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John Walsh will assume the role of CEO in the spring of 2013. The presentation discusses UGI's businesses including domestic propane, international propane, utilities, and midstream and marketing. It highlights UGI's diversification across geographies and commodities, and track record of growth through capital investment, acquisitions, and dividend increases.

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London March 5, 2013 March 5, 2013 1
Management Team John Walsh President and COO (assuming CEO role - spring 2013) Kirk Oliver CFO Hugh Gallagher Treasurer March 5, 2013 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, 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. March 5, 2013 3
About UGI Corporation UGI Corporation is a distributor and marketer of energy products and services including natural gas, propane, butane, and electricity. UGI Corporation (NYSE: UGI) Domestic Propane* International Midstream and Utilities Propane Marketing (NYSE: APU) 100+ local brand names *100% GP interest and 25% of outstanding LP units March 5, 2013 4
About UGI Corporation UGI operates in 50 states and 16 European countries AmeriGas also operates in Hawaii and Alaska Domestic International Midstream & UGI Utilities Propane Propane Marketing March 5, 2013 5
UGI’s Businesses Similar End Functionally related with Uses (heating, numerous common Margin / cooking, commercial applications) Similar customer mix attributes pricing management (Residential and commercial) Common approach to Common Large number of hedging / risk small dollar management Attributes transactions Distribution / Common logistics businesses suppliers (via truck, Leverage (refiners, pipeline, wires) producers) intellectual capital or physical assets March 5, 2013 6
UGI’s Businesses Diversification through: Geographies Value chain • Operations across the United States • Operations range from generation, and 16 European countries gathering, storage, transportation, and sale to the end user Customer segments Commodities • Retail end-users • Natural gas • Commercial/Industrial users • Propane/Butane • Wholesale • Electricity This Diversification = less risk, diversified income, cash flows, & unique growth opportunities March 5, 2013 7
Our Track Record Goals: Capital 4% 6-10% investment and M&A to Generate cash flow to pay for both growth strengthen our Dividend EPS growth position across projects and growth target target dividend units Accomplishments: Heritage 7.0% 13.7% acquisition $125+ MM Shell LPG Dividend EPS growth acquisition of investable growth (10- (10-year cash generated LNG storage annually year CAGR*) CAGR*) expansion *through FY12 March 5, 2013 8
Dividend Performance History UGI has paid uninterrupted 4% dividends for 128 years and Dividend growth target increased its dividend for the past 25 consecutive years 7.0% Dividend growth (10- year CAGR*) *through FY12 March 5, 2013 9
Total Shareholder Return As of December 31, 2012 300 Total Return CAGR (%) 3 yr 5 yr 10 yr UGI UGI 14.5 7.2 13.7 S&P 500 Utilities 8.6 0.4 10.4 225 S&P 400 Midcap 13.6 5.1 10.5 Total Return (%) S&P 500 10.9 1.7 7.1 Domestic Utilities Propane 150 Int’l Propane 75 Midstream & Marketing - Dec-02 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-03 UGI S&P 500 S&P 500 Utilities S&P 400 Mid Cap March 5, 2013 10
Total Shareholder Return Proposition ~ 14% UGI is a balanced growth and income investment 4% dividend growth ~ 10% Reinvestment 4% of Cash dividend 3% - 4% growth ~ 8% EPS growth EPS growth from 4% from projects dividend growth projects 2% - 3% 2% - 3% Base EPS Base EPS Growth Base EPS Growth Growth 3%-4% 3%-4% 3%-4% March 5, 2013 11
The UGI “Virtuous Circle” Income-producing businesses generate cash for growth opportunities and dividends Cash flow Dividends Base business earnings growth $250 MM- $125 MM- 3-4% $290 MM* $140 MM* Organic investment and M&A1 Incremental earnings growth $125 MM- 3-6% $150 MM* *multi-year average forecast 1 after business unit CAPEX March 5, 2013 12
Meeting UGI’s growth goals 4% Cash dividend generation growth Midstream Investments, Intl./domestic Reinvestment propane acq., of Cash 3% - 4% Utility acq. Auburn II, Storage EPS growth from enhancements, LNG projects expansion, gathering systems 2% - 3% Utility conversions/growth, AmeriGas Base EPS Growth EBITDA growth, Midstream & Marketing organic growth, natural 3%-4% gas marketing in France, etc. March 5, 2013 13
Base Growth Looking Forward: EPS Expected EPS Contribution 6% to 10% growth targets by business unit $3.05 (forecasted multi-year average) $3.00 $2.95 $2.90 19% 35% Domestic Utilities $2.85 Propane $2.80 Int’l Propane $2.75 23% 23% $2.70 Midstream & $2.65 Marketing $2.60 $2.55 Base growth Base Growth $2.50 2013 2014 2015 March 5, 2013 14
Business Unit Overview March 5, 2013 15
UGI Utilities Pennsylvania’s largest gas utility • 45 of the 67 PA counties served • Service provided in 709 PA municipalities Wide range of customer opportunities • ~600,000 gas customers • ~60,000 electric customers Attractive and growing service areas • Gas Utility customer growth of ~2% in 2012 • UGI System covers 28% of the total square miles in PA • Approximately 12,000 miles of main March 5, 2013 16
Focus on Customer Growth • In 2012 UGI Gas achieved +2% net customer growth Annual Natural Gas Savings over Oil • Focused on customer conversions from oil and other fuels $1,553 $1,485 • Historical growth was from new housing market $922 • Estimate that ~500,000 potential $860 customers in proximity to UGI’s mains $517 • The vast majority of conversions are oil customers within 75 to 100 feet of our mains 2008 2009 2010 2011 2012 March 5, 2013 17
Historical Growth: Residential 14,000 3.5% Annual Gas Customer Additions 12,000 3.0% 10,000 2.5% 8,000 2.0% 6,000 1.5% 4,000 1.0% 2,000 0.5% 0 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 New Homes (LHS) Conversion (LHS) Net Growth % (RHS) March 5, 2013 18
Infrastructure Management • UGI Utilities is in the process of replacing of all cast iron main within 14 years and all bare steel main within 30 years • We have accelerated our spending and rate of replacement in infrastructure over the last 5 years Replacement Investment ($MM) 71.2 60.3 63.4 50.0 40.5 2009 2010 2011 2012 2013 March 5, 2013 19
New AmeriGas Profile AmeriGas provides service to all 50 states 8,500+ Employees 2,000 Locations 2+ million Customers 1.2+ billion Propane gallons sold annually 160 Brands March 5, 2013 20
Unmatched Nationwide Footprint Largest player in a fragmented industry with 15% market share Market share (%) 65 60.7 15.1 15 10 8.9 7.2 5 3.2 2.4 0.9 0.8 0.8 0 AmeriGas + Ferrellgas Suburban/ Growmark Cenex MFA Oil United Blossman All Heritage Inergy Co. Propane Gas Inc. Others Gas March 5, 2013 21
Business Diversification Customer Base Geography 23% 36% Southwest 24% 47% Commercial/ Industrial Residential Northwest 26% Northeast 27% Southeast 11% Motor Fuel 3% 3% Agriculture Transport Based upon combined AmeriGas and Heritage retail gallons sold March 5, 2013 22 for the 12 month period ended December 31, 2011
Competitive Advantages • Unmatched geographic coverage • Customer density = efficiency • Advantage in acquisitions, serving multi-state customers • Geographic and end-use diversity • Size provides purchasing advantage • Counter-seasonal business (ACE) and non-volumetric revenue streams (AmeriGuard, fuel surcharges) reduce reliance on heating degree days • Track record of acquisitions & delivering pro forma results • Strong balance sheet - supports continued growth March 5, 2013 23
Strategic Growth Opportunities AmeriGas Cylinder Exchange National Accounts • Counter-seasonal to heating • Leverages national footprint season • Service multiple locations – one bill • Significant scale - 44,000 distribution points • Centralized account management • 13 million cylinders per year • Expected to grow EBITDA 3%-5% annually • Expected to grow EBITDA 3%-4% annually 16,000 14,000 12,000 10,000 8,000  Over 200 customers 6,000 4,000  Serves 31,000 locations 2,000 0 March 5, 2013 24
International Propane March 5, 2013 25
UGI’s Propane Businesses Domestic International Brand 100+ local brand names Countries of France, Belgium, Netherlands, Luxembourg, Austria, U.S. Poland, Czech Republic, Hungary, Slovakia, Romania, operation Switzerland, Norway, Sweden, Denmark, Finland, U.K. Approx volume >1.2 billion (retail) >600 million (retail) (gallons) >100 million (wholesale) > 80 million (wholesale) Forecasted $630-$660 million ~ $200 million EBITDA (in USD) Ferrellgas, Suburban, Total, SHV, DCC, MOL, Flogas, Calor, Vitogaz, Major Competitors 3,500 independent Independent marketers marketers Cylinder ~ 18% Cylinder ~18% Bulk ~ 74% Bulk ~62% Volume segments Autogas – na Autogas ~8% Wholesale ~ 8% Wholesale ~12% March 5, 2013 26
Characteristics Customer segments: U.S. Europe Bulk delivery business (250 – 1,000 gallons) √ √ Cylinder exchange √ √ Motor fuel – forklifts √ √ Motor fuel – over the road autogas √ Competitive Landscape U.S. Europe Fragmented market √ Larger share / fewer independent marketers √ Pricing/Margin Management: U.S. Europe Frequent changes (daily/weekly) √ Less frequent (evolving to US model) √ Competitive Advantages: U.S. Europe Scale √ √ “Hub and spoke” truck-based delivery logistics √ √ Risk management – credit and supply √ √ Safety √ √ Customer service √ √ March 5, 2013 27
UGI Europe Growth Initiatives ORGANIC GROWTH: • Heating Oil to LPG conversions in select countries • Penetration of new LPG markets in U.K. • Residential customer growth in Poland • Composite cylinder for specific channels • Commercial bulk business in Poland and Scandinavia • Expand natural gas marketing segment • Piped network development in France and Poland ACQUISITION GROWTH: • Pursue opportunities to enhance position in current markets (BP Poland) • Potential to build-out position in Northern and Central Europe March 5, 2013 28
Midstream & Marketing Lines of Business Marketing Generation Midstream Natural Gas Generation Pipelines and • >100 Bcf • Hunlock: 125 MWs Gathering • > 30,000 locations combined cycle • 33 LDCs • Conemaugh: 102 Storage – 15 Bcf MWs coal-fired • Renewable energy: Peaking Power ~ 17 MWs • 1.25 Bcf LNG Storage • > 2 MM MWhrs Capacity • > 10,000 locations • 0.40 Bcf capacity in 6 • 19 EDCs Propane Air plants March 5, 2013 29
Commodity Marketing We supply over 100 bcf of gas and over 2 MM MWhrs of power to 40,000 commercial and industrial facilities throughout the Mid-Atlantic region Strategy Target small and medium-size businesses that value our services (hedging, management of energy requirements); we are not a wholesaler Characteristics • Little commodity exposure - back-to-back fulfillment • No trading or speculation • Excellent sales team • Very high customer retention rates • Customer diversification • Strong back office and IT to support the business • Supplier diversification • Very low bad debts rate • Credit insurance on large accounts March 5, 2013 30
Commodity Marketing Consistent, disciplined approach results in steady earnings growth through numerous disruptive events 22% warmer Commodity Marketing Margin than normal winter $80,000 Commodity spike to Katrina/Rita ~$13/Dth and price spikes drop to ~$3/Dth $60,000 TXU (last acquisition) $40,000 Enron Collapse $20,000 $0 1999 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Natural Gas Retail Power Other March 5, 2013 31
Electric Generation Electric generation strategy: • Our assets are former utility rate plants that have been modestly expanded in recent years • Our generation portfolio: • provides balancing support for our growing retail power marketing business • reduces supplier credit • Electric generation assets include: • Conemaugh: 6% ownership in Conemaugh, a coal-fired station with a net heat rate of ~ 9,700 btu/kwh (~102 MW) • Hunlock: 100% ownership of natural gas combined cycle plant with a net heat rate of ~7,700 btu/kwh (~125 MW) • Renewables (landfill gas and solar) • Modest earnings contributor going forward • FY08: ~ $15MM, FY10: ~ $7MM, FY12: ~ ($1MM) • Future: ~ $4MM-$8MM – about $.03 to $.06 per share net income contribution March 5, 2013 32
Midstream UGI footprint and the Marcellus Shale Erie Potter Warren McKean Tioga Bradford Susquehanna Crawford Wayne Forest Wyoming Venango Elk Cameron Sullivan Mercer Lycoming Pike Clinton Clarion Jefferson Luzerne Lawrence Monroe Clearfield Union Butler Centre Carbon Armstrong North Umberland Beaver Snyder Indiana Schuylkill Berks Allegheny UGI Storage Cambria Blair Dauphin Bucks Perry LNG Lebanon Westmoreland Huntingdon Propane-Air Washington Cumberland Chester Marcellus Shale Lancaster Auburn I Greene Fayette Somerset Bedford Fulton Franklin Adams York Auburn II Tennessee Transco March 5, 2013 33
Midstream Strategy Leverage UGI’s geographic position/demand, assets, and intellectual capital to build a significant midstream business in the Marcellus • Link supply to markets by leveraging UGI’s existing pipeline infrastructure • Build new capacity from prolific Marcellus areas to market centers in PA and beyond • Integrate pipeline infrastructure with other midstream assets such as storage, peaking, power generation and interstate contracts • Develop integrated products and services to enable utilities to transition from long haul pipelines to local supply options • Provide timely, competitive gathering services to producers March 5, 2013 34
Pipelines and Gathering: Auburn II • 28 miles 20”/12” pipeline • Will run south to Transco and UGI PNG • Capacity 380,000 Dth/day • Investment: ~ $160 million • Announced: October 2011 • Current status: Awaiting final permits and mobilizing for construction • Expected in-service: FY14 • Shippers include Citrus and UGI PNG 35 35 March 5, 2013
UGI’s Midstream Opportunities Tenaska • Jointly developing gas resources with Tenaska Resources, LLC in the Marcellus Shale region in north-central PA • UGI will construct and operate 20 miles of new gathering pipelines • UGI also acquired a 19% interest in acreage that Tenaska operates • Both projects are located close to UGI’s midstream and distribution assets LNG as a fuel • UGI agreed to supply LNG to fuel a major producer’s drilling rigs in the Marcellus • LNG displaces diesel in field compressors • Very low cost liquefaction creates a competitive advantage • Other opportunities include LNG for transportation, and LNG for large commercial facilities that are beyond the reach of gas mains • Currently in discussions with producers representing over 1 Bcf/yr of potential demand March 5, 2013 36
In Conclusion March 5, 2013 37
In conclusion UGI Corporation is a balanced growth and income investment AmeriGas Utilities • Significant scale drives 3% to 4% • Strong service territory EBITDA growth • Organic customer growth through • Diversified by end use and conversions geography • Low risk, A-rated Utility business • Diversification mitigates reliance on weather International Midstream and Marketing • Innovation (cylinders, nat gas • Focus on projects to build additional marketing) scale as a Midstream business within • Scale increases bolt-on acquisition the Marcellus opportunities • Organic growth in energy marketing • A nascent brand to develop in the UK • Development of ancillary LNG opportunities March 5, 2013 38
Diversified Growth Opportunities UGI has a variety of initiatives in place to drive growth in all its businesses 15 Bcf gas storage Gas Acquisitions gathering / pipelines Cylinder exchange and Natural gas national peaking/LNG accounts Natural gas Energy marketing marketing Incorporate Organic growth Marcellus into opportunities Utilities supply Customer Acquisitions UGI Corp conversions International Propane Domestic Propane Midstream & Marketing UGI Utilities March 5, 2013 39
Total Shareholder Return Proposition ~ 14% UGI is a balanced growth and income investment 4% dividend growth ~ 10% Reinvestment 4% of Cash dividend 3% - 4% growth ~ 8% EPS growth EPS growth from 4% from projects dividend growth projects 2% - 3% 2% - 3% Base EPS Base EPS Growth Base EPS Growth Growth 3%-4% 3%-4% 3%-4% March 5, 2013 40
Appendix March 5, 2013 41
UGI Summary Financial Information Year Ended September 30, (millions of dollars) 2012 2011 2010 2009 2008 Income Statement Revenues $ 6,519.2 $ 6,091.3 $ 5,591.4 $ 5,737.8 $ 6,648.2 Cost of sales (4,111.2) (4,010.9) (3,584.0) (3,670.6) (4,744.6) Total Margin 2,408.0 2,080.4 2,007.4 2,067.2 1,903.6 Operating expenses (1,591.7) (1,266.4) (1,177.4) (1,220.0) (1,157.3) Taxes other than income taxes (17.3) (16.6) (18.6) (16.9) (18.3) Depreciation and amortization (316.0) (227.9) (210.2) (200.9) (184.4) Other income, net 38.3 46.5 58.0 55.9 41.6 Operating income 521.3 616.0 659.2 685.3 585.2 Loss from equity investees (0.3) (0.9) (2.1) (3.1) (2.9) Loss on extinguishment of debt (13.3) (38.1) - - - Interest expense (221.5) (138.0) (133.8) (141.1) (142.5) Income before income taxes 286.2 439.0 523.3 541.1 439.8 Income taxes (99.6) (130.8) (167.6) (159.1) (134.5) Net income $ 186.6 $ 308.2 $ 355.7 $ 382.0 $ 305.3 Less: net income attributable to noncontrolling interests, principally AmeriGas Partners 12.8 (75.3) (94.7) (123.5) (89.8) Net income attributable to UGI $ 199.4 $ 232.9 $ 261.0 $ 258.5 $ 215.5 Average diluted shares outstanding (MM) 113.4 112.9 110.5 109.3 108.5 GAAP diluted EPS $ 1.76 $ 2.06 $ 2.36 $ 2.36 $ 1.99 March 5, 2013 42
UGI EPS Reconciliation Year Ended September 30, (millions of dollars, except where otherwise indicated) 2012 2011 2010 2009 2008 GAAP Net Income $ 199.4 $ 232.9 $ 261.0 $ 258.5 $ 215.5 Adjustments: Acquisition and transition expenses $ (13.3) Loss on early extinguishment of debt at AmeriGas $ (2.2) $ (10.3) Loss from discontinuance of cash flow hedge accounting at AmeriGas $ (3.9) Gains from sale of AmeriGas storage terminals $ 10.4 Gain from sale of Atlantic Energy LLC - UGI Energy Services $ 17.2 Adjusted Net Income $ 214.9 $ 247.1 $ 243.8 $ 248.1 $ 215.5 GAAP EPS $ 1.76 $ 2.06 $ 2.36 $ 2.36 $ 1.99 Adjusted EPS $ 1.90 $ 2.19 $ 2.21 $ 2.27 $ 1.99 Diluted Shares Outstanding 113.4 112.9 110.5 109.3 108.5 March 5, 2013 43
AmeriGas Propane Year Ended September 30, (millions of dollars, except where otherwise indicated) 2012 2011 2010 2009 2008 Income Statement - AmeriGas Propane Revenues $ 2,921.6 $ 2,538.0 $ 2,320.3 $ 2,260.1 $ 2,815.2 Cost of sales (1,719.7) (1,605.3) (1,395.1) (1,316.5) (1,908.3) Total Margin 1,201.9 932.7 925.2 943.6 906.9 Operating expenses (888.7) (620.6) (609.7) (615.1) (610.5) Depreciation and amortization (169.1) (94.7) (87.4) (83.9) (80.4) Gain on sale of storage facility - - - 39.9 - Other income, net 26.5 25.6 7.7 16.0 18.9 Operating income 170.6 242.9 235.8 300.5 234.9 Interest expense (142.6) (63.5) (65.1) (70.3) (72.9) Loss on extinguishment of debt (13.3) (38.1) - - - Income before income taxes 14.7 141.3 170.7 230.2 162.0 Income taxes - AmeriGas Propane, Inc. and Subsidiaries (1) (11.6) (26.4) (32.3) (41.6) (29.7) Noncontrolling interests (2) 12.8 (75.0) (91.1) (123.6) (88.4) Net income attributable to UGI $ 15.9 $ 39.9 $ 47.3 $ 65.0 $ 43.9 (1) Primarily taxes related to the general partner's ownership interests in the Partnership. (2) The general public's interests in AmeriGas Partners, L.P. March 5, 2013 44
AmeriGas Supplemental Information: Footnotes  The enclosed supplemental information contains a reconciliation of Earnings before interest expense, income taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA to Net Income and Distributable Cash Flow to Cash Flow from Operations.  EBITDA, Adjusted EBITDA and Distributable Cash Flow are not measures of performance or financial condition under accounting principles generally accepted in the United States ("GAAP"). Management believes EBITDA, Adjusted EBITDA and Distributable Cash Flow are meaningful non-GAAP financial measures used by investors to (1) compare the Partnership's operating performance with that of other companies within the propane industry and (2) assess the Partnership’s ability to pay distributions and meet its loan covenants. The Partnership's definitions of EBITDA, Adjusted EBITDA and Distributable Cash Flow may be different from those used by other companies.  EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss) attributable to AmeriGas Partners, L.P. Management uses EBITDA to compare year-over-year profitability of the business without regard to capital structure as well as to compare the relative performance of the Partnership to that of other master limited partnerships without regard to their financing methods, capital structure, income taxes or historical cost basis. Management uses Adjusted EBITDA to exclude from AmeriGas Partners’ EBITDA gains and losses that competitors do not necessarily have to provide additional insight into the comparison of year-over-year profitability to that of other master limited partnerships. In view of the omission of interest, income taxes, depreciation and amortization from EBITDA and Adjusted EBITDA, management also assesses the profitability of the business by comparing net income attributable to AmeriGas Partners, L.P. for the relevant years. Management also uses EBITDA to assess the Partnership's profitability because its parent, UGI Corporation, uses the Partnership's EBITDA to assess the profitability of the Partnership, which is one of UGI Corporation’s industry segments. UGI Corporation discloses the Partnership's EBITDA in its disclosures about its industry segments as the profitability measure for its domestic propane segment.  Distributable cash flow as defined herein should not be considered an alternative to cash flows from operating activities or any other measure of financial performance calculated in accordance with generally accepted accounting principles as those items are used to measure operating performance, liquidity, or the ability to service debt obligations. Management believes that distributable cash flow provides additional information for evaluating our ability to declare and pay distributions to unitholders. March 5, 2013 45
AmeriGas Propane EBITDA Reconciliation Year Ended September 30, (millions of dollars) 2012 2011 2010 2009 2008 Net income attributable to AmeriGas Partners, L.P. $ 11.0 $ 138.5 $ 165.3 $ 224.6 $ 158.0 Income tax expense 1.9 0.4 3.2 2.6 1.7 Interest expense 142.6 63.5 65.1 70.4 72.9 Depreciation and amortization 169.2 94.7 87.4 83.8 80.4 EBITDA 324.7 297.1 321.0 381.4 313.0 Add back: Loss on extinguishment of debt 13.3 38.1 Add back: Heritage Propane acquisition and transition expense 46.2 Exclude: Gain on sale of storage facility (39.9) Add back: Litigation reserve adjustment 12.2 Exclude: Cumulative effect of accounting changes 7.0 Adjusted EBITDA $ 384.2 $ 335.2 $ 340.2 $ 341.5 $ 313.0 March 5, 2013 46
International Propane Year Ended September 30, (millions of dollars, except where otherwise indicated) 2012 2011 2010 2009 2008 Income Statement - International Propane Revenues $ 1,946.0 $ 1,488.7 $ 1,059.5 $ 955.3 $ 1,124.8 Cost of sales (1,325.8) (970.8) (582.1) (429.5) (651.9) Total Margin 620.2 517.9 477.4 525.8 472.9 Operating expenses, net of other income (429.2) (361.2) (300.0) (317.9) (311.4) Depreciation and amortization (79.2) (70.6) (60.4) (56.5) (54.7) Operating income 111.8 86.1 117.0 151.4 106.8 Loss from equity investees (0.0) (0.9) (2.1) (3.1) (2.9) Interest expense (30.9) (28.2) (25.4) (26.6) (29.7) Income before income taxes 80.9 57.0 89.5 121.7 74.2 Income taxes (15.8) (15.7) (30.4) (43.7) (20.7) Noncontrolling interests (0.0) (0.3) (0.3) 0.3 (1.2) Net income attributable to UGI $ 65.1 $ 41.0 $ 58.8 $ 78.3 $ 52.3 March 5, 2013 47
UGI Utilities Year Ended September 30, (millions of dollars) 2012 2011 2010 2009 2008 Income Statement - UGI Utilities Revenues $ 884.3 $ 1,137.4 $ 1,169.5 $ 1,381.3 $ 1,289.1 Cost of sales (459.1) (678.5) (730.5) (944.8) (920.4) Total Margin 425.2 458.9 439.0 436.5 368.7 Operating expenses (174.8) (189.0) (183.7) (206.2) (158.9) Taxes other than income taxes (17.2) (16.6) (18.6) (16.9) (18.3) Depreciation and amortization (52.8) (52.5) (53.5) (51.1) (41.4) Other income, net 5.0 10.8 6.3 7.2 12.9 Operating income 185.4 211.4 189.5 169.5 163.0 Interest expense (42.4) (42.7) (42.3) (43.9) (39.1) Income before income taxes 143.0 168.7 147.2 125.6 123.9 Income taxes (62.5) (69.4) (64.1) (46.9) (49.9) Net income attributable to UGI $ 80.5 $ 99.3 $ 83.1 $ 78.7 $ 74.0 March 5, 2013 48
Midstream & Marketing Year Ended September 30, (millions of dollars) 2012 2011 2010 2009 2008 Income Statement - Energy Services Revenues $ 859.4 $ 1,059.7 $ 1,145.9 $ 1,224.7 $ 1,619.5 Cost of sales (730.9) (920.0) (1,010.7) (1,098.5) (1,495.4) Total Margin 128.5 139.7 135.2 126.2 124.1 Operating expenses, net of other income (53.4) (48.8) (7.5) (52.9) (39.8) Depreciation and amortization (12.7) (8.0) (7.7) (8.5) (7.0) Operating income 62.4 82.9 120.0 64.8 77.3 Interest expense (4.8) (2.7) (0.2) - - Income before income taxes 57.6 80.2 119.8 64.8 77.3 Income taxes (21.2) (27.7) (51.6) (26.7) (32.0) Net income attributable to UGI (*) $ 36.4 $ 52.5 $ 68.2 $ 38.1 $ 45.3 (*) Includes after tax gain from the sale of Atlantic Energy of $17.2 March 5, 2013 49
EPS Growth: 6% to 10% REINVESTMENT OF $3.25 CASH: 2013 guidance Midstream investments $3.00 Propane acquisitions - Int’l & domestic Utility acquisitions $2.75 PROJECTS: $2.50 Auburn II, Storage enhancements, LNG 2013 guidance expansion, gathering 2013 guidance systems $2.25 $2.00 BASE GROWTH: Utility conversions/growth, AmeriGas 2013 2014 2015 EBITDA growth, Midstream & Marketing organic growth, natural gas marketing in France, etc. March 5, 2013 50
Composition of Base Growth* .01 .09-.11 .02-.03 .04-.05 .01-.02 .01-.02 Utilities Generation Midstream & International AmeriGas Base growth target Marketing BASE GROWTH of 3% to 4%: Utility conversions/growth, AmeriGas EBITDA growth, Midstream & Marketing organic growth, natural gas marketing in France, etc. * Forecasted multi-year average March 5, 2013 51
Looking Forward: Growth beyond FY13 $2.75 .07-.10 .04-.06 .09-.11 .03 .04-.06 $2.50 $2.25 $2.00 FY13 APU FY13 Base Growth Projects Reinvested FY 14 Guidance** transition (Auburn II, cash costs Storage, Marcellus) **As disclosed in the press release dated January 31, 2013 March 5, 2013 52
AmeriGas Unit Margin Management A long track record of exceptional margin management through volatile propane cost environments AmeriGas Margin History $1.80 $1.80 Propane Unit Margins Avg. Mt. Belvieu Cost $1.60 $1.60 $1.40 $1.40 $1.20 $1.20 $1.00 $1.00 $0.80 $0.80 $0.60 $0.60 $0.40 $0.40 $0.20 $0.20 $0.00 $0.00 2005 2006 2007 2008 2009 2010 2011 2012 Avg. Mt. Belvieu Cost Propane Unit Margins March 5, 2013 53
International Unit Margin Management Intl. Propane has demonstrated the ability to manage margins in various cost environments – this is a core strength of all of UGI’s Propane businesses Antargaz Margin History 700 € 700 € Propane Unit Margins (€/T) Avg. Platt’s Cost (€/T) 600 € 600 € 500 € 500 € 400 € 400 € 300 € 300 € 200 € 200 € 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Avg. Platt's Cost Propane Unit Margins March 5, 2013 54
FAQs Frequently Asked Questions Is natural gas making significant inroads on areas traditionally served by heating oil? • Yes. Natural gas is less expensive and more convenient for consumers • Most conversions take place within 75-100 feet from the main • A significant number of heating oil customers remain “resident” along these mains and are prime candidates for conversion • In FY2012, UGI Utilities converted over 12,000 residential customers to natural gas and the vast majority of these were converted from heating oil Is natural gas also making significant inroads on areas traditionally served by propane? • No. Natural gas conversions typically extend only 75-100 feet from the main – most propane users are outside of this reach • AmeriGas estimates that it loses less than 3,000 customers annually to natural gas (out of a customer base of 2 million) • In FY11, UGI Utilities converted over 12,000 residential customers to natural gas and less than 200 of these were converted from propane • Most propane customers reside in less densely-populated areas well off the gas grid, making conversions less attractive to gas utility companies Does UGI Energy Services’ marketing business have significant energy exposure? • No. UGI Energy Services’ energy marketing business adheres to a fulfillment business model • Volumes are hedged when a price commitment is made by a customer • UGI does not employ any traders or engage in speculative trading • UGI does not have a large asset base to protect (our small amount of electric generation is sold into the market) • Average length of contract is ~9 months for gas customers, ~12 months for electric customers March 5, 2013 55
Investor Relations: 610-337-7000 Hugh Gallagher (x1029) gallagherh@ugicorp.com Simon Bowman (x3645) bowmans@ugicorp.com March 5, 2013 56

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London roadshow slide deck final

  • 1.
    London March 5, 2013 March 5, 2013 1
  • 2.
    Management Team John Walsh President and COO (assuming CEO role - spring 2013) Kirk Oliver CFO Hugh Gallagher Treasurer March 5, 2013 2
  • 3.
    About This Presentation Thispresentation 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, 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. March 5, 2013 3
  • 4.
    About UGI Corporation UGI Corporation is a distributor and marketer of energy products and services including natural gas, propane, butane, and electricity. UGI Corporation (NYSE: UGI) Domestic Propane* International Midstream and Utilities Propane Marketing (NYSE: APU) 100+ local brand names *100% GP interest and 25% of outstanding LP units March 5, 2013 4
  • 5.
    About UGI Corporation UGI operates in 50 states and 16 European countries AmeriGas also operates in Hawaii and Alaska Domestic International Midstream & UGI Utilities Propane Propane Marketing March 5, 2013 5
  • 6.
    UGI’s Businesses Similar End Functionally related with Uses (heating, numerous common Margin / cooking, commercial applications) Similar customer mix attributes pricing management (Residential and commercial) Common approach to Common Large number of hedging / risk small dollar management Attributes transactions Distribution / Common logistics businesses suppliers (via truck, Leverage (refiners, pipeline, wires) producers) intellectual capital or physical assets March 5, 2013 6
  • 7.
    UGI’s Businesses Diversification through: Geographies Value chain • Operations across the United States • Operations range from generation, and 16 European countries gathering, storage, transportation, and sale to the end user Customer segments Commodities • Retail end-users • Natural gas • Commercial/Industrial users • Propane/Butane • Wholesale • Electricity This Diversification = less risk, diversified income, cash flows, & unique growth opportunities March 5, 2013 7
  • 8.
    Our Track Record Goals: Capital 4% 6-10% investment and M&A to Generate cash flow to pay for both growth strengthen our Dividend EPS growth position across projects and growth target target dividend units Accomplishments: Heritage 7.0% 13.7% acquisition $125+ MM Shell LPG Dividend EPS growth acquisition of investable growth (10- (10-year cash generated LNG storage annually year CAGR*) CAGR*) expansion *through FY12 March 5, 2013 8
  • 9.
    Dividend Performance History UGI has paid uninterrupted 4% dividends for 128 years and Dividend growth target increased its dividend for the past 25 consecutive years 7.0% Dividend growth (10- year CAGR*) *through FY12 March 5, 2013 9
  • 10.
    Total Shareholder Return As of December 31, 2012 300 Total Return CAGR (%) 3 yr 5 yr 10 yr UGI UGI 14.5 7.2 13.7 S&P 500 Utilities 8.6 0.4 10.4 225 S&P 400 Midcap 13.6 5.1 10.5 Total Return (%) S&P 500 10.9 1.7 7.1 Domestic Utilities Propane 150 Int’l Propane 75 Midstream & Marketing - Dec-02 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-03 UGI S&P 500 S&P 500 Utilities S&P 400 Mid Cap March 5, 2013 10
  • 11.
    Total Shareholder ReturnProposition ~ 14% UGI is a balanced growth and income investment 4% dividend growth ~ 10% Reinvestment 4% of Cash dividend 3% - 4% growth ~ 8% EPS growth EPS growth from 4% from projects dividend growth projects 2% - 3% 2% - 3% Base EPS Base EPS Growth Base EPS Growth Growth 3%-4% 3%-4% 3%-4% March 5, 2013 11
  • 12.
    The UGI “VirtuousCircle” Income-producing businesses generate cash for growth opportunities and dividends Cash flow Dividends Base business earnings growth $250 MM- $125 MM- 3-4% $290 MM* $140 MM* Organic investment and M&A1 Incremental earnings growth $125 MM- 3-6% $150 MM* *multi-year average forecast 1 after business unit CAPEX March 5, 2013 12
  • 13.
    Meeting UGI’s growthgoals 4% Cash dividend generation growth Midstream Investments, Intl./domestic Reinvestment propane acq., of Cash 3% - 4% Utility acq. Auburn II, Storage EPS growth from enhancements, LNG projects expansion, gathering systems 2% - 3% Utility conversions/growth, AmeriGas Base EPS Growth EBITDA growth, Midstream & Marketing organic growth, natural 3%-4% gas marketing in France, etc. March 5, 2013 13
  • 14.
    Base Growth Looking Forward: EPS Expected EPS Contribution 6% to 10% growth targets by business unit $3.05 (forecasted multi-year average) $3.00 $2.95 $2.90 19% 35% Domestic Utilities $2.85 Propane $2.80 Int’l Propane $2.75 23% 23% $2.70 Midstream & $2.65 Marketing $2.60 $2.55 Base growth Base Growth $2.50 2013 2014 2015 March 5, 2013 14
  • 15.
    Business Unit Overview March 5, 2013 15
  • 16.
    UGI Utilities Pennsylvania’s largestgas utility • 45 of the 67 PA counties served • Service provided in 709 PA municipalities Wide range of customer opportunities • ~600,000 gas customers • ~60,000 electric customers Attractive and growing service areas • Gas Utility customer growth of ~2% in 2012 • UGI System covers 28% of the total square miles in PA • Approximately 12,000 miles of main March 5, 2013 16
  • 17.
    Focus on CustomerGrowth • In 2012 UGI Gas achieved +2% net customer growth Annual Natural Gas Savings over Oil • Focused on customer conversions from oil and other fuels $1,553 $1,485 • Historical growth was from new housing market $922 • Estimate that ~500,000 potential $860 customers in proximity to UGI’s mains $517 • The vast majority of conversions are oil customers within 75 to 100 feet of our mains 2008 2009 2010 2011 2012 March 5, 2013 17
  • 18.
    Historical Growth: Residential 14,000 3.5% Annual Gas Customer Additions 12,000 3.0% 10,000 2.5% 8,000 2.0% 6,000 1.5% 4,000 1.0% 2,000 0.5% 0 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 New Homes (LHS) Conversion (LHS) Net Growth % (RHS) March 5, 2013 18
  • 19.
    Infrastructure Management • UGIUtilities is in the process of replacing of all cast iron main within 14 years and all bare steel main within 30 years • We have accelerated our spending and rate of replacement in infrastructure over the last 5 years Replacement Investment ($MM) 71.2 60.3 63.4 50.0 40.5 2009 2010 2011 2012 2013 March 5, 2013 19
  • 20.
    New AmeriGas Profile AmeriGas provides service to all 50 states 8,500+ Employees 2,000 Locations 2+ million Customers 1.2+ billion Propane gallons sold annually 160 Brands March 5, 2013 20
  • 21.
    Unmatched Nationwide Footprint Largestplayer in a fragmented industry with 15% market share Market share (%) 65 60.7 15.1 15 10 8.9 7.2 5 3.2 2.4 0.9 0.8 0.8 0 AmeriGas + Ferrellgas Suburban/ Growmark Cenex MFA Oil United Blossman All Heritage Inergy Co. Propane Gas Inc. Others Gas March 5, 2013 21
  • 22.
    Business Diversification Customer Base Geography 23% 36% Southwest 24% 47% Commercial/ Industrial Residential Northwest 26% Northeast 27% Southeast 11% Motor Fuel 3% 3% Agriculture Transport Based upon combined AmeriGas and Heritage retail gallons sold March 5, 2013 22 for the 12 month period ended December 31, 2011
  • 23.
    Competitive Advantages • Unmatched geographic coverage • Customer density = efficiency • Advantage in acquisitions, serving multi-state customers • Geographic and end-use diversity • Size provides purchasing advantage • Counter-seasonal business (ACE) and non-volumetric revenue streams (AmeriGuard, fuel surcharges) reduce reliance on heating degree days • Track record of acquisitions & delivering pro forma results • Strong balance sheet - supports continued growth March 5, 2013 23
  • 24.
    Strategic Growth Opportunities AmeriGas Cylinder Exchange National Accounts • Counter-seasonal to heating • Leverages national footprint season • Service multiple locations – one bill • Significant scale - 44,000 distribution points • Centralized account management • 13 million cylinders per year • Expected to grow EBITDA 3%-5% annually • Expected to grow EBITDA 3%-4% annually 16,000 14,000 12,000 10,000 8,000  Over 200 customers 6,000 4,000  Serves 31,000 locations 2,000 0 March 5, 2013 24
  • 25.
    International Propane March 5, 2013 25
  • 26.
    UGI’s Propane Businesses Domestic International Brand 100+ local brand names Countries of France, Belgium, Netherlands, Luxembourg, Austria, U.S. Poland, Czech Republic, Hungary, Slovakia, Romania, operation Switzerland, Norway, Sweden, Denmark, Finland, U.K. Approx volume >1.2 billion (retail) >600 million (retail) (gallons) >100 million (wholesale) > 80 million (wholesale) Forecasted $630-$660 million ~ $200 million EBITDA (in USD) Ferrellgas, Suburban, Total, SHV, DCC, MOL, Flogas, Calor, Vitogaz, Major Competitors 3,500 independent Independent marketers marketers Cylinder ~ 18% Cylinder ~18% Bulk ~ 74% Bulk ~62% Volume segments Autogas – na Autogas ~8% Wholesale ~ 8% Wholesale ~12% March 5, 2013 26
  • 27.
    Characteristics Customer segments: U.S. Europe Bulk delivery business (250 – 1,000 gallons) √ √ Cylinder exchange √ √ Motor fuel – forklifts √ √ Motor fuel – over the road autogas √ Competitive Landscape U.S. Europe Fragmented market √ Larger share / fewer independent marketers √ Pricing/Margin Management: U.S. Europe Frequent changes (daily/weekly) √ Less frequent (evolving to US model) √ Competitive Advantages: U.S. Europe Scale √ √ “Hub and spoke” truck-based delivery logistics √ √ Risk management – credit and supply √ √ Safety √ √ Customer service √ √ March 5, 2013 27
  • 28.
    UGI Europe GrowthInitiatives ORGANIC GROWTH: • Heating Oil to LPG conversions in select countries • Penetration of new LPG markets in U.K. • Residential customer growth in Poland • Composite cylinder for specific channels • Commercial bulk business in Poland and Scandinavia • Expand natural gas marketing segment • Piped network development in France and Poland ACQUISITION GROWTH: • Pursue opportunities to enhance position in current markets (BP Poland) • Potential to build-out position in Northern and Central Europe March 5, 2013 28
  • 29.
    Midstream & Marketing Lines of Business Marketing Generation Midstream Natural Gas Generation Pipelines and • >100 Bcf • Hunlock: 125 MWs Gathering • > 30,000 locations combined cycle • 33 LDCs • Conemaugh: 102 Storage – 15 Bcf MWs coal-fired • Renewable energy: Peaking Power ~ 17 MWs • 1.25 Bcf LNG Storage • > 2 MM MWhrs Capacity • > 10,000 locations • 0.40 Bcf capacity in 6 • 19 EDCs Propane Air plants March 5, 2013 29
  • 30.
    Commodity Marketing We supplyover 100 bcf of gas and over 2 MM MWhrs of power to 40,000 commercial and industrial facilities throughout the Mid-Atlantic region Strategy Target small and medium-size businesses that value our services (hedging, management of energy requirements); we are not a wholesaler Characteristics • Little commodity exposure - back-to-back fulfillment • No trading or speculation • Excellent sales team • Very high customer retention rates • Customer diversification • Strong back office and IT to support the business • Supplier diversification • Very low bad debts rate • Credit insurance on large accounts March 5, 2013 30
  • 31.
    Commodity Marketing Consistent, disciplined approach results in steady earnings growth through numerous disruptive events 22% warmer Commodity Marketing Margin than normal winter $80,000 Commodity spike to Katrina/Rita ~$13/Dth and price spikes drop to ~$3/Dth $60,000 TXU (last acquisition) $40,000 Enron Collapse $20,000 $0 1999 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Natural Gas Retail Power Other March 5, 2013 31
  • 32.
    Electric Generation Electric generationstrategy: • Our assets are former utility rate plants that have been modestly expanded in recent years • Our generation portfolio: • provides balancing support for our growing retail power marketing business • reduces supplier credit • Electric generation assets include: • Conemaugh: 6% ownership in Conemaugh, a coal-fired station with a net heat rate of ~ 9,700 btu/kwh (~102 MW) • Hunlock: 100% ownership of natural gas combined cycle plant with a net heat rate of ~7,700 btu/kwh (~125 MW) • Renewables (landfill gas and solar) • Modest earnings contributor going forward • FY08: ~ $15MM, FY10: ~ $7MM, FY12: ~ ($1MM) • Future: ~ $4MM-$8MM – about $.03 to $.06 per share net income contribution March 5, 2013 32
  • 33.
    Midstream UGI footprint and the Marcellus Shale Erie Potter Warren McKean Tioga Bradford Susquehanna Crawford Wayne Forest Wyoming Venango Elk Cameron Sullivan Mercer Lycoming Pike Clinton Clarion Jefferson Luzerne Lawrence Monroe Clearfield Union Butler Centre Carbon Armstrong North Umberland Beaver Snyder Indiana Schuylkill Berks Allegheny UGI Storage Cambria Blair Dauphin Bucks Perry LNG Lebanon Westmoreland Huntingdon Propane-Air Washington Cumberland Chester Marcellus Shale Lancaster Auburn I Greene Fayette Somerset Bedford Fulton Franklin Adams York Auburn II Tennessee Transco March 5, 2013 33
  • 34.
    Midstream Strategy Leverage UGI’sgeographic position/demand, assets, and intellectual capital to build a significant midstream business in the Marcellus • Link supply to markets by leveraging UGI’s existing pipeline infrastructure • Build new capacity from prolific Marcellus areas to market centers in PA and beyond • Integrate pipeline infrastructure with other midstream assets such as storage, peaking, power generation and interstate contracts • Develop integrated products and services to enable utilities to transition from long haul pipelines to local supply options • Provide timely, competitive gathering services to producers March 5, 2013 34
  • 35.
    Pipelines and Gathering:Auburn II • 28 miles 20”/12” pipeline • Will run south to Transco and UGI PNG • Capacity 380,000 Dth/day • Investment: ~ $160 million • Announced: October 2011 • Current status: Awaiting final permits and mobilizing for construction • Expected in-service: FY14 • Shippers include Citrus and UGI PNG 35 35 March 5, 2013
  • 36.
    UGI’s Midstream Opportunities Tenaska • Jointly developing gas resources with Tenaska Resources, LLC in the Marcellus Shale region in north-central PA • UGI will construct and operate 20 miles of new gathering pipelines • UGI also acquired a 19% interest in acreage that Tenaska operates • Both projects are located close to UGI’s midstream and distribution assets LNG as a fuel • UGI agreed to supply LNG to fuel a major producer’s drilling rigs in the Marcellus • LNG displaces diesel in field compressors • Very low cost liquefaction creates a competitive advantage • Other opportunities include LNG for transportation, and LNG for large commercial facilities that are beyond the reach of gas mains • Currently in discussions with producers representing over 1 Bcf/yr of potential demand March 5, 2013 36
  • 37.
    In Conclusion March 5, 2013 37
  • 38.
    In conclusion UGI Corporation is a balanced growth and income investment AmeriGas Utilities • Significant scale drives 3% to 4% • Strong service territory EBITDA growth • Organic customer growth through • Diversified by end use and conversions geography • Low risk, A-rated Utility business • Diversification mitigates reliance on weather International Midstream and Marketing • Innovation (cylinders, nat gas • Focus on projects to build additional marketing) scale as a Midstream business within • Scale increases bolt-on acquisition the Marcellus opportunities • Organic growth in energy marketing • A nascent brand to develop in the UK • Development of ancillary LNG opportunities March 5, 2013 38
  • 39.
    Diversified Growth Opportunities UGI has a variety of initiatives in place to drive growth in all its businesses 15 Bcf gas storage Gas Acquisitions gathering / pipelines Cylinder exchange and Natural gas national peaking/LNG accounts Natural gas Energy marketing marketing Incorporate Organic growth Marcellus into opportunities Utilities supply Customer Acquisitions UGI Corp conversions International Propane Domestic Propane Midstream & Marketing UGI Utilities March 5, 2013 39
  • 40.
    Total Shareholder ReturnProposition ~ 14% UGI is a balanced growth and income investment 4% dividend growth ~ 10% Reinvestment 4% of Cash dividend 3% - 4% growth ~ 8% EPS growth EPS growth from 4% from projects dividend growth projects 2% - 3% 2% - 3% Base EPS Base EPS Growth Base EPS Growth Growth 3%-4% 3%-4% 3%-4% March 5, 2013 40
  • 41.
    Appendix March 5, 2013 41
  • 42.
    UGI Summary FinancialInformation Year Ended September 30, (millions of dollars) 2012 2011 2010 2009 2008 Income Statement Revenues $ 6,519.2 $ 6,091.3 $ 5,591.4 $ 5,737.8 $ 6,648.2 Cost of sales (4,111.2) (4,010.9) (3,584.0) (3,670.6) (4,744.6) Total Margin 2,408.0 2,080.4 2,007.4 2,067.2 1,903.6 Operating expenses (1,591.7) (1,266.4) (1,177.4) (1,220.0) (1,157.3) Taxes other than income taxes (17.3) (16.6) (18.6) (16.9) (18.3) Depreciation and amortization (316.0) (227.9) (210.2) (200.9) (184.4) Other income, net 38.3 46.5 58.0 55.9 41.6 Operating income 521.3 616.0 659.2 685.3 585.2 Loss from equity investees (0.3) (0.9) (2.1) (3.1) (2.9) Loss on extinguishment of debt (13.3) (38.1) - - - Interest expense (221.5) (138.0) (133.8) (141.1) (142.5) Income before income taxes 286.2 439.0 523.3 541.1 439.8 Income taxes (99.6) (130.8) (167.6) (159.1) (134.5) Net income $ 186.6 $ 308.2 $ 355.7 $ 382.0 $ 305.3 Less: net income attributable to noncontrolling interests, principally AmeriGas Partners 12.8 (75.3) (94.7) (123.5) (89.8) Net income attributable to UGI $ 199.4 $ 232.9 $ 261.0 $ 258.5 $ 215.5 Average diluted shares outstanding (MM) 113.4 112.9 110.5 109.3 108.5 GAAP diluted EPS $ 1.76 $ 2.06 $ 2.36 $ 2.36 $ 1.99 March 5, 2013 42
  • 43.
    UGI EPS Reconciliation Year Ended September 30, (millions of dollars, except where otherwise indicated) 2012 2011 2010 2009 2008 GAAP Net Income $ 199.4 $ 232.9 $ 261.0 $ 258.5 $ 215.5 Adjustments: Acquisition and transition expenses $ (13.3) Loss on early extinguishment of debt at AmeriGas $ (2.2) $ (10.3) Loss from discontinuance of cash flow hedge accounting at AmeriGas $ (3.9) Gains from sale of AmeriGas storage terminals $ 10.4 Gain from sale of Atlantic Energy LLC - UGI Energy Services $ 17.2 Adjusted Net Income $ 214.9 $ 247.1 $ 243.8 $ 248.1 $ 215.5 GAAP EPS $ 1.76 $ 2.06 $ 2.36 $ 2.36 $ 1.99 Adjusted EPS $ 1.90 $ 2.19 $ 2.21 $ 2.27 $ 1.99 Diluted Shares Outstanding 113.4 112.9 110.5 109.3 108.5 March 5, 2013 43
  • 44.
    AmeriGas Propane Year Ended September 30, (millions of dollars, except where otherwise indicated) 2012 2011 2010 2009 2008 Income Statement - AmeriGas Propane Revenues $ 2,921.6 $ 2,538.0 $ 2,320.3 $ 2,260.1 $ 2,815.2 Cost of sales (1,719.7) (1,605.3) (1,395.1) (1,316.5) (1,908.3) Total Margin 1,201.9 932.7 925.2 943.6 906.9 Operating expenses (888.7) (620.6) (609.7) (615.1) (610.5) Depreciation and amortization (169.1) (94.7) (87.4) (83.9) (80.4) Gain on sale of storage facility - - - 39.9 - Other income, net 26.5 25.6 7.7 16.0 18.9 Operating income 170.6 242.9 235.8 300.5 234.9 Interest expense (142.6) (63.5) (65.1) (70.3) (72.9) Loss on extinguishment of debt (13.3) (38.1) - - - Income before income taxes 14.7 141.3 170.7 230.2 162.0 Income taxes - AmeriGas Propane, Inc. and Subsidiaries (1) (11.6) (26.4) (32.3) (41.6) (29.7) Noncontrolling interests (2) 12.8 (75.0) (91.1) (123.6) (88.4) Net income attributable to UGI $ 15.9 $ 39.9 $ 47.3 $ 65.0 $ 43.9 (1) Primarily taxes related to the general partner's ownership interests in the Partnership. (2) The general public's interests in AmeriGas Partners, L.P. March 5, 2013 44
  • 45.
    AmeriGas Supplemental Information:Footnotes  The enclosed supplemental information contains a reconciliation of Earnings before interest expense, income taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA to Net Income and Distributable Cash Flow to Cash Flow from Operations.  EBITDA, Adjusted EBITDA and Distributable Cash Flow are not measures of performance or financial condition under accounting principles generally accepted in the United States ("GAAP"). Management believes EBITDA, Adjusted EBITDA and Distributable Cash Flow are meaningful non-GAAP financial measures used by investors to (1) compare the Partnership's operating performance with that of other companies within the propane industry and (2) assess the Partnership’s ability to pay distributions and meet its loan covenants. The Partnership's definitions of EBITDA, Adjusted EBITDA and Distributable Cash Flow may be different from those used by other companies.  EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss) attributable to AmeriGas Partners, L.P. Management uses EBITDA to compare year-over-year profitability of the business without regard to capital structure as well as to compare the relative performance of the Partnership to that of other master limited partnerships without regard to their financing methods, capital structure, income taxes or historical cost basis. Management uses Adjusted EBITDA to exclude from AmeriGas Partners’ EBITDA gains and losses that competitors do not necessarily have to provide additional insight into the comparison of year-over-year profitability to that of other master limited partnerships. In view of the omission of interest, income taxes, depreciation and amortization from EBITDA and Adjusted EBITDA, management also assesses the profitability of the business by comparing net income attributable to AmeriGas Partners, L.P. for the relevant years. Management also uses EBITDA to assess the Partnership's profitability because its parent, UGI Corporation, uses the Partnership's EBITDA to assess the profitability of the Partnership, which is one of UGI Corporation’s industry segments. UGI Corporation discloses the Partnership's EBITDA in its disclosures about its industry segments as the profitability measure for its domestic propane segment.  Distributable cash flow as defined herein should not be considered an alternative to cash flows from operating activities or any other measure of financial performance calculated in accordance with generally accepted accounting principles as those items are used to measure operating performance, liquidity, or the ability to service debt obligations. Management believes that distributable cash flow provides additional information for evaluating our ability to declare and pay distributions to unitholders. March 5, 2013 45
  • 46.
    AmeriGas Propane EBITDAReconciliation Year Ended September 30, (millions of dollars) 2012 2011 2010 2009 2008 Net income attributable to AmeriGas Partners, L.P. $ 11.0 $ 138.5 $ 165.3 $ 224.6 $ 158.0 Income tax expense 1.9 0.4 3.2 2.6 1.7 Interest expense 142.6 63.5 65.1 70.4 72.9 Depreciation and amortization 169.2 94.7 87.4 83.8 80.4 EBITDA 324.7 297.1 321.0 381.4 313.0 Add back: Loss on extinguishment of debt 13.3 38.1 Add back: Heritage Propane acquisition and transition expense 46.2 Exclude: Gain on sale of storage facility (39.9) Add back: Litigation reserve adjustment 12.2 Exclude: Cumulative effect of accounting changes 7.0 Adjusted EBITDA $ 384.2 $ 335.2 $ 340.2 $ 341.5 $ 313.0 March 5, 2013 46
  • 47.
    International Propane Year Ended September 30, (millions of dollars, except where otherwise indicated) 2012 2011 2010 2009 2008 Income Statement - International Propane Revenues $ 1,946.0 $ 1,488.7 $ 1,059.5 $ 955.3 $ 1,124.8 Cost of sales (1,325.8) (970.8) (582.1) (429.5) (651.9) Total Margin 620.2 517.9 477.4 525.8 472.9 Operating expenses, net of other income (429.2) (361.2) (300.0) (317.9) (311.4) Depreciation and amortization (79.2) (70.6) (60.4) (56.5) (54.7) Operating income 111.8 86.1 117.0 151.4 106.8 Loss from equity investees (0.0) (0.9) (2.1) (3.1) (2.9) Interest expense (30.9) (28.2) (25.4) (26.6) (29.7) Income before income taxes 80.9 57.0 89.5 121.7 74.2 Income taxes (15.8) (15.7) (30.4) (43.7) (20.7) Noncontrolling interests (0.0) (0.3) (0.3) 0.3 (1.2) Net income attributable to UGI $ 65.1 $ 41.0 $ 58.8 $ 78.3 $ 52.3 March 5, 2013 47
  • 48.
    UGI Utilities Year Ended September 30, (millions of dollars) 2012 2011 2010 2009 2008 Income Statement - UGI Utilities Revenues $ 884.3 $ 1,137.4 $ 1,169.5 $ 1,381.3 $ 1,289.1 Cost of sales (459.1) (678.5) (730.5) (944.8) (920.4) Total Margin 425.2 458.9 439.0 436.5 368.7 Operating expenses (174.8) (189.0) (183.7) (206.2) (158.9) Taxes other than income taxes (17.2) (16.6) (18.6) (16.9) (18.3) Depreciation and amortization (52.8) (52.5) (53.5) (51.1) (41.4) Other income, net 5.0 10.8 6.3 7.2 12.9 Operating income 185.4 211.4 189.5 169.5 163.0 Interest expense (42.4) (42.7) (42.3) (43.9) (39.1) Income before income taxes 143.0 168.7 147.2 125.6 123.9 Income taxes (62.5) (69.4) (64.1) (46.9) (49.9) Net income attributable to UGI $ 80.5 $ 99.3 $ 83.1 $ 78.7 $ 74.0 March 5, 2013 48
  • 49.
    Midstream & Marketing Year Ended September 30, (millions of dollars) 2012 2011 2010 2009 2008 Income Statement - Energy Services Revenues $ 859.4 $ 1,059.7 $ 1,145.9 $ 1,224.7 $ 1,619.5 Cost of sales (730.9) (920.0) (1,010.7) (1,098.5) (1,495.4) Total Margin 128.5 139.7 135.2 126.2 124.1 Operating expenses, net of other income (53.4) (48.8) (7.5) (52.9) (39.8) Depreciation and amortization (12.7) (8.0) (7.7) (8.5) (7.0) Operating income 62.4 82.9 120.0 64.8 77.3 Interest expense (4.8) (2.7) (0.2) - - Income before income taxes 57.6 80.2 119.8 64.8 77.3 Income taxes (21.2) (27.7) (51.6) (26.7) (32.0) Net income attributable to UGI (*) $ 36.4 $ 52.5 $ 68.2 $ 38.1 $ 45.3 (*) Includes after tax gain from the sale of Atlantic Energy of $17.2 March 5, 2013 49
  • 50.
    EPS Growth: 6%to 10% REINVESTMENT OF $3.25 CASH: 2013 guidance Midstream investments $3.00 Propane acquisitions - Int’l & domestic Utility acquisitions $2.75 PROJECTS: $2.50 Auburn II, Storage enhancements, LNG 2013 guidance expansion, gathering 2013 guidance systems $2.25 $2.00 BASE GROWTH: Utility conversions/growth, AmeriGas 2013 2014 2015 EBITDA growth, Midstream & Marketing organic growth, natural gas marketing in France, etc. March 5, 2013 50
  • 51.
    Composition of BaseGrowth* .01 .09-.11 .02-.03 .04-.05 .01-.02 .01-.02 Utilities Generation Midstream & International AmeriGas Base growth target Marketing BASE GROWTH of 3% to 4%: Utility conversions/growth, AmeriGas EBITDA growth, Midstream & Marketing organic growth, natural gas marketing in France, etc. * Forecasted multi-year average March 5, 2013 51
  • 52.
    Looking Forward: Growthbeyond FY13 $2.75 .07-.10 .04-.06 .09-.11 .03 .04-.06 $2.50 $2.25 $2.00 FY13 APU FY13 Base Growth Projects Reinvested FY 14 Guidance** transition (Auburn II, cash costs Storage, Marcellus) **As disclosed in the press release dated January 31, 2013 March 5, 2013 52
  • 53.
    AmeriGas Unit MarginManagement A long track record of exceptional margin management through volatile propane cost environments AmeriGas Margin History $1.80 $1.80 Propane Unit Margins Avg. Mt. Belvieu Cost $1.60 $1.60 $1.40 $1.40 $1.20 $1.20 $1.00 $1.00 $0.80 $0.80 $0.60 $0.60 $0.40 $0.40 $0.20 $0.20 $0.00 $0.00 2005 2006 2007 2008 2009 2010 2011 2012 Avg. Mt. Belvieu Cost Propane Unit Margins March 5, 2013 53
  • 54.
    International Unit MarginManagement Intl. Propane has demonstrated the ability to manage margins in various cost environments – this is a core strength of all of UGI’s Propane businesses Antargaz Margin History 700 € 700 € Propane Unit Margins (€/T) Avg. Platt’s Cost (€/T) 600 € 600 € 500 € 500 € 400 € 400 € 300 € 300 € 200 € 200 € 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Avg. Platt's Cost Propane Unit Margins March 5, 2013 54
  • 55.
    FAQs Frequently Asked Questions Isnatural gas making significant inroads on areas traditionally served by heating oil? • Yes. Natural gas is less expensive and more convenient for consumers • Most conversions take place within 75-100 feet from the main • A significant number of heating oil customers remain “resident” along these mains and are prime candidates for conversion • In FY2012, UGI Utilities converted over 12,000 residential customers to natural gas and the vast majority of these were converted from heating oil Is natural gas also making significant inroads on areas traditionally served by propane? • No. Natural gas conversions typically extend only 75-100 feet from the main – most propane users are outside of this reach • AmeriGas estimates that it loses less than 3,000 customers annually to natural gas (out of a customer base of 2 million) • In FY11, UGI Utilities converted over 12,000 residential customers to natural gas and less than 200 of these were converted from propane • Most propane customers reside in less densely-populated areas well off the gas grid, making conversions less attractive to gas utility companies Does UGI Energy Services’ marketing business have significant energy exposure? • No. UGI Energy Services’ energy marketing business adheres to a fulfillment business model • Volumes are hedged when a price commitment is made by a customer • UGI does not employ any traders or engage in speculative trading • UGI does not have a large asset base to protect (our small amount of electric generation is sold into the market) • Average length of contract is ~9 months for gas customers, ~12 months for electric customers March 5, 2013 55
  • 56.
    Investor Relations: 610-337-7000 Hugh Gallagher(x1029) gallagherh@ugicorp.com Simon Bowman (x3645) bowmans@ugicorp.com March 5, 2013 56