Slide 1: 1st Quarter Earnings Call
1 st Quarter Earnings Call ©PPL Corporation 2012 PPL Corporation May 4, 2012 Exhibit 99.2
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: Agenda
Agenda W. H. Spence P. A. Farr First Quarter Earnings Results, Operational Overview and 2012 Earnings Forecast Segment Results and Financial Overview Q&A
Slide 4: First Quarter Earnings Results
First Quarter Earnings Results First Quarter Reported Earnings First Quarter Earnings from Ongoing Operations Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.
Slide 5: $2.15 Reaffirmed 2012 Ongoing Earnings Forecast
$2.15 Reaffirmed 2012 Ongoing Earnings Forecast $2.73 $/Share Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. $2.45
Slide 6: Operational Overview
Operational Overview Midlands integration achieving operational improvements and synergy savings Susquehanna-Roseland transmission line preferred route selected by National Park Service Final approval expected in October 2012 Ironwood acquisition completed Susquehanna turbine blade update PPL Electr
Slide 7: PPL Electric Utilities Distribution Rate Case Facts
PPL Electric Utilities Distribution Rate Case Facts Distribution Revenue Increase Requested $104.6 million Test Year 2012 Requested ROE 11.25% 2012 Distribution Rate Base $2.42 billion 2012 Common Equity Ratio 51.03% 1% Change in ROE = ~$23 million in revenue Docket No. R-2012-2290597 Complete filin
Slide 8: Ongoing Earnings Overview
Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. Ongoing Earnings Overview ($0.14) $0.84 $0.70 Total (0.15) 0.42 0.27 Supply (0.05) 0.11 0.06 Pennsylvania Regulated 0.15 0.16 0.31 U.K. Regulated ($0.09) $0.15 $0.06 Kentucky Regulated Change Q1 2011
Slide 9: Kentucky Regulated Segment Earnings Drivers
1 st Quarter 2011 EPS - Ongoing Earnings $0.15 Electric Delivery Margins (0.04) O&M (0.03) Depreciation (0.01) Dilution (0.01) Total (0.09) 2012 EPS - Ongoing Earnings $0.06 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. Kentucky Regulated Segment
Slide 10: U.K. Regulated Segment Earnings Drivers
Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. (1) Includes interest expense from the 2011 equity units. 1 st Quarter 2011 EPS - Ongoing Earnings $0.16 Midlands (1) 0.24 Delivery revenue 0.02 O&M (0.03) Income taxes & other (0.02) Dilution (0.06)
Slide 11: Pennsylvania Regulated Segment Earnings Drivers
Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. 1 st Quarter 2011 EPS - Ongoing Earnings $0.11 Electric Delivery Margins (0.02) O&M (0.01) Depreciation (0.01) Dilution (0.01) Total (0.05) 2012 EPS - Ongoing Earnings $0.06 Pennsylvania Regulated Seg
Slide 12: Supply Segment Earnings Drivers
Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. 1 st Quarter 2011 EPS - Ongoing Earnings $0.42 Margins (0.10) O&M (0.01) Income taxes & other 0.02 Dilution (0.06) Total (0.15) 2012 EPS - Ongoing Earnings $0.27 Supply Segment Earnings Drivers
Slide 13: Appendix
Appendix
Slide 14: Dividend Profile
Dividend Profile A significantly more rate-regulated business mix provides strong support for current dividend and a platform for future growth (1) Ongoing EPS based on mid-point of forecast. Annualized dividend based on 1 st quarter declaration. Actual dividends to be determined by Board of Directo
Slide 15: Midlands Integration - Improved Network Performance
Midlands Integration - Improved Network Performance Customer Minutes Lost Customer Interruptions (per 100 customers) 18 Hour Standard Target 60 25.9% Improvement 39.7% Improvement 96% Improvement 21.6% Improvement
Slide 16: Regulated Volume Variances
Regulated Volume Variances Regulated Volume Variances Regulated Volume Variances Regulated Volume Variances Regulated Volume Variances Residential Commercial Industrial Total Residential Commercial Industrial Total Weather- Normalized (charted) -0.74% 0.56% -0.20% -0.18% 1.60% 0.81% 0.01% 0.90% Actu
Slide 17: Enhancing Value Through Active Hedging
2012 2013 Baseload Expected Generation (1) (Million MWhs) 51.5 53.1 East 43.5 44.8 West 8.0 8.3 Current Hedges (%) 94-98% 79-83% East 96-100% 82-86% West 82-86% 65-69% Average Hedged Price (Energy Only) ($/MWh) (2) (3) East $54-55 $49-51 West $50-52 $46-49 Current Coal Hedges (%) 100% 97% East 100%
Slide 18: Market Prices
Market Prices (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices on 3/30/2012. (3) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price. Market Prices Market Prices Market Prices Balance of 2012 2013 ELECTRIC PJM On-Peak Off-Peak ATC(1) Mid-Columbia On-Peak Off-Peak ATC(1
Slide 19: Capital Expenditures
Capital Expenditures ($ in billions) (1) Includes capex for WPD Midlands. Figures based on assumed exchange rate of $1.57 / GBP. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience and future projections. (1) (2) $3.8 $4.2 $4.1 $3.7 $2.9
Slide 20: Projected Regulated Rate Base Growth
Projected Regulated Rate Base Growth ($ 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) Includes RAV for WPD Midlands. Figures based on assumed exchange rate of $1.57 / GBP and are as
Slide 21: Free Cash Flow before Dividends
Free Cash Flow before Dividends Free Cash Flow before Dividends Free Cash Flow before Dividends Free Cash Flow before Dividends Free Cash Flow before Dividends Free Cash Flow before Reconciliation of Cash from Dividends Operations to Free Cash Flow before Dividends (Millions of Dollars) (Millions of
Slide 22: Debt Maturities
Debt Maturities Debt Maturities Debt Maturities Debt Maturities ( Millions) PPL Capital Funding LG& E and KU Energy ( Holding Co LKE) Louisville Gas & Electric Kentucky Utilities PPL Electric Utilities PPL Energy Supply WPD 2012 $0 0 0 0 0 0 0 2013 $ 0 0 0 0 0 737 0 (1) 2014 $0 (2) 0 0 0 10 (3) 300
Slide 23: Liquidity Profile
(1) Liquidity Profile Liquidity Profile Liquidity Profile Liquidity Profile Liquidity Profile Total Expiration Facility Drawn Availability Institution Facility Date (Millions) (Millions) (Millions) Letters of Credit Outstanding & Commercial Paper Backstop (Millions) PPL Energy Supply Syndicated Cred
Slide 24: Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings
Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings Reconciliation of First Quarter Earnings from Reconciliation of First Quarter Earnings from Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings Ongoing Operations to Reported Earni
Slide 25: Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings (Per Share)
Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings Reconciliation of First Quarter Earnings from Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings Ongoing Operations to Reported Earnings Reconciliation of First Quarter Earnings f
Slide 26: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings Reconciliation of PPL Reconciliation of PPL’’ s Earnings from Ongoings Earnings from Ongoing Operations to Reported Earnings Operations to Reported Earnings Reconciliation of PPL Reconciliation of PPL’’ s Earnings from Ong
Slide 27: Gross Margins Summary
Gross Margins Summary Gross Margins Summary Gross Margins Summary Gross Margins Summary Gross Margins Summary (Millions of Dollars) Three Months Ended March 31, Per Share Diluted 2012 2011 Change (after-tax) (a) KY Gross Margins $ 383 $ 411 $ ( 28) $ ( 0.04) PA Gross Delivery Margins by Component Di
Slide 28: Reconciliation of First Quarter Operating Income to Margins
Reconciliation of First Quarter Operating Income to Margins Reconciliation of First Quarter Reconciliation of First Quarter Operating Income to Margins Operating Income to Margins Reconciliation of First Quarter Reconciliation of First Quarter Operating Income to Margins Operating Income to Margins
Slide 29: 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 30: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures “Earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAA
Slide 31: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures "Kentucky Gross Margins" is a single financial performance measure of the Kentucky Regulated segment's electricity generation, transmission and distribution operations as well as its distribution and sale of natural gas. In calculating this measure, utility