Slide 1: 2nd Quarter Investor Update
2nd Quarter Investor Update August 3, 2022 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, including the anticipated effects of the recent sale of PPL Corporation’s U.K. business, the acquisition of The Narragansett Electric Company (
Slide 3: Business Update
Business Update 2nd Quarter Investor Update August 3, 2022 Vince Sorgi PPL Corporation President & Chief Executive Officer 3
Slide 4: PPL's Investment Thesis
PPL’s Investment Thesis A large-cap, regulated U.S. utility in constructive regulatory jurisdictions Visible and predictable 6% - 8% annual EPS and dividend growth (1) Robust $27B regulated investment opportunity through 2030 One of the strongest balance sheets in the U.S. utility sector – no equity
Slide 5: 2nd Quarter Update: Takeaways
2nd Quarter Update: Takeaways ✓ Strong quarterly results have PPL on track to achieve 2022 financial targets • Reported Q2 2022 GAAP results of $0.16 per share; Ongoing earnings of $0.30 per share ✓ Reaffirmed 2022 earnings forecast of $1.30 – $1.45 per share (1) ✓ Reaffirmed long-term annual earnin
Slide 6: A Strategy Focused on Efficiency and Affordability
A Strategy Focused on Efficiency and Affordability A clear path to deliver at least $150M of savings by 2025 (O&M savings, $ in millions) ✓ T&D Operations • Smart Grid Technology – more efficient and condition- based maintenance for substation and line assets $150 • Enhanced vegetation management mo
Slide 7: Advancing The Clean Energy Transition in Kentucky
Advancing The Clean Energy Transition in Kentucky RFP to Evaluate Long-Term Supply of Energy and Capacity Supports PPL’s Projected Coal-Fired Generation Retirements (in MW) ✓ LG&E and KU issued RFP to support energy and capacity needs ahead of expected 2028 coal-plant retirements Projected Coal-Fire
Slide 8: Financial Update
Financial Update 2nd Quarter Investor Update August 3, 2022 Joe Bergstein PPL Corporation Executive Vice President & Chief Financial Officer 8
Slide 9: Financial Update
Financial Update Overview of 2nd Quarter Financial Results Overview of YTD Financial Results (Earnings Per Share) (Earnings Per Share) Q2 2022 Q2 2021 YTD 2022 YTD 2021 Reported Earnings $0.16 $0.03 Reported Earnings $0.53 ($2.37) Less: Special Items (1) ($0.14) ($0.16) Less: Special Items (2) ($0.1
Slide 10: Review of 2nd Quarter Financial Results
Review of 2nd Quarter Financial Results Ongoing Earnings Walk – Q2 2022 vs. Q2 2021(1) (Earnings Per Share) +$0.01 $0.30 +$0.03 +$0.01 PA Regulated $0.01 +$0.03 In t eres t +$0.03 Addition $0.01 E xpen s e $0.04 (2) of RIE O t her ( $0.01) $0.19 Ret ai l Rat es $0.04 Sal es Vol u mes $0.01 P eak Tra
Slide 11: Appendix
Appendix August 3, 2022 PPL Corporation – 2nd Quarter Investor Update
Slide 12: Review of YTD Financial Results
Review of YTD Financial Results Ongoing Earnings Walk – YTD 2022 vs. YTD 2021(1) (Earnings Per Share) +$0.03 $0.71 +$0.07 +$0.08 +$0.01 PA Regu lated $0.01 K Y Regu lated $0.02 In t eres t +$0.05 Addition $0.01 E xpen s e $0.08 of RIE (2) $0.47 Ret ai l Rat es $0.09 O t her ( $0.01) P eak Tran s . S
Slide 13: Electricity Sales Volumes
Electricity Sales Volumes 2022 retail sales vs. 2021 retail sales by operating segment (1) Weather-Normalized Electricity Sales Volume Actual Electricity Sales Volume (GWh) Three Months Ended June 30, Trailing Twelve Months Ended June 30, Three Months Ended June 30, 2022 2021 % Change 2022 2021 % Ch
Slide 14: 2022 Earnings Projections
2022 Earnings Projections 2022 Forecast Reflects Partial Year of Rhode Island Energy; 2022 Pro Forma is Basis for EPS Growth Rate Supported by Growth in Pennsylvania and Kentucky, a Full-Year of Interest Savings, and the Addition of Rhode Island Energy (Earnings per share) Key Earnings Drivers (2022
Slide 15: 6% - 8% EPS and Dividend Growth
6% - 8% EPS and Dividend Growth Top-Tier Earnings Per Share Growth… …And Dividend Growth Aligned with EPS Projected Earnings Projected Annualized Dividends Per Share 6% - 8% Per Share 6% - 8% CAGR CAGR $1.48 (1) $0.90 2022 2023 2024 2025 2022 2023 2024 2025 Pro Forma(2) Pro Forma(2) (3) Compelling a
Slide 16: Significant Capital Investment Opportunities
Significant Capital Investment Opportunities Robust ~$12B Regulated Utility Capital Plan From 2022 – 2026… …With Additional Future Prospects ($ in billions) $2.5 $2.3 $2.3 $2.3 $2.3 $0.5 $0.5 $0.7 $0.7 $0.7 $15B Additional investment $0.8 $0.9 $0.9 $0.8 $0.8 opportunities through 2030 $1.0 $0.9 $0.9
Slide 17: A More Sustainable Business Mix
A More Sustainable Business Mix Increasing Sustainable Infrastructure… (1) …And Decreasing Coal-Fired Generation… …Results in Less Carbon Intensive Mix (Average rate base, $ in billions) (Average rate base, $ in billions) 5.7% >85% RATE BASE RELATED TO SUSTAINABLE INFRASTRUCTURE BY 2026 CAGR 4.3% Co
Slide 18: Improved Balance Sheet Now In-Line with Premium Peers
Improved Balance Sheet Now In-Line with Premium Peers One of the Sector’s Best Credit Profiles 2024 P/E Multiple (1) Discount Valuation: Average Valuation: Premium Valuation: ✓ Upgraded to Baa1 rating at Moody’s 15x – 17x 17x – 19.5x 19.5x – 21.5x • A- rating affirmed at S&P RECENT UPGRADE TO BAA1 S
Slide 19: Debt Maturities
Debt Maturities 2027 and ($ in millions) 2022 2023 2024 2025 2026 Beyond Total PPL Capital Funding $0 $0 $0 $0 $650 $1,396 $2,046 PPL Electric Utilities (1) $474 $340 $650 $0 $0 $3,075 $4,539 Louisville Gas & Electric (1) $0 $0 $0 $300 $90 $1,634 $2,024 Kentucky Utilities(1) $0 $13 $0 $250 $164 $2,2
Slide 20: Liquidity Profile
Liquidity Profile Letters of C redit & C om m ercial Unused Ex piration C apacity Borrow ed Paper Issued C apacity Entity F acility Date ($ in m illions) ($ in m illions) ($ in m illions) ($ in m illions) PPL C apital F unding Syndicated Credit Facility Dec-2026 $1,250 $0 $256 $994 Bilateral Credit
Slide 21: PPL's Credit Ratings
PPL’s Credit Ratings PPL Corporation Credit Rating S&P Moody’s Secured NR NR PPL Capital Funding Unsecured NR NR Credit Rating S&P Moody’s Long-term Issuer A- Baa1 Outlook Stable Stable Secured NR NR Unsecured BBB+ Baa1 Long-term Issuer A- NR Outlook Stable Stable Rhode Island Energy LG&E and KU PPL
Slide 22: Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations After-Tax (Unaudited) 2nd Quarter Year-to-Date ($ in millions) June 30, 2022 June 30, 2022 KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total Reported Earnings (1) $ 102 $ 124 $ (29)
Slide 23: Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations After-Tax (Unaudited) 2nd Quarter Year-to-Date ($ in millions) June 30, 2021 June 30, 2021 KY Reg. PA Reg. Corp. & Other Disc. Ops. (2) Total KY Reg. PA Reg. Corp. & Other Disc. Ops. (2) Total Reported Earnings (1) $ 84
Slide 24: Adjusted Gross Margins Summary
Adjusted Gross Margins Summary (Unaudited) Three Months Ended June 30, (millions of dollars, except share data) Per Share Diluted 2022 2021 Change (after-tax) Kentucky Adjusted Gross Margins $ 567 $ 489 $ 78 $ 0.08 Pennsylvania Adjusted Gross Margins Distribution $ 213 $ 211 $ 2 $ 0.00 Transmission
Slide 25: Reconciliation of Adjusted Gross Margins to Operating Income
Reconciliation of Adjusted Gross Margins to Operating Income (Unaudited) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (millions of dollars) KY PA RI KY PA RI Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Gross Gross Gross Operating Gross Gross Gross Operating Margins Margi
Slide 26: Reconciliation of PPL's Earnings Forecast
Reconciliation of PPL’s Earnings Forecast After-Tax (Unaudited) 2022 Forecast Range (per share - diluted) Midpoint High Low Estimate of Reported Earnings $ 1.19 $ 1.27 $ 1.12 Less: Special Items (expense) benefit: (1) Talen litigation costs 0.01 0.01 0.01 Strategic corporate initiatives (2) (0.03) (
Slide 27: 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 28: 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 reported earnings, or net income, an indicator of operating performance determined in accordance
Slide 29: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Management also utilizes the following non-GAAP financial measures as indicators of performance for its businesses: "Kentucky Adjusted Gross Margins" is a single financial performance measure of the electricity generation, transmission and distribution oper