2018 Guide to Effective Proxies

2.17.3 Business strategy | 291 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES EXECUTIVE OFFICER COMPENSATION CD&A Highlights 2017: Focused Execution on Our Strategy In 2017, we continued to deliver on our commitment to grow our core utility business, while managing risk through the orderly wind-down of our merchant power business and planning for the utility of the future. 2017 Earnings In 2017, Entergy’s continued commitment to grow the core utility business while managing merchant generation risk led to growth in operational earnings and core utility earnings . The Company reported 2017 earnings of $2.28 per share on an as-reported basis, while its operational earnings were $7.20 per share, compared to an as-reported loss of $(3.26) per share and operational earnings of $7.11 per share in 2016. * The as-reported results for the year reflected the revaluation of net deferred tax assets as a result of tax reform, and asset impairments and other expenses relating to strategic decisions relating to EWC. Our operational earnings exceeded the $7.10 midpoint of the guidance range we set in the second quarter of 2017, which increased from the original guidance range set in the beginning of the year due to a tax benefit recorded in the second quarter. On an adjusted basis, normalizing for weather and income taxes, our Utility, Parent & Other earnings – representing earnings from our core business – contributed $4.57 to 2017 consolidated earnings per share, compared to $4.38 in 2016. * Also in 2017, our Board approved an increase in the dividend for the third consecutive year. These results reflect steady progress executing on our strategy to grow the utility while mitigating the risk from EWC. Growing the Utility: Portfolio Transformation and Integrated Energy Network We continue to transform our generation portfolio with investments in cleaner, more efficient generation to improve the reliability of our system, increase environmental efficiency and reduce costs for customers. Regulatory . We completed three annual formula rate plans in Arkansas, Louisiana and Mississippi, and we implemented two cost recovery factor increases in Texas. Notably, the Arkansas Public Service Commission’s approval of Entergy Arkansas’ 2017 Formula Rate Plan filing included a unanimous settlement agreement supporting recovery of all of its 2017 and 2018 nuclear investments. Nuclear generation is an important source of clean, reliable baseload power. Prudently investing to preserve these valuable resources for our stakeholders is an important part of our strategy to deliver sustainable value to all our stakeholders. Generation . We received regulatory approvals to build two new highly efficient gas-fired generation resources – the 994 MW Lake Charles Power Station in Louisiana and the 993 MW Montgomery County Power Station in Texas. Along with the 980 MW St. Charles Power Station that we began constructing in Louisiana, these projects are an important part of our plan to modernize the electric grid and improve reliability. These highly efficient combined cycle power stations will (1) produce fewer carbon emissions than the legacy units they replace, (2) improve our average fleet efficiency, and (3) use less water. Transmission . We invested approximately $1 billion in transmission projects. We also made significant progress on the Lake Charles transmission project, our largest transmission endeavor to date, which includes 30 miles of extra high voltage transmission line and addresses reliability needs driven in part by load growth in Southwest Louisiana. The Midcontinent Independent System Operator (MISO) approved 70 projects in our service area totaling approximately $1 billion dollars. * See Appendix A for the reconciliation of non-GAAP financial measures to GAAP results. 42 Š 2018 Proxy Statement Total of 03 pages in section ENTERGY CORPORATION