Lew Hay

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Lew Hay

• Chairman
  Chief Executive Officer

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Safe Harbor Statement Any statements made
herein about future operating results or other
future events are forward-looking statements
under the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995. Actual
results may differ substantially from such
forward-looking statements. A discussion of
factors that could cause actual results or events
to vary is contained in FPL Group's 2000 SEC Form
10-K/A.
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FPLEnergy
FPL
FPLFiberNet
FPLGROUP
Financial Discipline
Operational Excellence
Financial Strength
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FPLEnergy
FPL
FPLFiberNet
105 m 27
695 m 8
15 m 80
Net Income EPS growth
FPLGROUP
Financial Discipline
Operational Excellence
Financial Strength
Net Income and EPS figures are based on
2001, excluding non-recurring items and the
effects of FAS 133
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FPLEnergy
FPL
FPLFiberNet
FPLGROUP
Financial Discipline
Operational Excellence
Financial Strength
6

• A solid, integrated electric company
• Attractive growth opportunities in all three
  businesses

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Financial Strength

• Strong Balance Sheet
• Strong credit ratings
• A2 / A- FPL Group Capital
• Aa3 / A Florida Power Light Company
• Strong cash flow
• 1.4 billion 2001 operating cash flow

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Financial Strength
Consistent, Strong Earnings Per Share Growth
7.1 average annual EPS growth rate
Excluding nonrecurring items and effects of FAS
133.
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Financial StrengthHigh Earnings Quality

• Regular depreciation 20 higher than average
• More than 1 billion of special depreciation
  since 1995
• reduced asset net book values Fossil 140 /
  kw Nuclear 357 / kw
• reduced potential stranded costs

Book values as of 11/30/01
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Financial DisciplinePrudent Dividend Policy

• Healthy 4.4 yield
• 48 payout ratio allows for growth

Earnings per share Dividends per share
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Financial Discipline
Recent Popular Industry Trends

• South America
• Europe
• Asia (especially the -stans)
• Trading for tradings sake
• Over leveraging the balance sheet
• Paying large premiums for older, inefficient
  plants

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Financial DisciplineWell-Hedged Position

• Capacity contracted
• FPL 100
• FPL Energy 50 - 83
• Total FPL Group 94 - 98
• (weighted average)

Florida Power Light
FPL Energy
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Operational Excellence

• Tradition of quality and continuous improvement
• Proven ability to transfer best practices

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Premier Electric Utility

• Favorable customer mix
• Strong customer growth
• Operational excellence
• Proven cost management
• Constructive regulatory environment

• Attractive financial returns

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Attractive Customer Demographics
Customer Mix

• Consistently strong customer and usage growth
  
• 2.1 5-year average annual growth
• 1.1 5-year growth in usage per customer
• High percentage of residential small commercial
  customers
• 3.9 million customer accounts

4 3
Other
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32 32 33
37 56
Industrial
Commercial
Residential
Industry Average
Florida Power Light
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Operational ExcellenceFossil Plant Availability
Industry Average
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2001 WANO Performance Indicator Index(Ranking
of Sites with 2 or More Units)
Turkey Point 34
St. Lucie 12
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Operational Excellence Service
Reliability(year 2001 total outage time per
customer minutes)
FPL 36 better than average
107
69
Industry Average
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Operational Excellencein Cost Management(O M
per customer)
Industry Average
FPL 48 better than average
FPL
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Constructive Regulatory Environment

• Industry restructuring unlikely near term
• Governor confirms no capacity crisis in Florida
• FPSC members appointed by Governor
• History of constructive regulatory relationship
• Track record of reaching incentive-based,
  win-win" agreements
• FPSC encouraging settlement during current rate
  review prefers incentive-based approach

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Rate Proceeding Timeline2001-2002
Rate Case Decision
MFR Filings Completed
Hearings
Discovery
Oct
Nov
Jun
May
Apr
Feb
Mar
Jan
Dec
Jul
Sep
Aug
Service Hearings
RatesFinalized
Staff Recommendation
Settlement Alternative
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Positioned for Success in Wholesale Generation

• Strong and diversified U.S. portfolio
• Building critical mass in key regions
• Primarily low-cost, base-load generation
• U.S. leader in wind energy
• Leverages operational excellence of Florida Power
  Light
• Tightly integrated Business Management and Asset
  Optimization functions
• Disciplined growth plan
• Strong financial position

Target 20 - 30 average annual earnings growth
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Track Record of Consistent, Strong Earnings Growth
Net Income 69 average annual growth rate
Excluding nonrecurring items and effects of
FAS 133.
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Disciplined Growthat FPL Energy(projected
operating net-MWs)
Marcus Hook IDC Bellingham
Calhoun Forney
RISE Bastrop Blythe Bayswater
Doswell Woodward Mountain Stateline Montfort King
Mountain Gray County
Existing Projects 2000
98
99
00
01
02
97
03
04
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Diversification Stability
(5,063 net MW in operation -- 12/31/01)
MW by Region
MW by Fuel Type
Mid-Atlantic
Gas
20
46
Northeast
28
Wind
28
Central
36
Other
Hydro
4
West
Oil
7
16
15
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Operational Excellenceat FPL Energy

• Core operational capabilities shared with Florida
  Power Light
• Power Generation
• Construction Services
• Transmission Planning
• Environmental Services
• Proven ability to improve performance of acquired
  assets
• Transfer of Best Practices
• Strong quality orientation

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Wind Energy Capitalizing on our Strength

• Nearly 1,500 net megawatts in operation
• Wind is profitable
• We have a leading position
• We can build projects faster and cheaper
• We can operate with higher availability
• Expect continued growth of 500 - 1,000 MW per
  year pending PTC approval

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Focused on Asset Optimization

• Consistently grown our capability over past five
  years
• Asset-based strategy
• Reduces risk
• Enhances returns
• Enhances EBIT by 10

Asset Optimization Employee Headcount
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Well-hedged Position
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ERCOT Expected Prices(North)
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ERCOT Spark Spreads(/kwh)

• Current Forward Contract under
• Spark Spread Spark Spread Contract
• 2002 4.91 13.89 74
• 2003 4.81 13.58 30

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Enhancing Profitability in ERCOT
11.65-15.00
1.00
0.50-1.50
0.25
7.00-8.00
2.90-4.20
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FPL FiberNet Enhances Earnings Growth
Provides metro and backbone fiber-optic network
capacity throughout Florida

• Profitable earnings enhancer
• Experienced provider with first-to-market
  advantage
• Majority of capital costs recovered through PV of
  existing contracts
• Limited capex going forward
• 90 capacity of existing network available

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Disciplined Growth
FPL Group MW in Operation

• Solid growth plans
• FPL customer and usage growth strong
• FPL Energy targets 20 - 30 average annual growth
  (subject to PTC renewal)
• Additional earnings growth potential at FPL
  FiberNet
• FPL Group targets 7 average annual growth off
  2002 base.

29,224
FPLEnergy
21,682
FPL
2001
2004
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• A solid, integrated electric company
• Attractive growth opportunities in all three
  businesses