Slide 1: Third Quarter Fiscal 2024 Results
1 1 Third Quarter Fiscal 2024 Results 1 Ma r i o L o n g h i Interim President and CEO, UGI Corporation S e a n O ’ B r i e n Chief Financial Officer, UGI Corporation Ro b e r t F. B e a rd Chief Operations Officer, UGI Corporation
Slide 2: About This Presentation
2 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-look
Slide 3: UGI Supplemental Footnotes
3 3 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 wh
Slide 4: Q3 FY24 Highlights
4 4 4 1. Adjusted diluted EPS is a non-GAAP measure. See Appendix for reconciliation. 2. Reduction in year over year operating and administrative expenses across all segments. 3. Available liquidity is defined as cash and cash equivalents, and available borrowing capacity on our revolving credit fac
Slide 5: YTD FY24 Highlights
5 5 YTD FY24 GAAP Diluted EPS1 of $2.52 compared to ($7.78) in YTD FY23 ➢ Deployed $511 million of capital in YTD FY24; $391 million (77%) invested in the natural gas businesses ➢ Added ~10,000 residential heating and commercial customers at the regulated utilities businesses ➢ Substantially exited
Slide 6: Q3 FY24 Financial Results
6 6 Q3 FY24 Financial Results
Slide 7: Q3 FY24 Results Recap
7 7 Q3 FY24 Results Recap Q3 FY24 Adjusted Diluted EPS1 – Comparison with Q3 FY23 Q3 FY24 GAAP Diluted EPS of ($0.23) compared to ($3.76) in Q3 FY23 1. Adjusted diluted EPS is a non-GAAP measure. See Appendix for reconciliation. 11
Slide 8: Q3 FY24 Segment Results Recap – Natural Gas
8 8 Weather Q3 FY23 EBIT Q3 FY24 EBIT Total Margin OPEX D&A Other Total margin represents total revenue less total cost of sales. In the case of Utilities, the total margin is also reduced by certain revenue-related taxes. OPEX stands for Operating & Administrative Expenses, and D&A stands for Depre
Slide 9: Q3 FY24 Segment Results Recap – Global LPG
9 9 Weather• Retail volume decreased 4% largely due to the effects of the warmer weather and lower growth in natural gas to LPG conversions • Total margin increase primarily reflects higher LPG unit margins and, to a lesser extent, impact of the non-core energy marketing activities • Lower OPEX prim
Slide 10: FY24 Outlook
10 10 FY24 Outlook Q4 FY24 Assumptions $3.00 $3.22 • Sustainable cost reduction • European energy marketing wind-down • Base volumes at AmeriGas Propane • Lower gain on asset sale at AmeriGas Propane • Reduced margin from capacity management due to lower capacity values $2.70 YTD FY24 Adjusted Dilut
Slide 11: Balance Sheet Update
11 11 Balance Sheet Update ➢ Executed several significant financing activities: o Issued $700 million of 5.00% Convertible Senior Notes due in 2028 at UGI Corporation o Repurchased $475 million of the 5.50% Senior Notes due May 2025 at AmeriGas Partners and AmeriGas Finance Corp using cash on hand,
Slide 12: Attractive and Sustainable Value Creation
12 12 Attractive and Sustainable Value Creation 4 - 6% Targeted EPS growth rate (FY24-27) 3.5 – 4.0x Targeted leverage ratio2 Attractive free cash flow generation to support our capital allocation framework Continuous efforts to maximize customer satisfaction Preserving the dividends and maintaining
Slide 13: Q & A
13 13 Q & A Q
Slide 14: Appendix
14 14 Appendix
Slide 15: Our Businesses
15 15 68% 32% 75%+ 25% Our Businesses • Leading regulated utilities in constructive regulatory environments • Strong rate base growth and attractive return on equity • Weather normalization riders to promote earnings reliability • Attractive capital investment runway with minimal regulatory lag 15 R
Slide 16: Our Strategy to Maximize Shareholder Value
16 16 Our Strategy to Maximize Shareholder Value Sustainably grow earnings through strong execution and disciplined capital allocation Operate a high-performing, customer-centric and results- driven organization Maximize value for our shareholders Capitalize on our market leading positions and optim
Slide 17: Actions to Drive Long-Term Shareholder Value
17 17 Actions to Drive Long-Term Shareholder Value Pursue opportunities to optimize our portfolio and drive reliable earnings growth in the base business Continuous focus on operational efficiencies to improve cost agility and deliver sustainable cost savings Execute on an operational turnaround pla
Slide 18: Shareholder Value Proposition
18 18 Shareholder Value Proposition 75%+ Targeted Earnings from the Natural Gas Businesses1 4 - 6% Targeted Long- Term EPS Growth Rate1 9%+ Targeted Rate Base Growth1 International energy distributor with an attractive business mix and leading position in key markets Building a culture of continuous
Slide 19: FY24 - Financial Targets
19 19 FY24 - 27 Financial Targets 19 1. The forward-looking information used on this slide is for illustrative purposes only. Actual numbers may differ substantially from the figures presented. 2. Defined as net debt to Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure. Executing on our strateg
Slide 20: Capital Allocation Framework
20 20 Capital Allocation Framework 20 ➢ Maintain commitment to the dividends ➢ Strong dividend payout ratio between 45% - 55% Shareholder Return ➢ Prioritize investments in the regulated utilities businesses, which attract a strong return on equity ➢ Support organic growth in the natural gas busines
Slide 21: Our Dividend Commitment
21 21 FY27 and Beyond2 Our Dividend Commitment Strong history of returning cash to shareholders in the form of dividends 1. Adjusted for stock splits. Dividend figures represent annualized dividends based on the last dividend issued in that fiscal year. 2. The forward-looking information used on thi
Slide 22: FY24-27 Capital Deployment Plan
22 22 FY24-27 Capital Deployment Plan 22 1 66% 18% 9% 7% Utilities Midstream & Marketing UGI International AmeriGas Propane Uses of Cash Growth and Maintenance Capital by Segment ~$3.9B2 ➢ Capital plan funded by cash flow from operations ➢ Disciplined investments to achieve an optimal portfolio mix
Slide 23: Stabilizing and Optimizing AmeriGas Propane
23 23 Stabilizing and Optimizing AmeriGas Propane 23 Results Driven Customer Focus Operational Excellence Safety Key Actions ➢ Adjust the operating model to enhance customer focus, support operational excellence and create efficiencies o Drive operational improvement within our operations and custom
Slide 24: Renewable Natural Gas Projects
24 24 Feedstock Production3 (~Mmcf) FY22 FY23 FY24 FY25 New Energy One– Joint Venture (<25%) 250 Cayuga - Spruce Haven 50 Cayuga - Allen Farms 85 Cayuga - EL-VI 55 MBL Bioenergy – Moody 300 Hamilton – Synthica St. Bernard 250 Cayuga – Bergen Farms 150 Cayuga – New Hope View Farms 35 MBL Bioenergy –
Slide 25: Strong Strides in Environmental, Social and Governance
25 25 Strong Strides in Environmental, Social and Governance (“ESG”) AAA rating MSCI B rating Carbon Disclosure Project Prime status ISS ESG Corporate Rating1 Medium-Risk Morningstar Sustainalytics Our ESG Ratings 1. As of August 5, 2023. 2. Information published in UGI’s 2023 ESG Report. For more i
Slide 26: Q3 and YTD FY24 Adjusted Diluted Earnings per Share
26 26 Q3 and YTD FY24 Adjusted Diluted Earnings per Share (a) Corporate & Other includes certain adjustments made to our reporting segments in arriving at net income attributable to UGI Corporation. These adjustments have been excluded from the segment results to align with the measure used by our C
Slide 27: Q3 and YTD FY24 Adjusted Net Income
27 27 Q3 and YTD FY24 Adjusted Net Income (a) Corporate & Other includes certain adjustments made to our reporting segments in arriving at net income attributable to UGI Corporation. These adjustments have been excluded from the segment results to align with the measure used by our Chief Operating D
Slide 28: UGI International Free Cash Flow (non-GAAP)
28 28 UGI International Free Cash Flow (non-GAAP) ($ 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)
Slide 29: Q3 FY24 Results by Segment
29 29 Total Utilities Midstream & Marketing UGI International AmeriGas Propane Corp & 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 Operating and administrative expenses (501) (90) (30) (138) (219) (24) Deprecia
Slide 30: UGI Corporation Q3 and YTD FY24 Adjusted EBITDA
30 30 UGI Corporation Q3 and YTD FY24 Adjusted EBITDA (non-GAAP) Year Ended September 30, LTM Jun'23 LTM Jun'24 Nine Months Ended June 30, 2021 2022 2023 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 (
Slide 31: Notes to ESG Commitments
31 Notes to ESG Commitments 35% Reduction in Total Recordable Injuries by 2025 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 accounted for our ownership