Slide 1: Third Quarter Fiscal 2023 Results
1 1 Third Quarter Fiscal 2023 Results Ro ge r Pe r re a u l t President and CEO, UGI Corporation S e a n P. O ’ B r i e n Chief Financial Officer, UGI Corporation Ro b e r t F. B e a rd Chief Operations Officer, UGI Corporation 1
Slide 2: About This Presentation
2 2 About This Presentation This presentation contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements use forward-look
Slide 3: UGI Supplemental Footnotes
3 3 UGI Supplemental Footnotes Management uses “adjusted net income attributable to UGI Corporation” and “adjusted diluted earnings per share (“EPS”)”, both of which are non-GAAP financial measures, when evaluating UGI's overall performance. Management believes that these non-GAAP measures provide m
Slide 4: YTD FY23 Highlights and Segment Mix
4 4 AmeriGas Propane 14% UGI International 23% Midstream & Marketing 26% Utilities 37% YTD FY23 4 1. YTD FY22 and YTD FY23 signify 9 months ended June 30, 2022, and June 30, 2023, respectively. 2. Adjusted diluted EPS is a non-GAAP measure. See Slide 17 for reconciliation. 3. EBIT is defined as Earn
Slide 5: Other Recent Highlights
5 5 Other Recent Highlights Executing on our strategy and optimizing our core businesses to maximize shareholder value • Disciplined capital investments to drive organic growth in natural gas o Deployed ~$400 million of capital, YTD FY23, in our regulated utilities businesses o ~11,000 customers add
Slide 6: Q3 FY23 and YTD FY23 Results Recap
6 6 $0.63 $0.40 $0.75 $0.69 $0.61 $0.76 $1.00 $1.08 YTD FY22 YTD FY23 Q3 FY23 and YTD FY23 Results Recap YTD Adjusted Diluted EPS1 – Segment Results 1. Adjusted diluted EPS is a non-GAAP measure. See Slide 17 for reconciliation. 2. Includes $(0.09) Corporate & Other. 3. Includes $(0.12) Corporate &
Slide 7: Q3 FY23 vs Q3 FY22 Key Drivers by Segment
7 7 UGI International • Lower total margins from the energy marketing business substantially offset by higher margins from the LPG business • Higher OPEX related to inflationary increases, higher uncollectible accounts expenses and currency translation • Other income includes the release of cylinder
Slide 8: Liquidity Update
8 8 $0.7 $0.4 $0.3 $0.3 $0.3 $1.4 $1.3 $0.9 $1.6 1.5 $2.1 $1.7 $1.2 $1.9 $1.8 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Cash and cash equivalents Available Credit Facilities Liquidity Update • $1.8B in available liquidity1 as of June 30, 2023 • On May 31, 2023, AmeriGas Partners issued 9.375% senior unsecu
Slide 9: Cost Reduction and Optimization Actions
9 9 Cost Reduction and Optimization Actions Rationalize and optimize our cost profile Identify opportunities for operational and process simplification and increased efficiency Leverage technological improvements, digital innovation and analytics to improve processes and customer experience Streamli
Slide 10: Financial Objectives
9 Financial Objectives 1. Defined as Adjusted EBITDA less Capital Expenditure. 2. Our 3-R strategy is to deliver reliable earnings growth, invest in renewables and re-balance our portfolio. See 10-K for the fiscal year 2022 for more details. 3. Total debt over Adjusted EBITDA. Adjusted EBITDA is a n
Slide 11: Q & A
11 11 Q & A Q
Slide 12: Appendix
12 12 Appendix
Slide 13: Financial Results – AmeriGas Propane
13 13 Financial Results – AmeriGas Propane (Millions of dollars) Q3 FY22 Q3 FY23 Earnings Before Interest Expense & Income Taxes ($10) Total Margin1 36 Operating and Administrative Expenses (32) Depreciation and Amortization 1 Other Income and Expense, net (3) Earnings Before Interest Expense & Inco
Slide 14: Financial Results – UGI International
14 14 Warmer (9.1%) Q3 FY22 (Millions of dollars) Q3 FY22 Q3 FY23 Earnings Before Interest Expense & Income Taxes $26 Total Margin1 (1) Operating and Administrative Expenses (14) Depreciation and Amortization (1) Other Income and Expense, net 12 Earnings Before Interest Expense & Income Taxes $22 To
Slide 15: Financial Results – Midstream & Marketing
15 15 Financial Results – Midstream & Marketing Weather versus normal 3.0% warmer than prior year Warmer (5.2%) Q3 FY22 Q3 FY23 (7.0%) (Millions of dollars) Q3 FY22 Q3 FY23 Earnings Before Interest Expense & Income Taxes $44 Total Margin1 (2) Operating and Administrative Expenses (2) Depreciation an
Slide 16: Financial Results – Utilities
16 16 Volume ↓ Core market volumes decreased due to warmer weather, partially offset by growth in core market customers Total Margin ↑ Primarily due to the increase in PA Gas Utility base rates, benefits from the Distribution System Improvement Charge (DSIC) and Infrastructure Replacement and Expans
Slide 17: Q3 and YTD FY23 Adjusted Diluted EPS
17 17 Q3 and YTD FY23 Adjusted Diluted EPS Q3 FY23 Q3 FY22 YTD FY23 YTD FY22 AmeriGas Propane ($0.17) ($0.17) $0.40 $0.63 UGI International 0.06 0.07 0.69 0.75 Midstream & Marketing 0.10 0.11 0.76 0.61 Utilities 0.05 0.08 1.08 1.00 Corporate & Other (a) (3.80) (0.12) (10.71) 0.85 Diluted (loss) earn
Slide 18: Q3 and YTD FY23 Adjusted Net Income
18 18 Q3 and YTD FY23 Adjusted Net Income ($ in Million) Q3 FY23 Q3 FY22 YTD FY23 YTD FY22 AmeriGas Propane ($35) ($37) $87 $135 UGI International 13 15 150 161 Midstream & Marketing 22 23 165 132 Utilities 10 19 234 216 Corporate & Other (a) (799) (27) (2,269) 185 Net (loss) income attributable to
Slide 19: Q3 FY23 Segment Reconciliation (GAAP)
19 19 Q3 FY23 Segment Reconciliation (GAAP) ($ in Million) 1. For US GAAP purposes, certain revenue-related taxes within our Utilities segment are included in “Operating and administrative expenses” above. Such costs reduce margin for Management’s Results of Operations reported in our periodic filin
Slide 20: Investor Relations Contacts
20 20 Investor Relations: Tameka Morris 610-456-6297 morrista@ugicorp.com Arnab Mukherjee 610-768-7498 mukherjeea@ugicorp.com