWh 14.17 14.04 O&M fell due to lower plant outage costs 3Q01 3002 Wea
Slide 8: Entergy Nuclear
Entergy Nuclear perational Performance Measures Total Generation GWh Operational Earnings Per Share 8152 7 3Q01 vs. 3Q02 5,887 Output increased due to addition of IP2 and Vermont Yankee 100%) 3Q01 3Q02 0.32 Production Cost siMWh Production costs 17.06 we) rose 8% due to a8 addition of plants and amo
Slide 9: Energy Commodity Services
Energy Commodity Services perational Performance Measures Gain/Loss Ratio Times 33 Operational Earnings Per Share 20 Gain/loss ratio 3Q01 vs. 3002 declined, but remained strong 3Q01 3Q02 Throughput ~ 13% Befiday 2.56 207 0218 Pipeline eamings 7 0.13 decreased slightly due to lower | | 3002 throughpu
Slide 10: Entergy-Koch Trading Statistics
Entergy-Koch Trading Statistics Average Daily Eamings at Risk Source of Fair Market Value of Contracts $ millions at end of 3002; % 3Q Year-to-Date Total "1 Prices Actively a Quoted 78% 90% 80% é 7 Prices Provided By Other Sources 17% 7% 14% Prices Based on Models and Other 5% 3% 5% * The schedule a
Slide 11: Financial Flexibility Measures
Financial Flexibility Measures Net Debt to Net Capital 12 Months Ended; % 60 66 60 45 40 36 20 FFO Interest Coverage 12 Months Ended; % Total FFO 12 Months Ended; $ billion 65 25 60 ee 20 40 18 25 30 10 25 20 os 20 49 20 49 20 49 20 49 20 98 98 99 93 00 00 01 01 02 20 49 20 49 20 4a 20 40 20 98 98 9
Slide 12: Liquidity Position Is Solid
Liquidity Position Is Solid Liquidity - Sources and Uses $B From From From 9/30/02 9/30/02 9/30/02 through through through 12131102 12/3103 12/31/04, Cash 0.9 0.9 0.9 Credit Revolver - unused portion 07 07 07 OCF 0.5 2:2 4.2 Planned Refinancing 0.9 1.5 1.9 Total Liquidity Sources 3.0 5.3 rare Debt M
Slide 13: Numerous Liquidity Levers, If Needed
Numerous Liquidity Levers, If Needed Liquidity Levers Potential Liquidity $B Issue Entergy Corporation term debt $0.5 Reduce annual utility capital spending and $0.4/yr O&M expense by 15% Increase net debt to net capital to 55% at utility $0.3 operating companies under 55% leveraged at end of 2002 P
Slide 14: Ample Cash To Invest In a Buyer's Market
Ample Cash To Invest In a Buyer’s Market Entergy’s Projected Cash Flows 2002 - 2004 $B Sources - $7.78 14 % Uses. $48” ol - ae Beginning ocr New Dett Maintenanme Dividend Investment Avata te for Capital Commitment Growth Announced or Completed Energy Asset Sales in 2002* $B cap ane ration * Based on
Slide 15: Achievable 2002 and 2003 Guidance
Achievable 2002 and 2003 Guidance Operational Earnings Per Share 2003 Guidance 98-03E Range Guidance $3.75 $3.95 Midpoint $3.65 $3.23 $222 $2.17 4 Quarter -[] = 1* Three Quarters 98 99 00 01 02E O3E Page 14 of 15
Slide 16: Q&A Session
Q&A Session = Entergy