Slide 1: Investor Presentation May 2023
R Investor Presentation May 2023
Slide 2: Disclaimer
Recipients of this presentation (each, a “Recipient”) should carefully review the offering memorandum relating to the offering of the notes described herein, including the risk factors in that offering memorandum, before making any investment decision. This presentation is not an offer to sell or th
Slide 3: Business Overview
R Business Overview
Slide 4: AmeriGas Propane at a Glance
AmeriGas Propane1 at a Glance Operational Footprint Bulk Distribution ~1 million tanks with 120 – 1,200 gallon capacity National Accounts Utilizing scale to serve regional and national customers Cylinder Exchange Portable tanks for barbecues and outdoor heating Trailers Rail Cars ~870 Terminals Bobt
Slide 5: AmeriGas Propane Overview
AmeriGas Propane Overview Company Overview1 Sales Overview Customer Overview1 Largest retail propane distributor in the U.S.2 serving ~1.3 million residential, agricultural, wholesale and motor fuel customers in all 50 states from ~1,400 distribution locations UGI Corporation is the parent company I
Slide 6: Investment Highlights
Investment Highlights eas
Slide 7: Key Investment Highlights
Key Investment Highlights I II III IV V VI VII
Slide 8: Parent Support of AmeriGas
Parent Support of AmeriGas1 I AmeriGas is an Important Portfolio Company for the Long-Term Strategic Growth of UGI Corporation The Global LPG Business is a Key Priority to UGI Corporation’s Commitment to Focus on 3-R Strategy2 and Long-Term Financial Commitments UGI Corporation’s Scale and Revenue D
Slide 9: Well-Structured Customer Contracts
The majority of our contracts have pass-through structures which enable recovery over the long-term despite the potential for short-term lags in covering higher commodity cost. Formula-Based / Contract Floating Prices calculated based on the applicable index which moves with the LPG spot market. The
Slide 10: Reliable Margin Management
Areas of Focus Effective margin management Streamlined delivery channels Operational & commercial excellence Data analytics for customer retention, superior service and enhanced experience Reliable Margin Management III Source: Company Financials | (1) Adjusted Unit Margin per Gallon is a non-GAAP m
Slide 11: Leveraging our Operating Model to Drive Market Share and Earnings Growth
Leveraging our Operating Model to Drive Market Share and Earnings Growth IV FY2021 FY2022 Cumulative Business Transformation Benefits $ in Millions Process Efficiency Cost savings though economies of scale Operations centralized for scale, best practice and automation Selling Efficiency Simple, effe
Slide 12: Long-Term Growth of Less Weather-Dependent Volumes
Long-Term Growth of Less Weather-Dependent Volumes V AmeriGas Cylinder Exchange (“ACE”) program continues to be an important element of the business and available at over 50,000 retail locations throughout the U.S.1 Growth Strategy Initiatives Grow the vending program at high turning locations via p
Slide 13: Long-Term Meaningful Free Cash Flow Generation
Long-Term Meaningful Free Cash Flow Generation VI Source: Company Financials | (1) Free Cash Flow is a non-GAAP measure. See Appendix for reconciliation Historical Free Cash Flow Generation1 Positive, Long-Term Impacts of Business Transformation Initiatives Despite Challenging Operating Environment,
Slide 14: Experienced and Proven Management Team
Experienced and Proven Management Team VII Name / Title Years of Experience Roger Perreault – President & CEO – UGI Corporation 25+ Sean O’Brien – CFO – UGI Corporation 25+ Paul Ladner – President – AmeriGas Propane 25+ Raymond Kaszuba – CFO – AmeriGas Propane 20+ Experienced and proven management t
Slide 15: Financial Overview
R Financial Overview
Slide 16: Commitment to Financial Discipline
Commitment to Financial Discipline Parent support from UGI demonstrates that debt repayment is a priority1 Flexibility of distributions promotes emphasis on sound balance sheet Commitment to targeting long-term leverage ratio of 4.50x or less ~97% available borrowing capacity under the $600 million
Slide 17: Historical Performance
Historical Performance Revenue ($ in millions) ($ in millions) Adjusted EBITDA 1 Capital Expenditures Interest Coverage 2 Source: Company Financials | (1) Adjusted EBITDA is a non-GAAP measure. See Appendix for reconciliation | (2) Defined as Adjusted EBITDA / Interest Expense ($ in millions)
Slide 18: Historical Performance (cont'd)
Historical Performance (cont’d) Adjusted Margin 1 ($ in millions) (in millions) Adjusted Unit Margin per Gallon 2 Total Volume Source: Company Financials | (1) Adjusted Margin is a non-GAAP measure. See Appendix for reconciliation | (2) Adjusted Unit Margin per Gallon is a non-GAAP measure. See Appe
Slide 19: Summary
Summary Despite the temporary weather-related pressure, AmeriGas Propane is well positioned to deliver long-term earnings growth AmeriGas Propane is implementing a transformational shift in strategy and culture Significant investment in customer convenience through process redesign and leveraging te
Slide 20: Q&A
R Q&A
Slide 21: Appendix
R Appendix
Slide 22: UGI Corporation Overview
UGI Corporation Overview 1,2 UGI Corporation is a distributor and marketer of energy products and services including natural gas, propane, butane and electricity 18 Countries 4 Diversified Business Segments Utilities Midstream & Marketing UGI International AmeriGas Propane 2nd largest regulated gas
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Source: Company Financials
Slide 24: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Source: Company Financials
Slide 25: UGI Corporation – FY21 and FY22 Adjusted Diluted Earnings per Share
UGI Corporation 1 – FY21 and FY22 Adjusted Diluted Earnings per Share Source: UGI Corporation Financials | (1) UGI Corporation will not be a guarantor of, or otherwise provide support for, the Notes | (2) Corporate & Other includes certain adjustments made to our reporting segments in arriving at ne