A GLOBAL OVERVIEW Michael Treloar Elaflex Pacific Pty Ltd APFI Forum 6 th September 2018 6 th September 2018
INTRODUCING 2 Elaflex Pacific Pty Ltd / 6 th September 2018
AGENDA AutoGas Demand Current global position AutoGas by Continent What has influenced market change Government Incentives and Policies Global OEM Vehicle Fleet The future of the Global Market 3 Elaflex Pacific Pty Ltd / 6 th September 2018
ELAFLEX Group How do we fit into the AutoGas picture 4 Elaflex Pacific Pty Ltd / 6 th September 2018 Sweden England France Belgium German Head Office Regional Offices Italy Argentina Brazil Singapore China Australia Turkey
DEMAND Worldwide North America 848 000 208 108 5 900 Europe & Eurasia 14 935 000 19 203 704 54 738 Latin America 1 965 000 813 758 4 992 Africa 473 000 274 000 675 Asia Pacific 8 381 000 6 236 378 9 457 Global figures 26.7 million tonnes 26.8 million vehicles 76 092 stations Source: Argus Media 5 Elaflex Pacific Pty Ltd / 6 th September 2018
DEMAND Worldwide Growth 2011-2016 Global AutoGas Consumption Global AutoGas Vehicle Fleet 28000000 30000000 27000000 25000000 26000000 25000000 24000000 23000000 20000000 15000000 10000000 22000000 5000000 21000000 2011 2012 2013 2014 2015 2016 0 2011 2012 2013 2014 2015 2016 Source: Argus Media Global AutoGas Refuelling Sites 78000 76000 74000 72000 70000 68000 66000 64000 62000 60000 2011 2012 2013 2014 2015 2016 6 Elaflex Pacific Pty Ltd / 6 th September 2018
DEMAND Worldwide Trends 2011-2016 North America +77% Europe & Eurasia +32% Western Europe in decline Eastern & Southern Europe growing Latin America +38% Africa +8% Asia Pacific -10% Global Trend + 15% + 19% + 15% Source: Argus Media 7 Elaflex Pacific Pty Ltd / 6 th September 2018
REGIONAL OVERVIEW Europe & Eurasia TURKEY Ban on AutoGas vehicles lifted end of 1990 s Oil companies tackle perception of Autogas being a poor man s fuel Aygaz campaign focused on Clean, Safe, High performance benefits of LPG Lead to an improvement of the reputation of Autogas Currently over 3 million AutoGas taxi s in Istanbul Consumption of AutoGas overtook that of gasoline consumption in 2009 8 Elaflex Pacific Pty Ltd / 6 th September 2018
REGIONAL OVERVIEW Europe & Eurasia ITALY SPAIN POLAND Incentives Low rate of excise tax Grant schemes Eco-bonus to displace diesel for commercial vehicles Annual road tax rebate Free access to congestion-charging zones Incentives Low rate of excise tax Grants for conversion Public fleet mandate Vehicle labelling Discount on parking Incentives Low rate of excise tax No import duty 9 Elaflex Pacific Pty Ltd / 6 th September 2018
REGIONAL OVERVIEW North America USA & CANADA Focus on fleet vehicles Propane marketers sell or lease refuelling equipment to fleet customers USA Tax credits for companies $0.5/gal equipment up to $30,000. State based incentives for government vehicles and school bus fleets PERC (USA) Powerful industry body driving growth Small % of each gallon sold = Money to reinvest into the industry. 10 Elaflex Pacific Pty Ltd / 6 th September 2018
REGIONAL OVERVIEW North & Central America USA - Vehicle Sales 185,600 +14,200 199,800 +13,045 212,845 +15,251 228,096 +16,463 244,559 +18,335 262,894 2015 2016 2017 2018 2019 2020 Growth Driven by Source: PERC Strong aftermarket conversion industry Effective national education and promotion on benefits of LPG 11 Elaflex Pacific Pty Ltd / 6 th September 2018
REGIONAL OVERVIEW North & Central America USA - Vehicle Sales Medium Duty 37% OEM 32% 63% Light Duty 68% Aftermarket Source: PERC A growing market despite: Lack of federal incentives. Very low gasoline and diesel prices Electric Vehicle adoption. 12 Elaflex Pacific Pty Ltd / 6 th September 2018
REGIONAL OVERVIEW Asia Pacific SOUTH KOREA Favourable taxation policy Air quality restrictions for diesel taxis = 95% of all taxis in Korea run on Autogas Clean vehicle mandates Relaxing of ownership restrictions decomissioned taxis bought by general public. JAPAN Low excise duties Purchasing grants (Autogas categorised as «eco-car») New Toyota hybrid LPG taxi 13 Elaflex Pacific Pty Ltd / 6 th September 2018
REGIONAL OVERVIEW Africa ALGERIA Policy of promoting AutoGas: To use local production of LPG Reduce diesel imports and tackle urban air pollution Objective for LPG to reach 20% of road fuel sales by 2020: Lower taxes on AutoGas LPG conversation support program to convert 500,000 vehicles by 2020 Government support: Will cover 50% of conversion costs Want LPG available on 73% of all fuel stations by 2030. 14 Elaflex Pacific Pty Ltd / 6 th September 2018
Global OEM Vehicle Fleet EUROPE 69 OEM vehicles 22 Brands Left & Right Hand Drive ASIA 28 OEM vehicles 11 Brands Left & Right Hand Drive NORTH AMERICA 41 OEM vehicles 16 Brands Heavy duty Pickup or industrial vehicles Right Hand Drive 15 Elaflex Pacific Pty Ltd / 6 th September 2018
Policies, Incentives and Market Growth Lower fuel excise duty Other tax breaks FUEL TAXATION SUPPORTIVE POLICIES LPG defined and promoted as an alternative fuel Incentives (grants, access to urban centres, tax credits, free parking etc) REFUELLING NETWORK OEM AVAILABILITY Fuel quality Equipment and installation Up-to-date standards Factory-fitted or delayed OEM Certified conversion program 16 Elaflex Pacific Pty Ltd / 6 th September 2018
DEMAND The Future of the Global Market 30000000 Global AutoGas Vehicle Fleet 25000000 20000000 15000000 10000000 5000000 0 2011 2012 2013 2014 2015 2016 Source: Argus Media 17 Elaflex Pacific Pty Ltd / 6 th September 2018
18 Elaflex Pacific Pty Ltd / 6 th September 2018 THANK YOU
DEMAND Worldwide Comparitive Size of Global Markets 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% AutoGas Consuption AutoGas Vehicles AutoGas Stations North America Latin America Europe & Eurasia Africa Asia Pacific 19 Elaflex Pacific Pty Ltd / 6 th September 2018
REGIONAL OVERVIEW North & Central America CANADA Fleet and general public focus Availability of natural resource Converting market on price differential Price difference is similar to that in Aust. Widely used and accepted in cold climate. Small investment required to set up refuelling infrastructure. Source: 20 Elaflex Pacific Pty Ltd / 6 th September 2018