Ppl Corporation · NYSE:PPL
Ppl — Investor Presentation (June 2012)
24 slides from Ppl's investor presentation, Jun 1, 2012
Slide 1: PPL Corporation June 4-5, 2012
Exhibit 99.1 June 4-5, 2012 ©PPL Corporation 2012 1
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: PPL Well-Positioned for Future Success
PPL Well-Positioned for Future Success Increased mix of rate-regulated earnings provides stability in weak economic environment Approximately 70% of projected 2012 EPS from regulated businesses Substantial organic growth in rate base: ~8% CAGR from 2012-2016 Business Risk Profile rated “Excellent” b
Slide 4: U.K. Regulated Segment Investment Highlights
U.K. Regulated Segment Investment Highlights Highly attractive rate-regulated business with significant growth prospects Regulator-approved 5-year forward-looking revenues based on future business plan, including capital expenditures and O&M plus adjustments for inflation Real-time return of and ret
Slide 5: Kentucky Regulated Segment Investment Highlights
Kentucky Regulated Segment Investment Highlights Efficient, well-run utility focused on safety, reliability and customer service Projected rate base CAGR of 9.6% through 2016 Constructive regulatory environment that provides a timely return on a substantial amount of planned capex over the next 5 ye
Slide 6: Pennsylvania Regulated Segment Investment Highlights
Pennsylvania Regulated Segment Investment Highlights Significant growth in transmission portion of business which earns a favorable rate of return on a near real-time basis CAGR of 22.3% in transmission rate base through 2016 driven by initiatives to improve aging infrastructure and Susquehanna-Rose
Slide 7: Supply Segment Investment Highlights
Supply Segment Investment Highlights Very well-positioned competitive generation PJM assets: Low marginal cost nuclear and hydro facilities Efficient supercritical coal units with fuel switching optionality Attractive gas-fired assets that capture market opportunity and back-stop base load unit avai
Slide 8: Reaffirmed 2012 Ongoing Earnings Forecast
Reaffirmed 2012 Ongoing Earnings Forecast $/Share $2.73 $2.45 $2.15 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. ©PPL Corporation 2012 8
Slide 9: Dividend Profile
Dividend Profile A significantly more rate-regulated business mix provides strong support for current dividend and a platform for future growth $/Share Annualized (2) (1) (1) Ongoing EPS based on mid-point of forecast. Annualized dividend based on 1st quarter declaration. Actual dividends to be dete
Slide 10: Appendix
Appendix ©PPL Corporation 2012 10
Slide 11: Midlands Integration - Improved Network Performance
Midlands Integration - Improved Network Performance Customer Minutes Lost 25.9% Improvement 39.7% Improvement Customer Interruptions (per 100 customers) 21.6% Improvement 96% Improvement ©PPL Corporation 2012 11
Slide 12: U.K. Electricity Distribution Price Control Review
U.K. Electricity Distribution Price Control Review RIIO-ED1 Tentative Schedule Provisional Milestone Timing September 2012 Publication of Strategy Consultation February 2013 Publication of Strategy Decision End May 2013 DNOs submit business plans September 2013 Publication of Initial Assessment of c
Slide 13: 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 = ~$23 million in revenue Docket No. R-2012-2290597 Complete filin
Slide 14: Enhancing Value Through Active Hedging
Enhancing Value Through Active Hedging 2012 2013 Baseload Expected Generation(1) (Million MWhs) 51.5 53.1 East 43.5 44.8 West 8.0 8.3 Current Hedges (%) 94-98% 79-83% East 96-100% 82-86% West 82-86% 65-69% Average Hedged Price (Energy Only) ($/MWh)(2) (3) East $54-55 $49-51 West $50-52 $46-49 Curren
Slide 15: Market Prices
Market Prices (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices on 3/30/2012. (3) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price. ©PPL Corporation 2012 15 Forward(1) Balance of 2012 2013 2014 ELECTRIC PJM On-Peak $39 $44 $45 Off-Peak $27 $32 $33 ATC(1) $32 $37 $39
Slide 16: Capital Expenditures
Capital Expenditures ($ in billions) $4.2 $4.1 $3.8 $3.7 $2.9 (1) (2) (1) Includes capex for WPD Midlands. Figures based on assumed exchange rate of $1.57 / GBP. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience and future projections. ©PPL Cor
Slide 17: Projected Regulated Rate Base Growth
Projected Regulated Rate Base Growth ($ in billions) 2012E - 2016E Regulatory Asset Base(1) CAGR: 7.9% $25.2 $25.8 $23.5 $21.3 $18.9 $17.6 (2) (1) Represents capitalization for LKE, as LG&E and KU rate constructs are based on capitalization. Represents Regulatory Asset Value (RAV) for WPD. (2) Inclu
Slide 18: Free Cash Flow before Dividends
Free Cash Flow before Dividends Free Cash Flow before Reconciliation of Cash from Dividends Operations to Free Cash Flow (Millions of Dollars) before Dividends (Millions of dollars) (1) (1) 2010 Free Cash Flow includes two months of the results of the Kentucky Regulated segment. ©PPL Corporation 201
Slide 19: Debt Maturities
Debt Maturities Note: As of March 31, 2012 (1) Excludes $1.15 billion of junior subordinated notes due 2018 that are a component of PPL’s 2010 Equity Units and may be put back to PPL Capital Funding if the remarketing in 2013 is not successful. (2) Excludes $978 million of junior subordinated notes
Slide 20: Liquidity Profile
Liquidity Profile (1) (1) Note: As of March 31, 2012 • Credit facilities consist of a diverse bank group, with no bank and its affiliates providing an aggregate commitment of more than 9% of the total committed capacity for the domestic facilities and 17% of the total committed capacity for WPD’s fa
Slide 21: 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 21 (Per Share - Diluted) Forecast Actual High Low 2012 2012 2011 2010 Earnings from Ongoing Operations $ 2.45 $ 2.15 $ 2.73 $ 3.13 Special Items: Adjusted energy-related economic activity, net 0.26 0.
Slide 22: 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 23: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures “Earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAA
Slide 24: 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