Slide 1: Fiscal 2017 First Quarter Results
Fiscal 2017 First Quarter Results John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry Sheridan President & CEO, AmeriGas 1
Slide 2: About This Presentation
About This Presentation This presentation contains certain forward-looking statements that management believes to be reasonable as of today’s date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management’s
Slide 3: First Quarter Recap
First Quarter Recap John Walsh President & CEO, UGI 3
Slide 4: Q1 Earnings Recap
Q1 Earnings Recap • Record First Quarter • Higher adjusted net income across all four business units Adjusted EPS • Contributions from strategic investments made in recent years 42% increase • Impact of weather that was colder than the prior-year period Midstream & $0.91 AmeriGas International Marke
Slide 5: Q1 Market Recap
Q1 Market Recap • Sunbury pipeline construction completed and placed into service on January 1st • Mechanical completion of Manning LNG facility, will be placed into service in the current quarter • Added 4,600 new residential heating and commercial utility customers • New UGI Gas base rates went in
Slide 6: First Quarter Financial Review
First Quarter Financial Review Kirk Oliver Chief Financial Officer, UGI 6
Slide 7: Q1 Adjusted Earnings
Q1 Adjusted Earnings FY16-Q1 FY17-Q1 ($ millions) Net income attributable to UGI Corporation $114.6 $ 230.7 Net gains on commodity derivative instruments 1,2 (3.6) (52.2) Net gains on foreign currency derivative instruments 1 - (0.8) Integration expenses associated with Finagaz1 1.4 5.3 Loss on exti
Slide 8: Financial Results – AmeriGas
Financial Results – AmeriGas Weather versus normal ($ millions) FY16-Q1 FY17-Q1 colder Adjusted EBITDA $177.7 Retail Volume 12.6 Wholesale and Other Total Margin 3.0 Operating and Administrative Expenses 4.1 FY16-Q1 FY17-Q1 Other Operating Income (12.3) Adjusted EBITDA $185.1 -13.9% -19.9% • Retail
Slide 9: Financial Results – UGI International
Financial Results – UGI International ($ millions) FY16-Q1 FY17-Q1 Weather versus Income Before Taxes $78.5 normal Total Margin 5.7 colder Operating and Administrative Expenses (6.0) Depreciation and Amortization (0.7) Interest Expense 1.7 Other Operating Income 4.8 FY16-Q1 FY17-Q1 Income Before Tax
Slide 10: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing ($ millions) FY16-Q1 FY17-Q1 Weather versus normal Income Before Taxes $ 42.1 colder Total Margin 5.6 Operating and Administrative Expenses (0.9) Depreciation and Amortization (0.6) Interest Expense 0.2 FY16-Q1 FY17-Q1 Other Operating Income 2.7 Income Befor
Slide 11: Financial Results – Utilities
Financial Results – Utilities Gas Utility weather versus ($ millions) FY16-Q1 FY17-Q1 normal Income Before Taxes $38.8 colder Total Margin 29.1 Operating and Administrative Expenses 1.6 Depreciation and Amortization (0.7) Interest Expense (0.5) FY16-Q1 FY17-Q1 -6.3% Other Income and Expense, net 3.9
Slide 12: Adjusted EPS
Q1 Results Recap Strong results across all business units lead to record Q1 results $1.00 $0.12 $0.00 $0.91 $0.03 $0.11 $0.64 $0.01 Adjusted EPS $0.00 Q1 FY16 AmeriGas UGI Midstream & UGI Utilities Corp & Other Q1 FY17 International Marketing UGI Corporation | Fiscal 2017 First Quarter Results Adjus
Slide 13: AmeriGas First Quarter Recap
AmeriGas First Quarter Recap Jerry Sheridan President & CEO, AmeriGas
Slide 14: Q1 Earnings Recap
Q1 Earnings Recap • Weather ~14% warmer than normal, 7% Adjusted EBITDA ($ millions) colder than prior year $177.7 $185.1 • Retail volumes increased 3.6% year over year • Margins stable despite 39% increase in Mt. Belvieu price of propane • Focus on cost controls; operating expenses down ~$4 million
Slide 15: Comparison of FY15-Q1 vs. FY17-Q1
Comparison of FY15-Q1 vs. FY17-Q1 Comparable Results… …despite 11% warmer weather Adjusted EBITDA ($ millions) $188.5 $185.1 0.0% FY15-Q1 FY17-Q1 -2.9% -5.0% -10.0% -13.9% -15.0% -20.0% FY17: FY15-Q1 FY17-Q1 • 35 million gallons (10%) lower volume • Includes $8.8 million charge to correct an error •
Slide 16: Quarter Accomplishments
Quarter Accomplishments Cylinder Exchange • Delivered volume 13% higher than last year • Same store sales growth up 4% National Accounts • Volume increased 17% due to colder weather in December and new accounts Refinancing of 2022 Notes • Completed a tender offer for $500MM of 7% notes due 2022 and
Slide 17: Conclusion and Q&A
Conclusion and Q&A John Walsh President & CEO, UGI UGI Corporation | Fiscal 2017 First Quarter Results 17
Slide 18: Clear Path to Growth
Clear Path to Growth MIDSTREAM & MARKETING UGI UTILITIES • Addition of Sunbury and Manning LNG strengthens • Record levels of capital expenditures portfolio • Support growth and infrastructure • Expect FERC Environmental Impact Statement by replacement mid-April • Will exceed $1.1 billion over next
Slide 19: Appendix
APPENDIX 19
Slide 20: UGI Supplemental Footnotes
UGI Supplemental Footnotes • Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. For the periods presented, adjusted net income attributable to UGI is net income
Slide 21: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS Three Months Ended December 31, (Million of dollars, except per share amounts) FY17 FY16 NON-GAAP RECONCILIATION: Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 230.7 $ 114.6 Net gains on commodity derivative instrume
Slide 22: AmeriGas Supplemental Footnotes
AmeriGas Supplemental Footnotes • The enclosed supplemental information contains a reconciliation of earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA to Net Income. • EBITDA and Adjusted EBITDA are not measures of performance or financial c
Slide 23: AmeriGas Adjusted EBITDA
AmeriGas Adjusted EBITDA (Millions of dollars) Three Months Ended December 31, EBITDA and Adjusted EBITDA: FY17 FY16 FY15 Net income attributable to AmeriGas Partners $ 92.0 $ 81.0 $ (39.6) Income tax expense (a) 0.8 0.9 0.9 Interest expense 40.0 41.0 41.0 Depreciation 34.0 38.6 38.7 Amortization 10
Slide 24: Investor Relations
Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com 24