Slide 1: Investor Presentation August 2012
Investor Presentation August 2012 August 2012
Slide 2: About This Presentation
About This Presentation This presentation contains forward-looking statements which management believes to be reasonable as of today’s date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management’s control
Slide 3: Investment Highlights
Investment Highlights UGI Corporation is a balanced growth and income investment. Diversified, balanced portfolio of businesses creates multiple revenue streams, synergies, and a natural risk hedge Proven strategy for achieving explicit financial goals through operational excellence, sound inves
Slide 4: About UGI Corporation
About UGI Corporation UGI Corporation is a distributor and marketer of energy products and services. NYSE: UGI Headquarters: Valley Forge, PA Market Cap: $3.4B (as of Aug 9) FY11 Revenue: $6,091 million FY11 Net Income: $232.9 million AmeriGas also operates in Dividend Yield: 3.6% (as of
Slide 5: Common Attributes
Related and Complementary Businesses UGI Corporation as a whole is greater than the sum of its parts. Similar End Uses (heating, cooking, Similar Margin / commercial customer applications) pricing mix management (Residential and commercial) Common approach to Common Large number of hedging / risk sm
Slide 6: Diversified Growth Opportunities
Diversified Growth Opportunities UGI has a variety of initiatives in place to drive growth in all its businesses. 15 Bcf gas Heritage storage Gas gathering Propane / pipelines acquisition Cylinder exchange and Natural gas national peaking accounts Natural gas Energy marketing marketing Organic Incor
Slide 7: A Balanced Growth and Income Investment
A Balanced Growth and Income Investment UGI Corporation has an established record of dividend and earnings growth. Adjusted EPS1 Growth Dividend Growth $2,40 $1,10 $2,20 $1,00 $2,00 $1,80 $0,90 $1,60 $0,80 $1,40 $1,20 $0,70 $1,00 $0,60 $0,80 $0,50 $0,60 $0,40 $0,40 2002 2003 2004 2005 2006 2007 2008
Slide 8: Diversified Cash Flow and Earnings
Diversified Cash Flow and Earnings1 Cash Generation Earnings Generation $220MM to $275MM Domestic Domestic Propane Propane Utilities Utilities 20% 26% 29% 31% 15% 23% International International Propane 30% Propane 26% Midstream & Midstream & Marketing Marketing Cash available for growth after UGI d
Slide 9: Business Units
Business Units Domestic Propane International Propane Midstream & Marketing UGI Utilities August 2012
Slide 10: Domestic Propane
Domestic Propane KEY STATS FINANCIAL OBJECTIVES AmeriGas Partners, L.P. (NYSE: APU) 3% annual EBITDA increase #1 propane distributor in U.S. 5% annual distributions increase 2 million customers Growth opportunities: Leading provider in a highly fragmented AmeriGas cylinder exchange m
Slide 11: Domestic Propane: Heritage Acquisition Update
Domestic Propane: Heritage Acquisition Update Targeting a minimum of $50 million total synergies by fiscal 20131 Creates a stronger, more diversified, propane company Extends AmeriGas’s geographic coverage Tangible benefits to shareholders: AmeriGas increased its distribution by 5% at its
Slide 12: International Propane
International Propane KEY STATS FINANCIAL OBJECTIVES Over 700 million gallons balanced Cash generation from mature Western across cylinder, bulk, autogas, and European markets wholesale segments Earnings growth from developing Serving France, Scandinavia, Austria, Central European markets UK
Slide 13: UGI Utilities
UGI Utilities KEY STATS FINANCIAL OBJECTIVES Largest gas utility in PA; nearly 600,000 Growth of core customer base customers and 173 Bcf gas throughput Manage expenses consistent with a Small electric utility with 60,000 distribution company customers, integrated with gas utility Periodic
Slide 14: UGI Utilities: Customer Conversions
UGI Utilities: Customer Conversions Heating Sources in 4.9M PA Homes1 Gas Conversions/Upgrades Other² 4,6% Gas Utility grows core heating Electricity 19,5% customer base by 1% to 2% annually Fuel Utility gas Average over 10,000 new Oil/Kerosene 53,0% 19,4% heating customers each year Utility c
Slide 15: Midstream & Marketing
Midstream & Marketing KEY STATS OBJECTIVES Marketing: Optimizing returns using a broad base Gas: 125 Bcf, 30,000+ locations of assets in our Mid-Atlantic footprint Power: 2MM MWhr/8,000 locations Link Marcellus producers to Midstream assets: attractive gas markets Auburn I gathering sy
Slide 16: Auburn Pipeline Projects
Auburn Pipeline Projects Auburn I (orange) 9 mile pipeline to deliver Marcellus gas north to Tennessee Interstate Pipeline Announced: September 2010 Came online at full capacity in Feb, 2012 Investment: approximately $16 million Volumes transported: 120,000 Dth/d Auburn II (red) 30 mile
Slide 17: Commonwealth Pipeline
Commonwealth Pipeline Joint Development Agreement with affiliates of Inergy and WGL 200-mile FERC-regulated interstate pipeline Connect markets in Philadelphia, Baltimore, and Washington, D.C. metro areas to Marcellus shale gas Will cross and interconnect with several interstate pipelines, r
Slide 18: Diversified Growth Opportunities
Diversified Growth Opportunities Earnings contribution Integration period Capital investment 2012 2013 2014 2015 2016 Propane Intl Shell LPG Acquisitions Propane Dom Heritage acquisition 15 Bcf gas storage LNG Expansion Midstream & Marketing Auburn I pipeline Auburn II pipeline Commonwealth pipeline
Slide 19: Focus on Risk Management
Focus on Risk Management Ability to Invest Wisely Investments consistent with our vision Active business development teams in each business unit Investment parameters set in advance to exceed WACC Commodity Prices Hedge all known commodity price commitments Hedge currency risk of propane c
Slide 20: Investment Highlights
Investment Highlights UGI Corporation is a balanced growth and income investment. Diversified, balanced portfolio of businesses creates multiple revenue streams, synergies, and a natural risk hedge Proven strategy for achieving explicit financial goals through operational excellence, sound inves
Slide 21: Contact
Contact P.O. Box 858 Valley Forge, PA 19482 Tel: 610-337-1000 www.ugicorp.com Treasurer Hugh Gallagher (x1029) gallagherh@ugicorp.com Investor Relations Simon Bowman (x3645) bowmans@ugicorp.com Finance Assistant Shelly Oates (x3202) oatess@ugicorp.com August 2012
Slide 22: Supplemental Data
Supplemental Data August 2012
Slide 23: UGI Corporation EPS Reconciliation
UGI Corporation EPS Reconciliation UGI Reconciliation of Adjusted EPS to GAAP EPS (millions of dollars) 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 GAAP N et Income $232.9 $261.0 $258.5 $215.5 $204.3 $176.2 $187.5 $111.6 $ 98.9 $ 75.5 Adjust ment s: Cumulat ive effect of change in account ing
Slide 24: Common Stock Data
Common Stock Data UGI Common Stock Data Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 St ockholders' equit y - end of year (millions) $ 1,977.7 $ 1,824.5 $ 1,591.4 $ 1,417.7 $ 1,321.9 $ 1,099.6 Shares out st anding - end of year (millions) 111.9 110.4 108.7 107.9 106.6 105.5 Average shares
Slide 25: AmeriGas Partners Financial Data
AmeriGas Partners Financial Data AmeriGas Financial Data: Year Ended Sept ember 30, (millions of dollars, except where ot herwise indicat ed) 2011 2010 2009 2008 2007 2006 Income Statement - AmeriGas Propane Revenues $ 2,538.0 $ 2,320.3 $ 2,260.1 $ 2,815.2 $ 2,277.4 $ 2,119.3 Cost of sales (1,605.3)
Slide 26: AmeriGas Partners EBITDA Reconciliation
AmeriGas Partners EBITDA Reconciliation AmeriGas Partners, L.P. Reconciliation of Adjusted EBITDA (millions of dollars) 2011 2010 2009 2008 2007 2006 2005 2004 2003 N et income at t ribut able t o AmeriGas Part ners, L.P. 1 $ 138.5 $ 165.3 $ 224.6 $ 158.0 $ 190.8 $ 91.1 $ 60.8 $ 91.8 72.0 Income t a
Slide 27: AmeriGas Partners Cash Flow Reconciliation
AmeriGas Partners Cash Flow Reconciliation AmeriGas Partners, L.P. Historical Distributable Cash Flow Reconciliation Year Ended Sept ember 30, ($ in millions) 2011 2010 2009 2008 2007 2006 N et Cash Provided by Operat ing Act ivit ies $ 188.9 $ 218.8 $ 367.5 $ 180.2 $ 207.1 $ 179.5 Exclude the impac
Slide 28: AmeriGas Supplemental Information: Footnotes
AmeriGas Supplemental Information: Footnotes The enclosed supplemental information contains a reconciliation of Earnings before interest expense, income taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA to Net Income and Distributable Cash Flow to Cash Flow from Operations. EBITDA
Slide 29: AmeriGas Operating Statistics
AmeriGas Operating Statistics O perating Statistics - AmeriGas Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 AmeriGas Propane Ret ail sales - millions of gallons Resident ial 344.0 358.7 380.6 399.0 400.1 378.6 Commercial / Indust rial 330.0 330.4 339.9 354.5 358.1 343.2 Mot or Fuel 123.1
Slide 30: International Propane: Income Statement
International Propane: Income Statement International Propane Income Statement Data: Year Ended September 30, (millions of dollars, except where otherwise indicated) 2011 2010 2009 2008 2007 2006 Income Statement Revenues $ 1,488.7 $ 1,059.5 $ 955.3 $ 1,124.8 $ 800.4 $ 945.5 Cost of sales (970.8) (5
Slide 31: International Propane: Summary Financial Data
International Propane: Summary Financial Data International Propane Summary Financial Data: Year Ended September 30, (millions of dollars, except where otherwise indicated) 2011 2010 2009 2008 2007 2006 Revenues: Antargaz $ 1,050.6 $ 887.1 $ 837.7 $ 1,062.6 $ 759.2 $ 881.9 Flaga and other 438.1 172.
Slide 32: International Propane: Operating Statistics
International Propane: Operating Statistics O perating Statistics - International Propane Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 Ant argaz sales volumes - millions of gallons 270.5 279.9 289.3 292.6 269.1 315.2 Flaga sales volumes - millions of gallons 159.2 70.4 68.5 72.7 55.8 65.0
Slide 33: UGI Utilities: Summary Financial Data
UGI Utilities: Summary Financial Data UGI Utilities Financial Data: Year Ended September 30, (millions of dollars) 2011 2010 2009 2008 2007 2006 Income Statement Revenues $ 1,137.4 $ 1,169.5 $ 1,381.3 $ 1,289.1 $ 1,183.3 $ 822.0 Cost of sales (678.5) (730.5) (944.8) (920.4) (816.5) (573.9) T otal Ma
Slide 34: UGI Utilities: Summary Financial Data (cont.)
UGI Utilities: Summary Financial Data (cont.) UGI Utilities Financial Data (continued): Year Ended Sept ember 30, (millions of dollars) 2011 2010 2009 2008 2007 2006 Revenues by segment: Gas Ut ilit y $ 1,026.4 $ 1,047.5 $ 1,241.0 $ 1,138.4 $ 1,045.0 $ 724.0 Elect ric Ut ilit y 109.1 120.2 138.5 139
Slide 35: UGI Utilities: Operating Statistics
UGI Utilities: Operating Statistics O perating Statistics - Utilities Year Ended Sept ember 30, 2011 2010 2009 2008 2007 2006 Degree days - percent of normal 104% 95% 104% 95% 95% 91% Miles of gas dist ribut ion main 12,200 11,900 11,900 7,867 7,800 7,700 Miles of elect ric dist ribut ion line 2,100
Slide 36: Energy Services: Summary Financial Data
Energy Services: Summary Financial Data Energy Services Financial Data: Year Ended September 30, (millions of dollars) 2011 2010 2009 2008 2007 2006 Income Statement Revenues $ 1,059.7 $ 1,145.9 $ 1,224.7 $ 1,619.5 $ 1,336.1 $ 1,414.3 Cost of sales (920.0) (1,010.7) (1,098.5) (1,495.4) (1,235.2) (1,