PI 965 ICAOIATA REGULATIONS CHANGES 1 ST APRIL

PI 965 ICAO/IATA REGULATIONS CHANGES -1 ST APRIL 2016 LITHIUM BATTERIES PI 965 – IATA REGULATION & DHL EXPRESS POLICY UPDATE EXTERNAL USE March 2016 1 Global COG | Singapore | March 2016

AGENDA q Executive summary q DHL Express PI 965 policy update q PI 965 guide to IATA changes 2016 q Checklist of actions for approved shippers q Technical deck q Contacts 2 Global COG | Singapore | March 2016

EXECUTIVE SUMMARY Scope 1 April 2016 § Significant regulation changes for Lithium Ion Batteries which are shipped as Loose / Bulk which are classified as “PI 965” (UN 3480) ICAO Decision § Full ban of all sections of PI 965 on passenger aircraft (announced 22 nd Feb) § Other regulation changes for the preparation and shipping of this commodity (announced October 2015 and implementation date confirmed in January 2016. ) Customer approval § DHL DG approval policy remains in place, limiting carriage of PI 965 to approved customers only. § Due to the impact of passenger (pax) aircraft ban for PI 965, DHL Express has completed a global review of existing approvals and active shippers of PI 965. § Your DHL Express account and shipper sites have been identified as active and with existing approvals for PI 965 section II. § This will mean that your shipper sites must be enabled to ensure 100% compliance to both the IATA 1 st April regulations and the DHL Express requirements as outlined in the following slides. 3 Global COG | Singapore | March 2016

IATA REGULATION CHANGE SUMMARY IATA Regulation changes for loose/bulk PI 965 Lithium ION batteries Lithium Ion Batteries contained in equipment Global COG | Singapore | March 2016 UN 3480 PI 965 UN 3481 PI 966 UN 3481 PI 967 Lithium Ion Batteries packed with equipment Lithium Ion Batteries Loose/Bulk Lithium Ion Batteries packed with equipment Lithium Ion Batteries contained in equipment NO IMPACT 4 Lithium Ion Batteries Loose/Bulk From 1 st April 2016 REGULATORY CHANGE UN 3480 PI 965 Prior 31 st March 2016

AGENDA q Executive summary q DHL Express PI 965 policy update q PI 965 guide to IATA changes 2016 q Checklist of actions for approved shippers q Technical deck q Contacts 5 Global COG | Singapore | March 2016

DHL GLOBAL RESTRICTED COMMODITY PI 965 DG POLICY It has been decided by DHL Express that as of the 1 st April 2016, loose lithium ion batteries prepared in accordance to PI 965, will only be accepted from specifically approved customers. • These approved Account holder and shipper sites are required to have both physical shipment handling processes and DHL e. Com/IT capabilities, which meet IATA regulations and DHL procedures. • Any new requests for Account holder approval must follow the standard DHL Express Dangerous Goods approval processes; with Customer Operation and/or the Restricted Commodity groups. Should you have any further queries related to your Account and shipper site approvals, please contact your DHL Express Account Manager. 6 Global COG | Singapore | March 2016

AGENDA q Executive summary q DHL Express PI 965 policy update q PI 965 guide to IATA changes 2016 q Checklist of actions for approved shippers q Technical deck q Contacts 7 Global COG | Singapore | March 2016

WHAT ARE THE PI 965 SECTIONS? Key definition of PI 965 sections, which will be dealt with throughout the document. Primary focus for DHL approved PI 965 shipper 8 Global COG | Singapore | March 2016 Secondary focus (full DG) Prohibited DHL network

IATA REGULATION PI 965, 1 ST APRIL 2016 IATA regulation changes effective on the 1 st of April 2016 PI 965: Applicable Description 1 State of Charge (So. C) to be ≤ 30% (PI 965 all sections) how much charge does the battery have 2 single piece shipments only, i. e. 1 piece = 1 waybill 3 No multi-piece section II shipments No overpacking of section II packages single section II package per shipment 4 Separate presentation of section II packages can not be presented consolidated 5 Forbidden as cargo on passenger aircraft can only be transported on cargo aircraft or by ground Additional requirement announced on the 22 nd of Feb 2016 9 Global COG | Singapore | March 2016 PI 965 Announced October 2015 22 nd Feb 2016

1 PI 965 CHANGES- 1 ST APRIL SUMMARY Maximum state of charge (how much charge does the battery have) ≤ 30% Prior 31 st March 2016 1 State of Charge (So. C) to be ≤ 30% (PI 965, all sections) So. C ≤ 30% So. C > 30% From 1 st April 2016 So. C ≤ 30% X So. C > 30% how much charge does the battery have No limitation on battery state of charge 10 Global COG | Singapore | March 2016 Maximum state of charge 30%

2 PI 965 CHANGES- 1 ST APRIL SUMMARY Multipiece PI 965 section II not allowed; shipments MUST be prepared either as multiple 1 piece section II shipments, or as section IB (full DG) Prior 31 st March 2016 2 From 1 st April 2016 OPTION A No multi-piece section II shipments single piece shipments only, i. e. 1 piece = 1 waybill A. Multipiece PI 965 shipments prepared as several 1 piece section II shipments No limitation on number of section II packages per shipment OPTION B B. Multipiece PI 965 shipments are prepared as section IB (full DG) 11 Global COG | Singapore | March 2016

3 PI 965 CHANGES- 1 ST APRIL SUMMARY Multiple section II packages per overpack not allowed – packages MUST be prepared as multiple piece section II shipments or as section IB (full DG) Prior 31 st March 2016 3 No overpacking of section II packages From 1 st April 2016 OPTION A single section II package per shipment A. Multiple PI 965 packages prepared as 1 piece section II shipments No limitation on no of section II packages per overpack OPTION B B. Multiple section II packages per overpack prepared as section IB (full DG) 12 Global COG | Singapore | March 2016

4 PI 965 CHANGES- 1 ST APRIL SUMMARY Section II packages not permitted within multi-piece shipments – need to be prepared as separate shipments; i. e. 1 piece equals 1 DHL Waybill Prior 31 st March 2016 From 1 st April 2016 4 Separate presentation of packages can not be presented consolidated No constraint from having section II packages as part of a multi-piece shipment 13 Global COG | Singapore | March 2016 Section II packages not permitted within multi-piece shipments even where multi piece is non PI 965– need to be prepared as separate shipments; i. e. 1 piece equals 1 Waybill

5 PI 965 CHANGES- 1 ST APRIL SUMMARY All PI 965 shipments – mandatory use of Cargo Aircraft Only (CAO) label and wording on Waybill. Note: These CAO labels are standard IATA DG labels and are available through all DG packaging/labelling suppliers. Prior 31 st March 2016 Ac c doc omp um any ent ing 5 Forbidden as cargo on passenger aircraft From 1 st April 2016 Ac c doc omp um any ent ing can only be transported on cargo aircraft or by ground No requirements for Cargo aircraft only labelling or waybill declaration 14 Global COG | Singapore | March 2016 All PI 965 shipments mandatory use of Cargo Air craft only label and wording on Waybill.

PREPARING PI 965 AS SECTION IB INSTEAD OF SECTION II Considering the new regulatory restrictions for loose lithium ion batteries or cells prepared in compliance with PI 965 section II; are your shipping requirements feasible under this IATA Packing instruction? Do you still require to ship Loose lithium ion batteries as: • PI 965 packages as a multi-piece shipment? • Multiple PI 965 packages within an overpack? If there is a requirement to ship large quantities of loose lithium ion batteries, these will only be permitted to be overpacked or shipped as multi-piece shipments if: 1. 2. Prepared as PI 965 section IB – i. e. fully regulated Class 9 dangerous goods. Prepared by Approved DHL Account/shipper sites Shipping as PI 965 section IB imposes a number of additional requirements on how shipments of loose lithium ion are prepared, on the training requirements for the persons involved in preparing the shipments and on the DHL Express DG approval processes; as detailed on the following pages. 15 Global COG | Singapore | March 2016

WHAT ARE THE PI 965 SECTIONS? Key definition of PI 965 section IB Primary focus for DHL approved PI 965 shipper 16 Global COG | Singapore | March 2016 Secondary focus (full DG) Prohibited DHL network

IATA REGULATION PI 965, 1 ST APRIL 2016 IATA regulation changes effective on the 1 st of April 2016 PI 965 section IB: Applicable Description 1 State of Charge (So. C) to be ≤ 30% (PI 965 all sections) 2 3 how much charge does the battery have PI 965 section IB Announced October 2015 multi-piece shipments Over packing of packages No change for section IB in 2016 4 Separate presentation packages 5 Forbidden as cargo on passenger aircraft can only be transported on cargo aircraft or by ground Additional requirement announced on the 22 nd of Feb 2016 17 Global COG | Singapore | March 2016 22 nd Feb 2016

PREPARING A PI 965 SECTION IB There a number of mandatory extra requirements involved in preparing shipments as PI 965 section IB: Key PI 965 Section II requirements: o Contains <2 batteries or 8 cells o Rigid packaging o PI 965 statement on waybill o Lithium battery hazard label o An accompanying Lithium battery document Ac c doc omp um any ent ing New PI 965 requirements (all sections) o Cargo Aircraft Only label Da Additional PI 965 Section IB requirements: o Class 9 label o Waybill needs to list content as full DG (not section II) o Dangerous Goods Declaration o Shipper must hold IATA category 1 training certification o Other markings required by IATA such as UN number, proper shipping name & net weight. ng Go erous o De cla ds rat ion certified shipper 18 Global COG | Singapore | March 2016

AGENDA q Executive summary q DHL Express PI 965 policy update q PI 965 guide to IATA changes 2016 q Checklist of actions for approved shippers q Technical deck q Contacts 19 Global COG | Singapore | March 2016

CHECKLIST OF ACTIONS FOR APPROVED SHIPPERS (1/2) Key Customer logistics questions, to understand your PI 965 shipping requirements : 20 1. Has my logistic/operation completed due diligence to ensure the compliance to IATA PI 965 Section II meets my supply chain requirements? For example my quantities of battery per package do not suit PI 965 section II shipping and shipping as Section IB meets my requirement? Go to Q 8. 2. Are my required shipping accounts on the DHL Express approved list, according to which IATA Packing instruction to be used? 3. Is it confirmed that my shipment preparation software and waybill (e. Com tool, XMLPi, EDI) at all sites will be compliant before 1 st April? 4. Is it confirmed that all shipping staff will be trained on how to prepare shipments in compliance to the new IATA regulations & DHL DG policy before 1 st April? Global COG | Singapore | March 2016

CHECKLIST OF ACTIONS FOR APPROVED SHIPPERS (2/2) 21 5. Do all sites have stock of the required IATA Handling and Hazard labels available? (Cargo Aircraft Only (CAO) & Lithium Battery Label) 6. Are there any Shipping lane pairs which cannot be serviced by DHL Express after 1 st April? Has an alternate shipping approach been identified/decided for those locations. 7. Are all parts of our supply chain aware and acknowledge potential DHL Express transit time changes due to routing requirements to meet IATA ban on passenger aircraft? 8. Do I need to move from PI 965 Section II to PI 965 Section IB? This will need new DHL Express Dangerous goods approval if the shipper is not already approved for shipping full IATA DG. Global COG | Singapore | March 2016

PI 965 ICAO/IATA REGULATIONS CHANGES -1 ST APRIL 2016 TECHNICAL DECK LITHIUM BATTERIES PI 965 - REGULATION & DHL EXPRESS POLICY UPDATE Global COG | Singapore | March 2016 22 Global COG | Singapore | March 2016

AGENDA q Executive summary q DHL Express PI 965 policy update q PI 965 guide to IATA changes 2016 q Checklist of actions for approved shippers q Technical deck q Contacts 23 Global COG | Singapore | March 2016

ICAO/IATA INTRODUCTION- BACKGROUND The International Civil Aviation Organization (ICAO), is a specialised agency of the United Nations. It codifies the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth. The ICAO Council adopts standards and recommended practices concerning air navigation, including the development of regulations for air transport of hazardous materials that are based upon the UN Model but modified to accommodate unique aspects of air transport. The International Air Transport Association (IATA) is a trade association of the world’s airlines, consisting of around 260 airlines, primarily major carriers, representing 117 countries. IATA supports airline activity and helps formulate industry policy and standards, including the IATA Dangerous Goods Regulations (DGR). 24 Global COG | Singapore | March 2016 The IATA DGR (Dangerous Goods Regulations)

SUMMARY OF KEY IATA CHANGES FOR 1 ST APRIL 2016 A number of changes to the provisions for Lithium Batteries have been defined and approved with implementation date 1 st April 2016. Additionally, some clarifications of terminology have been defined in the 2016 IATA DGR. Details can be found at: http: //www. iata. org/lithiumbatteries 25 Global COG | Singapore | March 2016

KEY IATA CHANGES FOR 1 ST APRIL (1/3) 30% state of charge requirement 26 Global COG | Singapore | March 2016

KEY IATA CHANGES FOR 1 ST APRIL (2/3) Only 1 PI 965 section II package per shipment So multi-piece PI 965 section II shipments will not be possible PI 965 section II packages to be offered separately from other cargo 27 Global COG | Singapore | March 2016

KEY IATA CHANGES FOR 1 ST APRIL (3/3) PI 965 forbidden as cargo on passenger aircraft No more than 1 PI 965 section II package per overpack 28 Global COG | Singapore | March 2016

OTHER KEY IATA & ICAO NOTICES IATA Significant Changes and Amendments to the 57 th edition (2016) ICAO addendum no 4 to 2015 -2016 edition on technical instructions https: //www. iata. org/whatwedo/cargo/dgr/Documents/significant http: //www. icao. int/safety/Dangerous. Goods/Addendum. Corrigen -changes-dgr 57. pdf dum%20 to%20 the%20 Technical%20 Instructions/Doc%2092842015 -2016. ADD-4. en. pdf 29 Global COG | Singapore | March 2016

REFERENCES – KEY DOCUMENTS Accompanying Document (also known as Transport Document) for PI 965 Section II http: //www. dhl. com/content/dam/downloads/g 0/express/shi pping/lithium_batteries_transport_docume nt. pdf 30 Global COG | Singapore | March 2016 Dangerous Goods Declaration (DGD) For full IATA DG, example PI 965 Section 1 B https: //www. iata. org/whatwedo/cargo/dgr/Documents/Shippers. Declaration-Column-Format-Fillable. pdf

REFERENCES – KEY LABELS AND MARKINGS Cargo Aircraft Only Label Lithium Battery Handling Label Note: These CAO labels are standard IATA DG labels and are available via DG packaging/labeling suppliers. 31 Global COG | Singapore | March 2016 IATA Class 9 DG label

PI 965 SECTION II DHL EXPRESS WAYBILL EXAMPLE To ensure these shipments are handled in compliance to the new IATA regulations, DHL requires both the waybill and data to comply: • Waybill- Content description contains IATA text • Shipment Data- Contains the DHL Feature code identifying PI 965 Section II (or IB as applicable) to your account approval and shipment content. 32 Global COG | Singapore | March 2016

AGENDA q Executive summary q DHL Express PI 965 policy update q PI 965 guide to IATA changes 2016 q Checklist of actions for approved shippers q Technical deck q Contacts 33 Global COG | Singapore | March 2016

CONTACT- DHL EXPRESS UK RCG – 0208 831 4024/ 4002 Email UKRCG@Dhl. com London Kim Johnson 07812 761612 Christie Bennett 07802 864326 South - Andrew Rogers 07921 757975 Midlands – Charlotte Pass 07714 752934 North – Kevin Maguire 07714 042906 34 Global COG | Singapore | March 2016