Hactl IT Transformation Journey Presented by : Thomas Lee, IT Operations Manager Date: 19 August Hactl Private and Confidential, Version 1.1

Agenda  Introduction Hactl and SuperTerminal 1 (ST1) Hactl’s Vision, Challenge & Solution  Our Problem  Our Strategy 3-years Transformation Journey  Our Transformation Steps to Success  Surpassing Every Challenge  Q&A

Introduction

Introduction Video <click to view the video> <click to view the video>

One of the world’s leading air cargo terminal operators Started operation in Kai Tak Airport in 1976, growing hand- in-hand with Hong Kong Relocated our headquarters to Hong Kong International Airport in Chek Lap Kok in 1998 Serves over 90 international airlines and 1,000 freight forwarders Handles over 70% of Hong Kong International Airport’s tonnage throughput Historical view of Hactl’s Terminal 1 & 2 at old Kai Tak Airport Hong Kong Air Cargo Terminals Limited

SuperTerminal 1 is the world’s single largest air cargo terminal Total floor area : 390,819 sq.m Initial investment : US$1 billion Potential handling capacity : 3.5 million metric tonnes p.a. Vertical design to optimise the use of space Extensive use of industrial automation and I.T. systems to ensure maximum handling efficiency Aerial shot of Hactl’s SuperTerminal 1 at Hong Kong International Airport Hong Kong Air Cargo Terminals Limited

Our shareholders are committed to maintaining and strengthening HKG’s hub status Our Shareholders

To be the preferred air cargo terminal & logistics support service provider in Asia Our Mission

Total number of staff at Hactl: 2,628 (data as of July 2010) (2 Staff) Information Services Department Mgr: 21 / Non-Mgr: 107 (128 Staff) (128 Staff) Logistics Services Department Mgr: 6 / Non-Mgr: 272 (278 Staff) Managing Director’s Office Mgr: 1 / Non-Mgr: 3 (4 Staff) PersonnelDepartment Mgr: 3 / Non-Mgr: 12 (15 Staff) Engineering Department (187 Staff) Mgr: 4 / Non-Mgr: 183 FinanceDepartment Mgr: 2 / Non-Mgr: 14 (16 Staff) Marketing & Customer Service Department Mgr: 6 / Non-Mgr : 7 (13 Staff) Service Delivery Department Mgr :12 / Non-Mgr: 1975 Mgr :12 / Non-Mgr: 1975 (1,987 Staff) Organization Structure

Total trade value by different modes of transportation Total trade volume by different modes of transportation Source : Hong Kong Census & Statistics Department, April 2010 The Hong Kong Air Cargo Hub Hong Kong total trade figures 2009 :

Hactl’s Vision, Challenge & Solution Vision To be the preferred air cargo terminal in Asia To enable Hong Kong’s position as a leading international air cargo gateway to China IT Challenge IT Solution High IT visibility to give IT Transformation better business decision Simplicity to reduce total IT cost Promote IT Service to a more business- oriented culture Source : Airports Council International Hong Kong Seou l Shanghai Tokyo Frankfurt Singapore Miami Anchorag e Alaska Taipei Dubai 3, % 2,457 2,051 2,012 1,5681,580 1,721 1,920 1,993 1,453 ‘000 tonnes +14.6%+9.5% +17.0% +10.5% +7.0% +0.1% +30.7%+22.3%+2.9% Source : Airports Council International Hong Kong Seou l Shanghai Tokyo Frankfurt Singapore Miami Anchorag e Alaska Taipei Dubai 3, % 2,457 2,051 2,012 1,5681,580 1,721 1,920 1,993 1,453 ‘000 tonnes +14.6%+9.5% +17.0% +10.5% +7.0% +0.1% +30.7%+22.3%+2.9% International Air Cargo Tonnage & Year-on-Year Growth (Top 10 cities) 12 months ending April 2010 HactlTonnage

Our Mission

Mission Mission Create & exploit business opportunities Balancing Stability & Agility Stability of IT Operations Agility of IT Solutions Keep business running TechnologyfocusBusinessfocus IT at back Office (Respond) IT at the front line (Initiate) Protect Acquire Simplicity is the Key

Our Operating Principles

Operating Principles FOCUS on our priorities SPEED in delivery of our commitment LEVERAGE on our strength & partners DISCIPLINE in staying our cause

Our Structure

ISD Organization Structure Total: 186 staff

Our Problem

  The 3rd Terminal   Competitive Advantages?   How do we manage our IT cost effectively?   How to minimize IT environment complexity?   How to enhance operating efficiency and effectiveness?   How to optimize the value of our IT services portfolio?   How do IT staff with better business knowledge contribute more? Our Problem

Our Strategy

ITSMRoadmap Promote IT Management to a business-oriented management with improvement targets in terms of process, people and integrated technology adoption. Manage Change Manage Change Financial Control Financial Control Transparency & Risk Management Transparency & Risk Management Business Management (not IT-centric) Business Management (not IT-centric)

Transformation Jounrey

Our Transformation Steps to Success

BusinessManagementTechnology IT Transformation delivers benefits across Business, Management and Technology High IT visibility to give better business decision Centralized CMDB and integrated database simplify IT service management Integrated platforms and well-executed processes aligned to business to ensure desired outcomes Simplicity to reduce total IT cost Consolidation and standardization reduce complexity and management efforts Server Consolidation, standardization and virtualization provide flexibility and mobility Clear cost-benefit analysis Focus on quality and time delivery Standard tools enhance decision making Free up IT staff and allow IT staff with better HACTL knowledge to contribute more Allow resource mobility and flexibility in “sustaining IT & continuous improvement” to “innovation” Collaboration allows best practice sharing and knowledge management

  Actively manage and communicate change: Strengthen change management and communication strategy critical for success   Establish PMO for governance: Provide framework and implement controls for tracking and reporting   Simplify through standardization: Standardize datacentre architecture design, infrastructure, hardware, software and tools.   Enhance operating efficiencies: Leverage integrated IT platforms and automation tools Implement processes aligned to business to ensure desired outcomes Our Transformation Steps to Success

Surpassing Every Challenge We are a technology driven cargo terminal We address to customers' expectation We create synergies with partners We provide innovative solutions We excel the excellence We lead the industry We grow with Asia Pacific logistics industry

Thank You