Slide 1: PPL Corporation 3rd Quarter Earnings
Exhibit 99.2 PPL Corporation 3 rd Quarter Earnings November 4, 2014
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 Third Quarter Earnings Results, Operational Overview and 2014 Earnings Forecast Segment Results and Financial Overview Q&A W. H. Spence V. Sorgi Agenda
Slide 4: Earnings Results
© PPL Corporation 2014 4 Earnings Results
Slide 5: Increasing 2014 Ongoing Earnings Forecast
© PPL Corporation 2014 5 Segment 2013 (Ongoing) Previous 2014E Ongoing Midpoint Revised 2014E Ongoing Midpoint U.K. Regulated $1.32 $1.35 $1.38 Kentucky Regulated 0.48 0.45 0.45 PA Regulated 0.31 0.39 0.39 Supply 0.39 0.17 0.24 Corporate and Other (0.05) (0.06) (0.04) Total $2.45 $2.30 $2.42 $2.20 $
Slide 6: Regulated Operational Overview
© PPL Corporation 2014 6 • U.K. Regulated segment bonus revenues – $130 million expected for regulatory year ending 3/31/2014 • Kentucky rate case announced • Compass Transmission Project update – Meetings initiated with key stakeholders Regulated Operational Overview
Slide 7: LG&E and KU Rate Case Facts
© PPL Corporation 2014 7 LG&E KU Electric Gas Electric Revenue Increase Requested $30 million $14 million $153 million Test Year 12-months ended 6/30/2016 12-months ended 6/30/2016 12-months ended 6/30/2016 Requested ROE 10.5% 10.5% 10.5% Jurisdictional Capitalization $2.1 billion $0.5 billion $3.6
Slide 8: Regulated Volume Variances
© PPL Corporation 2014 8 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 9: Supply Operational Overview
© PPL Corporation 2014 9 • Energy Supply spin/separation activities – On track to achieve $155 million of synergies • Montana hydro sale update – Approvals received from Montana PSC and FERC • Susquehanna update • 3Q operations review Supply Operational Overview
Slide 10: Ongoing Earnings Overview
© PPL Corporation 2014 10 Q3 2014 Q3 2013 Change U.K. Regulated $0.28 $0.31 $(0.03) Kentucky Regulated 0.12 0.14 (0.02) Pennsylvania Regulated 0.08 0.08 - Supply 0.07 0.14 (0.07) Corporate and Other (0.01) (0.01) - Total $0.54 $0.66 $(0.12) Ongoing Earnings Overview Note: See Appendix for the reconc
Slide 11: U.K. Regulated Segment Earnings Drivers
© PPL Corporation 2014 11 3 rd Quarter 2013 EPS - Ongoing Earnings $0.31 Utility revenue 0.02 O&M 0.01 Depreciation (0.01) Financing (0.01) Income taxes and other (0.04) Total (0.03) 2014 EPS - Ongoing Earnings $0.28 U.K. Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation o
Slide 12: Kentucky Regulated Segment Earnings Drivers
© PPL Corporation 2014 12 3 rd Quarter 2013 EPS - Ongoing Earnings $0.14 O&M (0.01) Interest Expense (0.01) Total (0.02) 2014 EPS - Ongoing Earnings $0.12 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.
Slide 13: Pennsylvania Regulated Segment Earnings Drivers
© PPL Corporation 2014 13 3 rd Quarter 2013 EPS - Ongoing Earnings $0.08 Gross delivery margins 0.01 Income taxes and other (0.01) Total - 2014 EPS - Ongoing Earnings $0.08 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations t
Slide 14: Supply Segment Earnings Drivers
© PPL Corporation 2014 14 3 rd Quarter 2013 EPS - Ongoing Earnings $0.14 East energy margins (0.12) O&M 0.01 Income taxes and other 0.04 Total (0.07) 2014 EPS - Ongoing Earnings $0.07 Supply Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations to rep
Slide 15: Increasing 2014 Ongoing Earnings Forecast
© PPL Corporation 2014 15 Segment 2013 (Ongoing) Previous 2014E Ongoing Midpoint Revised 2014E Ongoing Midpoint U.K. Regulated $1.32 $1.35 $1.38 Kentucky Regulated 0.48 0.45 0.45 PA Regulated 0.31 0.39 0.39 Supply 0.39 0.17 0.24 Corporate and Other (0.05) (0.06) (0.04) Total $2.45 $2.30 $2.42 $2.20
Slide 16: Appendix
© PPL Corporation 2014 16 Appendix
Slide 17: Dividend Profile
© PPL Corporation 2014 17 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 18: Projected Capital Expenditures
© PPL Corporation 2014 18 (1) Figures based on assumed exchange rate of $1.67 / £. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience and future projections. (3) Excludes projected capex related to proposed Compass Project. (1) (2) $4.19 $3.79 $
Slide 19: Projected Regulated Rate Base Growth
© PPL Corporation 2014 19 Projected Regulated Rate Base Growth ($ in billions) (2) 5-Year Regulatory Asset Base (1) CAGR: 6.3% $ 21.3 $ 23.2 $ 24.8 $ 26.4 $ 27.6 $ 29.0 (1) Represents capitalization for LKE, as LG&E and KU rate constructs are based on capitalization. Represents Regulatory Asset Valu
Slide 20: Energy Supply Hedge Update
© PPL Corporation 2014 20 Energy Supply Hedge Update Capacity revenues (3) are expected to be $560, $505 and $455 million for 2014, 2015 and 2016 respectively. Note: As of September 30, 2014 Includes PPL Montana's hydroelectric facilities through the 3 rd quarter of 2014. On September 26, 2013, PPL
Slide 21: Competitive Generation Overview
© PPL Corporation 2014 21 Competitive Generation Overview Note: Includes owned and contracted generation. As of September 30, 2014 (1) Other includes PPAs, renewables and NUGS. (1)
Slide 22: Market Prices
© PPL Corporation 2014 22 (1) 24-hour average. (2) NYMEX and TETCO M3 forward gas prices on 9/30/2014. (3) Market Heat Rate = PJM on-peak power price divided by TETCO M3 gas price. Market Prices
Slide 23: Debt Maturities
© PPL Corporation 2014 23 Debt Maturities Note: As of September 30, 2014 (1) This amount includes $81 million of Pennsylvania Economic Development Financing Authority bonds due 2037 and $150 million of Pennsylvania Economic Development Financing Authority bonds due 2038 that may be put by the holder
Slide 24: Liquidity Profile
© PPL Corporation 2014 24 Liquidity Profile Note: As of September 30, 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
Slide 25: Reconciliation of Third Quarter 2014 Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2014 25 Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings (After Tax) (Unaudited) 3rd Quarter 2014 Earnings from Ongoing Operations Special Items: Adjusted energy-related economic activity, net Foreign currency-related economic hedges Spinoff of
Slide 26: Reconciliation of Third Quarter 2013 Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2014 26 Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings ( After Tax) ( Unaudited) 3rd Quarter 2013 (millions of dollars) U.K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Earnings from Ongoing Operations
Slide 27: Reconciliation of Year-to-Date 2014 Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2014 27 Reconciliation of Year- to- date Earnings from Ongoing Operations to Reported Earnings ( After Tax) (Unaudited) Year- to- Date September 30, 2014 (millions of dollars) U.K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Earnings from On
Slide 28: Reconciliation of Year-to-Date 2013 Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2014 28 Reconciliation of Year- to- date Earnings from Ongoing Operations to Reported Earnings ( After Tax) (Unaudited) Year-to-Date September 30, 2013 (millions of dollars) U.K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Earnings from Ongo
Slide 29: Reconciliation of PPL's Forecast of Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2014 29 Reconciliation of PPL’s Forecast of Earnings from Ongoing Operations to Reported Earnings ( After- Tax) ( Unaudited) Earnings from Ongoing Operations Special Items: Adjusted energy-related economic activity, net Foreign currency-related economic hedges Kerr Dam Project impa
Slide 30: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2014 30 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings
Slide 31: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2014 31 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (a) WPD Midlands' results are consolidated on a one-month lag, and include eight months of results in 2011, as the date of acquisition was April 1, 2011.
Slide 32: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2014 32 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings
Slide 33: Gross Margins Summary
© PPL Corporation 2014 33 Gross Margins Summary
Slide 34: Reconciliation of Third Quarter Margins to Operating Income
© PPL Corporation 2014 34 Reconciliation of Third Quarter Margins to Operating Income
Slide 35: Forward-looking statements and risk factors
© PPL Corporation 2014 35 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 36: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2014 36 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 37: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2014 37 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