Entergy Corporation · NYSE:ETR
Entergy — 38th Edison Electric Institute Financial Conference (October 2003)
40 slides from Entergy's conference presentation, Oct 28, 2003
Slide 1: Remembering Our History... Creating Our Future
Remembering Our History... Creating Our Future 38" Edison Electric Institute Financial Conference J. Wayne Leonard Chief Executive Officer r__.\ October 28, 2003 ~~ 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 its expectations, beliefs, plans, objectives, goals, strategies, and future events or perfdmance, Su
Slide 3: Celebrating 90 Years of Reliable Service
Celebrating 90 Years of Reliable Service rh a a MODERN Mf) ELECTRIC SERVIC
Slide 4: When new management took over in 1998
When new management _ took over in 1998, Entergy’s situation resembled the state of the world in the company’s first decade, the 1910s...
Slide 5: Infatuated with Underperforming Assets across the Globe
Infatuated with Underperforming Assets across the Globe “Over There” a ae oh 3 of ; plates 4 A x Cent™alAmerica q < Image Unavailable > q y Sou nerica gi vy 0.20 v ~~ § Billion SEPS Investment Contribution George M. Cohan
Slide 6: ...and we had to address excesses
...and we had to address excesses that were characteristic of the 1920s
Slide 7: Not much money, oh but honey, ain't we got fun?
“Not much money, oh but honey, ain’t we got fun?” < Image Unavailable > Gus Kahn and Raymond B. Egan 1996 1997 1996 1997 6
Slide 8: Our recovery was guided by the wisdom of the 1930s
Our recovery was guided by the wisdom of the 1930s...
Slide 9: We Recognized the Strong Core Competencies of our Business
We Recognized the Strong Core Competencies of our Business om -Top quartile total shareholder retum “Average annual earings growth of 8-10% near-term; 5-6% lon i i: «Improved business posit oday | irati *10% long-term retum on consider «Consistent annual dividen: myself the ; luckiest man Strategic
Slide 10: We Developed a Business Model to Succeed
We Developed a Business Model to Succeed be ate/Weather Data & Legislative/Regulato: Fuel Prices “The only thing : we have to Rigorous fear is fear Analysis itself” j Structured ] Contracts Business Portfolio = mage Unavailable Strategy I Options Management Contracts | President Franklin Roosevelt
Slide 11: We Invest Only in Core Businesses, Advantaged Markets, High Returns
We Invest Only in Core Businesses, Advantaged Markets, High Returns 2Q98 vs. 3Q03 Trailing 12 months; $ “it don’t mean a thing if it ain’t got that swing” | Ecs Nuclear < Image Unavailable > 2098 3Q03 Duke Ellington i
Slide 12: We Set Our Sights on Top-Tier Shareholder Returns
We Set Our Sights on Top-Tier Shareholder Returns 5/28/98-10/17103, % “Share the wealth 190%] S&P Electrics < Image Unavailable > uted $2.5 Bin Cash to -50 2Q98 1Q99 1Q00 1Q01 1Q02 1Q03 3Q03 Shareholders—Equivalen tto 75% of Earnings Huey Long Source: Bloomberg
Slide 13: We had to step up to challenges
We had to step up to challenges as the Allies did in the 1940s
Slide 14: We Went Back to Basics to Improve Performance on the Front Lines
We Went Back to Basics to Improve Performance on the Front Lines Per Customer Per Year Average Minutes — “Praise the Lord and pass the ammunition” 98 — 02; MWhs Not Served 99 - 02; % 2,719 “Pa | < Image Unavailable > - —— —_———— 1,472 1,184 965 c 99 00 01 02 98 99 00 01 02 [i Forced Outage Rate [ilj
Slide 15: We Assembled Resources through Partnerships with the Best
We Assembled Resources through Partnerships with the Best ro “Tl want you!” I U ilabl < Image Unavailable > CUSHMANS 2 WAKEFIELD. James Montgomery Flagg 14
Slide 16: We Developed Systems to Manage Risk and Ensure Accountability
We Developed Systems to Manage Risk and Ensure Accountability al sens ay “The buck stops here” Comprehensive Risk Management System < Image Unavailable > Step 3) 18 President Harry Truman
Slide 17: We had to fend off complacency
We had to fend off complacency as America did in the 1950s
Slide 18: Entergy-Koch Proves Itself with Consistent Performance
Entergy-Koch Proves Itself with Consistent Performance 4Q00 — 3Q03; $/mmbtu (Gas), $/MWh (Power) $immbtu “ 12 ) Henry Hub Spot Are you now 10 \ Gas Price or have you 8 ever been ...?” 6 4 Ny 5 VA, rr. Oe ah bA 0 a 0 1001 2Q01 3Q01 4Q01 1002 202 3Q02 4002 1003 2Q03 3003 < Image Unavailable > BiieU Mi
Slide 19: We're Managing Risks, Maintaining Growth in Our Nuclear Business
We're Managing Risks, Maintaining Growth in Our Nuclear Business rr 1Q01 — 3Q03; % (Capacity Factor, refueling outages denoted with *), MW % 100 “Smoke gets in 80 is your eyes 60 1Q01 2Q01 3Q014Q01 1Q02 2Q023Q024Q021Q032Q033Q03 < Image Unavailable > 1Q01 —4Q03E; $/share 1 0.24 0.25 0.21 1001 2Q01 3Q
Slide 20: Building on Improved Regulatory Relationships with Innovative Ideas
Building on Improved Regulatory Relationships with Innovative Ideas “The power of positive thinking” Avg. 01-02 Potential 04 Avg. 01-02 Potential 04 < Image Unavailable > EMI ENOL Allowed Midpoint 11.75% 11.25% ROE Range +/- 111 bps plus sharing +/- 100 bps Performance Potential 100 bps 100 bps Norm
Slide 21: Vast 1960s-like change moved us to chart a new path
Vast 1960s-like change moved us to chart a new path
Slide 22: Responding to the U-Turn in Industry Deregulation
Responding to the U-Turn in Industry Deregulation “You say you wanta revolution” < Image Unavailable > The Beatles Status of deregulation by state; as of Sept. 2000 mm Restructuring Legislation Enacted a] lm Comprehensive Regulatory Order Issued (J LegislationOrders Pending i li Commission or Legisl
Slide 23: Recognizing and Leading the Re-emergence of Nuclear Power
Recognizing and Leading the Re-emergence of Nuclear Power Nuclear Opportunities “Thave vision and the rest of the world wears bifocals” byl Entergy m Single Unit A Swe Ovarian Butch Cassidy
Slide 24: Innovation in Energy Trading and Asset/Risk Management
Innovation in Energy Trading and Asset/Risk Management “One small step for man, one giant leap for mankind” < Image Unavailable > Astronaut Neil Armstrong 67 Hh 50 47 45 44 40 40 38 36 34 32 2: 26 25 23 22 DEDDODDSRieescgees SY d 2 : LEVEL G EMS CER ip? Utilizing Perspective Mitigates Risk | LT Driv
Slide 25: We seized opportunities in 1970s-style challenges
We seized opportunities in 1970s-style challenges
Slide 26: Creating Value by Improving Operations at Nuclear Plants
Creating Value by Improving Operations at Nuclear Plants Vermont Yankee - 510 MW (BWR - GE) cquired July 2002 FitzPatrick - 825 MW (BWR — GE) Acquired Nov. 2000 3,955 MW@ $240 / kW dd ; Taking care of business” - — oe 670 MW (BWR - GE) Acquired July 1999 Indian Point 2 - 970 MW = < Image Unavailable
Slide 27: Creating Value by Improving Operations at Nuclear Plants
Creating Value by Improving Operations at Nuclear Plants Before ETR Ownership Before ETR Ownership Previous Record vs. 03E vs. 03E Average $/MWWh_ vs. 03E Average % Average days/plant “Float like a ~a4% i = butterfly - os 28% 46% sting like a ————" _southem Fleet in 02 = 97 a —"s bee” Es z= 2 Wok So
Slide 28: Turning Regulatory Negatives into Strengths
Turning Regulatory Negatives into Strengths Entergy New Orleans Inc. Generation Supply Strategy Illustration Before: Strategic After Strate Strate ipply Supply Resor Objecti Resounte Plan lan e “Make love not ability: war” < Image Unavailable >
Slide 29: Our investment strategy reflects the mood of the 1980s
Our investment strategy reflects the mood of the 1980s
Slide 30: Maintaining Discipline in Investment
Maintaining Discipline in Investment ro # of proposals reviewed, # of bids placed 25 “Just say No” | 18 < Image Unavailable > Pipeline | Other Gas Storage Nuclear Plants Fossil Plants Nancy Reagan 23
Slide 31: Building Strong Drivers for Continued Growth
Building Strong Drivers for Continued 04-05E Domestic Utility Sales growth of 1.5- 2% “ , Rate increases and incentives . Supply biden s the Generation supply plan Entergy Nuclear Power uprates and other volume Service revenue Contract and market pricing < Image Unavailable > Entergy-Koch U.S. tradi
Slide 32: Positioning Entergy to Acquire Assets in an Industry Shake-out
Positioning Entergy to Acquire Assetsin __an Industry Shake-out al # 4 $B “Another one bites the dust” < Image Unavailable > YTDO2 YTDO3 31
Slide 33: Execution is the lesson of the 1990s
Execution is the lesson of the 1990s
Slide 34: Performance Management Will Help Drive Growth
~ Performance Management Will Help Drive Growth °%; Utility and Nuclear “It’s the economy, Organization anges < Image Unavailable > Generation Sourcing dames Carville 03E —06E; $M Utility Base _Capital 06E Productivity Inflation Nuclear Adjusted for VY and RFO 755 620 |_| (135) | 02Base Productivity
Slide 35: Entergy on Target to Achieve Its Goals
Entergy on Target to Achieve Its ii ee Measures Achievements Aspirations 14%* (98 - 04E) 7.7% Near Term 9% (up 28% since 2Q98) Long Term 10% BBB+ at ELI A (up from BBB) < Image Unavailable > 46.6% <50% (down 19% since 298) = Ainee dhe ioeeh oon 34
Slide 36: ...And Achieve Our Goal of Top-Tier Shareholder Return
...And Achieve Our Goal of Top-Tier Shareholder Return 5/28/98-10/17/03, % “Show me the 475 eS money” a0 ~ 190% 125 100 75 50 SPELEC < Image Unavailable > 25 OS ae OF S&P 500 -25 | -50 2Q.98 4Q98 3Q99 2Q00 1Q01 4Q01 3Q02 2Q033Q03 Source: Bloomberg 35
Slide 37: As Entergy moves toward its 100th year anniversary
As Entergy moves toward its 100‘ year anniversary... its vision for growth is clear
Slide 38: Earnings Growth will Continue
Earnings Growth will Continue 98-04E; $/share, excluding weather “Can you hear me now?” 4.50 Excluding #09 Disproportional 3,50 : EK Sharing Gl 210% Growin 3.00 - < Image Unavailable > 2.50 2.00 1.50 98 99 00 01 02 03E O4E 37
Slide 39: ...And We Have Options Available to Achieve Success
...And We Have Options Available to 2003 California Governor's Ballet < Image Unavailable > Achieve Success @08@08008080 4 | ’ Grow Utility sales by 0.4% Reduce Utility O&M by 1% Increase Utility ROE by 20 basis points Reduce Nuclear O&M by $0.50/MWh Implement Nuclear power uprate of 50 MW Sign Nucl
Slide 40: Remembering Our History... Creating Our Future
Remembering Our History... Creating Our Future 38" Edison Electric Institute Financial Conference J. Wayne Leonard Chief Executive Officer r__.\ October 28, 2003 ~~ Entergy
Entergy — 38th Edison Electric Institute Financial Conference (October 2003) on 6ix