UGI : March Investor Presentation

Investor

Presentation

March 2024

About This Presentation

This presentation contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements use forward-looking words such as "believe," "plan," "anticipate," "continue," "estimate," "expect," "may," or other similar words and terms of similar meaning, although not all forward-looking statements contain such words. These statements discuss plans, strategies, events or developments that we expect or anticipate will or may occur in the future. Management believes that these are 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; accordingly, there is no assurance that results will be realized. You should read UGI's Annual Report on Form 10-K for a more extensive list of factors that could affect results. We undertake no obligation (and expressly disclaim any obligation) to update publicly any forward-looking statement, whether as a result of new information or future events, except as required by the federal securities laws. Among them are adverse weather conditions (including increasingly uncertain weather patterns due to climate change) resulting in reduced demand, the seasonal nature of our business, and disruptions in our operations and supply chain; cost volatility and availability of energy products, including propane and other LPG, natural gas, and electricity, as well as the availability of LPG cylinders, and the capacity to transport product to our customers; changes in domestic and foreign laws and regulations, including safety, health, tax, transportation, consumer protection, data privacy, accounting, and environmental matters, such as regulatory responses to climate change; the inability to timely recover costs through utility rate proceedings; increased customer conservation measures due to high energy prices and improvements in energy efficiency and technology resulting in reduced demand; adverse labor relations and our ability to address existing or potential workforce shortages; the impact of pending and future legal or regulatory proceedings, inquiries or investigations; competitive pressures from the same and alternative energy sources; failure to acquire new customers or retain current customers, thereby reducing or limiting any increase in revenues; liability for environmental claims; customer, counterparty, supplier, or vendor defaults; liability for uninsured claims and for claims in excess of insurance coverage, including those for personal injury and property damage arising from explosions, acts of war, terrorism, natural disasters, pandemics and other catastrophic events that may result from operating hazards and risks incidental to generating and distributing electricity and transporting, storing and distributing natural gas and LPG in all forms; transmission or distribution system service interruptions; political, regulatory and economic conditions in the United States, Europe and other foreign countries, including uncertainties related to the war between Russia and Ukraine, the conflict in the Middle East, the European energy crisis, and foreign currency exchange rate fluctuations (particularly the euro); credit and capital market conditions, including reduced access to capital markets and interest rate fluctuations; changes in commodity market prices resulting in significantly higher cash collateral requirements; impacts of our indebtedness and the restrictive covenants in our debt agreements; reduced distributions from subsidiaries impacting the ability to pay dividends or service debt; changes in Marcellus and Utica Shale gas production; the success of our strategic initiatives and investments intended to advance our business strategy; our ability to successfully integrate acquired businesses and achieve anticipated synergies; the interruption, disruption, failure, malfunction, or breach of our information technology systems, and those of our third-party vendors or service providers, including due to cyber-attack; the inability to complete pending or future energy infrastructure projects; our ability to attract, develop, retain and engage key employees; uncertainties related to global pandemics; the impact of a material impairment of our assets; the impact of proposed or future tax legislation; the impact of declines in the stock market or bond market, and a low interest rate environment, on our pension liability; our ability to protect our intellectual property; our ability to overcome supply chain issues that may result in delays or shortages in, as well as increased costs of, equipment, materials or other resources that are critical to our business operations; and our ability to control operating costs and realize cost savings.

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UGI Supplemental Footnotes

Management uses "adjusted net income attributable to UGI Corporation", "adjusted diluted earnings per share ("EPS")", "UGI Corporation Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization ("EBITDA")", and "UGI Energy Services Margin", all of which are non-GAAP financial measures, when evaluating UGI's overall performance. Management believes that these non-GAAP measures provide meaningful information to investors about UGI's performance because they eliminate the impacts of (1) gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions and (2) other significant discrete items that can affect the comparison of period-over-period results. Volatility in net income attributable to UGI can occur as a result of gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions but included in earnings in accordance with U.S. generally accepted accounting principles ("GAAP").

Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures.

The tables in the Appendix reconcile adjusted diluted earnings per share (EPS), adjusted net income attributable to UGI Corporation, UGI Corporation Adjusted EBITDA, and UGI Energy Services Margin to their nearest GAAP measures.

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A Diversified Energy Provider

UGI Corporation is a distributor and marketer of energy products and services,

including natural gas, LPG, electricity and renewable energy solutions

18

countries

Safety

Respect

Integrity

Core Values

Sustainability ExcellenceReliability

1. As of September 30, 2023.

142	140
years of providing	consecutive years
energy	of paying dividends

2.6+ million	10,000+
customers1	employees1

	UGI's mission is to be the preeminent
Our	energy distribution company in our
targeted markets by providing a superior
Mission
range of clean and sustainable energy
	solutions to our customers.
	4

Business Segments

Lines of Businesses

Segments

Natural Gas

Utilities

Midstream & Marketing

Global LPG

UGI International

AmeriGas Propane

FY23 Adjusted Diluted EPS Contribution1,3

Overview

34%

• 2nd largest regulated gas utility in Pennsylvania2
• Largest regulated gas utility in West Virginia2

29%

• Full suite of midstream services and gas marketing on 40 gas utility systems and 20 electric utility systems

11%

26%

• LPG distribution in 17	• Largest retail LPG
countries in Europe4	distributor in the US4

1. Does not include Corporate & Other. 2. Based on total customers. 3. Adjusted Diluted EPS is a non-GAAP measure. Please see Appendix for reconciliation. 4. Based on the volume of propane gallons distributed annually.

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Strong Track Record of Paying Dividends

140 years	Long history of returning cash to	36 years
Consecutively Paying	shareholders in the form of dividends	Consecutively Increasing
Dividends		Dividends

Dividend Per Share1 ($)

FY03 - 23 CAGR of 7.1%

																			$1.38	$1.44	$1.50
																	$1.30	$1.32
													$0.91	$0.95	$1.00	$1.04
												$0.87
											$0.75
								$0.67	$0.69	$0.72
							$0.53
	$0.38	$0.42	$0.45	$0.47	$0.49	$0.51
	FY03	FY04	FY05	FY06	FY07	FY08	FY09	FY10	FY11	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23

1. Adjusted for stock splits. Dividend figures represent annualized dividends based on the last dividend issued in that fiscal year.

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The Journey Ahead

• Renewed focus on execution to better position UGI for the long-term
• Effectively operate the core businesses and provide operational clarity to create stability and improved financial performance
• Implement actions to drive sustainable operational efficiencies and achieve permanent cost reduction
• Execute prudent actions to strengthen the balance sheet, improve our credit metrics and create more financial flexibility
• Allocate capital to businesses with proven and attractive returns
• Drive a customer-focused, high-performingand integrated organizational culture

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Our Strategic and Financial Priorities

Focused on effectively operating our business portfolio to deliver reliable earnings growth, achieve sustainable cost savings, and strengthen the balance sheet

1

Cost Reduction and Optimization Actions

2	3
Strengthen the Balance	Strategic Review of the LPG
Sheet	Businesses

4

Continued Growth of the Natural Gas businesses

Initiated actions to achieve operational efficiencies and targeted cost savings

Revised capital allocation outlook and priorities to achieve and sustain optimal capital structure

Review of strategic alternatives, with a focus on AmeriGas Propane

Continue investing in our Utility infrastructure to promote safety and reliability while balancing customer affordability

Achieve ~$70 - $100M of cost savings by FY25

Execute on our strategy to enhance liquidity and reduce leverage at AmeriGas Propane and UGI Corporation

Exit the non-core European energy marketing business

• UK, Belgium and substantially all of France and the Netherlands
• Remaining ~5,500 customer locations - France and the Netherlands1

Leverage the strategic midstream assets to continue driving earnings and cash flow stability

1. On track to exit the remaining portions of the non-core European energy marketing business by the end of CY25.	Completed	Underway	8

Q1 FY24 Results Recap

Adjusted Diluted EPS1

$1.14 $1.20

Q1 FY23

Q1 FY24

Q1 FY24 GAAP diluted EPS of $0.44 vs. ($4.54) in Q1 FY23

Reportable Segments EBIT2,4

($ millions)

$411 $425

Q1 FY23

Q1 FY24

Key Highlights

• Increased total margin at UGI International which partially offset the effect of lower volumes at AmeriGas Propane
• Continued strong performance from our natural gas businesses despite warmer weather
• Deployed $133 million of capital, with $82 million (62%) at the Utilities businesses
• Added 3,500+ residential and commercial heating customers at the Utilities
• Mountaineer Gas Company received regulatory approval for:

1. ~$14 million increase in gas base effective January 1, 2024

• 1. 5-yearpilot for weather normalization beginning on October 1, 2024
• Exited substantially all of the non-coreEuropean energy marketing business
• 1. Completed the sale of select portfolios in France and the Netherlands in Q1 FY24
• Available liquidity3 of $1.5 billion as of December 31, 2023

1. Adjusted diluted EPS is a non-GAAP measure. See Appendix for reconciliation. 2. EBIT is defined as Earnings before interest expense and income taxes. 3. Liquidity is defined as cash and cash equivalents, and available borrowing capacity on our revolving credit facilities. 4. Excludes Corporate & Other.

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FY24 Guidance

FY23 Adjusted Diluted EPS1 to FY24 Guidance2,3

$3.00

$2.70

$2.84

FY23 Adjusted	Corporate	FY24 Adjusted
Diluted EPS	& Other	Diluted EPS
		Guidance

Key Assumptions3

Natural Gas businesses

Normal weather	Electric rates
Volume	Operating expense
Customer	Interest expense
growth	Current tax regime
Gas base rates

Global LPG businesses

Normal weather	Interest expense
Volume	Current tax regime
Lower margins	Benefits from
Operating expense	foreign tax credit
optimization

1. Adjusted Diluted EPS is a non-GAAP measure. See Appendix for FY23 reconciliation. 2. 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 and certain

foreign currency derivative instruments we cannot reconcile FY24 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. 3. The 10 forward-looking information used on this slide is for illustrative purposes only. Actual results may differ substantially from the information presented.