Ugi Corporation · NYSE:UGI
Ugi — Debt Investor Presentation (November 2021)
34 slides from Ugi's debt investor presentation, Nov 22, 2021
Slide 1: Euro Senior Notes Offering November 2021
Exhibit 99.1 Investor Presentation Euro Senior Notes Offering November 2021
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction. This presentation contains certain forward-looking statements tha
Slide 3: II. UGI International Overview
II. UGI International Overview 9 9
Slide 4: Business Overview
Business Overview LPG DISTRIBUTION LPG DISTRIBUTION ENERGY MARKETING Over 975 Million ~36 BCF gallons of LPG sold in FY 2021 of natural gas sold in FY 2021 Largest distributor in France, Austria, Natural gas and electricity marketing Belgium, Hungary, Norway, Denmark across France, Belgium, the and
Slide 5: UGI International At A Glance
UGI International At A Glance 1 FY21 Adj. Total Margin Breakdown LPG Distribution Energy Marketing Distributes LPG for use in space heating, cooking, water heating, motor fuel, leisure Markets and supplies natural gas and 4% activities, crop drying, irrigation, construction, power generation, manufa
Slide 6: Business Overview: Brand Descriptions
Business Overview: Brand Descriptions Decades of operational experience support strong brand recognition across an extensive customer base • Market leader in France in the distribution • Through over 90 years of operations, Kosan • LPG Distribution Business with operations • One of the UK’s leading
Slide 7: Strategically Located Assets and Diversified Supply Channels
Strategically Located Assets and Diversified Supply Channels Storage Facilities Diverse Supplier Base • Ownership interests in 10 • UGI holds supply contracts with over 40 different suppliers primary storage facilities and more than 80 secondary storage • Seaborne product represents ~41% of our tota
Slide 8: Operational Efficiency
Operational Efficiency • We have identified synergies and cost saving best practices across Europe, with a continued emphasis on customer service and safe Transformation Benefits operations € in Million • Main savings drivers include: q Commercial Excellence – continuous improvement to customer expe
Slide 9: Strengthening Renewables Portfolio
Strengthening Renewables Portfolio Strong strides in renewables 2015 - 2021 Focused on building a strong renewable portfolio • Began marketing Bio-LPG in parts of Northern Europe 1. New market opportunities: • Sourcing bio-molecules from Preem's refinery in Sweden to • New Renewable Fuels - “De-foss
Slide 10: ESG Journey under Strong UGI Corp Leadership
ESG Journey under Strong UGI Corp Leadership Going Forward Current Focus Areas • Operations and disclosures focused on several • “S” Leadership frameworks, including SASB, GRI, CDP, SDG and TCFD • Executive compensation linked to safety and diversity & inclusion initiative performance • Continue ide
Slide 11: IV. Key Credit Highlights
IV. Key Credit Highlights 20 20
Slide 12: Key Credit Highlights
Key Credit Highlights 1 Market Leading Position 2 Diverse Product Portfolio from Regionally Recognized Brands 3 Serving a Diverse Customer Base 4 Operating Structure Supports Strong Unit Margins 5 History of Solid Growth 6 Historically Strong Parent Support and Modest Financial Policy 7 Experienced
Slide 13: 1. Market Leading Position
1. Market Leading Position UGI International is a market leader in 12 of 17 countries in which it operates • Largest LPG distributor in France, Austria, Belgium, Denmark, Hungary, Luxembourg and Norway Norway Sweden Market size: 159KT Market size: 341KT • In our largest market, France, we estimate w
Slide 14: 2. Diverse Product Portfolio from Regionally Recognized Brands
2. Diverse Product Portfolio from Regionally Recognized Brands LPG for Consumers Bulk Gas Cylinder Gas Autogas LPG for Business Cylinder Gas Autogas Wholesale Bulk Gas 23 23
Slide 15: 3. Serving a Diverse Customer Base, with Limited Customer Concentration
3. Serving a Diverse Customer Base, with Limited Customer Concentration UGI serves customers across a broad market Residential Agriculture Aerosol Energy Marketing Commercial & Industrial Autogas Growth from heating oil Large market off-season Growth expected in UK and Growth opportunities in the St
Slide 16: 4. Operating Structure Supports Strong Unit Margins
4. Operating Structure Supports Strong Unit Margins 1. Majority of Contracts Have Pass-Through Structures 2. Hedging for LPG & F/X UGI International has a • Formula-based: Prices are calculated based on three• UGI International has a propane and long track record of FY 2021 Contract Types by Volume
Slide 17: 5. History of Solid Growth
5. History of Solid Growth Stable Industry Outlook Market Leading Position • While weather can be a significant driver of consumption in a • UGII is a market leader with approximately 19% share of the given year, largely non-discretionary demand and increasing aggregate LPG volumes sold in the 17 Eu
Slide 18: 6. Historically Strong Parent Support and Modest Financial Policy
6. Historically Strong Parent Support and Modest Financial Policy UGI Corp Overview UGI Corp. Stock Performance $ per 60 • UGI Corporation is a holding company that, through its subsidiaries and As of November 19 share affiliates, distributes, stores, transports and markets energy products and Mkt C
Slide 19: V. Financial Overview
V. Financial Overview 29 29
Slide 20: Summary Financial Performance
Summary Financial Performance 1 Revenue ($ in millions) $2,684 $2,651 $2,372 $2,127 $1,862 $1,878 2016 2017 2018 2019 2020 2021 1 Total Margin ($ in millions) $1,053 $1,043 $964 $956 $942 $908 2016 2017 2018 2019 2020 2021 30 1 Source: UGI Corporation SEC filings for UGI International Segment 30
Slide 21: Historical Financial Overview
Historical Financial Overview • Given commodity market volatility and UGI International’s ability to FY Ending September 30 CAGR ($ in millions) pass through the costs of underlying LPG prices to customers, 2019 2020 2021 '19 - '21 Adjusted Total Margin is a more representative measure of the LPG Ga
Slide 22: Conclusion
Conclusion MARKET LEADING POSITIONS DIVERSE PRODUCT HIGHLY EXPERIENCED PORTFOLIO FROM & COMMITTED REGIONALLY MANAGEMENT RECOGNIZED TEAM BRANDS HISTORICALLY SERVING A DIVERSE STRONG PARENT CUSTOMER BASE SUPPORT OPERATING HISTORY OF SOLID STRUCTURE GROWTH SUPPORTS STRONG UNIT MARGINS 32 32
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Slide 24: LPG Distribution Overview: Bulk Gas
LPG Distribution Overview: Bulk Gas In Fiscal Year 2021, UGI International sold approximately 610 million gallons of bulk LPG Products / Customers Bulk Footprint Residential: underground & above-ground tanks, providing energy for: • Single family homes, apartment buildings and town houses, residenti
Slide 25: LPG Distribution Overview: Cylinder Gas
LPG Distribution Overview: Cylinder Gas In Fiscal Year 2021, UGI International sold approximately 150 million gallons of LPG in cylinders Products / Customers Cylinder Footprint LPG sold in different sized steel and composite cylinders, which provide a safe, portable and eco-friendly source of energ
Slide 26: Energy Marketing – Focused Growth
Energy Marketing – Focused Growth • Our primary focus is on Small FY21 GWh by Energy Type FY21 Total (Gas and Power) Volume Split by Segment and Medium Enterprises (SME) • Offer customer-focused 8% 5% solutions 24% • Support customers in energy purchase decisions 33% • Fixed price requirement 76% 54
Slide 27: Income Statement
Income Statement 1 UGI International - Historical Income Statements $MM 2019 2020 2021 Revenues 2,372 2,127 2,651 Costs and expenses: Cost of sales 1,559 1,191 533 Operating and administrative expenses 621 582 664 Operating and administrative expenses - related parties 9 9 11 Depreciation and amorti
Slide 28: Balance Sheet
Balance Sheet 1 UGI International - Historical Balance Sheets $MM 2020 2021 $MM 2020 2021 ASSETS LIABILITIES AND EQUITY Current assets: Current liabilities: Cash and cash equivalents 209 606 Current maturities of long-term debt 1 21 Restricted cash 13 1 Short-term borrowings 1 — Accounts receivable
Slide 29: Cash Flow Statement
Cash Flow Statement 1 UGI International - Historical Cash Flow Statements $MM 2019 2020 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net income including noncontrolling interests 52 137 979 Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activiti
Slide 30: Cash Flow Statement (cont.)
Cash Flow Statement (cont.) 1 UGI International - Historical Cash Flow Statements (Cont.) $MM 2019 2020 2021 CASH FLOWS FROM INVESTING ACTIVITIES Expenditures for property, plant and equipment (106) (89) (107) Acquisitions of businesses, net of cash acquired (43) — — Other, net 6 7 21 Net cash used
Slide 31: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 1 Adj. EBITDA Reconciliation $MM 2019 2020 2021 Net income attributable to UGI International, LLC 52 137 979 + Net income attributable to noncontrolling interests - - - + Income tax 23 37 331 + Interest expense 25 31 27 + D&A 124 125 134 EBITDA 224 330 1,471 1 +/- commodit
Slide 32: Adj. Total Margin Reconciliation
Adj. Total Margin Reconciliation 1 Adj. Total Margin Reconciliation $MM 2019 2020 2021 Total revenue 2,372 2,127 2,651 COGS (1,559) (1,191) (533) LPG cylinder filling costs - (28) - Total margin 813 908 2,118 Net gains on commodity derivative instruments not associated with current-period transactio
Slide 33: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 1 Free Cash Flow Reconciliation $MM 2019 2020 2021 350 384 451 Adjusted EBITDA (106) (89) (107) + Capex FCF 244 295 344 43 1 Includes the effects of rounding 43
Slide 34: UGI West Unit Margins
UGI West Unit Margins ($ & € in thousands, except unit margin) 2012 2013 2014 2015 2016 LPG revenues $1,083,666 $1,244,753 $1,169,610 $942,511 $1,160,013 LPG cost of sales (650,305) (774,097) (727,029) (461,567) (432,429) Total adjusted LPG margin (in 000's USD) $433,361 $470,656 $442,581 $480,944 $