Slide 1: 2nd Quarter Earnings Call
© PPL Corporation 2013 2 nd Quarter Earnings Call PPL Corporation August 1, 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 Second 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 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. Earnings Results
Slide 5: Increasing 2013 Ongoing Earnings Forecast
© PPL Corporation 2013 5 Segment 2012A 2013E 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 $2.25 $2.25 Note: See Appendix for the reconciliation of earnings from ongoing operations to reported ear
Slide 6: Regulated Operational Overview
© PPL Corporation 2013 6 • RIIO-ED1 Business Plans Filed – Initial assessment and fast-track Draft Determination in November • Pennsylvania DSIC Implemented – Effective July 1, 2013 • PPL Electric Utilities Transmission Updates 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 • Susquehanna Update • Colstrip Unit 4 Generator Outage Supply Operational Overview
Slide 9: Ongoing Earnings Overview
© PPL Corporation 2013 9 Q2 2013 Q2 2012 Change Kentucky Regulated $0.08 $0.07 $0.01 U.K. Regulated 0.35 0.31 0.04 Pennsylvania Regulated 0.07 0.05 0.02 Supply 0.01 0.08 (0.07) Corporate and Other (0.02) (0.02) Total $0.49 $0.51 $(0.02) Ongoing Earnings Overview Note: See Appendix for the reconcilia
Slide 10: Kentucky Regulated Segment Earnings Drivers
© PPL Corporation 2013 10 2 nd Quarter 2012 EPS - Ongoing Earnings $0.07 Gross margins 0.03 Income taxes and other (0.02) Total 0.01 2013 EPS - Ongoing Earnings $0.08 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations to reported
Slide 11: U.K. Regulated Segment Earnings Drivers
© PPL Corporation 2013 11 2 nd Quarter 2012 EPS - Ongoing Earnings $0.31 Utility revenue 0.09 Depreciation (0.01) Income taxes and other (0.01) Dilution (0.03) Total 0.04 2013 EPS - Ongoing Earnings $0.35 U.K. Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings f
Slide 12: Pennsylvania Regulated Segment Earnings Drivers
© PPL Corporation 2013 12 2 nd Quarter 2012 EPS - Ongoing Earnings $0.05 Gross delivery margins 0.02 O&M 0.01 Dilution (0.01) Total 0.02 2013 EPS - Ongoing Earnings $0.07 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations to
Slide 13: Supply Segment Earnings Drivers
© PPL Corporation 2013 13 2 nd Quarter 2012 EPS - Ongoing Earnings $0.08 East energy margins (0.07) West energy margins (0.02) O&M 0.02 Depreciation (0.01) Income taxes and other 0.01 Total (0.07) 2013 EPS - Ongoing Earnings $0.01 Supply Segment Earnings Drivers Note: See Appendix for the reconcilia
Slide 14: Appendix
© PPL Corporation 2013 14 Appendix
Slide 15: Dividend Profile
© PPL Corporation 2013 15 A predominant rate-regulated business mix provides strong support for current dividend and a platform for future growth (1) Based on midpoint of revised forecast. Annualized dividend based on 2 nd quarter declaration. Actual dividends to be determined by Board of Directors.
Slide 16: U.K. Electricity Distribution Price Control Review Schedule
© PPL Corporation 2013 16 RIIO-ED1 Timetable Provisional Timing Milestone September 2012 Publication of Strategy Consultation March 2013 Strategy decision published July 2013 DNOs submit and publish business plans November 2013 Initial assessment and fast-track Draft Determination published March 20
Slide 17: Enhancing Value Through Active Hedging
© PPL Corporation 2013 17 2013 2014 Baseload Expected Generation(1) (Million MWhs)48.550.4 East 40.141.8 West 8.48.6 Current Hedges (%)98-100%76-78% East 99-101%80-82% West95-97%57-59% Average Hedged Price (Energy Only) ($/MWh)(2) East$48-49$40-42West $41-42$43-44Current Coal Hedges (%)100%82% East
Slide 18: Competitive Generation Overview
© PPL Corporation 2013 18 Competitive Generation Overview Note: As of June 30, 2013 (1) Includes owned and contracted generation. (2) Other includes PPAs, renewables and NUGS. 9.8 10.8 Total 2Q generation output (1) improved by more than 10% compared to 2Q 2012 (2)
Slide 19: Market Prices
© PPL Corporation 2013 19 (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. Balance of 2013 2014 ELECTRIC PJM On-Peak $46 $44 Off-Peak $31 $31 ATC(1) $38 $37 Mid-Columbia On-Peak $38 $35 Off-Peak $30
Slide 20: Operating Segment Capital Expenditures
© PPL Corporation 2013 20 ($ 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 Original Forecast (1) Revised Forecast (2) December 31, 2013 615 665 December 31, 2014 670 670 December 31, 2015 680 670 Weighted-Average Shares - Diluted EPS (1) Original Forecast of average common shares outstanding included the issuance of common stock
Slide 23: Debt Maturities
© PPL Corporation 2013 23 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 738 304 304(3) 354 4 WPD 0 0 0 460 100
Slide 24: Credit Facilities
© PPL Corporation 2013 24 Institution Facility Expiration Date Total Facility(Millions) Letters of Credit Outstanding & Commercial Paper Backup (Millions) Drawn (Millions) Availability (Millions) PPL Energy Supply Syndicated Credit Facility Nov-2017 $3,000$637$0$2,363 Letter of Credit Facility Mar-2
Slide 25: Reconciliation of Second Quarter Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2013 25 Reconciliation of Second Quarter Earnings from Ongoing Operations to Reported Earnings $48 $226 $45 $3 $(11) $311 76 76 (5) (5) LKE discontinued operations1 1 Change in tax accounting method related to repairs(3) (3) Counterparty bankruptcy1 1 Windfall tax litigation43 43 C
Slide 26: Reconciliation of Second Quarter Earnings (Per Share - Diluted)
© PPL Corporation 2013 26 Reconciliation of Second Quarter Earnings from Ongoing Operations to Reported Earnings (Per Share - Diluted) $0.08 $0.35 $0.07 $0.01 $(0.02) $0.49 0.11 0.11 Foreign currency-related economic hedges(0.01) (0.01) Other: LKE discontinued operations0.01 0.01 Change in tax accou
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 $132 $464 $109 $74 $(14) $765 (41) (41) 73 73 Acquisition-related adjustments: WPD Midlands Separation benefits(1) (1) Other acquisition-related adjustments(2) (2) LKE discontinued operatio
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) $0.23 $0.72 $0.16 $0.11 $(0.02) $1.20 (0.05) (0.05) Foreign currency-related economic hedges0.11 0.11 Other: Change in tax accounting method related to repairs(0.01) (
Slide 29: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2013 29 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings High Low 20132013201220112.40$ 2.25$ 2.42$ 2.73$ (0.05) (0.05) 0.07 0.12 0.11 0.11 (0.06) 0.01 Renewable energy credits (0.01) Other asset impairments(0.03) WPD Midlands 2011 Bridge Facility costs
Slide 30: Reconciliation of 2012 Earnings from Ongoing Operations (Per Share)
© PPL Corporation 2013 30 (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 date of acquisition was April 1, 2011. (per share - dil
Slide 31: Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings
© PPL Corporation 2013 31 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" se
Slide 32: Gross Margins Summary
© PPL Corporation 2013 32 Gross Margins Summary $404$ 372 $32$0.03 $183 $170 $13$0.01 59 51 8 0.01 $242 $221 $21$0.02 Eastern U.S. $349 $407 $(58)$(0.06) Western U.S. 56 76 (20) (0.02) 10 (10) (0.01) $405 $493 $(88) $(0.09) (Millions of Dollars)Three Months Ended June 30, 2013Per Share Diluted 2013
Slide 33: Reconciliation of Second Quarter Margins to Operating Income
© PPL Corporation 2013 33 Reconciliation of Second Quarter Margins to Operating Income $682 $413 $560 $1,655 $658 $403 $544 $1,605 PLR intersegment utility(12) $12 (17) $17 237 20 257 192 (13) 179 812 (1) 811 1,075 8 1,083 activity590 590 (458) (458) 10 10 137 137 130 130 682 401 1,061 1,306 3,450 6
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