UGI Corporation · NYSE:UGI
UGI — Q1 FY2018 Earnings Presentation
27 slides from UGI's earnings presentation, February 2018
Slide 1: Fiscal 2018 First Quarter Results
Fiscal 2018 First Quarter Results John L. Walsh President & CEO, UGI Corporation Kirk R. Oliver Chief Financial Officer, UGI Corporation Jerry E. Sheridan 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: First Quarter Recap
First Quarter Recap John Walsh John L. Walsh President President & CEO, UGI & CEO, UGI 3
Slide 4: Q1 Earnings Recap
Q1 Earnings Recap • Adjusted EPS up ~11% versus prior year period • Tax rate changes in the U.S. and France contributed $0.09, net Adjusted EPS Q1 2018 Weather Versus: Normal UGI Midstream & Gas AmeriGas International Marketing Utility $1.01 $0.91 1.4% warmer 0.9% warmer 1.1% warmer 1.9% warmer Q1 2
Slide 5: Key Accomplishments
Key Accomplishments • The PennEast Pipeline received final FERC certificate on January 19th and we expect construction to begin by the end of 2018 • Strong LNG demand driven by increased peak day demand and capacity constraints • Gas Utility added nearly 3,800 new residential heating and commercial
Slide 6: First Quarter Financial Review
First Quarter Financial Review John Walsh Kirk R. Oliver Chief FinancialPresident Officer, UGI& CEO, UGI 6
Slide 7: Q1 Adjusted Earnings
Q1 Adjusted Earnings ($ millions, except per share amounts) Q1 2017 Q1 2018 Net income attributable to UGI Corporation (GAAP) $230.7 $365.9 Net gains on commodity derivative instruments1,3 (52.2) (4.6) Unrealized (gains) losses on foreign currency derivative instruments1 (0.8) 0.1 Integration expens
Slide 8: Summary of Q1 Tax Adjustments
Summary of Q1 Tax Adjustments One-time First fiscal benefit quarter U.S. Tax Cuts and Jobs Act $0.94 $0.12 French Finance Bill $0.10 $(0.03) Net Impact $1.04 $0.09 Included in adjusted EPS No Yes • For the full year, on a combined basis, excluding one-time benefit to EPS, these tax law changes are e
Slide 9: Q1 Results Recap
Q1 Results Recap $0.04 $1.01 $0.09 $0.91 $(0.03) Q1 FY17 French Tax French and U.S. Tax Core Business Q1 FY18 Adjusted EPS Refunds Legislation Operations Adjusted EPS AmeriGas $0.12 - $0.03 $0.01 $0.16 UGI International 0.38 (0.03) (0.03) (0.01) 0.31 Midstream & Marketing 0.17 - 0.03 0.01 0.21 UGI U
Slide 10: Financial Results – AmeriGas
Financial Results – AmeriGas Weather versus normal ($ millions) Q1 2017 Q1 2018 colder Adjusted EBITDA $185.1 Retail Margin 2.6 Total margin Wholesale and Other Total Margin 2.1 Partnership Operating and Administrative Expenses (3.5) Q1 2017 Q1 2018 Other Income and Expense, net 7.8 (1.4)% (10.3)% A
Slide 11: Financial Results – UGI International
Financial Results – UGI International ($ millions) Q1 2017 Q1 2018 Weather versus Income Before Taxes $84.0 normal Total Margin 18.3 colder Operating and Administrative Expenses (8.3) Depreciation and Amortization (4.3) Interest Expense (0.8) 6.6% Other Income and Expense, net (6.3) Income Before Ta
Slide 12: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing ($ millions) Q1 2017 Q1 2018 Weather versus normal Income Before Taxes $ 49.1 colder Total Margin 11.0 Operating and Administrative Expenses (3.7) Depreciation and Amortization (2.1) Other Income and Expenses, net (1.7) Q1 2017 Q1 2018 Income Before Taxes $5
Slide 13: Financial Results – Utilities
Financial Results – Utilities Gas Utility ($ millions) Q1 2017 Q1 2018 weather versus Income Before Taxes $72.2 normal colder Total Margin 19.4 Operating and Administrative Expenses (2.4) Depreciation and Amortization (3.0) Interest Expense (0.9) Q1 2017 Q1 2018 Other Income and Expense, net 0.1 (6.
Slide 14: AmeriGas First Quarter Recap
AmeriGas AmeriGas First Quarter Recap Jerry Sheridan Jerry E. Sheridan President President & & CEO, CEO, AmeriGas AmeriGas 14
Slide 15: AmeriGas Q1 2018 Earnings Recap
AmeriGas Q1 2018 Earnings Recap Adjusted EBITDA ($ in millions) $194.1 • Volume flat due to fairly uneven weather $185.1 throughout the quarter $551.2 • Impact of late-December weather experienced after quarter-end • 9.9% colder versus prior year; 3.8% Q1 2017 Q1 2018 colder excluding last week of W
Slide 16: Transport Fleet Responds to Ensure Security of Supply
Transport Fleet Responds to Ensure Security of Supply Northeast Southeast $551.2 • Each green dot is an AmeriGas transport truck • We moved significant transport assets eastward to keep service levels high UGI Corporation | Fiscal 2018 First Quarter Results 16
Slide 17: Growth Initiatives
Growth Initiatives Cylinder Exchange • Demand remains high • Volume was up 9% vs. Q1 2017 National Accounts • Added 11 new customers in Q1 • Volume was up 7% vs. Q1 2017 Acquisitions • No acquisitions in the quarter • Pipeline remains strong UGI Corporation | Fiscal 2018 First Quarter Results 17
Slide 18: Conclusion and Q&A
Conclusion and Q&A John L. Walsh President & CEO, UGI 18
Slide 19: Key Growth Drivers
Key Growth Drivers • The extreme cold weather in the eastern U.S. in late December /early January highlights need for continued investment in Nat Gas infrastructure • PennEast will deliver incremental new pipeline capacity to areas in need • Seeking opportunities to expand our existing midstream sys
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 AmeriGas UGI Midstream & Corporate & Quarter Ended Dec ember 3 1 , 2 0 1 7 Total UGI Utilities P ropane International Marketing O ther Adjusted net inc ome attributable to UGI Corporation: Net income attributable to UGI Corporation $ 365.9 $ 141.6 $ 61.1 $ 112.0 $ 68.
Slide 24: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS Midstream AmeriGas UGI Corporate Quarter Ended Dec ember 3 1 , 2 0 1 6 Total & UGI Utilities P ropane International & O ther Marketing Adjusted net inc ome attributable to UGI Corporation: Net income attributable to UGI Corporation $ 230.7 $ 16.6 $ 88.3 $ 29.9 $ 44.3
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 dollars) Quarter Ended December 31, 2017 2016 EBITDA and Adjusted EBITDA Net income attributable to AmeriGas Partners $ 104.4 $ 92.0 Income tax expense 2.4 0.8 Interest expense 40.6 40.0 Depreciation 37.8 34.0 Amortization 9.6 10.6 EBITDA 194.8 177.4
Slide 27: Investor Relations
Investor Relations: Will Ruthrauff Brendan Heck 610-456-6571 610-456-6608 ruthrauffw@ugicorp.com heckb@ugicorp.com 27