Slide 1: PPL Corporation 2nd Quarter Earnings July 31, 2014
© PPL Corporation 2014 PPL Corporation2nd Quarter Earnings July 31, 2014 PPL Corporation2nd Quarter Earnings July 31, 2014 PPL Corporation 2 nd Quarter Earnings July 31, 2014 Exhibit 99.2
Slide 2: Cautionary Statements and Factors That May Affect Future Results
© PPL Corporation 2014 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 2014 3 Second Quarter Earnings Results, Operational Overview and 2014 Earnings Forecast Segment Results and Financial Overview Talen Update Q&A W. H. Spence V. Sorgi Agenda P. Farr
Slide 4: Earnings Results
© PPL Corporation 2014 4 Earnings Results Second Quarter Second Quarter Reported Earnings Earnings from Ongoing Operations $1.50 $1.50 $0.63 $0.34 2Q 2013 2Q 2014 $0.49 $0.53 2Q 2013 2Q 2014 Per SharePer Share $1.00 $0.50 Per Share Per Share $1.00 $0.50 $0.00 $0.00 Year-to-date Year-to-date Reported
Slide 5: Increasing 2014 Ongoing Earnings Forecast
© PPL Corporation 2014 5 Segment 2013A (Ongoing) Previous 2014E Revised 2014E U.K. Regulated $1.32 $1.34 $1.35 Kentucky Regulated 0.48 0.45 0.45 PA Regulated 0.31 0.39 0.39 Supply 0.39 0.11 0.17 Corporate and Other (0.05) (0.06) (0.06) Total $2.45 $2.23 $2.30 $2.20 $2.15 $0.00 $1.00 $2.00 $3.00Per S
Slide 6: Regulated Operational Overview
© PPL Corporation 2014 6 • Superior customer satisfaction/service • Filed Smart Meter plan in Pennsylvania • Filed Project Compass transmission project with PJM Regulated Operational Overview
Slide 7: Regulated Volume Variances
© PPL Corporation 2014 7 Regulated Volume Variances R esidential C o mm erc ial Industrial Total Residential C o m mercial Industrial Total Weather- No r malized (charted) 2.5% -0.5% 0.6% 0.8% 0.5% 0.2% 1.5% 0.6% Actual 0.8% -0.9% 0.6% 0.0% 3.7% 1.1% 1.5% 2.2% Residential C o mm erc ial Industrial T
Slide 8: Supply Operational Overview
© PPL Corporation 2014 8 • Strong second quarter operational performance from Eastern fleet • Susquehanna turbine update • Montana hydro sale update • Energy Supply Spin/Separation activities underway Supply Operational Overview
Slide 9: Ongoing Earnings Overview
© PPL Corporation 2014 9 Q2 2014 Q2 2013 Change U.K. Regulated $0.33 $0.35 $(0.02) Kentucky Regulated 0.09 0.08 0.01 Pennsylvania Regulated 0.08 0.07 0.01 Supply 0.06 0.01 0.05 Corporate and Other (0.03) (0.02) (0.01) Total $0.53 $0.49 $0.04 Ongoing Earnings Overview Note: See Appendix for the recon
Slide 10: U.K. Regulated Segment Earnings Drivers
© PPL Corporation 2014 10 2 nd Quarter 2013 EPS - Ongoing Earnings $0.35 Utility revenue 0.02 O&M 0.01 Depreciation (0.01) Financing (0.01) Income taxes and other (0.03) Total (0.02) 2014 EPS - Ongoing Earnings $0.33 U.K. Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation o
Slide 11: Kentucky Regulated Segment Earnings Drivers
© PPL Corporation 2014 11 2 nd Quarter 2013 EPS - Ongoing Earnings $0.08 Gross margins 0.02 O&M (0.01) Total 0.01 2014 EPS - Ongoing Earnings $0.09 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.
Slide 12: Pennsylvania Regulated Segment Earnings Drivers
© PPL Corporation 2014 12 2 nd Quarter 2013 EPS - Ongoing Earnings $0.07 Gross delivery margins 0.02 Income taxes and other (0.01) Total 0.01 2014 EPS - Ongoing Earnings $0.08 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operation
Slide 13: Supply Segment Earnings Drivers
© PPL Corporation 2014 13 2 nd Quarter 2013 EPS - Ongoing Earnings $0.01 East energy margins 0.04 Income taxes and other 0.01 Total 0.05 2014 EPS - Ongoing Earnings $0.06 Supply Segment Earnings Drivers Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earning
Slide 14: U.K. Regulated Segment EPS from Ongoing Operations Projection
© PPL Corporation 2014 14 U.K. Regulated Segment EPS from Ongoing Operations Projection ($Per Share) Note: Assumes foreign currency exchange rate of $1.67/£ for any unhedged projection. See Appendix for the reconciliation of earnings from ongoing operations to reported earnings. © PPL Corporation 20
Slide 15: U.K. Regulated Segment Cash Repatriation Projection
© PPL Corporation 2014 15 U.K. Regulated Segment Cash Repatriation Projection ($in millions) Note: Assumes foreign currency exchange rate of $1.67/£ for any unhedged projection. © PPL Corporation 201415 U.K. Regulated Segment Cash Repatriation Projection Note: Assumes foreign currency exchange rate
Slide 16: Talen Transaction: Activities Since June 9th Announcement
© PPL Corporation 2014 16 • Talen credit facility syndication process – $1.85 billion 5-year 1 st lien revolving credit facility – Facility is fully committed and will be available upon transaction close • RJS Power Holdings bond offering – Riverstone formed RJS Power Holdings LLC as a holding compa
Slide 17: Appendix
© PPL Corporation 2014 17 Appendix
Slide 18: Dividend Profile
© PPL Corporation 2014 18 Dividend Profile A predominantly rate-regulated business mix provides strong support for current dividend and a platform for future growth $/ Share Annualized $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 2010 2011 2012 2013 2014(1) Ongoing EPS (2) (3) Dividend (1) (2) (3
Slide 19: Projected Capital Expenditures
© PPL Corporation 2014 19 ($ in billions) (1) Figures based on assumed exchange rate of $1.67 / £. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience and future projections. (1) (2) $4.19 $3.88 $3.91 $3.81 Projected Capital Expenditures Signific
Slide 20: Projected Regulated Rate Base Growth
© PPL Corporation 2014 20 ($ 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 $1.67 / £ and the RIIO-ED1 business plan as filed on July 1, 201
Slide 21: Energy Supply Hedge Update
© PPL Corporation 2014 21 Energy Supply Hedge Update 2014 2015 Baseload Expected Generation(1) (Million MWhs) 49.4 47.8 East 42.3 43.5 West 7.1 4.3 Current Hedges (%) 97- 99% 69- 71% East 97-99% 69-71% West 95-97% 73-75% Average Hedged Price (Energy Only) ($/MWh) (2) East $39- 41 $39- 40 West $38- 4
Slide 22: Competitive Generation Overview
© PPL Corporation 2014 22 Competitive Generation Overview Note: Includes owned and contracted generation. As of June 30, 2014 (1) Other includes PPAs, renewables and NUGS.
Slide 23: Market Prices
© PPL Corporation 2014 23 (1) 24-hour average. (2) NYMEX and TETCO M3 forward gas prices on 6/30/2014. (3) Market Heat Rate = PJM on-peak power price divided by TETCO M3 gas price. Market Prices On-Peak Off-Peak (Per M W D) EQA HEAT RATE(3) TETCO M3 PJM MARKET CAPACITY PRICES ELECTRIC AT C(1) NYMEX
Slide 24: Free Cash Flow before Dividends
© PPL Corporation 2014 24 Free Cash Flow before Dividends $2,000 Free Cash Flow before Dividends (Millions of Dollars) Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions of dollars) ($1,000) ($500) $0 $500 $1,000 $1,500 ($412) $144 Cash from Operations Increase (Decr
Slide 25: Debt Maturities
© PPL Corporation 2014 25 Debt Maturities 2014 2015 2016 2017 2018 PPL Capital Funding $0 $0 $0 $0 $250 LG& E and KU Energy (Holding Co LKE) 0 400 0 0 0 Louisville Gas & Electric 0 250 0 0 0 Kentucky Utilities 0 250 0 0 0 PPL Electric Utilities 0 100 0 0 0 PPL Energy Supply 302 534 (1) 354 4 403 WPD
Slide 26: Liquidity Profile
© PPL Corporation 2014 26 Liquidity Profile Institution Facility Expiration Date Total Capacity (Millions) Letters of Credit & Commercial Paper Issued (Millions) Drawn (Millions) Unused Capacity (Millions) PPL Capital Funding (1) Syndicated Credit Facility Bilateral Credit Facility Nov- 2018 Mar- 20
Slide 27: Reconciliation of Second Quarter 2014 Ongoing to Reported Earnings
© PPL Corporation 2014 27 Reconciliation of Second Quarter Earnings from Ongoing Operations to Reported Earnings Reconciliation of Second Quarter Earnings from Ongoing Operations to Reported Earnings (After Tax) (Unaudited) 2nd Quarter 2014 (millions of dollars) U.K. Kentucky Pennsylvania Corporate
Slide 28: Reconciliation of Second Quarter 2013 Ongoing to Reported Earnings
© PPL Corporation 2014 28 Reconciliation of Second Quarter Earnings from Ongoing Operations to Reported Earnings (After Tax) (Unaudited) 2nd Quarter 2013 (millions of dollars) U.K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Earnings from Ongoing Operations $
Slide 29: Reconciliation of Year-to-date June 30, 2014 Earnings
© PPL Corporation 2014 29 Reconciliation of Year- to- date Earnings from Ongoing Operations to Reported Earnings (After Tax) (Unaudited) Y ear- to- Date June 30, 2014 (millions of dollars) U.K. Kentucky Pennsylvania Corporate Regulated Regulated Regulated Supply and Other Total Earnings from Ongoing
Slide 30: Reconciliation of Year-to-date June 30, 2013 Earnings
© PPL Corporation 2014 30 Reconciliation of Year- to- date Earnings from Ongoing Operations to Reported Earnings (After Tax) (Unaudited) Year-to-Date June 30, 2013 U.K. Regulated Kentucky Regulated (millions of dollars) Pennsylvania Regulated Supply Corporate and Other Total Earnings from Ongoing Op
Slide 31: Reconciliation of PPL's Forecast of Ongoing to Reported Earnings
© PPL Corporation 2014 31 Reconciliation of PPL’s Forecast of Earnings from Ongoing Operations to Reported Earnings (After-Tax) (Unaudited) Forecast (per share - diluted) Midpoint High U.K. Kentucky Pennsylvania Corporate Low Regulated Regulated Regulated Supply and Other Total 2014 2014 Earnings fr
Slide 32: Reconciliation of U.K. Regulated Segment Earnings
© PPL Corporation 2014 32 Reconciliation of U.K. Regulated Segment Earnings from Ongoing Operations to Reported Earnings (After- tax) (Unaudited) High Low High Projections (per share - diluted) Low 2014 2015 2015 2016 2016 Earnings from Ongoing Operations Special Items: (1) 1.35 $1.40 $1.32 $1.42 $1
Slide 33: Reconciliation of Earnings, Year-to-date December 31, 2013
© PPL Corporation 2014 33 Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings Reconciliation of PPL's Earnings from Ongoing Operations to Reported Earnings (After- Tax) (Unaudited) Year-to-Date December 31, 2013 (per share - diluted) (a) U.K. Kentucky Pennsylvania Corporate
Slide 34: Reconciliation of Earnings, Year-to-date December 31, 2011
© PPL Corporation 2014 34 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (After-Tax) (Unaudited) Year-to-date December 31, 2011 Earnings from Ongoing Operations Special Items: Adjusted energy-related economic activity, net Foreign currency-related economic hedges Impai
Slide 35: Reconciliation of Earnings, Year-to-date December 31, 2010
© PPL Corporation 2014 35 Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings (After- Tax) (Unaudited) Year-to-date December 31, 2010 (per share - diluted) U.K. Kentucky Pennsylvania Regulated Regulated (a) Regulated Supply Other (b) Total Earnings from Ongoing Operations S
Slide 36: Gross Margins Summary
© PPL Corporation 2014 36 GrossMarginsSummaryGrossMarginsSummary (Millions of Dollar s) 2014 Thr e e M onths Ended June 30, 2013 Change Per share diluted (after - tax) KY Gross Margins $428 $404 $24 $0.02 Distribution TransmissionPA Gross delivery margins Total $189 81 270 $18359 $242 $6 22 $28 $-0
Slide 37: Reconciliation of Second Quarter Margins to Operating Income
© PPL Corporation 2014 37 Reconciliation of Second Quarter Margins to Operating Income Thre e M onths Ended June 30, 2014 Thre e Months Ended June 30, 2013 (Millions of Dollars) Unregulated Unregulated Kentucky PA Gross Gross Kentucky PA Gross Gross Gross Delivery Energy Operating Gross Delivery Ene
Slide 38: Forward-looking statements and risk factors
© PPL Corporation 2014 38 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 39: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2014 39 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 40: Definitions of Non-GAAP Financial Measures
© PPL Corporation 2014 40 Definitions of Non-GAAP Financial Measures PPL utilizes the following non-GAAP financial measures as indicators of performance for its businesses. These measures are not intended to replace "Operating Income," which is determined in accordance with GAAP, as an indicator of