Paul J. Evanson President Florida Power

1
Paul J. EvansonPresidentFlorida Power Light
Company

• Gabelli Asset Management Company
• 18th Annual Conference
• May 17, 2003

2
(No Transcript)
3
(No Transcript)
4
2002 Recap

• Power margins collapsed
• Power market liquidity disappeared
• Credit dried up
• Almost everyone downgraded, many multiple times
• Multiple restructurings/layoffs
• More scandals - wash trades, etc.
• Lots of lawsuits - California, Enron, etc.

5
2003

• Turmoil continues
• Merchant model out of favor
• Integrated utilities faring better
• Investors favoring demonstrated earnings clarity
  and performance
• P/E ratio and B/S strength increasingly
  correlated

6
Merchant Generation Companies Take Beating
1.2
1.0
0.8
0.6
Stock Price Indexed
to 3/30/2001
0.4
0.2
0.0
Jul-02
Jul-01
Jan-02
Mar-02
Jan-03
Mar-03
Apr-01
May-01
Jun-01
Nov-01
Feb-02
Apr-02
May-02
Jun-02
Feb-03
Aug-01
Sep-01
Oct-01
Dec-01
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
Merchants
(index of closing stock prices on last trading
day of mo.)
7
DJ Utility Index Outperforms
1.2
1.0
0.8
0.6
Stock Price Indexed
to 3/30/2001
0.4
0.2
0.0
Jul-02
Jul-01
Jan-02
Mar-02
Apr-02
Jun-02
Jan-03
Mar-03
Apr-01
May-01
Jun-01
Nov-01
Feb-02
May-02
Feb-03
Aug-01
Sep-01
Oct-01
Dec-01
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
Dow Jones Utilities Index
Merchants
(index of closing stock prices on last trading
day of mo.)
8
Integrated Energy Firms Do Better
1.2
1.0
0.8
0.6
Stock Price Indexed
to 3/30/2001
0.4
0.2
0.0
Jul-02
Jul-01
Jan-02
Mar-02
Jan-03
Mar-03
Apr-01
May-01
Jun-01
Nov-01
Feb-02
Apr-02
May-02
Jun-02
Feb-03
Aug-01
Sep-01
Oct-01
Dec-01
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
Integrateds
Dow Jones Utilities Index
Merchants
(index of closing stock prices on last trading
day of mo.)
9
FPL Group - An Industry Leader
1.2
1.0
0.8
0.6
Stock Price Indexed
to 3/30/2001
0.4
0.2
0.0
Jul-02
Jul-01
Jan-02
Mar-02
Jan-03
Mar-03
Apr-01
May-01
Jun-01
Nov-01
Feb-02
Apr-02
May-02
Jun-02
Feb-03
Aug-01
Sep-01
Oct-01
Dec-01
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
Integrateds
FPL Group
Dow Jones Utilities Index
Merchants
(index of closing stock prices on last trading
day of mo.)
10
(No Transcript)
11
FPL Group

• Premier integrated utility (FPL)
• Successful wholesale generation business
  (FPL Energy)
• Strong balance sheet
• Substantial cash flow

12
Strong Financial Position

• Financial discipline
• Strong credit ratings
• A2 / A - FPL Gp Capital
• Aa3 / A Florida Power Light Company
• Prudent dividend policy

55
1
1 FPL Group Debt to Cap Ratio 49 with 80
equity credit for equity-linked securities
13
Vast Majority of Earnings Comes from Florida
Power Light
2003 Estimated Earnings Contribution
FPL Energy Corp. Other
Florida Power Light
14
FPL Service Territory
Jacksonville
St. Augustine
Daytona
Tampa
West Palm Beach
Ft. Lauderdale
Miami
15
Strong Customer Growth of customer
accounts(millions)
16
Favorable Customer Mix
3
3
3
32
38
32
Other
56
Industrial
33
Commercial
Residential
IndustryAverage
FPL
17
Successful Cost Management at FPLOperating
expenses ( per customer)
Good
Industry Average
FPL
18
High Performing Fossil Fleet Equivalent
Availability Factor ()
FPL
Good
Industry Average
19
FPL Outperforms U.S. Fossil Utilities Equivalent
Availability Factor () 2001
FPL 2002 94
FPL 95
Good

20
OSHA Incident Rate DownFPL Power Generation
Business Unit
Good
21
OSHA Rate Best Among Peers2001 EEI Safety Survey
Good
FPL 2002
FPL
22
Service Unavailability Just HalfIndustry
Average (minutes per customer)
23
FPL Residential Rates Low
Comparisons of a 1,000 kWh residential bill.
24
Substantial Regulated Generation Fleet
Energy Sources (by kWh produced)

• Nearly 21,000 MW of generating capability in
  Florida
• Diverse fuel mix

Nuclear
Purchased Power
Natural Gas
Oil
Coal
25
Constructive Regulatory Environment

• Vertically integrated model
• Rate of return regulation
• Fuel, capacity and certain environmental charges
  directly passed through to customers
• Progressive regulatory agreement
• accelerated depreciation program
• revenue sharing agreement

26
26
27
Disciplined Wholesale Power Generation Business

• Low risk approach
• Low cost provider
• Industry leader in wind
• Asset optimization function

• 7,2741 net MW in operation

Note 1 Includes 550 MW of leased capacity in RI
28
A Clean Energy Provider
29
Wind Energy Unique Advantage

• U.S. market leader (40 share)
• Supported by policy trends
• federal (production tax credits)
• state (renewable mandates)
• Attractive financial characteristics

30
FPL Group A Solid Investment

• Premier integrated utility serving a vibrant
  territory
• Growing wholesale generation business with lower
  risk profile
• Operational and environmental excellence
• Financial strength and discipline
• Proven track record

31
Florida Power Light Co.( millions)

• 2002
• Revenues 7,378
• Fuel and purchased power ( 3,306)
• Operating expenses ( 1,225)
• EBITDA 2,847
• Depreciation (831)
• Interest Other (874)
• Income Taxes (425)
• Net Income 717

32
A Valuation of Florida Power Light(in
millions, except multiple and per share valuation)

• EBITDA 2,847
• Industry Multiple 5
• Enterprise Value 14,235
• Less Debt and Preferred 3,312
• Value of Equity 10,923
• Valuation Per Share

60
33
(No Transcript)