© PPL Corporation 2016

Foreign Currency Hedging Update

PPL Corporation October 12, 2016

© PPL Corporation 2016

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 differ materially from such forward-looking statements. A discussion of factors that could cause actual results or events to differ is contained in the Appendix to this presentation and in the Company’s SEC filings.

2

© PPL Corporation 2016

2016 and 2017 Earnings Forecast, Long-term Earnings and Dividend Growth Projections and Foreign Currency Hedging Strategy Foreign Currency Hedging Status and Future Hedging Targets Q&A

W. H. Spence

Agenda

3

V. Sorgi

© PPL Corporation 2016

$0.00

$1.00

$2.00

$3.00

2015A 2016E 2017E

$/Sh

are

2016/2017 Earnings Forecast

$2.21

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 was part of PPL Corporation’s consolidated reported earnings for the first five months of 2015.

(2) Forecast assumes $1.30/£ exchange rate on remaining un-hedged earnings for 2016 and 2017.

Segment

2015A Earnings from

Ongoing Operations

2016E

Earnings from Ongoing Operations

(Midpoint)

2017E

Earnings (Midpoint)

U.K. Regulated $1.44 $1.41 $1.17

Kentucky Regulated 0.51 0.57 0.59

PA Regulated 0.37 0.47 0.49

Corporate and Other (0.11) (0.10) (0.10)

Total $2.21 $2.35 $2.15

$2.45

4

$2.25

$2.25

$2.05

(1)

(2) (2)

$2.15

$2.56

$2.49

5-6% Compound Annual EPS Growth

(3) (4)

Targeting to grow the dividend 4 percent annually starting in 2017 through 2020

(3) Based on midpoint of the 2017 earnings guidance range of $2.05 - $2.25 per share.

(4) Does not represent earnings forecast or guidance for 2020.

© PPL Corporation 2016

Foreign Currency Hedging Strategy

• Leveraged strong year-to-date earnings

• Executed 6 cents of 2016 restrikes moving hedge value to 2018

• Average hedge rate now $1.38/£ for 76% of 2018 earnings

• Ability to utilize upside in 2018 to execute restrikes for 2019

• Identified up to 5 cents in 2017 earnings to provide for additional restrikes

• Minimizes the effect a decline in the GBP/USD rate could have on future earnings

• Lowest risk alternative to locking in 2018 and 2019 earnings • Liquidity and credit profiles remain

strong • Provides upside to the plan if the

USD/GBP exchange rate increases

PPL Rationale PPL Response to Declining FX Rate

5

© PPL Corporation 2016

Foreign Currency Hedging Status

Note: Hedging status as of 10/10/2016 (1) 2018 hedges are a combination of average-rate forwards and average-rate collars.

Average hedged rate based on the average forward rate and the average floor rate for the collars.

(1)

GBP Foreign Currency 2016 2017 2018

Percentage Hedged 87% 95% 76%

Hedged Rate $1.32/£ $1.32/£ $1.38/£

Budgeted Rate on Open Position $1.30/£ $1.30/£ $1.30/£

Market Rate($/£) 2016 2017 20181.45 $0.00 $0.01 $0.071.40 $0.00 $0.00 $0.051.35 $0.00 $0.00 $0.03

1.25 $0.00 $0.00 ($0.01)1.20 $0.00 $0.00 ($0.02)1.15 $0.00 ($0.01) ($0.04)

EPS Sensitivity on Open Position

6

© PPL Corporation 2016

Market Rate Targeted ($/£) 2019 Hedge % $1.25/£ $1.20/£ $1.15/£ 1.25 100% - - - 1.20 100% - - - 1.15 70% ($0.01) ($0.03) ($0.05)

EPS Sensitivity on 2019 Open Position

2019 Hedge Attainment

Currently have the ability to utilize 6 cents of existing 2018 hedge gains to hedge 2019 exposure:

In addition, further utilization of up to 5 cents of 2017 hedge gains to reduce GBP/USD exposure in 2019:

Market Rate Attainable($/£) 2019 Hedge % $1.25/£ $1.20/£ $1.15/£1.25 100% - - -1.20 63% ($0.02) ($0.04) ($0.06)1.15 42% ($0.03) ($0.06) ($0.09)

EPS Sensitivity on 2019 Open Position

Note: Based on our current earnings estimates for 2017 and 2018 we could use restrikes to hedge 2019 earnings at the levels indicated in the chart above.

7

© PPL Corporation 2016

Appendix

8

© PPL Corporation 2016

Reconciliation of PPL's Forecast of Reported Earnings (Loss) to Earnings from Ongoing Operations

9

After-Tax (Unaudited)

Reported Earnings (Loss) $ 1.60 $ 0.57 $ 0.47 $ (0.11) $ 2.53 $ $ 2.43 Less: Special Items (expense) benefit: Foreign currency-related economic hedges 0.19 0.19 0.19 Spinoff of the Supply segment (0.01) (0.01) (0.01) Total Special Items 0.19 (0.01) 0.18 0.18 Earnings from Ongoing Operations $ 1.41 $ 0.57 $ 0.47 $ (0.10) $ 2.35 $ $ 2.25 2.45

0.19

2.63

0.18

Total

Forecast (per share - diluted) 2016 Midpoint

U.K. Reg.

KY Reg.

PA Reg.

Corp. & Other

High 2016

Low 2016

(0.01)

© PPL Corporation 2016 10

Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations

After-Tax (Unaudited)Year-to-Date December 31, 2015

Reported Earnings (Loss) $ 1,121 $ 326 $ 252 $ (96) $ (921) $ 682 $ 1.66 $ 0.48 $ 0.37 $ (0.14) $ (1.36) $ 1.01 Less: Special Items (expense) benefit: Foreign currency-related economic hedges, net of tax of ($30) 55 55 0.08 0.08 Spinoff of the Supply segment:

Discontinued operations, net of tax of $30 (1) (921) (921) (1.36) (1.36) Transition and transaction costs, net of tax of $6 (12) (12) (0.02) (0.02) Employee transitional services, net of tax of $2 (5) (5) (0.01) (0.01) Separation benefits, net of tax of $3 (5) (5)

Other: Change in U.K. tax rate 78 78 0.11 0.11 Settlement of certain income tax positions 18 18 0.03 0.03 WPD Midlands acquisition-related adjustment, net of tax of ($1) 2 2 Certain valuation allowances, net of tax of $0 (12) (12) (0.02) (0.02) LKE acquisition-related adjustment, net of tax of $0 (5) (5) (0.01) (0.01)

Total Special Items 153 (17) (22) (921) (807) 0.22 (0.03) (0.03) (1.36) (1.20) Earnings from Ongoing Operations $ 968 $ 343 $ 252 $ (74) $ $ 1,489 $ 1.44 $ 0.51 $ 0.37 $ (0.11) $ $ 2.21

(1) Includes an $879 mill ion charge reflecting the difference between PPL's recorded value for the Supply segment and the estimated fair value determined in accordance with applicable rules under GAAP.

Disc.Ops.(1)

KYReg.

PA Reg.

Corp. &Other

(mill ions of dollars) (per share - diluted)Total Corp.

Total Corp.

U.K.Reg.

KYReg.

PA Reg.

Corp. & Other

U.K. Reg.

Disc.Ops.(1)

(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 rules under GAAP.

© PPL Corporation 2016

Statements contained in this presentation, including statements with respect to future earnings, cash flows, dividends, financing, regulation and corporate strategy are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements are subject to a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: market demand for energy in our service territories, weather conditions affecting customer energy usage and operating costs; the effect of any business or industry restructuring, including the ability of PPL Corporation to realize all or a significant portion of the anticipated cost savings from the corporate restructuring following the Supply business spinoff; the profitability and liquidity of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating performance of our facilities; the length of scheduled and unscheduled outages at our generating plants; environmental conditions and requirements and the related costs of compliance; system conditions and operating costs; development of new projects, markets and technologies; performance of new ventures; asset or business acquisitions and dispositions; any impact of hurricanes or other severe weather on our business; receipt of necessary government permits, approvals, rate relief and regulatory cost recovery; capital market conditions and decisions regarding capital structure; the impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries; the outcome of litigation against PPL Corporation and its subsidiaries; stock price performance; the market prices of equity securities and the impact on pension income and resultant cash funding requirements for defined benefit pension plans; the securities and credit ratings of PPL Corporation and its subsidiaries; political, regulatory or economic conditions in states, regions or countries where PPL Corporation or its subsidiaries conduct business, including any potential effects of threatened or actual terrorism or war or other hostilities; British pound sterling to U.S. dollar exchange rates; new state, federal or foreign legislation, including new tax legislation; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such important factors and in conjunction with PPL Corporation's Form 10-K and other reports on file with the Securities and Exchange Commission.

Forward-Looking Information Statement

11

© PPL Corporation 2016

Definitions of Non-GAAP Financial Measures Management utilizes “Earnings from ongoing operations” as a non-GAAP financial measure that should not be considered as an alternative to reported earnings, or net income, an indicator of operating performance determined in accordance with GAAP. PPL believes that earnings from ongoing operations is useful and meaningful to investors because it provides management’s view of PPL’s earnings performance as another criterion in making investment decisions. In addition, PPL's management uses earnings from ongoing operations in measuring achievement of certain corporate performance goals, including targets for certain executive incentive compensation. Other companies may use different measures to present financial performance. Earnings from ongoing operations is adjusted for the impact of special items. Special items are presented in the financial tables on an after-tax basis with the related income taxes on special items separately disclosed. Income taxes on special items, when applicable, are calculated based on the effective tax rate of the entity where the activity is recorded. Special items include:

• Unrealized gains or losses on foreign currency-related economic hedges (as discussed below). • 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, non-recurring or otherwise not reflective of the company’s ongoing

operations. Unrealized gains or losses on foreign currency economic hedges include the changes in fair value of foreign currency contracts used to hedge British-pound-sterling-denominated anticipated earnings. The changes in fair value of these contracts are recognized immediately within GAAP earnings. Management believes that excluding these amounts from earnings from ongoing operations until settlement of the contracts provides a better matching of the financial impacts of those contracts with the economic value of PPL’s underlying hedged earnings.

12