Driven — Volume One

DRIVENSIGNATURE IMAGEREVEAL:A NEW LOOK FOR A NEWMARKETPLACEMOMENTUM 2017:DRIVEN BY EXCELLENCECUSTOMER CONFERENCEMOBILE PAYMENT:NEW TECHNOLOGY FOR ANEW GENERATION OFCONSUMERSVOLUME01SUMMER/FALL 2017



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DRIVENPHILLIPS 66 DRIVENSUMMER/FALL 2017ABOUT DRIVENDRIVEN is a new print magazine from Phillips 66 U.S. Marketing, which reachescurrent and prospective Phillips 66 motor fuels customers across the country. TheSummer/Fall 2017 issue is a special edition that echoes many of the initiativeslaunched at the Momentum Conference such as the Signature Image program andthe new mobile payment solution. Regularly occurring columns include program,advertising and leadership spotlights.DRIVEN EDITORIAL AND PRODUCTION CREDITSFredrica Cudjoe, Mariel Borrel, Nellie Betzen, Alexis Garcia | Phillips 66 | Houston, TexasJason Gramke, Bethany Luther, Amy McVey, Courtney Shelton, Ben Callahan,Rachel Mozena | VML | Kansas City, MissouriDena Davidson | InfoVine | Houston, TexasWe welcome your questions, comments and suggestions. The Phillips 66 corporateheadquarters mailing address is below.Phillips 66Attn: Driven Magazine (HQ S974-02)P.O. Box 421959Houston, TX 77242-1959Not yet a Phillips 66 customer? If you’re interested in branding with us as a Phillips66®, Conoco®or 76®site, contact us at brand.phillips66gas.com or 844-312-8577.Phillips 66®,Conoco®, 76®, Drive Savvy®,Wings logo and their respective logos are registered trademarks owned by Phillips 66Company. All other marks may be trademarks owned by their respective owners. © 2017 Phillips 66 Company. All rights reserved.

DRIVENA NOTE FROM PAM MCGINNISPRESIDENT OF GLOBAL MARKETING PHILLIPS 66Welcome to DRIVEN, a new publication from Phillips 66 U.S. Marketing.Momentum. It’s been on my mind since May. I left the 2017 under construction and expect to convert more than 1,700 inPhillips 66 Marketing Conference feeling inspired about the the next year.relationships with our customers and excited about the futureahead. We are confident that the Phillips 66 Rivet, 76 Crest and Conoco Fusion images will attract consumers to our networkOur mobile payment solution has created significant industry of branded sites. Providing a clean, safe, fast and friendlybuzz since we announced the details. Compared to other buying experience will keep them coming back. It’s a fact:solutions, ours has lower installation costs and is easier to operations matter to today’s consumer.implement, and it works at the pump and inside the store.We are still on track for a fourth quarter rollout. We know our customers have the tools, knowledge, determination and commitment to win in today’s marketplace.The unveiling of the new Signature Image program was met Phillips 66 is committed to the success of our customers. We’vewith great excitement. With the support of our customers, we been there in the past, we’re here today, and we’re the suppliernow have 41 Signature Image sites in market with 254 more of choice to be there in the future.

CONTENTSSUMMER/FALL 2017 6 MOMENTUM CONFERENCE TECHNOLOGY DRIVEN BY EXCELLENCE In May, more than 1,300 customers, vendors, employees and sponsors met in Las Vegas to learn about new Phillips 66 initiatives, including a new Signature Image program and a new mobile payment solution. 18 MOBILE PAYMENT SOLUTIONS Millennial consumer demand and new breakthroughs in payment technology spell success for customers offering new mobile commerce solutions from Phillips 66.ADVERTISING LEADERSHIP 36 ONLINE 39 Q&A WITH JUSTIN REPUTATION CONSTANTINE Learn five steps to create and manage your own Retired Marine Corps Officer Justin Constantine talks online reputation. about leadership, teamwork and overcoming adversity.PROGRAMS INDUSTRY 16 DELIVERING WHAT 21 TOP INDUSTRY CONSUMERS WANT ISSUES Learn how to deliver an exceptional experience from the Explore the current regulatory environment and learn fuel pump to the cashier counter. what it means for you.

24 SIGNATURE IMAGE REVEAL A NEW LOOK FOR A NEW MARKETPLACE With the goal of reimaging 5,000 sites in three years, a new look for each fuel brand is sure to attract today’s consumer.

HIGHLIGHTS FROM THE 2017 PHILLIPS 66 MARKETING CONFERENCE MOMENTUM: DRIVEN BY EXCELLENCE In May, more than 1,300 Phillips 66 customers, vendors, employees and sponsors attended Momentum: Driven by Excellence, the 2017 Phillips 66 Marketing Conference in Las Vegas. Over the course of three days, attendees heard from inspirational thought leaders, met with vendors, attended small-group learning sessions, networked with peers and learned about new Phillips 66 initiatives. On the main stage, Phillips 66 marketing executives announced several new programs including new image options and a strategic shift in advertising to better serve the digital generation. On the Drive Expo floor, attendees test-drove new mobile payment solutions that allow consumers to pay from their mobile phones and in-vehicle infotainment units. Honda Developer Studio led more than 100 demonstrations of the new in-vehicle payment experience in the first hour of the Drive Expo. “WE’RE FOCUSING AND BUIDLING ON THINGS THAT CAN HELP OUR CUSTOMERS MOVE THEIR BUSINESS FORWARD.” — MIKE O’CONNOR, MANAGER OF BRAND IMAGE, PHILLIPS 66 “This isn’t a change in direction,” said Mike O’Connor, manager of brand image at Phillips 66. “We’re focusing and building on the things that can help our customers move their businesses forward.” Breakout sessions led by industry experts focused on helping customers drive traffic and reducing operating costs. “Insider Secrets to Setting the Gold Standard” was an all-around favorite. In this two-hour course from the Ritz-Carlton Leadership Center, attendees learned how to improve employee engagement to positively impact business. Another favorite was “Officers Eat Last: Pam McGinnis, president of global marketing, Phillips 66 Fostering Effective Leadership to Overcome6 DRIVEN

Digital media experts share their thoughts and insights on changing consumer behaviors. L-R: Walt Doyle, CEO at GasBuddy; Donald Frieden, president, CEO and chairmanat P97 Networks and Tracy Raiser, Head of Midwest Sales at Waze Adversity” by Justin Constantine, a retired Marine officer and war veteran who was injured during a routine combat patrol in Iraq. Learn more about this American hero in our Leadership Spotlight on (Page 39). Momentum also served as an opportunity to formally recognize customer excellence. Meet the award winners on (Page 10). “Customers invested three days out of their busy schedules to join us in Las Vegas,” O’Connor said. “When they returned home, we wanted them to feel it was time well spent and they have a better understanding of our strategy on facing the industry challenges.” It’s safe to say that conference attendees left Las Vegas feeling the Momentum! More than 1,300 people attended the 2017 conference. 7DRIVEN

NUMBERS A QUICK SNAPSHOT OF THIS YEAR’S MOMENTUM: DRIVEN BY EXCELLENCE CUSTOMER CONFERENCE WITH MORE ATTENDEES THAN EVER, THIS YEAR’S CONFERENCE WAS ONE FOR THE RECORD BOOKS.1 0 CUSTOMER AWARDS 3 NEW SIGNATURE IMAGES UNVEILED1,300+ 2 ATTENDEES FAMOUS SHARKS & ENTREPRENEURS7 BUSINESS 73 SESSIONS VENDORS AT THE DRIVE EXPO

44 834EDUCATIONAL SEMINARS MOMENTUM APP USERS 2 5 SPONSORS 2 2 SILHOUETTES DANCERS 1EPIC CONFERENCE

RECOGNITION MOMENTUM CONFERENCE CELEBRATES CUSTOMER ACHIEVEMENTS The 2017 Phillips 66 Marketing Conference provided an elevated stage to formally recognize the excellence Phillips 66 customers achieve every day. From industry-leading innovations that advance the retail fuel marketplace to making a positive impact in their communities, Phillips 66 customers go above and beyond. Here is a brief look at the outstanding award winners from this year’s Momentum Conference. LIFETIME ACHIEVEMENT L-R: Tim Roberts, Phillips 66; Shawn McCully, Phillips 66; Collin Groves, Phillips 66; Dallas Herron, CityServiceValcon and Pam McGinnis, Phillips 66 CITYSERVICEVALCON CityServiceValcon has been a Phillips 66 customer for more than 65 years. Highly respected in the industry, this Kalispell, Montana, customer markets both motor and aviation fuels and operates with the utmost integrity, focus and commitment to its customers, employees and community. Represented on numerous boards such as the Western Petroleum Marketing Association, Phillips 66 is proud of the long-standing relationship with CityServiceValcon and its high standard of excellence.10 D R I V E N

HONOR AWARD L-R: Rod Palmer, Phillips 66 and Kerry Oliver, World Fuel ServicesCARTER ENERGYAs one of the core Phillips 66 values, honor means standingbehind our word and doing the right thing. Carter Energy, adivision of World Fuel Services, demonstrates this level of honorby giving back to its community. Carter Energy and its team ofdedicated employees have helped The Dream Factory of GreaterKansas City achieve its mission of making dreams come truefor chronically or critically ill children. For more than 15 years,their unwavering support has touched the lives of hundreds ofchildren and their families.COMMITMENT AWARDIMACO INVESTMENTS INC. L-R: Randy Fralix, Phillips 66; Amarjit Mac, Imaco Investments and Bhupinder Mac, Imaco InvestmentsOver the past three years, Imaco Investments has grown fromone branded 76 site to 12 branded 76 sites in the Los Angelesarea. Bhupinder Mac’s brand commitment is evident by hiscontinuous efforts to elevate the consumer experience andinvest in his facilities. Much of this growth has been focused onacquiring underperforming assets and revamping them intostate-of-the-art locations, including several remodels, raze andrebuilds, and a new-to-industry truck stop. MOMENTUM AWARD L-R: Pam McGinnis, Phillips 66 and Terry McKee, Pak-A-SakPAK-A-SAKThe Momentum Award recognizes a commitment to innovation,strengthening the brand and exceeding consumer expectations.Pak-A-Sak, based in Amarillo, Texas, has readily adapted to thechanging marketplace with a dedication to superior customerservice and has been a committed member of the Phillips 66family for more than 20 years. Never satisfied with the statusquo, Pak-A-Sak has helped test mobile payment solutions andpilot new site images — all with flawless execution that trulysets it apart.DRIVEN 11

INNOVATION AWARD L-R: Jared Robinson, Phillips 66 and Dale Boyett, Boyett PetroleumBOYETT PETROLEUMFor more than 75 years, Boyett Petroleum out of Modesto,California, has taken risks to overcome business challengesand stand out in the competitive retail fuel industry. Boyett’sRetail Management System, designed to improve store sales,is industry-leading and modernizes its business strategies.Consistently innovating new ways to grow fuel volume, suchas consignment offerings, Boyett Petroleum is admiredthroughout the industry for its ability to act quickly withturnkey solutions for its customers.GROWTH AWARDSEI FUELS L-R: Lou Burke, Phillips 66 and Marc Clough, SEI FuelsSEI Fuels and the 7-Eleven brand have been an industry leaderfor years, and their list of “firsts” is impressive. Their proprietarylogistics system has revolutionized the way franchise ownersmanage their businesses, allowing them to spend more time inthe front of their stores. Since 2012, Phillips 66 has co-brandedmore than 125 sites with SEI Fuels. Consumers appreciate aquality fuel brand and a trusted store brand. The result? Morethan 500 percent in fuel volume growth since 2012.“WE RECOGNIZE ANDCELEBRATE THE EXCELLENCETHAT OUR CUSTOMERSACHIEVE EVERY DAY.” — LOU BURKE, MANAGER, BRANDED SALES, PHILLIPS 6612 D R I V E N

YEARS OF SERVICE HONOREESStrong partnerships are vital to a profitable, sustainable business. This year, Phillips 66 recognizes customerswho have a long-standing relationship of more than 50 years with Phillips 66. We thank you for your businessand commitment.50+ Terry & Young Oil Company Inc., 57 years Colvin Oil Company Inc., 57 yearsThompson Energy LLC, 50 years Whitehead Oil Company, 58 yearsEssie’s Wholesale Inc., 52 years Frank Griffin Oil Company Inc., 58 yearsHome Service Oil Company, 52 years New Distributing Company Inc., 58 yearsSt. Louis County, Missouri, 52 years Hayter Oil Company Inc. of Greenville, Tennessee, 59 yearsIllinois Ayers Oil Company, 53 years Hood Petroleum Company Inc., 59 yearsHooten Oil Company, Inc., 54 years Waguespack Oil Company Inc., 59 yearsDon Small & Son’s Oil Distribution Company, 54 years WestJet Air Center Inc., 59 yearsShepherd Oil Company LP, 56 yearsEnergy Petroleum Company, 56 years60+ 70+Red Rock Distributing Company, 60 years Tulsair Beechcraft Inc., 70 yearsTown & Country Petroleum Marketing Inc., 61 years Rex Oil Company Inc., 71 yearsGlass Oil Company Inc., 61 years Petrofuels Corporation, 72 yearsCrane Oil Company Inc., 63 years Arguindegui Oil Company II LTD, 75 yearsHome Oil Company LLC, 63 years Hays City Corporation DBA Tex-Con Oil Company,Collins Oil Company Inc., 64 years 78 yearsBaron-Huot Oil Company, 64 years Cutter Aviation Albuquerque Inc., 79 yearsCityServiceValcon LLC, 65 yearsKendrick Oil Company, 66 years80+Pumpelly Oil Acquisition LLC, 80 yearsLeiszler Oil Company Inc., 88 yearsJefferson City Oil Company Inc., 89 yearsDRIVEN 13

THANK YOUTO OUR CONFERENCE SPONSORSTHIS YEAR’S CONFERENCE WOULD NOT HAVE BEEN POSSIBLEWITHOUT THE SUPPORT OF THE FOLLOWING SPONSORS THATHELP OUR CUSTOMERS DO BUSINESS, BETTER. PLATINUM SPONSORCOCKTAIL RECEPTIONSPONSORHOTEL KEY CARD S I LV E RSPONSOR SPONSORS14 D R I V E N

POKER TOURNAMENT CAFESPONSOR SPONSORBRONZESPONSORS WATER STATION BIG RED ROOSTER FLOW SPONSOR COPPER 15 SPONSORSDRIVEN

PROGRAMSARE YOU GIVINGCONSUMERS THEEXPERIENCE THEY WANT?S TO R E - L E V E L T R A I N I N G P R O G R A M S T H A T P AY O F FIt takes strong assets and strong operations to win in today’s Train the Team is a one-day session that expands oncompetitive marketplace. Today’s consumer demands an operational excellence principles by demonstrating theexceptional buying experience from the fuel pump to the importance of a strong team. Attendees learn how to elevatecashier counter. employee performance through coaching and mentoring.Consumers can either be your biggest fans or your biggest Classes are taught by LJT Management, a NACS preferredcritics on social media, so it’s important to deliver the service vendor that has been in the oil consulting and trainingthey expect. Phillips 66 is helping its customers get back industry for more than 30 years.to the basics of operational excellence with free store-leveltraining classes. Both training programs are best in class, they’re free for current customers and the learnings are easy to implement.“We began our training offering in 2015, and we’ve had Phillips 66 funds the training, resulting in a $500 value formore than 4,000 customers and their employees participate each attendee. If you are interested in training opportunities,since then,” said Michelle Henry, associate analyst, visit Phillips66Training.com to see all upcoming classes oroperations and programs for Phillips 66. contact [email protected] the Store, a two-day training session, is designed to “We’re always looking for ways to improve our traininghelp stores better compete by visualizing the store through portfolio,” Henry said. “We’re currently piloting athe eyes of the consumer. Attendees leave the course with the computer-based training program with Ready Trainingframework to implement business improvement processes at Online with plans to evaluate the program’s effectivenessthe store level with ease. in the fourth quarter.”16 D R I V E N

Are you maximizing yourcredit card program andimproving your profits?Promoting the Drive Savvy® Rewards THE IMPACT OFCredit Card Program can fuel DRIVE SAVVYincreased business at your sites. CARDHOLDERS:Drive Savvy cardholders visit your branded site an average of 4.1 times per +21 MOREmonth*, and you can count on increased opportunities for sales at the pump GALLONS*AND inside your store. per month versus other customersPhillips 66®, Conoco® & 76® cardholders buy more gas at branded sites— 4 TRIPS*up to 21 gallons more per month* than non-cardholders, with an average per monthconsumer purchase of 51 gallons per month.* $0 TRANSACTIONPlus, with ZERO ($0) transaction fees for purchases made with Drive Savvy FEESRewards credit cards, your savings can multiply into the thousands ofdollars each year.Visit DriveSavvySupport.com or contact your Synchrony sales repto learn how to fully leverage the Drive Savvy Rewards Credit Card Program,slash fees and maximize your earning potential.*Argus Study, 2016 – P66 Gas Card Value of Credit AnalysisThe Drive Savvy® Rewards Credit Card is issued by Synchrony Bank. 76®, Conoco®, Phillips 66®, Drive Savvy®and related logos are trademarks owned by Phillips 66 Company. © 2017 Phillips 66 Company.

TECHNOLOGYP AY M E N T S O L U T I O N SFOR A NEW GENERATIONOF CONSUMERSTHE PHILLIPS 66® MOBILE COMMERCE SOLUTIONA R E L A T I V E LY L OW AV E R A G E G A S P R I C E A L L OW S M O R E C O N S U M E R STO CHOOSE QUALITY BRANDS OVER BIG BOX DISCOUNTERS. COMBINET H A T W I T H R A P I D LY C H A N G I N G C O N S U M E R E X P E C T A T I O N S A N D N E WB R E A K T H R O U G H S I N P AY M E N T T E C H N O LO G Y , A N D YO U H AV E A S W E E TSPOT FOR INTRODUCING A NEW MOBILE COMMERCE SOLUTION FROMPHILLIPS 66.We know the world of payments is changing — not The deadlines and requirements for transitioning to an EMVjust for the retail fuel industry, but for all retailers. compatible system has been a challenge for the retail fuel industry.In his remarks at the Momentum Conference, Lou Burke,manager of branded sales at Phillips 66, said, “Payment Millennials, a new generation of consumers, are alsosystems have changed more in the last five years than in pushing the envelope when it comes to new paymentthe previous 50. I’m sure they’ll be saying the same thing systems. This generation’s buying power is increasing, andfive years from now as well.” they have a unique influence over all other generations. They are connected digitally and socially, and demand a modern,What is the momentum behind this rapid pace of change? convenient and secure buying experience. Their fuel andCertainly, payment industry standards are a contributing c-store experience is no exception.factor.Testing of thePhillips 66 mobile commercesolution is underway at connectedsites in Texas and Oklahoma, with anationwide rollout planned for late 2017.

A consumer begins the mobile payment process through the Phillips 66 mobile wallet. The mobile commerce platform connects consumers to Phillips 66®, Conoco®and 76®sites through the branded According to Business Insider, the number of mobile payment mobile apps, which offer a dynamic station finder, the mobile users could reach 150 million by the end of 2020, representing payment wallet and contextual digital offers such as coupons. more than $503 billion in sales volume. Key features include integrations with Chase Pay, a mobile debit product and the loyalty program from KickBack® To capitalize on this fast-growing trend, Phillips 66 formally Rewards Systems. launched a new mobile commerce solution at the 2017 Momentum Conference. Attendees flocked to the Mobile Synchrony Financial, the issuer of the private-label Connect experience on the Drive Expo floor to see the Phillips 66 Drive Savvy®credit card program, is also technology firsthand. Unlike some other mobile commerce integrating with the mobile commerce platform to offer a systems, the Phillips 66 technology works both at the pump seamless payment experience for proprietary cardholders. and inside the c-store and will include EMV-capable software, Cardholders will be able to pay without having to swipe their depending on the vendor. card, and they will continue to enjoy the savings per gallon that the proprietary card offers them. The Phillips 66 technology is built on the PetroZone platform from P97 Networks. The new generation of millennial consumers has challenged the retail fuel industry but also pushed the market to find “A company with the innovative spirit of Phillips 66 helps new opportunities. move the entire retail fueling industry forward,” said Donald Frieden, founder and CEO of P97. “The convenience and security of the Phillips 66 mobile commerce solution delivers upon the branded gasoline “Our cloud-based solution works through our branded mobile value proposition, drives value for the changing consumer apps,” said Rod Palmer, general manager of marketing services demographic and keeps us competitive with best-in-class at Phillips 66. “We’re going to market quicker, and adoption retailers,” Palmer said. for our customers is easier because our solution works with existing c-store technology.” 19DRIVEN

Fleet Cards Fuel Your Bottom LineBuild Momentum with Fleet, Driven by WEXSell more fuel Grow in-store sales Lower transaction feesBusiness customers buy Nearly 40% of fleet drivers Phillips 66 Fleet Cards15x more fuel per month go inside the store, visiting cost up to 30-50% lessthan a typical consumer.* 20x per month.* per transaction than credit cards or other fleet cards.* Submit your referrals today Visit your referral website and fill out the simple form. WEX will do the rest. phillips66fleetleads.com conocofleetleads.com 76fleetleads.com*Statistics based on WEX-commissioned research study, 2014. ©2017 Phillips 66 Company. All rights reserved. The Phillips 66 Fleet Card Program is issued by WEX Bank. © 2017 WEX Inc

INDUSTRYTOP INDUSTRYISSUESTHE NEW REGULATORY ENVIRONMENTAcronyms like RFS, RINS, ULSD and UST get thrown around for those in our business.a lot in our industry. But what are the real issues associated According to Thanjan andwith those terms? What do they mean for you? Whitehead, the three most important issues right now areAt the 2017 Phillips 66 Marketing Conferenc, customers had renewable fuel standards (RFS),the opportunity to learn the answers to those questions from ultra low sulfur diesel (ULSD)two industry experts — Mark Whitehead, president at U-Stop and underground storage tanksConvenience Shops and president of the Petroleum Marketers (USTs).Association of America (PMAA), and Dale Thanjan, director offederal government affairs at Phillips 66. Dale Thanjan The main issue with RFS is that biofuel mandates have With the new Trump resulted in exceeding the ethanol blendwall. When RFS first administration still taking form, and competing priorities debuted as part of the Energy Independence and Security Act between Congress and the White House, the political in 2007, assumptions were made on the future of gasoline landscape is complicated and constantly changing. demand. Today, RFS volumes have not been adjusted to reflect actual gasoline consumption. Whitehead and the PMAA believe that regulations should focus on tying the blend wall to consumption because levels of ethanol over 10 percent can create other issues. “To pass legislation,Mark Whitehead Republican congressional There has also been recent debate about moving the point of leadership must satisfy both the obligation from the refinery level to the rack. Many believe the current system allows customers who buy above the rack to havemoderates and conservatives in their party, and also persuade decided advantages by profiting from the renewable identification numbers (RIN) market, while customers who buy below the rackmoderate Democrats in the Senate,” Thanjan said. “This is a don’t have that same opportunity.challenge in the current political environment.”On the regulatory front, the EPA’s path forward will be set by “Putting a cap on the mandated volumes of the blend wallits new administrator Scott Pruitt, with a philosophy founded would make the RIN value go down to zero and everyoneon the “rule of law” as Pruitt stated during a gathering at a would be on the same playing field,” Whitehead said. >>February Conservative Political Action Conference. As a result,historic regulatory issues facing the retail fuel industry couldpotentially be viewed differently or have different consequencesDRIVEN 21

“It’s definitely an issue to pay attention to.” “We need to be incredibly cautious and continue to maintain our systems,” Whitehead said. “We will have a strongHe suggests it’s best to let the consumer drive the market when responsibility to make sure our own tanks are properlyit comes to the product you sell at your store. managed and up to compliance. We need to be educated on the issues and aware of the options. This is critical not only“To have excessive requirements for ethanol blending is not to the quality of the fuel we sell to consumers, but for our ownwhat our consumers are demanding,” Whitehead said. underground storage tank systems.”Around the same time that RFS and RIN came about, the Whitehead and the PMAA are advocates for the industry andchange from low-sulfur diesel to ultra-low sulfur diesel many of its members are true subject matter experts on theoccurred. issues, like USTs. The group has even assembled a task force of tank owners that has been instrumental in getting moreThe combination of switch loading (hauling gas on the load effective and cost friendly regulations in place.prior to diesel) and split loading (carrying diesel and gas on thesame trailer) with vapor recovery systems creates a scenario And Phillips 66 has boots on the ground, like Thanjan, workingwhere diesel can get contaminated with gas and ethanol. This on a daily basis.can lower the flash point, which is a safety concern and cancontribute to bacterial growth in tanks, Whitehead stated. “Retailers play a critical role in the fuels distribution system; however, it’s hard for an individual retailer to advocate at theThe EPA found that 75 percent of the tanks tested had federal level,” Thanjan said. “Phillips 66 and associations likemoderate or severe damage and only 25 percent of the tank PMAA champion issues that are critical to our customers.”owners knew about it. Phillips 66 has a government affairs team in Washington, D.C., as well as other state-level offices in the Midwest, Gulf and West Coast. DRIVEN22

SEE WHAT WE’RE UPTO ON SOCIAL MEDIAPHILLIPS66GAS @PHILLIPS66GAS @PHILLIPS66GAS PHILLIPS66 CONOCO @CONOCO @CONOCO CONOCO 76GAS @76GAS @76GAS 76GASOLINEPhillips 66®,Conoco® and 76® and their respective logos are registered trademarks owned by Phillips 66 Company. © 2017 Phillips 66 Company. All rights reserved.

A NEW LOOK FOR A NEW MARKETPLACE WITH THE GOAL OF REIMAGING 5,000 SITES IN THREE YEARS, A NEW LOOK FOR EACH FUEL BRAND IS SURE TO ATTRACT TODAY’S CONSUMER.24

Image features customer funded upgrades. Base package does not include LED lighting.

Today’s retail fuel marketplace is more competitive than everbefore. There are new retail players, new business models, andmost importantly, new consumer expectations. Consumerstoday demand a clean, safe, fast and friendly fuel stationexperience. In this market environment, it’s more critical thanever for your site to deliver an exceptional experience for everyconsumer, every time.The Phillips 66®, Conoco®and 76®fuel brands each has aunique heritage. The Phillips 66 brand has roots in Bartlesville,Oklahoma. and was first introduced to consumers in 1927 ata service station in Wichita, Kansas. Conoco was also born inOklahoma, in Ponca City, just down the road from Bartlesville.And the 76 brand, long familiar on the West Coast, was startedby Union Oil Company in 1932.These three fuel brands are each loved by consumers in theirown ways because of the long histories they are attached to.Motivated by the changing marketplace and the need to deliveran elevated consumer experience, Phillips 66 is bringing backeach brand’s unique identity to the store level.A REFRESHED LOOK ONTHE STREETAt the 2017 Momentum Conference, Phillips 66 unveiled itsnew Signature Image program, which includes a refreshed lookon the street for Phillips 66, Conoco and 76 sites. PREMIER IMAGE: SHIELD The landmark Shield logo is complemented with a bright, three-dimensional treatment on the canopy, drawing consumers in from the darkness.

SIGNATURE IMAGE: RIVETThe Phillips 66 Rivet image features the Shield logo standing prominentlyabove the canopy. Named for its industrial, modern feel, Rivet is designedto stand out from the competition. Image features customer funded upgrades. Base package does not include LED lighting.

SIGNATURE IMAGE: CREST The new 76 Crest image brings back the heritage orange and blue with bright, stand-out graphics that draw attention from the street and add visual dimension to the canopy.Image features customer funded upgrades. Base package does not include LED lighting.

“It was time for us to refresh our look out in the marketplace.”said Randy Fralix, general manager of U.S. sales at Phillips 66.“We are excited to bring back the heritage elements that are sounique to our brands and that consumers recognize and love.”The Signature Image packages provide a modern, clean updatethat will make Phillips 66, Conoco and 76 sites stand out in themarketplace. Bringing heritage brand elements into the futurewith a consumer-centric focus, these images are part of Phillips66’s commitment to elevating the brands and helping customersdeliver exceptional fueling experiences.“I think it really stands out,” said Patrick Albro, vice presidentof dealer operations at Sunoco. “The image is just fresh. It’sgot this modern, bold type of impression, along with this retroindustrial-type look.”Features of the new images include bold, new canopytreatments, new pump valances and skirts, and a refresh ofpainted forecourt elements.Sites will also be required to install LED underdeck lighting aspart of the package.“LED lighting is becoming a must-have or an ante in ourindustry if you want to attract consumers after the sun goesdown,” Fralix said. “It’s part of showing consumers that youoffer a safe and clean fueling experience, not to mention itsaves on electrical costs.” PREMIER IMAGE: WAVE Boasting the beloved 76 orange ball, the Wave image is named for its unique LED waves that roll across the canopy. 31

The commitment to elevating the brands started in 2014 with the introduction of two Premier Image packages into the marketplace — Wave for 76®on the West Coast and Shield for Phillips 66®in the middle of the country. Wave and Shield feature differentiated elements like canopy and valance illumination and LED main ID updates, while the Signature Images offer a modern update at a lower price point. “We now have a portfolio of image offerings, which means we can give our customers options to choose an image that works best for them and their location,” Fralix said. Along with a new image comes a continued focus on operational excellence. Sites must meet minimum operational criteria to qualify for the new images. “Assets and operations matter,” said Lou Burke, manager of branded sales at Phillips 66. “Everything we are doing with our image program is to drive consumers into our branded locations and make the brands stronger in this competitive marketplace.” The new images have already been popping up in the marketplace, but a wide-scale rollout is planned to begin in 2018. Current customers are encouraged to sign up with their sales representative now if they are interested in converting to one of the new Signature Images. “We live in a highly competitive marketplace, and with the new images, it’s just going to keep us on the cutting edge,” said Mike Shepherd, president at Shepherd Oil Company. Customers can learn more about the new images at EXP66.com.30

SIGNATURE IMAGE: FUSIONThe new Conoco Fusion image features bold canopy graphics for amodern feel, while the triangle pump skirt logo pays tribute to thebrand’s strong heritage. BRAND IMAGE CENTRAL Phillips 66 has made enhancements to the imaging process with Brand Image Central (BIC). Customers now have more control over their project, clear expectations on roles and responsibilities and better visibility on project status. BIC provides its expertise for material ordering from preferred suppliers that meet Phillips 66 quality standards. It’s about making sure our customers are satisfied with the entire branding process.

A BRILLIANTINVESTMENTUPGRADE YOUR LIGHTS TO LED. SEE RESULTS.In our industry, a well-lit site can attract and retain customers, DID YOU KNOW?and keep them feeling safe and secure, especially at night. That’swhy light-emitting diode (LED) technology is a requirement Lighting costs alone can account for 20 to 50for the new Phillips 66, Conoco and 76 image offerings. LED percent of your site’s electric bill. Switching tolighting benefits include: LED could save you $120 to $150 annually per bulb (based on the national average rate of $0.11• Years of maintenance-free canopy, exterior and interior per kilowatt hour). Based on these energy and lighting because LED bulbs can last 100,000-plus hours. estimated cost savings, you could see a return on your investment in as little as two years.• Potential rebates from your utility company for switching Source: LSI to energy-efficient lighting. TAKE ADVANTAGE OF OUR INCENTIVES• Potential state/federal tax credits for energy-efficient commercial upgrades. Our LED lighting incentive program is available through Dec. 31, 2017, and includes LSI’s canopy, exterior and interiorCALCULATE YOUR SAVINGS LED lighting products ordered through BIC. Available incentives:Use our LED savings calculator to tell us about your currentcanopy, exterior and interior lights, and we’ll show you Canopy $2,500*how much you might save with an LED upgrade. Your Exterior (area, poles, building) $1,000*final report reveals incentives, special pricing and a detailed Interior $750*recommendation that puts your business — and budget — in Bonus incentive for upgrading all three $750*the spotlight.• Phillips66LEDSavings.com• ConocoLEDSavings.com• 76LEDSavings.com Get started by contacting BIC at BrandImageCentral.com or 855-366-6676. Remember, lighting upgrades are an approved Phillips 66 Co-op Fund program expense, meaning Phillips 66 will cover up to 75 percent of the cost (after applying the incentives). *Only sites that order LSI LED products through Brand Image Central (BIC) will qualify for program incentives. Site must have LED canopy lighting upgraded to receive incentive for exterior or interior lighting upgrades. Offer valid through Dec. 31, 2017. A site is only eligible to receive the bonus if the canopy, exterior and interior lighting upgrades are completed at the same time.32 D R I V E N

LIGHTING +GR APHICS +TECHNO Performance • Reliability • Value • SustainabilityLOGY = IMAGE SINCE 1976 www.phillips66ledsavings.com www.conocoledsavings.com www.76ledsavings.com Mirada™ LED Mirada™ LED • Up to $5,000 in incentives available Area Light Wall Sconce through Phillips 66 for upgrading your site to LED lighting.† Slice™ LED Area Light • 65% average energy savings Slice™ LED • Let LSI’s combined ability to provide Wall Sconce both Lighting and Graphics/Signage solutions work for you to enhance the overall image, energy efficiency, and sense of safety of your locations. CRUS Legacy™ Contact: LED Canopy Light Brand Image Central (BIC) for more information at 855-366-6676 † Incentives subject to following formal program rules and conditions.Matching Poles &Brackets Available LPEC LED Low Profile LPASC LED Low Profile DW LED Recessed Troffer Recessed Troffer Dome Wrap H The majority of LSI’s products are assembled in USA facilities by an American Workforce utilizing both domestic and foreign components. www.lsi-industries.com

CUSTOMERSIN THE NEWSCONGRATULATIONS TO OUR CUSTOMERSOur customers go above and beyond to achieve excellence Mark Whitehead is currently serving as the 2017 chairmanevery day. “Customers in the News” shines the spotlight on of the board of the Petroleum Marketers Association ofthose celebrating a service anniversary, company milestone America. Whitehead has served as principal owner andor industry accolade. Congratulations to all of our high- president of Whitehead Oil Company, based in Lincoln,achieving customers! Nebraska, since 1986. Whitehead Oil Company markets through 35 locations in eastern Nebraska, 21 of which are In 2017, Matt Carpenter has taken over Matt Holliday’s role as Homers for Health 2017under the U-Stop brand. Chairman, with Jedd Gyorko serving as his co-chair. Trevor Rosenthal and Adam Wainwright are once again representing the pitchers with K’s for Kids. They are excited to carry on what Matt and Leslee started for theTom Kolb Sr.k, viidcesproesfidCenat orfdJeifnfearslonGClietynOnilo, wnithfohirs smona, Tnoym KyoelbaJrr.s to come!MJefofemrseonntuCHWmioteyCmwoOeniirlfllseCarfeolonsmrcoepHhafeonorayn9lowt0hra,ysMberaayerctsitonagHcsnloaiuzldlebiddirnaaagnytd,thehodiesucP2ruh0sfiotl1olui7mpnsehd6roe6mr oefwith Phillripusn6s6w, hitohldtihneg tNhee wdisYtioncrktioYnaonfkbeeeinsg ionuor uolrdteosttalcontinuinhg odmisteribrutnorcionutnhte fUo.rS.thTeomseKaoslbonS.r. accepted theaward on behalf of marketership, which is still family-ownedand operaPterdoctoedeady.s from 2017 will support the ongoing needs of the hospital, including the renovation of the fourth floor inpatient cancer unit into a beach- themed environment.Jackson Oil and Solvents, one of the leading oil, fuel and Wallis Petroleum and Western Oil participate in a fundraiserlubricant distributors in Indiana, is celebrating 40 years as for local charities, Homers for Health and K’s for Kids, toa branded customer with Phillips 66. Founded in 1935, help support Cardinal Glennon Children’s Hospital. BothJackson Oil takes pride in adapting to fit its customers’ needs. companies sell paper baseballs in $1, $3 and $5 increments (similar to the MDA Shamrocks). In the last three years, Wallis Petroleum and Western Oil have raised more than $140,000.34 D R I V E N



ADVERTISINGONLINE REPUTATIONSTEPS TO MANAGE AND EXECUTEAN ONLINE REPUTATION STRATEGYA key theme of the Phillips 66 Momentum Conference in Over the past several years, Phillips 66 has been laser focusedMay was the rise of the connected consumer. Retailers must on strengthening its online presence to meet consumeradapt to meet the expectations of consumers of all ages and demands. All three fuel brands have newly redesigned websites,demographics who are accustomed to having the world at their robust social media presences and industry-leading mobilefingertips through their devices. Consumers expect brands they apps that help drive consumers to your sites. You can furthertrust to support product quality and promotional claims with enhance this effort by ensuring your station data on file isa robust online presence. accurate and pro-actively managing the online experience consumers have with your sites.AS A FUEL RETAILER, THERE ARE CERTAIN STEPS YOUCAN TAKE TO CREATE AND MANAGE YOUR OWNONLINE REPUTATION.ONE T WOASSESS YOUR CURRENT PRIORITIZE THE CHANGESREPUTATION NEEDED• Conduct searches for your business name and • If anything is inaccurate or negative, mark that as a address using the branded fuels websites, mobile priority to update or remove. apps, Google, Yelp, GasBuddy and other common search engines.• Put this information into a spreadsheet, listing the URLs, position in results, and your notes on the content of that URL.DID YOU KNOW?• Google is the No. 1 search engine in the world, with 94,000 searches for gas stations each day.• GasBuddy is the leading gas station finder app, with 11 million monthly unique viewers.• Out of all visits to the Phillips 66 branded websites and apps, more than 50 percent were looking for a station.36 D R I V E N

THREE IDENTIFY WHERE CONSUMERS ARE FINDING YOU • Look at what is showing up most and highest in your searches. These are popular destinations where consumers are finding you.FOURCREATE AND EXECUTE A REPUTATION STRATEGY• Focus on accurate listings on the most common search engines, and consider localized ads on platforms that allow you to target geographically like Google, Yelp and GasBuddy.• Create a plan with approved language to respond to both positive and negative consumer reviews.• Keep your message consistent across all content, and you will build a solid base consumers can trust.FIVEMONITOR AND MAINTAIN• Continue to monitor search results online. Track your progress and keep tabs on all mentions of your business name.• Set aside time to monitor and respond to reviews. The more you do it, the less time it will take.IF YOU’RE A PHILLIPS 66 CUSTOMER AND YOUR STATION INFORMATION ISINACCURATE, WE ARE HERE TO HELP!• On proprietary channels such as the Phillips 66, Conoco, or 76 branded websites or mobile apps, contact your account specialist with updated station information.• On external channels such as Google, Yellow Pages, etc., contact DAC Group at [email protected]. DAC helps Phillips 66 manage local listings that show up on external sources.



LEADERSHIPHOW TO BETTER LEADAND INSPIRE TEAMWORKA Q&A WITH RETIRED MARINE CORPS OFFICERJUSTIN CONSTANTINEThis edition’s Leadership Spotlight is on Justin Constantine, During my recovery I was lucky to have people from acrossa retired Marine Corps officer who was shot in the head by our country, many of whom I had never met before, senda sniper during a routine combat patrol in Iraq in 2006. His me cards and well wishes, employment opportunities, andrecovery was aided by the support of his infantry battalion nonprofit support. Most important though was my wifeand a positive mental attitude. Now an inspirational speaker Dahlia, who was “just” my girlfriend at the time and putand veteran advocate, Constantine focuses on sharing his own her entire life on hold for me. Even now, ten years later, Istory of leadership, overcoming adversity and teamwork. am lucky to have a wide network of people who check in on me periodically and offer ways to help me. I now try toPHILLIPS 66: Your seminar at the Phillips 66 do the same for as many others as I can, from friends whoMomentum Conference, “Officers Eat Last,” was are suicidal to organizations trying to find veterans to hire.incredibly motivating and moving. What are the three Nobody accomplishes anything of substance all on their own,main takeaways from your presentation, for those who and just as we should feel comfortable asking for help, wecould not attend? should continually look for ways to help others around us. PHILLIPS 66: You also speak about putting everydayJUSTIN CONSTANTINE: problems into perspective. Through your journey, how haveA. It’s okay to ask for help and lean on others for support. you learned to focus on what’s really important? >>B. Teamwork is critical for success, for you and othersaround you. Captain Justin Constantine crosses a channel while deployed overseas during hisC. You are stronger than you think you are. time in the U.S. Marine Corp.PHILLIPS 66: You give a lot of credit to your teamof Marines, who were instrumental in your survivaland recovery. Can you provide some thoughts on theimportance of a strong support network?JUSTIN CONSTANTINE: Yes, I survived agunshot wound to the head only because of one amazingNavy Corpsman and the amazing Marines around methat day. I also benefitted from the fantastic ER doctorswho operated on me 30 minutes after I was shot, and lastyear I was lucky enough to meet two of them and thankthem in person. But that was only the beginning of mystrong support network.DRIVEN 39

JUSTIN CONSTANTINE: Although I would not That requires spending less time talking and more time quite say I am “lucky” to have gone through this traumatic listening, putting yourself in the shoes of others, and taking a experience, I can definitely say that my life is on a much better genuine interest in your people. trajectory than it was before the deployment. I am far more focused, I strive to help others, and have learned not to “sweat PHILLIPS 66: Our industry also has a lot of unique the small stuff.” By all objective standards, I should not have challenges. What’s your biggest piece of advice to a person, survived what happened to me, and I know that life could be or an organization, that is facing adversity? (Whether it’s gone in an instant. In the face of minor adversities, whether competition from other businesses, internal challenges, etc.) it is bad traffic, feeling behind at work, or progress on various projects taking longer than projected, I remind myself of the Corpsman George Grant, who saved Constantine’s life in Iraq, accompanies him blessings that I have around me – strong relationships, helpful to a gala for the Wounded Warrior Project. mentors, and a comfortable lifestyle compared to many around the world. I also take time every day to make a short list of JUSTIN CONSTANTINE: I would argue that the major initiatives I want to focus on, and three things I am most of us continually face challenges, whether it is in our grateful for. personal or professional lives. Obviously for me, I faced some significant challenges during my recovery period while PHILLIPS 66: The retail fuel industry is diverse, with undergoing dozens of surgeries. However, as a small business many types of business models. No matter what type of owner, I constantly face a whole different set of challenges. organization, what should be a leader’s No. 1 priority? But when it comes to facing adversity, we are only limited by our imaginations in how to overcome them. I believe that JUSTIN CONSTANTINE: I believe that a leader’s most people like to help others (I know I do), and therefore number one priority is to take care of those around him or her. it makes sense to reach out to trusted friends, colleagues and It does not matter what industry you are in. It is true that an mentors when dealing with significant issues. I feel the phrase organization’s most valuable asset is its people, and leaders who “being vulnerable” might be a little overused these days, but forget that will not succeed in the long term. That being said, it the idea behind it makes a lot of sense to me – asking for is up to the individual leaders to determine what “taking care” help is a sign of strength, not weakness. I truly believe in the of their people means. maxim of “what comes around goes around,” and therefore make a concerted effort to help and support others. And Justin and his wife, Dahlia, during a meeting at the White House with former First when appropriate, I ask for advice and collaboration on Lady Michelle Obama and former President Barack Obama. overcoming my own challenges.40 DRIVEN

IT’S BIZLINK®… ONLY MOBILE!Don’t wait. Start now to get your prices and supply informationon the go!With BizLink mobile, customers have the ability to:• View pricing by terminal and product.• Review detailed product allocations by terminal.• View supply allocation status by terminal.• Request additional product/supply (GPO).• View business-critical alert messages.Available for iPhone and Android devices.Download today for free!bizlink.ephillips66.com CM 17-0493© 2017 Phillips 66 Company. All rights reserved.

EVENTS WE ARE ABOUT TO HIT PRIME-TIME INDUSTRY EVENT SEASON. KEEP UP WITH THE LATEST TRENDS, LEARN BEST PRACTICES, AND NETWORK WITH VENDORS AND INDUSTRY LEADERS AT THESE UPCOMING EVENTS. POC 2017 JW MARRIOTT @ L.A. LIVE, LOS ANGELES, CA 9.5.17 - 9.7.17 NACS SHOW 2017 MCCORMICK PLACE, CHICAGO, IL 10.17.17 - 10.20.17 WPMA 2018 THE MIRAGE, LAS VEGAS, NV 2.20.18 - 2.22.18 PACE SHOW 2018 KANSAS CITY CONVENTION CENTER, KC, MO 2.22.18 - 2.23.18 M-PACT SHOW 2018 INDIANA CONVENTION CENTER, INDIANAPOLIS, IN 3.13.18 - 3.15.18 INTERESTED IN GROWING WITH US? STOP BY AND SEE US AT POC AND WPMA. OUR BUSINESS DEVELOPMENT REPRESENTATIVES ARE EAGER TO CHAT WITH YOU. YOU CAN ALSO LEARN MORE BY VISITING BRAND.PHILLIPS66GAS.COM.

IT DOESN’THURT TOLOOK Exploring your options is just good business Are you getting the operational support you need? See what branding with Phillips 66®, Conoco® or 76® can do to help you improve operations, drive traffic and reduce costs. brand.phillips66gas.com Contact us today to discuss your customized operational improvement plan. Phillips 66®, Conoco®, 76®and their respective logos are registered trademarks owned by Phillips 66 Company. © 2017 Phillips 66 Company. All rights reserved.

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