1. Cargo Revenue Integrity Getting the basics right… …or making money by doing what we agreed Focus Group 19 Mar 2010

2. What has happened? April 2008 an internal audit was conducted, resulting in a grade D (out of A to E, E being worst) on our revenue integrity In October 2009 we identified a difference in Booked Revenues versus Invoiced Revenues of € 20 mln. BCG determined that in the different stages of the cargo transport chain, we are loosing money in every step Now we bring all this together in the Cargo Revenue Integrity program

3. The Chain of revenue integrity Payment Invoice Actual Transport Order Price Agreement € t We make an agreement Customer makes an order based on the agreement Sales CSO customer CSO customer OPS customer Cargo is accepted and transported AWB is checked and invoice created Invoice is paid Customer CSO Controlling CSO Accounting WE ARE ALL IN THIS TOGETHER! RCS

4. Findings and actions from audit & project.

5. Reasons for Booked vs. Invoiced Revenues ReasonStageCauseAmount AllotmentsBookingwrong data4 Mln Actual weight/ O&D5 Mln Actual weight differenceAcceptanceWeight Deviation Org DestBooking (AF, 4 segments) PRICE6.6 mln Spot rate after departureBookingPrice Wrong productBooking/AcceptancePrice Wrong commodityBookingPrice Wrong Price on Request (CPS goes Wrong)BookingPrice Wrong/No price in customer agreementBookingPrice Wrong customerBooking/ AWB ctrlPrice Wrong URN/ship codeBooking/OperationsPrice PRICE/WEIGHT3.4 mln Pallet dealsBookingPrice Deviation Density/VolumeBooking/AcceptanceWeight/Volume Chargeable weight1 mln Chargeable weightBooking/salesWeight Total20 mln (Oct 09 data) Booking data does not reflect actual shipment Booking/AWB info is not compared (and corrected) with the actual shipment

6. BCG findings Summary of diagnosis: Six key issues along the process chain After sales Booking Sales (spot) Sales (contract) Pricing AF-KL-MP is unable to leverage its existing network, and it is likely to become even more problematic when it will be selling the capacity of five airlines Estimated value at stake: ~20 M € Our clients do not respect their contracts Estimated value at stake: ~9 M € Our clients play with our internal market through station shopping Estimated value at stake: ~6 M € We don’t price with the right approach (misuse of entry condition) Estimated value at stake: ~20 M € We often change bookings when it is not justified Estimated value at stake: ~7 M € We do not always invoice our customers on the basis and volume finally booked Estimated value at stake: TBD

7. ‘Original’ CRI Project Setup Project team: Hans Zwitzer (chair), Bart Krol, Harry de Groot, Karel Leenders, Yannick Texier, Marcel Valk, Patrick Rieu, (Didier Melet) Meeting: – every Tuesday Steering Committee: Olivier Moreau, Martine Pujol, Gilles Roche, (Eelco van Asch), Eric Wittgen, Hans Zwitzer, Michiel van der Eijk (chair) Meeting – every 3rd Friday of the month Based on the latest insight: 1.It is clear that RM and OPS need to be much more involved, so we as for names for Project Team and Steering Committee 2.As this is an industry issue we need to include MP

8. BREAK OUT We would like you to consider the following 2 questions:

9. Booking versus Actual Shipment As long as we are not at the point of RCS, we only have information on the booking, not the actual shipment. Which 2 or 3 actions should we take to bring the booking data closer to the actual shipment? Payment Invoice Actual Transport Order Price Agreement From booked revenue to actual revenue € t RCS Just booking data

10. RCS: Crucial CRI moment: match between shipment, AWB and order. This determines what goes on board and what will be invoiced. Step 1: establish the facts together with the agent and shipper: # of pieces, weight, volume, product Conditions Special instructions Match Weight, Volume, Product AWB Order Physical shipment RCS Step 2: Commercial check: Match the shipment with the order and assess the deal commercially AWB Sales Copy Corrected Sales Copy Step 3: Record deviations: Record deviations immediately on the AWB prior to accepting and transporting the shipment Corrected Airline Copy InvoiceManifest Simplifying RCS complexity At the moment of RCS the Export acceptance employee must verify the actual shipment versus the AWB versus the booked agreement. What are the 2 main action we should take to simplify this complex task?