Ugi Corporation · NYSE:UGI
Ugi — FY2018 Earnings Presentation
27 slides from Ugi's earnings presentation, Nov 13, 2018
Slide 1: Fiscal 2018 Results and Fiscal 2019 Outlook
Fiscal 2018 Results and Fiscal 2019 Outlook November 13, 2018 John L. Walsh President & CEO, UGI Corporation Ted J. Jastrzebski Chief Financial Officer, UGI Corporation Hugh J. Gallagher President & CEO, AmeriGas Partners 1
Slide 2: About This Presentation
About This Presentation This presentation contains certain forward-looking statements that 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
Slide 3: Fiscal Year Recap
Fiscal Year Recap John L. Walsh President & CEO, UGI 3
Slide 4: Fiscal Year Earnings Recap
Fiscal Year Earnings Recap Adjusted EPS • Adjusted EPS up 20% versus last year • Growth initiatives across business units continue to drive record results $2.74 • Infrastructure investments in the Marcellus Shale $2.29 • Record capital deployment at Utilities • Growth initiatives at AmeriGas and UGI
Slide 5: Fiscal Year Overview
Fiscal Year Overview • Midstream & Marketing acquired Texas Creek and the Endless Mountain gathering systems, completed the Steelton LNG storage and vaporization unit, and received its Final Environmental Impact Statement from the FERC for the PennEast pipeline • UGI Utilities spent a record $340 mi
Slide 6: Fiscal Year Financial Review
Fiscal Year Financial Review Ted J. Jastrzebski Chief Financial Officer, UGI 6
Slide 7: FY Adjusted Earnings
FY Adjusted Earnings FY 2017 FY 2018 ($ millions, except per share amounts) Net income attributable to UGI Corporation (GAAP) $436.6 $718.7 Net gains on commodity derivative instruments1&2 (51.2) (68.1) Unrealized losses (gains) on foreign currency derivative instruments1 13.9 (19.6) Integration exp
Slide 8: FY 2018 Results Recap
FY 2018 Results Recap Adjusted EPS growth of 20% over FY 2017 Adjusted EPS $3.00 $0.14 $2.74 $2.742 $0.23 $(0.04) $2.291 $0.13 $0.80 $2.29 UGI Utilities $(0.01) $0.66 $0.72 Midstream & $0.49 Marketing Adjusted EPS Adjusted 13.0% 5.9% 12.0% 10.1% UGI $0.87 colder warmer colder colder $0.88 Internatio
Slide 9: Financial Results – AmeriGas
Financial Results – AmeriGas Weather versus normal ($ millions) FY 2017 FY 2018 colder Adjusted EBITDA $551.3 Retail Margin 56.6 Total Wholesale and Other Total Margin 1.1 margin Partnership Operating and Administrative Expenses (15.5) (11.3)% 0.3% Other Income, net 12.0 Adjusted EBITDA $605.5 (9.6)
Slide 10: Financial Results – UGI International
Financial Results – UGI International ($ millions) FY 2017 FY 2018 Income Before Taxes $175.0 Weather versus normal Total Margin 121.5 colder Operating and Administrative Expenses (77.0) Depreciation and Amortization (23.2) Interest Expense (0.5) Other Income, net (7.0) FY 2017 FY 2018 Income Before
Slide 11: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing Weather versus ($ millions) FY 2017 FY 2018 normal Income Before Taxes $141.4 colder Total Margin 66.4 Operating and Administrative Expenses (18.4) Depreciation and Amortization (8.1) Interest Expense (0.3) (12.1)% (1.5)% Other Income, net (4.5) Income Befor
Slide 12: Financial Results – Utilities
Financial Results – Utilities ($ millions) FY 2017 FY 2018 Gas Utility weather versus Income Before Taxes $188.1 normal Total Margin 73.0 colder Impact of PA PUC Order (23.0) Operating and Administrative Expenses (21.4) Depreciation and Amortization (12.3) Interest Expense (2.7) (11.1)% (2.1)% Other
Slide 13: AmeriGas Fiscal Year Recap
AmeriGas Fiscal Year Recap Hugh J. Gallagher President & CEO, AmeriGas AmeriGas 13
Slide 14: AmeriGas FY 2018 Earnings Recap
AmeriGas FY 2018 Earnings Recap Adjusted EBITDA1 $185.1 ($ in millions) • Adjusted EBITDA increased 10% compared to $605.5$551.2 FY 2017 • Volume up 4% due to cold December and cool $551.3 spring • Retail unit margins up slightly despite a 19% increase in the average cost of propane • Operating expe
Slide 15: Growth Drivers and 2019 Outlook
Growth Drivers and 2019 Outlook Growth Initiatives FY 2019 Adjusted EBITDA Cylinder Exchange Guidance • Volume increased ~4% over FY 2017 • Added ~3,000 new locations in FY18 • Expect Adjusted EBITDA of $610 - $650 million • Based on normal weather over 15-year period National Accounts • Volume incr
Slide 16: Fiscal 2019 Outlook and Q&A
FiscalInvestor Relations: 2019 Outlook and Q&A WillJohn Ruthrauff L. Walsh Brendan Heck 610President-456-6571 & CEO, UGI 610-456-6608 ruthrauffw@ugicorp.com heckb@ugicorp.com 16
Slide 17: FY 2019 Guidance
FY 2019 Guidance Adjusted EPS of $2.75 – $2.95 Consistent Earnings Pattern Historically, on average, ~95% of FY Adjusted EPS is generated in the first half of the year $3.00 $2.95 Percentage of UGI Adjusted EPS earned by quarter Q1 ~35% $2.75 $2.74 $2.75 Q2 ~60% Q3 ~5% Q4 ~0% $2.50 FY 2018 FY 2019 F
Slide 18: Adjusted EPS Growth
Adjusted EPS Growth $3.00 5 Year Adjusted EPS CAGR – 11.2% $2.74 $2.50 $2.29 $2.05 $2.02 $2.01 $2.00 $1.61 $1.50 $1.00 2013 2014 2015 2016 2017 2018 UGI Corporation | Fiscal 2018 Results Adjusted EPS is a non-GAAP measure. See appendix for reconciliation. 18
Slide 19: Key Growth Drivers
Key Growth Drivers Natural Gas Global LPG • Continue to identify and develop broad range of • Build on record result from AmeriGas’s ACE and new investments as demand for natural gas National Accounts programs continues to grow • $50mm Auburn IV expansion increases • Technology investments to enhanc
Slide 20: Q&A
Q&A 20
Slide 21: Appendix
APPENDIX 21
Slide 22: UGI Supplemental Footnotes
UGI Supplemental Footnotes • Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. For the periods presented, adjusted net income attributable to UGI is net income
Slide 23: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS Year Ended September 30, 2018 AmeriGas UGI Midstream & Corporate & Total UGI Utilities (Millions of dollars, except per share) Propane International Marketing Other Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 718.7
Slide 24: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS 24 UGI Corporation | Fiscal 2018 Results
Slide 25: AmeriGas Supplemental Footnotes
AmeriGas Supplemental Footnotes • The enclosed supplemental information contains a reconciliation of earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA to Net Income. • EBITDA and Adjusted EBITDA are not measures of performance or financial c
Slide 26: AmeriGas EBITDA and Adjusted EBITDA
AmeriGas EBITDA and Adjusted EBITDA (Millions of dollar) Year Ended September 30, 2018 2017 EBITDA and Adjusted EBITDA Net income attributable to AmeriGas Partners $ 190.5 $ 162.1 Income tax expense (a) 4.3 2.0 Interest Expense 163.1 160.2 Depreciation 145.8 147.7 Amortization 39.9 42.8 EBITDA and A
Slide 27: Investor Relations
Investor Relations: Brendan Heck 610-456-6608 heckb@ugicorp.com 27