Slide 1: Fourth Quarter Earnings Call
Exhibit 99.2 Fourth Quarter Earnings Call February 5, 2010
Slide 2: Cautionary Statements and Factors That May Affect Future Results
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 1995. Actual results may
Slide 3: Agenda
J. H. Miller P. A. Farr W. H. Spence Agenda • Fourth Quarter 2009 Earnings and 2010 Earnings Forecast and Outlook • Segment Results and Financial Overview • Operational Review • Q&A
Slide 4: Earnings Results
Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. Earnings Results Fourth Quarter Fourth Quarter Reported Earnings Year-to-Date Reported Earnings Year-to-Date Earnings from Ongoing Operations
Slide 5: Forecast: Strong Expected Earnings Growth
Forecast $2.02 $3.50 Per Share $1.95 $3.10 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. Strong Expected Earnings Growth
Slide 6: Ongoing Earnings Overview
Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. $ 0.06 $0.46 $0.52 Total 0.03 0.15 0.18 International Delivery (0.01) 0.10 0.09 Pennsylvania Delivery $ 0.04 $0.21 $0.25 Supply Change Q4 2008 Q4 2009 $ (0.07) $2.02 $1.95 Total (0.05) 0.77 0.72 Inter
Slide 7: Supply Segment Earnings Drivers
Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. 2009 2008 EPS - Ongoing Earnings $0.81 Margins - East 0.19 Margins - West 0.07 O&M (0.11) Depreciation (0.05) Income Taxes & Other (0.03) Total 0.07 2009 EPS - Ongoing Earnings $0.88 Supply Segment Ea
Slide 8: Pennsylvania Delivery Segment Earnings Drivers
Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. 2009 2008 EPS - Ongoing Earnings $0.44 Delivery Margins (0.04) Financing Costs (0.04) Income Taxes & Other (0.01) Total (0.09) 2009 EPS - Ongoing Earnings $0.35 Pennsylvania Delivery Segment Earnings
Slide 9: International Delivery Segment Earnings Drivers
Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. 2009 2008 EPS - Ongoing Earnings $0.77 Delivery Margins 0.05 O&M 0.03 Financing Costs 0.07 Effect of Exchange Rates (0.22) Income Taxes & Other 0.02 Total (0.05) 2009 EPS - Ongoing Earnings $0.72 Inte
Slide 10: Forecast: Strong Expected Earnings Growth
Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. Forecast $2.02 $3.50 Per Share $1.95 $3.10 Strong Expected Earnings Growth
Slide 11: Free Cash Flow before Dividends Forecast
Millions Note: See Appendix for reconciliation of cash from operations to free cash flow before dividends Free Cash Flow before Dividends Forecast
Slide 12: PA Delivery Segment Operational Update
PA Delivery Segment Operational Update • PA PUC conducted a binding poll, indicating its intent to approve the PPL electric portion of the Susquehanna-Roseland 500 Kv transmission line – Final order expected in February • 288,000 customers have selected retail electricity suppliers for 2010 – No mat
Slide 13: International Delivery Segment Operational Update
Exceptional performance has earned WPD additional revenue of over $240 million with potential to earn more International Delivery Segment Operational Update • The Ofgem final proposal was a constructive outcome for WPD • Increases revenues by an average of 6.9% per year (plus inflation) • Higher rev
Slide 14: Supply Segment Operational Update
Supply Segment Operational Update • Susquehanna nuclear power plant set generation record • Susquehanna operating licenses renewed for an additional 20 years • Received FERC approval to expand Holtwood hydro plant in PA • Started construction to expand Rainbow hydro facility in MT • Completed constr
Slide 15: Supply Segment Asset Hedge Positions
2010 2011 2012 Baseload Expected Generation* (1,000 MWhs) 52.1 52.1 56.1 East 43.4 43.8 47.6 West 8.7 8.3 8.5 Current Hedges (%) 99% 88% 55% East 100% 88% 51% West 97% 86% 78% Average Hedged Price (Energy Only) ($/MWh) $59 $58 $61 East $60 $59 $62 West $49 $56 $57 Expected Average Price (Fully Loade
Slide 16: Current Fuel Contracts - Base Prices
2010 2011 2012 Hedge Level Price Hedge Level Price Hedge Level Price % Fixed Base Price 93% $49 28% $51 5% $63 % Collars 0% N/A 72% $44-$51 95% $42-$50 % Diesel Surcharge 7% $46 0% N/A 0% N/A (1) Weighted Average $/ton at mine for east wholly owned plants, excludes Keystone & Conemaugh Note: As of 1
Slide 17: PPL
ppl
Slide 18: Market Prices
(1) Market prices based on the average of broker quotes as of 12/31/2009 (2) 24-hour average (3) NYMEX and TZ6NNY forward gas prices on 12/31/2009 (4) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price Market Prices Market Prices Actual Forward(1) 2009 2010 2011 2012 ELECTRIC PJM
Slide 19: PPL Supply Business Overview
Gas/Oil 37% Coal 36% Gas/Oil 9% Coal 52% PPL Supply Business Overview Nuclear 19% Hydro 8% 2010E Installed Capacity MW Nuclear 31% Hydro 8% Note: Includes tolling agreements
Slide 20: PPL's Generation Portfolio
East 10,433 MW (1) Includes tolling agreements, and renewable energy projects (2) Includes MWs associated with the proposed sale of the remaining PPL Maine hydro assets West 1,286 MW PPL’s Generation Portfolio Total Domestic Generation: 11,719 MW Planned Uprate Projects or Additions: 239 MW Coal 3,4
Slide 21: Capital Expenditures by Segment
(Millions) $1,861 $2,069 $1,873 Capital Expenditures by Segment
Slide 22: PPL Electric Utilities Rate Base
(Millions) $3,363 $3,928 $4,457 $4,767 $5,193 CAGR Distribution = 7.3% Transmission = 22.0% $2,950 PPL Electric Utilities Rate Base
Slide 23: PPL Electric Utilities 2011 to mid-2013 Procurement Plan Schedule
August 11, 2009 July 19, 2011 October 20, 2009 October 18, 2011 January 19, 2010 January 9, 2012 April 20, 2010 April 3, 2012 July 20, 2010 July 17, 2012 October 19, 2010 October 16, 2012 April 18, 2011 January 22, 2013 P P P Completed P PPL Electric Utilities 2011 to mid-2013 Procurement Plan Sched
Slide 24: Annualized Dividend Profile
$/Share Annualized Dividend Profile
Slide 25: Debt Maturities
(1) Bonds defeased in substance in 2008 by depositing sufficient funds with the trustee Note: As of 12/31/2009 Debt Maturities Debt Maturities (Millions) 2010 2011 2012 2013 2014 PPL Energy Supply $0 $500 $0 $737 $300 PPL Capital Funding 0 0 0 0 0 PPL Electric Utilities 0 0 0 400 10 (1) WPD Group 0
Slide 26: Liquidity Profile
(1) Reported as of 12/31/2009 Domestic facilities consist of a diverse bank group, with no bank and its affiliates providing an aggregate commitment of more than 15% of the total committed capacity. Liquidity Profile Liquidity Profile Total Letters of Credit Expiration Facility Outstanding (1) Drawn
Slide 27: PPL Energy Supply Collateral Profile
PPL Energy Supply Collateral Profile
Slide 28: Supply Segment Reconciliation of Cash from Operations to Free Cash Flow
2008 2009 2010 Cash from Operations $595 $1,310 $1,435 Increase/(Decrease) in cash due to: Capital Expenditures (939) (720) (952) Investment in Energy Project (203) Asset Sales (1), (2) 84 167 Other Investing Activities-net (58) (75) Free Cash Flow before Dividends ($605) $ 599 $650 (Millions) Actua
Slide 29: PA Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow
2008 2009 2010 Cash from Operations $643 $294 $264 Less Transition Bond Repayment (293) Increase/(Decrease) in cash due to: Capital Expenditures (286) (298) (589) Asset Sales & Other 303 3 Free Cash Flow before Dividends $367 ($1) ($325) Note: Asset Sales in 2008 includes the net proceeds from the s
Slide 30: International Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow
2008 2009 2010 Cash from Operations $279 $248 $278 Increase/(Decrease) in cash due to: Capital Expenditures Other Investing Activities - Net (278) (247) 1 (320) Free Cash Flow before Dividends $1 $2 ($42) (Millions) Actual Projected International Delivery Segment Reconciliation of Cash from Operatio
Slide 31: Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings
(Millions) Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings (Millions) Quarter Ending December 31, 2009 Earnings from ongoing operations Special Items: Energy-related economic
Slide 32: Reconciliation of Fourth Quarter Earnings (Per Share)
(Dollars Per Share) Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings (Dollars Per Share) Quarter Ending December 31, 2009 Earnings from ongoing operations Special Items: Energ
Slide 33: Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings
(Millions) Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings (Millions) Year-to-Date December 31, 2009 Earnings from ongoing operations Special Items: Energy-related economic activ
Slide 34: Reconciliation of Year-to-Date Earnings (Per Share)
(Dollars Per Share) Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings (Dollars Per Share) Pennsylvania International Supply Delivery Delivery Total Year-to-Date December 31, 2009 E
Slide 35: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings Earnings from Ongoing Operations per share of common stock High 2010 $3.50 Forecast Low 2010 $3.10 2009 $1.95 Actual 2008 $2.02 2007 $2.60 Speci
Slide 36: Reconciliation of Year-to-Date Operating Income and Energy Margins
(a) See additional information on the following slide. (Millions of Dollars) Reconciliation of Year-to-Date Operating Income and Energy Margins Reconciliation of Year-to-Date Operating Income and Energy Margins (Millions of Dollars) Year Ended December 31, Per Share 2009 2008 Change (after-tax) East
Slide 37: Reconciliation of Year-to-Date Operating Income and Energy Margins (cont.)
(Millions of Dollars) Reconciliation of Year-to-Date Operating Income and Energy Margins Reconciliation of Year-to-Date Operating Income and Energy Margins (Millions of Dollars) Year Ended December 31, 2009 2008 Revenue adjustments WPD utility revenue $ (684) $ (824) Domestic delivery component of u
Slide 38: Credit Ratings
Moody’s Standard & Poor’s Fitch PPL Corporation Issuer Rating Baa2 BBB BBB Outlook NEGATIVE NEGATIVE STABLE PPL Energy Supply Issuer Rating BBB BBB Tax-Exempt Bonds (1) Aaa AAA Senior Notes Baa2 BBB BBB Outlook STABLE NEGATIVE STABLE PPL Capital Funding Issuer Rating BBB Senior Unsecured Debt Baa2 B
Slide 39: Credit Ratings (cont.)
Credit Ratings (cont.) Commercial Paper A- BBB+ Baa1 Senior Unsecured Debt F2 P-2 Commercial Paper POSITIVE NEGATIVE STABLE Outlook BBB+ BBB+ Baa1 Issuer Rating A- BBB+ Baa1 Senior Unsecured Debt F2 Commercial Paper POSITIVE NEGATIVE STABLE Outlook Western Power Distribution (South West) PLC BBB+ BB
Slide 40: Forward-looking statements
Statements contained in this presentation, including statements with respect to future earnings, energy prices, margins and sales, growth, revenues, expenses, cash flow, asset disposition, marketing performance, hedging, regulation, corporate strategy and generating capacity and performance, are “fo
Slide 41: Earnings from ongoing operations definition
“Earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAAP). PPL believes that “earnings from ongoin