JV Core Principles – Operator Training . Storage, Hydrant and Into-plane JV’s – Information Flow and Competition Law JV Core Principles – Operator Training CP 1.14 v1.1 190913 JV Core Principles Operator Training Pack.ppt Joint Inspection Group Ltd Last Updated Sept 2013

Training Objective This presentation is to be used to provide aviation fuelling Joint Venture (JV) Operators / Wingmen (refresher) training on the JV Core Principles which detail requirements for JVs to control information flows to comply with competition law. A more detailed JV Core Principles Training pack is available for training other JV personnel who regularly have to handle sensitive information (e.g. JV Managers, Operations Managers, Supervisors, Administrators, Accountants). CP 1.14 v1.1 190913 JV Core Principles Operator Training Pack.ppt Joint Inspection Group Ltd Last Updated Sept 2013

Why have these procedures Storage, hydrant and into-plane JVs create substantial efficiencies and savings resulting in pro-competitive effects However JVs involve competing fuel suppliers and therefore raise potential sensitivities Information flow must be managed carefully to avoid any anti-competitive effects The concept that was developed is twofold Within JVs we are attempting to limit the flow of information to that which is strictly necessary for safe and efficient operation ‘Above’ the JV firewalls must be established within the participant organisations between the JV Operations and the Other Business Groups to manage information flow appropriately. Company Fine ENI € 117,000,000 ESSO € 66,690,000 KUWAIT € 46,800,000 SHELL € 56,460,000 TOTAL € 8,860,000 TAMOIL € 19,620,000 CP 1.14 v1.1 190913 JV Core Principles Operator Training Pack.ppt Joint Inspection Group Ltd Last Updated Sept 2013

Core Principles for Aviation JVs As part of a 2007 competition law investigation, the Italian Competition Authority concluded that some information exchanged by airport JVs was not strictly necessary for the safe & efficient operation of the JV, and imposed fines totaling €310 million on fuel suppliers participating in Italian airport JVs The main concerns related to the flow of sensitive information between the JV participants (which competed as fuel marketers at the airports): specifically, their sales volumes and the identity of their customers In view of these challenges new “Core Principles for Aviation JV’s” have been adopted. CP 1.14 v1.1 190913 JV Core Principles Operator Training Pack.ppt Joint Inspection Group Ltd Last Updated Sept 2013

Examples of sensitive information You need to be cautious about what you do to with sensitive information that becomes known to you. Passing it between competitors may give rise to serious consequences - including fines and criminal sanctions for companies and individuals. Examples of sensitive information: Identity of customer, their supplier & sales volume This will be known to you if you deliver fuel to a customer’s aircraft Scope of services provided to a particular customer by the JV on behalf of a supplier. Again, you will be aware of this, if you deliver fuel to a customer’s aircraft Refinery of origin of the fuel acquired by participants. You will be aware of this, if you work in the fuel depot. CP 1.14 v1.1 190913 JV Core Principles Operator Training Pack.ppt Joint Inspection Group Ltd Last Updated Sept 2013

Examples of non-sensitive information Safety, health, security and environmental information Legislative change and compliance data such as communication of new airport authority/concession requirements likely to impact JV operation JV operating and technical information product quality; availability of resources (other than stock) ; equipment operation / failures and disruption resulting from such events Operational requests from a supplier’s customer provided that the information is communicated only to that supplier and not to other fuel suppliers which are active at the airport. CP 1.14 v1.1 190913 JV Core Principles Operator Training Pack.ppt Joint Inspection Group Ltd Last Updated Sept 2013

Avoiding flow of sensitive information The Core Principles govern the treatment of sensitive information within the JV. JV Managers and third party visitors (e.g. inspectors/auditors) will be required to sign Confidentiality Agreements which incorporate these principles. Golden Rules Do not share sensitive information about one fuel supplier with another fuel supplier. All information, (whether oral, hardcopy or in electronic format), relating to airline customers, volumes supplied, number of uplifts, prices etc, must remain within the JV. Individual JV participants/shareholders are only allowed to see their own customer sales information and the aggregated JV volume & uplift data and throughputters are only allowed to see their own data. CP 1.14 v1.1 190913 JV Core Principles Operator Training Pack.ppt Joint Inspection Group Ltd Last Updated Sept 2013

Avoiding flow of sensitive information (cont’d) What information must not pass outside the JV? Identity of which suppliers supply each airline JV committee members may only receive their own information & aggregate volume data Any pricing or cost information relating to suppliers An applicant to become a participant in the JV: Whilst this information can and needs to be discussed within the JV MC/Board it should be treated as ‘sensitive’ in terms of divulgence outside this area. Supply outlook In a storage JV, for example, information regarding production changes for one participant must not be passed to the operations or sales contact of another participant Special rules are in place for dealing with customers that split their business between different into-plane operations and/or different fuel suppliers. CP 1.14 v1.1 190913 JV Core Principles Operator Training Pack.ppt Joint Inspection Group Ltd Last Updated Sept 2013

Q&A Give some examples of what would be considered sensitive information? The identity of a suppliers customer(s) Volumes of customers and/or suppliers An applicant to become a participant in a JV Scope of services provided to a particular customer The refinery of origin of fuel for each supplier. What are the three golden rules? Do not share sensitive information about one fuel supplier with another fuel supplier. All information, (whether oral, hardcopy or in electronic format), relating to airline customers, volumes supplied, number of uplifts, prices etc, must remain within the JV. Individual JV participants/shareholders are only allowed to see their own customer sales information and the aggregated JV volume & uplift data and throughputters are only allowed to see their own data. CP 1.14 v1.1 190913 JV Core Principles Operator Training Pack.ppt Joint Inspection Group Ltd Last Updated Sept 2013

Q&A What should do, if you are uncertain on any aspect of the Core Principles? Speak to your supervisor or the JV Manager. CP 1.14 v1.1 190913 JV Core Principles Operator Training Pack.ppt Joint Inspection Group Ltd Last Updated Sept 2013

  Summary Remember that customer identity, sales volume and price are all classed as sensitive information and must be handled carefully Please ask your supervisor if you have any ongoing queries. Ensuring continued competition law compliance in airport JVs is a key priority CP 1.14 v1.1 190913 JV Core Principles Operator Training Pack.ppt Joint Inspection Group Ltd Last Updated Sept 2013