Slide 1: 2nd Quarter Earnings Call
© PPL Corporation 2015 2 nd Quarter Earnings Call PPL Corporation August 3, 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 Anystatementsmadeinthispresentationaboutfutureoperating resultsorotherfutureeventsareforward-lookingstatements under the Safe Harbor Provisions of the Private Securities LitigationReformActof1995.Actualresultsm
Slide 3: Agenda
© PPL Corporation 2015 3 The New PPL Investment Proposition Second Quarter Earnings Results, 2015 Earnings Forecast and Operational Overview Segment Results and Financial Overview Q&A W. H. Spence V. Sorgi Agenda W. H. Spence
Slide 4: Investment Highlights
© PPL Corporation 2015 Investment Highlights 100% rate-regulated business model • Pure-play utility modelwith strong earnings and dividend growth potential • Top 10 U.S. utility market capitalization and part of the S&P 500 • Annual total return proposition of 8% –11% • Diversified by region, regula
Slide 5: Significant Investment Opportunity Drives Earnings Growth
© PPL Corporation 2015 Significant Investment Opportunity with Constructive Rate Mechanisms Drives Earnings Growth (2) Earnings from Ongoing Operations based on 2014 adjusted actual earnings and midpoint of 2015 forecast. (3) Projection based on midpoint of 4% -6% CAGR off 2014 adjusted earnings. Do
Slide 6: Constructive Regulatory Framework Supports Robust Financial Performance
© PPL Corporation 2015 Rate Base (2015E) Equity Ratio (1) Allowed ROE PPL Electric Utilities D: $3.0 billion T: $2.5 billion 51.60% D: 10.40% T: 11.68% (2) LG&E $3.7 billion 52.75% 10.00% (3) Kentucky Utilities $5.1 billion 53.02% 10.00% (3) Constructive Regulatory Framework Supports Robust Financia
Slide 7: The U.K.; a Premium Regulatory Jurisdiction
© PPL Corporation 2015 The U.K.; a PremiumRegulatory Jurisdiction The U.K. OFGEM’s RIIO framework (Revenue = Incentives + Innovation + Outputs) allows Distribution Network Operators (DNO’s) to earn premium returns for strong performance and innovation. WPD Investment Advantage Regulatory cycle Fast
Slide 8: Continued Dividend Growth
© PPL Corporation 2015 8 $1.40 $1.44 $1.47 $1.49 $1.51 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 2011 2012 2013 2014 2015E (1) $/Share Annualized Continued Dividend Growth (1) Annualized dividend based on 8/3/2015 announced increase. Actual dividends to be determined by Board of Directors.
Slide 9: Summary of Drivers of 4% to 6% EPS Growth Through 2017
© PPL Corporation 2015 Summary of Drivers of 4% to 6% EPS Growth Through 2017 8% -10% Domestic Utility Earnings Growth: PA Regulated • Transmission Cap Ex of $2.0 billion at 11.68% base ROE, 12.93% for $630 million Susquehanna Roseland project drives transmission rate base growth of 18.9% through 20
Slide 10: Second Quarter Earnings Results
© PPL Corporation 2015 Second Quarter Earnings Results 10
Slide 11: Earnings Results
© PPL Corporation 2015 11 P e r S h a r e Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. (1) Second quarter reported earnings includes a $1 billion loss, or $1.50 per share from discontinued operations associated with theJune 1 spinoff of t
Slide 12: Increasing 2015 Ongoing Earnings Forecast
© PPL Corporation 2015 $0.00 $1.00 $2.00 $3.00 2014 Adj Previous 2015E Revised 2015E $2.15 12 P e r S h a r e Increasing 2015 Ongoing Earnings Forecast $2.25 $2.03 Note: See Appendix for the reconciliation of 2014 reported earnings (loss) to earnings from ongoing operations. (1) 2015 earnings and 20
Slide 13: Operational Overview
© PPL Corporation 2015 13 Pennsylvania • Compass Update • Smart Meter Program • Distribution Rate Case Kentucky • KY Rate Case Approval • Cane Run 7 U.K. • RIIO-ED1 effective April 1 Operational Overview
Slide 14: Summary Financial Highlights
© PPL Corporation 2015 Summary Financial Highlights 14
Slide 15: Ongoing Earnings Overview
© PPL Corporation 2015 15 Q2 2015 Q2 2014 (adj) Change Pennsylvania Regulated $0.07 $0.08 $(0.01) Kentucky Regulated 0.09 0.09 0.00 U.K. Regulated 0.36 0.33 0.03 Corporate and Other (0.03) (0.06) 0.03 Total $0.49 $0.44 $0.05 Ongoing Earnings Overview Note: See Appendix for the reconciliation of repo
Slide 16: Pennsylvania Regulated Segment Earnings Drivers
© PPL Corporation 2015 16 2nd Quarter 2014 EPS –Ongoing Earnings $0.08 Gross delivery margins 0.01 Operation and maintenance (0.01) Depreciation (0.01) Total (0.01) 2015 EPS –Ongoing Earnings $0.07 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of reported
Slide 17: Kentucky Regulated Segment Earnings Drivers
© PPL Corporation 2015 17 2nd Quarter 2014 EPS –Ongoing Earnings $0.09 Gross margins 0.01 Operation and maintenance (0.01) Total 0.00 2015 EPS –Ongoing Earnings $0.09 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from on
Slide 18: U.K. Regulated Segment Earnings Drivers
© PPL Corporation 2015 18 2nd Quarter 2014 EPS –Ongoing Earnings $0.33 Utility revenues (0.03) Depreciation 0.03 Foreign Currency (0.01) Income taxes and other 0.04 Total 0.03 2015 EPS –Ongoing Earnings $0.36 U.K. Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of report
Slide 19: Foreign Currency Hedging Status and RPI Sensitivity
© PPL Corporation 2015 Foreign Currency Hedging Status and RPI Sensitivity Note: FX hedging status as of 07/15/2015. (1) Sensitivity includes the net effects on revenue, O&M and interest expense on index-linked debt. 19 GBP Foreign Currency 2015 2016 2017 Percentage Hedged 100% 90% 40% Hedged Rate (
Slide 20: Funding the Growth
© PPL Corporation 2015 Funding the Growth Strong domestic operating cash flows plus the U.K. dividend sufficient to fund the PPL dividend. Domestic debt and equity issuances fund domestic utility growth. 20 2013A (4) 2014A (4) 2015E (5) Domestic Cash from Operations $1,707 $2,219 $1,610 Domestic Mai
Slide 21: Appendix
© PPL Corporation 2015 Appendix 21
Slide 22: Significant Ongoing Capital Expenditure Program
© PPL Corporation 2015 22 Note: Corporate and Other capital expenditures average approximately $5million per year. (1) WPD figures based on assumed exchange rate of $1.60 / £. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience and future project
Slide 23: Critical to Driving Strong Rate Base Growth
© PPL Corporation 2015 23 ( $ i n b i l l i o n s ) (1) WPD figures based on assumed exchange rate of $1.60 / £ for 2015 -2019. (2) Represents capitalization for LKE, as LG&E and KU rate constructs are based on capitalization. Represents Regulatory Asset Value (RAV) for WPD. Strong regulated rate ba
Slide 24: U.K. Regulated Segment Cash Repatriation
© PPL Corporation 2015 U.K. Regulated Segment Cash Repatriation Note: Assumes foreign currency exchange rate of $1.60/£ for 2015E, 2016E and 2017E. ($ in millions) Flexible strategy for meaningful U.K. cash repatriation. 24
Slide 25: U.S. Regulated Volume Variances
© PPL Corporation 2015 25 Note: Total includes Residential, Commercial and Industrial customer classes as well as “Other”, which is not depicted on the charts above. U.S. Regulated Volume Variances Residential Commercial Industrial Total Residential Commercial Industrial Total Weather-Normalized (ch
Slide 26: Pennsylvania Rate Case Schedule
© PPL Corporation 2015 26 Pennsylvania Rate Case Schedule Timing Milestone 04/2015 Discovery phase begins 06/02/2015 Public input hearings 06/23/2015 Direct of other parties by 07/01/2015 First settlement conference 07/20/2015 Rebuttal testimony due 07/28/2015 Second settlement conference 07/31/2015
Slide 27: Kentucky Environmental Controls
© PPL Corporation 2015 Kentucky Environmental Controls Low Nox Burners SCR/SNCR Scrubbers Closed Cycle Cooling Tower Dry Handling/Disposal/Beneficial Use Bag-houses NO x NO x SO 2 Water Intake Coal Combustion Residuals (CCRs) (2) Hg (Particulates) Unit 1 x x x x (1) (3) Unit 2 x x x x (1) x Unit 1 x
Slide 28: Debt Maturities
© PPL Corporation 2015 ($ in millions) 2015 2016 2017 2018 2019 PPL Capital Funding $0 $0 $0 $250 $0 PPL Electric Utilities 100 0 0 0 0 LG&E and KU Energy 400 0 0 0 0 Louisville Gas & Electric (1) 250 25 194 98 40 Kentucky Utilities 250 0 0 0 0 WPD 0 460 100 0 0 Total 1,000 485 294 348 40 28 Debt Ma
Slide 29: Liquidity Profile
© PPL Corporation 2015 29 Liquidity Profile Note: As of June 30, 2015 Entity Facility Expiration Date Capacity (Millions) Letters of Credit & Commercial Paper Issued (Millions) Borrowed (Millions) Unused Capacity (Millions) PPL Capital Funding Syndicated Credit Facility Nov-2018 $300 $0 $0 $300 Synd
Slide 30: Strong Credit Ratings
© PPL Corporation 2015 WPD Holding Company LKE Holding Company PPL Electric UtilitiesLKE Operating Companies PPL Capital Funding Credit Rating Secured Unsecured Long-term Issuer Outlook S&P NR BBB+ NR Stable Moody’s NR Baa2 NR Stable Credit Rating Secured Unsecured Long-term Issuer Outlook S&P NR BB
Slide 31: Reconciliation of Segment Reported Earnings to Ongoing Operations
© PPL Corporation 2015 31 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (1) Includes an $879 million charge reflecting the difference between PPL’s recorded value for the Supply segment and the estimated fair value determined in accordance with applicable acc
Slide 32: Reconciliation of Segment Reported Earnings to Ongoing Operations (Adjusted)
© PPL Corporation 2015 32 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (Adjusted) (1) Certain amounts have been reclassified to reflect the Supply segment as a discontinued operation. (2) Represents 2014 costs allocated to the Supply segment that remained wi
Slide 33: Reconciliation of Segment Reported Earnings to Ongoing Operations
© PPL Corporation 2015 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (1) Includes an $879 million charge reflecting the difference between PPL’s recorded value for the Supply segment and the estimated fair value determined in accordance with applicable accoun
Slide 34: Reconciliation of Segment Reported Earnings to Ongoing Operations (Adjusted)
© PPL Corporation 2015 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (Adjusted) 34 (1) Certain amounts have been reclassified to reflect the Supply segment as a discontinued operation. (2) Represents 2014 costs allocated to the Supply segment that remained wi
Slide 35: Reconciliation of Reported Earnings to Ongoing Operations (Adjusted)
© PPL Corporation 2015 35 Reconciliation of Reported Earnings (Loss) to Earnings from Ongoing Operations (Adjusted) (1) The "If-Converted Method" has been applied to PPL's 2011 Equity Units, resulting in $9 million of interest charges (after-tax) being added back to earnings and approximately 11 mil
Slide 36: Reconciliation of PPL's Forecast of Reported Earnings to Ongoing Operations
© PPL Corporation 2015 36 Reconciliation of PPL’s Forecast of Reported Earnings (Loss) to Earnings from Ongoing Operations (After-Tax) Unaudited Forecast (per share -diluted) Midpoint U.K. Kentucky Pennsylvania Corporate Discontinued High Low Regulated Regulated Regulated and Other Operations Total
Slide 37: Gross Margins Summary
© PPL Corporation 2015 37 Gross Margins Summary $ 438 $ 428 $ 10 $ 0.01 Distribution $ 193 $ 189 $ 4 Transmission 90 81 9 $ 0.01 $ 283 $ 270 $ 13 $ 0.01 Total (Millions of Dollars) Three Months Ended June 30, Per Share Diluted 2015 2014 Change (after-tax) KY Gross Margins PA Gross Delivery Margins (
Slide 38: Reconciliation of Second Quarter Margins to Operating Income
© PPL Corporation 2015 38 Reconciliation of Second Quarter Margins to Operating Income $ 714 $ 476 $ 575 $ 1,765 $ 722 $ 449 $ 659 $ 1,830 16 16 19 19 Total Operating Revenues 714 476 591 1,781 722 449 678 1,849 214 214 231 1 232 28 138 4 170 36 114 21 171 5 (5) 21 (21) 24 27 403 454 25 23 399 447 9
Slide 39: Reconciliation of Domestic Cash Flows
© PPL Corporation 2015 39 Reconciliation of Domestic Cash Flows
Slide 40: Forward-Looking Statements and Risk Factors
© PPL Corporation 2015 40 Statementscontainedinthispresentation,includingstatementswithrespecttofutureearnings,cashflows,financing,regulationandcorporate strategyare"forward-lookingstatements"withinthemeaningofthefederalsecuritieslaws.AlthoughPPLCorporationbelievesthatthe expectationsandassumptionsr
Slide 41: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2015 41 Definitions of Non-GAAP Financial Measures “Earningsfromongoingoperations,”shouldnotbeconsideredasanalternativetoreportedearnings,ornetincome,whichisanindicatorof operatingperformancedeterminedinaccordancewithU.S.generallyacceptedaccountingprinciples(GAAP). PPLbelievesthat“
Slide 42: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2015 42 Definitions of Non-GAAP Financial Measures PPLutilizesthefollowingnon-GAAPfinancialmeasuresasindicatorsofperformanceforitsbusinesses.Thesemeasuresarenotintendedtoreplace "OperatingIncome,"whichisdeterminedinaccordancewithGAAP,asanindicatorofoveralloperatingperformance. Othe