FINANCIAL - PPL

2011^(e)

2010

Operating revenues (millions)

$8,519

$6,658

Net income attributable to PPL (millions)

$1,041

$583

Earnings from ongoing operations (millions)^(a)

$1,099

$954

Total assets (millions)^(b)

$40,956

$26,728

Earnings per share - Basic

$1.92

$1.40

Earnings per share - Diluted

$1.91

$1.40

Earnings from ongoing operations per share - Basic^(d)

$2.02

$2.29

Earnings from ongoing operations per share - Diluted^(d)

$2.02

$2.29

Dividends declared per share (12 months ended) 

$1.40

$1.395

Book value per share^(b)

$18.77

$17.24

Market price per share^(b)

$28.54

$27.23

Dividend yield^(b)

4.9%

5.1%

Dividend payout ratio (12 months ended)^(c)

53%

77%

Dividend payout ratio - Earnings from ongoing operations (12 months ended) ^(c,d)

49%

49%

Market price/Book value ratio^(b)

152%

158%

Price/earnings ratio (12 months ended)^(c)

10.8

15.0

Price/earnings ratio - Earnings from ongoing operations (12 months ended)^(c,d)

10.0

9.6

Return on common equity (12 months ended)

14.77%

11.39%

Return on common equity - Earnings from ongoing operations (12 months ended)^(d)

15.91%

17.82%

OPERATING - DOMESTIC ELECTRICITY SALES (GWh)

Retail delivered

52,357

28,314

Retail supplied

30,491

6,891

Wholesale supplied

48,750

58,082

OPERATING - INTERNATIONAL ELECTRICITY SALES (GWh)

United Kingdom

38,758

20,136

(a)

“Earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with 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 “earnings from 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. Special items include:

•  Energy-related economic activity (as discussed below).
•  Foreign currency-related economic hedges.
•  Gains and losses on sales of assets not in the ordinary course of business.
•  Impairment charges (including impairments of securities in the company’s nuclear decommissioning trust funds).
•  Workforce reduction and other restructuring impacts.
•  Acquisition-related costs and charges.
•  Other charges or credits that are, in management’s view, not reflective of the company’s ongoing operations.

Energy-related economic activity includes the changes in fair value of positions used economically to hedge a portion of the economic value of PPL’s generation assets, full-requirement sales contracts and retail activities. This economic value is subject to changes in fair value due to market price volatility of the input and output commodities (e.g., fuel and power) prior to the delivery period that was hedged. Also included in energy-related economic activity is the ineffective portion of qualifying cash flow hedges, the monetization of certain full-requirement sales contracts and premium amortization associated with options. This economic activity is deferred, with the exception of the full-requirement sales contracts that were monetized, and included in earnings from ongoing operations over the delivery period of the item that was hedged or upon realization. Management believes that adjusting for such amounts provides a better matching of earnings from ongoing operations to the actual amounts settled for PPL’s underlying hedged assets. Please refer to the Notes to the Consolidated Financial Statements and MD&A in PPL Corporation’s periodic filings with the Securities and Exchange Commission for additional information on energy-related economic activity.

Click on the link at the top of this schedule to reference a reconciliation of earnings from ongoing operations to reported earnings, or net income attributable to PPL.

(b)

End of period.

(c)

Calculated using diluted shares.

(d)

Calculated using earnings from ongoing operations.

(e)

Certain line items for 2011 include activity for LKE, which was acquired on November 1, 2010, and for WPD Midlands, which was acquired on April 1, 2011.