Slide 1: 4th Quarter Earnings Call
© PPL Corporation 2014 4 th Quarter Earnings Call PPL Corporation February 6, 2014 Exhibit 99.2
Slide 2: Cautionary Statements and Factors That May Affect Future Results
© PPL Corporation 2014 2 Cautionary Statements and Factors That May Affect Future Results Any statements made in this presentation 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
Slide 3: Agenda
© PPL Corporation 2014 3 2013 Earnings Results, Operational Overview and 2014 Earnings Forecast Segment Results and Financial Overview Q&A W. H. Spence P. A. Farr Agenda
Slide 4: Earnings Results
© PPL Corporation 2014 4 Earnings Results
Slide 5: 2014 Earnings Forecast
© PPL Corporation 2014 5 Segment 2013A (Ongoing) 2014E Midpoint Kentucky Regulated $0.48 $0.43 U.K. Regulated 1.32 1.32 PA Regulated 0.31 0.38 Supply 0.39 0.07 Corporate and Other (0.05) (0.05) Total $2.45 $2.15 $2.25 $2.05 Note: See Appendix for the reconciliation of earnings from ongoing operation
Slide 6: 2013 Regulated Operational Overview
© PPL Corporation 2014 6 • Improved ROEs at regulated operations • Implemented DSIC mechanism for PPL Electric Utilities • All four WPD companies selected for Fast-Track consideration • Executing on construction programs 2013 Regulated Operational Overview
Slide 7: Regulated Volume Variances
© PPL Corporation 2014 7 Note: Total includes Residential, Commercial and Industrial customer classes as well as “Other”, which is not depicted on the charts above. Regulated Volume Variances
Slide 8: 2013 Supply Operational Overview
© PPL Corporation 2014 8 • Agreement to sell Montana hydro assets – Subject to regulatory approvals – Sale is not expected to close before the second half of 2014 • Improved Susquehanna operations – Continue to work with vendor to resolve turbine blade cracking issues • Contained O&M and capital cos
Slide 9: 2014 Objectives/Highlights
© PPL Corporation 2014 9 • Northeast Pocono Reliability Project approved by PA PUC in January • WPD business plan approval (Fast-Track) expected end of February • LG&E and KU rate cases • Further investment opportunities at regulated operations • Continue to manage Supply challenges 2014 Objectives/
Slide 10: Ongoing Earnings Overview
© PPL Corporation 2014 10 Q4 2013 Q4 2012 Change Kentucky Regulated $0.12 $0.08 $0.04 U.K. Regulated 0.30 0.29 0.01 Pennsylvania Regulated 0.07 0.05 0.02 Supply 0.13 0.07 0.06 Corporate and Other (0.02) (0.02) Total $0.60 $0.49 $0.11 Ongoing Earnings Overview Note: See Appendix for the reconciliatio
Slide 11: Kentucky Regulated Segment Earnings Drivers
© PPL Corporation 2014 11 Year-to-Date 2012 EPS - Ongoing Earnings $0.33 Gross margins 0.23 Depreciation (0.04) Dilution (0.04) Total 0.15 2013 EPS - Ongoing Earnings $0.48 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations to re
Slide 12: U.K. Regulated Segment Earnings Drivers
© PPL Corporation 2014 12 Year-to-Date 2012 EPS - Ongoing Earnings $1.19 Utility revenue 0.31 O&M (0.05) Depreciation (0.03) Income taxes and other 0.04 Dilution (0.14) Total 0.13 2013 EPS - Ongoing Earnings $1.32 U.K. Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of e
Slide 13: Pennsylvania Regulated Segment Earnings Drivers
© PPL Corporation 2014 13 Year-to-Date 2012 EPS - Ongoing Earnings $0.22 Gross delivery margins 0.12 O&M 0.02 Depreciation (0.02) Income taxes and other 0.01 Dilution (0.04) Total 0.09 2013 EPS - Ongoing Earnings $0.31 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconc
Slide 14: Supply Segment Earnings Drivers
© PPL Corporation 2014 14 Year-to-Date 2012 EPS - Ongoing Earnings $0.68 East energy margins (0.11) West energy margins (0.09) O&M 0.04 Depreciation (0.03) Income taxes and other (0.05) Dilution (0.05) Total (0.29) 2013 EPS - Ongoing Earnings $0.39 Supply Segment Earnings Drivers Note: See Appendix
Slide 15: 2013A to 2014E Earnings Walk
© PPL Corporation 2014 15 2013A to 2014E Earnings Walk Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. (1) Earnings from ongoing operations. (1) Revenue: $0.07 O&M: $0.05 Depr.: ($0.05) Financing: ($0.04) Taxes: ($0.05) Other: $0.02 Margins: $0.09
Slide 16: Free Cash Flow before Dividends
© PPL Corporation 2014 16 Free Cash Flow before Dividends $2,000 Free Cash Flow before Dividends (Millions of Dollars) Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions of dollars) ($1,000) ($500) $0 $500 $1,000 $1,500 ($412) $144 Cash from Operations Increase ( Dec
Slide 17: Operating Segment Capital Expenditures
© PPL Corporation 2014 17 ($ in billions) Note: Corporate and Other capital expenditures average approximately $60 million per year. (1) Figures based on assumed exchange rate of $1.58 / GBP. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience an
Slide 18: Projected Regulated Rate Base Growth
© PPL Corporation 2014 18 ($ in billions) (1) Represents capitalization for LKE, as LG&E and KU rate constructs are based on capitalization. Represents Regulatory Asset Value (RAV) for WPD. (2) Figures based on assumed exchange rate of $1.58 / GBP and the RIIO-ED1 business plan as filed on July 1, 2
Slide 19: Dividend Profile
© PPL Corporation 2014 19 A predominantly rate-regulated business mix provides strong support for current dividend and a platform for future growth (1) Based on mid-point of forecast. Annualized dividend based on 2/6/2014 announced increase. Actual dividends to be determined by Board of Directors. (
Slide 20: Appendix
© PPL Corporation 2014 20 Appendix
Slide 21: U.K. Electricity Distribution Price Control Review Schedule
© PPL Corporation 2014 21 RIIO-ED1 Timetable Provisional Timing Milestone September 2012 Publication of Strategy Consultation March 2013 Strategy decision published July 2013 DNOs submit and publish business plans November 2013 Initial assessment and fast-track Draft Determination published February
Slide 22: Enhancing Value Through Active Hedging
© PPL Corporation 2014 22 Enhancing Value Through Active Hedging Capacity revenues are expected to be $560 and $505 million for 2014 and 2015 respectively. Note: As of December 31, 2013 Includes PPL Montana's hydroelectric facilities through the 3 rd quarter of 2014. On September 26, 2013, PPL Monta
Slide 23: Competitive Generation Overview
© PPL Corporation 2014 23 Competitive Generation Overview Note: As of December 31, 2013 (1) Includes owned and contracted generation. (2) Other includes PPAs, renewables and NUGS. (2) 51.9 Total 2013 generation output (1) increased by 6% due to improved nuclear and coal performance 54.8
Slide 24: Market Prices
© PPL Corporation 2014 24 (1) 24-hour average. (2) NYMEX and TETCO M3 forward gas prices on 12/31/2013. (3) Market Heat Rate = PJM on-peak power price divided by TETCO M3 gas price. Market Prices ELECT RIC ATC(1) NYMEX GAS(2) M id-Columbia On-Pe ak Off-Peak ATC(1) PJM On-Pe ak Off-Peak ( Per M WD) E
Slide 25: Debt Maturities
© PPL Corporation 2014 25 Debt Maturities 2014 2015 2016 2017 2018 $0 (1) PPL Capital Funding $0 $0 $0 $250 LG& E and KU Energy ( Holding Co LKE) 0 400 0 0 0 Louisville Gas & Electric 0 250 0 0 0 Kentucky Utilities 0 250 0 0 0 10 (2) PPL Electric Utilities 100 0 0 0 PPL Energy Supply 304 304 (3) 354
Slide 26: Liquidity Profile
© PPL Corporation 2014 26 Liquidity Profile Letters of Credit Outstanding & Total Commercial Unused Expiration Capacity Paper Backup Drawn Capacity Institution Facility Date (Millions) (Millions) (Millions) (Millions) PPL Capital Funding Syndicated Credit Facility Nov- 2018 $300 $0 $ 270 $ 30 PPL En
Slide 27: Reconciliation of Fourth Quarter 2013 Ongoing Earnings to Reported Earnings
© PPL Corporation 2014 27 Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings (Loss) (After- T ax) (Unaudited) 4th Quarter 2013 (millions of dollars) Kentucky U. K. Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Earnings from Ongoing Op
Slide 28: Reconciliation of Year-to-date 2013 Ongoing Earnings to Reported Earnings
© PPL Corporation 2014 28 Reconciliation of Year- to- date Earnings from Ongoing Operations to Reported Earnings Reconciliation of Year- to- date Earnings from Ongoing Operations to Reported Earnings (After- T ax) (Unaudited) Year-to- Date December 31, 2013 (millions of dollars) Kentucky U. K. Penns
Slide 29: Reconciliation of Fourth Quarter 2012 Ongoing Earnings to Reported Earnings
© PPL Corporation 2014 29 Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings (After- T ax) (Unaudited) 4th Quarter 2012 (millions of dollars) Kentucky U. K. Pennsylvania Regulated Regulated Regulated Supply Total Earnings from Ongoing Operations Special Items: $ 4
Slide 30: Reconciliation of Year-to-date 2012 Ongoing Earnings to Reported Earnings
© PPL Corporation 2014 30 Reconciliation of Year-to-date Earnings from Ongoing Operations to Reported Earnings Reconciliation of Year-to-date Earnings from Ongoing Operations to Reported Earnings (After-Tax) (Unaudited) Year-to-Date December 31, 2012 (millions of dollars) Kentucky U. K. Pennsylvania
Slide 31: Reconciliation of PPL's Ongoing Earnings to Reported Earnings (Forecast)
© PPL Corporation 2014 31 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (After- Tax) (Unaudited) Forecast (per share - diluted) Actual High 2014 Low 2014 2013 2012 2011 Corette Renewable energy credits Other asset impairments WPD Midlands Special Items: Earnings from
Slide 32: Reconciliation of Year-to-date 2011 Ongoing Earnings to Reported Earnings
© PPL Corporation 2014 32 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (After-Tax) (Unaudited) Year-to- Date December 31, 2011 (per share - diluted) Kentucky U. K. Pennsylvania Regulated Regulated ( a) Regulated Supply Total Earnings from Ongoing Operations Special I
Slide 33: Reconciliation of Year-to-date 2010 Ongoing Earnings to Reported Earnings
© PPL Corporation 2014 33 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (After- T ax) (Unaudited) ( per share - diluted) Year-to- Date December 31, 2010 Kentucky U. K. Pennsylvania Regulated Regulated Regulated Supply Other (a) Total Earnings from Ongoing Operations S
Slide 34: Gross Margins Summary
© PPL Corporation 2014 34 Gross Margins Summary ( Millions of Dollar s ) 2013 2012 Change Twelve Months Ended December 31, Dilute d ( after - tax) Per Share KY Gross Mar gins $ 1,760 $ 1,540 $ 220 $ 0.23PA Gross De liver y Mar gins Distribution Trans mission Total $ $ 803251 1,054 $ 730210 $ 940 $ 7
Slide 35: Reconciliation of Year-to-Date Margins to Operating Income
© PPL Corporation 2014 35 Reconciliation of Year- to- Date Margins to Operating Income Twelve Months Ended December 31, 2013 Twelve Months Ended December 31, 2012 ( Millions of Dollar s ) Unregulated Unregulated Kentucky PA Gross Gross Kentucky PA Gross Gross Gross De live r y Energy Operating Gross
Slide 36: Forward-looking statements and risk factors
© PPL Corporation 2014 36 Statements contained in this presentation, including statements with respect to future earnings, cash flows, financing, regulation and corporate strategy are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation believes th
Slide 37: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2014 37 Definitions of Non-GAAP Financial Measures "Earnings from ongoing operations," also referred to as "ongoing earnings," should not be considered as an alternative to reported earnings, or net income attributable to PPL shareowners, which is an indicator of operating performa
Slide 38: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2014 38 Definitions of Non-GAAP Financial Measures PPL utilizes the following non-GAAP financial measures as indicators of performance for its businesses. These measures are not intended to replace "Operating Income," which is determined in accordance with GAAP, as an indicator of