Slide 1: 1st Quarter Earnings Call
© PPL Corporation 2013 1 st Quarter Earnings Call PPL Corporation May 2, 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 First Quarter Earnings Results, Operational Overview and 2013 Earnings Forecast Segment Results and Financial Overview Q&A W. H. Spence P. A. Farr Agenda
Slide 4: Earnings Results
© PPL Corporation 2013 4 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. Earnings Results
Slide 5: 2013 Ongoing Earnings Forecast
© PPL Corporation 2013 5 Segment 2012A Original 2013E Midpoint Revised 2013E Midpoint Kentucky Regulated $0.33 $0.47 $0.46 U.K. Regulated 1.19 1.25 1.20 PA Regulated 0.22 0.29 0.27 Supply 0.68 0.40 0.37 Corporate and Other (0.04) (0.03) Total $2.42 $2.37 $2.27 $2.25 $2.15 Note: See Appendix for the
Slide 6: Regulated Operational Overview
© PPL Corporation 2013 6 • RIIO Update – Final business plan to be filed with Ofgem by July 1, 2013 • Pennsylvania DSIC Filing Update – Expected implementation July 1, 2013 • Susquehanna-Roseland Update – Began construction of 500kV Lackawanna substation – Project cost estimate updated to $630 milli
Slide 7: Regulated Volume Variances
© PPL Corporation 2013 7 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 8: Supply Operational Overview
© PPL Corporation 2013 8 • Susquehanna Update • Commercial operation of upgraded Rainbow hydroelectric plant in Montana Supply Operational Overview
Slide 9: Weighted-Average Shares - Diluted EPS
© PPL Corporation 2013 9 For the Year Ended Original Forecast (1) Revised Forecast (2) December 31, 2013 615 665 December 31, 2014 670 670 December 31, 2015 680 670 Weighted-Average Shares - Diluted EPS (1) Original Forecast of average common shares outstanding included the issuance of common stock
Slide 10: 2012A to 2013E Ongoing Earnings Walk
© PPL Corporation 2013 10 Accelerated recognition of common stock 2012A to 2013E Ongoing Earnings Walk Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. (1) Accelerated recognition of common stock related to the equity units resulted from the applica
Slide 11: Ongoing Earnings Overview
© PPL Corporation 2013 11 Q1 2013 Q1 2012 Change Kentucky Regulated $0.14 $0.06 $0.08 U.K. Regulated 0.37 0.31 0.06 Pennsylvania Regulated 0.10 0.06 0.04 Supply 0.11 0.27 (0.16) Corporate and Other (0.01) (0.01) Total $0.71 $0.70 $0.01 Ongoing Earnings Overview Note: See Appendix for the reconciliat
Slide 12: Kentucky Regulated Segment Earnings Drivers
© PPL Corporation 2013 12 1 st Quarter 2012 EPS - Ongoing Earnings $0.06 Gross margins 0.08 O&M 0.01 Depreciation (0.01) Income taxes and other 0.01 Dilution (0.01) Total 0.08 2013 EPS - Ongoing Earnings $0.14 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of e
Slide 13: U.K. Regulated Segment Earnings Drivers
© PPL Corporation 2013 13 1 st Quarter 2012 EPS - Ongoing Earnings $0.31 Utility revenue 0.10 O&M (0.01) Income taxes and other 0.01 Dilution (0.04) Total 0.06 2013 EPS - Ongoing Earnings $0.37 U.K. Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing
Slide 14: Pennsylvania Regulated Segment Earnings Drivers
© PPL Corporation 2013 14 1 st Quarter 2012 EPS - Ongoing Earnings $0.06 Gross delivery margins 0.04 O&M 0.01 Interest 0.01 Income taxes and other (0.01) Dilution (0.01) Total 0.04 2013 EPS - Ongoing Earnings $0.10 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconcilia
Slide 15: Supply Segment Earnings Drivers
© PPL Corporation 2013 15 1 st Quarter 2012 EPS - Ongoing Earnings $0.27 East energy margins (0.08) West energy margins (0.03) O&M 0.01 Depreciation (0.01) Interest (0.01) Income taxes and other (0.03) Dilution (0.01) Total (0.16) 2013 EPS - Ongoing Earnings $0.11 Supply Segment Earnings Drivers Not
Slide 16: Appendix
© PPL Corporation 2013 16 Appendix
Slide 17: Dividend Profile
© PPL Corporation 2013 17 A predominant rate-regulated business mix provides strong support for current dividend and a platform for future growth (1) Based on midpoint of revised forecast. Annualized dividend based on 1 st quarter declaration. Actual dividends to be determined by Board of Directors.
Slide 18: RIIO-ED1 Timetable
© PPL Corporation 2013 18 RIIO-ED1 Timetable Provisional Timing Milestone September 2012 Publication of Strategy Consultation March 2013 Strategy decision published July 2013 DNOs submit and publish business plans October 2013 Initial assessment and fast-track Draft Determination published February
Slide 19: Regulated Volume Breakdown
© PPL Corporation 2013 19 Regulated Volume Breakdown Note: Total sales include Residential, Commercial and Industrial customer classes as well as “Other”, which is not depicted on the charts above. 2012 weather-normalized electric sales volumes (in GWh)
Slide 20: Enhancing Value Through Active Hedging
© PPL Corporation 2013 20 Enhancing Value Through Active Hedging 2013 2014 Baseload Expected Generation(1) (Million MWhs) 50.1 50.4 East 41.7 41.8 West 8.4 8.6 Current Hedges (%) 98-100% 62-66% East 99-101% 66-68% West 92-94% 51-53% Average Hedged Price (Energy Only) ($/ MWh) (2) East $47-48 $40-42
Slide 21: Competitive Generation Overview
© PPL Corporation 2013 * Competitive Generation Overview Note: As of March 31, 2013 (1) Includes owned and contracted generation. (2) Other includes PPAs, renewables and NUGS. 14.0 15.7 Millions of MWhs Total generation output(1) improved by 12% in 1Q 2013 compared to 1Q 2012 (2)
Slide 22: Market Prices
© PPL Corporation 2013 22 (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices on 3/31/2013. (3) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price. Market Prices © PPLCorporation201322 Balance of 2013 2014 $49 $48 $33 $34 $41 $41 $36 $37 $27 $28 $31 $33 $4.12 $4.23 $4.31
Slide 23: Operating Segment Capital Expenditures
© PPL Corporation 2013 23 ($ 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 $22.8 $24.5 (2) 2013E - 2017E Regulator
Slide 25: Free Cash Flow before Dividends
© PPL Corporation 2013 25 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 2011 201
Slide 26: Debt Maturities
© PPL Corporation 2013 26 Debt Maturities (Millions) PPL Capital Funding LG& E and KU Energy (Holding Co LKE) Louisville Gas & Electric Kentucky Utilities PPL Electric Utilities PPL Energy Supply WPD 2013 $0 0 0 0 0 739 0 (1) 2014 $0 0 0 0 10 304 0 (2) (3) 2015 $0 400 250 250 100 304 (4) 0 2016 $0 0
Slide 27: Liquidity Profile
© PPL Corporation 2013 27 Liquidity Profile Liquidity Profile Letters of Credit Outstanding & Total Commercial Expiration Facility Paper Backstop Drawn Availability Institution Facility Date (Millions) (Millions) (Millions) (Millions) PPL Energy Supply Syndicated Credit Facility Nov-2017 $3,000 $641
Slide 28: Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2013 * Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings Other asset impairments Acquisition-related adjustments: WPD Midlands Separation benefits Other acquisition-related adjustments Change in U. K. tax rate EEI adjustments Total Special Items
Slide 29: Reconciliation of First Quarter Earnings (Per Share - Diluted)
© PPL Corporation 2013 29 Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings Reconciliation of First Quarter Earnings from Ongoing Operations to Reported Earnings (Per Share -Diluted) Kentucky U. K. Pennsylvania Corporate Year-to-date March 31, 2013 (a) Regulated R
Slide 30: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2013 30 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (Per Share -Diluted) Forecast Actual High Low 2013 2013 2012 2011 Earnings from Ongoing Operations $ 2.40 $ 2.15 $ 2.42 $ 2.73 Special Items: Adjusted energy-related economic activity, net (0.18)
Slide 31: Reconciliation of PPL's Earnings (Year-to-date December 31, 2012)
© PPL Corporation 2013 31 Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings (per share -dilute d) Year-to-date December 31, 2012 Earnings from Ongoing Operations Special Items: Adjusted energy-related economic activity, net Foreign currency-related economic hedges Impairm
Slide 32: Reconciliation of PPL's Earnings (Year-to-Date December 31, 2010)
© PPL Corporation 2013 32 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (per share -diluted) Kentucky U. K. Pennsylvania Year-to-Date December 31, 2010 Regulated Regulated (a) Regulated Supply Other (b) Total Maine hydroelectric generation business Emission allowances
Slide 33: Gross Margins Summary
Gross Margins Summary (Millions of Dollars) 2013 Three Months Ended March 31, 2013 2012 Change Per Share Diluted (after -tax) KY Gross Margins $ 458 $ 383 $ 75 $ 0.08PA Gross Delivery Margins by Component Distribution Transmission Total $ $ 22453 277 $ 189 48 $ 237 $ 35 5 $ 40 $ 0.03 0.01 $ 0.04 Eas
Slide 34: Reconciliation of First Quarter Margins to Operating Income
© PPL Corporation 2013 34 Reconciliation of First Quarter Margins to Operating Income Three Months Ended March 31, 2013 Three Months Ended March 31, 2012 (Millions of Dollars) Unregulated Unregulated Kentucky PA Gross Gross Kentucky PA Gross Gross Gross Delivery Energy Operating Gross Delivery Energ
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