Customer Presentation - Introduction DHL OCEAN SECURE

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DHL Global Forwarding Global Ocean Freight

Introduction to DHL OCEAN SECURECustomer Presentation Feb 2010

Agenda

Key Challenges faced by Higher Value Customers DHL OCEAN SECURE - The Premium Value Proposition CSD Technology by Savi Networks 5 Building Blocks for the Solution & Operational Execution Conclusion

DHL OCEAN SECURE: Customer Presentation | Feb 2010

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Deutsche Post DHL | Page

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Key Challenges faced by many Higher Value Customers transporting their products via Ocean Freight

Making sure higher value products are secure, both from theft & the elements Products in transit for longer period of time Not under as much direct supervision Greater value per container shipment

Making sure you have visibility of the container within your supply chain Due to longer transit and larger quantities knowing where the product is at any point in time can help your inventory management and in meeting customer & market demands (e.g. Customs) Being confident the product within the container is in good condition upon arrival

Combining the two above items means delivering a solution to your higher value products which offers greater levels of reliability but still enjoys the benefit of shipping via ocean

DHL OCEAN SECURE: Customer Presentation | Feb 2010

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Deutsche Post DHL | Page

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Addressing the Key Challenges faced by Our Customers in Ocean Freight TransportationDGF OFR offers a Premium Solution with Enhanced BenefitsSecurity Physical/Electronic Seal With a GPS container security device, you have the assurance of knowing real-time where and when your container was opened; with the option of a light intrusion sensor The mechanical bolt seal (LSb device) is ISO 17712 compliant pull strength Our Control Tower/Operations will initiate immediate corrective actions via the local security response team upon a security alert Visibility Near-to Real-time Monitoring with GPS fixes and Geo-fences On-Time arrival - only 53% of on-time port arrivals for container shipping1) Pro-active monitoring of shipping lines performance vis--vis published sailing schedules (e.g. visibility of vessels slow steaming/super-slow steaming) Better planning more visibility means faster corrective actions by DGF to meet end- toend transportation commitments to meet your or your customers needs & execute additional downstream planning if required Reliability Day Definite door-to-door Service More stringent SLAs with all players in the chain to offer you A money-back guarantee2) on DHLs OFR day-definite door-to-door service / selected lanes Shift from air to sea Air freight customers switching to ocean freight are demanding greater reliability at lower cost Better reliability means lower inventory holding costs and better reaction to customer and market demandsSource: 1) Drewery report 4Q 2007; DNV Impact Assessment Report October 2005; 2) Money-back is 2 times of the additional service fee paid by customer, terms and conditions apply

DHL OCEAN SECURE: Customer Presentation | Feb 2010

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Deutsche Post DHL | Page

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Agenda

Key Challenges faced by Higher Value Customers DHL OCEAN SECURE - The Premium Value Proposition CSD Technology by Savi Networks 5 Building Blocks for the Solution & Operational Execution Conclusion

DHL OCEAN SECURE: Customer Presentation | Feb 2010

CONFIDENTIAL

Deutsche Post DHL | Page

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DHL OCEAN SECUREOur value proposition - One Product with 3 Service Levels supported by GPS-enabled container security devices (CSDs)Service Level Service Description/Benefits Enhanced Visibility and Security: near real time and e2e GPS tracking via GPRS network comms Near real time exception alerts, e.g. milestone delays or security breach of container Pro-actively monitor and respond to exception events along DTD milestones

Key FeaturesGlobal Positioning (GPS) Container Security Door Open Alert Near real time corrective action

CLASSIC

PREMIUM

In addition to the CLASSIC Service Environment Sensors: near real time exception alerts of temperature, humidity, shock and/or light variations (options are device specific) Dry van Containers Reefer Containers (future)

Temperature Monitoring Humidity Monitoring Shock/Light Exposures

TIMESURE

In addition to the PREMIUM Service Provide day definite service Offers 2-times money back guarantee (selected lanes & strict terms and conditions apply) in case promised date of delivery not fulfilled

Day Definite DTD Reliability

DHL OCEAN SECURE: Customer Presentation | Feb 2010

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Deutsche Post DHL | Page

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Service Factsheet: CLASSIC and PREMIUM Services

Terms and Conditions

Valid for Danmar Lines controlled business only Service applicable to FCL dry van containers (require on-deck stowage) Service will be applicable to FCL Reefer containers in the near future Valid for all transport legs, e.g. D-T-D, D-T-P, P-T-D If central monitoring/reporting is required, the DHL OCEAN SECURE services must be supported by an existing DGF control tower or Central Ops team If central monitoring/reporting is not required, the DHL OCEAN SECURE services will be supported by individual DGF stations

1) E.g. temperature, humidity or shock sensitive

DHL OCEAN SECURE: Customer Presentation | Feb 2010

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Service Factsheet: TIMESURE Service

Terms and Conditions

Valid for Danmar Lines controlled business only Danmar controlled business (shipping with DGF selected carriers only, including customs brokerage) FCL containers only (on-deck stowage) Valid for transport legs: D-T-D, P-T-D NOT x-T-P, i.e. D-T-P or P-T-P Selected lanes only and subject to detailed analysis of the entire transportation lane The Timesure service must be carried out via an existing DGF control tower or a dedicated operations personnel/team of an individual DGF station Subject to the operational terms and rates of existing OFR named-account contracts with specific carriers Money back guarantee (2 times the additional service fee1) paid) if the DTD/PTD committed transit time is not fulfilled Top-load on vessel is not guaranteed Exclusions: Force majeure and other extenuating events beyond DGFs control

1) Service Fee = a fee per container paid in addition to the contracted/agreed OFR transportation rate.

DHL OCEAN SECURE: Customer Presentation | Feb 2010

CONFIDENTIAL

Deutsche Post DHL | Page

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Agenda

Key Challenges faced by Higher Value Customers DHL OCEAN SECURE - The Premium Value Proposition CSD Technology by Savi Networks 5 Building Blocks for the Solution & Operational Execution Conclusion

DHL OCEAN SECURE: Customer Presentation | Feb 2010

CONFIDENTIAL

Deutsche Post DHL | Page

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Container Security Device Technology (1/2)2 types of GPS devices are available for standard dry van Containers

LS (Location + Security)

LSE (Location, Security + Environment)

Tag

Features

Global GPS coverage (on-deck stowage) GPS location fix frequency is configurable (default: 30 mins) Cellular communication (GPRS) with back-haul frequency configurable (default: 4 hours) Battery Capacity: 90 days all weather Security: mechanical barrier seal (ISO compliant pull strength) Alerts: immediately upon security events GPS accuracy: 85% of time within +/- 50 meters 98% of time within +/- 150 meters

Same as LS devices

Environmental sensors (inside) Temperature (resolution of 2 deg) Humidity (resolution of 2%) Shock/Vibration (resolution equal to a 1 inch drop) Alerts: immediately upon environmental events Optional: light intrusion sensor Mounting: C-clamp on left doorDeutsche Post DHL | Page 10

DHL OCEAN SECURE: Customer Presentation | Feb 2010

CONFIDENTIAL

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Container Security Device Technology (2/2)Lock-Bar Mounting solution for reefer containers (under test)

DHL OCEAN SECURE: Customer Presentation | Feb 2010

CONFIDENTIAL

Deutsche Post DHL | Page 11

Agenda

Key Challenges faced by Higher Value Customers DHL OCEAN SECURE - The Premium Value Proposition CSD Technology by Savi Networks 5 Building Blocks for the Solution & Operational Execution Conclusion

DHL OCEAN SECURE: Customer Presentation | Feb 2010

CONFIDENTIAL

Deutsche Post DHL | Page 12

DHL OCEAN SECURE: Building Blocks of the SolutionThe overall solution comprises a combination of processes (E2E supply chain mapping, pro-active monitoring) and tools (GPS device, Information system)Processes1 End-to-end SC1) mappingHubHandling Ground Handling Customs clearance Port Handling Ocean Freight Port Handling Customs clearance Ground Handling Hub Handling

Elements of Innovative OFR Services

Pick-up

Delivery

2 Pro-active monitoring & response 3 Device-pool management & logistics Full device-pool management and maintenance with market-leading technology provider Via existing DGF Control Towers or Central Operations teams in OFR Stations

Tools4 GPS Device and Communications via GPRS/GSM networks 5 Information System GeoView and web access

1) Supply Chain

DHL OCEAN SECURE: Customer Presentation | Feb 2010

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Deutsche Post DHL | Page 13

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Full Shipment Transparency: Standard Milestones11 standard milestones defined: Expected timings are mapped and monitored against near-to real time information from GPS security devicesStandard Milestone Events

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