Nextera Energy Inc at UBS Global Media and Communications Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: John Hodulik - UBS AG - Analyst : Obviously, Warner Brothers is a significant deal for you guys and for and for the media industry. Help us understand the rationale for the transaction and the benefits to both members and shareholders of the combination. Unidentified Company Representative Yeah, one, we recognize that this is unexpected. We haven't done this before, so maybe just walk you through a little bit of how we think this creates value and sort of also how we get to there and think about how, what's the executability of all the theories that we built into the case and so we've broken it down essentially into three phases and it's worth noting that Phase I is essentially between now and close and Phase I , our job is to continue to grow our business. We've got a tremendous opportunity for organic growth that we still are very excited about, and our job is essentially to execute against that. We think that that's relatively low risk. We know how to go do that. By the way, Warner Brothers will be doing the same in parallel as well. And then you get into the close period and we see essentially this is where we saw two really big centers of value. That we believe are highly executable, and we can implement in this phase. The first part is there's a bunch of titles, that the Warner teams have that we think that there's more value to unlock in, and we think we have exactly the platform to go do that. We've got incredible reach. We've got a project experience that maximizes the value and. Content this is the business that we are in essentially we are constantly in the business of evaluating various different licensing opportunities for titles and then trying to figure out how do we maximize the value of that asset on our platform so again that's something we do day in and day out and we think is relatively low risk to execute. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 7:15PM, NEE.N - Nextera Energy Inc at UBS Global Media and Communications Conference The other component is around HBO, the brand and the service, and you know HBO is an incredible brand with an incredible history. It speaks Prestige TV. We want to double down on that concept and then we think that that gives us an additional lever, additional tool essentially to think about how do we compose plans and offerings for different consumers that give them. The right kind of entertainment they want at the right price point and we think that we are in the business of doing that kind of optimization and you know it sounds like that might be hard to go do but recognize we've just done that we've done that with our ads plan as an example we've had to think about how do you compose a set of offerings and maximize value for the business while keeping consumers happy with different offerings so we see that again as you know completely executable. And we know how to iterate and solve that problem as well and just to be clear that's when we sort of built our evaluation model and sort of set the price those are the centers of value that we really put into that and so we felt like hey we can go achieve on these things. There's a third phase which is where you get into, we've got amazing IP and all sorts of things that we can go deliver on this. We believe we're, very confident that there's things we're going to unlock that a value there. We actually don't know exactly what those are, so we didn't give ourselves credit for them in the evaluation models. So I think we've been appropriately conservative about building, a value where we think we can actually go deliver it. We think we can deliver more. There's upside in the deal at the end of the day, but we're super. Excited on being able to deliver on those pieces. Unidentified Participant Yeah, and I would just add to that, we're obviously the direct to consumer streaming business which we're deeply committed to for both companies. It's the consumers love it. I think it's something that we're quite good at in this transaction we pick up three businesses basically that we're not currently in, so meaning we have no redundancies currently, but like one of them is a motion picture studio with a theatrical distribution machine. And so there's been a lot of speculation what we would do with this, and I think it's really important to note that we haven't talked at all about what we're going to do with this, but what we are going to do with this is we're deeply committed to releasing those movies exactly the way they've released those movies today. All three of these new businesses, we want to keep operating largely as they are. The theatrical business, we've not, been talked a lot about it in the past about wanting to do it because we've never been in that business, and when this deal closes, we are in that business. And we're going to do it. So think about it. If we did this deal 24 months ago, all of those movies we saw this year do so well at the box office for Warner Brothers would have been released in the same way in theaters. I'm talking about Minecraft. I'm talking about Superman. I'm talking about Weapons, all those movies as sinners, these movies will be released on Netflix. Through theaters the way that Warner Brothers did it before, but with the Warner Brothers operating entity, it's really important the way that they create and the way that they drive value. We didn't buy this company to destroy that value. The second one is the television studio who produce and license content to third parties. Also, we were never in that business. We are now and I think it's an important thing that they are and when we get under the hood that's a really healthy business. It's not as big as ours and that's why we haven't really focused that much on doing it. The growth opportunity in our core business has been greater, but now in this transaction we own that business and Channing and that group did a phenomenal job and we want them to continue to do that phenomenal job. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 7:15PM, NEE.N - Nextera Energy Inc at UBS Global Media and Communications Conference And then HBO is another example of that, which is, as Greg said, these are, this is a prestige television brand that people really love, and I would say that they have been doing gymnastics to make themselves into a general entertainment brand. And I think under this transaction they don't have to do that anymore. We're already a very well established general entertainment brand, and we want HBO to double down on the things that people have loved for 50 years about HBO, the fact that prestige television and movies in the various pay TV windows. These are the things that we're going to keep going in this business, and I think when we looked at the whole deal, you'd see that their assets work better in our business model and our business model works better with these assets.

Question: John Hodulik - UBS AG - Analyst : this might come up, Unidentified Company Representative Yeah, exactly. We thought that this might be a topic and we just want to really, bring the facts to this conversation because if you look at Nielsen, this is Nielsen number of, view hours on TV in the US, you can look at the your left right there, we're sixth. In the current ranking right now we're behind YouTube, we're behind Disney, we're behind NBC Universal, we're behind Fox, we're behind Paramount. And then if you say, okay, well you're going to go buy, HBO and HBO Max, put that viewing on the list, this is what that would look like. We go from 8% of view hours today in the United States to 9%. We're still. Behind YouTube at 13% and potentially worth noting that we would be behind what would be if Paramount combined with WBD them at 14%. So we think that there's a really strong fundamentals based case here for why regulators should approve this deal. I pick it up.

Question: John Hodulik - UBS AG - Analyst : Makes sense. So up until this deal, the company and the strategy has been very simple and straightforward. Do all these benefits outweigh the increasing complexity you're going to experience by putting these two companies together? Unidentified Participant Look, I think we built this company very on a very simple proposition. We actually had one SKU for the longest time, right, one model, and that helped us build a really strong foundation. And the idea of that was you build a really strong foundation and then you can introduce new complexities to the business for future growth. And we have now been doing that pretty successfully, I think, by doing things that people would argue are pretty complicated. Unidentified Company Representative And we've never done before either and we haven't. Unidentified Participant Done any of them before. So the simplicity of remember. Started making original series, our first original series. We weren't doing movies then. We weren't doing unscripted then. We weren't doing international originals then, and now we do all of those things very successfully and producing in 50 countries today is pretty complicated. Greg, you've talked about this ingest model that we've been doing with TF1. I think. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 7:15PM, NEE.N - Nextera Energy Inc at UBS Global Media and Communications Conference Unidentified Company Representative It's something new that's been fresh as well. I mean, it's involved like standing up whole new businesses that we've never done before, we've never done live before, we've never done ads before, so all great examples of. Extending that core foundation and building on top of it. Unidentified Participant Being nimble, like I said, I do think that simplicity was an early superpower, I think of ours, and today I think it's enabled us to do things that are really much more complicated but also chase bigger prizes. Unidentified Company Representative I think, we still want to be choosy. We've always been from the perspective of you do a small number of things, but you really do them to win, and that's sort of the same angle that we're taking towards this opportunity as well.

Question: John Hodulik - UBS AG - Analyst : Makes sense. Now I realize it's early in the process, but there has there been any talk about management continuity within the Warner Brothers assets just given all the talent there? Unidentified Company Representative Yeah, I mean, and it goes a little bit back to our core theory and why we like this deal so much because we really do see it as a complimentary situation. If you think about the core business units that exist inside Warner's that we would be acquiring. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 7:15PM, NEE.N - Nextera Energy Inc at UBS Global Media and Communications Conference Those we don't have those units right now so we don't have the redundancy issue. We're not trying to consolidate, drop down, one studio to two studios to one. That's not the business we're in and so actually we love these businesses we like, the leadership we've got very strong people that are in charge of that we, as Ted said, we anticipate executing and running those businesses as they are again they're businesses that we looked at before and we weren't opposed to it. It just we had other things to go do. We had a long list of things that felt like what. Higher priorities for us, but now that we have mature, well functioning units coming as part of this, we're excited to, have those be run by their leaders, operate well, and we think there's a ton we're going to learn from them about operating. Unidentified Participant I think back to what you kind of said earlier, but I think this idea that we're not collapsing the studio, we are actually strengthening one of the most iconic studios in Hollywood by giving them a healthier business model to operate in and continue to release movies into the world largely like they do right now.

Question: John Hodulik - UBS AG - Analyst : Yeah. I, maybe pivoting away from the deal and we'll come back to it in a bit. How would you describe that? Unidentified Participant I would only add two that everyone else that's been kicked around in this transaction have all been reducing their content spend, have all been, laying people off and cutting things. We're investing into it. Like I said, we're growing organically closer to that $30 billion as it is, and we want to continue to grow. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 7:15PM, NEE.N - Nextera Energy Inc at UBS Global Media and Communications Conference

Question: John Hodulik - UBS AG - Analyst : Makes sense so maybe looking a little bit more near term, how would you describe the light for 4Q and as you look out to '26? Well. Unidentified Participant Hopefully some folks in this room are watching Stranger Things right now. So we've had a really strong Q4, obviously Guillermo del Torres Frankenstein nominated for the Globe this morning, which we're super proud of. House of Dynamite, which is fantastic, and we have a new season before the year is out. We still have two more drops of Stranger Things coming, a new season of Emily in Paris, Wake Up Dead Man, which is the new Knives Out movie. That's all between now and just the end of the year. So we're really excited about Q4 and both, I think are some of our core brands. A lot of New titles as well that people are getting really excited about and Wake up dead man, as we've had this incredible kind of run with this franchise and this one will be, we tinkered around a bit with different theatrical models with this one too, and I think it will be a different way for people to get more and more excited about it, but it's a healthy mix of our core brands and returning brands and all new titles coming up too. You want me to go to 26 because we're just happy about 26 too because we're going into, we have Narnia from Greta Gerwig that we're really excited about. We've got new movies from Charlize Theron, Apex. We've got The Rip with Ben Affleck and Matt Damon, and Matt also did another movie that will come out later in the year called Animals. It's incredible, and we've got returning seasons of Bridgerton and One Piece and beef and all you know a bunch of the brands that people really love so we're excited about the '26 outside of this transaction.

Question: John Hodulik - UBS AG - Analyst : And also maybe live events. Is that is that another area that's obviously you've had a lot of success in live events 100%. Unidentified Participant Even before the end of this year we've got a couple of big ones with the Jake Paul fight coming up on the December 19 and then we've got the you know all day of NFL football on Christmas Day. And then we're also ramping up our, this will be the first time next year that we do local live programming for outside of the US. Again, we took a couple of years, learned it, learned the technology, learned the taste. Remember it's limited, it's a good investment, but because of the time zone, it's. Limited in its footprint and I think by doing more local live programming you get the benefits locally. We saw it a lot in the Canelo Crawford fight. It was huge in Mexico for us, outside of the US as well, but once you get pretty far out of the time zone, people are sleeping. So that's why we're getting, we'll grow that. Unidentified Company Representative We'll do World Baseball Classic in Japan, which I think should be super exciting, and it's you see World Cup and Women's World Cup, and so you see the synergistic effects with other parts of our business around like advertising as well. So we feel that has that flywheel effect. Exactly.

Question: John Hodulik - UBS AG - Analyst : And has the ad server lived up to expectations and is it driving demand? Unidentified Company Representative Yeah, our own Ad Sack, yeah, it's incredible to be on our own ad sack because essentially we can now, go incredibly quickly and run with high velocity and we're delivering along essentially the. Dimensions we've talked about before, which is more demand sources. So you know we've added Amazon as a DSP, we've had Aja in Japan. It's better targeting personalization, better measurement. We've got a lot of good work we've been doing there. It's also new ad formats, so we're actually deploying interactive ad formats and you know we'll continue that line of investment, but it just allows us to go, even more quickly. We've got a long list of the same kind of ads in 26, more demand sources, measurement, targeting, more formats, and then '27 we start to move into. A really fun space of sort of nondeterministic targeting model based approaches that you've seen, some of the bigger advertisers out there leveraged to great effect, and so we're, super excited about that, at the end of the day too, and we just think this is again, we see the velocity that we're getting and we see we're going to be able to deliver more and more for our advertisers, while making a great experience for our members.

Question: John Hodulik - UBS AG - Analyst : AI in your view, make short form platforms more powerful and create more competition for for Netflix in terms of engagement? Unidentified Participant There's a case to be made that's the opposite is that more and more content is coming out that people are less and less attached to and less passionate about it, the content creation starts with a great story, starts with great writing, all those kind of things that happen that have to happen before audiences connect. We have a lot of things that you put in all those efforts and people just. Go to the next one. And that's failure, but I would say what's happening now is that's built for people to go to the next one. And so I don't know that necessarily that strengthens them for the long haul. It's interesting. It's fun. It probably adds a level of freshness to it, but I don't know that it improves in my earlier point, better. And cheaper. Unidentified Company Representative Ultimately we believe that telling stories incredibly well consistently is a very scarce commodity out there, and we believe we've got the business model, the best business model for those creators, and so ultimately, we feel like they'll find their home at Netflix. Unidentified Participant You'd have to fundamentally believe that there are all of us have a great story in us. I don't think we do. Sorry. Unidentified Company Representative There's some evidence to support that. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 7:15PM, NEE.N - Nextera Energy Inc at UBS Global Media and Communications Conference Unidentified Participant There's a real skill there in being able to be a great writer and a great storyteller. And yeah.

Question: John Hodulik - UBS AG - Analyst : Maybe quickly on video games, are the video game efforts scaling as you expected, and are they contributing to engagement and maybe subscriber go through churn or just lay that out for. Unidentified Company Representative Yeah, we've been doing a lot of work over the last couple years. A lot of it has been, I'd say, in two categories building plumbing, if you will, building the infrastructure to, create development environments for people to offer games and bring those games to the service, and a lot of work has basically been also understanding the strategy and sort of seeing, as we always say, you never know what you've got until you get out there. Consumers and you figure it out so we've learned a lot from that now we're at the point where we're really unlocking sort of the value of the strategic refinements that we've made, which have been super exciting you know you see a couple of different categories that we're really going after and we feel are consistent with what we can the value we can deliver to members which is differential, which is take you know immersive narrative games that are based on IP that we have so you can imagine fans of squid Games going super deeper into that universe. It's actually fun because we did a. A fun game around golf, but not like it's an incredible masterpiece of a game around golf. And then, with Happy Gilmore you see all these people that are playing it, so you see that, need there. Kids is another space we think we can give a very safe space for kids, no in-app payments, no ads, and just give them a place to play there. Also taking, storied game IP and just finding another distribution range for that. We did it with Grand Theft Auto. We just released Red Dead Redemption, which, as you can see is topping the game charts on mobile. So that's another great example that's there. And the fourth one is, what we think about as social games. This is like family game night, reinvented, or maybe even the extension of what used to be the game show, right? And we released a bunch of games on the TV that, is designed for folks to sit around the TV with their phones controller and play. I think Boggle Boggle, Pictionary, Lego, we're seeing really big take up in that. And then we've got a new game, quiz show game coming, Best LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 7:15PM, NEE.N - Nextera Energy Inc at UBS Global Media and Communications Conference Guess, which is. Exciting, which gets into that a little bit of that game show space and how do we bring interactivity into the linear world too, because we see this really world is blending and so now we're we're definitely seeing those numbers come up in terms. Unidentified Participant Of crossing games and live and all these other new skill sets that we're building on. Unidentified Company Representative To thinking about all these things working together, yeah. Unidentified Participant Did you get a chance to play with any of the games at home over the okay, you got you got anyone here play any of the party games. Unidentified Company Representative Yet? I would take a chance. There we go. Unidentified Participant All right, you'll have fun. You'll have fun.

Question: John Hodulik - UBS AG - Analyst : All. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 7:15PM, NEE.N - Nextera Energy Inc at UBS Global Media and Communications Conference Unidentified Participant Those IP.

Question: John Hodulik - UBS AG - Analyst : Okay, that's great. Any wrap up comments? Unidentified Participant Well, if you're wrapping up, I just would like to say something obviously to the folks in this room and the folks on the stream, many of whom have been owners of Netflix for the long haul while we've navigated some really complicated things, is that we are going into a deal that we are really excited about. We think this deal with Warner Brothers is good for shareholders. We think it's good for consumers. We think it's good for creators. We think it's great for the entertainment industry as a whole because we're creating and protecting jobs and production. And we're going to continue to grow the business and what we're really excited about and we just wanted to say to all of you that we've appreciated you sticking with us through these things and this is in many ways not as complicated as many of the things we've already done. So we look forward to the next phase of this and getting this deal approved and moving forward. We're. Unidentified Company Representative Very excited and then looking forward to delivering all the value that we see in that deal for everyone. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 7:15PM, NEE.N - Nextera Energy Inc at UBS Global Media and Communications Conference