Slide 1: PPL Corporation 1st Quarter Earnings
© PPL Corporation 2014 PPL Corporation 1 st Quarter Earnings May 1, 2014 Exhibit 99.2
Slide 2: Cautionary Statements and Factors That May Affect Future Results
© PPL Corporation 2014 2 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
Slide 3: Agenda
© PPL Corporation 2014 3 First Quarter Earnings Results, Operational Overview and 2014 Earnings Forecast Segment Results and Financial Overview Q&A W. H. Spence P. A. Farr Agenda
Slide 4: Earnings Results
© PPL Corporation 2014 4 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. Earnings Results
Slide 5: Increasing 2014 Ongoing Earnings Forecast
© PPL Corporation 2014 5 Segment 2013A (Ongoing) Previous 2014E Revised 2014E U.K. Regulated $1.32 $1.32 $1.34 Kentucky Regulated 0.48 0.43 0.45 PA Regulated 0.31 0.38 0.39 Supply 0.39 0.07 0.11 Corporate and Other (0.05) (0.05) (0.06) Total $2.45 $2.15 $2.23 $2.15 $2.05 Note: See Appendix for the r
Slide 6: Regulated Operational Overview
© PPL Corporation 2014 6 • All four WPD companies Fast-Tracked • Susquehanna-Roseland Update – Energized new 230kV section of line through Delaware Water Gap – Construction ~75% complete overall Regulated Operational Overview
Slide 7: Regulated Volume Variances
© PPL Corporation 2014 7 Note: Total includes Residential, Commercial and Industrial customer classes as well as “Other”, which is not depicted on the charts above. Regulated Volume Variances
Slide 8: Supply Operational Overview
© PPL Corporation 2014 8 • Strong Q1 Eastern portfolio performance – CCGT capacity factors at ~70% (reflect planned combined cycle outages) – Eastern coal capacity factor over 85% • Update on Susquehanna operations • Update on Montana hydro sale Supply Operational Overview
Slide 9: Ongoing Earnings Overview
© PPL Corporation 2014 9 Q1 2014 Q1 2013 Change U.K. Regulated $0.41 $0.37 $0.04 Kentucky Regulated 0.16 0.14 0.02 Pennsylvania Regulated 0.13 0.10 0.03 Supply 0.11 0.11 - Corporate and Other (0.01) (0.01) - Total $0.80 $0.71 $0.09 Ongoing Earnings Overview Note: See Appendix for the reconciliation
Slide 10: U.K. Regulated Segment Earnings Drivers
© PPL Corporation 2014 10 1 st Quarter 2013 EPS - Ongoing Earnings $0.37 Utility revenue 0.05 O&M 0.01 Depreciation (0.01) Income taxes and other (0.01) Total 0.04 2014 EPS - Ongoing Earnings $0.41 U.K. Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ong
Slide 11: Kentucky Regulated Segment Earnings Drivers
© PPL Corporation 2014 11 1 st Quarter 2013 EPS - Ongoing Earnings $0.14 Gross margins 0.05 O&M (0.01) Income taxes and other (0.02) Total 0.02 2014 EPS - Ongoing Earnings $0.16 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations
Slide 12: Pennsylvania Regulated Segment Earnings Drivers
© PPL Corporation 2014 12 1 st Quarter 2013 EPS - Ongoing Earnings $0.10 Gross delivery margins 0.04 Income taxes and other (0.01) Total 0.03 2014 EPS - Ongoing Earnings $0.13 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operation
Slide 13: Supply Segment Earnings Drivers
© PPL Corporation 2014 13 1 st Quarter 2013 EPS - Ongoing Earnings $0.11 East energy margins 0.02 West energy margins (0.01) Financing 0.01 Income taxes and other (0.02) Total - 2014 EPS - Ongoing Earnings $0.11 Supply Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings fr
Slide 14: Appendix
© PPL Corporation 2014 14 Appendix
Slide 15: Dividend Profile
© PPL Corporation 2014 15 A predominantly rate-regulated business mix provides strong support for current dividend and a platform for future growth (1) Based on mid-point of forecast. Annualized dividend based on 2/6/2014 announced increase. Actual dividends to be determined by Board of Directors. (
Slide 16: Projected Capital Expenditures
© PPL Corporation 2014 16 ($ in billions) (1) Figures based on assumed exchange rate of $1.58 / £. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience and future projections. (1) (2) $4.11 $3.82 $3.84 $3.74 Projected Capital Expenditures Signific
Slide 17: Projected Regulated Rate Base Growth
© PPL Corporation 2014 17 ($ 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) Figures based on assumed exchange rate of $1.58 / GBP and the RIIO-ED1 business plan as filed on July 1, 2
Slide 18: Enhancing Value Through Active Hedging
© PPL Corporation 2014 18 Enhancing Value Through Active Hedging 2014 2015 Baseload Expected Generation(1) (Million MWhs) 51.3 45.1 East 44.2 40.8 West 7.1 4.3 Current Hedges (% ) 97-99% 69-71% East 97-99% 68-70% West 95-97% 73-75% Average Hedged Price (Energy Only) ($/MWh) (2) East $39- 41 $39- 40
Slide 19: Competitive Generation Overview
© PPL Corporation 2014 19 Competitive Generation Overview Note: Includes owned and contracted generation. As of March 31, 2014 (1) Other includes PPAs, renewables and NUGS. (1)
Slide 20: Market Prices
© PPL Corporation 2014 20 (1) 24-hour average. (2) NYMEX and TETCO M3 forward gas prices on 3/31/2014. (3) Market Heat Rate = PJM on-peak power price divided by TETCO M3 gas price. Market Prices ELECTRIC AT C(1) NYMEX GAS(2) Mid Columbia On-Peak Off-Peak AT C(1) PJM On-Peak Off-Peak (Per MWD) EQA HE
Slide 21: Free Cash Flow before Dividends
© PPL Corporation 2014 21 Free Cash Flow before Dividends $2,000 Free Cash Flow before Dividends (Millions of Dollars) Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions of dollars) ($1,000) ($500) $0 $500 $1,000 $1,500 ($412) $144 Cash from Operations Increase (Decr
Slide 22: Debt Maturities
© PPL Corporation 2014 22 Debt Maturities 2014 2015 2016 2017 2018 PPL Capital Funding $0 $0 $0 $0 $250 LG& E and KU Energy ( Holding Co LKE) 0 400 0 0 0 Louisville Gas & Electric 0 250 0 0 0 Kentucky Utilities 0 250 0 0 0 PPL Electric Utilities 0 100 0 0 0 PPL Energy Supply 303 304 (1) 354 4 403 WP
Slide 23: Liquidity Profile
© PPL Corporation 2014 23 Liquidity Profile Note: As of March 31, 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 ca
Slide 24: Reconciliation of First Quarter 2014 Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2014 24 Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings (After-Tax) (Unaudited) 1st Quarter 2014 (millions of dollars) U. K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Earnings from Ongoing Operations $
Slide 25: Reconciliation of First Quarter 2013 Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2014 25 Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings (After-Tax) (Unaudited) 1st Quarter 2013 (millions of dollars) U. K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Earnings from Ongoing Operations S
Slide 26: Reconciliation of PPL's Forecast of Earnings from Ongoing Operations
© PPL Corporation 2014 26 Reconciliation of PPL’s Forecast of Earnings from Ongoing Operations to Reported Earnings (After-Tax) (Unaudited) U.K. Regulated Earnings from Ongoing Operations $ 1.34 Special Items: Adjusted energy-related economic activity, net Foreign currency-related economic hedges (0
Slide 27: Reconciliation of Earnings from Ongoing Operations, Year-to-Date December 31, 2013
© PPL Corporation 2014 27 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (After- T ax) (Unau dited) Year-to-Date December 31, 2013 (per share - diluted) (a) U. K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Earnings from Ongoing
Slide 28: Reconciliation of Earnings from Ongoing Operations, Year-to-Date December 31, 2011
© PPL Corporation 2014 28 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (After- Tax) (Unaudited) Year-to-Date December 31, 2011 (per share - diluted) U.K. Kentucky Pennsylvania Regulated (a) Regulated Regulated Supply Total Earnings from Ongoing Operations $ 0.87 $ 0.
Slide 29: Gross Margins Summary
© PPL Corporation 2014 29 Gross Margins Summary ( Millions of Dollar s ) 2014 Three Months Ended March 31, 2013 Change Per Share Diluted (after-tax) KY Gross Margins $ 508 $ 458 $ 50 $ 0.05 Distribution Transmission Total PA Gross Delivery Margins $ $ 249 73 322 $ 224 53 $ 277 $ 25 20 $ 45 $ 0.02 0.
Slide 30: Reconciliation of First Quarter Margins to Operating Income
© PPL Corporation 2014 30 Reconciliation of First Quarter Margins to Operating Income Three Months Ended March 31, 2014 Three Months Ended March 31, 2013 (Millions of Dollars) Unregulated Unregulated Kentucky PA Gross Gross Kentucky PA Gross Gross Gross Delivery Energy Operating Gross Delivery Energ
Slide 31: Forward-looking statements and risk factors
© PPL Corporation 2014 31 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 believes th
Slide 32: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2014 32 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 performa
Slide 33: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2014 33 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