J.P. Morgan Global High Yield & Leveraged Finance Conference February 24, 2015 1 1
Key Messages Meeting Commitments Bigger is Better Growth Opportunities February 24, 2015 3
Business Overview Largest Player in a Fragmented Market with15% Market 1 Share1 Two Million Customers Over 2,000 Propane 1.4 Distribution Locations Billion Gallons Sold 8,400 Employees FY14 49,000 Cylinder Exchange Retail…
National Distribution and Supply Infrastructure 3%-4% EBITDA Growth Field Service Center Storage Terminals Propane Exchange Production Centers Districts February 24, 2015 5
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…
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 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…
Bigger is Better Over 20 Strategically located Terminals 10 Transflows 4,000 Bobtail Trucks 550 Propane Trailers 400 Railroad Tank Cars February 24, 2015 11
Geographic and Customer Base Diversity1 25% 26% 10% 22% 27% Ag & Transport 13% Motor Fuel 41% Residential Commercial 36% 1Based upon retail gallons sold February 24, 2015 12
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…
Growth: AmeriGas Propane Exchange Counter seasonal due to summer grilling demand ACCOMPLISHMENTS Product of convenience 4% Volume Growth in Q1 Safe, reliable service 6% same store sales growth Nearly 49,000 retail locations on…
Growth: National Accounts Utilize nationwide distribution footprint to serve commercial ACCOMPLISHMENTS customers with multiple locations: One bill, one point of contact 10% Volume Growth in Q1 Less weather sensitive vs. 22% volume…
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…
FY Q1 2015 Weather FQ1 2015: 6.2% Warmer than normal October 2014 November 2014 December 2014 21% Warmer than Oct 13 9% Colder than Nov 13 18% Colder than Dec 13 9% Lower Volume than Oct 13 3% Lower Volume than Nov 13 14% Lower…
FY Q1 2015 Inventory Cost Mont Belvieu Spot Price Inventory Gallons ( per gallon) (mm) 1.20 180 151 1.00 150 126 0.80 120 106 0.60 90 0.40 60 0.20 30 0.00 0 Oct 01, 2014 Oct 31, 2014 Nov 30, 2014 Dec 30, 2014 December 31,…
LPG Price Decline LPG prices have declined precipitously since September 2014 Low prices are good for our customers, which is good for AmeriGas Less price-induced conservation Lower working capital requirements Less bad debt…
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 Strong distribution coverage and…
Q&A 21 21
Appendix 22 22
Description and Reconciliation of Non-GAAP Measures AmeriGas Partners Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) should not be considered as an alternative to net income (loss) attributable to…
AmeriGas Cash Flow Reconciliation AmeriGas Partners, L.P. Historical Distributable Cash Flow Reconciliation Year Ended September 30, 2006 2007 2008 2009 2010 2011 2012 2013 2014 Net Cash Provided by Operating Activities 179.5 207.1…
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