UGI Utilities SAP 1 Year Later Update September 26, 2018

UNITE Project Phase 1 CRB (delivered) Phase 2 ERP (in progress) Customer Information & Billing System Start: MAR 2016 Go-Live: SEPT 2017 Phase 2 ERP (in progress) Financials Supply Chain Mgmt. Contractor Mgmt. Plant Accounting UGI Corp Accounting Start: MAR 2018 Go-Live: APR 2019 Phase 3 EAM (planning) Asset Mgmt. Work Mgmt. Gas Outage Mgmt. Geospatial Information System Start: TBD Go-Live: TBD Legend: CRB – Customer Relationship & Billing ERP – Enterprise Resource Planning EAM – Enterprise Asset Management

Phase 1: CIS Scope Impacted Areas of the Business Customer Service Establishing and maintaining relevant customer information for purposes of serving, marketing, and supporting the delivery of energy and non-energy products Service Orders and Work Management Planning, scheduling, dispatching, and completing short duration customer or meter-related utility service orders Device Management Tracking the inventory and installation lifecycle of meters and devices for the utility - installation, meter reading, testing, replacement, and retirement Billing and Rates Invoicing and posting of revenue, including tariffs and taxes, to customers for provided services Establishing credit and deposit rules, collecting and managing accounts receivables Credit and Collections Analytical improvements to aid decision-making and improve customer support; accessing and validating data, running reports, and overall data governance model Analytics and Reporting Customer Self-Service Various mechanisms to allow a customer to interact with our business at their convenience through multiple portals such as web and mobile, and experience improved operating efficiencies with existing customer portals

UNITE Phase 1 Update New Features/Functionality Highlights A single, modern system for customer & device data Greater automation and reduction of manual tasks Improved Customer invoices & correspondence visibility Ability to take payment by check over the phone and online without use of a 3rd party Real-time visibility of service order statuses & service order processing Screen pop of customer account Joint billing (gas & electric) Automated management and tracking of billing exceptions Integration with Marketing Lead Tracking System (MLTS) for new customer set-up New customer portal with single sign-on

UNITE Phase 1 Update Challenges Post Go Live & Status Enhancements Completed since go live Front Office: IVR (Interactive Voice Response) functionality re-deployed Billing: BPEM (Business Process Exception Management) Case Reductions Maximum case back log after Go Live : 30,000 Current case back log : 3,700 Online Portal: Ability to scheduled future dated payments and overpayments Bill Archiving issue for online portal customers identified in March and fixed in April Collections: Enhance the Collections Control Panel through use of SAP’s Business Rule Framework (BRF+)

Collections Ceased collections 8/1/2017 Resumed collections 4/1/2018 BRF+ (Control Panel) – limited paths Residential vs Commercial Health Care Low Income All steps have same dollar limit-no flexibility Soft notice, 10 day, 3 day, shut off If set at $500, no ability to “notice” lower and no separate path for Pay Agreements

New Project – Stabilize and Improve Collections April 2018 Improve Collections Management Delinquent Receivables Reduction Credit & Collections UNITE/IT Develop Workload Management Plan to coordinate collections with Dispatch and Operations – Complete Complete New Monthly Model- Complete Enhance SAP Reporting to support Workload Management Plan – defects/Service Desk Tickets: 1030, 1322, 1717, 1886, 1936,1938, 2015, 2018, 2023, 2049, 2052, 2074, 2080, 2091, 2094, 2097, 2098, 2104, 2106, 2124, 2138, 2161, 2226, 2273, 2274, 2318, 2363, 2405, 2408, 14894, 20099, 20100, 20157, 20375, 20377, 21169, 21303 In Progress / TBD Develop and implement short-term and long-term TCPA compliance Plans - On Hold, new ruling being evaluated Modify BRF+ flows to enable customer Soft Notice without full Dunning process – Completed / May 18, 2018 Develop Staffing Plan and Credit Refresh Training Program (UGI + FCS) – Complete Modify BRF+ flows to evaluate delinquent P/A’s and CAP Accounts – Completed / May 18, 2018 Credit & Collections UNITE/IT Develop collection $ threshold levels and inventory for F2018 – Completed IT Support to address newly identified SAP reporting, defect and enhancement efforts – On-going CAP Enrollment Expansion Plan – In progress as of May 31, 2018. Open CAP defects, reducing expansion temporarily. Defects/Service Desk Tickets: 1107, 1447, 1814, 1980, 2015, 2110, 2150, 2264, 2265, 2266, 21434, 21912, 21016, 21894, 21020, 21192, 21918, 21956, 21979, CR 487583 Develop repository of reports – In Progress

Active Debt Impact April 2018 - Historic high levels of active debt > 90+ days Average debt levels per customer at normal levels Number of customers nearly double Uncollectible Expense (bad debt reserve) increased .5% for 2018 Forecasting above normal increase of .2% for 2019 Forecasting near normal for 2020

CY 2018 & Beyond BRF+ Threshold moved from $500 to $225 (current) Complete remaining defects to ensure all remaining dunning locks can be removed in early October Focus on high dollar accounts through November Support strong CWIP/LIBLITZ Season to continue to reduce A/R

Questions? Thank you!