Slide 1: Third Quarter Fiscal 2024 Results
1 Third Quarter Fiscal 2024 Results 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”)”, “UGI International Free Cash Flow” and “UGI Corporation Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”)”, all of which
Slide 4: Q3 FY24 Highlights
Q3 FY24 Highlights ➢ Q3 FY24 GAAP Diluted EPS of ($0.23) compared to ($3.76) in Q3 FY23 $0.06 ➢ Solid Q3 results largely attributable to: Q3 FY24 Adjusted o $38 million reduction in operating and administrative expenses Diluted EPS1 across all segments o $35 million increase in EBIT from UGI Interna
Slide 5: YTD FY24 Highlights
YTD FY24 Highlights YTD FY24 GAAP Diluted EPS1 of $2.52 compared to ($7.78) in YTD FY23 YTD Adjusted Diluted EPS1 ➢ Record YTD earnings from our ➢ Deployed $511 million of capital in $3.22 4 natural gas businesses YTD FY24; $391 million (77%) invested in the natural gas businesses $2.81 4 ➢ 43% incr
Slide 6: Q3 FY24 Financial Results
1 Ab { tat Q3 FY24 Financial Results
Slide 7: Q3 FY24 Results Recap
Q3 FY24 Results Recap Q3 FY24 GAAP Diluted EPS of ($0.23) compared to ($3.76) in Q3 FY23 Q3 FY24 Adjusted Diluted EPS1 – Comparison with Q3 FY23 1 1 7 1. Adjusted diluted EPS is a non-GAAP measure. See Appendix for reconciliation. 7
Slide 8: Q3 FY24 Segment Results Recap – Natural Gas
Q3 FY24 Segment Results Recap – Natural Gas Q3 FY24 EBIT - Comparison with Q3 FY23 ($ in million) Utilities Midstream & Marketing Q3 FY23 Total OPEX D&A Other Q3 FY24 Q3 FY23 Total OPEX D&A Other Q3 FY24 EBIT Margin EBIT EBIT Margin EBIT Key Drivers Key Drivers • Total margin growth primarily due to
Slide 9: Q3 FY24 Segment Results Recap – Global LPG
Q3 FY24 Segment Results Recap – Global LPG Q3 FY24 EBIT - Comparison with Q3 FY23 ($ in million) UGI International AmeriGas Propane Q3 FY23 Total OPEX D&A Other Q3 FY24 Q3 FY23 Total OPEX D&A Other Q3 FY24 EBIT Margin EBIT EBIT Margin EBIT Key Drivers Key Drivers • Retail volume decreased 4% largely
Slide 10: FY24 Outlook
FY24 Outlook Q4 FY24 Assumptions $3.22 • Sustainable cost reduction • European energy marketing wind-down $3.00 • Base volumes at AmeriGas Propane • Lower gain on asset sale at AmeriGas Propane $2.70 • Reduced margin from capacity management due to lower capacity values YTD FY24 FY24 Adjusted Adjust
Slide 11: Balance Sheet Update
Balance Sheet Update ➢ Executed several significant financing activities: Total Debt ($ in Million) o Issued $700 million of 5.00% Convertible Senior Notes due in 2028 at UGI Corporation $7,249 $6,921 o Repurchased $475 million of the 5.50% Senior Notes due May 2025 at AmeriGas Partners and AmeriGas
Slide 12: Attractive and Sustainable Value Creation
1 Attractive and Sustainable Value Creation 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 generation to suppo
Slide 13: Q&A
Q Q & A 13 13
Slide 14: Appendix
Appendix 14 14
Slide 15: Our Businesses
Our Businesses Natural Gas Global LPG Growth Cash Generation 32% YTD FY24 Regulated Utilities Adj. Diluted UGI International 68% EPS • Leading regulated utilities in constructive • Leading market positions regulatory environments • Strategically located supply assets • Strong rate base growth and at
Slide 16: 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 17: 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 18: 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 19: FY24 - 27 Financial Targets
FY24 - 27 Financial Targets 1 4 – 6% $3.7 - $4.1B 9%+ 3.5 – 4.0x EPS Growth Rate Capital Expenditure Rate Base Growth Rate Leverage Ratio2 Executing on our strategy to deliver sustainable shareholder value 1.19 The forward-looking information used on this slide is for illustrative purposes only. Act
Slide 20: Capital Allocation Framework
Capital Allocation Framework Shareholder Return ➢ Maintain commitment to the dividends 1 ➢ Strong dividend payout ratio between 45% - 55% Balance Sheet ➢ Maintain attractive liquidity to navigate market dynamics 2 Improvement ➢ Target net debt to adjusted EBITDA (leverage ratio)1 between 3.5 – 4.0x2
Slide 21: Dividends Per Share
Our Dividend Commitment 10 Year CAGR: 6% Strong history of Dividends Per Share1 ($) $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 22: 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% ~$3.9B2 UGI International 66% AmeriGas Propane ➢ Capital plan funded by cash flow from operations ➢ ~85% of total capital invested in natural
Slide 23: 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 24: Renewables Investment Highlights
Renewables Investment Highlights Renewable Natural Gas Projects Committed to Date1,2 UGI continues to develop a portfolio Production3 Feedstock FY22 FY23 FY24 FY25 of renewables (~Mmcf) through investment New Energy One– Joint Venture (<25%) 250 in committed Cayuga - Spruce Haven 50 projects Cayuga
Slide 25: Strong Strides in Environmental, Social and Governance (ESG)
Strong Strides in Environmental, Social and Governance (“ESG”) Our ESG Ratings AAA rating B rating Prime status Medium-Risk MSCI Carbon Disclosure Project ISS ESG Corporate Rating1 Morningstar Sustainalytics Environmental Commitments and Progress2 Scope 1 Emissions Reduction Commitment Pipeline Repl
Slide 26: Q3 and YTD FY24 Adjusted Diluted Earnings per Share
Q3 and YTD FY24 Adjusted Diluted Earnings per Share Q3 FY24 Q3 FY23 YTD FY24 YTD FY23 Utilities $0.06 $0.05 $1.18 $1.08 Midstream & Marketing 0.10 0.10 1.09 0.76 UGI International 0.19 0.06 0.99 0.69 AmeriGas Propane (0.17) (0.17) 0.08 0.40 Corporate & Other (a) (0.41) (3.80) (0.82) (10.71) Diluted
Slide 27: Q3 and YTD FY24 Adjusted Net Income
Q3 and YTD FY24 Adjusted Net Income ($ in Million) Q3 FY24 Q3 FY23 YTD FY24 YTD FY23 Utilities $13 $10 $254 $234 Midstream & Marketing 22 22 234 165 UGI International 39 13 213 150 AmeriGas Propane (36) (35) 17 87 Corporate & Other (a) (86) (799) (176) (2,269) Net (loss) income attributable to UGI C
Slide 28: UGI International Free Cash Flow (non-GAAP)
UGI International Free Cash Flow (non-GAAP) ($ in Million) YTD FY24 YTD FY23 Net cash provided by operating activities $193 $5 Less: Capital Expenditure (55) (84) UGI International Free Cash Flow $138 ($79) 28 28
Slide 29: Q3 FY24 Segment Reconciliation (GAAP)
Q3 FY24 Segment Reconciliation (GAAP) ($ in Million) Midstream AmeriGas Corp & Total Utilities & Marketing UGI International Propane Other Revenues $1,380 $257 $253 $455 $445 $(30) Cost of sales (639) (89) (167) (244) (217) 78 Total margin $741 $168 $86 $211 $228 $48 1 Operating and administrative e
Slide 30: UGI Corporation Q3 and YTD FY24 Adjusted EBITDA (non-GAAP)
UGI Corporation Q3 and YTD FY24 Adjusted EBITDA (non-GAAP) Year Ended September 30, Nine Months Ended June 30, 2021 2022 2023 LTM Jun'23 LTM Jun'24 2022 2023 2024 Net income (loss) including noncontrolling interests $1,467 $1,073 ($1,502) ($1,391) $673 $831 ($1,633) $542 Income taxes 522 313 (335) (
Slide 31: Notes to ESG Commitments
Notes to ESG Commitments Committed to reducing Scope I emissions by 55% by 2025 using 2020 as the base year 1. Scope 1 emissions reduction target did not include emissions from the Mountaineer acquisition, which closed in September 2021. The target also excluded the Moraine East acquisition and only