Pryce Gases, Inc.

Liquefied Petroleum Gas Business Overview

PRYCE GASES, INC.

 Company Overview

• Pryce Gases, Inc. (“PGI”) is a Philippine

corporation that is in the business of importing
and distributing Liquefied Petroleum Gas (“LPG”)
and manufacturing and selling of industrial gases.
• PGI had a market share of 12.1% of the Philippine
LPG industry in 2015.
• Aside from LPG, PGI also sells and distributes
industrial gases nationwide although this business
only contributes 5% of PGI’s revenues.
• PGI operates its own LPG bulk terminals, LPG
refilling stations, autogas stations and sales
centers strategically located nationwide. As of
July 31, 2016, it has a total storage capacity of
20,193 MT.
• In the first half of 2016, PGI generated Php 2.95
billion of revenues and Php 396.74 million of net
income (after tax).

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LPG Industry Overview

Asia’s LPG Consumption Per Capita • The Philippines is ranked #12, among the
(In Kilogram- KG) lowest in Asia, in annual LPG
200
179 consumption per capita at only 11 kg

• Compared to the annual LPG

consumption per capita of Thailand
150
123 (110kg), Malaysia (82kg),
110 Indonesia (16kg), there is room for
growth in the Philippines’ per capita
100
82 consumption of 11 kg
72
Philippines Regional Consumption Per Capita
50 49
41 5MINDANAO (8%) 3.9kg
31 % 10
VISAYAS (12%) 6.8kg
%
18 16
12 11 10
3 0 LUZON (80%)
0 15.4kg

L
Source: CIA World Factbook, United State Energy Information Administration U
ParenthesizedZpercentages denote consumption by region
O
N
85
%
July 31, 2016 3

LPG Industry Overview (cont’d)

Philippine LPG Consumption Industry Highlights
1,319
Thousand MT

1200
1,101 1,101
1,107
• Demand hovered at around 1.1
1,097 1,115 1,147
1,022 million MT per year up to 2014
1,009

959 • Average growth rate of only 2% p.a. in
1000
862
the last 10 years prior to 2015
800
• Demand increased by 15% in 2015
768 736 with the fall in LPG price
844 730 785 807
633 780 708 • CP benchmark continues its fall from
600 a high of US$1,187.50 in Dec 2013

to US$ 305.50 per MT in July 2016
400 • Abundant supply from US
470
contributed to price fall
200
• Demand for the 1st Q-2016 is
369 394 358
339
259
312 288 321 301 317 331 MT, up from 311 MT over
same quarter in 2015
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Production Import Demand

Source: Department of Energy

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LPG Industry Overview (cont’d)

Demand Breakdown Industry Highlights

• Demand from residential / commercial

5%
sector will continue to account for bulk
10%
of demand

• Geographical distribution of demand

Luzon – 80% Visayas – 12%
Mindanao – 8%

• Supply has been met through local

refinery production (30%) and imports
85% (70%)

• Five (5) suppliers have their own

import terminals

Automotive Industrial Residential / Commercial

July 31, 2016 5

Product Portfolio

LPG Cylinders Autogas Stations Bulk

• Mixture of propane (30%) and
butane (70%)
• Sold in bulk or in various
cylinder sizes for household,
commercial or industrial use
• Cylinders Sizes: 50 kg; 22 kg;
11kg; 6 kg; 5 kg; 2.8 kg
• Autogas Stations: sold by the
liter
• Bulk: Sold by lorries (19 – 26
MT) or tanker trucks (8 – 10 MT)

Industrial Gases Oxygen Acetylene Miscellaneous Gases

• Manufacture and trading of
oxygen and acetylene for
medical and industrial uses and
trading of all other types of gases
• Oxygen - medical and industrial
• Acetylene
• Miscellaneous Gases:
Compressed air, argon, nitrogen,
carbon dioxide, nitrous oxide

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Operations

Product Process Flow

1. LPG carriers (2,000 to 3,500 MT) dock at company-owned terminals/ jetties to unload cargo via
submarine pipes to its marine terminals’ storage tanks.

2. Product from the storage tanks are drawn two ways:

a) Pump to refilling hall where individual cylinders are refilled.
b) Pump/ discharge through refilling gantry to lorries or trucks that bring product to refilling plants
and bulk customers.

3. Product in individual cylinders are withdrawn by dealers or delivered to company-owned sales

centers. Dealers and sales centers handle distribution of product till it reaches final consumer/user.

4. Product withdrawn by lorries are delivered to refilling plants and bulk customers. Refilling plants then
fill up empty cylinders for distribution to a network of sales centers, dealers and outlets. Bulk
customers consist of commercial, industrial customers and autogas stations.

See next page showing diagram of the process flow - Operations Flow Chart.



July 31, 2016 7



PRYCE GASES, INC.

Operations

LOAD PORT SHIP / LPG TANKER RECEIVING FACILITY DISCHARGING HOSE RECEIVING PIPELINE

DELIVERY TRUCK
CYLINDER REFILLING STORAGE TANKS

SALES CENTER & DEALERS

REFILLING PLANT
TRAILER / LORRY BULK FILLING

▪ HOUSEHOLDS
▪ COMMERCIAL CUSTOMERS
AUTOGAS STATION

INDUSTRIAL /COMMERCIAL TRUCKS

CUSTOMERS

Fixed Assets
Terminals, Refilling Plants and Autogas
Map of Assets

LPG Sea-fed Terminals

• Luzon (1): 8,400 MT
• Visayas (4): 5,390 MT
• Mindanao (3): 4,410 MT
• Total: 18,200 MT

LPG Refilling Plants

• Luzon (30): 1,523 MT
• Visayas (9): 290 MT
• Mindanao (6): 180 MT
• Total: 1,993 MT

LPG Autogas Stations

• Visayas (14)
• Mindanao (13)

July 31, 2016 9



PHILIPPINE LPG INDUSTRY

MACROECONOMIC FIGURES
TOTAL DEMAND AND SUPPLY (in Thousand Metric Tons)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

DEMAND 959 1022 1009 1101 1101 1107 1091 1115 1147 1319

EXPORT 0 3 9 0 0 4 0 0 0 5

PRODUCTION 339 259 312 288 369 394 358 321 301 470

IMPORT 633 780 708 844 768 736 730 785 807 862

Source - Department of Energy (DOE)

July 31, 2016 10



LPG INDUSTRY

PHILIPPINE LPG INDUSTRY - MARKET SHARE

2007 2008 2009 2010 2011 2012 2013 2014 2015

Petron 34% 38% 35% 34% 40% 42% 34.45% 35.25% 35.89%
Isla Gas 24% 20% 18% 17% 17% 16% 15.28% 14.48% 13.56%
Liquigaz 24% 24% 29% 30% 26% 25% 31.02% 30.40% 27.89%
Caltex 3% 0% 0% 0% 0% 0% 0.00% 0.00% 0.00%
Nation 0% 0% 0% 0% 0% 0% 0.00% 0.00% 0.00%
Total 8% 9% 8% 8% 7% 4% 3.37% 1.68% 0.64%
Pryce 3% 3% 4% 4% 4% 5% 5.81% 9.04% 12.10%
Petronas 5% 6% 6% 7% 7% 8% 9.37% 8.69% 6.21%
South Pacific - - - - - - - 0% 0.38%
Others 0% 0% 0% 0% 0% 0% 0.70% 0.46% 3%
100% 100% 101% 100% 100% 100% 100%
Source - Department of Energy
PHILIPPINE LPG INDUSTRY - VOLUMES (In Thousand Metric Tons)
2007 2008 2009 2010 2011 2012 2013 2014 2015

Petron 326 383 385 374 443 455 384 404 473
Isla Gas 230 202 198 187 187 178 170 166 179
Liquigaz 230 242 319 330 288 276 346 349 368
Caltex 29 0 0 0 0 0 0 0 0
Nation 0 0 0 0 0 0 0 0 0
Total 77 91 88 92 77 43 38 19 8
Pryce 29 30 44 44 42 52 65 104 160
Petronas 48 61 64 77 76 85 104 100 82
South Pacific - - - - - - - 0 5
Others 0 0 0 0 0 1 8 5 41
959 1009 1101 1101 1107 1091 1115 1147 1319
Source - Department of Energy



Financial Highlights

2012A 2013A 2014A 2015A 2016P 2017P

PRYCE GASES, INC. & SUBSIDIARY

Sales Volume (LPG- metric tons) 53,194 63,590 113,294 146,188 175,426 201,511

In Php
Revenues 3,576,781,405 3,810,695,703 5,667,259,474 5,625,892,743 7,016,125,977 8,768,332,393
Cost of Sales 2,873,824,581 3,066,341,395 4,821,098,066 4,212,495,344 5,278,478,693 6,605,067,901
Gross Profit 702,956,824 744,354,308 846,161,408 1,413,397,399 1,737,647,284 2,163,264,492
Operating Expenses 590,059,871 602,625,275 644,047,498 659,442,195 662,893,275 693,333,602
Operating Income 112,896,953 141,729,033 202,113,910 753,955,204 1,074,754,009 1,469,930,890
Other Income (Expenses) 52,238,545 (25,956,056) 64,151,227 (130,323,834) (75,317,911) (88,354,568)
Profit Before Tax 165,135,498 115,772,977 266,265,137 623,631,370 999,436,098 1,381,576,322
Income Tax Expense (35,070,510) (21,951,796) (56,348,658) (100,165,707) (199,887,219) (276,315,264)
Net Income 130,064,988 93,821,181 209,916,479 523,465,663 799,548,879 1,105,261,058
EBITDA 339,798,558 371,419,351 478,573,322 990,712,574 1,399,285,752 1,819,959,982

Pryce Corp. – contribution to Net Income 18,467,512 8,272,366 86,998,530 65,594,979 80,000,000 100,000,000
Pryce Corp. – Consolidated Net Income 135,971,114 98,935,403 296,915,008 589,060,642 879,548,879 1,205,261,058
EPS( based on 2 billion shares) 0.068 0.049 0.148 0.302 0.440 0.603

A = Audited; U = Unaudited; P = Projected

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Management Structure
PGI- Regional Executive Officers (“REO”)

Alexis M. Sulatre Christy F. Paasa

EVP – REO, Central Visayas AVP – REO, Panay Island

Jose Ma. L. Escano Franz Jonas L. Villegas

EVP – Southern Mindanao 1 AVP – Northern Mindanao

Jeremy Riel E. Sumillano Roque C. Competente

Acting REO – Southern Mindanao 2 AVP – Western Mindanao

Ethelbert R. Deguit Joedim L. Magallano

SVP – REO,Eastern Visayas AVP – Negros Island

Jose Angelo C. Lim

AVP – Eastern Mindanao

OOC- Regional Executive Officers

Rudy T. Abuyog Jonax D. Aguadera

President, Oro Oxygen Corp. SVP – REO, Southern Luzon
REO, Northern Luzon
July 31, 2016 13



Key Points

1. The Philippine LPG market is expected to continue growing, hooked by low price in the near
term and use- convenience, and a high potential in demand as indicated by the country’s
relatively low consumption per capita.

2. Pryce Gases, Inc. (PGI), through its nationwide infrastructure and a n

experienced & dynamic management team, is very well positioned to further
expand its market share in the domestic LPG market.

3. Unlike other consumer products where customers can easily switch brands, PGI’s
LPG business is such that customers cannot do so since they get tied to the LPG
brand. Purchasing the PryceGas - branded cylinder includes the condition that they
cannot refill their cylinder with another supplier’s LPG product and switching to
another brand of cylinder will mean spending about P2,000 for another branded
cylinder plus its regulator valve.

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