Slide 1: 3rd Quarter Earnings Call
© PPL Corporation 2015 3rd Quarter Earnings Call PPL Corporation October 29, 2015 Exhibit 99.2
Slide 2: Cautionary Statements and Factors That May Affect Future Results
© PPL Corporation 2015 2 Cautionary Statements and Factors That May Affect Future Results Anystatementsmadeinthispresentationaboutfutureoperating resultsorotherfutureeventsareforward-lookingstatements under the Safe Harbor Provisions of the Private Securities LitigationReformActof1995.Actualresultsm
Slide 3: Agenda
© PPL Corporation 2015 Third Quarter Earnings Results, 2015 Earnings Forecast and Operational Overview U.K. Disclosures: Performance Against Incentives Segment Results and Financial Overview Q&A W. H. Spence V. Sorgi Agenda R. Symons 3
Slide 4: Earnings Results
© PPL Corporation 2015 P e r S h a r e Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. (1) Year-to-date reported earnings includes a $915 million loss from discontinued operations, or $1.36 per share. (2) 2014 was adjusted for Supply segment
Slide 5: 2015 Ongoing Earnings Forecast
© PPL Corporation 2015 $0.00 $1.00 $2.00 $3.00 2014 Adj Original 2015E Revised 2015E $2.15 P e r S h a r e 2015 Ongoing Earnings Forecast $2.25 $2.03 Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. (1) 2015 earnings and 2014 earnings (adjust
Slide 6: Operational Overview
© PPL Corporation 2015 Pennsylvania • Rate Case Update • Black box settlement reached • Includes an annual revenue increase of $124 million • Subject to approval by the Public Utility Commission • Rate increase expected to take effect January 1, 2016 • Smart Meter Program • 23rd JD Power Award Recei
Slide 7: Project Compass Summary
© PPL Corporation 2015 7 Proposed First Segment: • 95-mile initial segment from Blakely, PA to Ramapo, NY • PPL Electric filed interconnection request with NYISO on October 27th • Estimated cost of $500 -$600 million • Estimated in-service date in 2023 • Benefits as proposed include: • Substantial a
Slide 8: Project Compass
© PPL Corporation 2015 Project Compass 8
Slide 9: Operational Overview
© PPL Corporation 2015 Pennsylvania • Rate Case Update • Black box settlement reached • Includes an annual revenue increase of $124 million • Subject to approval by the Public Utility Commission • Rate increase expected to take effect January 1, 2016 • Smart Meter Program • 23rd JD Power Award Recei
Slide 10: U.K. Incentive Revenues - Summary
© PPL Corporation 2015 U.K. Incentive Revenues -Summary • Annual performance above or below the Ofgem targets for Customer Minutes Lost (CML), Customer Interruptions (CI) and the Broad Measure of Customer Satisfaction Survey is rewarded or penalized on a 2-year lag (i.e. 2015/2016 earned performance
Slide 11: U.K. Incentive Revenue - Quality of Service
© PPL Corporation 2015 U.K. Incentive Revenue –Quality of Service • WPD is on pace to be near the max reward for Customer Minutes Lost and Customer Interruptions for the 2015/2016 regulatory year. Note: Based on an average for all four DNOs. Actual results calculated at an individual DNO level. (+£1
Slide 12: U.K. Incentive Revenue - Customer Satisfaction
© PPL Corporation 2015 6.5 7.5 8.5 9.5 Interruptions Connections General Inquiries Broad Measure Customer Satisfaction Survey Through September 2015 (2012/13 prices) South West South Wales East Midlands West Midlands Average other DNOs U.K. Incentive Revenue –Customer Satisfaction • The Broad Measur
Slide 13: Summary Financial Highlights
© PPL Corporation 2015 DRAFT Summary Financial Highlights 13
Slide 14: Ongoing Earnings Overview
© PPL Corporation 2015 Q3 2015 Q3 2014 (adj) Change Pennsylvania Regulated $0.08 $0.08 $0.00 Kentucky Regulated 0.16 0.12 0.04 U.K. Regulated 0.29 0.28 0.01 Corporate and Other (0.02) (0.04) 0.02 Total $0.51 $0.44 $0.07 Ongoing Earnings Overview Note: See Appendix for the reconciliation of reported
Slide 15: Pennsylvania Regulated Segment Earnings Drivers
© PPL Corporation 2015 3rd Quarter 2014 EPS –Ongoing Earnings $0.08 Gross delivery margins 0.03 Operation and maintenance (0.02) Depreciation (0.01) Total (0.00) 2015 EPS –Ongoing Earnings $0.08 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of reported ear
Slide 16: Kentucky Regulated Segment Earnings Drivers
© PPL Corporation 2015 3rd Quarter 2014 EPS –Ongoing Earnings $0.12 Gross margins 0.05 Other (0.01) Total 0.04 2015 EPS –Ongoing Earnings $0.16 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. 16
Slide 17: U.K. Regulated Segment Earnings Drivers
© PPL Corporation 2015 3rd Quarter 2014 EPS –Ongoing Earnings $0.28 Utility revenues (0.05) Operation and maintenance (0.01) Depreciation 0.02 Income taxes and other 0.05 Total 0.01 2015 EPS –Ongoing Earnings $0.29 U.K. Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of
Slide 18: Foreign Currency Hedging Status and RPI Sensitivity
© PPL Corporation 2015 Foreign Currency Hedging Status and RPI Sensitivity 18 GBP Foreign Currency 2015 2016 2017 Percentage Hedged 100% 83% 66% Hedged Rate (GBP/USD) $1.54 $1.60 $1.60 Budgeted Rate on Open Position (GBP/USD) $1.60 $1.60 $1.60 EPS Sensitivities: Decrease in Rate (USD/GBP) (1) 0.05 $
Slide 19: U.K. Regulated Segment EPS from Ongoing Operations Projection
© PPL Corporation 2015 U.K. Regulated Segment EPS from Ongoing Operations Projection ($ Per Share) Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. Assumes foreign currency exchange rate of $1.60/£ for 2015E and 2016E on open positions. 19
Slide 20: Appendix
© PPL Corporation 2015 DRAFT Appendix 20
Slide 21: Significant Ongoing Capital Expenditure Program
© PPL Corporation 2015 Note: Corporate and Other capital expenditures average approximately $5million per year. (1) WPD figures based on assumed exchange rate of $1.60/£. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience and future projections.
Slide 22: Critical to Driving Strong Rate Base Growth
© PPL Corporation 2015 ( $ i n b i l l i o n s ) (1) WPD figures based on assumed exchange rate of $1.60/£ for 2015 -2019. (2) Represents utility capitalization for LKE. Represents Regulatory Asset Value (RAV) for WPD. Strong regulated rate base growth will drive EPS growth. …Critical to Driving Str
Slide 23: U.K. Regulated Segment Cash Repatriation
© PPL Corporation 2015 U.K. Regulated Segment Cash Repatriation Note: Assumes foreign currency exchange rate of $1.60/£ for 2015E, 2016E and 2017E. ($ in millions) Flexible strategy for meaningful U.K. cash repatriation. 23
Slide 24: U.S. Regulated Volume Variances
© PPL Corporation 2015 Note: Total includes Residential, Commercial and Industrial customer classes as well as “Other”, which is not depicted on the charts above. U.S. Regulated Volume Variances Residential Commercial Industrial Total Residential Commercial Industrial Total Weather-Normalized (chart
Slide 25: Kentucky Environmental Controls
© PPL Corporation 2015 Kentucky Environmental Controls Low Nox Burners SCR/SNCR Scrubbers Closed Cycle Cooling Tower Dry Handling/ Disposal/ Beneficial Use Baghouses NO x NO x SO 2 Water Intake Coal Combustion Residuals (CCRs) (2) Hg (Particulates) Unit 1 x x x x (1) (3b) Unit 2 x x x x (1) x Unit 1
Slide 26: Funding the Growth
© PPL Corporation 2015 Funding the Growth Strong domestic operating cash flows plus the U.K. dividend sufficient to fund the PPL dividend. Domestic debt and equity issuances fund domestic utility growth. (3) 2013A (4) 2014A (4) 2015E (5) Domestic Cash from Operations $1,707 $2,219 $1,610 Domestic Ma
Slide 27: Debt Maturities
© PPL Corporation 2015 ($ in millions) 2015 2016 2017 2018 2019 PPL Capital Funding $0 $0 $0 $250 $0 PPL Electric Utilities 100 0 0 0 0 LG&E and KU Energy 400 0 0 0 0 Louisville Gas & Electric (1) 250 25 194 98 40 Kentucky Utilities 250 0 0 0 0 WPD 0 460 100 0 0 Total 1,000 485 294 348 40 Debt Matur
Slide 28: Liquidity Profile
© PPL Corporation 2015 Liquidity Profile Note: As of September 30, 2015. Entity Facility Expiration Date Capacity (Millions) Letters of Credit & Commercial Paper Issued (Millions) Borrowed (Millions) Unused Capacity (Millions) PPL Capital Funding Syndicated Credit Facility Nov-2018 $300 $0 $0 $300 S
Slide 29: Strong Credit Ratings Post-Spin
© PPL Corporation 2015 WPD Holding Company LKE Holding Company PPL Electric UtilitiesLKE Operating Companies PPL Capital Funding Credit Rating Secured Unsecured Long-term Issuer Outlook S&P NR BBB+ NR Stable Moody’s NR Baa2 NR Stable Credit Rating Secured Unsecured Long-term Issuer Outlook S&P NR BB
Slide 30: Reconciliation of Segment Reported Earnings to Ongoing Earnings
© PPL Corporation 2015 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (1) Includes an $879 million charge reflecting the difference between PPL's recorded value for the Supply segment and the estimated fair value determined in accordance with applicable accoun
Slide 31: Reconciliation of Segment Reported Earnings to Ongoing Earnings
© PPL Corporation 2015 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (1) Includes an $879 million charge reflecting the difference between PPL's recorded value for the Supply segment and the estimated fair value determined in accordance with applicable accoun
Slide 32: Reconciliation of Segment Reported Earnings to Ongoing Earnings (Adjusted)
© PPL Corporation 2015 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (Adjusted) (1) Certain amounts have been reclassified to reflect the Supply segment as a discontinued operation. (2) Represents 2014 costs allocated to the Supply segment that remained with
Slide 33: Reconciliation of Segment Reported Earnings to Ongoing Earnings (Adjusted)
© PPL Corporation 2015 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (Adjusted) (1) The "If-Converted Method" has been applied to PPL's 2011 Equity Units, resulting in $9 million of interest charges (after-tax) being added back to earnings and approximately 1
Slide 34: Reconciliation of Segment Reported Earnings to Ongoing Earnings (Adjusted)
© PPL Corporation 2015 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (Adjusted) (1) The "If-Converted Method" has been applied to PPL's 2011 Equity Units, resulting in $9 million of interest charges (after-tax) being added back to earnings and approximately 1
Slide 35: Reconciliation of PPL's Forecast of Reported to Ongoing Earnings
© PPL Corporation 2015 Reconciliation of PPL's Forecast of Reported Earnings (Loss) to Earnings from Ongoing Operations (1) Includes an $879 million charge reflecting the difference between PPL's recorded value for the Supply segment and the estimated fair value determined in accordance with applica
Slide 36: Gross Margins Summary
© PPL Corporation 2015 Gross Margins Summary $ 510 $ 460 $ 50 $ 0.05 Distribution $ 207 $ 194 $ 13 $ 0.01 Transmission 102 85 17 0.02 $ 309 $ 279 $ 30 $ 0.03 Total Three Months Ended September 30, Per Share Diluted 2015 2014 Change (after-tax) KY Gross Margins PA Gross Delivery Margins (Unaudited) (
Slide 37: Reconciliation of Third Quarter Margins to Operating Income
© PPL Corporation 2015 Reconciliation of Third Quarter Margins to Operating Income $ 801 $ 519 $ 558 $ 1,878 $ 753 $ 477 $ 649 $ 1,879 228 228 240 240 23 154 177 24 128 21 173 20 (20) 28 31 423 482 27 25 415 467 11 215 226 2 231 233 1 25 53 79 25 53 78 Total Operating Expenses 291 210 691 1,192 293
Slide 38: Reconciliation of Domestic Cash Flows
© PPL Corporation 2015 Reconciliation of Domestic Cash Flows Note: For 2015, due to the generalized and forward-looking nature of this information, the Company has not reconciled the presented non-GAAP financial measures to the most directly comparable GAAP financial measures. (1) Primarily represen
Slide 39: Forward-Looking Statements Risk Factors
© PPL Corporation 2015 Statementscontainedinthispresentation,includingstatementswithrespecttofutureearnings,cashflows,financing,regulationandcorporate strategyare"forward-lookingstatements"withinthemeaningofthefederalsecuritieslaws.AlthoughPPLCorporationbelievesthatthe expectationsandassumptionsrefl
Slide 40: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2015 Definitions of Non-GAAP Financial Measures "Earnings from ongoing operations," should not be considered as an alternative to reported earnings, or net income, which is an indicator of operating performance determined in accordance with U.S. generally accepted accounting princi
Slide 41: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2015 Definitions of Non-GAAP Financial Measures PPLutilizesthefollowingnon-GAAPfinancialmeasuresasindicatorsofperformanceforitsbusinesses.Thesemeasuresarenotintendedtoreplace "OperatingIncome,"whichisdeterminedinaccordancewithGAAP,asanindicatorofoveralloperatingperformance. Otherco