Ferrellgas Partners, L.p. · OTC:FGPR
Ferrellgas Partners, L.p — Investor Presentation (March 2021)
31 slides from Ferrellgas Partners, L.p's investor presentation, Mar 15, 2021
Slide 1: Ferrellgas Investor Presentation March 2021
Ferrellgas Investor Presentation March 2021
Slide 2: Disclaimer
Disclaimer Forward Looking Statements Statements included in this presentation include forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. These statements often use words such as “anticipate,” “be
Slide 3: Company Overview
CompanyOverview PG 3
Slide 4: Ferrellgas Company Overview
Ferrellgas Company Overview Company highlights The nation’s second-largest retail marketer and leading distributor of propane and related accessories to residential, industrial, and agricultural customers throughout the U.S. Founded in 1939 – 80th anniversary of operations; a trusted consumer brand
Slide 5: Brands and Products
Brands and Products Strong portfolio of brands in retail, wholesale and portable tank verticals PG 5
Slide 6: Differentiated Logistical Capabilities
Differentiated Logistical Capabilities Strong Logistics Network 1,510 630650 71 876 1,100 473 Leased Owned 220 160 359 579634627 190 70220271 90 141 49 1040 Vast, Strategically-Positioned Real Estate Portfolio Over 2,000 acres of owned real estate Real estate locations are 62% owned and 38% leased N
Slide 7: National Footprint Provides True Competitive Advantage
National Footprint Provides True Competitive Advantage Footprint highlights Asset map second largest retail marketer of propane, with: ✓864 manned retail locations ✓~731,000 retail customers ✓~62,500 tank exchange locations ✓Presence in 50 states, District of Columbia, and Puerto Rico PG 7 Note: Dat
Slide 8: Customer Overview
Customer Overview Customer Acquisition StrategyProfile of Customer Types Type H1 FY 2021 Volumes % H1 FY 2021 Revenue No Commodity Price Exposure Residential 143 35% ✓ Industrial / Commercial 90 22% ✓ Tank Exchange 49 12% ✓ National 56 14% ✓ Transport 22 5% ✓ Agricultural 26 6% ✓ Reseller 21 5% ✓ Do
Slide 9: Overview of Blue Rhino
Overview of Blue Rhino Blue Rhino Overview Blue Rhino Revenue – Select Customers1 Acquired by Ferrellgas in 2004 20-pound tanks used for grilling, patio heaters, and mosquito elimination devices; COVID-19 driving increase year round usage Sold at ~62,500 tank exchange selling locations H1 FY 2021 re
Slide 10: Credit Highlights
Credit Highlights PG 10
Slide 11: Key Credit Highlights
Key Credit Highlights 1 Leading, national footprint with extensive logistics capabilities and geographic diversity 2 Large, fragmented addressable market with growing market share 3 Limited exposure to volatile commodity prices yields stable cash flows 4 Strong, sticky relationship with both supplie
Slide 12: Diverse and Stable Business Mix
Diverse and Stable Business Mix Key characteristics of broad customer base and distribution network Ability to serve customers in all 50 states, District of Columbia, and Puerto Rico Broad geographic distribution reduces exposure to regional weather and economic patterns, increasing stability of cas
Slide 13: Large, Fragmented Addressable Market
Large, Fragmented Addressable Market Propane is an Attractive Clean Fuel with a Growing Market 2018 U.S. Heating Sources by Homes Propane is a basic necessity to many customers for heating and agricultural purposes Heating Oil 4% Other 4% Propane Market Overview It is a clean burning, multi-use ener
Slide 14: Pass-Through Nature of the Business Limits Commodity Price Exposures
Pass-Through Nature of the Business Limits Commodity Price Exposures Fixed prices (Ferrell Secured) ~30% FGP offers the option for clients to buy propane at fixed price Company hedges 100% of the contracted volumes Suppliers ~70% Floating prices FGP sells propane to clients at spot price + margin Bu
Slide 15: Strong Relationships with Large, Stable Supplier Base
Strong Relationships with Large, Stable Supplier Base Top 5 suppliers Credit rating Length of relationship H1 FY 2021 volumes (mm gal) Supplier A Ba1 / BBB->15 years 51.3 Supplier B Baa2 / BBB >15 years 48.1 44 total suppliers provided 203.3 million gallons of propane in H1 FY2021 $53.7mm in total p
Slide 16: Diverse, Blue-Chip Customer Base
Diverse, Blue-Chip Customer Base Customer overviewRelationship summary – FY 2020 Top 5 retail clients by gross margin Length of relationship (years)1 2020 volumes (mm gal) Customer A 20 15.8 Customer B 21 13.9 ~632,000 residential clients ~87,000 industrial / commercial clients ~8,700 agricultural c
Slide 17: Technological Enhancements Provide Clear Competitive Advantage
Technological Enhancements Provide Clear Competitive Advantage Technology highlights Advanced tank monitoring system FGP is implementing a new tank monitoring system that will provide cloud integration between client tanks, FGPs’ offices and field logistics Technology will be able to optimize distri
Slide 18: Significant Acquisition Track Record with Proven Integration Capacities
Significant Acquisition Track Record with Proven Integration Capacities Key Acquisition TenetsM&A Track Record & Capabilities Identification of Strategic Targets Fragmented market with many “mom-and-pop” companies Target areas where Ferrellgas has excess fleet and storage capacity, creating signific
Slide 19: Returning to Strategic Leadership
Returning to Strategic Leadership Jim Ferrell Steve Wambold Jim Ferrell Adj. EBITDA CAGR: ~10.0%Adj. EBITDA CAGR : ~0.2% Adj. EBITDA CAGR: ~8.7% ($mm) $294 $266 $229$230 11.0% 13.7% 17.7% 19.0% 2000200120022003200420052006200720082009201020112012201320142015201620172018201920202Q21 LTM Adj. EBITDAAd
Slide 20: Strategic Initiatives
StrategicInitiatives PG 20
Slide 21: Operational Improvements Drive EBITDA Growth
Operational Improvements Drive EBITDA Growth 1 Delivery efficiency 2 Transport efficiency 3 Price performance Fleet Key Initiatives A goal of 10% reduction in miles driven attributed to the upgrade in routing and logistics excellence will have positive impact on diesel and fleet utilization Technolo
Slide 22: Ongoing Strategic Initiatives Drive Significant EBITDA Expansion
Ongoing Strategic Initiatives Drive Significant EBITDA Expansion 89 7 6 5 4 3 2Ferrellgas is focused on: 1 $265 Logistics best practices Evidenced based management Right sized staffing Management development program Operations education series FY2020 EBITDA Delivery efficiency Tranport efficiency Pr
Slide 23: Detailed Overview of Strategic Initiatives
Detailed Overview of Strategic Initiatives 1 Delivery efficiency ObjectiveCommentary Less early delivery▪ H1 FY 2021 reduction of 304,886 stops Tank monitors▪ Aimed to install 30,000 tank monitors for estimated total cost of $1.9mm, ~30,700 tank monitors installed at cost of $4.1mm Miles efficiency▪
Slide 24: Further Upside Opportunities
Further Upside Opportunities Upside opportunities offer multiple avenues to further accelerate the Company’s growth trajectory beyond the initiatives already underway 1234 Extensive Real Estate Assets Licensing Proprietary Software Blue Rhino Technology Gov’t Incentives on Propane Adoption Company o
Slide 25: Continuous Efforts For ESG
Continuous Efforts For ESG EnvironmentSocialGovernance Propane is an approved clean fuel under the 1990 Clean Air Act and a sustainable energy source in support of the UN’s Sustainable Development Goal 7 Our delivery fleet includes clean-burning autogas vehicles, and Ferrellgas is also a leading pro
Slide 26: Financial Update
FinancialUpdate PG 26
Slide 27: Financial Policy
Financial Policy Near-term focus on reducing leverage to enable long-term sustainable growth Efficiently manage the business and execute on strategic initiatives to decrease cost and increase margins Expected to spend within cash flow for any near-term growth project or acquisitions Active managemen
Slide 28: Performance Through COVID-19
Performance Through COVID-19 Granted “essential product” designation by the federal government to continue business operations and supply propane for cust omer needs, including cooking, heating, pandemic relief efforts and necessary construction – Increased residential demand also driven by national
Slide 29: Consistent Track Record of Delivering Results
Consistent Track Record of Delivering Results Consistent Gross Profit GrowthStrong EBITDA Growth ($ in millions)($ in millions) $829 $809 $266 $294 $746 $769 $229$230 2018201920202Q21 LTM % YoY Retail Gallon Growth 2018201920202Q21 LTM - 1% 15% 11% Robust Free Cash Flow (“FCF”) Generation and Conver
Slide 30: Appendix
Appendix PG 30
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Dollar amounts in ($mm) Adjusted EBITDA$175$294$266$230$242 PG 31 Note: Fiscal year as of July 31
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