Entergy 2012 Annual Report Download - page 5

SERVING OUR STAKEHOLDERS
Although many things changed in 2012, much remains the same. We remain focused on creating
sustainable value for our owners, customers, employees and communities. These four stakeholder groups
are inextricably linked, and to be successful, we must create value for all. Everything we do is done in
this context.
Our 2012 Financial Performance
As we review our 2012 financial performance and assess where we are today, we recognize we must do
more to deliver the value our shareholders expect and deserve. While we returned cash to shareholders
of nearly $590 million in dividends last year, total return was negative and once again fell far short of
our top-quartile objective. Our performance was influenced by many factors, including some outside our
control such as power prices in competitive wholesale markets. However, we don’t accept that as the
end of the story.
Our overarching financial objective of top-quartile total shareholder return has not changed. Our
stakeholders and our board of directors continue to expect this of us. While improvement in power prices
will help, we realize we must deal with the reality of today’s market. We believe that execution on our
strategies and initiatives will drive improved returns. At the same time, we must find ways to improve our
efficiency and productivity, as we continue to enhance customer reliability and workforce safety.
For creditors, in 2012, we maintained liquidity of approximately $4 billion and other solid credit metrics
that support access on reasonable terms to capital for future investment to better serve our customers
and communities. We recognize that investment-grade credit ratings are important in our current
structure and continue to seek options to enhance financial flexibility.
Our 2012 Operational Performance
In 2012, we achieved many operational highlights, but also fell short in critical areas. In our utility
business, we made significant investments in 2012 to better serve customers – closing the acquisitions of
two natural gas-fired plants and completing major construction projects at two nuclear plants. Through
the contributions of our employees, contractors and mutual assistance workers from other companies,
we achieved another record-setting storm restoration performance, safely restoring service to 92 percent
of customers within five days following Hurricane Isaac. We also provided more than 850 personnel to
assist in the Superstorm Sandy recovery effort.
Creating Value for Our Stakeholders
We exist to operate a world-class energy business that creates sustainable value for
our four stakeholders.
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For our owners, we create value by aspiring to provide top-quartile returns through the
relentless pursuit of opportunities to optimize our business.
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For our customers, we create value by constantly striving for reasonable costs and providing
safe, reliable products and services.
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For our employees, we provide a safe, rewarding, engaging, diverse and inclusive work
environment, fair compensation and benefits, and opportunities to advance their careers.
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For our communities, we create value through economic development, philanthropy,
volunteerism and advocacy, and by operating our business safely and in a socially and
environmentally responsible way.
Transitions | Entergy Corporation and Subsidiaries 2012
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