Ugi Corporation · NYSE:UGI
Ugi — FY2020 Earnings Presentation
30 slides from Ugi's earnings presentation, Nov 19, 2020
Slide 1: Fiscal 2020 Results and Fiscal 2021 Outlook
Fiscal 2020 Results and Fiscal 2021 Outlook John L. Walsh President & CEO, UGI Corporation Ted J. Jastrzebski Chief Financial Officer, UGI Corporation Robert F. Beard Executive Vice President Natural Gas, UGI Corporation Roger Perreault Executive Vice President Global LPG, UGI Corporation 1
Slide 2: About This Presentation
About This Presentation This presentation contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities and Exchange Act of 1934, as amended). Management believes that these are reasonable as of today’s date only. Actual results may d
Slide 3: Fiscal Year Recap
Fiscal Year Recap 3 John L. Walsh President & CEO, UGI
Slide 4: Fiscal Year Earnings Recap
Fiscal Year Earnings Recap • GAAP EPS of $2.54 and adjusted EPS1 of $2.67; FY20 adjusted EPS up ~17% from FY19 • Strong FY20 performance driven by UGI Appalachia, AmeriGas buy-in, disciplined expense and cash flow management, and tax benefits • The new High Tax legislation (GILTI) provided compoundi
Slide 5: Fiscal Year 2021 Guidance Update
Fiscal Year 2021 Guidance Update FY21 Adjusted EPS Guidance Range $2.65 - $2.951 Guidance Impacts • Updated normal weather to a 10-year average as basis for FY21; affects budgeted volumes by 1-1.5% and adjusted EPS by ~$0.04 • Expect lingering COVID-19 volume impact on certain customer segments, mai
Slide 6: Commitment to Our Communities
Commitment to Our Communities • In Fiscal 2020, our communities were impacted by critical issues, such as food insecurity, homelessness, and racial injustice • UGI’s leadership team, Board of Directors, and our employees stepped up to provide financial and volunteer support to food banks, emergency
Slide 7: Key Accomplishments
Key Accomplishments • Midstream and Marketing continued to see strong performance from UGI Appalachia; EBIT and cash flow exceeded expectations; throughput volumes were up 6% vs. prior year; completion of Bethlehem LNG storage and vaporization system supports peaking contracts which generate ~$90 mi
Slide 8: Fiscal Year Financial Review
Fiscal Year Financial Review Ted J. Jastrzebski Chief Financial Officer, UGI
Slide 9: Drivers of Q4 Performance
Drivers of Q4 Performance • New high tax legislation (GILTI) combined with the CARES Act provided larger than anticipated benefits, as UGI carried losses back fully five years • Resulted in $0.10 of additional tax benefit in the 4th quarter • Approximately $0.20 of tax benefits specific to Fiscal 20
Slide 10: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share FY 2019 FY 2020 AmeriGas Propane $0.38 $0.74 UGI International 0.80 0.82 Midstream & Marketing 0.43 0.44 UGI Utilities 0.74 0.65 Corporate & Other (a) (0.94) (0.11) Earnings per share – diluted 1.41 2.54 Net losses (gains) on commodity derivative instruments 0.82
Slide 11: FY 2020 Results Recap
FY 2020 Results Recap • FY20 GAAP EPS of $2.54 compared to GAAP EPS of $1.41 in the prior-year Adjusted EPS1 Adjusted EPS1 $2.673 0.01 0.36 0.02 (0.09) 0.09 $2.282 UGI $0.65 Utilities $0.74 $0.44 Midstream $0.43 & Marketing $ 2.67 $0.82 $ 2.28 4.6% 6.7% 6.3% 5.8% $0.80 UGI Warmer Warmer Warmer Warme
Slide 12: Transformation Project
Transformation Project • In Fiscal 2020, UGI initiated a transformation project for its support functions, including Finance, Procurement, HR, and IT • Transformation project will review, redesign, and establish processes within each of these functions using a global lens to: • Standardize activitie
Slide 13: Financial Results - AmeriGas
Financial Results - AmeriGas (Millions of dollars) FY 2019 FY 2020 Weather versus normal Earnings Before Interest Expense & Income Taxes $404 Total Margin (70) Operating and Administrative Expenses 39 Depreciation and Amortization 1 3.6% Other Income and Expense, net (1) (1.2)% Earnings Before Inter
Slide 14: Financial Results – UGI International
Financial Results – UGI International FY 2019 FY 2020 (Millions of dollars) Weather versus normal Earnings Before Interest Expense & Income Taxes $234 Total Margin (20) Colder Operating and Administrative Expenses 38 Depreciation and Amortization (1) Realized FX Gains 10 Other Income and Expense, ne
Slide 15: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing FY 2019 FY 2020 (Millions of dollars) Weather versus normal Earnings Before Interest Expense & Income Taxes $114 Colder Total Margin 80 Operating and Administrative Expenses (20) Depreciation and Amortization (24) Other Income and Expense, net 18 Earnings Be
Slide 16: Financial Results – Utilities
Financial Results – Utilities (Millions of dollars) FY 2019 FY 2020 Weather versus normal Earnings Before Interest Expense & Income Taxes $226 Colder Total Margin 14 Operating and Administrative Expenses 5 Depreciation (12) Other Income and Expense, net (4) (5.0)% (11.0)% Earnings Before Interest Ex
Slide 17: Liquidity Update
Liquidity Update • Continue to maintain strong balance sheet position • Total available liquidity was $1.5 billion as of 9/30/20 compared to $1.1 billion as of 9/30/19 • Reduction in consolidated leverage in Fiscal 2020; expect trend to continue in Fiscal 2021 and beyond UGI Corporation | Fiscal 202
Slide 18: Update on Natural Gas Business
Update on Natural Gas Business Robert F. Beard Executive Vice President Natural Gas, UGI
Slide 19: Natural Gas Business Update
Natural Gas Business Update • Bethlehem LNG facility completed on time and on budget; provides 70,000 dth/day of reliable, on-system supply into UGI Utilities distribution system • UGI Appalachia meeting and exceeding business case assumptions • Renewable energy solutions • GHI will be a platform fo
Slide 20: Natural Gas Business Update Continued
Natural Gas Business Update Continued • UGI Utilities retired nearly 72 miles of bare steel and cast iron mains; exceeded annual commitment to regulators; expect an approximately 35% reduction over the next ten years as a result of replacement program • Sale of Conemaugh will reduce UGI’s Scope 1 (d
Slide 21: Update on Global LPG Business
Update on Global LPG Business Roger Perreault Executive Vice President Global LPG, UGI
Slide 22: Global LPG Business Update
Global LPG Business Update • Transformation Initiatives exceeded Fiscal 2020 commitments • AmeriGas realized over $40 million in annual benefits • UGI International realized over €7 million in annual benefits • AmeriGas business transformation program increased expected annual benefits to $140 milli
Slide 23: Global LPG Business Update Continued
Global LPG Business Update Continued • UGI International business transformation initiative commitments remain unchanged • Expect over €30 million of annual benefits by the end of FY22 • Estimated cost to implement of €55 million • Centers of Excellence are operational and delivering value • Cynch i
Slide 24: Strategic Overview and Summary
Strategic Overview and Summary John L. Walsh President & CEO, UGI
Slide 25: Strategic Overview & Summary
Strategic Overview & Summary • Committed to reduce UGI’s carbon footprint • Investments in RNG and Bio-LPG • Acquisition of GHI, a renewable natural gas company • RNG feedstock project in Idaho • Exploring a number of additional RNG opportunities • Actively developing Bio-LPG sources to augment UGI’
Slide 26: Q&A
Q&A 26
Slide 27: Appendix
Appendix
Slide 28: UGI Adjusted Net Income
UGI Adjusted Net Income (Dollars in millions) FY 2019 FY 2020 AmeriGas Propane $68 $156 UGI International 145 173 Midstream & Marketing 78 92 UGI Utilities 133 136 Corporate & Other (a) (168) (25) Net income attributable to UGI Corporation 256 532 Net losses (gains) on commodity derivative instrumen
Slide 29: UGI Supplemental Footnotes
UGI Supplemental Footnotes • Management uses “adjusted net income attributable to UGI Corporation” and “adjusted diluted earnings per share,” both of which are non-GAAP financial measures, when evaluating UGI’s overall performance. Management believes that these non-GAAP measures provide meaningful
Slide 30: Investor Relations
Investor Relations: Brendan Heck Alanna Zahora 610-456-6608 610-337-1004 heckb@ugicorp.com zahoraa@ugicorp.com