Slide 1: 2nd Quarter 2024 Investor Update
PPL CORPORATION 2nd Quarter 2024 Investor Update August 2, 2024
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 2nd QUARTER 2024 INVESTOR UPDATE Vince Sorgi President & Chief Executive Officer August 2, 2024 3
Slide 4: 2nd Quarter Financial Highlights
2nd Quarter Financial Highlights Continued execution, delivered solid financial results ➢ Reported Q2 2024 GAAP results of $0.26 per share and ongoing earnings of $0.38 per share ➢ Reaffirmed 2024 ongoing earnings forecast range of $1.63 - $1.75 per share with a midpoint of $1.69 per share; expect t
Slide 5: Executing Our "Utility of the Future" Strategy
Executing Our “Utility of the Future” Strategy Delivering a net-zero energy system by 2050 that is affordable and reliable Prevent outages and improve restoration times through system hardening with updated design criteria and use of smart grid technology and automation in the face of more frequent
Slide 6: Data Center Update
Data Center Update PA and KY jurisdictions extremely well-positioned to support data center growth Pennsylvania Highlights Kentucky Highlights ➢ PPL Electric’s competitive advantages: ➢ LG&E and KU’s competitive advantages: • $6.5 billion of strategic transmission investments over past • Low energy
Slide 7: Key Operational and Regulatory Updates
Key Operational and Regulatory Updates ➢ Approval of Long-Term Infrastructure Improvement Plan (LTIIP) modification in Pennsylvania • PAPUC approved over $200 million increase in DSIC eligible capital through 2027 (1) • $84 million predictive failure technology (PFT) project was viewed positively by
Slide 8: Financial Update
Financial Update 2nd QUARTER 2024 INVESTOR UPDATE Joe Bergstein Executive Vice President & Chief Financial Officer August 2, 2024 8
Slide 9: Financial Overview
Financial Overview 2nd Quarter and Year-to-Date Financial Results (Earnings per share) Q2 2024 Q2 2023 YTD 2024 YTD 2023 Reported Earnings (GAAP) $0.26 $0.15 Reported Earnings (GAAP) $0.67 $0.54 Less: Special Items ($0.12) ($0.14) Less: Special Items ($0.25) ($0.23) Ongoing Earnings $0.38 $0.29 Ongo
Slide 10: Review of 2nd Quarter Financial Results
Review of 2nd Quarter Financial Results Ongoing Earnings Walk: Q2 2024 vs. Q2 2023 (Earnings per share) Distribution +$0.01 Revenue Transmission Transmission Interest Expense ($0.01) +$0.02 +$0.01 Revenue Revenue Other(1) ($0.01) Sales Volumes Sales Volumes +$0.02 Interest Income +$0.01 +$0.03 (Prim
Slide 11: Closing Remarks
Closing Remarks 2nd QUARTER 2024 INVESTOR UPDATE Vince Sorgi President & Chief Executive Officer August 2, 2024 11
Slide 12: PPL Investment Highlights
PPL Investment Highlights Large-cap, regulated U.S. utility operating in constructive regulatory jurisdictions • Principal electric/gas utilities serving Kentucky, Pennsylvania, and Rhode Island • Future test years in each jurisdiction, FERC formula rates and real-time recovery mechanisms of over 60
Slide 13: Appendix
Appendix 2nd QUARTER 2024 INVESTOR UPDATE August 2, 2024
Slide 14: PPL's Strategic Framework
PPL’s Strategic Framework Our objective is to deliver exceptional value for all our stakeholders Vision Be the best utility company in the U.S. Mission Provide safe, affordable, reliable, sustainable energy to our customers and competitive, long-term returns to investors Strategy: Create Utilities o
Slide 15: Visible and Predictable Earnings and Dividend Growth
Visible and Predictable Earnings and Dividend Growth Projecting 6% - 8% annual EPS and dividend growth through at least 2027 Projected Earnings Per Share Projected Annualized Dividends Per Share (2) 6% - 8% 6% - 8% CAGR CAGR (2) (1) Projecting predictable, stable annual EPS growth Dividend growth in
Slide 16: Constructive Regulatory Jurisdictions
Constructive Regulatory Jurisdictions Supportive of prudent investments in our electric and gas networks Key Regulatory Highlights PPL’s Total Rate Base (1) ➢ Contemporaneous recovery for over 60% of capital plan (Year-end rate base, $ in billions) • FERC formula rates for transmission in both PA an
Slide 17: Significant Piece of Capital Plan Recovered Real-time
Significant Piece of Capital Plan Recovered Real-time Over 60% of PPL’s capital investment plan subject to contemporaneous recovery Capital Plan Recovery by Segment (2024-2027) Total PPL Capital Plan Recovery KY (1) PA RI Base, 39% 7% 25% 33% 34% AFUDC, 15% $6.4B $4.8B $3.1B 12% 61% near 64% 63% Tra
Slide 18: 2024 – 2027 Capital Investment Plan
2024 – 2027 Capital Investment Plan Over $14 billion of capital investments that deliver value for customers ($ in billions) Key Capital plan Considerations $14.3 billion of planned capital investments ➢ Plan reflects only identified projects without any big bets $3.8 $3.7 $3.7 ➢ Upside potential to
Slide 19: Average Annual Rate Base of 6.3% Through 2027
Average Annual Rate Base of 6.3% Through 2027 Driven by significant investments in T&D infrastructure and non-coal generation (1) (Year-end rate base, $ in billions) ➢ Two-thirds of rate base relates to +6.3% CAGR investments in electric transmission and distribution infrastructure ➢ Growth in non-c
Slide 20: Prioritizing Efficiency and Affordability
Prioritizing Efficiency and Affordability A clear path to deliver at least $175M of annual savings by 2026 from 2021 Reducing O&M by an average of 2.5% per year ➢ T&D Operations (1) • Smart Grid Technology – more efficient and (O&M savings, $ in millions) At Least condition-based maintenance for sub
Slide 21: The TMO: Delivering the Efficiency of our Strategy
The TMO: Delivering the Efficiency of our Strategy Transformation Management Office (TMO) adds rigor and durability to savings 2023 O&M Savings Robust planning has identified over $175M of opportunities (1) >35% AHEAD Bottom-up planning: Implementation: value OF SCHEDUE IN 2023 $75M initiative plann
Slide 22: Balance Sheet Strength Provides Financial Flexibility
Balance Sheet Strength Provides Financial Flexibility Uniquely positioned to fund planned growth without equity ➢ Premier credit ratings among peers PPL’s Debt Maturity Outlook (1) ($ in millions) • Baa1 rating at Moody’s • A- rating at S&P ➢ Supported by strong credit metrics • Targeting 16% - 18%
Slide 23: Regulatory Overview
Regulatory Overview 2nd QUARTER 2024 INVESTOR UPDATE August 2, 2024
Slide 24: Pennsylvania Regulatory Overview
Pennsylvania Regulatory Overview PPL Electric Utilities Key Attributes Constructive Features Mitigating Regulatory Lag 2023 Rate Base ✓ FERC Formula Transmission Rates Year-End Rate Base ($B) $9.8 % of Total PPL Rate Base 38% ✓ Distribution System Improvement Charge (DSIC) ▪ An alternative ratemakin
Slide 25: A Review of the DSIC Mechanism in Pennsylvania
A Review of the DSIC Mechanism in Pennsylvania Reduces regulatory lag associated with certain electric distribution investments ➢ Distribution system improvement charge (DSIC) allows PPL Electric to recover reasonable and prudent costs incurred to repair, improve, or replace eligible property betwee
Slide 26: Summary of DSIC Wavier Filing in Pennsylvania
Summary of DSIC Wavier Filing in Pennsylvania Filing Overview Matter Date ▪ Docket: P-2024-3048732 PPL’s Petition and Direct Testimony April 26, 2024 ▪ PPL Electric filed a request with the PAPUC for an Notice Published in PA Bulletin June 29, 2024 increase to the Company’s Distribution System Deadl
Slide 27: Kentucky Regulatory Overview
Kentucky Regulatory Overview Louisville Gas & Electric and Kentucky Utilities Key Attributes Constructive Features Mitigating Regulatory Lag 2023 Rate Base ✓ Environmental Cost Recovery (ECR) Surcharge Year-End Rate Base ($B) $11.9 ▪ Provides near real-time recovery for approved environmental projec
Slide 28: Rhode Island Regulatory Overview
Rhode Island Regulatory Overview Rhode Island Energy Key Attributes Constructive Features Mitigating Regulatory Lag 2023 Rate Base ✓ FERC Formula Transmission Rates Year-End Rate Base ($B) $3.7 % of Total PPL Rate Base 15% ✓ Multi-year rate plans for electric and gas distribution Allowed ROE ✓ Infra
Slide 29: Quarterly Supplemental Information
Quarterly Supplemental Information 2nd QUARTER 2024 INVESTOR UPDATE August 2, 2024
Slide 30: Review of YTD Financial Results Through June 30th
Review of YTD Financial Results Through June 30th Ongoing Earnings Walk: YTD 2024 vs. YTD 2023 (Earnings per share) Distribution +$0.03 Transmission Revenue +$0.03 Interest Expense ($0.01) Revenue Transmission Sales Volumes +$0.01 +$0.06 Revenue Other(1) ($0.01) (Primarily Weather) Sales Volumes +$0
Slide 31: Electricity Sales Volumes
Electricity Sales Volumes Quarterly and trailing twelve-month retail sales comparison by segment (1) (GWh) Weather-Normalized Electricity Sales Volume Actual Electricity Sales Volume Annual EPS Sensitivity Pennsylvania Three Months Ended June 30, Trailing Twelve Months Ended June 30, Three Months En
Slide 32: Capital Expenditure Plan
Capital Expenditure Plan ($ in millions) 2024 2025 2026 2027 4-Year Total Pennsylvania Electric Distribution $500 $425 $400 $425 $1,750 Electric Transmission $675 $800 $825 $725 $3,025 Pennsylvania Total $1,175 $1,225 $1,225 $1,150 $4,775 Kentucky Electric Distribution $325 $400 $400 $350 $1,475 Ele
Slide 33: Projected Rate Base (Year-End)
Projected Rate Base (Year-End) (Year-end rate base, $ in billions) 2023A 2024 2025 2026 2027 Pennsylvania Electric Distribution $4.3 $4.6 $4.7 $4.9 $5.0 Electric Transmission $5.5 $5.8 $6.1 $6.6 $6.9 Pennsylvania Total $9.8 $10.3 $10.9 $11.4 $11.9 Kentucky Electric Distribution $3.0 $3.2 $3.5 $3.8 $
Slide 34: Debt Maturities
Debt Maturities ($ in millions) 2024 2025 2026 2027 2028 2029+ Total PPL Capital Funding $0 $0 $650 $0 $1,000 $1,396 $3,046 PPL Electric Utilities $0 $0 $0 $108 $0 $5,191 $5,299 Louisville Gas & Electric(1) $0 $300 $90 $260 $0 $1,839 $2,489 (1) Kentucky Utilities $0 $250 $164 $60 $0 $2,615 $3,089 (2
Slide 35: Liquidity Profile
Liquidity Profile ($ in millions) (1)(2) Entity Facility Expiration Date Capacity Borrowed LCs & CP Issued Unused Capacity (3) PPL Capital Funding Syndicated Credit Facility Dec-2028 $1,250 $0 $280 $970 Bilateral Credit Facility Feb-2025 $100 $0 $0 $100 Uncommitted Credit Facility Feb-2025 $100 $0 $
Slide 36: 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 37: Reconciliation of Segment Reported Earnings to Ongoing Earnings: Current Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Current Year After-Tax (Unaudited) Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 ($ in millions) KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total ( 1) Reported Ea
Slide 38: Reconciliation of Segment Reported Earnings to Ongoing Earnings: Prior Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Prior Year After-Tax (Unaudited) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 ($ in millions) KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total Reported Earnings
Slide 39: Reconciliation of PPL's Earnings Forecast
Reconciliation of PPL’s Earnings Forecast After-Tax (Unaudited) 2024 Forecast Range (per share - diluted) Midpoint High Low Estimate of Reported Earnings $ 1.44 $ 1.50 $ 1.38 Less: Special Items (expense) benefit: (1) Strategic corporate initiatives (2) (0.01) (0.01) (0.01) Acquisition integration (
Slide 40: 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 41: 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