Slide 1: 4th Quarter Investor Update
4th Quarter Investor Update February 17, 2023 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 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 4th Quarter Investor Update February 17, 2023 Vince Sorgi PPL Corporation President & Chief Executive Officer 3
Slide 4: 2022 Year in Review
2022 Year in Review Delivering value for our customers and shareowners Ranked Top Quartile in (2) ✓ Completed acquisition of Rhode Island Energy and the strategic repositioning of PPL Reliability (SAIFI) ▪ Positioned company to deliver top-tier earnings and dividend growth ▪ Established one of the b
Slide 5: 2023 Outlook and Priorities
2023 Outlook and Priorities Execute PPL’s strategy ➢ Remain on track with integration of Rhode Island Energy ➢ Complete $2.4 billion capex plan to provide safe, reliable and affordable energy to our customers ➢ Achieve $50 - $60 million in O&M savings through our utility of the future playbook, cent
Slide 6: We Want to be the Best U.S. Utility Company
We Want to be the Best U.S. Utility Company Refreshed vision and mission for OnePPL to enhance the value we deliver for all stakeholders P P L’ S V I S I O N HOW WE MEASURE SUCCESS Be the best utility company in the U.S. Top Decile in Safety Nationally P P L’ S M I S S I O N Top Quartile in Customer
Slide 7: Financial Update
Financial Update 4th Quarter Investor Update February 17, 2023 Joe Bergstein PPL Corporation Executive Vice President & Chief Financial Officer 7
Slide 8: Financial Overview
Financial Overview Overview of 4th Quarter Financial Results Overview of Annual Financial Results (Earnings per share) (Earnings per share) Q4 2022 Q4 2021 2022 2021 Reported Earnings (GAAP) $0.26 $0.18 Reported Earnings (GAAP) $1.02 ($1.93) Less: Special Items(1) ($0.02) ($0.04) Less: Special Items
Slide 9: Review of 4th Quarter Financial Results
Review of 4th Quarter Financial Results Ongoing Earnings Walk: Q4 2022 vs. Q4 2021 (1) (Earnings per share) O&M $0.01 Sales Addition of Income Taxes $0.01 $0.01 Sales Volumes $0.01 $0.03 Volumes RIE(3) Interest Transmission ($0.01) $0.01 O&M ($0.02) Expense Investment Interest Other(2) $0.02 O&M ($0
Slide 10: Review of 2022 Financial Results
Review of 2022 Financial Results Ongoing Earnings Walk: 2022 vs. 2021 (1) (Earnings per share) PA Regulated $0.03 Interest $0.08 Addition of Expense KY Regulated $0.02 $0.08 RIE(3) (2) Transmission Retail Rates $0.09 Other $0.02 $0.03 Investment Sales Peak Trans. $0.03 $0.03 Volumes Demand Sales O&M
Slide 11: Walk to Midpoint of 2023 Earnings Forecast
Walk to Midpoint of 2023 Earnings Forecast (1) Earnings Walk: 2022 ongoing earnings results to 2023 earnings forecast midpoint (Earnings per share) O&M Jan-May(2) Transmission O&M Interest Expense Investment Interest Expense O&M Interest Expense (3) Note: See Appendix for the reconciliation of repor
Slide 12: Reallocation of Kentucky Holding Company Costs
Reallocation of Kentucky Holding Company Costs Reallocation effective January 1, 2023 to provide more consistent comparability of utility segment results (Earnings Per Share) • Prior to January 1, 2023, the results of 2022 Reallocation 2022 2023 the KY Regulated segment included KY Ongoing of (1) Ad
Slide 13: Increasing Quarterly Dividend In Line with EPS Growth
Increasing Quarterly Dividend In Line with EPS Growth Quarterly dividend increased to $0.24 per share (Dividends per share) • Quarterly dividend increased to $0.24 per share from 7% Growth $0.225 per share • Payable April 3, 2023 to shareowners of record as of March 10, 2023 $0.225 $0.24 • Dividend
Slide 14: Closing Remarks
Closing Remarks 4th Quarter Investor Update February 17, 2023 Vince Sorgi PPL Corporation President & Chief Executive Officer 14
Slide 15: Investment Overview
Investment Overview February 17, 2023 PPL Corporation – 4th Quarter Investor Update
Slide 16: PPL Investment Highlights
PPL Investment Highlights A large-cap, regulated U.S. utility in constructive regulatory jurisdictions Visible and predictable 6% - 8% annual EPS and dividend growth(1) Robust $12B regulated capital investment plan from 2023 to 2026 One of the strongest balance sheets in the U.S. utility sector – no
Slide 17: Projecting 6% to 8% Earnings and Dividend Growth Through at Least 2026
Projecting 6% to 8% Earnings and Dividend Growth Through at Least 2026 Projected Earnings Per Share Projected Annualized Dividends Per Share (2) 6% - 8% 6% - 8% CAGR CAGR $1.58 $0.96 (2) 2023 2024 2025 2026 2023 2024 2025 2026 (1) Midpoint Projecting predictable, stable annual EPS growth Dividend gr
Slide 18: A Robust Capital Plan
A Robust Capital Plan Significant investment opportunities across all utilities 2023-2026 Plan: $11.9 billion ($ in billions) $3.4 $3.4 $0.9 $0.8 $2.7 $2.4 + + $0.8 $0.6 $1.5 $1.7 $1.0 $1.0 $0.9 $1.0 $1.1 $1.0 2023 2024 2025 2026 (1) PA Regulated KY Regulated RI Regulated Note: Totals may not sum du
Slide 19: Rate Base CAGR of Over 5.5% Through 2026
Rate Base CAGR of Over 5.5% Through 2026 Projected Annual Rate Base Growth (2022 – 2026) Plan CAGR (2022-2026): 5.6% (Year-end rate base, $ in billions) Rate Base Growth Improving from 4% To >7% in Back Half of Plan 7.2% CAGR 4.1% CAGR $30.1 $28.0 $25.2 $26.2 $5.3 $24.2 $4.7 $3.6 $4.1 $3.2 $12.9 $13
Slide 20: Significantly Improving PPL's Carbon Footprint
Significantly Improving PPL’s Carbon Footprint Plan is consistent with PPL’s long-term emission reduction targets with near-term tangible progress (2) Plan Aligns with Pathway to Net Zero Emissions by 2050 (1) Reduces Carbon Intensity by More Than 25% (Metric tons, in millions) (Metric tons per MWh)
Slide 21: Prioritizing Efficiency and Affordability While Staying Out of Rate Cases
Prioritizing Efficiency and Affordability While Staying Out of Rate Cases A clear path to deliver at least $175M of savings through 2026 (O&M savings, $ in millions) ✓ T&D Operations At least • Smart Grid Technology – more efficient and condition- $175M based maintenance for substation and line asse
Slide 22: Our Business Transformation Strategy Will Deliver Material Cost Savings
Our Business Transformation Strategy Will Deliver Material Cost Savings Non-Fuel O&M/Customer for Electric T&D Businesses (1) Non-Fuel O&M/Customer for Gas T&D Businesses (1) ($ per customer) ($ per customer) TARGETING 1st TARGETING 2nd TARGETING 1st TARGETING 2nd quartile for PA quartile for KY and
Slide 23: Premier Balance Sheet Supports Organic Growth and Provides Financial Flexibility
Premier Balance Sheet Supports Organic Growth and Provides Financial Flexibility One of the sector’s best credit profiles supports higher relative valuation 2024 P/E Multiple (1) Discount Valuation: Average Valuation: Premium Valuation: ✓ Premier credit ratings among peers 14.5x – 16.0x 16.0x – 18.0
Slide 24: Quarterly Supplemental Info.
Quarterly Supplemental Info. February 17, 2023 PPL Corporation – 4th Quarter Investor Update
Slide 25: 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 December 31, Trailing Twelve Months Ended December 31, Three Months Ended December 31, 2022 202
Slide 26: Capital Expenditure Plan
Capital Expenditure Plan ($ in millions) 2023 2024 2025 2026 SubTotal Pennsylvania Electric Distribution $300 $300 $300 $325 $1,225 Electric Transmission 550 675 775 650 2,650 Pennsylvania Total $850 $975 $1,075 $975 $3,875 Kentucky (1) Electric Distribution $375 $325 $300 $400 $1,400 Electric Trans
Slide 27: Projected Rate Base (Year-End)
Projected Rate Base (Year-End) (Year-end rate base, $ in billions) 2022A 2023 2024 2025 2026 Pennsylvania Electric Distribution $4.1 $4.2 $4.3 $4.3 $4.4 Electric Transmission 5.2 5.5 5.7 6.1 6.6 Pennsylvania Total $9.3 $9.7 $10.0 $10.4 $11.0 Kentucky (1) Electric Distribution $2.7 $3.0 $3.2 $3.3 $3.
Slide 28: Debt Maturities
Debt Maturities ($ in millions) 2028 and 2023 2024 2025 2026 2027 Beyond Total PPL Capital Funding $0 $0 $0 $650 $0 $1,396 $2,046 (4) PPL Electric Utilities $340 $900 $0 $0 $108 $3,191 $4,539 (4) Louisville Gas & Electric(1) $0 $300 $300 $90 $195 $1,439 $2,324 (4) Kentucky Utilities(1) $13 $300 $250
Slide 29: Liquidity Profile
Liquidity Profile ($ in millions) Ex piration LC s & C P Entity F acility C apacity Borrow ed (2) Unused C apacity Date Issued ( 2) ( 3) PPL C apital F unding Syndicated Credit Facility Dec-2026 $1,250 $0 $561 $689 Bilateral Credit Facility Mar-2023 100 0 0 100 Uncommitted Credit Facility Mar-2023 1
Slide 30: PPL's Credit Ratings
PPL’s Credit Ratings PPL Corporation Credit Rating S&P Moody’s Secured NR NR PPL Capital Funding Unsecured NR NR Credit Rating S&P Moody’s Long-term Issuer A- Baa1 Outlook Stable Stable Secured NR NR Unsecured BBB+ Baa1 Long-term Issuer A- NR Outlook Stable Stable Rhode Island Energy LG&E and KU PPL
Slide 31: Appendix
Appendix February 17, 2023 PPL Corporation – 4th Quarter Investor Update
Slide 32: Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations – Current Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations – Current Year After-Tax (Unaudited) 4th Quarter Year-to-Date ($ in millions) December 31, 2022 December 31, 2022 KY Reg. PA Reg. RI Reg. Corp. & Other Disc. Ops.(5) Total KY Reg. PA Reg. RI Reg. Corp. & Other Disc. Ops.
Slide 33: 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) 4th Quarter Year-to-Date ($ in millions) December 31, 2021 December 31, 2021 (2) KY Reg. PA Reg. Corp. & Other Disc. Ops. (2) Total KY Reg. PA Reg. Corp. & Other Disc. Ops.(2) (2)Total
Slide 34: Adjusted Gross Margins Summary
Adjusted Gross Margins Summary (Unaudited) Three Months Ended December 31, (millions of dollars, except share data) Per Share Diluted 2022 2021 Change (after-tax) Kentucky Adjusted Gross Margins $ 595 $ 571 $ 24 $ 0.02 Pennsylvania Adjusted Gross Margins Distribution $ 252 $ 229 $ 23 $ 0.02 Transmis
Slide 35: Reconciliation of Adjusted Gross Margins
Reconciliation of Adjusted Gross Margins (Unaudited) Three Months Ended December 31, 2022 Twelve Months Ended December 31, 2022 (millions of dollars) KY PA RI KY PA RI Adjusted Adjusted Adjusted Operating Adjusted Adjusted Adjusted Operating (1) (2) (3) (1) (2) (3) (2) (3) (1) (2) Gross Margins Gros
Slide 36: 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 37: 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 38: 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