Slide 1: 2nd Quarter Investor Update
2nd Quarter Investor Update August 4, 2023 PPL Corporation
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 2nd Quarter Investor Update August 4, 2023 Vince Sorgi PPL Corporation President & Chief Executive Officer 3
Slide 4: 2nd Quarter Highlights
2nd Quarter Highlights ➢ Reported Q2 2023 GAAP results of $0.15 per share and ongoing earnings of $0.29 per share ➢ Reaffirmed 2023 ongoing earnings forecast range of $1.50 to $1.65 per share and midpoint of $1.58 per share • Identified several areas to offset unfavorable impact of weather and storm
Slide 5: Kentucky CPCN Filing Update
Kentucky CPCN Filing Update (1) (2) Advancing our plan to invest in Kentucky’s future and the best path forward for our Kentucky customers ➢ KPSC approved the consolidation of generation Generation Capacity Additions and Retirements per CPCN Filing (1) (Capacity in MW) investment CPCN, DSM plan, and
Slide 6: Financial Update
Financial Update 2nd Quarter Investor Update August 4, 2023 Joe Bergstein PPL Corporation Executive Vice President & Chief Financial Officer 6
Slide 7: 2nd Quarter Financial Overview
2nd Quarter Financial Overview Overview of 2nd Quarter Financial Results (Earnings per share) Q2 2023 Q2 2022 ➢ Q2 2023 GAAP earnings of $0.15 per share • Q2 2023 special items of $0.14 per share, primarily Reported Earnings (GAAP) $0.15 $0.16 related to RI integration and related costs Less: Specia
Slide 8: Review of 2nd Quarter Financial Results
Review of 2nd Quarter Financial Results Ongoing Earnings Walk: Q2 2023 vs. Q2 2022 (Earnings per share) Transmission $0.01 Revenue O&M $0.01 Distribution Sales Volumes Rider Recovery $0.01 ($0.03) Addition of RIE(2) $0.02 (Primarily Weather) Interest Expense ($0.01) Sales Volumes ($0.01) O&M $0.02 O
Slide 9: YTD Financial Overview and Outlook
YTD Financial Overview and Outlook Overview of YTD Financial Results Through June 30th (Earnings per share) YTD 2023 YTD 2022 ➢ YTD 2023 GAAP earnings of $0.54 per share Reported Earnings (GAAP) $0.54 $0.53 ➢ YTD 2023 ongoing earnings of $0.77 per share • Mild weather unfavorably impacted results by
Slide 10: Closing Remarks
Closing Remarks 2nd Quarter Investor Update August 4, 2023 Vince Sorgi PPL Corporation President & Chief Executive Officer 10
Slide 11: Advancing 2023 Outlook and Priorities
Advancing 2023 Outlook and Priorities Remain Confident in Achieving PPL’s 2023 Goals ➢ Identified offsets to weather and storm cost headwinds YTD to deliver the midpoint of our 2023 earnings forecast range of $1.58 per share (1) ➢ On target to complete $2.5 billion capex plan to provide safe, reliab
Slide 12: Investment Overview
Investment Overview August 4, 2023 PPL Corporation – 2nd Quarter Investor Update
Slide 13: PPL Investment Highlights
PPL Investment Highlights A large-cap, regulated U.S. utility in constructive regulatory jurisdictions Visible and predictable 6% - 8% annual EPS and dividend growth(1) Robust $12B regulated capital investment plan from 2023 to 2026 One of the strongest balance sheets in the U.S. utility sector – no
Slide 14: Projecting 6% to 8% Earnings and Dividend Growth Through at Least 2026
Projecting 6% to 8% Earnings and Dividend Growth Through at Least 2026 Projected Earnings Per Share Projected Annualized Dividends Per Share (2) 6% - 8% 6% - 8% CAGR CAGR $1.58 $0.96 (2) 2023 2024 2025 2026 2023 2024 2025 2026 (1) Midpoint Projecting predictable, stable annual EPS growth Dividend gr
Slide 15: A Robust Capital Plan
A Robust Capital Plan Significant investment opportunities across all utilities 2023-2026 Plan: $11.9 billion ($ in billions) (1) Note: Totals may not sum due to rounding. (1) Includes projected capital expenditures related to replacement generation in Kentucky based upon LG&E’s and KU’s CPCN filing
Slide 16: Rate Base CAGR of Over 5.5% Through 2026
Rate Base CAGR of Over 5.5% Through 2026 Projected Annual Rate Base Growth (2022 – 2026) Plan CAGR (2022-2026): 5.6% (Year-end rate base, $ in billions) Rate Base Growth Improving from 4% To >7% in Back Half of Plan 7.2% CAGR 4.1% CAGR (1) (2) Note: Totals may not sum due to rounding. (1) Reflects i
Slide 17: Significantly Improving PPL's Carbon Footprint
Significantly Improving PPL’s Carbon Footprint Plan is consistent with PPL’s long-term emission reduction targets with near-term tangible progress (2) Plan Aligns with Pathway to Net Zero Emissions by 2050 (1) Reduces Carbon Intensity by More Than 25% (Metric tons, in millions) (Metric tons per MWh)
Slide 18: Business Transformation Prioritizes Efficiency and Affordability While Staying Out of Rate Cases
Business Transformation Prioritizes Efficiency and Affordability While Staying Out of Rate Cases A clear path to deliver at least $175M of savings through 2026 from 2021 baseline (O&M savings, $ in millions) ✓ T&D Operations At least • Smart Grid Technology – more efficient and condition- $175M base
Slide 19: Premier Balance Sheet Supports Organic Growth and Provides Financial Flexibility
Premier Balance Sheet Supports Organic Growth and Provides Financial Flexibility One of the sector’s best credit profiles supports higher relative valuation (1) 2025 P/E Multiple Discount Valuation: Average Valuation: Premium Valuation: ✓ Premier credit ratings among peers 13.0x – 14.5x 14.5x – 16.5
Slide 20: Quarterly Supplemental Info.
Quarterly Supplemental Info. August 4, 2023 PPL Corporation – 2nd Quarter Investor Update
Slide 21: Review of YTD Financial Results Through June 30th
Review of YTD Financial Results Through June 30th Ongoing Earnings Walk: YTD 2023 vs. YTD 2022 (Earnings per share) O&M $0.02 Transmission $0.01 Interest Expense ($0.02) Revenue Distribution Sales Volumes Addition of RIE(2) $0.12 $0.03 ($0.08) Other(1) $0.02 Rider Recovery (Primarily Weather) Sales
Slide 22: Electricity Sales Volumes
Electricity Sales Volumes Quarterly and trailing twelve-month retail sales comparison by operating segment (1) (GWh) Weather-Normalized Electricity Sales Volume Actual Electricity Sales Volume Annual EPS Sensitivity Pennsylvania Three Months Ended June 30, Trailing Twelve Months Ended June 30, Three
Slide 23: Summary of CPCN Filing in Kentucky
Summary of CPCN Filing in Kentucky (1) ▪ In December 2022, LG&E and KU filed a joint application with the Kentucky Public Service Commission (KPSC) seeking CPCNs to construct several generation facilities and approval of their proposed 2024-2030 Demand-Side Management and Energy Efficiency Program P
Slide 24: Summary of Advanced Metering Filing in Rhode Island
Summary of Advanced Metering Filing in Rhode Island ▪ In November 2022, RIE submitted an Advanced Metering Functionality (AMF) Business Case proposal to the Rhode Island Public Utilities Commission (RIPUC). Filing Overview ▪ The proposed program is estimated to cost $188 million on a net present val
Slide 25: Capital Expenditure Plan
Capital Expenditure Plan ($ in millions) 2023 2024 2025 2026 4-Year Total Pennsylvania Electric Distribution $300 $300 $300 $325 $1,225 Electric Transmission 550 675 775 650 2,650 Pennsylvania Total $850 $975 $1,075 $975 $3,875 (1) Kentucky Electric Distribution $375 $325 $300 $400 $1,400 Electric T
Slide 26: Projected Rate Base (Year-End)
Projected Rate Base (Year-End) (Year-end rate base, $ in billions) 2022A 2023 2024 2025 2026 Pennsylvania Electric Distribution $4.1 $4.2 $4.3 $4.3 $4.4 Electric Transmission 5.2 5.5 5.7 6.1 6.6 Pennsylvania Total $9.3 $9.7 $10.0 $10.4 $11.0 Kentucky (1) Electric Distribution $2.7 $3.0 $3.2 $3.3 $3.
Slide 27: Debt Maturities
Debt Maturities ($ in millions) 2023 2024 2025 2026 2027 2028+ Total PPL Capital Funding $0 $0 $0 $650 $0 $2,396 $3,046 PPL Electric Utilities $90 $0 $0 $0 $108 $4,541 $4,739 Louisville Gas & Electric(1) $0 $0 $300 $90 $195 $1,839 $2,424 Kentucky Utilities(1) $0 $0 $250 $164 $0 $2,615 $3,029 Rhode I
Slide 28: Liquidity Profile
Liquidity Profile ($ in millions) Entity Facility Expiration Date Capacity Borrowed LCs & CP Issued (1)(2) Unused Capacity PPL Capital Funding Syndicated Credit Facility (3) Dec-2027 $1,250 $0 $0 $1,250 Bilateral Credit Facility Mar-2024 $100 $0 $0 $100 Uncommitted Credit Facility Mar-2024 $100 $0 $
Slide 29: 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 30: Appendix
Appendix August 4, 2023 PPL Corporation – 2nd Quarter Investor Update
Slide 31: Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Current Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Current Year After-Tax (Unaudited) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 ($ in millions) KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total Reported Earning
Slide 32: Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Prior Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Prior Year After-Tax (Unaudited) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 ($ in millions) KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total (1) Reported Earni
Slide 33: Reconciliation of PPL's Earnings Forecast
Reconciliation of PPL’s Earnings Forecast After-Tax (Unaudited) 2023 Forecast Range (per-share diluted) Midpoint High Low Estimate of Reported Earnings $ 1.35 $ 1.42 $ 1.27 Less: Special Items (expense) benefit: (1) Acquisition integration (2) (0.18) (0.18) (0.18) Sale of Safari Holdings(3) (0.01) (
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" 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 believes that Earnings from O