COMMERCIAL E-NEWSLETTER | FEBRUARY 2012 FEBRUAR ARY

Greetings,
You may have noticed in other editions of The energy drop, we have started to really focus and think about sustainability and what that means for our customers. As part of this, we are committed to finding ways for our customers to reduce their use of fossil fuels and associated carbon emissions. This might sound strange, an oil company wanting to sell less product, but this makes sense to us. We are an integrated oil company and as Kiwis we share the common concerns regarding energy security and the impact on the environment of the products we sell. As a first step, this month we entered into an Alliance agreement with Auckland-based transport technology company EROAD. EROAD currently provide technology services to over 600 Kiwi trucking fleets across a range of industries. EROADs service offer is based on an integrated hardware and software system that uses GPS and wireless technology. The system captures and processes vehicle time, speed, distance and location data, as well as other in-vehicle information. This enables a more accurate, efficient and convenient approach to road access pricing and management of other major on-road costs, including fuel consumption, fleet maintenance and road safety. EROADs system is accurate, reliable and secure, and in New Zealand it was the first to be certified by the New Zealand Transport Agency to enable electronic calculation and collection of Road User Charges for diesel vehicles. Were really pleased to be partnering with an innovative, Kiwi company. EROAD has developed some incredibly smart technology and over the coming months we will be working closely together to develop better ways of doing business that can directly benefit our customers. I look forward to sharing some of the results of our work with EROAD in future. Lindis

Z Card is here
We have started the re-issue of all our old Shell Cards as Z Cards. The re-issue is going well so far, with 25,000 cards already dispatched since we started on 1 February.
We anticipate this process will take us a few months to complete so keep an eye out for your new card which will be coming your way soon. Remember that once you receive your Z Card you will need to cut up your old Shell Card and dispose of it, then start using your new Z Card right away. If you have any questions about your new Z Card then call us on 0800 474 355 or visit us at z.co.nz

z.co.nz

COMMERCIAL E-NEWSLETTER | FEBRUARY 2012

Supermarket discount vouchers and Z Cards

We often get asked why would I have a fuel card when I can just use my supermarket discount voucher? We think its worth really looking into the difference between your Z fuel card and discount vouchers so we can answer this question for you.
Firstly, the biggest difference between the two offers is that Z Card is a business offer and supermarket discount vouchers are a consumer offer. This means that one is targeted at making it easier to do business by managing your fuel spend and one is targeted at consumers who purchase groceries for their households. With Z Card, your business has one simple method of buying fuel right around New Zealand. Z Card means no paper receipt mountains, no expense claims, no wasted time on administration, and an accurate picture of your fuel costs. All of the cards are consolidated into one invoice, so you dont have to manage separate payments for each staff member. One of the biggest benefits is you dont have to pay until you get the invoice, so your cash flow is freed up for other purposes. The supermarket discount vouchers are offered at Countdown, SuperValue and Fresh Choice supermarkets and require a minimum spend of $40. The voucher that is then issued at the supermarket entitles the bearer to a cent per litre discount on petrol, diesel or automotive LPG at participating Shell and Z service stations. The current fuel discount is 4 cents per litre, however special higher discounts are sometimes offered in line with promotional activity. Sometimes larger discounts are offered, but this is at the discretion of the supermarkets. We dont accept vouchers from all supermarkets as we share the cost of the discount with Progressive. Our profit margin after tax is only about two to three cents per litre, so to bear the full cost of a four cent fuel voucher (or higher) would erode our profits to a point where we wouldnt be commercially sustainable. A number of people ask us why we dont partner with New World (Foodstuffs) given our mutual relationship with Fly Buys. We have a longstanding relationship with Progressive Enterprises, the parent company of the supermarkets that offer the discount vouchers, that has existed since before we took over the business from Shell. These sorts of partnerships tend to be exclusive Z is currently in a contract with Progressive Enterprises, and BP has an existing relationship with New World. The other question we get is why we give discounts to the general public through supermarket discount vouchers but sometimes dont offer the same discounts to our valued Z Card customers? The answer to this is twofold. One, as we said above, the Z Card is a fuel management tool that offers other benefits to your business other than a discount. We believe we are offering value to our customers businesses. Secondly, we work in partnership with Progressive Enterprises to fund the discount that is offered for the supermarket fuel discount vouchers, whereas with fuel cards, Z funds the entire discount ourselves. So in short, Z Card is a fuel management tool designed to make it easier for you to do business and supermarket discount vouchers are designed to help bring business to the supermarkets and to our forecourts. While supermarket discount vouchers and your Z card currently cant be used in conjunction with each other, both offers are still valuable individually. While you have a business relationship with us with your fuel card, you can use your supermarket discount vouchers for your personal vehicles.

Are you our friend?

Since the launch of the Z brand in May 2011, we have been very active on social media. Currently, we have over 18,000 likes on Facebook and 700 followers on Twitter. We are committed to being transparent and to listening to what our customers have to say. So if you havent already, like us on Facebook and follow us on Twitter and you will be able to keep up-to-date with all that is happening with Z.

z.co.nz

COMMERCIAL E-NEWSLETTER | FEBRUARY 2012

Z to pilot new diesel product

As part of becoming a world class Kiwi company Z is committed to delivering the service and products that meet the needs of our customers.
Over the past year or so we have been working through the opportunity of partnering up with two other well-known companies, Fonterra and Orica, to pilot a Kiwi made product called Z DEF (also known as Go Clear or Ad Blue). Z DEF is a diesel exhaust fluid which is designed to reduce vehicle emissions, in conjunction with Selective Catalytic Reduction (SCR) technology. Many major engine manufacturers have chosen this SCR technology as a way forward for the future and so have we. We think its pretty cool. It not only reduces vehicle emissions helping make New Zealand a cleaner place for us all, it also helps meet our customers fuel needs and its made right here. So, from 15 February were piloting Z DEF with the intention of further trials in the future to help meet the demands of SCR vehicles in New Zealand. For more information on Z DEF visit us at z.co.nz

Network update
We know that it is important to you that our sites are efficient and reliable. To try and achieve this, we often have to upgrade and maintain some of our service stations and truck stops. Heres what weve been working on lately:
Z Templeton New truck stop kiosk was installed on 22 February. Port Hills Truckstop New dispensers have been fitted which has greatly improved the fuel flow rate. Methven Truck stop The Premium 95 tank has been converted to a diesel tank for greater storage capacity. If you have any further questions about this work, then feel free to email us at theenergydrop@z.co.nz

COMMERCIAL E-NEWSLETTER | FEBRUARY 2012

Whats wrong with cell phones and electrical devices on the forecourt?
The use of cell phones and other electrical devices, like iPods and iPads, is strictly banned on the forecourt at all Shell and Z service stations and truck stops. The reason we do this is because we are committed to Zero Harm to our staff and to the public. We are concerned about the use of cell phones as they are a big distraction. Our forecourts are pretty busy places, with traffic moving around in various directions and lots of potential hazards to contend with. As with driving, talking on your cell phone is proven to reduce your ability to concentrate on the task at hand. There is also a risk of static discharge, or a damaged phone battery causing a spark or acting as a source of ignition for the fuel vapours that pass through our service stations. These are especially prominent while filling your fuel tank (if youre in the right place you can see them coming out as shimmering vapour). A fire on a forecourt would endanger you, all the other people sitting in cars, our site staff and anyone in the vicinity of our forecourt, with the likely outcome being multiple fatalities and, severe injuries. While the chances of a fire happening may not be huge, the consequences could be disastrous, which is why we are so stringent in prohibiting the use of cell phones and other portable electronic devices on our sites. Even our tanker drivers are not allowed to carry personal cell phones while on the job, and company provided cell phones are not allowed out of the cab of the truck. So when you are at our Z service stations or truck stops please make sure you leave your cell phone or other electrical device in your vehicle while you fill up, and dont use it again until it is safe to do so. The consequences are just not worth the risk.

People profile

Letter to the editor

Hello I have recently filled my car at two different Z Energy sites and have been pleased to see an operator on the forecourt which I believe is a great thing as it brings a more personal touch to the business. The only unfortunate issue with this, is that on both occasions the attendant has not been busy and sadly not on one occasion did I see them offer to clean anyones windscreens. I do not know if this is part of their position description but I was surprised that they seemed more intent on talking or wandering around the forecourt doing nothing. I would be disappointed as a manager if I had put this practice into place and was paying people to perform a service which I was not receiving from them. Please do not take this as a complaint but as an observation from a satisfied customer. Thank you for your note. We have followed up with the Site Leaders from both sites. During the hours of 10am to 5pm we have a Forecourt Concierge service at all our Z service stations. If you need help and theres no one there, well offer you a free coffee or five Fly Buys Bonus Points.

Meet Dave Barker

Position
Commercial Area Manager, Christchurch North

Z career
Started in current position with Greenstone Energy, and now with Z, loving the companys direction.

Favourite part of job

Getting out to customers and understanding exactly what matters to them, and coming up with solutions which in their words keep the wheels turning.

Vision for future of Z Energy/patch

Working in a company that is looking to invest in New Zealand gives a great opportunity to find new and sustainable solutions to energy supply. A fitter faster New Zealand company with smart technology is an exciting opportunity for our customers.

Hobbies/interests outside work

I love skiing, regularly enjoy a run, and am president of a rugby club. Despite loving sport I have been successfully domesticated and can frequently be found doing DIY projects, cooking and of course enjoying time with family. Gilly and I have a daughter (14) who sings and dances and a son (25) who reminds us the teenage years do eventually end!

z.co.nz