7/24/2014

Eastern Energy Innovations

• Welcome!
• Thank you for your interest in Eastern Energy
Innovations

• 1st Major Innovation In Liquefied Petroleum (LPG)

• After 65 years

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The Philippine LPG industry

• 10 Million out of 20 Million Filipino households use LPG

• 3rd most important staple to a Filipino family

• 90 Billion Peso industry a year

• Most popular heat source for cooking

• By Far the most practical and Economical Cooking Fuel.

• 10% are commercial while households consists the majority LPG

Consumers

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EC Gas a product of Eastern Petroleum

Eastern Petroleum’s Background

• Eastern Petroleum :
Founded in December 10, 1996, and with over 17 years of experience

• Vast Retail Network:

50 retail outlets nationwide.

• Wide Range of Facilities:

2 Depots Located in Bataan and Pasig.
Facilities Include Truck fleets, warehouses etc.

• Part of the Top 500 Philippine Companies within 10 years of its

Incorporation.

• Over 3.5 Billion Pesos in Revenues as of 2011

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Company Operations

LPG Facts
• Based on DOE we currently have 14 Million LPG
Cylinders Circulating in our Country as of 2012
• 3 Million (25%) is for re-qualification
• 1.2 Million (10%) is for repair
• 1.8 Million (15%) is for Scrap

Source: DOE

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Exhibit 1:Dilapidated Cylinders

Exhibit 2: Fire Incidents

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Top Causes of Philippine Fires

Smoking 536

Spontaneous Ignition 147

3rd 2,428
Fireworks 246

Quantity
LPG 2428

Open Flames 3267

Electrical 4479

0 1000 2000 3000 4000 5000

As per Bureau of Fire Protection and NSO Statistics, from 1995 to 2011

Main causes of LPG Tank Malfunction

Fact 1: Steel Tanks corrodes overtime and simply repainted
Fact 2: Steel Tanks can explode during Fires
Fact 3: Steel Tanks leaks due to rust (Internally & External)
Fact 4: Defective Regulators due to substandard quality
Fact 5: Brittle hose due to substandard quality
Fact 6: Unauthorized Dealers that changes the valves of the
Tank.

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Other disadvantages
• Heavy due to its metal construction
• Level of LPG cannot be seen
• High Maintenance and has to be re-qualified
and repainted
• Low enforcement of Steel Tank Requalification
procedures

WHY switch to
EC Gas
Composite
Cylinders?

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Made by a Market and Technology

Leader • - The Leader in
Composite and
New Materials
Technology

• - Diverse product
Lines Ranging
from LPG
Cylinders, Natural
Gas Transport and
special
composites for
power generation

Cylinder Technology
• Cylinders are manufactured
under nearly full automation.
ISO Certification: 11119-3

• Designed to operate across all

weather conditions from -40
degrees Celsius (Antarctic
regions) to +65 degrees Celsius

• Cylinders are custom built for

Eastern Petroleum
Corporation. Robust Design
and High Durability

• Made in Europe (Norway)

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Superior Regulator Technology

• Made in Germany.

• Over 90 Years (1922-2012) of expertise in

Valve manufacturing. Globally Certified.

• The same company also creates valves for

precision manufacturing such as
semiconductor, aerospace and cryogenics.

• High Precision Manufacturing

• Auto Shut off if Pressure exceeds 1kg per

hour.

• Shuts off during a rupture or if hose gets

detached.

End User Product Benefits

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EXPLOSION PROOF
• Full Composite Cylinder (Plastic Liner) cylinders will never
explode in Fire.

• WILL NOT EXPLODE EVEN WHEN COMPLETELY ENGULFED IN

FLAMES

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CORROSION-FREE
• Plastic liner and glass fibre does not corrode

LOWER MAINTENANCE COST

• Only washing required

• No need for re-

conditioning works of
cylinders due to rust
and corrosion

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LIGHTER
• 70% lighter than steel cylinders. Therefore,
allows more cylinders to be transported.

Translucent
• Customer sees the
level of LPG to
avoid running out
of Fuel while
cooking.

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9 million users worldwide!

Present in 40 countries
• Australia  Hungary • Philippines
• Austria  Iceland • Poland
• Belgium  India • Portugal
• Bhutan  Indonesia • Qatar
Bulgaria • Romania
•  Ireland
Canada • Saudi Arabia
•  Italy Slovakia
• Czech Republic •
 Latvia Spain
• Denmark •
• Estonia
 Lithuania • Sweden
• Finland  Luxembourg • Switzerland
• France  Malaysia • Turkey
• Germany  Mexico • UK
• Greece  Nigeria • USA
• Holland  Norway

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Meets the highest standards.

15 year Manufacturing track record

Relevant standards and approvals

– EN 12245 Transportable Gas
Cylinders- Fully wrapped
Composite Cylinders
– EN 14427 Transportable refillable
fully wrapped composite cylinders
for LPG- Design and construction
– EN 14763 Transportable refillable
composite cylinders for LPG-
Procedure for checking before,
during and after filing.
– EN 14767 Transportable refillable
composite cylinders for LPG-
Periodic requalification.
– Approvals in North America:
• USA- Department of Transportation
(DOT) Special Permit SP-12706
• Canada- Transport Canada (TC)
Permit for Equivalent Level of Safety
SU-5931

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Local Approval

Doing business with EC Gas

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EC Distributor FRANCHISE PACKAGE

• EC Hub Franchise Fee P1.5M
Coverage of 50,000 Households

• Included in the EC Hub Franchise Fee are the Following:

– 75 EC Gas Cylinders Set (without LPG content)
– Canopy and Flag signage
– Computer with printer
– 1 Solo Type Motorcycle with free Helmet and TPL
Insurance(2 Cylinder Capacity)
– Uniforms good for 3 persons
– Advertising and Marketing Paraphernalia
– Initial Staff Training and Orientation

ECGAS OUTLET FRANCHISE PACKAGE

• EC Gas Outlet Franchise Package : Php 550,000
Coverage of 5,000 Households

• Included in the EC Outlet Franchise Fee are the

• Following:
– 30 EC Gas Cylinder Set (without LPG content)
– Canopy and Flag signage
– 1 Solo Type Motorcycle with free Helmet and TPL Insurance(2 Cylinder
Capacity)
– Uniforms
– Advertising and Marketing Paraphernalia
– Initial Staff Training and Orientation

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ECGAS NEIGHBOURHOOD OUTLET

FRANCHISE PACKAGE
• EC Gas Neighbourhood Outlet Franchise Package :
Php 150,000
Coverage of 1,500 Households

• Included in the EC Outlet Franchise Fee are the

• Following:
– 10 EC Gas Cylinder Set (with LPG content)
– Canopy and Flag signage
– Uniforms
– Advertising and Marketing Paraphernalia
– Initial Staff Training and Orientation

Total Franchise Investment

EC GAS HUB (Exclusive Distributor)

Franchise Package Php 1.5 Million

Php 2 Million
Initial cylinders with Regulator and (500 Cylinders: Operating Capital – Staggered Delivery for
Hose 3 months)

Php 350,000
(Content for 1000 Cylinders: Operating Capital – Staggered
Initial LPG Stock Delivery)

FiguresExpenses
Operating are exclusive
for 2 of rental advance
Months payment, additional construction
Php 100,000+
cost and 6 months, working capital.
Total Php 3.9M

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Total Investment
EC Gas Outlet Turn Key
Franchise Package Php 550,000
Initial Cylinder Set
Stocks Php 425,000

LPG Stocks Php 70,000

Misc Expenses,
permits, etc. Php 50,000
Total Estimated
Investment Php 1M++

Exclusive of rental advance payment, additional construction cost and working

capital. Financeable through BPI Ka-Negosyo up to 70% or BDO.

EC Gas Outlets
• From official launching last September 5, 2013
to July 23, 2014
• 36 Outlets
• 32 Distributors
• 34 Under Construction
Total of: 102
• 200+ under processing

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Fire Test Video

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