Ppl Corporation · NYSE:PPL
Ppl — Deutsche Bank Conference 2011
23 slides from Ppl's conference presentation, May 9, 2011
Slide 1: PPL Corporation Deutsche Bank Conference
PPL Corporation May 11, 2011 Deutsche Bank Conference Exhibit 99.1
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: Investment Highlights
PPL has a highly attractive and differentiated position in the electric industry Investment Highlights § Predominantly rate-regulated business mix with significant growth prospects § Operations in constructive jurisdictions § Approximately two-thirds of regulated capital expenditures earn real-time
Slide 4: Our Strengths
Our Strengths § Strong regulatory relationships § Best in class reliability, customer service § Strong operating performance - regulated and competitive § Strong carbon and other environmental position § Excellent cost-management § Knowledgeable, dedicated employees
Slide 5: EBITDA Projection: Predominantly Regulated Business Mix
EBITDA Projection (1) Predominantly Regulated Business Mix (1) Approximate projections. (2) “Does The Shale Gas Glut Pose A Threat To U.S. Integrated Power Merchants’ Credit Quality?” Standard & Poor’s, October 22, 2010. (3) Based on EBIT estimate from company presentation. (4) PPL estimates; CN pre
Slide 6: Real-Time Recovery of Majority of Regulated Capex Spending
Real-Time Recovery of Majority of Regulated Capex Spending Approximately two-thirds of regulated capital expenditures earn returns subject to minimal or no regulatory lag $0.2 $0.2 $0.6 $0.3 $0.6 $0.7 $0.7 $0.5 $0.4 $0.4 Note: $ in billions. (1) Figures based on assumed exchange rate of $1.60 / GBP.
Slide 7: Regulated Rate Base Growth
Regulated Rate Base Growth ($ in billions) (1) Represents capitalization for LKE, as LG&E and KU rate constructs are based on capitalization. Represents Regulatory Asset Value (RAV) for WPD. (2) Includes RAV for WPD Midlands. Figures based on assumed exchange rate of $1.60 / GBP and are as of year-e
Slide 8: Dividend Profile
Dividend Profile $/Share Annualized A significantly more rate-regulated business mix provides strong support for current dividend and a platform for future growth (1) Ongoing EPS based on mid-point of forecast. Annualized dividend based on 1 st quarter declaration. Actual dividends to be determined
Slide 9: PPL
PPL
Slide 10: Appendix
Appendix
Slide 11: 2011 Earnings from Ongoing Operations Forecast
$2.50 $2.40 2011 Earnings from Ongoing Operations Forecast $3.13 $2.75 $/Share (1) Based on mid-point of forecasted earnings range. Note: See appendix for reconciliation of earnings from ongoing operations to reported earnings. (1) 2010A 2011E $2.60
Slide 12: Capital Expenditures
Capital Expenditures ($ in billions) (1) Includes capex for WPD Midlands. Figures based on assumed exchange rate of $1.60 / GBP. (2) Expect approximately 85% to receive timely returns via ECR mechanism based on historical experience. (1) (2) $2.8 $3.6 $4.1 $4.0 $3.9
Slide 13: Kentucky Regulated Volume Variances
Kentucky Regulated Volume Variances 13 © PPL Corporation 2011 12- months Ended 3/31 2011 vs 2010 -1.5% -1.8% 11.1% 2.0% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% Weather- Normalized ( charted) - 1.5% - 1.8% 11.1% 2.0% Actual 4.2% 1.2% 11.5% 4.9% Residential Commercial Industrial Total 3- months Ended 3/ 31
Slide 14: PA Regulated Volume Variances
14 © PPL Corporation 2011 PA Regulated Volume Variances % Change% Change Note: Total includes Residential, Commercial and Industrial customer classes as well as “Other” , which is not depicted on the charts above. 3- months Ended 3/31 2011 vs 2010 -1.2% 0.7% 1.3% 0.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0
Slide 15: Enhancing Value Through Active Hedging
2011 (4) 2012 Baseload Expected Generation (1) (Million MWhs) 50.7 54.7 East 42.5 46.2 West 8.2 8.5 Current Hedges (%) 99% 86% East 100% 84% West 97% 94% Average Hedged Price (Energy Only) ($/MWh) (2) (3) East $57 $55-56 West $54 $53-54 Current Coal Hedges (%) 99% 96% East 99% 94% West 100% 100% Ave
Slide 16: Market Prices
Market Prices (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices on 3/31/2011. (3) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price. 16 © PPL Corporation 2011 Market Prices 2011 2012 $52 $54 $37 $40 $44 $46 $30 $39 $21 $29 $26 $35 $4.57 $ 5.06 $5.07 $ 5.83 10.2 10.6 $
Slide 17: 2010 to 2011 Earnings Walk
Midlands $0.49 Legacy Ops $0.08 Other ($0.03) Margins ($0.51) Taxes ($0.25) O&M ($0.08) (1) Earnings from ongoing operations. Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. 2010 to 2011 Earnings Walk Earnings Per Share Other ($0.02) Margins $0.10
Slide 18: Free Cash Flow before Dividends
Free Cash Flow before Dividends Millions of Dollars (1) 2010 Free Cash Flow includes two months of the results of the Kentucky Regulated segment. Note: See Appendix for reconciliation of free cash flow before dividends to cash from operations. (1) Forecast
Slide 19: Shares Outstanding
Shares Outstanding 19 © PPL Corporation 2011 Shares Outstanding (1) Projected average common shares outstanding include common stock issued for the acquisition of WPD Midlands and projected shares issued to satisfy DRIP and compensation-related stock requirements. These projections do not include co
Slide 20: Reconciliation of Cash from Operations to Free Cash Flow before Dividends
2009 2010 2011 Cash from Operations $1,852 $2,034 $2,200 Increase (Decrease) in cash due to: Capital Expenditures (1,265) (1,644) (2,837) Sale of Assets 84 161 382 Other Investing Activities - Net (71) (20) 152 Free Cash Flow before Dividends $ 600 $ 531 $ (103) PPL Corporation Reconciliation of Cas
Slide 21: Reconciliation of Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings 21 © PPL Corporation 2011 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (Per Share) High Low 2011 2011 2010 2009 Earnings from Ongoing Operations per share of common stock 2.75 $ 2.50 $ 3.13
Slide 22: 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 23: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures “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 (GAA