Silicon Controls The Road to 65 Average Fill

Silicon Controls The Road to 65% Average Fill GLOTEC, Mexico City March 2013 Brian Kline 360. 635. 3496 briank@siliconcontrols. com Silicon Controls, copyright 2013 Commercial in confidence

GASLOG Program Management AGENDA 1. WHERE DOES TANK MONITORING FIT IN? 2. WHY DEPLOY TANK MONITORING? 2010 37% 3. HOW DO LPG PROVIDERS INCORPORATE TANK MONITORS? 4. WHAT TO LOOK FOR WHEN SELECTING TM TECHNOLOGY? 5. HOW MATURE IS THE TELEMETRY MARKET? 6. WHAT HAS ONE LPG COMPANY ACHIEVED? 7. WHAT HAVE WE LEARNED IN THE LAST 10 YEARS? 2012 52% Silicon Controls, copyright 2013 Commercial in confidence

GASLOG Program Management WHERE DOES TANK MONITORING FIT IN? Tank Sensor (Gauge to signal) Truck Route GASLOG Services - tank level to truck delivery Customer/Site: Address Tank monitor (GSM unit) Bus. Apps. ERP & Scheduling Tank Levels & Alarms Customer, Site, Tank updates Customer Tank Telemetry management A. B. Management suite C. Report Scheduling D. ERP Interface Communications manager B. Secure Internet/LAN access Silicon Controls, copyright 2013 C. D. Operational data Levels, Alarms, Diagnostic data A. Central Database Configuration data Tank, Alarm, site settings Cellular/PSTN or Wireless Networks Commercial in confidence

GASLOG Program Management WHY DEPLOY TANK MONITORING? 2009 to 2011 236, 374 sites 1, 039, 000 deliveries Payback in 1 year Payback 1 -2 years Payback 2 -3 years Industry average fill ~33% despite rapidly falling cost of technology Silicon Controls, copyright 2013 Commercial in confidence

GASLOG Program Management WHY DEPLOY TANK MONITORING? Industry Average 33% 1. Analysis of 1, 039, 000 deliveries shows an average delivery size of just 33% 2. The majority of customers receive 5 or less drops per year, with most drops being less than 40% 1. Tank monitors increases avg fill by 60 -80% within 3 months of deployment 2. Reducing drops & associated variable costs and ultimately requiring less trucks 3. Improves customer service in an increasingly competitive energy market Silicon Controls, copyright 2013 Commercial in confidence

GASLOG Program Management HOW DO LPG PROVIDERS INCORPORATE TM? A. Assess fill efficiency and calculate ROIs A • Evaluate technology, run trials (50 -500 units) • Integrate TM level with ERP BB. Estalbish % of un-forecastable customers • Evolve operational processes • Integrate with scheduling system CC. Reduce variable costs and # of trucks • Rollout to 30% of tanks • Integrate with routing & on board truck computing D. Unique selling point D A B C D Key to distribution efficiency & a platform for customer service Silicon Controls, copyright 2013 • Customer web portal • Move customers from will call to forecasted delivery based on benefits EE. Investigate other applications Commercial in confidence

GASLOG Program Management WHAT OTHER APPLICATIONS DOES TELEMETRY SUPPORT? E Tanks & Cylinders Cathodic Protection Float Gauge Metering Magnetel Ultrasonic Meters Cathodic Protection Pressure Temperature Reticulation Auto Change Over Auto Changeover Cage Door Monitor Cages Silicon Controls, copyright 2013 Commercial in confidence

GASLOG Program Management WHAT TO LOOK FOR WHEN SELECTING TM TECHNOLOGY? Ease of Deployment Low Cost of Ownership Quick, simple installation <10 mins Hazardous area Zone 0 certified Configured remotely Battery operated (5 year life) Driver install Low equipment cost Minimize comms. cost Minimal maintenance Robust and reliable Modular, Adaptable Components Ease of integration with back office Range of networks (GSM, RF, PSTN) Multi & single tank solutions (Virtual) Digital & Analog inputs (e. g. meter & level) Range of unique sensor solutions Common plug & play architecture Silicon Controls, copyright 2013 Commercial in confidence

GASLOG Program Management HOW MATURE IS THE TELEMETRY MARKET? Calor Gas BOC Ipragaz (Turkey), Liquigas (Italy) Primagas (Benelux, Spain, Denmark, Norway, Czech R, Slovakia) Philippines, India, Pakistan, China Amerigas, Inergy, Suburban, Blossman Gas, Thompson Gas, Growmark, Revere Gas, Tru. Pointe, SOS Fuels, Delta Liquid Energy, United Landmark, Air Liquide… BOC Contact Energy BOC, Elgas, Kleenheat Origin Energy, Vital Gas Telemetry is not new, these companies have deployed 90, 000+ units Silicon Controls, copyright 2013 Commercial in confidence

GASLOG Program Management WHAT HAS ONE PROPANE DISTRIBUTOR ACHIEVED? Case study 2003 -2009 Program 1. Deployed 50, 000+ tank monitors over 5 years Average fill 52% 2. Improved integration with ERP, Scheduling 3. Deployed routing & truck computing 4. Drove operational change management program Results Routing & scheduling ERP & forecasting 1. Reduced delivery trucks by 27% in same period 2. 10% (42, 000) fewer deliveries per year 3. Yearly reduction of 1, 000 miles Telemetry Tank Level 4. Run outs down from 4, 500/year to < 1, 000/year 5. From 14, 000 fixed day delivery to 3000 Silicon Controls, copyright 2013 Commercial in confidence

GASLOG Program Management WHAT HAVE WE LEARNED IN THE LAST 10 YEARS? 1. Assess actual payback and savings potential using historical data 2. Engage drivers & operational staff in deployment One approach (next steps) 3. Integrate tank monitoring with back office applications early 4. Assess performance and monitor improvements 5. Drive districts, targeting aggressive goals (65% average fill) 6. Develop a robust model to assess subsequent deployment phases 7. Review working practices, be prepared to modify culture 8. Focus on cost reduction, realize customer service improvements 9. Successful programs require collaboration and strong leadership Silicon Controls, copyright 2013 IT Operations & Logistics Depot Teams & Drivers Strong Leadership Commercial in confidence

GASLOG Program Management Thank you “To measure is to know, if you can not measure it, you can not improve it” Lord Kelvin (William Thomson 1824 -1907) Silicon Controls, copyright 2013 Commercial in confidence