UGI Corporation · NYSE:UGI
UGI — BNP Paribas High Yield and Leveraged Finance Conference 2021
27 slides from UGI's conference presentation, Jan 13, 2021
Slide 1: BNP Paribas High Yield and Leveraged Finance Conference
BNP Paribas High Yield and Leveraged Finance Conference January 13 - 14, 2021
Slide 2: Our Management Team Welcomes You
Our Management Team Welcomes You Paul Ladner Marie-Dominique Ortiz-Landazabal Chief Operating Officer, UGI VP, Finance and Chief Financial 2 International Officer, UGI International 2
Slide 3: About This Presentation
About This Presentation This presentation contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities and Exchange Act of 1934, as amended). Management believes that these are reasonable as of today’s date only. Actual results may d
Slide 4: Use of Non-GAAP Measures
Use of Non-GAAP Measures In this presentation, Management uses certain non-GAAP financial measures, including UGI Corporation adjusted earnings per share, UGI International Free Cash Flow, UGI West Unit Margins, UGI International Adjusted Earnings before interest, taxes, depreciation, and amortizati
Slide 5: Business Overview
Business Overview LPG DISTRIBUTION ENERGY MARKETING ~1.7 Million ~29 BCF tons of LPG sold in FY 20201 of natural gas sold in FY 2020 Largest distributor in France, Natural gas and electricity Austria, Belgium, Norway marketing across France, Belgium, Denmark, and Luxembourg the Netherlands, and the
Slide 6: Strategic Advantages
Strategic Advantages Operations in 17 Countries ~550,000 Largest LPG distributor in France, Austria, Belgium, TotalLuxembourg Denmark, Customersand Norway and one MARKET LEADER of the largest distributors of LPG in Poland, Hungary, the Czech Republic, Slovakia, the IN EUROPE Netherlands and Sweden L
Slide 7: Key Messages
Key Messages PROVEN • International segment managed as one company with strong local presence STRATEGIC FOCUS • Track record of successful integration of accretive businesses • Operations focused on goal-based, strategic execution GOAL-ORIENTED • LPG core focus, energy marketing, acquisitions OPERAT
Slide 8: Evolution – Major Acquisitions
Evolution – Major Acquisitions 2000 2005 2010 2015 2020 1 Five LPG acquisitions in Belgium, UK, Switzerland3, and the Netherlands Austria Belgium Switzerland Hungary Denmark Belgium Italy Czech Republic France Netherlands Poland Finland Germany Slovakia Romania Luxembourg United Kingdom Norway Switz
Slide 9: LPG – Serving a Diverse Customer Base
LPG – Serving a Diverse Customer Base No single customer represents more than 5% of total revenues for UGI International FY20 LPG Volume by Category FY20 LPG Volume by Segment 17% 21% 4% 17% 12% 48% 62% 19% Bulk Cylinder Commercial and Industrial Residential Autogas Wholesale Agricultural Wholesale
Slide 10: Bulk LPG Customer Contracts
Bulk LPG Customer Contracts Steady margins with minimal commodity exposure Contract Types by Volume 14% Formula-based Price 55% Calculated based on three main indices; changes as LPG spot market changes Stated Price 31% Change as commodity price changes Fixed Price Set once a year with customers; UG
Slide 11: Track Record of Margin Management
Track Record of Margin Management UGI International has grown volume while maintaining stable LPG Unit Margins Historical Volume (‘000 tons) Historical Revenue ($ million) 1,963 1,864 1,807 1,811 $2,684 1,686 $2,323 $2,372 1,351 $2,180 $2,127 1,223 $1,946 1,117 1,148 $1,789 $1,862 $1,878 833 $1,489
Slide 12: Summary Financial Performance
Summary Financial Performance Adjusted Total Margin1 ($ million) $1,043.2 $964.2 $942.1 $955.8 $936.0 UGII delivered strong results despite another year of warm weather and the impact of COVID-19. Lower adjusted total margin due to volume shortfalls was partially offset by disciplined expense manage
Slide 13: LPG Supply Assets - Strategically Located
LPG Supply Assets - Strategically Located Import terminal - SEA • UGI International stores LPG Import terminal - PIPELINE at various storage facilities Import terminal - RAILCARS and terminals across Europe Intra-Europe trade flows Terminal - REFINERY are increasing Hamina o Ownership interests in 1
Slide 14: Energy Marketing – Focused Growth
Energy Marketing – Focused Growth • Our primary focus is on Small FY20 GWh by Energy Type Total (Gas and Power) Volume Split by Segment and Medium Enterprises (SME) • Offer customer-focused 9% 6% solutions 28% • Support customers in energy purchase decisions • Fixed price requirement 72% 40% 45% con
Slide 15: Strengthening our Renewables Portfolio
Strengthening our Renewables Portfolio Strong strides in renewables 2015 - 2019 Focused on building a strong renewable portfolio • Began marketing Bio-LPG in parts of 1. New market opportunities: Northern Europe • New Renewable Fuels - “De-fossilize” LPG via • Acquired DVEP, a marketer of wind and a
Slide 16: Operational Efficiency
Operational Efficiency • Identified over €30 million of permanent benefits that will be Transformation Benefits implemented by the end of Fiscal Year 2022 € in Million • Establishment of Two Centers of Excellence Commercial Excellence – continuous improvement to customer experience Operational E
Slide 17: Summary & Conclusion
Summary & Conclusion • One ambition with strategies providing a clear path for continued growth and expansion LPG core focus, energy marketing, Bio LPG, and renewable acquisitions Continued transformation to bring operational synergies and leverage our scale • Strong market position in 17 countr
Slide 18: Appendix
Appendix
Slide 19: UGI Corp Adjusted Net Income and Adjusted Earnings Per Share
UGI Corp Adjusted Net Income and Adjusted Earnings Per Share (Millions of dollars, except per share amounts) Year Ended September 30, 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NON-GAAP RECONCILIATION: Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Co
Slide 20: UGI West Unit Margins
UGI West Unit Margins ($ & € in thousands, except unit margin) 2011 2012 2013 2014 2015 LPG revenues $1,050,628 $1,083,666 $1,244,753 $1,169,610 $942,511 LPG cost of sales (649,824) (650,305) (774,097) (727,029) (461,567) Total adjusted LPG margin (USD) $400,804 $433,361 $470,656 $442,581 $480,944 F
Slide 21: UGI International Total Margins
UGI International Total Margins ($ in millions) Year Ended September 30, 2000 2020 Total Revenues $51 $2,127 Total Cost of Sales (30) (1,191) Total Margin $21 $936 21 21
Slide 22: UGI International Adjusted Total Margin
UGI International Adjusted Total Margin ($ in millions) FY Ending September Adjusted Total Margin 2016 2017 2018 2019 2020 Total revenues $1,862.1 $1,877.5 $2,683.8 $2,372.2 $2,127.0 Cost of sales (866.1) (916.4) (1,527.2) (1,558.9) (1,191.0) French energy certificates (a) - - (20.5) - - Total margi
Slide 23: UGI International Adjusted EBITDA
UGI International Adjusted EBITDA ($ in millions) FY Ending September EBITDA and Adjusted EBITDA 2016 2017 2018 2019 2020 Net income attributable to UGI International, LLC $129.0 $151.9 $218.2 $52.2 $137.0 Substract net loss attributable to noncontrolling interests (a) - 0.2 (2.9) (0.1) - Income tax
Slide 24: UGI Corporation
UGI Corporation UGI Corporation is a distributor and marketer of energy products and services including natural gas, propane, butane, and electricity 18 11,300+ ~3M ~12,300 1,800+ Countries Employees Customers1 Miles of Gas Mains LPG Storage Locations History of Meeting EPS and Dividend Commitments
Slide 25: Natural Gas – 3-Pronged Growth Strategy
Natural Gas –3-Pronged Growth Strategy 25 25
Slide 26: Global LPG Vision
© @ FOCUS DEVELOP GROW on LPG beyond LPG way beyond a” € {o10] > = ‘K EMBED CONTINUAL MODERNIZE FOR FUTURE BRING NEWMARKET _DRIVE BUSINESS EVOLUTION IMPROVEMENT To serve our customers harmoniously, OPPORTUNITIES To expand beyond our To keep us efficient, safe, and digitally, and autonomously To buil
Slide 27: UGI Corp - Well Positioned for Leadership in Renewables
UGI Corp - Well Positioned for Leadership in Renewables Why Renewables? Rapidly growing customer demand Hydrogen RNG Disposal for sale Synergistic opportunities as BIO a producer and distributor of RNG and Bio-LPG Bio H2O Methane HVO Ethanol Strategic assets and proven competencies Residue Progressi
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