Slide 1: 4th Quarter Earnings Call
© PPL Corporation 2015 4 th Quarter Earnings Call U.K. Regulated KY Regulated PA Regulated Supply PPL Corporation February 5, 2015 Exhibit 99.2
Slide 2: Cautionary Statements and Factors That May Affect Future Results
© PPL Corporation 2015 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 2015 3 2014 Earnings Results, Operational Overview and 2015 Earnings Forecast Segment Results and Financial Overview Q&A W. H. Spence V. Sorgi Agenda
Slide 4: Earnings Results
© PPL Corporation 2015 4 Earnings Results
Slide 5: 2015 Ongoing Earnings Forecast
© PPL Corporation 2015 5 Segment 2014A 2014 Regulated Utility Earnings (Adjusted) 2015E Midpoint (1) U.K. Regulated $1.37 $1.37 $1.38 Kentucky Regulated 0.47 0.47 0.48 PA Regulated 0.40 0.40 0.39 Supply 0.29 ---- ---- Corporate and Other (2) (0.08) (0.21) (0.10) Total $2.45 $2.03 $2.15 $2.05 2015 On
Slide 6: 2014 Regulated Operational Overview
© PPL Corporation 2015 6 • WPD named Utility of the Year • Update on Kentucky Rate Cases • Update on Major Capital Projects 2014 Regulated Operational Overview
Slide 7: U.S. Regulated Volume Variances
© PPL Corporation 2015 7 Weather-Normalized (charted) 0.1% 1.5% 1.1% 0.8% 0.3% 0.8% 1.0% 0.7% Actual -4.1% -0.1% 1.1% -1.6% 0.6% 0.9% 1.0% 0.7% Note: Total includes Residential, Commercial and Industrial customer classes as well as “Other”, which is not depicted on the charts above. U.S. Regulated V
Slide 8: 2014 Supply Operational Overview
© PPL Corporation 2015 8 2014 Supply Operational Overview • Montana hydro sale complete • Strong 2014 fleet performance • Energy Supply spin update
Slide 9: 2015 Objectives/Highlights
© PPL Corporation 2015 9 • Energy Supply spin expected to close in Q2 • WPD focused on executing plan for RIIO-ED1 • LG&E and KU rate cases • PA rate case • Execution of $3.6 billion capex program across the regulated portfolio • Corporate restructuring 2015 Objectives/Highlights
Slide 10: Ongoing Earnings Overview
© PPL Corporation 2015 10 Q4 2014 Q4 2013 Change U.K. Regulated $0.36 $0.30 $0.06 Kentucky Regulated 0.10 0.12 (0.02) Pennsylvania Regulated 0.10 0.07 0.03 Supply 0.05 0.13 (0.08) Corporate and Other (0.03) (0.02) (0.01) Total $0.58 $0.60 $(0.02) 2014 2013 Change U.K. Regulated $1.37 $1.32 $0.05 Ken
Slide 11: U.K. Regulated Segment Earnings Drivers
© PPL Corporation 2015 11 Year-to-Date 2013 EPS - Ongoing Earnings $1.32 Utility revenue 0.11 O&M 0.05 Depreciation (0.02) Income taxes (0.06) Other (0.03) Total 0.05 2014 EPS - Ongoing Earnings $1.37 U.K. Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of reported earni
Slide 12: Kentucky Regulated Segment Earnings Drivers
© PPL Corporation 2015 12 Year-to-Date 2013 EPS - Ongoing Earnings $0.48 Gross margins 0.07 O&M (0.03) Depreciation (0.01) Financing costs (0.01) Other (0.03) Total (0.01) 2014 EPS - Ongoing Earnings $0.47 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of repor
Slide 13: Pennsylvania Regulated Segment Earnings Drivers
© PPL Corporation 2015 13 Year-to-Date 2013 EPS - Ongoing Earnings $0.31 Gross delivery margins 0.10 O&M 0.01 Depreciation (0.01) Financing costs (0.01) Total 0.09 2014 EPS - Ongoing Earnings $0.40 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of reported
Slide 14: Supply Segment Earnings Drivers
© PPL Corporation 2015 14 Year-to-Date 2013 EPS - Ongoing Earnings $0.39 East energy margins (0.15) Financing costs 0.03 Income taxes and other 0.02 Total (0.10) 2014 EPS - Ongoing Earnings $0.29 Supply Segment Earnings Drivers Note: See Appendix for the reconciliation of reported earnings (loss) to
Slide 15: 2014 Ongoing Earnings to 2014 Regulated Utility Ongoing Earnings (Adjusted) Walk
© PPL Corporation 2015 15 Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations to regulated utility earnings from ongoing operations (adjusted). 2014 Ongoing Earnings to 2014 Regulated Utility Ongoing Earnings (Adjusted) Walk
Slide 16: 2014 Regulated Utility Ongoing Earnings (Adjusted) to 2015E Earnings Walk
© PPL Corporation 2015 16 2014 Regulated Utility Ongoing Earnings (Adjusted) to 2015E Earnings Walk Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations to regulated utility earnings from ongoing operations (adjusted). ($ Per Share) Revenue: ($.14
Slide 17: Free Cash Flow before Dividends
© PPL Corporation 2015 17 2013A 2014A 2015E Cash from Operations (1) $ 2,857 $ 3,403 $ 2,486 Increase (Decrease) in cash due to: Capital Expenditures (4,307) (4,185) (3,611) Sale of Assets (2) 900 Free Cash Flow before Dividends $ (1,450) $ 118 $ (1,125) Free Cash Flow before Dividends Free Cash Flo
Slide 18: Operating Segment Capital Expenditures
© PPL Corporation 2015 18 ($ in billions) Note: Corporate and Other capital expenditures average approximately $10 million per year. (1) WPD figures based on assumed exchange rate of $1.60 / GBP. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experienc
Slide 19: Projected Regulated Rate Base Growth
© PPL Corporation 2015 19 ($ 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) WPD figures based on assumed exchange rate of $1.60 / £ for 2015 - 2019. 5-Year Regulatory Asset Base (1)
Slide 20: Targeted 4% to 6% EPS Growth Rate Drivers
© PPL Corporation 2015 20 Targeted 4% to 6% EPS Growth Rate Drivers Through 2017 PA Regulated – Successful execution of capex plan – 2015 Rate Case with rates effective early 2016 – Minimal load growth KY Regulated – Environmental capex spending at $1.3B – 2014 Rate Case with rates effective mid-201
Slide 21: Foreign Currency Hedging Status
© PPL Corporation 2015 21 Foreign Currency Hedging Status 2015 2016 Percentage Hedged Hedged Rate (GBP/USD) Budgeted Rate on Open Position (GBP/USD) EPS Sensitivities: Decrease in Rate (GBP/ USD) 0.05 0.10 97% 70% $ 1.63 $ 1.61 $ 1.60 $ 1.60 Change in EPS $ 0.00 ($ 0.01) $ 0.00 ($ 0.03) © PPL Corpor
Slide 22: Historical view of GBP Exchange Rate
© PPL Corporation 2015 22 Historical view of GBP Exchange Rate Source: Bloomberg, as of 1/31/2015
Slide 23: Appendix
© PPL Corporation 2015 23 Appendix
Slide 24: Schedule for LG&E and KU Rate Case
© PPL Corporation 2015 24 Timing Milestone 01/08/2015 1 st Request for information received 01/23/2015 LG&E and KU responses filed 02/06/2015 Supplemental request for information received 02/20/2015 LG&E and KU responses filed 03/06/2015 Intervenor testimony filed 03/23/2015 Requests to intervenors
Slide 25: U.K. Regulated Segment EPS from Ongoing Operations Projection
© PPL Corporation 2015 25 U.K. Regulated Segment EPS from Ongoing Operations Projection Note: Assumes foreign currency exchange rate of $1.60/£ for 2015E and 2016E on open positions. ($ Per Share) Note: See Appendix for the 2014 reconciliation of reported earnings (loss) to earnings from ongoing ope
Slide 26: ($ in millions)
© PPL Corporation 2015 26 Note: Assumes foreign currency exchange rate of $1.60/£ for 2015E and 2016E. ($ in millions)
Slide 27: Enhancing Value Through Active Hedging
© PPL Corporation 2015 27 Enhancing Value Through Active Hedging 2015 2016 Baseload Expected Generation(1) (Million MWhs) 49.7 45.4 East 45.4 41.6 West 4.3 3.9 Current Hedges ( % ) 97- 99% 24- 26% East 98-100% 21- 23% West 87-89% 48-50% Average Hedged Price ( Energy Only) ($ / MWh) (2) East $ 40- 42
Slide 28: Competitive Generation Overview
© PPL Corporation 2015 28 Competitive Generation Overview Note: As of December 31, 2014 (1) Includes owned and contracted generation. (2) Other includes PPAs, renewables and NUGS. (2) Total 2014 generation output ( 1) consistent with prior year due to improved gas performance offset by lower economi
Slide 29: Market Prices
© PPL Corporation 2015 29 (1) Hourly average. (2) NYMEX and TETCO M3 forward gas prices on 12/31/2014. (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 M W D) HEA
Slide 30: Debt Maturities
© PPL Corporation 2015 30 Debt Maturities ($ in millions) 2015 2016 2017 2018 2019 PPL Capital Funding $ 0 $ 0 $ 0 $ 249 $ 0 LG& E and KU Energy ( Holding Co LKE) 400 0 0 0 0 Louisville Gas & Electric (1) 250 25 194 98 40 Kentucky Utilities 250 0 0 0 0 PPL Electric Utilities 100 0 0 0 0 WPD 0 460 10
Slide 31: Liquidity Profile
© PPL Corporation 2015 31 Liquidity Profile Entity Facility Expiration Date Capacity ( Millions) Letters of Credit & Commercial Paper Issued ( Millions) Borrowed ( Millions) Unused Capacity ( Millions) PPL Capital Funding Syndicated Credit Facility Syndicated Credit Facility Bilateral Credit Facilit
Slide 32: 4th Quarter 2014 Reconciliation of Reported to Ongoing Earnings
© PPL Corporation 2015 32 (After-Tax) (Unaudited) 4th Quarter 2014 (millions of dollars) U.K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Reported Earnings (Loss) $ 294 $ 65 $ 69 $ 291 $ (24) $ 695 Special Items (expense) benefit: Adjusted energy-related econ
Slide 33: Year-to-Date December 31, 2014 Reconciliation (millions of dollars)
© PPL Corporation 2015 33 (After-Tax) (Unaudited) Year-to-Date December 31, 2014 (millions of dollars) U.K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Reported Earnings (Loss) $ 982 $ 312 $ 263 $ 307 $ (127) $ 1,737 Special Items (expense) benefit: Adjusted
Slide 34: Year-to-Date December 31, 2014 Reconciliation (per share)
© PPL Corporation 2015 34 (After-Tax) (Unaudited) Year-to-Date December 31, 2014 (per share - diluted) (a) U.K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Reported Earnings (Loss) $ 1.48 $ 0.47 $ 0.39 $ 0.46 $ (0.19) $ 2.61 Special Items (expense) benefit: A
Slide 35: 4th Quarter 2013 Reconciliation of Reported to Ongoing Earnings
© PPL Corporation 2015 35 (After-Tax) (Unaudited) 4th Quarter 2013 (millions of dollars) U.K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Reported Earnings (Loss) $ 181 $ 80 $ 49 $ (394) $ (14) $ (98) Special Items (expense) benefit: Adjusted energy-related e
Slide 36: Year-to-Date December 31, 2013 Reconciliation (millions of dollars)
© PPL Corporation 2015 36 (After-Tax) (Unaudited) Year-to-Date December 31, 2013 (millions of dollars) U.K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Reported Earnings (Loss) $ 922 $ 307 $ 209 $ (272) $ (36) $ 1,130 Special Items (expense) benefit: Adjusted
Slide 37: Gross Margins Summary
© PPL Corporation 2015 37 Gross Margins Summary ( Millions of Dollars) 2014 Twelve Months Ended December 31, 2013 Change Per Share Diluted (after- tax) KY Gross Margins $ 1,838 $ 1,760 $ 78 $ 0.07 Distribution Transmission Total PA Gross Delivery Margins $ 837 335 1,172 $ 803 251 $ 1,054 $ 34 84 $
Slide 38: Reconciliation of Year-to-Date Margins to Operating Income
© PPL Corporation 2015 38 Reconciliation of Year- to- Date Margins to Operating Income Twelve Months Ended December 31, 2014 Twelve Months Ended December 31, 2013 (Millions of Dollars) Unregulated Unregulated Kentucky PA Gross Gross Kentucky PA Gross Gross Gross Delivery Energy Operating Gross Deliv
Slide 39: Forward-looking statements and risk factors
© PPL Corporation 2015 39 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 40: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2015 40 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 41: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2015 41 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