Ugi Corporation · NYSE:UGI
Ugi — Q1 FY2021 Earnings Presentation
24 slides from Ugi's earnings presentation, Feb 4, 2021
Slide 1: Fiscal 2021 First Quarter Results
1 1 Fiscal 2021 First Quarter Results J o h n L . Wa l s h President & CEO, UGI Corporation Te d J . J a s t r z e b s k i Chief Financial Officer, UGI Corporation R o b e r t F. B e a r d Executive Vice President Natural Gas, UGI Corporation R o g e r P e r r e a u l t Executive Vice President Glob
Slide 2: About This Presentation
2 2 About This Presentation This press release contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended). Management believes that these are reasonable as of today’s date only. Actual results may
Slide 3: First Quarter Recap
3 3 First Quarter Recap John L. Walsh President & CEO, UGI
Slide 4: First Quarter Earnings Recap
4 4 AmeriGas UGI International Midstream & Marketing Gas Utility Q1 2021 Weather Versus: Prior Year First Quarter Earnings Recap 4 • GAAP EPS of $1.44 and Adjusted EPS1 of $1.18 in Q1 FY21 • Benefits of both geographic and operational diversification • Stronger performance at UGI International large
Slide 5: Key Accomplishments
5 5 • Entered into a definitive agreement to purchase Mountaineer Gas Company • Growth drivers continue to deliver for AmeriGas as National Accounts and Cylinder Exchange total margins increased compared to the prior-year period • Utilities added approximately 3,900 new residential heating and comme
Slide 6: First Quarter Financial Review
6 6 First Quarter Financial Review Ted J. Jastrzebski Chief Financial Officer, UGI
Slide 7: First Quarter Adjusted Diluted Earnings per Share
7 7 First Quarter Adjusted Diluted Earnings per Share Q1 FY21 Q1 FY20 AmeriGas Propane $0.35 $0.43 UGI International 0.44 0.34 Midstream & Marketing 0.17 0.17 UGI Utilities 0.23 0.29 Corporate & Other (a) 0.25 (0.23) Earnings per share – diluted 1.44 1.00 Net (gains) losses on commodity derivative i
Slide 8: Liquidity Update
8 8 Liquidity Update • Cash flows remain strong - Cash from Operating Activities grew by 28% in Q1 FY21 compared to the prior-year period • Strong balance sheet position - total available liquidity as of 12/31/20: $1.5 billion • Well within debt covenant levels • Strong policy of managing debt at th
Slide 9: First Quarter Results Recap: Adjusted EPS Segment Split
9 9 $1.18 $1.17 $(0.08) $0.10 $0.00 $(0.06) $0.05 Q1 FY20 AmeriGas UGI International Midstream & Marketing UGI Utilities Corporate & Other Q1 FY21 First Quarter Results Recap UGI Utilities Midstream & Marketing UGI International AmeriGas Adjusted EPS1 – Segment Split 1. Adjusted EPS is a non-GAAP me
Slide 10: Financial Results - AmeriGas
10 10 Financial Results - AmeriGas (Millions of dollars) Q1 FY20 Q1 FY21 Earnings Before Interest Expense & Income Taxes $165 Total Margin (47) Operating and Administrative Expenses 19 Depreciation and Amortization 1 Other Income and Expense, net 3 Earnings Before Interest Expense & Income Taxes $14
Slide 11: Financial Results - UGI International
11 11 Item Primary Drivers Volume ↓ Termination of a high-volume low-margin autogas contract in Italy during Fiscal 2020, partially offset by higher crop drying and heating-related bulk volume Total Margin ↑ Higher average LPG unit margins, increase in bulk volumes, the translation effects of the st
Slide 12: Financial Results - Midstream & Marketing
12 12 Item Primary Drivers Total Margin ↓ Loss of margins on HVAC and Conemaugh divested in FY20 and lower peaking margin, partially offset by higher capacity management margin Operating and Admin Expenses ↓ Lower expenses largely attributable to the divested assets partially offset by increases rel
Slide 13: Financial Results - Utilities
13 13 Item Primary Drivers Core Market Volume ↓ Warmer weather and volume reductions attributable to COVID-19, partially offset by customer growth Total Margin ↓ Primarily due to lower total margin from Gas Utility core market customers Operating and Admin Expenses ↑ Increases in employee compensati
Slide 14: Natural Gas Business
14 14 Natural Gas Business Robert F. Beard Executive Vice President Natural Gas, UGI
Slide 15: Natural Gas Business Update
15 15 Natural Gas Business Update • Pending acquisition of Mountaineer, the largest natural gas distribution company in West Virginia (“WV”) for an enterprise value of $540M, which includes assumption of ~$140M of debt • Mountaineer serves ~215,000 customers across 50 of WV’s 55 counties • Joint pet
Slide 16: Global LPG Business
16 16 Global LPG Business Roger Perreault Executive Vice President Global LPG, UGI
Slide 17: Global LPG Business Update
17 17 Global LPG Business Update • LPG Business Transformation Initiatives remain on track • AmeriGas: Investments of $200M expected to provide annual benefits of $140M+ by the end of FY22 • UGI International: Investments of €55M to deliver €30M+ of annual benefits by the end of FY22 • Centralized c
Slide 18: ESG, Conclusion and Q&A
18 18 ESG, Conclusion and Q&A John L. Walsh President & CEO, UGI
Slide 19: ESG Update
19 19 ESG Update • Reinforcing commitments to Belonging, Inclusion, Diversity & Equity (BIDE) • Launching new and strengthening existing partnerships • Continued to support programs promoting BIDE and STEM advancement through a gift of $300,000 to Penn State Harrisburg • UGI Utilities executed a RNG
Slide 20: UGI Corporation
CORPORATION ‘
Slide 21: Appendix
21 21 Appendix
Slide 22: UGI Supplemental Footnotes
22 22 UGI Supplemental Footnotes • Management uses “adjusted net income attributable to UGI Corporation” and “adjusted diluted earnings per share,” both of which are non-GAAP financial measures, when evaluating UGI’s overall performance. Management believes that these non-GAAP measures provide meani
Slide 23: UGI Adjusted Net Income
23 23 UGI Adjusted Net Income (Dollars in millions) Q1 FY21 Q1 FY20 AmeriGas Propane $74 $91 UGI International 92 73 Midstream & Marketing 35 36 UGI Utilities 49 61 Corporate & Other (a) 53 (49) Net income attributable to UGI Corporation 303 212 Net (gains) losses on commodity derivative instruments
Slide 24: Investor Relations
24 24 Investor Relations: Tameka Morris 610-456-6297 morrista@ugicorp.com Arnab Mukherjee 610-768-7498 mukherjeea@ugicorp.com