Understanding a Market of 100 million cylinders GLOBAL FORUM OF LP GAS GLOBAL FORUM OF LP GAS Speaker: Ivo Gastaldoni

Understanding Brazil

Northern: : 6,8 % Northeast: 26,4 % Midwestern: 8,4 % Southeast: 43,2 % Southern: 15,2 % ,599 km inhabitants Source : ANP / IBGE % Domestic Sales General View of the Market Understanding Brazil Regional Division Regional Division (Characteristics of the Country) CYLINDERS OF 13 KG IN ALL NATIONAL TERRITORY

LP Gas Market Brasil - World Understanding Brazil General View of the Market 95% of Households Served; 31 million P.13 commercialized per month; Universe estimated in 100 million of P.13 cylinders; 22 Distributors of LP Gas; official resellers; SUPPLIER Petrobrás/othersSUPPLIER DISTRIBUTORS 22DISTRIBUTORS BULKBULK PACKEDPACKED RESELLERS RESELLERS FINAL CONSUMER FINAL CONSUMER Source: Sindigás

ton/month LP Gas Market Source: ANP Universe Source: Statistical Review of Global LPG World Consumption of LP Gas World Consumption of LP Gas (year 2007) LP Gas Consumption in Brazil LP Gas Consumption in Brazil (year 2007)

Before and After – Auto- Regulamentacion Code Universe of 13 kg Gas cylinders Source: PNR – REPORT OFF 23/06/09 Quality / Safety / Traceability 83 MM 1ª Stage 10 years Save Gas Cylinder 17 MM of 13 kg Gas cylinders

SAFE GAS CYLINDER Distributors Obligations: Distributors Obligations : Source: Sindigás The 13 kg Gas cylinder Inviolable Seal Safety Label of the gas cylinder Inspection Name of the distributor stamped on the body RESOLUTION Nº 15, FROM MAY 18th, 2005 Fill and commercialize only cylinders in which the brand is stamped on its body ; Commercialize only cylinders in which the label informs the date of filling, the distributor that performed the filling and the distributor that will perform the sales; Commercialize only cylinders that have the inviolability seal of the flow valve that informs the distributors name and that is certified with the National Brand of Conformity issued by INMETRO

Fire Brigade Organs of Consumer Protection Secretariats of Finance Secretariats of the Environment Who regulates and inspects the commercialization of the 13 kg Gas cylinder? Inspection in Brazil Logistic

FINAL CONSUMER (47 MM of residences ) 67 MM cylinders RESELLERS MM cylinders DISTRIBUTORS 7 MM cylinders A AA A A AAAA exchange (18 plants) 600 M botijões REQUALIFICATION REQUALIFICATION (33 ORV´S) 300 M cylinders VISUAL INSPECTION / SELECTION Requalification Source: Estimate based in PRN - CND Estimate of on board transit 6 MM 2 MM de cylinders OTHERS 2 MM de cylinders The Logistic of Cylinders

Requalification Requalification Workshops Requalification Requalification – periodic process for evaluation of the condition of the cylinders, determining its continuity in service, according to the rule NBR 8865 from ABNT. 1st Requalification Requalification1st Up to 15 years (manufacturing date) Up to 15 years (manufacturing date) Next Requalifications Up to 10 years Up to 10 years (date of the last requalification)

TOTAL = 33 WORKSHOPS Source: Sindigás Requalification Workshops COMPANIES QUANT. Aratell2 Berquó1 CNC1 Esmaltec1 Fogás2 Grupo Ultra4 Mangels5 Milano1 Nacional Gás4 NHL1 Nova Fase2 Pampa1 Qualival (SHV)1 Rebogás1 Servgás1 Superfície2 Trucoffer1 Urano1 Worthigton1 TOTAL 33 Requalification Numbers

Source: PNR – REPORT OF 23/06/09 Requalification Numbers Requalified Total Requalified Total ( ) 83 MM 13 kg Gas Cylinders 83 MM 13 kg Gas Cylinders Scrap Total Scrap Total ( ) 17 MM 13 kg Gas Cylinders 17 MM 13 kg Gas Cylinders Swap Annual Evolution (millions of cylinders) REQUALIFIEDUNUSABLE requalifiedscrap

SOURCE: CND - National Coordination of Swap 1.Araucária/PR; 2.Aracaju/SE; 3.Belém/PA; 4.Betim/MG; 5.Brasília/DF; 6.Campo Grande/MT ; 7.Canoas/RS; 8.D. de Caxias/RJ; 9.Fortaleza/CE; 10.Goiânia/GO; 11.Ipojuca/PE; 12.Manaus/AM; 13.Mataripe/BA; 14.Mau á /SP; 15.Paulínia/SP; 16.Porto Velho/RR; 17.S. J. dos Campos/SP; 18.São Lu í s/MA THE GAS CYLINDER SWAP Numbers of the 13 kg Gas cylinders Swap

Source: C ND : National Coordination of Swap Numbers of the 13 kg Gas cylinders Swap Annual Evolution SWAP (P.13 x1.000) Expenses with Swap without freight (R$ x1.000) The Investments

REQUALIFIED SWAP OF CYLINDERS WITH FREIGHT ESTIMATION SCRAP REPLACEMENT R$ ,00 R$ ,00 R$ ,00 Investments performed by the Distributors The Investments R$ ,00 PROJECTION OF THE BRAZILIAN MARKETs ANNUAL EXPENSES