Slide 1: 4th Quarter 2023 Investor Update
PPL CORPORATION 4th Quarter 2023 Investor Update February 16, 2024
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 2023 INVESTOR UPDATE Vince Sorgi President & Chief Executive Officer February 16, 2024 3
Slide 4: 2023 Review: Challenges Met, Promises Kept
2023 Review: Challenges Met, Promises Kept Executed our strategy and achieved each priority set for the year ✓ Delivered electricity and natural gas safely and reliably to our more than 3.5 million customers • Achieved first quartile T&D reliability and first decile generation fleet performance (1)(
Slide 5: Forward Outlook Remains Strong
Forward Outlook Remains Strong Business plan update extends growth targets through 2027 ➢ Announced 2024 EPS forecast range of $1.63 - $1.75 per share with a midpoint of $1.69 per share • Midpoint reflects 7.0% growth from midpoint of 2023 ongoing EPS target, in line with targeted growth rate • Anno
Slide 6: Our Strategy: Creating Utilities of the Future
Our Strategy: Creating Utilities of the Future Focused on delivering value for BOTH customers AND shareowners Enhance reliability and resiliency of our electric and gas networks through innovation and strategic investments Advance a cleaner energy transition affordably and reliably for our customers
Slide 7: The Right Strategy for a Changing Energy Landscape
The Right Strategy for a Changing Energy Landscape Focused on supporting the growth and decarbonization of our economy The U.S. has set Achieving this We will need to reliably Success will require a goal of will require economy- meet this demand while faster net-zero CO2 emissions wide decarbonizati
Slide 8: 2024 Outlook and Priorities
2024 Outlook and Priorities Continue to deliver on PPL’s vision, mission, and strategy ➢ Continue to execute our strategy to build the “Utilities of the Future” and enhance value for all stakeholders ➢ Achieve at least the midpoint of the 2024 earnings forecast range of $1.69 per share, aligned with
Slide 9: Financial Update
Financial Update 4TH QUARTER 2023 INVESTOR UPDATE Joe Bergstein Executive Vice President & Chief Financial Officer February 16, 2024 9
Slide 10: Financial Overview
Financial Overview Overview of 4th Quarter Financial Results Overview of Annual Financial Results (Earnings per share) (Earnings per share) Q4 2023 Q4 2022 2023 2022 Reported Earnings (GAAP) $0.15 $0.26 Reported Earnings (GAAP) $1.00 $1.02 Less: Special Items ($0.25) ($0.02) Less: Special Items ($0.
Slide 11: Review of 4th Quarter Financial Results
Review of 4th Quarter Financial Results Ongoing Earnings Walk: Q4 2023 vs. Q4 2022 (Earnings per share) Rider Revenue +$0.02 Income Taxes +$0.01 Interest Expense ($0.01) O&M ($0.01) O&M +$0.08 Other(1) +$0.01 O&M +$0.05 Sales Volumes ($0.02) (Primarily Weather) Transmission +$0.02 Revenue Sales Volu
Slide 12: Delivering Strong, Sustainable Growth
Delivering Strong, Sustainable Growth Exceeded midpoint of growth target in 2023; extended growth through 2027 (Earnings per share) 6% - 8% CAGR Achieved $1.60 (8.1% growth) Extended 7% Growth growth rate 7% through 2027 Growth (1) (2) (3) (1) Represents the midpoint of PPL’s 2022 pro forma forecast
Slide 13: Walk to Midpoint of 2024 Earnings Forecast
Walk to Midpoint of 2024 Earnings Forecast Projected drivers of annual ongoing EPS change: 2023A to 2024 forecast midpoint (Earnings per share) Sales Volumes Rider Revenue Transmission Investment (Primarily Weather) Interest Expense O&M Sales Volumes Other(3) Depreciation O&M Distr
Slide 14: 2024 – 2027 Capital Investment Plan
2024 – 2027 Capital Investment Plan $14.3 billion of projected capital investments that deliver value for customers ($ in billions) Notable Plan Updates: 4-year plan is $2.4 billion higher than prior 4-year plan ➢ Approximately $1 billion increase in 2024 – 2026 period, compared to prior capital pla
Slide 15: Rate Base CAGR Increased to 6.3% Through 2027
Rate Base CAGR Increased to 6.3% Through 2027 Projected Annual Rate Base Growth (2023 – 2027) (1) (Year-end rate base, $ in billions) +6.3% CAGR ➢ Rate base growth increases to 6.3% over plan vs. 5.6% in prior plan period ➢ Two-thirds of rate base relates to investments in electric transmission and
Slide 16: Increasing Quarterly Dividend In Line with EPS Growth
Increasing Quarterly Dividend In Line with EPS Growth Quarterly dividend increased to $0.2575 per share (Dividends per share) >7% ➢ Announced 7.3% increase to PPL’s quarterly Growth dividend to $0.2575 per share (from $0.24) • Annualized dividend now $1.03 per share (2) ➢ Payable April 1, 2024 to sh
Slide 17: Credit and Financing Plan Update
Credit and Financing Plan Update Plan maintains strong credit metrics without the need for equity issuances ➢ Updated plan supports credit metric targets PPL’s Debt Maturity Outlook • 16% - 18% FFO/CFO to debt throughout plan ($ in millions) • Holding company debt projected to remain less than 25% o
Slide 18: Closing Remarks
Closing Remarks 4TH QUARTER 2023 INVESTOR UPDATE Vince Sorgi President & Chief Executive Officer February 16, 2024 18
Slide 19: PPL Investment Highlights
PPL Investment Highlights Large-cap, regulated U.S. utility operating in constructive regulatory jurisdictions • Principal electric/gas utilities serving Kentucky, Pennsylvania, and Rhode Island • Highlighted by future test years in each jurisdiction, FERC formula rates and real-time recovery mechan
Slide 20: Quarterly Supplemental Information
Quarterly Supplemental Information 4TH QUARTER 2023 INVESTOR UPDATE February 16, 2024
Slide 21: Review of 2023 Financial Results
Review of 2023 Financial Results Ongoing Earnings Walk: 2023 vs. 2022 (Earnings per share) Income Taxes +$0.02 (2) Transmission O&M +$0.14 Addition of RIE +$0.12 Revenue +$0.06 O&M +$0.01 Sales Volumes Distribution ($0.10) (Primarily Weather) Interest Expense ($0.03) Rider Recovery(1) +$0.05 Interes
Slide 22: Electricity Sales Volumes
Electricity Sales Volumes 2023 retail sales vs. 2022 retail sales by operating segment (1) (GWh) Weather-Normalized Electricity Sales Volume Actual Electricity Sales Volume Annual EPS Sensitivity Pennsylvania Three Months Ended Dec. 31, Trailing Twelve Months Ended Dec. 31, Three Months Ended Dec. 3
Slide 23: Capital Expenditure Plan
Capital Expenditure Plan ($ in millions) 2024 2025 2026 2027 4-Year Total Pennsylvania Electric Distribution $500 $425 $400 $425 $1,750 Electric Transmission $675 $800 $825 $725 $3,025 Pennsylvania Total $1,175 $1,225 $1,225 $1,150 $4,775 Kentucky Electric Distribution $325 $400 $400 $350 $1,475 Ele
Slide 24: Projected Rate Base (Year-End)
Projected Rate Base (Year-End) (Year-end rate base, $ in billions) 2023 2024 2025 2026 2027 Pennsylvania Electric Distribution $4.3 $4.6 $4.7 $4.9 $5.0 Electric Transmission $5.5 $5.8 $6.1 $6.6 $6.9 Pennsylvania Total $9.8 $10.3 $10.9 $11.4 $11.9 Kentucky Electric Distribution $3.0 $3.2 $3.5 $3.8 $4
Slide 25: Debt Maturities
Debt Maturities ($ in millions) 2024 2025 2026 2027 2028 2029+ Total PPL Capital Funding $0 $0 $650 $0 $1,000 $1,396 $3,046 PPL Electric Utilities $0 $0 $0 $108 $0 $4,541 $4,649 Louisville Gas & Electric(1) $0 $300 $90 $260 $0 $1,839 $2,489 Kentucky Utilities(1) $0 $250 $164 $60 $0 $2,615 $3,089 Rho
Slide 26: Liquidity Profile
Liquidity Profile ($ in millions) Entity Facility Expiration Date Capacity Borrowed LCs & CP Issued (1)(2) Unused Capacity (3) PPL Capital Funding Syndicated Credit Facility Dec-2027 $1,250 $0 $390 $860 Bilateral Credit Facility Mar-2024 $100 $0 $0 $100 Uncommitted Credit Facility Mar-2024 $100 $0 $
Slide 27: 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 28: Pennsylvania Regulatory Overview
Pennsylvania Regulatory Overview PPL Electric Utilities Key Attributes Constructive Features Mitigating Regulatory Lag 2023 Rate Base Year-End Rate Base ($B) $9.8 ✓ FERC Formula Transmission Rates % of Total PPL Rate Base 38% ✓ Distribution System Improvement Charge (DSIC) ▪ An alternative ratemakin
Slide 29: Kentucky Regulatory Overview
Kentucky Regulatory Overview Louisville Gas & Electric and Kentucky Utilities Key Attributes Constructive Features Mitigating Regulatory Lag 2023 Rate Base ✓ Environmental Cost Recovery (ECR) Surcharge Year-End Rate Base ($B) $11.9 ▪ Provides near real-time recovery for approved environmental projec
Slide 30: Rhode Island Regulatory Overview
Rhode Island Regulatory Overview Rhode Island Energy Key Attributes Constructive Features Mitigating Regulatory Lag 2023 Rate Base ✓ Multi-year rate plans for electric and gas distribution Year-End Rate Base ($B) $3.7 % of Total PPL Rate Base 15% ✓ Infrastructure, Safety, and Reliability (ISR) track
Slide 31: Appendix
Appendix 4TH QUARTER 2023 INVESTOR UPDATE February 16, 2024
Slide 32: Reconciliation of Segment Reported Earnings to Ongoing Earnings – Current Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations – Current Year After-Tax (Unaudited) Three Months Ended December 31, 2023 Twelve Months Ended December 31, 2023 ($ in millions) KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total Repo
Slide 33: Reconciliation of Segment Reported Earnings to Ongoing Earnings – Prior Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations – Prior Year After-Tax (Unaudited) Three Months Ended December 31, 2022 Twelve Months Ended December 31, 2022 ($ in millions) (7) (7) KY Reg. PA Reg. RI Reg. Corp. & Other Disc. Ops.(2) Total KY Reg. PA Reg. RI Reg. Corp
Slide 34: 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 35: 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 net income, an indicator of operating performance determined in accordance with GAAP. PPL believe