Good morning everyone. I m Julia Sattel, Senior Vice President of Airline IT. It sapleasuretobehere.

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1 Good morning everyone I m Julia Sattel, Senior Vice President of Airline IT. It sapleasuretobehere. This morning both Luis and Holger have described a growing airline industry which is becoming increasingly complex. This can mean a very large opportunity for those players that figure out how to tackle it,todelivertotheneedsoftravellers.italsosignifiesahighriskfor those unable to evolve based on market dynamics and technology trends. Technology will be a key enabler to foster future growth. IwouldliketosharewithyounowhowIbelieveAmadeusisuniquely positioned, both from a purely technological point of view, more importantly, thanks to our broad understanding of the global travel ecosystem, to help airlines deliver on their key objectives. Our goal is to support them in delivering a unique customer experience at every stage of their journey. 1

2 To conclude, I will summarise how Amadeus Airline IT will build on these opportunities to continue to deliver strong growth, and value creation. 1

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4 We can say today that we are the largest provider to the airline industry for Passenger Services Systems (PSS). We will be serving over1billionpassengersby2018,orwellover1.5billionifweinclude Navitaire. The reasons for our success, which have allowed us to more than double our passenger volumes since 2010, are twofold: Firstly, technology. Amadeus has always set the focus on innovation. It isacrucialpartofourdna.oursolutionsarestateoftheart. In 2000, when we started developing a platform for PSS based on opensystems,nobodythoughtwewouldbeabletodoit.someyears later,weareproudtoserveaverybroadrangeofcustomersacrossall geographies, all sizes and belonging to any Airline Alliance. We provide solutions to airline groups that operate with a variety of business models,andweareakeyenablerofmuchneededcollaborationinthe industry. We are now growing our PSS portfolio into the Low Cost Carrier (LCC) market, with the recent acquisition of Navitaire in January

5 We consistently bring innovation to the market. _ We were the first to deliver Electronic Miscellaneous Documents (EMD) technology to enable ancillary sales, following IATA standards. _ Wewerealsothefirsttodelivertherequiredbusinesssolutionsfor airlines to explore the merchandising opportunity with ancillaries and fare families, with a coherent offering across all customer touchpoints. _ On the technical side, we are leading innovation with Cloud Services, which allows our applications to be run anywhere in the Cloud: a real break-through that will be critical to support airlines future business evolution. Additionally, we understand our industry. Travel is at the heart of what we do everyday, and we help airlines understand key industry trends, traveller demands and therefore to address their main business challenges.weseeagreatopportunityforamadeusasakeyplayerin the travel and technology industry to support airlines in achieving their goals. Today we are pleased to share with you that Malaysia Airlines has decidedtocontractforouraltéapss.weexpecttosignthedealinthe near term. 3

6 So how are we putting all this insight into practice to become the Airlines trusted IT business partner? _ We have a deep understanding of airlines strategic business challenges, around three priority areas: revenue growth, brand loyalty and cost management. _ Based on our unique traveller insight, we position the traveller at the heart of airline strategy and determine how best to achieve airline priorities across the different stages of the traveller journey. _ Building on our PSS and Shopping& Retailing leadership position, and leveraging on our technology and innovation capabilities, we design our Airline IT portfolio to address airline business objectives. Merchandising and Personalisation, and Revenue Optimisation, are our key areas of diversification. We also continue to enhance our Shopping and Retailing solutions, with a particular focus on digital touchpoints, as well as in new PSS functionality, concentrating on major trends impacting the passenger such as Customer Self-Service and Disruption Management(Departure Control System). 4

7 Finally,Servicesisalsoakeyelementinouroffering.Thisishowwe support our customers through business consulting and process optimisation. There is a significant opportunity in the area of services and we plan to build on our strategic alliance with Accenture. Other technology evolutions, such as cloud Services and the serviceability of our solutions, will further enhance the value we deliver to our customers. 4

8 Forairlinestosucceedintoday sworld,astrongfocusisrequirednot only on cost efficiencies but also and particularly - on revenue maximisation. Airline revenue growth is frequently driven by delivering a unique customer experience which differentiates the airline from others and helps build customer loyalty and brand value. At Amadeus, our solutions portfolio is designed to address these primary business objectives. Revenues and brand loyalty _ Airlines need to identify new revenue streams. With our Merchandising solution, airlines can build the right offer for potential passengers in order to maximise revenue. The right merchandising strategy also of course impacts the airline s brand. _ Personalisation is key for airlines to deliver a differentiated and more valuable experience for its customers. With our Customer Experience Management tool, airlines have a comprehensive view 5

9 and understanding of their customers and are able to take action on these insights in the form of highly personalised offers. _ Amadeus BigDatacapabilitiesareatthecoreofthesetools,which allow airlines to enhance customer service and with it, customer satisfaction. _ Additional to identifying new revenue streams, airlines need to focus on optimising each revenue opportunity. Our Revenue Optimisation suite of products is based on the most sophisticated techniques in the industry and are the only solutions fully specialised in travel and integrated with the PSS. In addition, we offer our airlines a Financial Suite, helping them to streamline their financial systems to reduce revenue leakage. _ Finally, another way to grow revenue is by increasing sales conversions. With our state of the art Shopping portfolio, airlines can achieve this objective. Cost optimisation _ We continue to focus with our airline customers on cost containment, both cost of sales and cost of operations. Our Shopping products help airlines significantly reduce the cost of traffic acquisition. With our Flight Management module, airlines achieve huge savings via fuel efficiency; and with Disruption Management tools, cost savings can be obtained by reducing the impact of flight disruptions on operational costs. 5

10 I will now walk you through how we address the airlines business objectives, starting with Anytime Merchandising and Personalisation. Beyond offering ancillaries, the airline challenge is how to execute merchandising strategies successfully. Airlines must become retailers, and increase the value of the customer. The opportunity is big: we have estimated a merchandising revenue potential for the airlines of $130 billion. In order to unlock this potential, airlines must deliver a high quality customer experience. Customer personalisation is critical. As an example, we can help airlines increase ancillary revenues by 15%, thanks to our personalisation techniques. 97% of airlines are planning investments in Personalisation technologies in the next 3 years. We are the industry leaders with Amadeus products like Ancillary Services and Fare Families, contracted already by more than 100 airlines(140 if we include customers that have contracted these solutions for either their direct channel or indirect channel as well). Beyond these successful solutions, Amadeus has recently launched Amadeus Anytime Merchandising. This enables airlines to take control, to create and push real-time, personalised offers for travellers, consistently across all 6

11 channels. Our merchandising strategy supports any distribution strategy or channel mix. Together with our Customer Experience Management solution, we provide airlines with an end-to-end solution to manage and personalise: every customer (not just frequent flyers or corporate travellers); every step of the traveller journey (full customer lifetime, not just at booking time) and; fully (not just the tailoring of some services). As a result, airlines will address all of their business objectives with: _ Increased revenue from conversion, at a lower cost (thanks to personalised interfaces). _ Increased upsell revenue (thanks to personalised offers, banners, etc.). _ Improved brand perception (thorough better and quicker service delivery). Our Merchandising and Personalisation suite is unique in the industry. We are able to integrate merchandising logic at any step of the shopping process. We are the only provider to personalise servicing and handling of post-sales activities (e.g. case of disruption) and to simultaneously offer a multi-channel approach(at check-in, with Travel Agencies, etc.). This is possible thanks to integration with other systems. Our Travel Intelligence(TI) expertise is a key element of our merchandising strategy, as our solution is uniquely able to leverage data from all traveller interactions. YouwillalsoseeIATANDContheslide,aspartofouroffering.Inorder to merchandise effectively many airlines are requesting NDC-XML, as it is a richer standard. Amadeus is committed to NDC for the simple reason that we are committed to supporting our airline customers to be successful. We have been piloting NDC with airlines such as Qatar, American Airlines, Delta, Air Canada and United Airlines. We will be delivering an NDC interface that is channel agnostic. We are very excited about the opportunities that Anytime Merchandising and Customer Experience Management will bring, and we are very pleased to announce today the signature of Avianca, a major Latin American airline as our launch pilot for the Amadeus Anytime Merchandising Platform. We are engaged in discussions with many other airlines. 6

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13 Revenue optimisation is another of our key areas of innovation. In addition to finding new revenue streams, airlines can increase their top line through revenue optimisation. This is especially important in the current landscape, where there is increased complexity due to the rise in online shopping, mobile channels and the proliferation of multiple traveller touchpoints. Our Revenue Management solution is the most sophisticated in the industry. It helps optimise the results offered by the airline for each shopping request. As a result, airlines can maximise the revenue potential in every transaction. Simulation results demonstrate a 5-7% revenue increase for airlines that move to our solution. We are extremely proud about the recent signature of Singapore Airlines, an industry reference in the Revenue Management space. Singapore will be switching to the Amadeus solution from their current provider. Beyond Revenue Management, the agreement also includes a first version of Dynamic Pricing, a product in which we are also investing. 8

14 Our Dynamic Pricing solution calculates the optimal price to be presented to each consumer, taking into account real-time shopping session information(e.g. trip context) and real-time market data(e.g. competitor s offer). We are very excited about this industry-first solution. It has already been recognised by a prestigious industry body (AGIFORS) with an award. Being first in this highly innovative area, with Singapore Airlines as a secured customer, puts us ahead of the market. Our Financial Suite launched in the third quarter of 2015 combines Revenue Integrity, Revenue Accounting and Payment into a streamlined solution, and is the only next-gen system in the industry. By tracking all passenger sales and revenue performance in real-time, we deliver a huge impact on our customers cash flows, enabling more informed and better strategic decision making. Our Revenue Integrity product protects airlines against revenue leakage due to, for example, fraud, and is proven to improve revenue between 2-4%. It is important to mentionthatourfinancialsuitecanalsobesoldonastandalonebasis to non-altéa customers. In summary, our revenue optimisation solutions do not only support our customers revenue objectives, but also cost management, mainly through processing and availability calculation costs. They also support customer experience and brand loyalty by delivering a consistent customer experience across channels through improved results accuracy. 8

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16 ShoppingandretailingisakeystrengthofourAirlineITofferforboth the Direct and Indirect channels. They are core to our Digital Solutions portfolio. Digital strategy is critical for airlines to drive brand loyalty and revenues. We offer a highly scalable and reliable platform enabling an airline to grow in its direct business and supporting its promotional efforts. Amadeus search and shopping tools are a key differentiator of our Digital strategy. Our shopping portfolio ensures the lowest possible acquisition costs and maximum conversion rates. No other industry player delivers Amadeus level of accuracy or findability of lowest flight prices. In addition, we continue to invest in a next-gen shopping platform to bring significant value with new levels of transaction speed and shopping accuracy, increasing an airline s ability to convert traffic to bookings and thereby reduce acquisition costs. Shopping is also an enabler of merchandising, particularly in the area of offer creation. Airlines are able to integrate merchandising logic at any step of the shopping process, delivering control to truly manage 10

17 their shopping strategies and increase the ROI of their marketing expertise. Wealsohavethelargestairlinebookingengineintheindustry,usedby over 110 airlines to power their websites. We bring the same functional richness of the Amadeus Retailing Platform to all airline digital touchpoints. Serviceability Other than investment in product functionality, we are also investing significantly in our flexibility and serviceability, offering wider access to our platform. Amadeus provides modern APIs and frameworks for third party development, allowing airlines to partner with other nontraditional players(such as service providers, software or app vendors) to enable innovation and new business opportunities such as revenue sharing. Sales channel optimisation and direct connect AsanITbusinesspartner,weunderstandthatoneoftheairline smain business objectives is to optimise their sales strategy across all channels and the profitability of each and every channel: both direct and indirect (the GDS), and including Direct Connect. As part of our Altéa offering, airlines have (and have had for many years) the technology and functionality available to distribute their content directly to intermediaries(tmcs, OTAs, tour operators) or directly to users such as Corporates. In addition, our Direct Connect functionality helps airlines to effectively manage this direct channel. Wearewellpositionedtosupportairlinesinthisbusinessneed,andwe see this as an additional revenue opportunity. In April 2016, our recent analysis on growth in Shopping and Retailing was commented on by Tnooz, the respected travel industry technology mediasource: Amadeushaslookedatthedigitalbusinessof50ofits top performing airline customers to reveal gains not only in passenger volumesbutalsoticketvalue.15%growthinpnrvolumeaswellasa yield increase of almost 9% year-on-year for those carriers using Amadeus technology and believes merchandising is playing a significant role. 10

18 Sowehavegonethroughhowwesupportourairlinesintheirneedsto increase revenues, brand and customer loyalty and cost management. TheseareallimportantsystemsthatsitontopofthePSS,eitherAltéa or in some cases other third party systems. But of course, we also continue to enhance our PSS, again with a particular focus on the major trends that are impacting passengers, in particular customer self-servicing and disruption management. Disruption Management Disrupted operations can have a significant impact on airline costs. The United States Federal Aviation Administration estimated a total cost of 1.3 billion year for all airlines. In 2010, IATA estimated revenue lossesofusd1.7billionduetothevolcanicashcloudiniceland. Disruption is also a significant pain point for airline customers. Managing disruption when it occurs is another priority for airlines. 73% of airlines plan to offer disruption management solutions via mobile by Amadeus has innovated to solve this problem by allowing airlines to 11

19 proactively manage disruptions with passengers through their mobile devices. In the near future we will also enable more efficient recovery from disruption, with automatic re-booking technology to empower passengers to choose relevant options using kiosks and mobile self service solutions. Amadeus has also launched its Schedule Recovery product with Qantas as a launch customer. Schedule Recovery provides optimised flight rescheduling in case of disruption, taking into account operational constraints such as passenger connections, airport restrictions, air traffic control slots, crew availability, maintenance, etc. Estimations of cost savings derived from using this tool, performed together with some of our large customers, showed savings at between 10 million and 20 million per year, even before including internal savings on maintenance of the legacy technology product. It is another great example of how we leverage Business Intelligence in our airline solution portfolio. Our next innovation is Amadeus Passenger Recovery, which offers a one-step re-accommodation process to disrupted passengers. It takes all passengers simultaneously into account, enabling the airline to optimally re-accommodate passengers in bulk, in case of mass disruption. This is an agile end-to-end solution, fully integrated with Altéa PSS, and we are excited to announce that Swiss International Air Lineshassignedupforthissolutionasaourpilotcustomer. Departure Control Systems(DCS) In addition to Disruption Management, I should also mention our DCS Suite (both Flight Management and Customer Management) which is also experiencing significant growth, particularly with non-altéa customers being sold as standalone modules. Air Europa, Virgin Australia and Air Transat have signed to use our Flight Management functionality as a standalone solution. 11

20 Beforewemoveon,Iwouldliketocommentonourexpansionintothe LCC segment through our acquisition of Navitaire, an exciting strategic move, bringing us a complementary product and customer base, as well as very valuable expertise. Navitaire has close to 50 clients worldwide including some of the fastest growing, successful and innovative airlines in the world such as Air Asia, Ryanair, IndiGo, Spice Jet and Vueling. Navitaire brings us a strong presence in the faster growing airline segments of hybrids and LCCS. Webelievethatwenowhaveacomprehensivesuiteofsolutionsand attractive value proposition for all airline segments. As we enhance the Navitaire platform with Amadeus functionality, including more sophisticated distribution capabilities, we will better support the hybrid carriers strategy and business needs, and therefore support the retention of Navitaire customers even as their business model evolves. This will bring upselling opportunities through the sale of Amadeus components to Navitaire customers. We will offer a smooth, low risk, low cost migration from Navitaire s 12

21 New Skies to Altéa, to hybrid carriers considering a change in business model. We can also better address parent/subsidiary group needs, thanks to a dual PSS offering with advanced integration. This will include full PNR servicing capabilities across a Group s airlines, as well as improved availability and shopping capabilities across systems. We believe that cost savings will be achievable through technology synergies such as data caching, cloud services or network connectivity. In terms of Distribution, we may see additional bookings volumes thanks to our technology which can enhance the LCCs ability to distribute through the indirect channel if they choose to do so. To recap, the Navitaire acquisition brings us a leading brand in its segment, talent and deep LCC segment understanding and expertise in key areas such as merchandising. WeareconfidentonthegrowthwecandeliverinourPSSbusinessnow across LCCs, Full Service Carriers and Hybrid Airlines (Altéa/New Skies).WehavebeenverysuccessfulinthePSSspaceandexpectto continue to deliver attractive growth supported by the strengths of both Altéa and Navitaire. 12

22 Tofinish,I dliketoshowyouhowthestrategichighlightsthatwehave shared with you today will contribute to create value over the next three years and beyond. Taking into account all the opportunities discussed today, we estimate our total addressable market in Airline IT to be in the range of 8 billion in We believe that we have ample margin to increase our share of the total addressable market, as we address business opportunities beyond the core PSS, upselling our solutions and delivering additional valuable services to our existing and new customers. More specifically, we plan to deliver growth through the following: Growing our core PSS business The PSS business remains attractive, enhanced by Navitaire strengths, with a total potential market of approximately 2 billion (including disruption management) in

23 While there are fewer large and medium-sized opportunities, our Altéa solution is also very well suited for smaller airlines, mainly thanks to our community platform. We stand out from our competitors as we have an attractive proposition for these smaller carriers that will enable us continue to gain market share. Upsell opportunities, both to existing Altéa customers and non- Altéa Upsellingisanotherkeyareaofourgrowthstrategy.Asyouknow,this is today already a reality, as our Altéa PSS customers have contracted our ecommerce solutions (shopping and retailing), Revenue Accounting, Revenue Integrity or Ancillary Services. The opportunity is much greater, as we diversify our portfolio of available solutions. Revenue Optimisation, Merchandising and Digital are all areas that we are actively discussing with our existing customers. Furthermore, all of our solutions are designed to work on a standalone basis, independent from our core PSS. We have already been successful in selling some standalone components to new customers and markets, such as ecommerce and revenue integrity solutions to Chinese and US carriers who do not have their PSS contracted with Amadeus. Flight Management is another module that is successfully deployed with non-pss customers. We are confident that we will gradually extend our relationship with non-altéa customers with many of the opportunities discussed today. Finally, even if smaller in size,wealsohaveanopportunitytoupsellaltéamodulessuchasdcs for example, to Navitaire customers. We estimate the total market opportunity for upsell, both to Altéa and non-altéa customers, at approximately 2 billion in Services In addition to IT solutions, we also provide a number of Services to support our customers. We intend to increase the focus on this area and leverage partnerships with major IT service providers, particularly with Accenture, with whom we have signed a strategic alliance. Our expanded services offering covers: Business Consulting, Custom Software Development (to adapt to the specific needs of our airline customers), Business Process Outsourcing and IT Services(to propose fully operated solutions) and Hosting Services. For example, we will support airlines with Consulting Services to help them with the execution of an optimal merchandising strategy and to boost their ancillary revenues. Examples include carriers like Air 13

24 Canada, Qantas or Lufthansa, who use Amadeus bespoke development to adapt their booking engines so that they can implement their own retailing strategies. We estimate our total addressable market in this areaat 1billionin2018.Itcouldpotentiallybelargeraswemovein the future into the digital space. Other Business Opportunities There are a number of other longer term opportunities which we have identified. For example, we are uniquely positioned to lead in the Digitalisation of the airline industry and we are determined to support ourcustomersonthisexcitingjourney.aswecontinuetoevolveinthe way our customers and third parties can interact with our platform, there will be an opportunity to extend our revenue and business through ecosystem partners. Longer term, we are also looking at the opportunity linked to data monetisation through analytics or advertising-based models. In Airline IT, we are passionate and fully dedicated to delivering to our customers business objectives. Our greatest value we believe is to enable our customers to deliver a truly end-to-end, seamless, travel experience to their customers. 13

25 IwouldnowliketointroduceRandySloan,CIOofSouthwest,whois here today, in person, to speak to you about one of the most innovativeairlinesintheworld,onwhytheycametoamadeusandon howwesupporttheminachieving theirbusinessgoals. Itisagreat privilegetohaverandyhereandwethankhimforhistime.randyis CIO at Southwest. 14

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33 Thank you. 22