UGI : Q2 FY24 Earnings Presentation_v05012024_FINAL

Second Quarter

Fiscal 2024 Results &

Business Update

Mario Longhi

Interim President and CEO, UGI Corporation

Sean O'Brien

Chief Financial Officer, UGI Corporation

Robert F. Beard

Chief Operations Officer, UGI Corporation

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.

2

2

UGI Supplemental Footnotes

Management uses "adjusted net income attributable to UGI Corporation", "adjusted diluted earnings per share ("EPS")" and "UGI Corporation Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization ("EBITDA")", 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 and UGI Corporation Adjusted EBITDA to their nearest GAAP measures.

3

3

Agenda

Strategic	Q2 FY24	FY24 - 27	Closing
Financial	Financial
Overview	Remarks
Results	Outlook

4

4

Q2 and YTD FY24 Highlights

• Q2 FY24 GAAP Diluted EPS of $2.30 compared to $0.51 in Q2 FY23
• Strong Q2 results despite warmer than normal weather across our service territories, largely due to

1. 32% earnings growth in the natural gas businesses

• 1. $27 million reduction in operating expenses across the entity
• Re-affirmingthe FY24 guidance range due to the strong performance in the first half of the fiscal year
• Approved quarterly dividend of $0.375 per share, marking the 140th year of consecutively paying dividends

$1.97	$3.16
Q2 FY24 Adjusted	YTD2 FY24 Adjusted
Diluted EPS1	Diluted EPS1

~9%	$2.70 - $3.00
YoY Growth in YTD2	FY24 Adjusted
Reportable Segments EBIT3	Diluted EPS Guidance4

5

1. Adjusted diluted EPS is a non-GAAP measure. See Appendix for reconciliation. 2. YTD FY24 signify six months ended March 31, 2024. 3. Excludes Corporate & Other. 4. 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 fiscal year 2024 adjusted diluted EPS, a non-GAAP measure, to diluted earnings per share, the most directly comparable GAAP measure, 5 5 in reliance on the "unreasonable efforts" exception set forth in SEC rules.

Strategic Review Update

	➢ AmeriGas Propane
Scope of the	➢ Portfolio optimization opportunities
Review	➢ Opportunities to optimize our cost structure
	➢ Financing solutions and levers to strengthen the balance sheet and create greater financial flexibility

Strategic Review

Conclusion

• Completed the strategic review that was primarily focused on AmeriGas Propane

1. Conducted a thorough process, evaluating a broad range of strategic alternatives, alongside our financial advisors

1. Board's conclusion: In the current market, the optimal decision is to retain AmeriGas and focus on a restructuring and operational improvement plan for that business

• Repositioning UGI to create sustainable value for shareholders

1. Resilient core business with a clear and compelling strategy

1. Focused on strengthening the balance sheet

1. Pursuing operational efficiencies and sustainable cost savings

1. Committed to portfolio optimization and growth

6

6 6

Our Businesses

Natural Gas			Global LPG
Growth		34%	Cash Generation
		YTD FY24
Regulated Utilities		Adj. Diluted	UGI International
	66%	EPS
• Leading regulated utilities in constructive	•	Leading market positions
regulatory environments		• Strategically located supply assets
• Strong rate base growth and attractive return on		• Strong track record of margin stability and free
equity			cash flow generation

• Weather normalization riders to promote earnings reliability
• Attractive capital investment runway with minimal regulatory lag

Midstream & Marketing

• Full suite of midstream services
• Scalable infrastructure to meet increasing demand
• Significant fee-based income promotes earnings

stability

1

Targeted 25%

Adj. Diluted

EPS

75%+

AmeriGas Propane

• Largest retail LPG distributor in the US1 with broad geographic footprint serving all 50 states
• Significant supply and transportation network across the nation
• Consistent free cash flow generation

1. Based7 on the volume of propane gallons distributed annually.

77

Actions to Drive Long-Term Shareholder Value

Pursue portfolio optimization and growth

Stabilize and optimize the domestic propane business

Create efficiencies and an optimal cost structure

Drive balance sheet improvement

Pursue opportunities to optimize our portfolio and drive reliable earnings growth in the base business

Execute on an operational turnaround plan at AmeriGas Propane

Continuous focus on operational efficiencies to improve cost agility and deliver sustainable cost savings

Enhance our capital structure and credit metrics to provide greater financial flexibility

8

Stabilizing and Optimizing AmeriGas Propane

Key Actions

• Adjust the operating model to enhance customer focus, support operational excellence and create efficiencies

1. Drive operational improvement within our operations and customer service centers to improve service reliability and customer satisfaction

• 1. Focus on operational efficiencies, leverage strengths across the UGI family of companies, and perform effective cost control
• Refocus and optimize our portfolio
• 1. Pursue opportunities to divest select assets

• 1. Maintain capital deployment discipline and limit growth related capital
• Execute strategy to adjust the capital structure and reduce covenant pressures
• Maintain an enhanced focus on safety

Results Customer

Driven Focus

Operational Safety Excellence

9

99

Q2 FY24 Financial

Results