Slide 1: Fiscal 2023 Results & Business Update
1 Fiscal 2023 Results & Business Update Roger Perreault President and CEO, UGI Corporation Sean O’Brien Chief Financial Officer, UGI Corporation R o b e r t F. B e a r d Chief Operations Officer, UGI Corporation 1
Slide 2: About This Presentation
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-looking
Slide 3: UGI Supplemental Footnotes
UGI Supplemental Footnotes Management uses “adjusted net income attributable to UGI Corporation”, “adjusted diluted earnings per share (“EPS”)”, “UGI Corporation Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”)”, “AmeriGas Propane Adjusted EBITDA”, “UGI Internation
Slide 4: FY23 Year in Review
1 FY23 Year in Review 4
Slide 5: FY23 Financial Highlights
FY23 Financial Highlights Adjusted Diluted EPS1 Reportable Segments EBIT2 Earnings Contribution – Adjusted Diluted EPS1 ($ in Million) $2.90 $2.84 $1,166 $1,158 37% Natural Gas FY23 63% Global LPG FY22 FY23 FY22 FY23 • FY23 GAAP diluted EPS of ($7.16) vs. $4.97 in FY22 6% 7% • Record performance at
Slide 6: FY23 Key Accomplishments
FY23 Key Accomplishments • Deployed $956 million of capital, with $563 million (59%) largely • Completed the Allen Farm and EL-Vi RNG projects, with an expected focused on pipeline replacement and betterment at the Utilities production capacity of ~140 Mmcf • Continued to execute on our commitment t
Slide 7: FY23 Results Recap
FY23 Results Recap FY23 GAAP diluted EPS of ($7.16) compared to $4.97 in FY22 Key Drivers Natural Gas businesses FY23 Adjusted Diluted EPS1 – Comparison with FY22 • Warmer than prior year weather • Higher total margin • Higher operating expenses • Weather normalization at the PA Gas Utility Global L
Slide 8: FY23 Segment Results Recap – Natural Gas
FY23 Segment Results Recap – Natural Gas FY23 EBIT - Comparison with FY22 ($ in million) Utilities Midstream & Marketing FY22 Total OPEX D&A Other FY23 FY22 Total OPEX D&A Other FY23 EBIT Margin EBIT EBIT Margin EBIT Key Drivers Key Drivers • Higher PA Gas Utility base rates and benefits from the we
Slide 9: FY23 Segment Results Recap – Global LPG
FY23 Segment Results Recap – Global LPG FY23 EBIT - Comparison with FY22 ($ in million) UGI International AmeriGas Propane FY22 Total OPEX D&A Other FY23 FY22 Total OPEX D&A Other FY23 EBIT Margin EBIT EBIT Margin EBIT Key Drivers Key Drivers • Total retail gallons decreased 9% due to warmer weather
Slide 10: Liquidity and Balance Sheet Update
Liquidity and Balance Sheet Update • $1.6 billion in available liquidity1 as of September 30, 2023 • In FY23, completed over $2.6+ billion of long-term debt financing to support our ongoing operations and improve liquidity • As of September 30, 2023, UGI and its subsidiaries were in compliance with
Slide 11: FY24 Strategic Priorities & Financial Outlook
2 FY24 Strategic Priorities & Financial Outlook 11
Slide 12: Our Strategic and Financial Priorities
Our Strategic and Financial Priorities Focused on effectively operating our business portfolio to deliver reliable earnings growth, achieve sustainable cost savings, and strengthen the balance sheet while pursuing a strategic review focused on the LPG business 1 2 3 4 Cost Reduction and Strengthen t
Slide 13: FY24 Guidance
FY24 Guidance FY23 Adjusted Diluted EPS1 to FY24 Guidance2,3 Key Assumptions3 Natural Gas businesses $3.00 • Normal weather • Electric rates $2.70 • Volume • Operating expense $2.84 • Customer • Interest expense growth • Current tax regime • Gas base rates Global LPG businesses • Normal weather • In
Slide 14: Capital Allocation Outlook and Priorities
Capital Allocation Outlook and Priorities Capital Allocation – By Category ($ in million) • 4% long-term dividend growth target FY23 FY24E2 Dividend Payment and • Maintain an attractive dividend payout ratio for 1 Shareholder Return our business mix Cash • Consider share repurchase as leverage decre
Slide 15: Driving Operational Improvements at AmeriGas Propane to Enhance Shareholder Value
Driving Operational Improvements at AmeriGas Propane to Enhance Shareholder Value Free Cash Flow2 at $1.5 billion generated #1 propane distributor in the US1 AmeriGas Propane since 2020 AmeriGas Propane in FY24 Flexible and reliable supply chain coverage Sustained focus on operational improvement to
Slide 16: Key Takeaways
Key Takeaways Executing a strategic review focused Maintaining our strong track Optimizing our cost structure to on the LPG business to unlock and record of paying dividends create an agile organization maximize shareholder value Improving the balance sheet and Prioritizing investments in the Contin
Slide 17: Appendix
Appendix 17
Slide 18: A Diversified Energy Provider
A Diversified Energy Provider UGI Corporation is a distributor and marketer of energy products and services, 141 years including natural gas, LPG, electricity and renewable energy solutions 18 countries 2.6+ million customers 1 10,000+ employees 1 4 diversified businesses ONE Reliable Earnings Growt
Slide 19: Our Business Portfolio
Our Business Portfolio Lines of Businesses Natural Gas Global LPG Utilities Midstream & Marketing UGI International AmeriGas Propane Segments 11% FY23 Adjusted 33% Diluted EPS 27% Contribution1,2 29% FY23 Volume ~375 bcf ~295 bcf ~900 million gallons ~940 million gallons Key Highlights3 • 2nd larges
Slide 20: Our Strategy
Our Strategy Core Values • Ongoing investments to grow predictable regulated utility, fee-based and Safety weather resilient volume to enable strong stable returns • Continuous improvements and focused growth across the business Reliable Earnings Respect • Reduce weather sensitivity Growth Integrity
Slide 21: Renewables Investment Highlights
Renewables Investment Highlights Renewable Natural Gas Projects Committed to Date1 UGI continues to develop a portfolio Production2 Feedstock FY22 FY23 FY24 FY25 of renewables (~Mmcf) through investment New Energy One – Joint Venture (<25%) 250 in committed Cayuga - Spruce Haven 50 projects Cayuga -
Slide 22: ESG Highlights
ESG Highlights Key ESG Focus Areas UGI ESG Rating History - MSCI Environmental Social Governance UGI is positioned among top 7%5 of all peers 1 1 2,4 55% 25% 50% 5-year Scope-1 GHG Emissions Targeted spend improvement Board Reduction Target with diverse Tier I and Tier II Diversity (using 2020 as th
Slide 23: FY23 Adjusted Diluted Earnings per Share
FY23 Adjusted Diluted Earnings per Share FY23 FY22 Utilities $1.01 $0.95 Midstream & Marketing 0.89 0.76 UGI International 0.80 0.81 AmeriGas Propane 0.33 0.52 Corporate & Other (a) (10.19) 1.93 Earnings per share – diluted (7.16) 4.97 Net losses (gains) on commodity derivative instruments not assoc
Slide 24: FY23 Adjusted Net Income
FY23 Adjusted Net Income (Dollars in Millions) FY23 FY22 Utilities $219 $206 Midstream & Marketing 193 163 UGI International 172 175 AmeriGas Propane 71 112 Corporate & Other (a) (2,157) 417 Net income attributable to UGI Corporation (1,502) 1,073 Net losses (gains) on commodity derivative instrumen
Slide 25: Non-GAAP Reconciliation: UGI Corporation Adjusted EBITDA and Leverage
Non-GAAP Reconciliation: UGI Corporation Adjusted EBITDA and Leverage ($ in millions) Year Ended September 30, 2020 2021 2022 2023 Net income including noncontrolling interests $532 $1,467 $1,073 (1,502) Income taxes 135 522 313 (335) Interest expense 322 310 329 379 Depreciation and amortization 48
Slide 26: Non-GAAP Reconciliation: AmeriGas Propane Adjusted EBITDA and Free Cash Flow
Non-GAAP Reconciliation: AmeriGas Propane Adjusted EBITDA and Free Cash Flow ($ in millions) Year Ended September 30, Adjusted EBITDA Reconciliation: 2020 2021 2022 2023 Net income (loss) attributable to AmeriGas Partners, L.P. $236 $337 ($38) ($616) Income tax 2 2 2 - Interest expense 164 159 160 1
Slide 27: Non-GAAP Reconciliation: UGI International Adjusted EBITDA and Free Cash Flow
Non-GAAP Reconciliation: UGI International Adjusted EBITDA and Free Cash Flow ($ in millions) Year Ended September 30, Adjusted EBITDA Reconciliation: 2020 2021 2022 2023 Net income (loss) attributable to UGI International, LLC $137 $979 $808 ($1,076) Net income attributable to noncontrolling intere
Slide 28: FY23 Segment Reconciliation (GAAP)
FY23 Segment Reconciliation (GAAP) ($ in Million) Total Utilities Midstream & UGI AmeriGas Corp & Marketing International Propane Other Revenues $8,928 $1,854 $1,847 $2,965 $2,581 ($319) Cost of sales (6,937) (953) (1,360) (2,045) (1,250) (1,329) 1 Total margin 1,991 901 487 920 1,331 (1,648) 1 Oper
Slide 29: Notes to ESG Commitments
Notes to ESG Commitments Committed to reducing Scope I emissions by 55% by 2025 using 2020 as the base year 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
Slide 30: Investor Relations
Investor Relations: Tameka Morris Arnab Mukherjee 610-456-6297 610-768-7498 morrista@ugicorp.com mukherjeea@ugicorp.com 30