Slide 1: 4th Quarter Earnings Call
Exhibit 99.3 th 4 Quarter Earnings Call PPL Corporation February 10, 2012 Revised February 27, 2012 ©PPL Corporation 2012 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: Agenda
Agenda 2011 Earnings Results J. H. Miller 2011 Operational Overview and 2012 W. H. Spence Earnings Forecast 2011 Segment Results and Financial P. A. Farr Overview Q&A ©PPL Corporation 2012 3
Slide 4: Earnings Results
Earnings Results Fourth Quarter Fourth Quarter Reported Earnings Earnings from Ongoing Operations $1.00 $1.00 $0.83 $0.78 $0.73 $0.71 $0.50 $0.50 $0.00 $0.00 4Q 2010 4Q 2011 4Q 2010 4Q 2011 Year-to-Date Year-to-Date Reported Earnings Earnings from Ongoing Operations $3.50 $3.50 $3.13 $3.00 $2.70 $3.
Slide 5: PPL Well-Positioned for Future Success
PPL Well-Positioned for Future Success Increased mix of rate-regulated earnings provides stability in weak economic environment Approximately 70% of projected 2012 EPS from regulated businesses Substantial organic growth in rate base: ~8% CAGRfrom 2012-2016 Business Risk Profile rated “Excellent” by
Slide 6: 2011 Operational Review
2011 Operational Review Midlands Integration Kentucky ECR approval Pennsylvania storm restorations Overcame Susquehanna outages Supply rail contract negotiation ©PPL Corporation 2012 6
Slide 7: International Regulated Segment Investment Highlights
International Regulated Segment Investment Highlights Highly attractive rate-regulated business with significant growth prospects Regulator-approved 5-year forward-looking revenues based on future business plan, including capital expenditures and O&M plus adjustments for inflation Real-time return o
Slide 8: Kentucky Regulated Segment Investment Highlights
Kentucky Regulated Segment Investment Highlights Efficient, well-run utility focused on safety, reliability and customer service Projected rate base CAGR of 9.6% through 2016 Constructive regulatory environment that provides a timely return on a substantial amount of planned capex over the next 5 ye
Slide 9: Pennsylvania Regulated Segment Investment Highlights
Pennsylvania Regulated Segment Investment Highlights Significant growth in transmission portion of business which earns a favorable rate of return on a near real-time basis CAGR of 21.7% in transmission rate base through 2016 driven by initiatives to improve aging infrastructure and Susquehanna-Rose
Slide 10: Supply Segment Investment Highlights
Supply Segment Investment Highlights Very well-positioned competitive generation PJM assets: Low marginal cost nuclear and hydro facilities Efficient supercritical coal units with fuel switching optionality Attractive gas-fired assets that capture market opportunity and back-stop base load unit avai
Slide 11: Enhancing Value Through Active Hedging
Enhancing Value Through Active Hedging 2012 2013 Baseload (1) Expected Generation (Million MWhs) 53.7 53.1 East 45.5 44.8 West 8.2 8.3 Current Hedges (%) 95-99% 80-84% East 94-98% 80-84% (4) West 98-102% 82-86% Average Hedged Price (Energy Only) ($/MWh)(2) (3) East $54-55 $49-52 West (4) $50-52 $47-
Slide 12: 2012 Earnings Forecast
2012 Earnings Forecast $/Share $3.50 $3.00 $2.73 $2.45 $2.50 $2.00 $2.15 $1.50 $1.00 $0.50 $0.00 2011A 2012E Note: See appendix for reconciliation of earnings from ongoing operations to reported earnings. Revised February 27, 2012 ©PPL Corporation 2012 12
Slide 13: Ongoing Earnings Overview
Ongoing Earnings Overview Q4 2011 Q4 2010 Change Kentucky Regulated $0.06 $0.07 ($0.01) International Regulated 0.28 0.07 0.21 Pennsylvania Regulated 0.10 0.05 0.05 Supply 0.27 0.64 (0.37) Total $0.71 $0.83 ($0.12) 2011 2010 Change Kentucky Regulated $0.40 $0.06 $0.34 International Regulated 0.87 0.
Slide 14: International Regulated Segment Earnings Drivers
International Regulated Segment Earnings Drivers 2011 2010 EPS –Ongoing Earnings $0.53 Midlands(1) 0.50 Delivery revenue 0.13 O&M (0.02) Income taxes & other (0.06) Effect of exchange rates 0.03 Dilution (0.24) Total 0.34 2011 EPS –Ongoing Earnings $0.87 Note: See Appendix for the reconciliation of
Slide 15: Pennsylvania Regulated Segment Earnings Drivers
Pennsylvania Regulated Segment Earnings Drivers 2011 2010 EPS –Ongoing Earnings $0.27 Electric Delivery Margins 0.09 O&M 0.01 Income taxes & other 0.03 Dilution (0.09) Total 0.04 2011 EPS –Ongoing Earnings $0.31 Note: See Appendix for the reconciliation of earnings from ongoing operations to reporte
Slide 16: Supply Segment Earnings Drivers
Supply Segment Earnings Drivers 2011 2010 EPS –Ongoing Earnings $2.27 Margins (0.55) O&M (0.09) Income taxes & other (0.17) Dilution (0.31) Total (1.12) 2011 EPS –Ongoing Earnings $1.15 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. Revised Februa
Slide 17: 2011A to 2012E Earnings Walk
2011A to 2012E Earnings Walk Int'l Regulated Supply $3.00 $0.23 ($0.40) $2.73 PA $2.75 Regulated KY Midlands: $0.28 (1) ($0.09) Share Revenue: $0.14 Regulated O&M: ($0.06) ($0.04) Dilution $2.50 Other: ($0.11) ($0.13) Margins: ($0.19) Currency: ($0.02) O&M: ($0.11) Other: ($0.10) O&M: ($0.08) $2.30
Slide 18: Free Cash Flow before Dividends
Free Cash Flow before Dividends Free Cash Flow before Reconciliation of Cash from Dividends Operations to Free Cash Flow (Millions of Dollars) before Dividends (Millions of dollars) $800 $600 $531 $400 $314 2010A 2011A 2012E Cash from Operations $ 2,034 $ 2,507 $ 2,800 $200 Increase (Decrease) in ca
Slide 19: Continued Dividend Increases
Continued Dividend Increases A significantly more rate-regulated business mix provides strong support for current dividend and a platform for future growth 2.9% Dividend $/Share Increase Annualized $1.50 $1.30 (2) $1.10 Ongoing EPS Dividend $0.90 $0.70 $0.50 (1) 2008 2009 2010 2011 2012 (1) Ongoing
Slide 20: Appendix
Appendix ©PPL Corporation 2012 20
Slide 21: Midlands Integration – Improved Network Performance
Midlands Integration – Improved Network Performance Percentage of customers restored within one hour of an HV fault Customer Minutes Lost 85% 80% 8.00 7.00 75% 6.00 70% 5.00 65% 4.00 3.00 60% 2.00 55% 1.00 50% 0.00 Number of customers off more than 18 hours Customer Interruptions (per 100 customers)
Slide 22: Regulated Volume Variances
Regulated Volume Variances KY Regulated Weather-Normalized Sales 3-months ended 12/31/11 vs 12/31/10 12-months ended 12/31/11 vs 12/31/10 2.5% 2.02% 2.0% 1.5% 1.27% 0.89% 1.0% 0.38% 0.5% 0.18% 0.0% -0.5% -1.0% -1.5% -1.06% -1.37% -1.44% -2.0% Residential Commercial Industrial Total Residential Comme
Slide 23: Market Prices
Market Prices Balance of 2013 2012 ELECTRIC PJM On-Peak $39 $43 Off-Peak $28 $31 (1) ATC $33 $37 Mid-Columbia On-Peak $26 $32 Off-Peak $20 $25 (1) ATC $24 $29 GAS (2) NYMEX $2.86 $3.56 TZ6NNY $3.13 $3.87 PJM MARKET (3) HEAT RATE 12.5 11.1 CAPACITY PRICES $123.63 $187.49 (Per MWD) EQA 88% 90% (1) 24-
Slide 24: Capital Expenditures
Capital Expenditures ($ in billions) $4.5 $4.2 $4.1 $4.0 $3.8 $0.7 $0.6 $3.7 $3.5 $0.5 $0.9 $0.4 $0.3 $0.3 $2.9 $3.0 $0.5 $0.5 $0.3 $0.4 $0.6 $2.5 $0.3 $0.7 $0.8 $0.7 $0.3 $2.0 $0.6 $0.3 $1.5 $0.8 $0.8 $0.7 $0.5 $0.6 $0.1 $1.0 $0.5 $1.1 $1.1 $1.1 $1.1 $1.1 $0.0 2012E 2013E 2014E 2015E 2016E (1) (2)
Slide 25: Regulated Rate Base Growth
Regulated Rate Base Growth ($ in billions) 2012E – 2016E Regulatory Asset Base (1) CAGR: 7.8% $30.0 $25.8 $25.2 $25.0 $23.5 $5.4 $21.3 $5.2 $4.7 $20.0 $19.0 $17.7 $4.1 $3.5 $3.2 $15.0 $10.2 $10.2 $9.4 $8.3 $7.1 $6.5 $10.0 $5.0 $9.4 $9.8 $10.2 $8.0 $8.4 $8.9 $0.0 2011A 2012E 2013E 2014E 2015E 2016E (
Slide 26: Debt Maturities
Debt Maturities (Millions) 2012 2013 2014 2015 2016 (1) (2) PPL Capital Funding $0 $0 $0 $0 $0 LG&E and KU Energy (Holding Co LKE) 0 0 0 400 0 Louisville Gas & Electric 0 0 0 250 0 Kentucky Utilities 0 0 0 250 0 (3) PPL Electric Utilities 0 0 10 100 0 (4) PPL Energy Supply 0 737 300 300 350 WPD 0 0
Slide 27: Liquidity Profile
Liquidity Profile Letters of Credit Outstanding & Total Commercial Expiration Facility Paper Backup Drawn Availability Institution Facility Date (Millions) (Millions) (Millions) (Millions) PPL Energy Supply Syndicated Credit Facility Oct-2016 $3,000 $541 $0 $2,459 Letter of Credit Facility Mar-2013
Slide 28: Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings
Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings (Millions of Dollars, After-Tax) Kentucky International Pennsylvania Quarter Ending December 31, 2011 Regulated Regulated Regulated Supply Other Total Earnings from Ongoing Operations $ 36 $ 164 $ 58 $ 152 $ 410 S
Slide 29: Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings
Reconciliation of Fourth Quarter Earnings from Ongoing Operations to Reported Earnings (Per Share) Kentucky International Pennsylvania Quarter Ending December 31, 2011 Regulated Regulated Regulated Supply Other Total Earnings from Ongoing Operations $ 0.06 $ 0.28 $ 0.10 $ 0.27 $ 0.71 Special Items:
Slide 30: 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 of Dollars, After-Tax) Kentucky International Pennsylvania Year-to-Date December 31, 2011 Regulated Regulated Regulated Supply Total Earnings from Ongoing Operations $ 220 $ 482 $ 173 $ 634 $ 1,509 Special
Slide 31: 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 of Dollars, After-Tax) Kentucky International Pennsylvania Year-to-Date December 31, 2010 Regulated (a) Regulated Regulated Supply Other (b) Total Earnings from Ongoing Operations $ 25 $ 230 $ 115 $ 990 $
Slide 32: Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings
Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings (Per Share) Kentucky International Pennsylvania Year-to-Date December 31, 2011 Regulated Regulated Regulated Supply Total Earnings from Ongoing Operations $ 0.40 $ 0.87 $ 0.31 $ 1.15 $ 2.73 Special Items: Adjusted e
Slide 33: Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings
Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings (Per Share) Kentucky International Pennsylvania Year-to-Date December 31, 2010 Regulated Regulated Regulated Supply Other Total Earnings from Ongoing Operations $ 0.06 $ 0.53 $ 0.27 $ 2.27 $ 3.13 Special Items: Adju
Slide 34: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (Per Share) Forecast Actual High Low 2012 2012 2011 2010 2009 Earnings from Ongoing Operations $ 2.45 $ 2.15 $2.73 $3.13 $1.95 Special Items: Adjusted energy-related economic activity, net 0.12 (0.27) (0.59) Sales of asset
Slide 35: Gross Margins Summary
Gross Margins Summary (Millions of Dollars) Twelve Months Ended December 31, Per Share Diluted 2011 2010 Change (after-tax) (a) KY Gross Margins $ 1,548 $ - $ 1,548 $ 2.12 PA Gross Delivery Margins by Component Distribution $ 741 $ 679 $ 62 $ 0.08 Transmission 180 176 4 0.01 Total $ 921 $ 855 $ 66 $
Slide 36: Reconciliation of Year-to-Date Operating Income to Margins
Reconciliation of Year-to-Date Operating Income to Margins Twelve Months Ended December 31, 2011 Twelve Months Ended December 31, 2010 (Millions of Dollars) Unregulated Unregulated Kentucky PA Gross Gross Kentucky PA Gross Gross Gross Delivery Energy Operating Gross Delivery Energy Operating Margins
Slide 37: Margins Footnotes
Margins Footnotes a) Represents amounts that are excluded from Margins. b) As reported on the Statement of Income. c) Kentucky Gross Margins were not used to measure the financial performance of LKE for the two-month period subsequent to the acquisition in 2010. d) Primarily represents WPD's utility
Slide 38: 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 39: 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
Slide 40: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures "Kentucky Gross Margins" is a single financial performance measure of the Kentucky Regulated segment's electricity generation, transmission and distribution operations as well as its distribution and sale of natural gas. In calculating this measure, utility