Ugi Corporation · NYSE:UGI
Ugi — FY2019 Earnings Presentation
28 slides from Ugi's earnings presentation, Nov 12, 2019
Slide 1: Fiscal 2019 Results and Fiscal 2020 Outlook
Fiscal 2019 Results and Fiscal 2020 Outlook John L. Walsh President & CEO, UGI Corporation Ted J. Jastrzebski Chief Financial Officer, UGI Corporation Roger Perreault Executive Vice President, Global LPG, UGI Corporation
Slide 2: About This Presentation
About This Presentation This presentation contains statements, estimates and projections which 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
Slide 3: Fiscal Year Recap
Fiscal Year Recap 3 John L. Walsh President & CEO, UGI Corporation
Slide 4: Fiscal Year Earnings Recap
Fiscal Year Earnings Recap Adjusted EPS1 Reportable Segments EBIT2 $2.74 $1.08B $0.98B $2.28 FY 2018 FY 2019 FY 2018 FY 2019 1 • FY 2019 GAAP EPS of $1.41 and Adjusted EPS of $2.28 • Unfavorable weather at UGI International • Lower capacity management margin due to increased pipeline restrictions an
Slide 5: Fiscal Year Overview
Fiscal Year Overview • Conclusion of major acquisitions: • AmeriGas Merger transaction: enhanced cash flow to pay down debt and fund capital investments in our natural gas businesses; simplified structure will drive synergies/operational efficiencies • Columbia Midstream Group acquisition: expanded
Slide 6: Fiscal Year Financial Review
Fiscal Year Financial Review Ted J. Jastrzebski Chief Financial Officer, UGI Corporation
Slide 7: Fiscal Year Adjusted Earnings continued
Fiscal Year Adjusted Earnings continued FY 2018 FY 2019 UGI Corporation - Diluted Earnings Per Share (GAAP) $4.06 $1.41 Net (gains) losses on commodity derivative instruments (0.39) 0.82 Unrealized (gains) on foreign currency derivative instruments (0.11) (0.13) Loss on extinguishment of debt - 0.02
Slide 8: FY 2019 Results Recap
FY 2019 Results Recap Adjusted EPS1 Adjusted EPS1 $2.74 $(0.05) 2 $(0.07) $2.74 $(0.29) $2.283 $0.80 UGI Utilities $(0.06) $0.08 $2.36 $0.01 $2.28 $0.74 $0.72 Midstream & 3.3% 0.5% - 3% Marketing $0.43 Colder Warmer Flat Warmer UGI than prior year $0.87 International $0.80 $0.43 AmeriGas $0.38 UGI A
Slide 9: Financial Results - AmeriGas
Financial Results - AmeriGas (Millions of dollars) FY 2018 FY 2019 Weather versus normal 1 Adjusted EBITDA $605.5 Colder Retail Margin (21.7) Total Margin Wholesale and Other Total Margin 4.1 Operating and Administrative Expenses (4.3) Other Income and Expense, net (3.3) 0.3% 3.6% Adjusted EBITDA1 $
Slide 10: Financial Results – UGI International
Financial Results – UGI International (Millions of dollars) FY 2018 FY 2019 Weather versus normal Earnings Before Interest Expense & Income Taxes $240.4 Colder Total Margin (87.4) Operating and Administrative Expenses 46.6 Depreciation and Amortization 16.8 Realized FX Gains 18.3 Other Income and Ex
Slide 11: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing (Millions of dollars) FY 2018 FY 2019 Weather versus normal Earnings Before Interest Expense & Income Taxes $178.7 Colder Total Margin (56.4) Operating and Administrative Expenses (6.7) Depreciation and Amortization (7.9) (1.5)% (1.6)% Other Income and Expen
Slide 12: Financial Results – Utilities
Financial Results – Utilities (Millions of dollars) FY 2018 FY 2019 Weather versus normal Earnings Before Interest Expense & Income Taxes $237.5 Total Margin (1.9) Colder Operating and Administrative Expenses (2.1) Depreciation (8.2) (2.1)% (5.0)% Other Income and Expense, net 0.4 Earnings Before In
Slide 13: EPS Seasonality Pre and Post AmeriGas Transaction
EPS Seasonality Pre and Post AmeriGas Transaction • AmeriGas acquisition changes Percentage of UGI Adjusted EPS seasonal earnings profile of UGI by Quarter • Historically, on average, ~95% of FY Adjusted EPS was generated in the first Quarter Historical Avg. FY 20 Budget half of the year Q1 ~35% ~40
Slide 14: Global LPG Update
Global LPG Update Roger Perreault Executive Vice President, Global LPG, UGI Corporation
Slide 15: LPG Business Transformation Initiatives - AmeriGas
LPG Business Transformation Initiatives - AmeriGas • Identified over $120 million of permanent annual savings and operational efficiencies that will be fully implemented over the next 24 months • Acceleration of Pace and Scale of Initiatives: • Customer Digital Experience • Customer Relationship Man
Slide 16: LPG Business Transformation Initiatives – UGI International
LPG Business Transformation Initiatives – UGI International • Identified over €30 million of permanent annual savings and operational efficiencies that will be fully realized by the end of FY22 • Centralization of back office functions • Identification of synergies and best practices across Europe •
Slide 17: Conclusion and Q&A
Conclusion and Q&A John L. Walsh President & CEO, UGI Corporation
Slide 18: Strategic Overview & Summary
Strategic Overview & Summary FY20 Adjusted EPS Guidance Range $2.60 - $2.901 • Significant activities across our businesses continue to generate strong cash flows • Utilities expects to invest $1.8 billion over the next four years • Improved efficiency of our LPG distribution businesses • Diversifie
Slide 19: Key Investments Drive Earnings
Key Investments Drive Earnings $4.25 $4.051 11%-13% Growth $3.75 $3.75 10%-12% Growth $3.25 AdjustedEPS $2.901 $2.75 $2.60 $2.25 FY 2020 Guidance1 Global LPG Natural Gas FY 2023 Estimate1 1Adjusted EPS is a non-GAAP measure. Because we are unable to predict certain potentially material items affecti
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: 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 23: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2019 Results 23
Slide 24: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2019 Results 24
Slide 25: Income Before Income Taxes and Adjusted EBITDA
Income Before Income Taxes and Adjusted EBITDA UGI Corporation | Fiscal 2019 Results 25
Slide 26: Reportable Segments Earnings before Interest Expense and Income Tax
Reportable Segments Earnings before Interest Expense and Income Tax $1,080M $(18.2M) $(6.1M) $(64.6M) $(11.8M) $978M FY 2018 AmeriGas UGI International Midstream & Marketing UGI Utilities FY 2019 UGI Corporation | Fiscal 2019 Results 26
Slide 27: Record Capital Deployment
Record Capital Deployment CAPEX expected to increase to ~$850 million in FY20 -Includes capex associated with LPG business transformation Capital Expenditures: 2019-2023 Capital Expenditures: 2014-2018 $4.5 Billion $2.7 Billion 27% 32% 68% 73% Natural Gas LPG Natural Gas LPG UGI Corporation | Fiscal
Slide 28: Investor Relations
Investor Relations: Brendan Heck Alanna Zahora 610-456-6608 610-337-1004 heckb@ugicorp.com zahoraa@ugicorp.com