Earnings Conference Call Fourth Quarter and Full Year 2019 January - PowerPoint PPT Presentation

Earnings Conference Call Fourth Quarter and Full Year 2019 January 24, 2020

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 differ are discussed in the Appendix herein and in NextEra Energy’s and NextEra Energy Partners’ SEC filings. Non-GAAP Financial Information These presentations refer to certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles. Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Appendix herein. Other See Appendix for definition of Adjusted Earnings, Adjusted EBITDA, Adjusted EBITDA by Asset Category, and CAFD expectations. 2

NextEra Energy delivered strong financial and operational results in 2019 NextEra Energy 2019 Highlights • Achieved adjusted EPS of $8.37, up ~8.7% from prior year • Outstanding execution and customer value proposition at FPL – Excellent progress on major capital initiatives, growing regulatory capital employed ~8% year-over-year – Reduced already best-in-class $/retail-MWh non-fuel O&M costs (1) more than 5% versus 2018 – Customer bills ~30% below the national average; best-ever service reliability • Successful year of origination and development at Energy Resources – ~5,800 MW added to backlog, including storage and repowering – Commissioned ~2,700 MW of wind, solar, storage and repowering projects – Expect PTC extension to support incremental wind demand in 2023 and 2024 1) Per calculations based on preliminary FERC Form 1 data 3

In the first year of ownership, NextEra Energy successfully executed on its strategy at Gulf Power Gulf Power 2019 Execution Summary Regulatory Operational Capital Employed (2) Cost Effectiveness (1) $/Retail MWh ~$32 ~$3.3 B ~11% ~20% ~$3.0 B Increase Reduction Good ~$25 2018 2019 2018 2019 1) GAAP O&M per retail MWh 2) 13-month average; includes retail rate base, wholesale rate base, clause-related investments and AFUDC projects; excludes accumulated deferred income taxes 4

Execution of our plans at Gulf Power generated significant value creation for our customers and our shareholders in 2019 Gulf Power 2019 Execution Summary Service OSHA Adjusted Recordable Rate (2) Reliability (1) Earnings (3) (Minutes) ($ MM) ~1.84 $200 ~101 ~81 $160 ~1.15 ~40% ~20% 25% Good Good Reduction Improvement Increase Good 2018 2019 2018 2019 2018 2019 1) System Average Interruption Duration Index 2) OHSA Recordable Rate equals number of Occupational Safety and Health Administration Recordable injuries/illnesses * 200,000/Total Hours Worked 3) See Appendix for reconciliation of GAAP amounts to adjusted amounts 5

NextEra Energy Partners had a terrific year of execution in 2019 NextEra Energy Partners 2019 Highlights • Grew distributions per unit by 15% from prior year • Achieved year-end run rate adjusted EBITDA range in excess of original expectations Delivered year-end run rate CAFD (1) representing ~60% growth • from the comparable year-end 2018 run rate range • Executed on all three avenues for growth during 2019 – Acquired ~600 MW renewable portfolio from Energy Resources – Closed on the 3 rd party acquisition of Meade Pipeline Co. – Announced repowering of 275 MW of wind projects • Offset PG&E-related headwinds – Purchased all of the outstanding Genesis OpCo and HoldCo debt, unlocking ~$100 MM of run-rate CAFD • Completed a number of financings and refinancings in 2019 to maximize value for LP unitholders 1) Assuming full contributions from PG&E-related projects 6

FPL’s full -year contribution to EPS increased 26 cents Florida Power & Light Results Fourth Quarter Full Year Net Income EPS Net Income EPS ($ MM ) ($ MM ) $2,334 $4.81 $4.55 $2,171 $0.85 $407 $400 $0.81 2018 2019 2018 2019 2018 2019 2018 2019 7

Continued investment in the business was the primary driver of growth at FPL Florida Power & Light EPS Contribution Drivers Regulatory Capital Employed (1) EPS Growth (Excluding Accumulated Deferred Income Taxes) $B Fourth Full $40.0 $36.4 Quarter Year $33.6 $35.0 FPL – 2018 EPS $0.85 $4.55 $30.0 Drivers: $25.0 New investments $0.08 $0.30 $20.0 Other, including share dilution ($0.12) ($0.04) $15.0 FPL – 2019 EPS $0.81 $4.81 $10.0 $5.0 $0.0 2018 2019 Retail Rate Base Other 1) Excludes accumulated deferred income taxes; 13 month average; includes retail rate base, wholesale rate base, clause-related investments and AFUDC projects 8

Gulf Power contributed adjusted EPS of 41 cents before accounting for financing costs reflected at Corporate & Other Gulf Power Results Results (1) Highlights • Achieved regulatory ROE of ~10.8% for 12 months ending GAAP Adjusted December 2019 Fourth Quarter: – For 2020, expect to be near the Net Income $23 MM $26 MM upper end of the allowed band of 9.25% to 11.25% (3) EPS $0.05 $0.05 • Full year capital investments of ~$730 MM Full Year: – ~2.5x Gulf Power’s 2014 - 2018 Net Income $180 MM $200 MM average capital investment amount EPS $0.37 $0.41 • North Florida Resiliency Connection and Plant Crist coal- to-gas conversion progressing Regulatory Capital Employed (2) $3.3 B well 1) See Appendix for reconciliation of GAAP amounts to adjusted amounts 2) Excludes accumulated deferred income taxes; 13 month average; includes retail rate base, wholesale rate base, clause-related investments and AFUDC projects 3) Assuming normal weather and operating conditions 9

Florida’s economic growth remains strong Florida Economy Florida Unemployment & Labor Participation Rates (1) Florida Consumer Sentiment (2) 110 12% 63% 100 10% 62% Labor Participation 90 Rate 8% (Right Axis) 61% 80 6% 60% 70 4% 59% 60 2% 50 0% 58% Jan-10Jan-11Jan-12Jan-13Jan-14Jan-15Jan-16Jan-17Jan-18Jan-19 Jan-10Jan-11Jan-12Jan-13Jan-14Jan-15Jan-16Jan-17Jan-18Jan-19 2018 Domestic Wealth Migration (3) Florida Building Permits (4) (billions) 16,000 $20.0 $16.0 14,000 $15.0 Net Gain Net Loss 12,000 $10.0 10,000 $3.5 $3.4 $3.0 $2.5 $5.0 8,000 6,000 $0.0 4,000 ($1.7) ($3.2) ($5.0) 2,000 ($5.6) ($10.0) ($8.0) ($9.6) 0 Jan-10Jan-11Jan-12Jan-13Jan-14Jan-15Jan-16Jan-17Jan-18Jan-19 FL AZ TX NC SC MD NJ IL CA NY 1) Source: Bureau of Labor Statistics, Labor participation and unemployment through November 2019 2) Source: Bureau of Economic and Business Research through December 2019 Net change in personal taxable income in 2018; Source: Internal Revenue Service Migration Data – 2017 - 2018 3) 10 4) Three-month moving average; Source: The Census Bureau through November 2019

FPL had continued strong customer growth; Gulf Power customer growth increased slightly as it moves beyond the impacts of Hurricane Michael Customer Characteristics FPL Growth (1,2) FPL Retail kWh Sales (Change vs. prior-year period) (Change vs. prior-year quarter) 98.8 100 Fourth Full Vero Impact Quarter Year 80 UKU Impact # of Customer Growth & Mix 1.6% 1.3% 60 Customers (000’s) 40 + Usage Change Due to Weather 2.1% 2.3% 20 + Underlying Usage Change/Other -4.0% -1.9% 0 = Retail Sales Change -0.3% 1.7% -20 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Gulf Power Customer Growth (1,3) Gulf Power Retail kWh Sales (Change vs. prior-year period) (Change vs. prior-year quarter) 8 Fourth Full 6 Quarter Year # of 3.7 Customer Growth & Mix 0.5% -0.1% 4 Customers (000’s) + Usage Change Due to Weather -2.9% -0.2% 2 + Underlying Usage Change/Other 1.9% -0.2% 0 = Retail Sales Change -0.5% -0.5% -2 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 1) Based on average number of customer accounts for the quarter 2) UKU impact represents increases in customers and decreases in inactive accounts from the automatic disconnection of unknown KW usage (UKU) premises; Vero Impact represents customer growth resulting from the acquisition of the City of Vero Beach’s municipal electric system in Q4 2018 11 3) Q4 2018 through Q3 2019 results include impacts from Hurricane Michael

Energy Resources’ full year adjusted EPS increased ~ 11% over the prior year Energy Resources Results (1) Fourth Quarter Full Year Net Income Net Income EPS EPS ($ MM ) ($ MM ) $433 GAAP: $0.88 $4,704 $9.82 $264 $0.55 $1,807 $3.72 2019 2018 2018 2019 2018 2019 2018 2019 $1,695 $3.49 $323 $326 $0.67 $0.66 Adjusted: $3.14 $1,498 2018 2019 2018 2019 2018 2019 2018 2019 1) Attributable to NEE, see Appendix for reconciliation of GAAP amounts to adjusted amounts; prior-period amounts have been adjusted for the reporting segment change to include NextEra Energy Transmission 12