Flogas UKCompany overview

17th August 2009

What is LP Gas?• Produced as part of oil refining process or extracted from gas streams• Inland sales is 95% propane, and 5% butane (more suited for indoor storage) • Transported and stored under pressure in liquid form in tanks / cylinders• Has lowest CO2 and particulate emissions of all available off-mains fossil fuels• Used in petro-chemical production

…. and for home and commercial applications where no mains gas:

– Domestic heating, cooking and leisure – Hotels, pubs and restaurants– Caravan sites, residential parks– Fork lift trucks and warehouse heating – Agriculture – poultry rearing, growing, food processing– Industrial use – brick making, paint spraying, road marking– Cars and trucks as Autogas

21 Flogas TerminalsNationwide coverageGas storage (2-3 days)Cylinder filling / stockholdingBase for bulk tankersBase for cylinder trucks

9 UK refineriesMossmorran – ShellGrangemouth - IneosImmingham – Conoco & TotalStanlow – ShellCoryton - PetrolplusFawley - EssoMilford Haven - MurcoPembroke - Texaco

LP Gas - Inbound Supply Chain

23 Artic Road TankersFlogas owned fleetDaily sourcing decision:• Refinery’s availability to supply?• Price of gas?• Distance from Flogas location?

LP Gas - Outbound Supply Chain

65%

35%

170 cylinder trucks

85 bulk tankers

100,000 customers

Flogas History

1976 – Flogas Greenfield start in Ireland, with DCC owning 29%

1984 – Flogas UK established with the acquisition of Portagas givingan initial share of 0.5% of the British market

1994 - DCC takes 100% ownership of Flogas UK Ltd

Organic expansion takes market share to 6% with activities in thebulk, cylinder and autogas markets

2001 – AltaGas acquisition takes market share to 11%

2002 – British Gas LPGas acquisition accelerates Flogas to no.2position in Britain with market share c.20%

Organisation5 Regions with Sales and Operational responsibility• Sales teams covering territory by postcode• Customer service centres – in /outbound with 24/7 back up• Filling plant and depots – service and cost KPIs

Central sales teams• Key Account sales management for national accounts• Domestic Bulk customer service team

HQ Functions• Bulk installations and scheduling• Finance, credit control and IT• Marketing• Business development, purchasing• Human Resources

R

RRR

R

R R

Flogas Network 2009/10

5 Regional centres, (CSC,Bulk, Filling and Depot)

16 Bulk & or Filling and Depot sites

21 Depot only

R Refinery

R

R

Asset RefurbishmentFlogas at Staveley undertakes refurbishment and re-branding:

• 1.8 million cylinders are tested and refurbished over a 15 year cycle

• 30,000 tanks are to be refurbished and refurbished over a 20 year cycle

Market Position

10%Others12%Others

>1%Energas3%Energas

10%Shell0%Shell

10%BP7%BP

18%Flogas26%Flogas

51%Calor52%Calor

BulkCylinders

Source: Flogas Estimates

Flogas Strengths

• Strong nationwide coverage under Flogas brand

• Growth potential behind LPG

• Spread across diverse customer base

• Improved margin management

• Optimised national network

• Strong Relationship with Oil Majors

• Excellent financial dynamics – recurring revenues, cash generative and high ROCE

Challenges

• Safe management of a highly dangerous product

• Maintaining supply ex refinery at least inbound cost.

• Managing high levels of service whilst seeking efficiencies

• Building returns on fixed capital – cylinders, bulk tanks

• Delivering opportunities for industry consolidation

Flogas StrategyOrganic• Continuously Improve Heath and Safety performance • Grow LPG market – promote LPG as greener alternative• Grow market share geographically, and by sector• Deliver operational efficiencies so additional margin converts to profit • Implement outcome of network planning review• Reduce purchasing costs through better procurement

Partnerships• Continue to develop the portfolio of suppliers• Evaluate partnership options in importation and storage infrastructure• Work with energy consultants to offer LPG package for new technologies

Acquisitions• Acquire competitors looking to exit, and thereby reduce unit costs • Acquire dealers where Flogas coverage is weak

Questions?