1. Jean Paul Moreau Schiphol, September 14th & 15th 2010 S&D meeting Segmentation workshop

2. Segmentation workshop  Objectives  Discuss the customer segmentation definition at the area level and the related Give & Ask commercial offers »Identify who are the main regional players we want to partner with »Define what kind of Give & Ask offer we want to propose them  Agenda  Introduction on the new segmentation approach  Segmentation per area »FDA »AMERICAS »ASIA »MEISA »EUROPE  Wrap up and next steps 2

3. Agenda  Introduction on the new segmentation approach  Segmentation per area  FDA  AMERICAS  ASIA  MEISA  EUROPE  Wrap up and next steps 3

4. A new internal approach to segment our customers 3 PARTNERS OTHER LARGE LOCAL & SPECIALIZED 8 Key Accounts 5 Key Relations 3 Japaneses 3 Integrators Top Accounts 3 partners chosen among key accounts  DGF  Kuehne Nagel  DB Schenker This is an internal segmentation to better address differentiation between customers and improve alignment of Area/Market policy with Global Segmentation Other key accounts will be considered as other large 3 Japaneses… 3 integrators… 16 to…? 4

5. Our S&D strategy per segment PARTNERS OTHER LARGE LOCAL & SPECIALIZED Stabilize/Increase base load & unit revenue  Increase loyalty  Increase share of wallet (where needed)  Improve portfolio mix profitability  Decrease cost to serve  Contribute to revenue integrity At least, maintain our position  Maintain share of wallet & size in AF/KL revenue  Value and cash each service  Decrease cost to serve Develop profitable growth  Increase our penetration ratio on those clusters  Promote added value products Strengthen relation with Partners and give more visibility for one fourth of our business volume 5

6. Feedback on pre-contacts with Partners  First feedbacks on the Revised Commercial Policy and the « Give & Ask » offer principles were positive (July)  Large Forwarders already have this type of approach with Shipping Companies  Our Partners believe these partnerships could indeed benefit to both the airline and the forwarder (Trust and Win – Win rationale)  After vacation need for re-opening discussion in order to get more details about expectations and understanding of evolution  Call with DGF and Mails and calls with DBS and KN. Discussion based upon « Give & Ask »  Some Partners have already proposed to go further and 3 meetings will be held in October and November this year  Michael Shearer from DGF proposed to organize a meeting with his route managers to precise the offers  Kuehne Nagel would like to share the new commercial policy with area and market managers  Next actions will then be to organize meeting with Operations and IT to set up some pilot tests 6

7. Analyze experiences, measure first achievements in order to refine offer  Some concrete results to share on our new approach with Partners  On specific contracts »DGF part Charter with Martinair in Hong Kong and Pudong »KN Pallet all in price concept in Germany to North America »BSA experiences in Asia »…..  On new collaboration model »Implants at UPS in AMS »On site SDV Warehouse dedicated Acceptance »Specific slots at import »Score card for performance measurment ( C2K, e-bookings, booking reliability…)  New tools implementation »Price for a better customer segmentation coverage ( Pilot in Germany/Austria, extension to UK, Nordics…) 7

8. Feedback on first contact with partners and next steps Meet potential partners to propose the deal * JulyDecJanDec Contract 2010Contract 2011 JanDec Contract 2012 Anything to be changed Initial Partnership To be revised? Pilot on key elements of Partner offer including 1st Quick wins Roll-out New Partner Offer within the 2011 contract Refine/Improve Partner Offer model Partnership benefits tracking Define detailed Offer/ partner Build accurate Business Case/ partner Legend Tasks to be done Tasks in progress Realized actions 8

9. From Global Segmentation to Area/Market adapted policy Partners Other Large Clients Local & Specialized Accounts Global Partners guidelines and Commercial Offer to be applied in all areas, all markets Global Area decision on strategic regional Clients, aligned with corporate guidelines Dedicated area commercial offer applicable in various markets Area/Market scope Commercial offer defined per area/market AreaMarketDrive Centrally Driven - Area Implemented Centrally Monitored - Area Driven Area / Product driven 9

10. « Give » and « Ask » for Partners  Share of wallet growth / Volume growth targets at global level and in areas/markets with potential  AF/KL N° 1 on home markets, N°3 max on other markets (possible exceptions)  High level of booking reliability  High level of allotment performance  Support on unconstraint legs  Support new model « bellies & combi’s first »  High level of E-booking  CO2 commitment  Promotion of Value Added Products of AF/KL/MP  Common approach on bids Contracts & Prices  Capacity Management / Access Priority  Free Sales rate with guaranteed capacity for 3- month  Price rebate on belly / Pallet deals  Access to best price AF-KL-MP  Expert support for value added products  24h contact  Direct access to operations  Special monitoring / Dedicated shipment control  Flown as planned commitment  Dedicated lane for acceptance Operations  SVP, VP involvement  Senior designated Key Account Manager  Area Correspondent  Implants / Direct CSO contact (dedicated lane) Market Coverage  E-program – E-booking, E-freight and host to host  Customer dashboard  Consulted supplier in all AF/KL tenders Partnership Levers  End of year rebates + attractive bonus rebate on over-performance Loyalty Program Forwarder CommitmentOffer Upgrade and improve interfaces between S&D / Operations and / RM on one hand And between Corporate / Central and Area-Market/Local on the other one. Increase sales effectiveness Upgrade and improve interfaces between S&D / Operations and / RM on one hand And between Corporate / Central and Area-Market/Local on the other one. Increase sales effectiveness 10

11. Segmentation introduction Key points and voice over (1/2)  “ It’s an evolution not a revolution: it’s more in the process, the way we do business together”  Another way to differentiate our clients to better address their needs and rewards their loyalty  This segmentation enables to have a commercial policy suited to each type of clients  Among other large clients, area VPs will choose a certain number (2 – 10) of privileged customers with whom they are willing to have a closer partnership  The commercial policy for these players will be proposed by the area and monitored jointly by the area and the corporate  The strategy for the three global partners is not so much about gaining market share but rather about stabilizing our base load with them  “We do not want that they play with us only on peaks”  “We are not depending of anyone (except maybe Bolloré in France) but we need to be careful”  Feedback from the three global partners about give & ask was very positive  They already have this kind of partnerships with shipping companies (“in the ocean industry, they purchase container on the long term and manage capacity themselves”)  We need to understand better how they work with these companies as well as our competitors  … and we need to be cautious “We are only starting, I would not bet on full agreement on every topic” (JC Foucault) 11

12. Segmentation introduction Key points and voice over (2/2)  First concrete actions will come in October / November when we will meet again our three global Partners to discuss the Give & Ask proposal  “We don’t want the meeting to end with “lower the price” especially if there is Route Manager in the meeting”  In the meanwhile, we will have to work closely with operations and revenue management to detail our offers and rates and build a first business case for the segmentation  We have to prioritize the offers taking into account our capabilities and customers need to be able to quickly launch pilots on the Give & Ask  “ Building a business case we will not be an easy exercise but at some point we have to show money”  Local and specialized category needs further definition  Proposal to put ~50 customers in this category and define a new one that would be “spot users and small customers”  “We had a segmentation but we never took it further. How do we bring it really further this time ?” 12

13. Agenda  Introduction on the new segmentation approach  Segmentation per area  FDA  AMERICAS  ASIA  MEISA  EUROPE  Wrap up and next steps 13

14. Area FDA Market Segmentation PARTNERS OTHER LARGE LOCAL & SPECIALIZED PANALPINA BOLLORE France 50/60 clients: - express (Fedex, Chronopost) - shippers (PFG) - niche (Brinks, Hipavia) - traditional KA/KR (UTI, Ceva) SOTRACOM BBA DGFK&NSchenker Boyer Dedicated Fresh approach? ADO markets: North Africa: 4 clients Indian Ocean: 5 clients West Africa: 6 clients French Caraib: 3 clients Central Africa: 4 clients Guinean Gulf: 3 clients 14

15. “Give and Ask” for Bolloré  Share of wallet growth / Volume growth targets at global level and in areas/markets with potential  AF/KL N° 1 on home markets, N°3 max on other markets (possible exceptions)  High level of booking reliability  High level of allotment performance  Support on unconstraint legs  Support new model « bellies & combi’s first »  High level of E-booking  CO2 commitment  Promotion of Value Added Products of AF/KL/MP  Common approach on bids Contracts & Prices  Capacity Management / Access Priority  Free Sales rate with guaranteed capacity for 3- month  Price rebate on belly / Pallet deals  Access to best price AF-KL-MP  Expert support for value added products  24h contact  Direct access to operations  Special monitoring / Dedicated shipment control  Flown as planned commitment  Dedicated lane for acceptance Operations  SVP, VP involvement  Senior designated Key Account Manager  Area Correspondent  Implants / Direct CSO contact (incl after sales) Market Coverage  E-program – E-booking, E-freight and host to host  Customer dashboard  Consulted supplier in all AF/KL tenders Partnership Levers  End of year rebates + attractive bonus rebate on over-performance Loyalty Program Forwarder CommitmentOffer Same approach as Partners: Mutual dependance making it mandatory to have a strong link in relation and offer Same approach as Partners: Mutual dependance making it mandatory to have a strong link in relation and offer 15

16. “Give and Ask” for Other Large Panalpina  Share of wallet growth / Volume growth targets at global level and in areas/markets with potential  AF/KL N° 1 on home market  High level of booking reliability  High level of allotment performance  Support on unconstraint legs  Support new model “bellies & combi’s first”  High level of E-booking  CO2 commitment  Promotion of Value Added Products of AF/KL/MP  Common approach on bids Contracts & Prices  Capacity Management / Access Priority*  Free Sales rate with guaranteed capacity for 3-month  Price rebate on belly / Pallet deals  Access to best price AF-KL-MP  Expert support for value added products  24h contact  Direct access to operations  Special monitoring / Dedicated shipment control  Flown as planned commitment  Dedicated lane for acceptance Operations  SVP, VP involvement  Senior designated Key Account Manager  Area Correspondent  Implants / Direct CSO contact (including after sales) Market Coverage  E-program – E-booking, E-freight and host to host  Customer dashboard  Consulted supplier in all AF/KL tenders Partnership Levers  Local attractive bonus rebate on over-performance Loyalty Program Forwarder CommitmentOffer Give & Ask is good support to formalize and try to improve cooperation * In close concert with RM because operating from hub only 16

17. “Give and Ask” for other regional partners  Share of wallet growth / Volume growth targets at global level and in areas/markets with potential  AF/KL N° 1 on in ADO markets towards CDG  High level of booking reliability  High level of allotment performance  Support on unconstraint legs  Support new model « bellies & combi’s first »  High level of E-booking  CO2 commitment  Promotion of Value Added Products of AF/KL/MP  Common approach on bids Contracts & Prices  Capacity Management / Access Priority  Free Sales rate with guaranteed capacity for 3-month  Price rebate on belly / Pallet deals  Access to best price AF-KL-MP  Expert support for value added products  24h contact  Direct access to operations  Special monitoring / Dedicated shipment control  Flown as planned commitment  Dedicated lane for acceptance Operations  SVP, VP involvement  Senior designated Key Account Manager  Area Correspondent (VMA in the lead)  Implants / Direct CSO contact (dedicated lane) Market Coverage  E-program – E-booking, E-freight and host to host  Customer dashboard  Consulted supplier in all AF/KL tenders Partnership Levers  End of year rebates + local attractive bonus rebate on over-performance Loyalty Program Forwarder CommitmentOffer Start playing the Area game 17

18. “Give and Ask” for Local and Specialized France  Offer & commitments to be finetuned within this category, based on number of criteria (e.g. traditional KA & KR like Expeditors or UTi vs local hero such as Centrimex) Comment  Capacity Management / Access Priority  Free Sales rate with guaranteed capacity for 3-month  Price rebate on belly / Pallet deals  Access to best price AF-KL-MP  Expert support for value added products  24h contact  Direct access to operations  Special monitoring* / Dedicated shipment control  Dedicated lane for acceptance  Slot system for delivery (e.g. PPC)  SVP, VP involvement  Senior / Local designated Account Manager  Area Correspondent  Implants / Direct CSO contact (including after sales)  E-program – E-booking, E-freight and host to host  Customer dashboard  Consulted supplier in all AF/KL tenders  Attractive bonus rebate on over-performance for selected customers  Share of wallet growth  AF/KL N° 1 on home markets  High level of booking reliability  High level of allotment performance  Support on unconstraint legs  Support new model “bellies & combi’s first”  High level of E-booking  CO2 commitment  Promotion of Value Added Products of AF/KL/MP  Common approach on bids Forwarder CommitmentOffer Contracts & Prices Operations Market Coverage Partnership Levers Loyalty Program * CFM-like monitoring for selected customers 18

19. FDA Segmentation Key points and voice over (1/2)  Two big regional partners in addition to the three global partners  Bolloré which is bigger than the three Partners in FDA area will be given the same Give & Ask  Panalpina is chosen because it has a huge potential for growth in the FDA area and we would like to capture its potential and increase this customer loyalty »Erratic volumes because they mainly play with cargolux »It will be proposed a lighter Give & Ask with some special services »On the offer side, tenders are particularly relevant with Panalpina »Commitment expected mainly on two points : support new model for combis et bellies, increase value added products in the portfolio  Proposal to develop a specific Give & Ask with importers that would also be considered as key regional players  Wish to have a global approach with BBA, Boyer and SOTRACOM  This segmentation should be enriched by adding some more regional players taken from « other large »  Feeling that we do not reward some big players (Expeditors, Uti,…)  But we need to be cautious : « The purpose is not to copy the Key Account structure » 19

20. FDA Segmentation Key points and voice over (2/2)  Some key regional players are also important in other areas  Need for discussion betwwen area VPs and aligned proposal accross areas  Local & specialized key players are split by domain  ~ 50 local & specialized players in France  ~ 25 local & specialized players in African & DOM-TOM markets  Feel that there should be a fourth category for the ~ 400 « spot users and small customers »  Need to put concrete actions behind the segmentation quickly  « Segmentation will have to become real, for allocation resources and number of visits” (JCF)  “If we give we must ask” (JP Moreau) 20

21. Agenda  Introduction on the new segmentation approach  Segmentation per area  FDA  AMERICAS  ASIA  MEISA  EUROPE  Wrap up and next steps 21

22.  Partners: (top customers based on AFKL net rev YTD):  DGF/ DB SKR/ KN Followed by: SDV/EI/CEVA/UPS/UTI/Panalpina Customer Segmentation – US Market Local Heroes: (local growth potential or niche specialty customers) BDP Intl / IAH: chemicals/dense resin traffic Unitrans / SFO: pharma traffic Oceanair / WWP / BOS: seafood traffic Able / Commodity / LAX: seasonal fresh traffic Omni / MIA: HEG traffic Others include: Geodis, Dachser, Phoenix Intl, DSV, Agility, Nippon, Hellmann, Damco, Lynden, TNT, Weiss Rohlig, MAO, Transgroup, Concordia, EMO, JAS, Menzies 22

23. Customer Segmentation – US Market Operations Expert support for value added products – already exists for most products 24 hr contact – partners as well as most local heroes already have local ops contact numbers but not necessarily 24 hr access Direct access to operations – local ops contact numbers are typically provided by local sales / CSO as needed Special monitoring/Dedicated shpts control – provided at hubs SPL/CDG and currently prioritized by flight planning process Flown as planned commitment – Coordination and shpt prioritization with ops already takes place as part of the flight planning process. Dedicated lane for acceptance – No such services currently provided Contract & Prices Capacity Management/Access Priority – currently based on shpt contribution, product, then customer – needs further development Free sales rate with guaranteed capacity for 3 months – ?? Price rebate on belly/pallet deals – possible consideration for selected customers on NAJV routes with Delta and Alitalia- no current policy Access to best price AF-KL-MP – this is part of existing processes 23

24. Customer Segmentation – US Market Market Coverage SVP, VP involvement – no issue in US market Senior designated Key Account Manager – 2 Key Account managers are already in place in the US market Area Correspondent - Needs further defining for area key account coverage Implants/Direct CSO contact – no implants or specific CSO contacts have been assigned although some product assignments are in place Partnership Levers E bookings – we could move forward with sharing and discussing results and trends with these customers as long as the data is consistently available E freight, Host to Host, customer dashboard – HQ initiatives ? Consulted supplier in all AF/KL tenders – HQ initiative ? Loyalty Program - “bonus” or “rebate” provided globally by HQ – no local market incentive schemes are in place 24

25. Customer Segmentation – US Market Dest Specific Regional Prospects Local Heroes Partners Spot User Bigger than 3 mil/yr REV contribution Rigid base of support Corporate attention + Incentives Bigger than 2 mil/yr potential but with M/S under 10% Establish customer profile and development strategy Bigger than 1 mil/yr REV contribution Niche market players Regional oversight / Product sales support Top 10 to promotional destinations Contract management to grow business Yield Control 25

26. Partners Partners as shown= approx 43% of AFKL Rev Partners as shown= approx 43% of AFKL Rev Global incentive program Corporate Attention Dest Specific Regional Prospects Local Heroes Partners Spot User 26

27. Local Heroes,(I.E. US West Region) Dest Specific Regional Prospects Local Heroes Partners Spot User Bigger than 1 mil / yr 27

28. Regional Prospects, (I.E. US West) Dest Specific Regional Prospects Local Heroes Partners Spot User Bigger than CASS 2 mil / yr with M/S under 10% 28

29. Destination Specific (USA) Dest Specific Regional Prospects Local Heroes Partners Spot User (i.e. West  DXB) 29

30. Customer Segmentation - Canada Forwarder Commitment Share of growth/volume growth targets at global level and in area/markets with potential – in each station, in discussion with Partners, sales managers establish annual revenue target for each customer, targets destination specific during POA negotiations AF/KL #1 in home markets, #3 max on other markets (possible exceptions) – considering capacity we offer ex Canada, confident AF-KL are within top 3 carriers of our Partners although not able to quantify High level of booking reliability - arranged High level of allotment performance – very limited allotments ex Canada Support on unconstraint legs – we continually review CASS stats for new opportunities to grow business with our partners 30

31. Customer Segmentation - Canada  Forwarder Commitment (cont.) Support new model – bellies & combis first – arranged as majority of our capacity ex Canada is belly, higher rates for shpts that require MD High level of e-booking – our Partners do focus on supporting e- channel CO2 commitment – not arranged but not confident our customers would be willing to pay what will be perceived as a surcharge for CO2 Promotion of value added products of AF/KL MP – majority of our value added products shipments are from Partners Common approach on bids – not clear? 31

32. Customer Segmentation - Canada Other Comments The plan is to continue with our strategy to work close with Key Accounts/Partners, mid sized and specialty agents to maximize our results ex Canada We believe the Americas should have input on Global Incentive Agreements on support we need from our area – currently incentive agreements are not influencing results ex Canada Perhaps incentive agreements should be 2 levels – Global and Area. An Area incentive would allow the Americas to steer business more effectively/aggressively 32

33. AMERICAS segmentation Key points and voice over (1/2)  Two workshops to bring it together on the new commercial policy  Results will be illustrated via the examples of the US market for key players and the offers and also for Canada to show the commitment asked to customers  Key area players in the US belong to two categories  The three global partners : DGF, KN, DBS  And some area partners :SDV, EI, CEVA, UPS, UTI, Panalpina  It seems that a group for spot users and small clients is missing  Feeling that this segmentation is not suited to operational needs  « The problem with this segmentation is how the teams will work with it »  Alternative proposal for segmentation »Partners : including global partners and area partners »Local heroes : key players at the market level »Regional prospects : key players in a specific region »Destination specific : key players on certain destinations / flights »Spot users & other small clients 33

34. AMERICAS segmentation Key points and voice over (2/2)  Many features of the Give & Ask already exist in the AMERICAS but offer and needs are different from one market to the other  Feeling that today on some features of the Give too many customers are offered a service that they do not really deserve  How to better differentiate what we offer to our customer ?  How to monitor that they indeed give something in exchange ?  There is a need to embed e-booking into our organization  The bonus policy has to be clarified both at a corporate and local level  Override can be locally managed  « We have to avoid offering global rebates if they do not steer the business locally”  How to better monitor it ? Better share ? »Can we ask as a condition to become a global / regional partner to distribute bonuses locally as promised 34

35. Agenda  Introduction on the new segmentation approach  Segmentation per area  FDA  AMERICAS  ASIA  MEISA  EUROPE  Wrap up and next steps 35

36. Asia Regional partners and local heroes  Regional partner  SDV  Expeditors  Ceva  Nippon  Yusen  UPS  TNT  Local hero  Speedmark/Transpeed SIN  Multi/Sony BKK  Newtimes/Harmony China  BEL / HELLMANN (HKG)  Kintetsu (Japan) 36

37. Asia Give and Ask  Give  Capacity management / access priority »Preferred access »Contract  Ops and RM offer to be defined  Monitoring policy to be defined  Ask  Import support  Targets on allotments »Booking reliability »High level of allotment performance  Volume / share of wallet targets ? 37

38. ASIA segmentation Key points and voice over (1/2)  7 regional partners on top of the three global players chosen taking into account their size and behavior  « We do not want price chasers » : DSV, DACHSER will not be chosen despite their size  Treatment of Japanese to be decided  First proposal by JPM : special treatment on certain market led by corporate  Second proposal : Area handling with corporate monitoring »ASIA takes care of the Japanese and discuss with other areas to align the policies while corporate monitor the exchanges  Responsibilities of corporate in the handling of regional players that are also key accounts need further clarification  Area should have the power to propose the deal to its regional players  Corporate should monitor and align the Give & Ask at a global level Monitoring EXPD EUR EXPD ASIA EXPD AME Exchange s Area level Corporate level Give & Ask Exchange s Proposal to be discussed 38

39. ASIA segmentation Key points and voice over (2/2)  In Asia, regional key players may have different needs and thus different Give & Ask  “I would definitely not provide everybody the same” Jan de Vegt  How do we then define a standard package and add-on features for specific players needs ?  Only three features of the Give & Ask are proposed in the standard package for regional players  Access priority / capacity management on the Give side  Target on allotments and support on unconstraint legs on the ask side 39  Clarification of the handling of global partners and regional partners by JCF  Partners “We decide at the corporate level you apply”  Other large clients You propose a Give & Ask for your regional partners and we monitor and align globally”

40. Agenda  Introduction on the new segmentation approach  Segmentation per area  FDA  AMERICAS  ASIA  MEISA  EUROPE  Wrap up and next steps 40

41. Customer segmentation the backbone of our new commercial proposition Modified product folio Sales Strategy Customer segmentation New Commercial proposition More effective pricing & contracting Distribution policy Industry specificity Size Geographic coverage Affinity with AF- KL PARTNERS OTHER LARGE LOCAL & SPECIALIZED 3 Global partners DGF | K+N | DB Schenker 2-5 Regional MEISA partners UTI | SDV | Expeditors | Agility or Panalpina | UPS or Ceva driven not by what they give (AF-KL share); but, what they do not give (have potential for). Pb with the geographical organization Local heroes on main contributive market feel there could be a case for further categorization of the LOCAL & SPECIALIZED cluster on area level; before a CUSTOMER CLASSIFICATION can be applied on market level; the combination could well tie-in with a product- or industry- segmentation, besides encompassing a geographic/area- wide coverage    Cont’d Next page 41

42. Customer classification in the Local & Specialized cluster geographic/area- wide coverage, combined with a product- and industry- segmentation PARTNERS OTHER LARGE LOCAL & SPECIALIZED Approach towards WHOLESALERS, CONSOLIDATORS, SEA 2 AIR agents e.g. AMI (ZA) | Skyways, GAC (IN) Dubai National Air Travel (AE) Policy towards INTEGRATORS, UCB brokers e.g. DHL | TNT | FedEx Product Specialized forwarders  PERISHABLE agents e.g. Skyservices (ZA) | Freightwings (KE) Venus (EG)  VALUABLE agents (IN) (ZA) Industry Specialized forwarders linked to specific OEM TRAFFIC  AEROSPACE e.g. Kintetsu -» Rolls-Royce (ZA)  WHEELS e.g. Morgan air -» Renault (ZA)  PHARMA e.g. Hermes -» Dr. Reddy (IN) 42

43. « Give » and « Ask » approach adapted offer per segment, geared towards a higher level of customer commitment  2009 « game changing »  customer behavior more (and only) PRICE driven  makes one wonder when (yet convinced that in a few years) we as an industry will again embrace a path of growth and greater professionalism  till then « shift gears » 1. accelerate COMMERCIAL POLICY changes 2. decelerate focus on C2K, e-Booking, CO 2 mpensation 43

44. « Give » and « Ask » approach 1.Apply a « value=price » to Offer  Low price = bare product = least priority, no additional service (flown point 2 point)  Add-on services available off-the-shelf (buy as you please) 2.Offer is a « linked  value » to Commitment  But remains an off-the-shelf service (commit if you want) Alternately In Conclusion  No pre-set « Give » and « Ask » Offer necessary for any customer segmentation (besides the global partners)  Would add « support on unpopular day » (next to support on unconstraint legs) to gain « access to capacity » on popular days 44

45. MEISA segmentation Key points and voice over  7 possible regional players in addition to the 3 global players based on their potential  « We have chosen those where we have room for growth »  Local heroes are then split by product with some players even bigger and more powerful than regional partners  Case of Dubai National Air travel « We have no other choice than dealing with them »  Getting customer loyalty is particularly difficult in MEISA  « We are smaller than in other areas »  India customers are very opportunistic  « We are ourselves doing our market so it makes it harder to ask something from customer »  Global partners are not playing by the rule in MEISA  « They are trying to capture local flows to have better deals with us »  « The teams feel that there is a big difference between the field and what is decided at corporate level »  How do we better integrate the feedback from the field to build our policy ? 45

46. Agenda  Introduction on the new segmentation approach  Segmentation per area  FDA  AMERICAS  ASIA  MEISA  EUROPE  Wrap up and next steps 46

47. Segmentation input Europe Willingness to partner AFKLMP number 1 on their list Strong central steering Dedicated Shipment Control (top quality) Global Priority all org. departments System integration Capacity deals fixing key customer routes Access to best local conditions (if needed) KA management by EVP, SVP, VP’s (supported by KAM) Corporate Top AccountsArea Focus AccountsMarket Priority Accounts Willingness to partner AFKLMP in top 3 on their list Strong regional steering Monitoring up to defined quality levels Status known at ops/ RM Capacity deals fixing key customer routes Access to best local conditions (if needed) Area incentive Account management by area VP, MM’s (supported by KAM) Local priority AFKLMP number 1 on their list Strong steering towards AFKLMP Monitoring up to defined quality levels Status known at ops/RM Capacity deals fixing customer’s main business Access to best local conditions (if needed) Local incentive Account management by MM, CM, yearly meeting VP Local priority Additional local market segmentation for sales planning, account planning, cso tele-services etc. 5 areas x 3 2 prod/indust. x 3 X Markets or countries To be developed: local account plans (centrally reviewed) 47

48. 48 1234 High potential, high MS High potential, low MS Low potential, high MS Low potential, low MS 21 34 Median Market Tonnage per agent Average AF-KL Market Share German example : 2 1 4 3  CASS data out of the last 3 months. Sort agents in per station by market-potential (MS in %) and actual MS with AF-KL (MP) Local segmentation Categorisation of Customers

49. EUPE:Top 20 clients 90 80 70 60 50 40 30 20 100 10 0 JAS 4,2 HORSE SERVICEINTL 4,2 HELLMANN 5,0 BLUE SKY CARGO BV 5,1 TNT 5,4 AGILITY 7,8 Bolloré 8,1 RHENUS 10,2 EXPEDITORS 10,2 VANESP IBERICA 14,5 65,9 GEODIS WILSON 14,6 DSV 15,8 UTI 17,7 64,9 UPS 18,5 CEVA 20,3 66,3 PANALPINA 28,8 DB Schenker 38,0 67,8 KUEHNE & NAGEL 52,3 52,5 68,4 DGF 95,7 67,6 Top 20 customers account for 62% of all-in revenues Source : Revenue Management database IATA year 2009/10 + WeissRohlig 9 mln 49

50. Local segmentation Sales Visits – Planning Customer PriorityFrequency of visitsTotal visits per Semester (Minimum) AMonthly6 BTwo-monthly3 CQuarterly2 DSixt-monthly1 To be planned locally: Number of Sales FTEs must match with visit frequency – Planning always for one Schedule period (SS, WS) – Weekly pre-planning necessary PRICE is currently designed to handle such kind of specification 50

51. Local segmentation Sales – Other possible privileges (examples) 51

52. Europe segmentation Key points and voice over  5 regional partners were identified in Europe in addition to the 3 global partners  Criteria were the size and willingness to partner with AFKL  UPS and Uti that are willing to develop a close partnership will almost receive a Partner treatment  Other regional players are runners up « They are more willing to partner with us than Schenker » »Rohlig may be added up to the three runners up  Special case of Bolloré will be handled by FDA area »« Gilles takes care of Bolloré and I make sure my offer to Bolloré is consistent with what Gilles has decided » (Eelco)  « We should work together, each of us having a small number of accounts »  Proposal to have less ~ 10 big regional players handled by the area and to exchange with other areas to discuss how the other big players should be handled  This way area VPs can propose a customized package to its regional partner and makes sure it is implementable globally  VP KAM will then be here to ensure consistency and global monitoring  « Area should always have an input to any decision on Key accounts at a corporate level » 52

53. Agenda  Introduction on the new segmentation approach  Segmentation per area  FDA  AMERICAS  ASIA  MEISA  EUROPE  Wrap up and next steps 53

54. Segmentation Key takeaways 54  We need a Key Accounts Policy …  We need to keep the notion of recognition for our key accounts  Must be in line with segmentation  The question is how to migrate from today’s ways of working integrating the notion of differentiation  better formalization of Give & ask to be applied to “other large segment” customers according to our/their willingness to partnership  No question about the 3 Global Partners, we are in line

55. Segmentation What to do before next S&D meeting (planned Nov 17th) 55  AREAS :  Fine tune segmentation Other large /Regional Partners at area level  Fully integrate MP customer portfolio  Finalize Give & Ask  Expectations from the central Key Account team  Summary and synthesis of all the inputs of today  PARTNERS : Appointments to be made with DGF/Schenker and K&N in October JPM/EVA/JCF/MtB/MU  2011 Priorities in the Give & ask  KEY ACCOUNTS : JPM  Clarify the role of areas for Other large and regional vs central team  Prepare the content of the incentive deals and share with areas  Fully integrate MP in this preparation These 2 points must apply to make it tangible to Panalpina, CEVA, UTI, Geodis, Agility, Expeditors, UTI, Japanese, SDV