welcome shareholders

WELCOME SHAREHOLDERS

Lew Hay Chairman and CEO

FPL Group, Inc.

A Tough Year for Energy Companies(total shareholder return)

(15)%

(68)%

S&P 500 Electric Utilities Index

S&P 500 Multi-Utilities Index

$100

12/31/01 3/31/02 6/30/02 9/30/02 12/31/02

Total Shareholder Return(12/31/01 – 12/31/02)

-22%

-15%

11%

FPL Group

S&P 500 Electric

Utilities Index S&P 500 Index

2002 – Another Great Year

• Exceeded financial plan• Improved service levels• Continued world-class

plant performance

2002 Major Accomplishments: Florida Power & Light

• Contributed significantly to FPL Group earnings

• Continued strong growth in customers and usage

• Lowered rates• Expanded generating

capability • Enhanced reliability,

customer responsiveness

2002 Major Accomplishments:FPL Energy

• Continued disciplined portfolio growth

• Extended leadership position in wind

• Restructured business

to better position for the future

2002 Major Accomplishments:FPL FiberNet

• Performed better than peers amidst very difficult marketconditions

3 Major Attributes

FinancialDiscipline

OperationalExcellence

FPLGROUP

FinancialStrength

Utilizing Quality Tools and Techniques

• Ingrained in culture• Renewing focus• Part of continuous

improvement efforts

Paul EvansonPresident

Florida Power & Light Company

Attractive financial returnsAttractive financial returnsAttractive financial returnsAttractive financial returns

Premier Electric Utility

• Strong customer growth• Operational excellence • Proven cost management • Constructive regulatory

environment

36%

55%

6%3%

Customer Mix % by revenues

Large and Growing Customer Base

• 2.4% increase in customer accounts

• 3.5% increase inusage per customer

• 10-year annual averages

– 2% increase in customer accounts– 1.6% increase in

electrical usage

• Favorable customer mix

Residential

Commercial

IndustrialOther

Accommodating Growth

• 28% increase in generation over next 10 years

• Sanford repoweringand Fort Myers peaking unitsthis year

• Martin and Manatee units in 2005

Expanding Infrastructure

• Additional delivery systems needed to support continued growth

• Urban areas pose biggest challenge

• Working closely with customersto help ensure minimal impact

Operational Excellence

97

67

93 92

90 00 01 02

95 95 9482

90 00 01 02

Nuclear Availability %Fossil Availability %

Important Nuclear Milestones

• Turkey Point units approved to operate additional 20 years

• St. Lucie extensioncurrently under review by NRC

• Nuclear provides nearly one-fourth of FPL generation

Turkey Point Plant

Operational ExcellenceService Unavailability(average annual minutes per customer)

69

139139

104

97 98 99 00 01 02

FPL

Industry

industry source EEI

Good

3.63

2.36

0.71.1

1.591.63

0.49

3.12

1.96 1.98

93 94 95 96 97 98 99 00 01 02

OSHA Incident Rate DownFPL Power Generation Business Unit(serious injuries per 200,000 hrs. worked)

Good

Superior Cost Management Operating expenses ($ per customer)

$513 $517

$373

$305

93 94 95 96 97 98 99 00 01 02

Industry Average

FPL

Good

FPL Residential Rates Low

Comparisons of a 1,000 kWh residential bill as of 3/4/03Rates for FPL, PEF and TECO are effective 4/1/03.

$81.60 $88.66 $88.93$106.55 $112.00

$177.99

$133.69

FPL NationalAverage

Florida IOUsAverage

MA NJ CA NYC

Constructive Regulatory Environment

• Classic regulated structure• Incentive-based agreements• Shareholders and customers benefit• Florida a model for other states

Attractive financial returnsAttractive financial returnsAttractive financial returnsAttractive financial returns

Premier Electric Utility

• Strong customer growth• Operational excellence • Proven cost management • Constructive regulatory

environment

Liberty CityTornado

29

Jim Robo President

FPL Energy

FPL Energy:A Disciplined Wholesale Generator

• Low-risk approach• Low-cost provider• World leader in wind

generation• Strong asset

optimization capability

• 7,2741 net MW in operation

• presence in 23 statesNote:

1 Includes 550 MW of leased capacity at R.I.S.E.P.

NortheastNortheast

Mid-AtlanticMid-Atlantic24%24%

26%26%

14%14%

36%36%

WestWest

Regional DiversityRegional Diversity Fuel DiversityFuel DiversityGasGas60%60%

20%20%WindWind

OtheOtherr1%1%HydrHydroo3%3% 7%7%

OilOil

Diversified Portfolio at FPL EnergyProjectedProjected 2004 2004

(11,525(11,52511 net mw in net mw in operation)operation)

CentralCentral

NucleNuclearar9%9%

Note:1 Includes 550 mw of leased capacity at R.I.S.E.P.

Wind Energy: A Unique Advantage

• About 40% U.S. share• Majority of industry’s

annual growth achieved by FPL Energy

• More than 1,700 net mw in operation today– expect 700-1000 mw

more by end of 2003

Why Wind?

• Strong construction, operational expertise

• Supported by federal and state policy trends

• Attractive financial characteristics– long-term power contracts

(15 – 25 years)– attractive returns– immediate contributor to earnings

• Disciplined development opportunities underway

More than 90 percent of expected 2003 gross margin hedged

Significant Contract Coverage

Notes:1 Weighted to reflect in-service dates, planned maintenance, and refueling outage for Seabrook2 Reflects RTC MW hedged3 Reflects on-peak MW hedgedAs of 3/31/03

Balance of 2003

Asset Class Available

MW 1 % MW Hedged 1

Wind 2 1,981

100 Other projects / QFs 2 1,255 98

Merchants Seabrook 2 932 92 NEPOOL / PJM / NYPP 3 1,556 50 ERCOT 3 2,657 72 WECC / SERC 3 1,093 39

Total portfolio 3 9,474

76

FPL Energy Business Strategy

• Remain a low-cost provider• Selective development, primarily wind• Maintain diversified portfolio• Contract majority of output and hedge fuel

requirements• Further optimize portfolio• Consider acquisitions that are accretive,

strategically attractive and financeable

Moray DewhurstChief Financial Officer

FPL Group, Inc.

2002 Earnings Guidance(presented at 2002 annual meeting)

• FPL approximately flat with 2001– assuming normal weather

• FPL Energy up 15% - 20%– reflects modest capacity growth and delay

in production tax credits– reflects poor hydro conditions in 1st quarter– assumes no major changes in market

prices• Group EPS $4.78 - $4.82

FPL Group 2002 Results

$2.73

$4.80

GAAP Adjusted

$473

$831

GAAP Adjusted

Net Income(millions)

EPS

Includes the cumulative effect of an accounting change at FPL Energy ($222 million after-tax or $1.28 per share), restructuring and other charges at FPL Energy ($73 million after-tax or $0.42 per share), restructuring and impairment charges at Corporate and Other ($64 million after-tax or $0.37 per share), a reserve for leverage leases at Corporate and Other ($30 million after-tax or $0.17 per share), a favorable settlement of litigation with the IRS at Corporate and Other ($30 million after-tax or $0.17 per share) and net unrealized mark-to-market gains associated with non-managed hedges at FPL Energy ($1 million after-tax).

FPL Group 2002 Results: Reconciliation to GAAP

Net income per GAAP

Adjustments:• Adoption of FAS 142 (accounting

change)• One-time tax benefit• Restructuring and related

charges• Non-managed hedges

Adjusted results*

In millions

$ 2.73

$ 1.28 $(0.17) $ 0.96 -

$ 4.80

$ 473

$ 222$ (30)$ 167 $ (1)

$ 831

* Management views adjusted results as an important indicator of current period operational and economic performance.

Per share

Florida Power & Light Results(net income in millions)

$717$679

$695$717

GAAP Adjusted

01 02 01 02

Notes: 1 Includes merger-related expenses ($16 million after tax)

1

FPL Energy Results (net income in millions)

$113

($169)

$126$105

GAAP Adjusted

01 02

01 02

Notes: 1 Includes net unrealized mark-to-market gains associated with non-managed hedges ($8 million after tax)

2 Includes the cumulative effect of an accounting change ($222 million after tax), restructuring and other charges ($73 million after tax), and net unrealized mark-to-market gains associated with non-managed hedges ($1 million after tax)

1

2

Financial Strength

• Strong credit ratings re-affirmed in 2002– Florida Power & Light Aa3 / A– FPL Group Capital A2 / A-

• $2.3 billion operating cash flow -- $1.9 billion net of dividends

• Issued $1.4 billion equity and equity-linked securities

• Credit statistics and ratings well above industry averages

Financial DisciplinePrudent Dividend Policy

• Healthy 3.9% yield

• Approximately 50% payout ratio expected in 2003

• 4% average growth(1995-2002)

$1.76

$2.32

95 96 97 98 99 00 01 02

Dividends per share

Conservative Risk Management ProfileWell Hedged Position

85%

15%

85%

15%

FloridFlorida a Power Power

& & LightLight

FPLFPL EnergyEnergy

Corporate & Corporate & OtherOther

Earnings Earnings Contribution %Contribution %

2003 estimated2003 estimated11 • Fuel clause mitigates commodity price fluctuations

• Geographic diversity• Fuel/technology

diversity• Well-hedged portfolio

1 Excludes mark-to-market effect of non-managed hedges, which cannot be determined at this time

Outlook for 2003 Remains Strong• FPL

– expect $725 - $735 million net income in 2003 assuming normal weather

• FPL Energy– expect 2003 earnings of $165 - $190 million1

• Corporate and Other– breakeven results at FPL FiberNet– higher interest expense– net drag of 20 - 30 cents per share

Expect EPS of $4.80 to $5.001

1 Excluding the effect of non-managed hedges which cannot be determined at this time.

0302

$0.99

EPS

2003 results include a net unrealized mark-to-market gain of $3 million after-tax or $0.02 per share associated with non-managed hedges, primarily at FPL Energy. 2002 results include an impairment loss of $222 million after-tax or $1.31 per share at FPL Energy, a net unrealized mark-to-market gain of $1 million after-tax associated with non-managed hedges at FPL Energy and a favorable IRS settlement of $30 million or $0.18 per share at Corporate and Other.

$(0.33)

$175

$(56)

GAAP Adjusted

0302

$0.80$135

0302 0302

Net Income(millions)

EPSNet Income(millions)

First Quarter Strong Performance

$0.97$172

FPL Group: A Solid Investment

• Built on solid fundamentals• Proven track record• Attractive, realistic

growth prospects• Relatively low-risk profile• Ongoing commitment to

excellent corporate governance

Toward Another Great Year in 2003

• Committed to financial strength and discipline, operational excellence

• Steady growth and strong operating performance at FPL

• Continued disciplined growth at FPL Energy

Superior Environmental Management