Slide 1: PPL 1st Quarter Investor Update
PPL 1st Quarter Investor Update | May 5, 2022
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, including the anticipated effects of the recent sale of PPL Corporation’s U.K. business, the anticipated acquisition of The Narragansett Electr
Slide 3: Agenda
Agenda I. Strategic and Operational Updates Vince Sorgi II. Financial Update Joe Bergstein III. Closing Remarks Vince Sorgi IV. Q&A PPL 1st Quarter Investor Update – May 5, 2022 3
Slide 4: Strategic and Operational Update
Strategic and Operational Update ➢Remain Deliveredfocused on closing Q1 2022 results Narragansett in line with expectations Electric transaction ▪ Reported Q1 2022 GAAP results of $0.37 per share; Ongoing earnings of $0.41 per share ➢ Advanced acquisition of Narragansett Electric (1) ▪ Received appr
Slide 5: Strategic and Operational Update
Strategic and Operational Update ➢[To be updated] Advanced several clean energy initiatives in Kentucky, supporting state’s economic development ✓ Joined the Kentucky Energy and Environment Cabinet’s Hydrogen Hub initiative ✓ Filed the transmission CPCN application related to the Ford battery park p
Slide 6: 1st Quarter Financial Results
1st Quarter Financial Results Key Earnings Highlights Ongoing Earnings – Q1 2022 vs. Q1 2021 (1) ➢ Reported Q1 2022 GAAP EPS of $0.37; (Earnings Per Share) ongoing EPS of $0.41 $0.03 $0.41 ▪ Special items of ($0.04) per share, $0.07 primarily related to Rhode Island acquisition integration costs $0.
Slide 7: Closing Remarks
Closing Remarks ➢ We continue to work diligently through the state appeals process in Rhode Island ✓ Remain confident in the merits of the transaction; with significant expected future benefits for Rhode Island customers and PPL shareholders ✓ Ready and eager to begin integration activities immediat
Slide 8: Appendix
Appendix
Slide 9: Narragansett Electric Acquisition
Narragansett Electric Acquisition Regulatory approvals required Acquisition of Narragansett Status Federal Approvals: Hart-Scott-Rodino (DOJ) ✓ Waiting Period Expired 6/2/2021 Federal Communications Commission (FCC) ✓ Approval Received 7/14/2021 Federal Energy Regulatory Commission (FERC) ✓ Approval
Slide 10: Electricity Sale Volumes
Electricity Sale Volumes 2022 sales vs. 2021 sales by operating segment Weather-Normalized Electricity Sales Volume Variance (2022 vs. 2021) in GWh Pennsylvania Kentucky Q1 2022 Q1 2021 % Change Q1 2022 Q1 2021 % Change Residential 4,612 4,613 (0.0%) Residential 2,977 3,082 (3.4%) Commercial 3,510 3
Slide 11: Debt Maturities
Debt Maturities 2027 and ($ in millions) 2022 2023 2024 2025 2026 Beyond Total PPL Capital Funding $0 $0 $0 $0 $650 $1,396 $2,046 PPL Electric Utilities(1) $474 $340 $650 $0 $0 $3,075 $4,539 Louisville Gas & Electric(1) $0 $0 $0 $300 $90 $1,634 $2,024 Kentucky Utilities(1) $0 $13 $0 $250 $164 $2,215
Slide 12: Liquidity Profile
Liquidity Profile Letters of C redit & C om m ercial Unused Ex piration C apacity Borrow ed Paper Issued C apacity Entity F acility Date ($ in m illions) ($ in m illions) ($ in m illions) ($ in m illions) PPL C apital F unding Syndicated Credit Facility Dec-2026 $1,250 $0 $347 $903 Bilateral Credit
Slide 13: PPL’s Credit Ratings
PPL’s Credit Ratings PPL Corporation Credit Rating S&P Moody’s Secured NR NR PPL Capital Funding Unsecured NR NR Credit Rating S&P Moody’s Long-term Issuer A- Baa2 Outlook Stable Positive Secured NR NR Unsecured BBB+ Baa2 Long-term Issuer A- NR Outlook Stable Positive LG&E and KU PPL Electric Utilit
Slide 14: Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations After-Tax (Unaudited) Year-to-Date ($ in millions) March 31, 2022 KY PA Corp. & Total Reg. Reg. Other Reported Earnings (1) $ 179 $ 143 $ (49) $ 273 Less: Special Items (expense) benefit: Talen litigation costs, net of t
Slide 15: Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations After-Tax (Unaudited) Year-to-Date ($ in millions) March 31, 2021 KY PA Corp. & Disc. Total Reg. Reg. Other Ops.(2) Reported Earnings (1) $ 146 $ 113 $ (56) $ (2,043) $ (1,840) Less: Special Items (expense) benefit: Loss
Slide 16: Adjusted Gross Margins Summary
Adjusted Gross Margins Summary (Unaudited) Three Months Ended March 31, (millions of dollars, except share data) Per Share Diluted (1) 2022 2021 Change (after-tax) Kentucky Adjusted Gross Margins $ 659 $ 570 $ 89 $ 0.09 Pennsylvania Adjusted Gross Margins Distribution $ 265 $ 247 $ 18 $ 0.02 Transmi
Slide 17: Reconciliation of Adjusted Gross Margins to Operating Income
Reconciliation of Adjusted Gross Margins to Operating Income (1) (Unaudited) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 (millions of dollars) KY PA KY PA Adjusted Adjusted Adjusted Adjusted Gross Gross Operating Gross Gross Operating Margins Margins Other Income Margins Marg
Slide 18: 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 19: Definitions of non-GAAP Financial Measures
Definitions of non-GAAP Financial Measures Management utilizes "Earnings from Ongoing Operations" as a non-GAAP financial measure that should not be considered as an alternative to reported earnings, or net income, an indicator of operating performance determined in accordance with GAAP. PPL believe
Slide 20: Definitions of non-GAAP Financial Measures
Definitions of non-GAAP Financial Measures Management also utilizes the following non-GAAP financial measures as indicators of performance for its businesses: "Kentucky Adjusted Gross Margins" is a single financial performance measure of the electricity generation, transmission and distribution oper