Slide 1: 4th Quarter Earnings Call
4 th Quarter Earnings Call PPL Corporation February 14, 2013 Exhibit 99.2
Slide 2: Cautionary Statements and Factors That May Affect Future Results
© PPL Corporation 2013 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 2013 3 2012 Earnings Results, Operational Overview and 2013 Earnings Forecast Segment Results and Financial Overview Q&A W. H. Spence P. A. Farr Agenda
Slide 4: Strong Earnings Results
© PPL Corporation 2013 4 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. Strong Earnings Results
Slide 5: 2013 Earnings Forecast
© PPL Corporation 2013 5 Segment 2012A (Ongoing) 2013E Midpoint Kentucky Regulated $0.33 $0.47 U.K. Regulated 1.19 1.25 PA Regulated 0.22 0.29 Supply 0.68 0.40 Corporate and Other (0.04) Total $2.42 $2.37 $2.25 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported
Slide 6: 2012 Operational Overview
© PPL Corporation 2013 6 • LG&E and KU rate case – Awarded 10.25% ROE for both base rates and ECR mechanism • Delivered on Midlands integration – Operational performance exceeded expectations • PPL Electric Utilities rate case – Awarded 10.4% ROE for both base rates and DSIC mechanism • Identified c
Slide 7: 2013 Objectives
© PPL Corporation 2013 7 • Implement planned long-term solution to address Susquehanna turbine blade cracking – Restore operational performance to historical levels • RIIO-ED1 Fast-Track – Acceleration of price control review for DNOs with well-justified business plans – Fast-track settlement conclu
Slide 8: Ongoing Earnings Overview
© PPL Corporation 2013 8 2012 2011 Change Kentucky Regulated $0.33 $0.40 ($0.07) U.K. Regulated 1.19 0.87 0.32 Pennsylvania Regulated 0.22 0.31 (0.09) Supply 0.68 1.15 (0.47) Total $2.42 $2.73 ($0.31) Q4 2012 Q4 2011 Change Kentucky Regulated $0.08 $0.06 $0.02 U.K. Regulated 0.29 0.28 0.01 Pennsylva
Slide 9: Kentucky Regulated Segment Earnings Drivers
© PPL Corporation 2013 9 Year-to-Date 2011 EPS - Ongoing Earnings $0.40 Gross margins (0.01) O&M (0.01) Depreciation (0.01) Income taxes and other (0.02) Dilution (0.02) Total (0.07) 2012 EPS - Ongoing Earnings $0.33 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliati
Slide 10: U.K. Regulated Segment Earnings Drivers
© PPL Corporation 2013 10 Year-to-Date 2011 EPS - Ongoing Earnings $0.87 4 additional months of Midlands (1) 0.30 Utility revenue 0.21 Depreciation (0.03) Income taxes and other (0.06) Effect of exchange rates (0.03) Dilution (0.07) Total 0.32 2012 EPS - Ongoing Earnings $1.19 U.K. Regulated Segment
Slide 11: Pennsylvania Regulated Segment Earnings Drivers
© PPL Corporation 2013 11 Year-to-Date 2011 EPS - Ongoing Earnings $0.31 Gross delivery margins 0.02 O&M (0.05) Depreciation (0.02) Income taxes and other (0.03) Dilution (0.01) Total (0.09) 2012 EPS - Ongoing Earnings $0.22 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the
Slide 12: Supply Segment Earnings Drivers
© PPL Corporation 2013 12 Year-to-Date 2011 EPS - Ongoing Earnings $1.15 East energy margins (0.16) West energy margins (0.05) O&M (0.10) Depreciation (0.06) Income taxes and other (0.06) Dilution (0.04) Total (0.47) 2012 EPS - Ongoing Earnings $0.68 Supply Segment Earnings Drivers Note: See Appendi
Slide 13: 2012A to 2013E Earnings Walk
© PPL Corporation 2013 13 2012A to 2013E Earnings Walk Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. (1) Earnings from ongoing operations. (1) Margins: $0.20 O&M: ($0.04) Revenue: $0.22 O&M: ($0.07) Depr.: ($0.05) Other: $0.02 Margins: $0.10 Depr
Slide 14: U.K. Regulated Segment 2012A, 2013E and 2014E Modeling
© PPL Corporation 2013 14 EEI Bkg_inside2 © PPL Corporation 2012 14 2012A 2013E and 2014E Utility Energy-related Business $2,192 47 Utility Revenues increase by 3.5% plus inflation (U.K. RPI) plus incentives Energy-related Business revenues are flat–O&M Expense 416 O&M expense increases by 7.5% plus
Slide 15: Free Cash Flow before Dividends
© PPL Corporation 2013 15 Free Cash Flow before Dividends Reconciliation of Cash from Free Cash Flow before Operations to Free Cash Flow Dividends before Dividends (Millions of Dollars) (Millions of dollars) $314 ($456) ($1,774) ($2,000) ($1,500) ($1,000) ($500) $0 $500 $1,000 $1,500 $2,000 2011A 20
Slide 16: Dividend Profile
© PPL Corporation 2013 16 A significant rate-regulated business mix provides strong support for current dividend and a platform for future growth (1) Based on mid-point of forecast. Annualized dividend based on 2/14/2013 announced increase. Actual dividends to be determined by Board of Directors. (2
Slide 17: Appendix
© PPL Corporation 2013 17 Appendix
Slide 18: RIIO-ED1 Timetable: U.K. Electricity Distribution Price Control Review Schedule
© PPL Corporation 2013 18 RIIO-ED1 Timetable Provisional Timing Milestone September 2012 Publication of Strategy Consultation February 2013 Publication of Strategy Decision July 2013 DNOs submit business plans October 2013 Initial Assessment and publication of Fast-Track Proposals February 2014 Publ
Slide 19: U.K. Regulated Segment Modeling: Reconciliation of 2012 Earnings
© PPL Corporation 2013 19 U. K. Regulated Segment Modeling: Reconciliation of 2012 Earnings ($ in millions) Ongoing Special Reported Earnings Items Earnings Utility revenues $ 2,192 (1) $ 97 $ 2,289 Energy-related businesses 47 47 Total operating revenues 2,239 (1) 97 2,336 Other operation and maint
Slide 20: Regulated Volume Variances
© PPL Corporation 2013 20 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 21: Enhancing Value Through Active Hedging
© PPL Corporation 2013 21 Enhancing Value Through Active Hedging 2013 2014 Baseload Expected Generation(1) (Million MWhs) 51.4 50.4 East 43.0 41.8 West 8.4 8.6 Current Hedges (%) 94-98% 58-62% East 99-101% 61-65% West 76-80% 47-51% Average Hedged Price (Energy Only) ($/ MWh) (2) East $47-48 $40-42 W
Slide 22: Market Prices
© PPL Corporation 2013 22 (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices on 12/31/2012. (3) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price. Market Prices © PPL Corporation 2012 22 2013 2014 $44 $45 $31 $32 $37 $38 $30 $36 $21 $27 $26 $32 $3.54 $4.03 $3.83 $4.22
Slide 23: Operating Segment Capital Expenditures
© PPL Corporation 2013 23 ($ in billions) Note: Corporate and Other capital expenditures average approximately $50 million per year. (1) Figures based on assumed exchange rate of $1.58 / GBP. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience an
Slide 24: Projected Regulated Rate Base Growth
© PPL Corporation 2013 24 ($ 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) Figures based on assumed exchange rate of $1.58 / GBP. $18.8 $21.0 $22.7 $24.5 (2) 2013E - 2017E Regulator
Slide 25: Debt Maturities
© PPL Corporation 2013 25 Debt Maturities (Millions) 2013 2014 2015 2016 2017 $0 (1) (2) PPL Capital Funding $0 $0 $ 0 $0 LG&E and KU Energy (Holding Co LKE) 0 0 400 0 0 Louisville Gas & Electric 0 0 250 0 0 Kentucky Utilities 0 0 250 0 0 (3) PPL Electric Utilities 0 10 100 0 0 317 (4) PPL Energy Su
Slide 26: Liquidity Profile
© PPL Corporation 2013 26 Liquidity Profile Institution Facility Expiration Date Total Facility (Millions) Letters of Credit Outstanding & Commercial Paper Backstop (Millions) Drawn (Millions) Availability (Millions) PPL Energy Supply Syndicated Credit Facility Letter of Credit Facility Uncommitted
Slide 27: Estimated Shares Outstanding
© PPL Corporation 2013 27 December 31, 2013 615 December 31, 2014 670 December 31, 2015 680 Estimated Shares Outstanding (1) Projected average common shares outstanding include the issuance of common stock to satisfy the 2012 forward equity sale, the DRIP and compensation-related stock requirements
Slide 28: Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2013 28 Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings Other asset impairments Acquisition-related adjustments: WPD Midlands Separation benefits Change in U. K. tax rate Line loss adjustment Total Special Items Reported Earnings* Foreign curr
Slide 29: Reconciliation of Fourth Quarter Earnings (Per Share - Diluted)
© PPL Corporation 2013 29 Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings (Per Share - Diluted) Kentucky U. K. Pennsylvania Quarter Ending December 31, 2012 Regulated Regulated Regulated Supply Total Earnings from Ongoing Operations $ 0.08 $ 0.29 $ 0.05 $ 0.07
Slide 30: Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2013 30 Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings Year-to-date December 31, 2012 (Millions of Dollars, After-Tax) Regulated Kentucky Regulated U. K. Regul
Slide 31: Reconciliation of Year-to-Date Earnings (Per Share - Diluted)
© PPL Corporation 2013 31 Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings (Per Share - Dilute
Slide 32: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2013 32 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (Per Share - Diluted) Forecast Actual High 2013 Low 2013 2012 2011 2010 Earnings from Ongoing Operations Special Items
Slide 33: Gross Margins Summary
© PPL Corporation 2013 33 Gross Margins Summary (Millions of Dollars) Twelve Months Ended December 31, 2012 Per Share Dilute d 2012 2011 Change (after-tax) (a) KY Gross Margins $ 1,540 $ 1,548 $ (8) $ (0.01) PA Gross Delivery Margins by Component Distribution $ 730 $ 741 $ (11) $ (0.01) Transmission
Slide 34: Reconciliation of Operating Income to Margins
© PPL Corporation 2013 34 Reconciliation of Fourth Quarter Operating Income to Margins Twelve Months Ended December 31, 2012 Twelve Months Ended December 31, 2011 (Millions of Dollars) Unregulated Unregulated Kentucky PA Gross Gross Kentucky PA Gross Gross Gross Delivery Energy Operating Gross Deliv
Slide 35: Forward-Looking Statements and Risk Factors
© PPL Corporation 2013 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 2013 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 2013 37 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 calcula