1

PROPANE EDUCATION
& RESEARCH COUNCIL
NASHVILLE, TENNESSEE
April 7, 2016

ADVISORY COMMITTEE
REPORT
Randy Warner

PORTFOLIO REVIEW
SUBCOMMITTEE
Rob Chalmers

2015 PERC
COMMERCIALIZATION
METRICS

PERC COMMERCIALIZATION METRICS
What is included:
• Products in which PERC has
directly invested in development &
commercialization.
• Gallon figures based on the
average annual consumption per
unit.
• Unit numbers reported by OEM
partners.
What is not included:
• Indirect impact of PERC
investment, i.e. Residential Market
• Products served through incentive
programs but not directly supported
through PERC product
development investment i.e.
Commercial Mowing Aftermarket,
Autogas Aftermarket

OUTSIDE FACTORS IMPACTING 2015 METRICS
• Steep decline in oil prices
• Wet weather in the midlands
• No extreme weather events
• Low commodity prices for corn, soy, and wheat
• Oil and Gas industry slow down

2015 Metrics -
Projected Gallons
Market
 Agriculture
 Commercial
 Off Road
 On Road
 Res/Com
64.7M
1.7M
84.9M
114.1M
4.2M
269.6MTotal:

2015 Metrics -
Actual Gallons
Market
 Agriculture
 Commercial
 Off Road
 On Road
 Res/Com
42.2M
0.6M
179.2M
49.5M
1.9M
273.4MTotal:

Industrial Engines
50%
Forklift
14%
School Buses
10%
Irrigation Engines
8%
Agriculture
Structure Heat
7%
Medium Duty
Vehicles
4%
Light Duty Vehicles
4% Mower Engines
2% Port Tractors
Large Forklifts
Bore/Drill Rigs
Paving Equipment
Rollers
Rubber Tire Loaders
Skid Steer Loaders
Surfacing Equipment
Aerial/Boom Lifts
Backhoes
Trenchers
Sweepers
Chippers
Generators
2015 GALLONS BY APPLICATION
Total: 273,363,834

 Agriculture Agriculture Structure Heat
Grain Dryers
Irrigation Engines
Pest Control
 Commercial Combined Heat & Power
Construction Equipment
Generators
Heat Pump
 On Road Light Duty Vehicles
Medium Duty Vehicles
School Buses
 Off Road Construction Equipment
Forklift
Industrial Engines
Mower Engines
 Residential/
Commercial
Combined Heat & Power
Commercial Water Heaters
Generators
 Projections
0 25 50 75
2016
2015
2014
2013
2012
Thousands
45,426
55,078
48,506
21,848
2015 METRICS - UNITS

0
100
200
300
400
500
600
700
800
Millions
Agriculture Commercial Off Road On Road Residential & Commercial Projection
2013
AGGREGATE GALLONS CONTRIBUTED BY
PERC PRODUCT DEVELOPMENT PROJECTS
2012 2014 2015 2016 2017 2018

2012-2015 Aggregate Gallons, Units, and Average Gallons/Unit/Year
Application Category Gallons Units Avg. Gallon/Unit
Industrial Engines 309,669,700 75,887 6,133
Forklift 73,155,750 50,011 750
School Buses 64,693,000 7,673 3,583
Irrigation Engines 51,363,202 4,324 7,619
Agriculture Structure Heat 42,542,200 3,189 6,656
Light Duty Vehicles 33,615,000 1,521 3,571
Medium Duty Vehicles 21,813,365 3,140 4,303
Mower Engines 8,866,820 5,005 945
Generators 4,522,657 19,470 2,365
Pest Control 1,214,000 175 3,000
Combined Heat & Power 600,400 32 6,457
Construction Equipment 399,460 417 390
Commercial Water Heaters 160,000 4 20,000
Grain Dryers 90,000 4 10,000
Heat Pump 52,200 6 2,900
Grand Total 612,757,754 170,858 5,245

VALUE RETURNED ON PERC-DEVELOPED
APPLICATIONS IN THE MARKET
$0
$500
$1,000
$1,500
Margin (Low) Margin (Average) Margin (High)
$221.1
$295.7
$370.2
$882.9
$1,179.9
$1,476.8
Millions
2012-2015 Product Life Cycle

Industrial Engines
45%
School Buses
13%
Forklift Engines
11%
Irrigation Engines
9%
Light Duty
Vehicles
6%
Agriculture
Structure Heat
6%
Medium Duty Vehicles
4%
Generators
3%
Mower Engines
3%
Port Tractors
Large Forklifts
Bore/Drill Rigs
Paving Equipment
Rollers
Rubber Tire Loaders
Skid Steer Loaders
Surfacing Equipment
Aerial/Boom Lifts
Backhoes
Trenchers
Sweepers
Chippers
Generators
2012-2015 MARGIN RETURNS FROM
EXISTING SALES
* Based on Average Margin for Product Type

PRODUCT USE CYCLE TO 2015 GALLON
CONTRIBUTION
0
5
10
15
20
25
30
35
Number of Products
8%
10%
82%
% of 2015 Gallons
 Winter  Counter-seasonal  Year-round

TOP 10 APPLICATIONS OF 2015
1. PSI Prime/Industrial Engines (3.0L, 4.3L, 5.7L & 8.8L)
2. PSI 2.0L & 2.4L Engines
3. PSI 8.8L Off Highway Engine
4. Blue Bird Vision
5. L.B. White Variable Rate Swine Heating System
6. Roush Ford E-450
7. Kohler 747cc Closed-Loop Electronic Fuel Injection (EFI) LP Engine
8. Freightliner S2G
9. Thomas Built Saf-T-Liner Bus
10. Generac 15kW Ecogen Generator
*Based on year-over-year growth and total gallon contribution

BOTTOM 5 APPLICATIONS OF 2015
1. Freightliner MT 45/55
2. Ilios High Efficiency Water Heater
3. YANMAR 5kW micro-CHP
4. YANMAR 10kW micro-CHP
5. Roush Ford F-53/59
*Based on year-over-year growth and total gallon contribution

Docket Project Title IRR ROI
17440 PSI Prime/Mobile Industrial Irrigation Engines 7875% 431.56
17289 LB White Agricultural Heating Systems 1806% 335.97
17439 PSI 2.0L & 2.4L Engines 781% 35.37
19054 PSI 8.8L Off Highway Engine 638% 131.90
16909 Origin Engines 8.0L and 10.3L Industrial Engines 574% 47.58
19093 Freightliner MT 45/55 with GM 6.0L 228% 19.86
16296 Kohler 747cc Command PRO EFI Engine 197% 11.29
16607 Blue Bird Vision 182% 59.25
16413 Generac 15kW Ecogen Generator 134% 29.27
20242 Detroit Radiant Product High Intensity Radiant Brooder 131% 22.81
15490 Generac 6kW Ecogen Generator 130% 26.89
18269 Ilios High Efficiency Water Heater 120% 7.98
17086 Buck's GM 8.0L LPG Stationary Engine 108% 25.63
15177 Polar Power Advanced Premium Genset 100% 22.79
16414 Generac Portable Generator Line 80% 19.13
15494 Roush Multi-Platform Line 71% 11.04

PERC COMMERCIALIZATION INVESTMENT
$8.12
$20.15
$4.12
$9.66
$15.60 $3.99
$6.81
$7.41
$17.17
$37.14
$5.34
$48.64
$-
$10
$20
$30
$40
$50
$60
Residential/
Commercial
Autogas Agriculture Off-Road
Product Development Marketing Cofunding
Millions
$108.3M+ Co-
Funding

CHAIRMAN’S COMMENTS
Tom Van Buren

TREASURER’S REPORT
Rob Chalmers

HIGHLIGHTS OF 2015 AUDITED OPERATING
RESULTS TO BUDGET ($ IN MILLIONS)
Category Forecast Budget Variance
Beginning Surplus $5.9 $1.5 $4.4
Assessments $33.3 $33.2 $0.1
Deobligations $0.8 $1.0 ($0.2)
Operating Expenses ($7.1) ($7.2) $0.1
Program Funding ($18.9) ($20.9) $2.0
Ending Surplus $7.6 $1.4 $6.2

AUDIT COMMITTEE
REPORT
Doug Rinke

2015 AUDIT REPORT
• Audit process and findings.
• Issuance of an unqualified opinion on the audit.
• Strong financial condition.
• Notes to Financial Statements show compliance
with PERA.

2015 AUDITED FINANCIAL STATEMENT
HIGHLIGHTS
$28.5
$33.3
$9.3
$6.7
$30.7
$37.2
$9.9
$7.4
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Cash/ Investments Assessments Rebate Liability Rebates
2015
2014
($2.2)
$MM
($3.9)
($0.6)
($0.7)

HIGHLIGHTS
$7.6
$10.1
$6.0
$17.5
0
2
4
6
8
10
12
14
16
18
20
Surplus Designated Assets
2015
2014
$MM
$1.6
($7.4)

HIGHLIGHTS
$2.61
$2.40
2.25
2.3
2.35
2.4
2.45
2.5
2.55
2.6
2.65
Administrative Expenses
2015
2014
6.53%
$MM
7.78%

HIGHLIGHTS
$0.13
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
Agriculture Funding Carryover
$MM
2015

HIGHLIGHTS
$2.6
0
0.5
1
1.5
2
2.5
3
Over the Road Funding Limit
$MM
2015

CHIEF EXECUTIVE
OFFICER’S REPORT
Roy Willis

STRATEGIC CONSIDERATIONS
• Competitive Energy Markets
– Markets where propane has an economic advantage the cost to reach consumers is higher
• Residential
– Markets where the economic argument is more complex require a more sustained B2B campaign
• Autogas
• New & Emerging Markets requiring a more visible presence
– Landscaping
– Irrigation
– Golf/Turf
• Mature but Vulnerable markets
– Material Handling
• New Product Development needs and opportunities
– Robust Bobtail Engine
– High Horsepower Engines
– Heat Pump & CHP
– 3 to 6 ton Forklift
• Vital PERC Programs
– Industry Engagement – MTST/Industry Communications
– Workforce Safety & Training
– Technician Training
– Emissions & Operational Research

2017-2018 BUDGET SCENARIO –
$0.004 ASSESSMENT
• Reduction in the funding designated for the Residential Consumer campaign
• Cuts to B2B outreach activities to support commercialization efforts
• Major Reductions in Product Development, Insufficient funding for Bobtail Engine
development and other long lead product development projects
• Elimination of the Heat & Power Incentive Program
• Major Reductions in the Farm Incentive and Mower Incentive programs
• Scaled back Safety & Training initiatives to only workforce training, technician
training, and consumer safety
• Reduction by half the number of in-person MTST programs
• Reduced funding to the States due to ending the Partnership with States Program
without additional rebate dollars to off-set the loss of the program

TIMETABLE FOR DECISION
• Today: Instructions to the Budget & Finance Committee
• Advisory Committee Meeting -- May 17 - May 18, 2016
• Council Meeting -- July 12 - Jul 13, 2016
• Advisory Committee Meeting -- Sep 20 - Sep 21, 2016
• November Council Meeting -- Nov 2 - Nov 3, 2016
• Council Conference Call – TBD (February 2017)

“May I Have
Some More”
Oliver Twist

CHIEF BUSINESS
DEVELOPMENT OFFICER’S
REPORT
Tucker Perkins

RESIDENTIAL
• Market share increase from 4.95% to 6.2%
• 6.8 million households – propane space heating
• 4.5 million households – propane water heating
• 5.8 million households – propane cooking

NEW CONSTRUCTION HOMES:
NATIONAL PROPANE APPLIANCE INSTALLATIONS
Appliance
Propane
Installations
Propane Share %
Water Heaters-Tank 18,293 2%
Water Heaters-Tankless 63,961 13%
Ranges 20,356 3%
Cooktops 6,283 4%
Ovens 2,944 2%
Clothes Dryers 2,585 1%
HVAC Furnaces 25,033 4%
HVAC Boilers 6,107 15%
HVAC Heat Pump 25,336 8%
Fireplaces, Stoves 174,903 11%
Source: 2015 Home Innovation Research Lab Report

EXISTING HOMES:
NATIONAL PROPANE APPLIANCE INSTALLATIONS
Appliance
Propane
Installations
Propane Share %
Water Heaters-Tank 259,655 10%
Water Heaters-Tankless 8,107 6%
Ranges 380,004 6%
Cooktops 121,350 6%
Ovens 94,125 5%
Clothes Dryers 188,107 3%
HVAC Furnaces 191,970 9%
HVAC Boilers 58,686 11%
HVAC Heat Pump 63,491 7%
Fireplaces, Stoves 264,492 7%
Source: 2015 Home Innovation Research Lab Report

COMMERCIAL
2015 ACTUAL SALES 28
2016 PROJECTED SALES 73
2016 YEAR TO DATE SALES 20

Yale Materials Handling Corporation announces a new line
of industrial engines from Power Solutions International, Inc.
(PSI) for its 3,000 – 7,000-pound Class IV and V lift trucks.
Featuring Yale® Flex Performance Technology™, the new
engines offer exceptional fuel efficiency and power coupled
with reduced maintenance requirements, enabling operators
to move more loads with less downtime.
YALE DEPLOYS NEW PRODUCTIVITY ENHANCING PSI ENGINES
FEATURING YALE® FLEX PERFORMANCE TECHNOLOGY™
GREENVILLE, N.C. (February 4, 2015)

FORKLIFTS
• 67,586 units sold in 2015
• 74% market share in sit down rider units
• 32% market share of all fork lifts sold
• Port tractors by Capacity of Texas and Tico
• Voice of Customer survey complete

5,000 – 10,000 LB. CAPACITY FORKLIFTS
PROPANE VS. ELECTRIC

5,000 – 10,000 LB. CAPACITY FORKLIFTS
PROPANE VS. DIESEL

COMMERCIAL MOWING
• 17 OEM, 150 models
• 20,000+ units in service
• 5000 units sold in 2015
• 6 OEMs with aftermarket equipment
• Kohler 824cc EFI launched (Gravely Pro-Turn)

IRRIGATION MARKET SHARE (PERCENTAGE)
1.10% 2.22%
5.34%
20.36%
70.99%
-5.00%
5.00%
15.00%
25.00%
35.00%
45.00%
55.00%
65.00%
75.00%
Gasoline Propane Natural Gas Diesel Electricity
Gasoline Propane Natural Gas Diesel Electricity
Source: USDA-NAS Irrigation Survey 2013

PROPANE AUTOGAS VEHICLE SALES
147,000
161,000
173,100
185,600
198,600
223,600
+14,000
+12,100
+12,500
+13,000
+25,000
2012 2013 2014 2015 2016 2020

2015 PROPANE SALES
30%
70%
OEM
Aftermarket

NEW PROPANE SALES 2015
67%
33%
Light Duty
Medium & Heavy Duty

UPS MAKES $100 MILLION CNG INVESTMENT
• 12 Fueling Stations
• 380 Heavy Duty Trucks
Source: Reuters

• 520 units operating in the field
• Service related issues
• Check engine lights/reflash of the calibration
• High idle PTO shutdown
• Allison 2500 transmission inadequate for loads/hills
• FCCC dealer service needs to improve
• No similar experience in Thomas Built C2
• Continuous improvement
• In response time
• In effectiveness
• In current product
• In future product

2016 PROFESSIONAL AND
SUPPORT SERVICES
Docket 20881

DOCKET 20881
This request reflects PERC efforts to engage with DOE, use
outside consultants to engage on project tasks, and staff travel
for business development.
• $22,000 – Clean Cities/DOE/NREL Initiatives
• $64,000 – Propane Vehicle Technology Forum
• $13,000 – Technical Subject Matter Experts
• $120,000 – Industry and Regulatory Expert
• $19,000 – Staff Travel on Business Development
2016 PROFESSIONAL & SUPPORT SERVICES
Amount $237,990

CARBON MANAGEMENT
INFORMATION CENTER
CONSORTIUM 2016
Docket 20883

DOCKET 20883
• Continuation of PERC Docket No. 20446 (2015)
• Consortium membership with 17 natural gas utilities
• Focus on source-to-site emissions advantages for gas/propane
appliances
• Develop technically defensible resources and analytical tools
• NPGA uses the information for codes and standards /
regulatory issues
CARBON MANAGEMENT INFORMATION CENTER CONSORTIUM
Amount $50,000

RESIDENTIAL
BUSINESS PROGRAM
Bridget Kidd

GOALS, OPPORTUNITIES, PROJECTIONS
Increase the number of homes and buildings specified to include
propane appliances.
Increase the number of construction professionals aware of and
specifying propane equipment.
Increase the number of manufacturers creating and
commercializing propane appliances and equipment, and support
them.

New Construction Remodeling Replacement

Source: Real Estate Economics

Source: ICF International

NATIONAL STRATEGIES
Optimize outreach activities.
Refine messages and programs.
Use market intelligence to grow gallons.
Connect with states and local propane marketers.

OPTIMIZE OUTREACH ACTIVITIES
• Limit trade show presence to shows
with most engaged audiences.
• Focus trade PR and advertising on
key messages per year.
• Develop partnerships with other
residential gallon growers.

REFINE MESSAGES AND PROGRAMS
Six Opportunity-Focused
Campaigns in 2016
• Propane Energy Pod Builder
Incentive Program (New
Construction)
• Pull the Plug on Electric
Water Heaters (Replacements)
• Geothermal (New
Construction, Remodels)

• Heating Oil Conversions
(Replacements, Remodels)
• Big Builders (New Construction)
• Standby Generators
(New Construction, Remodels)

2016 Construction Professional Outreach:
• BuildWithPropane.com member campaigns
• Propane Energy Update e-newsletters
• Build With Propane Facebook page
• PropaneTrainingAcademy.com updates
• Content development
• Plumber/HVAC outreach

USE MARKET INTELLIGENCE TO GROW GALLONS
• Messaging and campaigns
were developed based on data
and research.
• Learnings from the Propane
Energy Pod Builder Incentive
Program are helping to position
propane as a key component to
building premium homes.

USE MARKET INTELLIGENCE TO GROW GALLONS
Research conducted in 2015 will continue
to shape 2016 messaging.
• Home Innovation
Research Labs (ongoing)
• Propane Standby Generators
& Resiliency Research
• Rental Market Research
• Residential Opportunity
Insights (ongoing)

CONNECT WITH STATES AND LOCAL PROPANE
MARKETERS
• All campaigns include marketer outreach
tools, resources, and communications.
• Emails and PERC communication assets are
sent to propane industry when new programs
launch.
• PERC-hosted webinars in 2015 focused
on water heaters as a way to grow gallons.

CONNECT WITH STATES AND LOCAL
PROPANE MARKETERS
Marketers and
State Executives
are seeing success
with residential
campaigns.

CONNECT WITH STATES AND LOCAL
PROPANE MARKETERS

FUTURE OF THE
RESIDENTIAL
BUILDER PROGRAM

THE FUTURE OF THE RESIDENTIAL
BUILDER PROGRAM
• Further optimization using new technology.
• Access to data allowing closer
to 1:1 marketing.
• Quantification of impact of communication
on building/renovation activities.
• Residential Opportunity Insights

THE FUTURE OF THE RESIDENTIAL BUILDER
PROGRAM
Sources
Paid media
Tradeshows
Social
PTA
Campaigns
BuildWithPropane.com
and Landing Pages
Audience Nurture
Tracks
Residential – New
Construction
Residential – Replacement
& Installation
Commercial – All
Professions
Segmentation
Track
Welcome/
Re-Engagement
Track
Automation Engine
 Engagement scoring based on profile
(demographics and filmographic) and behavioral
activity (page and website visits, PDF
downloads, button clicks, etc.).
 Personalized and dynamic emails triggered
based on user activity.
 Emails will drive profile information gathering
and website engagement activities.
PERC
Database

RESIDENTIAL OPPORTUNITY INSIGHTS
Launching tomorrow at Southeastern
Room 207A
12:30pm – 1:45pm
Provides targeted data and insights
that marketers have not had access
to before.
ResidentialMarketGrowth.com

Bridget Kidd
Director, Residential & Commercial Programs
bridget.kidd@propane.com
Jesse Marcus
Senior Programs Manager
jesse.marcus@propane.com

CHIEF MARKETING
OFFICER’S REPORT
Dennis Vegas

FOCUS GROUP RESEARCH
Gregg Walker

FOCUS GROUP METHODOLOGY
• Six 90-minute groups
• Northeast
• Midwest
• Southeast
• Recruited from propane ZIP codes
• Concepts tested: “Home” and “Blue”

“HOME” IS NOT AS STRONG A CONCEPT
The tank also tended to be a
negative visual.
Respondents say they have seen
similar imagery in ads for any
number of products.
Emotionally connective, though
often used in advertising.
The context comes near the end with an
image of a propane tank in the yard, which
is too late for the audience.

CONSUMERS: “BLUE” IS STRONGER CONCEPT
“Blue” :
• Immediately contextualizes and
conveys propane benefits
• Creates an emotional connection
with viewers
• Is more memorable

BLUE IS RELATABLE
Respondents love the dog Blue and are interested in him as a character.
Some would follow Blue as a mascot of propane,
making the effort to visit him online and watch his commercials.
“I would like to see future
commercials of Blue and how he
has progressed and evolved.”
North Carolina
“I would watch this over
and over.” Michigan
“The dog Blue keeps your
attention. I could watch it over
the long haul.” North Carolina
“’Blue’ is fun. You want
to see Blue’s reaction.
I’d watch him online.”
North Carolina
“This concept can be played
through the years as we
relate to the dog and his
journeys.” New York
“Blue is fun to watch and see
the relationship between the
dog and the owner.” Michigan

“BLUE” IS CLEAR AND TO THE POINT
Everyone immediately understands the concept is about propane.
“I liked this concept better because it gets it
point across right from the start.” New York
“I liked it because I knew right away what
was being promoted.” New York
“It’s clear and to the point. And you know
it’s about Propane.”
North Carolina
“I liked the beginning, where he’s actually
in the truck and with the propane guy. I
know as soon as I see this what the
commercial’s going to be about.”
New York

“BLUE” IS MEMORABLE BECAUSE IT IS UNIQUE
Few have seen advertising as depicted in “Blue.”
“They’re telling you
there’s a partnership,
that they want to be
your partner as well.
That is how I’m taking
it.” New York
“It’s nice to see the
connection, the
bond, between the
dog and a person.”
North Carolina
“The dog is that person’s
partner. Like she said, a lot
of people, their dogs are
part of their family. It goes
back to, the propane is safe
for your family.” New York
“I liked ‘Blue’ better. At least it had that communality throughout.
To me it didn't really feel like it was pushing anything on me. It
was just this character, Blue. This character’s adventure through
being the partner of a propane delivery man. And how he thought
about propane, and what his experiences were.” North Carolina
“Just for the simple fact that
the owner has the dog with
him at work means he’s taking
his family member with him.
That does show a sense of
family there.” North Carolina
“Blue embraces all
the things I enjoy
and choose about
the way I live.”
Michigan

CONCEPT DEVELOPMENT
AND STATUS
Trent Walters

CAMPAIGN PROGRESS
March Madness
• Selected concept
• Selected talent: Dog and Voice
• Selected director
• Developed industry emails
• Concepted microsite
• Propane.com site audit
• Social listening benchmark
• Developed Expo material

CAMPAIGN PROGRESS
April
• Southeast Expo debut
• Media negotiations
• Casting/location scouting
• Finalize marketer material needs
May
• Shoot Television
• Radio
• Print
• Microsite
• Marketer materials
• Buy media

SUPPORT THROUGH ALL DIGITAL CHANNELS

CREATING A DIGITAL ENGAGEMENT ECOSYSTEM

PROUDLY PROPANE MICROSITE
ProudlyPropane.com
• Main destination for traffic from the digital media
• View additional “Blue” video content
• Showcase modern usefulness of propane in
common appliances
• Visitors can share video and content
• Integrates with the Find a Propane Retailer tool
• Deep linking to relevant content at propane.com

PROPANE.COM WEBSITE AUDIT
Identified optimization opportunities on
Propane.com to prepare for the campaign
launch
• Reviewed website analytics data and applied best
web practices to create recommendations
• Identified short and long-term improvements focused
on user experience and SEO
• Recommended design improvements to page layouts
and website navigation
• Proposed social integrations and content optimization

POWER OF FACEBOOK
Facebook is the center of digital activity for many
• 158.4 million monthly active users in the U.S.
• 53% return to their news feeds multiple times each day
• Fastest growing audience is female aged 55-65
• Paid media is essential and drives engagement
• Facebook will be a primary media tool for this
campaign

FACEBOOK WILL BE THE PRIMARY SOCIAL CHANNEL
Facebook has the most potential for our Proudly Propane campaign
• The platform has high reach with our audience
• Rural audiences adopt Facebook at a rate similar
to that of suburban and urban users
• Leverage Facebook’s sophisticated
targeted advertising capabilities
• Drive deeper engagement and sharing
of our content with other high-potential
audiences

DIGITAL ADS ON FACEBOOK
Facebook offers multiple ad types to message
and engage viewers
Objective-based
Promote a page, drive traffic to website, redeem offers,
increase video views and more
Different types and formats
Photo, video, carousel ads, product ads, local awareness and
more
Multiple targeting capabilities
Custom audience; age; gender; location; language; interest;
device; “lookalikes”; partner categories; behaviors;
connections

2015 SOCIAL MEDIA LISTENING BENCHMARK
PERC’s social media audience is propane marketers, not residential consumers
• Optimize by testing additional content that is directed specifically to propane marketers
• Explore paid social media tactics to expand our reach
• Leverage this new content to increase engagement and mentions of PERC
• Opportunity to share updates about the consumer brand campaign and drive participation
on our marketer’s channels
• Use the new consumer-facing social channels to focus on our
key messages to residential customers
• Reuse the best content from PERC social channels and
share on the new residential consumer channels
Veterans partnerships, Better our Buses, other partnerships

EXTENDING THE CONVERSATION ON FACEBOOK
Social listening taught us that people talk about propane
as a key component to pursuing passions and hobbies.
• RVing, camping, and boating are areas of opportunity
for consumer campaign content
• Fluctuating propane prices and weather/disaster
preparedness are also important topics.
• We need to insert our key messages, connect with,
and get involved in the relevant propane
conversations.

MEASURING SOCIAL MEDIA SUCCESS
Improve favorability, engagement, and change perceptions
• 2016 launch and maintenance of new, residential, consumer focused social
channel to support the campaign
Build engagement, impressions and positive sentiment
Manage the community, address feedback and conversation
• Expand the reach and engagement of PERC marketer channels in Facebook,
Twitter and LinkedIn
Share content across the new consumer channel and
PERC’s channels
Increase mentions of PERC among our marketers
• Drive visits and engagement with the campaign site

NEXT STEPS
Develop our content and campaign plan for the new Proudly Propane
Facebook channel
• Finalize a paid social media plan to support the Proudly Propane TV
and digital campaigns
• Ensure social media consistency with the creative concept
• Align with content and messaging with the microsite
Establish posting and community management guidelines
Work with PERC team to coordinate content sharing between PERC
channels and Proudly Propane channel
Continue to develop the design and messaging for the Proudly Propane
microsite

COMMUNICATIONS STRATEGY
KEY TARGET AUDIENCES
SIMPLE LIFE
55-74 years old
HHI <$100k
Couples
Own Residence
51% own a dog
ENTRY LEVEL
35-54 years old
HHI $75-200k
Families w/ Kids
Own Residence
68% own a dog
TRANSITIONAL
<44 years old
HHI <$50k
Couples/Families
Rent Residence
48% own a dog
Honest, straightforward, reliable people who value their independence and self-
sufficiency and take pride in how they live
Adults 35-64 with limited access to natural gas

COMMUNICATIONS STRATEGY
Leverage extensive PERC commissioned and syndicated
research to pinpoint most effective media channels for
increasing campaign impact
Maximize budget with a mix of national and geo-targeted
tactics
Align with relevant content that encourages engagement
beyond the initial impression

RESEARCH – MEDIA REACH POTENTIAL
72%
92%
42%
88%
62%
63%
97%
Source: Summer 2015 Simmons Connect (Adults 35-64 with a household income less than $100k who own a home)
ADULTS 35-64

RESEARCH – MEDIA INSIGHTS
Source: Experian Simmons 2015 NCS/NHCS Adults Full Year (Adults 35-64, HHI less than $100k, own a home); Nielsen 2015 Demographic Segmentation
64%76%
SOCIAL
PENETRATION
(Propane)
46%
MULTI-TASKING
(A35-64)

MAXIMIZE BUDGET
Illustrate how propane
positively impacts
consumer’s independent
way of life
Cover marketer geography
Reduce political implications
Efficiency-buying overlay
Encourage brand research
and engagement
Local tie-ins
Digital extensions
Prioritized geography
NATIONAL
Air cover
GEO-TARGETED
Heavy-up

VIDEO – PROPANE COUNTRY
LIFESTYLENEWS
∙ 135+ index on all Propane targets
∙ 35% of delivery in C & D counties
∙ Highly relevant content alignment
∙ Early News reach potential – 55%
∙ High, efficient local ratings
∙ Strong movie attendance among target
∙ Cherry pick theaters in priority Propane markets
∙ 40%+ of Simple Life & Entry Level homes own a satellite dish
∙ Low out-of-pocket cost via DISH and DirecTV
Source: Nielsen 2015 Demographic Segmentation

VIDEO – NATIONAL
EFFICIENCY NETWORKS
Strategic TV buying approach allowing for most advantageous pricing
Ideal method for awareness campaigns to purchase inventory on desired TV networks
∙ 149 index (Football)
∙ National with heavy Midwest footprint
∙ 41%+ penetration among Simple
Life & Entry Level
∙ 70% penetration among Simple Life
∙ 61% more likely to be Republican
∙ 164 index (Simple Life)
∙ 21% more likely to listen to
faith-based music
∙ 119+ index (Simple Life & Entry Level) ∙ 54+% penetration among Simple Life
& Entry Level
∙ 158 index against outdoor recreation
magazines
∙ 146 index for reading fishing & hunting maga
zines
∙ 46% fish (Simple Life), 25% hunt (Entry Level)
∙ 170+ index for weather content

VIDEO – NATIONAL
LIFESTYLEHOME
∙ 72+% penetration (Simple Life & Entry Level)
∙ Relevant program alignment
Island Hunters, Beachfront Bargains, Fixer Upper
∙ Extremely low out-of-pocket cost
∙ 155 index for home remodeling (Simple Life)
∙ Local presence on a national level
∙ CMT – 76% penetration (Entry Level)
∙ GAC – 120 index (Simple Life)
∙ 102% more likely to listen to country music
∙ Simple Life & Entry Level over index on consuming content
(TV, radio, online)
∙ 213 index (Simple Life)
∙ Contextual fit with Blue
∙ Animal Planet – 80% penetration (Entry Level)
∙ Nat Geo Wild – 122 index (Entry Level)
∙ 131 index for Entry Level
∙ Relevant program alignment
Texas Flip and Move, Building Alaska, Kitchen Crashers,
Renovation Realities

NATIVEHIGH-PROFILE
DIGITAL
VIDEO
∙ 148 index for watching video on
mobile device (Entry Level)
∙ Pre-roll video with numerous
targeting capabilities
∙ 135 index for reading online
before purchasing (Entry Level)
∙ Matches form and function of
the hosting site
∙ Puts ads directly in the users‘
experience stream
∙ 21% more likely to see the
internet as main source of
entertainment (Entry Level)
∙ Large, interactive ads account
for significant real estate on the
page, generating strong
engagement and clickthroughs
SEARCH & SOCIAL
∙ 34% would learn about propane if
information was available
∙ Ensure audience is directed to campaign
microsite for further engagement
∙ Maintain presence through end of year to
capture paid social and residual campaign
traffic
∙ 24% more likely to support for favorite brand
via social
∙ Capitalize on immense data available for
targeting
∙ Paid social run in conjunction with TV helps
increase ad recall

DIGITAL – HIGH-PROFILE EXAMPLE

AUDIO
HOMEVARIETYCOUNTRY
∙ 72+% of U.S. markets
∙ Over half of stations fall in C and D
counties
∙ Station formats –
-Adult Contemporary (150 index Entry Level)
-Oldies (123 index Simple Life)
-Contemporary Hits Radio (61% penetration
Entry Level)
∙ 86% of station coverage falls in
C and D counties
∙ Program specific buy with Crook &
Chase Countdown
∙ 29%+ penetration of personal home
improvements
(Simple Life & Entry Level)
∙ Borrowed equity from known influencer brands
Source: Nielsen2015 Demographic Segmentation

PRINT
NATIONALPROPANE COUNTRY
∙ Real Simple – 190 index (Entry Level)
∙ Midwest Living – 214 index (Simple Life)
∙ TIME – 21% more likely to read news
weekly magazines (Entry Level)
∙ Simple Life is 53% more likely to be a
heavy newspaper reader
∙ This Old House – cross-platform contextual
alignment with TV and radio
∙ Guideposts – 204 index (Simple Life)
∙ 31% more likely to believe magazines are the
most trustworthy medium (Simple Life)
Source: Nielsen2015 Demographic Segmentation

PROJECTED MEDIA BUDGET BREAKDOWN
60%
22%
9%
9%
Video
Digital
Audio
Print

MARKETER ENGAGEMENT
Dennis D. Vegas

INDUSTRY ENGAGEMENT PLAN
• Leadership Team: R. Willis, D. Vegas, G. Walker, P. Wilson
• Strategy: Communicate campaign activities and tactics in a
timely manner to excite and encourage industry and marketer
participation
• Target: Key influencers (Councilors, NPGA
Board), marketers, State Associations

Campaign Ambassador Team (CAT)
• Interviewed Councilors and marketers, approx. 30 nationwide
• Gather marketer’s intention to participate, and the resources needed to
support the consumer campaign
Requirements
• Interact with Expo/Western attendees; drive traffic to PERC booth
• Report on feedback from industry members at Expo
• Conduct personal phone calls to 5 marketers in respective state(s)
to build awareness and gather intelligence
• Educate and build campaign awareness at
other industry/state events

Marketer Help Desk
• Pilot Phase I following SE Expo – May and June
• Personal service available to marketers for campaign education,
and a “how to” use of marketing tools
• Support marketer with media execution
• Utilize contractor/intern to start;
level of interest will determine
additional resources

Campaign Videos
• Create videos that highlight campaign activities within PERC, TRG
and states/marketers
• Highlight social media content & propane.com/propanecouncil.org
• Testimonials from Adv. Comm. members utilizing campaign materials
• Post videos every two weeks to connect with the
industry and drive adoption
• Initiated week of Feb. 29 & ongoing

Events
• Western Convention – May 11–14
• Advisory Committee Meeting – May 17–18
• MTST Sessions
• State Association Meetings
• NPGA Board meeting – May 22–23
• Council Meeting – July 12–13

Communications Completed
• Campaign video status updates – 2/29 to 3/31
• R. Willis email summary to Council – 3/3
• Industry members invited to focus groups – 3/1-4
• Media coverage/content for BPN/LP Gas – 3/7 for April pub
• Email to marketers and state execs – 3/10
• Email to NPGA event registrants – 3/31
• MOT webinar – 3/31

Communications Coming Soon
• Introduce Help Desk at Expo – 4/8-9
• Post Expo Email to marketers – 4/11
• PERC survey to attendees post-expo – 4/12
• Campaign update – 4/12
• Mail campaign kit to Councilors, CEOs/company owners/NPGA
Board marketers – Early May
• Mail campaign kit to active marketers and Expo booth visitors – 5/15
• Presentation/update to Adv. Comm. – 5/17-18

NPGA SOUTHEASTERN EXPO
Gregg Walker

Goal: Build awareness, educate, and garner industry support for
PERC products, promotions, and campaigns
Highlights:
• Propanecouncil.org
• MTST
• Safety and Training
• Residential Opportunity Insights
• Find a Propane Retailer
Exhibits:
• PERC booth (1209)
• Innovation Pavilion
• Autogas Pavilion

Five education sessions to be led by PERC
Campaign elements featured in the PERC booth
• Brand video
• Radio spot
• Collateral
• Game
• Campaign mug giveaway
• Concept images

• People visiting or entering booth
• Game interactions
• Surveys completed
• Presentation attendees and
collateral distributed
• Badges scanned
• Email open rates and click rates
• Campaign mugs distributed
• Social outreach impressions
Metrics

CHIEF INFORMATION
OFFICER’S REPORT
Kay Howell

2015 HIGHLIGHTS
• Industry Programs
• S&T Programs
• Information Technology
• Industry Engagement

INDUSTRY OUTREACH & ENGAGEMENT
• Marketer Technology &
Sales Training
• Face-to Face Meetings
• Digital & Social Media
• Propane Catalog
• State Association
Liaison/ Communications
Industry
Programs Team
Information
Technology
Team
Communications
Team
S&T and
Markets Team
Industry
Communications
& Support

MARKETER TECHNOLOGY & SALES TRAINING

MARKETER TECHNOLOGY & SALES TRAINING
PROGRAM (MTST)
• 97 classes taught in 2015;
49 classes held in 2014
• 56 sessions of new CSR module
attended by 765 attendees from
86 companies
• Trained over 1,300 attendees
from 228 companies
• 60 classes 2016 target

MTST PROGRAM – WHAT’S NEW IN 2016
• New training partner
• Training curriculum
• Classroom trainers
• Online content
• New digital course offerings
• Industry taskforce designed

FACE-TO-FACE MEETINGS
• Attended events at 30/38
state associations.
• Exhibited and presented
at 37 Shows / conferences
• 2,000 marketers reached

E-MAIL CAMPAIGNS
• 15% increase in average total open
rates
• Averaging 6,000 marketers
reached per Q1 2016 campaigns
• Top campaign reached 7,500+
marketers
WWW

E-MAIL CAMPAIGNS –
YOUR GALLON GROWING CHEAT SHEET
Email • 5,700 opens
Newsletter
Sign-up
• 500 subscribers
MTST
Registration
• 50
registrations

FOLLOW US ON FACEBOOK!
• 1,050 followers
• Postings generated over
1,200 website visits
• Lifetime Total Engagement:
9,067
• Top Post: Video of Stuart
Weidie posted January 6;
3.1K reach; 1.1K video
views

ONLINE CATALOG – THE MaRC WEBSITE
• 19% increase in
website visits from
2014 – 2015
• Over 60,000 website
visits in 2015
Propane Catalog Orders 2015 2014
Total Orders/Downloads 12,723 10,826
# of Products Ordered/Downloaded 36,517 32,065
# of People Who Placed an Order 4,368 3,886
# of Companies That Placed an Order 4,650 3,616

ONLINE CATALOG – THE MaRC WEBSITE
Product Name
# of Orders/
Downloads
Important Propane Safety Information for You and Your Family 1,040
CETP Book 1 - BPP 445
Consumer Safety Module – Using Space Heaters Safely 420
Dispensing Propane Safely CD/DVD Program 372
Operations & Maintenance Handbook for LP-Gas Bulk Storage Facilities –
Download
350
Propane Safety Booklet 348
Dispensing Propane Safely Program Downloadable Items 314

COORDINATION WITH STATES
• Presentations / exhibitors at state
meetings
• Email updates and information
sharing/ conference call with states
following every Council Meeting
• Materials for newsletters &
meetings
• Industry Responder Conferences
partnerships
• Pilot projects with states - blended
CETP training / simplify product
orders
• CETP coordination
• State partnerships to promote 2016
autogas technician training courses
• Annual Trainer’s Conference
support
• Coordinate and co-host annual
Leadership Summit - 29 attendees
representing 30/39 associations
(77%)
• Host & manage 24 state web sites
• Work with states on ~250 funding
requests + 250 final reports

Instructor-
led learning
Training
Center
Online
learning
Blended Learning
COORDINATION WITH STATES
Propanemarc.com/ncpga

SAFETY & TRAINING
UPDATE
Stuart Flatow

SAFETY & TRAINING PARTNERSHIPS

TOTAL POTENTIAL REACH: 109,282

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