Slide 1: 3rd Quarter Earnings Call
3 rd Quarter Earnings Call ©PPL Corporation 2012 PPL Corporation November 8, 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 Third Quarter Earnings Results, Operational Overview and 2012 Earnings Forecast Segment Results and Financial Overview Q&A W. H. Spence P. A. Farr
Slide 4: Earnings Results
Earnings Results Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.
Slide 5: Increased 2012 Ongoing Earnings Forecast
Increased 2012 Ongoing Earnings Forecast $2.30 $2.73 $/Share Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. $2.40
Slide 6: Operational Overview
Operational Overview Kentucky Regulated Capital savings LG&E and KU rate cases U.K. Regulated WPD distribution companies earned more than $80 million in annual bonus revenues for the regulatory year ended March 2012 Recovered in revenues in the 12-month period starting April 1, 2013 Pennsylvania Reg
Slide 7: Enhancing Value Through Active Hedging
Enhancing Value Through Active Hedging Enhancing Value Through Active Hedging Enhancing Value Through Active Hedging 2012 2013 2014 Baseload Expected Generation(1) ( Million MWhs) 44.5 49.6 50.4 East 37.8 41.2 41.8 West 6.7 8.4 8.6 Current Hedges ( % ) 99- 101% 93- 97% 53- 57% East 99- 101% 97- 101%
Slide 8: Ongoing Earnings Overview
Ongoing Earnings Overview Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. Q3 2012 Q3 2011 Change Kentucky Regulated $0.12 $0.13 ($0.01) U.K. Regulated 0.28 0.22 0.06 Pennsylvania Regulated 0.06 0.05 0.01 Supply 0.26 0.36 (0.10) Total $0.72 $0.76 ($
Slide 9: Kentucky Regulated Segment Earnings Drivers
Kentucky Regulated Segment Earnings Drivers 3 rd Quarter 2011 EPS - Ongoing Earnings $0.13 Gross margins (0.01) Total (0.01) 2012 EPS - Ongoing Earnings $0.12 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.
Slide 10: U.K. Regulated Segment Earnings Drivers
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. 3 rd Quarter 2011 EPS - Ongoing Earnings $0.22 Midlands (1) 0.05 Utility revenues 0.03 O&M (0.01) Effe
Slide 11: Pennsylvania Regulated Segment Earnings Drivers
Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. 3 rd Quarter 2011 EPS - Ongoing Earnings $0.05 Gross delivery margins 0.01 O&M (0.01) Income taxes and other 0.01 Total 0.01 2012 EPS - Ongoing Earnings
Slide 12: Supply Segment Earnings Drivers
Supply Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. 3 rd Quarter 2011 EPS - Ongoing Earnings $0.36 East energy margins (0.01) West energy margins (0.03) O&M (0.02) Depreciation (0.02) Income taxes and other (0.02) Total
Slide 13: Capital Expenditures
Capital Expenditures ($ 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) $3.5 $4.1 $3.9 $3.5 $3.1 Lower ca
Slide 14: Projected Regulated Rate Base Growth
Projected Regulated Rate Base Growth ($ 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 15: 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 3 rd quarter declaration. Actual dividends to be determined by Board of Directo
Slide 16: Appendix
Appendix
Slide 17: WPD - Annual Revenue Performance Bonuses
WPD - Annual Revenue Performance Bonuses WPD – Annual Revenue Performance Bonuses WPD – Annual Revenue Performance Bonuses WPD has earned over $185 million in annual performance awards over the past 8- year regulatory period, excluding WPD Midlands historical performance Regulatory Year (ending 3/ 3
Slide 18: U.K. Electricity Distribution Price Control Review RIIO-ED1 Tentative Schedule
U.K. Electricity Distribution Price Control Review RIIO-ED1 Tentative Schedule Provisional Timing Milestone September 2012 Publication of Strategy Consultation February 2013 Publication of Strategy Decision July 2013 DNOs submit business plans October 2013 Initial Assessment and publication of Fast-
Slide 19: LG&E and KU Rate Case Facts
LG&E and KU Rate Case Facts LG&E KU Electric Gas Electric Revenue Increase Requested $62.1 million $17.2 million $82.4 million Test Year 12-months ended 3/31/2012 12-months ended 3/31/2012 12-months ended 3/31/2012 Requested ROE 11.00% 11.00% 11.00% Rate Base $1.97 billion $0.52 billion $3.98 billio
Slide 20: LG&E and KU Rate Case Schedules
LG&E and KU Rate Case Schedules 1 st Request for information received July 31, 2012 LG&E and KU responses filed August 14, 2012 Supplemental request for information received August 28, 2012 LG&E and KU responses filed September 12, 2012 Intervenor testimony filed October 3, 2012 Request to interveno
Slide 21: 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 22: PPL Electric Utilities Distribution Rate Case Schedule
PPL Electric Utilities Distribution Rate Case Schedule Completed P P Direct testimony of other parties June 22, 2012 Rebuttal testimony July 16, 2012 Sur-rebuttal testimony August 1, 2012 Evidentiary hearings August 6, 7, 9 and 10, 2012 Close of record August 10, 2012 Main briefs August 29, 2012 Rep
Slide 23: Regulated Volume Variances
Regulated Volume Variances Note: Total includes Residential, Commercial and Industrial customer classes as well as “Other”, which is not depicted on the charts above.
Slide 24: Market Prices
Market Prices (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices on 9/30/2012. (3) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price. Market Prices Balance of 2012 2013 2014 ELECTRIC PJM On-Peak Off-Peak ATC(1) Mid- Columbia On-Peak Off-Peak ATC(1) GAS(2) NYMEX TZ6NNY
Slide 25: 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 dollars) $531 $314 ($1,010) ($ 1,200) ($ 1,000) ($ 800) ($ 600)
Slide 26: Debt Maturities
Debt Maturities Debt Maturities ( Millions) 2012 2013 2014 2015 2016 (1) $0 (2) PPL Capital Funding $0$0 $0$ 0 LG& E and KU Energy ( Holding Co LKE) 0 0 0400 0 Louisville Gas & Electric 0 0 0250 0 Kentucky Utilities 0 0 0250 0 10 (3) PPL Electric Utilities 00 100 0 PPL Energy Supply 3 751 318 317 (4
Slide 27: Liquidity Profile
Liquidity Profile (1) 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 Credit Facility Oct-2016 $3,000 $468 $ 0
Slide 28: Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings
Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings (Millions of Dollars, After-Tax) Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings (Millions
Slide 29: Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings (Per Share)
Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings (Per Share - Diluted) Kentucky U. K. Penns
Slide 30: Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings
Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings (Millions of Dollars, After-Tax) Kentucky U. K. Pennsylvania Year-to- date September 30, 2012 Regulated Regulated Regulated Supply
Slide 31: Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings (Per Share)
Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings (Per Share - Diluted) Kentucky U. K. Pennsylv
Slide 32: 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’s Earnings from Ongoing Operations to Reported Earnings Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings ©PPL Corporation 2012 32 (Per Share - Diluted) Earnings from Ongoi
Slide 33: Gross Margins Summary
Gross Margins Summary Gross Margins Summary Gross Margins Summary (Millions of Dollars) 2012 Three Months Ended September 30, 2011 Change (after-tax) Diluted Per Share KY Gross Margins $ 415 $ 419 $ (4) $ - PA Gross Delivery Margins by Component Distribution Transmission Total $ $ 18551 236 $ 17946
Slide 34: Reconciliation of Third Quarter Operating Income to Margins
Reconciliation of Third Quarter Operating Income to Margins Reconciliation of Third Quarter Operating Income to Margins Reconciliation of Third Quarter Operating Income to Margins Three Months Ended September 30, 2012 Three Months Ended September 30, 2011 ( Millions of Dollars) Unregulated Unregulat
Slide 35: 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 36: 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 accorda
Slide 37: 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