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Ugi wells fargo-december_2017_v_final

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The document provides an overview of UGI Corporation, which distributes energy products including natural gas, propane, butane, and electricity. It discusses UGI's strategy of capitalizing on synergies across its businesses to grow earnings through acquisitions, capital projects, and organic growth. Key takeaways include UGI delivering outstanding shareholder returns through 6-10% annual EPS growth and a 4% annual dividend growth rate, with a track record of disciplined capital deployment and strong free cash flow generation. Business segments like UGI Utilities and UGI Energy Services are positioned for continued growth through infrastructure investments and opportunities from the Marcellus Shale.

Investor Relations
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Wells Fargo Pipeline, MLP and Utility Symposium December 2017
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 control. You should read UGI’s Annual Report on Form 10-K for a more extensive list of factors that could affect results. Among them are adverse weather conditions, cost volatility and availability of all energy products, including propane, natural gas, electricity and fuel oil, increased customer conservation measures, the impact of pending and future legal proceedings, liability for uninsured claims and for claims in excess of insurance coverage, domestic and international political, regulatory and economic conditions in the United States and in foreign countries, including the current conflicts in the Middle East, and foreign currency fluctuations (particularly the euro), changes in Marcellus Shale gas production, the availability, timing and success of our acquisitions, commercial initiatives and investments to grow our business, our ability to successfully integrate acquired businesses and achieve anticipated synergies, and the interruption, disruption, failure, malfunction, or breach of information technology systems, including due to cyber attack. UGI undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today. In addition, this presentation uses certain non-GAAP financial measures. Please see the appendix for reconciliations of these measures to the most comparable GAAP financial measure. 2UGI Corporation | Investor Overview
UGI Corporation is a distributor and marketer of energy products and services including natural gas, propane, butane, and electricity LPG ~50% of earnings1 • Domestic Propane AmeriGas (MLP, own 26%) #1 LPG distributor in the U.S.2 • International LPG UGI International Premier LPG distributor in Europe, energy marketer in France, Belgium, the Netherlands, and the U.K. 3 Corporate Overview Natural Gas ~50% of earnings1 •Utilities UGI Utilities Natural gas & electric utilities in Pennsylvania and Maryland •Midstream & Marketing Energy Services Energy marketing, midstream, and power generation in the Eastern U.S. 1 Based on Adjusted diluted earnings per share, which is a non-GAAP measure, excluding Corporate & Other. See appendix for reconciliation. 2 Largest retail propane distributor in U.S. based on volume. UGI Corporation | Investor Overview
Key Takeaways • We deliver outstanding returns to our shareholders • We are a balanced growth and income investment • 6-10% EPS Growth • 4% Dividend Growth • Excellent cash generation; 11% CAGR of free cash flow1 since 1997 • Track record of disciplined capital deployment • Our portfolio of growth opportunities has never been stronger 4 1 Three years ended 9/30/17 compared to three years ended 9/30/97; Free cash flow is a non-GAAP measure. See appendix for reconciliation. UGI Corporation | Investor Overview
Our Strategy 5 Be the preferred provider in all markets • Build businesses of scale • Leverage our position as the last link in energy distribution • Protect and enhance our brands 1 Capitalize on synergies and leverage strengths • Leverage successful programs and services across the corporation • Expand further into midstream • Seek new international markets 2 Grow earnings through acquisitions, capital projects, and organic growth • Organic growth sets the foundation • Invest in adjacent geographies, leveraging our experience and products • Manage risk when investing in new area or product • Focus on cash flow, limit commodity exposure and execute 3 UGI Corporation | Investor Overview
Dividends & Share Repurchase $210 – 230 million Income-producing businesses support disciplined growth objectives by generating cash for growth opportunities and dividends Organic Investment & M&A $490 – 520 million + 3% – 4% Base Growth 3% – 6% Incremental Growth $700-750 million Free Cash Flow (Maintenance Capex)1 60% Propane 40%Nat Gas 6% - 10% EPS Growth Investment Drives Incremental Growth 4% Dividend Growth 5 Year Actual: 7%5 Year Actual: 13% Our Commitments to Investors Growth Engine Supports Commitments 1 Cash Flow from Operations less Maintenance Capital from wholly-owned operations, plus AmeriGas dividends to UGI Corporation. Note: All figures represent multi-year average targets.UGI Corporation | Investor Overview
How Have We Executed on Strategy? • Successfully invested $9.1 billion from 2000-2017 to build our current business portfolio • Expanded our legacy businesses – Utilities and AmeriGas • Rapidly grew two major business units – Energy Services and UGI International • Strong financial attributes of UGI’s business contributed to superior financial results • FY2013A – FY2018 Guidance1 adjusted EPS CAGR of 9.6%2 • Twenty year (1997-2017) free cash flow CAGR of 11.4%2,3 • 10 & 20-year average total shareholder returns of 13.7% and 15.0%, respectively, for periods ending 9/30/17. 7 2Adjusted earnings per share and free cash flow are non-GAAP measures. See appendix for reconciliation. 3 Three year numbers to smooth the impact of weather. See appendix for reconciliation. UGI Corporation | Investor Overview 1 Based on midpoint of FY 2018 guidance range of $2.45 – $2.65. 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 diluted earnings per share, a non-GAAP measure, to diluted earnings per share, the most directly comparable GAAP measure, in reliance on the “unreasonable efforts” exception set forth in SEC rules.
UGI Has Consistently Outperformed Total Shareholder Return as of 9/30/17 8UGI Corporation | Investor Overview 0% 5% 10% 15% UGI S&P 500 Utilities S&P 400 Midcap S&P 500 3 Year Total Return 0% 5% 10% 15% 20% 25% UGI S&P 500 Utilities S&P 400 Midcap S&P 500 5 Year Total Return 0% 5% 10% 15% UGI S&P 500 Utilities S&P 400 Midcap S&P 500 10 Year Total Return 0% 5% 10% 15% 20% UGI S&P 500 Utilities S&P 400 Midcap S&P 500 20 Year Total Return
Outstanding Free Cash Flow $0.2B $0.3B $0.6B $0.8B $1.4B 3 Years Ended 1997 3 Years Ended 2002 3 Years Ended 2007 3 Years Ended 2012 3 Years Ended 2017 Free Cash Flow (Total Capex)1 generated over past three years of $1.4 billion 11.4% CAGR 1 Cash Flow from Operations less capital expenditures Free Cash Flow is a non-GAAP measure. See appendix for reconciliation. UGI Corporation | Investor Overview
$1.75 $2.00 $2.25 $2.50 $2.75 FY 2017 UGI Utilities Midstream & Marketing UGI International AmeriGas FY 2018 2018 Guidance Consistent Earnings Pattern Historically, on average, ~95% of FY Adjusted EPS is generated in the first half of the year Key Drivers  Return to normal weather  PNG Rate Case, customer additions  Full year Sunbury contract, Manning and Steelton LNG  2017 European acquisitions and Finagaz synergies  ACE and National Accounts growth, M&A, use of technology to reduce costs Adjusted EPS of $2.45 – $2.65 $2.45 $2.65 $2.29 Q1 ~35% Q2 ~60% Q3 ~5% Q4 ~0% FY 100% Percentage of UGI Adjusted EPS earned by quarter FY 2018 Earnings Guidance Adjusted EPS is a non-GAAP measure. See appendix for reconciliation of 2017 Adjusted EPS. 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 derivative instruments and Finagaz integration expenses, we cannot reconcile 2018 Adjusted EPS to diluted EPS, the most comparable GAAP measure. UGI Corporation | Investor Overview
2012 2017 2021 Strong Track Record and Pipeline of Projects $3.05 - $3.401 $2.29 • Sunbury Pipeline • PennEast Pipeline • Satellite LNG • Peaking demand • ACE growth • National Accounts • AmeriGas acquisitions • Technology deployment • International marketing • DVEP Acquisition • Totalgaz Italia Acquisition • Utility customer growth • PNG rate case • DSIC Recovery • >$1 billion Utility capex • 82,000+ New Utility residential heating and commercial customers • Over $1.1 billion in Utility capital investment • Auburn Pipeline System • Uniondale Pipeline • Temple LNG • Manning LNG • 28 AmeriGas acquisitions • Added 8,000 ACE locations • Added over 12,000 National Accounts locations • Finagaz acquisition • BP Poland acquisition • IDRs $1.25 UGI International Midstream & Marketing UGI Utilities AmeriGas UGI International Midstream & Marketing UGI Utilities AmeriGas 1 Estimated using midpoint of FY 2018 guidance range , growing at long-term EPS growth expectation of 6%-10%.UGI Corporation | Investor Overview
Midstream & Marketing • Anticipating over 50% fee-based margin by 2020 • Increased peak day requirements driving opportunities for fixed-fee peaking services • Pipeline contracts with take or pay provisions replace volatility-based capacity margin AmeriGas • ACE cylinder business is counter-seasonal • National account volumes less correlated with weather • Geographic diversity mitigates regional weather risk Utility • Increasing fixed customer charges in base rate cases • Recovery through reconcilable riders • Adding commercial and industrial customers with higher base usage International • Geographic diversity mitigates regional weather risk • Cylinder business supports non-heating home usage • Industrial volumes not impacted by weather 12 Reducing Weather Dependence UGI Corporation | Investor Overview
Ugi wells fargo-december_2017_v_final
UGIUtilities Business Overview 14 Most contemporary distribution system in Pennsylvania Pennsylvania’s 2nd Largest gas utility1 serving 45 of 67 counties in PA ~635,000Gas customers ~62,000 Electric customers Service territories lie within or adjacent to the Marcellus shale reserves 80,000new customers in the last 5 years Added Constructive regulatory environment 1 Based on total customers.UGI Corporation | Investor Overview
UGIUtilities Key Value Drivers • Strong focus on safety, operations and reliability • Opportunities for growth and aggressive cost management result in 5-7% annual net income growth • Record capital investment • Increasing system reliability • Supporting growth • Growing rate base • Constructive regulatory environment • Strong balance sheet 15UGI Corporation | Investor Overview
UGIUtilities Marcellus Advantage • Over 80% of UGI Utilities natural gas sourced from the Marcellus Shale • Added three power plant customers since 2010 • Combined generation capacity of >2,000 MWs • Fourth scheduled in 2018 (~1,400 MWs) • Favorable environment for economic development • Added an average of 16,500 new residential heating and commercial customers over the past 5 years 16 Natural Gas Electric Marcellus Shale Area UGI Corporation | Investor Overview
UGIUtilities Marcellus Gas Driving Growth in PA 171 Source: Energy Information AdministrationUGI Corporation | Investor Overview 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Natural Gas Delivered to Consumers in PA 0 100,000 200,000 300,000 400,000 500,000 600,000 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 PA Natural Gas Deliveries to Electric Power Customers Residential: -0.7% Non-Residential: 0.9% 1998-2006 0.3% CAGR 1998: 30,240 MMCF 2016: 500,656 MMCF
UGIUtilities Increasing Capital Investment 18UGI Corporation | Investor Overview $0 $50 $100 $150 $200 $250 $300 $350 2013 2014 2015 2016 2017 2018E Capital Spend ($MM) Replacement and Betterment Growth Other Electric IT
UGIUtilities • Reducing regulatory lag: • Fully Projected Future Test Year • Distribution System Improvement Charge (DSIC) • Nearly 65% of FY18 investment begins recovery within 12 months • Additional programs drive growth • Technology and Economic Development Rider • Growth Extension Tariff • Energy Efficiency & Conservation 19 Investment Creating Value UGI Corporation | Investor Overview 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2012 2013 2014 2015 2016 2017 2018 Rate Base ($ Billions) E
UGIUtilities Total Customer Growth 20 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 New Homes Conversions Upgrades Commercial AnnualCustomerAdditions UGI Corporation | Investor Overview
UGIUtilities Positioned for Continued Growth • Added over 14,000 new residential heating and commercial customers in 2017 • Growth Opportunities • ~ 350,000 conversion prospects remain near gas mains • GET Gas program enables growth in underserved areas • ~$55 million 2018 growth capital budget • Pre-2015 average annual spend was $40 million • New Technologies / Future Demand • Combined Heat and Power (“CHP”) Projects • Natural Gas Vehicle (“NGV”) fueling stations • Large potential industrial customers on deck 21UGI Corporation | Investor Overview
Ugi wells fargo-december_2017_v_final
UGIEnergyServices Business Overview 23 131 Bcf natural gas marketing in 39 LDCs 241 Miles of pipeline (operating or in development) 15 Bcf of natural gas storage ~2 Bcf LNG and propane storage used to support liquefaction and vaporization peak shaving Marketing Midstream Generation ~671,000 MWhs in 20EDCs ~256.5 MWs of electric generation capacity UGI Corporation | Investor Overview
UGIEnergyServices • Extending our Marcellus asset network with attractive new capital projects • Broad range of investment opportunities • Increasing fee-based revenue through peaking and pipeline capacity contracts • Strong track record for project execution • Well positioned to serve growing natural gas demand • Growth initiatives support an 8-10% annual net income growth rate 24 Key Messages Marcellus Shale UGI Corporation | Investor Overview
UGIEnergyServices Midstream Assets Overview 25UGI Corporation | Investor Overview LNG Peaking: • Temple LNG (205,000 Dth/day vaporization, 1.25 BCF storage) • Manning liquefaction (10,000 Dth/day) • Steelton vaporization (65,000 Dth/day) Pipelines: • Auburn system (470,000 Dth/day) • Sunbury pipeline (200,000 Dth/day) • Union Dale (100,000 Dth/day) • PennEast pipeline (1 Bcf/day) Storage: • 15 Bcf natural gas storage
UGIEnergyServices Acquisition of Rockdale Midstream Assets 26UGI Corporation | Investor Overview Announced acquisition of midstream assets from Rockdale Marcellus, LLC on 11/1/17 • Midstream system in northern/central Pennsylvania • >60 miles of gathering lines, with dehydration, compression, and multiple interconnects to downstream pipelines • Received dedication of >1 Tcf of gas to be produced from approximately 42,000 acres • Complements existing assets of gas storage, Auburn gathering system, and recently-completed Sunbury Pipeline, as well as LNG liquefaction and storage • Enhances in-field gathering, short-haul infrastructure, and to lesser extent, long-haul FERC- regulated infrastructure opportunities • Potential for significant expansions to move production from other producers adjacent to the system • Expected to be immediately accretive and reach $0.04 accretion by year three
UGIEnergyServices $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Margin1(in000s) Commodity Marketing Midstream Generation HVAC Sustainable Business Growth 27 11% colder than normal winter 12% colder than normal winter 21% warmer than normal winter 1Margin is a non-GAAP measure. See appendix for reconciliation. Increasing midstream margin drives overall growth 22% warmer than normal winter UGI Corporation | Investor Overview 15% warmer than normal winter
UGIEnergyServices $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Natural Gas Retail Power Commodity Marketing Consistent, disciplined approach results in steady margin growth through numerous disruptive events 28 22% warmer than normal winter Polar Vortex 11% colder than normal winter Commodity spike Total margin is a non-GAAP measure. See appendix for reconciliation. 21% warmer than normal winter Enron Collapse Katrina/ Rita TotalMargin(000s) UGI Corporation | Investor Overview
UGIEnergyServices Increasing Fee-based Income 29 35% 46% 19% Historical Fee-Based Margin 39% 1Margin is a non-GAAP measure. See appendix for reconciliation of 2013 total margin. 2013 Margin Composition1 Anticipated 2021 Margin Composition 18% 76% 6% Anticipated Fee-Based Margin 56% Commodity Margin Generation MarginMidstream Margin UGI Corporation | Investor Overview
UGIEnergyServices Capitalizing on Infrastructure Gap 30 Well positioned in capacity constrained areas: • Natural Gas Storage • Auburn • Uniondale • LNG Peaking and Trucking • Capacity Management Participating in infrastructure build-out: • Sunbury • PennEast UGI Corporation | Investor Overview
Ugi wells fargo-december_2017_v_final
AmeriGas Largest propane distributor in U.S.1 32 Business Overview UGI Corporation | Investor Overview Over 1.8 MM Customers ~1.1 BN Retail gallons sold Over 50,000 Cylinder exchange retail locations Operations in all 50 States ~8,100 Employees 1 Based on volume of propane gallons distributed annually.
AmeriGas 33 Business Overview UGI Corporation | Investor Overview 37% Residential Heating & Cooking 38% Commercial / Industrial 8% Agriculture & Transport 17% Motor Fuel Represents approximate percentages of retail gallons sold
AmeriGas • Unmatched geographic coverage across all 50 states • Significant scale enables deployment of technology advancements • Scale enables growth programs (ACE and National Accounts) • Significant transportation and logistics assets • Tested formula for successful acquisitions • Demonstrated ability to manage margins 34 Competitive Advantages UGI Corporation | Investor Overview
AmeriGas Recent Key Accomplishments • National Accounts delivered record operating results • Currently serving over 43,000 customer locations • ACE business also delivered record operating results • Volume up over 8% compared to FY16 • Over 50,000 distribution points • Completed 5 acquisitions adding ~6 million gallons in FY17 • Increased distribution for 13th consecutive year in April 2017 • Completed refinancing of all long-term debt, lowering rates by more than 100 basis points 35UGI Corporation | Investor Overview
AmeriGas 36 Unmatched Nationwide Footprint UGI Corporation | Investor Overview Districts Storage Terminals Field Service Center
AmeriGas Most flexible, reliable supply chain coverage in the retail propane industry Ability to quickly focus flexible truck, rail and trans-loading assets to areas in need 37 Significant Transportation and Logistics Network UGI Corporation | Investor Overview 10 Transflow Units ~510 Rail Cars ~3,100 Bobtail Trucks 21 Terminals ~1.8 Million Customers ~1,900 Distribution Locations Over 250 Propane Suppliers(a) 940 PTI Trailers (a) Domestic and international suppliers.
AmeriGas Investments in technology reduce operational costs while improving the customer experience 38 Technology Investments Across a Broad Platform UGI Corporation | Investor Overview AmeriMobile • Real-time field communication AmeriGas.com • Online bill pay • Will-call orders District Tools • Real-time key performance indicators Networked Call Centers • Re-route calls based on volume • 24/7 Emergency Call Center
AmeriGas Key Financial Objectives • 3% - 4% growth in EBITDA over the long-term • Enhance credit metrics targeting leverage ratios in the range of 3.5x – 4.0x • Use access to capital markets judiciously - fund all maintenance, growth and acquisition expenditures through internally generated cash flow • Distribution growth in line with EBITDA growth and targeting 1.1x to 1.2x distribution coverage 39Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) is a non-GAAP measure. See appendix for reconciliation. UGI Corporation | Investor Overview
AmeriGas 40 Key Drivers of Growth UGI Corporation | Investor Overview ACE Cylinder Exchange 2-3% Growth National Accounts 6-7% Growth Acquisitions $5-6 MM Annual EBITDA Addition Structural Conservation offset by: Technology Enhancements Margin Management Customer Retention 3-4% Annual EBITDA Growth
AmeriGas • Unparalled footprint (~1,900 distribution locations, 50 states) • 38 Accounts added in FY17 • Best in class “back office” • Largest sales force in the industry • Geographic diversity • Generally less weather sensitive than residential business 41 National Accounts Program UGI Corporation | Investor Overview Serving over 43,000Customer Locations
AmeriGas • Counter seasonal due to summer grilling demand • Product of convenience • Platform grows as U.S. retailers expand • Highly targeted marketing programs 42 Cylinder Exchange Program UGI Corporation | Investor Overview 33 Cylinder refurbishment centers nationwide distribution points Over 50,000
AmeriGas • Hallmark of the Company’s growth history • Highly fragmented market, over 3,500 acquisition opportunities • Dedicated corporate development team with relationship building as a core competency • Unmatched operational synergy opportunities due to nationwide footprint • 11 acquisitions in last two years 43 Growth Through Acquisitions UGI Corporation | Investor Overview acquisitions since the early 1980s ~200 1987 1993 2001 2012
AmeriGas 44 Unit Margin Management UGI Corporation | Investor Overview $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Avg.Mt.BelvieuCost PropaneUnitMargins Avg. Mt. Belvieu Cost Propane Unit Margins Track record of unit margin growth in all cost environments Unit margin is a non-GAAP measure. See appendix for reconciliation.
AmeriGas 45 Adjusted EBITDA Growth UGI Corporation | Investor Overview $0 $100 $200 $300 $400 $500 $600 $700 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018G Adjusted EBITDA1 2 Assumes 15-year normal weather. Adjusted EBITDA is a non-GAAP measure. See appendix for reconciliation. 1 Includes impact of Heritage acquisition completed in 2012. (2%) 3% 4% 5% 5% (13%) 1% 0%10% (12%) (11%) Weather vs. Normal2
AmeriGas 46 13th Consecutive Year of Increasing Distributions UGI Corporation | Investor Overview $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Annualized Year-End Distributions Per Unit
AmeriGas 47 Refinancing Strengthened Balance Sheet Debt Maturity Extended and Coverage Improved BEFORE: AFTER:Avg. maturity: 4.7 years Avg. interest rate: 6.73% Avg. maturity: 8.7 years Avg. interest rate: 5.65% $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2017 2019 2020 2021 2022 2023 2024 2025 2026 2027 6.25% due May 2019 6.75% due May 2020 6.50% due May 2021 7.00% due May 2022 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5.625% due May 2024 5.500% due May 2025 5.875% due Aug 2026 5.75% due May 2027 ($ in millions)($ in millions) UGI Corporation | Investor Overview
AmeriGas -50 0 50 100 150 200TotalReturn% AmeriGas Alerian S&P 500 48 Outperformance Over the Long-Term UGI Corporation | Investor Overview CAGR Total Unitholder Return as of 9/30/17 1 Year 3 Year 5 Year 10 Year AmeriGas 6.8% 7.9% 8.9% 10.4% Alerian -3.7% -12.9 -0.5% 6.4% S&P 500 18.6% 10.8% 14.2% 7.4%
Ugi wells fargo-december_2017_v_final
UGIInternational Business Overview 50 ~500,000 Customers Nearly 828 million retail gallons sold in FY17 ~38,000 Retail outlets selling LPG cylinders Operations in 17 Countries 15 Languages ~3,000 Employees Over 18.5 million Cylinders in circulation UGI Corporation | Investor Overview
UGIInternational UGI International Timeline 51UGI Corporation | Investor Overview 27 transactions since 1999 1999 Austria Czech Republic Slovakia 2001 France 2006 Hungary Poland Romania 2010Denmark 2011 Belgium Finland Luxembourg Norway Sweden Netherlands United Kingdom 2017 Italy 2017: 828mm gallons 1999: ~44mm gallons $0.88 FY 17 Adjusted EPS 1999 2001 (20%) 2004 (100%) 2010 2011 2015 2017 2017 Adjusted EPS is a non-GAAP measure. See appendix for reconciliation. 2004 Switzerland
UGIInternational Key Messages • International segment managed as one company with strong local presence • Successful ability to identify and integrate quality assets • Strong operational cash flow • Track record for margin management • Growth and integration strategies yield 5% to 8% earnings growth • Heating oil to LPG conversion • Energy marketing • Operational effectiveness and delivery of synergies • Opportunities for additional acquisitions 52UGI Corporation | Investor Overview
UGIInternational Serving a Diverse Customer Base 53 75% 21% 4% FY17 Volume by Segment Bulk Cylinder Auto Gas 55% 32% 5% 4% 4% FY17 Volume by Segment Commercial & Industrial Residential Agricultural Autogas Aerosol UGI Corporation | Investor Overview
UGIInternational Track Record of Margin Management 54 0.00 € 0.25 € 0.50 € 0.75 € 1.00 € 1.25 € 1.50 € 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 UGIFrance€perGallon Avg. Platt's Cost LPG Unit Margins Unit margin is a non-GAAP measure. See appendix for reconciliation.UGI Corporation | Investor Overview
UGIInternational Growth Beyond LPG • Natural Gas Marketing • Grown business from scratch over last five years • Leverage sales force and best practices to double the existing business over the next five years • Recently announced acquisition of Dutch energy marketer DVEP • Expected to be $0.02 accretive to UGI in 2018 • LNG Distribution • Assessing LNG distribution opportunities as market evolves • Longer term business objective • Focus on U.K. and Nordic countries • Motor fuel and marine markets are attractive 55UGI Corporation | Investor Overview
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 shareholder return over past 20 years driven by accretive investments UGI Corporation | Investor Overview
APPENDIX
$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AnnualizedYear-End DividendsperShare $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E AnnualEarningsperShare UGI Corporation | Investor Overview Strong EPS and Dividend Growth 58 12.0% CAGR Above 6-10% Long-Term Target Dividends adjusted for stock splits. EPS for 1999 – 2009 represents GAAP EPS, adjusted for stock splits. EPS for 2010-2017 represents Adjusted EPS which is a non-GAAP measure. See appendix for reconciliation. 6.0% CAGR Above 4% Long-Term Target
UGI Corporation Adjusted Earnings Per Share 59UGI Corporation | Investor Overview Year Ended September 30, (Million of dollars, except per share amounts) 2010 2011 2012 2013 2014 2015 2016 2017 NON-GAAP RECONCILIATION: Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 251.8 $ 245.4 $ 210.2 278.1$ $ 337.2 281.0$ 364.7$ 436.6$ Net (gains) losses on commodity derivative instruments not associated with current-period transactions (net of tax of $(5.8), $11.5, $6.3, $3.1, $(4.5), $(30.9), $13.5, $31.9 respectively) (a) (b) 8.2 (17.4) (8.9) (4.3) 6.6 53.3 (29.9) (51.2) Integration and acquisition expenses associated with Finagaz acquired on May 29, 2015 (net of tax of $0, $0, $0, $0, $(2.2), $(7.7), and $(10.6),$(13.7) respectively) (a) - - - - 4.3 14.9 17.3 26.2 Unrealized losses on foreign currenct derivative instruments (net of tax of $(9.9)) (a) 13.9 Loss on extinguishments of debt (net of tax of $0, $0, $(1.4), $0, $0, $0, and $(5.0),$(6.1) respectively) (a) - - 2.2 - - - 7.9 9.6 Impact from change in French tax rate (29.0) Costs associated with extinguishment of debt (net of tax of $0, $(6.6), $0, $0, $0, $(5.7), and $0, respectively) (a) (c) - 10.4 - - - 4.6 - Impact of retroactive change in French tax law - - - - 5.7 - - Integration and acquisition expenses associated with the retail propane businesses of Energy Transfer Partners, L.P. (“Heritage Propane”) acquired by the Partnership on January 12, 2012 (net of tax of $0, $0, $(5.6), $(2.8), $0, $0, and $0, respectively) (a) - - 8.8 4.4 - - - Gain on sale of Atlantic Energy (net of tax of $19.3 in 2010) (17.2) Adjusted net income attributable to UGI Corporation (d) 242.8$ 238.4$ 212.3$ 278.2$ 353.8$ 353.8$ 360.0$ 406.1$ Adjusted earnings per common share attributable to UGI stockholders: UGI Corporation earnings per share - diluted 1.52$ 1.45$ 1.24$ 1.60$ 1.92$ 1.60$ 2.08$ 2.46$ Net (gains) losses on commodity derivative instruments not associated with current-period transactions (b) 0.05 (0.10) (0.05) (0.02) 0.04 0.30 (0.17) (0.29) Integration and acquisition expenses associated with Finagaz acquired on May 29, 2015 - - 0.03 0.08 0.10 0.15 Unrealized losses on foreign currenct derivative instruments 0.08 Loss on extinguishments of debt 0.06 0.01 - - - 0.04 0.05 Impact from change in French tax rate (0.16) Costs associated with extinguishment of debt - - - 0.03 - Impact of retroactive change in French tax law - - 0.03 - - Integration and acquisition expenses associated with the retail propane businesses of Energy Transfer Partners, L.P. (“Heritage Propane”) acquired by the Partnership on January 12, 2012 0.05 0.03 - - - Gain on sale of Atlantic Energy (0.11) Adjusted diluted earnings per share (d) 1.46$ 1.41$ 1.25$ 1.61$ 2.02$ 2.01$ 2.05$ 2.29$ (a) Income taxes associated with pre-tax adjustments determined using statutory business unit tax rate. (b) Includes the effects of rounding. (c) Costs associated with extinguishment of debt in 2015 are included in interest expense on the Consolidated Statements of Income. (d) Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are nonGAAP financial measures, when evaluating UGI's overall performance. Adjusted net income attributable to UGI is net income attributable to UGI after excluding net after-tax gains and losses on commodity derivative instruments not associated with current-period transactions (principally comprising unrealized gains and losses on commodity derivative instruments), losses and costs associated with extinguishments of debt, Finagaz and Heritage Propane integration and acquisition expenses, a gain on the sale of Atlantic Energy, and the impact of a retroactive change in French tax law.
UGI Corporation 2017 Adjusted EPS by Segment 60UGI Corporation | Investor Overview Year Ended September 30, 2017 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 436.6 $ 44.6 $ 158.6 $ 86.9 $ 116.0 $ 30.5 Net gains on commodity derivative instruments not associated with current-period transactions (net of tax of $31.9) (a) (b) Unrealized losses on foreign currency derivative instruments (net of tax of $(9.9)) (a) Loss on extinguishments of debt (net of tax of $(6.1)) (a) Integration expenses associated with Finagaz (net of tax of $(13.7)) (a) Impact from change in French tax rate Adjusted net income (loss) attributable to UGI Corporation $ 406.1 $ 54.2 $ 155.8 $ 86.9 $ 116.0 $ (6.8) Adjusted diluted earnings per share: UGI Corporation earnings per share - diluted $ 2.46 $ 0.25 $ 0.89 $ 0.49 $ 0.66 $ 0.17 Net gains on commodity derivative instruments not associated with current-period transactions Unrealized losses on foreign currency derivative instruments Loss on extinguishments of debt Integration expenses associated with Finagaz Impact from change in French tax rate Adjusted diluted earnings (loss) per share $ 2.29 $ 0.30 $ 0.88 $ 0.49 $ 0.66 $ (0.04) (a) Income taxes associated with pre-tax adjustments determined using statutory business unit tax rates. (b) Includes the effects of rounding. AmeriGas Propane Total UGI Utilities Corporate & Other UGI International Midstream & Marketing 13.9 (51.2) — — — — (51.2) 13.9 — — — — — 9.6 9.6 — — — — 26.2 — 26.2 — — (29.0) — (29.0) — — — (0.29)(0.29) — — — — — 0.08 — — — — 0.08 0.05 0.05 — — — — 0.15 — 0.15 — — — (0.16) — (0.16) — —
UGI Corporation Free Cash Flow 61 ($ in millions) UGI Corporation | Investor Overview Year Ended September 30, 1995 1996 1997 3 Years Ended 1997 2000 2001 2002 3 Years Ended 2002 2005 2006 2007 3 Years 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 1,173.3 Less: Capital Expenditures 68.8 62.7 68.8 200.3 71.0 78.0 94.7 243.7 158.4 191.7 223.1 573.2 Free Cash Flow 8.0 48.5 103.2 159.7 61.7 125.5 152.8 340.0 279.3 87.7 233.1 600.1 2010 2011 2012 3 Years Ended 2012 2015 2016 2017 3 Years Ended 2017 ($ in millions) Cash Flow from Operations 598.8 554.7 707.7 1,861.2 1,163.8 969.7 953.9 3,087.4 Less: Capital Expenditures 347.3 360.7 339.4 1,047.4 490.6 563.8 639.8 1,694.2 Free Cash Flow 251.5 194.0 368.3 813.8 673.2 405.9 314.1 1,393.2
UGIEnergyServices UGI Energy Services Total Margin 62 ($ in millions) Revenues and cost of sales excludes net pre-tax gains and losses on commodity derivative instruments not associated with current period transactions. UGI Corporation | Investor Overview Year Ended September 30, 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Revenues 90.4$ 150.7$ 409.2$ 380.6$ 714.5$ 1,025.4$ 1,420.2$ 1,486.5$ 1,409.8$ 1,696.4$ 1,309.5$ 1,222.6$ 1,155.9$ 942.2$ 1,122.8$ 1,473.7$ 1,181.4$ 876.6$ 1,121.2$ Total Cost of Sales (84.4) (143.0) (378.8) (340.3) (659.9) (947.5) (1,323.9) (1,375.3) (1,282.3) (1,541.0) (1,147.8) (1,055.5) (986.5) (779.7) (927.3) (1,149.8) (872.4) (612.2) (856.7) Net Margin 6.0$ 7.6$ 30.4$ 40.3$ 54.6$ 77.9$ 96.3$ 111.2$ 127.5$ 155.3$ 161.7$ 167.1$ 169.4$ 162.5$ 195.5$ 323.9$ 309.0$ 264.4$ 264.5$ Margin Breakdown: Commodity Marketing 6.0$ 6.2$ 13.4$ 18.8$ 25.2$ 32.2$ 40.0$ 36.0$ 42.7$ 38.9$ 42.2$ 60.2$ 67.5$ 56.9$ 57.6$ 61.9$ 60.6$ 45.7$ 48.8$ Natural Gas Marketing 6.0 6.2 13.4 18.8 25.2 32.0 39.3 35.3 41.8 37.0 37.5 45.7 50.4 35.3 46.2 59.4 52.2 39.8 43.0 Retail Power Marketing - - - - - 0.2 0.8 0.7 0.9 1.9 4.6 14.5 17.2 21.6 11.4 2.5 8.4 5.9 5.8 Midstream - - - 2.6 3.0 5.2 13.1 26.0 30.7 46.1 49.0 47.4 51.7 57.5 74.9 184.9 180.4 161.1 167.9 Power Generation - - - 2.6 7.4 17.5 20.5 24.1 27.5 39.2 35.0 27.7 18.2 16.0 31.5 45.5 43.6 34.2 27.9 HVAC - 1.4 17.0 16.3 19.0 22.9 22.7 25.1 26.6 31.2 35.5 31.9 31.9 32.1 31.5 31.7 24.4 23.3 19.9 Net Margin 6.0$ 7.6$ 30.4$ 40.3$ 54.6$ 77.9$ 96.3$ 111.2$ 127.5$ 155.3$ 161.7$ 167.1$ 169.4$ 162.5$ 195.6$ 323.9$ 309.0$ 264.4$ 264.5$
AmeriGas Adjusted EBITDA 63 ($ in millions) UGI Corporation | Investor Overview Year Ended September 30, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net income attributable to AmeriGas Partners, L.P. (a) 91.2$ 190.8$ 158.0$ 224.6$ 165.2$ 138.5$ 11.0$ 221.2$ 289.9$ 211.2$ 207.0$ 162.1$ Income tax expense 0.2 0.8 1.7 2.6 3.3 0.4 2.0 1.7 2.6 2.9 (1.6) 2.0 Interest expense 74.1 71.5 72.9 70.3 65.1 63.5 142.6 165.4 165.6 162.8 164.1 160.2 Depreciation and amortization 72.5 75.6 80.4 83.8 87.4 94.7 169.1 202.9 197.2 194.9 190.0 190.5 EBITDA 237.9$ 338.7$ 313.0$ 381.4$ 321.0$ 297.1$ 324.7$ 591.2$ 655.3$ 571.8$ 559.5$ 514.8$ Add back: Loss on extinguishment of debt 17.1 - - - - 38.1 13.3 - - - 48.9 59.7 Exclude: Acquisition and Transition Costs - - - - - - 46.2 26.5 - - - - Exclude: Hedge Mark to market impact - - - - - - - - 9.5 47.8 (66.1) (31.1) Exclude: Gain on sale of storage facilities - (46.1) - (39.9) - - - - - - - - Add back: Loss on termination of interest rate hedges - - - - 12.2 - - - - - - - Add back: Litigation Reserve adjustment - - - - 7.0 - - - - - - - MGP Environmental accrual - - - - - - - - - - - 7.5 Noncontrolling Interest in net gains (Losses) on commodity derivative instruments not associated with current-period transactions and Heritage transition expenses - - - - - - - (0.3) (0.1) (0.4) 0.7 0.4 Heritage Pro Forma EBITDA - - - - - - 82.5 - - - - - Adjusted EBITDA 255.0$ 292.6$ 313.0$ 341.5$ 340.2$ 335.2$ 466.7$ 617.4$ 664.7$ 619.2$ 543.0$ 551.3$
AmeriGas Unit Margin 64 ($ in thousands, except per unit amounts) UGI Corporation | Investor Overview Year Ended September 30, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Propane revenues 1,953,714$ 2,096,080$ 2,624,672$ 2,091,890$ 2,158,800$ 2,360,439$ 2,677,631$ 2,884,766$ 3,440,868$ 2,612,401$ 2,053,160$ 2,183,538$ Propane cost of sales (1,277,306) (1,365,071) (1,836,917) (1,254,332) (1,340,615) (1,546,161) (1,642,658) (1,571,574) (2,034,592) (1,301,167) (719,842) (891,261) Adjustment for Commodity Mark-to-Market (gain) loss - - - - - - - - 9,496 47,841 (66,079) (31,062) Total adjusted propane margin 676,408$ 731,009$ 787,755$ 837,558$ 818,185$ 814,278$ 1,034,973$ 1,313,192$ 1,415,772$ 1,359,075$ 1,267,239$ 1,261,215$ Total Retail and Wholesale Gallons Sold 1,094,900 1,124,100 1,104,400 1,047,900 1,022,600 999,000 1,123,100 1,347,000 1,369,000 1,238,700 1,115,222 1,096,000 Average Adjusted Propane Margin per Gallon 0.62$ 0.65$ 0.71$ 0.80$ 0.80$ 0.82$ 0.92$ 0.97$ 1.03$ 1.10$ 1.14$ 1.15$
UGIInternational UGI France Unit Margins 65 (thousands) UGI Corporation | Investor Overview Year Ended September 30, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LPG revenues 881,900$ 796,653$ 1,062,561$ 837,676$ 887,067$ 1,050,628$ 1,083,666$ 1,244,753$ 1,169,610$ 942,511$ 1,160,013$ 1,144,939$ LPG cost of sales (478,400) (384,810) (615,944) (362,425) (465,867) (649,824) (650,305) (774,097) (727,029) (471,511) (418,358) (432,372) Adjustment for Commodity Mark-to-Market (gain) loss - - - - - - - - - 9,944 (14,071) (9,187) Total adjusted LPG margin (USD) 403,500$ 411,842$ 446,617$ 475,251$ 421,200$ 400,804$ 433,361$ 470,656$ 442,581$ 480,944$ 727,584$ 703,380$ Foreign Currency Exchange Rates (Euro/USD) 1.23 1.34 1.51 1.35 1.36 1.40 1.30 1.31 1.36 1.15 1.11 1.11 Total adjusted LPG margin (Euro) 327,224€ 308,406€ 296,261€ 350,903€ 310,608€ 286,427€ 332,758€ 358,630€ 326,279€ 418,212€ 657,678€ 633,676€ Total Retail Tons Sold 611 525 567 561 542 524 575 596 539 639 963 983- Gallons/ton 516 516 516 516 516 516 516 516 516 516 516 516-$ Total Retail Gallons Sold 315,224 270,719 292,616 289,290 279,889 270,542 296,704 307,771 278,320 329,947 497,028 507,228 Average Adjusted LPG Margin per Gallon 1.04€ 1.14€ 1.01€ 1.21€ 1.11€ 1.06€ 1.12€ 1.17€ 1.17€ 1.27€ 1.32€ 1.25€

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Ugi wells fargo-december_2017_v_final

  • 1. Wells Fargo Pipeline, MLP and Utility Symposium December 2017
  • 2. 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 control. You should read UGI’s Annual Report on Form 10-K for a more extensive list of factors that could affect results. Among them are adverse weather conditions, cost volatility and availability of all energy products, including propane, natural gas, electricity and fuel oil, increased customer conservation measures, the impact of pending and future legal proceedings, liability for uninsured claims and for claims in excess of insurance coverage, domestic and international political, regulatory and economic conditions in the United States and in foreign countries, including the current conflicts in the Middle East, and foreign currency fluctuations (particularly the euro), changes in Marcellus Shale gas production, the availability, timing and success of our acquisitions, commercial initiatives and investments to grow our business, our ability to successfully integrate acquired businesses and achieve anticipated synergies, and the interruption, disruption, failure, malfunction, or breach of information technology systems, including due to cyber attack. UGI undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today. In addition, this presentation uses certain non-GAAP financial measures. Please see the appendix for reconciliations of these measures to the most comparable GAAP financial measure. 2UGI Corporation | Investor Overview
  • 3. UGI Corporation is a distributor and marketer of energy products and services including natural gas, propane, butane, and electricity LPG ~50% of earnings1 • Domestic Propane AmeriGas (MLP, own 26%) #1 LPG distributor in the U.S.2 • International LPG UGI International Premier LPG distributor in Europe, energy marketer in France, Belgium, the Netherlands, and the U.K. 3 Corporate Overview Natural Gas ~50% of earnings1 •Utilities UGI Utilities Natural gas & electric utilities in Pennsylvania and Maryland •Midstream & Marketing Energy Services Energy marketing, midstream, and power generation in the Eastern U.S. 1 Based on Adjusted diluted earnings per share, which is a non-GAAP measure, excluding Corporate & Other. See appendix for reconciliation. 2 Largest retail propane distributor in U.S. based on volume. UGI Corporation | Investor Overview
  • 4. Key Takeaways • We deliver outstanding returns to our shareholders • We are a balanced growth and income investment • 6-10% EPS Growth • 4% Dividend Growth • Excellent cash generation; 11% CAGR of free cash flow1 since 1997 • Track record of disciplined capital deployment • Our portfolio of growth opportunities has never been stronger 4 1 Three years ended 9/30/17 compared to three years ended 9/30/97; Free cash flow is a non-GAAP measure. See appendix for reconciliation. UGI Corporation | Investor Overview
  • 5. Our Strategy 5 Be the preferred provider in all markets • Build businesses of scale • Leverage our position as the last link in energy distribution • Protect and enhance our brands 1 Capitalize on synergies and leverage strengths • Leverage successful programs and services across the corporation • Expand further into midstream • Seek new international markets 2 Grow earnings through acquisitions, capital projects, and organic growth • Organic growth sets the foundation • Invest in adjacent geographies, leveraging our experience and products • Manage risk when investing in new area or product • Focus on cash flow, limit commodity exposure and execute 3 UGI Corporation | Investor Overview
  • 6. Dividends & Share Repurchase $210 – 230 million Income-producing businesses support disciplined growth objectives by generating cash for growth opportunities and dividends Organic Investment & M&A $490 – 520 million + 3% – 4% Base Growth 3% – 6% Incremental Growth $700-750 million Free Cash Flow (Maintenance Capex)1 60% Propane 40%Nat Gas 6% - 10% EPS Growth Investment Drives Incremental Growth 4% Dividend Growth 5 Year Actual: 7%5 Year Actual: 13% Our Commitments to Investors Growth Engine Supports Commitments 1 Cash Flow from Operations less Maintenance Capital from wholly-owned operations, plus AmeriGas dividends to UGI Corporation. Note: All figures represent multi-year average targets.UGI Corporation | Investor Overview
  • 7. How Have We Executed on Strategy? • Successfully invested $9.1 billion from 2000-2017 to build our current business portfolio • Expanded our legacy businesses – Utilities and AmeriGas • Rapidly grew two major business units – Energy Services and UGI International • Strong financial attributes of UGI’s business contributed to superior financial results • FY2013A – FY2018 Guidance1 adjusted EPS CAGR of 9.6%2 • Twenty year (1997-2017) free cash flow CAGR of 11.4%2,3 • 10 & 20-year average total shareholder returns of 13.7% and 15.0%, respectively, for periods ending 9/30/17. 7 2Adjusted earnings per share and free cash flow are non-GAAP measures. See appendix for reconciliation. 3 Three year numbers to smooth the impact of weather. See appendix for reconciliation. UGI Corporation | Investor Overview 1 Based on midpoint of FY 2018 guidance range of $2.45 – $2.65. 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 diluted earnings per share, a non-GAAP measure, to diluted earnings per share, the most directly comparable GAAP measure, in reliance on the “unreasonable efforts” exception set forth in SEC rules.
  • 8. UGI Has Consistently Outperformed Total Shareholder Return as of 9/30/17 8UGI Corporation | Investor Overview 0% 5% 10% 15% UGI S&P 500 Utilities S&P 400 Midcap S&P 500 3 Year Total Return 0% 5% 10% 15% 20% 25% UGI S&P 500 Utilities S&P 400 Midcap S&P 500 5 Year Total Return 0% 5% 10% 15% UGI S&P 500 Utilities S&P 400 Midcap S&P 500 10 Year Total Return 0% 5% 10% 15% 20% UGI S&P 500 Utilities S&P 400 Midcap S&P 500 20 Year Total Return
  • 9. Outstanding Free Cash Flow $0.2B $0.3B $0.6B $0.8B $1.4B 3 Years Ended 1997 3 Years Ended 2002 3 Years Ended 2007 3 Years Ended 2012 3 Years Ended 2017 Free Cash Flow (Total Capex)1 generated over past three years of $1.4 billion 11.4% CAGR 1 Cash Flow from Operations less capital expenditures Free Cash Flow is a non-GAAP measure. See appendix for reconciliation. UGI Corporation | Investor Overview
  • 10. $1.75 $2.00 $2.25 $2.50 $2.75 FY 2017 UGI Utilities Midstream & Marketing UGI International AmeriGas FY 2018 2018 Guidance Consistent Earnings Pattern Historically, on average, ~95% of FY Adjusted EPS is generated in the first half of the year Key Drivers  Return to normal weather  PNG Rate Case, customer additions  Full year Sunbury contract, Manning and Steelton LNG  2017 European acquisitions and Finagaz synergies  ACE and National Accounts growth, M&A, use of technology to reduce costs Adjusted EPS of $2.45 – $2.65 $2.45 $2.65 $2.29 Q1 ~35% Q2 ~60% Q3 ~5% Q4 ~0% FY 100% Percentage of UGI Adjusted EPS earned by quarter FY 2018 Earnings Guidance Adjusted EPS is a non-GAAP measure. See appendix for reconciliation of 2017 Adjusted EPS. 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 derivative instruments and Finagaz integration expenses, we cannot reconcile 2018 Adjusted EPS to diluted EPS, the most comparable GAAP measure. UGI Corporation | Investor Overview
  • 11. 2012 2017 2021 Strong Track Record and Pipeline of Projects $3.05 - $3.401 $2.29 • Sunbury Pipeline • PennEast Pipeline • Satellite LNG • Peaking demand • ACE growth • National Accounts • AmeriGas acquisitions • Technology deployment • International marketing • DVEP Acquisition • Totalgaz Italia Acquisition • Utility customer growth • PNG rate case • DSIC Recovery • >$1 billion Utility capex • 82,000+ New Utility residential heating and commercial customers • Over $1.1 billion in Utility capital investment • Auburn Pipeline System • Uniondale Pipeline • Temple LNG • Manning LNG • 28 AmeriGas acquisitions • Added 8,000 ACE locations • Added over 12,000 National Accounts locations • Finagaz acquisition • BP Poland acquisition • IDRs $1.25 UGI International Midstream & Marketing UGI Utilities AmeriGas UGI International Midstream & Marketing UGI Utilities AmeriGas 1 Estimated using midpoint of FY 2018 guidance range , growing at long-term EPS growth expectation of 6%-10%.UGI Corporation | Investor Overview
  • 12. Midstream & Marketing • Anticipating over 50% fee-based margin by 2020 • Increased peak day requirements driving opportunities for fixed-fee peaking services • Pipeline contracts with take or pay provisions replace volatility-based capacity margin AmeriGas • ACE cylinder business is counter-seasonal • National account volumes less correlated with weather • Geographic diversity mitigates regional weather risk Utility • Increasing fixed customer charges in base rate cases • Recovery through reconcilable riders • Adding commercial and industrial customers with higher base usage International • Geographic diversity mitigates regional weather risk • Cylinder business supports non-heating home usage • Industrial volumes not impacted by weather 12 Reducing Weather Dependence UGI Corporation | Investor Overview
  • 14. UGIUtilities Business Overview 14 Most contemporary distribution system in Pennsylvania Pennsylvania’s 2nd Largest gas utility1 serving 45 of 67 counties in PA ~635,000Gas customers ~62,000 Electric customers Service territories lie within or adjacent to the Marcellus shale reserves 80,000new customers in the last 5 years Added Constructive regulatory environment 1 Based on total customers.UGI Corporation | Investor Overview
  • 15. UGIUtilities Key Value Drivers • Strong focus on safety, operations and reliability • Opportunities for growth and aggressive cost management result in 5-7% annual net income growth • Record capital investment • Increasing system reliability • Supporting growth • Growing rate base • Constructive regulatory environment • Strong balance sheet 15UGI Corporation | Investor Overview
  • 16. UGIUtilities Marcellus Advantage • Over 80% of UGI Utilities natural gas sourced from the Marcellus Shale • Added three power plant customers since 2010 • Combined generation capacity of >2,000 MWs • Fourth scheduled in 2018 (~1,400 MWs) • Favorable environment for economic development • Added an average of 16,500 new residential heating and commercial customers over the past 5 years 16 Natural Gas Electric Marcellus Shale Area UGI Corporation | Investor Overview
  • 17. UGIUtilities Marcellus Gas Driving Growth in PA 171 Source: Energy Information AdministrationUGI Corporation | Investor Overview 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Natural Gas Delivered to Consumers in PA 0 100,000 200,000 300,000 400,000 500,000 600,000 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 PA Natural Gas Deliveries to Electric Power Customers Residential: -0.7% Non-Residential: 0.9% 1998-2006 0.3% CAGR 1998: 30,240 MMCF 2016: 500,656 MMCF
  • 18. UGIUtilities Increasing Capital Investment 18UGI Corporation | Investor Overview $0 $50 $100 $150 $200 $250 $300 $350 2013 2014 2015 2016 2017 2018E Capital Spend ($MM) Replacement and Betterment Growth Other Electric IT
  • 19. UGIUtilities • Reducing regulatory lag: • Fully Projected Future Test Year • Distribution System Improvement Charge (DSIC) • Nearly 65% of FY18 investment begins recovery within 12 months • Additional programs drive growth • Technology and Economic Development Rider • Growth Extension Tariff • Energy Efficiency & Conservation 19 Investment Creating Value UGI Corporation | Investor Overview 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2012 2013 2014 2015 2016 2017 2018 Rate Base ($ Billions) E
  • 20. UGIUtilities Total Customer Growth 20 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 New Homes Conversions Upgrades Commercial AnnualCustomerAdditions UGI Corporation | Investor Overview
  • 21. UGIUtilities Positioned for Continued Growth • Added over 14,000 new residential heating and commercial customers in 2017 • Growth Opportunities • ~ 350,000 conversion prospects remain near gas mains • GET Gas program enables growth in underserved areas • ~$55 million 2018 growth capital budget • Pre-2015 average annual spend was $40 million • New Technologies / Future Demand • Combined Heat and Power (“CHP”) Projects • Natural Gas Vehicle (“NGV”) fueling stations • Large potential industrial customers on deck 21UGI Corporation | Investor Overview
  • 23. UGIEnergyServices Business Overview 23 131 Bcf natural gas marketing in 39 LDCs 241 Miles of pipeline (operating or in development) 15 Bcf of natural gas storage ~2 Bcf LNG and propane storage used to support liquefaction and vaporization peak shaving Marketing Midstream Generation ~671,000 MWhs in 20EDCs ~256.5 MWs of electric generation capacity UGI Corporation | Investor Overview
  • 24. UGIEnergyServices • Extending our Marcellus asset network with attractive new capital projects • Broad range of investment opportunities • Increasing fee-based revenue through peaking and pipeline capacity contracts • Strong track record for project execution • Well positioned to serve growing natural gas demand • Growth initiatives support an 8-10% annual net income growth rate 24 Key Messages Marcellus Shale UGI Corporation | Investor Overview
  • 25. UGIEnergyServices Midstream Assets Overview 25UGI Corporation | Investor Overview LNG Peaking: • Temple LNG (205,000 Dth/day vaporization, 1.25 BCF storage) • Manning liquefaction (10,000 Dth/day) • Steelton vaporization (65,000 Dth/day) Pipelines: • Auburn system (470,000 Dth/day) • Sunbury pipeline (200,000 Dth/day) • Union Dale (100,000 Dth/day) • PennEast pipeline (1 Bcf/day) Storage: • 15 Bcf natural gas storage
  • 26. UGIEnergyServices Acquisition of Rockdale Midstream Assets 26UGI Corporation | Investor Overview Announced acquisition of midstream assets from Rockdale Marcellus, LLC on 11/1/17 • Midstream system in northern/central Pennsylvania • >60 miles of gathering lines, with dehydration, compression, and multiple interconnects to downstream pipelines • Received dedication of >1 Tcf of gas to be produced from approximately 42,000 acres • Complements existing assets of gas storage, Auburn gathering system, and recently-completed Sunbury Pipeline, as well as LNG liquefaction and storage • Enhances in-field gathering, short-haul infrastructure, and to lesser extent, long-haul FERC- regulated infrastructure opportunities • Potential for significant expansions to move production from other producers adjacent to the system • Expected to be immediately accretive and reach $0.04 accretion by year three
  • 27. UGIEnergyServices $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Margin1(in000s) Commodity Marketing Midstream Generation HVAC Sustainable Business Growth 27 11% colder than normal winter 12% colder than normal winter 21% warmer than normal winter 1Margin is a non-GAAP measure. See appendix for reconciliation. Increasing midstream margin drives overall growth 22% warmer than normal winter UGI Corporation | Investor Overview 15% warmer than normal winter
  • 28. UGIEnergyServices $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Natural Gas Retail Power Commodity Marketing Consistent, disciplined approach results in steady margin growth through numerous disruptive events 28 22% warmer than normal winter Polar Vortex 11% colder than normal winter Commodity spike Total margin is a non-GAAP measure. See appendix for reconciliation. 21% warmer than normal winter Enron Collapse Katrina/ Rita TotalMargin(000s) UGI Corporation | Investor Overview
  • 29. UGIEnergyServices Increasing Fee-based Income 29 35% 46% 19% Historical Fee-Based Margin 39% 1Margin is a non-GAAP measure. See appendix for reconciliation of 2013 total margin. 2013 Margin Composition1 Anticipated 2021 Margin Composition 18% 76% 6% Anticipated Fee-Based Margin 56% Commodity Margin Generation MarginMidstream Margin UGI Corporation | Investor Overview
  • 30. UGIEnergyServices Capitalizing on Infrastructure Gap 30 Well positioned in capacity constrained areas: • Natural Gas Storage • Auburn • Uniondale • LNG Peaking and Trucking • Capacity Management Participating in infrastructure build-out: • Sunbury • PennEast UGI Corporation | Investor Overview
  • 32. AmeriGas Largest propane distributor in U.S.1 32 Business Overview UGI Corporation | Investor Overview Over 1.8 MM Customers ~1.1 BN Retail gallons sold Over 50,000 Cylinder exchange retail locations Operations in all 50 States ~8,100 Employees 1 Based on volume of propane gallons distributed annually.
  • 33. AmeriGas 33 Business Overview UGI Corporation | Investor Overview 37% Residential Heating & Cooking 38% Commercial / Industrial 8% Agriculture & Transport 17% Motor Fuel Represents approximate percentages of retail gallons sold
  • 34. AmeriGas • Unmatched geographic coverage across all 50 states • Significant scale enables deployment of technology advancements • Scale enables growth programs (ACE and National Accounts) • Significant transportation and logistics assets • Tested formula for successful acquisitions • Demonstrated ability to manage margins 34 Competitive Advantages UGI Corporation | Investor Overview
  • 35. AmeriGas Recent Key Accomplishments • National Accounts delivered record operating results • Currently serving over 43,000 customer locations • ACE business also delivered record operating results • Volume up over 8% compared to FY16 • Over 50,000 distribution points • Completed 5 acquisitions adding ~6 million gallons in FY17 • Increased distribution for 13th consecutive year in April 2017 • Completed refinancing of all long-term debt, lowering rates by more than 100 basis points 35UGI Corporation | Investor Overview
  • 36. AmeriGas 36 Unmatched Nationwide Footprint UGI Corporation | Investor Overview Districts Storage Terminals Field Service Center
  • 37. AmeriGas Most flexible, reliable supply chain coverage in the retail propane industry Ability to quickly focus flexible truck, rail and trans-loading assets to areas in need 37 Significant Transportation and Logistics Network UGI Corporation | Investor Overview 10 Transflow Units ~510 Rail Cars ~3,100 Bobtail Trucks 21 Terminals ~1.8 Million Customers ~1,900 Distribution Locations Over 250 Propane Suppliers(a) 940 PTI Trailers (a) Domestic and international suppliers.
  • 38. AmeriGas Investments in technology reduce operational costs while improving the customer experience 38 Technology Investments Across a Broad Platform UGI Corporation | Investor Overview AmeriMobile • Real-time field communication AmeriGas.com • Online bill pay • Will-call orders District Tools • Real-time key performance indicators Networked Call Centers • Re-route calls based on volume • 24/7 Emergency Call Center
  • 39. AmeriGas Key Financial Objectives • 3% - 4% growth in EBITDA over the long-term • Enhance credit metrics targeting leverage ratios in the range of 3.5x – 4.0x • Use access to capital markets judiciously - fund all maintenance, growth and acquisition expenditures through internally generated cash flow • Distribution growth in line with EBITDA growth and targeting 1.1x to 1.2x distribution coverage 39Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) is a non-GAAP measure. See appendix for reconciliation. UGI Corporation | Investor Overview
  • 40. AmeriGas 40 Key Drivers of Growth UGI Corporation | Investor Overview ACE Cylinder Exchange 2-3% Growth National Accounts 6-7% Growth Acquisitions $5-6 MM Annual EBITDA Addition Structural Conservation offset by: Technology Enhancements Margin Management Customer Retention 3-4% Annual EBITDA Growth
  • 41. AmeriGas • Unparalled footprint (~1,900 distribution locations, 50 states) • 38 Accounts added in FY17 • Best in class “back office” • Largest sales force in the industry • Geographic diversity • Generally less weather sensitive than residential business 41 National Accounts Program UGI Corporation | Investor Overview Serving over 43,000Customer Locations
  • 42. AmeriGas • Counter seasonal due to summer grilling demand • Product of convenience • Platform grows as U.S. retailers expand • Highly targeted marketing programs 42 Cylinder Exchange Program UGI Corporation | Investor Overview 33 Cylinder refurbishment centers nationwide distribution points Over 50,000
  • 43. AmeriGas • Hallmark of the Company’s growth history • Highly fragmented market, over 3,500 acquisition opportunities • Dedicated corporate development team with relationship building as a core competency • Unmatched operational synergy opportunities due to nationwide footprint • 11 acquisitions in last two years 43 Growth Through Acquisitions UGI Corporation | Investor Overview acquisitions since the early 1980s ~200 1987 1993 2001 2012
  • 44. AmeriGas 44 Unit Margin Management UGI Corporation | Investor Overview $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Avg.Mt.BelvieuCost PropaneUnitMargins Avg. Mt. Belvieu Cost Propane Unit Margins Track record of unit margin growth in all cost environments Unit margin is a non-GAAP measure. See appendix for reconciliation.
  • 45. AmeriGas 45 Adjusted EBITDA Growth UGI Corporation | Investor Overview $0 $100 $200 $300 $400 $500 $600 $700 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018G Adjusted EBITDA1 2 Assumes 15-year normal weather. Adjusted EBITDA is a non-GAAP measure. See appendix for reconciliation. 1 Includes impact of Heritage acquisition completed in 2012. (2%) 3% 4% 5% 5% (13%) 1% 0%10% (12%) (11%) Weather vs. Normal2
  • 46. AmeriGas 46 13th Consecutive Year of Increasing Distributions UGI Corporation | Investor Overview $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Annualized Year-End Distributions Per Unit
  • 47. AmeriGas 47 Refinancing Strengthened Balance Sheet Debt Maturity Extended and Coverage Improved BEFORE: AFTER:Avg. maturity: 4.7 years Avg. interest rate: 6.73% Avg. maturity: 8.7 years Avg. interest rate: 5.65% $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2017 2019 2020 2021 2022 2023 2024 2025 2026 2027 6.25% due May 2019 6.75% due May 2020 6.50% due May 2021 7.00% due May 2022 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5.625% due May 2024 5.500% due May 2025 5.875% due Aug 2026 5.75% due May 2027 ($ in millions)($ in millions) UGI Corporation | Investor Overview
  • 48. AmeriGas -50 0 50 100 150 200TotalReturn% AmeriGas Alerian S&P 500 48 Outperformance Over the Long-Term UGI Corporation | Investor Overview CAGR Total Unitholder Return as of 9/30/17 1 Year 3 Year 5 Year 10 Year AmeriGas 6.8% 7.9% 8.9% 10.4% Alerian -3.7% -12.9 -0.5% 6.4% S&P 500 18.6% 10.8% 14.2% 7.4%
  • 50. UGIInternational Business Overview 50 ~500,000 Customers Nearly 828 million retail gallons sold in FY17 ~38,000 Retail outlets selling LPG cylinders Operations in 17 Countries 15 Languages ~3,000 Employees Over 18.5 million Cylinders in circulation UGI Corporation | Investor Overview
  • 51. UGIInternational UGI International Timeline 51UGI Corporation | Investor Overview 27 transactions since 1999 1999 Austria Czech Republic Slovakia 2001 France 2006 Hungary Poland Romania 2010Denmark 2011 Belgium Finland Luxembourg Norway Sweden Netherlands United Kingdom 2017 Italy 2017: 828mm gallons 1999: ~44mm gallons $0.88 FY 17 Adjusted EPS 1999 2001 (20%) 2004 (100%) 2010 2011 2015 2017 2017 Adjusted EPS is a non-GAAP measure. See appendix for reconciliation. 2004 Switzerland
  • 52. UGIInternational Key Messages • International segment managed as one company with strong local presence • Successful ability to identify and integrate quality assets • Strong operational cash flow • Track record for margin management • Growth and integration strategies yield 5% to 8% earnings growth • Heating oil to LPG conversion • Energy marketing • Operational effectiveness and delivery of synergies • Opportunities for additional acquisitions 52UGI Corporation | Investor Overview
  • 53. UGIInternational Serving a Diverse Customer Base 53 75% 21% 4% FY17 Volume by Segment Bulk Cylinder Auto Gas 55% 32% 5% 4% 4% FY17 Volume by Segment Commercial & Industrial Residential Agricultural Autogas Aerosol UGI Corporation | Investor Overview
  • 54. UGIInternational Track Record of Margin Management 54 0.00 € 0.25 € 0.50 € 0.75 € 1.00 € 1.25 € 1.50 € 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 UGIFrance€perGallon Avg. Platt's Cost LPG Unit Margins Unit margin is a non-GAAP measure. See appendix for reconciliation.UGI Corporation | Investor Overview
  • 55. UGIInternational Growth Beyond LPG • Natural Gas Marketing • Grown business from scratch over last five years • Leverage sales force and best practices to double the existing business over the next five years • Recently announced acquisition of Dutch energy marketer DVEP • Expected to be $0.02 accretive to UGI in 2018 • LNG Distribution • Assessing LNG distribution opportunities as market evolves • Longer term business objective • Focus on U.K. and Nordic countries • Motor fuel and marine markets are attractive 55UGI Corporation | Investor Overview
  • 56. 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 shareholder return over past 20 years driven by accretive investments UGI Corporation | Investor Overview
  • 58. $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AnnualizedYear-End DividendsperShare $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E AnnualEarningsperShare UGI Corporation | Investor Overview Strong EPS and Dividend Growth 58 12.0% CAGR Above 6-10% Long-Term Target Dividends adjusted for stock splits. EPS for 1999 – 2009 represents GAAP EPS, adjusted for stock splits. EPS for 2010-2017 represents Adjusted EPS which is a non-GAAP measure. See appendix for reconciliation. 6.0% CAGR Above 4% Long-Term Target
  • 59. UGI Corporation Adjusted Earnings Per Share 59UGI Corporation | Investor Overview Year Ended September 30, (Million of dollars, except per share amounts) 2010 2011 2012 2013 2014 2015 2016 2017 NON-GAAP RECONCILIATION: Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 251.8 $ 245.4 $ 210.2 278.1$ $ 337.2 281.0$ 364.7$ 436.6$ Net (gains) losses on commodity derivative instruments not associated with current-period transactions (net of tax of $(5.8), $11.5, $6.3, $3.1, $(4.5), $(30.9), $13.5, $31.9 respectively) (a) (b) 8.2 (17.4) (8.9) (4.3) 6.6 53.3 (29.9) (51.2) Integration and acquisition expenses associated with Finagaz acquired on May 29, 2015 (net of tax of $0, $0, $0, $0, $(2.2), $(7.7), and $(10.6),$(13.7) respectively) (a) - - - - 4.3 14.9 17.3 26.2 Unrealized losses on foreign currenct derivative instruments (net of tax of $(9.9)) (a) 13.9 Loss on extinguishments of debt (net of tax of $0, $0, $(1.4), $0, $0, $0, and $(5.0),$(6.1) respectively) (a) - - 2.2 - - - 7.9 9.6 Impact from change in French tax rate (29.0) Costs associated with extinguishment of debt (net of tax of $0, $(6.6), $0, $0, $0, $(5.7), and $0, respectively) (a) (c) - 10.4 - - - 4.6 - Impact of retroactive change in French tax law - - - - 5.7 - - Integration and acquisition expenses associated with the retail propane businesses of Energy Transfer Partners, L.P. (“Heritage Propane”) acquired by the Partnership on January 12, 2012 (net of tax of $0, $0, $(5.6), $(2.8), $0, $0, and $0, respectively) (a) - - 8.8 4.4 - - - Gain on sale of Atlantic Energy (net of tax of $19.3 in 2010) (17.2) Adjusted net income attributable to UGI Corporation (d) 242.8$ 238.4$ 212.3$ 278.2$ 353.8$ 353.8$ 360.0$ 406.1$ Adjusted earnings per common share attributable to UGI stockholders: UGI Corporation earnings per share - diluted 1.52$ 1.45$ 1.24$ 1.60$ 1.92$ 1.60$ 2.08$ 2.46$ Net (gains) losses on commodity derivative instruments not associated with current-period transactions (b) 0.05 (0.10) (0.05) (0.02) 0.04 0.30 (0.17) (0.29) Integration and acquisition expenses associated with Finagaz acquired on May 29, 2015 - - 0.03 0.08 0.10 0.15 Unrealized losses on foreign currenct derivative instruments 0.08 Loss on extinguishments of debt 0.06 0.01 - - - 0.04 0.05 Impact from change in French tax rate (0.16) Costs associated with extinguishment of debt - - - 0.03 - Impact of retroactive change in French tax law - - 0.03 - - Integration and acquisition expenses associated with the retail propane businesses of Energy Transfer Partners, L.P. (“Heritage Propane”) acquired by the Partnership on January 12, 2012 0.05 0.03 - - - Gain on sale of Atlantic Energy (0.11) Adjusted diluted earnings per share (d) 1.46$ 1.41$ 1.25$ 1.61$ 2.02$ 2.01$ 2.05$ 2.29$ (a) Income taxes associated with pre-tax adjustments determined using statutory business unit tax rate. (b) Includes the effects of rounding. (c) Costs associated with extinguishment of debt in 2015 are included in interest expense on the Consolidated Statements of Income. (d) Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are nonGAAP financial measures, when evaluating UGI's overall performance. Adjusted net income attributable to UGI is net income attributable to UGI after excluding net after-tax gains and losses on commodity derivative instruments not associated with current-period transactions (principally comprising unrealized gains and losses on commodity derivative instruments), losses and costs associated with extinguishments of debt, Finagaz and Heritage Propane integration and acquisition expenses, a gain on the sale of Atlantic Energy, and the impact of a retroactive change in French tax law.
  • 60. UGI Corporation 2017 Adjusted EPS by Segment 60UGI Corporation | Investor Overview Year Ended September 30, 2017 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 436.6 $ 44.6 $ 158.6 $ 86.9 $ 116.0 $ 30.5 Net gains on commodity derivative instruments not associated with current-period transactions (net of tax of $31.9) (a) (b) Unrealized losses on foreign currency derivative instruments (net of tax of $(9.9)) (a) Loss on extinguishments of debt (net of tax of $(6.1)) (a) Integration expenses associated with Finagaz (net of tax of $(13.7)) (a) Impact from change in French tax rate Adjusted net income (loss) attributable to UGI Corporation $ 406.1 $ 54.2 $ 155.8 $ 86.9 $ 116.0 $ (6.8) Adjusted diluted earnings per share: UGI Corporation earnings per share - diluted $ 2.46 $ 0.25 $ 0.89 $ 0.49 $ 0.66 $ 0.17 Net gains on commodity derivative instruments not associated with current-period transactions Unrealized losses on foreign currency derivative instruments Loss on extinguishments of debt Integration expenses associated with Finagaz Impact from change in French tax rate Adjusted diluted earnings (loss) per share $ 2.29 $ 0.30 $ 0.88 $ 0.49 $ 0.66 $ (0.04) (a) Income taxes associated with pre-tax adjustments determined using statutory business unit tax rates. (b) Includes the effects of rounding. AmeriGas Propane Total UGI Utilities Corporate & Other UGI International Midstream & Marketing 13.9 (51.2) — — — — (51.2) 13.9 — — — — — 9.6 9.6 — — — — 26.2 — 26.2 — — (29.0) — (29.0) — — — (0.29)(0.29) — — — — — 0.08 — — — — 0.08 0.05 0.05 — — — — 0.15 — 0.15 — — — (0.16) — (0.16) — —
  • 61. UGI Corporation Free Cash Flow 61 ($ in millions) UGI Corporation | Investor Overview Year Ended September 30, 1995 1996 1997 3 Years Ended 1997 2000 2001 2002 3 Years Ended 2002 2005 2006 2007 3 Years 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 1,173.3 Less: Capital Expenditures 68.8 62.7 68.8 200.3 71.0 78.0 94.7 243.7 158.4 191.7 223.1 573.2 Free Cash Flow 8.0 48.5 103.2 159.7 61.7 125.5 152.8 340.0 279.3 87.7 233.1 600.1 2010 2011 2012 3 Years Ended 2012 2015 2016 2017 3 Years Ended 2017 ($ in millions) Cash Flow from Operations 598.8 554.7 707.7 1,861.2 1,163.8 969.7 953.9 3,087.4 Less: Capital Expenditures 347.3 360.7 339.4 1,047.4 490.6 563.8 639.8 1,694.2 Free Cash Flow 251.5 194.0 368.3 813.8 673.2 405.9 314.1 1,393.2
  • 62. UGIEnergyServices UGI Energy Services Total Margin 62 ($ in millions) Revenues and cost of sales excludes net pre-tax gains and losses on commodity derivative instruments not associated with current period transactions. UGI Corporation | Investor Overview Year Ended September 30, 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Revenues 90.4$ 150.7$ 409.2$ 380.6$ 714.5$ 1,025.4$ 1,420.2$ 1,486.5$ 1,409.8$ 1,696.4$ 1,309.5$ 1,222.6$ 1,155.9$ 942.2$ 1,122.8$ 1,473.7$ 1,181.4$ 876.6$ 1,121.2$ Total Cost of Sales (84.4) (143.0) (378.8) (340.3) (659.9) (947.5) (1,323.9) (1,375.3) (1,282.3) (1,541.0) (1,147.8) (1,055.5) (986.5) (779.7) (927.3) (1,149.8) (872.4) (612.2) (856.7) Net Margin 6.0$ 7.6$ 30.4$ 40.3$ 54.6$ 77.9$ 96.3$ 111.2$ 127.5$ 155.3$ 161.7$ 167.1$ 169.4$ 162.5$ 195.5$ 323.9$ 309.0$ 264.4$ 264.5$ Margin Breakdown: Commodity Marketing 6.0$ 6.2$ 13.4$ 18.8$ 25.2$ 32.2$ 40.0$ 36.0$ 42.7$ 38.9$ 42.2$ 60.2$ 67.5$ 56.9$ 57.6$ 61.9$ 60.6$ 45.7$ 48.8$ Natural Gas Marketing 6.0 6.2 13.4 18.8 25.2 32.0 39.3 35.3 41.8 37.0 37.5 45.7 50.4 35.3 46.2 59.4 52.2 39.8 43.0 Retail Power Marketing - - - - - 0.2 0.8 0.7 0.9 1.9 4.6 14.5 17.2 21.6 11.4 2.5 8.4 5.9 5.8 Midstream - - - 2.6 3.0 5.2 13.1 26.0 30.7 46.1 49.0 47.4 51.7 57.5 74.9 184.9 180.4 161.1 167.9 Power Generation - - - 2.6 7.4 17.5 20.5 24.1 27.5 39.2 35.0 27.7 18.2 16.0 31.5 45.5 43.6 34.2 27.9 HVAC - 1.4 17.0 16.3 19.0 22.9 22.7 25.1 26.6 31.2 35.5 31.9 31.9 32.1 31.5 31.7 24.4 23.3 19.9 Net Margin 6.0$ 7.6$ 30.4$ 40.3$ 54.6$ 77.9$ 96.3$ 111.2$ 127.5$ 155.3$ 161.7$ 167.1$ 169.4$ 162.5$ 195.6$ 323.9$ 309.0$ 264.4$ 264.5$
  • 63. AmeriGas Adjusted EBITDA 63 ($ in millions) UGI Corporation | Investor Overview Year Ended September 30, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net income attributable to AmeriGas Partners, L.P. (a) 91.2$ 190.8$ 158.0$ 224.6$ 165.2$ 138.5$ 11.0$ 221.2$ 289.9$ 211.2$ 207.0$ 162.1$ Income tax expense 0.2 0.8 1.7 2.6 3.3 0.4 2.0 1.7 2.6 2.9 (1.6) 2.0 Interest expense 74.1 71.5 72.9 70.3 65.1 63.5 142.6 165.4 165.6 162.8 164.1 160.2 Depreciation and amortization 72.5 75.6 80.4 83.8 87.4 94.7 169.1 202.9 197.2 194.9 190.0 190.5 EBITDA 237.9$ 338.7$ 313.0$ 381.4$ 321.0$ 297.1$ 324.7$ 591.2$ 655.3$ 571.8$ 559.5$ 514.8$ Add back: Loss on extinguishment of debt 17.1 - - - - 38.1 13.3 - - - 48.9 59.7 Exclude: Acquisition and Transition Costs - - - - - - 46.2 26.5 - - - - Exclude: Hedge Mark to market impact - - - - - - - - 9.5 47.8 (66.1) (31.1) Exclude: Gain on sale of storage facilities - (46.1) - (39.9) - - - - - - - - Add back: Loss on termination of interest rate hedges - - - - 12.2 - - - - - - - Add back: Litigation Reserve adjustment - - - - 7.0 - - - - - - - MGP Environmental accrual - - - - - - - - - - - 7.5 Noncontrolling Interest in net gains (Losses) on commodity derivative instruments not associated with current-period transactions and Heritage transition expenses - - - - - - - (0.3) (0.1) (0.4) 0.7 0.4 Heritage Pro Forma EBITDA - - - - - - 82.5 - - - - - Adjusted EBITDA 255.0$ 292.6$ 313.0$ 341.5$ 340.2$ 335.2$ 466.7$ 617.4$ 664.7$ 619.2$ 543.0$ 551.3$
  • 64. AmeriGas Unit Margin 64 ($ in thousands, except per unit amounts) UGI Corporation | Investor Overview Year Ended September 30, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Propane revenues 1,953,714$ 2,096,080$ 2,624,672$ 2,091,890$ 2,158,800$ 2,360,439$ 2,677,631$ 2,884,766$ 3,440,868$ 2,612,401$ 2,053,160$ 2,183,538$ Propane cost of sales (1,277,306) (1,365,071) (1,836,917) (1,254,332) (1,340,615) (1,546,161) (1,642,658) (1,571,574) (2,034,592) (1,301,167) (719,842) (891,261) Adjustment for Commodity Mark-to-Market (gain) loss - - - - - - - - 9,496 47,841 (66,079) (31,062) Total adjusted propane margin 676,408$ 731,009$ 787,755$ 837,558$ 818,185$ 814,278$ 1,034,973$ 1,313,192$ 1,415,772$ 1,359,075$ 1,267,239$ 1,261,215$ Total Retail and Wholesale Gallons Sold 1,094,900 1,124,100 1,104,400 1,047,900 1,022,600 999,000 1,123,100 1,347,000 1,369,000 1,238,700 1,115,222 1,096,000 Average Adjusted Propane Margin per Gallon 0.62$ 0.65$ 0.71$ 0.80$ 0.80$ 0.82$ 0.92$ 0.97$ 1.03$ 1.10$ 1.14$ 1.15$
  • 65. UGIInternational UGI France Unit Margins 65 (thousands) UGI Corporation | Investor Overview Year Ended September 30, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LPG revenues 881,900$ 796,653$ 1,062,561$ 837,676$ 887,067$ 1,050,628$ 1,083,666$ 1,244,753$ 1,169,610$ 942,511$ 1,160,013$ 1,144,939$ LPG cost of sales (478,400) (384,810) (615,944) (362,425) (465,867) (649,824) (650,305) (774,097) (727,029) (471,511) (418,358) (432,372) Adjustment for Commodity Mark-to-Market (gain) loss - - - - - - - - - 9,944 (14,071) (9,187) Total adjusted LPG margin (USD) 403,500$ 411,842$ 446,617$ 475,251$ 421,200$ 400,804$ 433,361$ 470,656$ 442,581$ 480,944$ 727,584$ 703,380$ Foreign Currency Exchange Rates (Euro/USD) 1.23 1.34 1.51 1.35 1.36 1.40 1.30 1.31 1.36 1.15 1.11 1.11 Total adjusted LPG margin (Euro) 327,224€ 308,406€ 296,261€ 350,903€ 310,608€ 286,427€ 332,758€ 358,630€ 326,279€ 418,212€ 657,678€ 633,676€ Total Retail Tons Sold 611 525 567 561 542 524 575 596 539 639 963 983- Gallons/ton 516 516 516 516 516 516 516 516 516 516 516 516-$ Total Retail Gallons Sold 315,224 270,719 292,616 289,290 279,889 270,542 296,704 307,771 278,320 329,947 497,028 507,228 Average Adjusted LPG Margin per Gallon 1.04€ 1.14€ 1.01€ 1.21€ 1.11€ 1.06€ 1.12€ 1.17€ 1.17€ 1.27€ 1.32€ 1.25€