Slide 1: Fiscal 2017 Third Quarter Results
Fiscal 2017 Third 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: Third Quarter Recap
Third Quarter Recap John Walsh President & CEO, UGI 3
Slide 4: Q3 Earnings Recap
Q3 Earnings Recap • Results in line with historical third quarter levels despite temperatures that were 12%-23% warmer than normal • Full year adjusted EPS is expected to remain at, or slightly below the low end of our guidance range of $2.30 to $2.45 Adjusted EPS Midstream & AmeriGas International
Slide 5: Q3 Market Recap
Q3 Market Recap • Filed rate case settlement with Pennsylvania Public Utility Commission • If approved, rates would increase by $11.25 million and go into effect in mid-October • Manning liquefaction facility placed into service • AmeriGas completed three acquisitions in Q3, five YTD • National Acco
Slide 6: Third Quarter Financial Review
Third Quarter Financial Review Kirk Oliver Chief Financial Officer, UGI 6
Slide 7: Q3 Adjusted Earnings
Q3 Adjusted Earnings ($ millions, except per share amounts) FY16-Q3 FY17-Q3 Net income (loss) attributable to UGI Corporation (GAAP) $60.7 $ (19.0) Net (gains) losses on commodity derivative instruments1 (29.6) 19.8 Unrealized losses on foreign currency derivative instruments1 - 10.5 Loss on extingu
Slide 8: Adjusted EPS
Q3 Results Recap Weather warmer than the prior year in all business segments; International year-over-year change primarily due to higher LPG costs reducing “parachute” effect Year-over-year change in Adj. EPS $0.231 $0.25 $0.23 $0.00 $(0.11) Legend $0.07 Adjusted EPS AmeriGas $0.04 $(0.02) UGI Util
Slide 9: Financial Results – AmeriGas
Financial Results – AmeriGas Weather versus normal ($ millions) FY16-Q3 FY17-Q3 colder Adjusted EBITDA $64.6 Retail Margin (7.3) Total margin Wholesale and Other Total Margin 1.4 Operating and Administrative Expenses* (2.7) FY16-Q3 FY17-Q3 Other Income and Expense, net 2.4 (7.5)% Adjusted EBITDA $58
Slide 10: Financial Results – UGI International
Financial Results – UGI International ($ millions) FY16-Q3 FY17-Q3 Weather versus Income Before Taxes $27.7 normal Total Margin (42.7) colder Operating and Administrative Expenses 13.8 Depreciation and Amortization (3.7) Interest Expense 0.2 Other Income and Expense, net (0.5) FY16-Q3 FY17-Q3 Loss B
Slide 11: UGI International LPG Costs and Unit Margins
UGI International LPG Costs and Unit Margins Propane costs 22% higher Slight decrease in unit margins YTD but still than prior year 1.50 € above historical levels €0.63 1.25 € UGI France € per Gallon 1.00 € €0.52 0.75 € 0.50 € Q3-16 Q3-17 0.25 € 2012 2013 2014 2015 2016 2017 Q3 YTD Avg. Platt's Cost
Slide 12: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing ($ millions) FY16-Q3 FY17-Q3 Weather versus normal Income Before Taxes $ 10.9 colder Total Margin (8.5) Operating and Administrative Expenses (0.4) Depreciation and Amortization (1.2) Interest Expense 0.1 3.0% FY17-Q3 Other Income and Expenses, net 2.4 FY16-
Slide 13: Financial Results – Utilities
Financial Results – Utilities Gas Utility weather versus ($ millions) FY16-Q3 FY17-Q3 normal Income Before Taxes $20.7 colder Total Margin (1.2) Operating and Administrative Expenses (5.9) Depreciation and Amortization (1.3) 11.9% Interest Expense (1.1) FY17-Q3 FY16-Q3 Other Income and Expense, net
Slide 14: Utilities Total Margin
Utilities Total Margin ($ millions) Weather impact largely offset by rate increase and large firm volume $100 $94.8 $(5.8) $1.3 $(0.9) $4.2 $93.6 $80 Q3 FY16 Core Market UGI Gas Rate Case Large Firm Delivery Other Q3 FY17 Throughput UGI Corporation | Fiscal 2017 Third Quarter Results 14
Slide 15: AmeriGas Third Quarter Recap
AmeriGas Third Quarter Recap Jerry Sheridan President & CEO, AmeriGas
Slide 16: Q3 Earnings Recap
Q3 Earnings Recap • The quarter ended 12% warmer than normal and 5% warmer than last year Adjusted EBITDA ($ in millions) • April was 17% warmer than normal and 11% warmer than April of last year $64.6 $58.4 • Volume down 4% on 5% warmer weather • Average propane costs were 28% higher than Q3 2016 •
Slide 17: Growth Initiatives/Other
Growth Initiatives/Other Cylinder Exchange • Volume up versus prior year • Strong Fourth of July weekend that will contribute to Q4 results National Accounts • Increased volume versus prior year • On pace for record volume and earnings in FY 2017 Acquisitions • Completed 3 acquisitions QTD (5 YTD) L
Slide 18: Conclusion and Q&A
Conclusion and Q&A John Walsh President & CEO, UGI 18
Slide 19: Clear Path to Growth
Clear Path to Growth MIDSTREAM & MARKETING UGI UTILITIES • Sunbury pipeline now in service; fees • Robust investment at our Gas Utility; capital commence in Q4 expenditures to exceed $300 million this year • Steelton LNG storage and vaporization facility under construction; scheduled to be • Will ad
Slide 20: Appendix
APPENDIX 20
Slide 21: 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 22: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS Three Months Ended June 30, 2017 (millions) Total AmeriGas UGI Midstream & UGI Utilities Corporate & Propane International Marketing Other Adjusted net income attributable to UGI Corporation: Net (loss) income attributable to UGI Corporation $ (19.0) $ (1.4) $ (2.0) $
Slide 23: Fiscal Third Quarter Adjusted Net Income
Fiscal Third Quarter Adjusted Net Income Three Months Ended June 30 (millions, except per share amounts) 2017 2016 2015 2014 2013 Adjusted net income attributable to UGI Corporation: Net (loss) income attributable to UGI Corporation $ (19.0) $ 60.7 $ 9.6 $ 20.6 $ 9.1 Net losses on commodity derivati
Slide 24: 2016 Adjusted Net Income
2016 Adjusted Net Income Year Ended September 30, (Million of dollars, except per share amounts) 2016 NON-GAAP RECONCILIATION: Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 364.7 Net (gains) on commodity derivative instruments not associated with c
Slide 25: UGI France Unit Margins
UGI France Unit Margins Year Ended September 30, (thousands) 2012 2013 2014 2015 2016 2017 Q3YTD LPG revenues $ 1,083,666 $ 1,244,753 $ 1,169,610 $ 942,511 $ 1,160,013 $ 937,814 LPG cost of sales (650,305) (774,097) (727,029) (471,511) (418,358) (363,757) Adjustment for Commodity Mark-to-Market loss
Slide 26: 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 27: AmeriGas EBITDA and Adjusted EBITDA
AmeriGas EBITDA and Adjusted EBITDA Three Months Ended June 30, EBITDA and Adjusted EBITDA: (numbers in millions) 2016 2017 Net loss attributable to AmeriGas Partners, L.P. $ (33.1) $ (46.8) Income tax expense 1.0 0.6 Interest expense 40.8 40.6 Depreciation 35.7 35.5 Amortization 10.7 10.7 EBITDA 55
Slide 28: Investor Relations
Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com 28