Slide 1: Fiscal Year 2016 Results FY17 Outlook
Fiscal Year 2016 Results FY17 Outlook John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry 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: 2016 Fiscal Year Recap
2016 Fiscal Year Recap John Walsh President & CEO, UGI 3
Slide 4: FY16 Earnings Recap
FY16 Earnings Recap • Record earnings despite very warm Adjusted EPS1 weather $2.50 • Significant contributions from growth initiatives $2.00 • Marcellus infrastructure projects $2.01 $2.05 • Strong results from Finagaz $1.50 Fiscal Year Weather UGI Midstream & Gas AmeriGas France Marketing Utility
Slide 5: AmeriGas fiscal 2016 vs. fiscal 2012
Fiscal 2016 vs. Fiscal 2012 Comparable weather… …64% higher Adjusted EPS1 10.0% $2.50 Heating Degree Days versus Normal2 $2.05 $2.00 FY12 FY16 0.0% AMERIGAS GAS UTILITIES GAS UTILITIES UGI FRANCE UGI FRANCE AMERIGAS $1.50 $1.25 $1.00 -6.4% -10.0% $0.50 -13.6% -13.9% -15.4% -15.0% -15.9% $- -20.0% FY
Slide 6: Fiscal 2017 Guidance
Fiscal 2017 Guidance $2.80 Adjusted Earnings Per Share1 FY17 Guidance midpoint: $2.30 – $2.451 • 16% CAGR over FY16 • 10% CAGR over FY13 $2.20 $2.02 $2.01 $2.05 Key Drivers Organic Growth $1.61 $1.60 Strategic Investments Return to normal weather and volatility $1.00 2013 2014 2015 FY16 FY17 G
Slide 7: FY16 Key Accomplishments – Natural Gas
FY16 Key Accomplishments – Natural Gas Midstream & Marketing Utility • Sunbury pipeline: Began construction; • Successful $27 mm base rate case for UGI anticipate completion in FY17 Gas • Manning LNG liquefaction: Began • Executed a record amount of capital construction; anticipate completion in FY1
Slide 8: FY16 Key Accomplishments – Propane
FY16 Key Accomplishments – Propane AmeriGas International • Expanded all of our growth platforms • Earnings more than doubled on • M&A strength of Finagaz acquisition • National Accounts • Smaller acquisitions in Norway, U.K. and Austria • ACE • Agreements with major retailers that • Finagaz integra
Slide 9: Financial Review
Financial Review Kirk Oliver Chief Financial Officer, UGI 9
Slide 10: FY16 Adjusted Earnings
FY16 Adjusted Earnings FY FY 2016 2015 Net income attributable to UGI Corporation $364.7 $281.0 Net after-tax gains (losses) on commodity derivative instruments1,2 (29.9) 53.3 Integration and acquisition expenses associated with Finagaz 17.3 14.9 Loss on extinguishments of debt2,3 7.9 4.6 Adjusted n
Slide 11: FY16 Financial Results – AmeriGas
FY16 Financial Results – AmeriGas FY FY Weather (millions) 2015 2016 FY15 Adjusted EBITDA $ 619.2 Colder Retail Volume $ (136.3) Total Weather vs. Normal Retail Unit Margin $ 44.4 Margin Wholesale and Other Total Margin $ (6.4) Operating and Administrative Expenses $ 24.5 Other $ (2.4) FY16 Adjusted
Slide 12: FY16 Financial Results – UGI International
FY16 Financial Results – UGI International FY FY UGI France (millions) 2015 2016 FY15 Income Before Taxes $ 76.4 Colder Total Margin $ 276.5 Operating and Administrative Expenses $ (146.0) Weather vs. Normal Depreciation and Amortization $ (25.5) Interest Expense, including loss on $ 10.8 extinguish
Slide 13: FY16 Financial Results – Midstream & Marketing
FY16 Financial Results – Midstream & Marketing FY FY (millions) 2015 2016 Weather FY15 Income Before Taxes $ 180.5 Colder Total Margin $ (44.6) Operating and Administrative Expenses $ 7.7 Weather vs. Normal Depreciation and Amortization $ (2.6) Other $ 3.6 FY16 Income Before Taxes $ 144.6 • Lower pr
Slide 14: FY16 Financial Results – Utilities
FY16 Financial Results – Utilities FY FY (millions) 2015 2016 Gas Utility FY15 Income Before Taxes $ 200.6 Colder Total Margin $ (51.3) Operating and Administrative Expenses $ 25.6 Weather vs. Normal Depreciation and Amortization $ (3.8) Interest Expense $ 3.5 Other Income and Expense, net $ (11.3)
Slide 15: Strong Cash Flow and Balance Sheet
Strong Cash Flow and Balance Sheet Weather vs. Cash Flow From Normal Operations 20% $1.2B $1200MM 15% • Strong and consistent cash flow despite fluctuations of 10% $600MM weather $0.6B 5% • Strong balance sheet with capacity 0% $0 $0MM • No need to access the capital -5% markets in the near term -10
Slide 16: Fiscal Year Recap
Fiscal Year Recap Jerry Sheridan President & CEO, AmeriGas 16
Slide 17: FY16 Adjusted EBITDA
FY16 Adjusted EBITDA1 $700 Retail volumes sold for FY16 $619 decreased 10% to 1.07 billion $600 gallons from 1.18 billion $543 gallons in the prior year $500 2nd warmest year in 121 years $400 $300 $200 $100 $0 FY15 FY16 1 Adjusted EBITDA is a non-GAAP measure. See appendix for reconciliation. 1
Slide 18: Growth Initiatives
Growth Initiatives National Accounts Added 39 accounts and renewed 40 agreements AmeriGas Cylinder Exchange Added new business that represents sales of ~ 1 million cylinders M&A Closed six tuck-in acquisitions adding ~10 million gallons annually 18
Slide 19: Continuing to Deliver Value
Continuing to Deliver Value 12th consecutive annual distribution increase Outstanding total unitholder returns: Annualized Total Returns 1 Year 5 Year 10 Year 19.8% 8.8% 12.2% Looking ahead we expect adjusted EBITDA of $660 – $700 million in FY171 1 Because we are unable to predict certain pot
Slide 20: Conclusion
Conclusion John Walsh President & CEO, UGI 20
Slide 21: Segment Outlook
Segment Outlook MIDSTREAM MIDSTREAM & & MARKETING MARKETING UGI UTILITIES • Demand and limited capacity additions will • Capex nearly tripled from FY11- continue to stress the gas system FY16 • Sunbury and PennEast will help bridge the • Expect capital spend over next 4 infrastructure gap years will
Slide 22: Conclusion
Conclusion Outlook is very promising Several investments that came online in past 18 months will contribute to earnings Cash flow and balance sheet strength to fund active projects with additional capacity for investment UGI IS CONTINUING TO DELIVER 22
Slide 23: Appendix
UGI CORPORATIO Appendix
Slide 24: UGI Supplemental Footnotes
UGI Supplemental Footnotes Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share“ (sometimes also referred to as “adjusted earnings per share”), both of which are non-GAAP financial measures, when evaluating UGI's overall performance. Adjusted net incom
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended September 30, (Million of dollars, except per share amounts) 2016 2015 2014 2013 2012 NON-GAAP RECONCILIATION: Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 364.7 $ 281.0 337.2 $ 278.1 210.2 Net (gains) losses on
Slide 26: 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 27: AmeriGas Adjusted EBITDA
AmeriGas Adjusted EBITDA (Millions of dollars) Year Ended September 30, EBITDA and Adjusted EBITDA: 2016 2015 Net income attributable to AmeriGas Partners $ 207.0 $ 211.2 Income tax (benefit) expense (a) (1.6) 2.9 Interest expense 164.1 162.8 Depreciation 146.8 152.2 Amortization 43.2 42.7 EBITDA 55
Slide 28: AmeriGas Adjusted EBITDA Guidance
AmeriGas Adjusted EBITDA Guidance Forecast Fiscal Year Ending September 30, 2017 (Thousands) (Low End) (High End) Adjusted EBITDA (estimate) $ 660,000 $ 700,000 Interest expense (estimate) 160,000 159,000 Income tax expense (estimate) 3,000 3,000 Depreciation (estimate) 141,000 141,000 Amortization
Slide 29: Investor Relations
Investor Relations: Will Ruthrauff 610-456-6571 29 ruthrauffw@ugicorp.com