American Association of Blacks in Energy 33 rd Annual Conference

1. American Association of Blacks in Energy 33rd Annual Conference Leadership Development at Southern Company Marsha Sampson Johnson SVP Human Resources and Chief Diversity Officer May 20, 2010

2. Premier Energy Company Serving the Southeast Southern Nuclear Southern Power SouthernLINC Wireless

3. Attractive Investment • 4.4 million customers • #149 on Fortune 500 list • History of sustainable, predictable growth • Strong financial performance • #1 ranked, nine years in a row, electric service provider in customer satisfaction by ACSI

4. Strong Culture • 25,000 + employees strong • Long-tenured workforce • Cultural Tenets • Safety & Wellness • Southern Style • Inclusion • 2010 Diversity Inc. Top Company • Top 10 Employers for Blacks • One of 25 Noteworthy Companies • 2010 Top Military Friendly Companies (9th out of 100) Southern Style Competencies Business Results Leadership

5. Employees: 25,584 Management ≈ 3600 Professional ≈ 8800 Non-Exempt ≈ 5000 Craft Labor ≈ 8000 75% male / 25% female 77% non-minority / 23% minority Average Service: 18 years Average Age: 46 years Southern Style Competencies Business Results Leadership

6. Leadership Development – A Business Priority Drivers Industry Complexity • Environmental regulation • Infrastructure expansion • Cost pressure Changing Workforce • Retirements across all levels of leadership • Multiple generations working together • Female & minority representation Culture of Inclusion • Leveraging differences for innovation • Changing employee expectations • Increasing rate of change – need rapid response Recruitment & Retention of Talent • Tightening labor market • Realities of a mobile workforce • Today’s employees expect development

7. Leadership at All Levels

8. Development at All Levels Executives • Leadership training – usually university-based programs • System assignments • Coaching & mentoring • Senior Leadership Development Program (SLDP) • University-based leadership training • Cross-system moves, special assignments/projects • Coaching & mentoring Managers of Managers • Internal leadership training for new managers • Leadership development programs • Cross-system moves, special assignments/projects • Coaching & mentoring First-Level Managers • High potential identification • Talent reviews • Leadership development programs • Projects, assignments, job rotations • Internal & external training • Coaching & mentoring Emerging Talent All Employees • Internal & external training (online & classroom) • Tuition Reimbursement Program • Projects, assignments • Coaching & mentoring

9. Distinguished Performance • Technically competent • Embraces company values • Consistently achieves results over time H I G H P O T E N T I A L Strong Foundational Skills - Drive/ambition - Understands organization culture - Strong interpersonal skills - Adapts to change - Presence - Learns and applies new skills - Resilience Future Role Capability Demonstrates potential to move to the next leadership level and achieve expectations.

10. Leadership Competencies • Adapting & Responding to Change • Critical Thinking • Deciding & Initiating Action • Entrepreneurial & Commercial Thinking • Formulating Strategies & Concepts • Leading & Supervising • Persuading & Influencing • Planning & Organizing • Relating & Networking Cultural Competence Technical Competence Delivering Results

11. MANAGERIAL LEVEL: First-Level Manager EMPLOYEE: J.K. Sample • Blue range is Southern Company benchmark range for first-level manager • Black dots are J.K. Sample’s actual results

12. Career & Development Planning Partnership Company Needs Employee Aspirations Development • Identify what’s required • Assess current capabilities • Develop plan to close gaps & leverage strengths

13. Putting it All Together Southern Style Competencies Business Results Leadership