Moray DewhurstMoray DewhurstChief Financial OfficerChief Financial Officer

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 2001 SEC Form 10-K.

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Capitalizing on Our Strengths

Premier integrated utilityPremier integrated utility– high growth, stable customer base

Successful wholesale generation businessSuccessful wholesale generation business– well hedged portfolio with predictable earnings growth

Strong balance sheetStrong balance sheet– 51% Debt to Capital1, A2 / A credit rating2

Substantial cash flow to fund expansionSubstantial cash flow to fund expansion– $1.4 billion operating cash flow in 2001, net of $1.4 billion operating cash flow in 2001, net of

dividendsdividends High degree of earnings visibilityHigh degree of earnings visibility

Premier integrated utilityPremier integrated utility– high growth, stable customer base

Successful wholesale generation businessSuccessful wholesale generation business– well hedged portfolio with predictable earnings growth

Strong balance sheetStrong balance sheet– 51% Debt to Capital1, A2 / A credit rating2

Substantial cash flow to fund expansionSubstantial cash flow to fund expansion– $1.4 billion operating cash flow in 2001, net of $1.4 billion operating cash flow in 2001, net of

dividendsdividends High degree of earnings visibilityHigh degree of earnings visibility1 Pro forma for offerings

2 Corporate credit rating

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

Premier Electric Utility

Attractive financial returnsAttractive financial returns

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High Growth Utility With Favorable Customer Mix

Strong demand growth Strong demand growth 11

– 2.1% annual increase in customer accounts

– 1.1% annual increase in usage per customer

GenerationGeneration

– 16,619 MW

– 2,700 MW added in 2001-2003

– 1,900 MW more by 2006

Residential

Commercial

Industrial

Other

FPL IndustryAverage

56%56%

37%37%

3%3%

4%4%

33%33%

32%32%

32%32%

3%3%

1 Over last 10 years

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Operational Excellence

Superior Cost ManagementSuperior Cost Management(O&M $ per customer)(O&M $ per customer)

Plant AvailabilityPlant Availability

527

481

407

275

250

300

350

400

450

500

550

600

91 92 93 94 95 96 97 98 99 00

Industry Average

FPL

FPL = 36% better

than average

IndustryAverage

FPL

95%87%

93% 90%

FPL(Fossil)

IndustryAvg.

(Fossil)

FPL(Nuclear)

IndustryAvg.

(Nuclear)

1.091.091.17

1.221.271.301.33

1.49

1.611.65

1.791.82

90 91 92 93 94 95 96 97 98 99 00 01

Down 40%since 1990

Over a Decade of O&M ReductionsOver a Decade of O&M Reductions(Cents per Kilowatt Hour)(Cents per Kilowatt Hour)

Service Reliability Service Reliability 2001 Outage Time Per Customer (Min.)2001 Outage Time Per Customer (Min.)

69

107

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FPL Rates Lower Than National, Florida Averages

Comparisons of a 1,000 kWh residential bill

$81.93

NationalAverage

$76.22$86.45

FPL FPC andTECO

Average

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Constructive Regulatory Environment

Vertically integrated utility modelVertically integrated utility model Fuel, capacity charges directly passed through to Fuel, capacity charges directly passed through to

customerscustomers ““Rate certainty” through end of 2005Rate certainty” through end of 2005

– incentive-based agreement– “win-win” revenue sharing provision– no ROE limits– shareholders benefit from productivity improvements

No current activity on wholesale restructuringNo current activity on wholesale restructuring“I just don’t think there’s a sense of urgency to this.”

- Governor Jeb Bush

Vertically integrated utility modelVertically integrated utility model Fuel, capacity charges directly passed through to Fuel, capacity charges directly passed through to

customerscustomers ““Rate certainty” through end of 2005Rate certainty” through end of 2005

– incentive-based agreement– “win-win” revenue sharing provision– no ROE limits– shareholders benefit from productivity improvements

No current activity on wholesale restructuringNo current activity on wholesale restructuring“I just don’t think there’s a sense of urgency to this.”

- Governor Jeb Bush

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Major U.S.Wholesale Generator

Attractive, visible growthAttractive, visible growth– average earnings growth >20% from

identified projects through 2005 Low-risk approachLow-risk approach

– diversified by region, fuel source– well-hedged portfolio– emphasis on base-load assets

Low cost providerLow cost provider– modern, efficient, clean plants– operational excellence

Conservative, integrated asset Conservative, integrated asset optimization functionoptimization function

• 5,063 MW in operation

• presence in 18 states

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NortheastNortheast

Mid-AtlanticMid-Atlantic21%21%

26%26%

16%16%

37%37%

WestWest

Regional DiversityRegional Diversity Fuel Diversity

GasGas59%59%

21%21%WindWind

OtherOther2%2%

HydroHydro3%3% 7%7%

OilOil

Diversified Portfolio

11,588 Net MW in Operation11,588 Net MW in OperationYear-end 2004Year-end 2004

CentralCentral

NuclearNuclear9%9%

Assumes addition of 1,000 mw of wind. Percentages may not add to 100% due to rounding.

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Disciplined Growth Strategy

Grow generation portfolio in prudent wayGrow generation portfolio in prudent way– aggressive wind development – focused fossil development– pursuit of M&A opportunities

Optimize asset valueOptimize asset value – integrated operations, business management and

marketing and trading capabilities Hedge position via substantial contract coverageHedge position via substantial contract coverage Moderate risk by regional and fuel diversity Moderate risk by regional and fuel diversity Manage portfolio activelyManage portfolio actively

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-

2,000

4,000

6,000

8,000

10,000

12,000

98 99 00 01 0297 03

5,063 MW

+11,500 MW

04

Existing Plants 2001

New WindBlytheRISEPBayswaterBastrop

Marcus Hook

New WindCalhounForneySeabrook

Disciplined Growth(Projected Operating Net-MW)

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Seabrook Acquisition

A premier nuclear plantA premier nuclear plant Attractive priceAttractive price Plays to our strengthsPlays to our strengths

– superior operating skills– northeast trading expertise

Immediately accretiveImmediately accretive– 1 - 4 cents in 2003– 10 - 12 cents avg. ‘03 - ‘06– accelerating thereafter

Attractive financial returnsAttractive financial returns– strong cash flow– substantial NPV– 18% - 20% ROE

Based on current forward price curves

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Wind Energy: Unique Advantage

Nearly 1,500 net MW in operationNearly 1,500 net MW in operation

– U.S. market leader with 1/3 market share Supported by policy trends (RPS, PTCs) and Supported by policy trends (RPS, PTCs) and

economicseconomics Attractive financial characteristicsAttractive financial characteristics

– long-term power contracts (15 – 25 years)

– ROEs in the high teens/low 20s

– accretive in first full year Additional 1,000 – 2,000 MW by 2002 - 2003Additional 1,000 – 2,000 MW by 2002 - 2003

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Conservative Risk Management

Marketing & Trading

Risk ReductionAsset

Optimization

Risk ControlRisk ControlRisk ControlRisk Control

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Well-Hedged Position

2002 = 79% 1

2003 = 51%

1 For the remaining months in 2002

0%

20%

40%

60%

80%

100%

Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06

Delivery Period

Committed MW

Merchant MW

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ERCOT Spot Spark Spreads on Peak

($ per MWh)

Current Forward Contract % under

Spark Spread Spark Spread Contract

2002 $9.33 $14.83 81%

2003 $6.38 $15.83 50%

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Enhancing Profitability in ERCOT

0

2

4

6

8

10

12

14

16

18

20

CurrentForward Spark

Spread

North/SouthSpread

Firm vs Non-Firm Contracts

Water Cooled AdditionalTrading

Opportunities

PotentialRealized Spark

Spreads

($)

6.00 - 7.00

8.00 - 9.00

0.50 - 1.50 0.2515.75 - 18.751.00+

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Financial disciplineFinancial discipline Strong credit ratingsStrong credit ratings

A2 / A = FPL Group Capital

Aa3 / A = Florida Power & Light Company

13.5% ROE in 200113.5% ROE in 2001 2001 net income of nearly 2001 net income of nearly

$800 million $800 million 11

Prudent dividend policyPrudent dividend policy

Strong Financial Position

Debt to Cap Ratio

51

62

25

50

75

FPL Group IndustryAverage

(%)

1 Excluding non-recurring items

2 Pro forma for recent offerings

2

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3.573.85

3.98

4.38

4.69

2.00

2.50

3.00

3.50

4.00

4.50

5.00

1997 1998 1999 2000 2001

($)

7.1% average annual EPS

growth rate

Excluding non-recurring items and effects of FAS 133

Financial StrengthEPS Growth

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Capital Plan Supports Disciplined Growth Strategy

Projected Capital Sources & Uses 2002 - 2005($ billion)

Operating cash flow less dividends

Current and completed equity/equity-linked issuance, benefit plans

Future debt issuance

Regulated utility

FPL Energy

Seabrook

8.0 – 10.0 8.0 – 10.0

0.5 – 1.5

1.5 - 2.0

6.0 - 6.54.6 - 5.6

0.8

1.6

Sources Uses

1.0 – 2.0Wind

Gas

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Strong Rating Valuable, but not a Fixed Target

Long-term goal: ‘A’ Long-term goal: ‘A’ or equivalent…or equivalent…

……subject to subject to fluctuating agency fluctuating agency standardsstandards

CreditCreditRatingRating

InvestmentInvestmentGradeGrade

Absolute goal - strong investment gradeAbsolute goal - strong investment grade

Relative goal - upper band of peer groupRelative goal - upper band of peer group

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Financial Outlook

Underlying average EPS growth of 6-8% per yearUnderlying average EPS growth of 6-8% per year– FPL earnings growth 4-5% average– FPL Energy earnings growth 20-30% average

2002 EPS guidance: $4.70 - $4.752002 EPS guidance: $4.70 - $4.75– FPL approximately flat, assuming normal weather– FPL Energy up 15-20%, assuming no major change to

market prices 2003 EPS guidance: $5.10 - $5.202003 EPS guidance: $5.10 - $5.20

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Relative Low Risk, High Return

FPL Group represents one of best FPL Group represents one of best combinations of risk, return and earningscombinations of risk, return and earnings growth among major electric companiesgrowth among major electric companies

Risk

FPL Group

Earnings Growth/Return

Low

High

High

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