Slide 1: 3rd Quarter Investor Update
3rd Quarter Investor Update November 2, 2023 PPL Corporation
Slide 2: Cautionary Statements and Factors That May Affect Future Results
Cautionary Statements and Factors That May Affect Future Results 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 1995. Actual results may diff
Slide 3: Business Update
Business Update 3rd Quarter Investor Update November 2, 2023 Vince Sorgi PPL Corporation President & Chief Executive Officer 3
Slide 4: Financial Highlights
Financial Highlights ➢ Continued execution, delivered solid 3rd quarter financial results • Reported Q3 2023 GAAP results of $0.31 per share and ongoing earnings of $0.43 per share ➢ Narrowed 2023 ongoing earnings forecast range to $1.55 - $1.60 per share, midpoint of $1.58 per share unchanged • Ear
Slide 5: Operational Highlights
Operational Highlights ➢ Recognized as industry leader in advancing innovative technologies that enhance service and lower costs for customers • Awarded $100 million of federal funding to projects awarded through the Grid Resilience and Innovation Partnerships (GRIP) program via the IIJA (1) • Earne
Slide 6: Key Regulatory Updates
Key Regulatory Updates ➢ Kentucky generation replacement filing progressing on schedule (1) • August hearings and post hearing briefs were consistent with expectations • We continue to believe that our plan is the best path forward for our customers to deliver safe, reliable, and affordable energy •
Slide 7: Financial Update
Financial Update 3rd Quarter Investor Update November 2, 2023 Joe Bergstein PPL Corporation Executive Vice President & Chief Financial Officer 7
Slide 8: 3rd Quarter Financial Overview
3rd Quarter Financial Overview Overview of 3rd Quarter Financial Results (Earnings per share) Q3 2023 Q3 2022 ➢ Q3 2023 GAAP earnings of $0.31 per share Reported Earnings (GAAP) $0.31 $0.24 • Q3 2023 special items of ($0.12) per share, Less: Special Items ($0.12) ($0.17) primarily due to RI integrat
Slide 9: Review of 3rd Quarter Financial Results
Review of 3rd Quarter Financial Results Ongoing Earnings Walk: Q3 2023 vs. Q3 2022 (Earnings per share) O&M $0.02 Transmission $0.02 O&M ($0.01) Interest Expense ($0.01) Revenue Interest Expense ($0.01) Distribution $0.01 Rider Recovery Other(1) $0.01 O&M ($0.01) Interest Expense ($0.01) Other(1) $0
Slide 10: YTD Financial Overview and Outlook
YTD Financial Overview and Outlook Overview of YTD Financial Results Through September 30th (Earnings per share) YTD 2023 YTD 2022 ➢ YTD 2023 ongoing earnings >6% higher than Reported Earnings (GAAP) $0.85 $0.77 YTD 2022 • DSIC mechanism in PA has meaningfully offset the Less: Special Items ($0.35)
Slide 11: Balance Sheet Strength Provides Financial Flexibility
Balance Sheet Strength Provides Financial Flexibility Strong Credit Metrics Position PPL Among the Best in the Sector ➢ Premier credit ratings among peers PPL’s Debt Maturity Outlook (1) ($ in millions) • Baa1 rating at Moody’s • A- rating at S&P 1 ➢ Supported by strong credit metrics 0 • Targeting
Slide 12: Closing Remarks
Closing Remarks 3rd Quarter Investor Update November 2, 2023 Vince Sorgi PPL Corporation President & Chief Executive Officer 12
Slide 13: Advancing 2023 Outlook and Priorities
Advancing 2023 Outlook and Priorities Remain Confident in Achieving PPL’s 2023 Goals ➢ Deliver the midpoint of our 2023 earnings forecast range of $1.58 per share (1) ✓ Narrowed forecast and remain on target to offset the unfavorable weather and storm impacts from the first half of the year ➢ Advanc
Slide 14: Investment Overview
Investment Overview November 2, 2023 PPL Corporation – 3rd Quarter Investor Update
Slide 15: PPL Investment Highlights
PPL Investment Highlights A large-cap, regulated U.S. utility in constructive regulatory jurisdictions Visible and predictable 6% - 8% annual EPS and dividend growth (1) Robust $12B regulated capital investment plan from 2023 to 2026 One of the strongest balance sheets in the U.S. utility sector – n
Slide 16: Projecting 6% to 8% Earnings and Dividend Growth Through at Least 2026
Projecting 6% to 8% Earnings and Dividend Growth Through at Least 2026 Projected Earnings Per Share Projected Annualized Dividends Per Share (2) 6% - 8% 6% - 8% CAGR CAGR $1.58 $0.96 (2) 2023 2024 2025 2026 2023 2024 2025 2026 (1) Midpoint Projecting predictable, stable annual EPS growth Dividend gr
Slide 17: A Robust Capital Plan
A Robust Capital Plan Significant investment opportunities across all utilities 2023-2026 Plan: $11.9 billion ($ in billions) (1) Note: Totals may not sum due to rounding. (1) Includes projected capital expenditures related to replacement generation in entucky based upon L E’s and ’s P N filing subj
Slide 18: Rate Base CAGR of Over 5.5% Through 2026
Rate Base CAGR of Over 5.5% Through 2026 Projected Annual Rate Base Growth (2022 – 2026) Plan CAGR (2022-2026): 5.6% (Year-end rate base, $ in billions) Rate Base Growth Improving from 4% To >7% in Back Half of Plan 7.2% CAGR 4.1% CAGR (1) (2) Note: Totals may not sum due to rounding. (1) Reflects i
Slide 19: Significantly Improving PPL's Carbon Footprint
Significantly Impro ing PPL’s arbon ootprint Plan is consistent with PPL’s long-term emission reduction targets with near-term tangible progress Reduces Carbon Intensity by More Than 25% (2) Plan Aligns with Pathway to Net Zero Emissions by 2050 (1) (Metric tons, in millions) (Metric tons per MWh) C
Slide 20: Business Transformation Prioritizes Efficiency and Affordability While Staying Out of Rate Cases
Business Transformation Prioritizes Efficiency and Affordability While Staying Out of Rate Cases A clear path to deliver at least $175M of savings through 2026 from 2021 baseline (O&M savings, $ in millions) ✓ T&D Operations At least • Smart Grid Technology – more efficient and condition- $175M base
Slide 21: Premier Balance Sheet Supports Organic Growth and Provides Financial Flexibility
Premier Balance Sheet Supports Organic Growth and Provides Financial Flexibility One of the sector’s best credit profiles supports higher relative valuation (1) 2025 P/E Multiple ✓ Premier credit ratings among peers Discount Valuation: Average Valuation: Premium Valuation: 11.0x – 12.5x 12.5x – 14.5
Slide 22: Quarterly Supplemental Info.
Quarterly Supplemental Info. November 2, 2023 PPL Corporation – 3rd Quarter Investor Update
Slide 23: Review of YTD Financial Results Through September 30th
Review of YTD Financial Results Through September 30th Ongoing Earnings Walk: YTD 2023 vs. YTD 2022 (Earnings per share) O&M $0.02 Transmission $0.04 Interest Expense ($0.03) Revenue Distribution Sales Volumes Addition of RIE(2) $0.12 $0.04 ($0.08) Other(1) $0.02 Rider Recovery (Primarily Weather) S
Slide 24: Electricity Sales Volumes
Electricity Sales Volumes Quarterly and trailing twelve-month retail sales comparison by operating segment (1) (GWh) Weather- Normalized Elec tric ity Sales V olume A c tual Elec tric ity Sales V olume Annual EPS Sensitivity Penns ylvania Three Months End ed Sept. 30, Trailing Twelve Months End ed S
Slide 25: Summary of CPCN Filing in Kentucky
Summary of CPCN Filing in Kentucky (1) ▪ In December 2022, LG&E and KU filed a joint application with the Kentucky Public Service Commission (KPSC) seeking CPCNs to construct several generation facilities and approval of their proposed 2024-2030 Demand-Side Management and Energy Efficiency Program P
Slide 26: Capital Expenditure Plan
Capital Expenditure Plan ($ in millions) 2023 2024 2025 2026 4-Year Total Pennsylvania Electric Distribution $300 $300 $300 $325 $1,225 Electric Transmission 550 675 775 650 2,650 Pennsylvania Total $850 $975 $1,075 $975 $3,875 (1) Kentucky Electric Distribution $375 $325 $300 $400 $1,400 Electric T
Slide 27: Projected Rate Base (Year-End)
Projected Rate Base (Year-End) (Year-end rate base, $ in billions) 2022A 2023 2024 2025 2026 Pennsylvania Electric Distribution $4.1 $4.2 $4.3 $4.3 $4.4 Electric Transmission 5.2 5.5 5.7 6.1 6.6 Pennsylvania Total $9.3 $9.7 $10.0 $10.4 $11.0 Kentucky (1) Electric Distribution $2.7 $3.0 $3.2 $3.3 $3.
Slide 28: Debt Maturities
Debt Maturities ($ in millions) 2023 2024 2025 2026 2027 2028+ Total PPL Capital Funding $0 $0 $0 $650 $0 $2,396 $3,046 PPL Electric Utilities $90 $0 $0 $0 $108 $4,541 $4,739 Louisville Gas & Electric(1) $0 $0 $300 $90 $195 $1,839 $2,424 Kentucky Utilities(1) $0 $0 $250 $164 $0 $2,615 $3,029 Rhode I
Slide 29: Liquidity Profile
Liquidity Profile ($ in millions) Entity Facility Expiration Date Capacity Borrowed LCs & CP Issued (1)(2) Unused Capacity (3) PPL Capital Funding Syndicated Credit Facility Dec-2027 $1,250 $0 $75 $1,175 Bilateral Credit Facility Mar-2024 $100 $0 $0 $100 Uncommitted Credit Facility Mar-2024 $100 $0
Slide 30: PPL's Credit Ratings
PPL’s redit Ratings PPL Corporation Credit Rating S&P Moody’s Secured NR NR PPL Capital Funding Unsecured NR NR Credit Rating S&P Moody’s Long-term Issuer A- Baa1 Outlook Stable Stable Secured NR NR Unsecured BBB+ Baa1 Long-term Issuer A- NR Outlook Stable Stable Rhode Island Energy LG&E and KU PPL
Slide 31: Appendix
Appendix November 2, 2023 PPL Corporation – 3rd Quarter Investor Update
Slide 32: Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Current Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Current Year After-Tax (Unaudited) Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 ($ in millions) KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total (1) R
Slide 33: Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Prior Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Prior Year After-Tax (Unaudited) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 ($ in millions) KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total (1) Rep
Slide 34: Reconciliation of PPL's Earnings Forecast
Reconciliation of PPL’s Earnings orecast After-Tax (Unaudited) 2023 Forecast Range (per-share diluted) Midpoint High Low Estimate of Reported Earnings $ 1.23 $ 1.25 $ 1.20 (1) Less: Special Items (expense) benefit: Talen litigation costs (0.01) (0.01) (0.01) Strategic corporate initiatives (2) (0.01
Slide 35: Forward-Looking Information Statement
Forward-Looking Information Statement Statements contained in this presentation, including statements with respect to future earnings, cash flows, dividends, financing, regulation and corporate strategy, including the anticipated acquisition of Narragansett from National Grid, and its impact on PPL
Slide 36: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Management utilizes "Earnings from Ongoing Operations" or “Ongoing Earnings” as a non-GAAP financial measure that should not be considered as an alternative to net income, an indicator of operating performance determined in accordance with GAAP. PPL believe