Slide 1: Fiscal 2022 Results & Business Update
1 Fiscal 2022 Results & Business Update Ro ge r Pe r re a u l t President and CEO, UGI Corporation Te d J . J a s t r ze bs k i Chief Financial Officer, UGI Corporation Ro b e r t F. B e a rd Executive Vice President, Natural Gas, Global Engineering & Construction and Procurement 1
Slide 2: About This Presentation
2 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-lookin
Slide 3: UGI Supplemental Footnotes
3 UGI Supplemental Footnotes • Management uses UGI Corporation adjusted earnings per share and UGI Corporation Adjusted Earnings before interest, taxes, depreciation, and amortization (“EBITDA”), which are non-GAAP financial measures, when evaluating UGI’s overall performance. Management believes th
Slide 4: Agenda
4 1 Introduction Agenda 2 FY22 Financial Review 3 FY23 Strategic Priorities 4 FY23 – 26 Financial Outlook
Slide 5: Introduction
5 1 Introduction
Slide 6: FY22 Financial Overview
6 FY22 Financial Overview 6 • FY22 GAAP diluted EPS of $4.97 vs. $6.92 in FY21 • Record Reportable Segments EBIT demonstrating the strategic advantages of our business portfolio Record performance at the Utilities led by higher rates from the Distribution System Improvement Charge (DSIC) and recor
Slide 7: FY22 Key Accomplishments
7 FY22 Key Accomplishments • Deployed record $562 million of capital at the Utilities ~155 miles of pipeline replaced • Added 14,000+ customers at the Utilities • Received PA PUC approval of our gas rate case $38 million increase effective on October 29, 2022, and another increase of $11.45 mill
Slide 8: FY22 Financial Review
8 2 FY22 Financial Review
Slide 9: FY22 Adjusted Diluted Earnings per Share
9 FY22 Adjusted Diluted Earnings per Share FY22 FY21 AmeriGas Propane $0.52 $0.79 UGI International 0.81 1.04 Midstream & Marketing 0.76 0.51 Utilities 0.95 0.68 Corporate & Other (a) 1.93 3.90 Earnings per share – diluted 4.97 6.92 Net gains on commodity derivative instruments not associated with c
Slide 10: FY22 Results Recap
10 0.79 0.52 1.04 0.81 0.51 0.76 0.68 0.95 FY21 FY22 FY22 Results Recap Utilities4 Midstream & Marketing UGI International AmeriGas FY22 Adjusted Diluted EPS1 – Segment Split 1. Adjusted Diluted EPS is a non-GAAP measure. See Slide 9 for reconciliation. 2. Includes $(0.06) Corporate & Other. 3. Incl
Slide 11: Financial Results – AmeriGas Propane
11 Financial Results – AmeriGas Propane (Dollars in Millions) FY21 FY22 Earnings Before Interest Expense & Income Taxes $385 Total Margin (67) Operating and Administrative Expenses (20) Depreciation and Amortization (4) Other Income and Expense, net 13 Earnings Before Interest Expense & Income Taxes
Slide 12: Financial Results – UGI International
12 Item Primary Drivers Total Volume ↑ Total LPG retail gallons increased 1%, largely attributable to the recovery of certain bulk and autogas volumes that were negatively impacted by COVID-19 in FY21 and favorable crop drying campaigns Total Margin ↓ Primarily reflects translation effects of weaker
Slide 13: Financial Results – Midstream & Marketing
13 Item Primary Drivers Total Margin ↑ Reflecting increased margins from natural gas marketing activities ($38 million), including capacity management ($16 million) and peaking, incremental margin from UGI Moraine East ($15 million), renewable energy marketing activities ($9 million), and retail pow
Slide 14: Financial Results – Utilities
14 Item Primary Drivers Volume ↑ Core market and total natural gas system volumes increased (23 bcf and 52 bcf, respectively) during FY22 largely related to incremental volumes attributable to Mountaineer Total Margin ↑ Primarily attributable to the incremental margin from Mountaineer ($123 million)
Slide 15: Available Liquidity
15 $0.5 $0.4 $1.5 $1.7 $1.3 $1.5 $2.2 $1.7 2020 2021 2022 Available Liquidity ($ in Billion) Cash Collateral received Base Liquidity Liquidity Update • Strong balance sheet position: • $1.7 Billion in available liquidity1 as of September 30, 2022, inclusive of $398 million of cash collateral receive
Slide 16: FY22 Summary
16 FY22 Summary Delivered on our long-term financial targets Solid underlying base business Attractive dividend track record Financial flexibility enabling growth investments • 8.8% EPS CAGR (2012 - 22) • 7.2% Dividend CAGR (2012 - 22) • Record reportable segments EBIT • Record performance in our na
Slide 17: FY23 Strategic Priorities
17 3 FY23 Strategic Priorities
Slide 18: A Differentiated and Resilient Portfolio
18 A Differentiated and Resilient Portfolio Well-positioned to optimize shareholder value despite macro-economic challenges which have led to higher commodity prices, the European energy crisis, inflation, labor constraints and supply chain challenges. Essential solutions that meet consumers’ basic
Slide 19: FY23 Strategic Priorities
19 FY23 Strategic Priorities Execute on the strategic review of the European energy marketing business Ignite market share and EPS growth at AmeriGas Drive reliable earnings growth at Utilities through capital spend and weather normalization Expand our renewables portfolio Continue our support funct
Slide 20: European Energy Marketing Strategic Review Update
20 European Energy Marketing Strategic Review Update Current Business Overview Strategic Review Update Financial Outlook3 • Natural gas and electricity marketing across France, Belgium, and the Netherlands • UK: Operations divested as of October 21, 2022 • France: Intended sale of the business with
Slide 21: Leveraging our Operating Model to Drive Market Share and EPS Growth at AmeriGas
21 Leveraging our Operating Model to Drive Market Share and EPS Growth at AmeriGas Process Efficiencies • Standardized critical business processes • Centralized key functions, including one customer service center Selling Efficiency & Enhanced Customer Experience • Digital customer self-service
Slide 22: Capital Investment Drives Rate Base Growth at the Utilities businesses
22 -50 50 150 250 350 450 550 650 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 B 2 0 2 4 -2 0 2 6 P $ M ill io n s UGI Utilities, Inc. Mountaineer Gas Company 0 1 2 3 4 5 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 F 2 0 2 4 P 2 0 2 5 P 2 0 2 6 P $ B ill io n s UGI Utilities,
Slide 23: Renewables: Our Growth Engine for the Future
23 Renewables: Our Growth Engine for the Future • Investments in renewable energy solutions • Leverage existing infrastructure and our core competencies • Achieve carbon emission reduction goals • Participate in evolving regulatory landscape • RNG projects in service • Cayuga project at Spruce Haven
Slide 24: ESG Priorities
24 ESG Priorities Strengthening environmental disclosures with Task Force on Climate-Related Financial Disclosures (TCFD) Completed our Carbon Disclosure Project (CDP) questionnaire in 2021 and 2022 Continue to deliver on commitments to our people Continued focus on identification of, and disclosure
Slide 25: FY23 – Financial Outlook
25 4 FY23 – 26 Financial Outlook
Slide 26: FY23 Adjusted Diluted EPS Guidance – Comparison with FY22
26 $(0.07) $(0.09) $2.90 $(0.06) $0.10 $0.12 $0.10 FY22 Adjusted Diluted EPS Capacity Management UGI International one-time items European Energy Marketing PA Gas Rate Increase Interest Expense Other Growth Drivers FY23 Adjusted Diluted EPS Guidance FY23 Guidance FY23 Adjusted Diluted EPS Guidance –
Slide 27: FY23 – Financial Outlook: 4-Year Adjusted Diluted EPS Growth Plan
27 FY22 FY23E FY26E FY23 – 26 Financial Outlook 4-Year Adjusted Diluted EPS1 Growth Plan New base rates in our regulated utilities Record capital spend at the Utilities ~8% EPS CAGR (FY22 – 26) at AmeriGas Divestiture of the French energy marketing business in the first quarter of FY23 Win
Slide 28: FY23 – 26 Capital Allocation Plan: Sources of Cash
28 Prioritize based on our 3R strategy, unlevered Internal Rate of Return and Return on Invested Capital 6% – 10% EPS growth target 4% dividend growth target FY23 – 26 Capital Allocation Plan1 Sources of Cash 1. The forward looking information used on this slide is for illustrative purposes on
Slide 29: FY23 – 26 Capital Allocation Plan: Uses of Cash
29 Regulated Business ~43% Renewables ~24% Midstream ~9% Global LPG ~24% $4.8 - 5.2B Cash Returned to Shareholders2 ~$1.3B Maintenance Capex ~$0.9B Regulatory Capital ~$1.6B Growth Capex & M&A ~3.4B FY23 – 26 Capital Allocation Plan1 1. The forward looking information used on this slide is for illus
Slide 30: Financial Stability
30 Financial Stability1 4.7x 4.2x 4.2x 4.2x 3.7x FY19 FY20 FY21 FY22 FY26E Leverage2 Debt Maturities ($ Million) 1. The information on this slide is as September 30, 2022. The forward looking information used on this slide is for illustrative purposes only. Actual amounts may differ substantially fr
Slide 31: A Diversified Energy Provider
31 A Diversified Energy Provider Reliable Earnings Growth Renewables Rebalance 140 years 18 countries ~10,000 employees1 4 diversified businesses 2.5 million+ customers1 ONE 1. As of September 30, 2022. Long track record of solid EPS and dividend growth driven by disciplined investments Leading mark
Slide 32: Q & A
32 Q & A Q
Slide 33: Appendix
33 Appendix
Slide 34: FY22 Adjusted Diluted Earnings by Segment
34 FY22 Adjusted Diluted Earnings by Segment2 Global LPG 44% Natural Gas 56% AmeriGas 17% UGI International 27% Midstream & Marketing 25% Utilities 31% Business Overview Our Long Term Commitments Natural Gas Global LPG • 2nd largest regulated gas utility in Pennsylvania1 • Largest regulated gas util
Slide 35: FY22 Adjusted Net Income
35 FY22 Adjusted Net Income (Dollars in Millions) FY22 FY21 AmeriGas Propane $112 $168 UGI International 175 221 Midstream & Marketing 163 107 Utilities 206 144 Corporate & Other (a) 417 827 Net income attributable to UGI Corporation 1,073 1,467 Net gains on commodity derivative instruments not asso
Slide 36: Our Natural Gas Business
36 Our Natural Gas Business1 • $3.4 billion rate base • Strong capital investment runway with a focus on safety, reliability and growth • Authorized gas ROEs of 10.15% (DSIC) and 9.75% (IREP) at UGI Utilities, Inc. and Mountaineer Gas Company, respectively • 99%+ of UGI Utilities, Inc. natural gas s
Slide 37: Our Global LPG Business
37 Our Global LPG Business1 Key Highlights 1. As of September 30, 2022. • Robust transportation and logistics infrastructure provides flexibility and supply reliability • #1 propane distributor in the US; servicing all 50 states • A leading provider in multiple territories of the 17 countries served
Slide 38: ESG Update
38 ESG Update UGI ESG Rating History - MSCI UGI is positioned among top 18% of our peers Key ESG Focus Areas “With its excellent awareness of potential future disruptions, we believe UGI is well positioned to capitalize on the energy transition compared with industry peers.” - S&P Global Ratings Con
Slide 39: Environmental, Social and Safety Commitments and Progress
39 • Plan to issue a TCFD- aligned report Transparency, Action and Progress Scope 1 Emissions Reduction Commitment 55% Reduction by 20252 2020 2025 Target Date Target Date Methane Emissions Reduction Commitment 92% Reduction by 2030 95% Reduction by 2040 1999 2040 Renewable Investment Invest $1-1.25
Slide 40: Socially Responsible Business Built on Strong Governance
40 Socially Responsible Business Built on Strong Governance SAFETY RESPECT INTEGRITY 45% Board Diversity2 5 years Average Board Tenure1 Collaborations with Big Brothers Big Sisters and United Way 82% Independent Directors3 Independent Chairman Supplier Diversity RESPONSIBILITY EXCELLENCE RELIABILITY
Slide 41: Non-GAAP reconciliation: UGI Corporation Adjusted EBITDA and Leverage
41 Non-GAAP reconciliation: UGI Corporation Adjusted EBITDA and Leverage ($ in millions) Year Ended September 30, 2019 2020 2021 2022 Net income including noncontrolling interests $308 $532 $1,467 $1,073 Income taxes 93 135 522 313 Interest expense 258 322 310 329 Depreciation and amortization 448 4
Slide 42: FY22 Results by Segment Reconciliation
42 Total AmeriGas Propane UGI International Midstream & Marketing Uti l i ties Corp & Other Revenues $10,106 $2,943 $3,686 $2,326 $1,620 ($469) Cost of sales (5,973) (1,613) (2,751) (1,876) (798) 1,065 Total margin 4,133 1,330 935 450 822 596 Operating and administrative expenses (2,028) (889) (611)
Slide 43: Notes to ESG Commitments
43 Notes to ESG Commitments 35% Reduction in Total Recordable Injuries by 2025 1. Scope 1 emissions reduction target does not include emissions from the Mountaineer acquisition closed in 2021. The emissions from the Pine Run acquisition, announced in February 2021, was included in the baseline 2020
Slide 44: Investor Relations
44 Investor Relations: Tameka Morris 610-456-6297 morrista@ugicorp.com Arnab Mukherjee 610-768-7498 mukherjeea@ugicorp.com