Slide 1: FY 2017 Results and FY 2018 Outlook
FY 2017 Results and FY 2018 Outlook John L. Walsh President & CEO, UGI Kirk R. Oliver Chief Financial Officer, UGI Jerry E. Sheridan President & CEO, AmeriGas 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: FY 2017 Recap
FY 2017 Recap John Walsh John L. Walsh President President & CEO, UGI & CEO, UGI 3
Slide 4: FY17 Recap
FY17 Recap • Adjusted EPS up ~12% y/y as benefits of investments and diversification offset warm weather • Significant progress on portfolio of growth projects • Increased dividend for 30th consecutive year Adjusted EPS FY 17 Weather Versus: Normal UGI Midstream & Gas $2.29 AmeriGas International Ma
Slide 5: Key Accomplishments – Natural Gas
Key Accomplishments – Natural Gas Midstream & Marketing Utility ✓ Completed construction of ✓ Successfully concluded rate Sunbury pipeline under budget case for PNG and ahead of schedule ✓ Implemented new CIS ✓ Completed construction of system that will improve Manning LNG facility; placed customer
Slide 6: Key Accomplishments – Propane
Key Accomplishments – Propane AmeriGas UGI International ✓ ACE and National Accounts ✓ Completed majority delivered record operating of integration results activities with Finagaz ✓ Completed five tuck-in ✓ Acquired energy transactions marketer DVEP in the ✓ Extended average maturities Netherlands a
Slide 7: Financial Review
Financial Review John Walsh Kirk R. Oliver Chief FinancialPresident Officer, UGI& CEO, UGI 7
Slide 8: FY17 Adjusted Earnings
FY17 Adjusted Earnings ($ millions, except per share amounts) FY16 FY17 Net income attributable to UGI Corporation (GAAP) $364.7 $ 436.6 Net gains on commodity derivative instruments1,2,3 (29.9) (51.2) Unrealized losses on foreign currency derivative instruments1 - 13.9 Loss on extinguishments of de
Slide 9: FY17 Results Recap: Adjusted EPS
FY17 Results Recap Strength and diversity of businesses enabled UGI to deliver record earnings $2.50 $0.11 $2.29 Adjusted EPS $0.14 ($0.01) $2.292 $0.01 $(0.01) $2.051 $2.05 Adjusted EPS $0.66 $0.55 UGI Utilities $0.49 $0.50 Midstream & Marketing 1.3% 9.7% 2.2% 2.6% colder colder colder colder $0.74
Slide 10: Financial Results – AmeriGas
Financial Results – AmeriGas Weather versus normal ($ millions) FY16 FY17 colder Adjusted EBITDA $543.0 Retail Margin (5.7) Total margin Wholesale and Other Total Margin 9.3 Adjusted Operating and Administrative Expenses 21.2 FY16 FY17 Other Income and Expense, net (16.5) Adjusted EBITDA $551.3 (15.
Slide 11: Financial Results – UGI International
Financial Results – UGI International ($ millions) FY16 FY17 Weather versus Income Before Taxes $182.0 normal Total Margin (22.8) colder Operating and Administrative Expenses 13.5 Depreciation and Amortization (5.0) Interest Expense 3.8 Other Income and Expense, net 3.5 FY16 FY17 Income Before Taxes
Slide 12: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing ($ millions) FY16 FY17 Weather versus normal Income Before Taxes $ 144.6 colder Total Margin 0.1 Operating and Administrative Expenses (4.7) Depreciation and Amortization (4.8) Other Income and Expenses, net 6.2 FY16 FY17 Income Before Taxes $141.4 (14.5)% (
Slide 13: Financial Results – Utilities
Financial Results – Utilities Gas Utility ($ millions) FY16 FY17 weather versus Income Before Taxes $163.3 normal colder Total Margin 41.7 Operating and Administrative Expenses (19.7) Depreciation and Amortization (5.0) Interest Expense (2.6) FY16 FY17 Other Income and Expense, net 10.4 Income Befor
Slide 14: Outstanding Free Cash Flow
Outstanding Free Cash Flow Free Cash Flow (Total Capex)1 generated over past three years of $1.4 billion $1.4B 11.4% CAGR $0.8B $0.6B $0.3B $0.2B 3 Years Ended 3 Years Ended 3 Years Ended 3 Years Ended 3 Years Ended 1997 2002 2007 2012 2017 1 Cash Flow from Operations less capital expenditures UGI C
Slide 15: AmeriGas FY 2017 Recap
AmeriGas AmeriGas FY 2017 Recap Jerry Sheridan Jerry E. Sheridan President President & & CEO, CEO, AmeriGas AmeriGas 15
Slide 16: AmeriGas FY17 Earnings Recap
AmeriGas FY17 Earnings Recap Adjusted EBITDA • FY17 was 13.5% warmer than normal, 1.3% ($ in millions) colder than prior year $551.2 $551.3 • FY 17 was 3rd warmest year on record, FY 16 $543.0 was 2nd warmest • In 2017, temperatures in the critical heating season of January and February were 9% warm
Slide 17: Growth Drivers and 2018 Outlook
Growth Drivers and 2018 Outlook Growth Initiatives FY 2018 Adjusted EBITDA Guidance National Accounts • Expect Adjusted EBITDA of $650 - $690 million • Delivered record operating results • Currently serving over 43,000 customer • Based on normal weather over 15-year period, locations which is ~3% wa
Slide 18: Standby Equity Commitment Agreement
Standby Equity Commitment Agreement • AmeriGas has entered into a standby equity commitment agreement with UGI Corporation • Provides AmeriGas with ability to issue Class B common units to UGI in exchange for cash o $50 million minimum draws o Up to $225 million in total o Draws available through Ju
Slide 19: FY 2018 Outlook and Q&A
FY 2018 Outlook and Q&A John L. Walsh President & CEO, UGI 19
Slide 20: 2018 Guidance
2018 Guidance $2.75 FY 2018 Earnings Guidance Consistent Earnings $2.65 Adjusted EPS of $2.45 – $2.65 Pattern Historically, on average, ~95% of FY Adjusted $2.50 EPS is generated in the first half of the year $2.45 Percentage of UGI Adjusted EPS $2.29 earned by quarter $2.25 Key Drivers Q1 ~35% ✓ Re
Slide 21: Strong Track Record and Pipeline of Projects
Strong Track Record and Pipeline of Projects $3.05 - $3.401 • Sunbury Pipeline • PennEast Pipeline • Satellite LNG $2.29 • Peaking demand • ACE growth AmeriGas • National Accounts • 28 AmeriGas acquisitions • AmeriGas acquisitions • Added 8,000 ACE locations • Technology deployment • Added over 12,0
Slide 22: Growth Engine Supports Commitments
Growth Engine Supports Commitments Income-producing businesses support disciplined growth objectives by generating cash for growth opportunities and dividends $700-750 million 3% – 4% Free Cash Flow Base Growth (Maintenance Capex)1 + 60% Propane 40%Nat Gas Organic Investment Dividends & Share 3% – 6
Slide 23: Key Growth Drivers
Key Growth Drivers • Marcellus infrastructure gap driving Midstream & Marketing Investment • UGI LNG capacity doubled in past 3 years • Anticipate FERC approval for PennEast • Acquisition of Rockdale gathering system in north central PA is natural extension of our existing midstream assets • Fee-bas
Slide 24: Key Messages
Key Messages • UGI is a balanced growth and income investment • Five Year EPS CAGR of 13% • Five Year Dividend CAGR of 7% • Outstanding cash generation • Anticipated $700 – 750 million of annual cash flow generated, after maintenance capex • Track record of disciplined capital deployment • 15% total
Slide 25: Q&A
Q&A 25
Slide 26: Appendix
APPENDIX 26
Slide 27: UGI Supplemental Footnotes
UGI Supplemental Footnotes • Because we are unable to predict certain potentially material items affecting diluted earnings per share on a GAAP basis, principally mark-to-market gains and losses on commodity derivative instruments and Finagaz integration expenses, we cannot reconcile 2018 adjusted d
Slide 28: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS AmeriGas UGI Midstream & Corporate & Year Ended September 3 0 , 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 $ 436.6 $ 44.6 $ 158.6 $ 86.9 $ 116.0 $
Slide 29: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS Midstream AmeriGas UGI Corporate Year Ended September 3 0 , 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 $ 364.7 $ 43.2 $ 111.6 $ 87.1 $ 97.4 $
Slide 30: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS Year Ended September 30, 2012 (Millions of dollars, except per share amounts) Adjusted net inc ome attributable to UGI Corporation: Net income attributable to UGI Corporation $ 210.2 Net gains on commodity derivative instruments not associated with current-period (8.9
Slide 31: AmeriGas Supplemental Footnotes
AmeriGas Supplemental Footnotes • Because we are unable to predict certain potentially material items affecting net income on a GAAP basis, principally mark-to-market gains and losses on commodity derivative instruments, we cannot reconcile 2018 Adjusted EBITDA, a non-GAAP measure, to net income att
Slide 32: AmeriGas EBITDA and Adjusted EBITDA
AmeriGas EBITDA and Adjusted EBITDA (Millions of dollars) Year Ended September 30, 2017 2016 EBITDA and Adjusted EBITDA Net income attributable to AmeriGas Partners $ 162.1 $ 207.0 Income tax expense (benefit) 2.0 (1.6) Interest Expense 160.2 164.1 Depreciation 147.7 146.8 Amortization 42.8 43.2 EBI
Slide 33: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 3 Years 3 Years 3 Years Year Ended September 30, 1995 1996 1997 Ended 1997 2000 2001 2002 Ended 2002 2005 2006 2007 Ended 2007 ($ in millions) Cash Flow from Operations 76.8 111.2 172.0 360.0 132.7 203.5 247.5 583.7 437.7 279.4 456.2 1173.3 Less: Capital Expenditures 68
Slide 34: Consistent Earnings Pattern
Consistent Earnings Pattern Historically, on average, ~95% of FY Adjusted EPS is generated in the first half of the year 2017 2016 2015 2014 2013 70% 60% 50% 40% 30% 20% 10% 0% -10% Q1 Q2 Q3 Q4 Average ~35% ~60% ~5% ~0% UGI Corporation | Fiscal 2017 Results 34
Slide 35: Investor Relations
Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com 35