2015 Analyst and Advisor Summit. Solutions for Air Travel and Transportation Olivier Houri, Global Head, Transportation

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1 2015 Analyst and Advisor Summit Solutions for Air Travel and Transportation Olivier Houri, Global Head, Transportation

2 Agenda Key Facts Sub-Industry Point of Views Case Studies Summary 2015 Unisys Corporation. All rights reserved. 2

3 Fast Facts 20% of world passenger boardings are processed though Unisys Passenger solutions Unisys airport solutions are used by over 100 airports worldwide Unisys cargo solutions are used by carriers that move over 25% of the world s air freight 2015 Unisys Corporation. All rights reserved. 3

4 Overview Unisys is a consistent service provider to the aviation industry with powerful credentials Solutions Unique Market Approach Passenger Services Systems Airport Passenger Facilitation Master Systems Integration Consulting Application Modernization We partner collaboratively with clients Airport Operations Mgmt Logistics Management Domain Knowledge Industry Experience Client Collaboration Deep understanding of airline and airport business and systems Security Mobility Cloud Many employees come from airlines, airports and travel related businesses Networks and Infrastructure Advanced Data Analytics End User Services Staff at client sites working with the airline and airport day in and day out 2015 Unisys Corporation. All rights reserved. 4

5 Unisys Transportation POVs Airline: The Future of Passenger Travel Cargo: Cloud Collaboration and Digital Commercialization of Air Cargo Airport: The Airport of the Future 2015 Unisys Corporation. All rights reserved. 5

6 Unisys Transportation POVs Airline: The Future of Passenger Travel Cargo: Cloud Collaboration and Digital Commercialization of Air Cargo Airport: The Airport of the Future 2015 Unisys Corporation. All rights reserved. 6

7 Future of Air Travel: Continued Innovation Modern consumer expectations continue to evolve and drive the business. Web, mobility, social networking have reached critical mass. Capturing traveler mindshare is on every player s agenda Unisys Corporation. All rights reserved. 7

8 Today: Selling Tickets vs. Merchandizing Products Product Consistency Product Differentiation Business Value + = Targeted offers Higher yield Ancillary sales Business objectives Solution requirements Changes by All Channels Value Creation Platforms Legacy PSS: higher unit costs; poor time to market; compromised capabilities + = 2015 Unisys Corporation. All rights reserved. 8

9 Unisys AirCore NextGen Passenger Systems Solution Customer-centric Use of consistent customer information Decisions and processes revolve around customer value and their preferences versus bookings INFORMATION General Information LOYALTY Customer Loyalty SPACE Inventory FLIGHTS Flight Data ROUTINGS Schedules Business flexibility Rules and parameters versus programming No limits (dates, names, record storage, etc.) Controls by market, by channel, etc. LOAD CONTROL Weight and Balance CUSTOMERS BOOKING Reservations Technical flexibility Entirely Java EE Service Oriented layered architecture Separate interface layer All functionality available through services REACT Schedule Change and Irregular Ops SEATS Seating DEPART Check-in and Boarding TICKETING Ticketing and Payment AUXILIARY 3 rd Party Solutions 2015 Unisys Corporation. All rights reserved. 9

10 Client Collaboration TravelSky Provide autonomy to largest airline clients while maintaining economies of scale/performance of overall hosting operations Replace legacy with modern AirCore applications in phases tied to airline business drivers and expansion into Asia market AirCore applications tailored to architecture and China market. AirCore source code/knowledge transfer 2015 Unisys Corporation. All rights reserved. 10

11 Client Collaboration Iberia Focus on introducing new revenue sources and cost savings through rapid delivery of surround applications and enhancements to legacy passenger system AirCore applications replicated across multiple revenue-generating surround solutions and AirCore inventory suite repurposed as proxy to provide multimillion savings in distribution costs Unisys Spain team design and build surround applications while global team develops core passengers systems 2015 Unisys Corporation. All rights reserved. 11

12 Unisys Transportation POVs Airline: The Future of Passenger Travel Cargo: Cloud Collaboration and Digital Commercialization of Air Cargo Airport: The Airport of the Future 2015 Unisys Corporation. All rights reserved. 12

13 Air Cargo (Freight) is a Global Driver of Trade Cloud Collaboration and Digital Commercialization Driving Transformation Client transformation required to capture market growth Technology is driver for change Air Freight Moves Over Third of Global Trade Value $6.8 Trillion worth of goods, 35% of total trade by value, will be transported around the world by air 1 World Air Cargo to Double By 2033 World air cargo traffic will increase from billion RTKs in 2013 to billion in Client challenges center around Flexibility, On Time Delivery/Reliability and Cost-Effectiveness IATA aiming to cut average transit times by up to 48 hours by Modernized processes (e.g., e-freight), diversification of services, and improving quality and reliability Cloud Collaboration and Digital Commerce Driving Rapid Transformation e-awb (Airway Bill) penetration to up to 28.8% (45% target by end of 2015) 4 Cloud-based models speed technology change and enhancements 5 and electronic-supply chains enable more dynamic and optimized business 6 Unisys positioned to drive industry change Unisys solutions used by clients who move about 25% of the world s air cargo 1. "Five-year Forecast Shows Improved Outlook for Air Cargo." International Air Transport Association, 22 Oct Web. Aug "World Air Cargo Traffic Growth Detail." World Air Cargo Forecast Boeing, Web. Aug "Five-year Forecast Shows Improved Outlook for Air Cargo." International Air Transport Association, 22 Oct Web. Aug "E-AWB Take-up Not Fast Enough Warns IATA." Air Cargo News, 28 July Web. Aug "Cloud Collaboration, Sensors and Digital Commerce Are Driving Rapid Transformation of Air Cargo Carriers into Dynamic, Data-Driven Businesses, Reports Unisys." Yahoo Finance. Yahoo, 28 May Web. Aug IBID Unisys Corporation. All rights reserved. 13

14 Solutions Used by Clients who Move About 25% of the World s Air Cargo Selected LMS license clients Logistics Management System (LMS) Selected LMS Cloud clients Selected LMS license clients Selected CPS/ISM clients Our air cargo enterprise system Cargo Revenue Accounting (CRA) Our newest application Selected LMS license clients Cargo Portal Services (CPS) Leading multi-carrier and own brand e-business portal In-transit Service Manager (ISM) Cargo 2000 CDMP 3rd party revenue optimization, postal mail, devices, etc. Selected LMS Cloud clients Selected CPS/ISM clients 2015 Unisys Corporation. All rights reserved. 14

15 Modern, Modular and Integrated Technology to Achieve Control, Value and Compliance Logistics Management System Flights Routings Rating Sales & AWB Management Booking & Inventory Claims Warehouse Revenue Accn tg Customs & Security Archive ULD Control Data Warehouse Reduces change costs and deployment time by up to 33% Shared utilities, rules engine, interfaces The latest technologies 2015 Unisys Corporation. All rights reserved. 15

16 Work Smarter with More Integration Access When, Where and How You Want It PC, Tablet, Smartphone 2015 Unisys Corporation. All rights reserved. 16

17 Cloud Offerings for Speed and Agility "I hired some brilliant IT people in companies I have ran. I have spent millions of dollars on IT solutions we developed in-house. Most never came to fruition. In hindsight I would have been farther ahead by buying IT solutions already available. The overall cost is less and the time to have an operational system is much quicker." Jim Crane, founder of Eagle Global Logistics Keynote at Air Cargo 2015 conference 4 months 6 months 10 months 2015 Unisys Corporation. All rights reserved. 17

18 Enhanced Customer Experience with Online Self Service Booking Portal: Scandinavian Airlines Cargo Increased self service with measurable reductions in call center cost Reduced delays in invoicing and payments and prevented incorrect accounting Increased operational flexibility at lower costs resulting in more satisfied clients and higher margins Our new Booking Portal developed in close cooperation with Unisys has helped us increase collaboration within the air freight value chain by helping us provide pricing transparency. It is clear that we have planted an important seed that will innovate our industry. Leif Resmussen, President and CEO, SAS Cargo Group 2015 Unisys Corporation. All rights reserved. 18

19 Unisys Transportation POVs Airline: The Future of Passenger Travel Cargo: Cloud Collaboration and Digital Commercialization of Air Cargo Airport: The Airport of the Future 2015 Unisys Corporation. All rights reserved. 19

20 Changing Role of the Airport Operator Airports can play an active role that goes far beyond being a landlord for the premises. To help achieve airport of the future vision, the airport operator to take on a more active role by providing key functionality and technologies on top of the basic infrastructure. Growing Privatization 450 airports worldwide with private-sector participation either in management or ownership. Airports remain attractive assets. *" Brazil Raises $9.1 Billion in Privatizing 2 Airports 1,2 LCCTs Stagnation Low Cost Airport Terminals (LCCT) still popular in APAC but declining in significance in Europe *3 1. Aviation Economics; 2. NY Times ; 3. CAPA; 4. SITA 2012 Airport IT Trends Collaboration Complexity 67% of airports are planning to share data with other key stakeholders *4 Disruptive Technologies Impact 2015 Unisys Corporation. All rights reserved. 20

21 Airport of the Future Transformation Challenge Challenge: Improve the passenger experience and gain operational efficiencies while enabling revenue opportunities and squeezing more movement AND passengers through stretched facilities. Passenger Facilitation Airport of the Future Widespread, Present Future Phase 1 Future Phase 2 Print at home boarding pass Mobile Boarding Pass/Social Check-In NFC Boarding Swipe Airport Kiosk Print at home bag tag Permanent Board Pass/Bag Tag Agent assisted Bag Drop Self Service Bag Drop NFC Promotions Airline Specific Counters Common Use Counters NFC Automatic Check-In Airport Stationary Agents Mobile Enable Roaming Agent Big Data: Airport Resources, Ops, PAX Flow Big Data: Baggage Ops, Airport Security Operations AODB Management and safety Automated Alerts Indoor Location Tracking Location Aware Baggage WiFi Implementation Geo-Location NFC IT INFSTR Common Use Systems IT Infrastructure Refresh / Airport Systems Integration Airport Authority Cloud Services On Premise Apps Managed Services, Cloud SaaS Apps Hosted Cloud Security Logical and Perimeter Data in motion and Communication Endpoints Identity/Device Based, Secure Partitioning Approach: Transform the door to door experience by empowering passengers and staff through phased introduction of updated operations and disruptive technologies Unisys Corporation. All rights reserved. 21

22 Unisys Airport Solutions Passengers Operations Security Local Check-in Internet Check-in Load Planning Common Check-in Common Bag Drop Common Load Planning Common Boarding Control Common Use (CUSS) Loyalty Check-in Agent Mobility Home Printed Bag tags Fast Bag Drop Operational Management Operational Database (AODB) Flight Information Management Messages & Alerts Information Access Management Information Pricing & Billing Emergency Control Message Broker (middleware) FIDS Resource Management Baggage Reconciliation Passenger and Staff Access Passenger Tracking Passenger Self Service Fast Lane Management Lounge Access Border Control RFID Bags Secure Messaging Perimeter Security Surveillance Control Mobility Cloud Networks & Infrastructure MSI & Consulting Services 2015 Unisys Corporation. All rights reserved. 22

23 Unisys Airport Presence 2015 Unisys Corporation. All rights reserved. 23

24 Summary Market is expected to double in volume in the next 20 years but systems are antiquated Airlines and airports are in a position to invest We expect significant transformation in the next five years Unisys is well-positioned to drive the transformation 2015 Unisys Corporation. All rights reserved. 24

25 2015 Analyst and Advisor Summit

26 Expanding Self-Service Bag Drop at Rotterdam The Hague (RTM) Airport with Modern Fast Bag Drop Technology Aviapartner For the client, having one system across all airlines allows for a consistent bag check experience Ground Handling Productivity: Reduced the total working hours for passenger handling by 10% Passenger Facilitation: Reduced 30 % of queue time at the check-in/bag drop in combination with use of self service kiosks Customer Service: Improved customer satisfaction by 7% 2015 Unisys Corporation. All rights reserved. 26

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