Slide 1: ISI Conference
Exhibit 99.1 UK Regulated KY Regulated ISI Conference January 8-9, 2015 Palm Beach, Florida PA Regulated Supply
Slide 2: Cautionary Statements and Factors That May Affect Future Results
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 1995. Actual results may
Slide 3: Commitment to Creating Shareholder Value
Commitment to Creating Shareholder Value Evolution of PPL 2008 2009 2010 2011 2012 2013 2014 Future 2010 (1) 2012 (2) 2013 (3) Pro-Forma PPL Corporation Market Cap ($bn) $12.8 $16.4 $18.8 Enterprise Value ($bn) $17.2 $35.1 $37.8 FY+1 P/E 10.6x 13.0x 13.7x Business Profile (4) % Utility 16% 27% 28% %
Slide 4: PPL Overview
PPL Overview PPL Electric Utilities • Customers: 1.4 million Electric • Allowed Distribution ROE: 10.40% • Rate Base: $4.2 billion (1) • 5-Year Transmission Rate Base CAGR: 12.5% • 5-Year Distribution Rate Base CAGR: 6.4% • Regulatory Entity: Pennsylvania PUC U.K. Delivery • Customers: 7.8 million E
Slide 5: PPL Corporation Investment Highlights
PPL Corporation Investment Highlights • 100% rate-regulated business model provides earnings and dividend growth potential – Substantial projected growth in rate base: 6.3% CAGR from 2014-2018 – Target EPS compound annual growth rate of at least 4%, excluding PPL Energy Supply(1) – Maintain current
Slide 6: Real-Time Recovery of Regulated Capex Spending
Real-Time Recovery of Regulated Capex Spending Approximately 75% of regulated capital expenditures earn returns subject to minimal or no regulatory lag ($ in billions) 75% 74% 75% 74% 72% $0.1 $0.1 $0.2 $0.2 $0.2 $0.6 $0.6 $0.5 $0.6 $0.6 $0.5 $0.3 $0.4 $0.3 $0.3 $1.3 $1.3 $1.4 $1.3 $1.3 (1) (2) (3)
Slide 7: U.K. Regulated Segment Investment Highlights
U.K. Regulated Segment Investment Highlights • Highly attractive rate-regulated business – Regulator-approved multi-year forward-looking revenues based on future business plan, including capital expenditures and O&M plus adjustments for inflation – Real-time return of and return on capital investmen
Slide 8: Kentucky Regulated Segment Investment Highlights
Kentucky Regulated Segment Investment Highlights • Efficient, well-run utilities focused on safety, reliability and customer service • Constructive regulatory environment that provides a timely return on a substantial amount of planned capex over the next 5 years – Environmental Cost Recovery (ECR):
Slide 9: Pennsylvania Regulated Segment Investment Highlights
Pennsylvania Regulated Segment Investment Highlights Projected Transmission Rate Base • Significant growth in transmission portion of Growth business which earns an allowed rate of return on a near real-time basis – CAGR of 12.5% in transmission rate base through 2018 driven by initiatives to improv
Slide 10: PPL Energy Supply Transaction Overview
PPL Energy Supply Transaction Overview • PPL Energy Supply, LLC (“PPL Energy Supply”) will be spun off from PPL Corporation (“PPL”) and combined with Riverstone’s power generation business (“RJS Power Holdings LLC”) to form Talen Energy • Corporation Creates a competitive 15 GW IPP with power plants
Slide 11: Appendix
Appendix © PPL Corporation 2015 11
Slide 12: Increasing 2014 Ongoing Earnings Forecast
Increasing 2014 Ongoing Earnings Forecast $2.45 $2.47 $2.40 $2.37 $2.20 2013 Previous 2014E Revised 2014E Segment (Ongoing) Ongoing Midpoint Ongoing Midpoint U.K. Regulated $1.32 $1.35 $1.38 Kentucky Regulated 0.48 0.45 0.45 PA Regulated 0.31 0.39 0.39 Supply 0.39 0.17 0.24 Corporate and Other (0.05
Slide 13: Dividend Profile
Dividend Profile A predominantly rate-regulated business mix provides strong support for current dividend and a platform for future growth $/Share Annualized (1) (2) (3) (1) Based on mid-point of forecast. Annualized dividend based on 2/6/2014 announced increase. Actual dividends to be determined by
Slide 14: LG&E and KU Rate Case Facts
LG&E and KU Rate Case Facts LG&E KU Electric Gas Electric Revenue Increase Requested $30 million $14 million $153 million 12-months ended 12-months ended 12-months ended Test Year 6/30/2016 6/30/2016 6/30/2016 Requested ROE 10.5% 10.5% 10.5% Jurisdictional Capitalization $2.1 billion $0.5 billion $3
Slide 15: Projected Capital Expenditures
Projected Capital Expenditures Significant and stable investment opportunities in regulated utilities $4.19 $3.79 $3.65 $3.68 $3.51 (1) (2) (3) (1) Figures based on assumed exchange rate of $1.67 / £. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical expe
Slide 16: Projected Regulated Rate Base Growth
Projected Regulated Rate Base Growth 5-Year Regulatory Asset Base(1) CAGR: 6.3% ($ in billions) $29.0 $27.6 $26.4 $24.8 $23.2 $21.3 (2) (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 base
Slide 17: Energy Supply Hedge Update
Energy Supply Hedge Update Capacity revenues(3) are expected to be $560, $505 and $455 million for 2014, 2015 and 2016 respectively. Note: As of December 31, 2014 Includes PPL Montana's hydroelectric facilities through the 3rd quarter of 2014. On November 18, 2014 PPL Montana, LLC had completed the
Slide 18: Market Prices
Market Prices (1) 24-hour average. (2) NYMEX and TETCO M3 forward gas prices on 9/30/2014. (3) Market Heat Rate = PJM on-peak power price divided by TETCO M3 gas price. © PPL Corporation 2015 18 Market Prices On-Peak Off- Peak (Per M WD) EQA HEAT RATE(3) TETCO M3 PJM MARKET CAPACITY PRICES ELECT RIC
Slide 19: Competitive Generation Overview
Competitive Generation Overview (1) Note: Includes owned and contracted generation. As of September 30, 2014 (1) Other includes PPAs, renewables and NUGS. © PPL Corporation 2015 19
Slide 20: Debt Maturities
Debt Maturities Note: As of September 30, 2014 (1) This amount includes $81 million of Pennsylvania Economic Development Financing Authority bonds due 2037 and $150 million of Pennsylvania Economic Development Financing Authority bonds due 2038 that may be put by the holders in September 2015. This
Slide 21: Liquidity Profile
Liquidity Profile Note: As of September 30, 2014 Credit facilities consist of a diverse bank group, with no bank and its affiliates providing an aggregate commitment of more than 10% of the total committed capacity for the domestic facilities and 13% of the total committed capacity for WPD’s facilit
Slide 22: Reconciliation of PPL's Forecast of Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Forecast of Earnings from Ongoing Operations to Reported Earnings © PPL Corporation 2015 22 Reconciliation of PPL’s Forecast of Earnings from Ongoing Operations to Reported Earnings (After- Tax) (Unaudited) Earnings from Ongoing Operations Special Items: Adjusted energy-relat
Slide 23: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings © PPL Corporation 2015 23 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (After-Tax) (Unaudited) Year-to-date Dec
Slide 24: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (a) WPD Midlands' results are consolidated on a one-month lag, and include eight months of results in 2011, as the date of acquisition was April 1, 2011. © PPL Corporation 2015 24 Reconciliation of PPL’s Earnings from Ongo
Slide 25: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings © PPL Corporation 2015 25 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (After- Tax) (Unaudited) Year-to-date December 31, 2010 (per share - diluted) U.K. Kentucky Pennsylvania Regulated Reg
Slide 26: Forward-Looking Information Statement
Forward-Looking Information Statement 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
Slide 27: Definitions of Non-GAAP Financial Measures
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 performance determined in accordan
Slide 28: Definitions of Non-GAAP Financial Measures
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 overall operating performa