Nextera Energy Inc at Wolfe Utilities, Midstream & Clean Energy Virtual Conference Transcript

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

Question: Steve Fleishman - Wolfe Research LLC - Analyst : Great. Maybe we'll each go over and see there to the -- John Ketchum - Nextera Energy Inc - Chairman of the Board, President, Chief Executive Officer; Chairman of Florida Power & Light Yes. There we go.

Question: Steve Fleishman - Wolfe Research LLC - Analyst : And how -- and in some ways, it's a little unfair or tough because you're probably the one company that I work on where people want to know what's going to happen in the first half of 2030. So when you do this analyst day and the like, how much are you willing and able to kind of communicate with specifics out there? John Ketchum - Nextera Energy Inc - Chairman of the Board, President, Chief Executive Officer; Chairman of Florida Power & Light Yes. Great question, Steve. I mean so one of the things that we're thinking about for the analyst day is really trying to give you color as to how we get a lot of comfort around each of these things being growth drivers. And so when you see the investment horizon associated with these initiatives, we're going to give you milestones, right, to kind of gauge how we're doing. Are we actually doing what we thought we could do in transmission? Are we doing what we thought we could do around gas pipelines? Are we doing what we thought we could do around new build gas-fired generation? And so kind of like what we do with renewables where we give you megawatt targets, we're going to give you tangible targets around these different areas. So it will actually change kind of the tone of the call. It's not just going to be getting on a call and talking about, well, how -- what was the regulatory capital employed growth at FPL and how many megawatts did you do on the renewables side. We're going to be looking at these other factors as well to kind of track progress going forward. And when I think about the post 2030, we're going to give you enough detail to think about in terms of market share, perhaps, maybe CapEx numbers. We're still working through that piece of it to where you'll -- investors will leave comfortable that, yes, post 2030, these folks haven't figured out they're good to go. They have so many growth drivers ahead. And with where the market is heading, we're in great shape.

Question: Steve Fleishman - Wolfe Research LLC - Analyst : Okay. But in -- John Ketchum - Nextera Energy Inc - Chairman of the Board, President, Chief Executive Officer; Chairman of Florida Power & Light And in terms of announcements, we continue to work on those and our discussions continue to progress. Is it going to be in the next two or three -- I'm not going to pin myself down on that, but you will see deals come forward. And I feel good about that.

Question: Steve Fleishman - Wolfe Research LLC - Analyst : So one thing that you talked less about, maybe a little bit less, is renewables. And I think some of that might be you have a lot of other things that you're doing. But maybe devil's advocate say this, well, maybe are things not as good as renewables as they used to be. Maybe you want to talk about how much renewables still -- how well it's going to do over the next --? John Ketchum - Nextera Energy Inc - Chairman of the Board, President, Chief Executive Officer; Chairman of Florida Power & Light Yes. Actually, what we're seeing in renewables, it's better than ever. I mean the volume and the interest from customers is stronger than it's ever been for us. The inbounds just continue to come. And we've done a lot of work on making sure we have fully permitted sites, that we have sites that are ready to go from an interconnect standpoint. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 01, 2025 / 4:00PM, NEE.N - Nextera Energy Inc at Wolfe Utilities, Midstream & Clean Energy Virtual Conference And so we feel great about where that business stands. And then on the storage side, oh my gosh, I mean, the amount of inbounds we're getting on storage and the need and the voracious appetite of this market around storage. So I didn't talk a lot about it. The renewable business is going really well and the storage business is going really well because the market needs electrons now, and these are ready to go electrons. So when I look at like a hyperscale customer, I could -- we could provide them with a wind, solar storage solution. We could provide them with recips and air derivatives to get them up and going until a gas turbine can come online in 2030, '31. I mean there's a lot of different ways to approach this. But having ready-now electrons gets your foot in the door and then your ability to add on to what the generation mix could look like going forward, which is a nice anchor to have for these opportunities as we look to the future.

Question: Steve Fleishman - Wolfe Research LLC - Analyst : And would you also be repowering? John Ketchum - Nextera Energy Inc - Chairman of the Board, President, Chief Executive Officer; Chairman of Florida Power & Light We would, yes, we'll be repowering a lot of these sites through 2030 as well, both wind and solar. We're looking at solar repowering as well. So those are opportunities on top of it.

Question: Steve Fleishman - Wolfe Research LLC - Analyst : Yes, right.

Question: Steve Fleishman - Wolfe Research LLC - Analyst : There was a question, hey, Jim? Unidentified Participant Returns on capital employed all over this period, I mean a lot of investing going on (inaudible)? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 01, 2025 / 4:00PM, NEE.N - Nextera Energy Inc at Wolfe Utilities, Midstream & Clean Energy Virtual Conference John Ketchum - Nextera Energy Inc - Chairman of the Board, President, Chief Executive Officer; Chairman of Florida Power & Light They go up. They go up. I mean what we've been -- what we've seen -- I say that for two reasons. I mean, one is that we have a scarce commodity around our renewable business right now, which is fully permitted sites that have interconnects. And so that is an opportunity set that a lot of our competition doesn't have. And we're already seeing that from certain customers coming back because somebody has backed away from them because they didn't have fully permitted interconnected sites. We've safe harbored around credits. We've safe harbored around (inaudible). We've planned around our supply chain. We've done the things that you would expect us to do. And so that creates a nice supply for us, but all those factors also create scarcity in the market around what can be built. And so that's why it supports higher returns, a higher return on capital employed. And when I think about the hyperscaler or large load opportunities, it's kind of the same thing because when you start thinking about bring your own generation and having to build out these multi-gigawatt power solutions, there just aren't that many people that can do it because they just -- they don't have the balance sheet to write $5 billion, $10 billion checks, first of all. But then they also don't have an all-of-the-above energy capability, a transmission capability, a pipeline capability, a marketing company with a retail presence. I mean, all the pieces that have to come together for that to work, supply chain, scale, operating scale, it creates kind of a much smaller pool of obvious candidates that can bring those forward. Plus what we're also seeing as a hyperscaler that is looking at this market and saying, look, I can't afford -- it's kind of where utilities ended up a couple of years ago post AD/CVD, where they got burned by a lot of small developers that just backed away. They -- a lot of small developers just viewed their contracts as option contracts and walked away. A lot of that business came our way because we had the equipment to actually get those projects built. And I think what a lot of hyperscalers are doing now are saying, well, who can really get this done for us. And we can't afford to take chances because the power doesn't show up and we're 4:1 on the CapEx on our data center build-out, boy, we got to make sure we're partnering with somebody that we know that can actually deliver and be there. And so that's why I think a lot of that bring your own generation business comes our way, and we're in a very limited pool of people who can actually execute in that business. And I think it's an underappreciated part of the hyperscale build-out opportunity set going forward.

Question: Steve Fleishman - Wolfe Research LLC - Analyst : Yes. Go ahead, [Noah] and then [Jeff]. Unidentified Participant John, from the standpoint of (inaudible) are you seeing this (inaudible) like to optimize or like a revenue line or something that can help (inaudible)? John Ketchum - Nextera Energy Inc - Chairman of the Board, President, Chief Executive Officer; Chairman of Florida Power & Light Yes, great question. So both. So on the revenue side, I mean, I see two big opportunities for us. I mean, one is we use our AI tools today and our data advantage for origination, and it's been enormously effective. So what we do, we can go into any utility in the country, any co-op, any muni. We can do a 10-year site plan for them, and I'm not kidding, no, in a week, right? It takes most of these shops six months to a year to do a 10-year site plan. And we usually are within 95% of kind of where they come, but there's always new learnings for them coming out of it because of our experience across generation types. So a lot of times, they'll miss in terms of what the right solution is. They may think it's solar or battery when it's a gas-fired unit or vice versa. And so we have all technologies already loaded into that. We can help them make informed decisions around when to take projects offline and replace them with new generation and where the right pockets are to do the build-out that they're looking to support. If it's transmission, we have a product called TeraGrid, which is a digital twin of the entire United States grid that has an amazing amount of information in it when you're thinking about where to interconnect, where to locate land. We have a product called Ratify that comes with the lowest cost route for any transmission expansion. We share that with the ISOs to try to encourage them to build new projects, but we also share that with our customers as well. So that's a big revenue opportunity that we use as a frontline origination function. Second, as we use AI to make our business better, like the way we approach operations, I mean, imagine a real project, right? We have somebody in our gas plant wearing meta glasses looking at a turbine fault and they're taking a picture of it. The hands are free. They've got an iPad. They're using AI to come up with a tenfold parameters associated with what's coming through the meta glasses. And they're picking -- trying to pick the two or three things that are driving that. Central maintenance is looking at the visual image of that back home, trying to dissect what exactly the problem is. The two of them come together with an instantaneous solution. We then use AI to go run a reverse RFP on the part that needs to be delivered. It's transported overnight. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 01, 2025 / 4:00PM, NEE.N - Nextera Energy Inc at Wolfe Utilities, Midstream & Clean Energy Virtual Conference We have it, and we ran an RFP to get the best price in the world. And we did that with very few human beings involved. I mean that's just one example of the many, many things that -- and we'll do that across power delivery, across nuclear, across gas-fired generation, wind, solar, the scalability of this platform is enormous. The cost-out opportunity is enormous on top of growing the top line. And that's a product that I think we could license and create into a software product that we can sell not only across the United States, but probably globally.

Question: Steve Fleishman - Wolfe Research LLC - Analyst : It's [Jeff], right, yes? Unidentified Participant How about the M&A? (inaudible) any assets you're thinking about (inaudible)? John Ketchum - Nextera Energy Inc - Chairman of the Board, President, Chief Executive Officer; Chairman of Florida Power & Light Yes. I mean, look, I mean, we can always be opportunistic around M&A given all the advantages that we have, not only the competitive advantage that we've gone through, the capabilities across technologies. M&A would be a little bit different, I mean M&A before was generation displacement. Now it's more generation growth driven, right, but driving CapEx investments while taking cost out of the system. So the ability to leverage the scaled platform to be able to take cost out to address affordability concerns in high-growth utility areas is going to be extremely important.

Question: Steve Fleishman - Wolfe Research LLC - Analyst : Other questions? Well, great. John, thank you. John Ketchum - Nextera Energy Inc - Chairman of the Board, President, Chief Executive Officer; Chairman of Florida Power & Light All right, great, Steve.