TTNGL Additional Public Offering 2017 - Investor Slideshow

1. 6/14/2017 1

2. AGENDA
1. Welcome & Introduction-Gerry Brooks
2. PPGPL Overview and Update-Dominic Rampersad
3. TTNGL Financial Performance-Narinejit Pariag
4. Questions & Answers
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3. GENERAL
1. The Trinidad and Tobago Securities and Exchange
Commission has not in any way evaluated the merits of
the securities offered hereunder and any representation
to the contrary is an offence.”
2. Receipt has been issued by Securities & Exchange
Commission.
3. Prospectus can be obtained from any authorised brokers
and distributors in Trinidad & Tobago as well as from
ttngl website – www.ngl.co.tt
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4. TTNGL –Overview
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5. TTNGL at a glance
Incorporated on September 13, 2013 as a holding company for its 39% effective ownership in
Phoenix Park Gas Processors Limited’ s (PPGPL) Class B shares.
Income is derived from US$ monthly dividend from PPGPL.
TTNGL’s dividend policy is to distribute cash in excess of operating requirements.
The annual dividend payout percentage shall be equal to a maximum of 99.0% of Profit Available for
Distribution.
Dividend payments twice per year.
Potential for NGL to make dividend payments to shareholders in US dollars.
Total dividends paid since listing on the TTSE in 2015 of $3 per share ($464.4 Million).
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6. TTNGL – from IPO to APO
Listed on the Trinidad and Tobago Stock Exchange (TTSE) on 19 October 2015 at a price of $20 per
share.
Largest Initial Public Offering in T&T’s history- oversubscribed by 1.77 times and raised over $1.5 Billion.
TTNGL accounted for 2.9% of the All T&T Index and 2.4% of the Composite Index at 12 May 2017.
Return of TTNGL shares from listing to 12 May 2017 of 25.4%.
Total dividends paid since listing on the TTSE in 2015 of $3 per share. Equivalent to 15% of the IPO
price.
Dividend yield at 31 March 2017 was 6.98%.
Cash and cash equivalents at 31 March 2017 totaled $403.6 million (equivalent to $2.61 per share).
Currently over 11,000 shareholders
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7. Overview of the TTNGL APO
• The Honourable Minister of Finance announced in his budget speech of 17th October 2016 that it
was the intention of the Government of the Republic of Trinidad and Tobago (“GOTT”) to make an
offer for sale of its shareholding in TTNGL, through its nominee The National Gas Company of
Trinidad and Tobago Limited (“NGC”).
• Subsequently, a decision was made to offer all of the remaining Class B shares (40,248,000) to the
public with NGC continuing to hold all (38,700,000) Class A shares in TTNGL.
Purpose of the Offer:
• Promoting efficiency by exposing businesses and services to the greatest possible
competition, to the benefit of the customer;
• Spreading share ownership as widely as possible among the population thereby giving
citizens a direct stake in industrial success; and
• Obtaining the best value for each enterprise sold by GOTT.
• Deepening local and regional capital market.
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8. Corporate information pre and post APO
Pre APO Post APO
Shareholder Class A Class B % interest Class A Class B % interest
NGC 38,700,000 40,248,000 51% 38,700,000 nil 25%
Public nil 75,852,000 49% nil 116,100,000 75%
Total shares 38,700,000 116,100,000 100% 38,700,000 116,100,000 100%
Ownership structure pre and post APO:
The APO will comprise 40,248,000 Class B shares. Post APO:
• The public will hold all 116,100,000 Class B Shares representing 75% of TTNGL’s outstanding shares.
• NGC will hold all of TTNGL’s 38,700,000 Class A Shares, equivalent to 25.0% of the outstanding shares of
TTNGL.
• NGC , through its holding of Class A shares will have the right to appoint 3 of five 5 Directors to the TTNGL
Board.
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9. Effective ownership structure (post APO)
• The public will hold an indirect ownership in PPGPL of 29.25% (up from 19.11%).
• NGC will hold an effective ownership in PPGPL of 52.9% (down from 62.9%).
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10. Overview of Phoenix Park (PPGPL)
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11. PPGPL’s Business Profile• Core business consists of:
 Natural gas processing,
 Natural gas liquids (NGLs) aggregation, Fractionation and Product marketing.
• Operates T&T’s only NGL fractionation plant.
• Is the largest producer and marketer of propane, mixed butane, isobutane and natural
gasoline in T&T.
• Has over twenty-six (26) years of operating history in Trinidad and Tobago’s energy sector.
• Generates revenue in US dollars. Exports were approximately 90% of total sales in 2016.
• Revenue based on the spread between sold NGL BTUs plus the pre-agreed market price.
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12. PPGPL – Revenue SourcesProcessing and fractionating gas supplied by NGC :
• Extract and fractionate NGLs into the component products (LPGs - butane, propane and natural gasoline).
• Market resultant NGL products.
• Residue gas is returned to NGC.
• Pays NGC for the BTUs extracted (NGL’s) based on a market based price per mmbtu:
 50% indexed to MBV,
 50% tied to PPI.
Sale of ALNG volumes:
• Fractionating NGLs supplied by Atlantic LNG (ALNG 1/2/3) and marketing these products.
• Differential = Price received from sale of products - Price paid to ALNG for NGLs.
• Supply or pay agreement - receive differential regardless of volumes delivered up to the contractual maximum
delivery rates.
Third-party processing / capacity fees:
• Fractionating NGLs stream from ALNG 4 into products.
• Delivering the finished product back to ALNG 4.
• Supply or pay agreement - receive differential regardless of volumes delivered up to the maximum delivery rate.
• Fixed contract with Petrotrin to fractionate mixed butane to produce isobutane– supply or pay (3,500 bpd).
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13. Process Flow of PPGPL’s Operations
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14. Pricing of PPGPL’s products
MBV price Differential Sales Price
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• PPGPL is a price taker and exposed to Mont Belvieu (MBV) price
volatility which is dependent on US market demand and supply
fundamentals.
• Impact of MBV pricing is mitigated by the use of the MBV price in the
feedstock costs formula.
• As such, a decline in the MBV price results in an offsetting decline in
feedstock costs.

15. Pricing of PPGPL’s products
MBV price Differential Sales Price
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• Price differentials may be eroded due to:
• Increased competition.
• Impacts to the reliability of supply from Phoenix Park.
• The presence of contaminants which given Increasing environmental
standards may cause make it difficult for PPGPL to find a viable market.
In addition, as the gas wells age, new contaminants, such as mercury,
may emerge.

16. Product % of Revenue Market
Propane 30% Caribbean & Central America
Butane 20% Caribbean & Central America
Natural gas 50% South America (primarily Colombia)
Customers:
• Revenue generated primarily from 10 to 15 customers comprising LPG trading companies, oil trading
companies and integrated oil companies.
• The sale of natural gasoline to Glencore represented approx. 39% of revenue for 2016. The Glencore
contract will be up for renewal in 2020.
Customer contracts:
• PPGPL establishes 1-3 year term and spot contracts with its customers.
• Contracts contain performance requirements including minimum volume requirements.
PPGPL
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17. Extensive knowledge and expertise on the Natural Gas Industry.
Profitable and distributed dividends in each of the past 26 years.
Strong financial & operational performance - low break-even prices.
Experienced sponsors and supportive host country.
Indexed supply contract pricing with NGC- margin preservation.
Fixed-capacity payments from Atlantic LNG and Petrotrin.
Exceptional safety record - only 3 lost workday cases in 26 years.
PPGPL - Strengths and Highlights
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18. Grow earnings by 12% per annum.
Driving a culture of Safety Leadership.
Create value through Growth Strategy & Group Alignment.
Continued focus on cost management.
Diversify revenue base: Condensate project, Physical Product Trading.
Building capacity of each employee.
PPGPL – Strategic focus for 2017
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19. TTNGL shares represent an indirect interest in PPGPL.
Inability to influence strategic decisions due to minority representation on the Board of TTNGL.
The market price for shares may be volatile and subject to wide fluctuation.
TTNGL’s cash flow is dependent on the ability of Phoenix Park to pay dividends.
Fluctuation in the MBV product prices.
Reduction in gas volumes available for processing due to depletion of gas reserves.
Reduction in liquid content of inlet gas.
Interruption to operations.
Increased levels of contaminants leading to compression in the price differential.
Increased competition leading to compression in the price differential.
Fluctuations in global demand for natural gas exports.
Sole reliance on NGC for supply of natural gas.
Customer concentration.
Key Risks
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20. NGL Industry outlook
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21. Projection of MBV Prices
• Main driver for the decrease in NGL prices over the past 3 years is the
oversupply of crude oil by OPEC producing countries.
• Downward price trend reversed in Q4 2016 with the OPEC agreement to
cut production.
• The forecast for 2017-2021 is for a gradual upward trend in NGL prices.
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22. Gas Supply
• NGC working with GORTT to increase gas supply ( 35-50 tcf of
reserves).
• Trinidad Onshore Compression Project on schedule.
• Juniper project – on schedule from Q3 2017
• Dragon project – Government to Government agreement
executed. Project being developed.
• Bp Angelin- Project approved- stabilize gas supply.
• Loran Manatee- Being progressed – 2019-2023
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23. TTNGL –Financial Performance
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24. TT$000
Audited
2014
Audited
2015
Audited
2016
Total Income 345,288 136,279 164,174
Profit after taxation (753,119) 370,832 179,568
Normalized Profit after tax* 344,761 135,637 161,737
Earnings per share (EPS) (4.87) 2.40 1.16
Normalized EPS* 2.23 0.88 1.04
Current assets 192,384 440,872 379,235
Total assets 2,923,288 3,268,650 3,364,397
Shareholder equity 2,922,726 3,248,087 3,360,654
Key Financial Metrics - TTNGL
* Excludes impairment.
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25. 2016 vs 2015: TT$ 191.3M decrease due to:
• Impairment reversal of TT$ 17.8M compared to a reversal
of TT$ 235.2M for 2015.
• Increased income.
2015 vs 2014 - TT$ 1.1Bn increase due to:
• Impairment reversal of TT$235.2M compared to an
impairment loss of TT$1.1Bn.
• Decreased income.
-1,000,000
-500,000
0
500,000
2014 2015 2016
Profit after taxation for the year
2016 vs 2015 - TT$ 27.7M increase due to:
• Rationalizing expenses in the face of:
 Lower NGL production.
 Lower NGL product prices( 2%).
2015 vs 2014 - TT$ 209M decrease due to:
• Lower NGL product prices ( 50%).
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2014 2015 2016
Total Income
TTNGL- Financial Performance 2014-2016
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26. TTNGL Financial Performance Q1 2017
TT$000
Unaudited
March 2017
Unaudited
March 2016
Total Income 57,413 31,087
Profit after taxation 56,926 30,209
Earnings per share (EPS) 0.37 0.20
Current assets 416,738 482,358
Total assets 3,419,841 3,354,884
Shareholder equity 3,262,991 3,197,957
Q1 2017 vs Q1 2016 - TT$ 26.7M
(88.4%) increase in profit due to:
Higher NGL product
prices( 42%).
Sustained cost
management by PPGPL.
Lower NGL production.
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27. Thank You
A statement related to the proposed distribution has been filed with the Commission but has not been made effective. No offer to buy
the securities can be accepted and no part of the purchase price can be recovered until the distribution statement has become
effective. Any such expression of interest shall not be binding on either party.
Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the
full amount invested. Past performance is not a reliable indicator of future results.
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