Slide 1: PPL 1st Quarter Earnings Call
PPL 1st Quarter Earnings Call | May 6, 2021
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 sale of PPL Corporation’s U.K. business, the anticipated acquisition of The Narragansett Electric Company (Narraganse
Slide 3: Agenda
Agenda I. Executive Review and Operational Updates Vince Sorgi II. 1st Quarter Financial Results Joe Bergstein III. Closing Remarks and Q&A Vince Sorgi PPL 1st Quarter Earnings Call – May 6, 2021 3
Slide 4: 1st Quarter Executive Review
1st Quarter Executive Review Solid start to 2021; results in line with expectations 1st Quarter Highlights Q1 Ongoing Earnings Results (1) (Earnings Per Share) ➢ Reported earnings of ($2.39) per share, $0.27 $0.28 reflecting special items of ($2.67) per share ▪ U.K. utility business now reflected as
Slide 5: Kentucky Rate Cases Update
Kentucky Rate Cases Update Entered into settlement agreements with all intervenors (1) Agreement Overview (1) Key Proposed Considerations (1) Initial Proposed ➢ Annual revenue increase of $217 million Application Agreement to be effective July 1, 2021 Revenue Increase ▪ First year also includes a $5
Slide 6: 1st Quarter Financial Results
1st Quarter Financial Results Q1 2021 vs. Q1 2020 Q1 Highlights: 2021 vs. 2020 (Earnings Per Share) ➢ Pennsylvania Regulated: ▪ Adjusted Margins $0.02 $0.28 $0.27 $0.00 Higher sales volumes primarily due ($0.01) to favorable weather vs. prior year Adj . Ma r gi n $0. 00 Adj . Ma r gi n $0. 02 I nt
Slide 7: Appendix
Appendix
Slide 8: Strategic Transactions Update
Strategic Transactions Update Regulatory approvals on track Sale of U.K. Utility Business (expected approval within 4 months of transaction announcement) Status Guernsey Financial Services Commission (GFSC) ✓ National Grid Shareowners ✓ U.K. Financial Conduct Authority (FCA) Pending Acquisition of N
Slide 9: Kentucky Rate Case Update
Kentucky Rate Case Update Updated procedural schedule Completion Timing Milestone ✓ 11/25/2020 LG&E/KU filed application to adjust rates ✓ 12/2/2020 KPSC approved rate case applications without deficiencies ✓ 12/23/2020 Last day for intervention requests to be accepted ✓ 1/8/2021 Initial request for
Slide 10: Weather-Normalized Electricity Sales
Weather-Normalized Electricity Sales (1) COVID-19 implications continue to moderate Weather-Normalized Electricity Sales Volume Variances by Quarter vs. Prior Year Pennsylvania Regulated Kentucky Regulated Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2020 Q3 2020 Q4 2020 Q1 2021 7.3% 7.1% 6.9% 4.9% 5.7% 3.5%
Slide 11: Sustainability Focus
Sustainability Focus Advancing a cleaner energy future PPL’s Clean Energy Strategy DECARBONIZE DECARBONIZE OUR ENABLE FURTHER OUR NON-GENERATION THIRD-PARTY RESEARCH AND GENERATION OPERATIONS DECARBONIZATION DEVELOPMENT Economically retire existing coal Reduce company energy use, Invest in transmiss
Slide 12: Sustainability Focus
Sustainability Focus Committed to diversity, equity, and inclusion PPL’s Diversity, Equity, and Inclusion Commitments Key Initiatives Implemented in 2020 ➢ Removed identification details from resume-screening for the ➢ Conducted listening and learning sessions in which employees summer intern progra
Slide 13: Sustainability Focus
Sustainability Focus Corporate governance highlights Independent Oversight by a Diverse Board Tenure-balanced 3 (0-4 Years) 56%Diverse 50% Women-led 56% With 9 years Nominees Committees 4 or less (10-15 years) 2 (5-9 Years) Diverse Board Nominees Independent Board Committees led (based on gender, ra
Slide 14: 2021 – 2025 Capital Plan
2021 – 2025 Capital Plan (1) ($ in billions) $2.1 $0.5 $1.6 $1.4 $1.4 $0.4 $0.4 $1.3 $0.3 $0.3 $0.3 $0.4 $0.3 $0.3 $0.8 $0.3 $0.5 $0.6 $0.6 $0.6 $0.4 $0.3 $0.2 $0.2 $0.1 2021E 2022E 2023E 2024E 2025E KY Coal-Related Capex PA Transmission KY Balance of Capex PA Distribution (1) Excludes PPL’s U.K. ut
Slide 15: Projected Rate Base by Utility
Projected Rate Base by Utility (1) ($ in billions) $20.4 $20.7 $20.8 $20.9 $20.1 $19.1 $3.9 $4.0 $4.1 $4.1 $4.2 $3.8 $4.8 $5.0 $5.1 $5.2 $5.2 $4.5 $5.8 $6.3 $6.5 $6.7 $7.0 $7.2 $5.0 $5.1 $4.9 $4.8 $4.5 $4.3 2020A 2021E 2022E 2023E 2024E 2025E KY Coal-Related Rate Base (2) PA Transmission KY Balance
Slide 16: Debt Maturities
Debt Maturities (1) 2026 and ($ in Millions) 2021 2022 2023 2024 2025 Beyond Total PPL Capital Funding $0 $900 $600 $350 $0 $3,780 $5,630 PPL Electric Utilities(2) $400 $474 $340 $0 $0 $3,075 $4,289 LG&E and KU Energy $250 $0 $0 $0 $0 $0 $250 Louisville Gas & Electric (2) $292 (3) $0 $0 $0 $300 $1,4
Slide 17: Liquidity Profile
Liquidity Profile (1) Letters of C redit & C om m ercial Unused Ex piration C apacity Borrow ed Paper Issued C apacity Entity F acility Date (M illions) (M illions) (M illions) (M illions) PPL C apital F unding Syndicated Credit Facility Jan-2024 $1,450 $0 $942 $508 Term Loan Credit Facility Mar-202
Slide 18: PPL’s Credit Ratings
PPL’s Credit Ratings (1) 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 LKE Holding Company PPL Ele
Slide 19: 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 (millions of dollars) 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
Slide 20: 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 (millions of dollars) March 31, 2020 KY PA Corp. & Disc. (2) Total Reg. Reg. Other Ops.(3) Reported Earnings (1) $ 127 $ 118 $ (41) $ 350 $ 554 Less: Special Items (expense) benefit: In
Slide 21: Adjusted Gross Margins Summary
Adjusted Gross Margins Summary (1) (Unaudited) Three Months Ended March 31, (millions of dollars, except share data) Per Share Diluted 2021 2020 Change (after-tax) Kentucky Adjusted Gross Margins $ 570 $ 547 $ 23 $ 0.02 Pennsylvania Adjusted Gross Margins Distribution $ 247 $ 242 $ 5 $ 0.00 Transmis
Slide 22: Reconciliation of Adjusted Gross Margins to Operating Income
Reconciliation of Adjusted Gross Margins to Operating Income (1) (Unaudited) Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (millions of dollars) KY PA KY PA Adjusted Adjusted Adjusted Adjusted Gross Gross Operating Gross Gross Operating Margins Margins Other Income Margins Marg
Slide 23: 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 sale of PPL Corporation’s U.K. business, the anticipated acquisition o
Slide 24: 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
Slide 25: 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