Key Messages Meeting Commitments Bigger is Better Growth Opportunities November 6, 2014 2
Business Overview 3%-4% EBITDA Growth November 6, 2014 3
Business Overview 3%-4% EBITDA Growth November 6, 2014 4
Business Overview 3%-4% EBITDA Growth November 6, 2014 5
Business Overview 3%-4% EBITDA Growth November 6, 2014 6
Business Overview 3%-4% EBITDA Growth November 6, 2014 7
Business Overview Largest Player in a Fragmented Market with15% Market Share 1 Two Million Customers Over 2,000 Propane Over 1.3 Distribution Locations Billion Gallons Sold 8,400 Employees FY14 48,000 Cylinder…
Competitive Advantage Unmatched geographic coverage Customer density = efficiency Advantage in acquisitions, serving multi-state customers Significant transportation and logistics assets and ability to flex workforce = certainty of…
Meeting Bigger is Growth Commitments Better Opportunities 10
Meeting Commitments Promise to Investors GOALS ACCOMPLISHMENTS DISTRIBUTION 5.4% Average Distribution Growth GROWTH: 5% 2006-2014 EBITDA Adj. EBITDA Growth 2006-2011: 6% GROWTH: 3-4% 2006-2014: 13% HERITAGE 60 million+ in…
Meeting Bigger is Growth Commitments Better Opportunities 14
Bigger is Better Over 20 Strategically located Terminals 10 Transflows 4,000 Bobtail Trucks 550 Propane Trailers 400 Railroad Tank Cars November 6, 2014 15
Diversification Customer Base Geography 10% Ag & 22% Transport Southwest 13% 25% Motor Fuel 41% Northwest Residential 26% Northeast 27% 36% Commercial Southeast Geographic and Customer diversity supports cash flow and…
Winter 2014 Environment Severe Weather Supply Shortages Volatile Costs Solutions Significant supply and transportation assets Strong relationships with suppliers AmeriGas Airborne November 6, 2014 17
Unit Margin Management A long track record of exceptional margin management through volatile propane cost environments 1.60 1.40 Propane Unit Margins Avg. Mt. Belvieu Cost 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2005…
Meeting Bigger is Growth Commitments Better Opportunities 19
The Propane Industry AmeriGas Conservation (1) Study 550 Site Built Housing 1.5% annual conservation 525 500 475 450 425 400 2010 2011 2012 2013 Same customer sales (1) Annual study of AmeriGas Sloan, Michael…
The Propane Industry US supply continues to grow as more wet- gas shale production comes on line Exports rising, but U.S. remains long propane Current inventories at all-time highs Mont Belvieu price 0.84 versus 1.14 at…
Growth: Cylinder Exchange Counter seasonal due to summer grilling demand ACCOMPLISHMENTS Product of convenience Safe, reliable service Achieved 6% same store sales growth on 48,000 distribution points existing business Platform…
Growth: National Accounts Utilize nationwide distribution footprint to serve commercial ACCOMPLISHMENTS customers with multiple locations: One bill, one point of contact 22% volume growth in fiscal 2014 Less weather sensitive vs.…
Growth: Local Acquisitions Synergies in every geography Integration is a core competency Seven deals closed in 2014; 73 in the past 10 years Over 175 acquisitions since the early 1980s 1987 1993 2001 2012 Cal Gas Petrolane…
Conclusion Long history of meeting commitments o Successfully completed the Heritage acquisition while meeting all key objectives for the investment Significant scale enables strong performance o Delivered exceptional operating…
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