Slide 1: Second Quarter Fiscal 2024 Results & Business Update
1 Second Quarter Fiscal 2024 Results & Business Update Mario Longhi Interim President and CEO, UGI Corporation Sean O’Brien Chief Financial Officer, UGI Corporation Ro b e r t F. B e a r d Chief Operations Officer, UGI Corporation 1 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 Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements use forward-looking
Slide 3: UGI Supplemental Footnotes
UGI Supplemental Footnotes Management uses “adjusted net income attributable to UGI Corporation”, “adjusted diluted earnings per share (“EPS”)” and “UGI Corporation Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”)”, all of which are non-GAAP financial measures, whe
Slide 4: Agenda
Agenda Q2 FY24 FY24 – 27 Strategic Closing Financial Financial Overview Remarks Results Outlook 4 4
Slide 5: Q2 and YTD FY24 Highlights
Q2 and YTD FY24 Highlights ➢ Q2 FY24 GAAP Diluted EPS of $2.30 compared to $0.51 in Q2 FY23 ➢ Strong Q2 results despite warmer than normal weather across our service $1.97 $3.16 Q2 FY24 Adjusted YTD2 FY24 Adjusted territories, largely due to Diluted EPS1 Diluted EPS1 o 32% earnings growth in the nat
Slide 6: Strategic Review Update
Strategic Review Update ➢ AmeriGas Propane ➢ Portfolio optimization opportunities Scope of the Review ➢ Opportunities to optimize our cost structure ➢ Financing solutions and levers to strengthen the balance sheet and create greater financial flexibility ➢ Completed the strategic review that was ➢ R
Slide 7: Our Businesses
Our Businesses Natural Gas Global LPG Growth Cash Generation 34% YTD FY24 Regulated Utilities Adj. Diluted UGI International 66% EPS • Leading regulated utilities in constructive • Leading market positions regulatory environments • Strategically located supply assets • Strong rate base growth and at
Slide 8: Actions to Drive Long-Term Shareholder Value
Actions to Drive Long-Term Shareholder Value Pursue portfolio optimization and Pursue opportunities to optimize our portfolio and drive reliable growth earnings growth in the base business Stabilize and optimize the domestic Execute on an operational turnaround plan at AmeriGas Propane propane busin
Slide 9: Stabilizing and Optimizing AmeriGas Propane
Stabilizing and Optimizing AmeriGas Propane Key Actions ➢ Adjust the operating model to enhance customer focus, support operational excellence and create efficiencies o Drive operational improvement within our operations and customer service centers to improve service reliability and customer Result
Slide 10: Q2 FY24 Financial Results
Q2 FY24 Financial 10 Results 10
Slide 11: Q2 FY24 Results Recap
Q2 FY24 Results Recap Q2 FY24 GAAP Diluted EPS of $2.30 compared to $0.51 in Q2 FY23 Key Drivers Natural Gas businesses Q2 FY24 Adjusted Diluted EPS1 – Comparison with Q2 FY23 • Higher capacity management and peaking margins • Higher gas and electric base rates • Lower operating expenses $1.97 $1.68
Slide 12: Q2 FY24 Segment Results Recap – Natural Gas
Q2 FY24 Segment Results Recap – Natural Gas Q2 FY24 EBIT - Comparison with Q2 FY23 ($ in million) Utilities Midstream & Marketing Q2 FY23 Total OPEX D&A Other Q2 FY24 Q2 FY23 Total OPEX D&A Other Q2 FY24 EBIT Margin EBIT EBIT Margin EBIT Key Drivers Key Drivers • Total margin growth primarily due to
Slide 13: Q2 FY24 Segment Results Recap – Global LPG
Q2 FY24 Segment Results Recap – Global LPG Q2 FY24 EBIT - Comparison with Q2 FY23 ($ in million) UGI International AmeriGas Propane Q2 FY23 Total OPEX D&A Other Q2 FY24 Q2 FY23 Total OPEX D&A Other Q2 FY24 EBIT Margin EBIT EBIT Margin EBIT Key Drivers Key Drivers • Slight decrease (0.5%) in retail g
Slide 14: Liquidity and Financing Update
Liquidity and Financing Update ➢ $1.7 billion in available liquidity, comprising Available Liquidity ($ in billion) cash and cash equivalents and available borrowing capacity on revolving credit facilities, as of March 31, 2024 $1.9 ➢ In March 2024, repurchased $38 million of $1.8 $1.7 $1.6 issued a
Slide 15: Financial Outlook
Financial 15 Outlook 15
Slide 16: Financial Objectives
Financial Objectives Reliable earnings growth Sustainable Balance sheet strength Value Creation Disciplined capital deployment 16 16
Slide 17: FY24 - 27 Financial Targets
FY24 - 27 Financial Targets 1 UGI Corporation reaffirms its FY24 adjusted diluted EPS guidance range of $2.70 - $3.002 4 – 6% $3.7 - $4.1B 9%+ 3.5 – 4.0x EPS Growth Rate Capital Expenditure Rate Base Growth Rate Leverage Ratio3 Executing on our strategy to deliver sustainable shareholder value 1.17
Slide 18: Driving Sustainable Cost Savings
Driving Sustainable Cost Savings Our Target Current Progress Looking Ahead FY24 Expect to realize On track to achieve targeted cost Identified labor and non-labor ~$70 - $100 million1 in savings based on actions completed to permanent savings by FY25 sources to achieve sustainable cost date savings
Slide 19: Capital Allocation Framework
Capital Allocation Framework Shareholder Return ➢ Maintain commitment to the dividends 1 ➢ Strong dividend payout ratio between 45% - 55% Balance Sheet ➢ Maintain attractive liquidity to navigate market dynamics 2 Improvement ➢ Target net debt to adjusted EBITDA (leverage ratio)1 between 3.5 – 4.0x2
Slide 20: Our Dividend Commitment
Our Dividend Commitment 10 Year CAGR: 6% Strong history of Dividends Per Share1 ($) $1.44 $1.50 $1.50 returning cash to 140 years $1.30 $1.32 $1.38 shareholders in Consecutively Paying $0.87 $0.91 $0.95 $1.00 $1.04 the form of Dividends dividends 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 202
Slide 21: FY24-27 Capital Deployment Plan
FY24-27 Capital Deployment Plan 1 Uses of Cash Growth and Maintenance Capital by Segment ~$1.3B Utilities ~$0.2B 7% ~$0.6B 9% ~$3.3B Midstream & Marketing 18% ~$3.9B UGI International 66% AmeriGas Propane ➢ Capital plan funded by cash flow from operations ➢ ~85% of total capital invested in natural
Slide 22: Repositioned for Attractive and Sustainable Value Creation
Repositioned for Attractive and Sustainable Value Creation 1 4 - 6% 3.5 – 4.0x 9%+ Targeted EPS growth rate Targeted leverage ratio2 Targeted rate base growth (FY24-27) (FY24-27) Preserving the dividends and Attractive free cash flow Continuous efforts to maximize maintaining an attractive payout ge
Slide 23: Q&A
Q Q & A 23 23
Slide 24: Appendix
Appendix 24 24
Slide 25: Our Strategy to Maximize Shareholder Value
Our Strategy to Maximize Shareholder Value Maximize value for our shareholders Sustainably grow earnings through strong execution Capitalize on our market and disciplined capital leading positions and allocation optimize our strategic Operate a high-performing, assets customer-centric and results- d
Slide 26: Shareholder Value Proposition
Shareholder Value Proposition International energy distributor with an attractive business mix and leading position in key markets 75%+ Targeted Earnings from the Natural Gas Businesses1 Building a culture of continuous improvement to drive cost competitiveness and sustainable cost savings Focused o
Slide 27: Q2 and YTD FY24 Adjusted Diluted Earnings per Share
Q2 and YTD FY24 Adjusted Diluted Earnings per Share Q2 FY24 Q2 FY23 YTD FY24 YTD FY23 Utilities $0.72 $0.66 $1.12 $1.04 Midstream & Marketing 0.56 0.31 0.98 0.66 UGI International 0.42 0.43 0.81 0.64 AmeriGas Propane 0.17 0.34 0.25 0.56 Corporate & Other (a) 0.43 (1.23) (0.42) (6.92) Diluted earning
Slide 28: Q2 and YTD FY24 Adjusted Net Income
Q2 and YTD FY24 Adjusted Net Income ($ in Million) Q2 FY24 Q2 FY23 YTD FY24 YTD FY23 Utilities $155 $143 $241 $224 Midstream & Marketing 120 66 212 143 UGI International 91 92 174 137 AmeriGas Propane 37 73 53 122 Corporate & Other (a) 93 (264) (90) (1,470) Net income (loss) attributable to UGI Corp
Slide 29: Q2 FY24 Segment Reconciliation (GAAP)
Q2 FY24 Segment Reconciliation (GAAP) ($ in Million) Total Utilities Midstream & UGI AmeriGas Corp & Marketing International Propane Other Revenues $2,467 $646 $483 $673 $795 ($130) Cost of sales (1,030) (274) (283) (368) (362) 257 Total margin 1,437 3721 200 305 433 127 1 Operating and administrati
Slide 30: UGI Corporation Q2 FY24 Adjusted EBITDA (non-GAAP)
UGI Corporation Q2 FY24 Adjusted EBITDA (non-GAAP) Year Ended September 30, LTM LTM 6 Months Ended March 31, 2021 2022 2023 Mar'23 Mar'24 2022 2023 2024 Net income (loss) including noncontrolling interests $1,467 $1,073 ($1,502) ($609) ($68) $838 ($844) $590 Income taxes 522 313 (335) (288) 139 286