Slide 1: 3rd Quarter Earnings Call
© PPL Corporation 2013 3 rd Quarter Earnings Call PPL Corporation October 31, 2013 Exhibit 99.2
Slide 2: Cautionary Statements and Factors That May Affect Future Results
© PPL Corporation 2013 2 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
Slide 3: Agenda
© PPL Corporation 2013 3 Third Quarter Earnings Results, Operational Overview and 2013 Earnings Forecast Segment Results and Financial Overview Q&A W. H. Spence P. A. Farr Agenda
Slide 4: Earnings Results
© PPL Corporation 2013 4 Earnings Results
Slide 5: Increasing 2013 Ongoing Earnings Forecast
© PPL Corporation 2013 5 Segment 2012A Previous 2013E Revised 2013E Kentucky Regulated $0.33 $0.46 $0.45 U.K. Regulated 1.19 1.28 1.32 PA Regulated 0.22 0.27 0.28 Supply 0.68 0.34 0.34 Corporate and Other (0.03) (0.04) Total $2.42 $2.32 $2.35 $2.25 $2.30 Note: See Appendix for the reconciliation of
Slide 6: Regulated Operational Overview
© PPL Corporation 2013 6 • RIIO-ED1 Update • 2012-2013 Annual Incentive Awards for WPD • Kentucky RFP • Pennsylvania Transmission Update Regulated Operational Overview
Slide 7: Regulated Volume Variances
© PPL Corporation 2013 7 Note: Total includes Residential, Commercial and Industrial customer classes as well as “Other”, which is not depicted on the charts above. Regulated Volume Variances
Slide 8: Supply Operational Overview
© PPL Corporation 2013 8 • Montana Hydro Sale • Susquehanna update • U.S. District Court decisions in Maryland and New Jersey Supply Operational Overview
Slide 9: Ongoing Earnings Overview
© PPL Corporation 2013 9 Q3 2013 Q3 2012 Change Kentucky Regulated $0.14 $0.12 $0.02 U.K. Regulated 0.31 0.28 0.03 Pennsylvania Regulated 0.08 0.06 0.02 Supply 0.14 0.26 (0.12) Corporate and Other (0.01) (0.01) Total $0.66 $0.72 $(0.06) Ongoing Earnings Overview Note: See Appendix for the reconcilia
Slide 10: Kentucky Regulated Segment Earnings Drivers
© PPL Corporation 2013 10 3 rd Quarter 2012 EPS - Ongoing Earnings $0.12 Gross margins 0.04 Dilution (0.02) Total 0.02 2013 EPS - Ongoing Earnings $0.14 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.
Slide 11: U.K. Regulated Segment Earnings Drivers
© PPL Corporation 2013 11 3 rd Quarter 2012 EPS - Ongoing Earnings $0.28 Utility revenue 0.06 O&M (0.01) Income taxes and other 0.01 Dilution (0.03) Total 0.03 2013 EPS - Ongoing Earnings $0.31 U.K. Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing
Slide 12: Pennsylvania Regulated Segment Earnings Drivers
© PPL Corporation 2013 12 3 rd Quarter 2012 EPS - Ongoing Earnings $0.06 Gross delivery margins 0.03 Dilution (0.01) Total 0.02 2013 EPS - Ongoing Earnings $0.08 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations to reported
Slide 13: Supply Segment Earnings Drivers
© PPL Corporation 2013 13 3 rd Quarter 2012 EPS - Ongoing Earnings $0.26 East energy margins 0.01 West energy margins (0.02) O&M (0.02) Income taxes and other (0.07) Dilution (0.02) Total (0.12) 2013 EPS - Ongoing Earnings $0.14 Supply Segment Earnings Drivers Note: See Appendix for the reconciliati
Slide 14: Appendix
© PPL Corporation 2013 14 Appendix
Slide 15: Dividend Profile
© PPL Corporation 2013 15 A predominant rate-regulated business mix provides strong support for current dividend and a platform for future growth (1) Based on midpoint of revised forecast. Annualized dividend based on 3 rd quarter declaration. Actual dividends to be determined by Board of Directors.
Slide 16: U.K. Electricity Distribution Price Control Review Schedule
© PPL Corporation 2013 16 RIIO-ED1 Timetable Provisional Timing Milestone September 2012 Publication of Strategy Consultation March 2013 Strategy decision published July 2013 DNOs submit and publish business plans November 2013 Initial assessment and fast-track Draft Determination published February
Slide 17: Enhancing Value Through Active Hedging
© PPL Corporation 2013 17 Enhancing Value Through Active Hedging Capacity revenues are expected to be $590, $560 and $505 million for 2013, 2014 and 2015 respectively. Note: As of September 30, 2013 Includes PPL Montana's hydroelectric facilities. On September 26, 2013, PPL Montana, LLC reached an a
Slide 18: Competitive Generation Overview
© PPL Corporation 2013 18 Competitive Generation Overview Note: As of September 30, 2013 (1) Includes owned and contracted generation. (2) Other includes PPAs, renewables and NUGS. 16.0 13.6 (2) Total 3Q 2013 generation output (1) declined by about 15% compared to 3Q 2012 driven primarily by lower c
Slide 19: Market Prices
© PPL Corporation 2013 19 (1) 24-hour average. (2) NYMEX and TZ6NNY forward gas prices on 9/30/2013. (3) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price. Market Prices Balance of 2013 2014 2015 ELECTRIC PJM On-Peak $42 $44 $44 Off-Peak $32 $31 $31 AT C(1 ) $37 $37 $38 Mid-Colu
Slide 20: Operating Segment Capital Expenditures
© PPL Corporation 2013 20 ($ in billions) Note: Corporate and Other capital expenditures average approximately $50 million per year. (1) Figures based on assumed exchange rate of $1.58 / GBP. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience an
Slide 21: Projected Regulated Rate Base Growth
© PPL Corporation 2013 21 ($ 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) Figures based on assumed exchange rate of $1.58 / GBP and the RIIO-ED1 business plan as filed on July 1, 2
Slide 22: Weighted-Average Shares - Diluted EPS
© PPL Corporation 2013 22 For the Year Ended Forecast (1) December 31, 2013 665 December 31, 2014 670 December 31, 2015 670 Weighted-Average Shares - Diluted EPS (1) Forecast reflects PPL’s projected average shares outstanding after adjusting for conversion of equity issuance under the DRIP from ori
Slide 23: Debt Maturities
© PPL Corporation 2013 23 Debt Maturities ( Millions) 2013 2014 2015 2016 2017 PPL Capital Funding $0 $0 (1) $0 $0 $0 LG& E and KU Energy ( Holding Co LKE) 0 0 400 0 0 Louisville Gas & Electric 0 0 250 0 0 Kentucky Utilities 0 0 250 0 0 PPL Electric Utilities 0 10 (2) 100 0 0 PPL Energy Supply 438 3
Slide 24: Liquidity Profile
© PPL Corporation 2013 24 Liquidity Profile Letters of Credit Outstanding & Total Commercial Expiration Facility Paper Backup Draw n Availability Institution Facility Date (Millions) (Millions) (Millions) (Millions) PPL Energy Supply Syndicated Credit Facility Nov-2017 $ 3,000 $61 $ 0 $ 2,939 Letter
Slide 25: Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2013 25 Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings (Millions of Dollars, After-Tax) Quarter Ending September 30, 2013 Kentucky Regulated U. K. Regulated Pennsylvania Regulated Supply and Other Corporate Total Earnings from Ongoing Operatio
Slide 26: Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings (Per Share)
© PPL Corporation 2013 26 Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings Reconciliation of Third Quarter Earnings from Ongoing Operations to Reported Earnings (Per Share - Dil
Slide 27: Reconciliation of Year-to-date Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2013 27 Reconciliation of Year-to-date Earnings from Ongoing Operations to Reported Earnings Year-to-date September 30, 2013 (Millions of Dollars, After-Tax) Regulated Kentucky Regulated U. K. Regulated Pennsylvania Supply and Other Corporate Total Earnings from Ongoing Operations
Slide 28: Reconciliation of Year-to-date Earnings (Per Share - Diluted)
© PPL Corporation 2013 28 Reconciliation of Year-to-date Earnings from Ongoing Operations to Reported Earnings (Per Share - Diluted) Kentucky U. K. Pennsylvania Corporate Year-to- date September 30, 2013 (a) Regulated Regulated Regulated Supply and Other Total Earnings from Ongoing Operations $ 0.36
Slide 29: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings (Per Share)
© PPL Corporation 2013 29 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (Per Share - Diluted) Forecast Actual High Low 2013 2013 2012 2011 Earnings from Ongoing Operations $ 2.40 $ 2.30 $ 2.42 $ 2.73 Special Items: Adjusted energy-related economic activity, net (0.07)
Slide 30: Reconciliation of PPL's Earnings from Ongoing Operations, Year 2012
© PPL Corporation 2013 30 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (per share - diluted) Year-to-date December 31, 2012 Earnings from Ongoing Operations Special Items: Adjusted energy-related economic activity, net Foreign currency-related economic hedges Impairm
Slide 31: Reconciliation of PPL's Earnings from Ongoing Operations, Year 2010
© PPL Corporation 2013 31 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (per share - dilute d) Kentucky U. K. Pennsylvania Year-to-Date December 31, 2010 Regulated Regulated (a) Regulated Supply Other (b) Total Maine hydroelectric generation business Emission allowanc
Slide 32: Gross Margins Summary
© PPL Corporation 2013 32 Gross Margins Summary ( Millions of Dollars ) 2013 Three Months Ended September 30, 2013 2012 Change Per Share Diluted (after-tax) KY Gross Margins $ 457 $ 415 $ 42 $ 0.04 PA Gross Delivery Margins by Component Distribution Transmission Total $ $ 201 66 267 $ 185 51 $ 236 $
Slide 33: Reconciliation of Third Quarter Margins to Operating Income
© PPL Corporation 2013 33 Reconciliation of Third Quarter Margins to Operating Income Three Months Ended September 30, 2013 Three Months Ended September 30, 2012 (Millions of Dollars) Unregulated Unregulated Kentucky PA Gross Gross Kentucky PA Gross Gross Gross Delivery Energy Operating Gross Delive
Slide 34: Forward-looking statements and risk factors
© PPL Corporation 2013 34 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 believes th
Slide 35: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2013 35 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 performa
Slide 36: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2013 36 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 wi