Ppl Corporation · NYSE:PPL
Ppl — Barclays CEO Energy-Power Conference 2013
28 slides from Ppl's conference presentation, Sep 11, 2013
Slide 1: Barclays CEO Energy-Power Conference
Exhibit 99.1 Barclays CEO Energy-Power Conference September 11, 2013 © PPL Corporation 2013
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: PPL Delivery and Generation Assets
PPL Delivery and Generation Assets U.S. Delivery Generation U.K. Delivery •Territories: PPL Electric Assets: Competitive power Territories: WPD (South • Kentucky Utilities Regulated plants power WPD Wales)(South • Louisville Utilities Gas and plants WPD West) (West Electric WPD (East Midlands) Midla
Slide 4: PPL Well-Positioned for Future Success
PPL Well-Positioned for Future Success • Rate-regulated business provides earnings and dividend stability in weak economic and market environment – 85% of projected 2013 EPS from regulated businesses – Substantial projected growth in rate base: ~8% CAGR from 2013-2017 – Business Risk Profile rated “
Slide 5: Real-Time Recovery of Regulated Capex Spending
Real-Time Recovery of Regulated Capex Spending Approximately two-thirds of regulated capital expenditures earn returns subject to minimal or no regulatory lag ($ in billions) 73% 71% 69% $0.1 $0.1 65% $0.1 61% $0.6 $0.2 $0.4 $0.2 $0.6 $0.4 $0.3 $0.4 $0.3 $0.1 $0.6 $0.6 $1.2 $1.2 $1.1 $1.2 $1.1 (1) (
Slide 6: U.K. Regulated Segment Investment Highlights
U.K. Regulated Segment Investment Highlights • Highly attractive rate-regulated business – Regulator-approved multi-year forward-looking revenues based on future business plan, including capital expenditures and O&M plus adjustments for inflation – Real-time return of and return on capital investmen
Slide 7: Kentucky Regulated Segment Investment Highlights
Kentucky Regulated Segment Investment Highlights • Efficient, well-run utilities focused on safety, reliability and customer service • Constructive regulatory environment that provides a timely return on a substantial amount of planned capex over the next 5 years – Environmental Cost Recovery (ECR):
Slide 8: Pennsylvania Regulated Segment Investment Highlights
Pennsylvania Regulated Segment Investment Highlights Projected Transmission Rate Base • Significant growth in transmission portion of Growth business which earns a favorable rate of return on a near real-time basis – CAGR of 21.8% in transmission rate base through 2017 driven by initiatives to impro
Slide 9: Pennsylvania Regulated: Transmission
Pennsylvania Regulated: Transmission Susquehanna-Roseland Project: • PPL Electric to build Pennsylvania portion of the 150-mile Susquehanna to Roseland, NJ 500 kV transmission line. New Jersey portion of the line to be built by PSEG • Already approved by both PA and NJ state utility commissions • RO
Slide 10: Supply Segment Investment Highlights
Supply Segment Investment Highlights • Very well-positioned competitive generation PJM Generation Assets – PJM assets: • Excellent mix of low marginal cost nuclear and hydro facilities, efficient supercritical coal units and attractive gas-fired assets that capture market opportunity and back-stop b
Slide 11: Dividend Profile
Dividend Profile A predominant rate-regulated business mix provides strong support for current dividend and a platform for future growth $/Share Annualized (1) (2) (3) (1) Based on midpoint of revised forecast. Annualized dividend based on 2nd quarter declaration. Actual dividends to be determined b
Slide 12: Appendix
Appendix © PPL Corporation 2013 12
Slide 13: 2013 Ongoing Earnings Forecast
2013 Ongoing Earnings Forecast $2.42 $2.40 $2.25 2013E Segment 2012A Midpoint Kentucky Regulated $0.33 $0.46 U.K. Regulated 1.19 1.28 PA Regulated 0.22 0.27 Supply 0.68 0.34 Corporate and Other (0.03) Total $2.42 $2.32 Note: See Appendix for the reconciliation of earnings from ongoing operations to
Slide 14: Weighted-Average Shares - Diluted EPS
Weighted-Average Shares - Diluted EPS Average Common Shares Outstanding (in millions) For the Year Ended Original Forecast(1) Revised Forecast(2) December 31, 2013 615 665 December 31, 2014 670 670 December 31, 2015 680 670 (1) Original Forecast of average common shares outstanding included the issu
Slide 15: U.K. Electricity Distribution Price Control Review Schedule
U.K. Electricity Distribution Price Control Review Schedule RIIO-ED1 Timetable Provisional Timing Milestone P September 2012 Publication of Strategy Consultation P March 2013 Strategy decision published P July 2013 DNOs submit and publish business plans November 2013 Initial assessment and fast-trac
Slide 16: Enhancing Value Through Active Hedging
Enhancing Value Through Active Hedging Capacity revenues are expected to be $590 million and $560 million for 2013 and 2014, respectively. Note: As of June 30, 2013 (1) Represents expected sales of Supply segment based on current business plan assumptions. (2) The 2014 ranges of average energy price
Slide 17: Competitive Generation Overview
Competitive Generation Overview Total 2Q generation output(1) improved by more than 10% compared to 2Q 2012 10.8 9.8 (2) Note: As of June 30, 2013 (1) Includes owned and contracted generation. (2) Other includes PPAs, renewables and NUGS. © PPL Corporation 2013 17
Slide 18: Market Prices
Market Prices (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices on 6/30/2013. (3) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price. © PPL Corporation 2013 18 EEI Bkg_inside2 © PPL Corporation 2013 Burst 18 (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices
Slide 19: Operating Segment Capital Expenditures
Operating Segment Capital Expenditures ($ in billions) Declining capital expenditures provide additional financial flexibility $4.4 $3.8 $3.4 $3.4 $3.3 (1) (2) Note: Corporate and Other capital expenditures average approximately $50 million per year. (1) Figures based on assumed exchange rate of $1.
Slide 20: Projected Regulated Rate Base Growth
Projected Regulated Rate Base Growth ($ in billions) 5-Year Regulatory Asset Base(1) CAGR: 7.9% $27.5 $26.1 $24.6 $22.9 $21.0 $18.8 (2) (1) Represents capitalization for LKE, as LG&E and KU rate constructs are based on capitalization. Represents Regulatory Asset Value (RAV) for WPD. (2) Figures base
Slide 21: Debt Maturities
Debt Maturities Note: As of June 30, 2013 (1) Excludes $978 million of junior subordinated notes due 2019 that are a component of PPL’s 2011 Equity Units and may be put back to PPL Capital Funding if the remarketing in 2014 is not successful. (2) Bonds defeased in substance in 2008 by depositing suf
Slide 22: Liquidity Profile
Liquidity Profile Note: As of June 30, 2013 • Credit facilities consist of a diverse bank group, with no bank and its affiliates providing an aggregate commitment of more than 8% of the total committed capacity for the domestic facilities and 13% of the total committed capacity for WPD’s facilities.
Slide 23: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings © PPL Corporation 2013 23 EEI Bkg_inside2 © PPL Corporation 2013 Burst 23 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings High Low 20132013201220112.40$ 2.25$ 2.42$ 2.73$ (0.05) (0.05) 0.07 0.
Slide 24: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (a) The results of operations for 2012 are not comparable with 2011 due to the acquisition of WPD Midlands. WPD Midlands' results are consolidated on a one-month lag, and include eight months of results in 2011, as the dat
Slide 25: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (a) Following the sale of PPL's Latin American Businesses, this segment was primarily engaged in regulated electricity delivery operations in the U.K. As a result, the "International Regulated" segment was renamed "U.K. Re
Slide 26: Forward-Looking Information Statement
Forward-Looking Information Statement Statements contained in this presentation, including statements with respect to future earnings, cash flows, financing, regulation and corporate strategy are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation
Slide 27: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures "Earnings from ongoing operations," also referred to as "ongoing earnings," should not be considered as an alternative to reported earnings, or net income attributable to PPL shareowners, which is an indicator of operating performance determined in accordan
Slide 28: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures PPL uses "Kentucky Gross Margins," "Pennsylvania Gross Delivery Margins" and "Unregulated Gross Energy Margins." These non-GAAP financial measures are not intended to replace "Operating Income," which is determined in accordance with GAAP, as an indicator o