American Gas Association May 5-7, 2013 1 May 5-7, 2013
About This Presentation Thi This presentation contains certain forward-looking statements that management t ti t i t i f d l ki t t t th t t 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 y g p 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 conservation measures, the impact of pending and future legal proceedings, domestic and international political, regulatory and economic conditions including currency exchange rate fluctuations (particularly the euro), the timing of development of Marcellus Shale gas production, the timing and success of our commercial initiatives and investments to grow our business, and our ability to successfully integrate acquired businesses, including Heritage Propane, and achieve anticipated synergies. UGI undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today statements to reflect events or circumstances occurring after today. 2 May 5-7, 2013
About UGI Corporation UGI Corporation is a distributor and marketer of energy products and services including natural gas, propane, butane, and electricity. UGI UGI Corporation (NYSE: UGI) Domestic International Midstream and Propane* Utilities Propane p Marketing g (NYSE APU) (NYSE: APU) 100+ local brand brand names 3 *100% GP interest and 25% of outstanding LP units May 5-7, 2013
About UGI Corporation UGI operates in 50 states and 16 European countries AmeriGas also operates in A iG l t i Hawaii and Alaska Domestic Domestic International International Midstream & Midstream & UGI U ili i UGI Utilities Propane Propane Marketing 4 May 5-7, 2013
Why Invest in UGI? Significant Cash Generation Generation n UGI? ? Diversification Diversification vest in Growth and Growth and Why Inv Income W Strong Track Record 5 May 5-7, 2013
Why Invest in UGI? Significant Cash Generation Generation n UGI? ? UGI generates over $125 million of free cash flow Diversification Diversification vest in annually for reinvestment annually for reinvestment This is after satisfying all Growth and Growth and Why Inv subsidiaries’ debt service, Income ongoing capex, and paying our dividend our dividend W Strong Track Record 6 May 5-7, 2013
Why Invest in UGI? Significant Cash UGI provides diversified Generation Generation exposure to p n UGI? ? • Commodities • Geographies • Customer Segments Diversification Diversification vest in • S Supply Chain l Ch i While benefiting from the common attributes our Growth and Growth and Why Inv businesses share businesses share Income This Diversification = less risk diversified income/cash risk , diversified income/cash W Strong Track flow, & multiple capital Record reinvestment opportunities 7 May 5-7, 2013
Why Invest in UGI? Significant Cash Generation Generation ? n UGI? UGI is a balanced growth and income investment Diversification Diversification vest in We are committed to Growth and Growth and delivering 6% to 10% EPS delivering 6% to 10% EPS Why Inv growth and 4% annual Income dividend growth W Strong Track Record 8 May 5-7, 2013
Why Invest in UGI? Significant Cash UGI has a strong track Generation Generation n UGI? ? record of meeting or record of meeting or exceeding our commitments to shareholders: Diversification Diversification vest in • 13.7% EPS growth* • 13 7% EPS growth* • 7% dividend growth* • Successful capital Growth and Growth and Why Inv reinvestment Income • 128 years of uninterrupted dividends W Strong Track • 25 years of consecutive dividend increases Record 9 *10-year CAGR through fiscal 2012 May 5-7, 2013
Why Invest in UGI? Significant Cash Generation Generation n UGI? ? Diversification Diversification vest in Growth and Growth and Why Inv Income W Strong Track Record 10 May 5-7, 2013
Total Shareholder Return 1 Year Total Return 3 Year Total Return 5 Year Total Return 50.0% 20.0% 16.0% 40.0% 16.0% 12.0% 30.0% 30 0% 12 0% 12.0% 8.0% 20.0% 8.0% 4.0% 10.0% 4.0% 0.0% 0.0% 0.0% UGI S&P 500 S&P 500 S&P 400 UGI S&P 500 S&P 500 S&P 400 UGI S&P 500 S&P 500 S&P 400 Utilities Midcap Utilities Midcap Utilities Midcap 10 Year Total Return 15 Year Total Return 20 Year Total Return 16.0% 16.0% 16.0% 12.0% 12.0% 12.0% 8.0% 8.0% 8.0% 4.0% 4.0% 4.0% 0.0% 0.0% 0.0% UGI S&P 500 S&P 500 S&P 400 UGI S&P 500 S&P 500 S&P 400 UGI S&P 500 S&P 500 S&P 400 Utilities Midcap Utilities Midcap Utilities Midcap * All charts through 3/31/2013 11 May 5-7, 2013
Business Unit Overview: Business Unit Overview: UGI Utilities 12 May 5-7, 2013
UGI Utilities: Overview Pennsylvania’s largest gas utility • 45 of the 67 PA counties served • ~600,000 gas customers • Service provided in 709 PA municipalities Service provided in 709 PA municipalities • ~60,000 electric customers 60 000 l t i t Attractive and growing service areas • Gas Utility customer growth of ~2% in 2012 G Utilit t th f 2% i 2012 • UGI System covers 28% of the total square miles in PA q • Approximately 12,000 miles of main 13 May 5-7, 2013
UGI Utilities: Growth Initiatives 14,000 Annual Gas Customer Additions Annual Gas Customer Additions Customer Growth 3.5% • In 2012 UGI Gas achieved +2% net 12,000 3.0% customer growth 10,000 10 000 2.5% 2 5% • Focused on customer conversions 8,000 2.0% from oil and other fuels 6,000 1.5% • Estimate > 250,000 potential Estimate 250,000 potential customers in proximity to UGI’s 4,000 1.0% mains 2,000 0.5% Infrastructure Investment I f t t I t t 0 0.0% • All cast iron main replaced by 2027, 2004 2005 2006 2007 2008 2009 2010 2011 2012 all bare steel by 2043 New Homes (LHS) Conversion (LHS) Net Growth % (RHS) Goal: To deliver safe and reliable gas service as we grow profitably 14 May 5-7, 2013
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AmeriGas: Overview AmeriGas provides service to all 50 states Employees 8,500+ 2,000 Locations 2+ million Customers Market share (%) ( ) 1.1+ billion 1 1+ billion Propane gallons sold annually Propane gallons sold annually 65 60.7 Largest player in a fragmented Largest player in a fragmented 15 1 15.1 15 industry with 15% market share 10 8.9 7.2 5 3.2 2.4 0 9 0.9 0.8 0.8 0 Blossman Suburban/ Growmark United AmeriGas + Ferrellgas Cenex MFA Oil All Gas Inc. Inergy Propane Heritage Co. Others 16 May 5-7, 2013 Gas
AmeriGas: Overview Customer Base Customer Base Unmatched geographic coverage • Customer density = efficiency • 29% Advantage in acquisitions, serving multi Advantage in acquisitions, serving multi- • Commercial/ Commercial/ 44% 44% state customers Industrial Residential Residential Geographic and end-use diversity • 13% 13% Counter-seasonal business (ACE) Motor Fuel • 5% 9% and other revenue streams Transport Agriculture (AmeriG ard f el s rcharges) (AmeriGuard, fuel surcharges) Geography reduce reliance on heating degree days 23% S Southwest th t 24% Strong balance sheet - supports • Northwest continued growth 26% Northeast 27% 27% Southeast Based upon retail gallons sold for the 17 May 5-7, 2013 12 month period ended March 31, 2013
AmeriGas: Growth Initiatives S Strategic Growth Initiatives G The AmeriGas Advantage • Leverage extensive distribution network and national footprint National Accounts National Accounts • Dedicated customer service/billing team D di t d t i /billi t • Service multiple locations; one bill • Counter seasonal summer business AmeriGas Cylinder • Nationwide distribution footprint Exchange • Significant scale: 44,000 distribution points • Nationwide footprint provides synergy opportunities Acquisitions Acquisitions • Acquisition integration is a core • Acquisition integration is a core strength as demonstrated by Heritage acquisition G Goal: 3-4% EBITDA growth, 5% distribution growth annually l 3 4% EBITDA th 5% di t ib ti th ll 18 May 5-7, 2013
International International 19 May 5-7, 2013
International: Overview Brand Brand France, Belgium, Netherlands, Luxembourg, Austria, Poland, C Countries of operation t i f ti Czech Republic, Hungary, Slovakia, Romania, Switzerland, C h R bli H Sl ki R i S it l d Norway, Sweden, Denmark, Finland, U.K. ~ 600 million (retail) Approx volume (gallons) ~ 80 million (wholesale) ( ) Forecasted EBITDA (in ~ $200 million USD) Total, SHV, DCC, MOL, Flogas, Calor, Vitogaz, Total SHV DCC MOL Flogas Calor Vitogaz Major Competitors Independent marketers Cylinder ~18% Bulk ~62% Bulk 62% Volume segments Autogas ~8% Wholesale ~12% 20 May 5-7, 2013
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