Ugi Corporation · NYSE:UGI
Ugi — Q2 FY2021 Earnings Presentation
24 slides from Ugi's earnings presentation, May 2021
Slide 1: Fiscal 2021 Second Quarter Results
1 Fiscal 2021 Second Quarter Results J o h n L . Wa l s h President and CEO, UGI Corporation Roger Perreault Executive Vice President Global LPG, UGI Corporation President and CEO, UGI Corporation (effective June 26, 2021) Te d J . J a s t r z e b s k i Chief Financial Officer, UGI Corporation R o b
Slide 2: About This Presentation
About This Presentation This press release contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended). Management believes that these are reasonable as of today’s date only. Actual results may diff
Slide 3: Second Quarter Recap
Second Quarter Recap John L. Walsh President and CEO, UGI 3 3
Slide 4: Second Quarter Highlights
Second Quarter Highlights • Record Q2 GAAP diluted EPS of $2.33 (vs. Q2 FY20 GAAP diluted EPS of $1.07) and Adjusted diluted EPS1 of $1.99 Adjusted Diluted EPS1 in Q2 FY21 (vs. Q2 FY20 Adjusted diluted EPS of $1.56) Reportable Segments EBIT2 ($ in Millions) • Strong results across the entire busines
Slide 5: Second Quarter Financial Review
Second Quarter Financial Review Ted J. Jastrzebski Chief Financial Officer, UGI 5 5
Slide 6: Second Quarter Adjusted Diluted Earnings per Share
Second Quarter Adjusted Diluted Earnings per Share Q2 FY21 Q2 FY20 AmeriGas Propane $0.71 $0.58 UGI International 0.47 0.36 Midstream & Marketing 0.31 0.24 UGI Utilities 0.47 0.39 Corporate & Other (a) 0.37 (0.50) Earnings per share – diluted 2.33 1.07 Net (gains) losses on commodity derivative inst
Slide 7: Liquidity Update
Liquidity Update • Cash Flow from Operating Activities of $646M in 6-months ended March 31, 2021, compared to $562M in prior-year period Available Liquidity • $120M (143%) increase in free cash flow1 in the 6-months ended March 31, 2021, compared to the prior-year period $1.6 $1.6 • Strong balance s
Slide 8: Second Quarter Results Recap
Second Quarter Results Recap Adjusted Diluted EPS1 – Comparison with Q2 FY20 Adjusted Diluted EPS1 – Segment Split $1.993 $0.04 0.47 $0.07 $0.08 $1.562 $0.11 $0.13 UGI 0.39 Utilities 0.31 Midstream 0.24 & Marketing 0.47 8.4% 11.8% 11.7% 13.3% $1.99 0.36 UGI $1.56 Colder Colder Colder Colder Internat
Slide 9: Financial Results - AmeriGas
Financial Results - AmeriGas (Millions of dollars) Q2 FY20 Q2 FY21 Weather versus normal Earnings Before Interest Expense & Income Taxes $206 Total Margin 32 Operating and Administrative Expenses (2) Depreciation and Amortization 1 Other Income and Expense, net 2 Earnings Before Interest Expense & I
Slide 10: Financial Results – UGI International
Financial Results – UGI International (Millions of dollars) Q2 FY20 Q2 FY21 Weather versus normal Earnings Before Interest Expense & Income Taxes $126 Total Margin 48 Operating and Administrative Expenses (17) Depreciation and Amortization (3) Realized FX Gains (7) Other Income and Expense, net 2 Q2
Slide 11: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing (Millions of dollars) Q2 FY20 Q2 FY21 Weather versus normal Earnings Before Interest Expense & Income Taxes $79 Total Margin 18 Operating and Administrative Expenses 6 Other Income and Expense, net (3) Earnings Before Interest Expense & Income Taxes $100 Q2
Slide 12: Financial Results – Utilities
Financial Results – Utilities (Millions of dollars) Q2 FY20 Q2 FY21 Weather versus normal Earnings Before Interest Expense & Income Taxes $116 Total Margin 31 Operating and Administrative Expenses (1) Depreciation (3) Other Income and Expense, net (1) Earnings Before Interest Expense & Income Taxes
Slide 13: Increase in Fiscal Year 2021 Guidance
Increase in Fiscal Year 2021 Guidance As a result of the strong performance in the first half of the fiscal year despite warmer than normal weather, we increased our FY21 adjusted EPS guidance to a range of $2.90 - $3.001 per share, inclusive of the negative impact from COVID-19 and positive tax ben
Slide 14: Natural Gas Business
Natural Gas Business Robert F. Beard Executive Vice President Natural Gas, UGI 14 14
Slide 15: Natural Gas Business Update
Natural Gas Business Update • In Q2 FY21, UGI Energy Services, through a joint venture, acquired a 49% equity interest in Pine Run Midstream for $56M Added 43-miles of dry gas gathering pipeline and compression assets to UGI’s portfolio of midstream assets in the Appalachian basin • Added 3,800+ h
Slide 16: Global LPG Business
Global LPG Business Roger Perreault Executive Vice President Global LPG, UGI President and CEO, UGI Corporation (effective June 26, 2021) 16 16
Slide 17: Global LPG Business Update
Global LPG Business Update • LPG Business Transformation Initiatives remain on track to realize annual benefits by the end of FY22 Centralized customer engagement services center, enhanced customer management tools and a new routing and logistics tool Two centers of excellence now fully in place
Slide 18: Strategy and Long-term Commitments Remain Unchanged
Strategy and Long-term Commitments Remain Unchanged Embedded in a strong culture of innovation, UGI continues to be driven by its core values Portfolio Rebalancing ESG • Rebalance UGI’s business mix through: • Advance environmental, social and • Investment in capital projects ONE governance goals: •
Slide 19: Conclusion and Q&A
Conclusion and Q&A John L. Walsh President and CEO, UGI 19 19
Slide 20: Appendix
Appendix 20 20
Slide 21: UGI Supplemental Footnotes
UGI Supplemental Footnotes • Management uses “adjusted net income attributable to UGI Corporation”, “free cash flow” and “adjusted diluted earnings per share,” all three of which are non-GAAP financial measures, when evaluating UGI’s overall performance. Management believes that these non-GAAP measu
Slide 22: UGI Adjusted Net Income
UGI Adjusted Net Income (Dollars in millions) Q2 FY21 Q2 FY20 AmeriGas Propane $150 $122 UGI International 99 75 Midstream & Marketing 64 50 UGI Utilities 99 82 Corporate & Other (a) 77 (103) Net income attributable to UGI Corporation 489 226 Net (gains) losses on commodity derivative instruments no
Slide 23: Free Cash Flow
Free Cash Flow Six Months Ended March 31, (Dollars in millions) 2021 2020 Net cash provided by operating activities $646 $562 (-) Expenditures for property, plant and equipment (304) (342) (-) Dividends on UGI Common Stock (138) (136) Free Cash Flow $204 $84 23 23
Slide 24: Investor Relations
Investor Relations: Tameka Morris Arnab Mukherjee 610-456-6297 610-768-7498 morrista@ugicorp.com mukherjeea@ugicorp.com 24 24