2014 March Investor Presentation
Cautionary Statements And Risk Factors That May Affect Future Results Any statements made herein about future operating and/or financial results and/or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, for example, statements regarding anticipated future financial and operating performance and results, including estimates for growth. Actual results may differ materially from such forward-looking statements. A discussion of factors that could cause actual results or events to vary is contained in the Appendix herein and in our Securities and Exchange Commission (SEC) filings. 2
Table of Contents • NextEra Energy, Inc. Overview Slide 4 • Florida Power & Light Slide 13 • NextEra Energy Resources Slide 19 • NextEra Energy, Inc. Financial Review Slide 26 • Appendix Slide 36 3
NextEra Energy is well-positioned for future growth NextEra Energy – Investment Proposition • Above-average and highly visible growth through 2016 – Rate agreement through 2016 provides regulatory certainty at FPL – Strong backlog at Energy Resources with upside potential • Strong and increasing cash flow from operations – Operating cash flow expected to increase at ~10% CAGR from 2013 to 2016 • Moderate risk portfolio – 84% of adjusted EBITDA coming from regulated and long-term contracted operations by 2016 – Highly hedged against commodity price fluctuations • Underpinned by one of the strongest balance sheets in the industry • Leading dividend per share growth – Targeting 55% dividend payout ratio in 2014, implying ~10% dividend per share growth over 2013 4
NextEra Energy is comprised of two strong businesses supported by a common platform • $39.6 B market capitalization (1) • 42,576 MW in operation • $69 B in total assets • One of the largest U.S. electric utilities • U.S. leader in renewable generation • 4.7 MM customer accounts • Assets primarily in 24 states and Canada • 24,273 MW in operation • 18,303 MW in operation Engineering & Construction Supply Chain Nuclear Generation Non-Nuclear Generation (1) Market capitalization as of February 25, 2014; source: FactSet Note: All other data as of December 31, 2013 5
Our business strategies are straightforward Competitive Strategy Florida Power & Light NextEra Energy Resources Customer • Competitive Markets Satisfaction Superior • Diverse Customer Segments Constructive Customer Virtuous Circle Regulatory Value Environment Delivery Strong Financial Position • Low Cost • Tailored Product Offerings • Experimentation & Innovation • Low Cost • High Reliability • Customer Satisfaction 6
FPL’s operational cost effectiveness continues to be outstanding 2012 Operational Cost Effectiveness (1) $100.00 Adjusted Regressed Good Top Quartile Top Decile $/ Retail MWh FPL 2012 = $16.22/MWh FPL 2016 Projected = $14.92/MWh $10.00 1 10 100 1,000 Retail MWh (MM) 1) FERC Form 1, 2012 total operation expenses and total maintenance expenses excluding pensions, benefits, injuries and damages. Note: Holding companies with >100,000 customers. Excludes companies with no utility 7 owned generation. Duke includes Progress.
FPL’s O&M costs declined through 2005, but in recent years they have increased FPL – Base O&M Costs in Real 2012 Dollars (1) 3.50 3.24 3.00 2.50 ¢ per 2.00 kWh 1.47 1.43 1.50 1.34 1.20 - 1.30 1.00 0.50 0.00 1988 2000 2005 2012 2016E FPL’s goal is to get back to a trend of positive O&M productivity in real terms (1) Cents per kWh expressed in real 2012 dollars Note: See appendix slide 49 for reconciliation of base O&M cents per kWh to GAAP O&M cents per kWh 8
Project Momentum has provided a line of sight to achieve our goal of keeping nominal base O&M expenses flat in 2016 FPL Productivity Improvements • Moving forward with several initiatives with significant O&M cost savings in the following areas: – Nuclear operations – Transmission and distribution – Customer service – Fossil generation operations – Staff functions Our goal of keeping nominal base O&M expenses flat corresponds to ~$1.5 B O&M in 2016 9 Note: See appendix slide 49 for reconciliation of base O&M cents per kWh to GAAP O&M cents per kWh
NextEra Energy is built on a foundation of operational excellence and financial strength SAIDI: System Average Interruption Duration Index (1) Utility Credit Ratings (3) Minutes 40% 38% 150 Good FL Industry Average NextEra 125 35% Energy 100 FPL 30% 75 50 25% 22% 25 20% '06 '07 '08 '09 '10 '11 '12 20% Fossil Reliability – EFOR (2) 15% 10% 11% 10% Industry Average 8% 5% 6% 5% 4% Good 4% NextEra Energy 0% 2% A or higher A- BBB+ BBB BBB- Non- Investment Grade 0% '06 '07 '08 '09 '10 '11 '12 '13 (1) SAIDI represents the number of minutes the average customer is without power during that time period Source: FPL as reported to FL PSC; FL Industry Average consists of data from TECO, PEF, and Gulf as reported to FL PSC (2) Equivalent Forced Outage Rate; NextEra EFOR represents FPL Fossil and NEER TH&S; Industry Source: NERC (Large Fossil Generating Peer Companies). (3) Source: Edison Electric Institute: S&P Utility Credit Ratings Distribution – Financial Update Q3 2013; may not add to 100% 10 due to rounding
NextEra Energy has one of the cleanest emissions profiles among the nation’s top 50 power producers NextEra Energy 2013 Fuel Mix (1) SO 2 Emissions Rates (2) (MWh) (Lbs/MWh) 9.0 7.5 Nuclear Wind Coal 3% 27% 16% 6.0 Solar <1% 4.5 Oil & Hydro NextEra <1% 3.0 Energy Natural Gas 52% 1.5 0.0 NO x Emissions Rates (2) CO 2 Emissions Rates (2) 3.0 (Lbs/MWh) (Lbs/MWh) 2,500 2.5 2,000 NextEra 2.0 Energy 1,500 NextEra 1.5 Energy 1,000 1.0 500 0.5 0.0 0 (1) As of December 31, 2013; may not add to 100% due to rounding. The environmental attributes of NEER's electric generating facilities have been or likely will be sold or transferred to third parties, who are solely entitled to the reporting rights and ownership of the environmental attributes, such as renewable energy credits, emissions reductions, offsets, allowances and the avoided emission of greenhouse gas pollutants. (2) Source for emissions rates: MJ Bradley & Associates 2013 report “Benchmarking Air Emissions of the Largest 11 100 Power Producers in the United States”
Over an extended period of time, we have been successful in attaining our goal of outperforming our industry NextEra Energy Performance vs. Industry 10-Year CAGR Ending December 31, 2013 S&P 500 Utilities NextEra S&P 500 Index Energy Adjusted EPS (2002-2012) (1) 9.0% 0.2% 6.6% (2) Dividend per Share (3) 7.0% 5.1% 8.2% Total Shareholder Return (4) 104% 142% 271% (1) Source: FactSet and NextEra Energy company filings; S&P EPS is unadjusted and is calculated as aggregate Price divided by the aggregated PE ratio of the constituents December 31, 2002 to December 31, 2012. (2) See Appendix slide 52 for reconciliation of adjusted amounts to GAAP amounts (3) Source: FactSet; Dividend per Share 10-year CAGR from December 31, 2003 to December 31, 2013 12 (4) Source: FactSet; Total shareholder return from December 31, 2003 to December 31, 2013
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Florida Power & Light is one of the best utility franchises in the U.S. Florida Power & Light (1) • One of the largest U.S. electric utilities • Vertically integrated, retail rate-regulated • 4.7 MM customer accounts • 24,273 MW in operation • $10.4 B in operating revenues • $36 B in total assets (1) All data as of December 31, 2013 14
We have made excellent progress on our backlog of major capital projects in 2013 FPL’s Backlog of Major Capital Projects Modernization Projects Nuclear Uprates • Cape Canaveral completed • Successfully completed our ahead of schedule and under extended nuclear power budget uprate program in April 2013 – COD April 2013 – Added more than 500 MW of – ~$970MM capex; $164MM zero emission capacity to our GBRA system • Riviera Beach is slightly ahead of schedule and on budget St. Lucie Units 1 & 2 – Expected COD Q2-2014 Turkey Point Units 3 & 4 – ~$1.3B capex; ~$230-240MM GBRA – Received FPSC approval for • Port Everglades is on time and recovery of our extended on budget power uprate investment – Expected COD mid-2016 – ~$1.1B capex; ~$205-215MM GBRA 15
In March 2013 we laid out $4 B to $5 B in incremental capital expenditures that we continue to develop Incremental Capital Expenditures Through 2016 • Incremental storm hardening • Infrastructure / reliability investment • Generation upgrades $4 B - $5 B Natural gas pipelines (1) • • Vero Beach acquisition and other wholesale opportunities • Solar investment These investments must represent win/win for both customers and shareholders (1) Sabal Trail Transmission and Florida Southeast Connection were selected to construct and operate the two 16 pipeline projects.
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