School of BusinessInvestment Program

NextEra Energy

3

Steven LangeNoah Nissen

School of BusinessInvestment Program

Investment Thesis

Company Overview and History

Corporate Governance

Company Landscape

SWOT Analysis

Ratio Analysis

Fundamental Assumptions

Portfolio Analytics

Sector Outlook

Recommendation

NextEra EnergyTable of Contents

School of BusinessInvestment Program

Macro Perspective:

- Upside potential in wholesale- Downside protection in regulation- Utilities thrive in late stage

Company:

- Hybrid Utility- Traditional & Wholesale energy generation- Leaders in renewable energy- Worlds largest utility company- Excellent corporate strategy- Growth through acquisition- Innovation

Investment ThesisNextEra Energy

3Footnotes

Date 10/08/2018

Current Price $173.32

Market Cap $82 Billion

Beta 0.44

Sector/Industry Utilities

Target Price $190.52

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- Nextera (NEE) is the world’s largest utility company and is headquartered in Juno Beach, Florida.

- Began in 1925 as Florida Power & Light Company.

- 1989 Deming Award Winners- In 2010, FPL Group changed its name to

NextEra Energy, reflecting the company’s commitment to the environment and its expansion outside of Florida.

Company Overview and HistoryNextEra Energy

4Footnotes

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James L. RoboChairman and Chief

Executive OfficerNextera Energy, Inc.

Corporate LeadershipNextEra Energy

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Eric SilagyPresident and Chief

Executive OfficerFlorida Light & Power

Company

Armando PimintelPresident and Chief

Executive OfficerNextera Energy Resources, LLC

John KetchumChief Financial OfficerNextera Energy, Inc.

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Corporate StructureNextEra Energy

6Footnotes

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- FPL obtains its operating revenues from the sale of electricity to its five million retail and commercial customers.

- Regulated rates are established by the FPSC through base rates and cost recovery clause mechanisms.

- FPL's allowed regulated return on equity= 10.55% with a range of 9.60% to 11.60%.

- Built in base rate revenue increases:

Florida Power and LightNextEra Energy

7Footnotes

2017 $400 million

2018 $200 million

2019 $200 million

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Nextera Energy ResourcesNextEra Energy

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- One of the largest wholesalers of electric power in the

U.S.

- Clean and renewable sources.

- Develops and builds battery storage projects.

○ Full energy and capacity services

○ Power and gas marketing and trading activities.

○ Invests in natural gas, natural gas liquids, oil

production and pipeline infrastructure assets.

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Strengths Weaknesses

- Acquisition- Cutting costs- Battery prices decrease- Spending $25B on renewables - Government Incentives

NextEra Energy

9Footnotes

Opportunities Threats

- Largest utility company in the world- Excellent operations and management- Hybrid energy company- Innovation- Cheap electricity- Regulation

- Regulation- Debt / Rising interest rates - Service Competition- Seasonality

SWOT

- Government contracts- Electric grid security- Natural Disasters- Commodity pricing

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NextEra EnergyInnovation

Battery development- 100 MW of battery energy storage systems- Efficient lithium ion battery storage- Decreasing battery prices

Wind & Solar energy- 120 Wind facilities in North America -14000 MW- 200 MW clean energy under operation- 50 MW project on Florida coast approved- 7 million solar panel contract with JinkoSolar- $1.3B purchase from Energy Resources

-1338 MW

“By early in the next decade we expect that without incentives, solar will be $0.03 to $0.04 per kilowatt hour product, below the variable costs required to operate an existing coal or nuclear generating facility of $0.035 to $0.05 per kilowatt hour.” - Jim Robo

18MW Storage Meyersdale, PA

20MW Storage Lee Dekalb, IL

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HurricanesNextEra Energy

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Reinforcing infrastructure

- 450 lines underground

- Strengthening 850 critical lines

- 5 Million smart meters

Increasing response time

- 10,000 reps for Irma

Donating to relief funds

- Florida Disaster Relief Fund

- Red Cross

- Puerto Rico

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HurricanesNextEra Energy

12Footnotes

Paid for damage using Federal Tax Savings instead of increasing customer rates

Restored services to 99 percent of the 1.2 million customers affected within 2 days

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- Provide electricity in Mid-Atlantic & Mid-West

- Hybrid revenue stream - Economically failed

nuclear plants in Northeast

- Reliant on Government subsidies

- Reducing emphasis on renewable energy

NextEra Energy

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- Vertically integrated utility across Mid-Atlantic & Mid-West

- Largest customer base- Heavily invested in

traditional energy- Regulated revenue

focus- Coal, Gas, and Nuclear

focused

- Vertically integrated utility located in the Southeast

- 2nd largest utility in terms of customer base

- Invest primarily in traditional energy

- Coal, Gas, and Nuclear focused

- Cost of nuclear plant in Vogtle has doubled estimated $14B

Competitive Landscape

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% Change

NextEra Energy

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Ratio AnalysisNextEra Energy

15Footnotes

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Football FieldNextEra Energy

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Dividend growthNextEra Energy

17Footnotes

10 Year Dividend Growth

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DCFNextEra Energy

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VaR

NextEra Energy

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Buy 41 Shares of NextEra Energy at 173.32

Approximately $7,106

Investment ProposalNextEra Energy

20Footnotes

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● Investment Thesis○ Largest Telecom company in the world in terms of customers (>60%

market share in China)○ Increasing moat against competitors with moves into 4G ○ China Mobile is nearly guaranteed to continue expanding with minimal

competition○ Global trend of moving from voice services towards mobile data (4G)○ Strong support from chinese government

Overall, one of the safest ways to invest in China’s long term growth

China MobileSell 142 Shares of CHL at $49.80

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Date 10/09/2018

Current Price $49.80

Purchase Price $49.65

Market Cap $204 Billion

Beta 0.75

Sector/Industry Telecommunications

Target Price $59.05

P/E 11.28

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Appendix

NextEra Energy

Footnotes

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NextEra EnergyAppendix

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NextEra EnergyAppendix

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NextEra EnergySeasonality