Air freight commercial trends and practices benchmark Paris, January 27th, 2011

The benchmark aims at appreciating commercial practices and trends within Air Freight Market compared to global freight industry commercial practices 2 1.Understand how are competition & customers evolving in the air transportation market 2.Understand AFKLMP commercial practices position compared to best-in class companies in the industry to identify potential short and middle term improvement actions Benchmark objectives

Our approach will be based both on benchmark analysis of the freight transportation market and a specific questionnaire for selected players in the air freight market 3 Freight transportation market * Air freight market A two pronged approach 1 – Benchmark based on our sector expertise and customer database  Forwarders & shippers comparative analysis on main elements of the commercial organization  Dedicated case study for best-in class players (Fedex; DHL,...)  Outcome : AFKLMP Cargo positioning in terms of commercial organization maturity and effectiveness 2 - Dedicated questionnaire to refine benchmark results on key topics  Interview of key competitors and clients (forwarders and shippers) to refine benchmark results on specific topics The benchmark will target the freight transportation market trends and practices * Freight transportation market includes all players involved in the transportation of freight from shippers to the final destination for all possible transportation means (truck, train, sea and air) Exemple of outcome

It would be balanced through each of the 4 macro levers of the commercial domain: Organization, Sales performance steering, Offer and Business model evolutions (OSOB) 4 Four key elements would be assessed during our benchmark Business model evolution in air freight industry Customer segmentation & commercial Offer Commercial Organization Sales performance steering Best practices in air freight industry What do airlines offer to their customers ? What is the most efficient commercial organization for airlines in the freight transportation industry ? How do airlines achieve sales efficiency ? How are competition & customers evolving in the air transportation market ?

The benchmark would target the three key populations involved in air freight transportation: shippers, forwarders and airlines 5 Shippers Forwarders Airlines 5 shippers with relevant business with AFKL  List to be defined with Industry  Potential candidates include Sanofi, LVMH, Inditex, HP 3 global Partners  DGF, Kuehne & Nagel, Schenker 5 key regional accounts  Bolloré & Geodis Wilson (FDA)  Expeditors (AME – ASIA – MEISA)  Panalpina (AME – ASIA – FDA)  UPS (AME – ASIA – EUR) Internal benchmark AF KL MP Main Skyteam cargo members  Delta, Korean air, China Southern Main European competitors  Lufthansa  British Airways Best in class cargo airlines  Emirates, Cargolux, Singapore, American airlines, Swiss, Air Canada, Targets A total of 24 interviews Note : Firms highlighted in bold blue are the priority targets for the benchmark

Document status  Here we present the outputs expected from the questionnaire  Once we agree on outputs, we will build the questions  We recommend to use mainly « yes/no » questions to ensure a strong quantitative analysis …  …but toalso complete with more open questions for a qualitative feed of the quantitative answers 6

Key outputs expected on commercial organization Business model evolution in air freight industry Customer segmentation & commercial offer Commercial Organization Sales performance steering Best practices in air freight industry Local vs global governance  What are the drivers to decide what is locally vs centrally managed in commercial organization ?  Does it match customers & suppliers organization ?  Is there part of your activity that you have outsourced? What are the key benefits of outsourcing?  Are you satisfied with the current organization ? What are the benefits & areas for improvement ?  How does the organization contributes to the overall strategy ? Roles & missions in the sales structure  What are the key roles & missions within the sales team in your company : sales, CSO,... ?  Do you have hunting entities or other task-specific workforce ? For what purpose ?  What are the drivers to decide the sales resources allocation ?  Are you satisfied with the current sales structure ? What are the key benefits & possible improvements ?  Do you plan to change the role & responsibilities within your sales team organization ? Evolution trends & vision  How do you expect commercial organizations to evolve in your market ?  How do you assess your position with regards to this evolution ? Where do you stand ?  How do you assess your suppliers organization (forwarders and carriers)?  How do you plan to evolve ? What is your vision ? Internal organization  Which entity manage strategic marketing in your organization ? What are marketing missions ?  Which entity or entities manage the pricing ? What is the role of RM ? Who manages the yield ?  Which entity is responsible for providing industry or product expertise ?  Are you satisfied with the current internal structure and the way sales team interact with marketing, RM & Operations? What are the key benefits & areas for improvements ? Dedicated structure for top customers / key accounts  How do you define key accounts ? Segmentation drivers & numbers of key accounts ?  Is there a dedicated structure for key accounts : existence, mission & perimeter (central/local) ?  Are you satisfied with your KA structure ? What are the benefits & area for improvements ?  How does Key Account structure contribute to the company strategy ? Legend Critical informationImportant informationSomewhat important information A F S Airlines Forwarders Shippers Airlines & forwarders All Interviewees 1 S

Key outputs expected on commercial offer & partnerships 8 Commercial offer / specific offers & partnerships  Do you have a differentiated offer per segment ?  What are the reason / drivers for this offer customization ?  What are according to you the key structuring criteria of the offer (repair?quality?...)? Which weight would you put to each criteria?  Are you satisfied with existing offers & partnerships ? What are the key benefits & areas for improvement ? E - channel  Do you have a “e-strategy” ? What are the drivers ?  What are the first outputs as concerns “e” ?  How do you manage repair? Is repair part of your e-strategy ?  What are your e-objectives until 2012 ? Segmentation  What are the drivers & criteria to differentiate / segment your customers  How many segments & what type of customer per segment ?  Are there VIP customers ? What are the drivers to differentiate them ?  Are you satisfied with current segmentation & customer differentiation ? What are the key benefits & areas for improvements ? Business model evolution in air freight industry Customer segmentation & commercial offer Commercial Organization Sales performance steering Best practices in air freight industry A A A A A A Legend Critical informationImportant informationSomewhat important information A F S Airlines Forwarders Shippers Airlines & forwarders All Interviewees Questions that need to be discussed Not a crucial / particularly relevant question for the survey Already asked during BCG customer survey Evolution trends & vision  How do you expect airline commercial offers to evolve ?  How do you assess your position with regards to this evolution ? Where do you stand ?  How do you plan to evolve ? What is your vision ? 1 A A A A A A

Key outputs expected on sales performance steering 9 Sales activity monitoring  How do you track sales opportunities ? Do you have a sales funnel ?  What role do sales managers play in boosting/following up sales opportunities  Do you expect the role of sales managers to evolve in the near future? In which way?  Are you satisfied with the current way of working ? What are the key benefits & areas for improvement ? Tools & dashboards  Are you satisfied with current tools to follow customer performance ? Are they efficient ?  Are you satisfied with current tools to measure & track internal sales performance ?  What are the main improvements expected with current tools & the main problems encountered ? Sales team steering  Do sales have objectives ?  On what are these objectives based ( volume, contribution, revenues, customer satisfaction,…) ?  How important is the variable salary part ?  Are you satisfied with current sales team performance ? What are the benefits & area for improvement in your current sales performance steering structure ? Business model evolution in air freight industry Customer segmentation & commercial offer Commercial Organization Sales performance steering Best practices in air freight industry Legend Critical informationImportant informationSomewhat important information A F S Airlines Forwarders Shippers Airlines & forwarders All Interviewees Evolution trends & vision  How do you expect sales performance steering to evolve ?  How do you expect transportation purchasing to evolve?  What do you think your buyers will expect from suppliers sales people?  How do you plan to evolve ?  Have you already launched or will soon launch projects to boost sales performance?  What were the drivers of these projects & what do you expect from them ? 1 S SF

Key outputs expected on business model evolution in air freight Business model evolution in air freight industry Customer segmentation & commercial offer Commercial Organization Sales performance steering Best practices in air freight industry Air freight market evolution  What are the drivers of air freight demand ?  How do you expect it to change in the coming years ? How will airlines respond to this change ?  How do you plan to adapt to changing demand & customer needs ?  Do you expect new players to enter the market ? What would be their value proposition ?  How big is the threat of these new entrants for traditional airlines ? Forwarders needs evolution  What are the key criteria on which you evaluate an airline ?  What drives the evolution of your needs ? Are your needs evolving quickly ?  What do you expect form airlines now and in the coming years ? Relationship with shippers  What would be the drivers for shippers to deal directly with airlines ?  What drives the evolution of your air transportation needs ? Are your needs evolving quickly ?  What is the value added of dealing with forwarders vs airlines ? How does it match your needs ?  How do you plan your relationship with forwarders to evolve ? And with airlines ? Competition from sea & land transportation  Why would be the reasons for using air vs sea transportation ?  What is your air vs sea ratio ?  How competitive is air vs land transportation (trucks & trains on long distances) ? Why ?  What are the key advantages & drawbacks of air transportation ? F F S S S Legend Critical informationImportant informationSomewhat important information A F S Airlines Forwarders Shippers Airlines & forwarders All Interviewees Questions that need to be discussed Not a crucial / particularly relevant question for the survey Already asked during BCG customer survey Merger & acquisitions  Are there mergers & acquisitions in the market ? What is their impact ?  Do you believe mergers & acquisition are a key stake in the market ? Why ?  Have you recently experienced a merge or made a strategic alliance ? Are you satisfied with post- merger results ? What are the benefits and what problems did you encountered ? 2 S