Slide 1: 3rd Quarter Investor Update
3rd Quarter Investor Update November 4, 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 acquisition of The Narragansett Electric Company (Narragansett) from National Grid, and the impact of
Slide 3: Business Update
Business Update 3rd Quarter Investor Update November 4, 2022 Vince Sorgi PPL Corporation President & Chief Executive Officer 3
Slide 4: 3rd Quarter Financial Highlights
3rd Quarter Financial Highlights ✓ Continued execution, delivered solid quarterly results • Reported Q3 2022 GAAP results of $0.24 per share; Ongoing earnings of $0.41 per share ✓ Increased midpoint of 2022 EPS forecast to $1.40 per share from $1.37 per share • Narrowed forecast range to $1.35 - $1.
Slide 5: 3rd Quarter Operational Highlights
3rd Quarter Operational Highlights ✓ Regulatory filing for generation replacement and DSM in Kentucky expected in Q4 2022 ✓ Diverse generation replacement strategy could include: (1) • Solar (combination of company-owned and PPAs) • Battery Storage (combination of company-owned and PPAs) • Combined
Slide 6: Financial Update
Financial Update 3rd Quarter Investor Update November 4, 2022 Joe Bergstein PPL Corporation Executive Vice President & Chief Financial Officer 6
Slide 7: Financial Update
Financial Update Overview of 3rd Quarter Financial Results Overview of YTD Financial Results (Earnings per share) (Earnings per share) Q3 2022 Q3 2021 YTD 2022 YTD 2021 Reported Earnings (GAAP) $0.24 $0.27 Reported Earnings (GAAP) $0.77 ($2.10) (1) Less: Special Items ($0.17) ($0.09) Less: Special I
Slide 8: Review of 3rd Quarter Financial Results
Review of 3rd Quarter Financial Results Ongoing Earnings Walk – Q3 2022 vs. Q3 2021(1) (Earnings per share) +$0.04 +$0.02 $0.41 -$0.01 +$0.01 -$0.01 $0.36 Other (2) ($0.01) PA Regulated $0.01 KY Regulated $0.01 O&M $0.01 Other (2) ($0.01) Addition $0.04 of RIE (3) 2021A Q3 PA KY RI Corp. Share 2022A
Slide 9: Increased Midpoint of 2022 Earnings Forecast
Increased Midpoint of 2022 Earnings Forecast Raised midpoint of 2022 ongoing earnings forecast to $1.40 per share and narrowed forecast range to $1.35 – $1.45 per share (1) (Earnings per share) Prior Updated 2022 Forecast 2022 Forecast $1.45 $1.45 Segment Midpoint (2) Midpoint (2) PA Regulated $0.71
Slide 10: Closing Remarks
Closing Remarks 3rd Quarter Investor Update November 4, 2022 Vince Sorgi PPL Corporation President & Chief Executive Officer 10
Slide 11: 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 12: Quarterly Supplemental Info.
Quarterly Supplemental Info. November 4, 2022 PPL Corporation – 3rd Quarter Investor Update
Slide 13: Review of YTD Financial Results
Review of YTD Financial Results Ongoing Earnings Walk – YTD 2022 vs. YTD 2021(1) (Earnings per share) +$0.05 $1.13 +$0.07 +$0.05 +$0.07 PA Regulated $0.02 Interest KY Regulated $0.03 +$0.06 Addition Expense $0.07 $0.05 $0.83 Retail Rates $0.09 of RIE (3) Peak Trans. Sales Volumes $0.01 $0.03 Demand
Slide 14: Electricity Sales Volumes
Electricity Sales Volumes 2022 retail sales vs. 2021 retail sales by operating segment (1) (GWh) Weather-Normalized Electricity Sales Volume Actual Electricity Sales Volume Pennsylvania Three Months Ended September 30, Trailing Twelve Months Ended September 30, Three Months Ended September 30, 2022
Slide 15: Debt Maturities
Debt Maturities ($ in millions) 2027 and 2022 2023 2024 2025 2026 Beyond Total PPL Capital Funding $0 $0 $0 $0 $650 $1,396 $2,046 (4) PPL Electric Utilities $0 $340 $900 $0 $0 $3,299 $4,539 (4) Louisville Gas & Electric (1) $0 $0 $300 $300 $90 $1,634 $2,324 (4) Kentucky Utilities(1) $0 $13 $300 $250
Slide 16: Liquidity Profile
Liquidity Profile ($ in millions) (2) Entity Facility Expiration Date Capacity Borrowed LCs & CP Issued Unused Capacity PPL Capital Funding Syndicated Credit Facility Dec-2026 $1,250 $0 $400 $850 Bilateral Credit Facility Mar-2023 100 0 0 100 Uncommitted Credit Facility Mar-2023 100 0 60 40 Subtotal
Slide 17: 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 18: Appendix
Appendix November 4, 2022 PPL Corporation – 3rd Quarter Investor Update
Slide 19: Our Plan Delivers 6% - 8% EPS and Dividend Growth
Our Plan Delivers 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
Slide 20: Prioritizing Efficiency and Affordability While Staying Out of Rate Cases Through at Least 2025
Prioritizing Efficiency and Affordability While Staying Out of Rate Cases Through at Least 2025 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 as
Slide 21: The PPL Electric Utilities Playbook Delivers Value for Customers and Shareowners
The PPL Electric Utilities Playbook Delivers Value for Customers and Shareowners (1) (2) Prudent Capital Investments O&M Efficiency Better Reliability: SAIFI Increased Satisfaction ($ in billions) ($ in millions) (Avg. outages per customer) (Residential satisfaction scores) 22% $448 28% $422 779 $0.
Slide 22: Our Business Transformation Strategy Will Deliver Material Cost Savings in Both Kentucky and Rhode Island
Our Business Transformation Strategy Will Deliver Material Cost Savings in Both Kentucky and Rhode Island Non-Fuel O&M/Customer for Electric T&D Businesses (1) Non-Fuel O&M/Customer for Gas T&D Businesses (1) ($ per customer) ($ per customer) TARGETING 1st TARGETING 2nd TARGETING 1st TARGETING 2nd q
Slide 23: Significant Investment Opportunities through 2030
Significant Investment Opportunities through 2030 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
Slide 24: Resulting in a More Sustainable Business Mix
Resulting in 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
Slide 25: Driving Towards a More Rapid Evolution of Our Fleet that is Economic for Customers
Driving Towards a More Rapid Evolution of Our Fleet that is Economic for Customers Reducing PPL’s Coal-fired Generation Capacity We will not burn unabated coal by (Capacity in MW) 2050 (1) We are evaluating options to 4,715 affordably and reliably accelerate the transition of our fleet to 3,706 clea
Slide 26: With an Improved Balance Sheet that Supports Organic Growth and Provides Financial Flexibility
With an Improved Balance Sheet that Supports Organic Growth and Provides Financial Flexibility One of the Sector’s Best Credit Profiles Now In-Line with Premium Peers 2024 P/E Multiple (1) Discount Valuation: Average Valuation: Premium Valuation: ✓ Baa1 rating at Moody’s 13.5x – 15.5x 15.5x – 17.5x
Slide 27: Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations – Current Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations – Current Year After-Tax (Unaudited) 3rd Quarter Year-to-Date ($ in millions) September 30, 2022 September 30, 2022 KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total Reported Earning
Slide 28: Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations – Prior Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations – Prior Year After-Tax (Unaudited) 3rd Quarter Year-to-Date ($ in millions) September 30, 2021 September 30, 2021 KY Reg. PA Reg. Corp. & Other Disc. Ops. (2) Total KY Reg. PA Reg. Corp. & Other Disc. Ops.(2) Total Repor
Slide 29: Adjusted Gross Margins Summary
Adjusted Gross Margins Summary (Unaudited) Three Months Ended September 30, (millions of dollars, except share data) Per Share Diluted 2022 2021 Change (after-tax) Kentucky Adjusted Gross Margins $ 639 $ 625 $ 14 $ 0.01 Pennsylvania Adjusted Gross Margins Distribution $ 232 $ 228 $ 4 $ 0.00 Transmis
Slide 30: Reconciliation of Adjusted Gross Margins
Reconciliation of Adjusted Gross Margins (Unaudited) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (millions of dollars) KY PA RI KY PA RI Adjusted Adjusted Adjusted Operating Adjusted Adjusted Adjusted Operating Gross Margins Gross Margins Gross Margins (1) Other (2) In
Slide 31: 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 $ 1.04 $ 1.09 $ 0.99 Less: Special Items (expense) benefit: (1) Talen litigation costs 0.01 0.01 0.01 Strategic corporate initiatives (2) (0.03) (
Slide 32: 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 33: 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 34: 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