EX-99.2 3 exhibit99_2.htm EXHIBIT 99.2

© PPL Corporation 2016 Cautionary Statements and Factors That May Affect Future Results Anystatementsmadeinthispresentationaboutfutureoperating resultsorotherfutureeventsareforward-lookingstatements under the Safe Harbor Provisions of the Private Securities LitigationReformActof1995.Actualresultsmaydiffermaterially fromsuchforward-lookingstatements.Adiscussionoffactors thatcouldcauseactualresultsoreventstovaryiscontainedin theAppendixtothispresentationandintheCompany’sSEC filings. 2

© PPL Corporation 2016 P e r S h a r e Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. (1) Year-to-date reported earnings includes a $921 million loss from discontinued operations, or $1.36 per share. (2) 2014 was adjusted for Supply segment earnings and dissynergies related to the spinoff of the Supply segment. 2015 excludes earnings from the Supply segment. Earnings Results $1.04 $0.59 ($0.75) ($0.25) $0.25 $0.75 $1.25 $1.75 $2.25 $2.75 4Q 2014 4Q 2015 Fourth Quarter Reported Earnings $0.49 $0.43 ($0.75) ($0.25) $0.25 $0.75 $1.25 $1.75 $2.25 $2.75 4Q 2014 (adj) 4Q 2015 Fourth Quarter Earnings from Ongoing Operations (2 ) P e r S h a r e $2.61 $1.01 ($0.75) ($0.25) $0.25 $0.75 $1.25 $1.75 $2.25 $2.75 YTD 2014 YTD 2015 Year-to-Date Reported Earnings (1) P e r S h a r e $2.03 $2.21 ($0.75) ($0.25) $0.25 $0.75 $1.25 $1.75 $2.25 $2.75 YTD 2014 (adj) YTD 2015 Year-to-Date Earnings from Ongoing Operations (2) P e r S h a r e 4

© PPL Corporation 2016 Pennsylvania • Rate Case Update —PUC Approval in November —Includes an annual revenue increase of $124 million —Rate increase effective January 1, 2016 Kentucky • Filed the $1 billion ECR Plan for Approval U.K. • Final DPCR5Performance • Strong performance against RIIO-ED1 incentive targets Operational Update 5

© PPL Corporation 2016 $0.00 $1.00 $2.00 $3.00 2014 Adj 2015A 2016E $2.25 $2.21 P e r S h a r e 2016 Earnings Forecast $2.03 Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. (1) Earnings presented here exclude any earnings from the Supply segment. However, the Supply segment is part of PPL Corporation’s consolidated reported earnings for the first five months of 2015. (2) For 2014, earnings from ongoing operations reflects the full impact of dissynergies related to the spinoff of the Supply segment: Indirect O&M ($0.07), Interest ($0.05) and Depreciation ($0.01). Segment 2014 Adjusted Ongoing 2015A Ongoing 2016E Midpoint U.K. Regulated $1.37 $1.44 $1.43 Kentucky Regulated 0.47 0.51 0.57 PA Regulated 0.40 0.37 0.47 Corporate and Other (0.21) (0.11) (0.12) Total (1) $2.03 $2.21 $2.35 $2.45 (2) 6

© PPL Corporation 2016 $/Share Annualized Continued Dividend Growth (1) Annualized dividend based on 2/4/2016 announced increase. $1.44 $1.47 $1.49 $1.51 $1.52 2012 2013 2014 2015 2016 (1) 14 th dividend increase in 15 years. 7

© PPL Corporation 2016 2016 Objectives/Highlights Pennsylvania • Executing on capital investment of $1.2 billion • Advance Project Compass • Completion of ~$350 million Northeast Pocono Transmission Line Kentucky • Executing on capital investment of $1.0 billion • Develop Clean Power Plan strategy • Environmental Cost Recovery (ECR) approval U.K. • Executing on capital investment of $1.3 billion • Continued focus on regulatory performance • Continue to hedge 2018 GBP exposure 8

© PPL Corporation 2016 Significant Investment Opportunity with Constructive Rate Mechanisms Drives Projected Earnings Growth (2) Projection based on midpoint of 5-6% CAGR off 2014 adjusted earnings. Does not represent earnings forecast or guidance for 2018. S t r o n g R e g u l a t e d R a t e B a s e G r o w t h R e a l - t i m e R e c o v e r y o f C a p E x 5-6% Compound Annual EPS Growth 9 0-6 months 76% (1) “0-6 months” primarily consists of 100% of WPD capital expenditures and domestic capital expenditures where the investment occurs within six months of that spend being included in rates, and CWIP Incentive on the Northeast Pocono project. “7-12 months” and “Greater than 12 months” primarily consist of domestic capital expenditureswhere the investment occurs within 7 to 12 months or greater than 12 months of that spend being included in rates. 2016E –2018E Capital Recovery, Earning on Investment (1) ($bn) (2) 0-6 months 74% Greater than 12 months 19% 7-12 months 7% $22.9 $28.6

© PPL Corporation 2016 Q4 2015 Q4 2014 (adj) Change Pennsylvania Regulated $0.09 $0.10 $(0.01) Kentucky Regulated 0.09 0.10 (0.01) U.K. Regulated 0.29 0.36 (0.07) Corporate and Other (0.04) (0.07) 0.03 Total $0.43 $0.49 $(0.06) Ongoing Earnings Overview Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. 11 2015 2014 (adj) Change Pennsylvania Regulated $0.37 $0.40 $(0.03) Kentucky Regulated 0.51 0.47 0.04 U.K. Regulated 1.44 1.37 0.07 Corporate and Other (0.11) (0.21) 0.10 Total $2.21 $2.03 $0.18

© PPL Corporation 2016 Year-to-date 2014 EPS –Ongoing Earnings $0.40 Gross margins 0.06 Operation and maintenance (0.05) Depreciation (0.03) Taxes, other than income 0.02 Financing costs (0.01) Taxes and other (0.02) Total (0.03) 2015 EPS –Ongoing Earnings $0.37 Pennsylvania Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. 12

© PPL Corporation 2016 Year-to-date 2014 EPS –Ongoing Earnings $0.47 Gross margins 0.08 Operation and maintenance (0.02) Financing costs (0.01) Other (0.01) Total 0.04 2015 EPS –Ongoing Earnings $0.51 Kentucky Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. 13

© PPL Corporation 2016 Year-to-date 2014 EPS –Ongoing Earnings $1.37 Gross margins (0.13) Operation and maintenance (0.02) Depreciation 0.09 Income taxes 0.14 Other (0.01) Total 0.07 2015 EPS –Ongoing Earnings $1.44 U.K. Regulated Segment Earnings Drivers Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. 14

© PPL Corporation 2016 2015 Ongoing Earnings to 2016E Earnings Walk Note: See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. 15 Margins: $.11 Depreciation: ($.01) Interest: ($.03) Other: ($.01) Margins: $.03 O&M: $.07 Depreciation: ($.03) Interest: ($.04) Taxes/Other: ($.03) Currency: ($.01) Margins: $.15 O&M: $.01 Depreciation: ($.03) Interest: ($.01) Other Taxes: ($.02) $2.35

© PPL Corporation 2016 Summary of Drivers to Achieve 5-6% EPS Growth Through 2018 11% -13% Domestic Operations Earnings Growth: PA Regulated • Transmission Cap Ex of $2.7 billion at 11.68% base ROE, 12.93% for approximately $650 million Susquehanna Roseland project drives transmission rate base growth of 14% through 2018 • $124 million Distribution Rate Case effective January 2016 • 2016 DSIC Capital in Base Rates • ~ 70% of gross margin subject to minimal or no volumetric risk • Assumed load growth CAGR of 0.1% • Includes extension of bonus depreciation KY Regulated • Environmental investment of $1.7 billion at 10% ROE • Gas Line Tracker investment of ~ $150 million at 10% ROE through 2017 • $132 million 2014 Rate Case with full year of rates in 2016 • Assumed load growth CAGR of 0.5% • Includes extension of bonus depreciation Corporate and Other • Corporate restructuring to achieve $75 million in cost reductions essentially complete • Additional ~ 2 cent per share improvement by 2017 • Equity issuances of ~$100 million per year (1) Includes known adjustments to base revenues for RPI (TRU), and other financial true-ups (MOD). (2) Based on 2016-2018 Segment on-going earnings projections. Capital structure is adjusted to include the debt of $750 million that is allocated for Segment reporting. (3) Projection based on 5-6% CAGR off 2014 adjusted earnings. Does not represent earnings forecast or guidance for 2018. 16 1% -3% U.K. Regulated Earnings Growth • No volumetric risk • 1% -3% earnings growth from 2014 –2018 during transition to RIIO-ED1 (1) • Average expected ROEs of 14% to 17% (2) • Expected RAV growth of 5.7% through 2018 • Incentive revenue assumptions: 2016 ~ $130M; 2017 -$90- $110M; 2018 -$75-$105M • Assumed exchange rate of ~$1.56/£ for 2016; $1.58/£ for 2017; and $1.60/£ for 2018 • Assumed RPI (inflation rate) –1.3% for 2015/16; 2.3% for 2016/17; and 3.1% for 2017/18 • Effective tax rate of ~ 17% • Change in pension discount rate methodology 5-6% Compound Annual EPS Growth (3)

© PPL Corporation 2016 Funding the Growth Strong domestic operating cash flows plus the U.K. dividend sufficient to fund the PPL dividend. Domestic debt and equity issuances fund domestic utility growth. 17 Note: Information provided on this slide to be updated on an annual basis. See appendix for the Reconciliation of Domestic Cash Flows. (1) Represents book depreciation. (2) Includes domestic issuances (short and long term), net of issue costs. (3) Includes approximately $900 million of proceeds from sale of the Montana hydros. (4) Includes results of PPL Energy Supply, LLC. (5) Actuals for 2015 do not include activity related to PPL Energy Supply, LLC for any portion of the year,except a planned $191 million dividend. 2014A (4) 2015A (5) 2016E Domestic Cash from Operations $2,145 $1,546 $1,615 Domestic Maintenance Capex (1) (900) (640) (707) Dividend From UK Regulated 263 319 400 Cash Available for Distribution $1,508 $1,225 $1,308 Common Dividend (967) (1,004) (1,024) Cash Available for Reinvestment $541 $221 $283 Domestic Growth Capex ($1,816) ($1,650) ($1,407) Debt Maturities ($546) ($1,000) $0 Debt Issuances and Change in Cash (2) (71) 2,139 1,076 Equity Issuances 1,063 175 80 Other Investing & Financing Activities 829 115 (32) Additional Funding Sources for Domestic Growth Capex $1,275 $1,429 $1,124 (3)

© PPL Corporation 2016 Note: Corporate and Other capital expenditures average approximately $10 million per year. (1) Based on assumed exchange rate of $1.60/£. (2) Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience and future projections. Significant Ongoing Capital Expenditure Program ($ in billions) ~$16 billion of Capital Expenditures from 2016 –2020 to strengthen safety and reliability of T&D systems and address environmental regulations in Kentucky. • Over 80% of Regulated capital expenditures earn returns subject to minimal or no lag • PA –Implementation of $471 million Smart Meter Program to be recovered through a rider mechanism (~$406 million of Capital; ~$65 million O&M) • PA and KY –Continued focus on improving reliability in both Transmission and Distribution systems • KY –Environmental spending in response to regulations for Mercury, SO2, NOX, Ozone, Particulates, Water Intake and Discharge and CCRs (does not include Clean Power Plan) • U.K. –Continued focus on asset replacement, faults and overheads and general system reinforcement 18 (1) (2) $3.39 $3.25 $3.23 $3.19 $3.32

© PPL Corporation 2016 2016 –2020 Capital Plan Comparison to Prior Year Capital Plan 19 (1) Based on assumed foreign exchange rate of $1.60/£. WPD • Spending generally consistent with prior plan with slight increase in 2016 faults overhead repairs Kentucky • Environmental spending generally consistent with prior plan • Deferral of second Natural Gas Combined Cycle Plant Pennsylvania • Transmission consistent with prior plan • Distribution decrease driven by expected ability to maintain reliability standards with lower capital ($ in billions) (1)

© PPL Corporation 2016 ( $ i n b i l l i o n s ) (1) Based on assumed exchange rate of $1.60/£ for 2016 -2020. (2) Represents utility capitalization for LKE. Represents Regulatory Asset Value (RAV) for WPD. Strong regulated rate base growth will drive EPS growth. Capital Plan is Driving Rate Base Growth 20 (2) $24.3 $26.0 $27.2 $28.6 $30.0 $31.5 (1)

© PPL Corporation 2016 Foreign Currency Hedging Status and RPI Sensitivity 21 GBP Foreign Currency 2016 2017 2018 Percentage Hedged 95% 89% 20% Hedged Rate (GBP/USD) $1.56 $1.58 $1.60 Budgeted Rate on Open Position (GBP/USD) $1.60 $1.60 $1.60 EPS Sensitivities: Decrease in Rate (USD/GBP) (1) 0.05 $0.00 ($0.01) ($0.04) 0.10 ($0.01) ($0.01) ($0.08) 0.15 ($0.02) ($0.02) ($0.12) RPI (Calendar Year) 2015 2016 2017 2018 Budget RPI assumption 1.5% 2.0% 2.8% 3.1% Current U.K. HM Treasury RPI forecast (2) 1.0% 2.4% 3.0% 3.3% RPI (Regulatory Year) 2015/16 2016/17 2017/18 2018/19 Budget RPI assumption 1.3% 2.3% 3.1% 3.1% Current U.K. HM Treasury RPI forecast (2) 1.4% 2.6% 3.1% 3.3% EPS Sensitivities: Decrease in 2015/2016 RPI (budget assumption 1.3%) (3,4) 0.5% $0.00 $0.00 ($0.02) ($0.01) Change in EPS Change in EPS Note: FX hedging status as of 1/15/2016. (1) FX sensitivities do not factor in the potential risk mitigation from re-striking existing hedges. (2) Source: U.K. HM Treasury RPI forecast: https://www.gov.uk/government/collections/data-forecasts (3) Sensitivities includes the net effect on revenue, O&M and interest expense on index-linked debt. (4) 2015/2016 tariff was set using 2.6% RPI, subject to true-up in 2017/18 regulatory year. Amounts are reflected in the earnings forecast for the period.

© PPL Corporation 2016 Note: Total includes Residential, Commercial and Industrial customer classes as well as “Other”, which is not depicted on the charts above. U.S. Regulated Volume Variances 23 Residential Commercial Industrial Total Residential Commercial Industrial Total Weather-Normalized (charted) -7.7% -0.1% -6.2% -4.7% -1.8% -0.2% -2.2% -1.4% Actual -17.6% -1.7% -7.5% -9.1% -4.1% -0.6% -2.2% -2.3% Residential Commercial Industrial Total Residential Commercial Industrial Total Weather-Normalized (charted) -2.6% 1.4% -5.6% -1.8% -1.1% 1.0% -1.0% -0.3% Actual -13.2% -1.4% -5.6% -7.1% -1.2% 1.5% -1.0% -0.1%

© PPL Corporation 2016 24 Proposed First Segment: • 95-mile initial segment from Blakely, PA to Ramapo, NY —PPL Electric filed interconnection request with NYISO on October 27th —Estimated cost of $500 -$600 million —Estimated in-service date in 2023 • Benefits as proposed include: —Substantial annual savings for NY customers —Economic development benefits —Grid reliability Full Project Current Plan: 475-mile transmission line from Western PA to Southeastern NY at an estimated cost of $3 –$4 billion. Project Compass Summary

© PPL Corporation 2016 Low Nox Burners SCR/SNCR Scrubbers Closed Cycle Cooling Tower Dry Handling/ Disposal/ Beneficial Use Baghouses Mw of Capacity NO x NO x SO 2 Water Intake Coal Combustion Residuals (CCRs) Particulates and Hg (with PAC injection) Unit 1 383 (2) x x x x (1) x Unit 2 549 (2) x x x x (1) x Unit 1 474 x x x x x x Unit 2 495 x x x x x x Unit 3 485 x x x x x x Unit 4 465 x x x x x x Unit 1 106 x (4) x x (1) (4) Unit 2 166 x (4) x x (1) (4) Unit 3 410 x x x x (1) x Unit 1 300 x (4) x (4) x x Unit 2 297 x (4) x x x x Unit 3 391 x x x x x (3) Unit 4 477 x x x x x x Control Device Addresses Trimble County Ghent Brown Mill Creek Kentucky Environmental Controls 26 x = Installed (1)Dry handling disposal construction approved by KPSC and permitting or construction underway at Trimble and Brown. Portions of Ghent systems are operational at this time as other construction activity continues. (2)Ratings represent LKE's 75% ownership of Trimble Units 1 & 2. (3)Mill Creek 3's baghouses to be in servcie in June 2016. (4)Standards are station and company based. KU and LG&E Systems are already in compliance.

© PPL Corporation 2016 U.K. Regulated Segment EPS Projection ($ Per Share) Note: Assumes foreign currency exchange rate of $1.60/£ for 2016E and 2017E on open positions. (1) 2015 represents earnings from ongoing operations. See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations. 27 (1)

© PPL Corporation 2016 U.K. Regulated Segment Cash Repatriation Note: Assumes foreign currency exchange rate of $1.60/£ for 2016E and 2017E. ($ in millions) Flexible strategy for meaningful U.K. cash repatriation. 28

© PPL Corporation 2016 Retail Price Index -RPI • Revenue: —In November 2015, tariffs for 2016/2017 and 2017/2018 were set using the forecasted RPI for the next two regulatory years. —In November 2016 and going forward, one additional year of tariffs will be set. Therefore 2018/2019 tariffs will be set using the November 2016 forecasted RPI for that period. —In addition, the 2017/2018 revenues will include a true-up for the actual vs. forecasted RPI for the 2015/2016 regulatory year. • O&M impacted primarily by RPI adjustments to wages, including contract labor with a compounding effect realized in future periods. • Approximately 10% of total U.K. debt is RPI index-linked debt. The lower the RPI, the lower the interest expense and vice versa. 29 RPI affects 3 primary financial drivers for WPD: Revenues, O&M and Interest Expense

© PPL Corporation 2016 TRU and MOD Adjustments • Two new adjustments to annual allowed revenue were introduced in RIIO-ED1, known as TRU and MOD adjustments: — TRU Adjustment ▪ Tariffs are set using a forecasted RPI as determined by HM Treasury. ▪ Forecasted RPI is trued up to actuals and the corresponding revenue adjustment is collected from or returned to customers two regulatory years later. —MOD Adjustment ▪ On an annual basis certain components of base demand revenue are trued up, with the cost of debt true-up expected to be the largest component of this adjustment. ▪ MOD adjustment also includes the TotexIncentive Mechanism which allows WPD to retain 70% of any cost savings against the RIIO-ED1 business plan and bear 70% of any cost over-runs. ▪ Similar to TRU, most MOD components result in a revenue adjustment two regulatory years later. • The following table depicts the pre-tax amounts assumed in our 2016 and 2017 earnings guidance for the U.K. Regulated Segment on slide 27. 30 ($ in millions) 2016 2017 TRU $0 ($30) MOD $6 ($ 5) Total $6 ($35)

© PPL Corporation 2016 U.K. Incentive Revenues -Summary • Annual performance above or below the Ofgem targets for Customer Minutes Lost (CML), Customer Interruptions (CI) and the Broad Measure of Customer Satisfaction Survey is rewarded or penalized on a 2-year lag (i.e. 2015/2016 earned performance is received in 2017/2018 revenue). • Rewards/penalties shown on the following slides from the Fast-track Determination are stated in 2012/2013 prices, therefore, we adjust for RPI, as necessary. • WPD is on track to outperform its Ofgem targets in the 2015/2016 regulatory year. • If WPD maintains this level of performance going forward, PPL would expect to earn total incentive revenues that exceed prior estimates for 2017 and 2018. 2017 2018 Estimate: $90M -$110M $75M -$105M 31

© PPL Corporation 2016 U.K. Incentive Revenue –Quality of Service • WPD is on pace to be near the maximum reward for Customer Minutes Lost and Customer Interruptions for the 2015/2016 regulatory year. Note: Based on an average for all four DNOs. Actual results calculated at an individual DNO level. 32 A measurement of the cumulative amount of minutes customers are without electricity. A measurement of the cumulative amount of interruptions in a customer’s supply, per 100 customers. 40.1 28.3 24.4 55.8 0 10 20 30 40 50 60 70 80 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Customer Minutes Lost (2012/13 prices) Ofgem Target Projected Max Reward/Penalty Target 63.4 52.5 49.2 77.6 0 10 20 30 40 50 60 70 80 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Customer Interruptions (per 100 customers) (2012/13 prices) Ofgem Target Projected Max Reward/Penalty Target (-£40.3) (+£40.3) (-£14.8) (+£14.8)

© PPL Corporation 2016 U.K. Incentive Revenue –Customer Satisfaction • The Broad Measure of Customer Satisfaction Survey rewards or penalizes DNOs for the levels of customer satisfaction. • Through December 2015, WPD performance is near or at the maximum reward levels. Note: Based on an average for all four DNOs. Actual results calculated at an individual DNO level. South West South Wales East Midlands West Midlands Total Max reward/penalty +/-£2.8 +/-£1.9 +/-£4.0 +/-£4.0 +/-£12.7 Max Reward Breakeven Max Penalty 33 6.5 7.5 8.5 9.5 Interruptions Connections General Inquiries Broad Measure Customer Satisfaction Survey Through December 2015 (2012/13 prices) South West South Wales East Midlands West Midlands Average other DNOs

© PPL Corporation 2016 ($ in millions) 2016 2017 2018 2019 2020 PPL Capital Funding $0 $0 $250 $0 $0 PPL Electric Utilities 0 0 0 0 100 LG&E and KU Energy 0 0 0 0 475 Louisville Gas & Electric (1) 25 194 98 40 0 Kentucky Utilities 0 0 0 0 500 WPD 460 100 0 0 226 Total $485 $294 $348 $40 $1,301 Debt Maturities Note: As of December 31, 2015. (1) Louisville Gas & Electric has several municipal bonds that may be put by the holders before the bonds’ final maturities. These amounts reflect the timing of any put option in 2016 through 2019. 34

© PPL Corporation 2016 Liquidity Profile Note: As of December 31, 2015. Entity Facility Expiration Date Capacity (Millions) Letters of Credit & Commercial Paper Issued (Millions) Borrowed (Millions) Unused Capacity (Millions) PPL Capital Funding Syndicated Credit Facility Nov-2018 $300 $151 $0 $149 Syndicated Credit Facility Jan-2021 (1) 700 300 0 400 Bilateral Credit Facility Mar-2016 150 20 0 130 $1,150 $471 $0 $679 PPL Electric Utilities Syndicated Credit Facility Jan-2021 (1) $400 $1 $0 $399 LG&E and KU Energy (LKE) Syndicated Credit Facility Oct-2018 $75 $0 $75 $0 Louisville Gas & Electric Syndicated Credit Facility Dec-2020 (2) $500 $142 $0 $358 Kentucky Utilities Syndicated Credit Facility Dec-2020 (2) $400 $48 $0 $352 Letter of Credit Facility Oct-2017 198 198 0 0 $598 $246 $0 $352 WPD WPD plc Syndicated Credit Facility Jan-2021 (3) £210 £0 £133 £77 WPD (South West) Syndicated Credit Facility Jul-2020 245 0 0 245 WPD (East Midlands) Syndicated Credit Facility Jul-2020 300 0 0 300 WPD (West Midlands) Syndicated Credit Facility Jul-2020 300 0 0 300 Uncommitted Credit Facilities 40 4 0 36 £1,095 £4 £133 £958 Strong liquidity position to fund current operations and growth. (1) Reflects extended expiration date and increased capacity due to January 2016 credit facility amendments. (2) Reflects extended expiration date due to January 2016 credit facility amendments. (3) In January 2016, WPD plc replaced its existing syndicated credit facility with a new £210 million facility. Reflects expiration date of new facility. 35

© PPL Corporation 2016 WPD Holding Company LKE Holding Company PPL Electric UtilitiesLKE Operating Companies PPL Capital Funding Credit Rating Secured Unsecured Long-term Issuer Outlook S&P NR BBB+ NR Stable Moody’s NR Baa2 NR Stable Credit Rating Secured Unsecured Long-term Issuer Outlook S&P NR BBB+ A- Stable Moody’s NR Baa3 Baa3 Stable WPD Operating Companies Credit Rating Secured Unsecured Long-term Issuer Outlook S&P NR A- A- Stable Moody’s NR Baa1 Baa1 Stable Credit Rating Secured Unsecured Long-term Issuer Outlook S&P A NR A- Stable Moody’s A1 NR A3 Stable Credit Rating Secured Unsecured Long-term Issuer Outlook S&P NR BBB+ A- Stable Moody’s NR Baa1 Baa1 Stable Credit Rating Secured Unsecured Long-term Issuer Outlook S&P A NR A- Stable PPL Corporation Credit Rating Secured Unsecured Long-term Issuer Outlook S&P NR NR A- Stable Moody’s NR NR Baa2 Stable Strong Credit Ratings Strong credit profile at our utilities, holding companies and PPL Corporation. Moody’s A1 NR A3 Stable 36

© PPL Corporation 2016 37 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (1) Includes an $879 million charge reflecting the difference between PPL's recorded value for the Supply segment and the estimated fair value determined in accordance with applicable accounting rules under GAAP. After-Tax (Unaudited) (millions of dollars) Reported Earnings (Loss) $ 307 $ 59 $ 61 $ (23) $ (5) $ 399 $1,121 $ 326 $ 252 $ (96) $ (921) $ 682 Less: Special Items (expense) benefit: Foreign currency-related economic hedges 35 35 55 55 Spinoff of the Supply segment: Discontinued operations (5) (5) (921) (921) Transition and transaction costs 4 4 (12) (12) Employee transitional services (1) (1) (5) (5) Separation benefits (2) (2) (5) (5) Other: Change in U.K. tax rate 78 78 78 78 Settlement of certain income tax positions 18 18 WPD Midlands acquisition-related adjustment 2 2 Certain valuation allowances (4) (4) (12) (12) LKE acquisition-related adjustment (5) (5) Total Special Items 113 (4) 1 (5) 105 153 (17) (22) (921) (807) Earnings from Ongoing Operations $ 194 $ 63 $ 61 $ (24) $ $ 294 $ 968 $ 343 $ 252 $ (74) $ $ 1,489 Total Corp. Corp. & Other Year-to-Date December 31, 2015 Disc. Ops. (1) U.K. Reg. KY Reg. Total Corp. PA Reg. 4th Quarter December 31, 2015 PA Corp. & Other U.K. KY Reg. Reg. Reg. Disc. Ops.

© PPL Corporation 2016 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations After-Tax (Unaudited) (per share - diluted) Reported Earnings (Loss) $ 0.45 $ 0.09 $ 0.09 $ (0.03) $ (0.01) $ 0.59 $ 1.66 $ 0.48 $ 0.37 $ (0.14) $ (1.36) $ 1.01 Less: Special Items (expense) benefit: Foreign currency-related economic hedges 0.05 0.05 0.08 0.08 Spinoff of the Supply segment: Discontinued operations (0.01) (0.01) (1.36) (1.36) Transition and transaction costs 0.01 0.01 (0.02) (0.02) Employee transitional services (0.01) (0.01) Other: Change in U.K. tax rate 0.11 0.11 0.11 0.11 Settlement of certain income tax positions 0.03 0.03 Certain valuation allowances (0.02) (0.02) LKE acquisition-related adjustment (0.01) (0.01) Total Special Items 0.16 0.01 (0.01) 0.16 0.22 (0.03) (0.03) (1.36) (1.20) Earnings from Ongoing Operations $ 0.29 $ 0.09 $ 0.09 $ (0.04) $ $ 0.43 $ 1.44 $ 0.51 $ 0.37 $ (0.11) $ $ 2.21 Disc. Total Corp. Reg. Reg. Reg. Ops. (1) U.K. KY PA Corp. & Other 4th Quarter Year-to-Date December 31, 2015 December 31, 2015 Total Corp. Disc. Ops. U.K. KY PA Reg. Reg. Reg. Corp. & Other 38 (1) Includes an $879 million charge reflecting the difference between PPL's recorded value for the Supply segment and the estimated fair value determined in accordance with applicable accounting rules under GAAP.

© PPL Corporation 2016 39 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (Adjusted) (1) Certain amounts have been reclassified to reflect the Supply segment as a discontinued operation. (2) Represents 2014 costs allocated to the Supply segment that remained with PPL after the spinoff of the Supply segment. After-Tax (Unaudited) (millions of dollars) Reported Earnings (Loss) $ 294 $ 65 $ 69 $ (20) $ 287 $ 695 $ 982 $ 312 $ 263 $ (120) $ 300 $ 1,737 Less: Special Items (expense) benefit: Foreign currency-related economic hedges 55 55 127 127 Spinoff of the Supply segment: Supply segment earnings 291 291 307 307 Discontinued operations adjustments 2 (2) (5) 5 Change in tax valuation allowances 3 3 (46) (46) Transition and transaction costs (2) (2) (4) (5) (12) (17) Separation benefits (1) (1) (12) (12) Other: Change in WPD line loss accrual (52) (52) Separation benefits (2) (2) Total Special Items 55 2 287 344 75 (2) (68) 300 305 Dissynergies-spinoff of Supply segment expense (benefit): (2) Indirect operation and maintenance 12 12 47 47 Interest expense 7 7 29 29 Depreciation 2 2 7 7 Total dissynergies-spinoff of Supply segment 21 21 83 83 Earnings from Ongoing Operations (Adjusted) $ 239 $ 65 $ 69 $ (43) $ $ 330 $ 907 $ 312 $ 265 $ (135) $ $ 1,349 Total Corp. Reg. Reg. Reg. Ops. (1) Reg. Reg. Reg. Ops. (1) PA Disc. Total Corp. U.K. KY PA Disc. Corp. & Other (1) Corp. & Other (1) 4th Quarter Year-to-Date December 31, 2014 December 31, 2014 U.K. KY

© PPL Corporation 2016 Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations (Adjusted) (1) The "If-Converted Method" has been applied to PPL's 2011 Equity Units, resulting in $9 million of interest charges (after-tax) being added back to earnings and approximately 11 million shares of PPL Common Stock being treated as outstanding. Both adjustments are only for purposes of calculating diluted earnings pershare. (2) Certain amounts have been reclassified to reflect the Supply segment as a discontinued operation. (3) Represents 2014 costs allocated to the Supply segment that remained with PPL after the spinoff of the Supply segment. After-Tax (Unaudited) (per share - diluted) Reported Earnings (Loss) $ 0.44 $ 0.10 $ 0.10 $ (0.03) $ 0.43 $ 1.04 $ 1.48 $ 0.47 $ 0.39 $ (0.18) $ 0.45 $ 2.61 Less: Special Items (expense) benefit: Foreign currency-related economic hedges 0.08 0.08 0.19 0.19 Spinoff of the Supply segment: Supply segment earnings 0.43 0.43 0.46 0.46 Discontinued operations adjustments (0.01) 0.01 Change in tax valuation allowances (0.07) (0.07) Transition and transaction costs (0.02) (0.02) Separation benefits (0.02) (0.02) Other: Change in WPD line loss accrual (0.08) (0.08) Separation benefits (0.01) (0.01) Total Special Items 0.08 0.43 0.51 0.11 (0.01) (0.10) 0.45 0.45 Dissynergies-spinoff of Supply segment expense (benefit): (3) Indirect operation and maintenance 0.02 0.02 0.07 0.07 Interest expense 0.02 0.02 0.05 0.05 Depreciation 0.01 0.01 Total dissynergies-spinoff of Supply segment 0.04 0.04 0.13 0.13 Earnings from Ongoing Operations (Adjusted) $ 0.36 $ 0.10 $ 0.10 $ (0.07) $ $ 0.49 $ 1.37 $ 0.47 $ 0.40 $ (0.21) $ $ 2.03 Year-to-Date December 31, 2014 (1) U.K. KY PA Disc. Total Corp. Reg. Reg. Reg. Ops. (2) Corp. & Other (2) Total Corp. Reg. Ops. (2) Reg.Reg. U.K. KY PA Disc. Corp. & Other (2) December 31, 2014 4th Quarter 40

© PPL Corporation 2016 Gross Margins Summary $ 2,243 $ 2,527 $ (284) $ (0.33) Impact of changes in foreign currency exchange rates (174) (0.20) $ (110) $ (0.13) $ 1,926 $ 1,838 $ 88 $ 0.08 Distribution $ 842 $ 837 $ 5 $ 0.01 Transmission 395 335 60 0.05 $ 1,237 $ 1,172 $ 65 $ 0.06 (Unaudited) (millions of dollars, except share data) U.K. Gross Margins Twelve Months Ended December 31, Per Share Diluted 2015 2014 Change (after-tax) Total KY Gross Margins PA Gross Delivery Margins U.K. Gross Margins excluding impact of foreign currency exchange rates 41

© PPL Corporation 2016 Reconciliation of Year-to-Date Margins to Operating Income $ 2,364 $ 3,115 $ 2,124 $ 66 $ 7,669 $ 2,638 $ 3,168 $ 2,044 $ 2 $ 7,852 863 863 965 965 184 657 14 855 253 587 84 924 14 (14) 84 (84) 121 100 114 1,603 1,938 111 99 103 1,543 1,856 38 845 883 11 912 923 4 102 193 299 2 98 217 317 Total Operating Expenses 121 1,189 887 2,641 4,838 111 1,330 872 2,672 4,985 $ 2,243 $ 1,926 $ 1,237 $ (2,575) $ 2,831 $ 2,527 $ 1,838 $ 1,172 $ (2,670) $ 2,867 Operating Revenues Total Operating Expenses Fuel Energy purchases Other operation and maintenance Depreciation Taxes, other than income Energy purchases U.K. Gross Margins (Unaudited) PA Gross Margins Twelve Months Ended December 31, 2014 U.K. Gross Margins (millions of dollars) Margins Margins Gross Delivery Operating Gross Delivery Kentucky PA Gross Kentucky from affiliate Operating Twelve Months Ended December 31, 2015 Other Income Margins Other Income 42

© PPL Corporation 2016 Reconciliation of Domestic Cash Flows 43 Note: For 2016, due to the generalized and forward-looking nature of this information, the Company has not reconciled the presented non-GAAP financial measures to the most directly comparable GAAP financial measures. (1) Domestic Cash from Operations includes a $191million PPL Energy Supply, LLC dividend andrealized gains of $37 million on U.K. earnings hedges, partiallyoffset by $45 million of discontinued hedges associated with the spinoff of the Supply segment. (2) Primarily represents PPL Global, LLC items that eliminate in PPL's consolidation. (3) Represents dividend from U.K.Regulated and the realized impact of associated net investment hedges. (4) Represents domestic change in cash and cash equivalents, andexcludesthe adjustments to DomesticCash from Operations referenced here. (5) Domestic Cash from Operations includes realized losses of $74 million on U.K. earnings hedges. Year Ended December 2015 Additional (Millions of Dollars) Domestic Domestic Funding Sources PPL Consolidated Cash from Cash Available Cash Available Growth for Domestic Statement of Operations for Distribution for Reinvestment Capex Growth Capex PPL Global, LLC Other Cash Flows Net cash provided by operating activities - continuing operations 1,546$ (1) 871$ (183)$ (1) 2,234$ Net cash used in investing activities - continuing operations (640)$ (1,650)$ 115$ (1,226) (3,401) Net cash provided by financing activities - continuing operations (1,004)$ 707 533 246 (2) 482 Net cash distributions to parent from discontinued operations 132 132 Effect of exchange rates on cash and cash equivalents (10) (10) Domestic (increase) decrease in cash and cash equivalents 319 (3) 607 (4) (926) 1,546$ 1,546 1,225$ 1,225 Total 221$ (1,650)$ 1,429$ 168$ (731)$ (563)$ Year Ended December 2014 Additional (Millions of Dollars) Domestic Domestic Funding Sources PPL Consolidated Cash from Cash Available Cash Available Growth for Domestic Statement of Operations for Distribution for Reinvestment Capex Growth Capex PPL Global, LLC Other Cash Flows Net cash provided by operating activities 2,145$ (5) 1,184$ 74$ (5) 3,403$ Net cash used in investing activities (900)$ (1,816)$ 829$ (1,442) (3,329) Net cash provided by financing activities (967)$ 1,451 (86) 185 (2) 583 Effect of exchange rates on cash and cash equivalents (8) (8) Domestic (increase) decrease in cash and cash equivalents 263 (3) (1,005) (4) 742 2,145$ 2,145 1,508$ 1,508 Total 541$ (1,816)$ 1,275$ (352)$ 1,001$ 649$ Reconciling Items Reconciling Items

© PPL Corporation 2016 Statementscontainedinthispresentation,includingstatementswithrespecttofutureearnings,cashflows,financing,regulationandcorporate strategyare"forward-lookingstatements"withinthemeaningofthefederalsecuritieslaws.AlthoughPPLCorporationbelievesthatthe expectationsandassumptionsreflectedintheseforward-lookingstatementsarereasonable,thesestatementsaresubjecttoanumberofrisksand uncertainties,andactualresultsmaydiffermateriallyfromtheresultsdiscussedinthestatements.Thefollowingareamongtheimportantfactors thatcouldcauseactualresultstodiffermateriallyfromtheforward-lookingstatements:marketdemandforenergyinourserviceterritories, weatherconditionsaffectingcustomerenergyusageandoperatingcosts;theeffectofanybusinessorindustryrestructuring,includingtheability ofPPLCorporationtorealizeallorasignificantportionoftheanticipatedcostsavingsfromthecorporaterestructuringfollowingtheSupply businessspinoff;theprofitabilityandliquidityofPPLCorporationanditssubsidiaries;newaccountingrequirementsornewinterpretationsor applicationsofexistingrequirements;operatingperformanceofourfacilities;thelengthofscheduledandunscheduledoutagesatourgenerating plants;environmentalconditionsandrequirementsandtherelatedcostsofcompliance;systemconditionsandoperatingcosts;developmentof newprojects,marketsandtechnologies;performanceofnewventures;assetorbusinessacquisitionsanddispositions;anyimpactofhurricanesor othersevereweatheronourbusiness;receiptofnecessarygovernmentpermits,approvals,ratereliefandregulatorycostrecovery;capitalmarket conditionsanddecisionsregardingcapitalstructure;theimpactofstate,federalorforeigninvestigationsapplicabletoPPLCorporationandits subsidiaries;theoutcomeoflitigationagainstPPLCorporationanditssubsidiaries;stockpriceperformance;themarketpricesofequitysecurities andtheimpactonpensionincomeandresultantcashfundingrequirementsfordefinedbenefitpensionplans;thesecuritiesandcreditratingsof PPLCorporationanditssubsidiaries;political,regulatoryoreconomicconditionsinstates,regionsorcountrieswherePPLCorporationorits subsidiariesconductbusiness,includinganypotentialeffectsofthreatenedoractualterrorismorwarorotherhostilities;Britishpoundsterlingto U.S.dollarexchangerates;newstate,federalorforeignlegislation,includingnewtaxlegislation;andthecommitmentsandliabilitiesofPPL Corporationanditssubsidiaries.Anysuchforward-lookingstatementsshouldbeconsideredinlightofsuchimportantfactorsandinconjunction withPPLCorporation'sForm10-KandotherreportsonfilewiththeSecuritiesandExchangeCommission. Forward-Looking Information Statement 44

© PPL Corporation 2016 Definitions of Non-GAAP Financial Measures "Earnings from ongoing operations" should not be considered as an alternative to reported earnings, or net income, which is an indicator of operating performance determined in accordance with U.S. generally accepted accounting principles (GAAP). PPL believes that earnings from ongoing operations, although a non-GAAP financial measure, is also useful and meaningful to investors because it provides management's view of PPL's fundamental earnings performance as another criterion in making investment decisions. PPL's management also uses earningsfrom ongoing operations in measuring certain corporate performance goals. Other companies may use different measures to present financial performance. Earnings from ongoing operations is adjusted for the impact of special items as described below, which includes the Supply segment's earnings now reflected in discontinued operations. Also included in special items is the loss on spinoff, reflecting the fair value of the Supply segment being less than PPL's recorded value as of the June 1, 2015 spinoff. Earnings from ongoing operations (adjusted) for 2014 also reflects, within the Corporate and Other category, the impact of spinoff dissynergies that, if not mitigated, would remain with PPL after completion of the spinoff. "Earnings from ongoing operations" is adjusted for the impact of special items. Special items include: • Unrealized gains or losses on foreign currency-related economic hedges. • Supply segment discontinued operations. • Gains and losses on sales of assets not in the ordinary course of business. • Impairment charges. • Workforce reduction and other restructuring effects. • Acquisition and divestiture-related adjustments. • Other charges or credits that are, in management's view, not reflective of the company's ongoing operations. 45

© PPL Corporation 2016 Definitions of Non-GAAP Financial Measures PPLutilizesthefollowingnon-GAAPfinancialmeasuresasindicatorsofperformanceforitsbusinesses.Thesemeasuresarenotintendedtoreplace "OperatingIncome,"whichisdeterminedinaccordancewithGAAP,asanindicatorofoveralloperatingperformance. Othercompaniesmayuse differentmeasurestoanalyzeandreporttheirresultsofoperations. Managementbelievesthesemeasuresprovideadditionalusefulcriteriato makeinvestmentdecisions.Theseperformancemeasuresareused,inconjunctionwithotherinformation,byseniormanagementandPPL'sBoard ofDirectorstomanagetheoperationsandanalyzeactualresultscomparedtobudget. "U.K.GrossMargins"isasinglefinancialperformancemeasureoftheelectricitydistributionoperationsoftheU.K.Regulatedsegment. In calculatingthismeasure,directcosts(recordedin"Otheroperationandmaintenance"ontheStatementsofIncome)aredeductedfromoperating revenues. Asaresult,thismeasurerepresentsthenetrevenuesfromthedeliveryofelectricityacrossWPD'sdistributionnetworkintheU.K.and directlyrelatedactivities. "KentuckyGrossMargins"isasinglefinancialperformancemeasureoftheelectricitygeneration,transmissionanddistributionoperationsofthe KentuckyRegulatedsegment,LKE,LG&EandKU,aswellastheKentuckyRegulatedsegment's,LKE'sandLG&E'sdistributionandsaleofnatural gas. Incalculatingthismeasure,fuel,energypurchasesandcertainvariablecostsofproduction(recordedas"Otheroperationandmaintenance" ontheStatementsofIncome)aredeductedfromrevenues. Inaddition,certainotherexpenses,recordedas"Otheroperationandmaintenance", "Depreciation"and"Taxes,otherthanincome"ontheStatementsofIncome,associatedwithapprovedcostrecoverymechanismsareoffset againsttherecoveryofthoseexpenses,whichareincludedinrevenues.Thesemechanismsallowfordirectrecoveryoftheseexpensesand,insome cases,returnsoncapitalinvestmentsandperformanceincentives. Asaresult,thismeasurerepresentsthenetrevenuesfromelectricityandgas operations. "PennsylvaniaGrossDeliveryMargins"isasinglefinancialperformancemeasureoftheelectricitydeliveryoperationsofthePennsylvania RegulatedsegmentandPPLElectric,whichincludesitstransmissionanddistributionactivities. Incalculatingthismeasure,utilityrevenuesand expensesassociatedwithapprovedrecoverymechanisms,includingenergyprovidedasaPLR,areoffsetwithminimalimpactonearnings. Costs associatedwiththesemechanismsarerecordedin"Energypurchases,""Otheroperationandmaintenance,"whichisprimarilyAct129costs,and "Taxes,otherthanincome,"whichisprimarilygrossreceiptstax. ThisperformancemeasureincludesPLRenergypurchasesbyPPLElectricfrom PPLEnergyPlus,whicharereflectedin"Energypurchasesfromaffiliate"inthereconciliationtables. AsaresultoftheJune2015spinoffofPPL EnergySupplyandtheformationofTalenEnergy,PPLEnergyPlus(renamedTalenEnergyMarketing)isnolongeranaffiliateofPPLElectric. PPL Electric'spurchasesfromTalenEnergyMarketingsubsequenttoMay31,2015arereflectedin"Energypurchases"inthereconciliationtables.This measurerepresentsthenetrevenuesfromthePennsylvaniaRegulatedsegment'sandPPLElectric'selectricitydeliveryoperations. 46