Ppl Corporation · NYSE:PPL
Ppl — Deutsche Bank Energy Utilities and Power Conference 2009
37 slides from Ppl's conference presentation, May 27, 2009
Slide 1: Deutsche Bank Energy Utilities and Power Conference
Deutsche Bank Energy Utilities and Power Conference May 28, 2009 Exhibit 99.2
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 presentationabout future operating results or other futureevents are forward-looking statements underthe Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Actual results may dif
Slide 3: PJM RPM Update
PJM RPM Update • PJM Planning Year 2012/2013 Base Residual Auction – RTO cleared at $16.46/MW-Day – 4 LDAs had binding constraints the resulted in locational price adders • MAAC $133.37/MW-Day • EMAAC $139.73/MW-Day • PSEG-North $185.00/MW-Day • DPL-South $222.30/MW-Day 95% of PPL’s PJM generation t
Slide 4: PJM RPM Auction Clearing Price
PJM RPM Auction Clearing Price 40.8 111.92 102.04 174.29 110 16.46 40.8111.92191.32 174.29110133.37 $0 $50 $100 $150 $200 $250 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 Delivery Year $/MWD Rest of Pool MAAC 3 95% of PPL’s PJM generation receives MAAC pricing
Slide 5: Strong Expected Earnings Growth Forecast
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 2008A* 2009* 2010 Strong Expected Earnings Growth Forecast 4 * Earnings from ongoing operations – See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. $2.02 $4.20 Per Share $1.90 $1.60 $3.60
Slide 6: Supply Segment Open EBITDA
Supply Segment Open EBITDA *Based on forward market prices as of 3/31/09 2010E (Millions) Generation Output - MWh 55.5 Unhedged Gross Margin* 2,310 O&M (859) Open EBITDA 1,451 Fuel 176 Power 617 Above/(Below) Market Value of Hedges* 793 Expected Margin 3,103 5
Slide 7: Free Cash Flow before Dividends Forecast
($605) ($38) ($315) $685 $367 $280 ($30) ($134) $1 ($700) ($400) ($100) $200 $500 $800 2008A 2009E 2010E Supply Segment PA Delivery Segment International Delivery Segment Free Cash Flow before Dividends Forecast Millions 6
Slide 8: Continued Dividend Growth
$1.00 $1.10 $1.22 $1.34 $1.38 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 2005 2006 2007 2008 2009 $/Share Annualized Continued Dividend Growth 7
Slide 9: Liquidity Profile
Liquidity Profile (1) Reported as of 3/31/2009 Diverse bank group consisting of 23 banks committed under domestic facilities, with no bank having more than 14% of commitments. 8 Institution Facility Expiration Date Total Facility (Millions) Letters of Credit Outstanding (1) (Millions) Drawn (1) (Mil
Slide 10: Debt Maturities
Debt Maturities (1) PPL Capital Funding $201 million maturity paid off in March 2009 (2) PPL Electric Utilities prefunding done in 10/2008 and 5/2009 for 2009 maturity Note: As of 5/22/2009 9 2009 2010 2011 2012 2013 PPL Energy Supply $0 $0 $500 $0 $737 PPL Capital Funding 0 (1) 0 0 0 0 PPL Electric
Slide 11: PA and International Delivery Operational Update
PA and International Delivery Operational Update PA Delivery • PPL EU completed 5 of 6 RFPs • Bids due for final RFP October 5, 2009 with PUC approval expected October 8 • Filed rate deferral plan with the PUC • Act 129 compliance plan filing on target for July 1requirement International Delivery •
Slide 12: Supply Segment Operational Update
Supply Segment Operational Update • Strong plant performance in Q109 • Susquehanna Unit 2 set generation record with 723 consecutive days generating electricity • Unit 2 up-rate of 45 MW completed in May 2009 • Reapplied for Holtwood hydroelectric plant expansion project • Scrubbers on schedule for
Slide 13: Current Hedge Positions - Electricity and Fuel
Current Hedge Positions -Electricity and Fuel Note: As of 3/31/2009 12 2009 2010 2011 2012 Electricity Sales East 98% 88% 51% 28% West 95% 78% 78% 65% Total 97% 86% 55% 34% Uranium 100% 100% 100% 100% Coal East 100% 98% 73% 52% West 100% 100% 86% 77% Total 100% 98% 77% 59% Unhedged Coal – million to
Slide 14: Capital Expenditures by Segment
Millions $939 $691 $869 $938 $798 $648 $286 $295 $576 $649 $504 $535 $278 $251 $428 $448 $460 $477 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 2008A 2009E 2010E 2011E 2012E 2013E Supply PA Delivery International Delivery $1,503 $2,035 $1,873 $1,237 Capital Expenditures by Segment 13 $1,762 $1,660
Slide 15: Pennsylvania Delivery Rate Base
Millions $693 $811 $952 $1,221 $1,469 $1,528 $2,081 $2,207 $2,353 $2,513 $2,664 $2,803 $0 $1,000 $2,000 $3,000 $4,000 $5,000 2008A 2009E 2010E 2011E 2012E 2013E Transmission Distribution & Other Pennsylvania Delivery Rate Base $3,018 $3,305 $3,734 $4,133 $4,331 $2,774 14
Slide 16: PPL
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Slide 17: Market Prices
Market Prices ELECTRIC PJM On-Peak Off-Peak ATC(2) Mid-Columbia On-Peak Off-Peak ATC(2) GAS(3) NYMEX TZ6NNY PJM MARKET HEAT RATE(4) CAPACITY PRICES (Per MWD) EQA Actual 2008 2009 2010 2011 2012 $81 $51 $58 $63 $66 $49 $39 $43 $46 $50 $69 $45 $50 $54 $58 $65 $35 $46 $52 $56 $51 $28 $37 $41 $44 $59 $3
Slide 18: PPL Supply Business Overview
PPL Supply Business Overview 2009E Production GWh A-2 Gas/Oil 38% Coal 34% Nuclear 18% Hydro8% QFs 2% 2009E Installed Capacity MW Gas/Oil 9% Coal 52% Nuclear 31% Hydro 8% Note: Graphs include tolling agreements
Slide 19: PPL's Generation Portfolio
PPL’s Generation Portfolio Total Domestic Generation: 12,104 MW Planned Uprate Projects or Additions: 270 MW (1) Reflects reduction of 60 MW expected loss due to increased plant usage during scrubber operation. (2) Includes tolling agreements A-3 Coal 3,500 Nuclear 2,165 Oil 1,817 Gas 2,282 Hydro 36
Slide 20: Hedged Baseload Electricity 2009-2012
Hedged Baseload Electricity 2009-2012 Hedged Baseload Electricity Sales 0% 20% 40% 60% 80% 100% 2009 2010 2011 2012 % of Coal, Hydro & Nuclear O utput$20 $30 $40 $50 $60 $70 $80 $/M W h Average Sale Price A-4
Slide 21: Current East Coal Contracts - Base Prices
Current East Coal Contracts -Base Prices A-5 Base Prices for Wholly Owned Plants* *East wholly owned plants include Montour & Brunner Island but not Keystone & Conemaugh. **Excludes contracts subject to mining-related oil surcharges and/or price collars. Note: As of 3/31/2009 $35 $40 $45 $50 $55 max
Slide 22: PPL Energy Supply Collateral Profile
PPL Energy Supply Collateral Profile Millions A-6 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Available Credit Capacity Cash Posted Borrowings/CP Outstanding Let
Slide 23: Supply Segment Reconciliation of Cash from Operations to Free Cash Flow
Supply Segment Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions) A-7 (203)Investment in Energy Project $685($38)($605)Free Cash Flow before Dividends (61)10(58)Other Investing Activities-net (869)(691)(939)Capital Expenditures Increase/(Decrease) in cash due to: $1
Slide 24: PA Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow
PA Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions) A-8 8303Asset Sales & Other ($315)$280$367Free Cash Flow before Dividends (576)(295)(286)Capital Expenditures (293)Less Transition Bond Repayment Increase/(Decrease) in cash due to: $261$567$ 643
Slide 25: International Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow
International Delivery Segment Reconciliation of Cash from Operations to Free Cash Flow before Dividends (Millions) A-9 ($134)($ 30)$ 1 Free Cash Flow before Dividends (428)(251)(278)Capital Expenditures Increase/(Decrease) in cash due to: $294 $221 $279 Cash from Operations 2010 2009 2008 Actual Pr
Slide 26: 2009-2010 Sensitivities
2009 - -2010 Sensitivities EPS Impact See Appendix A-1 for market price assumptions A-10 Note: Discrete sensitivities based on changes to individual item, which ultimately may be interrelated. 2009 2010 $10/MW-Day Capacity Price Change >$0.00 >$0.00 $1/MWh of Unhedged Baseload Sales ±<$0.01 ±$0.01 $
Slide 27: Reconciliation of First Quarter Reported Earnings and Ongoing Earnings
Reconciliation of First Quarter Reported Earnings and Earnings from Ongoing Operations A-11 (Millions) Pennsylvania International Supply Delivery Delivery Total Qtr. Ending March 31, 2009 Reported earnings* $105 $49 $87 $241 Special Items: MTM adj's from energy-related, non- trading economic hedges
Slide 28: Reconciliation of First Quarter Earnings Per Share
Reconciliation of First Quarter Reported Earnings and Earnings from Ongoing Operations A-12 Pennsylvania International Supply Delivery Delivery Total Qtr. Ending March 31, 2009 Reported earnings* $0.28 $0.13 $0.23 $0.64 Special Items: MTM adj's from energy-related, non- trading economic hedges 0.13
Slide 29: Reconciliation of Year-to-Date Operating Income and Energy Margins
Reconciliation of Year-to-Date Operating Income and Energy Margins A-13 2009 2008 Change Per Share (after-tax) Eastern U.S., pre-tax $312 $340 ($28) ($0.04) Western U.S., pre-tax 83 61 22 0.03 Domestic gross energy margins, pre-tax $395 $401 ($6) ($0.01) 2009 2008 Operating Income $417 $480 Adjustme
Slide 30: Reconciliation of Year-to-Date Operating Income and Energy Margins
Reconciliation of Year-to-Date Operating Income and Energy Margins A-14 2009 2008 Revenue adjustments WPD utility revenue $(176) $(241) Domestic delivery component of utility revenue (354) (354) Other utility revenue (14) (12) Mark-to-market adjustments from economic activity (353) 180 Gains from sa
Slide 31: Reconciliation of Reported Earnings and Earnings from Ongoing Operations
Reconciliation of PPL’s Reported Earnings and Earnings from Ongoing Operations High Low 2009 2009 2008 2007 Earnings from Ongoing Operations per share of common stock $1.90 $1.60 $2.02 $2.60 Special items (net of taxes): economic hedges 0.13 0.13 0.67 0.08 Impairment of nuclear decom. trust investme
Slide 32: Credit Ratings
Credit Ratings A-16 BBB Issuer Rating AAAAaa Tax-Exempt Bonds* STABLE NEGATIVE STABLE Outlook A-A-A3Senior Secured Debt F-2A-2P-2Commercial Paper BBBBBBBaa3Preferred Stock BBBA-Baa1Issuer Rating A-A-A3First Mortgage Bonds AA-/A-A3/Baa1Tax-Exempt Bonds** BBBBBBBaa3Preference Stock PPL Electric Utilit
Slide 33: Credit Ratings
Credit Ratings A-17 BBB Issuer Rating AAAAaa Tax-Exempt Bonds* STABLE NEGATIVE NEGATIVE Outlook A-A-A3Senior Secured Debt F-2A-2P-2Commercial Paper BBBBBBBaa3Preferred Stock BBBA-Baa1Issuer Rating A-A-A3First Mortgage Bonds AA-/A-A3/Baa1Tax-Exempt Bonds** BBBBBBBaa3Preference Stock PPL Electric Util
Slide 34: PPL Corporation company description
PPL Corporation (NYSE: PPL) is a Fortune 500 company with headquarters in Allentown, Pa. The Company’s diversified corporate strategy is to achieve growth in energy supply margins while limiting volatility in both cash flows and earnings and to achieve stable, long-term growth in regulated delivery
Slide 35: PPL Facts (cont.) Financial and Operating Information
PPL Facts (cont.) Financial and Operating Information Note: See Appendix for the reconciliation of reported earnings per share and earnings from ongoing operations. ii(Unaudited) ($ in millions, except per share amounts) 12 Months Ended March 2009 March 2008 Common Equity $5,237 $5,584 Noncontrollin
Slide 36: Forward-Looking Information Statement
Forward-Looking Information Statement A-20 Statements contained in this presentation, including statements with respect to future earnings, energy prices, margins, sales and supply, marketing performance, hedging, growth, revenues, expenses, rates, regulation, cash flows, credit profile, financing,
Slide 37: Earnings from ongoing operations definition
“Earnings from ongoing operations” excludes the impact of special items. Special items include charges, credits or gains that are unusual or nonrecurring. Special items also include the mark-to-market impact of energy-related, non-trading economic hedges and impairments of securities in PPL’s nuclea
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