NIELS FREDERIKSEN, TECHNICAL SUPPORT MANAGER

HEXAGON RAGASCO A BETTER SHAPE FOR YOUR BUSINESS

JAKARTA, INDONESIA, 03-12-2014

NIELS FREDERIKSEN

NIELS FREDERIKSEN Joined Hexagon Ragasco in 2013.

25+ years experience in the international LPG Industry.

IN PARTNERSHIP WITH THE LPG INDUSTRY

•  Hexagon Ragasco is an active partner in the world’s leading industry organizations.

WHERE WE ARE

Group turnover of USD 200 million in 2013

Americas •  Barbados •  Bermuda •  Canada •  Colombia •  Dominica •  Grenada •  Guyana •  Mexico •  Paraguay •  St. Lucia •  St. Vincent •  USA •  Venezuela

Asia Pacific •  Australia •  India •  Indonesia

•  Malaysia •  Maldives •  New Zealand •  Philippines •  Sri Lanka •  Tahiti •  Taiwan

Europe •  Albania •  Austria •  Belgium •  Bulgaria •  Croatia •  Czech Republic •  Denmark •  Estonia •  Finland •  France

•  Germany •  Greece •  Hungary •  Iceland •  Ireland •  Italy •  Latvia •  Lithuania •  Luxemburg •  Netherlands •  Norway •  Poland •  Portugal •  Romania •  Russia •  Slovakia •  Spain •  Sweden •  Switzerland •  UK

Middle East and Africa •  Angola •  Ghana •  Iraq •  Israel •  Kenya •  Nigeria •  Qatar •  Saudi Arabia •  South Africa •  South Sudan •  Sudan

OUR CYLINDERS ARE CURRENTLY IN USE IN:

WHO WE ARE

•  The world’s leading manufacturer of state-of-the-art composite LPG cylinders for lifestyle and business applications

OUR PRODUCTS

OUR COMPOSITE LPG CYLINDERS

•  Over 9 million units sold worldwide

•  Industry-leading safety record

•  Adding value for customers in over 70 countries

•  Composite pressure vessel since 1985

•  LPG cylinders since 2000

CONSTRUCTION OF OUR CYLINDERS

1. Seamless polymer liner contains the gas

2. Fibre structure holds the pressure and prevents bursting of the pressure vessel

3. Fully-integrated outer casing protects the valve and the pressure vessel, and gives our cylinders its unique appearance

CONSTRUCTION OF OUR CYLINDERS

DESIGN: -  Inner liner of HDPE -  Glass fiber winding -  HDPE casing -  Interface boss of

brass and HDPE

-  Fixed TW per size and valve

CERTIFICATIONS

International certifications North America •  Approved according to ISO9001: Quality Management

Systems

•  Approved according to ISO11119-3: Gas cylinders – Refillable composite gas cylinders and tubes. Part 3: Fully wrapped reinforced composite gas cylinders and tubes up to 450L with non-load sharing metallic or non-metallic liners.

•  EN 12245 Transportable Gas Cylinders- Fully-wrapped composite cylinders

•  EN 14427 Transportable refillable composite cylinders for LPG – Design and construction

•  Other approvals in around 70 countries

•  USA - Department of Transportation (DOT) Special Permit SP-12706

•  Canada - Transport Canada (TC) Equivalence Certificate, Level of Safety SU-5931

All Type Approval certificates issued by TÜV Rheinland

OUR CYLINDERS ARE:

Safer •  Pressure tests show our

composite cylinders withstand more than 50% higher burst pres-sures than their steel counterparts

•  Unrivalled safety record

160

140

120

80

60

40

20

0

Typical burst pressure (bar)

Average traditionalsteel cylinder

Hexagon Ragasscocomposite cylinder

OUR CYLINDERS ARE:

Safer •  Our cylinders will not BLEVE

•  Less risk of rupture and explosion in case of fire

•  Greater reassurance for consumers

FIRE TEST VIDEO

OUR CYLINDERS ARE:

Lighter •  Our composite cylinders are half

the weight of their steel equivalents

•  Easier to handle and transport - and ultimately less costly

•  For consumers, easier to lift, change and refill

OUR CYLINDERS ARE:

Translucent

•  Easy to see the liquid gas level

•  Easy to check gas level in use

•  Eliminates the need for inaccurate gauges

•  Unique feature for user-friendly use

LIFESTYLE APPLICATIONS

Marine Mobile home BBQ

OUR CYLINDERS ARE:

Corrosion-free •  Composite cylinders do not rust,

corrode or deteriorate like steel. Excellent results in coastal areas.

•  Longer lasting and cleaner in use

•  Reduced costs of refurbishment and replacement

Accumulated maintenance cost over time of Elio cylinders vs steel

MetalComposite

Years

Expenses

Accumulated maintenance over time of Hexagon Ragasco cylinders vs steel

PERIODIC RETEST - PROCEDURE

•  The procedure for periodic retest for composite cylinders is not yet specified in ADR/RID

•  We recommend reference to EN1440:2008 or ISO11623

•  The referenced standards are open to several procedures

•  Retest procedure must be ratified by the competent body in each country

•  Hexagon Ragasco recommends ̵  Internal / External visual inspection (with light source) ̵  Pressure test (hydraulic or pneumatic proof testing) ̵  Leak tightness test with valve installed

De-valving Internal Washing

Visual Inspection External

Visual Inspection

with Internal light source

Proof Test Purging Valving

Marking with date for next retest

PERIODIC RETEST - PROCEDURE

INSTRUCTION FOR FILLING AND PERIODIC INSPECTION.

RECYCLING CYLINDERS

HDPE casing Casing removed, material shredded and re-used

HDPE liner Material shredded and re-used

Fiber and resin Shredded, heat treated and re-used

Brass parts Melted down and re-used after removal

WHY CONVERT TO COMPOSITES?

Differentiated market

Minimum Premium

Minimum price Delivery insufficiencies Sub-standard cylinders Un-profitable operation

Premium price Delivery certainty

21st century cylinders Profitable operation

CONSUMER LOYALTY INDIFFERENT LOYAL

RFID: KEEPING TRACK OF YOUR CYLINDERS

•  Hexagon Ragasco cylinders can be supplied with RFID chips installed by IDTEK

•  All RFID numbers logged on a customized company database

•  Allows cost-effective management of cylinder stocks through the whole supply chain

•  Allows improved rotation of cylinders and better customer service

•  With RFID the Real Cylinder Delivery Cycle can be measured

Delivery cycleCollection cycleCustomer cycle

LPG Cylinders cycles

Scan of Customer Card (CC)

Scan of gas cylinder

Automatical data transfer to the web server

1

3

2

RFID: END-TO-END DIGITAL LPG OPERATIONS BY PEGASUS

•  Physical Tracking & CRM

•  Digital Control & Benchmarking

WWW

1

3

2

GSM

RFID

RFID

Delivery Process (Point of Sale)

THANK YOU

Niels.Frederiksen@hexagonragasco.com